Derivative Financial Instruments and Hedging Activities (Tables)

12 Months Ended

Dec. 31, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule Of Derivative Instruments Notional And Fair Values

The following tables present the notional amount and estimated fair value of derivative instruments on a gross basis as of December 31:


	2022						2021
	Notional Amount		Estimated Fair Value				Notional Amount		Estimated Fair Value
			Gain(1)		Loss(1)				Gain(1)		Loss(1)
	(In millions)
Derivatives in fair value hedging relationships:
Interest rate swaps	$	1,423	$	1	$	158	$	7,900	$	—	$	32

Derivatives in cash flow hedging relationships:
Interest rate swaps	30,600		19		668		20,650		171		29


Total derivatives designated as hedging instruments	$	32,023	$	20	$	826	$	28,550	$	171	$	61
Derivatives not designated as hedging instruments:
Interest rate swaps	$	94,220	$	2,315	$	2,335	$	81,327	$	748	$	794
Interest rate options	12,506		94		85		15,990		48		19
Interest rate futures and forward commitments	985		8		5		2,739		11		3
Other contracts	12,173		172		127		9,456		133		135
Total derivatives not designated as hedging instruments	$	119,884	$	2,589	$	2,552	$	109,512	$	940	$	951
Total derivatives	$	151,907	$	2,609	$	3,378	$	138,062	$	1,111	$	1,012

Total gross derivative instruments, before netting			$	2,609	$	3,378			$	1,111	$	1,012
Less: Netting adjustments (2)			2,504		1,925				699		932
Total gross derivative instruments, after netting			$	105	$	1,453			$	412	$	80

_________

(1)Derivatives in a gain position are recorded as other assets and derivatives in a loss position are recorded as other liabilities on the consolidated balance sheets. Includes accrued interest as applicable.

(2)Netting adjustments represent amounts recorded to convert derivative assets and derivative liabilities from a gross basis to a net basis in accordance with applicable accounting guidance. The net basis takes into account the impact of cash collateral received or posted, legally enforceable master netting agreements, and variation margin that allow Regions to settle derivative contracts with the counterparty on a net basis and to offset the net position with the related cash collateral.

Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income Loss Table

The balance of terminated cash flow hedges in AOCI will be amortized into earnings through 2026. The following table presents the pre-tax impact of terminated cash flow hedges on AOCI for the twelve months ended December 31:



	2022		2021
	(In millions)
Unrealized gains on terminated hedges included in AOCI - beginning of period	$	700	$	121
Unrealized gains (losses) on terminated hedges arising during the period	(291)		739
Reclassification adjustments for amortization of unrealized (gains) on terminated hedges into net income	(245)		(160)
Unrealized gains on terminated hedges included in AOCI - end of period	$	164	$	700

Schedule Of Effect Of Hedging Derivative Instruments On Statements Of Operations

The following tables present the effect of hedging derivative instruments on the consolidated statements of income and the total amounts for the respective line items affected for the years ended December 31:


	2022
	Interest Income		Interest Income		Interest Expense
	Debt securities		Loans, including fees		Long-term borrowings
	(In millions)
Total income (expense) presented in the consolidated statements of income	$	688	$	4,088	$	(119)

Gains/(losses) on fair value hedging relationships:
Interest rate contracts:
Amounts related to interest settlements on derivatives	$	41	$	—	$	(16)
Recognized on derivatives	—		—		(124)
Recognized on hedged items	—		—		124
Income (expense) recognized on fair value hedges	$	41	$	—	$	(16)

Gains/(losses) on cash flow hedging relationships: (1)
Interest rate contracts:
Realized gains (losses) reclassified from AOCI into net income (2)	$	—	$	140	$	—
Income (expense) recognized on cash flow hedges	$	—	$	140	$	—


	2021
	Interest Income		Interest Expense
	Loans, including fees		Long-term borrowings
	(In millions)
Total income (expense) presented in the consolidated statements of income	$	3,452	$	(103)

Gains/(losses) on fair value hedging relationships:
Interest rate contracts:
Amounts related to interest settlements on derivatives	$	—	$	19
Recognized on derivatives	—		(51)
Recognized on hedged items	—		51
Income (expense) recognized on fair value hedges	$	—	$	19

Gains/(losses) on cash flow hedging relationships: (1)
Interest rate contracts:
Realized gains (losses) reclassified from AOCI into net income (2)	$	426	$	—
Income (expense) recognized on cash flow hedges	$	426	$	—


	2020
	Interest Income		Interest Expense
	Loans, including fees		Long-term borrowings
	(In millions)
Total income (expense) presented in the consolidated statements of income	$	3,610	$	(178)

Gains/(losses) on fair value hedging relationships:
Interest rate contracts:
Amounts related to interest settlements on derivatives	$	—	$	37
Recognized on derivatives	—		52
Recognized on hedged items	—		(51)
Income (expense) recognized on fair value hedges	$	—	$	38

Gains/(losses) on cash flow hedging relationships: (1)
Interest rate contracts:
Realized gains (losses) reclassified from AOCI into net income (2)	$	260	$	—
Income (expense) recognized on cash flow hedges	$	260	$	—

____

(1)See Note 14 for gain or (loss) recognized for cash flow hedges in AOCI.

(2)Pre-tax

Schedule of Fair Value Hedging Basis Adjustments

The following tables present the carrying amount and associated cumulative basis adjustment related to the application of hedge accounting that is included in the carrying amount of hedged assets and liabilities in fair value hedging relationships as of December 31:


	2022				2021
	Hedged Items Currently Designated					Hedged Items Currently Designated
	Carrying Amount of Assets/(Liabilities)		Hedge Accounting Basis Adjustment				Carrying Amount of Assets/(Liabilities)		Hedge Accounting Basis Adjustment
	(In millions)				(In millions)
Debt securities available for sale(1)(2)	$	23	$	—			$	9,901	$	—
Long-term borrowings	(1,239)		158				(1,363)		34

_____

(1) As of December 31, 2021, the Company designated interest rate swaps as fair value hedges of debt securities available for sale under the portfolio layer method under which the Company designated $5.8 billion as the hedged amount from a closed portfolio of prepayable financial assets with a carrying amount of $9.1 billion.

(2) Carrying amount represents amortized cost.

Schedule Of Gains (Losses) Recognized In Income Related To Derivatives Not Designated As Hedging Instruments

The following table presents the location and amount of gain or (loss) recognized in income on derivatives not designated as hedging instruments for the years ended December 31:



Derivatives Not Designated as Hedging Instruments	2022		2021		2020
	(In millions)
Capital markets income:
Interest rate swaps	$	108	$	46	$	21
Interest rate options	23		28		36
Interest rate futures and forward commitments	10		15		14
Other contracts	11		4		1
Total capital markets income	152		93		72
Mortgage income:
Interest rate swaps	(118)		(45)		83
Interest rate options	(14)		(32)		30
Interest rate futures and forward commitments	(4)		13		(2)
Total mortgage income	(136)		(64)		111
	$	16	$	29	$	183