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Stockholders' Equity and Accumulated Other Comprehensive Income (Loss)
 3 Months Ended
Mar. 31, 2024
Equity [Abstract]  
Stockholders' Equity and Accumulated Other Comprehensive Income (Loss)
NOTE 6. SHAREHOLDERS' EQUITY AND ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
PREFERRED STOCK
The following table presents a summary of the non-cumulative perpetual preferred stock:
March 31, 2024December 31, 2023
Issuance DateEarliest Redemption Date
Dividend Rate (1)
Liquidation AmountLiquidation preference per ShareLiquidation preference per Depositary ShareOwnership Interest per Depositary ShareShares Issued and OutstandingCarrying AmountCarrying Amount
(Dollars in millions, except for share and per share amounts)
Series B4/29/20149/15/20246.375 %
(2)
$500 $1,000 $25 1/40th500,000$433 $433 
Series C4/30/20195/15/20295.700 %
(3)
500 1,000 25 1/40th500,000490 490 
Series D6/5/20209/15/20255.750 %
(4)
350 100,000 1,000 1/100th3,500346 346 
Series E5/4/20216/15/20264.450 %400 1,000 25 1/40th400,000390 390 
$1,750 1,403,500 $1,659 $1,659 
_________
(1)Dividends on all series of preferred stock, if declared, accrue and are payable quarterly in arrears.
(2)Dividends, if declared, will be paid quarterly at an annual rate equal to (i) for each period beginning prior to September 15, 2024, 6.375%, and (ii) for each period beginning on or after September 15, 2024, three-month CME Term SOFR plus 3.536%.
(3)Dividends, if declared, will be paid quarterly at an annual rate equal to (i) for each period beginning prior to August 15, 2029, 5.700%, and (ii) for each period beginning on or after August 15, 2029, three-month CME Term SOFR plus 3.148%.
(4)Dividends, if declared, will be paid quarterly at an annual rate equal to (i) for each period beginning prior to September 15, 2025, 5.750%, and (ii) for each period beginning on or after September 15, 2025, the five-year treasury rate as of the most recent reset dividend determination date plus 5.426%.
All series of preferred stock have no stated maturity and redemption is solely at Regions' option, subject to regulatory approval, in whole, or in part, after the earliest redemption date or in whole, but not in part, at any time following a regulatory capital treatment event for the Series B, Series C, Series D, and Series E preferred stock.
The Board of Directors declared a total of $25 million and $24 million in cash dividends on all series of preferred stock during the first three months of 2024 and 2023, respectively.
In the event Series B, Series C, Series D or Series E preferred shares are redeemed at the liquidation amounts, $67 million, $10 million, $4 million, or $10 million in excess of the redemption amount over the carrying amount will be recognized, respectively. Approximately $52 million of Series B preferred dividends that were recorded as a reduction of preferred stock, including related surplus, will be recorded as a reduction to common shareholders' equity. The remaining amounts listed represent issuance costs that were recorded as reductions to preferred stock, including related surplus, and will be recorded as reductions to net income available to common shareholders.
COMMON STOCK
As a Category IV bank, Regions was not required to participate in the 2023 supervisory capital stress test; however, the Company did receive its SCB reflecting planned capital changes including plans to increase its common stock dividend. From the fourth quarter of 2023 through the third quarter of 2024, the Company's SCB will remain at 2.5 percent.
On April 20, 2022, the Board authorized the repurchase of up to $2.5 billion of the Company's common stock, permitting purchases from the second quarter of 2022 through the fourth quarter of 2024. As of March 31, 2024, Regions had repurchased approximately 23 million shares of common stock at a total cost of $369 million under this plan. All of these shares were immediately retired upon repurchase and therefore were not included in treasury stock.
Regions declared $0.24 per share in cash dividends for the first quarter 2024 as compared to $0.20 per share for the first quarter 2023.
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
The following tables present the balances and activity in AOCI on a pre-tax and net of tax basis for the three months ended March 31, 2024 and 2023 : 
 Three Months Ended March 31, 2024
 Pre-tax AOCI Activity
Tax Effect (1)
Net AOCI Activity
 (In millions)
Total accumulated other comprehensive income (loss), beginning of period$(3,773)$961 $(2,812)
Unrealized losses on securities transferred to held to maturity:
Beginning balance$(9)$1 $(8)
Reclassification adjustments for amortization on unrealized losses (2)
— — — 
Ending balance$(9)$1 $(8)
Unrealized gains (losses) on securities available for sale:
Beginning balance$(2,759)$703 $(2,056)
Unrealized gains (losses) arising during the period(318)81 (237)
Reclassification adjustments for securities (gains) losses realized in net income (3)
50 (13)37 
Change in AOCI from securities available for sale activity in the period(268)68 (200)
Ending balance$(3,027)$771 $(2,256)
Unrealized gains (losses) on derivative instruments designated as cash flow hedges:
Beginning balance$(399)$102 $(297)
Unrealized gains (losses) on derivatives arising during the period(407)104 (303)
Reclassification adjustments for (gains) losses realized in net income (2)
117 (30)87 
Change in AOCI from derivative activity in the period(290)74 (216)
Ending balance$(689)$176 $(513)
Defined benefit pension plans and other post employment benefit plans:
Beginning balance$(606)$155 $(451)
Reclassification adjustments for amortization of actuarial (gains) losses and settlements realized in net income (4)
6 (2)4 
Ending balance$(600)$153 $(447)
Total other comprehensive income (loss)(552)140 (412)
Total accumulated other comprehensive income (loss), end of period$(4,325)$1,101 $(3,224)
 Three Months Ended March 31, 2023
 Pre-tax AOCI Activity
Tax Effect (1)
Net AOCI Activity
 (In millions)
Total accumulated other comprehensive income (loss), beginning of period$(4,481)$1,138 $(3,343)
Unrealized losses on securities transferred to held to maturity:
Beginning balance$(11)$2 $(9)
Reclassification adjustments for amortization on unrealized losses (2)
— — — 
Ending balance$(11)$2 $(9)
Unrealized gains (losses) on securities available for sale:
Beginning balance$(3,433)$872 $(2,561)
Unrealized gains (losses) arising during the period447 (114)333 
Reclassification adjustments for securities (gains) losses realized in net income (3)
2 — 2 
Change in AOCI from securities available for sale activity in the period449 (114)335 
Ending balance$(2,984)$758 $(2,226)
Unrealized gains (losses) on derivative instruments designated as cash flow hedges:
Beginning balance$(468)$119 $(349)
Unrealized gains (losses) on derivatives arising during the period198 (50)148 
Reclassification adjustments for (gains) losses realized in net income (2)
15 (4)11 
Change in AOCI from derivative activity in the period213 (54)159 
Ending balance$(255)$65 $(190)
Defined benefit pension plans and other post employment benefit plans:
Beginning balance$(569)$145 $(424)
Reclassification adjustments for amortization of actuarial (gains) losses and settlements realized in net income (4)
7 (2)5 
Ending balance$(562)$143 $(419)
Total other comprehensive income (loss)669 (170)499 
Total accumulated other comprehensive income (loss), end of period$(3,812)$968 $(2,844)
____
(1)The impact of all AOCI activity is shown net of the related tax impact, calculated using an effective tax rate of approximately 25 percent.
(2)Reclassification amount is recognized in net interest income in the consolidated statements of income.
(3)Reclassification amount is recognized in securities gains (losses), net in the consolidated statements of income.
(4)Reclassification amount is recognized in other non-interest expense in the consolidated statements of income. Additionally, these accumulated other comprehensive income (loss) components are included in the computation of net periodic pension cost (see Note 8 for additional details).