| Schedule Of Derivative Instruments Notional And Fair Values |
The following tables present the notional amount and estimated fair value of derivative instruments. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | September 30, 2024 | | December 31, 2023 | | | Notional Amount(1) | | 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 | $ | 4,934 | | | $ | 4 | | | $ | 85 | | | $ | 2,975 | | | $ | 1 | | | $ | 121 | | | | | | | | | | | | | | | Derivatives in cash flow hedging relationships: | | | | | | | | | | | | | Interest rate swaps | 32,300 | | | 101 | | | 307 | | | 29,550 | | | 43 | | | 580 | | | Interest rate options | 2,000 | | | 12 | | | 6 | | | 2,000 | | | 21 | | | 13 | | | Total derivatives in cash flow hedging relationships | 34,300 | | | 113 | | | 313 | | | 31,550 | | | 64 | | | 593 | | | Total derivatives designated as hedging instruments | $ | 39,234 | | | $ | 117 | | | $ | 398 | | | $ | 34,525 | | | $ | 65 | | | $ | 714 | | | Derivatives not designated as hedging instruments: | | | | | | | | | | | | | Interest rate swaps | $ | 99,981 | | | $ | 1,330 | | | $ | 1,258 | | | $ | 99,892 | | | $ | 1,769 | | | $ | 1,718 | | | Interest rate options | 12,151 | | | 40 | | | 27 | | | 13,497 | | | 66 | | | 57 | | | Interest rate futures and forward commitments | 1,376 | | | 7 | | | 2 | | | 655 | | | 7 | | | 12 | | | Other contracts | 12,497 | | | 146 | | | 123 | | | 12,007 | | | 198 | | | 190 | | | Total derivatives not designated as hedging instruments | $ | 126,006 | | | $ | 1,523 | | | $ | 1,410 | | | $ | 126,051 | | | $ | 2,040 | | | $ | 1,977 | | | Total derivatives | $ | 165,240 | | | $ | 1,640 | | | $ | 1,808 | | | $ | 160,576 | | | $ | 2,105 | | | $ | 2,691 | | | | | | | | | | | | | | | Total gross derivative instruments, before netting | | | $ | 1,640 | | | $ | 1,808 | | | | | $ | 2,105 | | | $ | 2,691 | | Less: Netting adjustments (2) | | | 1,434 | | | 1,124 | | | | | 2,029 | | | 1,560 | | | Total gross derivative instruments, after netting | | | $ | 206 | | | $ | 684 | | | | | $ | 76 | | | $ | 1,131 | |
_________ (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. The table reflects net notional presentation and gross asset and liability presentation to capture the economic impact of the trades. (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. Cash collateral, all of which is included as a netting adjustment, totaled $120 million and $243 million for derivative assets at September 30, 2024 and December 31, 2023, respectively. Cash collateral totaled $67 million and $43 million for derivative liabilities at September 30, 2024 and December 31, 2023, respectively.
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| 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: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended September 30, 2024 | | Interest Income | | Interest Income | | Interest Expense | | Interest Expense | | Debt securities | | Loans, including fees | | Long-term borrowings | | Deposits | | (In millions) | | | | Total income (expense) presented in the consolidated statements of income | $ | 241 | | | $ | 1,463 | | | $ | (85) | | | $ | (507) | | | | | | | | | | | Gains/(losses) on fair value hedging relationships: | | | | | | | | | Interest rate contracts: | | | | | | | | | Amounts related to interest settlements on derivatives | $ | 2 | | | $ | — | | | $ | (18) | | | $ | — | | | Recognized on derivatives | (8) | | | — | | | 39 | | | 1 | | | Recognized on hedged items | 9 | | | — | | | (39) | | | (1) | | | Income (expense) recognized on fair value hedges | $ | 3 | | | $ | — | | | $ | (18) | | | $ | — | | | | | | | | | | Gains/(losses) on cash flow hedging relationships: (1) | | | | | | | | | Interest rate contracts: | | | | | | | | Realized gains (losses) reclassified from AOCI into net income (2) | $ | — | | | $ | (110) | | | $ | — | | | $ | — | | | Income (expense) recognized on cash flow hedges | $ | — | | | $ | (110) | | | $ | — | | | $ | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended September 30, 2023 | | 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 | $ | 185 | | | $ | 1,462 | | | $ | (69) | | | | | | | | | Gains/(losses) on fair value hedging relationships: | | | | | | | Interest rate contracts: | | | | | | | Amounts related to interest settlements on derivatives | $ | — | | | $ | — | | | $ | (18) | | | Recognized on derivatives | — | | | — | | | (3) | | | Recognized on hedged items | — | | | — | | | 3 | | | Income (expense) recognized on fair value hedges | $ | — | | | $ | — | | | $ | (18) | | | | | | | | Gains/(losses) on cash flow hedging relationships: (1) | | | | | | | Interest rate contracts: | | | | | | Realized gains (losses) reclassified from AOCI into net income (2) | $ | — | | | $ | (82) | | | $ | — | | | Income (expense) recognized on cash flow hedges | $ | — | | | $ | (82) | | | $ | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Nine Months Ended September 30, 2024 | | Interest Income | | Interest Income | | Interest Expense | | Interest Expense | | Debt securities | | Loans, including fees | | Long-term borrowings | | Deposits | | (In millions) | | Total income (expense) presented in the consolidated statements of income | $ | 669 | | | $ | 4,316 | | | $ | (190) | | | $ | (1,504) | | | | | | | | | | | Gains/(losses) on fair value hedging relationships: | | | | | | | | | Interest rate contracts: | | | | | | | | | Amounts related to interest settlements on derivatives | $ | 7 | | | $ | — | | | $ | (52) | | | (1) | | | Recognized on derivatives | (2) | | | — | | | 45 | | | — | | | Recognized on hedged items | 2 | | | — | | | (45) | | | — | | | Income (expense) recognized on fair value hedges | $ | 7 | | | $ | — | | | $ | (52) | | | $ | (1) | | | | | | | | | | Gains/(losses) on cash flow hedging relationships: (1) | | | | | | | | | Interest rate contracts: | | | | | | | | Realized gains (losses) reclassified from AOCI into net income (2) | $ | — | | | $ | (343) | | | $ | — | | | $ | — | | | Income (expense) recognized on cash flow hedges | $ | — | | | $ | (343) | | | $ | — | | | $ | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | Nine Months Ended September 30, 2023 | | Interest Income | | Interest Expense | | Debt securities | | Loans, including fees | | Long-term borrowings | | (In millions) | | Total income (expense) presented in the consolidated statements of income | $ | 557 | | | $ | 4,276 | | | $ | (165) | | | | | | | | | Gains/(losses) on fair value hedging relationships: | | | | | | | Interest rate contracts: | | | | | | | Amounts related to interest settlements on derivatives | $ | — | | | $ | — | | | $ | (47) | | | Recognized on derivatives | — | | | — | | | 6 | | | Recognized on hedged items | — | | | — | | | (6) | | | Income (expense) recognized on fair value hedges | $ | — | | | $ | — | | | $ | (47) | | | | | | | | Gains/(losses) on cash flow hedging relationships: (1) | | | | | | | Interest rate contracts: | | | | | | Realized gains (losses) reclassified from AOCI into net income (2) | $ | — | | | $ | (129) | | | $ | — | | | Income (expense) recognized on cash flow hedges | $ | — | | | $ | (129) | | | $ | — | |
_____ (1)See Note 6 for gain or (loss) recognized for cash flow hedges in AOCI. (2)Pre-tax
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| 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. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | September 30, 2024 | | December 31, 2023 | | 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) | $ | 1,754 | | | $ | 7 | | | | | | | $ | 1,653 | | | $ | 5 | | | | | Long-term borrowings | (3,081) | | | 68 | | | | | | | (1,286) | | | 112 | | | | | Time deposits | (10) | | | — | | | | | | | (252) | | | — | | | |
_____ (1) At December 31, 2023, 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 $1.0 billion as the hedged amount from a closed portfolio of prepayable financial assets with a carrying amount of $1.3 billion. (2) Carrying amount represents amortized cost.
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