v3.25.1
Stockholders' Equity and Accumulated Other Comprehensive Income (Loss)
 3 Months Ended
Mar. 31, 2025
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, 2025December 31, 2024
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 C4/30/20195/15/20295.700 %
(2)
$500 1,000 25 1/40th500,000$490 $490 
Series D6/5/20206/15/20255.750 %
(3)
350 100,000 1,000 1/100th3,500346 346 
Series E5/4/20216/15/20264.450 %400 1,000 25 1/40th400,000390 390 
Series F7/29/20249/15/20296.950 %
(4)
500 1,000 25 1/40th500,000 489 489 
$1,750 1,403,500 $1,715 $1,715 
_________
(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 August 15, 2029, 5.700%, and (ii) for each period beginning on or after August 15, 2029, three-month CME Term SOFR plus 3.410% which includes a 0.262% spread adjustment for the transition to SOFR in accordance with ISDA protocols.
(3)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%.
(4)Dividends, if declared, will be paid quarterly at an annual rate equal to (i) for each period beginning prior to September 15, 2024, 6.950% and (ii) for each period beginning on or after September 15, 2029, the five-year Treasury rate as of the most recent reset dividend determination date plus 2.771%.
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 C, Series D, Series E, and Series F preferred stock.
The Board declared a total of $25 million in cash dividends on preferred stock in both the three months ended March 31, 2025 and 2024.
In the event Series C, Series D, Series E, or Series F preferred shares are redeemed in full at their respective liquidation amounts, $10 million, $4 million, $10 million, or $11 million in excess of the redemption amount over the carrying amount will be recognized, respectively. These excess amounts 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
The Company's results of the 2024 stress test from the Federal Reserve reflect that the Company exceeded all minimum capital levels. The Company's SCB will remain floored at 2.5 percent from the fourth quarter of 2024 through the third quarter of 2025.
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 and was subsequently extended on December 10, 2024 permitting repurchases through the fourth quarter of 2025. As of March 31, 2025, Regions had repurchased approximately 44 million shares of common stock at a total cost of $856 million under this plan. All of these shares were immediately retired upon repurchase and therefore were not included in treasury stock.
Regions declared $0.25 per share in cash dividends for first quarter 2025 and $0.24 per common share for first quarter 2024.
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
The following tables present the balances and activity in AOCI on a pre-tax and net of tax basis for the three months ended March 31, 2025 and 2024:
 Three Months Ended March 31, 2025
 Pre-tax AOCI Activity
Tax Effect (1)
Net AOCI Activity
 (In millions)
Total accumulated other comprehensive income (loss), beginning of period$(3,912)$984 $(2,928)
Unrealized losses on securities transferred to held to maturity:
Beginning balance$(744)$188 $(556)
Unrealized gains (losses) on securities transferred from available for sale during the period(153)38 (115)
Reclassification adjustments for amortization on unrealized losses on securities transferred to held for maturity (2)
22 (7)15 
Change in AOCI from securities held to maturity activity in the period(131)31 (100)
Ending balance$(875)$219 $(656)
Unrealized gains (losses) on securities available for sale:
Beginning balance$(1,958)$490 $(1,468)
Unrealized (gains) losses on securities transferred to held to maturity during the period153 (38)115 
Unrealized gains (losses) arising during the period458 (113)345 
Reclassification adjustments for securities (gains) losses realized in net income (3)
25 (6)19 
Change in AOCI from securities available for sale activity in the period636 (157)479 
Ending balance$(1,322)$333 $(989)
Unrealized gains (losses) on derivative instruments designated as cash flow hedges:
Beginning balance$(662)$168 $(494)
Unrealized gains (losses) on derivatives arising during the period272 (69)203 
Reclassification adjustments for (gains) losses realized in net income (2)
67 (17)50 
Change in AOCI from derivative activity in the period339 (86)253 
Ending balance$(323)$82 $(241)
Defined benefit pension plans and other post employment benefit plans:
Beginning balance$(548)$138 $(410)
Reclassification adjustments for amortization of actuarial (gains) losses and settlements realized in net income (4)
6 (2)4 
Ending balance$(542)$136 $(406)
Total other comprehensive income 850 (214)636 
Other9 — 9 
Total accumulated other comprehensive income (loss), end of period$(3,053)$770 $(2,283)
 Three Months Ended March 31, 2024
 Pre-tax AOCI Activity
Tax Effect (1)
Net AOCI Activity
 (In millions)
Total accumulated other comprehensive income (loss), beginning of period$(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)
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(1)The impact of all AOCI activity is shown net of the related tax impact, calculated using a nominal 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).