Derivative Financial Instruments and Hedging Activities (Tables)

3 Months Ended

Mar. 31, 2025

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:


	March 31, 2025						December 31, 2024
	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	$	6,271	$	3	$	98	$	5,484	$	26	$	95

Derivatives in cash flow hedging relationships:
Interest rate swaps	36,198		34		403		36,660		—		718
Interest rate options	2,000		6		4		2,000		4		6
Total derivatives in cash flow hedging relationships	38,198		40		407		38,660		4		724
Total derivatives designated as hedging instruments	$	44,469	$	43	$	505	$	44,144	$	30	$	819
Derivatives not designated as hedging instruments:
Interest rate swaps	$	94,948	$	1,295	$	1,282	$	94,803	$	1,608	$	1,598
Interest rate options	11,746		25		17		11,005		31		24
Interest rate futures and forward commitments	1,283		7		2		1,247		8		4
Other contracts	13,487		178		151		12,539		139		106
Total derivatives not designated as hedging instruments	$	121,464	$	1,505	$	1,452	$	119,594	$	1,786	$	1,732
Total derivatives	$	165,933	$	1,548	$	1,957	$	163,738	$	1,816	$	2,551

Total gross derivative instruments, before netting			$	1,548	$	1,957			$	1,816	$	2,551
Less: Netting adjustments (2)			1,346		1,261				1,703		1,615
Total gross derivative instruments, after netting			$	202	$	696			$	113	$	936

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(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 $65 million and $106 million for derivative assets at March 31, 2025 and December 31, 2024, respectively. Cash collateral totaled $117 million and $87 million for derivative liabilities at March 31, 2025 and December 31, 2024, respectively.

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 March 31, 2025
	Interest Income				Interest Expense
	Debt securities		Loans, including fees		Long-term borrowings
	(In millions)
Total income (expense) presented in the consolidated statements of income	$	266	$	1,342	$	(85)

Gains/(losses) on fair value hedging relationships:
Interest rate contracts:
Amounts related to interest settlements on derivatives	$	3	$	—	$	(14)
Recognized on derivatives	(46)		—		25
Recognized on hedged items	46		—		(25)
Income (expense) recognized on fair value hedges	$	3	$	—	$	(14)

Gains/(losses) on cash flow hedging relationships: (1)
Interest rate contracts:
Realized gains (losses) reclassified from AOCI into net income, pre-tax	$	—	$	(67)	$	—
Income (expense) recognized on cash flow hedges	$	—	$	(67)	$	—



	Three Months Ended March 31, 2024
	Interest Income				Interest Expense
	Debt securities		Loans, including fees		Long-term borrowings		Deposits
	(In millions)
Total income (expense) presented in the consolidated statements of income	$	209	$	1,421	$	(44)	$	(495)

Gains/(losses) on fair value hedging relationships:
Interest rate contracts:
Amounts related to interest settlements on derivatives	$	3	$	—	$	(17)	$	—
Recognized on derivatives	6		—		(4)		(1)
Recognized on hedged items	(7)		—		4		1
Income (expense) recognized on fair value hedges	$	2	$	—	$	(17)	$	—

Gains/(losses) on cash flow hedging relationships: (1)
Interest rate contracts:
Realized gains (losses) reclassified from AOCI into net income, pre-tax	$	—	$	(117)	$	—	$	—
Income (expense) recognized on cash flow hedges	$	—	$	(117)	$	—	$	—

_____

(1)See Note 6 for gain or (loss) recognized for cash flow hedges in AOCI.

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.


	March 31, 2025				December 31, 2024
	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)	$	4,757	$	24			$	3,304	$	(22)
Long-term borrowings	(3,083)		66				(3,058)		91

_____

(1) At March 31, 2025 and December 31, 2024, 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 and $750 million, respectively, as the hedged amount from a closed portfolio of prepayable financial assets with a carrying amount of $2.7 billion and $1.8 billion, respectively.

(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 in the consolidated statements of income for the periods presented below:


	Three Months Ended March 31
Derivatives Not Designated as Hedging Instruments			2025		2024
		(In millions)
Capital markets income:
Interest rate swaps			$	6	$	9
Interest rate options			8		9
Interest rate futures and forward commitments			3		8
Other contracts			(2)		6
Total capital markets income			15		32
Mortgage income:
Interest rate swaps			16		(15)
Interest rate options			1		1
Interest rate futures and forward commitments			(1)		10
Total mortgage income			16		(4)
			$	31	$	28