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Stockholders' Equity and Accumulated Other Comprehensive Income (Loss)
 3 Months Ended
Mar. 31, 2023
Equity [Abstract]  
Stockholders' Equity and Accumulated Other Comprehensive Income (Loss)
NOTE 5. 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, 2023December 31, 2022
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 LIBOR 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 LIBOR 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 $24 million in cash dividends on all series of preferred stock during both the first three months of 2023 and 2022.
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
Regions' 2022 stress testing results from the FRB reflected that the Company exceeded all minimum capital levels and the SCB will be floored at 2.5 percent for the fourth quarter of 2022 through the third quarter of 2023.
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, 2023, Regions had repurchased approximately 725 thousand shares of common stock at a total cost of $15 million under this plan. All of these shares were immediately retired upon repurchase and therefore were not included in treasury stock.
Regions declared $0.20 per share in cash dividends for the first quarter 2023 as compared to $0.17 per common share for the first quarter 2022.
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
The following tables present the balances and activity in AOCI on a pre-tax and net of tax basis for the three months ended March 31, 2023 and 2022 : 
 Three Months Ended March 31, 2023
 Pre-tax AOCI Activity
Tax Effect (1)
Net AOCI Activity
 (In millions)
Total accumulated other comprehensive income (loss), beginning of period$(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)
Three Months Ended March 31, 2022
Pre-tax AOCI Activity
Tax Effect (1)
Net AOCI Activity
(In millions)
Total accumulated other comprehensive income (loss), beginning of period$387 $(98)$289 
Unrealized losses on securities transferred to held to maturity:
Beginning balance$(14)$3 $(11)
Reclassification adjustments for amortization on unrealized (gains) losses (2)
1 — 1 
Ending balance$(13)$3 $(10)
Unrealized gains (losses) on securities available for sale:
Beginning balance$218 $(55)$163 
Unrealized gains (losses) arising during the period(1,498)381 (1,117)
Ending balance$(1,280)$326 $(954)
Unrealized gains (losses) on derivative instruments designated as cash flow hedges:
Beginning balance$830 $(209)$621 
Unrealized gains (losses) on derivatives arising during the period(417)106 (311)
Reclassification adjustments for (gains) losses realized in net income (2)
(110)28 (82)
Change in AOCI from derivative activity in the period(527)134 (393)
Ending balance$303 $(75)$228 
Defined benefit pension plans and other post employment benefit plans:
Beginning balance$(647)$163 $(484)
Reclassification adjustments for amortization of actuarial (gains) losses and settlements realized in net income (4)
8 (2)6 
Ending balance$(639)$161 $(478)
Total other comprehensive income (loss)(2,016)513 (1,503)
Total accumulated other comprehensive income (loss), end of period$(1,629)$415 $(1,214)
____
(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 7 for additional details).