
	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.

Derivatives entered into to manage interest rate risk and facilitate asset/liability management strategies are designated as hedging derivatives. Derivative financial instruments that qualify in a hedging relationship are classified, based on the exposure being hedged, as either fair value hedges or cash flow hedges. See Note 1 "Summary of Significant Accounting Policies" in the Annual Report on Form 10-K for the year ended December 31, 2023 for additional information regarding accounting policies for derivatives.

Regions enters into interest rate swap agreements to manage interest rate exposure on the Company’s fixed-rate borrowings and time deposits. These agreements involve the receipt of fixed-rate amounts in exchange for floating-rate interest payments over the life of the agreements. Regions also enters into interest rate swap agreements to manage interest rate exposure on certain of the Company's fixed-rate prepayable and non-prepayable debt securities available for sale. These agreements involve the payment of fixed-rate amounts in exchange for floating-rate interest receipts.

Regions enters into interest rate swaps, options (e.g., floors, caps and collars), and agreements with a combination of these instruments to manage overall cash flow changes related to interest rate risk exposure on variable rate loans. The agreements effectively modify the Company’s exposure to interest rate risk by utilizing receive fixed/pay SOFR interest rate swaps and interest rate options. As of September 30, 2024, Regions was hedging its exposure to the variability in future cash flows into 2031.

As of September 30, 2024, cash flow hedges were held at a pre-tax net loss of $118 million, which includes pre-tax net gains of $43 million related to terminated cash flow floors and swaps. Regions expects to reclassify into earnings approximately $138 million in pre-tax losses due to the net receipt/ payment of interest and amortization on all cash flow hedges within the next twelve months. Included in this amount is $39 million in pre-tax net gains related to the amortization of terminated cash flow floors and swaps.



	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)	$	—


	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.

The Company holds a portfolio of interest rate swaps, option contracts, and futures and forward commitments that result from transactions with its commercial customers in which they manage their risks by entering into a derivative with Regions. The Company monitors and manages the net risk in this customer portfolio and enters into separate derivative contracts in order to reduce the overall exposure to pre-defined limits. For both derivatives with its end customers and derivatives Regions enters into to mitigate the risk in this portfolio, the Company is subject to market risk and the risk that the counterparty will default. The contracts in this portfolio are not designated as accounting hedges and are marked-to market through earnings (in capital markets income) and included in other assets and other liabilities, as appropriate.

Regions enters into interest rate lock commitments, which are commitments to originate mortgage loans whereby the interest rate on the loan is determined prior to funding and the customers have locked into that interest rate. At September 30, 2024 and December 31, 2023, Regions had $173 million and $124 million, respectively, in total notional amount of interest rate lock commitments. Regions manages market risk on interest rate lock commitments and mortgage loans held for sale with corresponding forward sale commitments. Residential mortgage loans held for sale are recorded at fair value with changes in fair value recorded in mortgage income. Commercial mortgage loans held for sale are recorded at either the lower of cost or market or at fair value based on management's election. At September 30, 2024 and December 31, 2023, Regions had $358 million and $267 million, respectively, in total notional amounts related to these forward sale commitments. Changes in mark-to-market from both interest rate lock commitments and corresponding forward sale commitments related to residential mortgage loans are included in mortgage income. Changes in mark-to-market from both interest rate lock commitments and corresponding forward sale commitments related to commercial mortgage loans are included in capital markets income.

Regions elected to account for residential MSRs at fair value with any changes to fair value recorded in mortgage income. Concurrent with the election to use the fair value measurement method, Regions uses various derivative instruments in the form of forward rate commitments, futures contracts, swaps and swaptions to mitigate the effect of changes in the fair value of its residential MSRs in its consolidated statements of income. As of September 30, 2024 and December 31, 2023, the total notional amount related to these contracts was $3.6 billion and $3.3 billion, respectively.

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 September 30				Nine Months Ended September 30
Derivatives Not Designated as Hedging Instruments	2024		2023		2024		2023
					(In millions)
Capital markets income:
Interest rate swaps	$	3	$	16	$	18	$	(8)
Interest rate options	15		14		38		35
Interest rate futures and forward commitments	4		2		18		10
Other contracts	12		4		17		10
Total capital markets income	34		36		91		47
Mortgage income:
Interest rate swaps	26		(38)		3		(38)
Interest rate options	(1)		(1)		(2)		—
Interest rate futures and forward commitments	3		(4)		11		(4)
Total mortgage income	28		(43)		12		(42)
	$	62	$	(7)	$	103	$	5

Regions has both bought and sold credit protection in the form of participations on interest rate swaps (swap participations). These swap participations, which meet the definition of credit derivatives, were entered into in the ordinary course of business to serve the credit needs of customers. Swap participations, whereby Regions has purchased credit protection, entitle Regions to receive a payment from the counterparty if the customer fails to make payment on any amounts due to Regions upon early termination of the swap transaction and have maturities between 2024 and 2030. Swap participations, whereby Regions has sold credit protection have maturities between 2024 and 2035. For contracts where Regions sold credit protection, Regions would be required to make payment to the counterparty if the customer fails to make payment on any amounts due to the counterparty upon early termination of the swap transaction. Regions bases the current status of the prepayment/performance risk on bought and sold credit derivatives on recently issued internal risk ratings consistent with the risk management practices of unfunded commitments.

Regions’ maximum potential amount of future payments under these contracts as of September 30, 2024 was approximately $334 million. This scenario occurs if variable interest rates were at zero percent and all counterparties defaulted with zero recovery. The fair value of sold protection at September 30, 2024 and 2023 was immaterial. In transactions where

Certain of Regions’ derivative instrument contracts with broker-dealers contain credit-related termination provisions and/or credit-related provisions regarding the posting of collateral, allowing those broker-dealers to terminate the contracts in the event that Regions’ and/or Regions Bank’s credit ratings falls below specified ratings from certain major credit rating agencies. The aggregate fair values of all derivative instruments with any credit-risk-related contingent features that were in a liability position on September 30, 2024 and December 31, 2023, were $45 million and $29 million, respectively, for which Regions had posted collateral of $43 million and $32 million, respectively, in the normal course of business.