XML 30 R18.htm IDEA: XBRL DOCUMENT
v3.25.1

Fair Value Measurements | 3 Months Ended
--- | ---
Mar. 31, 2025
Fair Value Disclosures [Abstract] |
Fair Value Measurements | NOTE 10. FAIR VALUE MEASUREMENTS See Note 1 "Summary of Significant Accounting Policies" to the consolidated financial statements of the Annual Report on Form 10-K for the year ended December 31, 2024 for a description of valuation methodologies for assets and liabilities measured at fair value on a recurring and non-recurring basis. Assets and liabilities measured at fair value rarely transfer between Level 1 and Level 2 measurements. Marketable equity securities and debt securities available for sale may be periodically transferred to or from Level 3 valuation based on management’s conclusion regarding the observability of inputs used in valuing the securities. Such transfers are accounted for as if they occur at the beginning of a reporting period. The following table presents assets and liabilities measured at estimated fair value on a recurring basis:
| March 31, 2025 |  |  | December 31, 2024 |
| Level 1 |  | Level 2 |  | Level 3 (1) |  | Total Estimated Fair Value |  |  | Level 1 |  | Level 2 |  | Level 3 (1) |  | Total Estimated Fair Value |
| (In millions) |
Recurring fair value measurements |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Debt securities available for sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury securities | $ | 2,061 |  |  | $ | — |  |  | $ | — |  |  | $ | 2,061 |  |  |  | $ | 2,003 |  |  | $ | — |  |  | $ | — |  |  | $ | 2,003 |  |
Federal agency securities | — |  |  | 485 |  |  | — |  |  | 485 |  |  |  | — |  |  | 444 |  |  | — |  |  | 444 |  |
Obligations of states and political subdivisions | — |  |  | 2 |  |  | — |  |  | 2 |  |  |  | — |  |  | 2 |  |  | — |  |  | 2 |  |
Mortgage-backed securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential agency | — |  |  | 18,583 |  |  | — |  |  | 18,583 |  |  |  | — |  |  | 18,945 |  |  | — |  |  | 18,945 |  |
Commercial agency | — |  |  | 4,095 |  |  | — |  |  | 4,095 |  |  |  | — |  |  | 4,090 |  |  | — |  |  | 4,090 |  |
Commercial non-agency | — |  |  | 83 |  |  | — |  |  | 83 |  |  |  | — |  |  | 82 |  |  | — |  |  | 82 |  |
Corporate and other debt securities | — |  |  | 630 |  |  | 3 |  |  | 633 |  |  |  | — |  |  | 655 |  |  | 3 |  |  | 658 |  |
Total debt securities available for sale | $ | 2,061 |  |  | $ | 23,878 |  |  | $ | 3 |  |  | $ | 25,942 |  |  |  | $ | 2,003 |  |  | $ | 24,218 |  |  | $ | 3 |  |  | $ | 26,224 |  |
Loans held for sale | $ | — |  |  | $ | 227 |  |  | $ | — |  |  | $ | 227 |  |  |  | $ | — |  |  | $ | 234 |  |  | $ | — |  |  | $ | 234 |  |
Marketable equity securities in other earning assets | $ | 653 |  |  | $ | — |  |  | $ | — |  |  | $ | 653 |  |  |  | $ | 819 |  |  | $ | — |  |  | $ | — |  |  | $ | 819 |  |
Residential mortgage servicing rights | $ | — |  |  | $ | — |  |  | $ | 979 |  |  | $ | 979 |  |  |  | $ | — |  |  | $ | — |  |  | $ | 1,007 |  |  | $ | 1,007 |  |
Commercial mortgage servicing rights through non-DUS agency programs | $ | — |  |  | $ | — |  |  | $ | 94 |  |  | $ | 94 |  |  |  | $ | — |  |  | $ | — |  |  | $ | 97 |  |  | $ | 97 |  |
Derivative assets (2): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest rate swaps | $ | — |  |  | $ | 1,332 |  |  | $ | — |  |  | $ | 1,332 |  |  |  | $ | — |  |  | $ | 1,634 |  |  | $ | — |  |  | $ | 1,634 |  |
Interest rate options | — |  |  | 25 |  |  | 6 |  |  | 31 |  |  |  | — |  |  | 30 |  |  | 5 |  |  | 35 |  |
Interest rate futures and forward commitments | — |  |  | 7 |  |  | — |  |  | 7 |  |  |  | — |  |  | 8 |  |  | — |  |  | 8 |  |
Other contracts | 20 |  |  | 158 |  |  | — |  |  | 178 |  |  |  | 13 |  |  | 126 |  |  | — |  |  | 139 |  |
Total derivative assets | $ | 20 |  |  | $ | 1,522 |  |  | $ | 6 |  |  | $ | 1,548 |  |  |  | $ | 13 |  |  | $ | 1,798 |  |  | $ | 5 |  |  | $ | 1,816 |  |
Derivative liabilities (2): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest rate swaps | $ | — |  |  | $ | 1,783 |  |  | $ | — |  |  | $ | 1,783 |  |  |  | $ | — |  |  | $ | 2,411 |  |  | $ | — |  |  | $ | 2,411 |  |
Interest rate options | — |  |  | 21 |  |  | — |  |  | 21 |  |  |  | — |  |  | 30 |  |  | — |  |  | 30 |  |
Interest rate futures and forward commitments | — |  |  | 2 |  |  | — |  |  | 2 |  |  |  | — |  |  | 4 |  |  | — |  |  | 4 |  |
Other contracts | 1 |  |  | 150 |  |  | — |  |  | 151 |  |  |  | 3 |  |  | 103 |  |  |  |  | 106 |  |
Total derivative liabilities | $ | 1 |  |  | $ | 1,956 |  |  | $ | — |  |  | $ | 1,957 |  |  |  | $ | 3 |  |  | $ | 2,548 |  |  | $ | — |  |  | $ | 2,551 |  |
Securities sold, but not yet purchased | $ | 170 |  |  | $ | — |  |  | $ | — |  |  | $ | 170 |  |  |  | $ | 147 |  |  | $ | — |  |  | $ | — |  |  | $ | 147 |  |
_________ (1)All following disclosures related to Level 3 recurring assets do not include those deemed to be immaterial. (2)As permitted under U.S. GAAP, variation margin collateral payments made or received for derivatives that are centrally cleared are legally characterized as settled. As such, these derivative assets and derivative liabilities and the related variation margin collateral are presented on a net basis on the balance sheet. Assets and liabilities in all levels could result in volatile and material price fluctuations. Realized and unrealized gains and losses on Level 3 assets represent only a portion of the risk to market fluctuations in Regions’ consolidated balance sheets. See Note 5 for a reconciliation of beginning and ending balances of these MSRs for three months ended March 31, 2025 and 2024. RECURRING FAIR VALUE MEASUREMENTS USING SIGNIFICANT UNOBSERVABLE INPUTS Residential mortgage servicing rights The significant unobservable inputs used in the fair value measurement of residential MSRs are CPR and OAS. This valuation requires generating cash flow projections over multiple interest rate scenarios and discounting those cash flows at a risk-adjusted rate. Additionally, the impact of prepayments and changes in the OAS are based on a variety of underlying inputs including servicing costs. Increases or decreases to the underlying cash flow inputs will have a corresponding impact on the value of the MSR asset. The net change in unrealized gains (losses) included in earnings related to MSRs held at period end are disclosed as the changes in valuation inputs or assumptions included in the MSR rollforward table in Note 5 . Commercial mortgage servicing rights through non-DUS agency programs The significant unobservable inputs used in the fair value measurement of commercial MSRs are CPR and the discount rate. This valuation requires generating cash flow projections over multiple interest rate scenarios and discounting those cash flows at a risk-adjusted rate. Additionally, the impact of prepayments and changes in the discount rate are based on a variety of underlying inputs including servicing costs. Increases or decreases to the underlying cash flow inputs will have a corresponding impact on the value of the MSR asset. The net change in unrealized gains (losses) included in earnings related to MSRs held at period end are disclosed as the changes in valuation inputs or assumptions included in the MSR rollforward table in Note 5 . The following tables present detailed information regarding material assets and liabilities measured at fair value using significant unobservable inputs (Level 3) as of March 31, 2025 and December 31, 2024. The tables include the valuation techniques and the significant unobservable inputs utilized. The range of each significant unobservable input as well as the weighted-average within the range utilized at March 31, 2025 and December 31, 2024 are included. Following the tables are descriptions of the valuation techniques and the sensitivity of the techniques to changes in the significant unobservable inputs.
| March 31, 2025
| Level 3 Estimated Fair Value |  | Valuation Technique |  | Unobservable Input(s) |  | Quantitative Range of Unobservable Inputs and (Weighted-Average)
| (Dollars in millions)
Recurring fair value measurements: |  |  |  |  |  |  |
Residential mortgage servicing rights (1) | $979 |  | Discounted cash flow |  | Weighted-average CPR (%) |  | 4.6% - 17.2% (7.7%)
|  |  |  |  | OAS (%) |  | 5.1% - 8.5% (5.3%)
Commercial mortgage servicing rights through non-DUS agency programs (1) | $94 |  | Discounted cash flow |  | Weighted-average CPR (%) |  | 5.3% - 7.4% (7.1%%)
|  |  |  |  | Discount rate (%) |  | 8.0% - 10.0% (8.2%)
_______ (1)See Note 5 for additional disclosures related to assumptions used in the fair value calculation for residential and commercial mortgage servicing rights.
| December 31, 2024
| Level 3 Estimated Fair Value |  | Valuation Technique |  | Unobservable Input(s) |  | Quantitative Range of Unobservable Inputs and (Weighted-Average)
| (Dollars in millions)
Recurring fair value measurements: |  |  |  |  |  |  |
Residential mortgage servicing rights (1) | $1,007 |  | Discounted cash flow |  | Weighted-average CPR (%) |  | 4.6% - 23.1% (8.0%)
|  |  |  |  | OAS (%) |  | 4.8% -7.7% (5.1%)
Commercial mortgage servicing rights through non-DUS agency programs (1) | $97 |  | Discounted cash flow |  | Weighted-average CPR (%) |  | 5.4% - 10.6% (7.7%)
|  |  |  |  | Discount rate (%) |  | 7.0% -8.0% (7.1%)
_______ (1)See Note 6 to the consolidated financial statements of the Annual Report on Form 10-K for the year ended December 31, 2024 for additional disclosures related to assumptions used in the fair value calculations for residential and commercial mortgage servicing rights. FAIR VALUE OPTION Regions has elected the fair value option for all eligible agency residential first mortgage loans originated with the intent to sell. This election allows for a more effective offset of the changes in fair values of the loans and the derivative instruments used to economically hedge them without the burden of complying with the requirements for hedge accounting. Fair values of residential first mortgage loans held for sale are based on traded market prices of similar assets where available and/or discounted cash flows at market interest rates, adjusted for securitization activities that include servicing values and market conditions, and are recorded in loans held for sale. At March 31, 2025, the aggregate fair value of these loans totaled $224 million compared to aggregate unpaid principal of $219 million. At December 31, 2024, the aggregate fair value of these loans totaled $222 million compared to aggregate unpaid principal of $219 million. Interest income on residential first mortgage loans held for sale is recognized based on contractual rates and is reflected in interest income on loans held for sale. Net gains and losses resulting from changes in fair value of residential mortgage loans held for sale, which were recorded in mortgage income in the consolidated statements of income during the three months ended March 31, 2025 and 2024, were immaterial. These changes in fair value are mostly offset by economic hedging activities. An immaterial portion of these amounts was attributable to changes in instrument-specific credit risk. NON-RECURRING FAIR VALUE MEASUREMENTS Items measured at fair value on a non-recurring basis include loans held for sale for which the fair value option has not been elected, foreclosed property and other real estate and equity investments without a readily determinable fair value; all of which may be considered either Level 2 or Level 3 valuation measurements. Non-recurring fair value adjustments related to loans held for sale, foreclosed property and other real estate are typically a result of the application of lower of cost or fair value accounting during the period. Non-recurring fair value adjustments related to equity investments without readily determinable fair values are the result of impairments or price changes from observable transactions. The balances of each of these assets, as well as the related fair value adjustments during the periods, were immaterial at both March 31, 2025 and December 31, 2024. FINANCIAL INSTRUMENTS NOT RECORDED AT FAIR VALUE For financial instruments not recorded at fair value, estimates of fair value are based on relevant market data and information about the instruments. The following tables present the carrying amounts and estimated fair values, as well as the level within the fair value hierarchy, of the Company’s financial instruments not recorded at fair value as of March 31, 2025 and December 31, 2024.
| March 31, 2025
| Carrying Amount |  | Estimated Fair Value(1) |  | Level 1 |  | Level 2 |  | Level 3
| (In millions)
Financial assets: |  |  |  |  |  |  |  |  |
Cash and cash equivalents | $ | 14,316 |  |  | $ | 14,316 |  |  | $ | 14,316 |  |  | $ | — |  |  | $ | — |
Debt securities held to maturity | 5,195 |  |  | 5,063 |  |  | — |  |  | 5,063 |  |  | — |
Loans held for sale | 118 |  |  | 118 |  |  | — |  |  | 90 |  |  | 28 |
Loans (excluding leases), net of unearned income and allowance for loan losses(2)(3) | 92,497 |  |  | 89,505 |  |  | — |  |  | — |  |  | 89,505 |
Other earning assets | 759 |  |  | 759 |  |  | — |  |  | 759 |  |  | — |
Financial liabilities: |  |  |  |  |  |  |  |  |
Deposits with no stated maturity(4) | 115,479 |  |  | 115,479 |  |  | — |  |  | 115,479 |  |  | — |
Time deposits(4) | 15,492 |  |  | 15,473 |  |  | — |  |  | 15,473 |  |  | — |
Long-term borrowings | 6,019 |  |  | 6,094 |  |  | — |  |  | 6,093 |  |  | 1 |
Loan commitments and letters of credit | 151 |  |  | 151 |  |  | — |  |  | — |  |  | 151 |
_________ (1)Estimated fair values are consistent with an exit price concept. The assumptions used to estimate the fair values are intended to approximate those that a market participant would use in a hypothetical orderly transaction. In estimating fair value, the Company makes adjustments for estimated changes in interest rates, market liquidity and credit spreads in the periods they are deemed to have occurred. (2)The estimated fair value of portfolio loans assumes sale of the loans to a third-party financial investor. Accordingly, the value to the Company if the loans were held to maturity is not reflected in the fair value estimate. The fair value discount on the loan portfolio's net carrying amount at March 31, 2025 was $3.0 billion or 3.2 percent. (3)Excluded from this table is the sales-type, direct financing, and leveraged lease carrying amount of $1.6 billion at March 31, 2025. (4)The fair value of non-interest-bearing deposit accounts, interest-bearing checking accounts, savings accounts, and money market accounts is the amount payable on demand at the reporting date (i.e., the carrying amount) as these instruments have an indeterminate maturity date. Fair values for time deposits are estimated by using discounted cash flow analyses, based on market spreads to benchmark rates.
| December 31, 2024
| Carrying Amount |  | Estimated Fair Value(1) |  | Level 1 |  | Level 2 |  | Level 3
| (In millions)
Financial assets: |  |  |  |  |  |  |  |  |
Cash and cash equivalents | $ | 10,712 |  |  | $ | 10,712 |  |  | $ | 10,712 |  |  | $ | — |  |  | $ | — |
Debt securities held to maturity | 4,427 |  |  | 4,226 |  |  | — |  |  | 4,226 |  |  | — |
Loans held for sale | 360 |  |  | 360 |  |  | — |  |  | 360 |  |  | — |
Loans (excluding leases), net of unearned income and allowance for loan losses(2)(3) | 93,424 |  |  | 89,907 |  |  | — |  |  | — |  |  | 89,907 |
Other earning assets | 797 |  |  | 797 |  |  | — |  |  | 797 |  |  | — |
Financial liabilities: |  |  |  |  |  |  |  |  |
Deposits with no stated maturity(4) | 111,883 |  |  | 111,883 |  |  | — |  |  | 111,883 |  |  | — |
Time deposits(4) | 15,720 |  |  | 15,694 |  |  | — |  |  | 15,694 |  |  | — |
Short-term borrowings | 500 |  |  | 500 |  |  | — |  |  | 500 |  |  | — |
Long-term borrowings | 5,993 |  |  | 6,059 |  |  | — |  |  | 6,058 |  |  | 1 |
Loan commitments and letters of credit | 149 |  |  | 149 |  |  | — |  |  | — |  |  | 149 |
_________ (1)Estimated fair values are consistent with an exit price concept. The assumptions used to estimate the fair values are intended to approximate those that a market participant would use in a hypothetical orderly transaction. In estimating fair value, the Company makes adjustments for estimated changes in interest rates, market liquidity and credit spreads in the periods they are deemed to have occurred. (2)The estimated fair value of portfolio loans assumes sale of the loans to a third-party financial investor. Accordingly, the value to the Company if the loans were held to maturity is not reflected in the fair value estimate. The fair value discount on the loan portfolio's net carrying amount at December 31, 2024 was $3.5 billion or 3.8 percent. (3)Excluded from this table is the sales-type, direct financing, and leveraged lease carrying amount of $1.7 billion at December 31, 2024. (4)The fair value of non-interest-bearing deposit accounts, interest-bearing checking accounts, savings accounts, and money market accounts is the amount payable on demand at the reporting date (i.e., the carrying amount) as these instruments have an indeterminate maturity date. Fair values for time deposits are estimated by using discounted cash flow analyses, based on market spreads to benchmark rates.

X
- References No definition available. + Details
Name: | us-gaap_FairValueDisclosuresAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 107 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-107 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 100 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-100 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (c)(3) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2E -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2E Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (g) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 940 -SubTopic 820 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147478119/940-820-50-1 + Details
Name: | us-gaap_FairValueDisclosuresTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration