Regions Bank 2008 Annual Report Download - page 133

NOTE 14. LONG-TERM BORROWINGS
Long-term borrowings at December 31 consist of the following:
2008 2007
(In thousands)
Federal Home Loan Bank structured advances .............................. $ 1,628,363 $ 1,662,898
Other Federal Home Loan Bank advances ................................. 6,468,705 2,119,318
6.375% subordinated notes due 2012 ..................................... 597,935 597,343
7.75% subordinated notes due 2011 ...................................... 523,198 533,912
7.00% subordinated notes due 2011 ...................................... 499,453 499,227
7.375% subordinated notes due 2037 ..................................... 300,000 300,000
6.125% subordinated notes due 2009 ..................................... 175,252 176,722
6.75% subordinated debentures due 2025 .................................. 163,385 163,840
7.75% subordinated notes due 2024 ...................................... 100,000 100,000
7.50% subordinated notes due 2018 (Regions Bank) ......................... 749,404 —
6.45% subordinated notes due 2037 (Regions Bank) ......................... 497,224 497,191
4.85% subordinated notes due 2013 (Regions Bank) ......................... 489,783 487,696
5.20% subordinated notes due 2015 (Regions Bank) ......................... 345,246 344,523
6.45% subordinated notes due 2018 (Regions Bank) ......................... — 321,657
6.50% subordinated notes due 2018 (Regions Bank) ......................... — 311,439
3.25% senior bank notes due 2011 ....................................... 2,000,616 —
2.75% senior bank notes due 2010 ....................................... 999,329 —
LIBOR floating rate senior bank notes due 2010 ............................ 750,000 —
4.375% senior notes due 2010 ........................................... 494,816 492,104
LIBOR floating rate senior notes due 2012 ................................ 350,000 350,000
LIBOR floating rate senior notes due 2009 ................................ 249,985 249,963
LIBOR floating rate senior debt notes due 2008 ............................ — 399,762
4.50% senior debt notes due 2008 ........................................ — 349,694
6.625% junior subordinated notes due 2047 ................................ 699,814 699,814
8.875% junior subordinated notes due 2048 ................................ 345,010 —
Other long-term debt .................................................. 483,902 545,298
Valuation adjustments on hedged long-term debt ............................ 319,857 122,389
$19,231,277 $11,324,790
Long-term FHLB structured advances have stated maturities ranging from 2009 to 2013, but are convertible
quarterly at the option of the FHLB. The convertible feature provides that after a specified date in the future, the
advances will remain at a fixed rate, or Regions will have the option to either pay off the advance or convert from a
fixed rate to a variable rate based on the LIBOR index. The FHLB structured advances have a weighted-average
interest rate of 5.4% at December 31, 2008 and 2007, and 5.3% at December 31, 2006. Other FHLB advances at
December 31, 2008, 2007 and 2006 have a weighted-average interest rate of 3.8%, 4.8% and 4.3%, respectively,
with maturities of one to twenty years. Under the Blanket Agreement for Advances and Security Agreement with
the FHLB, Regions can borrow a maximum amount of approximately $1.1 billion from the FHLB. Borrowings are
contingent upon collateral pledges to the FHLB. Regions has pledged certain residential first mortgage loans on
one-to-four family dwellings as collateral for the FHLB advances outstanding. See Note 6 for loans pledged to the
FHLB at December 31, 2008 and 2007. Additionally, membership in the FHLB requires an institution to hold
FHLB stock. FHLB stock was $458.2 million at December 31, 2008 and $200.8 million at December 31, 2007.
As of December 31, 2008, Regions has eleven issuances of subordinated notes of $4.4 billion, with stated
interest rates ranging from 4.85% to 7.75%. In May 2008, Regions Bank issued $750 million of subordinated
notes bearing an initial fixed rate of 7.50%, with a final maturity of May 15, 2018. All issuances of these notes
are, by definition, subordinated and subject in right of payment of both principal and interest to the prior payment
in full of all senior indebtedness of the Company, which is generally defined as all indebtedness and other
obligations of the Company to its creditors, except subordinated indebtedness. Payment of the principal of the
notes may be accelerated only in the case of certain events involving bankruptcy, insolvency proceedings or
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