Regions Bank 2008 Annual Report Download - page 135

At December 31, 2008, Regions Bank had issued the maximum amount of $5 billion under its previously
approved Bank Note program. In July 2008, the Board of Directors approved a new Bank Note program that
allows Regions Bank to issue up to $20 billion aggregate principal amount of bank notes that can be outstanding
at any one time. No issuances had been made under this program as of December 31, 2008. Notes issued under
the new program may be senior notes with maturities from 30 days to 15 years and subordinated notes with
maturities from 5 years to 30 years. These notes are not deposits and they are not insured or guaranteed by the
FDIC.
NOTE 15. REGULATORY CAPITAL REQUIREMENTS AND RESTRICTIONS
Regions and Regions Bank are subject to regulatory capital requirements administered by Federal banking
agencies. These regulatory capital requirements involve quantitative measures of the Company’s assets, liabilities
and certain off-balance sheet items, and also qualitative judgments by the regulators. Failure to meet minimum
capital requirements can subject the Company to a series of increasingly restrictive regulatory actions. As of
December 31, 2008 and 2007, the most recent notification from Federal banking agencies categorized Regions
and its significant subsidiaries as “well capitalized” under the regulatory framework.
Minimum capital requirements for all banks are Tier 1 Capital of at least 4% of risk-weighted assets, Total
Capital of at least 8% of risk-weighted assets and a Leverage Ratio of 3%, plus an additional 100 to 200 basis-
point cushion in certain circumstances, of adjusted quarterly average assets. Tier 1 Capital consists principally of
stockholders’ equity, excluding accumulated other comprehensive income, less goodwill and certain other
intangibles. Total Capital consists of Tier 1 Capital plus certain debt instruments and the allowance for credit
losses, subject to limitation. The Company believes that no changes in conditions or events have occurred since
December 31, 2008, which would result in changes that would cause Regions or Regions Bank to fall below the
well capitalized level.
Regions’ and its banking subsidiaries’ capital levels at December 31 exceeded the “well capitalized” levels,
as shown below:
December 31, 2008 To Be Well
CapitalizedAmount Ratio
(Dollars in thousands)
Tier 1 Capital:
Regions Financial Corporation .................................. $12,068,029 10.38% 6.00%
Regions Bank ............................................... 9,640,018 8.41 6.00
Total Capital:
Regions Financial Corporation .................................. $17,013,531 14.64% 10.00%
Regions Bank ............................................... 13,233,313 11.55 10.00
Leverage:
Regions Financial Corporation .................................. $12,068,029 8.47% 5.00%
Regions Bank ............................................... 9,640,018 6.91 5.00
December 31, 2007 To Be Well
CapitalizedAmount Ratio
(Dollars in thousands)
Tier 1 Capital:
Regions Financial Corporation .................................. $ 8,440,965 7.29% 6.00%
Regions Bank ............................................... 9,798,731 8.65 6.00
Total Capital:
Regions Financial Corporation .................................. $13,029,672 11.25% 10.00%
Regions Bank ............................................... 12,688,360 11.20 10.00
Leverage:
Regions Financial Corporation .................................. $ 8,440,965 6.66% 5.00%
Regions Bank ............................................... 9,798,731 7.94 5.00
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