Regions Bank 2008 Annual Report Download - page 75

The following chart summarizes the applicable bank regulatory capital requirements. Regions’ capital ratios
at December 31, 2008 and December 31, 2007 substantially exceeded all regulatory requirements.
Table 19—Capital Ratios
2008 2007
(In thousands)
Risk-based capital:
Stockholders’ equity ............................................ $ 16,812,837 $ 19,823,029
Less: Accumulated other comprehensive income (loss) ................. (8,427) 202,753
Qualifying minority interests in consolidated subsidiaries ............... 90,649 90,002
Qualifying trust preferred securities ................................ 1,036,448 691,342
Less: Goodwill and other disallowed intangible assets .................. 5,864,243 11,933,193
Less: Disallowed servicing assets .................................. 16,089 27,462
Tier 1 Capital .................................................. 12,068,029 8,440,965
Qualifying subordinated debt ..................................... 3,337,280 3,056,994
Adjusted allowance for loan losses* ................................ 1,458,722 1,381,713
Other ........................................................ 150,000 150,000
Tier 2 Capital .................................................. 4,946,002 4,588,707
Total capital ............................................... $ 17,014,031 $ 13,029,672
Risk-adjusted assets ................................................. $116,250,704 $115,801,508
Capital ratios:
Tier 1 Capital to total risk-adjusted assets ........................... 10.38 % 7.29%
Total capital to total risk-adjusted assets ............................ 14.64 11.25
Leverage ..................................................... 8.47 6.66
Stockholders’ equity to total assets ................................. 11.50 14.05
Tangible equity to tangible assets .................................. 7.59 5.88
Common stockholders’ equity to total assets ......................... 9.23 14.05
Tangible common equity to tangible assets .......................... 5.23 5.88
* Includes $79,654 and $60,469 in 2008 and 2007, respectively, associated with reserves recorded for
off-balance sheet credit exposures, including derivatives.
Total capital at Regions Bank also has an important effect on the amount of FDIC insurance premiums paid.
Institutions not considered well capitalized can be subject to higher rates for FDIC insurance. Other requirements
are needed in addition to total capital in order for a company to be considered well capitalized. See Note 15
“Regulatory Capital Requirements and Restrictions” to the consolidated financial statements for further details.
As of December 31, 2008, Regions Bank had the requisite capital levels to qualify as well capitalized.
Under the Federal Deposit Insurance Reform Act of 2005 and the FDIC’s revised premium assessment
program, every FDIC-insured institution will pay some level of deposit insurance assessments regardless of the
level of designated reserve ratio. Regions Bank had a FICO assessment of $10 million in FDIC deposit premiums
in 2008 and $11 million in 2007, both of which were expensed in their respective years.
The FDIC also has finalized rules providing for a one-time credit to each eligible insured depository
institution based on the assessment base of the institution on December 31, 1996. Regions Bank qualified for a
credit of approximately $110 million, of which $34 million was applied in 2007, $41 million in 2008, and the
remaining balance of $35 million will be used in 2009, thereby exhausting the credit.
On October 7, 2008, the Board of Directors of the FDIC adopted a restoration plan accompanied by a notice
of proposed rulemaking that would increase the rates banks pay for deposit insurance, while at the same time
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