Regions Bank 2009 Annual Report Download - page 89

commercial, home equity and other consumer loans as discount window collateral. See Note 5 “Loans” to the
consolidated financial statements further detail and discussion of loans pledged to the Federal Reserve Bank at
December 31, 2009 and 2008.
Regions maintains a liability for its brokerage customer position through Morgan Keegan. This liability
represents liquid funds in customers’ brokerage accounts. Balances due to brokerage customers totaled $424
million at December 31, 2009 as compared to $430 million at December 31, 2008. The short-sale liability, which
is primarily maintained at Morgan Keegan in connection with trading obligations related to customer accounts,
was $266 million at December 31, 2009 compared to $629 million at December 31, 2008. The balance of this
account fluctuates frequently based on customer activity.
Other short-term borrowings decreased $42 million to $78 million at December 31, 2009. This balance
includes certain lines of credit that Morgan Keegan maintains with unaffiliated banks and derivative collateral.
The lines of credit had maximum borrowings of $585 million at both December 31, 2009 and December 31,
2008.
Table 17 “Selected Short-Term Borrowings Data” provides selected information for short-term borrowing
for years 2009, 2008, and 2007.
Table 17—Selected Short-Term Borrowings Data
2009 2008 2007
(In millions)
Federal funds purchased and securities sold under agreements to repurchase:
Balance at year end ............................................. $ 1,893 $ 3,143 $8,820
Average outstanding (based on average daily balances) ................. 3,166 7,697 8,080
Maximum amount outstanding at any month-end ...................... 6,258 10,880 9,984
Weighted-average interest rate at year end ........................... 0.2% 0.5% 3.3%
Weighted-average interest rate on amounts outstanding during the year
(based on average daily balances) ................................ 0.4% 2.2% 4.7%
Term Auction Facility:
Balance at year end ............................................. $ — $10,000 $ —
Average outstanding (based on average daily balances) ................. 3,003 5,925 —
Maximum amount outstanding at any month-end ...................... 10,000 13,000 —
Weighted-average interest rate at year end ........................... — % 1.1% — %
Weighted-average interest rate on amounts outstanding during the year
(based on average daily balances) ................................ 0.3% 2.0% — %
LONG-TERM BORROWINGS
Regions’ long-term borrowings consist primarily of FHLB borrowings, subordinated notes, senior notes and
other long-term notes payable. Total long-term debt decreased $767 million to $18.5 billion at December 31,
2009. See Note 13 “Long-Term Borrowings” to the consolidated financial statements for further discussion and
detailed listing of oustandings and rates.
Membership in the FHLB system provides access to a source of lower-cost funds. Long-term FHLB
structured advances have stated maturities ranging from 2010 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
3.1% at December 31, 2009 and 5.4% at December 31, 2008 and 2007. Other FHLB advances at December 31,
2009, 2008 and 2007 have a weighted-average interest rate of 3.4%, 3.8% and 4.8%, respectively, with maturities
of one to twenty years. FHLB borrowings are contingent upon the amount of collateral pledged to the FHLB.
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