Regions Bank 2009 Annual Report Download - page 95

The following chart summarizes the applicable bank regulatory capital requirements. Regions’ capital ratios
at December 31, 2009 and December 31, 2008 substantially exceeded all regulatory requirements.
Table 19—Capital Ratios
2009 2008
(In millions)
Risk-based capital:
Stockholders’ equity (GAAP) ............................................ $ 17,881 $ 16,813
Accumulated other comprehensive income (loss) ............................ (130) 8
Non-qualifying goodwill and intangibles ................................... (5,792) (5,864)
Disallowed deferred tax assets(1) ......................................... (947) —
Disallowed servicing assets .............................................. (25) (16)
Qualifying non-controlling interests ....................................... 91 91
Qualifying trust preferred securities ....................................... 846 1,036
Tier 1 Capital ......................................................... 11,924 12,068
Qualifying subordinated debt ............................................ 2,907 3,337
Adjusted allowance for loan losses(2) ..................................... 1,316 1,459
Other ............................................................... 155 150
Tier 2 Capital ......................................................... 4,378 4,946
Total capital ...................................................... $ 16,302 $ 17,014
Risk-weighted assets (regulatory) ............................................. $103,330 $116,251
Capital ratios:
Tier 1 Common risk-based ratio (non-GAAP) ............................... 7.15% 6.57%
Tier 1 Capital to total risk-weighted assets .................................. 11.54 10.38
Total capital to total risk-weighted assets ................................... 15.78 14.64
Leverage ............................................................ 8.90 8.47
Stockholders’ equity to total assets ........................................ 12.56 11.50
Common stockholders’ equity to total assets ................................ 10.03 9.23
Tangible common equity to tangible assets (non-GAAP) ...................... 6.03 5.23
(1) Only one year of projected future taxable income may be applied in calculating deferred tax assets for
regulatory capital purposes.
(2) Includes $128 million and $80 million in 2009 and 2008, respectively, associated with reserves recorded for
off-balance sheet credit exposures, including derivatives.
See Note 14 “Regulatory Capital Requirements and Restrictions” to the consolidated financial statements
for further details. As of December 31, 2009, Regions Bank had the requisite capital levels to qualify as well
capitalized.
OFF-BALANCE SHEET ARRANGEMENTS
Regions has certain variable interests in unconsolidated variable interest entities (i.e., Regions is not the
primary beneficiary). Regions owns the common stock of subsidiary business trusts, which have issued
mandatorily redeemable preferred capital securities (“trust preferred securities”) in the aggregate of $1.0 billion
at the time of issuance. These trusts meet the definition of a variable interest entity of which Regions is not the
primary beneficiary; the trusts’ only assets are junior subordinated debentures issued by Regions, which were
acquired by the trusts using the proceeds from the issuance of the trust preferred securities and common stock.
The junior subordinated debentures are included in long-term borrowings and Regions’ equity interests in the
business trusts are included in other assets. For regulatory reporting and capital adequacy purposes, the Federal
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