Regions Bank 2010 Annual Report Download - page 193

New accounting literature effective for 2010 financial reporting required more granular levels of disclosure for fair
value measurements. The new guidance did not require any changes to presentation of prior periods. The following
tables present assets and liabilities measured at fair value on a recurring basis as of December 31:
December 31, 2010
Level 1 Level 2 Level 3 Fair Value
(In millions)
Trading account assets
U.S. Treasury securities ........................................... $157 $ 14 $— $ 171
Obligations of states and political subdivisions ......................... — 190 165 355
Mortgage-backed securities: ........................................ —
Residential agency ........................................... — 145 — 145
Residential non-agency ........................................ — — — —
Commercial agency .......................................... — — 54 54
Other securities .................................................. — 58 10 68
Equity securities ................................................. 323 — — 323
Total trading account assets ............................................ $480 $ 407 $229 $ 1,116
Securities available for sale
U.S. Treasury securities ........................................... $ 91 $ — $— $ 91
Federal agency securities .......................................... — 16 — 16
Obligations of states and political subdivisions ......................... — 13 17 30
Mortgage-backed securities:
Residential agency ........................................... — 21,845 — 21,845
Residential non-agency ........................................ — — 22 22
Commercial agency .......................................... — 112 — 112
Commercial non-agency ....................................... — 100 — 100
Other debt securities .............................................. — 25 — 25
Equity securities(1) ............................................... 158 — — 158
Total securities available for sale ........................................ $249 $22,111 $ 39 $22,399
Mortgage loans held for sale ........................................... $— $ 1,174 $— $ 1,174
Mortgage servicing rights .............................................. $— $ — $267 $ 267
Derivative assets
Interest rate swaps ............................................... $— $ 2,047 $— $ 2,047
Interest rate options .............................................. — 39 6 45
Interest rate futures and forward commitments ......................... — 29 6 35
Other contracts .................................................. — 21 — 21
Total derivative assets(2) .............................................. $— $ 2,136 $ 12 $ 2,148
Trading account liabilities
U.S. Treasury securities ........................................... $— $ 95 $— $ 95
Mortgage-backed securities:
Residential agency ........................................... — 46 — 46
Commercial agency .......................................... — — 6 6
Other securities .................................................. — 23 4 27
$— $ 164 $ 10 $ 174
Derivative liabilities
Interest rate swaps ............................................... $— $ 1,950 $— $ 1,950
Interest rate options .............................................. — 26 3 29
Interest rate futures and forward commitments ......................... — 9 1 10
Other contracts .................................................. — 19 — 19
Total derivative liabilities(2) ........................................... $— $ 2,004 $ 4 $ 2,008
(1) Excludes Federal Reserve Bank and Federal Home Loan Bank Stock totaling $471 million and $419 million,
respectively, which are accounted for at amortized cost.
(2) Derivatives include approximately $1.0 billion related to legally enforceable master netting agreements that allow
the Company to settle positive and negative positions. Derivatives, net are also presented excluding cash collateral
received of $11 million and cash collateral posted of $810 million with counterparties.
179