Regions Bank 2010 Annual Report Download - page 201

The carrying amounts and estimated fair values of the Company’s financial instruments as of December 31
are as follows:
December 31, 2010 December 31, 2009
Carrying
Amount
Estimated
Fair
Value(1)
Carrying
Amount
Estimated
Fair
Value(1)
(In millions)
Financial assets:
Cash and cash equivalents .................................. $ 6,919 $ 6,919 $ 8,011 $ 8,011
Trading account assets ..................................... 1,116 1,116 3,039 3,039
Securities available for sale ................................. 23,289 23,289 24,069 24,069
Securities held to maturity .................................. 24 26 31 31
Loans held for sale ........................................ 1,485 1,485 1,511 1,511
Loans (excluding leases), net of unearned income and allowance for
loan losses(2), (3) ....................................... 77,864 69,775 85,452 72,119
Other interest-earning assets ................................ 1,219 1,219 734 734
Derivatives, net ........................................... 140 140 520 520
Financial liabilities:
Deposits ................................................ 94,614 94,883 98,680 99,168
Short-term borrowings ..................................... 3,937 3,937 3,668 3,668
Long-term borrowings ..................................... 13,190 13,115 18,464 17,710
Loan commitments and letters of credit ........................ 125 899 194 1,014
(1) Estimated fair values are consistent with an exit price concept. The assumptions used to estimate the fair
values are intended to approximate those that a market participant would use in a hypothetical orderly
transaction. In estimating fair value, the Company makes adjustments for interest rates, market liquidity and
credit spreads as appropriate.
(2) The estimated fair value of portfolio loans assumes sale of the loans to a third-party financial investor.
Accordingly, the value to the Company if the loans were held to maturity is not reflected in the fair value
estimate. In the current whole loan market, financial investors are generally requiring a higher rate of return
than the return inherent in loans if held to maturity. The fair value discount at December 31, 2010 was $8.1
billion or 10.4 percent.
(3) Excluded from this table is the lease carrying amount of $1.8 billion at December 31, 2010 and $2.1 billion
at December 31, 2009.
NOTE 22. BUSINESS SEGMENT INFORMATION
Regions’ segment information is presented based on Regions’ key segments of business. Each segment is a
strategic business unit that serves specific needs of Regions’ customers. The Company’s primary segment is
Banking/Treasury, which represents the Company’s branch network, including consumer and commercial
banking functions, and has separate management that is responsible for the operation of that business unit. This
segment also includes the Company’s Treasury function, including the Company’s securities portfolio and other
wholesale funding activities.
In addition to Banking/Treasury, Regions has designated as distinct reportable segments the activity of its
Investment Banking/Brokerage/Trust and Insurance divisions. Investment Banking/Brokerage/Trust includes
trust activities and all brokerage and investment activities associated with Morgan Keegan. Insurance includes all
business associated with commercial insurance and credit life products sold to consumer customers.
During 2010, minor reclassifications were made from the Banking/Treasury segment to the Insurance
segment to more appropriately present management’s current view of the segments. The 2009 and 2008 amounts
presented below have been adjusted to conform to the 2010 presentation.
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