Regions Bank 2011 Annual Report Download - page 194

Regions maintains a repurchase liability related to mortgage loans sold with representations and warranty
provisions. This repurchase liability is reported in other liabilities on the consolidated balance sheets and reflects
management’s estimate of losses based on historical repurchase and loss trends, as well as other factors that may
result in anticipated losses different from historical loss trends. Adjustments to this reserve are recorded in other
non-interest expense on the consolidated statements of operations. The table below presents an analysis of
Regions’ repurchase liability, related to mortgage loans sold with representations and warranty provisions, for the
years ended December 31:
2011 2010
(In millions)
Beginning balance .............................................. $32 $30
Additions/(reductions), net .................................... 23 18
Losses .................................................... (23) (16)
Ending balance ................................................. $32 $32
During 2011, settled repurchase claims were related to one of the following alleged breaches: 1)
underwriting guideline violations; 2) misrepresentation of income, assets or employment; or 3) property
valuation not supported. These claims stem primarily from the 2006-2008 vintages.
NOTE 8. PREMISES AND EQUIPMENT
A summary of premises and equipment at December 31 is as follows:
2011 2010
(In millions)
Land .................................................... $ 492 $ 509
Premises and improvements .................................. 1,706 1,722
Furniture and equipment ..................................... 1,106 1,115
Software ................................................. 279 240
Leasehold improvements .................................... 425 416
Construction in progress ..................................... 188 173
4,196 4,175
Accumulated depreciation and amortization ..................... (1,821) (1,606)
$ 2,375 $ 2,569
NOTE 9. INTANGIBLE ASSETS
GOODWILL
Goodwill allocated to each reportable segment as of December 31 is presented as follows:
2011 2010
(In millions)
Banking/Treasury ................................................... $4,691 $4,691
Investment Banking/Brokerage/Trust .................................... — 745
Insurance .......................................................... 125 125
$4,816 $5,561
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