Regions Bank 2011 Annual Report Download - page 200

CUSTOMER-RELATED BORROWINGS
Repurchase agreements are also offered as commercial banking products as short-term investment
opportunities for customers. At the end of each business day, customer balances are swept into the agreement
account. In exchange for cash, Regions sells the customer securities with a commitment to repurchase them on
the following business day. The repurchase agreements are collateralized to allow for market fluctuations.
Securities from Regions Bank’s investment portfolio are used as collateral. From the customer’s perspective, the
investment earns more than a traditional money market instrument. From Regions’ standpoint, the repurchase
agreements are similar to deposit accounts, although they are not insured by the FDIC or guaranteed by the
United States or agencies. Regions Bank does not manage the level of these investments on a daily basis as the
transactions are initiated by the customers. The level of these borrowings can fluctuate significantly on a
day-to-day basis.
Regions, through Morgan Keegan, maintains two types of liabilities for its brokerage customers that are
classified as short-term borrowings since Morgan Keegan pays its customers interest related to these liabilities.
The brokerage customer position liability represents liquid funds in the customers’ brokerage accounts. The
short-sale liability represents Regions’ trading obligations to deliver to customers securities at a predetermined
date and price. The balances of these liabilities fluctuate frequently based on customer activity.
Customer collateral includes cash collateral posted by customers related to derivative transactions by swap
customers of Morgan Keegan.
NOTE 12. LONG-TERM BORROWINGS
Long-term borrowings at December 31 consist of the following:
2011 2010
(In millions)
Regions Financial Corporation (Parent):
LIBOR floating rate senior notes due June 2012 .................................... $ 350 $ 350
4.875% senior notes due April 2013 .............................................. 249 249
7.75% senior notes due November 2014 ........................................... 694 692
5.75% senior notes due June 2015 ............................................... 496 495
7.75% subordinated notes due March 2011 ........................................ — 502
7.00% subordinated notes due March 2011 ........................................ — 500
6.375% subordinated notes due May 2012 ......................................... 600 599
7.75% subordinated notes due September 2024 ..................................... 100 100
6.75% subordinated debentures due November 2025 ................................. 162 162
7.375% subordinated notes due December 2037 .................................... 300 300
6.625% junior subordinated notes due May 2047 .................................... 498 498
8.875% junior subordinated notes due June 2048 .................................... 345 345
Other long-term debt .......................................................... 6 7
Valuation adjustments on hedged long-term debt .................................... 87 108
3,887 4,907
Regions Bank:
Federal Home Loan Bank structured advances ...................................... — 200
Other Federal Home Loan Bank advances ......................................... 1,914 3,515
3.25% senior bank notes due December 2011 ...................................... — 2,000
4.85% subordinated notes due April 2013 ......................................... 497 494
5.20% subordinated notes due April 2015 ......................................... 347 347
7.50% subordinated notes due May 2018 .......................................... 750 750
6.45% subordinated notes due June 2037 .......................................... 497 497
Other long-term debt .......................................................... 175 376
Valuation adjustments on hedged long-term debt .................................... 43 104
4,223 8,283
$8,110 $13,190
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