Regions Bank 2012 Annual Report Download - page 81

Table 3 “Consolidated Average Daily Balances and Yield/Rate Analysis for Continuing Operations”
presents a detail of net interest income (on a taxable-equivalent basis), the net interest margin, and the net interest
spread.
Table 3—Consolidated Average Daily Balances and Yield/Rate Analysis from Continuing Operations
2012 2011 2010
Average
Balance
Income/
Expense
Yield/
Rate
Average
Balance
Income/
Expense
Yield/
Rate
Average
Balance
Income/
Expense
Yield/
Rate
Assets (Dollars in millions; yields on taxable-equivalent basis)
Interest-earning assets:
Federal funds sold and securities purchased under
agreements to resell ......................... $ — $ — — %$ 4 $ — — %$ 377 $ 2 0.53%
Trading account assets ......................... 134 3 2.24 166 4 2.41 175 7 4.00
Securities:
Taxable ................................... 26,667 681 2.55 24,586 758 3.08 23,851 873 3.66
Tax-exempt ................................ 17 — — 31 — — 44 1 2.27
Loans held for sale ............................ 1,150 33 2.87 1,131 35 3.09 1,281 39 3.04
Loans, net of unearned income (1) (2) ............... 76,035 3,227 4.24 80,673 3,477 4.31 86,660 3,734 4.31
Other interest-earning assets ..................... 3,792 9 0.24 5,623 13 0.23 5,119 13 0.25
Total interest-earning assets ............... 107,795 3,953 3.67 112,214 4,287 3.82 117,507 4,669 3.97
Allowance for loan losses ......................... (2,376) (3,114) (3,187)
Cash and due from banks ......................... 1,836 1,988 2,021
Other non-earning assets ......................... 14,927 15,631 16,379
$122,182 $126,719 $132,720
Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Savings accounts ............................. $ 5,589 4 0.07 $ 5,062 5 0.10 $ 4,459 4 0.09
Interest-bearing transaction accounts .............. 19,419 23 0.12 15,613 27 0.17 14,404 32 0.22
Money market accounts—domestic (7) ............. 24,116 43 0.18 25,117 72 0.29 26,737 116 0.43
Money market accounts—foreign (7) .............. 355 — — 544 1 0.18 653 1 0.15
Time deposits—customer ....................... 16,484 214 1.30 21,635 367 1.70 26,236 601 2.29
Total customer deposits—interest-bearing ........ 65,963 284 0.43 67,971 472 0.69 72,489 754 1.04
Time deposits—non customer ................... 3 — — 11 — — 54 1 1.85
Total treasury deposits—interest-bearing ........... 3 — — 11 — — 54 1 1.85
Total interest-bearing deposits (4) ........... 65,966 284 0.43 67,982 472 0.69 72,543 755 1.04
Federal funds purchased and securities sold under
agreements to repurchase ..................... 1,852 2 0.11 1,801 (1) (0.06) 1,983 3 0.15
Other short-term borrowings .................... 251 — — 186 — — 331 1 0.30
Long-term borrowings ......................... 6,694 317 4.74 11,240 371 3.30 15,489 489 3.16
Total interest-bearing liabilities (5) ................ 74,763 603 0.81 81,209 842 1.04 90,346 1,248 1.38
Net interest spread ...................... 2.86 2.78 2.59
Customer deposits—non-interest-bearing (4) (5) (7) ...... 29,364 27,689 23,946
Other liabilities ................................. 3,020 2,471 2,512
Stockholders’ equity ............................. 15,035 15,350 15,916
$122,182 $126,719 $132,720
Net interest income/margin on a taxable-equivalent
basis from continuing operations (3) (6) ......... $3,350 3.11% $3,445 3.07% $3,421 2.91%
(1) Loans, net of unearned income include non-accrual loans for all periods presented.
(2) Interest income includes loan fees of $65 million, $50 million and $37 million for the years ended December 31, 2012, 2011 and 2010,
respectively.
(3) The computation of taxable-equivalent net interest income is based on the stautory federal income tax rate of 35%, adjusted for
applicable state income taxes net of the related federal tax benefit.
(4) Total deposit costs may be calculated by dividing total interest expense on deposits by the sum of interest-bearing deposits and non-
interest bearing deposits. The rates for total deposit costs equal 0.30%, 0.49% and 0.78% for the years ended December 31, 2012, 2011
and 2010, respectively.
(5) Total funding costs from continuing operations may be calculated by dividing total interest expense on interest-bearing liabilities by the
sum of interest-bearing liabilities and non-interest bearing deposits. The rates for total funding costs from continuing operations equal
0.58%, 0.77% and 1.09% for the years ended December 31, 2012, 2011, and 2010, respectively.
(6) The table above does not include average assets, average liabilities, interest income or interest expense for discontinued operations (see
Note 3 to the consolidated financial statements). If these assets, liabilities, and net interest income were included in the calculation, the
consolidated net interest income and margin on a taxable equivalent basis would be $3,356 million and 3.10%, $3,476 million and 3.05%
and $3,464 million and 2.90% for the years ended December 31, 2012, 2011, and 2010, respectively.
(7) Prior period amounts have been reclassified to conform to the current period classification.
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