Regions Bank 2011 Annual Report Download - page 229

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, 2011 December 31, 2010
Level 1 Level 2 Level 3
Total
Fair Value Level 1 Level 2 Level 3
Total
Fair Value
(In millions) (In millions)
Trading account assets .......................
U.S. Treasury securities .................. $212 $ 3 $— $ 215 $157 $ 14 $— $ 171
Obligations of states and political
subdivisions ......................... — 101 139 240 — 190 165 355
Mortgage-backed securities:
Residential agency .................. — 359 — 359 — 145 — 145
Residential non-agency .............. — — — — — — — —
Commercial agency ................. — — 51 51 — — 54 54
Other securities ........................ — 35 1 36 — 58 10 68
Equity securities ....................... 365 — — 365 323 — — 323
Total trading account assets(1) ................. $577 $ 498 $191 $ 1,266 $480 $ 407 $229 $ 1,116
Securities available for sale ...................
U.S. Treasury securities .................. $ 98 $ — $— $ 98 $ 91 $ — $— $ 91
Federal agency securities ................. — 147 — 147 — 16 — 16
Obligations of states and political
subdivisions ......................... — 16 20 36 — 13 17 30
Mortgage-backed securities:
Residential agency .................. — 22,175 — 22,175 — 21,845 — 21,845
Residential non-agency .............. — — 16 16 — — 22 22
Commercial agency ................. — 326 — 326 — 112 — 112
Commercial non-agency ............. — 321 — 321 — 100 — 100
Other debt securities .................... — 537 — 537 — 25 — 25
Equity securities(2) .......................... 115 — — 115 158 — — 158
Total securities available for sale .......... $213 $23,522 $ 36 $23,771 $249 $22,111 $ 39 $22,399
Mortgage loans held for sale .................. $— $ 844 $— $ 844 $— $ 1,174 $— $ 1,174
Mortgage servicing rights .................... $— $ — $182 $ 182 $— $ — $267 $ 267
Derivative assets
Interest rate swaps ...................... $— $ 2,758 $— $ 2,758 $— $ 2,047 $— $ 2,047
Interest rate options ..................... — 28 13 41 — 39 6 45
Interest rate futures and forward
commitments ........................ — 11 — 11 — 29 6 35
Other contracts ........................ — 43 — 43 — 21 — 21
Total derivative assets(3)(4) .................... $— $ 2,840 $ 13 $ 2,853 $— $ 2,136 $ 12 $ 2,148
Trading account liabilities ....................
U.S. Treasury securities .................. $— $ 97 $— $ 97 $— $ 95 $— $ 95
Obligations of states and political
subdivisions ......................... — 2 — 2 — — — —
Mortgage-backed securities:
Residential agency .................. — 133 — 133 — 46 — 46
Commercial agency ................. — — 5 5 — — 6 6
Other securities ........................ — 16 2 18 — 23 4 27
Equity securities ....................... 1 — — 1 — — — —
Total trading account liabilities(5) .............. $ 1 $ 248 $ 7 $ 256 $— $ 164 $ 10 $ 174
Derivative liabilities ........................
Interest rate swaps ...................... $— $ 2,416 $— $ 2,416 $— $ 1,950 $— $ 1,950
Interest rate options ..................... — 28 — 28 — 26 3 29
Interest rate futures and forward
commitments ........................ — 34 — 34 — 9 1 10
Other contracts ........................ — 36 — 36 — 19 — 19
Total derivative liabilities(3)(4) ................. $— $ 2,514 $— $ 2,514 $— $ 2,004 $ 4 $ 2,008
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