PREPAID EXPENSES AND OTHER ASSETS (Tables)

12 Months Ended

Sep. 30, 2015

Prepaid Expense and Other Assets [Abstract]

Prepaid expenses and other assets include the following:



	September 30,
	2015		2014
	(in thousands)

Investments in company-owned life insurance ⁽¹⁾	$	320,523	$	287,144
Indemnification asset⁽²⁾	143,144		154,681
Prepaid expenses	87,180		83,509
Investment in FHLB stock	35,582		32,636
Direct investment in LIHTC project partnerships by RJ Bank ⁽³⁾	33,267		16,031
Low-income housing tax credit fund financing asset ⁽⁴⁾	24,452		28,421
Investment in FRB stock	24,450		22,950
OREO ⁽⁵⁾	4,631		5,380
Other assets	32,162		24,504
Prepaid expenses and other assets	$	705,391	$	655,256


(1)	As of September 30, 2015, we own life insurance policies with a cumulative face value of $794.7 million.


(2)	The indemnification asset pertains to legal matters for which Regions has indemnified RJF in connection with our acquisition of Morgan Keegan. The liabilities related to such matters are included in trade and other payables on our Consolidated Statements of Financial Condition. See Note 21 for additional information.


(3)	See the discussion of the accounting policies regarding these investments in the “direct investments in LIHTC project partnerships” section of Note 2.

(4)

In a prior year, we sold an investment in a low-income housing tax credit fund and we guaranteed the return on investment to the purchaser. As a result of this guarantee obligation, we are the primary beneficiary of the fund (see Note 11 for further information regarding the consolidation of this fund) and we have accounted for this transaction as a financing. As a financing transaction, we continue to account for the asset transferred to the purchaser, and maintain a related liability corresponding to our obligations under the guarantee. As the benefits are delivered to the purchaser of the investment, this financing asset and the related liability decrease. A related financing liability in the amount of $24.5 million and $28.4 million is included in trade and other payables on our Consolidated Statements of Financial Condition as of September 30, 2015 and 2014, respectively. See Note 21 for further discussion of our obligations under the guarantee.


(5)	See the discussion of the accounting policies regarding OREO in the “nonperforming assets” section of Note 2.