Regions Financial Corporation · NYSE:RF

Regions Financial — Investor Presentation (October 2003)

33 slides from Regions Financial's investor presentation, Oct 28, 2003

  1. Slide 1: Regions Financial Corporation

    Regions Financial Corporation

  2. Slide 2: Forward-Looking Statement

    FORWARD-LOOKING STATEMENT The information contained in this presentation may include forward-looking statements that reflect Regions' current views with respect to future events and financial performance. You should not place undue reliance on these statements as the forward-looking statements are b

  3. Slide 3: Regions Financial Corporation

    REGIONS FINANCIAL CORPORATION $48.8 billion in assets at September 30, 2003 685 banking offices in 9 states 146 brokerage offices in 15 states and Canada Insurance relationships throughout U.S. $2.8 billion in mortgage production during the third quarter Serving 2 million households 15,969 employees

  4. Slide 4: Regions Financial Corporation Footprint

    [REGIONS FINANCIAL CORPORATION FOOTPRINT (© Regions Bank

  5. Slide 5: Regions Financial Corporation Footprint

    ‘ASorngikd REGIONS FINANCIAL CORPORATION FOOTPRINT Regions Bank = Morgan Kegs A& Insurance W@Covingion Louise ‘Blexingon Ritmo Bowling Green Pa Hea Laer

  6. Slide 6: Market Focus: Population Growth

    2000-2002 2002-2007 2007 0.019 0.048 31.3 0.029 0.072 34.6 31.6 North 45.9 46.9 45 43.9 MARKET FOCUS POPULATION GROWTH Based on data produced by Claritas, Inc. (Regions Footprint includes the states of Alabama, Arkansas, Florida, Georgia, Louisiana, North Carolina, South Carolina, Tennessee and Texa

  7. Slide 7: Banks Positioned for Growth

    BANKS POSITIONED FOR GROWTH Realignment of banking units Completed product simplification Streamlined credit processes Focused emphasis on corporate banking Named #1 in the nation in friendliness to small business by the U.S. Small Business Administration

  8. Slide 8: Quality of Service

    QUALITY OF SERVICE GROUP 1999 2000 2001 2002 3Q03 Deposit Operations Regions Call Center Regions Solutions Center Loan Operations Technology System Availability Technology Service Standards Collection and Recovery RMI HR on Call ATM Uptime E-Commerce

  9. Slide 9: 2003 Sales Focus

    2003 SALES FOCUS CHAIRMAN'S CLUB / CHART-THE-COURSE Outbound Calls 733,003 1,000,150 36.4% Completed Profiles 266,410 468,920 76.0% Relationship Bank Referrals 272,859 406,378 48.9% Teller Referrals 490,540 960,642 95.8% YTD 3Q02 YTD 3Q03 % Change * As of 9/30/03 there are 139 branches on track to b

  10. Slide 10: Equity AssetLine

    3Q02 4Q02 1Q03 2Q03 3Q03 Regions 1078 1124 1225 1431 1612 49% EQUITY ASSETLINE

  11. Slide 11: E-Banking

    E-BANKING Online strategy which supports corporate strategy Consumer on-line banking 56,000 new online bank customers in 2003 Deposit gathering strategy for new markets Improved retention of MainSail customers with free bill pay Small business on-line banking 29% increase in new online bank customer

  12. Slide 12: Regions Financial Corporation Call Center

    REGIONS FINANCIAL CORPORATION CALL CENTER 3 million customer contacts per month Mortgage cross-sell initiative 2x2x2 Retention Program Loans By Phone sales initiative - nearly 300% increase in loans booked YTD 2003 compared to FY 2002 60,000 new product sales over last 12 months

  13. Slide 13: New Branches (2003)

  14. Slide 14: Fee Income as Percentage of Total Revenues

    1Q01 3Q02 3Q03 Banking 85.1 90.3 96.6 Investment Banking/Brokerage/Trust 25.3 138.9 158.4 Mortgage Banking 28.1 57.1 73.7 Insurance 8.5 17.7 19 48.5% 44.4% 29.7% FEE INCOME AS PERCENTAGE OF TOTAL REVENUES Excludes securities gains = Banking = Mortgage Banking = Investment Banking/Brokerage/Trust = I

  15. Slide 15: Morgan Keegan Adapting to Market Conditions

    1st Qtr 2nd Qtr 3rd Qtr 4th Qtr East 20 38 23 14 5 20 West 30.6 38.6 34.6 31.6 North 45.9 46.9 45 43.9 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 7.5 27.7 38.6 8.3 18 MORGAN KEEGAN ADAPTING TO MARKET CONDITIONS 1st Qtr 2nd Qtr 12 39 28 17 4 12 30.6 38.6 34.6 31.6 45.9 46.9 45 43.9 FYE 7/31/93 FYE 7/31/98 YTD 9

  16. Slide 16: Morgan Keegan Retail Operations Private Client Revenue

    YTD 9/30/00 YTD 9/30/01 YTD 9/30/02 YTD 9/30/03 2002 9/30/2003 3Q02 4Q02 1Q03 2Q03 Private Client Revenue 180.2 177.1 129.3 144.7 44.4 53.6 0.7 0.7 0.71 0.73 MORGAN KEEGAN RETAIL OPERATIONS PRIVATE CLIENT REVENUE ($ IN MILLIONS) $129.3 $144.7

  17. Slide 17: Morgan Keegan Fixed Income Revenues

    Municipal Corporate Gov't MBS Other 55.1 39.2 79.9 49.8 11.7 MORGAN KEEGAN FIXED INCOME REVENUES = Municipal = Corporate = Government Agency = MBS = Other

  18. Slide 18: Morgan Keegan Customer Assets

    1999 3/31/2002 9/30/2002 3/31/2003 9/30/2003 All Other 179 32.5 31.1 33 37.4 32.5 28.1 29.2 32.3 MORGAN KEEGAN CUSTOMER ASSETS Total Customer Assets Asset Value at Market Rate Market rate = 60% S&P 500 / 40% Lehman Aggregate Bond Index

  19. Slide 19: Regions Financial Corporation Mortgage Operations

    REGIONS FINANCIAL CORPORATION MORTGAGE OPERATIONS Regions Mortgage Conforming loans Servicing operations EquiFirst Non-conforming loans Sold on a whole loan basis at a premium, servicing released Regions Funding Warehouse lender

  20. Slide 20: Mortgage-Related Revenues

    2001 2002 YTD 9/30/03 Gain on Sale of Mortgage Loans 22.9 87.4 135.2 Servicing Fees 70.9 72.1 76.2 Origination Fees 26.1 31.5 42.7 MORTGAGE-RELATED REVENUES = Servicing Fees = Gain on Sale of Mortgage Loans = Origination Fees Annualized

  21. Slide 21: Mortgage Operations Year-to-Date Third Quarter 2003

    Regions Mortgage EquiFirst Regions Mortgage EquiFirst YTD 3Q03 17266 83858 17266 83858 MORTGAGE OPERATIONS YEAR-TO-DATE THIRD QUARTER 2003 Gain On Sale Of Mortgage Loans = Regions Mortgage = EquiFirst

  22. Slide 22: Financial Performance

    ta FINANCIAL PERFORMANCE

  23. Slide 23: Earnings Per Diluted Share

    (PER SHARE) 1Q01 2Q01 3Q01 4Q01 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 0.6 0.62 0.65 0.66 0.66 0.67 0.7 0.7 0.71 0.73 0.73 EARNINGS PER DILUTED SHARE* *Adjusted for effect of FAS 142 and one time non-recurring charges in 2Q01

  24. Slide 24: Past Due Loans

    1999 2000 2001 2002 9/30/2003 East 0.0168 0.0149 0.0151 0.012 0.0094 PAST DUE LOANS > 30 DAYS AS A PERCENTAGE OF OUTSTANDING LOANS

  25. Slide 25: Classified Loans

    2001 2002 9/30/2003 37986 East 1.32 1.04 0.89 CLASSIFIED LOANS $0.9 $1.3

  26. Slide 26: Loan Loss Reserve as a Percentage of Loans

    12/31/2000 12/31/2001 12/31/2002 YTD 9/30/03 East 0.012 0.0136 0.0141 0.0144 LOAN LOSS RESERVE AS A PERCENTAGE OF LOANS

  27. Slide 27: Net Loan Losses at Regions Historically Below Industry

    NET LOAN LOSSES AT REGIONS HISTORICALLY BELOW INDUSTRY 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 1Q03 2Q03 3Q03 Regions 0.0044 0.0035 0.0028 0.0019 0.0017 0.0013 0.0015 0.0025 0.0028 0.0037 0.0031 0.0041 0.0036 0.0025 0.0029 0.0039 Industry* 0.0143 0.0159 0.0127 0.0085 0.005 0

  28. Slide 28: Balance Sheet Focus

    REGIONS FINANCIAL CORPORATION BALANCE SHEET FOCUS Balance sheet used to support customer business Securities portfolio used for managing interest-rate sensitivity Securities as a percentage of total assets are approximately 18% Deposit mix has changed to favor low-cost deposits Capital management fo

  29. Slide 29: Capital Management Focus

    CAPITAL MANAGEMENT FOCUS Use of quadrant strategy to manage capital allocation decisions Incentive compensation for bank management is tied to return on risk-adjusted capital Refining tools to measure risk-adjusted return at the customer level Focus on customer and product profitability Board author

  30. Slide 30: Outstanding Dividend Record

    * 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 0.037 0.075 0.081 0.085 0.089 0.095 0.111 0.134 0.143 0.159 0.173 0.191 0.205 0.227 0.255 0.291 0.345 0.364 0.382 0.418 0.436 0.455 0.52 0.6 0.66 0.7 0.8 0.92 1 1.08 1.12 1.16 1.24 32 Consecutive Yea

  31. Slide 31: Regions Trades at a Discount to Peers

    Peers* Alabama-Based Peers** Regions 9/30/2003 3Q02 4Q02 1Q03 2Q03 Peers* 13.3 12.9 11.9 53.6 0.7 0.7 0.71 0.73 Regions 11.9 REGIONS TRADES AT A DISCOUNT TO PEERS As of September 30, 2003 *Peers include publicly traded commercial banks with market caps between $5.0 and $35.0 billion. **Alabama-Based

  32. Slide 32: Regions Financial Corporation

    REGIONS FINANCIAL CORPORATION... A diversified provider of financial services products Operating in strong markets and communities across the South With a long history of consistent performance for shareholders

  33. Slide 33: Regions Financial Corporation

    Regions Financial Corporation

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