Regions Financial Corporation · NYSE:RF
Regions Financial — Citi Financial Services Conference 2010
21 slides from Regions Financial's conference presentation, Mar 10, 2010
Slide 1: Citi Financial Services Conference
Citi Financial Services Conference March 10, 2010 Exhibit 99.1
Slide 2: Investor Real Estate $21.7bn, 24% of Total Portfolio
Investor Real Estate $21.7bn 24% Remaining Portfolio $69.0bn / 76% Investor Real Estate - $21.7bn 24% of Total Portfolio › Reduced by $4.1 billion, or 16%, since 2006 › Land/Single Family/Condo down $6.6bn › Excluding Business and Community, portfolio comprises 20% of total portfolio › Our goal is t
Slide 3: Investor Real Estate Portfolio is Diversified
Investor Real Estate Portfolio is Diversified 24% of Total Portfolio* Other*** $3.3bn / 15% FL $5.0bn / 23% GA $2.4bn / 11% TX $2.2bn / 10% AL $1.9bn / 9% TN $1.7bn / 8% NC $1.3bn / 6% LA - $0.9bn / 5% SC - $0.8bn / 4% IL - $0.7bn / 3% AR - $0.5bn / 2% Product Geography** IN - $0.5bn / 2% VA - $0.5b
Slide 4: Charge-Offs Stabilizing but Remain Elevated
Charge-Offs Stabilizing but Remain Elevated $0 $250 $500 $750 $1,000 4Q08 1Q09 2Q09 3Q09 4Q09 Business Services Consumer Sales/Transfer to HFS $ millions $796 $390 $491 $680 $692
Slide 5: Gross and Net NPA Migration Declining
Gross and Net NPA Migration Declining $ millions Net NPA* Change down 43% 3Q09 to 4Q09 * Excludes non-performing assets held for sale -$500 $0 $500 $1,000 $1,500 $2,000 4Q08 1Q09 2Q09 3Q09 4Q09 Net NPA Change Gross NPA Additions
Slide 6: Gross NPA Migration Declining
Gross NPA Migration Declining $0 $500 $1,000 $1,500 $2,000 1Q09 2Q09 3Q09 4Q09 Land/Condo/Single Family Income Producing CRE Business and Community Commercial Consumer $ millions $1.12B $1.76B $1.67B $1.40B › Non-Performing Asset migration continues to moderate from the 2 quarter high. Quarter over
Slide 7: Disposed of $2.7 Billion in Problem Assets Over Past Months
Disposed of $2.7 Billion in Problem Assets Over Past 15 Months $0 $300 $600 $900 $1,200 4Q08 1Q09 2Q09 3Q09 4Q09 Sales Transfer to HFS $ millions $228 $281 $554 $643 $1,039 Note: $2.7B of dispositions include loans sold or moved to held for sale. The 12/31/09 balance in held for sale was $317MM.
Slide 8: Over 99% of Investment Portfolio is Agency Guaranteed
Over 99% of Investment Portfolio is Agency Guaranteed 12/31/2009 0% 5% 10% 15% 20% 25% 30% RF % Non Agency % Agency Avg = 16.70% Sources: 12/31/09 Call Reports and Earnings Releases Peers include: BAC, BBT, CMA, FITB, KEY, MI, PNC, STI, USB, WFC; MTB
Slide 9: 2009 Risk Weighted Assets/Total Assets
Q4 2009 Risk Weighted Assets/Total Assets Holding Company 69% 71% 73% 80% 82% 84% 85% 86% 89% 92% 93% 104% RF Peer Median 85% Source – FR Y-9 – 12/31/09 Peers include: BAC, BBT, CMA, FITB, KEY, MI, PNC, STI, USB, WFC; MTB
Slide 10: Regions' Capital Levels Strong and Comparable to Peers
7.2 11.5 RF Tier 1 T1C Regions’ Capital Levels Strong and Comparable to Peers Peers include: BAC, BBT, CMA, FITB, KEY, MI, PNC, STI, USB, WFC; MTB Capital ratios as of December 31, 2009 Source: SNL and Company Reports
Slide 11: Superior Customer Satisfaction Drives Growth
0.000 Superior Customer Satisfaction Drives Growth 1.6% 11.4% 794,236 1,008,106 6.1% 10.4% New Checking Sales Attrition Household Growth
Slide 12: Result = Increased Customer Deposits and Lower Cost
Result = Increased Customer Deposits and Lower Cost › Opened a record 1,000,000+ new retail and business checking accounts in 2009 › Retention remains better than industry norms and at historical highs › Average customer deposits grew $1.6 billion linked quarter; over $8.4 billion year-over-year › T
Slide 13: Credit Available, but Demand Remains Soft
48.9% 47.5% 45.4% 42.8% 41.2% Credit Available, but Demand Remains Soft › Commitment levels remain high › Utilization rates reflect weaker demand but stabilizing ($ in billions) Commercial $25.0 $24.9 $24.5 $25.5 $24.9 $- $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 Dec'08 Mar‘09 Jun‘09 Sept‘09 Dec'09 40% 42%
Slide 14: Small Business Lending Stabilizing
57.5% 57.6% 57.0% 57.3% 57.5% 56.9% 56.2% 57.1% Small Business Lending Stabilizing Small Business ($ in billions) $4.6 $4.5 $4.4 $4.4 $4.5 $4.6 $4.5 $4.5 $2.5 $3.0 $3.5 $4.0 $4.5 $5.0 Jun'09 July'09 Aug'09 Sept'09 Oct'09 Nov'09 Dec'09 Jan'10 50% 51% 52% 53% 54% 55% 56% 57% 58% 59% 60% Commitments Ut
Slide 15: PPNR Trend
PPNR Trend 2,865 2,918 2,959 3,335 3,843 4,398 (3,704) (3,965) (3,991) (856) (483) (255) ($5,000) ($2,500) $0 $2,500 $5,000 $7,500 $856 $483 $255 Recession-Related Expenses 19% 11% 6% Recession-Related Expenses as a % of Core Non-Interest Expense $1,734 $2,313 $3,017 Core PPNR 2009* 2008* 2007* ($ i
Slide 16: Steady Net Interest Income and Resulting Margin; Expected to Rise
Steady Net Interest Income and Resulting Margin; Expected to Rise throughout 2010 and Beyond › Stabilized Net Interest Margin; Expected to climb to 3.00% or higher by year-end 2010 › Consistent improvements in pricing of new and renewed loans › Ongoing improvement in deposit mix and pricing with sub
Slide 17: NII Sensitivity
-6.00% -4.00% -2.00% 0.00% 2.00% 4.00% 6.00% +100 Policy Limit -100 NII Sensitivity Timeline
Slide 18: Regions
VN REGIONS
Slide 19: Diversified Southeastern Franchise
Diversified Southeastern Franchise › Strategically important position across a number of Southeastern markets Regions Morgan Keegan Insurance Offices 1,895 As of December 31, 2009
Slide 20: Morgan Keegan
Morgan Keegan - Leading Regional Retail Brokerage, Investment Banking and Financial Services Company Morgan Keegan Highlights › 1,267 Financial Advisors › 324 Offices in 19 States › $76 billion of customer assets › $70 billion of trust assets › $71 million assets per financial advisor › $4.2 billion
Slide 21: Strong and Improving Market Share
Strong and Improving Market Share Note: Based on June 30, 2009 FDIC data per SNL. Adjusted for brokered deposits in MS and GA. State Deposits ($B) Rank AL 18.9 % % FL 17.4 TN 17.3 LA 7.3 MS 7.0 GA 6.4 AR 4.6 TX 3.7 IL 2.7 MO 2.5 IN 2.4 Other 3.5 - - % of Total Mkt. Share
Regions Financial — Citi Financial Services Conference 2010 on 6ix