Regions Financial Corporation · NYSE:RF
Regions Financial — Robinson-Humphrey's 30th Annual Institutional Conference (April 2001)
20 slides from Regions Financial's conference presentation, Apr 9, 2001
Slide 1: Robinson-Humphrey's 30th Annual Institutional Conference
Reoions i Robinson-Humphrey’s 30" Annual Institutional Conference Atlanta, Georgia April 9, 2001
Slide 2: Key Highlights
Key Highlights A leading financial service provider in the South Client focused sales culture and product set Superior credit culture Constant emphasis on enhanced productivity and cost control With Morgan Keegan and Rebsamen, Regions provides full service banking, brokerage, capital markets and ins
Slide 3: Significant Lines of Business at Regions
Significant Lines of Business at Regions e Deposit Franchise © 90% Core deposits 12th largest branch distribution network e Trust Business $57.7 million annual revenues $20.7 billion in total trust assets e Mortgage Servicing and Origination ¢ $21.6 billion servicing portfolio ¢ $2.4 billion product
Slide 4: Strong Market Share in Footprint
Strong Market Share in Footprint mm Top 3Market Share 4th to 6th in Market Share |S Deposit Presence Some: SNL DaaSouce 3.0, Branch dae of 3009, Regions
Slide 5: Regions Continues to Grow
Regions Continues to Grow Core Deposits S$ in millions $27,016 $27,079 $26,834 $26,535 | 1Q00 2Q00 3Q00 4Q00 Quarterly average core deposits, excluding acquisitions and wholesale deposits ; Regions
Slide 6: Diversified Loan Portfolio
Diversified Loan Portfolio December 31, 2000 (8 in billions) Construction 10% ‘Mortgages 9% Commercial Total Total Consumer Commercial 48% 52% Commercial Loans and Leases 23% Total $31.4 billion Regions
Slide 7: Banks with Proven Commercial Real Estate Credit Management Skill
Banks with Proven Commercial Real Estate Credit Management Skill 1991-2000 Avg. CRE Maximum CRE Net CRE Loans as a% of Net Chargeoff Ratio* Chargeoff Ratio Total Loans 9/30/00 Regions Financial Corporation 0.04% 0.18% 31% NCBC/ CCB Pro Forma 0.04 0.19 34 SouthTrust Corporation 0.05 0.18 44 Marshall
Slide 8: Regions Superior Credit Culture is Founded on Knowledge of the Customer and Relationship Banking
Regions Superior Credit Culture is Founded on Knowledge of the Customer and Relationship Banking 2000 1999 Net charge-offs $ 94,108 $ 99,188 Period-end loans past-due >90 days $ 35,903 $ 71,952 Period-end non-performing assets* $274,691 $262,908 Period-end non-performing assets as a % of loans and l
Slide 9: Net Loan Losses at Regions Historically Below Industry
Net Loan Losses at Regions Historically Below Industry 1.60% 4 + Regions = Industry* 1.40% 4 1.20% 4 1.00% + 0.80% | 0.60% | 0.40% | 0.20% 4 ee 0.00% ee 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 *EDIC-insured commercial banks. For 2000, year-to-date September 30, 2000 annualized. Region
Slide 10: Regions Maintains an Ongoing Focus on Productivity and Expense Control
Regions Maintains an Ongoing Focus on Productivity and Expense Control e@Rationalizing branch distribution network in 2001 eContinued consolidation and centralization of back-office operations eContinued emphasis on alternative, lower cost delivery channels e@Back-office support functions utilizing
Slide 11: Morgan Keegan Transaction Complete
Morgan Keegan Transaction Complete @ Closed on March 30, 2001 e@ Improved exchange ratio for Regions ¢ .96 actual vs. 1.08 at announcement ¢ 2,550,803 less Regions shares issued @ Financing in place ¢ $287 million retail trust preferred securities $500 million subordinated notes Regions
Slide 12: Strategic Rationale for Morgan Keegan Acquisition
Strategic Rationale for Morgan Keegan Acquisition A Transforming Transaction for Regions © Create Leading Diversified Financial Services Company in the South ¢ Increase non-interest income to 40% of net revenues © Significantly expand Regions” product capabilities © Improve focus on middle market co
Slide 13: Regions' Institutional and Corporate Focus
Regions’ Institutional and Corporate Focus © Regions’ traditional lending and banking relationships expanded and deepened with Morgan Keegan fixed income and equity capabilities @ Fixed Income © Municipal bond underwriting — ranked number 1 in core region with 28.1% market share © Corporate bond und
Slide 14: Dominant Coverage of the South
Dominant Coverage of the South Regions Ss ¥729 Branches ¥ 128 Financial Advisors Top market share in numerous Southern MSAs $43.7 billion in assets $20.7 billion in trust assets Morgan Keegan ve 50 Offices 761 Financial Advisors $25 billion of assets in customer ‘accounts 1% ine nesons oe * Gram ara
Slide 15: Synergies
Synergies Conservative assumptions: significant long-term upside e@ Expense Savings: $14 MM pre-tax in 2002 ¢ 2.9% of Morgan Keegan and RICI LTM operating expense ¢ Combine back office ¢ Leverage Regions infrastructure @ Revenue Enhancements: $10 MM pre-tax in 2002 ¢ 2.4% of Morgan Keegan and RICI L
Slide 16: Rebsamen Acquisition Triples Regions Insurance Revenues
Rebsamen Acquisition Triples Regions Insurance Revenues e@ Rebsamen acquisition adds $26 million in insurance revenues to Regions existing $14.5 million in annual insurance revenues @ Rebsamen’s business complements Regions middle market and small business customer base ¢ 70% of Rebsamen’s business
Slide 17: Better Diversified Revenue Stream
Better Diversified Revenue Stream ‘Morgan Keegan 50%| Non-interest income as % of revenues 40% . 30% 32% 30% 20% 10%: ov + 4th Qi 2000 Pee Group Pro forma 4th ‘Qér 2000 Regions 19
Slide 18: Earnings Momentum Increasing
Earnings Momentum Increasing Further interest margin improvement expected Fee revenues up 12% in 2000 Morgan Keegan revenues up 23% in first half of fiscal 2001 Control of expenses continue in 2001 Strong capital levels support stock buyback activity Regions 2 gyo
Slide 19: Key Highlights
Key Highlights A leading financial service provider in the South Client focused sales culture and product set Superior credit culture Excellent cost control Experienced management team Regions transformed into a diversified financial services organization providing full service banking, brokerage, c
Slide 20: Regions
Reoions I
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