Regions Financial Corporation · NYSE:RF
Regions Financial — Investor Presentation (July 2009)
107 slides from Regions Financial's investor presentation, Jul 29, 2009
Slide 1: Company Overview
Company Overview C. Dowd Ritter Exhibit 99.1
Slide 2: Seasoned Management/Fresh Perspective
Seasoned Mana g ement/Fresh Perspective O. B. Grayson Hall, Jr. General Banking Group (includes Vice Chairman & all banking offices across Regions Head of General footprint) Banking Group Morgan Keegan Corporate Marketing David B. Edmonds Human Resources Group Senior Executive Vice President Human R
Slide 3: Seasoned Management/Fresh Perspective
Seasoned Mana g ement/Fresh Perspective David H. Rupp Consumer Deposits Senior Executive Vice Consumer & Home Equity Lending President Consumer Card & Payments Services Group Mortgage Banking Branch & ATM Support and Delivery Telephone Banking Retail Ecommerce Sales, Service & Performance Mgnt John
Slide 4: Organizational Structure
Organizational Structure General Bank Lines of Business Central Midsouth Florida Southwest Morgan Keegan Matrix Business Model Support Functions Consumer Services Business Services
Slide 5: Diversified Southeastern Franchise
Diversified Southeastern Franchise Note: Based on June 30, 2008 FDIC data per SNL. Regions Morgan Keegan Insurance › Strategically important position across a number of Southeastern markets Offices 1,899 State Dep. ($B) Mkt. Share Rank % of Total % of Cum. Total AL $ 17.2 23% % 20% TN 16.3 FL 14.3 M
Slide 6: Relative Market Density
Regions 20.7 Median 16.3 % High Relative Market Density 1. Deposits weighted by county. Excludes deposits from branches with > $10bn of deposits. Based on June 30, 2008 FDIC data. Weighted Average Bank Market Share¹ BB&T 22.2 % Wells Fargo 20.3 Comerica 18.8 M&T 18.1 M&I 17.8 Bank of America 16.6 J.
Slide 7: Regional Retail Brokerage Business
#4 Re g ional Retail Brokera g e Business¹ Poised for Strong Results as Market Recovers Mor g an Kee g an Hi g hli g hts › 1,297 Financial Advisors › 324 Offices in 19 States › $71 billion of customer assets › $67 billion of trust assets › $61 million assets per financial advisor › $3.1 billion of n
Slide 8: Total Customer Deposits
Total Customer Deposits Q2 '08 Q3 '08 Q4 '08 Q1 '09 Q2 '09 Strong Account and Deposit Growth with High Customer Retention › Continued customer and deposit growth › Opened a record 491,000 new consumer and business checking accounts in 1H 2009, up 29.7% from 1H 2008 › Top quartile in customer satisfa
Slide 9: Number of Branches
Number of Branches REGIONS
Slide 10: Slide 10
Slide 11: Slide 11
Slide 12: Slide 12
Slide 13: Branch Key Drivers Score Improvement
Green Zone Red Zone 65% 132% KDS (Key Drivers Score) Baseline June 2008 June 2009 Over the past year, the performance of branches has improved dramatically Yellow Zone 8%
Slide 14: Enhanced Capital, Strong Liquidity Position
Enhanced Capital Strong Liquidity Position › Strong deposit growth › No overnight borrowing › Reduced reliance on government funding (1) Peer group includes: Key Corp., SunTrust, Fifth Third, Comerica, Bank of America, BB&T, PNC, Marshall & Ilsley, U.S. Bancorp, and Wells Fargo; results reflect Q209
Slide 15: Regions
IN REGIONS
Slide 16: Credit Quality
Credit Quality Bill Wells
Slide 17: Risk Management Structure
Risk Management Structure Individual Reviews Credit, Legal, Operational, Regulatory, Market, Liquidity, and Reputation Full Board of Directors Risk Committee Board Level Committee Executive Council Credit Risk Committee Asset/Liability Management Committee Operational Risk Committee Reputation and R
Slide 18: Risk Management Actions Post-Merger
Risk Management Actions Post-Merger › Sold Equifirst (subprime originations) immediately post merger in 1Q 2007 › Remaining exposure under $75mm › Moratoriums on higher risk asset classes have been in place (Land and Lots, Condominiums, Retail CRE, etc.) › Sold or moved to held for sale $1.97bn of p
Slide 19: Elevated Credit Costs Driven by Stressed Portfolios
Elevated Credit Costs Driven by Stressed Portfolios (1) Reflects write-downs subsequent to initial move to held for sale (in millions) $ bps $ bps $ bps Net Charge-offs Valuation Losses 6 2 8 7 Other Losses 11 7 2 6 Business Services Residential First Mortgage Equity Lending Other Consumer (5) (27)
Slide 20: Focused on Resolution of Non-Performing Assets
Focused on Resolution of Non-Performing Assets 1. Excludes Held for Sale. › Special Assets Group enhanced to better manage non-performing assets › Redirected efforts of top commercial lenders to focus on mitigating NPA exposure › Loan Evaluation Office (“LEO”) created to facilitate identification of
Slide 21: Gross NPA Migration - $1.8 Billion
Income Producing Real Estate 18% Business and Community 10% Commercial 15% Stressed Real Estate 55% 2Q09 Gross NPA Migration - $1.8 Billion Consumer 2% › Stressed CRE Portfolios continue to drive migration
Slide 22: Credit Quality Consistent with Peer Levels
Credit Quality Consistent with Peer Levels 1. Excludes HFS NPLs. Individual Company data. 2. Excludes HFS NPLs. 3. SNL Peer Data includes BAC, BBT, CMA, FITB, KEY, MI, MTB, PNC, STI, USB, and WFC. Regions Peers³ Net Charge-Offs / Average Loans $982mm of NPAs sold / transferred to HFS 0.85% 0.99% 1.2
Slide 23: Diverse, Relationship-Driven Loan Portfolio
Commercial 37% Home Equity 16% Commercial Real Estate (ex Construction) 17% Residential First Mortgage 16% Diverse, Relationship-Driven Loan Portfolio › Diversified portfolio › Minimal exposure to high risk consumer products (subprime) Loans – $96.1bn Construction 9% Indirect and Other 4%
Slide 24: Reducing Highest Risk Exposures
4Q 2007 2Q 2009 Change Loan % of Loan % of ($ in millions) Balance Portfolio Balance Portfolio $ % Homebuilder Land $ 2,926 2.2 % $ 1,273 1.3 % $(1,653) (56.5)% Lots 1,608 1.7 0.9 (700) (43.5) Residential Presold 0.6 0.3 (366) (59.2) Residential Spec 1,893 2.0 1,098 1.1 (795) (42.0) National Homebui
Slide 25: Reducing Homebuilder Exposure
Land 34% Residential Spec 29% Lots 23% Central 32% Midsouth 31% Florida 24% 48% Reducing Homebuilder Exposure $3.8bn / 3.9% of Total Portfolio 2Q09 By Type 2Q09 By Geography Note: Central includes: AL, GA, SC; Midsouth includes: IL, IN, IA, KY, MO, NC, VA, TN; Southwest includes: AR, LA, MS, TX % of
Slide 26: Reducing Condominium Exposure
9% 1% Reducing Condominium Exposure $711mm / 0.7% of Total Portfolio › Small remaining exposure Effectively Reducing Exposure ($mm) 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 Florida Remaining Portfolio $ 1,367 $ 1,266 $ 1,082 $ 946 $ 850 $ 711 % of Total Portfolio % of Stress Portfolio
Slide 27: Non-Stress Asset Classes Expected to Remain Relatively Low
Non-Stress Asset Classes are Expected to Remain Relatively Low NCOs / Avg. Loans NPLs / Loans $982mm of NPAs sold / transferred to HFS 17.26% 9.70% 0.72% 1.70% 1.14% 1.33% 6.60% 10.02% 3.26% 0.95% 0.58% 0.47% 0.0 % 2.0 % 4.0 % 6.0 % 8.0 % 10.0 % 12.0 % 14.0 % 16.0 % 18.0 % 20.0 % 1Q08 2Q08 3Q08 4Q08
Slide 28: SCAP Net Charge-Off Assumptions vs. Peers
First Lien Mortgages Second / Junior Lien Mortgages CRE Total Other C&I Securities SCAP Net Charge-Off Assumptions vs. Peers 3.4% 11.9% 4.1% 6.3% 13.7% 11.9% 5.9% 13.9% 13.7% 7.8% 10.5% 9.1% Implied Losses $1.0bn $1.1bn $1.2bn $4.9bn $0.8bn $0.2bn $9.2bn Peer Range 4.5% 11.0% 7.0% 0.0% 8.5% 0.2% Reg
Slide 29: Net Charge-Offs Below Fed Stress Test Level
Net Charge-Offs Below Fed Stress Test Level 1,000 1,200 1,400 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 Regulators - Stress Net Charge-Offs Regions - Base Net Charge-Offs Regions - Stress Net Charge-Offs Regions - Actual Net Charge-Offs $ millions $2.3B 2Qtr Cumulative $9.2B $5.9B $3.4B $881MM 2Qtr Cu
Slide 30: Regions
VN REGIONS
Slide 31: Financial Review
Financial Review Irene Esteves
Slide 32: Regions' Current Capital Levels Strong Versus Peers
7.3 7.4 8.1 6.9 7.7 8.4 5.3 7.3 4.5 6.7 7.0 12.9 9.4 10.1 10.5 11.6 11.9 12.2 12.3 12.4 9.8 11.0 RF Tier 1 T1C Regions’ Current Capital Levels Strong Versus Peers Peers include: BAC, BBT, CMA, FITB, KEY, MI, PNC, STI, USB, WFC
Slide 33: Liquidity Position Supported by Strong, Stable Deposit Base
Transaction Acct 37% MMDA & Savings 28% Retail Time 22% Regions’ Liquidity Position is Supported by a Strong and Stable Deposit Base Deposit Profile › Total = $94.5bn › Deposits % of Loans = 98.7% › Core Deposits¹ YTD Change = 7.1% › Core Deposits¹ QoQ Change = 3.4% › 1Q 2009 Average Cost = 1.61% ›
Slide 34: Strong Deposit Growth Decreased Need for Wholesale Funding
Strong Deposit Growth has Decreased the Need for Wholesale Funding $75 $80 $85 $90 $95 $100 $105 Oct- Nov- Dec- Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr- May- Jun- Loans Customer Deposits Customer Deposits up 11.4% Sept ’08 to June ‘09
Slide 35: Government Assisted Liquidity Reduced Significantly
Government Assisted Liquidity Reduced Significantly $0 $2 $4 $6 $8 $10 $12 $14 $16 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 TAF TLGP Excess Reserves & Funds Invested (projected) SCAP delivered- Additional TAF taken as a precaution
Slide 36: Non-Interest Expense Continues to be Well Contained
Non-Interest Expense Continues to be Well Contained Non-Interest Expenses B/(W) ($ in millions except FTE) 4Q08 2Q09 $ 7,273 $ 1,231 FDIC Special Assessment MSR/Securities Impairment Goodwill Impairment 6,000 – Adjusted Non-interest Expense $ 1,163 $ 1,098 6% Headcount 30,601 29,958 2% – Difference
Slide 37: Credit Costs Elevated
Credit Costs Elevated $796 $209 $416 $491 $390 $309 $417 $1,150 $912 $425 $0 $200 $400 $600 $800 $1,000 $1,200 Q2 '08 Q3 '08 Q4 '08 Q1 '09 Q2 '09 NCOs LLP NPA’s NCO’s & LLP Marked to Sale Value $3.4B $2.3B $1.7B $1.8B $1.6B $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 Q2 '08 Q3 '08 Q4 '08 Q1 '0
Slide 38: Q2 2009 Results Reflect Increased Loan Loss Provision
Q2 2009 Results Reflect Increased Loan Loss Provision Difference B/(W) ($ in millions except EPS) Q1 '09 Q2 '09 Pre-tax, Pre-provision Net Revenue $ 817 $ 799 $ (19) Loan Loss Provision (425) (912) (487) Pre-tax Income (113) (506) Tax Expense (315) (75) Preferred Expense (52) (56) (4) Net Income $ 2
Slide 39: Core Earnings Improving
Core Earnings Improving ($ in millions) Q1 '09 Q2 '09 $ % Pre-tax, Pre-provision Net Revenue $ 817 $ 799 $ (19) (2) - Leverage Lease Termination Impact (324) (189) - Security Gains/VISA/TRUPs Exchange (53) (248) (196) - FDIC Special Assessment - - Securities Impairment Adjusted PPNR $ 444 $ 494 $ 50
Slide 40: First Half 2009 Results $1.1B Better Than SCAP Stress Case
First half 2009 results $1.1B better than SCAP stress case * PPNR adjusted for Q2 capital raise activities ($ in millions) Difference RF SCAP B/(W) Net Charge Offs (881) (2,300) 1,419 Provision Over Charge Offs (456) - (456) Total Loan Loss Provision (1,337) (2,300) PPNR* 1,367 1,225 Pre-tax (1,075)
Slide 41: Regions
IN REGIONS
Slide 42: Business Overview
Business Overview Grayson Hall
Slide 43: Geography Review
Geography Review Maximizing our capabilities Branch density creates dominant market position New leadership team in Atlanta
Slide 44: Geography Review
Geography Review Maximizing our capabilities Strong core performance in attracting and satisfying customers in high growth markets
Slide 45: Geography Review
Geography Review Maximizing our capabilities New leadership team in Texas Opportunity to grow with oil and gas industry and coastal ports
Slide 46: Geography Review
Geography Review Maximizing our capabilities Limited franchise but strong deposit growth
Slide 47: Geography Review: Market share strengths and opportunities
Geography Review Market share strengths and opportunities Market share rank of the 434 counties we serve Top 3 (199, 46%) 4 to 7 (148, 34%) 8 or higher (87, 20%)
Slide 48: Customer Focus: Loyalty drives the bottom line
Customer Focus Loyalty drives the bottom line Loyalty Score May-08 J J A S O N D J F M A M Jun-09 Gallup’s 75th Percentile Gallup’s 50th Percentile Regions Percent Highly Loyal
Slide 49: Customer Focus: New checking and savings bundle
Customer Focus New checking and savings bundle attracts customers Monthly New Checking and Savings Accounts 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Savings Accounts Checking Accounts
Slide 50: Customer Focus: Account for Affluent customers
Customer Focus A compelling account for Affluent customers and prospects Affluent Checking Balances & Accounts Opened 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 Accounts Opened Total Balances
Slide 51: Customer Focus: A disciplined process produces sales
Customer Focus A disciplined process produces sales Non-Interest Bearing Balance Growth 16.0 16.5 17.0 17.5 18.0 18.5 19.0 19.5 20.0 Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr- May- Jun-
Slide 52: Customer Focus: Morgan Keegan positioned to deliver value
10% 10% $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 2007 2008 2009 (thru June) Equity Capital Markets Fixed Income Capital Markets Brokerage Trust 10% 11% 31% 22% 20% 38% 47% 21% 18% 36% 39% 7% Customer Focus Morgan Keegan is well positioned to deliver value
Slide 53: Customer Focus: Morgan Keegan Brokerage attracting clients
20% 38% 10% 10% 21% 39% Customer Focus Morgan Keegan Brokerage is attracting more clients and assets $2.36 $3.06 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 Billions Transferred Account Value 2008 2009 YTD 40,800 48,306 10,000 20,000 30,000 40,000 50,000 New Accounts Opened 2008 YTD 2009 YTD
Slide 54: Performance Management: Branch KDS
Performance Management Measure, report and train key behaviors to improve branch performance Branch Key Driver Score (KDS) May-08 J J A S O N D J F M A M Jun-09 Gallup’s 75th Percentile Gallup’s 50th Percentile Regions
Slide 55: Performance Management: Dramatic deposit growth
Performance Management Our customer service and performance management activities have resulted in dramatic deposit growth Total Deposit Balances Jan- Feb- Mar- Apr- May- Jun- Jul-08 Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr- May- Jun-
Slide 56: Performance Management: Cost of deposits decreased
Performance Management Our cost of deposits has decreased dramatically in 2009 Total Interest Bearing Deposit Rate 1.6 1.8 2.0 2.2 2.4 2.6 2.8 3.0 % Interest-Bearing Deposits
Slide 57: Regions
VN REGIONS
Slide 58: Business Services
Business Services Tim Laney
Slide 59: Revenue is Well-Diversified by Line of Business
Revenue is Well-Diversified by Line of Business Product Groups › Treasury Management › Capital Markets › Equipment Finance Specialized Groups › Business Capital (ABL) › Healthcare › Transportation › Public, Institutional, Non-profit › Restaurant & Beverage Commercial & Industrial › Businesses with s
Slide 60: Revenue is Well-Diversified by Product Type
Revenue is Well-Diversified by Product Type 38% 41% 46% 57% 78% 41% 36% 38% 36% 8% 21% 23% 16% 7% 14% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Business Banking Commercial & Industrial Community Banking Private Banking Commercial Real Estate Loan Spread Revenue Deposit/Sweep Spread Revenue Non-Int
Slide 61: Remixing Loans Toward C&I and Small Business
Commercial 39% Non-Owner Occupied Real Estate 38% Owner Occupied Real Estate 23% Commercial 49% Owner Occupied Real Estate 26% Non-Owner Occupied Real Estate 25% Remixing our Loans by Growing C&I, Specialized Industries and Small Business to Further Diversify Revenue and Reduce Risk 2009 2013
Slide 62: Interest-Free Deposit Growth is a Key Benefit
Interest-Free Deposit Growth is a Key Benefit of the Shift from Lender to Banker ($ billions) $12.9 $10.7 $5 $6 $7 $8 $9 $10 $11 $12 $13 $14 June 2008 June 2009
Slide 63: Relationship Banking Results in Stable, Low-Cost Deposits
Money Market excl Euro 22% CDs 15% Interest Bearing Checking 18% Interest- Free Deposits 36% Savings 1% Euro dollar Sweeps 3% Repo Sweeps 5% An Intense Focus on Relationship Banking Results in Stable, Low-Cost Deposits 54% of all deposits are checking June 2009
Slide 64: Reduced Interest Bearing Deposit Yields in Lockstep with LIBOR
We Have Aggressively Reduced Interest Bearing Deposit Yields in Lockstep with LIBOR Rates 2.60% 1.11% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 1Q2008 2Q2009
Slide 65: From Loan Pricing Underperformer to Outperformer
Regions Has Moved From Loan Pricing Underperformer to Outperformer (Risk Adjusted All-In Spread to LIBOR) Data Source: Standard & Poor’s Risk Adjusted All-In Credit Spread Trends Community Banking Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Regions Market CRE Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Regi
Slide 66: Performance is Improving Across Quality Metrics
Composite scores reflect excellent and above average rating less below average and poor rating. Performance is Improving Across Quality Metrics Per Q109 Greenwich & Associates Survey Overall Satisfaction Relationship Manager - Ability to Provide Innovative Advice and Creative Ideas Treasury Manageme
Slide 67: Have Re-Tooled our Leadership Team
We Have Re-Tooled our Leadership Team Business Banking John Asbury › In role since March 2008 › 22 years industry experience › Former Bank of America Commercial & Industrial Sam Tortorici › In role since January 2009 › 20 years industry experience › Former AmSouth Bank Commercial Real Estate Rex Bra
Slide 68: Regions
IN REGIONS
Slide 69: Consumer Services
Consumer Services David Rupp
Slide 70: Growing Consumer Households
Growing consumer households through product, process and performance management – while implementing strategies that deepen customer relationships and drive revenue growth. Consumer Services
Slide 71: Consumer Services Strategic Imperatives
Deepen Customer Relationships Grow Consumer Households Product Process Performance Management Improve The Customer Experience Consumer Services – Strategic Imperatives Drive Revenue Growth
Slide 72: What is Consumer Services?
Deposits Mortgage Consumer Lending Branch Delivery Retail eCommerce Telephone Banking What is Consumer Services? Sales, Service and Performance Management
Slide 73: Record Checking Sales
Record Checking Sales On The “Road to One Million” Total New Checking Account Production 20,000 40,000 60,000 80,000 100,000 Jan Feb Mar Apr May Jun 2008 2009 Up 29% Year Over Year Checking Account is Relationship Foundation
Slide 74: Checking Sales Leading to Quality Core Branch Deposit Growth
Checking Sales are Leading to Quality Core Branch Deposit Growth at a Lower Cost June balances are 5.5% higher than prior year 42 bps reduction since Jan ’09 39.0 39.5 40.0 40.5 41.0 41.5 42.0 42.5 43.0 Jan Feb Mar Apr May Jun 1.4% 1.5% 1.6% 1.7% 1.8% 1.9% 2.0% 2.1% 2.2%
Slide 75: Checking Sales Drive Household Growth with More Savings
0% 2% 4% 6% 8% 2Q-08 3Q-08 4Q-08 1Q-09 2Q-09 22% 24% 26% 28% 30% Percent Growth Savings Penetration Checking Sales Drives Strong Household Growth with More Savings Penetration
Slide 76: Performance Management
Performance Management DEFINED SALES PROCESS VISIBLE ACCOUNTABILITY Activities and Measurement COACHING Small Group and Individual = LESS VARIABILITY + IMPROVED PERFORMANCE + +
Slide 77: Improved Results
June YTD 2009 %/bps Change June YTD 2008 Key Results 324,128 (66% Cross Sell) 5.8% 7.4% 4.0% 120,900 491,000 86% 174,461 (46% Cross Sell) Savings and Money Market Production 650 bps -0.7% Core Deposit Growth 670 bps 0.7% Low Cost Deposit Growth 330 bps 0.7% Total Branch Deposit Growth 365% 26,000 Ne
Slide 78: Added Emphasis on Customer Experience
Added Emphasis on Customer Experience Has Led to Dramatic Improvements J.D. Power 2009 Retail Bank Study Results Regions 2008 Industry Average Regions 2009 We passed 29 banks in 1 year
Slide 79: Mortgage Volumes Helping to Grow Business
Mortgage Volumes Helping to Grow Business 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 Q3-07 Q4-07 Q1-08 Q2-08 Q3-08 Q4-08 Q1-09 Q2-09 Loan Fundings Gross Revenue on Sold Loans (bps)
Slide 80: Servicing Portfolio Growing Following Portfolio Sales
Servicing Portfolio Growing Following Portfolio Sales Q3-07 Q4-07 Q1-08 Q2-08 Q3-08 Q4-08 Q1-09 Q2-09 Servicing Portfolio # of Customers GNMA Sale – $3.4 billion Out of Footprint Sale – $1.9 billion
Slide 81: Home Equity Portfolio Remix Underway
Home Equity Portfolio Remix Underway 1Q-08 4Q-08 1Q-09 2Q-09 Regions BB&T* SunTrust * Period end balances
Slide 82: Yield Expansion Strategies Starting to Pay Off
And Yield Expansion Strategies are Starting to Pay Off -50 1Q-08 2Q-08 3Q-08 4Q-08 1Q-09 2Q-09 Going On Spread to Prime
Slide 83: Consumer Services Initiatives Driving Revenue
Consumer Services Initiatives Driving Revenue The emphasis on Performance Management, Household Growth and Customer Experience is leading to sustained increases in revenue Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09
Slide 84: Regions
Mn REGIONS
Slide 85: Technology and Operations
Technology and Operations John Owen
Slide 86: Technology Profile
Technology Profile Riverchase Operations Center › 756 dedicated Technology associates › Proven track record of delivering Business, Integration, Efficiency and Effectiveness Initiatives 1007 1072 1000 1200 May-06 Dec-06 Dec-07 Dec-08 Jun-09 Technology Headcount › Reduced headcount by over 29% from M
Slide 87: Bank Operations Profile
› Fully consolidated Bank Operations, Loan Operations › Highly efficient and scalable Operations – positioned to handle future growth › 2,448 dedicated Bank Operations associates › Proven track record of delivering Customer Service › Reduced headcount by 31% Bank Operations Profile › Fully consolida
Slide 88: Competitive Advantage through Operations and Technology
Delivering a Competitive Advantage through Operations and Technology Requires Focus › Improving the customer experience at every touchpoint › Leveraging our core competency in completing acquisitions, integrations and efficiency initiatives › Delivering an efficient, effective and high availability
Slide 89: Significant Investments to Improve Customer Experience
Significant Investments in Both Capital and Resources to Improve the Customer Experience at Every Touchpoint 1,899 Branches Capital Investments 2007 $ 320 MM 2008 $ 292 MM 2009 $ 200MM 2.2 Million Online Banking Customers And Growing 2,321 ATMs Handle over 123 Million Telebanking Calls A Year
Slide 90: Delivering a Solid Foundation for Growth
Delivering a Solid Foundation for Growth › Improved the customer’s experience through: › Streamlined account opening › Improved account maintenance process › Extended branch cut-off times › One scalable branch platform delivering a consistent customer experience › Invested $28 million to upgrade the
Slide 91: Focused on Growing the Online Channel
Focused on Growing the Online Channel › Enhancing Bill Payment site navigation and ease of use in August release › Enhancing Online Account Opening process in November release › Improved site navigation and usability › Successful launch of Mobile Banking in October 2008 › Successful launch of Online
Slide 92: Core Competency in Acquisitions, Integrations and Efficiency
Developed a Core Competency in Completing Acquisitions, Integrations and Efficiency Initiatives › Experienced Team – Completed multiple acquisitions/integrations › Proven methodology/playbook › Delivered over $800 million of cost reductions with Regions/AmSouth merger › Developed a strong working re
Slide 93: One Common Operating Platform Across the Branch Footprint
Bank of America J P Morgan Chase Wachovia CitiGroup Capital One PNC SunTrust US Bancorp One Common Operating Platform Across the Branch Footprint = Efficiency, Consistency and Low Costs Leading Consolidations Aggressive Consolidations Competitive Consolidations Limited Consolidations 2 Banks Regions
Slide 94: One Common Data Center Architecture
One Common Data Center Architecture and Footprint for the Bank = Best In Class Leading Consolidations Aggressive Consolidations Competitive Consolidations Limited Consolidations 3 Banks Regions 2 Banks 3 Banks Bank of America J P Morgan Chase Wachovia CitiGroup Capital One PNC SunTrust US Bancorp De
Slide 95: Focused on Delivering Efficiency, Stability and High Availability
Focused on Delivering Efficiency, Stability and High Availability › One operating platform drives efficiency – ease of use – low cost model › Top quartile for Branch availability 99.8% › Top quartile for customer satisfaction – Gallup results › Invested over $24 million to update ATM infrastructure
Slide 96: Focused on Delivering Efficiency, Stability and High Availability
Focused on Delivering Efficiency, Stability and High Availability › Ranked “Number One” by Gomez in successfully Completing Transactions – Reliability › Consistently Ranked Number One or Number Two in Online Response Time by Gomez › High availability 99.94% › Focused on improving ease of use, Bill P
Slide 97: Summary - Positioned Well for Future Growth
In Summary – Positioned Well for Future Growth › Solid Foundation – One bank operating platform across Regions – highly efficient › Core competency in completing acquisitions, integrations and efficiency initiatives › Delivering Technology and Operational leadership focused on : › Improving the cust
Slide 98: Regions
VN REGIONS
Slide 99: Closing Remarks
Closing Remarks C. Dowd Ritter
Slide 100: Regions
VN REGIONS
Slide 101: Regions
Aa REGIONS
Slide 102: Residential First Mortgage
Resi. 1st Mortgage 85% Alt-A 15% Other 63% Florida 37% Residential First Mortgage $15.6bn / 16.2% of Total Loans › No exotic residential products (subprime, options ARM, neg. am.); no broker originations › Alt-A performance similar to prime › Weighted Average LTV = 66% › Weighted Average FICO = 725
Slide 103: Home Equity
2nd Lien 58% 1st Lien 42% Other States 63% Florida 37% nd st nd Home Equity $15.8bn / 16.4% of Total Loans › All branch originated, in-footprint balances › Active monitoring and management of lines › Florida 2Q 2009 charge-offs of 5.85% vs. 1.11% for remainder of portfolio › Home Equity liens are 42
Slide 104: Indirect / Other Consumer
Indirect 73% Other 27% Indirect / Other Consumer $4.2bn / 4.4% of Total Portfolio NCOs / Avg. Loans 90+ Delinquencies Observations › $2.3 billion of prime indirect auto exposure; no new originations since October 2008 › Weighted Average FICO of 741 › 2Q09 Losses of 1.31%; Industry loss rate slightly
Slide 105: Commercial & Industrial
Commercial and Industrial 66% Commercial Real Estate - Owner- occupied 34% Healthcare 11% Real Estate 11% Retail 10% Other 32% › Diversified by industry and geography › Emphasis on customer relationships vs. lending › 29% small business › Healthcare and asset-backed lending specialties separately un
Slide 106: CRE (Non-Owner Occupied / Non-Construction)
Resi. 24% Multi Family 20% Retail 20% Office 15% Other 8% Florida 22% Midsouth 29% Southwest 18% Central 27% CRE (Non-Owner Occupied / Non-Construction) $16.4bn / 17.1% of Total Loans › Underwritten and approved by commercial real estate specialists › 21% of portfolio is small business › Underwritin
Slide 107: Construction
Non-Owner Occupied 87% Central 27% Florida 22% Midsout h 26% Southwes t 17% Construction $8.2bn / 8.6% of Total Loans › Conservatively underwritten to permanent market standards › Geographically diversified › We are not seeing contagion in other portfolios to the degree and severity that we have see
Regions Financial — Investor Presentation (July 2009) on 6ix