Regions Financial Corporation · NYSE:RF
Regions Financial — Investor Presentation (September 2004)
26 slides from Regions Financial's investor presentation, Sep 13, 2004
Slide 1: Regions
REGIONS &.
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
Slide 3: Merger between Regions and Union Planters closed on July 1
REGIONS FINANCIAL CORPORATION Merger between Regions and Union Planters closed on July 1 Greater growth potential Significant productivity improvement opportunity Measured, customer-focused integration plan
Slide 4: Regions/Union Planters Merger Complete July 1, 2004
REGIONS FINANCIAL CORPORATION Regions/Union Planters Merger Complete July 1, 2004 $85 billion* in assets Approximately $15 billion in market capitalization $4.7 billion*, annualized in revenues from diversified sources 5 million customers Strong banking franchise in South, Midwest and Texas 150 brok
Slide 5: Strong Distribution Network
REGIONS FINANCIAL CORPORATION Strong Distribution Network Distribution Strength 5mm Customers 1,400 Branches 1,700 ATMs 1,225 Financial Advisors 450K Online Customers
Slide 6: Greater Growth Potential
GREATER GROWTH POTENTIAL Increased market share in faster growth states and MSA's with improved combined product set and sales program More effectively leverage retail and commercial banking relationships throughout expanded branch network Significant opportunities to leverage Morgan Keegan across t
Slide 7: Balanced and Diversified Business Mix
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 72 2 2 16 10 18 REGIONS FINANCIAL CORPORATION Balanced and Diversified Business Mix 45% of Total Revenues from Fee Income Combined Revenue Composition* * YTD June 30, 2004; excludes securities gains(losses), mortgage servicing rights recapture, and non-recurring charg
Slide 8: Leading Franchise in the Mid-South
LEADING FRANCHISE IN THE MID-SOUTH Approximately 60 percent of franchise is located in the Mid-South market, where Regions will have the second largest deposit market share.1 Data as of 6/30/03
Slide 9: Top Ten Pro Forma Markets
TOP TEN PRO FORMA MARKETS Increasing Share in Faster Growth Markets 1 As of 12/31/03 Union Planters Regions Regions / Union Planters
Slide 10: Effective Leverage of Retail and Commercial Banking Relationships
EFFECTIVE LEVERAGE OF RETAIL AND COMMERCIAL BANKING RELATIONSHIPS THROUGHOUT EXPANDED BRANCH NETWORK Number of Branches Regions 895 SunTrust/NCF 582 Wachovia/SouthTrust 543 Bank of America 404 AmSouth 385 Bancorp South 221 Synovus 200 Largest branch network in the 6-State Mid-South Region1 One of 10
Slide 11: Build New and Broaden Existing Retail Relationships
BUILD NEW AND BROADEN EXISTING RETAIL RELATIONSHIPS THROUGH SALES METHODOLOGY AND TRAINING All 1,400 branches will utilize Chart the Course sales platform starting January 1, 2005 Common retail incentives in place as of January 1, 2005 Legacy Regions' Chairman's Club program adopted for new company
Slide 12: 2005 Retail Sales Campaigns
2005 RETAIL SALES CAMPAIGNS FOCUS ON NEW RELATIONSHIPS, PROFITABILITY, AND CUSTOMER RETENTION Deposit Acquisition Campaign Features lower cost, profitable transaction accounts including interest free checking and money market products Three "sticky" products tied into campaign to encourage retention
Slide 13: Commercial Banking Set to Deliver More Products and Better Solutions
COMMERCIAL BANKING SET TO DELIVER MORE PRODUCTS AND BETTER CUSTOMER SOLUTIONS TO LARGER FOOTPRINT Expanded treasury management products enhance ability to acquire and retain relationships producing recurring income Full service commercial leasing capability provides means to handle customers' leasin
Slide 14: Customer Retention & Growth
Customer Retention & Growth Ongoing Branch Service Satisfaction Associate Focus Groups Customer Focus Groups Customer Satisfaction Surveys Closed Account Studies Associate Engagement Surveys Mortgage Origination Satisfaction Surveys New Account Satisfaction Studies VRU Surveys for Call Center Satisf
Slide 15: Greater Growth Potential
GREATER GROWTH POTENTIAL Increased market share in faster growth states and MSA's with improved combined product set and sales program More effectively leverage retail and commercial banking relationships throughout expanded branch network Significant opportunities to leverage Morgan Keegan across t
Slide 16: A New Regional Force in Banking and Financial Services
A NEW REGIONAL FORCE IN BANKING AND FINANCIAL SERVICES Distribution Strength 5mm Customers 1,400 Branches 1,700 ATMs 1,225 Financial Advisors 450K Online Customers
Slide 17: Significant Morgan Keegan Growth Prospects
SIGNIFICANT MORGAN KEEGAN GROWTH PROSPECTS Leverage opportunities and increase productivity in legacy Union Planters' franchise by providing greater retail and capital markets products, more sophisticated operational support and enhanced services Midwest Region $6MM relationship Enter markets in leg
Slide 18: Union Planters Adds to Morgan Keegan's Presence
UNION PLANTERS ADDS TO MORGAN KEEGAN'S PRESENCE Morgan Keegan Union Planters Series 7 FA's FSA's Customer Accounts Customer Assets Trust Assets Leader Funds Bank Branches Regions 900 500 275 41.5 23.4 12 700 Union Plnaters 75 1400 25 2 10 8 700 900 700 12 8 $23.4B $10B 500 $41.5B $2B 275K 25K 1,400
Slide 19: Morgan Keegan Adapting to Market Conditions with Diversified Business Mix
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr East 8 26 41 7 18 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 31.4 29.2 9.6 22.3 MORGAN KEEGAN Adapting to Market Conditions with Diversified Business Mix 1st Qtr 2nd Qtr 20 38 23 14 5 12 30.6 38.6 34.6 31.6 45.9 46.9 45 43.
Slide 20: Mortgage Operations
REGIONS FINANCIAL CORPORATION MORTGAGE OPERATIONS Regions Mortgage Primarily conforming loans $44 billion in servicing portfolio at 6/30/04 $3.6 billion in production in 2Q04 EquiFirst Non-conforming loans Sold on a whole loan basis at a premium, servicing released $1.5 billion in production in 2Q04
Slide 21: More Balanced and Efficient Mortgage Operation
MORE BALANCED AND EFFICIENT MORTGAGE OPERATION FOR ENHANCED PROFITABILITY AND CONSISTENCY Sale of $5 billion of non-footprint mortgage servicing rights Sale of non-footprint retail mortgage production offices Actions will result in more balanced mix of origination and servicing Better leverage of ba
Slide 22: Significant Productivity Improvement Opportunities
SIGNIFICANT PRODUCTIVITY IMPROVEMENT OPPORTUNITIES Potential Acceleration of Cost Savings Estimated cost savings of $200 million or 7% of combined expense base (approximately 10% excluding Morgan Keegan) Actions and initiatives developed in the business units to support the $200 million Phased-in 15
Slide 23: Significant Productivity Improvement Opportunities
SIGNIFICANT PRODUCTIVITY IMPROVEMENT OPPORTUNITIES Broadened franchise with greater opportunities enhances ability to attract and retain talent Training programs being redesigned for various systems, sales processes, and policies Combined product set that utilizes best of both legacy companies' offe
Slide 24: Timeline for Key Merger Events
Event Scheduled Timing Completed Day 1 - Legal merger, Employee/Customer launch events, consolidations (e.g. Credit Policy, Finance, HR) July 1, 2004 July 1, 2004 Top 200 executives in place July 1, 2004 July 1, 2004 Regions and Union Planters ATM's linked July 1, 2004 July 1, 2004 Combined new boar
Slide 25: Well-positioned for more consistent, enhanced growth
REGIONS FINANCIAL CORPORATION Well-positioned for more consistent, enhanced growth Merger integration on track Potentially faster cost-saves realization Building a better, more profitable franchise - opportunities abound Yet, stock currently trades at a discount to peer group and offers dividend yie
Slide 26: Regions
REGIONS &.
Regions Financial — Investor Presentation (September 2004) on 6ix