Regions Financial Corporation · NYSE:RF
Regions Financial — Lehman Brothers Financial Services Conference 2005
24 slides from Regions Financial's conference presentation, Sep 12, 2005
Slide 1: Lehman Brothers Financial Services Conference
Lehman Brothers Financial Services Conference New York, New York September 13, 2005
Slide 2: Regions Financial Corporation Presenters
REGIONS FINANCIAL CORPORATION Allen B. Morgan, Jr. Vice Chairman, Regions Financial Corporation Chairman, Morgan Keegan D. Bryan Jordan Executive V.P. and Chief Financial Officer Regions Financial Corporation
Slide 3: Regions Financial Corporation
REGIONS FINANCIAL CORPORATION $85 billion in assets Over $15 billion in market capitalization $4.7 billion* in revenues from diversified sources 5 million customers Strong banking franchise in South, Midwest and Texas Over 260 brokerage offices in 15 states One of Top 15 U.S. banking companies * Bas
Slide 4: Attractive Geographic Markets
ATTRACTIVE GEOGRAPHIC MARKETS Strong Banking Franchise in South, Midwest and Texas 14.6% 5.2% 8.5% 5.5% 7.9% 6.9% 14.4% 10.8% 10.2% 5.3% Percentage Of Banking Offices by State SC TX AR LA TN AL GA NC MO IA IL IN KY MS FL SC
Slide 5: Attractive Geographic Markets and Good Distribution Power
ATTRACTIVE GEOGRAPHIC MARKETS and GOOD DISTRIBUTION POWER Regions Bank Morgan Keegan Regions Insurance Group 7TH largest U.S. bank branch network 1,400 banking offices in 15 states Over 260 brokerage offices Over 20 insurance offices 5 million customers
Slide 6: Diversified Revenue Stream
DIVERSIFIED REVENUE STREAM $4.7 Billion in Annualized Revenues* 1st Qtr 3rd Qtr 4th Qtr 61 2 8 2 18 13 Combined Revenue Composition* Insurance 2% Net Interest Income 56% Mortgage Banking 10% Brokerage & Trust 16% Banking - Fees 14% * Based on 1H05 financial results; excludes security gains/losses Ot
Slide 7: Successfully Transitioning in 2005...
Successfully Transitioning in 2005...
Slide 8: Successful Conversion is Job One
Successful Conversion is Job One Early Branding Initiative January: Launched Regions brand in Midwest and Florida markets First Systems Conversions April: Re-branding and system conversions took place in 137 branches in Alabama, Arkansas, Tennessee, Texas, Louisiana and Kentucky Second Systems Conve
Slide 9: Goal of Growing Deposits Through the Conversion Events
GOAL OF GROWING DEPOSITS THROUGH THE CONVERSION EVENTS DDA open/close ratio of 1.22 in 2Q05 compared to 1.00 in 2Q04 Event One branches opened more accounts in month after conversion than any month prior 3Q04 4Q04 1Q05 2Q05 East 48.2 49 49.7 50.2 Community Banking Deposits Avg., $ in billions
Slide 10: Divestiture of Non-Core Businesses
DIVESTITURE OF NON-CORE BUSINESSES Minimal bottom-line impact Focus on effective capital deployment and risk-adjusted returns Reallocation of resources to core, strategic business lines with higher risk-adjusted returns Capital Factors Strategic Outsourcing Wholesale Mortgage Revenue 45 38.5 23 Net
Slide 11: Investing in Core Businesses
INVESTING IN CORE BUSINESSES New Bank Branches in High Potential Growth Areas 50 bank branches planned for 2005 High-growth potential and fill-in Initial investment: $1.5-$2.5MM each $20-$25MM in expected 2005 investment Must meet 15% IRR hurdle TX AR LA TN AL GA SC NC FL MO IA IL IN KY MS Build-out
Slide 12: Efforts Start to Pay Off in Second Quarter
EFFORTS START TO PAY OFF IN SECOND QUARTER Successful second quarter 2005 results 3.5%, linked-quarter increase in operating diluted earnings per share1 Core operating expenses down 1%, linked-quarter Core operating revenue up 1%, linked-quarter Strong quarter for Morgan Keegan Steady net interest m
Slide 13: Hurricane Katrina
REGIONS 2 Hurricane Katrina
Slide 14: Hurricane Katrina
HURRICANE KATRINA TX AR LA TN AL GA SC NC FL MO IA IL IN KY MS VA
Slide 15: Hurricane Katrina
HURRICANE KATRINA LA Regions Bank (affected, but now open) Regions Bank (closed) Morgan Keegan (affected, but now open) Morgan Keegan (closed) AL MS
Slide 16: Hurricane Katrina
HURRICANE KATRINA Zone A Zone B Zone C
Slide 17: 2004 Hurricane Season
2004 Hurricane Season 2004 Hurricane Season
Slide 18: Hurricane Katrina
HURRICANE KATRINA Zone A Zone B Zone C
Slide 19: Hurricane Katrina Loan Exposure
HURRICANE KATRINA Loan Exposure Approximately, $1.3 billion in outstandings in hardest hit area (Zone A on previous slide) Commercial - $700MM Consumer - $200MM Mortgage - $200MM Letters of Credit - $60MM Other - $70MM Regions is offering deferral of payment on some consumer and business installment
Slide 20: Hurricane Katrina Deposit Base
HURRICANE KATRINA Deposit Base Approximately $1.4 billion in deposits in hardest hit areas Interest-free deposits - $280MM Interest-bearing checking - $490MM Savings - $290MM CD's - $220MM Other - $120MM
Slide 21: Hurricane Katrina Is an Unexpected Challenge
HURRICANE KATRINA IS AN UNEXPECTED CHALLENGE Regions Mortgage Approximately 40,000 customers out of 450,000 total mortgage customers. $2.5B of servicing in disaster area. Monthly retail mortgage origination activity in hardest hit areas was approximately $60 million before Katrina and is estimated t
Slide 22: Hurricane Katrina Summary
HURRICANE KATRINA Summary Regions has a great deal of experience with hurricanes in our footprint Expect a small up tick in credit losses and non-performing assets over the next few quarters Key variables that will affect our current expectations include Timing and extent of New Orleans infrastructu
Slide 23: In Summary....
IN SUMMARY.... We are working hard to create a more predictable, profitable business model that will produce consistently high returns for our shareholders... Regions' foundation is solid 2005 is a transition year in which merger integration has been the focus along with realigning business units to
Slide 24: Lehman Brothers Financial Services Conference
Lehman Brothers Financial Services Conference New York, New York September 13, 2005
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