Regions Financial Corporation · NYSE:RF
Regions Financial — Morgan Stanley U.S. Financials Conference 2010
15 slides from Regions Financial's conference presentation, Feb 2, 2010
Slide 1: Morgan Stanley U.S. Financials Conference
Morgan Stanley U.S. Financials Conference February 2, 2010 Exhibit 99.1
Slide 2: Charge-Offs Stabilizing but Remain Elevated
Charge-Offs Stabilizin g 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 3: Gross and Net NPA Migration Declining
Gross and Net NPA Migration Declining -$500 $0 $500 $1,000 $1,500 $2,000 4Q08 1Q09 2Q09 3Q09 4Q09 Net NPA Change Gross NPA Additions $ millions Net NPA* Change down 43% 3Q09 to 4Q09 * Excludes non-performing assets held for sale
Slide 4: 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 quarter high. Quarter over qu
Slide 5: 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 6: Regions' Capital Levels Strong and Comparable to Peers
7.2 11.6 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; Estimated capital ratios as of December 31, 2009; MI and MTB capital ratios as of September 30, 2009 Source: SNL and Company Reports
Slide 7: 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 2008 2009
Slide 8: 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 $8.4 billion year-over-year › T
Slide 9: Credit Available, but Demand Remains Soft
48.9% 47.5% 45.4% 42.8% 41.2% Credit Available, but Demand Remains Soft › Commitment levels remain high › Utilization rates reflect weaker demand but stabilizing ($ 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 40% 42% 44% 46% 48% 50% 52% Dec’08 Mar’09 J
Slide 10: Small Business Lending Stabilizing
57.6% 57.0% 57.3% 57.5% 56.9% 56.2% 57.1% Small Business Lending Stabilizing $4.6 $4.5 $4.4 $4.5 $4.6 $4.5 $4.5 $2.5 $3.0 $3.5 $4.0 $4.5 $5.0 Jun'09 July'09 Aug'09 Sept'09 Oct'09 Nov'09 Dec'09 50% 51% 52% 53% 54% 55% 56% 57% 58% 59% 60% Commitments Utilization Rate Small Business ($ in billions)
Slide 11: Steady Margin and Net Interest Income; Expected to Rise throughout 2010 and Beyond
Steady Margin and Net Interest Income; 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 substantial r
Slide 12: Regions
VN REGIONS
Slide 13: 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 14: 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 › $4.2 billion
Slide 15: Strong and Improving Market Share
Stron g and Improving Market Share Note: Based on June 30, 2009 FDIC data per SNL. Adjusted for brokered deposits in MS and GA. State Deposits ($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
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