Regions Financial Corporation · NYSE:RF
Regions Financial — Credit Suisse 2008 Financial Services Forum
26 slides from Regions Financial's conference presentation, Feb 7, 2008
Slide 1: Credit Suisse 2008 Financial Services Forum
Credit Suisse 2008 Financial Services Forum February 7, 2008 Exhibit 99.1
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS The information contained in this presentation may include forward-looking statements which reflect Regions’ current views with respect to future events and financial performance. The Private Securities Litigation Reform Act of 1995 ("the Act") provides a safe harbor for f
Slide 3: Company Profile
Company Profile Company Profile Integration Update 4Q07 Financial Performance and Credit Quality 2008-2010 Strategic Initiatives Overview
Slide 4: Regions is Among the Largest U.S. Banks
Regions is Among the Largest U.S. Banks Market Capitalization $16 billion Assets $141 billion Loans, net of unearned income $95 billion Deposits $95 billion Branches 1,965 ATMs 2,490 NOTE: As of December 31, 2007.
Slide 5: Franchise Footprint
Franchise Footprint Source: SNL DataSource and Regions as of June 30, 2007 State Dep. ($B) Mkt. Share Rank AL $18.2 25% #1 FL 17.7 #4 TN 16.7 #2 LA 7.6 #3 MS 6.2 #1 GA 5.5 #6 AR 4.3 #2 TX 3.0 #18 IL 2.4 #24 MO 2.3 #8 IN 2.0 #9 Other 2.4 — — Regions Morgan Keegan Insurance
Slide 6: Regions compares favorably in terms of local market share
Regions compares favorably in terms of local market share relative to other top 10 banking franchises 18.5 Regions Weighted Average Market Share Deposit weighted by county. Excludes deposits from branches with > $10bn of deposits. Based on June 30, 2007 data. 16.6% Median 7.9 Citigroup 13.2 National
Slide 7: Fast Growing Footprint
Fast Growing Footprint 10.5% 10.0% 8.1% 8.0% 7.9% 7.0% 6.9% 5.9% 5.7% 4.5% 4.2% 3.7% 3.4% 3.4% 3.3% 2.8% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% Projected Population Growth (2007-2012) of Market Footprint (1) Source: SNL Financial. Data as of June 2007. Pro forma for completed/pending M&A. Deposit weig
Slide 8: Morgan Keegan – Among the Largest Regional Full-Service Brokerage Firms
Morgan Keegan – Among the Largest Regional Full-Service Brokerage and Investment Banking Firms Revenue ($M) Pre-Tax Income ($M) Financial Performance 416 Office Locations Revenue Composition (2007) Profile Founded in 1969 Acquired by Regions in 2001 1,282 financial advisors 416 offices in 19 states
Slide 9: Integration Update
Integration Update Company Profile Integration Update 4Q07 Financial Performance and Credit Quality 2008-2010 Strategic Initiatives Overview
Slide 10: Merger Integration Complete
Merger Integration Complete Combined Product Set & Incentives Complete Sale of Divested Branches 1Q07 2Q07 3Q07 4Q07 Brokerage Conversion Mortgage Origination & Servicing Conversion Trust Conversion Event Two Branch Conversion and Consolidations Event Three Branch Conversion and Consolidations Event
Slide 11: Merger Integration Complete
Merger Integration Complete 443,000 hours of training completed in preparation for branch conversions in which we converted: 1,945 branches 7.2 million deposit accounts 840,000 loan accounts Consolidated 160 branches in overlapping markets
Slide 12: Exceeding Original Cost Saves
Exceeding Original Cost Saves 2007 2007 2008 2008 $0 $200 $400 $600 Original Target Actually Achieved New Target $400 $ in millions $345 $500
Slide 13: 4Q07 Financial Performance and Credit Quality
4Q07 Financial Performance and Credit Quality Company Profile Integration Update 4Q07 Financial Performance and Credit Quality 2008-2010 Strategic Initiatives Overview
Slide 14: Fourth Quarter Financial Performance
Fourth Quarter Financial Performance Increased credit allowance for loan losses Aggressively managing residential homebuilder portfolio Strong fee-based revenue, particularly Morgan Keegan Cost saves exceed expectations Non-merger-related charges incurred during the quarter Capital position remains
Slide 15: 4Q07 Financial Summary
4Q07 Financial Summary Financial Performance $ 0.24 EPS – diluted 0.45 % Net Charge-Off Ratio Asset Quality 0.90 % Nonperforming Assets as a % of Loans 1.45 % Allowance for Credit Losses as a % of Loans 8.55 % Return on Avg. Tangible Equity 65.9 % Operating Efficiency 3.61 % Net Interest Margin Prof
Slide 16: Credit Quality Trends
Credit Quality Trends 0.45% 0.90% 0.37% 0.27% 0.20% 0.23% 0.27% 0.62% 0.62% 0.45% 0.40% 0.15% 0.22% 0.22% 0.35% 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 4Q06 1Q07 2Q07 3Q07 4Q07 NPAs/Loans and OREO Net Charge-Offs/Average Loans Delinquent Loans (90+ Past Due)
Slide 17: Diversified Loan Portfolio
Diversified Loan Portfolio C&I, 17% CRE- Owner Occupied Mortgages, 5% CRE- Non-owner Occupied Mortgages, 8% Construction, 14% Business and Community Banking, 16% Alt-A, 3% Residential 1st Mortgage, 15% Home Equity Lending, 16% Indirect Lending, 4% Direct Lending, 1% Other Consumer, 1% Total Loan Por
Slide 18: Commercial Real Estate Portfolio - $21.0 billion
Commercial Real Estate Portfolio - $21.0 billion CRE Portfolio by Product CRE Portfolio Characteristics CRE portfolio is diversified by product, loan size, and by geography CRE portfolio is very granular with the average note size under $600 thousand Top 5 MSA concentrations are Atlanta, Miami, Nash
Slide 19: Residential Homebuilder Portfolio - $7.2 billion
Residential Homebuilder Portfolio - $7.2 billion Land, $2,926 Residential Spec, $1,893 Residential Presold, $618 Lots, $1,608 National Homebuilders, $160 Product Breakout $ %* $ %* $ %* $ %* $ %* $ %* 90+ Past Due 8,306 0.52 0.14 4,921 0.26 5,218 0.18 - - 19,337 0.27 Non-Accruing Loans 68,269 4.25 3
Slide 20: Residential Homebuilder Portfolio - $7.2 billion
Residential Homebuilder Portfolio - $7.2 billion Residential Homebuilder Portfolio - $7.2 billion 600,000 1,200,000 1,800,000 2,400,000 Total Outstanding $802,046 $2,341,071 $2,008,091 $827,252 $328,935 $720,940 $176,844 Non-accruing 17,648 56,543 104,896 45,030 10,145 23,698 Accruing 784,398 2,284,
Slide 21: Consumer Real Estate Portfolio - $31.9 billion
Consumer Real Estate Portfolio - $31.9 billion Residential First Mortgage 15% Alt A 3% Home Equity 16% Remaining Loan Portfolio 66% NOTE: As of December 31, 2007. Wgtd Avg. Wgtd Avg. Outstandings* LTV FICO Home Equity Lending 14,962,007 $ 74% 70,964 $ 41% Residential 1st Mortg 14,129,484 67% 174,006
Slide 22: Excellent Loss Experience versus Peers
Excellent Loss Experience versus Peers NOTE: Industry peers include FITB, KEY, NCC, STI, USB, WFC, WM Home Equity Regions 0.24% 0.31% 0.31% Industry Peers 0.46% 0.64% 1.02% Residential First Mortgage Regions 0.12% 0.13% 0.18% Industry Peers 0.22% 0.30% 0.63% Net Charge-offs 2Q07 3Q07 4Q07
Slide 23: Strong Capital Position
Strong Capital Position 6.5% 6.3% 6.1% 5.9% 5.7% 5.5% 5.3% 5.2% 5.0% 4.3% 4.1% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% Tangible Equity / Tangible Assets Source: SNL DataSource, Tangible Equity/Tangible Assets as of December 31, 2007. 5.5% Median
Slide 24: 2008-2010 Strategic Initiatives Overview
2008-2010 Strategic Initiatives Overview Company Profile Integration Update 4Q07 Financial Performance and Credit Quality 2008-2010 Strategic Initiatives Overview
Slide 25: Challenging Banking Environment
Challenging Banking Environment Regions is well positioned despite challenging operating environment: Growth driven by strategic initiatives Relatively neutral balance sheet positioning Strong Morgan Keegan contribution Merger opportunities mitigate industry downturn, allow for increased operating l
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