Regions Financial Corporation · NYSE:RF
Regions Financial — Alabama Financial Services Conference 2001
37 slides from Regions Financial's conference presentation, May 14, 2001
Slide 1: Alabama Financial Services Conference
Regions ey Alabama Financial Services Conference Birmingham, Alabama May 14, 2001
Slide 2: Key Highlights
Key Highlights @ A leading diversified financial service provider in the South @ Client focused sales culture and product set @ Superior credit culture @ Experienced management team @ Consistent record of performance Regions
Slide 3: Dominant Coverage of the South
Dominant Coverage of the South Regions - 687 Branches 135 Offices “Top marketshare innumerous 900 Financial Advisors Southern MSAs $20.7 billion in trust assets accounts © Serving 4 million customers > maser * cone deat te tages lng trncpte . Regions 4 =
Slide 4: Client Focused Financial Powerhouse
Client Focused Financial Powerhouse Ideally positioned to assist middle market corporate and affluent retail customers throughout the South increase their worth. Regions Commercial Banking “Retail Banking “Trust and Asset Management Mortgage Banking “Tnsurance Brokerage and Public Finance Specialty
Slide 5: Diversified Throughout
Diversified Throughout Vibrant South Banking assets by state Arkansas Georgia 14% 25% Louisiana 10% Florida 7% Texas 4% Alabama South Carolina 31% 4% 5% . ; Regions Tennessee
Slide 6: Mission Statement
Mission Statement Regions Financial Corporation will be a premier southern financial services company that effectively and consistently responds to its markets and customers. Based on a foundation of integrity and financial strength, we will be the company of choice and the employer of choice in eac
Slide 7: Morgan Keegan and Company
Morgan Keegan and Company Allen B. Morgan, Jr. Chairman and Chief Executive Officer of Morgan Keegan Regions
Slide 8: Morgan Keegan Historical Highlights
Morgan Keegan Historical Highlights * One of the largest independent securities firms in the South ° Founded in 1969 « Publicly owned since 1983 ° Stock traded on New York Stock Exchange since 1985 « Acquired by Regions Financial Corporation April 1, 2001 Regions
Slide 9: Morgan Keegan
Morgan Keegan Offices De » 56 locations + Over 2,100 employees » 791 investment brokers lute ROGIONS g
Slide 10: Morgan Keegan Senior Management
Morgan Keegan Senior Management 188 Managing Directors 15 years average length of service with Morgan Keegan & Company Allen B. Morgan, Jr. Joseph C. Weller G. Douglas Edwards James A. Parrish, Jr. William F. Hughes, Jr. John W. Stokes, Jr. E. Carl Krausnick Chairman and Chief Executive Officer Chie
Slide 11: Breakdown of Commissions by Product Mix and Account Type
Morgan Keegan Breakdown of Commissions by Product Mix and Account Type For 8 Months Ending March 31, 2001 Special Products tituiional 31% Regions
Slide 12: Morgan Keegan Revenue Sources
Morgan Keegan Revenue Sources For 8 Months Ending March 31, 2001 Margin Income 21% ‘Money Management Fees Other 6% Banking Fees, 6% Trading 4 Regions
Slide 13: Business in First Quarter
Morgan Keegan Business in First Quarter « Revenues up 3.5% * Commissions up 2% ° Better than industry because of Fixed Income Regions
Slide 14: Post Merger April 1, 2001
Morgan Keegan Post Merger April 1, 2001 * Converted to Regions Financial Corporation « 200 employees / 120 financial advisors mid-month « $5.4 billion in assets / 93,473 accounts « 2nd largest commission month in history of firm « Appointed Doug Edwards as President Regions
Slide 15: Acquisition of Regions Investment Company
Morgan Keegan Acquisition of Regions Investment Company April 12, 2001 As of As of 3/31/01 4/12/01 Total Employees 2,162 2,349 Financial Advisors 791 900 Offices 56 135 Accounts 165,610 259,083 Amount of Assets $25.0 billion $30.4 billion Regions
Slide 16: Employee Count
Morgan Keegan Employee Count For Year Ending July 31 Jul94 9S UG © uLO7 JUS FULD JOD AprO Financial Advisors. ——— All Employees ——— Regions i)
Slide 17: Assets in Cash & Margin Accounts
Morgan Keegan Assets in Cash & Margin Accounts Billions $35 $30.4 $30 $254 $25 $2.2 s79 $20 $154 sis 4 | s20 $10 $5 $0 9096 098097 o98098 o9e9 OOOO 04/1201 . Regions
Slide 18: Morgan Keegan Assets under Management
Morgan Keegan Morgan Keegan Assets under Management For Year Ending July 31 Miflia Morgan Keegan Trust Co. ‘Wealth Trust Affiliates $5,000 $3801 $4,000 $3,174 Hester Capital sso00 Fund Management $2917 Select Funds $2,000 Investment Management woo 2 Consulting Group $1,000 Morgan Asset Management $0
Slide 19: Rebsamen Insurance Inc.
Rebsamen Insurance Inc. Allen J. McDowell President and Chief Executive Officer Of Rebsamen Regions x g
Slide 20: Regions
Regions
Slide 21: International Insured
International Insured Exposures Kenya Afghanistan India U.K. Canada_ Ange <n SS e Russia C73 ?) ‘ne a Hong Kong Nepal “SY Globex International Partnership Local Knowledge - Global Presence Regions 25 8 . France Malaysia Singapore
Slide 22: Rebsamen Divisions
Rebsamen Divisions ¢ Risk Management « Commercial Lines « Claims ¢ Legal-Insurance ¢ Loss Control * Due Diligence « Aviation * Captive Management ¢ Personal Insurance ¢ Benefits ¢ Professional Association Group « &xcess ano’ Surplus Cines Brokerage « Surety Bonds ¢ Financial-Actuarial 26 Regions
Slide 23: Special Practices
¢ Special Practices Manufacturing Construction Communications Retailing Hospitals - Medical Trucking Agri - Business Auto Dealers Regions
Slide 24: Our Plans
Our Plans ¢ To provide insurance products and services to the Bank and Morgan Keegan’s customer base There are many products such as Life - Long-Term Care - Annuities - Disability - Property-Casualty and others that can be provided asa “Value Added” to our clients. * We hope to provide these product
Slide 25: Why Rebsamen
“Why Rebsamen” ¢ Opportunities to grow our business through the Bank’s customer base ¢ Ability to operate Rebsamen on a separate platform ¢ Using our current compensation and reward system ¢ Our management team and past experience ¢ Our strong strategic planning process (short and long term) Regions
Slide 26: Summary
Summary Rebsamen People Rebsamen Clients Regions Welcome Insurance Companies Our Current Results “Mind the Store” Great Future Regions
Slide 27: Regions
Regions
Slide 28: Better Diversified Revenue Stream
Better Diversified Revenue Stream ‘Morgan Keegan 6000] Non-interest income as % of revenues 50%: 45% 40%: 30% 32% 30% 20%: 10%: % Ist Qtr 2001 Pr up Proforma HighP/E Ist Qtr 2001 Peer Group Regions 22 >)
Slide 29: Categories of Fee Income
Categories of Fee Income Pro forma for Morgan Keegan and Rebsamen Insurance Investment Sewices and Trust Fees 51% (Commercial Banking Fees 38% Mortgage Servicing and Origination Insurance Premiums p94, and Commissions 3% Regions » g
Slide 30: Positive Trend in Net Interest Margin
Positive Trend in Net Interest Margin 370% © Improved Commercial Loan 365% s ds 3.60% preads 3.55% © Increased Variable Rate 350% . 245% Lending oe © Sensitivity of Balance Sheet to 2.30% Parallel Interest Rate Shifts 325% 1am 2000 3000 4000 1001 Dramatically Reduced Regions u g
Slide 31: Progress on Branch Rationalization
Progress on Branch Rationalization e@ Through March, 37 of 68 identified branches have been consolidated e@ During April over 20 additional branches have been consolidated @ Opening of 3 new offices in high growth markets Regions 1s g
Slide 32: Risk Adjusted Return on Capital
Risk Adjusted Return on Capital e Early stages of implementing new performance measurement system based on risk adjusted returns on capital @ Objectives of project ¢ Management tool for allocating capital within the organization ¢ Consistent framework for comparing returns from a business unit, prod
Slide 33: Diversified Low Risk Loan Portfolio
Diversified Low Risk Loan Portfolio March 31, 2001 (S in billions) Commercial Mortgages 19% Total Total Consumer Commercial 47% pe esidential 33% Mortgages Total $31.1 billion n Regions
Slide 34: Banks with Proven Commercial Real Estate Credit Management Skill
Banks with Proven Commercial Real Estate Credit Management Skill 1991-2000 Avg. CRE Maximum CRE Net CRE Loans as a% of Net Chargeoff Ratio* Chargeoff Ratio Total Loans 9/30/00 Regions Financial Corporation 0.04% 0.18% 31% NCBC/ CCB Pro Forma 0.04 0.19 34 SouthTrust Corporation 0.05 0.18 44 Marshall
Slide 35: Net Loan Losses at Regions Historically Below Industry
1.60% 1.40% 1.20% 1.00% 0.80% 0.60% 0.40% 0.20% 0.00% “FDIC-insured commercial banks. Net Loan Losses at Regions Historically Below Industry + Regions = Industry* 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 9 Regions
Slide 36: Regions' Franchise
ton Regions’ Franchise Dots represent Regions banking presence Naw You Stars represent Morgan Keegan locations Dallas ok Fairhope Sr=2ee sileans gameeneh Sarasota * Ft Lauderdale Regions
Slide 37: Regions
Reoions I
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