Regions Financial Corporation · NYSE:RF
Regions Financial — Credit Suisse Financial Services Conference 2009
22 slides from Regions Financial's conference presentation, Feb 5, 2009
Slide 1: Credit Suisse Financial Services Conference
Exhibit 99.1 Credit Suisse Financial Services Conference February 5, 2009
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, Financial Performance, Credit, Capital, Liquidity
› Company Profile › Financial Performance › Credit › Capital › Liquidity
Slide 4: Regions is Among the Largest U.S. Banks
Regions is Among the Largest U.S. Banks › Market Capitalization $5.5 billion › Assets $146 billion › Loans, net of unearned income $97 billion › Deposits $91 billion › Branches 1,900 › ATMs 2,336 NOTE: As of December 31, 2008.
Slide 5: Strong Southeastern Franchise
Strong Southeastern Franchise State Dep. ($B) Mkt. Share Rank AL $17.2 23% #1 TN 16.3 16 #1 FL 14.3 4 #4 MS 9.7 21 #1 LA 7.2 10 #3 GA 6.1 3 #6 AR 4.2 9 #2 TX 3.0 1 #17 IL 2.4 1 #24 MO 2.2 2 #9 IN 2.1 2 #9 Other 2.5 — — Regions Morgan Keegan Insurance Source: Based on June 30, 2008 FDIC Data obtained
Slide 6: High Relative Market Density
High Relative Market Density Weighted Average Name Market Share (1) BB&T 22.2 Regions 20.7 Wells Fargo 20.3 Comerica 18.8 M&T 18.1 M&I 17.8 Regions compares Bank of America 16.6 favorably in terms of JP Morgan 16.3 weighted average market U.S. Bancorp 16.3 share relative to other PNC 16.2 top bankin
Slide 7: Morgan Keegan – Among the Largest Regional Full-Service Brokerage and Investment Banking Firms
Morgan Keegan – Among the Largest Regional Full-Service Brokerage and Investment Banking Firms 332 Office Locations Profile › 1,283 financial advisors › 332 offices in 19 states › $63 billion of customer assets › $62 billion of trust assets › $58 million assets per financial advisor As of December 3
Slide 8: Fourth Quarter 2008 Results
Fourth Quarter 2008 Results › Earnings per diluted share of ($9.01), ($0.35)(1) excluding goodwill impairment › $6 billion, ($8.66) non-cash goodwill impairment charge › Full-year profit of $0.74(1) per share before goodwill impairment and merger charges › Credit quality › Sold or moved to held for
Slide 9: Significant Earnings Drivers
Significant Earnings Drivers 4Q08 Goodwill Impairment Charge $ (8.66) Tax Settlement 0.40 Losses on Loan Sales/Held for Sale Markdowns (0.42) Provision above Net Charge-offs (0.32) MSR Impairment (0.09) Preferred Stock Issuance Impact (0.04) All Other 0.12 Earnings Per Diluted Share $ (9.01)
Slide 10: Credit Perspective
Credit Perspective Portion of the loan portfolio that is under stress comprises 9% of the total, down $3.1 billion over the past year. 12/31/2008 % of Total 12/31/2007 ($ in millions) Balance Portfolio Balance Change Homebuilder Lots $967 1.0% $1,608 ($641) Residential Presold 300 0.3% 618 ($318) Re
Slide 11: Losses Contained in Smaller Portfolios
Losses Contained in Smaller Portfolios 30.00% 25.00% Note: Bar height represents charge-off percentage and width represents average balances as of 4Q08. 20.00% 15.00% 10.00% 5.00% 0.00% Total Loan Portfolio ($ in billions)
Slide 12: Increasing Florida Stress
WA. REGIONS Increasing Florida Stress Mm REGIONS OFPHES CONFORMING PROPERTIES HOME PRICE DEPRECIATION. ANNUAL ———"F pee Arquaizes Desrecioncn eee we SERS a 10% 15% Arrsenzes Depreciation (EERE 5-0 Anewetizes Dececiation (GGG 1-1 anrumues Deprecianon
Slide 13: Increases in Charge-Offs and Loan Loss Provision; Improvements in NPAs and Coverage Ratio
Increases in Charge-Offs and Loan Loss Provision Improvements in NPAs and Coverage Ratio ACL/NPL NPAs exc. HFS Net C/O % LLP $2,000 2.5x 3.50% $1,400 $1,800 $1,600 2.0x 3.00% $1,200 $1,400 2.50% $1,000 $1,200 1.5x 2.00% $800 $1,000 $800 1.0x 1.50% $600 $600 1.00% $400 $400 0.5x 0.50% $200 $200 $0 0.
Slide 14: Aggressive Non-performing Asset Management
Aggressive Non-performing Asset Management 2008 (in millions) 1Q 2Q 3Q 4Q Beginning NPAs1 864 1,204 1,621 1,642 Additions 523 730 721 1,004 Payments (62) (52) (70) (82) Returned to Accruing Status (4) (9) (19) (44) Charge-Offs/OREO Write-downs (92) (105) (180) (243) Dispositions/Held for Sale (25) (
Slide 15: While Credit Issues Have Worsened, Metrics are In Line with Peers
While Credit Issues Have Worsened, Metrics are In Line with Peers Net Charge Offs Non Performing Assets 2.81% 3.19% 2.48% 1.76% 1.33% Regions Peers Regions RF Excluding Peers HFS Allowance for Credit Loses Coverage Ratio 1.81 x 1.95% 2.09% 0.91 x Regions Peers Regions Peers NOTES: Peers: PNC, BBT, S
Slide 16: Net Interest Income and Margin
Net Interest Income and Margin › Taxable-equivalent net interest income of $933 million › Down $41 million, excluding $43 million third quarter SILO impact › Stable earning asset volumes excluding proceeds from Government programs › Net interest margin of 2.96%, declined 28 basis points excluding th
Slide 17: Growing Customer Deposits
Growing Customer Deposits Deposit Portfolio - Average Balances % Change ($ in millions) 9/30/2008 12/31/2008 4Q08 vs 3Q08 Low Cost Deposits $ 56,690 $ 56,422 -0.5% Customer Deposits 84,460 87,864 4.0% Corporate Treasury Deposits 4,131 1,669 -59.6% Total Deposits 88,591 89,533 1.1% Deposit Portfolio
Slide 18: Loan Trends
Loan Trends Loan Portfolio - Average Balances % Change ($ in millions) 9/30/2008 12/31/2008 4Q08 vs 3Q08 Commercial & Industrial $ 22,916 $ 24,122 5.3% Commercial real estate 25,207 25,887 2.7% Construction 12,042 11,584 -3.8% Residential first mortgage 16,304 16,005 -1.8% Home Equity 15,659 16,036
Slide 19: Q3 to Q4 2008 Non-Interest Revenue and Expense Changes Primarily Driven by Continued Economic Distress
Q3 to Q4 2008 Non-Interest Revenue and Expense Changes Primarily Driven by Continued Economic Distress › Non-Interest Revenue declined $18 million driven by lower market values on trust accounts and lower service charge revenue. › Non-Interest Expense rose 7%, excluding Goodwill and MSR impairment c
Slide 20: Regions Capital Levels are Strong
Regions Capital Levels are Strong Total Capital Tier 1 14.65 14.70 10.39% 10.74% Regions Peers Regions Peers Tangible Common Equity 5.23% 5.33% Regions Peers NOTES: Peers: PNC, BBT, STI, MTB, FITB, KEY, MI, CMA, FHN, CNB Ratios as of December 31, 2008. Risk-based ratios are estimated.
Slide 21: Strong Funding and Liquidity
Strong Funding and Liquidity Funding Liquidity › Customer core deposits fund 59% of › Combined available liquidity from the total assets and 88% of loans Fed, FHLB, unpledged securities and unused lines exceeds $45 billion › Customer core deposits are 98% of total deposits › Large excess reserve bal
Slide 22: Regions
JN REGIONS
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