Regions Financial Corporation · NYSE:RF
Regions Financial — Investor Presentation (May 2003)
32 slides from Regions Financial's investor presentation, May 5, 2003
Slide 1: Regions
Regions
Slide 2: Forward-Looking Statement
Forward-Looking Statement The information contained in this presentation may include forward-looking statements that reflect Regions' current views with respect to future events and financial performance. Regions' management believes that these forward-looking statements are reasonable, however, you
Slide 3: Regions Financial Corporation
3 Regions Financial Corporation $48.5 billion in assets $0.71 per share, diluted Serving 2.0 million households 697 banking offices 142 brokerage offices 16,040 employees
Slide 4: Market Focus: Population Growth
Market Focus Population Growth
Slide 5: Market Focus: Household Growth
Market Focus Household Growth
Slide 6: Earnings Per Diluted Share
Earnings Per Diluted Share* 1Q01 2Q01 3Q01 4Q01 1Q02 2Q02 3Q02 4Q02 1Q03 0.6 0.62 0.65 0.66 0.66 0.67 0.7 0.7 0.71 4 *Adjusted for effect of FAS 142 and one time non-recurring charges in 2Q01
Slide 7: Fee Income as Percentage of Total Revenues
Fee Income as Percentage of Total Revenues 1Q01 1Q02 1Q03 Banking 85.3 84.11 90.7 Investment Banking/Brokerage/Trust 24 144.5 155.5 Mortgage Banking 28.7 37.6 76.9 Insurance 9.4 12.5 18.5 $ in millions - -Excludes securities gains 48.0% 42.8% 29.7%
Slide 8: Earnings Growth in Lines of Business
Mortgage Banking Insurance Morgan Keegan 1Q02 12.8 2 12.6 1Q03 21.8 3.7 16.4 $ in millions Earnings Growth in Lines of Business 30.2% Growth 70.3% Growth 85.0% Growth
Slide 9: Morgan Keegan Adapting to Market Conditions
Morgan Keegan Adapting to Market Conditions Private Client Fixed-Income Equity Trust Investment Advisory Dividends, Interest & Other Morgan Keegan Revenues 79881 59526 35640 0 8528 25620 Private Client Fixed-Income Equity Trust Investment Advisory Dividends, Interest & Other Morgan Keegan Revenues 1
Slide 10: Diversified Business Mix
DIVERSIFIED BUSINESS MIX PERCENTAGE OF REVENUES TE cones ain BBD cores [B= toss [= trvestment Banking/Brokeragertrust B= surance (0) -totaae Banking
Slide 11: Community Banking Focused on Our Customers
Community Banking Focused on Our Customers Focused on Our Markets Blend of Retail and Corporate Profitable One Bank Uniform Systems Common Management Structure Standard Policies & Procedures
Slide 12: Community Banking Average Loans
Community Banking Average Loans 1Q02 2Q02 3Q02 4Q02 1Q03 4 Amount of Avg. Loans 23865 24382 24831 25129 25389 $ in millions
Slide 13: Community Banking Loans as of March 31, 2003
Community Banking Loans as of March 31, 2003 Commercial Real Estate Installment Personal Lines of Credit Commercial 9.65 10.41 3.96 1.02 Alabama Arkansas Florida Georgia Louisiana North Carolina South Carolina Tennessee Texas East 7.4 3.3 1.8 6 2.4 0.4 1.2 1.4 1.4
Slide 14: Community Banking Loan Growth 1Q02 vs. 1Q03
Community Banking Loan Growth 1Q02 vs. 1Q03 (average balances) Alabama 2.3% Arkansas 2.0 Florida 6.6 Georgia 6.8 Louisiana 4.4 North Carolina 36.6 South Carolina 16.5 Tennessee 12.4 Texas (net of acquisitions) 11.2
Slide 15: Community Banking Deposits as of March 31, 2003
Community Banking Deposits as of March 31, 2003 Interest Free Interest-Bearing Checking Savings Money Market CD's > $100K CD's < $100K Commercial 5.2 5.6 1.4 3.2 2.5 6.4 Alabama Arkansas Florida Georgia Louisiana North Carolina South Carolina Tennessee Texas East 9.3 3.9 2.4 5.8 3.5 0.1 0.8 1.3 1.6
Slide 16: Community Banking Deposit Growth
Community Banking Deposit Growth (net of CD's) 1Q02 vs. 1Q03 (average balances) Alabama 4.5% Arkansas 3.3 Florida 12.0 Georgia 7.0 Louisiana 5.4 North Carolina 25.7 South Carolina 6.7 Tennessee (1.6) Texas (net of acquisitions) 6.4
Slide 17: Community Banking Deposit Mix
1Q02 4Q02 1Q03 Low Cost Deposits 0.586 0.62 0.634 CD's 0.414 0.38 0.366 Community Banking Deposit Mix March 31, 2003
Slide 18: CDs < $100K as Percentage of Deposits Compared to Peers
Regions CD's < $100K as Percentage of Total Deposits Compared to Peers 12/31/2001 12/31/2002 Regions 0.27 0.243 Peers 0.199 0.187 *Peer Group includes AmSouth, BB&T, Comerica, Compass, First Tennessee, Huntingdon, Hibernia, Key Corp., M&I, National City, National Commerce, SouthTrust, SunTrust, Unio
Slide 19: Community Banking Bubbles Weighted by Economic Profit
22 Community Banking Bubbles Weighted by Economic Profit
Slide 20: Quadrant Strategy
Quadrant Strategy Silver - Acquire Overhead The Right People Training Credit Quality Pricing/Margin Mgt. Sales Mgt. Branching/Delivery Channel Platinum - Expand Aggressive Sales Mgt. Branch Expansion Add Key Personnel Portfolio Diversification Bronze - Reallocate May Need to Shrink Higher Emphasis o
Slide 21: Market Focus: How will we differentiate? Retail
Market Focus How will we differentiate? Retail - Chart-the-Course Leadership in Financial Services Profile MainSail Book of Business Mid-Year Sales Review FSA Program 650 associates currently licensed Number of sales increased $ volume of sales increased Sales Leader Plan - Measured by Growth in Loa
Slide 22: Market Focus: How will we differentiate? Commercial
Market Focus How will we differentiate? Commercial Sales Process Piloted in Texas - 30% Increase in Sales All Lenders and Bank Presidents Trained Sales Tracker Small Business Lending No. 1 Small Business Lender in 2001 Pilot Program in Central Region More Efficient More Focused
Slide 23: Progress in Sales Initiatives: Chairman's Club
PROGRESS IN SALES INITIATIVES CHAIRMAN'S CLUB FISCAL YEAR 2002 Fee Income 24% Growth 6% Loan Growth 37% 5% Deposit Growth 14% 2% = All Branches = Chairman's Club 24 Regions
Slide 24: Progress in Sales Initiatives: FSA Program
Progress in Sales Initiatives FSA Program Avg. Sales per Mo. 2002 5.6 Average sales per month increased 108% from 2002 to 1Q03 Gross commissions increased 22% from 4Q02 to 1Q03 108% increase $ in millions
Slide 25: Progress in Sales Initiatives: Equity Asset Lines
Progress in Sales Initiatives Equity Asset Lines 1Q02 4Q02 1Q03 East 1.03 1.22 1.33 $ in billions 29% Growth
Slide 26: Market Focus: Deposits, Loans, Fee Income per FTE
Market Focus Deposits per FTE Loans per FTE Fee Income per FTE 1Q02 1961 1891 17019 4Q02 2030 1903 20734.5 1Q03 2090 1968 20679 Deposits and loans in thousands Deposits per FTE Loans per FTE 1Q03 4Q02 1Q02 $1,785 $1,756 $1,742 $1,594 $1,551 $1,479
Slide 27: Net Loan Losses at Regions Historically Below Industry
Net Loan Losses at Regions Historically Below Industry 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 Regions 0.0044 0.0035 0.0028 0.0019 0.0017 0.0013 0.0015 0.0025 0.0028 0.0037 0.0031 0.0041 0.0036 Industry* 0.0143 0.0159 0.0127 0.0085 0.005 0.0049 0.0058 0.0064 0.0067 0.0061 0.
Slide 28: Consumer Loan Past Due
Consumer Loan Past Due Percentage Total Company Consumer Loan Past Due Percentage a 2.00% 2.00% 1.0% one JF M A M J J & S OF ND 1999 —s— 2000 —— 2001 +2002 — + 2003
Slide 29: Consumer Loan Past Due Percentage vs. Peer Group
Consumer Loan Past Due Percentage Source: ABA Peer Group Analysis
Slide 30: Regions vs. S&P and S&P Financial
Regions S&P 500 S&P 500 Financial 1/4/2002 100 100 100 1/11/2002 98.85 97.74 96.73 1/18/2002 101.45 96.21 97.1 1/25/2002 103.92 96.7 95.97 2/1/2002 103.06 95.79 92.02 2/8/2002 102.8 93.6 89.96 2/15/2002 104.41 94.33 88.04 2/22/2002 104.02 93.12 84.78 3/1/2002 108.53 96.75 90.41 3/8/2002 112.52 99.56
Slide 31: 32 Consecutive Years of Increased Dividends
'71 '72 '73 '74 '75 '76 '77 '78 '79 '80 '81 '82 '83 '84 '85 '86 '87 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03* 0.037 0.075 0.081 0.085 0.089 0.095 0.111 0.134 0.143 0.159 0.173 0.191 0.205 0.227 0.255 0.291 0.345 0.364 0.382 0.418 0.436 0.455 0.52 0.6 0.66 0.7 0.8 0.92 1 1.08 1
Slide 32: Regions
Regions