Regions Financial Corporation · NYSE:RF
Regions Financial — Investor Presentation (November 2004)
22 slides from Regions Financial's investor presentation, Nov 4, 2004
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. You should not place undue reliance on these statements as the forward-looking statements are b
Slide 3: Regions Financial Corporation
REGIONS FINANCIAL CORPORATION Regions/Union Planters Merger Complete July 1, 2004 $84 billion in assets Approximately $16 billion in market capitalization $4.6 billion, annualized*, in revenues from diversified sources 5 million customers Strong banking franchise in South, Midwest and Texas Over 200
Slide 4: Broader and Stronger Distribution Capability
REGIONS FINANCIAL CORPORATION Broader and Stronger Distribution Capability Distribution Strength 5mm Customers 1,400 Branches 1,700 ATMs 975 Financial Advisors 1900 Insurance Licensees 450K Online Customers
Slide 5: Better Business Balance and Diversification
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 55 12 1 1 15 17 18 REGIONS FINANCIAL CORPORATION Better Business Balance and Diversification 42% of Total Revenues from Fee Income Combined Revenue Composition* * Quarter ended September 30, 2004; excludes securities gains(losses) Insurance 2% Net Interest Inc 58% Mor
Slide 6: Why Scale Does Make a Difference!
WHY SCALE DOES MAKE A DIFFERENCE!
Slide 7: Market Cap Is a Positive
LARGER MARKET CAP IS A POSITIVE More recognition in customer base More recognition by institutional shareholders Better currency for acquisitions
Slide 8: Larger Is Better in Today's Regulatory Environment
LARGER IS BETTER IN TODAY'S REGULATORY ENVIRONMENT Better able to afford and attract strong directors top level compliance professionals high quality internal audit professionals
Slide 9: Larger Means More Products and Services
LARGER MEANS MORE PRODUCTS AND SERVICES Significant Morgan Keegan Growth Prospects Individual wealth management business Brokerage Trust Asset Management Corporate clients Mergers and acquisitions Equity and debt financings Other investment banking services Municipal clients Debt offerings Advisory
Slide 10: Significant Morgan Keegan Growth Prospects
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr East 8.6 37.4 34.6 9.1 10.3 20 West 30.6 38.6 34.6 31.6 North 45.9 46.9 45 43.9 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 7.8 31.1 27.3 9.4 24.4 LARGER MEANS MORE PRODUCTS AND SERVICES Significant Morgan Keegan Growth Prospects 1st Qtr 2nd Qtr 20 38 23 14 5 12 30.6 38.6 34.6 31
Slide 11: Larger Means More Products and Services: Morgan Keegan
LARGER MEANS MORE PRODUCTS AND SERVICES Significant Morgan Keegan Growth Prospects 100%: 80% 60% 40%- 20% 0% Series? FSA's Customer Customer Trust Assets Bank FAs Accounts Assets Assets Internally Branches Managed I Morgan Keegan Union Planters REGIONS 2.
Slide 12: Larger Means More Products and Services: Banking
LARGER MEANS MORE PRODUCTS AND SERVICES Banking m Leverage success of legacy Regions’ sales program in Union Planters’ branches m= Expanded treasury management product set = New dedicated resources in Public Finance and Credit Enhancement areas allow us to capture more for Morgan Keegan's successful
Slide 13: Scale Provides a More Balanced Mortgage Operation
SCALE PROVIDES REGIONS WITH A MORE BALANCED MORTGAGE OPERATION m Regions Mortgage — Primarily conforming loans — $39 billion in servicing portfolio at 9/30/04 (down from $44 billion at 6/30/04) — $3.8 billion in production in 3Q04 m@ EquiFirst — Non-conforming loans — Sold on a whole loan basis at a
Slide 14: Leading Market Share in the Mid-South
LARGER MEANS ENJOYING THE CAPABILITI TO HAVE AND MAINTAIN MARKET SHARE Leading Market Share in the Mid-South’ Deposits Deposit Market Share Rank Company (rm) Ca) 1. Wachovia’ $36,975 897% 2 Regions? 35923 ar 2 Suntrust? 33058 a2 4. Bank of America 23,100 561 & AmSouth 2292 5.56 6 FirstHorizon 15751
Slide 15: Regions' Improving Market Share in High Growth States
Slide 16: Focus on Customer Retention and Customer Service
Customer Retention & Growth Ongoing Branch Service Satisfaction 2X2X2 Program Customer Focus Groups Customer Satisfaction Surveys Commercial Banking Retention Management Associate Engagement Surveys Mortgage Origination Satisfaction Surveys New Account Satisfaction Studies VRU Surveys for Call Cente
Slide 17: Economies of Scale Mean Cost Savings
LARGER MEANS ECONOMIES OF SCALE... Economies of Scale Mean Cost Savings 2004 total cost savings of $30 million expected $6 million realized in 3Q04 $24 million expected in 4Q04 2005 total cost savings in range of $120 million to $150 million expected Cost saves should accelerate as year progresses $
Slide 18: Economies of Scale: Cost Savings Sources
LARGER MEANS ECONOMIES OF SCALE... Economies of Scale Mean Cost Savings Leverage in negotiation of contracts Consolidation of operations centers and administrative functions (e.g., HR, Finance, Credit Operations) Mortgage Sale of $5 billion of non-footprint mortgage servicing rights Sale of non-foot
Slide 19: Scale Was Only One of the Reasons for the Combination
HOWEVER...SCALE WAS ONLY ONE OF THE REASONS FOR THE REGIONS/UNION PLANTERS COMBINATION Ability to create shareholder value Potential for revenue synergies abound Cultures of the two organizations fit well Jack Moore is a great successor for Carl Jones
Slide 20: Measured, Customer-Focused Integration Plan Timeline
Event Scheduled Timing Completed Day 1 - Legal merger, Employee/Customer launch events, consolidations (e.g. Credit Policy, Finance, HR) July 1, 2004 July 1, 2004 Top 200 executives in place July 1, 2004 July 1, 2004 Regions and Union Planters ATM's linked July 1, 2004 July 1, 2004 Combined new boar
Slide 21: Regions/Union Planters Merger Offers Numerous Opportunities
REGIONS FINANCIAL CORPORATION Regions/Union Planters merger offers numerous opportunities Merger is on track and going well Regions is positioned for growth in earnings and increasing shareholder value Excited about 2005 and beyond
Slide 22: Regions
REGIONS &.
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