Regions Financial Corporation · NYSE:RF
Regions Financial — Investor Presentation (May 2002)
26 slides from Regions Financial's investor presentation, May 1, 2002
Slide 1: Regions
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Slide 2: Forward-Looking Statement
Forward-Looking Statement ‘The information contained in this presentation may include forward-looking statements that reflect Regions’ cunent views with respect to future events and financial performance. Regions” management believes that these forward-looking statements are reasonable, however, ‘yo
Slide 3: Key Highlights
Key Highlights @ A leading financial service provider in the South @ Well diversified revenue stream @ Customer focused sales culture @ Constant emphasis on improved productivity and cost control @ Established credit culture @ Excellent opportunities for growth Regions
Slide 4: Strong Deposit Market Share in Footprint
Strong Deposit Market Share in Footprint #1 market share in Alabama at 17.4% #1 market share in Arkansas at 14.0% #4 market share in Georgia at 6.2% “#4 market share in Louisiana at 7.3% aN ge a TEI Top 3 Nara Share HEI th toch Mare share Regions
Slide 5: Growth of Low Costs Deposits
Growth of Low Costs Deposits Sin millions $731.6 $569.4 $298.6 3Q01 4Q01 1Q02 Based on linked quarter average balances, excluding acquisitions Regions 3
Slide 6: Community Banking Franchise
Community Banking Franchise 45.0% 44.0% 43.0% 42.0% 41.0% 40.0% 39.0% 38.0% Low Cost Deposits as % of Total Deposits 44.5% 42.0% 39.8% 2Q01 3Q01 4Q01 1Q02 Regions
Slide 7: Community Banking Franchise: Decline in CDs Compared to Total Deposits
38.0% 37.0% 36.0% 35.0% 34.0% 33.0% 32.0% 31.0% 30.0% Community Banking Franchise Decline in CDs Compared to Total Deposits 37.3% 33.1% 31.9% 2Q01 3Q01 4Q01 1Q02 Regions
Slide 8: Community Banking Franchise
Community Banking Franchise 26.0% 25.5% 25.0% 24.5% 24.0% 23.5% 23.0% 22.5% 22.0% Wholesale Loans as % of Total Loans 22.4% 1Q02 Regions
Slide 9: Community Banking Franchise
78.0% 77.5% 77.0% 76.5% 76.0% 75.5% 75.0% 74.5% 74.0% Community Banking Franchise Community Bank Loans as % of Total Loans 77.6% 3Q01 4Q01 1Q02 Regions
Slide 10: Regions' Diversified Revenue Stream
Regions’ Diversified Revenue Stream Over 28% of Revenue Stream from Other Financial Services First Quarter 2002 Brokerage and Investment Banking 17% Retail and Commercial Banking Asset Management 72% 2% ‘Mortgage Banking M Insurance 2% 7 Regions
Slide 11: Regions' Diversified Revenue Stream
Regions’ Diversified Revenue Stream Over 28% of Revenue Stream from Other Financial Services First Quarter 2002 Q Brokerage and Investment Banking 17% Retail and Commercial Banking ‘Asset Management 2% 2% ‘Mortgage Banking TM Insurance 2% ¥ Combined $53 billion of customer assets v Excellent growth
Slide 12: Regions/Morgan Keegan Footprint
Regions/Morgan Keegan Footprint
Slide 13: Morgan Keegan Business Units
Morgan Keegan Business Units First Quarter 2002 Private Client Group Investment Advisory 10% Fixed Income Capital Markets 43% Equity Capital ‘Markets 9% “ Regions
Slide 14: Regions/Morgan Keegan Combined Trust Function
Regions/Morgan Keegan Combined Trust Function e Morgan Keegan assumed management of Regions Trust Function in early 2002 = Results in additional expertise and resources to benefit customers @ Combined $14 billion in assets under management @ Combined $53 billion in customer assets Regions
Slide 15: Regions' Diversified Revenue Stream: Insurance
Regions’ Diversified Revenue Stream Over 28% of Revenue Stream from Other Financial Services First Quarter 2002 Brokerage and Investment Banking 17% Retail and Asset Commercial Management Banking 2% 72% Mortgage Banking Insurance 7% 2% v Insurance revenues of $118 million in 1** quarter 2002 v Rebsa
Slide 16: More Diversified Revenue Stream
More Diversified Revenue Stream ‘Morgan Keegan 50%. Non-interest income as % of revermes 42% 29% 29% Ast Qtr 2002 Regions
Slide 17: Active Integration of Sales Culture
Active Integration of Sales Culture e Bridging the gaps = Bringing together services/products from all lines of business = Increased training and coaching = Increased accountability @ Developed new commercial sales process = Complements Chart-the-Course on retail side = Focus attention on relationsh
Slide 18: Ongoing Focus on Productivity and Expense Control
Ongoing Focus on Productivity and Expense Control Major area of focus in 2002 Non-interestexpense 4Q0L 1902 Impact of 1902 AsReported As Reported FAS 142__As Adjusted Change Salaries and berefits $238,152 $237,362 $237,362 $ (790) Net occupancy and. farniture and equipment 47,429 44,648 44,648, 781)
Slide 19: Strengthened Loan Loss Allowance
Strengthened Loan Loss Allowance @ Increased allowance $48.0 million from 1Q01 e@ NPA portfolio granular, diversified, well secured, 30% single family residential e Largest 25 non-accrual loans range from $13.4 million to $1.5 million with one over $10 million @ 26 bps. charge offs for 1Q02 compares
Slide 20: Strengthened Loan Loss Allowance
Strengthened Loan Loss Allowance @ Allowance for loan losses $429.6 —— Loan losses* $inmillions $381.6 1Q01 2Q01 3Q01 4Q01 1Q02 * Loan losses as a percent of average loans, annualized Regions a i)
Slide 21: Increased Focus on Optimizing Profitability of Franchise
Increased Focus on Optimizing Profitability of Franchise e@ Desensitized interest rate risk 3/31/02 +200 2.5% +100 15 - 100 (1.3) - 200 (3.2) e Implementing new performance measurement system based on risk-adjusted returns on capital = Management tool for allocating capital within the company = Cons
Slide 22: Opportunities for Earnings Growth
Opportunities for Earnings Growth Margin is up 16 bps. over 1°t Quarter 2001 level 1% Quarter 2002 loan loss provision exceeded net charge offs by $10 million Growth in balance sheet from increased sales efforts and improving economy Opportunities for growth in investment products/services Regions 2
Slide 23: Outstanding Dividend Record
(En Dollars) Outstanding Dividend Record 31 Consecutive Years Of Increased Dividends Recently named to Bloomberg Personal Finance magazine Top 25 list for dividend performance Regions Years * Indicated 24
Slide 24: Listing on the New York Stock Exchange
Listing on the New York Stock Exchange e Trading on the NYSE will begin May 3, 2002 @ Regions stock will trade under the symbol “RF” e@ LaBranche & Co. has been selected as Regions’ specialist firm Regions 2s gyo
Slide 25: Key Highlights
Key Highlights A leading financial service provider in the South Client focused sales culture and product set Good cost control Strong credit culture Experienced management team Excellent opportunities for growth Regions 2% gyo
Slide 26: Regions
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