Regions Financial Corporation · NYSE:RF
Regions Financial — 2009 Citi Financial Services Conference
22 slides from Regions Financial's conference presentation, Jan 28, 2009
Slide 1: 2009 Citi Financial Services Conference
Exhibit 99.1 2009 Citi Financial Services Conference January 27-28, 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: Agenda
› Company Profile › Financial Performance and Credit Quality › Capital › Funding and Liquidity › 2009 Focus Areas
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 ($641) Residential Presold 300 0.3% 618 (318) Res
Slide 11: Losses Contained in Smaller Portfolios
Losses Contained in Smaller Portfolios 30.00% 25.00% Note: Bar height represents charge-off percentage and width represents average balances as of 4Q08. 20.00% 15.00% 10.00% 5.00% 0.00% Total Loan Portfolio ($ 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 1 Beginning NPAs 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: Net Interest Income and Margin
Net Interest Income and Margin › Taxable-equivalent net interest income of $933 million › Down $41 million, excluding $43 million third quarter SILO impact › Stable earning asset volumes excluding proceeds from Government programs › Net interest margin of 2.96%, declined 28 basis points excluding th
Slide 16: Growing Customer Deposits
Growing Customer Deposits Deposit Portfolio - Average Balances % Change ($ amount in millions) 6/30/2008 9/30/2008 12/31/2008 4Q08 vs 3Q08 Low Cost Deposits $ 58,448 $ 56,690 $ 56,422 -0.5% Customer Deposits 85,696 84,460 87,864 4.0% Corporate Treasury Deposits 5,207 4,131 1,669 -59.6% Total Deposit
Slide 17: Loan Trends
Loan Trends Loan Portfolio - Average Balances % Change 4Q08 vs ($ amount in millions) 6/30/2008 9/30/2008 12/31/2008 3Q08 Commercial & Industrial $ 22,403 $ 22,916 $ 24,122 5.3% Commercial real estate 24,741 25,207 25,887 2.7% Construction 12,151 12,042 11,584 -3.8% Residential first mortgage 16,578
Slide 18: 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 19: Capital Ratios
Capital Ratios Estimate 3Q08 4Q08 Tier 1 Capital Ratio 7.47% 10.39% Total Risk-Based Capital Ratio 11.70% 14.65% Tangible Equity to Tangible Assets 5.69% 5.23% › Tier 1 and total capital strengthened by Capital Purchase Program › Tangible ratio affected by an increase in tangible assets, a result of
Slide 20: 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 21: 2009 Focus Areas
2009 Focus Areas › Aggressively Manage Credit Issues › Ensure Capital and Liquidity Strength › Improve Net Interest Margin › Build Non-interest Revenues › Control Expenditures
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