Regions Financial Corporation · NYSE:RF

Regions Financial — Investor Presentation (January 2005)

29 slides from Regions Financial's investor presentation, Jan 27, 2005

  1. Slide 1: Regions

    REGIONS &.

  2. 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

  3. Slide 3: The New Regions Financial Corporation

    THE NEW REGIONS FINANCIAL CORPORATION

  4. Slide 4: Regions Financial Corporation: Building a Better, More Profitable Franchise

    REGIONS FINANCIAL CORPORATION Building A Better, More Profitable Franchise $84 billion in assets Over $15 billion in market capitalization $4.6 billion* in revenues from diversified sources 5 million customers Strong banking franchise in South, Midwest and Texas Over 240 brokerage offices in 15 stat

  5. Slide 5: Building a Stronger, Better Positioned Franchise

    REGIONS FINANCIAL CORPORATION Building a Stronger, Better Positioned Franchise Regions Bank Morgan Keegan Regions Insurance Group

  6. Slide 6: Regions' Improving Market Share in High Growth States

    REGIONS' IMPROVING MARKET SHARE IN HIGH GROWTH STATES TX AK LA TN AL GA SC NC FL MO IO IL IN KY MS Mkt. Position Improved to 6th from 17th in Florida Mkt. Position Improved to 15th from 20th in Texas Mkt. Position Improved to 4th from 8th in Tennessee New Mkt. Position in Kentucky, Indiana, Illinois

  7. Slide 7: Regions Has the Right Product Set and a Better Business Mix

    1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 60 8 2 2 15 12 18 REGIONS HAS THE RIGHT PRODUCT SET AND A BETTER BUSINESS MIX 40% of Total Revenues from Fee Income Combined Revenue Composition* Insurance 2% Net Interest Inc 60% Mortgage Banking 8% Brokerage & Trust 15% Other 2% Banking - Fees 13% * Based on 4Q04 fi

  8. Slide 8: Diversified Business Mix: Helping Morgan Keegan Adapt to Market Conditions

    1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 8.3 31.4 25.9 9.6 24.8 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr East 7.7 27.9 36.6 9.2 18.6 20 West 30.6 38.6 34.6 31.6 North 45.9 46.9 45 43.9 DIVERSIFIED BUSINESS MIX Helping Morgan Keegan Adapt to Market Conditions FYE 12/31/03 FYE 12/31/04 Equity Capital Markets Dividends,

  9. Slide 9: Good Long-Term Opportunities

    GOOD LONG-TERM OPPORTUNITIES Morgan Keegan Regions Bank Morgan Keegan Regions Insurance Group

  10. Slide 10: Initial Merger Targets Have All Been Accomplished on Schedule

    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

  11. Slide 11: Continuing to Successfully Execute Merger Plan

    Event Scheduled Timing Completed Re-Branding of non-overlap branches 1Q05 In Process Phase 1 Bank Conversion 2Q05 Mortgage Origination Platform Conversion 4Q04-1Q05 Phase 2 Bank Conversion 3Q05 Trust Conversion 3Q05 Phase 3 Bank Conversion 4Q05 Achieve cumulative cost saves of $130-$150 million Dece

  12. Slide 12: Loan and Deposit Growth Continuing Since Merger

    LOAN AND DEPOSIT GROWTH CONTINUING SINCE MERGER 6/30/04* 9/30/2004 12/31/2004 East 46.6 47.3 48.2 6/30/04* 9/30/2004 12/31/2004 East 49 49.3 50.1 Community Banking Loans $ in billions *Pro Forma combined Regions and Union Planters Community Banking Deposits 7%, annualized, growth 4.5%, annualized, g

  13. Slide 13: 2005 Retail Banking Sales Campaigns

    2005 RETAIL BANKING SALES CAMPAIGNS Credit Acquisition Campaign 2005 Goal: $1.2 billion (28% growth) in Equity AssetLines Deposit Acquisition Campaign 2005 Goal: 500,000 new DDAs 75% Visa Check Card penetration of new accounts 20% bill pay penetration of new DDAs Book of Business Campaign Increase s

  14. Slide 14: Commercial Banking Initiatives

    COMMERCIAL BANKING INITIATIVES Expanded treasury management product set Full service commercial leasing capability Dedicated resources in Public Finance and Credit Enhancement (in conjunction with Morgan Keegan's public finance area) Broader Capital Markets capabilities Larger footprint is a positiv

  15. Slide 15: Taking Steps to Maximize Long-Term Opportunities

    TAKING STEPS TO MAXIMIZE LONG-TERM OPPORTUNITIES Improved strategic planning and budgeting including new accountability and measurement programs Building infrastructure platform Reassessment of operating model Investment initiatives Efficiency initiatives Improved sales and sales training

  16. Slide 16: Maximizing Long-Term Opportunities

    MAXIMIZING LONG-TERM OPPORTUNITIES

  17. Slide 17: Investments in the Future Growth of Our Business: People

    INVESTMENTS IN THE FUTURE GROWTH OF OUR BUSINESS People Morgan Keegan Indianapolis, Miami and St. Louis offices staffing up Atlanta equity capital markets office Bank branch staffing Banking Over 100 private, retail and commercial bankers One-time opportunities due to other merger transactions $7 -

  18. Slide 18: Investments in the Future Growth of Our Business: Technology

    INVESTMENTS IN THE FUTURE GROWTH OF OUR BUSINESS Technology Approximately $20 million in 2005 cost Systems include Mainframe capacity upgrade Disaster recovery Branch platform technology HR enhancement e-Banking Benefits include Better external and internal customer service through more reliable and

  19. Slide 19: Investments in the Future Growth of Our Business: New Bank Branches

    INVESTMENTS IN THE FUTURE GROWTH OF OUR BUSINESS New Bank Branches Over 40 new bank branches planned in 2005 High-growth-potential markets (e.g., Texas) Fill-in branches in already strong markets (e.g., Birmingham) Initial capital investment of $1.5 - $2.5 million Average first year cost of approxim

  20. Slide 20: Improving Market Share in High-Potential-Growth Areas

    REGIONS' IMPROVING MARKET SHARE IN HIGH-POTENTIAL-GROWTH AREAS Planned 2005 Branches TX AK LA TN AL GA SC NC FL MO IO IL IN KY MS 7 Build-out of new and growth markets Following change in demographics 40+ bank branches planned for 2005 High-growth potential and fill-in Initial investment: $1.5-$2.5M

  21. Slide 21: Targeted Cost Saves and Investment Spending

    TARGETED COST SAVES AND INVESTMENT SPENDING 2004 2006 bl INV. East 30 60 55 55 FYE 2006 $50-$70MM FYE 2004 $30MM FYE 2005 $100-$120MM Merger-related Cost Saves Cumulative $200 MM By Mid-2006 Approximately 50% to Investment Spending Approximately 50% to Reduction of Expenses $50-$60MM $50-$60MM

  22. Slide 22: Intermediate-Term Challenges: Right-Sizing Mortgage

    INTERMEDIATE-TERM CHALLENGES Right-Sizing Mortgage Actions taken in third quarter 2004 Sale of $5 billion of non-footprint mortgage servicing rights Sale of non-footprint retail mortgage production offices Planned actions in 2005 Right-size for expected 2005 volume Eliminate existing inefficiencies

  23. Slide 23: Regions' Balance Sheet Positioning

    REGIONS' BALANCE SHEET POSITIONING Based on December 31, 2004 Balance Sheet Modeling POSITIONED FOR ASSET SENSITIVITY 100 b.p. instantaneous shift in rates has about a 2% impact on net interest income. 3 to 4% loan and deposit growth required to maintain stable net interest income in a flat rate env

  24. Slide 24: First Call 2005 Earnings Estimates

    FIRST CALL 2005 EARNINGS ESTIMATES 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr East 2.4 2.45 2.5 2.5 2.5 2.52 2.52 2.52 2.55 2.55 2.55 2.6 2.6 2.61 2.65 Diluted Earnings Per Share Estimates

  25. Slide 25: Committed to Creating Shareholder Value

    COMMITTED TO CREATING SHAREHOLDER VALUE

  26. Slide 26: Committed to Creating Shareholder Value: Returning Excess Capital

    * 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 04 05 0.03 0.061 0.066 0.069 0.07 0.08 0.09 0.11 0.12 0.13 0.14 0.15 0.17 0.18 0.21 0.24 0.28 0.29 0.31 0.34 0.35 0.37 0.42 0.49 0.53 0.57 0.65 0.75 0.81 0.87 0.91 0.94 1 1.34 1.36 Returning Excess C

  27. Slide 27: Committed to Creating Shareholder Value: Share Repurchases

    COMMITTED TO CREATING SHAREHOLDER VALUE Share Repurchases 20 million share Board Of Directors authorization 19.2 million shares remaining Expect to repurchase 7 - 10 million shares on average in 2005 Managing for Long-Term Success More consistent growth Greater profitability

  28. Slide 28: Regions Financial Corporation: Committed to Creating Shareholder Value

    REGIONS FINANCIAL CORPORATION Committed to Creating Shareholder Value Optimistic about long-term prospects Taking appropriate actions to handle intermediate term challenges and capitalize on long-term opportunities Committed to ongoing, seamless merger execution Dedicated to building a franchise tha

  29. Slide 29: Regions

    REGIONS &.

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