Regions Financial Corporation · NYSE:RF
Regions Financial — Raymond James 22nd Annual Institutional Investors Conference (March 2001)
19 slides from Regions Financial's conference presentation, Mar 6, 2001
Slide 1: Raymond James 22nd Annual Institutional Investors Conference
Reoions i Raymond James 22"? Annual Institutional Investors Conference Orlando, Florida March 6, 2001
Slide 2: Key Highlights
Key Highlights @ A leading financial service provider in the South ®@ Client focused sales culture and product set @ Superior credit culture @ Constant emphasis on enhanced productivity and cost control @ With Morgan Keegan and Rebsamen, Regions will provide full service banking, brokerage, capital
Slide 3: Significant Lines of Business at Regions
Significant Lines of Business at Regions e Deposit Franchise © 90% Core deposits 12th largest branch distribution network e Trust Business $57.7 million annual revenues $20.7 billion in total trust assets e Mortgage Servicing and Origination ¢ $21.6 billion servicing portfolio ¢ $2.4 billion product
Slide 4: Strong Market Share in Footprint
Strong Market Share in Footprint mm Top 3Market Share 4th to 6th in Market Share |S Deposit Presence Some: SNL DaaSouce 3.0, Branch dae of 3009, Regions
Slide 5: Regions Continues to Grow
Regions Continues to Grow Core Deposits S$ in millions $27,016 $27,079 $26,834 $26,535 | 1Q00 2Q00 3Q00 4Q00 Quarterly average core deposits, excluding acquisitions and wholesale deposits ; Regions
Slide 6: Diversified Loan Portfolio
Diversified Loan Portfolio December 31, 2000 (8 in billions) Construction 10% ‘Mortgages 9% Commercial Total Total Consumer Commercial 48% 52% Commercial Loans and Leases 23% Total $31.4 billion Regions
Slide 7: Banks with Proven Commercial Real Estate Credit Management Skill
Banks with Proven Commercial Real Estate Credit Management Skill 1991-2000 Avg. CRE Maximum CRE Net CRE Loans as a% of Net Chargeoff Ratio* Chargeoff Ratio Total Loans 9/30/00 Regions Financial Corporation 0.04% 0.18% 31% NCBC/ CCB Pro Forma 0.04 0.19 34 SouthTrust Corporation 0.05 0.18 44 Marshall
Slide 8: Regions Superior Credit Culture is Founded on Knowledge of the Customer
Regions Superior Credit Culture is Founded on Knowledge of the Customer and Relationship Banking 2000 1999 Net charge-offs $ 94,108 $ 99,188 Period-end loans past-due >90 days $ 35,903 $ 71,952 Period-end non-performing assets* $274,691 $262,908 Period-end non-performing assets as a % of loans and l
Slide 9: Net Loan Losses at Regions Historically Below Industry
Net Loan Losses at Regions Historically Below Industry 1.60% 4 + Regions = Industry* 1.40% 4 1.20% 4 1.00% + 0.80% | 0.60% | 0.40% | 0.20% 4 ee 0.00% ee 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 *EDIC-insured commercial banks. For 2000, year-to-date September 30, 2000 annualized. Region
Slide 10: Regions Maintains an Ongoing Focus on Productivity and Expense Control
Regions Maintains an Ongoing Focus on Productivity and Expense Control e@Rationalizing branch distribution network in 2001 eContinued consolidation and centralization of back-office operations eContinued emphasis on alternative, lower cost delivery channels e@Back-office support functions utilizing
Slide 11: Regions' Institutional and Corporate Focus
Regions’ Institutional and Corporate Focus © Regions’ traditional lending and banking relationships expanded and deepened with Morgan Keegan fixed income and equity capabilities @ Fixed Income © Municipal bond underwriting — ranked number 1 in core region with 28.1% market share © Corporate bond und
Slide 12: Dominant Coverage of the South
Dominant Coverage of the South Regions Ss ¥729 Branches ¥ 128 Financial Advisors Top market share in numerous Southern MSAs $43.7 billion in assets $20.7 billion in trust assets Morgan Keegan ve 50 Offices 761 Financial Advisors $25 billion of assets in customer ‘accounts 1% ine nesons oe * Gram ara
Slide 13: Synergies
Synergies Conservative assumptions: significant long-term upside e@ Expense Savings: $14 MM pre-tax in 2002 ¢ 2.9% of Morgan Keegan and RICI LTM operating expense ¢ Combine back office ¢ Leverage Regions infrastructure @ Revenue Enhancements: $10 MM pre-tax in 2002 ¢ 2.4% of Morgan Keegan and RICI L
Slide 14: Progress on Morgan Keegan Transaction
Progress on Morgan Keegan Transaction Announcement in mid-December v Regulatory approvals Financing ¢ $287 million retail trust preferred securities v ¢ $500 million subordinated notes v Shareholder approval Regions
Slide 15: Rebsamen Acquisition Triples Regions Insurance Revenues
Rebsamen Acquisition Triples Regions Insurance Revenues e@ Rebsamen acquisition adds $26 million in insurance revenues to Regions existing $14.5 million in annual insurance revenues @ Rebsamen’s business complements Regions middle market and small business customer base ¢ 70% of Rebsamen’s business
Slide 16: Better Diversified Revenue Stream
Better Diversified Revenue Stream ‘Morgan Keegan 50%| Non-interest income as % of revenues 40% . 30% 32% 30% 20% 10%: ov + 4th Qi 2000 Pee Group Pro forma 4th ‘Qér 2000 Regions 19
Slide 17: Earnings Momentum Increasing
Earnings Momentum Increasing Further interest margin improvement expected Fee revenues up 12% in 2000 Morgan Keegan revenues up 23% in first half of fiscal 2001 Stringent expense control expected in 2001 Strong capital levels support stock buyback activity Regions 2 gyo
Slide 18: Key Highlights
Key Highlights A leading financial service provider in the South Client focused sales culture and product set Superior credit culture Excellent cost control Experienced management team Regions transformed into a diversified financial services organization providing full service banking, brokerage, c
Slide 19: Regions
Reoions I
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