Regions Financial Corporation · NYSE:RF
Regions Financial — Merger or Acquisition (June 2004)
28 slides from Regions Financial's merger presentation, Jun 18, 2004
Slide 1: Regions Financial Corporation
Regions Financial Corporation
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 $48.8 billion in assets at March 31, 2004 683 banking offices in 9 states 147 brokerage offices in 15 states and Canada Insurance relationships throughout U.S. Serving 2 million households 16,258 employees Approximately $8 billion in market cap
Slide 4: Strong Start to 2004
1Q03 1Q04 East 158.6 168.5 1Q03 1Q04 East 0.25 0.17 1Q03 1Q04 East 158.6 168.5 STRONG START TO 2004 Record quarterly earnings of $168.5 million, or 75 cents per diluted share, up 5.6 percent over 2003 and 11 percent linked-quarter, annualized Revenue growth of 5.8 percent over 2003 and 11.7 percent
Slide 5: New Regions Financial Corporation
NEW REGIONS FINANCIAL CORPORATION Pro forma based on March 31, 2004 financial information $81 billion in assets 5 million customers 1,400 banking offices in 15 states Approximately 25,000 employees 147 brokerage offices in 15 states and Canada Insurance relationships throughout U.S. Approximately $1
Slide 6: Balanced and Diversified Business Mix
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 72 2 2 16 10 18 BALANCED AND DIVERSIFIED BUSINESS MIX Combined Revenue Composition1 Source: Regions and Union Planters company reports Note: 1 1Q04; excludes securities gains(losses) Insurance 2% Banking 70% Mortgage Banking 10% Brokerage & Trust 16% Other 2%
Slide 7: Regions' Retail Strategy
a REGIONS’ RETAIL STRATEGY
Slide 8: A New Regional Force in Banking and Financial Services
A NEW REGIONAL FORCE IN BANKING AND FINANCIAL SERVICES Distribution Strength 5mm Customers 1,400 Branches 1,700 ATMs 1,225 Financial Advisors 450K Online Customers
Slide 9: Top Ten Pro Forma Markets
TOP TEN PRO FORMA MARKETS Improve capital generation in our high return mid-South markets through cost / scale advantages and invest that capital in high growth markets Note: 1 As of and for year ended 12/31/03 Union Planters Regions Regions / Union Planters
Slide 10: Superior Product Set and Channels
SUPERIOR PRODUCT SET AND CHANNELS Regions Ala.- Based Banks National Banks Wire Houses Community Banks Over 1,4001 Locations Thick Client Internet Full Service Brokerage Co. Asset Mgt. Account DDA with Free BillPay Full Service Call Center Over 1,7001 ATMs Full Suite of Consumer Lending Products Ins
Slide 11: Regions / Morgan Keegan Becoming the Center Cell for Our Clients
REGIONS / MORGAN KEEGAN BECOMING THE "CENTER CELL" OR "NUCLEUS" FOR OUR CLIENTS Managing Some Assets Get All Assets to Manage Insurance Liabilities Qualified Retirement Plan / IRA Stock Options Business Succession Plan Durable Power of Attorney Gifting During Life Charitable Gifting During Life Titl
Slide 12: Regions Bank client segments and services
REGIONS BANK REGIONS BANK Estate Planning Savings Plans for Retirement Lending For Commercial Expansion Lending for Small Business Provide Basic Banking Lending for Education Lending for Home and Auto Savings Plans to Supplement Income Ultra High Net Worth > $10M Affluent $1-10M Middle Market $250m-
Slide 13: Morgan Keegan client segments and services
MORGAN KEEGAN RMK Fund Family Create and Grow Wealth Protect and Preserve Wealth Plan Distribution of Wealth in Most Tax Advantaged Way During Life and Death FSA Ultra High Net Worth > $10M Affluent $1-10M Middle Market $250m-1M Mass Market < $250m
Slide 14: Combined client segments and services
Estate Planning Savings Plans for Retirement Lending For Commercial Expansion Lending for Small Business Provide Basic Banking Lending for Education Lending for Home and Auto Savings Plans to Supplement Income Ultra High Net Worth > $10M Affluent $1-10M Middle Market $250m-1M Mass Market < $250m RMK
Slide 15: Combined client segments and services by wealth tier
Ultra High Net Worth > $10M Affluent $1-10M Middle Market $250m-1M Mass Market < $250m RMK Fund Family Create and Grow Wealth Protect and Preserve Wealth Plan Distribution of Wealth in Most Tax Advantaged Way During Life and Death FSA Estate Planning Savings Plans for Retirement Lending for Small Bu
Slide 16: Products by customer segment
Credit & Debit Cards Consumer Loans DDAs Asset Manage- ment Financial Planning Estate Planning RMK Funds 401ks LOCs Equities Annuities Jumbo Mortgages Small Business Equity LOCs 529 Plans Investor IRAs Ultra High Net Worth > $10M Affluent $1-10M Middle Market $250m-1M Mass Market < $250m
Slide 17: Morgan Keegan - Leading Regional Brokerage Platform
MORGAN KEEGAN - LEADING REGIONAL BROKERAGE PLATFORM 147 brokerage locations in 16 states and Canada 900 financial advisors 524 FSA's Brokerage assets of $40 billion Trust assets of $22 billion Presence in 90 Regions Bank branches Morgan Keegan and Regions 717 bank branches Approximately 384 series 6
Slide 18: Proven Ability to Leverage Enhanced Retail Footprint
2001 2002 2003 REGIONS 239 320 362 EFC 183 155 161 2001 2002 2003 REGIONS 43 44 59 UP 15 15 13 PROVEN ABILITY TO LEVERAGE ENHANCED RETAIL FOOTPRINT Average Brokerage Assets Per Financial Advisor ($ in Millions) Retail Brokerage Revenue Per Financial Advisor ($ in Thousands) 23% CAGR 17% CAGR Union P
Slide 19: Performance Enhancement
PERFORMANCE ENHANCEMENT Characteristics of High vs. Low Performing Branches Sales Leader Incentive Plan Data Sales Plan Guide Incentives Sales Review Results Chart the Course Tracking and Reporting Results Book of Business Performance Market Data Branch Traffic Data Branch Merchandising Human Resour
Slide 20: Chairman's Club branches
2000 2001 2002 2003 16 42 92 179 CHAIRMAN'S CLUB # OF BRANCHES 16 42 92 179 2003 Average Retail Growth in Chairman's Club Branches Loans 25.6% Fee Income 14.5% Deposits 9.0%
Slide 21: Deposit Acquisition Campaign
DEPOSIT ACQUISITION CAMPAIGN Progress of 2004 Goals as of May 31, 2004 Acquire 250,000 new Demand Deposit Accounts (DDAs) 73,374 new DDAs have been opened (29.35% of annual goal) 20% penetration of RegionsNet with Bill Pay across new DDAs Currently at 16.19% (blended) 75% penetration of Visa Check C
Slide 22: Demand Deposit Account Open / Close Ratio
DEMAND DEPOSIT ACCOUNT OPEN / CLOSE RATIO Jan-Apr 03 Jan-Apr 04 % Increase Total 1.07 1.19 10.6% Jan-Apr 03 Jan-Apr 04 % Increase Total 1.01 1.46 44.6% All DDA Accounts Campaign DDA Accounts
Slide 23: Customer Retention Throughout Merger Integration
CUSTOMER RETENTION THROUGHOUT MERGER INTEGRATION Continuous measurement and tracking of customer service and satisfaction during merger integration Frequent communications to customers and employees regarding merger updates Evaluation of merger relationship satisfaction Identifying and addressing cu
Slide 24: Customer Retention & Growth
Customer Retention & Growth Ongoing Branch Service Satisfaction Associate Focus Groups Customer Focus Groups Customer Satisfaction Surveys Closed Account Studies Associate Engagement Surveys Mortgage Origination Satisfaction Surveys New Account Satisfaction Studies VRU Surveys for Call Center Satisf
Slide 25: Quality of Service Group
QUALITY OF SERVICE GROUP 1999 2000 2001 2002 2003 Deposit Operations Regions Call Center Regions Solutions Center Loan Operations Technology System Availability Technology Service Standards Collection and Recovery RMI HR on Call ATM Uptime E-Commerce
Slide 26: Strategy
STRATEGY Maximize capital generation in our high return mid-south markets through cost / scale advantages Leverage scale and breadth of combined organizations to: Invest in our high growth markets; Overlay proven ability of Morgan Keegan to leverage enhanced retail footprint; and Maximize merger syn
Slide 27: Creating Significant Shareholder Value
CREATING SIGNIFICANT SHAREHOLDER VALUE Pro forma cash accretion of over 5% for both companies by 2005 Projected annual cost savings of $200 million per year by 2007 Disciplined management based on capital allocation Creation of #1 franchise in the six state mid-South region with strong distribution
Slide 28: Regions Financial Corporation
Regions Financial Corporation
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