Regions Financial Corporation · NYSE:RF
Regions Financial — Merrill Lynch 2008 Banking & Financial Services Conference
21 slides from Regions Financial's conference presentation, Nov 12, 2008
Slide 1: Merrill Lynch 2008 Banking & Financial Services Conference
Merrill Lynch 2008 Banking & Financial Services Conference November 11-13, 2008 Exhibit 99.1
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: Strong Southeastern Franchise
Source: Based on June 30, 2008 FDIC Data obtained from SNL State Dep. ($B) Mkt. Share Rank AL $17.2 23% #1 TN 16.3 #1 FL 14.3 #4 MS 9.7 #1 LA 7.2 #3 GA 6.1 #6 AR 4.2 #2 TX 3.0 #17 IL 2.4 #24 MO 2.2 #9 IN 2.1 #9 Other 2.5 — — Regions Morgan Keegan Insurance Strong Southeastern Franchise
Slide 4: Regions compares favorably in terms of market share relative to other top banking franchises
Regions compares favorably in terms of market share relative to other top banking franchises High Relative Market Density Weighted Average Name Market Share (1) BB&T 22.2 Wells Fargo / Wachovia 20.3 Comerica 18.8 M&T 18.1 M&I 17.8 Bank of America 16.6 JP Morgan / WAMU 16.3 U.S. Bancorp 16.3 PNC / Na
Slide 5: Morgan Keegan – Among the Largest Regional Full-Service Brokerage and Investment Banking Firms
Office Locations Profile › 1,271 financial advisors › 360 offices in 19 states › $70 billion of customer assets › $74 billion of trust assets › $65 million assets per financial advisor Morgan Keegan – Among the Largest Regional Full-Service Brokerage and Investment Banking Firms As of September 30,
Slide 6: Q2 2008 to Q3 2008 Variance
Q2 2008 to Q3 2008 Variance (1) Earnings per Share from continuing operations, excluding merger expenses. Q2 '08 Q3 '08 Difference Earnings per Share (1) $ 0.39 $ 0.15 $ (0.24) Accelerated Loan Sales (0.04) (0.17) (0.13) SILO Settlement - (0.03) (0.03) MSR (Impairment)/Recapture 0.06 (0.01) (0.07) $
Slide 7: Aggressive Asset Sales Drove Net Charge-offs
Aggressive Asset Sales Drove Net Charge-offs $186 $253 $23 $163 - 2Q08 3Q08 NCOs Sale Losses NCO’s (in millions)
Slide 8: Credit Quality Trends
1.65% 1.66% 0.62% 0.62% 1.25% 0.90% 1.79% 1.25% 0.90% 0.65% 0.62% 1.65% 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% 1.40% 1.60% 1.80% 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 NPAs/Loans and OREO (excluding Held for Sale) NPAs/Loans and OREO (including Held for Sale) Credit Quality Trends
Slide 9: Non-Performing Assets Remain Unchanged
Non-Performing Assets Remain Unchanged $1,642 Ending NPAs - 9/30/08 (70) Payments (19) Returned to Accruing Status (431) Sales (180) Net Charge-Offs Additions $1,621 Beginning NPAs - 6/30/08 (in millions) Non-performing assets shown above exclude assets held for sale.
Slide 10: Decline in Housing Market
Source: US Census Bureau Reports Decline in Housing Market 1000 J07 F07 M07 A07 M07 J07 J07 A07 S07 O07 N07 D07 J08 F08 M08 A08 M08 J08 J08 A08 S08 $200,000 $210,000 $220,000 $230,000 $240,000 $250,000 $260,000 $270,000 New Home Sales Median New Home Price
Slide 11: Florida Housing declines by MSA
Source: Florida Association of Realtors Florida Housing declines by MSA
Slide 12: Losses Contained in Smaller Portfolios
0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 9.00% 10.00% 11.00% 12.00% Condo – Approx 30% Average Loan Portfolio ($ in billions) Losses Contained in Smaller Portfolios
Slide 13: Residential Homebuilder Portfolio - $5.2 billion
Residential Homebuilder Portfolio - $5.2 billion Geographic Breakdown Central consists of Alabama, Georgia, and South Carolina Midsouth consists of North Carolina, Virginia and Tennessee Midwest consists of Arkansas, Illinois, Indiana, Iowa, Kentucky, Missouri, and Texas Southwest consists of Louisi
Slide 14: Residential Homebuilder Portfolio - $5.2 billion
Residential Homebuilder Portfolio - $5.2 billion 2.5 3.5 4.5 5.5 6.5 7.5 4th Quarter 2007 1st Quarter 2008 2nd Quarter 2008 3rd Quarter 2008
Slide 15: Aggressive Condo Exposure Management
1000 1200 1400 1600 1800 2000 2200 2400 Nov 06 (merger) 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 $ in millions Aggressive Condo Exposure Management Reduction of 52% since the merger
Slide 16: Home Equity Losses Concentrated in Florida 2nd Liens
Florida – $5.6B All Other States - $10.2B NCO % 0.50 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 $2.0 Lien 2 Lien $3.6 $4.5 1 Lien 2 Lien $5.7 Note: Bar height represents charge-off percentage and width represents ending balances as of September 30, 2008. $ Balances (billions) Home Equity Losses Concentrate
Slide 17: Proactive Management of Home Equity reflected in Net Charge-offs
Proactive Management of Home Equity reflected in Net Charge-offs Net Charge-Off % 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% 5.00% Q407 Q108 Q208 Q308 Non-FL FL
Slide 18: Emergency Economic Stabilization Act of 2008
Emergency Economic Stabilization Act of 2008 • Ease funding pressure Senior Unsecured Debt Guarantee • Potential acceleration of problem asset disposal Loan Sales to Government • Increase depositor confidence • Stabilize deposit base • Safety and soundness FDIC Deposit Insurance Program Interest-bea
Slide 19: Capital Management
Capital Management › TARP Capital Purchase Program bolsters regulatory capital by $3.5 billion 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% Tier 1 ratio Tier 1 before TARP Proforma Tier 1 TARP – 10.47% Pre-Tarp – 7.47%
Slide 20: Looking to the Future
Looking to the Future Actions Focus Improve Net Interest Margin Control Expenditures Build Tier 1 Capital • Ration Loan Capacity • Earnings Retention • $3.5 Billion Preferred Shares Issuance • Full Pricing on Loans • Strong Deposit Pricing Discipline • Grow Low Cost Deposits • Control Discretionary
Slide 21: Regions
VN REGIONS
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