Regions Financial Corporation · NYSE:RF
Regions Financial — Citigroup Beyond the Basics Financial Services Forum (May 2008)
17 slides from Regions Financial's conference presentation, May 20, 2008
Slide 1: Citigroup Beyond the Basics Financial Services Forum
Citigroup Beyond the Basics Financial Services Forum Exhibit 99.1 May 20, 2008
Slide 2: Housing Market
Source: US Census Bureau Reports Housing Market J07 F07 M07 A07 M07 J07 J07 A07 S07 O07 N07 D07 J08 F08 M08 $200,000 $210,000 $220,000 $230,000 $240,000 $250,000 $260,000 $270,000 New Home Sales Median New Home Price
Slide 3: Industry Challenges
SUBPRIME SIVs / CDOs NON-TRADITIONAL MORTGAGES Industry Challenges X X X Regions has $100 million (0.1%) of subprime loans Regions has no option ARMs, negative amortization, or loans with teaser rates Regions has no SIV exposure or CDOs on the balance sheet
Slide 4: Credit Quality Trends
Credit Quality Trends 1.25% 0.53% 0.20% 0.23% 0.27% 0.45% 0.62% 0.90% 0.62% 0.45% 0.48% 0.22% 0.22% 0.35% 0.37% 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% 1.40% 1Q07 2Q07 3Q07 4Q07 1Q08 NPAs/Loans and OREO Net Charge-Offs/Average Loans Delinquent Loans (90+ Past Due)
Slide 5: Loan Portfolio Overview (Risk View)
Loan Portfolio Overview (Risk View) As of March 31, 2008. Period End Loans (Total $96.4 billion) Nonperforming Loans (Total $1.0 billion) $ in billions $ in millions Commercial and Industrial/Leases, $17.5 CRE - Owner-Occupied Mortgages, $4.5 Commercial Real Estate - Non-Owner-Occupied Mortgages, $9
Slide 6: Commercial Real Estate Portfolio - $20.5 billion
Commercial Real Estate Portfolio - $20.5 billion CRE Portfolio by Product CRE Portfolio Characteristics Portfolio well-diversified by product type $6.2 billion residential homebuilder portfolio is a subset of the Commercial Real Estate portfolio with the majority of the residential homebuilder portf
Slide 7: Consumer Real Estate Portfolio - $38 billion
Consumer Real Estate Portfolio - $38 billion Central, $294 Southwest, $30 Midwest, $89 Midsouth, $82 Other, $35 Florida, $838 As of March 31, 2008. Condo Portfolio by Region $ in millions › As of March 31, 2008, our condominium portfolio totaled $1.367 billion, down $891 million from December 31, 20
Slide 8: Residential Homebuilder Portfolio - $6.2 billion
Residential Homebuilder Portfolio - $6.2 billion Land, $2,093 Residential Spec, $1,875 Residential Presold, $588 Lots, $1,417 National Homebuilders, $258 Product Breakout $ %* $ %* $ %* $ %* $ %* $ %* 90+ Past Due 2,883 0.17 0.07 6,596 0.35 3,764 0.18 0.04 13,273 0.21 Non-Accruing Loans 103,294 7.29
Slide 9: Residential Homebuilder Portfolio - Geographic Breakdown
Residential Homebuilder Portfolio - $7.2 billion Residential Homebuilder Portfolio - $6.2 billion Geographic Breakdown 500,000 1,000,000 1,500,000 2,000,000 2,500,000 Central consists of Alabama, Georgia, and South Carolina Midsouth consists of North Carolina, Virginia and Tennessee Midwest consists
Slide 10: Consumer Real Estate Portfolio - $31.8 billion
Consumer Real Estate Portfolio - $38 billion Consumer Real Estate Portfolio - $31.8 billion Subprime Mortgage, $0.1 Alt A Mortgage, $2.7 Home Equity 1st Lien, $6.1 Home Equity 2nd Lien, $8.8 Residential Prime Mortgage, $14.0 As of March 31, 2008. $ in billions Wgtd Avg. Wgtd Avg. Outstandings* LTV F
Slide 11: Consumer Real Estate Geographic Breakdown
Consumer Real Estate Geographic Breakdown 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 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
Slide 12: Example of a Home Equity 'Value'
Example of a Home Equity ‘Value’ Charge-off If the first mortgage holder forecloses, there is no value left to satisfy our Home Equity loan. We must charge off our balance of $140,000. At Origination Today Appraised Value 1,000,000 $ 600,000 $ Less: First Mortgage 600,000 $ 600,000 $ Equity Remainin
Slide 13: Excellent Loss Experience versus Peers
Excellent Loss Experience versus Peers NOTE: Industry peers include FITB, KEY, NCC, STI, USB, WFC, WM Home Equity Regions 0.24% 0.31% 0.31% 0.57% Industry Peers 0.52% 0.67% 1.01% 1.85% Residential First Mortgage Regions 0.12% 0.13% 0.18% 0.23% Industry Peers 0.26% 0.29% 0.80% 1.43% Net Charge-offs 2
Slide 14: Action Plan – Home Equity
Action Plan – Home Equity Underwriting › Lending criteria has tightened in line with market conditions. › Loan-to-Value on new production is 71% and appraised value is based on distressed market prices. As Real Estate markets strengthen the effective loan-to-value will reduce. › We are a ‘through-th
Slide 15: Initiatives to Mitigate Risk
Initiatives to Mitigate Risk Exited subprime Shut down Regions Funding Segmented CRE and Small Business Shut down International Lending Focused on centrally managing our Homebuilder portfolio
Slide 16: Key Takeaways
Key Takeaways Plain vanilla lender Portfolios are performing as we expect, except for Homebuilder, Condominium and Home Equity portfolios In the case of Homebuilder, Condominium and Home Equity portfolios, we have focused resources to help mitigate the risk of loss and we are actively working these
Slide 17: Regions
VN REGIONS
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