Regions Financial Corporation · NYSE:RF
Regions Financial — Merger or Acquisition (May 2004)
21 slides from Regions Financial's merger presentation, May 5, 2004
Slide 1: Regions
Regions a )
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 {future events and fancial performance. You should not place uncue rélance on these statements as the forwarc-tooking statements are foase
Slide 3: Strong Start to 2004
$168.5 nee $168.6 Income {in miltions) 19003 1004 $7317 Revenues (in mittions) $691.6 1003 1004 ne 0.25% SOE 0.17% 10031004 * As a percentage of average loans, annualized STRONG START TO 2004 m Record quarterly earnings of $168.5 million, or 75 cents per diluted share, up 5.6 percent over 2003 and 1
Slide 4: Improving Credit Quality
IMPROVING CREDIT QUALITY Past Due Loans >30 days Non-Performing Assets as a percentage of outstanding loans Including loans past due greater than 90 days Sin milions 20% 460 400 to 4 EE 50 ie $0 ie Es 50 am oe 200 $160 am $100 0 ar + at 10 RHO
Slide 5: Reaping Rewards of Low-Cost Deposit Acquisition Campaign
REAPING REWARDS OF LOW-COST DEPOSIT ACQUISITION CAMPAIGN mw Low-cost deposit growth of 7.1% linked quarter, annualized, in first quarter = Goal of opening 250,000 new DDA accounts in 2004; opened 55,000 in the first quarter w Increased transaction account open/close ratio from .99 at beginning of ye
Slide 6: Superior Net Interest Margin Management
SUPERIOR NET INTEREST MARGIN MANAGEMENT 4 [i Regions Hi Peers 10 Basis Point Change N 1003 vs.2003 2003 vs.3003 3003 vs. 4003 ©4003 vs. 1004 * Peer Group includes AmSouth, BB&T, Comerica, Compass, Fifth Third, Huntington Bancshares, = National Cornmerce, SouthTrist, Wachovia Regions
Slide 7: Well-Positioned Balance Sheet
WELL-POSITIONED BALANCE SHEET PERCENTAGE CHANGE IN INVESTMENT SECURITIES PORTFOLIO 10.0% I Regions 8.0% i Peers 6.0% 4.0% 2.0% 0.0% + 2.0% 4.0% 6.0% 8.0% 1003 vs.2003 2003 vs.3003 3003 vs. 4003 ©4003 vs. 1004 * Pear Group mcludes AmSouth, BEAT, Comerica, Compass, Fh Third Huntngon Bancshares, Regign
Slide 8: Morgan Keegan Produces Outstanding 1st Quarter
MORGAN KEEGAN PRODUCES OUTSTANDING 48T QUARTER $1765 m Revenue growth of 10.4% and net $159.9 income growth of 27.3% over 1Q03 Revenue = Second successful offering of a {in miltions) closed-end fund completed in 1@04 generating approximately $10 million ‘008 “out in revenues $16.4 $20.9 m= 16 thousa
Slide 9: Solid Mortgage Performance
SOLID MORTGAGE PERFORMANCE BENEFITTING FROM BALANCED OPERATIONS Regions Mortgage EquiFirst $146 $15.2 1Q03 2Q03 3Q03 4Q03 1004 1903 2003 3003 4003 1004 Net Income (Sin millions) Regions
Slide 10: Creating a New Regional Force in Banking and Financial Services
a CREATING A NEW REGIONAL FORCE IN BANKING AND FINANCIAL SERVICES UNION PLANTERS ions ante Regions
Slide 11: A New Regional Force in Banking and Financial Services
A NEW REGIONAL FORCE IN BANKING AND FINANCIAL SERVICES Distribution Strength m Regions © Union Planters Morgan Keegan ® Rebsamen UNION PLANTERS ions BANK cons
Slide 12: Top Ten Pro Forma Markets
TOP TEN PRO FORMA MARKETS Branches Deposits MktShae Rank © Curmulative State (No.) ($mm)' Ch), (No.) _% of Franchise Alabama 197 10,310 WA Tennessee 222 8,495 Florida St. Louis Atlanta Nashville Montgomery New Orleans UNION MM Regions Ml Union Planters [Regions / Union Planters PLANTERS oe BANK 1 ps
Slide 13: Compatible Corporate Culture
COMPATIBLE CORPORATE CULTURE Regions Union Planters Similar Customer Base v we Approach Community Banking v v Superior Customer Service v v Organization Geography v v Business Lines v v Uniform Processes v v UNION rs PLANTERS Regions, BANK Ss
Slide 14: Strategy
STRATEGY = Maximize capital generation in our high return mid-south markets through cost / scale advantages mw 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
Slide 15: Regions' Strong Credit Culture Accelerates Credit Leverage
REGIONS’ STRONG CREDIT CULTURE ACCELERATES CREDIT LEVERAGE IN UNION PLANTERS’ FRANCHISE Pre-Tax Net Income / EPS Impact from Credit Quality Ratios! Improvement in Union Planters’ Credit Quality Union (conse in monn) Regions Planters. Combined Allowance $456 $303 $765 NPLs 202 198 398 NPAs 248 262 60
Slide 16: Brokerage Platform
BROKERAGE PLATFORM MORGAN KEEGAN - LEADING REGIONAL Morgan Keegan Union Planters Morgan Keegan and Regions Footprint Footprint = 147 brokerage locations in 15 states States' _ Offices Branches and Canada GA 24 = = 900 financial advisors AL 23 19 m Brokerage assets of $40 billion La m Trust assets of
Slide 17: Proven Ability to Leverage Enhanced Retail Footprint
PROVEN ABILITY TO LEVERAGE ENHANCED RETAIL FOOTPRINT Retail Brokerage Revenue Average Brokerage Assets Per Financial Advisor Per Financial Advisor @ in Thousands) @ inMitions) A ofp CAGR ase oh $362 4th © $59 $43 $44 2001 2002 2003 2001 2002 2003 UNION MM Regions Mill Union Planters PLANTERS § Regio
Slide 18: The Past Days....
THE PAST 90 DAYS.... = Transition-Related Activity — Created management oversight over all aspects of the merger process — Staffed Project Management Office (PMO), Transition Leadership Team, and Merget Integration Team — Conducted cultural survey to enhance understanding and communication between o
Slide 19: Key Milestones for Next Six Months
KEY MILESTONES FOR NEXT SIX MONTHS m Regulatory approvals = Target close of merger — mid-year = Certain departments targeted to function as one unit starting date of close (e.g., Human Resources and Accounting) Finalization of the combined organizational chart Finalization of systems decisions Devel
Slide 20: Why Are We Confident in Execution of Integration Plan?
WHY ARE WE CONFIDENT IN EXECUTION OF INTEGRATION PLAN? = Mitigated integration risks — Conservative cost savings assumptions — Minimal overlap in our branch footprints — Investment by both organizations in recent years in people, many with large-bank merger experience, and systems — Three year phase
Slide 21: 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