Regions Financial Corporation · NYSE:RF

Regions Financial — Investor Presentation (September 2003)

30 slides from Regions Financial's investor presentation, Sep 10, 2003

  1. Slide 1: Regions

    Regions

  2. 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

  3. Slide 3: Regions Financial Corporation

    REGIONS FINANCIAL CORPORATION $49.5 billion in assets at June 30, 2003 Among 25 largest U.S. banks Banking offices in 9 states Brokerage offices in 15 states Insurance relationships throughout U.S. Over $2.5 billion in mortgage production during the second quarter Nearly 700 banking offices 757 ATM'

  4. Slide 4: Footprint

    REGIONS FINANCIAL CORPORATION FOOTPRINT © = Regions Bank @ = Morgan Keegan A = Insurance

  5. Slide 5: Market Focus: Population Growth

    2000-2002 2002-2007 2007 0.019 0.048 31.3 0.029 0.072 34.6 31.6 North 45.9 46.9 45 43.9 MARKET FOCUS POPULATION GROWTH Based on data produced by Claritas, Inc. (Regions Footprint includes the states of Alabama, Arkansas, Florida, Georgia, Louisiana, North Carolina, South Carolina, Tennessee and Texa

  6. Slide 6: Market Focus: Household Growth

    2000 2002 2007 28.1 29 31.3 West 30.6 38.6 34.6 31.6 North 45.9 46.9 45 43.9 MARKET FOCUS HOUSEHOLD GROWTH Projected Increase of 2.3 Million Households in Regions Footprint by 2007 (Regions Footprint includes the states of Alabama, Arkansas, Florida, Georgia, Louisiana, North Carolina, South Carolin

  7. Slide 7: Fee Income as Percentage of Total Revenues

    1Q01 2Q02 2Q03 Banking 85.3 82.3 85.2 Investment Banking/Brokerage/Trust 24 141.6 173.2 Mortgage Banking 28.7 48 87 Insurance 9.4 16.8 17 49.7% 43.5% 29.7% FEE INCOME AS PERCENTAGE OF TOTAL REVENUES Excludes securities gains = Banking = Mortgage Banking = Investment Banking/Brokerage/Trust = Insuran

  8. Slide 8: Morgan Keegan Adapting to Market Conditions

    1st Qtr 2nd Qtr 3rd Qtr 4th Qtr East 20 38 23 14 5 20 West 30.6 38.6 34.6 31.6 North 45.9 46.9 45 43.9 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 8 26 41 7 18 MORGAN KEEGAN ADAPTING TO MARKET CONDITIONS 1st Qtr 2nd Qtr 12 39 28 17 4 12 30.6 38.6 34.6 31.6 45.9 46.9 45 43.9 FYE 7/31/93 FYE 7/31/98 YTD 6/30/03 =

  9. Slide 9: Morgan Keegan Customer Assets

    = Total Customer Assets 1999 12/31/2001 6/30/2002 12/31/2002 6/30/2003 All Other 179 31.6 32 32.7 35.5 1148.08 989.82 875.4 976.22 MORGAN KEEGAN CUSTOMER ASSETS = Total S&P 500 Index

  10. Slide 10: Morgan Keegan Average Assets per Financial Advisor

    1998 1999 2000 2001 2002 6/30/2003 3Q02 4Q02 1Q03 2Q03 Average Assets per FA 36.2 43.2 45.4 42.9 44.4 51 0.7 0.7 0.71 0.73 MORGAN KEEGAN AVERAGE ASSETS PER FINANCIAL ADVISOR

  11. Slide 11: Community Banking Bubbles Weighted by Economic Profit

    COMMUNITY BANKING BUBBLES WEIGHTED BY ECONOMIC PROFIT

  12. Slide 12: New Branches (2003)

    REGIONS FINANCIAL CORPORATION NEW BRANCHES (2003) = In Process O= Opened A = InterBank Branches

  13. Slide 13: Community Banking Average Loans

    2Q02 3Q02 4Q02 1Q03 2Q03 4 Amount of Avg. Loans 24.4 24.8 25.1 25.4 25.5 COMMUNITY BANKING AVERAGE LOANS

  14. Slide 14: Average Low-Cost Deposits

    2Q02 3Q02 4Q02 1Q03 2Q03 17.9 18.1 18.8 19.1 19.5 AVERAGE LOW-COST DEPOSITS

  15. Slide 15: 2003 Sales Focus

    2003 SALES FOCUS CHAIRMAN'S CLUB / CHART-THE-COURSE Outbound Calls 632,488 896,738 41.8% Completed Profiles 237,794 419,667 76.5% Relationship Bank Referrals 244,547 360,928 47.6% Teller Referrals 438,643 855,831 95.1% YTD 2002 YTD 2003 % Change * As of 6/30/03 there are 115 branches on track to bec

  16. Slide 16: Equity AssetLine

    40% 2Q02 3Q02 4Q02 1Q03 2Q03 Regions 1026 1078 1124 1225 1431 EQUITY ASSETLINE

  17. Slide 17: Regions / Morgan Keegan Referral Trend

    REGIONS / MORGAN KEEGAN REFERRAL TREND June 30, 2003 Vs. June 30, 2002 180% Increase in Brokerage Fee Referrals Paid to Bank Branches 44% Increase in Commercial Loan Referrals Paid to Morgan Keegan Brokers

  18. Slide 18: Financial Performance

    ta FINANCIAL PERFORMANCE

  19. Slide 19: Earnings per Diluted Share

    EARNINGS PER DILUTED SHARE* *Adjusted for effect of FAS 142 and one time non-recurring charges in 2Q01 1Q01 2Q01 3Q01 4Q01 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 0.6 0.62 0.65 0.66 0.66 0.67 0.7 0.7 0.71 0.73 (PER SHARE)

  20. Slide 20: Investment Securities as a Percentage of Total Assets

    2Q02 3Q02 4Q02 1Q03 2Q03 Regions 0.1857 0.1893 0.1876 0.2004 0.1921 Peers 0.2184 0.2137 0.2128 0.2198 0.2238 INVESTMENT SECURITIES AS A PERCENTAGE OF TOTAL ASSETS * Peer Group includes Amsouth, BB&T, Comerica, Compass, Fifth Third, National Commerce, SouthTrust, Union Planters, Wachovia

  21. Slide 21: Low Cost Deposits as a Percent of Total Deposits

    2Q02 2Q03 Low Cost Deposits 0.57 0.62 LOW COST DEPOSITS AS A PERCENT OF TOTAL DEPOSITS

  22. Slide 22: Net Loan Losses at Regions Historically Below Industry

    NET LOAN LOSSES AT REGIONS HISTORICALLY BELOW INDUSTRY 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 1Q03 2Q03 Regions 0.0044 0.0035 0.0028 0.0019 0.0017 0.0013 0.0015 0.0025 0.0028 0.0037 0.0031 0.0041 0.0036 0.0025 0.0029 Industry* 0.0143 0.0159 0.0127 0.0085 0.005 0.0049 0.0058

  23. Slide 23: Past Due Loans

    1999 2000 2001 2002 6/30/2003 East 0.0168 0.0149 0.0151 0.012 0.0106 PAST DUE LOANS > 30 DAYS AS A PERCENTAGE OF OUTSTANDING LOANS

  24. Slide 24: Non-Performing Assets as Percentage of Outstanding Loans

    2Q02 3Q02 4Q02 1Q03 2Q03 East 0.012 0.0111 0.0103 0.0108 0.0102 NON-PERFORMING ASSETS AS PERCENTAGE OF OUTSTANDING LOANS 1.02% 1.20%

  25. Slide 25: Loan Loss Reserve as a Percentage of Loans

    2Q00 2Q01 2Q02 2Q03 2Q03 East 0.012 0.0124 0.0139 0.0144 0.0102 LOAN LOSS RESERVE AS A PERCENTAGE OF LOANS

  26. Slide 26: Outstanding Dividend Record

    * 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 0.037 0.075 0.081 0.085 0.089 0.095 0.111 0.134 0.143 0.159 0.173 0.191 0.205 0.227 0.255 0.291 0.345 0.364 0.382 0.418 0.436 0.455 0.52 0.6 0.66 0.7 0.8 0.92 1 1.08 1.12 1.16 1.24 32 Consecutive Yea

  27. Slide 27: Capital Ratios

    CAPITAL RATIOS Tier 1 Capital 8.55% 9.11% Total Capital 13.58 13.81 Tier 1 Leverage 6.81 7.22 Board authorization to repurchase up to 12.6MM shares of common stock Increase in quarterly cash dividend to $0.32/share 6/30/02 6/30/03

  28. Slide 28: Stock Performance vs. S&P and S&P Financial

    Regions S&P 500 S&P 500 Financial 1/4/2002 100 100 100 1/11/2002 98.85 97.74 96.73 1/18/2002 101.45 96.21 97.1 1/25/2002 103.92 96.7 95.97 2/1/2002 103.06 95.79 92.02 2/8/2002 102.8 93.6 89.96 2/15/2002 104.41 94.33 88.04 2/22/2002 104.02 93.12 84.78 3/1/2002 108.53 96.75 90.41 3/8/2002 112.52 99.56

  29. Slide 29: Regions Financial Corporation: A Diversified Provider of Financial Services

    REGIONS FINANCIAL CORPORATION... A diversified provider of financial services products Operating in strong markets and communities across the South With a long history of consistent performance for shareholders

  30. Slide 30: Regions

    Regions

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