Regions Financial Corporation · NYSE:RF
Regions Financial — Morgan Keegan 2008 Equity Conference
25 slides from Regions Financial's conference presentation, Sep 4, 2008
Slide 1: Morgan Keegan 2008 Equity Conference
Exhibit 99.1 Morgan Keegan 2008 Equity Conference September 4, 2008
Slide 2: Forward Looking Statements
Regions 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 harb
Slide 3: Company Profile
Company Profile Financial Performance Credit Quality Capital Strategic Initiatives
Slide 4: Regions is Among the Largest U.S. Banks
Regions is Among the Largest U.S. Banks Market Capitalization $7.5 billion Assets $144 billion Loans, net of unearned income $98 billion Deposits $90 billion Branches 1,936 ATMs 2,410 NOTE: As of June 30, 2008.
Slide 5: Franchise Footprint
Franchise Footprint Regions Branches Morgan Keegan Offices Regions Insurance Group State Dep. ($B) Mkt. Share Rank AL $18.2 25% #1 FL 17.7 5 #4 TN 16.7 16 #2 LA 7.6 10 #3 MS 6.2 15 #1 GA 5.5 3 #6 AR 4.3 9 #2 TX 3.0 1 #18 IL 2.4 1 #24 MO 2.3 2 #8 IN 2.0 2 #9 Other 2.4—— Source: SNL DataSource and Reg
Slide 6: Weighted Average Market Share
Weighted Average Market Share Weighted Average Name Market Share (0) BB&T 21.8% Wells Fargo 19.1 Regions 18.5 Regions compares favorably in terms of local market share relative to other top 10 banking franchises Wachovia 18.3 Fifth Third 17.2 U.S. Bancorp 16.6 Bank of America 16.4 JP Morgan Chase 16
Slide 7: Morgan Keegan – Among the Largest Regional Full-Service Brokerage and Investment Banking Firms
Morgan Keegan – Among the Largest Regional Full-Service Brokerage and Investment Banking Firms 378 Office Locations Profile 1,256 financial advisors 378 offices in 19 states $74 billion of customer assets $77 billion of trust assets $69 million assets per financial advisor Recognition Ranked #1 unde
Slide 8: Morgan Keegan—Continued Growth with its Brokerage and Investment Banking Services
Morgan Keegan—Continued Growth with its Brokerage and Investment Banking Services Revenue Composition (2008) Asset Mgmt Other Private 15% 6% Client 26% Regions MK Trust 17% Equity Fixed Capital Income Markets Capital 10% Markets 28% Financial Performance As of June 30, 2008 Revenue ($M) $1,300 $1,02
Slide 9: Second Quarter Financial Performance
Second Quarter Financial Performance Continuation of net interest margin pressure Solid fee income Exceeding merger cost save targets Credit metrics deteriorating Strengthening capital
Slide 10: 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 Proactive management of home equity exposure
Slide 11: Credit Quality Trends
Credit Quality Trends 1.80% 1.60% 1.40% 1.20% 1.00% 0.80% 0.60% 0.40% 0.20% 0.00% 0.62% 0.62% 0.90% 1.25% 1.65% 0.23% 0.35% 0.45% 0.53% 0.86% 0.22% 0.27% 0.37% 0.48% 0.44% 2Q07 3Q07 4Q07 1Q08 2Q08 ? NPAs/Loans and OREO ? Delinquent Loans (90+ Past Due) # Net Charge-Offs/Average Loans
Slide 12: Decline in Housing Market
Decline in Housing Market Housing Units Sold in 000’s 950 900 850 800 750 700 650 600 550 500 Median New Home Price $270,000 $260,000 $250,000 $240,000 $230,000 $220,000 $210,000 $200,000 J07 F07 M07 A07 M07 J07 J07 A07 S07 O07 N07 D07 J08 F08 M08 A08 M08 J08 New Home Sales Median New Home Price Sou
Slide 13: Florida Housing declines by MSA
Florida Housing declines by MSA Pensacola Fort Walton Beach Tallahassee Panama City Jacksonville Gainesville Ocala Lakeland/Winter Haven Punta Gorda Tampa/St. Petersburg/Clearwater Daytona Beach Orlando/Kissimmee Melbourne/Palm Bay Titusville Fort Pierce/Port. St. Lucia West Palm Beach/Boca Raton Fo
Slide 14: Areas of Focus
Areas of Focus Commercial Real Estate Homebuilders Condominiums Home Equity
Slide 15: Residential Homebuilder Portfolio—$5.8 billion
Residential Homebuilder Portfolio—$5.8 billion Geographic Breakdown 2,400 1,800 1,200 Central Florida Midsouth Midwest Southwest Other Accruing Non-accruing Central consists of Alabama, Georgia, and South Carolina Midsouth consists of North Carolina, Virginia and Tennessee Midwest consists of Arkans
Slide 16: Action Plan — Residential Homebuilder
Action Plan — Residential Homebuilder Increased Special Asset staffing levels Established Distressed Loan Disposition program Increased Credit Servicing programs Homebuilder monthly reporting Condo quarterly status reporting Quarterly CRE Retail Portfolio Review Centralized Homebuilder Portfolio Man
Slide 17: Residential Homebuilder Portfolio - $5.8 billion
Residential Homebuilder Portfolio - $5.8 billion $ in millions Billions of dollars 19% Reduction 7.5 6.5 5.5 4th Quarter 2007 1st Quarter 2008 2nd Quarter 2008
Slide 18: Aggressive Condo Exposure Management
Aggressive Condo Exposure Management $ in millions Reduction of 44% since the merger 2400 2200 2000 1800 1600 1400 1200 1000 Nov 06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 (merger)
Slide 19: Example of a Home Equity 'Value' Charge-off
Example of a Home Equity ‘Value’ Charge-off At Origination Today Appraised Value $ 1,000,000 $ 600,000 Less: First Mortgage $ 600,000 $ 600,000 Equity Remaining $ 400,000 $ - Less: Home Equity Loan $ 140,000 $ 140,000 Equity Remaining $ 260,000 $ (140,000) Combined Loan-to-Value 74% 123% If the firs
Slide 20: Home Equity Portfolio - $15.4 billion
nco% Home Equity Portfolio - $15.4 billion 5.0 2nd Lien 4.5 4.0 3.5 3.0 2.5 2.0 2nd Lien 1.5 1st Lien 1.0 0.50 1st Lien Florida — All Other States - $Balances (billions) $5.4B $10B Note: Bar height represents charge-off percentage and width represents ending balances as of June 30, 2008.
Slide 21: Action Plan — Home Equity
Action Plan — Home Equity Florida home equity collections managed by a dedicated group Collection calls start at Day 5 for Florida Payment hardship tools available on regions.com DVD sent to customers asking them to contact us Select Florida branches calling high risk customers Enhanced loss mitigat
Slide 22: Capital Management
Capital Management Strategy Maintenance of strong capital levels commensurate with franchise profile and current operating environment Emphasis on risk-weighted (Tier 1) and tangible capital ratios Remain opportunistic with respect to new non-dilutive issuances Recent Actions Reduced dividend to pre
Slide 23: Five Corporate-wide Strategic Initiatives
Five Corporate-wide Strategic Initiatives Leverage full depth of Morgan Keegan capabilities among all Lines of Business Grow the emerging and mass affluent customer segment through a fully integrated approach Increase core customer deposits to optimize the profitability of balance sheet growth Enhan
Slide 24: Well Positioned Despite Challenging Environment
Well Positioned Despite Challenging Environment Growth driven by strategic initiatives Relatively neutral balance sheet positioning Strong Morgan Keegan contribution Merger opportunities mitigate industry downturn, allow for increased operating leverage Exceeding merger-related cost saves Continued
Slide 25: Regions
VN REGIONS
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