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8-K - FORM 8-K - REGIONS FINANCIAL CORPd8k.htm
EX-99.2 - SUPPLEMENTAL FINANCIAL INFORMATION - REGIONS FINANCIAL CORPdex992.htm
EX-99.1 - PRESS RELEASE - REGIONS FINANCIAL CORPdex991.htm
Regions Financial
4
th
Quarter Earnings Conference Call
January 25, 2011
Exhibit 99.3


Forward-Looking Statements
2


Summary of Fourth Quarter 2010 Results
Earnings Highlights
Credit trends are improving
Non-performing loans, excluding loans HFS,
declined $212 million to $3.2 billion
Loan loss provision of $682 million; provision
essentially equaled net charge-offs
Credit Update
($ in millions)
4Q09
3Q10
4Q10
Non-performing loans *
$  3,488
$  3,372
$  3,160
Net Charge Offs
$  692
$  759
$  682
Provision Build
$  487
$  1
$  -
Loan Loss Provision
$  1,179
$  760
$  682
Note: Amounts exclude non-core items impacting the current and prior quarters
* Non –
GAAP; Refer to Financial Supplement for adjustments to PPNR
($ in millions)
4Q09
3Q10
4Q10
Net Interest Income
$  850
$  868
$  877
Adjusted Non-Interest Revenue*
$  743
$  748
$  795
Adjusted Non-Interest Expense*
$  1,207
$  1,162
$  1,211
Adjusted PPNR*
$  386
$  454
$  461
EPS
($0.51)
($0.17)
$0.03
Earnings per diluted share of $0.03
Adjusted Pre-tax Pre-provision Net Revenue
(“PPNR”) of $461 million; compared to 3Q10:
Net interest income increased $9 million and
net interest margin expanded 4 bps to 3.00%
Adjusted
non-interest
revenues
increased $47
million or 6% reflecting strong revenue at
Morgan Keegan
Adjusted non-interest expenses increased
$49 million or 4% primarily due to higher
professional and legal fees and Morgan
Keegan incentive-based compensation
1
*Excluding loans held for sale


Non-Performing Loan Inflows Decline
2


Non-performing Asset Levels Decline
Non-performing loans declined $212 million
Non-performing assets declined $308 million from third quarter
For the full year non-performing assets declined $494 million
3


Loan Charge-Offs and Allowance
(1) Loan charge-offs related Sales / Transfer to Held for Sale
(2) Excludes loans held for sale
4


Commercial and Industrial Growing;
Investor Real Estate Reflects De-risking Efforts
Specialty Lending Groups
Small Business Focus
Growth in C&I  more broadly distributed across market and in more industries than the
3
rd
quarter
Investor Real Estate declined $1.6 billion; down close to $6 billion year-over-year
Targeting Specific Areas for Growth:
Direct Consumer 
Underserved Banking Segment
($ in millions)
9/30/2010
12/31/2010
$ Change
% Change
Commercial & Industrial
21,501
$   
22,540
$    
1,039
$    
5%
Commercial Real Estate - Owner-Occupied
12,372
     
12,516
      
144
        
1%
Investor Real Estate
17,464
     
15,908
      
(1,556)
    
-9%
Residential First Mortgage
15,723
     
14,898
      
(825)
       
-5%
Home Equity
14,534
     
14,226
      
(308)
       
-2%
Other consumer
2,826
       
2,776
        
(50)
         
-2%
Total Loans
84,420
$   
82,864
$    
(1,556)
$   
-2%
Ending Balances
5


Decline in Deposit Costs Driven by Changing
Deposit Mix
As anticipated, our improving cost structure impacted overall deposit balances
Deposit costs declined 6 bps linked quarter; down 51 bps year-over-year
Total funding costs declined 11 bps linked quarter to 0.91%
($ in millions)
3Q10
Avg Rate
4Q10
Avg Rate
$ Change
% Change
Low Cost Deposits
69,917
$          
0.17%
71,273
$    
0.17%
1,356
$       
2%
Time Deposits
25,100
            
2.16%
23,347
      
2.07%
(1,753)
        
-7%
Customer Deposits
95,017
            
0.70%
94,620
      
0.64%
(397)
           
0%
Corporate Treasury Deposits
61
                     
1.30%
22
              
3.61%
(39)
              
-64%
Total Deposits
95,078
$          
0.70%
94,642
$    
0.64%
(436)
$         
0%
($ in millions)
9/30/2010
Deposit Mix %
12/31/2010
Deposit Mix %
$ Change
% Change
Low Cost Deposits
70,745
$          
74%
71,813
$    
76%
1,068
$       
2%
Time Deposits
24,177
            
26%
22,784
      
24%
(1,393)
        
-6%
Customer Deposits
94,922
            
100%
94,597
      
100%
(325)
           
0%
Corporate Treasury Deposits
56
                     
0%
17
              
0%
(39)
              
-70%
Total Deposits
94,978
$          
100%
94,614
$    
100%
(364)
$         
0%
Ending Balances and Deposit Mix
Average Balances and Average Rates
6


Decline in Deposit Costs and Improvement in
Loan Yields Drive Net Interest Income Higher
Net interest margin climbed
4bps linked quarter; up 28 bps
year-to-date
Repricing
opportunities remain
with over $13.5 billion of CD’s
maturing in the next 12
months at an average of
2.05%
Loan yields increased 5 bps
linked quarter; improvement
going forward will be driven by
widening loan spreads
Excess liquidity impacted
margin 11 bps compared to 8
bps in Q3
7


Solid non-interest revenue; focused expense
management
Adjusted non-interest revenue* 6% higher versus prior quarter
Increase in interchange income reflects increased debit card volume and fee-
based account growth
Morgan Keegan’s revenues were solid reflecting strength in private client and
investment banking revenue
Mortgage revenue down due to MSR valuations
Adjusted non-interest expenses* 4% higher versus prior quarter
Increase in professional and legal fees
Increase in Morgan Keegan incentive-based compensation
Credit-related costs continue to result in higher non-interest expenses
8
* Non –
GAAP; Refer to  page 26 of the Financial Supplement


Capital Ratios Remain Strong;
Liquidity Profile Solid
(1)
Current Quarter ratios are estimated
(2)
Subject to change as interpretation of Basel III rules is ongoing and dependent on guidance from Basel and
regulators.
Solid liquidity at both the bank and holding company
Loan-to-deposit ratio of 88 percent
Well-positioned with respect to the Liquidity Coverage Ratio
prescribed under Basel III
3Q10
4Q10
(1)
Pro forma for Basel III
4Q10
(2)
Tier 1 Common
7.6%
7.9%
7.6%
Tier 1 Capital
12.1%
12.4%
11.4%
Total Risk-Based Capital
16.0%
16.4%
14.9%
9