REGIONS FINANCIAL CORP - FORM 8-K - EX-99.2 - SUPPLEMENTAL FINANCIAL INFORMATION

Attached files

file	filename
8-K - FORM 8-K - REGIONS FINANCIAL CORP	d8k.htm
EX-99.1 - PRESS RELEASE - REGIONS FINANCIAL CORP	dex991.htm
EX-99.3 - VISUAL PRESENTATION OF OCTOBER 20, 2009 - REGIONS FINANCIAL CORP	dex993.htm

Exhibit 99.2

FINANCIAL SUPPLEMENT TO THIRD QUARTER 2009 EARNINGS RELEASE

Summary

Quarterly loss of $0.37 per diluted share reflects continued efforts to improve the risk profile of the balance sheet and a charge related to branch consolidation

•

Significant third quarter drivers include: $1,025 million loan loss provision ($345 million above net charge-offs); net interest margin expanded 11 bps to 2.73%; 2 percent increase in average low-cost deposits, including a $701 million rise in non-interest bearing deposits; Results included a $41 million charge related to consolidating 121 branches

•

Pre-provision net revenue adversely impacted by higher other real estate owned, legal and professional expenses

Focus on growing customer relationships, resulting in continued deposit growth

•

Opened a record 270,000 new retail and business deposit checking accounts during the third quarter - a 29% increase versus the same period last year; New account openings YTD totaled 762,000, placing Regions on pace to meet its goal of 1 million new checking accounts in 2009

•

Average customer deposits grew 1% linked quarter, up $10.2 billion or 12% year-over-year

•

Continued success in growing average non-interest bearing deposits, up 3% linked-quarter; 19% year-over-year

•

Strong customer satisfaction: JD Power & Associates ranked Regions the most improved retail bank as well as highest in customer satisfaction among primary mortgage servicing companies

Net interest margin expansion driven by strong low-cost deposit growth as well as enhanced risk-adjusted loan and deposit pricing

•

Net interest margin expanded 11 bps to 2.73%, reflecting continued low-cost deposit growth, especially in non-interest bearing deposits which have increased for four consecutive quarters

•

Third quarter net interest income increased $14 million to $845 million, despite a lower earning asset base resulting from lower cash balances and a decline in loans

•

Loan spreads and deposit pricing continue to improve; asset sensitive balance sheet well positioned for eventual rising rate environment

Solid non-interest income; continued focus on performance and efficiency

•

Non-interest revenues essentially unchanged, excluding prior quarter’s gains related to a trust preferred exchange, Visa shares and other securities sales and leveraged lease terminations

•

Service charges income increased $12 million or 4% to $300 million, benefiting from a higher level of customer transactions and new account growth

•

Brokerage income declined $11 million or 4% to $252 million, driven by lower fees from investment banking and a decline in fixed income capital markets revenue

•

Mortgage income rose $12 million, or 19% linked quarter, primarily the result of favorable mortgage servicing rights and related hedge performance

•

Non-interest expense increased 1% linked quarter, however when excluding the second quarter’s securities impairment charge and FDIC special assessment, and the current quarter’s branch consolidation charges, non-interest expense increased 9% linked quarter

•

A $37 million increase in other real estate owned expense and a $48 million increase in legal and professional expenses are driving the increase in core expenses on a linked quarter basis

•

Salaries and benefits declined $8 million to $578 million, primarily due to headcount reductions, which have declined 6% since 4Q08, and lower brokerage-related incentive costs

Provision for loan losses increased to $1,025 million, $345 million above net charge-offs; Allowance for credit losses increased to 2.90% of loans; gross in-migration of non-performing loans declined versus prior quarter

•

Net charge-offs rose 80 bps to 2.86% of loans in the third quarter; driven by commercial real estate value-related writedowns and problem asset dispositions. Net charge-offs within the home equity portfolio declined versus the prior quarter, reflecting the benefits of Regions’ proactive customer assistance program.

•

Non-performing loans increased $598 million in the third quarter to $3.2 billion; inflows were driven primarily by homebuilder loans and loans secured by income-producing properties, such as multi-family and retail

•

Allowance coverage ratio (ALL/NPL, excluding loans held for sale) at 0.82x as of September 30, 2009, as compared to 0.85x at June 30, 2009

Continued focus on improving the risk profile of the balance sheet

•

Residential homebuilder portfolio exposure declined another $434 million; total exposure down 53% since the beginning of 2008

•

Condominium portfolio continues to decline, down another $64 million to $647 million; less than 1 percent of overall loan portfolio

•

Florida second lien home equity exposure declined $54 million to $3.6 billion; net charge-off rate declined 156 basis points versus the previous quarter to an annualized 6.33%.

Capital position remains strong

•

Tier 1 common ratio of 7.8%

•

Tier 1 capital ratio of 12.1% at September 30, 2009, $6.5 billion above “Well Capitalized” threshold

FINANCIAL SUPPLEMENT TO

THIRD QUARTER 2009 EARNINGS RELEASE

PAGE 2

Regions Financial Corporation and Subsidiaries

Consolidated Balance Sheets

(Unaudited)


*($ amounts in millions)*	9/30/09			6/30/09			3/31/09			12/31/08			9/30/08
Assets:
Cash and due from banks	$	2,101		$	2,363		$	2,429		$	2,643		$	2,986
Interest-bearing deposits in other banks		5,902			2,846			2,288			7,540			30
Federal funds sold and securities purchased under agreements to resell		366			3,221			418			790			542
Trading account assets		1,388			1,109			1,348			1,050			1,268
Securities available for sale		21,030			19,681			20,970			18,850			17,633
Securities held to maturity		39			43			45			47			50
Loans held for sale		1,470			1,932			1,956			1,282			1,054
Loans, net of unearned income		92,754			96,149			95,686			97,419			98,712
Allowance for loan losses		(2,627	)		(2,282	)		(1,861	)		(1,826	)		(1,472	)

Net loans		90,127			93,867			93,825			95,593			97,240
Other interest-earning assets		839			829			849			897			587
Premises and equipment, net		2,694			2,789			2,808			2,786			2,730
Interest receivable		499			501			426			458			512
Goodwill		5,557			5,556			5,551			5,548			11,529
Mortgage servicing rights (MSRs)		216			202			161			161			263
Other identifiable intangible assets		535			568			603			638			675
Other assets		7,223			7,304			8,303			7,965			7,193

Total Assets	$	139,986		$	142,811		$	141,980		$	146,248		$	144,292

Liabilities and Stockholders’ Equity:
Deposits:
Non-interest-bearing	$	21,226		$	20,995		$	19,988		$	18,457		$	18,045
Interest-bearing		73,654			73,731			73,548			72,447			71,176

Total deposits		94,880			94,726			93,536			90,904			89,221
Borrowed funds:
Short-term borrowings:
Federal funds purchased and securities sold under agreements to repurchase		2,633			2,265			2,828			3,143			10,427
Other short-term borrowings		2,653			4,927			6,525			12,679			7,115

Total short-term borrowings		5,286			7,192			9,353			15,822			17,542
Long-term borrowings		18,093			18,238			18,762			19,231			14,168

Total borrowed funds		23,379			25,430			28,115			35,053			31,710
Other liabilities		3,235			3,918			3,512			3,478			3,656

Total Liabilities		121,494			124,074			125,163			129,435			124,587
Stockholders’ equity:
Preferred stock, Series A		3,334			3,325			3,316			3,307			—
Preferred stock, Series B		278			278			—			—			—
Common stock		12			12			7			7			7
Additional paid-in capital		18,754			18,740			16,828			16,815			16,607
Retained earnings (deficit)		(2,618	)		(2,169	)		(1,913	)		(1,869	)		4,445
Treasury stock, at cost		(1,411	)		(1,413	)		(1,415	)		(1,425	)		(1,424	)
Accumulated other comprehensive income (loss), net		143			(36	)		(6	)		(22	)		70

Total Stockholders’ Equity		18,492			18,737			16,817			16,813			19,705

Total Liabilities and Stockholders’ Equity	$	139,986		$	142,811		$	141,980		$	146,248		$	144,292

FINANCIAL SUPPLEMENT TO

THIRD QUARTER 2009 EARNINGS RELEASE

PAGE 3

Regions Financial Corporation and Subsidiaries

Consolidated Statements of Operations (1)

(Unaudited)


	Quarter Ended
*($ amounts in millions, except per share data)*	9/30/09			6/30/09			3/31/09		12/31/08			9/30/08
Interest income on:
Loans, including fees	$	1,047		$	1,073		$	1,098	$	1,328		$	1,318
Securities:
Taxable		232			239			239		212			208
Tax-exempt		6			5			7		9			11

Total securities		238			244			246		221			219
Loans held for sale		12			15			16		8			9
Federal funds sold and securities purchased under agreements to resell		—			1			1		2			5
Trading account assets		10			10			12		11			13
Other interest-earning assets		7			8			6		11			5

Total interest income		1,314			1,351			1,379		1,581			1,569
Interest expense on:
Deposits		301			330			366		408			391
Short-term borrowings		9			16			20		69			102
Long-term borrowings		159			174			184		180			154

Total interest expense		469			520			570		657			647

Net interest income		845			831			809		924			922
Provision for loan losses		1,025			912			425		1,150			417

Net interest income (loss) after provision for loan losses		(180	)		(81	)		384		(226	)		505
Non-interest income:
Service charges on deposit accounts		300			288			269		288			294
Brokerage, investment banking and capital markets		252			263			217		241			241
Mortgage income		76			64			73		34			33
Trust department income		49			48			46		52			66
Securities gains, net		4			108			53		—			—
Other		91			428			408		87			85

Total non-interest income		772			1,199			1,066		702			719
Non-interest expense:
Salaries and employee benefits		578			586			539		562			552
Net occupancy expense		121			112			107		114			110
Furniture and equipment expense		83			78			76		79			88
Impairment (recapture) of MSR’s		—			—			—		99			11
Goodwill impairment		—			—			—		6,000			—
Other-than-temporary impairments (2)		3			69			3		13			9
Other		458			386			333		406			358

Total non-interest expense (3)		1,243			1,231			1,058		7,273			1,128

Income (loss) before income taxes from continuing operations		(651	)		(113	)		392		(6,797	)		96
Income taxes		(274	)		75			315		(579	)		6

Income (loss) from continuing operations		(377	)		(188	)		77		(6,218	)		90
Discontinued operations:
Loss from discontinued operations before income taxes		—			—			—		—			(18	)
Income tax benefit		—			—			—		—			(7	)

Loss from discontinued operations, net of tax		—			—			—		—			(11	)

Net income (loss)	$	(377	)	$	(188	)	$	77	$	(6,218	)	$	79

Income (loss) from continuing operations available to common shareholders	$	(437	)	$	(244	)	$	26	$	(6,244	)	$	90

Net income (loss) available to common shareholders	$	(437	)	$	(244	)	$	26	$	(6,244	)	$	79

Weighted-average shares outstanding–during quarter:
Basic		1,189			876			693		693			696
Diluted		1,189			876			694		693			696
Actual shares outstanding–end of quarter		1,188			1,188			695		691			692
Earnings (loss) per common share (4):
Basic	$	(0.37	)	$	(0.28	)	$	0.04	$	(9.01	)	$	0.11
Diluted	$	(0.37	)	$	(0.28	)	$	0.04	$	(9.01	)	$	0.11
Cash dividends declared per common share	$	0.01		$	0.01		$	0.10	$	0.10		$	0.10
Taxable-equivalent net interest income from continuing operations	$	853		$	840		$	817	$	933		$	931

(1)	Certain amounts in the prior periods have been classified to reflect current period presentation

(2)	Includes $3 million and $260 million of gross charges, net of $0 and $191 million noncredit related portion recognized in other comprehensive income, in 3Q09 and 2Q09, respectively.

(3)	Merger-related charges total $25 million in 3Q08. See page 24 for additional detail.

(4)	Includes preferred stock dividends

FINANCIAL SUPPLEMENT TO

THIRD QUARTER 2009 EARNINGS RELEASE

PAGE 4

Regions Financial Corporation and Subsidiaries

Consolidated Statements of Operations (1)

(Unaudited)


*($ amounts in millions, except per share data)*	Nine Months Ended September 30
	2009			2008
Interest income on:
Loans, including fees	$	3,218		$	4,222
Securities:
Taxable		710			616
Tax-exempt		18			31

Total securities		728			647
Loans held for sale		43			27
Federal funds sold and securities purchased under agreements to resell		2			16
Trading account assets		32			52
Other interest-earning assets		21			18

Total interest income		4,044			4,982
Interest expense on:
Deposits		997			1,316
Short-term borrowings		45			300
Long-term borrowings		517			447

Total interest expense		1,559			2,063

Net interest income		2,485			2,919
Provision for loan losses		2,362			907

Net interest income after provision for loan losses		123			2,012
Non-interest income:
Service charges on deposit accounts		857			860
Brokerage, investment banking and capital markets		732			786
Mortgage income		213			104
Trust department income		143			182
Securities gains, net		165			92
Other		927			347

Total non-interest income		3,037			2,371
Non-interest expense:
Salaries and employee benefits		1,703			1,794
Net occupancy expense		340			328
Furniture and equipment expense		237			255
Recapture of MSR’s		—			(14	)
Other-than-temporary impairments (2)		75			10
Other		1,177			1,146

Total non-interest expense (3)		3,532			3,519

Income (loss) before income taxes from continuing operations		(372	)		864
Income taxes		116			231

Income (loss) from continuing operations		(488	)		633
Discontinued operations:
Loss from discontinued operations before income taxes		—			(18	)
Income tax benefit		—			(7	)

Loss from discontinued operations, net of tax		—			(11	)

Net income (loss)		($488	)	$	622

Income (loss) from continuing operations available to common shareholders		($655	)	$	633

Net income (loss) available to common shareholders		($655	)	$	622

Weighted-average shares outstanding–year-to-date:
Basic		921			696
Diluted		921			696
Actual shares outstanding–end of period		1,188			692
Earnings (loss) per common share (4):
Basic	$	(0.71	)	$	0.89
Diluted	$	(0.71	)	$	0.89
Cash dividends declared per common share	$	0.12		$	0.86
Taxable equivalent net interest income from continuing operations	$	2,510		$	2,947

(1)	Certain amounts in the prior periods have been classified to reflect current period presentation

(2)	Includes $266 million of gross charges, net of $191 million noncredit related portion recognized in other comprehensive income, in 2009.

(3)	Merger-related charges total $201 million for the nine months ended September 30, 2008 .

(4)	Includes preferred stock dividends

FINANCIAL SUPPLEMENT TO

THIRD QUARTER 2009 EARNINGS RELEASE

PAGE 5

Regions Financial Corporation and Subsidiaries

Consolidated Average Daily Balances and Yield/Rate Analysis (1)


	Quarter Ended
	9/30/09							6/30/09							3/31/09							12/31/08							9/30/08
($ amounts in millions; yields on taxable-equivalent basis)	Average Balance			Income/ Expense		Yield/ Rate		Average Balance			Income/ Expense		Yield/ Rate		Average Balance			Income/ Expense		Yield/ Rate		Average Balance			Income/ Expense		Yield/ Rate		Average Balance			Income/ Expense		Yield/ Rate
Assets
Interest-earning assets:
Federal funds sold and securities purchased under agreements to resell	$	597		$	—	0.42	%	$	508		$	1	0.49	%	$	545		$	1	0.80	%	$	608		$	2	1.37	%	$	1,000		$	5	1.96	%
Trading account assets		1,101			10	3.59	%		1,221			11	3.58	%		1,234			13	4.21	%		1,334			12	3.50	%		1,348			14	4.06	%
Securities:
Taxable		19,177			232	4.79	%		19,453			239	4.92	%		19,160			239	5.06	%		17,081			212	4.92	%		16,962			208	4.88	%
Tax-exempt		463			8	6.52	%		562			8	6.30	%		687			11	6.34	%		800			14	7.15	%		767			16	8.61	%
Loans held for sale		1,522			12	3.25	%		1,790			16	3.41	%		1,819			15	3.45	%		823			8	4.17	%		563			9	6.02	%
Loans, net of unearned income (2)		94,354			1,053	4.43	%		95,382			1,077	4.53	%		96,648			1,102	4.62	%		99,134			1,331	5.34	%		98,333			1,321	5.34	%
Other interest-earning assets		6,841			7	0.40	%		9,700			8	0.36	%		5,599			6	0.40	%		5,604			11	0.78	%		582			5	3.37	%

Total interest-earning assets		124,055		$	1,322	4.23	%		128,616		$	1,360	4.24	%		125,692		$	1,387	4.47	%		125,384		$	1,590	5.05	%		119,555		$	1,578	5.25	%
Allowance for loan losses		(2,393	)						(1,917	)						(1,868	)						(1,456	)						(1,491	)
Cash and due from banks		2,113							2,269							2,396							2,499							2,421
Other non-earning assets		16,530							17,119							17,343							21,647							22,756

	$	140,305						$	146,087						$	143,563						$	148,074						$	143,241

Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Savings accounts	$	4,038		$	1	0.13	%	$	4,029		$	1	0.11	%	$	3,804		$	1	0.12	%	$	3,691		$	1	0.12	%	$	3,774		$	1	0.11	%
Interest-bearing transaction accounts		13,934			10	0.27	%		14,277			11	0.30	%		14,909			10	0.27	%		14,393			20	0.55	%		14,831			28	0.77	%
Money market accounts		23,107			35	0.61	%		22,138			43	0.78	%		21,204			67	1.28	%		20,565			93	1.79	%		20,394			81	1.59	%
Time deposits		32,584			255	3.10	%		33,442			275	3.30	%		32,894			288	3.55	%		31,849			293	3.65	%		30,168			273	3.60	%
Other		—			—	—			728			—	0.14	%		530			—	0.07	%		1,262			1	0.42	%		1,733			8	1.71	%

Total interest-bearing deposits		73,663			301	1.62	%		74,614			330	1.78	%		73,341			366	2.02	%		71,760			408	2.26	%		70,900			391	2.20	%
Federal funds purchased and securities sold under agreements to repurchase		2,649			1	0.11	%		3,734			3	0.33	%		3,199			3	0.41	%		4,458			12	1.08	%		9,906			52	2.07	%
Other short-term borrowings		2,721			8	1.26	%		7,427			13	0.71	%		9,023			17	0.73	%		14,260			57	1.59	%		8,014			50	2.49	%
Long-term borrowings		18,250			159	3.45	%		18,829			174	3.70	%		18,958			184	3.95	%		16,069			180	4.47	%		13,364			154	4.58	%

Total interest-bearing liabilities		97,283		$	469	1.91	%		104,604		$	520	2.00	%		104,521		$	570	2.21	%		106,547		$	657	2.45	%		102,184		$	647	2.52	%
Net interest spread						2.32	%						2.24	%						2.26	%						2.60	%						2.73	%

Non-interest-bearing deposits		21,122							20,421							18,896							17,773							17,691
Other liabilities		3,288							3,567							3,436							3,344							3,652
Stockholders’ equity		18,612							17,495							16,710							20,410							19,714

	$	140,305						$	146,087						$	143,563						$	148,074						$	143,241

Net interest income/margin FTE basis				$	853	2.73	%				$	840	2.62	%				$	817	2.64	%				$	933	2.96	%				$	931	3.10	%

(1)	Certain amounts in prior periods have been reclassified to reflect current period presentation

(2)	3Q08 loan income includes a $43.1 million reduction for the impact of a leveraged lease tax settlement. The yield on loans adjusted to exclude the settlement would be 5.52% in 3Q08.

FINANCIAL SUPPLEMENT TO

THIRD QUARTER 2009 EARNINGS RELEASE

PAGE 6

Regions Financial Corporation and Subsidiaries

Consolidated Average Daily Balances and Yield/Rate Analysis (1)


	Nine Months Ended September 30
	2009							2008
*($ amounts in millions; yields on taxable equivalent basis)*	Average Balance			Revenue/ Expense		Yield/ Rate		Average Balance			Revenue/ Expense		Yield/ Rate
Assets
Interest-earning assets:
Federal funds sold and securities purchased under agreements to resell	$	550		$	2	0.57	%	$	955		$	17	2.31	%
Trading account assets		1,185			34	3.80	%		1,520			54	4.75	%
Securities:
Taxable securities		19,263			710	4.92	%		16,835			616	4.89	%
Tax-exempt		570			27	6.38	%		738			47	8.45	%
Loans held for sale		1,709			43	3.37	%		611			27	5.93	%
Loans, net of unearned income		95,453			3,232	4.53	%		97,087			4,231	5.82	%
Other earning assets		7,385			21	0.38	%		620			18	3.89	%

Total interest-earning assets		126,115			4,069	4.31	%		118,366			5,010	5.65	%
Allowance for loan losses		(2,061	)						(1,398	)
Cash and due from banks		2,258							2,530
Other non-earning assets		16,995							23,063

	$	143,307						$	142,561

Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Savings accounts	$	3,958		$	4	0.12	%	$	3,761		$	3	0.12	%
Interest-bearing transaction accounts		14,370			30	0.28	%		15,281			107	0.94	%
Money market accounts		22,157			145	0.88	%		21,276			280	1.76	%
Time deposits		32,972			818	3.32	%		29,892			881	3.94	%
Other		417			—	0.11	%		2,347			45	2.55	%

Total interest-bearing deposits		73,874			997	1.81	%		72,557			1,316	2.42	%
Federal funds purchased and securities sold under agreements to repurchase		3,192			7	0.30	%		8,785			159	2.42	%
Other short-term borrowings		6,368			38	0.80	%		6,839			141	2.76	%
Long-term borrowings		18,676			517	3.70	%		12,650			447	4.72	%

Total interest-bearing liabilities		102,110			1,559	2.04	%		100,831			2,063	2.73	%
Net interest spread						2.27	%						2.92	%

Non-interest bearing deposits		20,154							17,702
Other liabilities		3,430							4,248
Stockholders’ equity		17,613							19,780

	$	143,307						$	142,561

Net interest income/margin FTE basis				$	2,510	2.66	%				$	2,947	3.33	%

(1)	Certain amounts in prior periods have been reclassified to reflect current period presentation

FINANCIAL SUPPLEMENT TO

THIRD QUARTER 2009 EARNINGS RELEASE

PAGE 7

Regions Financial Corporation and Subsidiaries

Selected Ratios


	As of and for Quarter Ended
	9/30/09			6/30/09			3/31/09			12/31/08			9/30/08
Return on average assets*		(1.24	%)		(0.67	%)		0.07	%		NM			0.22	%
Return on average common equity*		(11.55	%)		(6.96	%)		0.77	%		NM			1.60	%
Return on average tangible common equity* (non-GAAP)		(19.48	%)		(12.34	%)		1.43	%		NM			4.20	%
Common equity per share	$	12.53		$	12.74		$	19.43		$	19.53		$	28.48
Tangible common book value per share (non-GAAP)	$	7.40		$	7.58		$	10.57		$	10.59		$	10.84
Stockholders’ equity to total assets		13.21	%		13.12	%		11.84	%		11.50	%		13.66	%
Tangible common stockholders’ equity to tangible assets (non-GAAP)		6.56	%		6.59	%		5.41	%		5.23	%		5.69	%
Tier 1 Common risk-based ratio (non-GAAP) (1)		7.8	%		8.1	%		6.5	%		6.6	%		6.5	%
Tier 1 Capital (1)		12.1	%		12.2	%		10.4	%		10.4	%		7.5	%
Total Risk-Based Capital (1)		16.2	%		16.2	%		14.6	%		14.6	%		11.7	%
Allowance for credit losses as a percentage of loans, net of unearned income (2)		2.90	%		2.43	%		2.02	%		1.95	%		1.57	%
Allowance for loan losses as a percentage of loans, net of unearned income		2.83	%		2.37	%		1.94	%		1.87	%		1.49	%
Allowance for loan losses to non-performing loans		0.82	x		0.87	x		1.13	x		1.74	x		1.02	x
Net interest margin (FTE) (3)		2.73	%		2.62	%		2.64	%		2.96	%		3.10	%
Loans, net of unearned income, to total deposits		97.76	%		101.50	%		102.30	%		107.17	%		110.64	%
Net charge-offs as a percentage of average loans*		2.86	%		2.06	%		1.64	%		3.19	%		1.68	%
Non-performing assets (excluding loans 90 days past due) as a percentage of loans and other real estate		4.40	%		3.55	%		2.43	%		1.76	%		1.79	%
Non-performing assets (excluding loans 90 days past due) as a percentage of loans and other real estate (4)		3.99	%		3.17	%		2.02	%		1.33	%		1.66	%
Non-performing assets (including loans 90 days past due) as a percentage of loans and other real estate		5.08	%		4.18	%		3.24	%		2.33	%		2.25	%
Non-performing assets (including loans 90 days past due) as a percentage of loans and other real estate (4)		4.68	%		3.80	%		2.83	%		1.89	%		2.12	%

*	Annualized

(1)	Current quarter Tier 1 Common, Tier 1 and Total Risk-based Capital ratios are estimated

(2)	The allowance for credit losses reflects the allowance related to both loans on the balance sheet and exposure related to unfunded commitments and standby letters of credit

(3)	3Q08 lower by 14 bps resulting from the impact of a leveraged lease tax settlement in the quarter

(4)	Excludes loans held for sale

FINANCIAL SUPPLEMENT TO

THIRD QUARTER 2009 EARNINGS RELEASE

PAGE 8

Loans (1)

Loan Portfolio - Period End Data


*($ amounts in millions)*	9/30/09		6/30/09		3/31/09		12/31/08		9/30/08		9/30/09 vs. 6/30/09					9/30/09 vs. 9/30/08
Commercial and industrial	$	21,925	$	23,619	$	22,585	$	23,596	$	23,511	$	(1,694	)	-7.2	%	$	(1,586	)	-6.7	%
Commercial real estate - non-owner-occupied		16,190		16,419		15,969		14,486		14,151		(229	)	-1.4	%		2,039		14.4	%
Commercial real estate - owner-occupied		12,103		12,282		11,926		11,722		11,569		(179	)	-1.5	%		534		4.6	%
Construction - non-owner-occupied		6,616		7,163		7,611		9,029		9,810		(547	)	-7.6	%		(3,194	)	-32.6	%
Construction - owner-occupied		875		1,060		1,328		1,605		1,810		(185	)	-17.5	%		(935	)	-51.7	%
Residential first mortgage		15,513		15,564		15,678		15,839		16,191		(51	)	-0.3	%		(678	)	-4.2	%
Home equity		15,630		15,796		16,023		16,130		15,849		(166	)	-1.1	%		(219	)	-1.4	%
Indirect		2,755		3,099		3,464		3,854		4,211		(344	)	-11.1	%		(1,456	)	-34.6	%
Other consumer		1,147		1,147		1,102		1,158		1,610		—		0.0	%		(463	)	-28.8	%

	$	92,754	$	96,149	$	95,686	$	97,419	$	98,712	$	(3,395	)	-3.5	%	$	(5,958	)	-6.0	%


Loan Portfolio - Average Balances

*($ amounts in millions)*	3Q09		2Q09		1Q09		4Q08		3Q08		3Q09 vs. 2Q09					3Q09 vs. 3Q08
Commercial and industrial	$	22,443	$	22,707	$	23,095	$	24,122	$	22,916	$	(264	)	-1.2	%	$	(473	)	-2.1	%
Commercial real estate - non-owner-occupied		16,470		16,081		15,215		14,313		13,836		389		2.4	%		2,634		19.0	%
Commercial real estate - owner-occupied		12,188		11,983		11,773		11,574		11,371		205		1.7	%		817		7.2	%
Construction - non-owner-occupied		7,010		7,474		8,420		9,802		9,837		(464	)	-6.2	%		(2,827	)	-28.7	%
Construction - owner-occupied		944		1,198		1,524		1,782		2,205		(254	)	-21.2	%		(1,261	)	-57.2	%
Residential first mortgage		15,508		15,593		15,708		16,005		16,304		(85	)	-0.5	%		(796	)	-4.9	%
Home equity		15,714		15,940		16,115		16,036		15,659		(226	)	-1.4	%		55		0.4	%
Indirect		2,923		3,276		3,660		4,043		4,214		(353	)	-10.8	%		(1,291	)	-30.6	%
Other consumer		1,154		1,130		1,138		1,457		1,991		24		2.1	%		(837	)	-42.0	%

	$	94,354	$	95,382	$	96,648	$	99,134	$	98,333	$	(1,028	)	-1.1	%	$	(3,979	)	-4.0	%

(1)	Certain amounts in the prior periods have been reclassified to reflect current period presentation

FINANCIAL SUPPLEMENT TO

THIRD QUARTER 2009 EARNINGS RELEASE

PAGE 9

Deposits (1)

Deposit Portfolio - Period End Data


											9/30/09					9/30/09
*($ amounts in millions)*	9/30/09		6/30/09		3/31/09		12/31/08		9/30/08		vs. 6/30/09					vs. 9/30/08
Customer Deposits
Interest-free deposits	$	21,226	$	20,995	$	19,988	$	18,457	$	18,045	$	231		1.1	%	$	3,181		17.6	%
Interest-bearing checking		13,688		14,140		14,800		15,022		14,616		(452	)	-3.2	%		(928	)	-6.3	%
Savings		4,025		4,033		3,970		3,663		3,709		(8	)	-0.2	%		316		8.5	%
Money market - domestic		22,327		21,571		19,969		19,471		17,098		756		3.5	%		5,229		30.6	%
Money market - foreign		941		1,075		1,357		1,812		2,454		(134	)	-12.5	%		(1,513	)	-61.7	%

Low-cost deposits		62,207		61,814		60,084		58,425		55,922		393		0.6	%		6,285		11.2	%
Time deposits		32,582		32,724		33,379		32,369		29,288		(142	)	-0.4	%		3,294		11.2	%

Total customer deposits		94,789		94,538		93,463		90,794		85,210		251		0.3	%		9,579		11.2	%

Corporate Treasury Deposits
Time deposits		91		188		73		110		1,123		(97	)	-51.6	%		(1,032	)	-91.9	%
Other		—		—		—		—		2,888		—		NM			(2,888	)	-100.0	%

Total corporate treasury deposits		91		188		73		110		4,011		(97	)	-51.6	%		(3,920	)	-97.7	%

Total Deposits	$	94,880	$	94,726	$	93,536	$	90,904	$	89,221	$	154		0.2	%	$	5,659		6.3	%


Deposit Portfolio - Average Balances
											3Q09					3Q09
*($ amounts in millions)*	3Q09		2Q09		1Q09		4Q08		3Q08		vs. 2Q09					vs. 3Q08
Customer Deposits
Interest-free deposits	$	21,122	$	20,421	$	18,896	$	17,773	$	17,691	$	701		3.4	%	$	3,431		19.4	%
Interest-bearing checking		13,934		14,277		14,909		14,393		14,831		(343	)	-2.4	%		(897	)	-6.0	%
Savings		4,038		4,029		3,804		3,691		3,774		9		0.2	%		264		7.0	%
Money market - domestic		22,103		20,962		19,670		18,432		17,534		1,141		5.4	%		4,569		26.1	%
Money market - foreign		1,004		1,176		1,534		2,133		2,860		(172	)	-14.6	%		(1,856	)	-64.9	%

Low-cost deposits		62,201		60,865		58,813		56,422		56,690		1,336		2.2	%		5,511		9.7	%
Time deposits		32,481		33,221		32,814		31,442		27,770		(740	)	-2.2	%		4,711		17.0	%

Total customer deposits		94,682		94,086		91,627		87,864		84,460		596		0.6	%		10,222		12.1	%

Corporate Treasury Deposits
Time deposits		103		221		80		407		2,398		(118	)	-53.4	%		(2,295	)	-95.7	%
Other		—		728		530		1,262		1,733		(728	)	-100.0	%		(1,733	)	-100.0	%

Total corporate treasury deposits		103		949		610		1,669		4,131		(846	)	-89.1	%		(4,028	)	-97.5	%

Total Deposits	$	94,785	$	95,035	$	92,237	$	89,533	$	88,591	$	(250	)	-0.3	%	$	6,194		7.0	%

(1)	Certain amounts in the prior periods have been reclassified to reflect current period presentation

FINANCIAL SUPPLEMENT TO

THIRD QUARTER 2009 EARNINGS RELEASE

PAGE 10

Pre-Tax Pre-Provision Net Revenue (“PPNR”) (2)


															3Q09					3Q09
*($ amounts in millions)*	3Q09			2Q09			1Q09			4Q08			3Q08		vs. 2Q09					vs. 3Q08
Net Interest Income	$	845		$	831		$	809		$	924		$	922		14		1.7	%	$	(77	)	-8.4	%
Non-Interest Income		772			1,199			1,066			702			719		(427	)	-35.6	%		53		7.4	%

Total Revenue		1,617			2,030			1,875			1,626			1,641		(413	)	-20.3	%		(24	)	-1.5	%
Non-Interest Expense		1,243			1,231			1,058			7,273			1,128		12		1.0	%		115		10.2	%

Pre-tax Pre-provision Net Revenue	$	374		$	799		$	817		$	(5,647	)	$	513		(425	)	-53.2	%		(139	)	-27.1	%
Adjustments:
Securities gains, net		(4	)		(108	)		(53	)		—			—		104		-96.3	%		(4	)	NM
Gain on sale of Visa shares		—			(80	)		—			—			—		80		NM			—		NM
Leveraged lease termination gains		(4	)		(189	)		(323	)		—			—		185		-97.9	%		(4	)	NM
Gain on extinguishment of debt		—			(61	)		—			—			—		61		NM			—		NM
Impairment (recapture) of MSR’s		—			—			—			99			11		—		NM			(11	)	NM
FDIC special assessment		—			64			—			—			—		(64	)	NM			—		NM
Securities impairment, net		3			69			3			13			9		(66	)	NM			(6	)	NM
Branch consolidation costs (1)		41			—			—			—			—		41		NM			41		NM
Merger-related charges		—			—			—			—			25		—		NM			(25	)	NM
Goodwill impairment		—			—			—			6,000			—		—		NM			—		NM

Total adjustments		36			(305	)		(373	)		6,112			45		341		-111.8	%		(9	)	NM

Adjusted PPNR	$	410		$	494		$	444		$	465		$	558	$	(84	)	-17.0	%	$	(148	)	-26.5	%

(1)	Includes $9 million of net occupancy expense, $7 million of furniture and equipment expense and $25 million in valuation charges.

(2)	Certain amounts in the prior periods have been reclassified to reflect current period presentation

FINANCIAL SUPPLEMENT TO

THIRD QUARTER 2009 EARNINGS RELEASE

PAGE 11

Non-Interest Income and Expense from Continuing Operations (1)

Non-Interest Income and Expense

Non-Interest Income


											3Q09					3Q09
*($ amounts in millions)*	3Q09		2Q09		1Q09		4Q08		3Q08		vs. 2Q09					vs. 3Q08
Service charges on deposit accounts	$	300	$	288	$	269	$	288	$	294	$	12		4.2	%	$	6		2.0	%
Brokerage, investment banking and capital markets		252		263		217		241		241		(11	)	-4.2	%		11		4.6	%
Mortgage income		76		64		73		34		33		12		18.8	%		43		130.3	%
Trust department income		49		48		46		52		66		1		2.1	%		(17	)	-25.8	%
Securities gains, net		4		108		53		—		—		(104	)	-96.3	%		4		NM
Insurance income		25		27		28		26		26		(2	)	-7.4	%		(1	)	-3.8	%
Leveraged lease termination gains		4		189		323		—		—		(185	)	-97.9	%		4		NM
Visa shares sale gain		—		80		—		—		—		(80	)	NM			—		NM
Gain on early extinguishment of debt		—		61		—		—		—		(61	)	NM			—		NM
Other		62		71		57		61		59		(9	)	-12.7	%		3		5.1	%

Total non-interest income	$	772	$	1,199	$	1,066	$	702	$	719	$	(427	)	-35.6	%	$	53		7.4	%


Non-Interest Expense (2)
											3Q09					3Q09
*($ amounts in millions)*	3Q09		2Q09		1Q09		4Q08		3Q08		vs. 2Q09					vs. 3Q08
Salaries and employee benefits	$	578	$	586	$	539	$	562	$	527	$	(8	)	-1.4	%	$	51		9.7	%
Net occupancy expense		121		112		107		114		110		9		8.0	%		11		10.0	%
Furniture and equipment expense		83		78		76		79		88		5		6.4	%		(5	)	-5.7	%
Impairment (recapture) of MSR’s		—		—		—		99		11		—		NM			(11	)	NM
Professional fees		98		50		53		74		52		48		96.0	%		46		88.5	%
Marketing expense		20		20		17		21		23		—		0.0	%		(3	)	-13.0	%
Amortization of core deposit intangible		30		30		31		32		33		—		0.0	%		(3	)	-9.1	%
Amortization of MSR’s		—		—		—		16		13		—		NM			(13	)	NM
Other real estate owned expense		61		24		26		32		44		37		154.2	%		17		38.6	%
Other-than-temporary impairments, net		3		69		3		13		9		(66	)	-95.7	%		(6	)	NM
FDIC premiums - special assessment		—		64		—		—		—		(64	)	NM			—		NM
FDIC premiums		56		43		10		6		4		13		30.2	%		52		NM
Valuation charges associated with branch consolidations		25		—		—		—		—		25		NM			25		NM
Other		168		155		196		225		189		13		8.4	%		(21	)	-11.1	%

Total non-interest expense, excluding merger and goodwill impairment charges		1,243		1,231		1,058		1,273		1,103		12		1.0	%		140		12.7	%
Merger-related charges		—		—		—		—		25		—		NM			(25	)	-100.0	%
Goodwill impairment charge		—		—		—		6,000		—		—		NM			—		NM

Total non-interest expense	$	1,243	$	1,231	$	1,058	$	7,273	$	1,128	$	12		1.0	%	$	115		10.2	%

(1)	Certain amounts in prior periods have been reclassified to reflect current period presentation

(2)	Individual expense categories are presented excluding merger-related charges and goodwill impairment, which are presented in separate line items in the above table

•

Non-interest revenues essentially unchanged, excluding prior quarter’s gains related to a trust preferred exchange, Visa shares and other securities sales and leveraged lease terminations

•

Service charges increased $12 million linked quarter, largely reflecting higher level of customer transactions and new account growth

•

Brokerage, investment banking and capital markets income declined $11 million or 4% linked quarter, primarily driven by lower fees from investment banking and fixed income capital markets

•

Mortgage income remained strong, increasing $12 million, or 19% linked quarter, benefiting from MSR and related hedge improvement

•

2Q09 reflects both the sale of approximately $1.4 billion of agency debentures ($108 million gain) and the sale of Visa shares ($80 million gain). The proceeds from the sale of the agency debentures were reinvested in U.S. government agency mortgage-backed securities classified as available for sale, as part of Regions’ asset/liability management strategy.

•

1Q09 securities gains reflect sale of approximately $656 million of U.S. Treasury securities with the proceeds reinvested in U.S. government agency mortgage-backed securities classified as available for sale, as part of Regions’ asset/liability management strategy

•

Leveraged lease termination gains reflect revenue recorded as a result of Regions unwinding certain leveraged lease transactions. These amounts totaled $4 million in 3Q09, $189 million in 2Q09 and $323 million in 1Q09; however these amounts were offset by $4 million, $196 million and $315 million in increased tax expense, respectively, resulting in a nominal impact to net income.

•

Salaries and employee benefits declined $8 million linked quarter, primarily due to headcount reductions (declined 1,789 since 12/31/08), and lower brokerage-related incentive costs

•

Professional fees increased $48 million linked quarter reflecting higher legal costs.

•

Other real estate owned expense rose $37 million due to increasing property valuation adjustments and higher levels of foreclosed properties.

•

Current quarter’s $41 million branch consolidation charge includes $9 million of net occupancy expense, $7 million of furniture and equipment expense and $25 million in valuation charges.

•

2Q09 non-interest expense was negatively impacted by higher FDIC insurance expenses, including a $64 million special assessment, and $69 million of securities valuation charges

FINANCIAL SUPPLEMENT TO

THIRD QUARTER 2009 EARNINGS RELEASE

PAGE 12

Morgan Keegan

Summary Income Statement (1)


											3Q09					3Q09
*($ amounts in millions)*	3Q09		2Q09		1Q09		4Q08		3Q08		vs. 2Q09					vs. 3Q08
Revenues:
Commissions	$	53	$	48	$	49	$	56	$	61	$	5		10.4	%	$	(8	)	-13.1	%
Principal transactions		116		122		94		98		46		(6	)	-4.9	%		70		152.2	%
Investment banking		50		56		33		43		41		(6	)	-10.7	%		9		22.0	%
Interest		17		19		22		29		37		(2	)	-10.5	%		(20	)	-54.1	%
Trust fees and services		47		44		41		45		61		3		6.8	%		(14	)	-23.0	%
Investment advisory		44		32		29		50		49		12		37.5	%		(5	)	-9.9	%
Other		6		16		7		13		8		(10	)	-62.5	%		(2	)	-25.0	%

Total revenues		333		337		275		334		303		(4	)	-1.2	%		30		10.0	%
Expenses:
Interest expense		3		5		6		14		20		(2	)	-40.0	%		(17	)	-85.0	%
Non-interest expense		284		285		248		277		234		(1	)	-0.4	%		50		21.4	%

Total expenses		287		290		254		291		254		(3	)	-1.0	%		33		13.0	%

Income before income taxes		46		47		21		43		49		(1	)	-2.1	%		(3	)	-5.5	%
Income taxes		17		17		8		15		18		—		0.0	%		(1	)	-5.6	%

Net income	$	29	$	30	$	13	$	28	$	31	$	(1	)	-3.3	%	$	(2	)	-6.5	%

Breakout of Revenue by Division


*($ amounts in millions)*	Private Client			Fixed- Income Capital Markets			Equity Capital Markets			Regions MK Trust			Asset Management			Interest & Other
Three months ended September 30, 2009
$ amount of revenue	$	83		$	108		$	22		$	51		$	45		$	24
% of gross revenue		24.9	%		32.5	%		6.6	%		15.3	%		13.5	%		7.2	%
Three months ended June 30, 2009
$ amount of revenue	$	78		$	120		$	26		$	49		$	43		$	21
% of gross revenue		23.2	%		35.4	%		7.6	%		14.5	%		12.7	%		6.4	%
Nine months ended September 30, 2009
$ amount of revenue	$	235		$	333		$	60		$	148		$	119		$	50
% of gross revenue		24.9	%		35.2	%		6.3	%		15.7	%		12.6	%		5.3	%
Nine months ended September 30, 2008
$ amount of revenue	$	258		$	260		$	105		$	177		$	131		$	75
% of gross revenue		25.6	%		25.8	%		10.4	%		17.6	%		13.0	%		7.6	%

(1)	Certain amounts in the prior periods have been reclassified to reflect current period presentation

•

Fixed-Income Capital Markets revenue, while down versus prior quarter, remained solid, driven by institutional customers’ demand for government, mortgage-backed and municipal securities

•

Private Client revenue increased 6% versus the previous quarter, reflecting incremental improvements in the equity markets as well as the addition of new financial advisors

•

Trust and Asset Management revenues improved as a result of strong equity markets, driving customer and trust assets up by 6% and 4%, respectively

•

New accounts openings continue to rise with the addition of 16,200 in the current quarter, bringing year-to-date gross new account additions to 64,500

FINANCIAL SUPPLEMENT TO

THIRD QUARTER 2009 EARNINGS RELEASE

PAGE 13

Credit Quality (1)

Credit Quality


	As of and for Quarter Ended
*($ in millions)*	9/30/09			6/30/09			3/31/09			12/31/08			9/30/08
Allowance for credit losses (ACL)	$	2,690		$	2,335		$	1,935		$	1,900		$	1,546
Provision for loan losses		1,025			912			425			1,150			417
Provision for unfunded credit losses		10			(21	)		—			(1	)		9
Net loans charged-off:*
Commercial and industrial		137			84			58			73			51
Commercial real estate - non-owner-occupied		196			90			87			245			50
Commercial real estate - owner-occupied		17			15			12			32			9
Construction - non-owner-occupied		148			111			66			301			194
Construction - owner-occupied		2			3			4			4			5
Residential first mortgage		57			51			39			41			18
Home equity		94			113			95			69			63
Indirect		10			11			16			15			10
Other consumer		19			13			13			16			16

Total	$	680		$	491		$	390		$	796		$	416

Net loan charge-offs as a % of average loans, annualized *
Commercial and industrial		2.43	%		1.49	%		1.02	%		1.20	%		0.89	%
Commercial real estate - non-owner-occupied		4.74	%		2.23	%		2.30	%		6.80	%		1.45	%
Commercial real estate - owner-occupied		0.55	%		0.51	%		0.42	%		1.10	%		0.31	%
Construction - non-owner-occupied		8.40	%		5.94	%		3.18	%		12.20	%		7.83	%
Construction - owner-occupied		0.88	%		1.00	%		1.06	%		0.89	%		0.90	%
Residential first mortgage		1.45	%		1.31	%		1.02	%		1.05	%		0.45	%
Home equity		2.37	%		2.85	%		2.38	%		1.72	%		1.59	%
Indirect		1.46	%		1.31	%		1.74	%		1.43	%		0.96	%
Other consumer		6.21	%		4.78	%		4.70	%		4.38	%		3.21	%

Total		2.86	%		2.06	%		1.64	%		3.19	%		1.68	%

Non-accrual loans	$	3,216		$	2,618		$	1,641		$	1,052		$	1,441
Foreclosed properties		503			439			294			243			201

Non-performing assets, excluding loans held for sale	$	3,719		$	3,057		$	1,935		$	1,295		$	1,642
Non-performing loans held for sale		380			371			393			423			129

Non-performing assets (NPAs)	$	4,099		$	3,428		$	2,328		$	1,718		$	1,771

Loans past due > 90 days*	$	643		$	613		$	782		$	554		$	457
Restructured loans not included in categories above	$	1,416		$	1,178		$	737		$	455		$	139
Credit Ratios:
ACL/Loans, net		2.90	%		2.43	%		2.02	%		1.95	%		1.57	%
ALL/Loans, net		2.83	%		2.37	%		1.94	%		1.87	%		1.49	%
NPAs (ex. 90+ past due)/Loans and foreclosed properties		4.40	%		3.55	%		2.43	%		1.76	%		1.79	%
NPAs (ex. 90+ past due)/Loans and foreclosed properties - excludes loans held for sale		3.99	%		3.17	%		2.02	%		1.33	%		1.66	%
NPAs (inc. 90+ past due)/Loans and foreclosed properties		5.08	%		4.18	%		3.24	%		2.33	%		2.25	%
NPAs (inc. 90+ past due)/Loans and foreclosed properties - excludes loans held for sale		4.68	%		3.80	%		2.83	%		1.89	%		2.12	%

*	See pages 14-17 for loan portfolio (risk view) breakout

Allowance for Credit Losses


*($ amounts in millions)*	Nine Months Ended September 30
*($ amounts in millions)*	2009			2008
Balance at beginning of year	$	1,900		$	1,379
Net loans charged-off		(1,561	)		(751	)
Allowance allocated to sold loans		—			(5	)
Provision for loan losses		2,362			907
Provision for unfunded credit commitments		(11	)		16

Balance at end of period	$	2,690		$	1,546

Components:
Allowance for loan losses	$	2,627		$	1,472
Reserve for unfunded credit commitments		63			74

Allowance for credit losses	$	2,690		$	1,546

(1)	Certain amounts in prior periods have been reclassified to reflect current period presentation

FINANCIAL SUPPLEMENT TO

THIRD QUARTER 2009 EARNINGS RELEASE

PAGE 14

Loan Portfolio - Risk View

Total Loan Portfolio


*($ in millions)*	Ending Balance										% of Total Loans
*($ in millions)*	3Q09		2Q09		1Q09		4Q08		3Q08		3Q09		2Q09		1Q09		4Q08		3Q08
Commercial
Commercial and Industrial/Leases	$	18,442	$	20,003	$	18,853	$	19,581	$	19,221	20	%	21	%	20	%	20	%	19	%
Commercial Real Estate - Owner-Occupied Mortgages		5,461		5,573		5,147		4,780		4,646	6	%	6	%	5	%	5	%	5	%

Total Commercial		23,903		25,576		24,000		24,361		23,867	26	%	27	%	25	%	25	%	24	%
Commercial Real Estate
CRE - Non-Owner-Occupied Mortgages		13,030		13,034		12,425		10,732		10,306	14	%	14	%	13	%	11	%	11	%
Non-Owner Occupied Construction		6,472		6,961		7,316		8,624		9,325	7	%	7	%	8	%	9	%	10	%
Owner Occupied Construction		649		807		1,023		1,235		1,353	1	%	1	%	1	%	1	%	1	%

Construction		7,121		7,768		8,339		9,859		10,678	8	%	8	%	9	%	10	%	11	%

Total Commercial Real Estate		20,151		20,802		20,765		20,591		20,984	22	%	22	%	22	%	21	%	22	%
Business and Community Banking
Commercial and Industrial		3,483		3,616		3,732		4,015		4,290	4	%	4	%	4	%	4	%	4	%
Commercial Real Estate - Owner-Occupied Mortgages		6,642		6,709		6,779		6,942		6,923	7	%	7	%	7	%	7	%	7	%
CRE - Non-Owner-Occupied Mortgages		3,160		3,385		3,543		3,754		3,845	3	%	4	%	4	%	4	%	4	%
Non-Owner Occupied Construction		144		202		295		405		485	0	%	0	%	0	%	0	%	0	%
Owner Occupied Construction		225		253		305		370		457	0	%	0	%	0	%	0	%	0	%

Construction		369		455		600		775		942	0	%	0	%	1	%	1	%	1	%

Total Business and Community Banking		13,654		14,165		14,654		15,486		16,000	14	%	15	%	15	%	16	%	16	%
Residential First Mortgage
Alt-A		2,284		2,359		2,451		2,549		2,615	3	%	2	%	2	%	2	%	2	%
Residential First Mortgage		13,229		13,205		13,227		13,290		13,576	14	%	14	%	14	%	14	%	14	%

Total Residential First Mortgage		15,513		15,564		15,678		15,839		16,191	17	%	16	%	16	%	16	%	16	%
Consumer
Home Equity Lending		15,630		15,796		16,023		16,130		15,849	17	%	16	%	17	%	17	%	16	%
Indirect Lending		2,755		3,099		3,464		3,854		4,211	3	%	3	%	4	%	4	%	4	%
Direct Lending		797		786		783		826		873	1	%	1	%	1	%	1	%	1	%
Other Consumer		351		361		319		332		737	0	%	0	%	0	%	0	%	1	%

Total Other Consumer		19,533		20,042		20,590		21,142		21,670	21	%	20	%	22	%	22	%	22	%

Total Loans	$	92,754	$	96,149	$	95,686	$	97,419	$	98,712	100	%	100	%	100	%	100	%	100	%

FINANCIAL SUPPLEMENT TO

THIRD QUARTER 2009 EARNINGS RELEASE

PAGE 15

Loan Portfolio - Risk View

Net Charge-offs


*($ in millions)*	Net Charge-offs (1)										*% of Loans (1)**
*($ in millions)*	3Q09		2Q09		1Q09		4Q08		3Q08		3Q09		2Q09		1Q09		4Q08		3Q08
Commercial
Commercial and Industrial/Leases	$	87	$	46	$	27	$	43	$	28	1.83	%	0.97	%	0.57	%	0.86	%	0.61	%
Commercial Real Estate - Owner-Occupied Mortgages		15		14		10		26		8	1.08	%	1.06	%	0.86	%	2.21	%	0.72	%

Total Commercial		102		60		37		69		36	1.66	%	0.99	%	0.63	%	1.11	%	0.63	%
Commercial Real Estate
CRE - Non-Owner-Occupied Mortgages		193		88		83		241		49	5.81	%	2.80	%	2.91	%	9.14	%	2.11	%
Non-Owner Occupied Construction		147		110		66		300		189	8.57	%	6.08	%	3.30	%	12.77	%	7.52	%
Owner Occupied Construction		2		3		3		4		5	1.10	%	1.32	%	1.08	%	1.08	%	1.06	%

Construction		149		113		69		304		194	7.88	%	5.54	%	3.02	%	11.30	%	6.50	%

Total Commercial Real Estate		342		201		152		545		243	6.56	%	3.88	%	2.96	%	10.23	%	4.58	%
Business and Community Banking
Commercial and Industrial		49		38		31		30		23	5.45	%	4.16	%	3.23	%	2.84	%	2.12	%
Commercial Real Estate - Owner-Occupied Mortgages		2		1		2		6		1	0.11	%	0.08	%	0.11	%	0.36	%	0.06	%
CRE - Non-Owner-Occupied Mortgages		3		2		4		4		1	0.40	%	0.15	%	0.39	%	0.35	%	0.15	%
Non-Owner Occupied Construction		1		1		—		1		5	1.48	%	1.13	%	0.45	%	0.67	%	2.76	%
Owner Occupied Construction		—		—		1		—		—	0.22	%	0.55	%	0.99	%	0.34	%	0.10	%

Construction		1		1		1		1		5	0.77	%	0.82	%	0.72	%	0.51	%	1.38	%

Total Business and Community Banking		55		42		38		41		30	1.56	%	1.16	%	1.01	%	1.02	%	0.75	%
Residential First Mortgage
Alt-A		19		17		13		6		4	3.27	%	2.91	%	2.20	%	1.03	%	0.60	%
Residential First Mortgage		38		34		26		35		14	1.13	%	1.02	%	0.80	%	1.05	%	0.42	%

Total Residential First Mortgage		57		51		39		41		18	1.45	%	1.31	%	1.02	%	1.05	%	0.45	%
Consumer
Home Equity Lending		94		113		95		69		63	2.37	%	2.85	%	2.38	%	1.72	%	1.59	%
Indirect Lending		11		11		16		15		10	1.46	%	1.31	%	1.74	%	1.43	%	0.96	%
Direct Lending		5		3		2		3		3	2.47	%	1.59	%	1.14	%	1.61	%	1.33	%
Other Consumer		14		10		11		13		13	15.61	%	12.00	%	13.43	%	8.24	%	4.76	%

Total Other Consumer		124		137		124		100		89	2.49	%	2.71	%	2.40	%	1.85	%	1.62	%

Total Loans	$	680	$	491	$	390	$	796	$	416	2.86	%	2.06	%	1.64	%	3.19	%	1.68	%

*	Percentage of related loan category outstandings

(1)	Information prior to 4Q08 does not reflect reclassifications between various Commercial Real Estate and Business and Community Banking categories

FINANCIAL SUPPLEMENT TO

THIRD QUARTER 2009 EARNINGS RELEASE

PAGE 16

Loan Portfolio - Risk View

90+ Days Past Due Loans


	90+ Past Due (1)										*% of Loans (1)**
*($ in millions)*	3Q09		2Q09		1Q09		4Q08		3Q08		3Q09		2Q09		1Q09		4Q08		3Q08
Commercial
Commercial and Industrial/Leases	$	6	$	5	$	28	$	2	$	2	0.03	%	0.02	%	0.15	%	0.01	%	0.01	%
Commercial Real Estate - Owner-Occupied		4		7		8		7		—	0.08	%	0.12	%	0.16	%	0.15	%	0.00	%

Total Commercial		10		12		36		9		2	0.04	%	0.05	%	0.15	%	0.04	%	0.01	%
Commercial Real Estate
CRE - Non-Owner-Occupied Mortgages		25		36		62		7		8	0.19	%	0.27	%	0.50	%	0.07	%	0.08	%
Non-Owner Occupied Construction		11		12		29		11		—	0.16	%	0.17	%	0.40	%	0.13	%	0.00	%
Owner Occupied Construction		—		3		3		2		4	0.00	%	0.38	%	0.29	%	0.16	%	0.30	%

Construction		11		15		32		13		4	0.15	%	0.19	%	0.38	%	0.13	%	0.04	%

Total Commercial Real Estate		36		51		94		20		12	0.18	%	0.24	%	0.45	%	0.10	%	0.06	%
Business and Community Banking
Commercial and Industrial		7		9		14		12		8	0.20	%	0.25	%	0.38	%	0.30	%	0.19	%
Commercial Real Estate - Owner-Occupied Mortgages		8		11		15		6		5	0.12	%	0.16	%	0.22	%	0.09	%	0.07	%
CRE - Non-Owner-Occupied Mortgages		4		10		6		5		3	0.14	%	0.29	%	0.18	%	0.13	%	0.08	%
Non-Owner Occupied Construction		0		1		0		1		1	0.12	%	0.49	%	0.13	%	0.25	%	0.21	%
Owner Occupied Construction		1		—		1		—		3	0.38	%	0.00	%	0.21	%	0.00	%	0.66	%

Construction		1		1		1		1		4	0.28	%	0.22	%	0.17	%	0.13	%	0.42	%

Total Business and Community Banking		20		30		36		24		20	0.15	%	0.21	%	0.25	%	0.15	%	0.13	%
Residential First Mortgage
Alt-A		108		128		129		109		96	4.73	%	5.43	%	5.26	%	4.28	%	3.67	%
Residential First Mortgage		237		232		230		163		144	1.79	%	1.76	%	1.74	%	1.23	%	1.06	%

Total Residential First Mortgage		345		360		359		272		240	2.23	%	2.32	%	2.29	%	1.72	%	1.48	%
Consumer
Home Equity Lending		222		148		244		214		173	1.42	%	0.94	%	1.52	%	1.33	%	1.09	%
Indirect Lending		4		5		6		8		4	0.16	%	0.15	%	0.16	%	0.21	%	0.09	%
Direct Lending		2		2		3		3		3	0.22	%	0.21	%	0.38	%	0.36	%	0.34	%
Other Consumer		4		5		4		4		3	1.07	%	1.33	%	1.13	%	1.20	%	0.41	%

Total Other Consumer		232		160		257		229		183	1.19	%	0.80	%	1.25	%	1.08	%	0.84	%

Total Loans	$	643	$	613	$	782	$	554	$	457	0.69	%	0.64	%	0.82	%	0.57	%	0.46	%

*	Percentage of related loan category outstandings

(1)	Information prior to 4Q08 does not reflect reclassifications between various Commercial Real Estate and Business and Community Banking categories

FINANCIAL SUPPLEMENT TO

THIRD QUARTER 2009 EARNINGS RELEASE

PAGE 17

Loan Portfolio - Risk View

Non-accrual Loans


	Non-accrual loans (excludes held for sale) (1)										*% of Loans (1)**
*($ in millions)*	3Q09		2Q09		1Q09		4Q08		3Q08		3Q09		2Q09		1Q09		4Q08		3Q08
Commercial
Commercial and Industrial/Leases	$	303	$	300	$	187	$	118	$	162	1.64	%	1.50	%	0.99	%	0.60	%	0.84	%
Commercial Real Estate - Owner-Occupied		311		257		190		131		149	5.70	%	4.60	%	3.69	%	2.74	%	3.21	%

Total Commercial		614		557		377		249		311	2.57	%	2.18	%	1.57	%	1.02	%	1.30	%
Commercial Real Estate
CRE - Non-Owner-Occupied Mortgages		1,123		759		437		261		353	8.62	%	5.82	%	3.52	%	2.43	%	3.43	%
Non-Owner Occupied Construction		987		864		493		269		519	15.25	%	12.41	%	6.73	%	3.12	%	5.55	%
Owner Occupied Construction		46		44		29		23		27	7.01	%	5.49	%	2.81	%	1.86	%	2.00	%

Construction		1,033		908		522		292		546	14.50	%	11.69	%	6.25	%	2.96	%	5.11	%

Total Commercial Real Estate		2,156		1,667		959		553		899	10.70	%	8.01	%	4.62	%	2.69	%	4.28	%
Business and Community Banking
Commercial and Industrial		78		83		73		57		53	2.23	%	2.30	%	1.95	%	1.42	%	1.24	%
Commercial Real Estate - Owner-Occupied Mortgages		139		115		81		66		48	2.10	%	1.71	%	1.20	%	0.95	%	0.69	%
CRE - Non-Owner-Occupied Mortgages		61		52		38		31		25	1.95	%	1.55	%	1.06	%	0.83	%	0.65	%
Non-Owner Occupied Construction		5		5		5		4		4	3.16	%	2.32	%	1.65	%	0.99	%	0.82	%
Owner Occupied Construction		1		1		2		2		5	0.46	%	0.47	%	0.54	%	0.54	%	1.09	%

Construction		6		6		7		6		9	1.51	%	1.29	%	1.09	%	0.77	%	0.96	%

Total Business and Community Banking		284		256		199		160		135	2.08	%	1.81	%	1.36	%	1.03	%	0.84	%
Residential First Mortgage
Alt-A		58		51		39		31		24	2.54	%	2.16	%	1.59	%	1.22	%	0.92	%
Residential First Mortgage		104		85		63		55		70	0.79	%	0.64	%	0.48	%	0.41	%	0.52	%

Total Residential First Mortgage		162		136		102		86		94	1.05	%	0.87	%	0.65	%	0.54	%	0.58	%
Consumer
Home Equity Lending		—		2		4		4		2	0.00	%	0.01	%	0.03	%	0.02	%	0.01	%
Indirect Lending		—		—		—		—		—	0.00	%	0.00	%	0.00	%	0.00	%	0.00	%
Direct Lending		—		—		—		—		—	0.00	%	0.00	%	0.00	%	0.00	%	0.00	%
Other Consumer		—		—		—		—		—	0.00	%	0.00	%	0.00	%	0.00	%	0.00	%

Total Other Consumer		—		2		4		4		2	0.00	%	0.01	%	0.02	%	0.02	%	0.01	%

Total Loans	$	3,216	$	2,618	$	1,641	$	1,052	$	1,441	3.47	%	2.72	%	1.71	%	1.08	%	1.46	%

*	Percentage of related loan category outstandings

(1)	Information prior to 4Q08 does not reflect reclassifications between various Commercial Real Estate and Business and Community Banking categories

FINANCIAL SUPPLEMENT TO

THIRD QUARTER 2009 EARNINGS RELEASE

PAGE 18

Diversified Loan Portfolio - $92.8 Billion (as of 9/30/09)

LOGO

FINANCIAL SUPPLEMENT TO

THIRD QUARTER 2009 EARNINGS RELEASE

PAGE 19

Commercial Real Estate Non-Owner Occupied Mortgages and Construction - $22.8 Billion (as of 9/30/09) (shaded portion represents Business & Community Banking)

LOGO

Commercial Real Estate Non-Owner Occupied Construction - $6.6 Billion (as of 9/30/09) (shaded portion represents Business & Community Banking)

LOGO

•

Portfolio well-diversified by product type

•

Includes $3.3 billion in Business and Community Banking Non-Owner Occupied Commercial Real Estate Loans which have different risk characteristics. They are underwritten not on a project basis but on the strength of the individual.

•

Proactively reducing certain concentrations

•

Land balances down $3.1 billion (49%) since December 2006

•

Condominium balances down $1.6 billion (71%) since December 2006

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Residential Homebuilder Portfolio - $3.4 billion (as of 9/30/09)⁽¹⁾

Portfolio Breakout by Category

($ in millions)

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Geographic Breakout

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¹	Central consists of Alabama, Georgia, and South Carolina

²	Midsouth consists of North Carolina, Virginia, Tennessee, Indiana, Illinois, Missouri, Iowa and Kentucky

³	Southwest consists of Louisiana, Mississippi, Texas and Arkansas

Product Breakout

($ in millions - except for average note size)


	Lots			Residential Presold			Residential Spec			Land			National Homebuilders/Other			Total Portfolio
	$	%*		$	%*		$	%*		$	%*		$	%*		$	%*
Ending Outstandings	819			222			952			1,134			225			3,352
Current Quarter Charge-offs	36	16.75	%	8	13.10	%	22	8.94	%	37	12.43	%	9	14.48	%	112	12.67	%
90+ Past Due	1	0.20	%	—	0.00	%	3	0.30	%	9	0.79	%	—	0.00	%	13	0.40	%
Non-Accruing Loans	186	22.72	%	115	51.94	%	197	20.63	%	306	27.00	%	95	42.28	%	899	26.82	%
Average Note Size (in thousands):
Total Portfolio	254	—		291	—		278	—		742	—		1,667	—		369	—
Central	220	—		155	—		185	—		777	—		628	—		288	—
Florida	503	—		830	—		736	—		1,687	—		196	—		875	—

*	Percentage of related product outstandings; charge-offs shown as annualized, and calculated on an average outstandings balance

•

Average note size of the homebuilder portfolio is $369 thousand

•

Non-accruing loans represent 26.8% of the total homebuilder portfolio with the highest concentrations in the Central (mainly Atlanta) and Florida regions

•

$3.4 billion residential homebuilder portfolio is a subset of the Commercial Real Estate portfolio (p. 19) with the majority of the residential homebuilder portfolio found in land and single family sectors

⁽¹⁾

Excludes loans held for sale

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Consumer Real Estate - $31.1 billion (as of 9/30/09)


	Outstandings*		Wgtd Avg. Original LTV		Wgtd Avg. Original FICO	Avg. Loan Size		% in 1st Lien
Home Equity Lending	$	15,630	73	%	738	$	74,624	42	%
Residential 1st Mortgage		13,229	66	%	724		172,924	99	%
Alt-A		2,284	70	%	688		177,595	100	%

Total Consumer RE Portfolio	$	31,143	70	%	728	$	120,700	71	%

*	$ in millions

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•

Regions portfolio contains no option ARMs, negative amortization mortgages or mortgages with below market introductory rates

•

Only about $64 million of the portfolio, net of discount, was originated under sub-prime programs

•

37% of the Consumer Real Estate portfolio is secured by Florida properties

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Home Equity Lending Net Charge-off Analysis


		3Q09									2Q09									1Q09									4Q08									3Q08
*($ in millions)*		1st Lien			2nd Lien			Total			1st Lien			2nd Lien			Total			1st Lien			2nd Lien			Total			1st Lien			2nd Lien			Total			1st Lien			2nd Lien			Total
Florida	Net Charge-off %*		2.19	%		6.33	%		4.77	%		2.44	%		7.89	%		5.85	%		3.07	%		5.99	%		4.91	%		1.71	%		4.37	%		3.40	%		1.48	%		4.28	%		3.28	%
	$ Losses	$	12.1		$	57.4		$	69.5		$	13.2		$	72.0		$	85.2		$	16.4		$	54.6		$	71.0		$	8.9		$	39.9		$	48.8		$	7.2		$	37.8		$	45.0
	Balance	$	2,181.0		$	3,570.4		$	5,751.4		$	2,171.3		$	3,624.8		$	5,796.1		$	2,169.9		$	3,677.5		$	5,847.4		$	2,121.6		$	3,662.9		$	5,784.5		$	1,994.6		$	3,578.8		$	5,573.4
	Original LTV		65.4	%		76.1	%		72.0	%
All Other States	Net Charge-off %*		0.56	%		1.33	%		0.98	%		0.63	%		1.50	%		1.11	%		0.52	%		1.27	%		0.93	%		0.52	%		1.00	%		0.79	%		0.39	%		0.93	%		0.69	%
	$ Losses	$	6.2		$	18.3		$	24.5		$	7.2		$	20.7		$	27.9		$	5.9		$	17.7		$	23.6		$	6.0		$	14.4		$	20.4		$	4.4		$	13.1		$	17.5
	Balance	$	4,451.0		$	5,428.0		$	9,879.0		$	4,508.6		$	5,491.6		$	10,000.2		$	4,569.4		$	5,606.6		$	10,176.0		$	4,624.0		$	5,721.7		$	10,345.7		$	4,584.2		$	5,691.4		$	10,275.6
	Original LTV		67.7	%		79.8	%		74.3	%
Totals	Net Charge-off %*		1.09	%		3.32	%		2.37	%		1.22	%		4.04	%		2.85	%		1.34	%		3.14	%		2.38	%		0.89	%		2.31	%		1.72	%		0.72	%		2.22	%		1.59	%
	$ Losses	$	18.3		$	75.7		$	94.0		$	20.4		$	92.6		$	113.1		$	22.3		$	72.3		$	94.6		$	14.9		$	54.3		$	69.2		$	11.6		$	50.9		$	62.5
	Balance	$	6,632.0		$	8,998.4		$	15,630.4		$	6,679.9		$	9,116.4		$	15,796.3		$	6,739.3		$	9,284.1		$	16,023.4		$	6,745.6		$	9,384.6		$	16,130.2		$	6,578.8		$	9,270.2		$	15,849.0
	Original LTV		66.9	%		78.3	%		73.4	%

•

23% Florida second lien concentration driving results

•

Second lien, Florida net charge-offs represent 61% of 3Q09 net charge-offs but just 23% of outstanding balances

•

Net charge-offs in Florida approximately 4.9 times non-Florida net charge-off rate

•

Origination quality solid with an average FICO of 738 and an average LTV of 73%; Property value declines driving losses

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Notes:

* Recoveries are pro-rated based on charge-off balances.

* Net Charge-off percentages are calculated on average balances.

* Balances shown on an ending basis. Net loss rates calculated using average balances

* Original LTVs shown for current period only; prior period LTVs not materially different

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Additional Financial and Operational Data


	9/30/09	6/30/09	3/31/09	12/31/08	9/30/08
Associate headcount	28,995	29,838	30,613	30,784	30,673
Total branch outlets	1,895	1,899	1,904	1,900	1,940
ATMs	2,313	2,321	2,322	2,336	2,361
Morgan Keegan offices	339	324	328	332	360

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Reconciliation to GAAP Financial Measures

The table below presents computations of earnings and certain other financial measures excluding discontinued operations, merger charges and goodwill impairment charges (non-GAAP). Merger and goodwill impairment charges are included in financial results presented in accordance with generally accepted accounting principles (GAAP). Regions believes the exclusion of merger and goodwill impairment charges in expressing earnings and certain other financial measures, including “earnings per common share from continuing operations, excluding merger and goodwill impairment charges” and “return on average tangible common equity, excluding discontinued operations, merger and goodwill impairment charges”, provides a meaningful base for period-to-period comparisons, which management believes will assist investors in analyzing the operating results of the Company and predicting future performance. These non-GAAP financial measures are also used by management to assess the performance of Regions’ business, because management does not consider merger and goodwill impairment charges to be relevant to ongoing operating results. Management and the Board of Directors utilize these non-GAAP financial measures for the following purposes: preparation of Regions’ operating budgets; calculation of performance-based annual incentive bonuses for certain executives; calculation of performance-based multi-year incentive bonuses for certain executives; monthly financial performance reporting, including segment reporting; monthly close-out “flash” reporting of consolidated results (management only); and presentations to investors of company performance. Regions believes that presenting these non-GAAP financial measures will permit investors to assess the performance of the Company on the same basis as that applied by management and the Board of Directors. Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied and are not audited. To mitigate these limitations, Regions has policies in place to address expenses that qualify as merger and goodwill impairment charges and procedures in place to approve and segregate merger and goodwill impairment charges from other normal operating expenses to ensure that the Company’s operating results are properly reflected for period-to-period comparisons. Although these non-GAAP financial measures are frequently used by stakeholders in the evaluation of a company, they have limitations as analytical tools, and should not be considered in isolation, or as a substitute for analyses of results as reported under GAAP. In particular, a measure of earnings that excludes merger and goodwill impairment charges does not represent the amount that effectively accrues directly to stockholders (i.e., merger and goodwill impairment charges are a reduction to earnings and stockholders’ equity).


		As of and for Quarter Ended
*($ amounts in millions, except per share data)*		09/30/09			06/30/09			03/31/09			12/31/08			09/30/08
INCOME
Net income (loss) from continuing operations (GAAP)		$	(377	)	$	(188	)	$	77		$	(6,218	)	$	90
Preferred dividends (GAAP)			(60	)		(56	)		(51	)		(26	)		—

Net income (loss) from continuing operations available to common shareholders (GAAP)			(437	)		(244	)		26			(6,244	)		90

Loss from discontinued operations, net of tax (GAAP)			—			—			—			—			(11	)

Net income (loss) available to common shareholders (GAAP)	A	$	(437	)	$	(244	)	$	26		$	(6,244	)	$	79

Net income (loss) from continuing operations available to common shareholders (GAAP)		$	(437	)	$	(244	)	$	26		$	(6,244	)	$	90
Merger-related charges, pre-tax
Salaries and employee benefits			—			—			—			—			25
Net occupancy expense			—			—			—			—			—
Furniture and equipment expense			—			—			—			—			—
Other			—			—			—			—			—

Total merger-related charges, pre-tax			—			—			—			—			25
Merger-related charges, net of tax			—			—			—			—			16
Goodwill impairment			—			—			—			6,000			—

Net income (loss) from continuing operations available to common shareholders, excluding merger and goodwill impairment charges (non-GAAP)	B	$	(437	)	$	(244	)	$	26		$	(244	)	$	106

Weighted-average diluted shares	C		1,189			876			694			693			696
Earnings (loss) per common share - diluted (GAAP)	A/C	$	(0.37	)	$	(0.28	)	$	0.04		$	(9.01	)	$	0.11

Earnings (loss) per common share from continuing operations, excluding merger and goodwill impairment charges- diluted (non-GAAP)	B/C	$	(0.37	)	$	(0.28	)	$	0.04		$	(0.35	)	$	0.15

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Reconciliation to GAAP Financial Measures (Continued)

The following tables provide calculations of “return on average tangible common stockholders’ equity”, end of period “tangible common stockholders’ equity” ratios and a reconciliation of stockholders’ equity (GAAP) to Tier 1 capital (regulatory) and to “Tier 1 common equity” (non-GAAP). Tangible common stockholders’ equity ratios have become a focus of some investors and management believes they may assist investors in analyzing the capital position of the Company absent the effects of intangible assets and preferred stock. Traditionally, the Federal Reserve and other banking regulatory bodies have assessed a bank’s capital adequacy based on Tier 1 capital, the calculation of which is codified in federal banking regulations. In connection with the SCAP, these regulators began supplementing their assessment of the capital adequacy of a bank based on a variation of Tier 1 capital, known as Tier 1 common equity. While not codified, analysts and banking regulators have assessed Regions’ capital adequacy using the tangible common stockholders’ equity and/or the Tier 1 common equity measure. Because tangible common stockholders’ and Tier 1 common equity are not formally defined by GAAP or codified in the federal banking regulations, these measures are considered to be non-GAAP financial measures and other entities may calculate them differently than Regions’ disclosed calculations. Since analysts and banking regulators may assess Regions’ capital adequacy using tangible common stockholders’ equity and Tier 1 common equity, we believe that it is useful to provide investors the ability to assess Regions’ capital adequacy on these same bases.

Tier 1 common equity is often expressed as a percentage of risk-weighted assets. Under the risk-based capital framework, a bank’s balance sheet assets and credit equivalent amounts of off-balance sheet items are assigned to one of four broad risk categories. The aggregated dollar amount in each category is then multiplied by the risk-weighted category. The resulting weighted values from each of the four categories are added together and this sum is the risk-weighted assets total that, as adjusted, comprises the denominator of certain risk-based capital ratios. Tier 1 capital is then divided by this denominator (risk-weighted assets) to determine the Tier 1 capital ratio. Adjustments are made to Tier 1 capital to arrive at Tier 1 common equity. Tier 1 common equity is also divided by the risk-weighted assets to determine the Tier 1 common equity ratio. The amounts disclosed as risk-weighted assets are calculated consistent with banking regulatory requirements.


		As of and for Quarter Ended
		09/30/09			06/30/09			03/31/09			12/31/08			09/30/08
RETURN ON AVERAGE TANGIBLE COMMON STOCKHOLDERS’ EQUITY
Average stockholders’ equity (GAAP)		$	18,612		$	17,494		$	16,710		$	20,410		$	19,714
Less: Average intangible assets (GAAP)			6,108			6,138			6,168			11,086			12,195
Average preferred equity (GAAP)			3,606			3,421			3,311			1,690			—

Average tangible common stockholders’ equity (non-GAAP)	D	$	8,898		$	7,935		$	7,231		$	7,634		$	7,519
Return on average tangible common stockholders’ equity (1)	A/D		-19.48	%		-12.34	%		1.43	%		NM			4.20	%

Return on average tangible common stockholders’ equity, ex. discontinued operations, merger and goodwill impairment charges (non-GAAP) (1)	B/D		-19.48	%		-12.34	%		1.43	%		NM			5.59	%

TANGIBLE COMMON RATIOS
Stockholders’ equity (GAAP)		$	18,492		$	18,737		$	16,817		$	16,813		$	19,705
Less: Intangible assets (GAAP)			6,093			6,124			6,154			6,186			12,204
Preferred equity (GAAP)			3,612			3,603			3,316			3,307			—

Tangible common stockholders’ equity (non-GAAP)	E	$	8,787		$	9,010		$	7,347		$	7,320		$	7,501
Total assets (GAAP)		$	139,986		$	142,811		$	141,980		$	146,248		$	144,292
Less: Intangible assets (GAAP)			6,093			6,124			6,154			6,186			12,204

Tangible assets (non-GAAP)	F	$	133,893		$	136,687		$	135,826		$	140,062		$	132,088
Actual shares outstanding—end of quarter	G		1,188			1,188			695			691			692
Tangible common stockholders’ equity to tangible assets (non-GAAP)	E/F		6.56	%		6.59	%		5.41	%		5.23	%		5.69	%
Tangible common book value per share (non-GAAP)	E/G	$	7.40		$	7.58		$	10.57		$	10.59		$	10.84
TIER 1 COMMON RISK-BASED RATIO (2)
Stockholders’ equity (GAAP)		$	18,492		$	18,737		$	16,817		$	16,813		$	19,705
Accumulated other comprehensive income (loss)			(143	)		36			(11	)		8			(79	)
Non-qualifying goodwill and intangibles			(5,821	)		(5,845	)		(5,865	)		(5,864	)		(11,962	)
Other non-qualifying assets			(542	)		(423	)		(267	)		(16	)		(26	)
Qualifying non-controlling interests			91			91			91			91			91
Qualifying trust preferred securities			846			846			1,036			1,036			1,037

Tier 1 capital (regulatory)		$	12,923		$	13,442		$	11,801		$	12,068		$	8,766
Qualifying non-controlling interests			(91	)		(91	)		(91	)		(91	)		(91	)
Qualifying trust preferred securities			(846	)		(846	)		(1,036	)		(1,036	)		(1,037	)
Preferred stock			(3,612	)		(3,603	)		(3,316	)		(3,307	)		—

Tier 1 common equity (non-GAAP)	H	$	8,374		$	8,902		$	7,358		$	7,634		$	7,638
Risk-weighted assets (regulatory)	I		106,733			110,558			113,312			116,251			117,294
Tier 1 common risk-based ratio (non-GAAP)	H/I		7.8	%		8.1	%		6.5	%		6.6	%		6.5	%

(1)	Income statement amounts have been annualized in calculation

(2)	Current quarter amounts and the resulting ratios are estimated

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PAGE 26

Forward-Looking Statements

This supplement 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 harbor for forward-looking statements which are identified as such and are accompanied by the identification of important factors that could cause actual results to differ materially from the forward-looking statements. For these statements, we, together with our subsidiaries, claim the protection afforded by the safe harbor in the Act. Forward-looking statements are not based on historical information, but rather are related to future operations, strategies, financial results or other developments. Forward-looking statements are based on management’s expectations as well as certain assumptions and estimates made by, and information available to, management at the time the statements are made. Those statements are based on general assumptions and are subject to various risks, uncertainties and other factors that may cause actual results to differ materially from the views, beliefs and projections expressed in such statements. These risks, uncertainties and other factors include, but are not limited to, those described below:

•

In October 2008, Congress enacted, and the President signed into law, the Emergency Economic Stabilization Act of 2008, and on February 17, 2009 the American Recovery and Reinvestment Act of 2009 was signed into law. Additionally, the Department of the U.S. Treasury and federal banking regulators are implementing a number of programs to address capital and liquidity issues in the banking system, and may announce additional programs in the future, all of which may have significant effects on Regions and the financial services industry, the exact nature and extent of which cannot be determined at this time.

•

The impact of compensation and other restrictions imposed under the Troubled Asset Relief Program (“TARP”) until Regions is able to repay the outstanding preferred stock issued under the TARP.

•

Possible additional loan losses and impairment of goodwill and other intangibles and the impact on earnings and capital.

•

Possible changes in interest rates may affect funding costs and reduce earning asset yields, thus reducing margins.

•

Possible changes in general economic and business conditions in the United States in general and in the communities Regions serves in particular.

•

Possible changes in the creditworthiness of customers and the possible impairment of collectability of loans.

•

Possible other changes in trade, monetary and fiscal policies, laws and regulations, and other activities of governments, agencies, and similar organizations, including changes in accounting standards, may have an adverse effect on business.

•

The current stresses in the financial and real estate markets, including possible continued deterioration in property values.

•

Regions’ ability to manage fluctuations in the value of assets and liabilities and off-balance sheet exposure so as to maintain sufficient capital and liquidity to support Regions’ business.

•

Regions’ ability to achieve the earnings expectations related to businesses that have been acquired or that may be acquired in the future.

•

Regions’ ability to expand into new markets and to maintain profit margins in the face of competitive pressures.

•

Regions’ ability to develop competitive new products and services in a timely manner and the acceptance of such products and services by Regions’ customers and potential customers.

•

Regions’ ability to keep pace with technological changes.

•

Regions’ ability to effectively manage credit risk, interest rate risk, market risk, operational risk, legal risk, liquidity risk, and regulatory and compliance risk.

•

The cost and other effects of material contingencies, including litigation contingencies.

•

The effects of increased competition from both banks and non-banks.

•

The effects of geopolitical instability and risks such as terrorist attacks.

•

Possible changes in consumer and business spending and saving habits could affect Regions’ ability to increase assets and to attract deposits.

•

The effects of weather and natural disasters such as droughts and hurricanes.

The foregoing list of factors is not exhaustive; for discussion of these and other risks that may cause actual results to differ from expectations, please look under the caption “Forward-Looking Statements” in Regions’ Annual Report on Form 10-K for the year ended December 31, 2008 and Forms 10-Q for the quarter ended March 31, 2009 (as amended) and June 30, 2009, as on file with the Securities and Exchange Commission. See also Item 1A. “Risk Factors” of the June 30, 2009 Quarterly Report on Form 10-Q.

The words “believe,” “expect,” “anticipate,” “project,” and similar expressions often signify forward-looking statements. You should not place undue reliance on any forward-looking statements, which speak only as of the date made. We assume no obligation to update or revise any forward-looking statements that are made from time to time.

Regions’ Investor Relations contact is List Underwood at (205) 801-0265; Regions’ Media contact is Tim Deighton at (205) 264-4551

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