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

Attached files

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8-K - FORM 8-K - REGIONS FINANCIAL CORP	d8k.htm
EX-99.1 - PRESS RELEASE DATED JANUARY 26, 2010 - REGIONS FINANCIAL CORP	dex991.htm
EX-99.3 - VISUAL PRESENTATION OF JANUARY 26, 2010 - REGIONS FINANCIAL CORP	dex993.htm

Exhibit 99.2

FINANCIAL SUPPLEMENT TO FOURTH QUARTER 2009 EARNINGS RELEASE

Summary

Quarterly loss of $0.51 per diluted share reflects operating environment and continued actions to further improve the risk profile of the balance sheet; Regions continues to make progress in improving the fundamentals of the organization

•

Significant fourth quarter drivers include: $1,179 million loan loss provision ($487 million above net charge-offs); $96 million loss on sale of primarily non-agency securities; stable net interest margin stable of 2.72%; 3 percent increase in average low-cost deposits

•

Pre-tax Pre-provision net revenue continues to be impacted by higher credit-related expenses

Focus on growing customer relationships through service excellence

•

Exceeded goal of opening one million new retail and business deposit checking accounts in 2009, a 27% increase versus 2008, including 246,000 new accounts opened in the fourth quarter

•

Average customer deposits grew 2% linked quarter, up 10% year-over-year

•

Continued success in growing average non-interest bearing deposits, up 5% linked-quarter, the fifth consecutive quarterly increase

•

According to 2009 FDIC deposit data, gained market share in 15 of the 16 states the company operates, driving rankings higher in 6 of the states

Higher low-cost deposits and improved funding mix benefit margin; hedge maturity partially offsets

•

Net interest margin remained steady at 2.72%, as the ongoing positive shift in funding mix was largely offset by the impact of maturing interest rate swaps

•

Third quarter net interest income increased 1% to $850 million; earning assets increased 1% with securities purchases more than offsetting a decline in average loans

•

Actively making loans to both businesses and consumers. In 2009, businesses received $65 billion in new and renewed loans from Regions. However, loan growth continues to be constrained by lack of demand, including low line utilization.

•

Improved new loan spreads and deposit pricing continue to aid the net interest margin. Margin expected to gradually improve throughout 2010.

Solid non-interest income; managing for higher performance and efficiency

•

Non-interest revenues declined 7% versus prior quarter, impacted by a $96 million loss on sale of primarily non-agency investment securities, as well as a $71 million leveraged lease termination gain which was more than offset in taxes. Excluding these items non-interest income was 3% lower than the third quarter.

•

Service charges income remained relatively unchanged from third to fourth quarter. Service charge revenue will be negatively impacted in 2010 by NSF/OD policy changes enacted in late 2009.

•

Brokerage income increased $5 million or 2% to $257 million, driven by higher fees from investment banking

•

Morgan Keegan’s revenue increased $4 million to $337 million, driven by strong fixed income sales and trading revenue

•

Mortgage income declined $30 million. MSR hedge activity caused $23 million of the decline but was partially offset by a $20 million linked quarter hedge benefit recorded in net interest income.

•

Non-interest expense declined 2% linked quarter, however, excluding branch consolidation and valuation write-down charges, non-interest expense remained relatively unchanged linked quarter.

•

Salaries and benefits expense continued to reflect reduced headcount, declining $12 million linked quarter to $566 million

•

Elevated recession-related costs, including other real estate owned and certain legal and professionals fees continue to drive the increase in core non-interest expenses

Provision for loan losses of $1,179 million was $487 million above net charge-offs; Allowance for credit losses increased 62 basis points to 3.52%; Rate of NPA inflows decelerating

•

Net charge-offs stabilized at 2.99% of loans in the fourth quarter, slight rise driven by an increase in residential-related consumer losses

•

Non-performing assets, excluding loans held for sale, increased $376 million in the fourth quarter, the lowest quarterly increase in 2009; down 43% versus the prior linked-quarter increase of $662 million

•

Gross inflows of non-performing assets totaling $1.4 billion continue on downward trend

•

Allowance coverage ratio (ALL/NPL, excluding loans held for sale) at 0.89x as of 12/3109, as compared to 0.82x at 9/30/09

•

Credit-related costs, while remaining elevated, should decline in 2010 given the company’s proactive stance toward credit loss recognition and reserve build in 2009

Capital position remains strong⁽¹⁾

•

Tier 1 common ratio of 7.2%

•

Tier 1 capital ratio of 11.6%

⁽¹⁾ - Current quarter ratios are estimated

FINANCIAL SUPPLEMENT TO

FOURTH QUARTER 2009 EARNINGS RELEASE

PAGE 2

Regions Financial Corporation and Subsidiaries

Consolidated Balance Sheets

(Unaudited)


*($ amounts in millions)*
	12/31/09			9/30/09			6/30/09			3/31/09			12/31/08
Assets:
Cash and due from banks	$	2,052		$	2,101		$	2,363		$	2,429		$	2,643
Interest-bearing deposits in other banks		5,580			5,902			2,846			2,288			7,540
Federal funds sold and securities purchased under agreements to resell		379			366			3,221			418			790
Trading account assets		3,039			1,388			1,109			1,348			1,050
Securities available for sale		24,069			21,030			19,681			20,970			18,850
Securities held to maturity		31			39			43			45			47
Loans held for sale		1,511			1,470			1,932			1,956			1,282
Loans, net of unearned income		90,674			92,754			96,149			95,686			97,419
Allowance for loan losses		(3,114	)		(2,627	)		(2,282	)		(1,861	)		(1,826	)

Net loans		87,560			90,127			93,867			93,825			95,593
Other interest-earning assets		734			839			829			849			897
Premises and equipment, net		2,668			2,694			2,789			2,808			2,786
Interest receivable		468			499			501			426			458
Goodwill		5,557			5,557			5,556			5,551			5,548
Mortgage servicing rights (MSRs)		247			216			202			161			161
Other identifiable intangible assets		503			535			568			603			638
Other assets		7,920			7,223			7,304			8,303			7,965

Total Assets	$	142,318		$	139,986		$	142,811		$	141,980		$	146,248

Liabilities and Stockholders’ Equity:
Deposits:
Non-interest-bearing	$	23,204		$	21,226		$	20,995		$	19,988		$	18,457
Interest-bearing		75,476			73,654			73,731			73,548			72,447

Total deposits		98,680			94,880			94,726			93,536			90,904
Borrowed funds:
Short-term borrowings:
Federal funds purchased and securities sold under agreements to repurchase		1,893			2,633			2,265			2,828			3,143
Other short-term borrowings		1,775			2,653			4,927			6,525			12,679

Total short-term borrowings		3,668			5,286			7,192			9,353			15,822
Long-term borrowings		18,464			18,093			18,238			18,762			19,231

Total borrowed funds		22,132			23,379			25,430			28,115			35,053
Other liabilities		3,625			3,235			3,918			3,512			3,478

Total Liabilities		124,437			121,494			124,074			125,163			129,435
Stockholders’ equity:
Preferred stock, Series A		3,343			3,334			3,325			3,316			3,307
Preferred stock, Series B		259			278			278			—			—
Common stock		12			12			12			7			7
Additional paid-in capital		18,781			18,754			18,740			16,828			16,815
Retained earnings (deficit)		(3,235	)		(2,618	)		(2,169	)		(1,913	)		(1,869	)
Treasury stock, at cost		(1,409	)		(1,411	)		(1,413	)		(1,415	)		(1,425	)
Accumulated other comprehensive income (loss), net		130			143			(36	)		(6	)		(22	)

Total Stockholders’ Equity		17,881			18,492			18,737			16,817			16,813

Total Liabilities and Stockholders’ Equity	$	142,318		$	139,986		$	142,811		$	141,980		$	146,248

FINANCIAL SUPPLEMENT TO

FOURTH QUARTER 2009 EARNINGS RELEASE

PAGE 3

Regions Financial Corporation and Subsidiaries

Consolidated Statements of Operations (1)

(Unaudited)


*($ amounts in millions, except per share data)*	Quarter Ended
	12/31/09			9/30/09			6/30/09			3/31/09		12/31/08
Interest income on:
Loans, including fees	$	981		$	1,047		$	1,073		$	1,098	$	1,328
Securities:
Taxable		256			232			239			239		212
Tax-exempt		1			6			5			7		9

Total securities		257			238			244			246		221
Loans held for sale		12			12			15			16		8
Federal funds sold and securities purchased under agreements to resell		1			—			1			1		2
Trading account assets		30			10			10			12		11
Other interest-earning assets		7			7			8			6		11

Total interest income		1,288			1,314			1,351			1,379		1,581
Interest expense on:
Deposits		280			301			330			366		408
Short-term borrowings		9			9			16			20		69
Long-term borrowings		149			159			174			184		180

Total interest expense		438			469			520			570		657

Net interest income		850			845			831			809		924
Provision for loan losses		1,179			1,025			912			425		1,150

Net interest income (loss) after provision for loan losses		(329	)		(180	)		(81	)		384		(226	)
Non-interest income:
Service charges on deposit accounts		299			300			288			269		288
Brokerage, investment banking and capital markets		257			252			263			217		241
Mortgage income		46			76			64			73		34
Trust department income		48			49			48			46		52
Securities gains (losses), net		(96	)		4			108			53		—
Other		164			91			428			408		87

Total non-interest income		718			772			1,199			1,066		702
Non-interest expense:
Salaries and employee benefits		566			578			586			539		562
Net occupancy expense		114			121			112			107		114
Furniture and equipment expense		74			83			78			76		79
Impairment of MSR’s		—			—			—			—		99
Goodwill impairment		—			—			—			—		6,000
Other-than-temporary impairments (2)		—			3			69			3		13
Other		465			458			386			333		406

Total non-interest expense		1,219			1,243			1,231			1,058		7,273

Income (loss) before income taxes from continuing operations		(830	)		(651	)		(113	)		392		(6,797	)
Income taxes		(287	)		(274	)		75			315		(579	)

Net income (loss)	$	(543	)	$	(377	)	$	(188	)	$	77	$	(6,218	)

Income (loss) from continuing operations available to common shareholders	$	(606	)	$	(437	)	$	(244	)	$	26	$	(6,244	)

Net income (loss) available to common shareholders	$	(606	)	$	(437	)	$	(244	)	$	26	$	(6,244	)

Weighted-average shares outstanding–during quarter:
Basic		1,191			1,189			876			693		693
Diluted		1,191			1,189			876			694		693
Actual shares outstanding-end of quarter		1,193			1,188			1,188			695		691
Earnings (loss) per common share (3):
Basic	$	(0.51	)	$	(0.37	)	$	(0.28	)	$	0.04	$	(9.01	)
Diluted	$	(0.51	)	$	(0.37	)	$	(0.28	)	$	0.04	$	(9.01	)
Cash dividends declared per common share	$	0.01		$	0.01		$	0.01		$	0.10	$	0.10
Taxable-equivalent net interest income from continuing operations	$	857		$	853		$	840		$	817	$	933

(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)	Includes preferred stock dividends.

FINANCIAL SUPPLEMENT TO

FOURTH QUARTER 2009 EARNINGS RELEASE

PAGE 4

Regions Financial Corporation and Subsidiaries

Consolidated Statements of Operations (1)

(Unaudited)


*($ amounts in millions, except per share data)*	Twelve Months Ended December 31
	2009			2008
Interest income on:
Loans, including fees	$	4,199		$	5,550
Securities:
Taxable		966			828
Tax-exempt		19			40

Total securities		985			868
Loans held for sale		55			35
Federal funds sold and securities purchased under agreements to resell		3			18
Trading account assets		62			63
Other interest-earning assets		28			29

Total interest income		5,332			6,563
Interest expense on:
Deposits		1,277			1,724
Short-term borrowings		54			369
Long-term borrowings		666			627

Total interest expense		1,997			2,720

Net interest income		3,335			3,843
Provision for loan losses		3,541			2,057

Net interest income (loss) after provision for loan losses		(206	)		1,786
Non-interest income:
Service charges on deposit accounts		1,156			1,148
Brokerage, investment banking and capital markets		989			1,027
Mortgage income		259			138
Trust department income		191			234
Securities gains, net		69			92
Other		1,091			434

Total non-interest income		3,755			3,073
Non-interest expense:
Salaries and employee benefits		2,269			2,356
Net occupancy expense		454			442
Furniture and equipment expense		311			335
Impairment of MSR’s		—			85
Other-than-temporary impairments (2)		75			23
Goodwill impairment		—			6,000
Other		1,642			1,551

Total non-interest expense (3)		4,751			10,792

Income (loss) before income taxes from continuing operations		(1,202	)		(5,933	)
Income taxes		(171	)		(348	)

Income (loss) from continuing operations		(1,031	)		(5,585	)
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)		($1,031	)		($5,596	)

Income (loss) from continuing operations available to common shareholders		($1,261	)		($5,611	)

Net income (loss) available to common shareholders		($1,261	)		($5,622	)

Weighted-average shares outstanding–year-to-date:
Basic		989			695
Diluted		989			695
Actual shares outstanding–end of period		1,193			691
Earnings (loss) per common share (4):
Basic	$	(1.27	)	$	(8.09	)
Diluted	$	(1.27	)	$	(8.09	)
Cash dividends declared per common share	$	0.13		$	0.96
Taxable equivalent net interest income from continuing operations	$	3,367		$	3,880

(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)	The securities for which noncredit other-than-temporary impairments were taken in 2Q09 and 3Q09 were sold in 4Q09. Realized losses on the sales are reported with securities gains (losses), net.

(4)	Merger-related charges totaled $201 million for the twelve months ended December 31, 2008.

FINANCIAL SUPPLEMENT TO

FOURTH QUARTER 2009 EARNINGS RELEASE

PAGE 5

Regions Financial Corporation and Subsidiaries

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


*($ amounts in millions; yields on taxable-equivalent basis)*
	Quarter Ended
	12/31/09							9/30/09							6/30/09							3/31/09							12/31/08
	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	$	364		$	1	0.35	%	$	597		$	—	0.42	%	$	508		$	1	0.49	%	$	545		$	1	0.80	%	$	608		$	2	1.37	%
Trading account assets		2,827			31	4.33	%		1,101			10	3.59	%		1,221			11	3.58	%		1,234			13	4.21	%		1,334			12	3.50	%
Securities:
Taxable		23,061			256	4.41	%		19,177			232	4.79	%		19,453			239	4.92	%		19,160			239	5.06	%		17,081			212	4.92	%
Tax-exempt		135			2	7.42	%		463			8	6.52	%		562			8	6.30	%		687			11	6.34	%		800			14	7.15	%
Loans held for sale		1,494			12	2.99	%		1,522			12	3.25	%		1,790			16	3.41	%		1,819			15	3.45	%		823			8	4.17	%
Loans, net of unearned income		91,766			986	4.27	%		94,354			1,053	4.43	%		95,382			1,077	4.53	%		96,648			1,102	4.62	%		99,134			1,331	5.34	%
Other interest-earning assets		5,566			7	0.48	%		6,841			7	0.40	%		9,700			8	0.36	%		5,599			6	0.40	%		5,604			11	0.78	%

Total interest-earning assets		125,213		$	1,295	4.10	%		124,055		$	1,322	4.23	%		128,616		$	1,360	4.24	%		125,692		$	1,387	4.47	%		125,384		$	1,590	5.05	%
Allowance for loan losses		(2,772	)						(2,393	)						(1,917	)						(1,868	)						(1,456	)
Cash and due from banks		2,206							2,113							2,269							2,396							2,499
Other non-earning assets		16,486							16,530							17,119							17,343							21,647

	$	141,133						$	140,305						$	146,087						$	143,563						$	148,074

Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Savings accounts	$	4,064		$	1	0.14	%	$	4,038		$	1	0.13	%	$	4,029		$	1	0.11	%	$	3,804		$	1	0.12	%	$	3,691		$	1	0.12	%
Interest-bearing transaction accounts		14,279			11	0.29	%		13,934			10	0.27	%		14,277			11	0.30	%		14,909			10	0.27	%		14,393			20	0.55	%
Money market accounts		23,808			38	0.63	%		23,107			35	0.61	%		22,138			43	0.78	%		21,204			67	1.28	%		20,565			93	1.79	%
Time deposits		32,046			230	2.84	%		32,584			255	3.10	%		33,442			275	3.30	%		32,894			288	3.55	%		31,849			293	3.65	%
Other		—			—	—			—			—	—			728			—	0.14	%		530			—	0.07	%		1,262			1	0.42	%

Total interest-bearing deposits		74,197			280	1.49	%		73,663			301	1.62	%		74,614			330	1.78	%		73,341			366	2.02	%		71,760			408	2.26	%
Federal funds purchased and securities sold under agreements to repurchase		3,089			5	0.60	%		2,649			1	0.11	%		3,734			3	0.33	%		3,199			3	0.41	%		4,458			12	1.08	%
Other short-term borrowings		1,849			4	0.91	%		2,721			8	1.26	%		7,427			13	0.71	%		9,023			17	0.73	%		14,260			57	1.59	%
Long-term borrowings		18,326			149	3.24	%		18,250			159	3.45	%		18,829			174	3.70	%		18,958			184	3.95	%		16,069			180	4.47	%

Total interest-bearing liabilities		97,461		$	438	1.78	%		97,283		$	469	1.91	%		104,604		$	520	2.00	%		104,521		$	570	2.21	%		106,547		$	657	2.45	%
Net interest spread						2.32	%						2.32	%						2.24	%						2.26	%						2.60	%

Non-interest-bearing deposits		22,149							21,122							20,421							18,896							17,773
Other liabilities		3,275							3,288							3,567							3,436							3,344
Stockholders’ equity		18,248							18,612							17,495							16,710							20,410

	$	141,133						$	140,305						$	146,087						$	143,563						$	148,074

Net interest income/margin FTE basis				$	857	2.72	%				$	853	2.73	%				$	840	2.62	%				$	817	2.64	%				$	933	2.96	%

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

FINANCIAL SUPPLEMENT TO

FOURTH QUARTER 2009 EARNINGS RELEASE

PAGE 6

Regions Financial Corporation and Subsidiaries

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


*($ amounts in millions; yields on taxable equivalent basis)*
	Twelve Months Ended December 31
	2009							2008
	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	$	503		$	3	0.53	%	$	868		$	18	2.15	%
Trading account assets		1,599			65	4.04	%		1,473			66	4.47	%
Securities:
Taxable securities		20,221			966	4.78	%		16,897			828	4.90	%
Tax-exempt		460			29	6.45	%		754			61	8.10	%
Loans held for sale		1,655			55	3.29	%		664			36	5.38	%
Loans, net of unearned income		94,523			4,218	4.46	%		97,601			5,562	5.70	%
Other earning assets		6,927			28	0.40	%		1,873			29	1.55	%

Total interest-earning assets		125,888			5,364	4.26	%		120,130			6,600	5.49	%
Allowance for loan losses		(2,240	)						(1,413	)
Cash and due from banks		2,245							2,522
Other non-earning assets		16,866							22,708

	$	142,759						$	143,947

Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Savings accounts	$	3,984		$	5	0.12	%	$	3,744		$	4	0.12	%
Interest-bearing transaction accounts		14,347			40	0.28	%		15,058			127	0.84	%
Money market accounts		22,573			184	0.81	%		21,097			373	1.76	%
Time deposits		32,739			1,047	3.20	%		30,384			1,174	3.86	%
Other		312			1	0.11	%		2,074			46	2.23	%

Total interest-bearing deposits		73,955			1,277	1.73	%		72,357			1,724	2.38	%
Federal funds purchased and securities sold under agreements to repurchase		3,166			12	0.37	%		7,697			171	2.22	%
Other short-term borrowings		5,229			42	0.81	%		8,704			198	2.28	%
Long-term borrowings		18,588			666	3.59	%		13,510			627	4.64	%

Total interest-bearing liabilities		100,938			1,997	1.98	%		102,268			2,720	2.66	%
Net interest spread						2.28	%						2.83	%

Non-interest bearing deposits		20,657							17,720
Other liabilities		3,391							4,020
Stockholders’ equity		17,773							19,939

	$	142,759						$	143,947

Net interest income/margin FTE basis				$	3,367	2.67	%				$	3,880	3.23	%

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

FINANCIAL SUPPLEMENT TO

FOURTH QUARTER 2009 EARNINGS RELEASE

PAGE 7

Regions Financial Corporation and Subsidiaries

Selected Ratios


	As of and for Quarter Ended
	12/31/09			9/30/09			6/30/09			3/31/09			12/31/08
Return on average assets*		(1.70	%)		(1.24	%)		(0.67	%)		0.07	%		NM
Return on average common equity*		(16.40	%)		(11.55	%)		(6.96	%)		0.77	%		NM
Return on average tangible common equity* (non-GAAP)		(28.03	%)		(19.48	%)		(12.34	%)		1.43	%		NM
Common equity per share	$	11.97		$	12.53		$	12.74		$	19.43		$	19.53
Tangible common book value per share (non-GAAP)	$	6.89		$	7.40		$	7.58		$	10.57		$	10.59
Stockholders’ equity to total assets		12.56	%		13.21	%		13.12	%		11.84	%		11.50	%
Tangible common stockholders’ equity to tangible assets (non-GAAP)		6.03	%		6.56	%		6.59	%		5.41	%		5.23	%
Tier 1 Common risk-based ratio (non-GAAP) (1)		7.2	%		7.9	%		8.1	%		6.5	%		6.6	%
Tier 1 Capital (1)		11.6	%		12.2	%		12.2	%		10.4	%		10.4	%
Total Risk-Based Capital (1)		15.8	%		16.3	%		16.2	%		14.6	%		14.6	%
Allowance for credit losses as a percentage of loans, net of unearned income (2)		3.52	%		2.90	%		2.43	%		2.02	%		1.95	%
Allowance for loan losses as a percentage of loans, net of unearned income		3.43	%		2.83	%		2.37	%		1.94	%		1.87	%
Allowance for loan losses to non-performing loans		0.89	x		0.82	x		0.87	x		1.13	x		1.74	x
Net interest margin (FTE)		2.72	%		2.73	%		2.62	%		2.64	%		2.96	%
Loans, net of unearned income, to total deposits		91.89	%		97.76	%		101.50	%		102.30	%		107.17	%
Net charge-offs as a percentage of average loans*		2.99	%		2.86	%		2.06	%		1.64	%		3.19	%
Non-performing assets (excluding loans 90 days past due)as a percentage of loans and other real estate		4.83	%		4.40	%		3.55	%		2.43	%		1.76	%
Non-performing assets (excluding loans 90 days past due)as a percentage of loans and other real estate (3)		4.49	%		3.99	%		3.17	%		2.02	%		1.33	%
Non-performing assets (including loans 90 days past due)as a percentage of loans and other real estate		5.59	%		5.08	%		4.18	%		3.24	%		2.33	%
Non-performing assets (including loans 90 days past due)as a percentage of loans and other real estate (3)		5.24	%		4.68	%		3.80	%		2.83	%		1.89	%

*	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)	Excludes loans held for sale

FINANCIAL SUPPLEMENT TO

FOURTH QUARTER 2009 EARNINGS RELEASE

PAGE 8

Loans (1)

Loan Portfolio - Period End Data


*($ amounts in millions)*	12/31/09		9/30/09		6/30/09		3/31/09		12/31/08		12/31/09 vs. 9/30/09					12/31/09 vs. 12/31/08
Commercial and industrial	$	21,547	$	21,925	$	23,619	$	22,585	$	23,596	$	(378	)	-1.7	%	$	(2,049	)	-8.7	%
Commercial real estate mortgage - owner-occupied		12,054		12,103		12,282		11,926		11,722		(49	)	-0.4	%		332		2.8	%
Commercial real estate construction - owner-occupied		751		875		1,060		1,328		1,605		(124	)	-14.2	%		(854	)	-53.2	%

Total commercial		34,352		34,903		36,961		35,839		36,923		(551	)	-1.6	%		(2,571	)	-7.0	%
Commercial investor real estate mortgage		16,109		16,190		16,419		15,969		14,486		(81	)	-0.5	%		1,623		11.2	%
Commercial investor real estate construction		5,591		6,616		7,163		7,611		9,029		(1,025	)	-15.5	%		(3,438	)	-38.1	%

Total investor real estate		21,700		22,806		23,582		23,580		23,515		(1,106	)	-4.8	%		(1,815	)	-7.7	%
Residential first mortgage		15,632		15,513		15,564		15,678		15,839		119		0.8	%		(207	)	-1.3	%
Home equity		15,381		15,630		15,796		16,023		16,130		(249	)	-1.6	%		(749	)	-4.6	%
Indirect		2,452		2,755		3,099		3,464		3,854		(303	)	-11.0	%		(1,402	)	-36.4	%
Other consumer		1,157		1,147		1,147		1,102		1,158		10		0.9	%		(1	)	-0.1	%

	$	90,674	$	92,754	$	96,149	$	95,686	$	97,419	$	(2,080	)	-2.2	%	$	(6,745	)	-6.9	%

Loan Portfolio - Average Balances


*($ amounts in millions)*	4Q09		3Q09		2Q09		1Q09		4Q08		4Q09 vs. 3Q09					4Q09 vs. 4Q08
Commercial and industrial	$	21,570	$	22,443	$	22,707	$	23,095	$	24,122	$	(873	)	-3.9	%	$	(2,552	)	-10.6	%
Commercial real estate mortgage - owner-occupied		12,127		12,188		11,983		11,773		11,574		(61	)	-0.5	%		553		4.8	%
Commercial real estate construction - owner-occupied		819		944		1,198		1,524		1,782		(125	)	-13.2	%		(963	)	-54.0	%

Total commercial		34,516		35,575		35,888		36,392		37,478		(1,059	)	-3.0	%		(2,962	)	-7.9	%
Commercial investor real estate mortgage		16,292		16,470		16,081		15,215		14,313		(178	)	-1.1	%		1,979		13.8	%
Commercial investor real estate construction		6,145		7,010		7,474		8,420		9,802		(865	)	-12.3	%		(3,657	)	-37.3	%

Total investor real estate		22,437		23,480		23,555		23,635		24,115		(1,043	)	-4.4	%		(1,678	)	-7.0	%
Residential first mortgage		15,521		15,508		15,593		15,708		16,005		13		0.1	%		(484	)	-3.0	%
Home equity		15,515		15,714		15,940		16,115		16,036		(199	)	-1.3	%		(521	)	-3.2	%
Indirect		2,601		2,923		3,276		3,660		4,043		(322	)	-11.0	%		(1,442	)	-35.7	%
Other consumer		1,176		1,154		1,130		1,138		1,457		22		1.9	%		(281	)	-19.3	%

	$	91,766	$	94,354	$	95,382	$	96,648	$	99,134	$	(2,588	)	-2.7	%	$	(7,368	)	-7.4	%

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

FINANCIAL SUPPLEMENT TO

FOURTH QUARTER 2009 EARNINGS RELEASE

PAGE 9

Deposits (1)

Deposit Portfolio - Period End Data


*($ amounts in millions)*	12/31/09		9/30/09		6/30/09		3/31/09		12/31/08		12/31/09 vs. 9/30/09					12/31/09 vs. 12/31/08
Customer Deposits
Interest-free deposits	$	23,204	$	21,226	$	20,995	$	19,988	$	18,457	$	1,978		9.3	%	$	4,747		25.7	%
Interest-bearing checking		15,791		13,688		14,140		14,800		15,022		2,103		15.4	%		769		5.1	%
Savings		4,073		4,025		4,033		3,970		3,663		48		1.2	%		410		11.2	%
Money market - domestic		23,291		22,327		21,571		19,969		19,471		964		4.3	%		3,820		19.6	%
Money market - foreign		766		941		1,075		1,357		1,812		(175	)	-18.6	%		(1,046	)	-57.7	%

Low-cost deposits		67,125		62,207		61,814		60,084		58,425		4,918		7.9	%		8,700		14.9	%
Time deposits		31,468		32,582		32,724		33,379		32,369		(1,114	)	-3.4	%		(901	)	-2.8	%

Total customer deposits		98,593		94,789		94,538		93,463		90,794		3,804		4.0	%		7,799		8.6	%

Corporate Treasury Deposits
Time deposits		87		91		188		73		110		(4	)	-4.4	%		(23	)	-20.9	%

Total corporate treasury deposits		87		91		188		73		110		(4	)	-4.4	%		(23	)	-20.9	%

Total Deposits	$	98,680	$	94,880	$	94,726	$	93,536	$	90,904	$	3,800		4.0	%	$	7,776		8.6	%


Deposit Portfolio - Average Balances
*($ amounts in millions)*
	4Q09		3Q09		2Q09		1Q09		4Q08		4Q09 vs. 3Q09					4Q09 vs. 4Q08
Customer Deposits
Interest-free deposits	$	22,149	$	21,122	$	20,421	$	18,896	$	17,773	$	1,027		4.9	%	$	4,376		24.6	%
Interest-bearing checking		14,279		13,934		14,277		14,909		14,393		345		2.5	%		(114	)	-0.8	%
Savings		4,064		4,038		4,029		3,804		3,691		26		0.6	%		373		10.1	%
Money market - domestic		22,956		22,103		20,962		19,670		18,432		853		3.9	%		4,524		24.5	%
Money market - foreign		852		1,004		1,176		1,534		2,133		(152	)	-15.1	%		(1,281	)	-60.1	%

Low-cost deposits		64,300		62,201		60,865		58,813		56,422		2,099		3.4	%		7,878		14.0	%
Time deposits		31,961		32,481		33,221		32,814		31,442		(520	)	-1.6	%		519		1.7	%

Total customer deposits		96,261		94,682		94,086		91,627		87,864		1,579		1.7	%		8,397		9.6	%

Corporate Treasury Deposits
Time deposits		85		103		221		80		407		(18	)	-17.5	%		(322	)	-79.1	%
Other		—		—		728		530		1,262		—		NM			(1,262	)	-100.0	%

Total corporate treasury deposits		85		103		949		610		1,669		(18	)	-17.5	%		(1,584	)	-94.9	%

Total Deposits	$	96,346	$	94,785	$	95,035	$	92,237	$	89,533	$	1,561		1.6	%	$	6,813		7.6	%

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

FINANCIAL SUPPLEMENT TO

FOURTH QUARTER 2009 EARNINGS RELEASE

PAGE 10

Pre-Tax Pre-Provision Net Revenue (“PPNR”) (1)


*($ amounts in millions)*	4Q09			3Q09			2Q09			1Q09			4Q08			4Q09 vs. 3Q09					4Q09 vs. 4Q08
Net Interest Income	$	850		$	845		$	831		$	809		$	924			5		0.6	%	$	(74	)	-8.0	%
Non-Interest Income		718			772			1,199			1,066			702			(54	)	-7.0	%		16		2.3	%

Total Revenue		1,568			1,617			2,030			1,875			1,626			(49	)	-3.0	%		(58	)	-3.6	%
Non-Interest Expense		1,219			1,243			1,231			1,058			7,273			(24	)	-1.9	%		(6,054	)	-83.2	%

Pre-tax Pre-provision Net Revenue	$	349		$	374		$	799		$	817		$	(5,647	)		(25	)	-6.7	%		5,996		-106.2	%
Adjustments:
Securities (gains) losses, net		96			(4	)		(108	)		(53	)		—			100		NM			96		NM
Gain on sale of Visa shares		—			—			(80	)		—			—			—		NM			—		NM
Leveraged lease termination gains		(71	)		(4	)		(189	)		(323	)		—			(67	)	NM			(71	)	NM
Gain on extinguishment of debt		—			—			(61	)		—			—			—		NM			—		NM
Impairment of MSR’s		—			—			—			—			99			—		NM			(99	)	NM
FDIC special assessment		—			—			64			—			—			—		NM			—		NM
Securities impairment, net		—			3			69			3			13			(3	)	NM			(13	)	NM
Branch consolidation costs (2)		12			41			—			—			—			(29	)	NM			12		NM
Goodwill impairment		—			—			—			—			6,000			—		NM			(6,000	)	NM

Total adjustments		37			36			(305	)		(373	)		6,112			1		2.8	%		(6,075	)	NM

Adjusted PPNR	$	386		$	410		$	494		$	444		$	465		$	(24	)	-5.9	%	$	(79	)	-17.0	%


(1) Certain amounts in the prior periods have been reclassified to reflect current period presentation.
(2) Includes $3 million of net occupancy expense, $6 million of salary expense and $3 million in valuation charges in 4Q09; and $9 million of net occupancy expense, $7 million of furniture equipment expense and $25 million in valuation charges in 3Q09.

Categorization of Income related to Mortgage Servicing Rights (MSRs) (3)

*($ amounts in millions)*	4Q09			3Q09			2Q09			1Q09			4Q08			4Q09 vs. 3Q09					4Q09 vs. 4Q08
Net interest income (4)	$	20		$	—		$	—		$	—		$	—			20		NM			20		NM
Brokerage, investment banking and capital markets (5)		5			—			—			—			—			5		NM			5		NM
Mortgage income (6)		(4	)		19			(2	)		(1	)		—			(23	)	-121.1	%		(4	)	NM

	$	21		$	19		$	(2	)	$	(1	)	$	—			2		10.5	%		21		NM

(3)	This table details the impact of changes in valuation of mortgage servicing rights and related hedging instruments on various categories in the consolidated statements of operations.

(4)	Interest earned on trading securities used to hedge MSRs.

(5)	Mark-to-market impact of trading securities used to hedge MSRs.

(6)	Net effect of mark-to-market impact of MSRs and derivatives used to hedge MSRs.

FINANCIAL SUPPLEMENT TO

FOURTH QUARTER 2009 EARNINGS RELEASE

PAGE 11

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

Non-Interest Income and Expense

Non-Interest Income


*($ amounts in millions)*	4Q09			3Q09		2Q09		1Q09		4Q08		4Q09 vs. 3Q09					4Q09 vs. 4Q08
Service charges on deposit accounts	$	299		$	300	$	288	$	269	$	288	$	(1	)	-0.3	%	$	11		3.8	%
Brokerage, investment banking and capital markets		257			252		263		217		241		5		2.0	%		16		6.6	%
Mortgage income		46			76		64		73		34		(30	)	-39.5	%		12		35.3	%
Trust department income		48			49		48		46		52		(1	)	-2.0	%		(4	)	-7.7	%
Securities gains (losses), net		(96	)		4		108		53		—		(100	)	NM			(96	)	NM
Insurance income		25			25		27		28		26		—		0.0	%		(1	)	-3.8	%
Leveraged lease termination gains		71			4		189		323		—		67		NM			71		NM
Visa shares sale gain		—			—		80		—		—		—		NM			—		NM
Gain on early extinguishment of debt		—			—		61		—		—		—		NM			—		NM
Other		68			62		71		57		61		6		9.7	%		7		11.5	%

Total non-interest income	$	718		$	772	$	1,199	$	1,066	$	702	$	(54	)	-7.0	%	$	16		2.3	%


Non-Interest Expense (2)

*($ amounts in millions)*	4Q09			3Q09		2Q09		1Q09		4Q08		4Q09 vs. 3Q09					4Q09 vs. 4Q08
Salaries and employee benefits	$	566		$	578	$	586	$	539	$	562	$	(12	)	-2.1	%	$	4		0.7	%
Net occupancy expense		114			121		112		107		114		(7	)	-5.8	%		—		0.0	%
Furniture and equipment expense		74			83		78		76		79		(9	)	-10.8	%		(5	)	-6.3	%
Impairment (recapture) of MSR’s		—			—		—		—		99		—		NM			(99	)	NM
Professional and legal fees		109			98		50		53		74		11		11.2	%		35		47.3	%
Marketing expense		18			20		20		17		21		(2	)	-10.0	%		(3	)	-14.3	%
Amortization of core deposit intangible		29			30		30		31		32		(1	)	-3.3	%		(3	)	-9.4	%
Amortization of MSR’s		—			—		—		—		16		—		NM			(16	)	NM
Other real estate owned expense		65			61		24		26		32		4		6.6	%		33		103.1	%
Other-than-temporary impairments, net		—			3		69		3		13		(3	)	-100.0	%		(13	)	NM
FDIC premiums - special assessment		—			—		64		—		—		—		NM			—		NM
FDIC premiums		54			56		43		10		6		(2	)	-3.6	%		48		NM
Valuation charges associated with branch consolidations		2			25		—		—		—		(23	)	NM			2		NM
Other		188			168		155		196		225		20		11.9	%		(37	)	-16.4	%

Total non-interest expense, excluding goodwill impairment charges		1,219			1,243		1,231		1,058		1,273		(24	)	-1.9	%		(54	)	-4.2	%
Goodwill impairment charge		—			—		—		—		6,000		—		NM			(6,000	)	NM

Total non-interest expense	$	1,219		$	1,243	$	1,231	$	1,058	$	7,273	$	(24	)	-1.9	%	$	(6,054	)	-83.2	%

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

(2)	Individual expense categories are presented excluding goodwill impairment, which is presented in a separate line item in the above table

•

4Q09 non-interest income declined 7% linked quarter; however excluding gains (losses) on sale of securities and leveraged lease termination gains, non-interest income only declined 3% linked quarter

•

Service charges remained steady linked quarter; however, service charges revenue will be negatively impacted in 2010 by recent changes the company announced related to its NSF/OD policies

•

Brokerage, investment banking and capital markets income increased $5 million or 2% linked quarter, primarily driven by higher fees from investment banking and fixed income capital markets

•

Mortgage income declined $30 million linked quarter, however $23 million of the decline was partially offset by a $20 million linked quarter MSR hedge benefit recorded in net interest income

•

Securities losses in 4Q09 reflect the sale of approximately $1.3 billion of securities, including non-agency mortgage-backed securities and municipal bonds. The proceeds were reinvested in agency guaranteed mortgage-backed securities. As a result of these actions, the investment portfolio now has very minimal risk to commercial mortgage-backed securities, non-agency mortgage-backed securities or municipal bonds.

•

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 $71 million in 4Q09, $4 million in 3Q09, $189 million in 2Q09 and $323 million in 1Q09; however these amounts were offset by $74 million, $4 million, $196 million and $315 million in increased tax expense, respectively, resulting in a nominal impact to net income.

•

4Q09 non-interest expense declined 2% linked quarter; however when excluding branch consolidation and valuation write-down charges ($41 million in 3Q09, $12 million in 4Q09), non-interest expense remained relatively unchanged linked quarter.

•

Salaries and employee benefits declined $12 million linked quarter, primarily due to continued headcount reduction (declined 2,275 since 12/31/08).

•

Professional and legal fees remained elevated, increasing $11 million linked quarter, reflecting higher legal costs.

•

Third 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.

•

Fourth quarter’s $12 million branch consolidation charge includes $3 million of net occupancy expense, $6 million of salaries and benefits expense and $3 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 impairment charges

FINANCIAL SUPPLEMENT TO

FOURTH QUARTER 2009 EARNINGS RELEASE

PAGE 12

Morgan Keegan

Summary Income Statement (1)


*($ amounts in millions)*	4Q09		3Q09		2Q09		1Q09		4Q08		4Q09 vs. 3Q09					4Q09 vs. 4Q08
Revenues:
Commissions	$	52	$	53	$	48	$	49	$	56	$	(1	)	-1.9	%	$	(4	)	-7.1	%
Principal transactions		100		116		122		94		99		(16	)	-13.8	%		1		1.0	%
Investment banking		67		50		56		33		43		17		34.0	%		24		55.8	%
Interest		17		17		19		22		28		—		0.0	%		(11	)	-39.3	%
Trust fees and services		45		47		44		41		48		(2	)	-4.3	%		(3	)	-6.3	%
Investment advisory		38		44		32		29		50		(6	)	-13.6	%		(12	)	-24.0	%
Other		18		6		16		7		10		12		200.0	%		8		80.0	%

Total revenues		337		333		337		275		334		4		1.2	%		3		0.9	%
Expenses:
Interest expense		3		3		5		6		14		—		0.0	%		(11	)	-78.6	%
Non-interest expense		305		284		285		248		277		21		7.4	%		28		10.1	%

Total expenses		308		287		290		254		291		21		7.3	%		17		5.8	%

Income before income taxes		29		46		47		21		43		(17	)	-37.0	%		(14	)	-32.6	%
Income taxes		11		17		17		8		15		(6	)	-35.3	%		(4	)	-26.7	%

Net income	$	18	$	29	$	30	$	13	$	28	$	(11	)	-37.9	%	$	(10	)	-35.7	%

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 December 31, 2009
$ amount of revenue	$	82		$	119		$	25		$	49		$	31		$	31
% of gross revenue		24.3	%		35.3	%		7.4	%		14.5	%		9.2	%		9.3	%
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	%
Year Ended December 31, 2009
$ amount of revenue	$	317		$	452		$	85		$	197		$	150		$	81
% of gross revenue		24.7	%		35.3	%		6.6	%		15.4	%		11.7	%		6.3	%
Year Ended December 31, 2008
$ amount of revenue	$	339		$	370		$	128		$	231		$	177		$	95
% of gross revenue		25.3	%		27.7	%		9.5	%		17.2	%		13.2	%		7.1	%

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

•

The increase in non-interest expense is primarily related to higher professional and legal fees. Other increases, primarily incentive based compensation from improved market operations, were offset by continued cost cutting efforts.

•

The strong trend for Fixed-Income Capital Markets revenue continued in 4Q09 due to high volume of sales and trading. Also, improvement in the markets aided Fixed Income Capital Markets municipal banking due to municipalities either financing or refinancing infrastructure projects.

FINANCIAL SUPPLEMENT TO

FOURTH QUARTER 2009 EARNINGS RELEASE

PAGE 13

Credit Quality (1)

Credit Quality


	As of and for Quarter Ended
*($ in millions)*	12/31/09			9/30/09			6/30/09			3/31/09			12/31/08
Allowance for credit losses (ACL)	$	3,188		$	2,690		$	2,335		$	1,935		$	1,900
Provision for loan losses		1,179			1,025			912			425			1,150
Provision for unfunded credit losses		10			10			(21	)		—			(1	)
Net loans charged-off:*
Commercial and industrial		76			137			84			58			73
Commercial real estate mortgage - owner-occupied		38			17			15			12			32
Commercial real estate construction - owner-occupied		9			2			3			4			4

Total commercial		123			156			102			74			109
Commercial investor real estate mortgage		210			196			90			87			245
Commercial investor real estate construction		159			148			111			66			301

Total investor real estate		369			344			201			153			546
Residential first mortgage		55			57			51			39			41
Home equity		113			94			113			95			69
Indirect		10			10			11			16			15
Other consumer		22			19			13			13			16

Total	$	692		$	680		$	491		$	390		$	796

Net loan charge-offs as a % of average loans, annualized *
Commercial and industrial		1.39	%		2.43	%		1.49	%		1.02	%		1.20	%
Commercial real estate mortgage - owner-occupied		1.26	%		0.55	%		0.51	%		0.42	%		1.10	%
Commercial real estate construction - owner-occupied		4.45	%		0.88	%		1.00	%		1.06	%		0.89	%

Total commercial		1.41	%		1.73	%		1.15	%		0.83	%		1.16	%
Commercial investor real estate mortgage		5.11	%		4.74	%		2.23	%		2.30	%		6.80	%
Commercial investor real estate construction		10.26	%		8.40	%		5.94	%		3.18	%		12.20	%

Total investor real estate		6.52	%		5.83	%		3.40	%		2.62	%		9.01	%
Residential first mortgage		1.40	%		1.45	%		1.31	%		1.02	%		1.05	%
Home equity		2.89	%		2.37	%		2.85	%		2.38	%		1.72	%
Indirect		1.58	%		1.46	%		1.31	%		1.74	%		1.43	%
Other consumer		7.37	%		6.21	%		4.78	%		4.70	%		4.38	%

Total		2.99	%		2.86	%		2.06	%		1.64	%		3.19	%

Non-accrual loans	$	3,488		$	3,216		$	2,618		$	1,641		$	1,052
Foreclosed properties		607			503			439			294			243

Non-performing assets, excluding loans held for sale	$	4,095		$	3,719		$	3,057		$	1,935		$	1,295
Non-performing loans held for sale		317			380			371			393			423

Non-performing assets (NPAs)	$	4,412		$	4,099		$	3,428		$	2,328		$	1,718

Loans past due > 90 days*	$	688		$	643		$	613		$	782		$	554
Commercial loans restructured not included in categories above	$	25		$	16		$	11		$	1		$	1
Consumer loans restructured not included in categories above**	$	1,583		$	1,400		$	1,167		$	736		$	454

Total restructured loans not included in categories above	$	1,608		$	1,416		$	1,178		$	737		$	455

Credit Ratios:
ACL/Loans, net		3.52	%		2.90	%		2.43	%		2.02	%		1.95	%
ALL/Loans, net		3.43	%		2.83	%		2.37	%		1.94	%		1.87	%
NPAs (ex. 90+ past due)/Loans and foreclosed properties		4.83	%		4.40	%		3.55	%		2.43	%		1.76	%
NPAs (ex. 90+ past due)/Loans and foreclosed properties - excludes loans held for sale		4.49	%		3.99	%		3.17	%		2.02	%		1.33	%
NPAs (inc. 90+ past due)/Loans and foreclosed properties		5.59	%		5.08	%		4.18	%		3.24	%		2.33	%
NPAs (inc. 90+ past due)/Loans and foreclosed properties - excludes loans held for sale		5.24	%		4.68	%		3.80	%		2.83	%		1.89	%

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

**	At 12/31/09, 82 percent of consumer loans restructured not included in categories above consist of residential first mortgages.

Allowance for Credit Losses


	Year Ended December 31
*($ amounts in millions)*	2009			2008
Balance at beginning of year	$	1,900		$	1,379
Net loans charged-off		(2,253	)		(1,547	)
Allowance allocated to sold loans		—			(5	)
Provision for loan losses		3,541			2,057
Provision for unfunded credit commitments		—			15

Balance at end of period	$	3,188		$	1,900

Components:
Allowance for loan losses	$	3,114		$	1,826
Reserve for unfunded credit commitments		74			74

Allowance for credit losses	$	3,188		$	1,900

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

FINANCIAL SUPPLEMENT TO

FOURTH QUARTER 2009 EARNINGS RELEASE

PAGE 14


	Total Loan Portfolio Risk View

	4Q2009			3Q2009			2Q2009			1Q2009			4Q2008
*($ millions)*	$	% Total		$	% Total		$	% Total		$	% Total		$	% Total
Commercial & Industrial	18,150	20.0	%	18,442	19.9	%	20,003	20.8	%	18,853	19.7	%	19,581	20.1	%
Business Banking C&I	3,397	3.7	%	3,483	3.8	%	3,616	3.8	%	3,732	3.9	%	4,015	4.1	%

Total Commercial and Industrial	21,547	23.8	%	21,925	23.6	%	23,619	24.6	%	22,585	23.6	%	23,596	24.2	%
Commercial RE Mortgage - OO	5,399	6.0	%	5,461	5.9	%	5,573	5.8	%	5,147	5.4	%	4,780	4.9	%
Business Banking CRE Mortgage - OO	6,655	7.3	%	6,642	7.2	%	6,709	7.0	%	6,779	7.1	%	6,942	7.1	%

Total Commercial Real Estate Mortgage - OO	12,054	13.3	%	12,103	13.0	%	12,282	12.8	%	11,926	12.5	%	11,722	12.0	%
Commercial RE Construction - OO	527	0.6	%	649	0.7	%	807	0.8	%	1,023	1.1	%	1,235	1.3	%
Business Banking CRE Construction - OO	224	0.2	%	226	0.2	%	253	0.3	%	305	0.3	%	370	0.4	%

Total Commercial Real Estate Construction - OO	751	0.8	%	875	0.9	%	1,060	1.1	%	1,328	1.4	%	1,605	1.6	%

Total Commercial	34,352	37.9	%	34,903	37.6	%	36,961	38.4	%	35,839	37.5	%	36,923	37.9	%

Commercial IRE Mortgage	13,102	14.4	%	13,030	14.0	%	13,034	13.6	%	12,425	13.0	%	10,732	11.0	%
Business Banking IRE Mortgage	3,007	3.3	%	3,160	3.4	%	3,385	3.5	%	3,544	3.7	%	3,754	3.9	%

Total Commercial Investor Real Estate Mortgage	16,109	17.8	%	16,190	17.5	%	16,419	17.1	%	15,969	16.7	%	14,486	14.9	%
Commercial IRE Construction	5,473	6.0	%	6,472	7.0	%	6,961	7.2	%	7,316	7.6	%	8,624	8.9	%
Business Banking IRE Construction	118	0.1	%	144	0.2	%	202	0.2	%	295	0.3	%	405	0.4	%

Total Commercial Investor Real Estate Construction	5,591	6.2	%	6,616	7.1	%	7,163	7.4	%	7,611	8.0	%	9,029	9.3	%

Total Investor Real Estate	21,700	23.9	%	22,806	24.6	%	23,582	24.5	%	23,580	24.6	%	23,515	24.1	%

Residential First Mortgage	15,632	17.2	%	15,513	16.7	%	15,564	16.2	%	15,678	16.4	%	15,839	16.3	%
Home Equity	15,381	17.0	%	15,630	16.9	%	15,796	16.4	%	16,023	16.7	%	16,130	16.6	%
Direct	783	0.9	%	797	0.9	%	786	0.8	%	783	0.8	%	826	0.8	%
Indirect	2,452	2.7	%	2,755	3.0	%	3,099	3.2	%	3,464	3.6	%	3,854	4.0	%
Other Consumer	374	0.4	%	350	0.4	%	361	0.4	%	319	0.3	%	332	0.3	%

Total Consumer	34,622	38.2	%	35,045	37.8	%	35,606	37.0	%	36,267	37.9	%	36,981	38.0	%

Total Loans	90,674	100.0	%	92,754	100.0	%	96,149	100.0	%	95,686	100.0	%	97,419	100.0	%

OO = Owner Occupied

IRE = Investor Real Estate

FINANCIAL SUPPLEMENT TO

FOURTH QUARTER 2009 EARNINGS RELEASE

PAGE 15


	Net Charge-Offs Risk View

	4Q2009			3Q2009			2Q2009			1Q2009			4Q2008
*($ millions)*	$	%		$	%		$	%		$	%		$	%
Commercial & Industrial	28	0.61	%	88	1.83	%	46	0.97	%	27	0.57	%	43	0.86	%
Business Banking C&I	48	5.51	%	49	5.45	%	38	4.16	%	31	3.23	%	30	2.84	%

Total Commercial and Industrial	76	1.39	%	137	2.41	%	84	1.49	%	58	1.02	%	73	1.20	%
Commercial RE Mortgage - OO	33	2.40	%	15	1.08	%	14	1.06	%	10	0.86	%	26	2.21	%
Business Banking CRE Mortgage - OO	5	0.31	%	2	0.11	%	1	0.08	%	2	0.11	%	6	0.36	%

Total Commercial Real Estate Mortgage - OO	38	1.26	%	17	0.55	%	15	0.51	%	12	0.42	%	32	1.10	%
Commercial RE Construction - OO	9	5.90	%	2	1.10	%	3	1.32	%	3	1.08	%	4	1.08	%
Business Banking CRE Construction - OO	—	0.55	%	—	0.22	%	—	0.55	%	1	0.99	%	—	0.34	%

Total Commercial Real Estate Construction - OO	9	4.45	%	2	0.88	%	3	1.00	%	4	1.06	%	4	0.89	%

Total Commercial	123	1.41	%	156	1.73	%	102	1.15	%	74	0.83	%	109	1.16	%

Commercial IRE Mortgage	205	6.17	%	193	5.81	%	88	2.80	%	83	2.91	%	241	9.14	%
Business Banking IRE Mortgage	5	0.57	%	3	0.40	%	2	0.15	%	4	0.39	%	4	0.35	%

Total Commercial Investor Real Estate Mortgage	210	5.11	%	196	4.74	%	90	2.23	%	87	2.30	%	245	6.80	%
Commercial IRE Construction	158	10.43	%	147	8.57	%	110	6.08	%	66	3.30	%	300	12.77	%
Business Banking IRE Construction	1	2.24	%	1	1.48	%	1	1.13	%	—	0.45	%	1	0.67	%

Total Commercial Investor Real Estate Construction	159	10.26	%	148	8.40	%	111	5.94	%	66	3.18	%	301	12.20	%

Total Investor Real Estate	369	6.52	%	344	5.83	%	201	3.40	%	153	2.62	%	546	9.01	%

Residential First Mortgage	55	1.40	%	57	1.45	%	51	1.31	%	39	1.02	%	41	1.05	%
Home Equity	113	2.89	%	94	2.37	%	113	2.85	%	95	2.38	%	69	1.72	%
Direct	4	2.07	%	5	2.47	%	3	1.59	%	2	1.14	%	3	1.61	%
Indirect	10	1.58	%	10	1.46	%	11	1.31	%	16	1.74	%	15	1.43	%
Other Consumer	18	18.46	%	14	15.61	%	10	12.00	%	11	13.43	%	13	8.24	%

Total Consumer	200	2.28	%	180	2.03	%	188	2.10	%	163	1.81	%	141	1.50	%

Total Net Charge-Offs	692	2.99	%	680	2.86	%	491	2.06	%	390	1.64	%	796	3.19	%

OO = Owner Occupied

IRE = Investor Real Estate

FINANCIAL SUPPLEMENT TO

FOURTH QUARTER 2009 EARNINGS RELEASE

PAGE 16


	90+ Days Past Due Loans Risk View

	4Q2009			3Q2009			2Q2009			1Q2009			4Q2008
*($ millions)*	$	%		$	%		$	%		$	%		$	%
Commercial & Industrial	16	0.09	%	6	0.03	%	5	0.02	%	28	0.15	%	2	0.01	%
Business Banking C&I	8	0.23	%	7	0.20	%	9	0.25	%	14	0.38	%	12	0.30	%

Total Commercial & Industrial	24	0.11	%	13	0.06	%	14	0.06	%	42	0.19	%	14	0.06	%
Commercial RE Mortgage - OO	7	0.13	%	4	0.08	%	7	0.12	%	8	0.16	%	7	0.15	%
Business Banking CRE Mortgage - OO	9	0.13	%	8	0.12	%	10	0.16	%	15	0.22	%	6	0.09	%

Total Commercial Real Estate Mortgage - OO	16	0.13	%	12	0.10	%	17	0.14	%	23	0.19	%	13	0.11	%
Commercial RE Construction - OO	2	0.34	%	—	0.00	%	3	0.38	%	3	0.29	%	2	0.16	%
Business Banking CRE Construction - OO	—	0.00	%	1	0.38	%	—	0.00	%	1	0.21	%	—	0.00	%

Total Commercial Real Estate Construction - OO	2	0.24	%	1	0.10	%	3	0.29	%	4	0.27	%	2	0.17	%
Total Commercial	42	0.12	%	26	0.07	%	34	0.09	%	69	0.19	%	29	0.08	%

Commercial IRE Mortgage	12	0.09	%	25	0.19	%	36	0.27	%	62	0.50	%	7	0.07	%
Business Banking IRE Mortgage	10	0.33	%	4	0.14	%	10	0.29	%	6	0.18	%	5	0.13	%

Total Commercial Investor Real Estate Mortgage	22	0.14	%	29	0.18	%	46	0.28	%	68	0.43	%	12	0.08	%
Commercial IRE Construction	8	0.14	%	11	0.16	%	12	0.17	%	29	0.40	%	11	0.13	%
Business Banking IRE Construction	—	0.19	%	—	0.12	%	1	0.49	%	—	0.13	%	1	0.25	%

Total Commercial Investor Real Estate Construction	8	0.14	%	11	0.16	%	13	0.18	%	29	0.39	%	12	0.13	%

Total Investor Real Estate	30	0.14	%	40	0.18	%	59	0.25	%	97	0.42	%	24	0.10	%

Residential First Mortgage	361	2.31	%	345	2.23	%	360	2.32	%	359	2.29	%	272	1.72	%
Home Equity	241	1.57	%	222	1.42	%	148	0.94	%	244	1.52	%	214	1.33	%
Direct	2	0.30	%	2	0.22	%	2	0.21	%	3	0.38	%	3	0.36	%
Indirect	6	0.24	%	4	0.16	%	5	0.15	%	6	0.16	%	8	0.21	%
Other Consumer	6	1.34	%	4	1.07	%	5	1.33	%	4	1.25	%	4	1.20	%

Total Consumer	616	1.78	%	577	1.65	%	520	1.46	%	616	1.70	%	501	1.35	%

Total 90+ Days Past Due Loans	688	0.76	%	643	0.69	%	613	0.64	%	782	0.82	%	554	0.57	%

OO = Owner Occupied

IRE = Investor Real Estate

FINANCIAL SUPPLEMENT TO

FOURTH QUARTER 2009 EARNINGS RELEASE

PAGE 17


	Non-Accrual Loans (excludes loans held for sale)
	Risk View

	4Q2009			3Q2009			2Q2009			1Q2009			4Q2008
*($ millions)*	$	%		$	%		$	%		$	%		$	%
Commercial & Industrial	345	1.90	%	303	1.64	%	300	1.50	%	187	0.99	%	118	0.60	%
Business Banking C&I	82	2.43	%	78	2.23	%	83	2.30	%	73	1.95	%	57	1.42	%

Total Commercial & Industrial	427	1.98	%	381	1.73	%	383	1.62	%	260	1.15	%	175	0.74	%
Commercial RE Mortgage - OO	395	7.32	%	311	5.70	%	257	4.60	%	190	3.69	%	131	2.74	%
Business Banking CRE Mortgage - OO	165	2.49	%	139	2.10	%	115	1.71	%	81	1.20	%	66	0.95	%

Total Commercial Real Estate Mortgage - OO	560	4.65	%	450	3.72	%	372	3.03	%	271	2.27	%	197	1.68	%
Commercial RE Construction - OO	47	8.88	%	46	7.01	%	44	5.49	%	29	2.81	%	23	1.86	%
Business Banking CRE Construction - OO	3	1.54	%	1	0.46	%	1	0.47	%	2	0.54	%	2	0.54	%

Total Commercial Real Estate Construction - OO	50	6.69	%	47	5.33	%	45	4.29	%	31	2.29	%	25	1.61	%
Total Commercial	1,037	3.02	%	878	2.52	%	800	2.16	%	562	1.57	%	397	1.07	%

Commercial IRE Mortgage	1,126	8.60	%	1,123	8.62	%	759	5.82	%	437	3.52	%	261	2.43	%
Business Banking IRE Mortgage	77	2.56	%	61	1.95	%	52	1.55	%	38	1.06	%	31	0.83	%

Total Commercial Investor Real Estate Mortgage	1,203	7.47	%	1,184	7.31	%	811	4.94	%	475	2.97	%	292	2.01	%
Commercial IRE Construction	1,061	19.37	%	987	15.25	%	864	12.41	%	493	6.73	%	269	3.12	%
Business Banking IRE Construction	6	5.21	%	5	3.16	%	5	2.32	%	5	1.65	%	4	0.99	%

Total Commercial Investor Real Estate Construction	1,067	19.07	%	992	14.99	%	869	12.13	%	498	6.53	%	273	3.02	%

Total Investor Real Estate	2,270	10.46	%	2,176	9.54	%	1,680	7.12	%	973	4.12	%	565	2.40	%

Residential First Mortgage	180	1.15	%	162	1.05	%	136	0.87	%	102	0.65	%	86	0.54	%
Home Equity	1	0.00	%	—	0.00	%	2	0.01	%	4	0.03	%	4	0.02	%
Direct	—	0.00	%	—	0.00	%	—	0.00	%	—	0.00	%	—	0.00	%
Indirect	—	0.00	%	—	0.00	%	—	0.00	%	—	0.00	%	—	0.00	%
Other Consumer	—	0.00	%	—	0.00	%	—	0.00	%	—	0.00	%	—	0.00	%

Total Consumer	181	0.52	%	162	0.46	%	138	0.39	%	106	0.29	%	90	0.24	%

Total Non-Accrual Loans	3,488	3.85	%	3,216	3.47	%	2,618	2.72	%	1,641	1.71	%	1,052	1.08	%

OO = Owner Occupied

IRE = Investor Real Estate

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Residential Homebuilder Portfolio - $2.9 billion (as of 12/31/09)⁽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 Homebuilder/Other			Total Portfolio
	$	%*		$	%*		$	%*		$	%*		$	%*		$	%*
Ending Outstandings	714			168			851			952			183			2,868
Current Quarter Charge-offs	37	19.3	%	13	26.8	%	25	11.2	%	61	23.4	%	13	25.9	%	149	19.2	%
90+ Past Due	12	1.7	%	1	0.5	%	3	0.4	%	2	0.2	%	—	0.0	%	18	0.6	%
Non-Accruing Loans	219	30.7	%	96	57.3	%	229	26.9	%	295	30.9	%	126	68.9	%	965	33.7	%
Average Note Size (in thousands):
Total Portfolio	241	—		307	—		278	—		725	—		1,536	—		356	—
Central	209	—		172	—		187	—		725	—		600	—		282	—
Florida	443	—		957	—		723	—		1,604	—		260	—		836	—

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

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Average note size of the homebuilder portfolio is $356 thousand

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Non-accruing loans represent 33.7% of the total homebuilder portfolio with the highest concentrations in the Midsouth and Central (mainly Atlanta) regions

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$2.9 billion residential homebuilder portfolio is a subset of the Investor 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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Home Equity Lending Net Charge-off Analysis


		4Q09									3Q09									2Q09									1Q09									4Q08
*($ 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 %*		3.17	%		7.47	%		5.83	%		2.19	%		6.33	%		4.77	%		2.44	%		7.89	%		5.85	%		3.07	%		5.99	%		4.91	%		1.71	%		4.37	%		3.40	%
	$ Losses	$	17.4		$	66.4		$	83.8		$	12.1		$	57.4		$	69.5		$	13.2		$	72.0		$	85.2		$	16.4		$	54.6		$	71.0		$	8.9		$	40.0		$	48.9
	Balance	$	2,169.7		$	3,485.5		$	5,655.2		$	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
	Original LTV		65.4	%		76.1	%		72.0	%
All Other States	Net Charge-off %*		0.93	%		1.39	%		1.18	%		0.56	%		1.33	%		0.98	%		0.63	%		1.50	%		1.11	%		0.52	%		1.27	%		0.93	%		0.52	%		1.00	%		0.79	%
	$ Losses	$	10.4		$	18.8		$	29.2		$	6.2		$	18.3		$	24.5		$	7.2		$	20.7		$	27.9		$	5.9		$	17.7		$	23.6		$	6.0		$	14.3		$	20.3
	Balance	$	4,394.8		$	5,330.6		$	9,725.4		$	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
	Original LTV		67.8	%		79.8	%		74.3	%
Totals	Net Charge-off %*		1.67	%		3.79	%		2.89	%		1.09	%		3.32	%		2.37	%		1.22	%		4.04	%		2.85	%		1.34	%		3.14	%		2.38	%		0.89	%		2.31	%		1.72	%
	$ Losses	$	27.8		$	85.2		$	113.0		$	18.3		$	75.7		$	94.0		$	20.4		$	92.7		$	113.1		$	22.3		$	72.3		$	94.6		$	14.9		$	54.3		$	69.2
	Balance	$	6,564.5		$	8,816.1		$	15,380.6		$	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
	Original LTV		67.0	%		78.3	%		73.4	%

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23% Florida second lien concentration driving results

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Second lien, Florida net charge-offs represent 59% of 4Q09 net charge-offs but just 23% of outstanding balances.

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

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New origination quality solid with an average FICO of 768 and an average LTV of 61%; 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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Gross and Net NPA Migration Declining


*($ in millions)*	4Q 2008			1Q 2009			2Q 2009			3Q 2009			4Q 2009
Beginning Non-Performing Assets¹	$	1,642		$	1,295		$	1,935		$	3,057		$	3,719
Additions	$	1,004		$	1,116		$	1,758		$	1,667		$	1,404
Payments		(82	)		(55	)		(116	)		(90	)		(88	)
Returned to Accruing Status		(44	)		(34	)		(10	)		(42	)		(44	)
Charge-Offs / OREO Write-Downs		(243	)		(215	)		(296	)		(440	)		(451	)
Net Additions	$	635		$	812		$	1,336		$	1,095		$	821
Dispositions		(276	)		(81	)		(80	)		(232	)		(312	)
Moved to Held for Sale		(706	)		(91	)		(134	)		(201	)		(133	)
Ending Non-Performing Assets¹	$	1,295		$	1,935		$	3,057		$	3,719		$	4,095
Change Versus Previous Quarter	$	(347	)	$	640		$	1,122		$	662		$	376

¹	Excludes Loans Held for Sale

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Additional Financial and Operational Data


	12/31/09	9/30/09	6/30/09	3/31/09	12/31/08
Associate headcount	28,509	28,995	29,838	30,613	30,784
Total branch outlets	1,895	1,895	1,899	1,904	1,900
ATMs	2,304	2,313	2,321	2,322	2,336
Morgan Keegan offices	324	339	324	328	332

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Reconciliation to GAAP Financial Measures

The table below presents computations of earnings and certain other financial measures excluding goodwill impairment charges (non-GAAP). Goodwill impairment charges are included in financial results presented in accordance with generally accepted accounting principles (GAAP). Regions believes the exclusion of goodwill impairment charges in expressing earnings and certain other financial measures, including “earnings per common share, excluding goodwill impairment charges” and “return on average tangible common equity, excluding 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 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. 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 goodwill impairment charges does not represent the amount that effectively accrues directly to stockholders (i.e., goodwill impairment charges are a reduction to earnings and stockholders’ equity).


		As of and for Quarter Ended
*($ amounts in millions, except per share data)*		12/31/09			09/30/09			06/30/09			03/31/09			12/31/08
INCOME
Net income (loss) (GAAP)		$	(543	)	$	(377	)	$	(188	)	$	77		$	(6,218	)
Preferred dividends (GAAP)			(63	)		(60	)		(56	)		(51	)		(26	)

Net income (loss) available to common shareholders (GAAP)	A	$	(606	)	$	(437	)	$	(244	)	$	26		$	(6,244	)

Goodwill impairment			—			—			—			—			6,000
Net income (loss) available to common shareholders, excluding goodwill impairment charges (non-GAAP)	B	$	(606	)	$	(437	)	$	(244	)	$	26		$	(244	)

Weighted-average diluted shares	C		1,191			1,189			876			694			693

Earnings (loss) per common share - diluted (GAAP)	A/C	$	(0.51	)	$	(0.37	)	$	(0.28	)	$	0.04		$	(9.01	)

Earnings (loss) per common share, excluding goodwill impairment charges- diluted (non-GAAP)	B/C	$	(0.51	)	$	(0.37	)	$	(0.28	)	$	0.04		$	(0.35	)

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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 Supervisory Capital Assessment Program (“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
*($ amounts in millions)*		12/31/09			09/30/09			06/30/09			03/31/09			12/31/08
RETURN ON AVERAGE TANGIBLE COMMON STOCKHOLDERS’ EQUITY
Average stockholders’ equity (GAAP)		$	18,248		$	18,612		$	17,494		$	16,710		$	20,410
Less: Average intangible assets (GAAP)			6,077			6,108			6,138			6,168			11,086
Average preferred equity (GAAP)			3,606			3,606			3,421			3,311			1,690

Average tangible common stockholders’ equity (non-GAAP)	D	$	8,565		$	8,898		$	7,935		$	7,231		$	7,634
Return on average tangible common stockholders’ equity (1)	A/D		-28.03	%		-19.48	%		-12.34	%		1.43	%		NM

Return on average tangible common stockholders’ equity, ex. goodwill impairment charges (non-GAAP) (1)	B/D		-28.03	%		-19.48	%		-12.34	%		1.43	%		-12.72	%

TANGIBLE COMMON RATIOS
Stockholders’ equity (GAAP)		$	17,881		$	18,492		$	18,737		$	16,817		$	16,813
Less: Intangible assets (GAAP)			6,060			6,093			6,124			6,154			6,186
Preferred equity (GAAP)			3,602			3,612			3,603			3,316			3,307

Tangible common stockholders’ equity (non-GAAP)	E	$	8,219		$	8,787		$	9,010		$	7,347		$	7,320
Total assets (GAAP)		$	142,318		$	139,986		$	142,811		$	141,980		$	146,248
Less: Intangible assets (GAAP)			6,060			6,093			6,124			6,154			6,186

Tangible assets (non-GAAP)	F	$	136,258		$	133,893		$	136,687		$	135,826		$	140,062
Actual shares outstanding—end of quarter	G		1,193			1,188			1,188			695			691
Tangible common stockholders’ equity to tangible assets (non-GAAP)	E/F		6.03	%		6.56	%		6.59	%		5.41	%		5.23	%
Tangible common book value per share (non-GAAP)	E/G	$	6.89		$	7.40		$	7.58		$	10.57		$	10.59
TIER 1 COMMON RISK-BASED RATIO (2)
Stockholders’ equity (GAAP)		$	17,881		$	18,492		$	18,737		$	16,817		$	16,813
Accumulated other comprehensive income (loss)			(130	)		(143	)		36			(11	)		8
Non-qualifying goodwill and intangibles			(5,794	)		(5,821	)		(5,845	)		(5,865	)		(5,864	)
Other non-qualifying assets			(876	)		(506	)		(423	)		(267	)		(16	)
Qualifying non-controlling interests			91			91			91			91			91
Qualifying trust preferred securities			846			846			846			1,036			1,036

Tier 1 capital (regulatory)		$	12,018		$	12,959		$	13,442		$	11,801		$	12,068
Qualifying non-controlling interests			(91	)		(91	)		(91	)		(91	)		(91	)
Qualifying trust preferred securities			(846	)		(846	)		(846	)		(1,036	)		(1,036	)
Preferred stock			(3,602	)		(3,612	)		(3,603	)		(3,316	)		(3,307	)

Tier 1 common equity (non-GAAP)	H	$	7,479		$	8,410		$	8,902		$	7,358		$	7,634
Risk-weighted assets (regulatory)	I		103,842			106,673			110,558			113,312			116,251
Tier 1 common risk-based ratio (non-GAAP)	H/I		7.2	%		7.9	%		8.1	%		6.5	%		6.6	%

(1)	Income statement amounts have been annualized in calculation

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

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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:

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In October 2008, Congress enacted, and the President signed into law, the Emergency Economic Stabilization Act of 2008, and in February, 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.

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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.

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Possible additional loan losses, impairment of goodwill and other intangibles and valuation allowances on deferred tax assets and the impact on earnings and capital.

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

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

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

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Possible 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.

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

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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.

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

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

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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.

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Regions’ ability to keep pace with technological changes.

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

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

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

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

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

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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 captions “Forward-Looking Statements” and “Risk Factors” 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), June 30, 2009 and September 30, 2009 as on file with the Securities and Exchange Commission.

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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