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

Attached files

file	filename
8-K - FROM 8-K - REGIONS FINANCIAL CORP	d8k.htm
EX-99.1 - PRESS RELEASE - REGIONS FINANCIAL CORP	dex991.htm
EX-99.3 - VISUAL PRESENTATION - REGIONS FINANCIAL CORP	dex993.htm

Exhibit 99.2

FINANCIAL SUPPLEMENT TO THIRD QUARTER 2010 EARNINGS RELEASE

Summary

Quarterly loss of $0.17 per diluted share reflects disposition of problem assets and continued de-risking of

balance sheet; core business performance continues to improve

•

Significant third quarter drivers include: $1.0 billion in asset dispositions, including a $350 million bulk land sale of distressed assets; $760 million loan loss provision, up $109 million linked quarter

•

Pre-tax pre-provision net revenue (“PPNR”) impacted by higher credit-related costs and the impact of Reg E

Proactive sales efforts; continued de-risking of balance sheet

•

Non-performing loans, excluding loans held for sale, decreased $101 million or 3% linked quarter, and were the primary driver of an overall decline in non-performing assets

•

Net charge-offs increased $108 million to $759 million, or an annualized 3.52% of loans as compared to second quarter’s 2.99%. Increase in charge-offs reflects the company’s efforts to continue to de-risk the balance sheet.

•

Allowance for loan losses increased 6 bps to 3.77%; loan loss provision essentially equaled net charge-offs

•

Allowance coverage ratio (ALL/NPL, excluding loans held for sale) rose to 0.94x as of September 30, 2010, as compared to 0.92x at June 30, 2010

Continued emphasis on the customer

•

Opened approximately 762,000 new checking accounts year-to-date; expecting to exceed 2009’s record level of 1,000,000 new accounts

•

Customer retention remains well above the industry norm and is at a historical high

•

Gallup continues to identify Regions as a top-declile performer in customer loyalty

Funding mix continues to improve; Increase in net interest margin reflects steady loan yields and declining deposit costs

•

Net interest income increased $12 million linked quarter despite a 3% decline in average earning assets

•

Improving deposit costs continue to benefit the net interest margin, which rose 9 basis points linked quarter to 2.96%

•

Ending low-cost deposits increased $854 million; low-cost deposit rates declined 6 basis points to 0.17%

•

Total deposit costs declined 9 bps linked quarter to 0.70%; down 56 basis points year-over-year

•

Loans outstanding declined $1.5 billion or 2% linked quarter, which was a slower decline as compared to recent quarters; decline reflects de-risking efforts, particularly involving investor real estate, which decreased another $1.5 billion in the third quarter

•

Success in commercial and industrial segments, such as energy, franchise restaurant, healthcare and transportation was the driver in the 2% increase in the commercial and industrial loan portfolio; first increase in commercial and industrial loan balances since 2Q09

Steady non-interest revenue; Higher credit-related costs impact non-interest expenses

•

Non-interest revenues decreased 1% linked quarter, primarily driven lower by impact from Regulation E

•

Service charge income declined $8 million or 3% linked quarter, as revenue was impacted by changes associated with Regulation E, which was fully implemented in the third quarter

•

The actual impact from Regulation E changes, which was previously estimated at $72 million for the second half of 2010, will be less than previously forecasted; impact is now expected to be between $50 - $60 million, with approximately $16 million being reflected in the quarter ended September 30, 2010

•

Brokerage income increased $3 million to $257 million, driven by solid fixed income capital markets activity

•

Mortgage income increased $3 million linked quarter, driven by a record number of mortgage originations as customers took advantage of low rates and refinanced

•

Non-interest expenses, as adjusted for prior quarter’s regulatory charge, increased $37 million, or 3 percent linked quarter due to a rise in credit-related costs

•

Other real estate owned (“OREO”) expense and gains/losses on loans held for sale (included in other non-interest expense) increased $31 million linked quarter, which reflected approximately $30 million in losses related to the bulk sale of undeveloped land

Gulf Oil Spill

•

Customer Assistance Program continues to assist customers in need of financial support, including those impacted by the Gulf oil spill

•

Based on updated stress testing conducted this quarter and discussions with our borrowers, the company has lowered its estimate of potential future losses to be a maximum of $20 million, significantly less than the initial estimate of $100 million

Solid capital position

•

Tier 1 capital ratio of 12.1% ^(1);

•

Tier 1 common ratio of 7.6% ⁽¹⁾

•

As the rules are currently being interpreted, Basel III is expected to have a minimal impact to Regions

•

Tangible common stockholders’ equity to tangible assets of 6.13%

⁽¹⁾

estimated

FINANCIAL SUPPLEMENT TO

THIRD QUARTER 2010 EARNINGS RELEASE

PAGE 2

Regions Financial Corporation and Subsidiaries

Consolidated Balance Sheets

(Unaudited)


*($ amounts in millions)*	9/30/10			6/30/10			3/31/10			12/31/09			9/30/09
Assets:
Cash and due from banks	$	1,898		$	2,097		$	2,252		$	2,052		$	2,101
Interest-bearing deposits in other banks		3,852			4,562			4,295			5,580			5,902
Federal funds sold and securities purchased under agreements to resell		1,137			752			324			379			366
Trading account assets		1,580			1,261			1,238			3,039			1,388
Securities available for sale		23,555			24,166			24,219			24,069			21,030
Securities held to maturity		26			28			30			31			39
Loans held for sale		1,587			1,162			1,048			1,511			1,470
Loans, net of unearned income		84,420			85,945			88,174			90,674			92,754
Allowance for loan losses		(3,185	)		(3,185	)		(3,184	)		(3,114	)		(2,627	)

Net loans		81,235			82,760			84,990			87,560			90,127
Other interest-earning assets		1,043			1,082			819			734			839
Premises and equipment, net		2,564			2,588			2,637			2,668			2,694
Interest receivable		512			466			503			468			499
Goodwill		5,561			5,561			5,559			5,557			5,557
Mortgage servicing rights (MSRs)		204			220			270			247			216
Other identifiable intangible assets		414			443			472			503			535
Other assets		8,330			8,192			8,574			7,920			7,223

Total Assets	$	133,498		$	135,340		$	137,230		$	142,318		$	139,986

Liabilities and Stockholders’ Equity:
Deposits:
Non-interest-bearing	$	25,300		$	22,993		$	23,391		$	23,204		$	21,226
Interest-bearing		69,678			73,257			74,941			75,476			73,654

Total deposits		94,978			96,250			98,332			98,680			94,880
Borrowed funds:
Short-term borrowings:
Federal funds purchased and securities sold under agreements to repurchase		2,451			1,929			1,687			1,893			2,633
Other short-term borrowings		1,210			1,035			997			1,775			2,653

Total short-term borrowings		3,661			2,964			2,684			3,668			5,286
Long-term borrowings		14,335			15,415			15,683			18,464			18,093

Total borrowed funds		17,996			18,379			18,367			22,132			23,379
Other liabilities		3,361			3,248			2,893			3,625			3,235

Total Liabilities		116,335			117,877			119,592			124,437			121,494
Stockholders’ equity:
Preferred stock, Series A		3,370			3,360			3,351			3,343			3,334
Preferred stock, Series B		—			—			259			259			278
Common stock		13			13			12			12			12
Additional paid-in capital		19,047			19,038			18,781			18,781			18,754
Retained earnings (deficit)		(4,070	)		(3,849	)		(3,502	)		(3,235	)		(2,618	)
Treasury stock, at cost		(1,405	)		(1,405	)		(1,407	)		(1,409	)		(1,411	)
Accumulated other comprehensive income, net		208			306			144			130			143

Total Stockholders’ Equity		17,163			17,463			17,638			17,881			18,492

Total Liabilities and Stockholders’ Equity	$	133,498		$	135,340		$	137,230		$	142,318		$	139,986

FINANCIAL SUPPLEMENT TO

THIRD QUARTER 2010 EARNINGS RELEASE

PAGE 3

Regions Financial Corporation and Subsidiaries

Consolidated Statements of Operations

(Unaudited)


*($ amounts in millions, except per share data)*	Quarter Ended
*($ amounts in millions, except per share data)*	9/30/10			6/30/10			3/31/10			12/31/09			9/30/09
Interest income on:
Loans, including fees	$	919		$	930		$	945		$	981		$	1,047
Securities:
Taxable		214			224			242			256			232
Tax-exempt		—			—			1			1			6

Total securities		214			224			243			257			238
Loans held for sale		10			9			8			12			12
Federal funds sold and securities purchased under agreements to resell		1			1			—			1			—
Trading account assets		8			9			12			30			10
Other interest-earning assets		6			7			7			7			7

Total interest income		1,158			1,180			1,215			1,288			1,314
Interest expense on:
Deposits		167			194			242			280			301
Short-term borrowings		3			2			3			9			9
Long-term borrowings		120			128			139			149			159

Total interest expense		290			324			384			438			469

Net interest income		868			856			831			850			845
Provision for loan losses		760			651			770			1,179			1,025

Net interest income (loss) after provision for loan losses		108			205			61			(329	)		(180	)
Non-interest income:
Service charges on deposit accounts		294			302			288			299			300
Brokerage, investment banking and capital markets		257			254			236			257			252
Mortgage income		66			63			67			46			76
Trust department income		49			49			48			48			49
Securities gains (losses), net		2			—			59			(96	)		4
Other		82			88			114			164			91

Total non-interest income		750			756			812			718			772
Non-interest expense:
Salaries and employee benefits		582			560			575			566			578
Net occupancy expense		110			110			120			114			121
Furniture and equipment expense		75			79			74			74			83
Other-than-temporary impairments		1			—			1			—			3
Regulatory charge		—			200			—			—			—
Other		395			377			460			465			458

Total non-interest expense		1,163			1,326			1,230			1,219			1,243

Income (loss) before income taxes		(305	)		(365	)		(357	)		(830	)		(651	)
Income tax benefit		(150	)		(88	)		(161	)		(287	)		(274	)

Net income (loss)	$	(155	)	$	(277	)	$	(196	)	$	(543	)	$	(377	)

Net income (loss) available to common shareholders	$	(209	)	$	(335	)	$	(255	)	$	(606	)	$	(437	)

Weighted-average shares outstanding—during quarter:
Basic		1,257			1,200			1,194			1,191			1,189
Diluted		1,257			1,200			1,194			1,191			1,189
Actual shares outstanding—end of quarter		1,256			1,256			1,192			1,193			1,188
Earnings (loss) per common share (1):
Basic	$	(0.17	)	$	(0.28	)	$	(0.21	)	$	(0.51	)	$	(0.37	)
Diluted	$	(0.17	)	$	(0.28	)	$	(0.21	)	$	(0.51	)	$	(0.37	)
Cash dividends declared per common share	$	0.01		$	0.01		$	0.01		$	0.01		$	0.01
Taxable-equivalent net interest income from continuing operations	$	876		$	863		$	839		$	857		$	853

(1)	Includes preferred stock dividends.

FINANCIAL SUPPLEMENT TO

THIRD QUARTER 2010 EARNINGS RELEASE

PAGE 4

Regions Financial Corporation and Subsidiaries

Consolidated Statements of Operations

(Unaudited)


*($ amounts in millions, except per share data)*	Nine Months Ended September 30
*($ amounts in millions, except per share data)*	2010			2009
Interest income on:
Loans, including fees	$	2,794		$	3,218
Securities:
Taxable		680			710
Tax-exempt		1			18

Total securities		681			728
Loans held for sale		27			43
Federal funds sold and securities purchased under agreements to resell		2			2
Trading account assets		29			32
Other interest-earning assets		20			21

Total interest income		3,553			4,044
Interest expense on:
Deposits		603			997
Short-term borrowings		8			45
Long-term borrowings		387			517

Total interest expense		998			1,559

Net interest income		2,555			2,485
Provision for loan losses		2,181			2,362

Net interest income after provision for loan losses		374			123
Non-interest income:
Service charges on deposit accounts		884			857
Brokerage, investment banking and capital markets		747			732
Mortgage income		196			213
Trust department income		146			143
Securities gains, net		61			165
Other		284			927

Total non-interest income		2,318			3,037
Non-interest expense:
Salaries and employee benefits		1,717			1,703
Net occupancy expense		340			340
Furniture and equipment expense		228			237
Other-than-temporary impairments (1)		2			75
Regulatory charge		200			—
Other		1,232			1,177

Total non-interest expense (2)		3,719			3,532

Income (loss) before income taxes		(1,027	)		(372	)
Income tax expense (benefit)		(399	)		116

Net income (loss)		(628	)		(488	)

Net income (loss) available to common shareholders		($799	)		($655	)

Weighted-average shares outstanding—year-to-date:
Basic		1,217			921
Diluted		1,217			921
Actual shares outstanding—end of period		1,256			1,188
Earnings (loss) per common share (3):
Basic	$	(0.66	)	$	(0.71	)
Diluted	$	(0.66	)	$	(0.71	)
Cash dividends declared per common share	$	0.03		$	0.12
Taxable equivalent net interest income from continuing operations	$	2,578		$	2,510

(1)	Includes $266 million of gross charges, net of $191 million noncredit related portion recognized in other comprehensive income (loss), in 2009. The corresponding 2010 amounts are immaterial.

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

(3)	Includes preferred stock dividends.

FINANCIAL SUPPLEMENT TO

THIRD QUARTER 2010 EARNINGS RELEASE

PAGE 5

Regions Financial Corporation and Subsidiaries

Consolidated Average Daily Balances and Yield/Rate Analysis

($ amounts in millions; yields on taxable-equivalent basis)


Quarter Ended
	9/30/10								6/30/10								3/31/10								12/31/09								9/30/09
	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	$	1,096		$	1		0.48	%	$	345		$	1		0.42	%	$	373		$	—		0.39	%	$	364		$	1		0.35	%	$	597		$	—		0.42	%
Trading account assets		1,214			9		3.05			1,186			9		3.24			1,288			13		3.99			2,827			31		4.33			1,101			10		3.59
Securities:
Taxable		23,863			214		3.56			23,862			224		3.77			23,811			242		4.11			23,061			256		4.41			19,177			232		4.79
Tax-exempt		39			—		—			41			—		—			51			1		9.35			135			2		7.42			463			8		6.52
Loans held for sale		1,213			10		3.11			1,031			9		3.29			1,392			8		2.46			1,494			12		2.99			1,522			12		3.25
Loans, net of unearned income		85,616			926		4.29			87,266			936		4.30			89,723			952		4.30			91,766			986		4.27			94,354			1,053		4.43
Other interest-earning assets		4,308			6		0.55			6,745			8		0.46			5,973			7		0.46			5,566			7		0.48			6,841			7		0.40

Total interest-earning assets		117,349			1,166		3.94			120,476			1,187		3.95			122,611			1,223		4.04			125,213			1,295		4.10			124,055			1,322		4.23
Allowance for loan losses		(3,223	)							(3,215	)							(3,144	)							(2,772	)							(2,393	)
Cash and due from banks		2,059								2,112								2,181								2,206								2,113
Other non-earning assets		17,544								17,912								17,917								16,486								16,530

	$	133,729							$	137,285							$	139,565							$	141,133							$	140,305

Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Savings accounts	$	4,517			1		0.08		$	4,478			1		0.08		$	4,215			1		0.13		$	4,064			1		0.14		$	4,038			1		0.13
Interest-bearing transaction accounts		13,606			7		0.20			15,651			8		0.21			15,709			11		0.27			14,279			11		0.29			13,934			10		0.27
Money market accounts		28,088			22		0.31			27,302			32		0.46			25,715			40		0.64			23,808			38		0.63			23,107			35		0.61
Time deposits		25,161			137		2.16			26,933			153		2.29			29,779			190		2.58			32,046			230		2.84			32,584			255		3.10

Total interest-bearing deposits (1)		71,372			167		0.93			74,364			194		1.05			75,418			242		1.30			74,197			280		1.49			73,663			301		1.62
Federal funds purchased and securities sold under agreements to repurchase		2,176			1		0.17			1,798			1		0.17			1,989			1		0.19			3,089			5		0.60			2,649			1		0.11
Other short-term borrowings		866			2		0.74			847			1		0.65			1,086			2		0.81			1,849			4		0.91			2,721			8		1.26
Long-term borrowings		14,878			120		3.20			15,933			128		3.21			17,417			139		3.24			18,326			149		3.24			18,250			159		3.45

Total interest-bearing liabilities		89,292			290		1.29			92,942			324		1.40			95,910			384		1.62			97,461			438		1.78			97,283			469		1.91

Net interest spread							2.65								2.55								2.42								2.32								2.32

Non-interest-bearing deposits (1)		23,706								23,688								22,817								22,149								21,122
Other liabilities		3,349								3,063								3,040								3,275								3,288
Stockholders’ equity		17,382								17,592								17,798								18,248								18,612

	$	133,729							$	137,285							$	139,565							$	141,133							$	140,305

Net interest income/margin FTE basis				$	876		2.96	%				$	863		2.87	%				$	839		2.77	%				$	857		2.72	%				$	853		2.73	%

(1)

Total deposit costs may be calculated by dividing total interest expense on deposits by the sum of interest-bearing deposits and non-interest bearing deposits. The rates for total deposit costs equal 0.70%, 0.79%, 1.00%, 1.15% and 1.26% for the quarters ended September 30, 2010, June 30, 2010, March 31, 2010, December 31, 2009 and September 30, 2009, respectively.

FINANCIAL SUPPLEMENT TO

THIRD QUARTER 2010 EARNINGS RELEASE

PAGE 6

Regions Financial Corporation and Subsidiaries

Consolidated Average Daily Balances and Yield/Rate Analysis

($ amounts in millions; yields on taxable equivalent basis)


	Nine Months Ended September 30
	2010								2009
	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	$	608		$	2		0.45	%	$	550		$	2		0.57	%
Trading account assets		1,229			31		3.33			1,185			34		3.80
Securities:
Taxable		23,845			680		3.81			19,263			710		4.92
Tax-exempt		43			1		3.77			570			27		6.38
Loans held for sale		1,212			27		3.03			1,709			43		3.37
Loans, net of unearned income		87,520			2,814		4.30			95,453			3,232		4.53
Other earning assets		5,669			21		0.51			7,385			21		0.38

Total interest-earning assets		120,126			3,576		3.98			126,115			4,069		4.31
Allowance for loan losses		(3,194	)							(2,061	)
Cash and due from banks		2,116								2,258
Other non-earning assets		17,790								16,995

	$	136,838							$	143,307

Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Savings accounts	$	4,404			3		0.10		$	3,958			4		0.12
Interest-bearing transaction accounts		14,981			26		0.23			14,370			30		0.28
Money market accounts		27,044			94		0.47			22,157			145		0.88
Time deposits		27,274			480		2.35			32,972			818		3.32
Other		—			—		—			417			—		0.11

Total interest-bearing deposits (1)		73,703			603		1.09			73,874			997		1.81
Federal funds purchased and securities sold under agreements to repurchase		1,988			3		0.18			3,192			7		0.30
Other short-term borrowings		932			5		0.74			6,368			38		0.80
Long-term borrowings		16,067			387		3.22			18,676			517		3.70

Total interest-bearing liabilities		92,690			998		1.44			102,110			1,559		2.04

Net interest spread							2.54								2.27

Non-interest bearing deposits (1)		23,407								20,154
Other liabilities		3,163								3,430
Stockholders’ equity		17,578								17,613

	$	136,838							$	143,307

Net interest income/margin FTE basis				$	2,578		2.87	%				$	2,510		2.66	%

(1)	Total deposit costs may be calculated by dividing total interest expense on deposits by the sum of interest-bearing deposits and non-interest bearing deposits.

The rates for total deposit costs equal 0.83% and 1.42% for the nine months ended September 30, 2010 and 2009, respectively.

FINANCIAL SUPPLEMENT TO

THIRD QUARTER 2010 EARNINGS RELEASE

PAGE 7

Regions Financial Corporation and Subsidiaries

Selected Ratios


	As of and for Quarter Ended
	9/30/10			6/30/10			3/31/10			12/31/09			9/30/09
Return on average assets (non-GAAP)*		(0.62	%)		(0.98	%)		(0.74	%)		(1.70	%)		(1.24	%)
Return on average assets, excluding regulatory charge (non-GAAP)*		(0.62	%)		(0.40	%)		(0.74	%)		(1.70	%)		(1.24	%)
Return on average common equity*		(5.91	%)		(9.62	%)		(7.28	%)		(16.40	%)		(11.55	%)
Return on average tangible common equity (non-GAAP)*		(10.31	%)		(16.89	%)		(12.69	%)		(28.03	%)		(19.48	%)
Return on average tangible common equity, excluding regulatory charge (non-GAAP)*		(10.31	%)		(6.82	%)		(12.69	%)		(28.03	%)		(19.48	%)
Efficiency Ratio (non-GAAP) (4)		71.6	%		69.5	%		74.3	%		75.4	%		74.1	%
Common equity per share	$	10.98		$	11.23		$	11.77		$	11.97		$	12.53
Tangible common book value per share (non-GAAP)	$	6.22		$	6.45		$	6.71		$	6.89		$	7.40
Stockholders’ equity to total assets		12.86	%		12.90	%		12.85	%		12.56	%		13.21	%
Tangible common stockholders’ equity to tangible assets (non-GAAP)		6.13	%		6.26	%		6.09	%		6.03	%		6.56	%
Tier 1 Common risk-based ratio (non-GAAP) (1)		7.6	%		7.7	%		7.1	%		7.1	%		7.9	%
Tier 1 Capital (1)		12.1	%		12.0	%		11.7	%		11.5	%		12.2	%
Total Risk-Based Capital (1)		16.0	%		15.9	%		15.8	%		15.8	%		16.3	%
Allowance for credit losses as a percentage of loans, net of unearned income (2)		3.86	%		3.79	%		3.69	%		3.52	%		2.90	%
Allowance for loan losses as a percentage of loans, net of unearned income		3.77	%		3.71	%		3.61	%		3.43	%		2.83	%
Allowance for loan losses to non-performing loans (3)		0.94	x		0.92	x		0.86	x		0.89	x		0.82	x
Net interest margin (FTE)		2.96	%		2.87	%		2.77	%		2.72	%		2.73	%
Loans, net of unearned income, to total deposits		88.9	%		89.3	%		89.7	%		91.9	%		97.8	%
Net charge-offs as a percentage of average loans*		3.52	%		2.99	%		3.16	%		2.99	%		2.86	%
Non-performing assets (excluding loans 90 days past due) as a percentage of loans and other real estate		4.98	%		4.94	%		5.15	%		4.83	%		4.40	%
Non-performing assets (excluding loans 90 days past due) as a percentage of loans and other real estate (3)		4.52	%		4.65	%		4.86	%		4.49	%		3.99	%
Non-performing assets (including loans 90 days past due) as a percentage of loans and other real estate		5.68	%		5.65	%		5.94	%		5.59	%		5.08	%
Non-performing assets (including loans 90 days past due) as a percentage of loans and other real estate (3)		5.21	%		5.35	%		5.65	%		5.24	%		4.68	%

*	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

(4)	Efficiency ratio is shown on an operating basis and excludes adjustments as noted on page 27 in the Reconciliation to GAAP Financial Measures schedule

FINANCIAL SUPPLEMENT TO

THIRD QUARTER 2010 EARNINGS RELEASE

PAGE 8

Loans


Loan Portfolio - Period End Data

*($ amounts in millions)*	9/30/10		6/30/10		3/31/10		12/31/09		9/30/09		9/30/10 vs. 6/30/10					9/30/10 vs. 9/30/09
Commercial and industrial	$	21,501	$	21,096	$	21,220	$	21,547	$	21,925	$	405		1.9	%	$	(424	)	-1.9	%
Commercial real estate mortgage - owner-occupied		11,850		11,967		12,028		12,054		12,103		(117	)	-1.0	%		(253	)	-2.1	%
Commercial real estate construction - owner-occupied		522		547		598		751		875		(25	)	-4.6	%		(353	)	-40.3	%

Total commercial		33,873		33,610		33,846		34,352		34,903		263		0.8	%		(1,030	)	-3.0	%
Commercial investor real estate mortgage		14,489		15,152		15,702		16,109		16,190		(663	)	-4.4	%		(1,701	)	-10.5	%
Commercial investor real estate construction		2,975		3,778		4,703		5,591		6,616		(803	)	-21.3	%		(3,641	)	-55.0	%

Total investor real estate		17,464		18,930		20,405		21,700		22,806		(1,466	)	-7.7	%		(5,342	)	-23.4	%
Residential first mortgage		15,723		15,567		15,592		15,632		15,513		156		1.0	%		210		1.4	%
Home equity		14,534		14,802		15,066		15,381		15,630		(268	)	-1.8	%		(1,096	)	-7.0	%
Indirect		1,657		1,900		2,162		2,452		2,755		(243	)	-12.8	%		(1,098	)	-39.9	%
Other consumer		1,169		1,136		1,103		1,157		1,147		33		2.9	%		22		1.9	%

	$	84,420	$	85,945	$	88,174	$	90,674	$	92,754	$	(1,525	)	-1.8	%	$	(8,334	)	-9.0	%


Loan Portfolio - Average Balances

*($ amounts in millions)*	3Q10		2Q10		1Q10		4Q09		3Q09		3Q10 vs. 2Q10					3Q10 vs. 3Q09
Commercial and industrial	$	21,313	$	21,109	$	21,429	$	21,570	$	22,443	$	204		1.0	%	$	(1,130	)	-5.0	%
Commercial real estate mortgage - owner-occupied		11,944		12,005		12,056		12,127		12,188		(61	)	-0.5	%		(244	)	-2.0	%
Commercial real estate construction - owner-occupied		516		563		686		819		944		(47	)	-8.3	%		(428	)	-45.3	%

Total commercial		33,773		33,677		34,171		34,516		35,575		96		0.3	%		(1,802	)	-5.1	%
Commercial investor real estate mortgage		15,090		15,586		16,220		16,292		16,470		(496	)	-3.2	%		(1,380	)	-8.4	%
Commercial investor real estate construction		3,477		4,340		5,071		6,145		7,010		(863	)	-19.9	%		(3,533	)	-50.4	%

Total investor real estate		18,567		19,926		21,291		22,437		23,480		(1,359	)	-6.8	%		(4,913	)	-20.9	%
Residential first mortgage		15,632		15,537		15,567		15,521		15,508		95		0.6	%		124		0.8	%
Home equity		14,684		14,947		15,237		15,515		15,714		(263	)	-1.8	%		(1,030	)	-6.6	%
Indirect		1,776		2,028		2,310		2,601		2,923		(252	)	-12.4	%		(1,147	)	-39.2	%
Other consumer		1,184		1,151		1,147		1,176		1,154		33		2.9	%		30		2.6	%

	$	85,616	$	87,266	$	89,723	$	91,766	$	94,354	$	(1,650	)	-1.9	%	$	(8,738	)	-9.3	%

FINANCIAL SUPPLEMENT TO

THIRD QUARTER 2010 EARNINGS RELEASE

PAGE 9

Deposits


Deposit Portfolio - Period End Data

*($ amounts in millions)*	9/30/10		6/30/10		3/31/10		12/31/09		9/30/09		9/30/10 vs. 6/30/10					9/30/10 vs. 9/30/09
Customer Deposits
Interest-free deposits	$	25,300	$	22,993	$	23,391	$	23,204	$	21,226	$	2,307		10.0	%	$	4,074		19.2	%
Interest-bearing checking		12,409		15,148		15,715		15,791		13,688		(2,739	)	-18.1	%		(1,279	)	-9.3	%
Savings		4,544		4,475		4,394		4,073		4,025		69		1.5	%		519		12.9	%
Money market - domestic		27,983		26,773		26,196		23,291		22,327		1,210		4.5	%		5,656		25.3	%
Money market - foreign		509		502		635		766		941		7		1.4	%		(432	)	-45.9	%

Low-cost deposits		70,745		69,891		70,331		67,125		62,207		854		1.2	%		8,538		13.7	%
Time deposits		24,177		26,298		27,939		31,468		32,582		(2,121	)	-8.1	%		(8,405	)	-25.8	%

Total customer deposits		94,922		96,189		98,270		98,593		94,789		(1,267	)	-1.3	%		133		0.1	%

Corporate Treasury Deposits
Time deposits		56		61		62		87		91		(5	)	-8.2	%		(35	)	-38.5	%

Total Deposits	$	94,978	$	96,250	$	98,332	$	98,680	$	94,880	$	(1,272	)	-1.3	%	$	98		0.1	%


Deposit Portfolio - Average Balances

*($ amounts in millions)*	3Q10		2Q10		1Q10		4Q09		3Q09		3Q10 vs. 2Q10					3Q10 vs. 3Q09
Customer Deposits
Interest-free deposits	$	23,706	$	23,688	$	22,817	$	22,149	$	21,122	$	18		0.1	%	$	2,584		12.2	%
Interest-bearing checking		13,606		15,651		15,709		14,279		13,934		(2,045	)	-13.1	%		(328	)	-2.4	%
Savings		4,517		4,478		4,215		4,064		4,038		39		0.9	%		479		11.9	%
Money market - domestic		27,574		26,670		24,961		22,956		22,103		904		3.4	%		5,471		24.8	%
Money market - foreign		514		632		754		852		1,004		(118	)	-18.7	%		(490	)	-48.8	%

Low-cost deposits		69,917		71,119		68,456		64,300		62,201		(1,202	)	-1.7	%		7,716		12.4	%
Time deposits		25,100		26,872		29,707		31,961		32,481		(1,772	)	-6.6	%		(7,381	)	-22.7	%

Total customer deposits		95,017		97,991		98,163		96,261		94,682		(2,974	)	-3.0	%		335		0.4	%

Corporate Treasury Deposits
Time deposits		61		61		72		85		103		—		NM			(42	)	-40.8	%

Total Deposits	$	95,078	$	98,052	$	98,235	$	96,346	$	94,785	$	(2,974	)	-3.0	%	$	293		0.3	%

FINANCIAL SUPPLEMENT TO

THIRD QUARTER 2010 EARNINGS RELEASE

PAGE 10

Pre-Tax Pre-Provision Net Revenue (“PPNR”) and Adjusted PPNR (non-GAAP)

The table below presents computations of pre-tax pre-provision net revenue excluding certain adjustments (non-GAAP). Regions believes that the exclusion of these adjustments 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. It is possible that the activities related to the adjustments may recur; however, management does not consider the activities related to the adjustments to be indications of ongoing operations. Regions believes that presentation of these non-GAAP financial measures will permit investors to assess the performance of the Company on the same basis as that applied by management. 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 certain adjustments does not represent the amount that effectively accrues directly to stockholders.


*($ amounts in millions)*	3Q10			2Q10		1Q10			4Q09			3Q09			3Q10 vs. 2Q10					3Q10 vs. 3Q09
Net Interest Income (GAAP)	$	868		$	856	$	831		$	850		$	845		$	12		1.4	%	$	23		2.7	%
Non-Interest Income (GAAP)		750			756		812			718			772			(6	)	-0.8	%		(22	)	-2.8	%

Total Revenue (GAAP)		1,618			1,612		1,643			1,568			1,617			6		0.4	%		1		0.1	%
Non-Interest Expense (GAAP)		1,163			1,326		1,230			1,219			1,243			(163	)	-12.3	%		(80	)	-6.4	%

Pre-tax Pre-provision Net Revenue (GAAP)	$	455		$	286	$	413		$	349		$	374			169		59.1	%		81		21.7	%
Adjustments:
Regulatory charge		—			200		—			—			—			(200	)	NM			—		NM
Securities (gains) losses, net		(2	)		—		(59	)		96			(4	)		(2	)	NM			2		-50.0	%
Leveraged lease termination gains		—			—		(19	)		(71	)		(4	)		—		NM			4		NM
Loss (gain) on extinguishment of debt		—			—		53			—			—			—		NM			—		NM
Securities impairment, net		1			—		1			—			3			1		NM			(2	)	NM
Branch consolidation costs (1)		—			—		8			12			41			—		NM			(41	)	NM

Total adjustments		(1	)		200		(16	)		37			36			(201	)	-100.5	%		(37	)	-102.8	%

Adjusted PPNR (non-GAAP)	$	454		$	486	$	397		$	386		$	410		$	(32	)	-6.6	%	$	44		10.7	%

(1)

Includes $7 million of net occupancy expense and $1 million in valuation charges in 1Q10; $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 and equipment expense and $25 million in valuation charges in 3Q09.

Categorization of Income related to

Mortgage Servicing Rights (MSRs) (2)


*($ amounts in millions)*	3Q10		2Q10		1Q10		4Q09			3Q09		3Q10 vs. 2Q10					3Q10 vs. 3Q09
Net interest income (3)	$	—	$	—	$	3	$	20		$	—		—		NM			—		NM
Brokerage, investment banking and capital markets (4)		—		—		4		5			—		—		NM			—		NM
Mortgage income (5)		2		12		16		(4	)		19		(10	)	-83.3	%		(17	)	-89.5	%

	$	2	$	12	$	23	$	21		$	19		(10	)	-83.3	%		(17	)	-89.5	%

(2)	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.

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

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

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

FINANCIAL SUPPLEMENT TO

THIRD QUARTER 2010 EARNINGS RELEASE

PAGE 11

Non-Interest Income and Expense

Non-Interest Income


*($ amounts in millions)*	3Q10		2Q10		1Q10		4Q09			3Q09		3Q10 vs. 2Q10					3Q10 vs. 3Q09
Service charges on deposit accounts	$	294	$	302	$	288	$	299		$	300	$	(8	)	-2.6	%	$	(6	)	-2.0	%
Brokerage, investment banking and capital markets		257		254		236		257			252		3		1.2	%		5		2.0	%
Mortgage income		66		63		67		46			76		3		4.8	%		(10	)	-13.2	%
Trust department income		49		49		48		48			49		—		0.0	%		—		0.0	%
Securities gains (losses), net		2		—		59		(96	)		4		2		NM			(2	)	NM
Insurance income		25		26		27		25			25		(1	)	-3.8	%		—		0.0	%
Leveraged lease termination gains		—		—		19		71			4		—		—			(4	)	NM
Other		57		62		68		68			62		(5	)	-8.1	%		(5	)	-8.1	%

Total non-interest income	$	750	$	756	$	812	$	718		$	772	$	(6	)	-0.8	%	$	(22	)	-2.8	%

Non-Interest Expense
*($ amounts in millions)*	3Q10		2Q10		1Q10		4Q09			3Q09		3Q10 vs. 2Q10					3Q10 vs. 3Q09
Salaries and employee benefits	$	582	$	560	$	575	$	566		$	578	$	22		3.9	%	$	4		0.7	%
Net occupancy expense		110		110		120		114			121		—		0.0	%		(11	)	-9.1	%
Furniture and equipment expense		75		79		74		74			83		(4	)	-5.1	%		(8	)	-9.6	%
Professional and legal fees		71		75		66		108			98		(4	)	-5.3	%		(27	)	-27.6	%
Marketing expense		22		18		15		18			20		4		22.2	%		2		10.0	%
Amortization of core deposit intangible		27		27		28		29			30		—		0.0	%		(3	)	-10.0	%
Other real estate owned expense		65		41		42		64			61		24		58.5	%		4		6.6	%
Other-than-temporary impairments, net		1		—		1		—			3		1		NM			(2	)	NM
FDIC premiums		51		58		59		54			56		(7	)	-12.1	%		(5	)	-8.9	%
Valuation charges associated with branch consolidations		—		—		1		3			25		—		—			(25	)	NM
Loss on early extinguishment of debt		—		—		53		—			—		—		—			—		—
Regulatory charge		—		200		—		—			—		(200	)	NM			—		—
Other		159		158		196		189			168		1		0.6	%		(9	)	-5.4	%

Total non-interest expense	$	1,163	$	1,326	$	1,230	$	1,219		$	1,243	$	(163	)	-12.3	%	$	(80	)	-6.4	%

•	Non-interest revenues decreased 1% linked quarter, primarily driven lower by impact from Regulation E

•	Service charge income declined $8 million or 3% linked quarter, as revenue was impacted by changes associated with Regulation E, which was fully implemented in the third quarter

•

•	Brokerage income increased $3 million to $257 million, driven by an increase in fixed income capital markets activity

•	Mortgage income increased $3 million linked quarter, driven by a record number of mortgage originations as customers took advantage of low rates and refinanced. Origination volumes increased approximately $575 million to $2.4 billion in the third quarter.

•	Non-interest expenses, as adjusted for prior quarter’s regulatory charge, increased $37 million, or 3 percent linked quarter due to a rise in credit-related costs

•	Salaries and benefits expense increased 4% linked quarter, driven by higher deferred compensation costs

•	Professional and legal fees declined $4 million linked quarter, although they remain elevated and continue to be impacted by Morgan Keegan litigation and credit-related costs

•	Other real estate owned (“OREO”) expense and gains/losses on loans held for sale (included in other non-interest expense) increased $31 million linked quarter, which reflected approximately $30 million in losses related to the bulk sale of undeveloped land

FINANCIAL SUPPLEMENT TO

THIRD QUARTER 2010 EARNINGS RELEASE

PAGE 12

Morgan Keegan

Summary Income Statement (1)


*($ amounts in millions)*	3Q10		2Q10			1Q10		4Q09		3Q09		3Q10 vs. 2Q10					3Q10 vs. 3Q09
Net interest income (3)	$	15	$	15		$	14	$	14	$	14	$	—		0.0	%	$	1		7.1	%
Non-interest income		309		292			297		320		316		17		5.8	%		(7	)	-2.2	%
Non-interest expense		289		275			272		305		284		14		5.1	%		5		1.8	%
Regulatory charge		—		200			—		—		—		(200	)	NM			—		—

Pre-tax Income		35		(168	)		39		29		46		203		NM			(11	)	—
Income tax expense (benefit)		13		(12	)		14		11		17		25		-208.3	%		(4	)	-23.5	%

Net income (loss)	$	22	$	(180	)	$	25	$	18	$	29		202		-112.2	%		(7	)	-24.1	%

Breakout of Revenue by Division (2)


*($ amounts in millions)*	Private Client			Fixed- Income Capital Markets			Equity Capital Markets			Investment Banking			Regions MK Trust			Asset Management			Interest & Other
Three months ended September 30, 2010
$ amount of revenue	$	119		$	89		$	12		$	32		$	54		$	3		$	19
% of gross revenue		36.3	%		27.1	%		3.7	%		9.8	%		16.5	%		0.9	%		5.7	%
Three months ended June 30, 2010
$ amount of revenue	$	119		$	79		$	15		$	35		$	52		$	5		$	5
% of gross revenue		38.4	%		25.5	%		4.8	%		11.3	%		16.8	%		1.6	%		1.6	%
Nine months ended September 30, 2010
$ amount of revenue	$	352		$	240		$	40		$	94		$	155		$	12		$	59
% of gross revenue		37.0	%		25.2	%		4.2	%		9.9	%		16.3	%		1.3	%		6.1	%
Nine months ended September 30, 2009
$ amount of revenue	$	305		$	269		$	44		$	68		$	148		$	36		$	74
% of gross revenue		32.3	%		28.5	%		4.7	%		7.2	%		15.7	%		3.8	%		7.8	%

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

(2)	“Breakout of Revenue by Division” has been adjusted to reflect changes in the company’s reporting structure

(3)	Net interest income in the Summary Income Statement is illustrated on a net basis, whereas the Breakout of Revenue by Division, revenue is illustrated on a gross basis. 3Q10, 2Q10, 1Q10, 4Q09 and 3Q09 in the Summary Income Statement exclude $3 million each quarter of gross interest income.

•

Morgan Keegan’s Fixed Income Capital Markets continues to be benefited by the lower interest rate environment as its depository customers purchased short-term securities in order to deploy some of their excess cash on hand.

•

Under a new leadership team, Investment Banking division has seen its revenue increase 38% on a year-to-date comparison versus the prior year. The primary driver of the increase has been success within its specialized industries, such as Healthcare and Technology.

FINANCIAL SUPPLEMENT TO

THIRD QUARTER 2010 EARNINGS RELEASE

PAGE 13

Credit Quality


Credit Quality

	As of and for Quarter Ended
*($ amounts in millions)*	9/30/10			6/30/10			3/31/10			12/31/09			9/30/09
Allowance for credit losses (ACL)	$	3,256		$	3,256		$	3,250		$	3,188		$	2,690
Provision for loan losses		760			651			770			1,179			1,025
Provision for unfunded credit losses		—			5			(8	)		10			10
Net loans charged-off:*
Commercial and industrial		89			87			92			76			137
Commercial real estate mortgage - owner-occupied		64			39			32			38			17
Commercial real estate construction - owner-occupied		3			3			14			9			2

Total commercial		156			129			138			123			156
Commercial investor real estate mortgage		254			203			207			210			196
Commercial investor real estate construction		171			133			150			159			148

Total investor real estate		425			336			357			369			344
Residential first mortgage		58			61			62			55			57
Home equity		102			106			116			113			94
Indirect		3			4			8			10			10
Other consumer		15			15			19			22			19

Total	$	759		$	651		$	700		$	692		$	680

Net loan charge-offs as a % of average loans, annualized *
Commercial and industrial		1.66	%		1.65	%		1.74	%		1.39	%		2.43	%
Commercial real estate mortgage - owner-occupied		2.12	%		1.28	%		1.09	%		1.26	%		0.55	%
Commercial real estate construction - owner-occupied		1.95	%		2.17	%		8.41	%		4.45	%		0.88	%

Total commercial		1.83	%		1.53	%		1.64	%		1.41	%		1.73	%
Commercial investor real estate mortgage		6.67	%		5.22	%		5.17	%		5.11	%		4.74	%
Commercial investor real estate construction		19.57	%		12.33	%		12.00	%		10.26	%		8.40	%

Total investor real estate		9.09	%		6.77	%		6.80	%		6.52	%		5.83	%
Residential first mortgage		1.48	%		1.58	%		1.63	%		1.40	%		1.45	%
Home equity		2.74	%		2.84	%		3.07	%		2.89	%		2.37	%
Indirect		0.64	%		0.72	%		1.38	%		1.58	%		1.46	%
Other consumer		5.03	%		5.23	%		6.68	%		7.37	%		6.21	%

Total		3.52	%		2.99	%		3.16	%		2.99	%		2.86	%

Non-accrual loans, excluding loans held for sale	$	3,372		$	3,473		$	3,706		$	3,488		$	3,216
Foreclosed properties		461			546			610			607			503

Non-performing assets, excluding loans held for sale	$	3,833		$	4,019		$	4,316		$	4,095		$	3,719
Non-performing loans held for sale		393			256			256			317			380

Non-performing assets (NPAs)	$	4,226		$	4,275		$	4,572		$	4,412		$	4,099

Loans past due > 90 days*	$	593		$	612		$	700		$	688		$	643
Commercial loans restructured not included in categories above	$	173		$	47		$	48		$	25		$	16
Consumer loans restructured not included in categories above**	$	1,126		$	1,192		$	1,258		$	1,583		$	1,400

Total restructured loans not included in categories above	$	1,299		$	1,239		$	1,306		$	1,608		$	1,416

Credit Ratios:
ACL/Loans, net		3.86	%		3.79	%		3.69	%		3.52	%		2.90	%
ALL/Loans, net		3.77	%		3.71	%		3.61	%		3.43	%		2.83	%
Allowance for loan losses to non-performing loans - excludes loans held for sale		0.94x			0.92x			0.86x			0.89x			0.82x
NPAs (ex. 90+ past due)/Loans and foreclosed properties		4.98	%		4.94	%		5.15	%		4.83	%		4.40	%
NPAs (ex. 90+ past due)/Loans and foreclosed properties - excludes loans held for sale		4.52	%		4.65	%		4.86	%		4.49	%		3.99	%
NPAs (inc. 90+ past due)/Loans and foreclosed properties		5.68	%		5.65	%		5.94	%		5.59	%		5.08	%
NPAs (inc. 90+ past due)/Loans and foreclosed properties - excludes loans held for sale		5.21	%		5.35	%		5.65	%		5.24	%		4.68	%

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

**	At 9/30/10, 66 percent of consumer loans restructured not included in categories above consist of residential first mortgages.


Allowance for Credit Losses

*($ amounts in millions)*	Nine Months Ended September 30
*($ amounts in millions)*	2010			2009
Balance at beginning of year	$	3,188		$	1,900
Net loans charged-off		(2,110	)		(1,561	)
Provision for loan losses		2,181			2,362
Provision for unfunded credit commitments		(3	)		(11	)

Balance at end of period	$	3,256		$	2,690

Components:
Allowance for loan losses	$	3,185		$	2,627
Reserve for unfunded credit commitments		71			63

Allowance for credit losses	$	3,256		$	2,690

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THIRD QUARTER 2010 EARNINGS RELEASE

PAGE 14

Total Loan Portfolio


	3Q2010					2Q2010					1Q2010					4Q2009					3Q2009
($ millions)	$		% Total			$		% Total			$		% Total			$		% Total			$		% Total
Commercial and Industrial		21,501		25.5	%		21,096		24.6	%		21,220		24.1	%		21,547		23.8	%		21,925		23.6	%
Commercial Real Estate Mortgage - OO		11,850		14.0	%		11,967		13.9	%		12,028		13.6	%		12,054		13.3	%		12,103		13.0	%
Commercial Real Estate Construction - OO		522		0.6	%		547		0.6	%		598		0.7	%		751		0.8	%		875		0.9	%

Total Commercial		33,873		40.1	%		33,610		39.1	%		33,846		38.4	%		34,352		37.9	%		34,903		37.6	%

Commercial Investor Real Estate Mortgage		14,489		17.2	%		15,152		17.6	%		15,702		17.8	%		16,109		17.8	%		16,190		17.5	%
Commercial Investor Real Estate Construction		2,975		3.5	%		3,778		4.4	%		4,703		5.3	%		5,591		6.2	%		6,616		7.1	%

Total Investor Real Estate		17,464		20.7	%		18,930		22.0	%		20,405		23.1	%		21,700		23.9	%		22,806		24.6	%

Residential First Mortgage		15,723		18.6	%		15,567		18.1	%		15,592		17.7	%		15,632		17.2	%		15,513		16.7	%
Home Equity		14,534		17.2	%		14,802		17.2	%		15,066		17.1	%		15,381		17.0	%		15,630		16.9	%
Direct		828		1.0	%		799		0.9	%		774		0.9	%		783		0.9	%		797		0.9	%
Indirect		1,657		2.0	%		1,900		2.2	%		2,162		2.5	%		2,452		2.7	%		2,755		3.0	%
Other Consumer		341		0.4	%		337		0.4	%		329		0.4	%		374		0.4	%		350		0.4	%

Total Consumer		33,083		39.2	%		33,405		38.9	%		33,923		38.5	%		34,622		38.2	%		35,045		37.8	%

Total Loans		84,420		100.0	%		85,945		100.0	%		88,174		100.0	%		90,674		100.0	%		92,754		100.0	%

OO = Owner Occupied

IRE = Investor Real Estate

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Net Charge-Offs


	3Q2010					2Q2010					1Q2010					4Q2009					3Q2009
($ millions)	$		%			$		%			$		%			$		%			$		%
Commercial and Industrial		89		1.66	%		87		1.65	%		92		1.74	%		76		1.39	%		137		2.43	%
Commercial Real Estate Mortgage - OO		64		2.12	%		39		1.28	%		32		1.09	%		38		1.26	%		17		0.55	%
Commercial Real Estate Construction - OO		3		1.95	%		3		2.17	%		14		8.41	%		9		4.45	%		2		0.88	%

Total Commercial		156		1.83	%		129		1.53	%		138		1.64	%		123		1.41	%		156		1.73	%

Commercial Investor Real Estate Mortgage		254		6.67	%		203		5.22	%		207		5.17	%		210		5.11	%		196		4.74	%
Commercial Investor Real Estate Construction		171		19.57	%		133		12.33	%		150		12.00	%		159		10.26	%		148		8.40	%

Total Investor Real Estate		425		9.09	%		336		6.77	%		357		6.80	%		369		6.52	%		344		5.83	%

Residential First Mortgage		58		1.48	%		61		1.58	%		62		1.63	%		55		1.40	%		57		1.45	%
Home Equity		102		2.74	%		106		2.84	%		116		3.07	%		113		2.89	%		94		2.37	%
Direct		2		1.18	%		3		1.51	%		4		1.85	%		4		2.07	%		5		2.47	%
Indirect		3		0.64	%		4		0.72	%		8		1.38	%		10		1.58	%		10		1.46	%
Other Consumer		13		13.84	%		12		13.47	%		15		16.90	%		18		18.46	%		14		15.61	%

Total Consumer		178		2.13	%		186		2.22	%		205		2.42	%		200		2.28	%		180		2.03	%

Total Net Charge-Offs		759		3.52	%		651		2.99	%		700		3.16	%		692		2.99	%		680		2.86	%

OO = Owner Occupied

IRE = Investor Real Estate

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90+ Days Past Due Loans


	3Q2010					2Q2010					1Q2010					4Q2009					3Q2009
($ millions)	$		%			$		%			$		%			$		%			$		%
Commercial and Industrial		5		0.03	%		7		0.03	%		24		0.11	%		24		0.11	%		13		0.06	%
Commercial Real Estate Mortgage - OO		6		0.05	%		4		0.04	%		6		0.05	%		16		0.13	%		12		0.10	%
Commercial Real Estate Construction - OO		—		0.00	%		—		0.00	%		—		0.00	%		2		0.24	%		1		0.10	%

Total Commercial		11		0.03	%		11		0.03	%		30		0.09	%		42		0.12	%		26		0.07	%

Commercial Investor Real Estate Mortgage		6		0.04	%		26		0.17	%		42		0.27	%		22		0.14	%		29		0.18	%
Commercial Investor Real Estate Construction		2		0.05	%		4		0.10	%		6		0.14	%		8		0.14	%		11		0.16	%

Total Investor Real Estate		8		0.04	%		30		0.16	%		48		0.24	%		30		0.14	%		40		0.18	%

Residential First Mortgage		369		2.35	%		349		2.24	%		365		2.34	%		361		2.31	%		345		2.23	%
Home Equity		198		1.36	%		215		1.45	%		249		1.65	%		241		1.57	%		222		1.42	%
Direct		2		0.21	%		1		0.14	%		1		0.17	%		2		0.30	%		2		0.22	%
Indirect		2		0.14	%		3		0.12	%		3		0.16	%		6		0.24	%		4		0.16	%
Other Consumer		3		0.79	%		3		0.90	%		4		1.20	%		6		1.34	%		4		1.07	%

Total Consumer		574		1.74	%		571		1.71	%		622		1.83	%		616		1.78	%		577		1.65	%

Total 90+ Days Past Due Loans		593		0.70	%		612		0.71	%		700		0.79	%		688		0.76	%		643		0.69	%

OO = Owner Occupied

IRE = Investor Real Estate

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Non-Accrual Loans (excludes loans held for sale)


	3Q2010					2Q2010					1Q2010					4Q2009					3Q2009
($ millions)	$		%			$		%			$		%			$		%			$		%
Total Commercial & Industrial		502		2.33	%		479		2.27	%		517		2.43	%		427		1.98	%		381		1.73	%
Total Commercial Real Estate Mortgage - OO		616		5.20	%		680		5.68	%		623		5.18	%		560		4.65	%		450		3.72	%
Total Commercial Real Estate Construction - OO		35		6.65	%		37		6.77	%		38		6.47	%		50		6.69	%		47		5.33	%

Total Commercial		1,153		3.40	%		1,196		3.56	%		1,178		3.48	%		1,037		3.02	%		878		2.52	%

Total Commercial Investor Real Estate Mortgage		1,347		9.30	%		1,286		8.49	%		1,343		8.55	%		1,203		7.47	%		1,184		7.31	%
Total Commercial Investor Real Estate Construction		561		18.87	%		754		19.94	%		986		20.97	%		1,067		19.07	%		992		14.99	%

Total Investor Real Estate		1,908		10.93	%		2,040		10.77	%		2,329		11.41	%		2,270		10.46	%		2,176		9.54	%

Residential First Mortgage		267		1.70	%		212		1.36	%		199		1.28	%		180		1.15	%		162		1.05	%
Home Equity		44		0.30	%		25		0.17	%		—		0.00	%		1		0.00	%		—		0.00	%
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		311		0.94	%		237		0.71	%		199		0.59	%		181		0.52	%		162		0.46	%

Total Non-Accrual Loans		3,372		3.99	%		3,473		4.04	%		3,706		4.20	%		3,488		3.85	%		3,216		3.47	%

OO = Owner Occupied

IRE = Investor Real Estate

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THIRD QUARTER 2010 EARNINGS RELEASE

PAGE 18

Total Loan Portfolio $84.4bn

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FINANCIAL SUPPLEMENT TO

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PAGE 19

Investor Real Estate Portfolio is Well Diversified

21% of Total Portfolio

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*	Other includes states with exposure of less than 2%

FINANCIAL SUPPLEMENT TO

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Investor Real Estate

Multi Family Properties: Geographic Diversification and Lower Loss Severity

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FINANCIAL SUPPLEMENT TO

THIRD QUARTER 2010 EARNINGS RELEASE

PAGE 21

Investor Real Estate

Retail Properties: Geographic Diversification and Lower Loss Severity

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THIRD QUARTER 2010 EARNINGS RELEASE

PAGE 22

Home Equity Lending Net Charge-off Analysis


		3Q10									2Q10									1Q10									4Q09									3Q09
($ 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 %*		2.37	%		6.83	%		5.09	%		3.12	%		7.10	%		5.57	%		2.92	%		7.96	%		6.04	%		3.17	%		7.47	%		5.83	%		2.19	%		6.33	%		4.77	%
	$ Losses	$	12.6		$	56.6		$	69.2		$	16.5		$	59.7		$	76.2		$	15.4		$	68.2		$	83.6		$	17.4		$	66.4		$	83.8		$	12.1		$	57.4		$	69.5
	Balance	$	2,090.0		$	3,253.6		$	5,343.6		$	2,098.0		$	3,333.3		$	5,431.3		$	2,126.5		$	3,424.9		$	5,551.4		$	2,169.7		$	3,485.5		$	5,655.2		$	2,181.0		$	3,570.4		$	5,751.4
	Original LTV		65.0	%		75.4	%		71.3	%		65.7	%		76.1	%		72.1	%
All Other States	Net Charge-off %*		0.98	%		1.71	%		1.38	%		0.75	%		1.67	%		1.26	%		0.74	%		1.85	%		1.35	%		0.93	%		1.39	%		1.18	%		0.56	%		1.33	%		0.98	%
	$ Losses	$	10.5		$	21.8		$	32.3		$	8.0		$	21.6		$	29.6		$	7.9		$	24.0		$	31.9		$	10.4		$	18.8		$	29.2		$	6.2		$	18.3		$	24.5
	Balance	$	4,187.6		$	5,002.4		$	9,190.0		$	4,250.3		$	5,120.4		$	9,370.7		$	4,306.0		$	5,208.4		$	9,514.4		$	4,394.8		$	5,330.6		$	9,725.4		$	4,451.0		$	5,428.0		$	9,879.0
	Original LTV		66.9	%		79.2	%		73.5	%		67.7	%		79.8	%		74.2	%
Totals	Net Charge-off %*		1.45	%		3.72	%		2.74	%		1.53	%		3.81	%		2.84	%		1.46	%		4.27	%		3.07	%		1.67	%		3.79	%		2.89	%		1.09	%		3.32	%		2.37	%
	$ Losses	$	23.1		$	78.4		$	101.5		$	24.5		$	81.3		$	105.8		$	23.3		$	92.2		$	115.5		$	27.8		$	85.2		$	113.0		$	18.3		$	75.7		$	94.0
	Balance	$	6,277.6		$	8,256.0		$	14,533.6		$	6,348.3		$	8,453.7		$	14,802.0		$	6,432.5		$	8,633.3		$	15,065.8		$	6,564.5		$	8,816.1		$	15,380.6		$	6,632.0		$	8,998.4		$	15,630.4
	Original LTV		66.2	%		77.6	%		72.6	%

*	22% Florida second lien concentration driving results

*	Second lien, Florida net charge-offs represent 56% of 3Q10 net charge-offs but just 22% of outstanding balances.

*	Net charge-offs in Florida approximately 3.7 times non-Florida net charge-off rate

*	Origination quality solid with an average FICO of 779 and an average LTV of 63%; Property value declines driving losses

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Notes:

* Recoveries are pro-rated based on charge-off 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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PAGE 23

Credit Costs Remain Elevated


(in millions)	3Q09		4Q09		1Q10		2Q10			3Q10
Net Charge-offs
IRE Valuation Losses	$	191	$	215	$	198	$	142		$	132
Investor Real Estate (IRE)		45		55		59		74			73
Commercial		136		107		128		117			143
Consumer Real Estate		150		168		177		167			160
Other Consumer		30		32		28		19			18

Net Charge-offs excluding charge-offs from Sales / Transfers to HFS		552		577		590		519			526
Sales/Transfer to HFS		128		115		110		132			233

Total Net Charge-offs	$	680	$	692	$	700	$	651		$	759

Net Loss / (Gain) - HFS Sales		1		2		6		(9	)		(2	)
HFS Write-downs (1)		9		9		10		5			7
OREO expense		61		65		42		40			65

Total Credit Costs	$	751	$	768	$	758	$	687		$	829

⁽¹⁾	Reflects write-downs subsequent to initial move to held for sale and write-downs upon transfer to OREO

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PAGE 24

Elevated Gross NPA Migration

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•

Non-Performing Asset migration remains elevated. Quarter over quarter, the gross migration increased 61% as a result of higher Land/Condo/Single Family and Income Producing CRE NPA inflow.

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PAGE 25

Gross and Net NPA Migration Elevated


($ in millions)	3Q 2009			4Q 2009			1Q 2010			2Q 2010			3Q 2010
Beginning Non-Performing Assets¹	$	3,057		$	3,719		$	4,095		$	4,316		$	4,019
Additions	$	1,667		$	1,404		$	1,306		$	887		$	1,433
Payments		(90	)		(88	)		(124	)		(135	)		(150	)
Returned to Accruing Status		(42	)		(44	)		(55	)		(58	)		(100	)
Charge-Offs / OREO Write-Downs		(440	)		(451	)		(443	)		(402	)		(421	)
Net Additions	$	1,095		$	821		$	684		$	292		$	762
Dispositions		(232	)		(312	)		(376	)		(430	)		(616	)
Moved to Held for Sale		(201	)		(133	)		(87	)		(159	)		(332	)
Ending Non-Performing Assets¹	$	3,719		$	4,095		$	4,316		$	4,019		$	3,833
Change Versus Previous Quarter	$	662		$	376		$	221			($297	)		($186	)

¹	Excludes Loans Held for Sale

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THIRD QUARTER 2010 EARNINGS RELEASE

PAGE 26

Additional Financial and Operational Data


	9/30/10		6/30/10		3/31/10		12/31/09		9/30/09
Associate headcount		27,898		27,895		28,213		28,509		28,995
Total branch outlets		1,774		1,774		1,774		1,895		1,895
ATMs		2,150		2,162		2,198		2,304		2,313
Morgan Keegan offices		329		325		321		324		339

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PAGE 27

Reconciliation to GAAP Financial Measures

The table below presents computations of earnings and certain other financial measures excluding regulatory charge (non-GAAP). The regulatory charge is included in financial results presented in accordance with generally accepted accounting principles (GAAP). Regions believes that the exclusion of the regulatory charge in expressing earnings and certain other financial measures, including “earnings (loss) per common share, excluding regulatory charge”, “return on average assets, excluding regulatory charge” and “return on average tangible common equity, excluding regulatory charge” (explained on next page) 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 the regulatory charge 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; monthly financial performance 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 and procedures in place to identify and address expenses that qualify for non-GAAP presentation, including authorization and system controls to ensure accurate 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 the regulatory charge does not represent the amount that effectively accrues directly to stockholders (i.e. the regulatory charge is a reduction in earnings and stockholders’ equity).


		As of and for Quarter Ended
($ amounts in millions, except per share data)		09/30/10			06/30/10			03/31/10			12/31/09			09/30/09
Income (loss)
Net income (loss) (GAAP)		$	(155	)	$	(277	)	$	(196	)	$	(543	)	$	(377	)
Preferred dividends and accretion (GAAP)			(54	)		(58	)		(59	)		(63	)		(60	)

Net income (loss) available to common shareholders (GAAP)	A	$	(209	)	$	(335	)	$	(255	)	$	(606	)	$	(437	)

Net income (loss) available to common shareholders (GAAP)		$	(209	)	$	(335	)	$	(255	)	$	(606	)	$	(437	)
Regulatory charge, net of tax			—			200			—			—			—

Net income (loss) available to common shareholders, excluding regulatory charge (non-GAAP)	B	$	(209	)	$	(135	)	$	(255	)	$	(606	)	$	(437	)

Weighted-average diluted shares	C		1,257			1,200			1,194			1,191			1,189
Earnings (loss) per common share - diluted (GAAP)	A/C		(0.17	)		(0.28	)		(0.21	)		(0.51	)		(0.37	)
Earnings (loss) per common share, excluding regulatory charge - diluted (non-GAAP)	B/C		(0.17	)		(0.11	)		(0.21	)		(0.51	)		(0.37	)

The table below presents computations of the efficiency ratio (non-GAAP), which is a measure of productivity, generally calculated as non interest expense divided by total revenue. Management uses the efficiency ratio to monitor performance and believes this measure provides meaningful information to investors. Non-interest expense (GAAP) is presented excluding certain adjustments to arrive at adjusted non-interest expense (non-GAAP), which is the numerator for the efficiency ratio. Net interest income on a fully taxable-equivalent basis (GAAP) and non-interest income (GAAP) are added together to arrive at total revenue (GAAP). Adjustments are made to arrive at adjusted total revenue (non-GAAP), which is the denominator for the efficiency ratio. Regions believes that the exclusion of these adjustments 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. It is possible that the activities related to the adjustments may recur; however, management does not consider the activities related to the adjustments to be indications of ongoing operations. Regions believes that presentation of these non-GAAP financial measures will permit investors to assess the performance of the Company on the same basis as that applied by management.


		As of and for Quarter Ended
($ amounts in millions)		09/30/10			06/30/10			03/31/10			12/31/09			09/30/09
Non-interest expense (GAAP)		$	1,163		$	1,326		$	1,230		$	1,219		$	1,243
Adjustments:
Regulatory charge, net of tax			—			(200	)		—			—			—
(Loss) gain on extinguishment of debt			—			—			(53	)		—			—
Securities impairment, net			(1	)		—			(1	)		—			(3	)
Branch consolidation costs (1)			—			—			(8	)		(12	)		(41	)

Adjusted non-interest expense (non-GAAP)	D	$	1,162		$	1,126		$	1,168		$	1,207		$	1,199

Net interest income, taxable-equivalent basis (GAAP)		$	876		$	863		$	839		$	857		$	853
Non-interest income (GAAP)			750			756			812			718			772

Total revenue (GAAP)		$	1,626		$	1,619		$	1,651		$	1,575		$	1,625

Adjustments:
Securities (gains) losses, net			(2	)		—			(59	)		96			(4	)
Leveraged lease termination gains			—			—			(19	)		(71	)		(4	)

Adjusted total revenue (non-GAAP)	E	$	1,624		$	1,619		$	1,573		$	1,600		$	1,617

Efficiency ratio (non-GAAP)	D/E		71.6	%		69.5	%		74.3	%		75.4	%		74.1	%

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PAGE 28

Reconciliation to GAAP Financial Measures

The following tables also 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 company’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, except per share data)		09/30/10			06/30/10			03/31/10			12/31/09			09/30/09
RETURN ON AVERAGE ASSETS
Average assets (GAAP)	F	$	133,729		$	137,285		$	139,565		$	141,133		$	140,305
Return on average assets (GAAP) (1)	A/F		-0.62	%		-0.98	%		-0.74	%		-1.70	%		-1.24	%

Return on average assets, excluding regulatory charge (non-GAAP) (1)	B/F		-0.62	%		-0.40	%		-0.74	%		-1.70	%		-1.24	%

RETURN ON AVERAGE TANGIBLE COMMON STOCKHOLDERS’ EQUITY
Average stockholders’ equity (GAAP)		$	17,382		$	17,559		$	17,798		$	18,248		$	18,612
Less: Average intangible assets (GAAP)			5,989			6,019			6,046			6,077			6,108
Average preferred equity (GAAP)			3,364			3,576			3,605			3,606			3,606

Average tangible common stockholders’ equity (non-GAAP)	G	$	8,029		$	7,964		$	8,147		$	8,565		$	8,898
Return on average tangible common stockholders’ equity (GAAP) (1)	A/G		-10.31	%		-16.89	%		-12.69	%		-28.03	%		-19.48	%

Return on average tangible common stockholders’ equity, excluding regulatory charge (non-GAAP) (1)	B/G		-10.31	%		-6.82	%		-12.69	%		-28.03	%		-19.48	%

TANGIBLE COMMON RATIOS
Stockholders’ equity (GAAP)		$	17,163		$	17,463		$	17,638		$	17,881		$	18,492
Less: Intangible assets (GAAP)			5,975			6,004			6,031			6,060			6,093
Preferred equity (GAAP)			3,370			3,360			3,610			3,602			3,612

Tangible common stockholders’ equity (non-GAAP)	H	$	7,818		$	8,099		$	7,997		$	8,219		$	8,787
Total assets (GAAP)		$	133,498		$	135,340		$	137,230		$	142,318		$	139,986
Less: Intangible assets (GAAP)			5,975			6,004			6,031			6,060			6,093

Tangible assets (non-GAAP)	I	$	127,523		$	129,336		$	131,199		$	136,258		$	133,893
Shares outstanding–end of quarter	J		1,256			1,256			1,192			1,193			1,188
Tangible common stockholders’ equity to tangible assets (non-GAAP)	H/I		6.13	%		6.26	%		6.09	%		6.03	%		6.56	%
Tangible common book value per share (non-GAAP)	H/J	$	6.22		$	6.45		$	6.71		$	6.89		$	7.40
TIER 1 COMMON RISK-BASED RATIO (2)
Stockholders’ equity (GAAP)		$	17,163		$	17,463		$	17,638		$	17,881		$	18,492
Accumulated other comprehensive (income) loss			(208	)		(306	)		(144	)		(130	)		(143	)
Non-qualifying goodwill and intangibles			(5,729	)		(5,752	)		(5,771	)		(5,792	)		(5,821	)
Disallowed deferred tax assets			(427	)		(443	)		(932	)		(947	)		(485	)
Disallowed servicing assets			(20	)		(22	)		(27	)		(25	)		(21	)
Qualifying non-controlling interests			92			92			91			91			91
Qualifying trust preferred securities			846			846			846			846			846

Tier 1 capital (regulatory)		$	11,717		$	11,878		$	11,701		$	11,924		$	12,959
Qualifying non-controlling interests			(92	)		(92	)		(91	)		(91	)		(91	)
Qualifying trust preferred securities			(846	)		(846	)		(846	)		(846	)		(846	)
Preferred stock			(3,370	)		(3,360	)		(3,610	)		(3,602	)		(3,612	)

Tier 1 common equity (non-GAAP)	K	$	7,409		$	7,580		$	7,154		$	7,385		$	8,410
Risk-weighted assets (regulatory)	L		97,088			98,653			100,323			103,330			106,673
Tier 1 common risk-based ratio (non-GAAP)	K/L		7.6	%		7.7	%		7.1	%		7.1	%		7.9	%

(1)	Income statement amounts have been annualized in calculation

(2)	Current quarter amount and the resulting ratio is estimated

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PAGE 29

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:

•

The Dodd-Frank Wall Street Reform and Consumer Protection Act became law on July 21, 2010 and a number of legislative, regulatory and tax proposals remain pending. Additionally, the U.S. Treasury and federal banking regulators continue to implement, but are also beginning to wind down, a number of programs to address capital and liquidity issues in the banking system. All of the foregoing may have significant effects on Regions and the financial services industry, the exact nature 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 repays the outstanding preferred stock issued under TARP including restrictions on Regions’ ability to attract and retain talented executives and employees.

•

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

•

Possible changes in interest rates may increase 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, including any prolonging or worsening of the current unfavorable economic conditions, including unemployment levels.

•

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

•

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.

•

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 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.

•

Regions’ ability to ensure adequate capitalization which is impacted by inherent uncertainties in forecasting credit losses.

•

The cost and other effects of material contingencies, including litigation contingencies and any adverse judicial, administrative or arbitral rulings or proceedings.

•

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 floods, droughts and hurricanes and the effects of the Gulf of Mexico oil spill.

•

Regions’ ability to maintain favorable ratings from ratings agencies.

•

Potential dilution of holders of shares of Regions’ common stock resulting from the U.S. Treasury’s investment in TARP.

•

Possible changes in the speed of loan prepayments by Regions’ customers and loan origination or sales volumes.

•

The effects of problems encountered by larger or similar financial institutions that adversely affect Regions or the banking industry generally.

•

Regions’ ability to receive dividends from its subsidiaries.

•

The effects of the failure of any component of Regions’ business infrastructure which is provided by a third party.

•

The effects of any damage to Regions’ reputation resulting from developments related to any of the items identified above.

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, 2009 and Quarterly Report on Forms 10-Q for the quarter ended June 30, 2010 and March 31, 2010, 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. Regions assumes 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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