EX-99.3 4 dex993.htm VISUAL PRESENTATION OF JANUARY 20, 2009 Visual Presentation of January 20, 2009
Regions Financial
4   Quarter Earnings Conference Call
January 20, 2009
Exhibit 99.3
th

1
Fourth Quarter 2008 Results
›
Earnings per diluted share of ($9.01), ($0.35) excluding goodwill impairment
›
$6 billion, ($8.66) non-cash goodwill impairment charge
›
Full-year profit of $0.74 per share before goodwill impairment and merger charges
›
Credit quality
›
Sold or moved to held for sale (HFS) $1.0 billion of non-performing assets (NPAs)
›
NPAs, excluding HFS, declined $347 million due to aggressive management
›
Provision for loan losses increased to $1.15 billion, or $354 million above net charge-offs
›
Ratio of allowance for credit losses to non-performing loans (excluding loans held for sale)
increased from 1.07x to 1.81x
›
Allowance for credit losses to total loans increased 38 basis points to 1.95%
›
Annualized net charge-offs of 3.19% impacted by proactive NPL management
›
Tax settlement benefits earnings and capital by $275 million, essentially closes 1999-
2006 tax years
›
Net interest margin declined to 2.96%
›
Non-interest revenues affected by worsening economy
›
Regulatory capital ratios strengthened, liquidity remains strong

2
Significant Earnings Drivers
4Q08
Goodwill Impairment Charge
(8.66)
$         
Tax Settlement
0.40
Losses on Loan Sales/Held for Sale Markdowns
(0.42)
Provision above Net Charge-offs
(0.32)
MSR Impairment
(0.09)
Preferred Stock Issuance Impact
(0.04)
All Other
0.12
Earnings Per Diluted Share
(9.01)
$        

3
Credit Perspective
Portion of the loan portfolio that is under stress comprises 9% of the total, down $3.1
billion over the past year.
12/31/2008
% of Total
12/31/2007
($ in millions)
Balance
Portfolio
Balance
Change
Homebuilder
Lots
$967
1.0%
$1,608
($641)
Residential Presold
300
0.3%
618
(318)
Residential Spec
1,297
1.3%
1,893
(596)
Land
1,553
1.6%
2,926
(1,373)
National Homebuilders/Other
286
0.3%
160
126
$4,403
4.5%
$7,205
($2,802)
Home Equity Lending
Florida -
2nd lien
3,663
3.8%
3,285
378
Condominium
946
1.0%
1,614
(668)
Stressed Portfolio
$9,012
9.3%
$12,104
($3,092)
Remaining Loan Portfolio
$88,407
90.7%
$83,275
$5,132

4
Losses Contained in Smaller Portfolios
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
Total Loan Portfolio ($ in billions)
Note: Bar height represents charge-off percentage and width
represents average balances as of December 31, 2008.

5
Increasing Florida Stress

6
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
$2,000
Q3 '07
Q4 '07
Q1 '08
Q2 '08
Q3 '08
Q4 '08
0.0x
0.5x
1.0x
1.5x
2.0x
2.5x
Non-performing Assets (NPAs)
NPAs exc. Held for Sale (HFS) ($)
Allowance for Credit Losses (ACL) / Non-performing Loans
(NPLs) exc. HFS
Increases in Charge-Offs and Loan Loss Provision
Improvements in NPAs and Coverage Ratio
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%
Q3 '07
Q4 '07
Q1 '08
Q2 '08
Q3 '08
Q4 '08
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
Net Charge-Offs (NCOs) / Average Loans (%)
Loan Loss Provision ($)
Net Charge-Offs ($)
Net C/O %
LLP
NPAs
ACL/NPL
exc. HFS

7
Aggressive Non-performing Asset            
Management
(in millions)
1Q
2Q
3Q
4Q
Beginning NPAs
864
1,204
1,621
1,642
Additions
523
730
721
1,004
Payments
(62)
(52)
(70)
(82)
Returned to Accruing Status
(4)
(9)
(19)
(44)
Charge-Offs/OREO Write-downs
(92)
(105)
(180)
(243)
Dispositions/Held for Sale
(25)
(147)
(431)
(982)
Ending NPAs
1,204
1,621
1,642
1,295
(1) Excluding non-performing assets transferred to held for sale
2008
1
1

8
Net Interest Income and Margin
›
Taxable-equivalent net interest income of $933 million
›
Down $41 million, excluding $43 million third quarter SILO
impact
›
Stable earning asset volumes excluding proceeds from
Government programs
›
Net interest margin of 2.96%, declined 28 basis points excluding
third quarter SILO impact
›
Falling short-term interest rates
›
55% of loan portfolio tied to Prime or LIBOR
›
Deposits rates have not declined as much due to competitive
pressures

9
Growing Customer Deposits
($ amount in millions)
6/30/2008
9/30/2008
12/31/2008
% Change
4Q08 vs
3Q08
Low Cost Deposits
58,448
$ 
56,690
$  
56,422
$     
-0.5%
Customer Deposits
85,696
84,460
87,864
4.0%
Corporate Treasury Deposits
5,207
4,131
1,669
-59.6%
Total Deposits
90,903
88,591
89,533
1.1%
($ amount in millions)
6/30/2008
9/30/2008
12/31/2008
% Change
4Q08 vs
3Q08
Low Cost Deposits
58,649
$ 
55,922
$  
58,425
$     
4.5%
Customer Deposits
86,025
85,210
90,794
6.6%
Corporate Treasury Deposits
3,878
4,011
110
-97.3%
Total Deposits
89,903
89,221
90,904
1.9%
Deposit Portfolio -
Average Balances
Deposit Portfolio -
Ending Balances

10
Q3 to Q4 2008 Non-Interest Revenue and Expense
Changes Primarily Driven by Continued Economic
Distress
Non-Interest Revenue declined $18 million driven by lower market values
on trust accounts and lower service charge revenue.
Non-Interest Expense rose 7%, excluding Goodwill and MSR impairment
charges.
(in millions)
3Q08
4Q08
% Change
Non-Interest expense
1,103
$  
7,273
$  
MSR impairment
11
99
Goodwill impairment
-
6,000
Adjusted Non-interest expense
1,092
1,174
7%

11
Capital Ratios
›
Tier 1 and total capital strengthened by Capital Purchase Program
›
Tangible ratio affected by an increase in tangible assets, a result of
improved liquidity
Estimate
3Q08
4Q08
Tier 1 Capital Ratio
7.47%
10.39%
Total Risk-Based Capital Ratio
11.70%
14.65%
Tangible Equity to Tangible Assets
5.68%
5.23%

12
Strong Funding and Liquidity
Liquidity
›
Combined available liquidity from the
Fed, FHLB, unpledged securities and
unused lines exceeds $45 billion
›
Large excess reserve balances
›
Minimal Holding Company long-term
debt maturities
›
Avg Loans/Avg Deposits 111%
›
Average non-interest-bearing deposits/
Average interest-earning assets 14%
Funding
›
Customer core deposits fund 59% of
total assets and 88% of loans
›
Customer core deposits are 98% of
total deposits
›
$4 billion TLGP remaining capacity
›
Issuances performing well
›
Short-term funding markets loosening

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