Regions Financial

1st Quarter Earnings Conference Call

April 20, 2010

Exhibit 99.3

*

*

*

*

*

*

*

Forward Looking Statements

This

press

release

may

include

forward-looking

statements

which

reflect

Regions’

current

views

with

respect

to

future

events

and

financial

performance.

The

Private

Securities

Litigation

Reform

Act

of

1995

(“the

Act”)

provides

a

safe

harbor

for

forward-looking

statements

which

are

identified

as

such

and

are

accompanied

by

the

identification

of

important

factors

that

could

cause

actual

results

to

differ

materially

from

the

forward-looking

statements.

For

these

statements,

we,

together

with

our

subsidiaries,

claim

the

protection

afforded

by

the

safe

harbor

in

the

Act.

Forward-looking

statements

are

not

based

on

historical

information,

but

rather

are

related

to

future

operations,

strategies,

financial

results

or

other

developments.

Forward-looking

statements

are

based

on

management’s

expectations

as

well

as

certain

assumptions

and

estimates

made

by,

and

information

available

to,

management

at

the

time

the

statements

are

made.

Those

statements

are

based

on

general

assumptions

and

are

subject

to

various

risks,

uncertainties

and

other

factors

that

may

cause

actual

results

to

differ

materially

from

the

views,

beliefs

and

projections

expressed

in

such

statements.

These

risks,

uncertainties

and

other

factors

include,

but

are

not

limited

to,

those

described

below:

›

In

2008,

the

Emergency

Economic

Stabilization

Act

of

2008

became

law,

and

in

February

2009

the

American

Recovery

and

Reinvestment

Act

of

2009

was

signed

into

law.

Additionally,

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

there

are

a

number

of

pending

legislative,

regulatory

and

tax

proposals,

all

ofwhich

may

have

significant

effects

on

Regions

and

the

financial

services

industry,

the

exact

nature

ofwhich

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.

›

Possible

additional

loan

losses,

and

impairment

of

goodwill,

other

intangibles

and

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.

›

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

achieve

the

earnings

expectations

related

to

businesses

that

have

been

acquired

or

that

may

be

acquired

in

the

future.

›

Regions'

ability

to

expand

into

new

markets

and

to

maintain

profit

margins

in

the

face

of

competitive

pressures.

›

Regions'

ability

to

develop

competitive

new

products

and

services

in

a

timely

manner

and

the

acceptance

of

such

products

and

services

by

Regions'

customers

and potential

customers.

›

Regions'

ability

to

keep

pace

with

technological

changes.

›

Regions'

ability

to

effectively

manage

credit

risk,

interest

rate

risk,

market

risk,

operational

risk,

legal

risk,

liquidity

risk,

and

regulatory

and

compliance

risk.

›

Regions’

ability

to

ensure

adequate

capitalization

is

impacted

by

inherent

uncertainties

in

forecasting

credit

losses.

›

The

cost

and

other

effects

of

material

contingencies,

including

litigation

contingencies.

›

The

effects

of

increased

competition

from

both

banks

and

non-banks.

›

The

effects

of

geopolitical

instability

and

risks

such

as

terrorist

attacks.

›

Possible

changes

in

consumer

and

business

spending

and

saving

habits

could

affect

Regions'

ability

to

increase

assets

and

to

attract

deposits.

›

The

effects

of

weather

and

natural

disasters

such

as

droughts

and

hurricanes.

The

foregoing

list

of

factors

is

not

exhaustive;

for

discussion

of

these

and

other

risks

that

may

cause

actual

results

to

differ

from

expectations,

please

look

under

the

captions “Forward-

Looking

Statements”

and

“Risk

Factors”

in

Regions’

Annual

Report

on

Form

10-K

for

the

year

ended

December

31,

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.

Regions

assumes

no

obligation

to

update

or

revise

any

forward-looking

statements

that

are

made

from

time

to time.

Summary of First Quarter 2010 Results

›

Loss per diluted share of $0.21

›

Net interest margin increased 5 bps to 2.77%

›

Average earning assets decreased 2%, driven primarily by targeted reduction in investor real

estate

›

Non-interest

revenues,

as

adjusted,

declined

1%

due

largely

to

lower

brokerage

revenues

›

Non-interest expenses, as adjusted, declined 3% primarily due to lower professional fees

›

Average low-cost customer deposit growth again strong, up $4.2 billion, reflective of:

›

10% increase in interest bearing checking deposits;

›

8% increase in money market deposits

›

3% increase in interest-free deposits

›

Credit quality

›

Annualized net charge-offs remain stable at 3.16% of average loans, driven by higher

consumer real estate charge-offs and de-risking efforts

›

Allowance for loan losses, up approximately $70 million, stands at 3.61% of loans with $770

million loan loss provision

›

Allowance

for

loan

losses

coverage

of

non-performing

loans

of

0.86x

(1)

›

Non-performing

assets,

excluding

loans

held

for

sale,

increased

$221

million

to

$4.3

billion

(1)

;

Inflows of non-performing assets continue to decline

›

Capital ratios remain strong, with Tier 1 of 11.7% and Tier 1 Common equity of 7.1%

Note: Comparisons are to previous quarter

(1)

Excluding loans held for sale

1

Investor Real Estate Drives Loan Decline

2

($ in millions)

12/31/2009

3/31/2010

$ Change

% Change

Commercial & Industrial

21,547

$     

21,220

$      

(327)

$       

-2%

Commercial Real Estate - Owner-Occupied

12,805

12,626

(179)

-1%

Investor Real Estate

21,700

20,405

(1,295)

-6%

Residential First Mortgage

15,632

15,592

(40)

0%

Home Equity

15,381

15,066

(315)

-2%

Other consumer

3,609

3,265

(344)

-10%

Total Loans

90,674

$     

88,174

$      

(2,500)

$    

-3%

($ in millions)

4Q09

1Q10

$ Change

% Change

Commercial & Industrial

21,570

$     

21,429

$      

(141)

$       

-1%

Commercial Real Estate - Owner-Occupied

12,946

12,742

(204)

-2%

Investor Real Estate

22,437

21,291

(1,146)

-5%

Residential First Mortgage

15,521

15,567

46

0%

Home Equity

15,515

15,237

(278)

-2%

Other consumer

3,777

3,457

(320)

-8%

Total Loans

91,766

$     

89,723

$      

(2,043)

$    

-2%

Ending Balances

Average Balances

Commercial Line Utilization Stabilizing

›

Commitment levels remain solid

›

Utilization rates reflect weaker demand but stabilizing

($ in billions)

Commercial

3

$24.9

$24.5

$24.7

$25.0

$24.9

40.7%

41.2%

42.8%

45.4%

47.5%

$-

$5.0

$10.0

$15.0

$20.0

$25.0

$30.0

Mar'09

Jun'09

Sept'09

Dec'09

Mar'10

38%

40%

42%

44%

46%

48%

50%

52%

Commitments

Utilization Rate

Favorable Mix Shift to Low Cost Deposits

4

($ in millions)

12/31/2009

Avg Rate

3/31/2010

Avg Rate

% Change

% Change

Low Cost Deposits

64,300

$          

0.31%

68,456

$    

0.31%

4,156

$       

6%

Time Deposits

31,961

2.86%

29,707

2.59%

(2,254)

-7%

Customer Deposits

96,261

1.15%

98,163

1.00%

1,902

2%

Corporate Treasury Deposits

85

-

72

-

(13)

-15%

Total Deposits

96,346

$          

1.15%

98,235

$    

1.00%

1,889

$       

2%

($ in millions)

12/31/2009

Deposit Mix %

3/31/2010

Deposit Mix %

% Change

% Change

Low Cost Deposits

67,125

$          

68%

70,331

$    

72%

3,206

$       

5%

Time Deposits

31,468

32%

27,939

28%

(3,529)

-11%

Customer Deposits

98,593

100%

98,270

100%

(323)

0%

Corporate Treasury Deposits

87

0%

62

0%

(25)

-29%

Total Deposits

98,680

$          

100%

98,332

$    

100%

(348)

$         

0%

Average Balances and Average Rates

Ending Balances

›

Exceeding 2009 record pace

of new checking account

openings;

248,000

in

1

st

quarter

›

Retention remains better

than industry norms and at

historical highs

›

Average customer deposits

grew $1.9 billion linked

quarter; over $6.5 billion

year-over-year

›

Total deposit costs have

declined 61 basis points in

last 12 months

5

$80.0

$85.0

$90.0

$95.0

$100.0

1Q09

2Q09

3Q09

4Q09

1Q10

0.90%

1.00%

1.10%

1.20%

1.30%

1.40%

1.50%

1.60%

1.70%

Customer Deposits

Total Deposit Costs

7% year over year

growth in average

customer deposits

Record Setting Account Growth the Driving Force

Behind Rising Customer Deposits

Recession-Related

Expenses

Impacting

Core

Pre-

tax

Pre-Provision

Net

Revenue

(PPNR)

743

734

831

850

(996)

(988)

(172)

(219)

($1,500)

($1,000)

($500)

$0

$500

$1,000

$1,500

$2,000

4Q09

1Q10

$172

$219

Recession-Related Expenses**

15%

18%

Recession-Related Expenses as a % of

Core Non-Interest Expense

$397

$386

Core PPNR

1Q10*

4Q09*

($ in millions)

*Excludes

securities

gains/losses,

leveraged

lease

termination

gains,

branch

consolidation

charges,

securities

impairment

and

loss

on

early

extinguishment

of

debt

**Recession-related

expenses

includes

FDIC

premiums,

other

real

estate

owned

expenses,

loan

related

legal

fees,

credit

support

expenses,

etc.

Net Interest Income

Non-Interest Revenue

Other Expenses

Recession-Related Expenses

6

$ in millions

$386

$397

$ in millions

Improving Net Interest Margin; Expected to Rise

throughout 2010 and Beyond

›

Net interest margin climbed 5 bps

linked quarter; Expected to climb

to 3.00% by year-end 2010

›

Ongoing improvement in deposit

mix and cost with

substantial

remaining repricing opportunity in

maturing, higher cost CDs

›

Consistent improvements in

pricing of new and renewed loans

›

Balance sheet well positioned for

eventual rising rate environment

7

$800

$810

$820

$830

$840

$850

$860

1Q09

2Q09

3Q09

4Q09

1Q10

2.50%

2.60%

2.70%

2.80%

2.90%

3.00%

3.10%

Net Interest Income (FTE)

Net Interest Margin

$817

$840

$853

$857

$839

NII Sensitivity Timeline

8

-7.00%

-5.00%

-3.00%

-1.00%

1.00%

3.00%

5.00%

7.00%

+100

-100

Non-Interest income impacted by lower Brokerage

Income

›

Brokerage income lower, reflecting a decline in fixed income

capital markets revenue

›

Service charges decline attributable to seasonally lower

transaction volume

›

Mortgage income higher due to favorable MSR hedge

9

($ in millions)

4Q09

1Q10

$

%

Non-interest income, as reported

718

$     

812

$     

94

$       

13%

- Leveraged lease termination gains

71

19

- Securities gains / (losses)

(96)

59

Core non-interest income

743

$     

734

$     

(9)

$        

-1%

Difference

Core Non-Interest Expense Improves

›

Legal and professional fees decline $42 million, driven by lower

Morgan Keegan and credit related costs

›

Other real estate expense declined $22 million linked quarter

10

($ in millions)

4Q09

1Q10

$

%

Non-interest expense

1,219

$   

1,230

$   

11

$       

1%

- Branch consolidation charges

12

8

- Securities impairment

-

1

- Loss on early extinguishment of debt

-

53

Core non-interest expense

1,207

$   

1,168

$   

(39)

$      

-3%

Difference

Capital Ratios Remain Strong

11

(1)

Current Quarter ratios are estimated

4Q09

1Q10

(1)

Total Risk-Based Capital

15.8%

15.8%

Tier 1 Capital

11.5%

11.7%

Tier 1 Common

7.1%

7.1%

NPA Migration Declining

$0

$500

$1,000

$1,500

$2,000

1Q09

2Q09

3Q09

4Q09

1Q10

Net NPA Change

Gross NPA Additions

$ millions

Net NPA* Change down 41%

4Q09 to 1Q10

* Excludes non-performing assets held for sale

12

Disposed of over $3 Billion in Problem Assets

Over Past 18 Months

$0

$300

$600

$900

$1,200

4Q08

1Q09

2Q09

3Q09

4Q09

1Q10

Sales

Transfer to HFS

$ millions

$228

$281

$554

$643

$1,039

Note:

Dispositions

include

loans

sold

or

moved

to

held

for

sale.

The

03/31/10

balance

in

held

for

sale

was

$256MM.

$689

13

Charge-Offs Stabilized

$0

$250

$500

$750

$1,000

1Q09

2Q09

3Q09

4Q09

1Q10

Business Services

Consumer

Sales/Transfer to HFS

$ millions

$390

$491

$680

$692

$700

14

Troubled Debt Restructurings Decline; Primarily

Performing Residential First Mortgages

›

Recidivism rate much better than government-sponsored programs

›

Foreclosure rate less than half the national average

›

Proactive outreach efforts helped over 28,000 families stay in their homes

15

$ in millions

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

1Q 2009

2Q 2009

3Q 2009

4Q 2009

1Q 2010

Residential first mortgage

Other

Non-accrual or 90 or more days past due

Accruing

Credit Trends Stable:  Will Improve

›

NPAs peak by the end of 2Q10 and decline thereafter

›

Charge-offs peak by the end of 2Q10 and decline

thereafter

›

Charge-off guidance given at the July 2009 Investor Day

Conference still holds:  somewhere near midpoint of our

$3.4 billion to $5.9 billion two year loss range

›

No reserve build expected in the second half of 2010

16

*

*

*

*