Regions Reports Earnings for Fourth Quarter 2012

  Regions Reports Earnings for Fourth Quarter 2012

Stable revenue, continued improvement in asset quality and funding mix, focus
    on sustainable growth, expansion of products and services to meet more
                                customer needs

Business Wire

BIRMINGHAM, Ala. -- January 22, 2013

Regions Financial Corporation (NYSE:RF) today reported earnings for the
quarter and year ended December 31, 2012.

Key points:

  *Reported net income available to common shareholders of $261 million or
    $0.18 per diluted share as compared to $301 million or $0.21 per diluted
    share in the third quarter

       *Reported net income from continuing operations available to common
         shareholders of $273 million or $0.19 per diluted share
       *Adjusted net income available to common shareholders from continuing
         operations^1 was $311 million or $0.22 per diluted share as compared
         to $312 million or $0.22 per diluted share in the third quarter

  *Reported full year 2012 net income from continuing operations available to
    common shareholders of $1.1 billion or $0.76 per diluted share
  *Adjusted pre-tax pre-provision income^1 (PPI) from continuing operations
    totaled $493 million, a 5 percent increase from the prior quarter

       *Net interest income was stable and totaled $818 million; the
         resulting net interest margin was 3.10 percent
       *Non-interest revenue was $536 million, a 1 percent increase on a
         linked quarter basis. Total revenue was $1.35 billion, stable linked
         quarter
       *Non-interest expenses totaled $902 million, reflecting a 4 percent
         increase linked quarter. Adjusted non-interest expenses^1 decreased
         $20 million, or 2 percent linked quarter.

  *Asset quality improvement continues

       *Non-performing assets declined $296 million or 13 percent linked
         quarter; inflows of non-performing loans amounted to $350 million,
         down 24% linked quarter
       *Net charge-offs of $180 million decreased 31 percent linked quarter
         to 96 basis points; loan loss provision of $37 million was $143
         million less than net charge-offs
       *Business services criticized loans declined $639 million linked
         quarter or 12 percent
       *Allowance for loan losses as a percentage of loans declined 15 basis
         points linked quarter to 2.59 percent, while the ratio of allowance
         for loan losses to non-performing loans increased 5 basis points to
         1.14x

  *Balance sheet

       *Funding mix continued to improve as low-cost deposits grew $2.1
         billion linked quarter and higher cost time deposits declined $1.5
         billion
       *Deposit costs declined to 22 basis points, down 6 basis points from
         third quarter and 18 basis points from the prior year
       *Loan growth in the middle market commercial and industrial and
         indirect auto portfolios continued, with average loans up 1.5 percent
         and 6.7 percent linked quarter, respectively. Average total loans
         decreased 1.4 percent linked quarter due to continued business and
         consumer deleveraging.
       *Loan yields were up 3 basis points linked quarter to 4.21 percent

  *Capital and liquidity positions remain strong

       *Solid capital position with an estimated Tier 1 ratio of 12.0 percent
         and Tier 1 Common ratio^1 of 10.8 percent at December 31, 2012
       *Successfully issued depositary shares representing preferred stock of
         $500 million, redeemed $345 million of trust preferred securities,
         and extinguished a $203 million liability associated with an
         investment by a third party in a subsidiary
       *Tangible common book value per share^1 was $7.11, an increase of
         $0.09 from the prior quarter
       *Liquidity position remains strong with a low loan-to-deposit ratio of
         78 percent


Highlights                  Three Months Ended
(In millions, except           December 31,   September 30,   December 31,
per share data)                2012             2012              2011
                               Amount           Amount            Amount
                                                                  
Net Income
Net interest income            $818             $817              $849
Securities gains,              12               12                7
net
Other non-interest             524              521               500
income
Total revenue                  1,354            1,350             1,356
Provision for loan             37               33                295
losses
Goodwill impairment            0                0                 253
Non-interest
expense, excluding             902              869               871
goodwill impairment
Pre-tax income                 415              448               (63)
(loss)
Income tax expense             138              136               18
Income (loss) from
continuing             (A)     277              312               (81)
operations
Loss from
discontinued                   (12)             (11)              (467)
operations, net of
tax
Net income (loss)              265              301               (548)
Preferred dividends    (B)     4                0                 54
and accretion
Net income (loss)
available to common            $261             $301              ($602)
shareholders
Income (loss) from
continuing
operations available           $273             $312              ($135)
to common
shareholders (A) –
(B)

                               Three Months Ended
                               December 31,     September 30,     December 31,
                               2012             2012              2011
                               Amount/Dil.      Amount/Dil.       Amount/Dil.
                               EPS              EPS               EPS
Pre-tax
Pre-Provision Income
(non-GAAP) ^1
Income (loss) from
continuing
operations available           $273             $312              ($135)
to common
shareholders (GAAP)
(A) – (B)
Plus: Preferred
dividends and                  4                0                 54
accretion (GAAP)
Plus: Income tax               138              136               18
expense (GAAP)
Pre-tax income
(loss) from                    415              448               (63)
continuing
operations (GAAP)
Plus: Provision for            37               33                295
loan losses (GAAP)
Pre-tax
pre-provision income
from continuing                $452             $481              $232
operations

(non-GAAP) ^1
Plus: Goodwill
impairment and other           41               (12)              236
adjustments
Adjusted pre-tax
pre-provision income
from continuing                $493             $469              $468
operations
(non-GAAP) ^1

                               Three Months Ended
                               December 31,     September 30,     December 31,
                               2012             2012              2011
                               Amount/Dil.      Amount/Dil.       Amount/Dil.
                               EPS              EPS               EPS
GAAP to non-GAAP EPS
Reconciliation
Earnings (loss) per
share as reported              $0.18            $0.21             ($0.48)
(GAAP)
Earnings (loss) per
share from                     (0.01)           (0.01)            (0.37)
discontinued
operations (GAAP)
Earnings (loss) per
share from                     0.19             0.22              (0.11)
continuing
operations (GAAP)
Goodwill impairment
from continuing                (0.00)           (0.00)            (0.20)
operations
REIT investment
early termination              (0.03)           (0.00)            (0.00)
cost
Adjusted earnings
per share from
continuing
operations,
excluding goodwill             $0.22            $0.22             $0.09
impairment and REIT
investment early
termination cost
(non-GAAP) ^1

                               Three Months Ended
                               December 31,     September 30,     December 31,
                               2012             2012              2011
Key ratios*
Net interest margin            3.10%            3.08%             3.08%
(FTE)
Tier 1 capital                 12.0%            11.5%             13.3%
Tier 1 common^1
risk-based ratio               10.8%            10.5%             8.5%
(non-GAAP)
Tangible common
stockholders’ equity           8.63%            8.49%             6.57%
to tangible assets^1
(non-GAAP)
Tangible common book
value per share^1              $7.11            $7.02             $6.37
(non-GAAP)
Asset quality
Allowance for loan
losses as % of net             2.59%            2.74%             3.54%
loans
Net charge-offs as %
of average net                 0.96%            1.38%             2.16%
loans~
Non-accrual loans,
excluding loans held           2.27%            2.50%             3.06%
for sale, as % of
loans
Non-performing
assets as % of
loans, foreclosed              2.59%            2.93%             3.83%
properties and
non-performing loans
held for sale
Non-performing
assets (including
90+ past due) as %
of loans, foreclosed           3.19%            3.47%             4.40%
properties and
non-performing loans
held for sale

*Tier 1 Common and Tier 1 Capital ratios for the current quarter are
estimated.
~Annualized
^1 Non-GAAP, refer to pages 10 and 18-20 of the financial supplement to this
earnings release


Building a foundation for sustainable growth

Regions reported fourth quarter net income available to common shareholders of
$261 million or $0.18 per diluted share and net income available to common
shareholders from continuing operations of $273 million or $0.19 per diluted
share.

Adjusted net income available to common shareholders from continuing
operations^1, which excludes costs resulting from the termination of a third
party investment in a subsidiary, was $311 million or $0.22 per diluted share
as compared to $312 million or $0.22 cents per diluted share in the third
quarter. Adjusted pre-tax pre-provision income^1 totaled $493 million, up $24
million linked quarter.

“Although challenging economic headwinds persist, Regions has maintained an
intense focus on meeting the needs of our customers,” said Grayson Hall,
president and CEO. “I am pleased with the progress we made in 2012 and am
encouraged that our efforts are building a strong foundation for sustainable
growth in 2013 and beyond.”

To help drive its growth efforts, the company recently launched Regions360, a
unique relationship banking model that begins with a full and detailed view of
customers’ financial situation and deepens those relationships through
assisting customers in achieving their financial goals and helping them
succeed financially. The model is backed by a robust suite of management
practices and tools that include systematic referrals across business lines,
standardized implementation of proven best practices, training and
certification for providing customers with advice and guidance, as well as
detailed measurement through a standard performance dashboard based on the
company’s successful service quality improvement effort. Through Regions360,
the company expects to maximize opportunities to cross-sell throughout its
consumer services, business, and Wealth Management lines of business.

In addition, new products, services, and channel capabilities that broaden
Regions appeal and contribute to customer growth have been introduced and will
continue into 2013. These include:

  *Completed roll out of Now Banking, the first comprehensive suite of
    solutions for underserved households is growing customers at a rate of 10
    percent per month
  *Newly launched Regions “E-Access account” designed for customers who bank
    using online, mobile and cards
  *Improved the digital experience with new mobile apps, including iPads,
    enhanced person-to-person payments with mobile cash back rewards,
    introduction of Regions My GreenInsights personal financial management
    tools, and improved online account opening and payment capabilities
  *First quarter roll out of an industry leading mobile check deposit
    solution and check cashing at ATMs allowing customers to fund accounts
    from anywhere and access funds immediately
  *New Front Counter and Teller Image, along with a new sales and service
    platform designed to drive cost efficiencies, improve customer experience
    and increase sales effectiveness
  *Continued to expand the Wealth Management line of business; through an
    agreement with a third party vendor, Regions will offer a full suite of
    financial planning and investment services through its branch network to
    better meet the needs of mass-affluent customers and families

Continued growth in middle market commercial and industrial and indirect auto
lending offset by declines in other loan portfolios as customers continue to
deleverage

Commercial and industrial loans experienced continued growth in the fourth
quarter, particularly in lending to middle market customers. Average loans in
this category were up 1.5 percent compared to the prior quarter and 8.7
percent over the same period last year. Total commercial and industrial
commitments grew $1.4 billion, or 4.2 percent linked quarter, while commercial
loan production (including renewals) totaled $10.4 billion, of which $4.3
billion were new loan originations.

Strong growth in indirect auto loan production and continued steady
performance in commercial and industrial lending partially offset anticipated
declines in real estate loans and continued deleveraging among both commercial
clients and consumers. Average loans declined 1.4 percent sequentially driven
by declines in investor real estate and commercial owner-occupied loans.
Investor real estate now comprises 10 percent of the total loan portfolio
compared to 14 percent one year ago.

Consumer loan production totaled $2.9 billion in the fourth quarter, which is
an increase of 21 percent over the prior year. Indirect auto loans experienced
an increase in average balances of 6.7 percent linked quarter. This was offset
by declines in the residential mortgage and home equity portfolios as
consumers continue to pay down debt. As an extension of the bank’s growing
indirect auto business, Regions recently launched the Regions Auto Center and
Auto Buying Service, allowing customers to research, shop for, finance, and
insure a vehicle through the Regions Auto Center housed on the company’s
website.

The company’s aggregate loan yield was up 3 basis points linked quarter to
4.21 percent, driven primarily by interest recoveries on non-accrual loans.

Funding mix improvement continues to drive decline in deposit costs

Average low-cost deposits grew 1.9 percent linked quarter while higher cost
time deposits declined 8.5 percent. This continued shift drove an improvement
in the company’s funding mix during the quarter, as average low-cost deposits
as a percentage of total deposits rose to 86 percent compared to 80 percent
last year. This positive mix shift resulted in deposit costs declining to 22
basis points for the quarter, down 6 basis points from third quarter and 18
basis points from last year. Total funding costs declined to 50 basis points,
down 18 basis points from one year ago.

Taxable equivalent net interest income was $831 million, a $1 million increase
linked quarter. The resulting net interest margin expanded 2 basis points
linked quarter to 3.10 percent, primarily attributable to interest recoveries
and lower deposit costs.

Service charges income drives growth in non-interest revenue; continued focus
on expense management

Non-interest revenues totaled $536 million, up 1 percent linked quarter.
Service charges income increased to $254 million, which is 4 percent higher
than the prior quarter. Mortgage production for the quarter was approximately
$2.1 billion, an 18 percent increase from the prior year. HARP II loan
production year-to-date was $1.6 billion, surpassing the full year company
goal of $1 billion in HARP II loans. As of the end of the quarter, analysis
indicated that less than approximately 20 percent of HARP-eligible loans have
refinanced. Throughout 2012 approximately 50 percent of HARP II applications
were for homeowners whose mortgage was not originally serviced by Regions.
Customers continue to take advantage of the low interest rate environment
through traditional and HARP II mortgages for both refinancing and new home
purchases.

Additionally, non-interest revenue has also benefited from the Now Banking
suite of products, which was developed to meet the needs of consumers who rely
on check cashing services, money remittance, money orders and prepaid cards,
either in addition to or in place of a checking account. The number of
customers utilizing the products has grown by approximately 25,000 customers a
month since the launch of Now Banking in the first quarter of 2012.

Adjusted non-interest expenses^1 were $849 million, a decrease of $20 million
linked quarter and $22 million or 2.5 percent from the prior year. On November
30, 2012, Regions entered into an agreement with a third party investor in
Regions Asset Management Company, Inc., a real estate investment trust,
pursuant to which the investment was fully redeemed. This resulted in
extinguishing a $203 million liability, including accrued, unpaid interest, as
well as incurring early termination costs of approximately $42 million on a
pre-tax basis and $38 million on an after-tax basis for the fourth quarter.
Excluding the early termination costs, during 2012 Regions incurred
approximately $28 million of non-interest expenses related to this liability.
Additionally, during the quarter professional and legal expenses benefitted
from a $20 million decrease in legal reserves.

Asset quality improvement continues

Asset quality continued to improve in the fourth quarter. The provision for
loan losses totaled $37 million or $143 million less than net charge-offs.
Total net charge-offs decreased linked quarter by 31 percent, or $82 million,
to $180 million, the lowest level in almost five years. Net charge-offs as a
percentage of total average loans decreased to 0.96 percent, below 1 percent
for the first time in over four years. The company’s loan loss allowance to
non-performing loan coverage ratio was 1.14x and the allowance for loan losses
as a percentage of loans was 2.59 percent as of December 31, 2012.

Non-performing assets totaled $1.9 billion and were down $296 million or 13
percent linked quarter. Inflows of non-performing loans were $350 million,
down $211 million or 38 percent from the prior year. Business Services
criticized loans also declined 12 percent in the quarter and are down 29
percent year-over-year.

Strong capital and solid liquidity

Tier 1 and Tier 1 common^1 capital ratios remained strong, ending the fourth
quarter at an estimated 12.0 percent and 10.8 percent, respectively.
Additionally in the quarter, the company completed an offering of depositary
shares representing preferred stock of $500 million, and part of the proceeds
were used to redeem $345 million of trust preferred securities.

The company’s liquidity position at both the bank and the holding company
remains solid. As of December 31, 2012, the company’s loan-to-deposit ratio
was 78 percent. Tangible common book value per share reached $7.11 for the
fourth quarter, up from $7.02 in the prior quarter.

^1 Non-GAAP, refer to pages 10 and 18-20 of the financial supplement to this
earnings release

About Regions Financial Corporation

Regions Financial Corporation, with $121 billion in assets, is a member of the
S&P 500 Index and is one of the nation’s largest full-service providers of
consumer and commercial banking, wealth management, mortgage, and insurance
products and services. Regions serves customers in 16 states across the South,
Midwest and Texas, and through its subsidiary, Regions Bank, operates
approximately 1,700 banking offices and 2,000 ATMs. Additional information
about Regions and its full line of products and services can be found at
www.regions.com.

Forward-looking statements

This presentation 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 (the
    “Dodd-Frank Act”)became law in July 2010, and a number of legislative,
    regulatory and tax proposals remain pending. Future and proposed rules,
    including those that are part of the Basel III process, are expected to
    require banking institutions to increase levels of capital and to meet
    more stringent liquidity requirements. All of the foregoing may have
    significant effects on Regions and the financial services industry, the
    exact nature and extent of which cannot be determined at this time.
  *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. Increases in benchmark
    interest rates would also increase debt service requirements for customers
    whose terms include a variable interest rate, which may negatively impact
    the ability of borrowers to pay as contractually obligated.
  *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, may have an adverse effect on business.
  *Possible regulations issued by the Consumer Financial Protection Bureau or
    other regulators which might adversely impact Regions’ business model or
    products and services.
  *Possible 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, reputational
    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,
    wind, tornados and hurricanes, and the effects of man-made disasters.
  *Possible downgrades in ratings issued by rating agencies.
  *Possible changes in the speed of loan prepayments by Regions’ customers
    and loan origination or sales volumes.
  *Possible acceleration of prepayments on mortgage-backed securities due to
    low interest rates and the related acceleration of premium amortization on
    those securities.
  *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.
  *Changes in accounting policies or procedures as may be required by the
    Financial Accounting Standards Board or other regulatory agencies.
  *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 factors that may cause actual results to differ from expectations, look
under the captions “Forward-Looking Statements” and “Risk Factors” of Regions’
Annual Report on Form 10-K for the year ended December 31, 2011 and the
“Forward-Looking Statements” section of Regions’ Quarterly Reports on Form
10-Q for the quarters ended March 31, June 30, and September 30, 2012.

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

Use of non-GAAP financial measures

Regions believes that the presentation of pre-tax, pre-provision income (PPI)
and the exclusion of certain items from PPI 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 applied by management.

The REIT investment early termination costs, goodwill impairment, regulatory
charge and related tax benefit are included in financial results presented in
accordance with generally accepted accounting principles (GAAP). Regions
believes that the exclusion of these selected items in expressing income
(loss) and certain other financial measures, including “adjusted earnings
(loss) per share from continuing operations, excluding goodwill impairment and
REIT investment early termination costs (on-GAAP)” 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.

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 company’s Comprehensive Capital Assessment and Review
process, these regulators supplement 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 prescribed in amount by federal banking regulations,
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’ equity and Tier 1 common equity
are not formally defined by GAAP or prescribed in amount by 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, management believes 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.

Non-GAAP financial measures have inherent limitations are not required to be
uniformly applied and are not audited. To mitigate these limitations, Regions
has policies in place to 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 selected items such as
goodwill impairment and REIT investment early termination costs do not
represent the amount that effectively accrues directly to stockholders (i.e.
goodwill impairment and REIT early termination costs reduce earnings and
stockholders’ equity).

Management and the Board of Directors utilize non-GAAP measures as follows:

  *Preparation of Regions’ operating budgets
  *Monthly financial performance reporting
  *Monthly close-out reporting of consolidated results (management only)
  *Presentation to investors of company performance

See page 10 of the supplement to this earnings release for the computation of
income (loss) from continuing operations available to common shareholders
(GAAP) to pre-tax pre-provision income from continuing operations (non-GAAP)
to adjusted pre-tax pre-provision income from continuing operations
(non-GAAP). See pages 18-20 of the supplement to this earnings release for 1)
a reconciliation and computation of adjusted income (loss) available to common
shareholders (non-GAAP), adjusted income (loss) from continuing operations
available to common shareholders (non-GAAP), and adjusted earnings (loss) per
common share from continuing operations (non-GAAP), 2) computation of return
on average assets from continuing operations (GAAP) and adjusted return on
average assets from continuing operations (non-GAAP), 3) a reconciliation of
average and ending stockholders’ equity (GAAP) to average and ending tangible
common stockholders’ equity (non-GAAP), 4) computation of return on average
tangible common stockholders’ equity (non-GAAP) and adjusted return on average
tangible common stockholders’ equity (non-GAAP), 5) a reconciliation of total
assets (GAAP) to tangible assets (non-GAAP), 6) computation of tangible common
stockholders’ equity to tangible assets (non-GAAP) and tangible common book
value per share (non-GAAP), 7) a reconciliation of stockholders’ equity (GAAP)
to Tier 1 capital (regulatory) and to Tier 1 common equity (non-GAAP), 8)
computation of Tier one common risk–based ratio (non-GAAP), 9) a
reconciliation of non-interest expense (GAAP) to adjusted non-interest expense
(non-GAAP), 10) a reconciliation of non-interest income (GAAP) to adjusted
non-interest income (non-GAAP), and 11) a computation of the efficiency ratio
and fee ratio (non-GAAP).

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Contact:

Regions Financial Corporation
Media Contact:
Tim Deighton, 205-264-4551
or
Investor Relations Contact:
List Underwood, 205-801-0265
 
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