<PAGE>
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTER ENDED JUNE 30, 1995 COMMISSION FILE NUMBER
0-6159
REGIONS FINANCIAL CORPORATION
(Exact name of registrant as specified in its charter)
DELAWARE 63-0589368
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
417 North 20th Street, Birmingham, Alabama 35202
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (334) 832-8450
(Former name, former address and former fiscal year, if changed
since last report)
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months
and (2) has been subject to the filing requirements for at least
the past 90 days.
YES X NO
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practical date.
Common Stock, $.625 Par Value-45,407,123 shares outstanding
as of July 31, 1995
<PAGE>
REGIONS FINANCIAL CORPORATION
INDEX
Page Number
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)
Consolidated Statement of Condition -
June 30, 1995, December 31, 1994
and June 30, 1994 2
Consolidated Statement of Income -
Three months ended June 30, 1995 and
June 30, 1994 and Six months ended
June 30, 1995 and June 30, 1994 3
Consolidated Statement of Cash Flows -
Six months ended June 30, 1995 and
June 30, 1994 4
Notes to Consolidated Financial Statements -
June 30, 1995 5
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations 7
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K 13
SIGNATURES 14
<PAGE>
REGIONS FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CONDITION
(DOLLAR AMOUNTS IN THOUSANDS) (UNAUDITED)
<TABLE>
June 30 December 31 June 30
1995 1994 1994
<S> <C> <C> <C>
ASSETS
Cash and due from banks $ 554,612 $ 551,084 $ 401,463
Interest-bearing deposits in
other banks 19,916 630 630
Investment securities 2,017,892 1,948,675 1,882,843
Securities available for sale 612,878 660,513 648,083
Trading account assets 3,505 24,853 8,487
Mortgage loans held for sale 104,599 104,471 331,550
Federal funds sold and securities
purchased under agreement to resell 1,895 45,074 19,184
Loans 9,724,687 9,043,467 7,466,877
Unearned income (22,837) (25,665) (27,162)
Loans, net of unearned income 9,701,850 9,017,802 7,439,715
Allowance for loan losses (129,538) (116,988) (110,294)
Net Loans 9,572,312 8,900,814 7,329,421
Premises and equipment 185,355 160,801 148,434
Interest receivable 94,228 88,339 75,466
Due from customers on acceptances 37,769 110,520 46,348
Other assets 273,430 243,546 200,084
$13,478,391 $12,839,320 $11,091,993
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Non-interest-bearing $ 1,501,775 $ 1,450,330 $ 1,208,894
Interest-bearing 9,282,421 8,642,805 7,820,263
Total Deposits 10,784,196 10,093,135 9,029,157
Borrowed funds:
Short-term borrowings:
Federal funds purchased and
securities sold under agreement
to repurchase 822,932 991,214 510,040
Commercial paper 43,100 18,600 17,000
Other short-term borrowings 983 1,727 1,982
Total Short-term Borrowings 867,015 1,011,541 529,022
Long-term borrowings 585,991 519,238 437,573
Total Borrowed Funds 1,453,006 1,530,779 966,595
Bank acceptances outstanding 37,769 110,520 46,348
Other liabilities 124,572 91,016 120,415
Total Liabilities 12,399,543 11,825,450 10,162,515
Stockholders' Equity:
Common Stock, par value $.625 a share:
Authorized - 120,000,000 shares
Issued, including treasury stock -
46,872,523; 46,482,811; and
44,901,323 shares, respectively 29,295 29,052 28,063
Surplus 414,241 430,981 390,236
Undivided profits 644,857 577,901 528,896
Treasury stock, at cost - 1,474,579;
1,474,579; and 1,590,579
shares, respectively (12,441) (12,441) (16,276)
Unearned restricted stock (2,069) (966) (1,265)
Unrealized gain(loss) on securities
available for sale, net of taxes 4,965 (10,657) (176)
Total Stockholders' Equity 1,078,848 1,013,870 929,478
$13,478,391 $12,839,320 $11,091,993
</TABLE>
See notes to consolidated financial statements.
<PAGE>
REGIONS FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA) (UNAUDITED)
<TABLE>
Three Months Ended Six Months Ended
June 30 June 30
1995 1994 1995 1994
<S> <C> <C> <C> <C>
Interest Income:
Interest and fees on loans $207,906 $141,175 $404,863 $275,168
Interest on securities:
Taxable interest income 37,977 37,331 75,785 74,216
Tax-exempt interest income 3,490 3,435 7,017 6,795
Total Interest on Securities 41,467 40,766 82,802 81,011
Interest on mortgage loans held
for sale 1,633 4,832 3,371 8,351
Income on federal funds sold
and securities purchased under
agreement to resell 116 321 315 1,282
Interest on time deposits in
other banks 363 6 893 65
Interest on trading account
assets 60 46 139 63
Total Interest Income 251,545 187,146 492,383 365,940
Interest Expense:
Interest on deposits 108,535 69,074 209,604 137,042
Interest on short-term
borrowings 11,363 3,381 22,999 4,586
Interest on long-term borrowings 9,783 7,042 18,265 14,338
Total Interest Expense 129,681 79,497 250,868 155,966
Net Interest Income 121,864 107,649 241,515 209,974
Provision for loan losses 5,200 4,763 9,733 9,437
Net Interest Income After
Provision for Loan Losses 116,664 102,886 231,782 200,537
Non-Interest Income:
Trust department income 5,953 4,766 12,012 9,821
Service charges on deposit
accounts 14,287 12,250 28,634 24,098
Mortgage servicing and
origination fees 9,564 11,431 18,365 22,083
Securities gains (losses) - 88 - 368
Other 8,557 7,603 16,593 17,352
Total Non-Interest Income 38,361 36,138 75,604 73,722
Non-Interest Expense:
Salaries and employee benefits 49,840 45,072 98,009 88,079
Net occupancy expense 5,458 4,842 10,882 10,027
Furniture and equipment expense 6,051 5,719 11,767 10,974
Other 31,211 28,570 61,555 58,649
Total Non-Interest Expense 92,560 84,203 182,213 167,729
Income Before Income Taxes 62,465 54,821 125,173 106,530
Applicable income taxes 21,543 18,284 42,982 35,320
Net Income $ 40,922 $ 36,537 $ 82,191 $ 71,210
Average number of shares
outstanding 45,596 43,352 45,669 43,316
Per share:
Net income $0.90 $0.84 $1.80 $1.64
Cash dividends declared $0.33 $0.30 $0.66 $0.60
</TABLE>
See notes to consolidated financial statements.
<PAGE>
REGIONS FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(DOLLAR AMOUNTS IN THOUSANDS) (UNAUDITED)
<TABLE>
Six Months Ended
June 30
1995 1994
<S> <C> <C>
Operating Activities:
Net income $ 82,191 $ 71,210
Adjustments to reconcile net cash provided
by operating activities:
Depreciation and amortization of premises and
equipment 9,480 8,448
Provision for loan losses 9,733 9,437
Net (accretion) amortization of securities (67) 3,526
Amortization of loans and other assets 10,377 8,983
Amortization of deposits and borrowings (3,360) (3,360)
Provision for losses on other real estate 0 (763)
Deferred income taxes (4,387) (4,868)
(Gain) on sale of premises and equipment (130) (412)
Realized security (gains) 0 (368)
Decrease in trading account assets 21,348 11,881
(Increase) in mortgages held for sale (128) (45,885)
(Increase) in interest receivable (3,568) (7,978)
(Increase) in other assets (34,633) (2,028)
Increase in other liabilities 21,574 11,530
Stock issued to employees 0 176
Other 524 288
Net Cash Provided By Operating Activities 108,954 59,817
Investing Activities:
Net (increase) in loans (293,853) (606,659)
Proceeds from sale of securities 0 28,793
Proceeds from maturity of investment securities 187,681 685,357
Proceeds from maturity of securities available
for sale 73,406 18,045
Purchase of investment securities (243,967) (766,536)
Purchase of securities available for sale 0 (129,874)
Net (increase) decrease in interest-bearing deposits
in other banks (10,892) 10,401
Proceeds from sale of premises and equipment 383 3,000
Purchase of premises and equipment (20,308) (19,264)
Net decrease in customers' acceptance liability 72,751 29,565
Net cash received in acquisition 17,981 0
Net Cash (Used) By Investing Activities (216,818) (747,172)
Financing Activities:
Net increase in deposits 299,707 260,658
Net (decrease) increase in short-term borrowings (152,376) 325,261
Proceeds from long-term borrowings 100,460 1,893
Payments on long-term borrowings (40,615) (26,017)
Net (decrease) in bank acceptance liability (72,751) (29,565)
Issuance of stock for acquisitions 0 35,704
Cash dividends (29,877) (25,494)
Purchase of treasury stock for acquisitions (36,797) (3,956)
Proceeds from exercise of stock options 462 762
Net Cash Provided By Financing Activities 68,213 539,246
(Decrease) In Cash And Cash Equivalents (39,651) (148,109)
Cash and Cash Equivalents, Beginning of Period 596,158 568,756
Cash And Cash Equivalents, End of Period $ 556,507 $ 420,647
</TABLE>
See notes to consolidated financial statements.
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 1995
NOTE A -- Basis of Presentation
The accompanying unaudited consolidated financial statements have
been prepared in accordance with the instructions for Form 10-Q,
and, therefore, do not include all information and footnotes
necessary for a fair presentation of financial position, results
of operations and cash flows in conformity with generally accepted
accounting principles. For a summary of significant accounting
policies that have been consistently followed, see NOTE A to the
Consolidated Financial Statements included in the 1994 Annual Re-
port to Stockholders previously filed as Exhibit 13 to Form 10-K.
It is management's opinion that all adjustments, consisting of
only normal and recurring items necessary for a fair presentation,
have been included.
Certain amounts in prior periods have been reclassified to conform
to the current period presentation or restated for acquisitions
accounted for as poolings-of-interests.
NOTE B -- Completed Acquisition
On May 15, 1995, Regions issued 946,109 shares of common stock in
exchange for all the outstanding capital stock of Fidelity Federal
Savings Bank of Dalton, Georgia. The acquisition, accounted for
as a pooling-of-interests, added $333 million in assets and 4
offices in the Dalton, Georgia area.
NOTE C - Issuance of Bank Notes
On April 11, 1995, Regions Bank of Louisiana, Regions' Louisiana
bank subsidiary, issued $100 million in unsecured Senior Bank
Notes (Notes). The Notes were issued in three parts (i) $25
million due October 5, 1995, at an interest rate of 6.40%; (ii)
$35 million due April 11, 1996, at an interest rate of 6.71%; and
(iii) $40 million due April 11, 1997, at an interest rate of
7.06%. The proceeds of the Notes were used to reduce other short-
term borrowings.
NOTE D - New Accounting Standard
Effective January 1, 1995, Regions adopted Statement of Financial
Accounting Standards No. 114, "Accounting by Creditors for
Impairment of a Loan", as amended by Statement of Financial
Accounting Standards No. 118, "Accounting by Creditors for
Impairment of a Loan - Income Recognition and Disclosures"
(Statement 114). The statement requires that certain impaired
loans be measured at the present value of expected future cash
flows discounted at the loan's effective interest rate or at the
loan's observable market price, or the fair value of the
collateral if the loan is collateral dependent. The adoption of
Statement 114 resulted in no material impact on Regions' financial
condition or results of operations.
NOTE E - FDIC Insurance Assessments
The FDIC has approved a reduction in annual premium rates for Bank
Insurance Fund (BIF) member banks in the lowest assessment rate
category from $0.23 to $0.04 per $100 of deposits, effective for
the second half of 1995. Legislative proposals to recapitalize the
Savings Association Insurance Fund (SAIF), including a one-time
assessment on SAIF-insured deposits, are currently pending.
Approximately 26% of Regions' deposits are considered SAIF-insured
deposits, with the remaining 74% considered BIF-insured deposits.
Although the reduction in premium rates for BIF-insured deposits
would result in reduced FDIC insurance expense applicable to BIF-
insured deposits during the second half of 1995, certain
legislative proposals to recapitalize the SAIF could more than
offset this benefit in 1995.
<PAGE>
Management's Discussion and Analysis
of Financial Condition and Results of Operations
Regions' total assets at June 30, 1995, were $13.5 billion --an
increase of 22% over a year earlier. This increase was due to
growth in almost all categories of assets, particularly loans, due
to acquisition activity and strong internal growth. Since
year-end 1994, total assets have increased 5%.
Comparisons with the prior year are significantly affected by four
of the following acquisitions, which were accounted for as
purchases, and by the Fidelity Federal Savings Bank (Fidelity)
acquisition, which was accounted for as a pooling-of-interests.
Prior year financial information has not been restated to give
effect to the Fidelity transaction since the effect is not
material. Relevant 1994 and 1995 acquisitions are summarized as
follows:
<TABLE>
<S> <C> <C> <C> <C>
Date Company Headquarters Total Assets Accounting
Acquired Acquired Location (in thousands) Treatment
July First Fayette Fayette,
1994 Bancshares Inc. Alabama $ 76,586 Purchase
August BNR New Roads,
1994 Bancshares Inc. Louisiana 136,799 Pooling
September First Community
1994 Bancshares Inc. Rome, Georgia 125,090 Pooling
November American Monroe,
1994 Bancshares Inc. Louisiana 302,674 Purchase
December Union Bank & Montgomery,
1994 Trust Company Alabama 417,903 Purchase
March First
1995 Commercial Chalmette,
Bancshares Inc. Louisiana 145,968 Purchase
May 1995 Fidelity
Federal Dalton,
Savings Bank Georgia 333,336 Pooling
</TABLE>
Loans have increased 30% since a year ago. The four purchase
acquisitions, combined with the Fidelity transaction, accounted
for a 10% increase in loans, with the remaining 20% increase
attributable to internal growth, primarily in consumer and one-to-
four family residential mortgage loans. Since year-end, total
loans have increased 8%, due to $392 million in loans added by
acquisitions and $292 million in internal growth. The average
yield on loans during the first half of 1995 was 8.68%, compared
to 7.82% during the same period in 1994. This increase was pri-
marily the result of higher average base lending rates.
Non-performing assets were as follows (in thousands):
<TABLE>
June 30, Dec. 31, June 30,
1995 1994 1994
<S> <C> <C> <C>
Non-accruing loans $ 37,766 $ 38,035 $ 38,235
Loans past due 90
days or more 6,437 5,622 5,590
Renegotiated loans 3,450 2,818 4,011
Other real estate 5,821 6,267 9,806
Total $ 53,474 $ 52,742 $ 57,642
Non-performing assets
as a percentage of
loans and other real
estate 0.55% 0.57% 0.77%
</TABLE>
Non-accruing loans have remained relatively constant since June of
last year. At June 30, 1995, real estate loans comprised $22.7
million of total non-accruing loans, with commercial loans
accounting for $10.4 million and installment loans $4.7 million.
Other real estate decreased $446,000 since year-end and $4.0
million since mid-year 1994, due primarily to the disposition of
several parcels of other real estate.
Activity in the allowance for loan losses is summarized as follows
(in thousands):
<TABLE>
June 30, June 30,
1995 1994
<S> <C> <C>
Balance at beginning of year $116,988 $100,762
Net loans charged-off (recovered):
Commercial (434) 317
Real estate (280) 2,234
Installment 2,466 1,258
Total 1,752 3,809
Allowance of acquired banks 4,569 3,904
Provision charged to expense 9,733 9,437
Balance at end of period $129,538 $110,294
</TABLE>
Net loan losses in the first half of 1995 were 0.04% of loans
(annualized), compared to 0.11% of loans (annualized) in the first
half of 1994. Recoveries in the first half of 1995, of prior
period real estate and commercial loans charge-offs, resulted in
lower net loan losses in 1995. At June 30, 1995, the allowance
for loan losses stood at 1.34% of loans, compared to 1.48% a year
ago and 1.30% at year-end. The allowance for loan losses as a
percentage of non-performing loans and non-performing assets was
272% and 242%, respectively, at June 30, 1995, up from 231% and
191%, respectively, at June 30, 1994.
The allowance for loan losses is maintained at a level deemed ade-
quate by management to absorb possible unidentified losses from
loans in the portfolio. In determining the adequacy of the allow-
ance for loan losses, management considers numerous factors,
including but not limited to: (1) management's estimate of future
economic conditions and the resulting impact on Regions, (2)
management's estimate of the financial condition and liquidity of
certain loan customers, and (3) management's estimate of
collateral values of property securing certain loans. Because all
of these factors and others involve the use of management's
estimation and judgment, the allowance for loan losses is
inherently subject to adjustment at future dates. At June 30,
1995, it is management's opinion that the allowance for loan
losses is adequate. However, unfavorable changes in any of the
above factors or other factors could require additional
provisions, in excess of normal provisions, to the allowance for
loan losses in future periods.
Total securities have increased 4% since a year ago, as a result
of securities added by acquisitions, partially offset by maturing
securities not being reinvested in this category of earning asset.
Since year end, total securities have remained essentially
unchanged.
Mortgage loans held for sale decreased $227.0 million since June
30, 1994, as a result of lower levels of residential mortgage loan
production at Regions' mortgage banking subsidiary during the
first half of 1995, compared to the first half of 1994.
Interest-bearing deposits in other banks at June 30, 1995 totaled
$19.9 million, an increase of $19.3 million over a year ago and
year end. This increase resulted primarily from interest-bearing
deposits added by recent acquisitions.
Net federal funds purchased and security repurchase agreements
totaled $821.0 million at June 30, 1995, $946.1 million at year-
end and $490.9 million at June 30, 1994. The level of federal
funds and security agreements can fluctuate significantly on a
day-to-day basis, depending on funding needs and which sources of
funds are used to satisfy those needs. During the first half of
1995, net funds purchased averaged $720.2 million, compared to
$144.6 million in the first half of 1994, indicating more reliance
on purchased funds to support earning assets in the first half of
1995 than in the same period last year.
Premises and equipment have increased $24.6 million since year end
and $36.9 million since June 30, 1994. These increases were due
primarily to the addition of premises and equipment obtained
through acquisitions since mid-1994.
Other assets have increased $29.9 million since year end and $73.3
million since the second quarter of last year, due primarily to
increased excess purchase price resulting from acquisitions and
increased mortgage servicing rights added by purchases of several
mortgage servicing portfolios.
Total deposits have increased 19% since June of last year. The
deposits acquired in connection with acquisitions resulted in a
12% increase, with the remaining 7% increase attributable to
internal growth. The internal growth resulted primarily from
increases in certificates of deposit. Since year-end, total
deposits have increased 3%, after adjusting for the deposits
acquired in connection with acquisitions during the first half of
1995.
Long-term borrowings have increased $66.8 million since year end
and $148.4 million since June 30, 1994. During the third quarter
of 1994, Regions issued $125 million in subordinated notes, and in
the second quarter of 1995, issued $100 million in senior bank
notes (see Note C to the Consolidated Financial Statements).
These increases were partially offset by payments and maturities
of Federal Home Loan Bank advances and other notes payable.
Stockholders' equity was $1.1 billion at June 30, 1995, an in-
crease of 16% over last year and an increase of 6% since year end.
These increases resulted primarily from internally generated capi-
tal and equity added in connection with acquisitions since mid-
1994. The unrealized gain on securities available for sale (net
of taxes) totaled $5.0 million at June 30, 1995, compared to a
unrealized loss of $10.7 million at year end. Regions' ratio of
equity to total assets was 8.00% at June 30, 1995, compared to
8.38% a year ago and 7.90% at year-end.
Regions' primary sources of liquidity are maturities from its loan
and securities portfolios. At June 30, 1995, Regions had approxi-
mately $217 million of securities maturing in one year or less.
The average maturity of the securities portfolio was 7.4 years
using contractual maturities. At December 31, 1994, approximately
$1.5 billion in loans was due to mature in one year or less.
Although the corresponding amount at June 30, 1995, has not been
determined, loan maturities would provide significant liquidity.
In addition to these sources of liquidity, Regions has access to
purchased funds in the state and national money markets. Liquidity
is further enhanced by a relatively stable source of deposits. At
June 30, 1995, the loan to deposit ratio was 89.96%, compared to
82.40% a year ago and 89.35% at year-end. Regions' management
places constant emphasis on the maintenance of adequate liquidity
to meet conditions that might reasonably be expected to occur.
Net interest income for the first half of 1995 increased $31.5
million or 15%, compared to the same period in 1994. The increased
net interest income resulted from a higher level of earning
assets, partially offset by lower spreads on those earning assets.
The net yield on interest-earning assets (taxable equivalent
basis) was 4.11% in the first half of 1995, compared to 4.32% in
the same period in 1994. This ratio declined due primarily to
changes in the product mix (both in interest-earning assets and
interest-bearing liabilities) and the effect of acquisitions. For
the second quarter of 1995, net interest income increased $14.2
million or 13%, over the second quarter of 1994, due to increased
earning assets, partially offset by lower spreads on those earning
assets.
Total non-interest income increased $1.9 million or 3% over the
first half of 1994 and $2.2 million or 6% over the second quarter
of 1994. Trust department income increased $2.2 million or 22% on
a year-to-year comparison and $1.2 million or 25% on a quarterly
comparison. This resulted from growth in trust assets, due to
acquisitions and internal growth, and increases in personal,
corporate, estate and employee benefit trust fees. Increased
charges for selected deposit account services, coupled with an
increase in the number of deposit accounts due to acquisitions and
internal growth, resulted in service charges on deposit accounts
increasing $4.5 million or 19% in the first half of 1995 and $2.0
million or 17% in the second quarter, compared to the same periods
in 1994. Mortgage servicing and origination fees decreased $3.7
million or 17% in the first half of 1995 and $1.9 million or 16%
in the second quarter, compared to the same periods in 1994.
Mortgage origination fees were down 57% on a year-to-year
comparison and 53% on a quarterly comparison with last year, due
to decreased volume of new loan production. Mortgage servicing
fees were relatively constant in the year-to-date and quarterly
periods, partially offsetting the decline in origination fees.
The mortgage company's servicing portfolio totaled $10.4 billion
at June 30, 1995. Other non-interest income decreased $759,000 or
4% in the first half of 1995, over the comparable year ago period,
due primarily to a $2.3 million gain on the sale of mortgage
servicing rights in the first quarter of 1994, partially offset by
higher international department income and increased automated
teller machine fees in 1995. Compared to the second quarter of
last year, other non-interest income increased $954,000 or 13% due
to increased customer fees and higher international department
income.
Total non-interest expense increased $14.5 million or 9% in the
first half of 1995 and $8.4 million or 10% in the second quarter
of 1995, compared to the same periods in 1994. Salaries and
employee benefits were up 11% in the first half of 1995 and in the
second quarter, due to an increase in the number of employees
because of acquisitions, coupled with normal merit increases and
higher benefit costs. Net occupancy expense and furniture and
equipment expense increased 8% in the first half of 1995 and 9% in
the second quarter, over the same periods in 1994, primarily
because of additional expenses associated with branch offices and
equipment added by the 1994 and 1995 acquisitions. Other
non-interest expense increased $2.9 million or 5% in the first
half of 1995 and $2.6 million or 9% in the second quarter,
primarily because of increases in excess purchase price
amortization, FDIC insurance, postage, advertising and
professional fees. Partially offsetting these increases was a
$1.8 million recovery on a lawsuit settlement recognized in the
first quarter of 1995 and a lower level of losses in 1995 from the
sale or holding of residential mortgages originated by the
mortgage company.
Income tax expense increased $7.7 million (22%) over the first
half of 1994 and $3.3 million (18%) over the second quarter of
1994, primarily because of an increase in taxable income, and an
increase in taxable income as a percentage of total income.
Net income for the second quarter was $40.9 million--up 12% over
the second quarter of last year. Year-to-date net income totaled
$82.2 million or $1.80 per share, an increase of 10% on a per share
basis over the first half of 1994. Return on stockholders' equity
declined to 15.67%, compared to 15.84% in the first half of last
year. Return on assets also declined to 1.27% in the first half of
1995, compared to 1.32% in the first half of 1994.
<PAGE>
Part II. Other Information
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits:
(27) Financial Data Schedule (SEC use only)
(b) Reports on Form 8-K:
None
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act
of 1934, the registrant has duly caused this report to be signed
on its behalf by undersigned thereunto duly authorized.
Regions Financial Corporation
DATE: August 11, 1995 /s/ Robert P. Houston
Robert P. Houston
Executive Vice President and
Comptroller
(Chief Accounting Officer and
Duly Authorized Officer)
<TABLE> <S> <C>
<ARTICLE> 9
<CIK> 0000036032
<NAME> REGIONS FINANCIAL CORPORATION
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> JUN-30-1995
<CASH> 554,612,000
<INT-BEARING-DEPOSITS> 19,916,000
<FED-FUNDS-SOLD> 1,895,000
<TRADING-ASSETS> 3,505,000
<INVESTMENTS-HELD-FOR-SALE> 612,878,000
<INVESTMENTS-CARRYING> 2,017,892,000
<INVESTMENTS-MARKET> 2,030,464,000
<LOANS> 9,701,850,000
<ALLOWANCE> 129,538,000
<TOTAL-ASSETS> 13,478,391,000
<DEPOSITS> 10,784,196,000
<SHORT-TERM> 867,015,000
<LIABILITIES-OTHER> 162,341,000
<LONG-TERM> 585,991,000
<COMMON> 29,295,000
0
0
<OTHER-SE> 1,049,553,000
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<INTEREST-DEPOSIT> 209,604,000
<INTEREST-EXPENSE> 250,868,000
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<EXPENSE-OTHER> 182,213,000
<INCOME-PRETAX> 125,173,000
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<CHANGES> 0
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<EPS-PRIMARY> 1.80
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<YIELD-ACTUAL> 4.11
<LOANS-NON> 37,766,000
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<ALLOWANCE-UNALLOCATED> 129,538,000
</TABLE>
