<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 11-K
FOR ANNUAL REPORTS OF EMPLOYEE STOCK PURCHASE, SAVINGS AND SIMILAR PLANS
PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
FOR THE FISCAL YEAR ENDED DECEMBER 31, 1998
COMMISSION FILE NUMBER 0-6159
A. Full title of the plan and address, if different from that of the
issuer named below:
REGIONS FINANCIAL CORPORATION
PROFIT SHARING PLAN
B. Name of issuer of the securities held pursuant to the plan and the
address of its principal executive office:
REGIONS FINANCIAL CORPORATION
P. O. BOX 10247
BIRMINGHAM, ALABAMA 35202
<PAGE> 2
Regions Financial Corporation Profit Sharing Plan
Financial Statements
Years ended December 31, 1998 and 1997
The following report of independent auditors and financial statements of the
registrant are submitted herewith:
<TABLE>
<S> <C>
Report of Independent Auditors..........................................................................1
Statements of Net Assets Available for Benefits.........................................................2
Statements of Changes in Net Assets Available for Benefits..............................................3
Notes to Financial Statements...........................................................................4
Schedules
Item 27(a) - Schedule of Assets Held for Investment Purposes...........................................14
Item 27(d) - Schedule of Reportable Transactions.......................................................15
</TABLE>
All schedules (Nos. I, II and III) for which provision is made in the applicable
accounting regulations of the Securities and Exchange Commission are
inapplicable or the required disclosures have been made elsewhere in the
financial statements and notes thereto. These schedules have therefore been
omitted.
<PAGE> 3
Report of Independent Auditors
Regions Financial Corporation
Regions Financial Corporation Profit Sharing Plan
We have audited the accompanying statements of net assets available for benefits
of the Regions Financial Corporation Profit Sharing Plan (the Plan) as of
December 31, 1998 and 1997, and the related statements of changes in net assets
available for benefits for the years then ended. These financial statements are
the responsibility of the Plan's management. Our responsibility is to express an
opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for benefits of the Plan at
December 31, 1998 and 1997, and the changes in its net assets available for
benefits for the years then ended, in conformity with generally accepted
accounting principles.
Our audits were performed for the purpose of forming an opinion on the financial
statements taken as a whole. The accompanying supplemental schedules of assets
held for investment purposes as of December 31, 1998, and reportable
transactions for the year then ended, are presented for purposes of complying
with the Department of Labor's Rules and Regulations for Reporting and
Disclosure under the Employee Retirement Income Security Act of 1974, and are
not a required part of the financial statements. The supplemental schedules have
been subjected to the auditing procedures applied in our audits of the financial
statements and, in our opinion, are fairly stated in all material respects in
relation to the financial statements taken as a whole.
/s/ Ernst & Young LLP
Birmingham, Alabama
June 18, 1999
1
<PAGE> 4
Regions Financial Corporation Profit Sharing Plan
Statements of Net Assets Available for Benefits
<TABLE>
<CAPTION>
DECEMBER 31
1998 1997
------------ ------------
<S> <C> <C>
ASSETS
Cash and interest bearing deposits $ 286,160 $ 1,689,221
Employer contributions receivable 23,747,459 21,161,918
Interest and dividend income receivable 231,475 59,044
Investment securities:
Regions Balanced Fund (cost of $67,404,376 and
$60,079,451, respectively) 86,777,882 72,635,401
Regions Ltd. Maturity Gov't. Fund (cost of $26,911,897 and
$27,228,851, respectively) 27,213,552 27,260,160
Regions Growth Fund (cost of $62,626,756 and
$45,917,200, respectively) 83,192,120 51,929,971
Regions Value Fund (cost of $19,264,124 and
$14,195,024, respectively) 21,085,937 16,223,669
Regions Fixed Income Fund (cost of $6,829,982 and
$4,887,442, respectively) 6,995,066 4,987,139
Regions Treasury Money Market Fund (cost of $33,945,607
and $23,123,532, respectively) 33,945,607 23,123,532
Regions Unitized Fund (cost of $22,416,730 and
$14,422,413, respectively) 26,436,955 19,637,786
------------ ------------
285,647,119 215,797,658
Loans to participants 2,112,165 1,822,441
------------ ------------
Net assets available for plan benefits $312,024,378 $240,530,282
============ ============
</TABLE>
See accompanying notes.
2
<PAGE> 5
Regions Financial Corporation Profit Sharing Plan
Statements of Changes in Net Assets Available for Benefits
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31
1998 1997
------------ ------------
<S> <C> <C>
Additions:
Contributions from employers $ 24,023,039 $ 21,127,476
Contributions from employees 7,014,290 6,186,391
Conversions 17,587,318 48,135,997
Dividend income 7,048,433 5,909,951
Capital gains 9,481,143 7,999,038
Interest income 169,375 150,623
Gain on sale of assets 8,612,560 4,346,285
------------ ------------
73,936,158 93,855,761
Deductions:
Distributions to participants 22,745,964 15,472,440
------------ ------------
22,745,964 15,472,440
------------ ------------
51,190,194 78,383,321
Unrealized appreciation in aggregate fair value of
assets 20,303,902 15,567,706
------------ ------------
Net additions 71,494,096 93,951,027
Net assets available for benefits at
beginning of year 240,530,282 146,579,255
------------ ------------
Net assets available for benefits at end
of year $312,024,378 $240,530,282
============ ============
</TABLE>
See accompanying notes.
3
<PAGE> 6
Regions Financial Corporation Profit Sharing Plan
Notes to Financial Statements
December 31, 1998
1. SIGNIFICANT ACCOUNTING POLICIES
Contributions and interest income are recorded on the accrual basis. Dividend
income is accrued as of the ex-dividend date.
Participants' distributions are recorded on the cash basis. The administrator of
the Plan is of the opinion that any participant distributions requested but not
paid as of December 31, 1998 and 1997, would not be material.
Investment securities are stated at aggregate fair value. Securities which are
traded on a national securities exchange are valued at the last reported sales
price on the last business day of the year; investments traded in the
over-the-counter market are valued at the average of last reported bid and ask
prices and listed securities for which no sale was reported on that date are
valued at last reported sales price.
The change in the difference between fair value and the cost of investments is
reflected in the statement of changes in net assets available for benefits as
unrealized appreciation in the aggregate fair value of securities.
The realized gain or loss on investments is the difference between the proceeds
received and the cost of the specific investments sold.
Regions Financial Corporation (the Sponsor) paid all administrative expenses in
the years ended December 31, 1998 and 1997.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the amounts reported in the financial statements and accompanying notes.
Actual results could differ from those estimates.
4
<PAGE> 7
Regions Financial Corporation Profit Sharing Plan
Notes to Financial Statements (continued)
2. INVESTMENTS
Regions Bank, a subsidiary of Regions Financial Corporation, serves as corporate
trustee and custodian of the Plan holding the Plan's investment assets and
executing transactions therein. Regions Bank serves as the investment adviser to
the Regions mutual funds which are managed by Federated Securities Corporation,
Pittsburgh, Pennsylvania. The Regions Unitized Fund is managed by Regions Bank
and consists primarily of investments in the common stock of Regions Financial
Corporation and a small amount of cash and cash equivalents as necessary to meet
liquidity needs of the fund. Previously, the Regions funds were known as First
Priority funds. The names on these funds were changed effective May 15, 1998.
The Regions Unitized Fund's fair value is based on the quoted market price of
the common stock of Regions Financial Corporation. The cost and fair value of
investment securities are as follows:
<TABLE>
<CAPTION>
DECEMBER 31
1998 1997
----------------------------- ----------------------------
FAIR FAIR
COST VALUE COST VALUE
------------ ------------ ------------ -----------
<S> <C> <C> <C> <C>
Regions Balanced Fund $67,404,376 $86,777,882 $60,079,451 $72,635,401
Regions Ltd. Maturity Government Fund 26,911,897 27,213,552 27,228,851 27,260,160
Regions Growth Fund 62,626,756 83,192,120 45,917,200 51,929,971
Regions Value Fund 19,264,124 21,085,937 14,195,024 16,223,669
Regions Fixed Income Fund 6,829,982 6,995,066 4,887,442 4,987,139
Regions Treasury Money Market Fund 33,945,607 33,945,607 23,123,532 23,123,532
Regions Unitized Fund 22,416,730 26,436,955 14,422,413 19,637,786
</TABLE>
The fair values of individual investments that represent 5% or more of the
Plan's net assets are as follows:
<TABLE>
<CAPTION>
DECEMBER 31
1998 1997
----------- -----------
<S> <C> <C>
Regions Balanced Fund $86,777,882 $72,635,401
Regions Ltd. Maturity Government Fund 27,213,552 27,260,160
Regions Growth Fund 83,192,120 51,929,971
Regions Value Fund 21,085,937 16,223,669
Regions Treasury Money Market Fund 33,945,607 23,123,532
Regions Unitized Fund 26,436,955 19,637,786
</TABLE>
5
<PAGE> 8
Regions Financial Corporation Profit Sharing Plan
Notes to Financial Statements (continued)
3. DESCRIPTION OF THE PLAN
The Plan is a controlled group defined contribution plan covering substantially
all employees of Regions Financial Corporation and affiliates (the Company) who
have completed one year of service. A year of service is defined by the Plan as
a twelve month period, beginning with the date of hire, during which the
employee has completed 1,000 hours of service. The Plan is subject to, and in
compliance with, the provisions of the Employee Retirement Income Security Act
of 1974 (ERISA). The Plan provides profit sharing and disability benefits for
its participants.
Regions Financial Corporation and all affiliates adopting the Plan (Employers)
voluntarily contribute such amounts of profits as approved by Sponsor's Board of
Directors. The contributions are limited to the amount deductible under the
Internal Revenue Code. The Sponsor's Board of Directors approved the addition of
a 401(k) feature to the profit sharing plan, which became effective April 1,
1985. Under its provisions, employees may elect to contribute additional pre-tax
amounts to the Plan, up to 10% of base and commission compensation. Any amounts
so contributed are subject to withdrawal restrictions upon termination of
employment or prior to age 59 1/2. The Sponsor may elect to make a voluntary
401(k) contribution as approved by Sponsor's Board of Directors. The Plan's
assets are directed to various investment alternatives as specified by each
participant. Each participant's account is credited with the participant's
contribution and an allocation of: (1) the Company's contribution, and (2) Plan
earnings. Allocations are based on participant's earnings or account balances,
as defined.
Participants become fully vested in the Employer's profit sharing contributions
only after three years of eligible service. On termination of service, a
participant will normally receive a lump-sum amount equal to the vested value of
his or her account. If the participant meets certain requirements, he/she may
elect to receive periodic payments for up to ten years. Employer 401(k)
contributions vest immediately.
Although they have not expressed any intent to do so, the Employers have the
right under the Plan to discontinue such contributions at any time and the
Sponsor may terminate the Plan subject to the provisions of ERISA. In the event
of a termination of the Plan, the net assets of the Plan are to be administered
by the trustee and the Plan Administrator first for the payment of vested
benefits and second, to the remaining participants on a pro rata basis.
The foregoing description of the Plan provides only general information.
Participants should refer to the pamphlet "Summary Plan Description" for a more
complete description of the Plan's provisions. Copies of the pamphlet are
available from the Personnel Department of Regions Financial Corporation.
6
<PAGE> 9
Regions Financial Corporation Profit Sharing Plan
Notes to Financial Statements (continued)
4. NET ASSETS ALLOCATED BY FUND
During 1998 and 1997, the Plan's net increases in assets available for benefits
were $71,494,096 and $93,951,027, respectively, allocated by fund as follows:
<TABLE>
<CAPTION>
NET INCREASE
(DECREASE) IN FAIR FAIR VALUE AT
VALUE DURING YEAR END OF YEAR
------------------ -------------
<S> <C> <C>
YEAR ENDED DECEMBER 31, 1998
Investments at fair value as determined by quoted market price:
Regions Balanced Fund $14,195,975 $ 91,293,105
Regions Ltd. Maturity Government Fund (129,719) 28,957,053
Regions Growth Fund 32,460,146 89,953,133
Regions Value Fund 5,353,048 23,102,845
Regions Fixed Income Fund 2,101,764 7,417,093
Regions Treasury Money Market Fund 11,308,115 41,045,080
Regions Unitized Fund 7,607,370 28,147,010
Investments at estimated fair value:
Loans to participants 289,724 2,112,165
Cash account (1,692,327) (3,106)
----------- ------------
$71,494,096 $312,024,378
=========== ============
Year ended December 31, 1997
Investments at fair value as determined by quoted market price:
Regions Balanced Fund $18,715,528 $ 77,097,130
Regions Ltd. Maturity Government Fund (2,667,602) 29,086,772
Regions Growth Fund 28,558,905 57,492,987
Regions Value Fund 12,999,676 17,749,797
Regions Fixed Income Fund 4,693,240 5,315,329
Regions Treasury Money Market Fund 8,713,820 29,736,965
Regions Unitized Fund 20,539,640 20,539,640
Investments at estimated fair value:
Loans to participants 718,197 1,822,441
Cash account 1,679,623 1,689,221
----------- ------------
$93,951,027 $240,530,282
=========== ============
</TABLE>
7
<PAGE> 10
Regions Financial Corporation Profit Sharing Plan
Notes to Financial Statements (continued)
4. NET ASSETS ALLOCATED BY FUND (CONTINUED)
The Plan allows the participants to elect to invest in a Regions Balanced Fund,
Regions Ltd. Maturity Government Fund, Regions Treasury Money Market Fund,
Regions Value Fund, Regions Fixed Income Fund, Regions Growth Fund and/or
Regions Unitized Fund. It also allows participants to borrow against their
vested assets in the Plan. The following tables show the net assets at December
31, 1998 and 1997 and the activity for the years then ended.
8
<PAGE> 11
Regions Financial Corporation Profit Sharing Plan
Notes to Financial Statements (continued)
4. NET ASSETS ALLOCATED BY FUND (CONTINUED)
DECEMBER 31, 1998
<TABLE>
<CAPTION>
REGIONS LTD. REGIONS
REGIONS MATURITY REGIONS REGIONS FIXED
BALANCED GOVERNMENT GROWTH VALUE INCOME
FUND FUND FUND FUND FUND
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Assets:
Cash and interest bearing
deposits $ 60,277 $ 19,558 $ 107,866 $ 39,147 $ 5,807
Employer contributions receivable 4,454,946 1,629,627 6,653,147 1,977,761 390,131
Interest and dividend income
receivable -- 94,316 -- -- 26,089
Investment securities:
Regions Balanced Fund 86,777,882 -- -- -- --
Regions Ltd. Maturity Gov't
Fund -- 27,213,552 -- -- --
Regions Growth Fund -- -- 83,192,120 -- --
Regions Value Fund -- -- -- 21,085,937 --
Regions Fixed Income Fund -- -- -- -- 6,995,066
Regions Money Market Fund -- -- -- -- --
Regions Unitized Fund -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Total investment securities 86,777,882 27,213,552 83,192,120 21,085,937 6,995,066
Loans to participants -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Net assets available for plan
benefits $91,293,105 $28,957,053 $89,953,133 $23,102,845 $ 7,417,093
=========== =========== =========== =========== ===========
<CAPTION>
REGIONS
TREASURY REGIONS
MONEY MARKET UNITIZED LOANS TO CASH
FUND FUND PARTICIPANTS ACCOUNT TOTAL
-------------- ----------- ------------ ------------- ------------
<S> <C> <C> <C> <C> <C>
Assets:
Cash and interest bearing
deposits $ 17,938 $ 38,673 $ -- $ (3,106) $ 286,160
Employer contributions receivable 6,970,465 1,671,382 -- -- 23,747,459
Interest and dividend income
receivable 111,070 -- -- -- 231,475
Investment securities:
Regions Balanced Fund -- -- -- -- 86,777,882
Regions Ltd. Maturity Gov't
Fund -- -- -- -- 27,213,552
Regions Growth Fund -- -- -- -- 83,192,120
Regions Value Fund -- -- -- -- 21,085,937
Regions Fixed Income Fund -- -- -- -- 6,995,066
Regions Money Market Fund 33,945,607 -- -- -- 33,945,607
Regions Unitized Fund 26,436,955 -- -- 26,436,955
-------------- ----------- ---------- ------------- ------------
Total investment securities 33,945,607 26,436,955 -- -- 285,647,119
Loans to participants -- -- 2,112,165 -- 2,112,165
-------------- ----------- ---------- ------------- ------------
Net assets available for plan
benefits $ 41,045,080 $28,147,010 $2,112,165 $ (3,106) $312,024,378
============== =========== ========== ============= ============
</TABLE>
9
<PAGE> 12
Regions Financial Corporation Profit Sharing Plan
Notes to Financial Statements (continued)
4. NET ASSETS ALLOCATED BY FUND (CONTINUED)
DECEMBER 31, 1997
<TABLE>
<CAPTION>
REGIONS LTD. REGIONS
REGIONS MATURITY REGIONS REGIONS FIXED
BALANCED GOVERNMENT GROWTH VALUE INCOME
FUND FUND FUND FUND FUND
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Assets:
Cash and interest bearing deposits $ -- $ -- $ -- $ -- $ --
Employer contributions receivable 4,411,626 1,826,612 5,559,675 1,520,528 328,190
Interest and dividend income receivable 50,103 -- 3,341 5,600 --
Investment securities:
Regions Balanced Fund 72,635,401 -- -- -- --
Regions Ltd. Maturity Gov't Fund -- 27,260,160 -- -- --
Regions Growth Fund -- -- 51,929,971 -- --
Regions Value Fund -- -- -- 16,223,669 --
Regions Fixed Income Fund -- -- -- -- 4,987,139
Regions Money Market Fund -- -- -- -- --
Regions Unitized Fund -- -- -- -- --
----------- ----------- ---------- ----------- -----------
Total investment securities 72,635,401 27,260,160 51,929,971 16,223,669 4,987,139
Loans to participants -- -- -- -- --
----------- ----------- ----------- ------------ -----------
Net assets available for plan benefits $77,097,130 $29,086,772 $57,492,987 $17,749,797 $ 5,315,329
=========== =========== =========== =========== ===========
<CAPTION>
REGIONS
TREASURY REGIONS
MONEY MARKET UNITIZED LOANS TO CASH
FUND FUND PARTICIPANTS ACCOUNT TOTAL
------------- ----------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Assets:
Cash and interest bearing deposits $ -- $ -- $ -- $ 1,689,221 $ 1,689,221
Employer contributions receivable 6,613,433 901,854 -- -- 21,161,918
Interest and dividend income receivable -- -- -- -- 59,044
Investment securities:
Regions Balanced Fund -- -- -- -- 72,635,401
Regions Ltd. Maturity Gov't Fund -- -- -- -- 27,260,160
Regions Growth Fund -- -- -- -- 51,929,971
Regions Value Fund -- -- -- -- 16,223,669
Regions Fixed Income Fund -- -- -- -- 4,987,139
Regions Money Market Fund 23,123,532 -- -- -- 23,123,532
Regions Unitized Fund -- 19,637,786 -- -- 19,637,786
------------ ----------- ---------- ----------- ------------
Total investment securities 23,123,532 19,637,786 -- -- 215,797,658
Loans to participants -- -- 1,822,441 -- 1,822,441
----------- ----------- ---------- ------------ ------------
Net assets available for plan benefits $29,736,965 $20,539,640 $1,822,441 $ 1,689,221 $240,530,282
=========== =========== ========== ============ ============
</TABLE>
10
<PAGE> 13
Regions Financial Corporation Profit Sharing Plan
Notes to Financial Statements (continued)
4. NET ASSETS ALLOCATED BY FUND (CONTINUED)
YEAR ENDED DECEMBER 31, 1998
<TABLE>
<CAPTION>
REGIONS LTD. REGIONS REGIONS
REGIONS MATURITY REGIONS REGIONS FIXED TREASURY
BALANCED GOVERNMENT GROWTH VALUE INCOME MONEY MARKET
FUND FUND FUND FUND FUND FUND
-----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Additions:
Contributions from
employers $ 4,497,722 $ 1,628,268 $ 6,767,425 $ 2,020,507 $ 396,537 $ 6,996,729
Contributions from
employees 1,383,836 450,885 2,466,592 876,844 135,985 683,502
Conversions 754,180 37,446 4,352,711 1,769,812 74,748 6,214,755
New loans -- -- -- -- -- --
Other cash receipts from
loans 243,924 137,292 289,402 52,148 36,445 140,079
Dividend income 2,606,067 1,555,590 627,328 378,614 375,358 1,505,476
Capital gains 2,682,557 25,936 5,321,239 1,451,411 -- --
Interest income -- -- 175 25 -- --
Gain on sale of assets 3,152,781 14,238 3,451,007 862,235 24,695 --
------------ ------------ ------------ ------------ ----------- -----------
15,321,067 3,849,655 23,275,879 7,411,596 1,043,768 15,540,541
Deductions:
Distributions to
participants 5,959,327 2,352,390 4,675,084 1,012,664 504,077 6,199,424
Loan principal payments
and paid outs -- -- -- -- -- --
Other cash disbursements
from loans 321,691 158,689 368,018 74,769 19,483 130,535
------------ ------------ ------------ ------------ ----------- -----------
6,281,018 2,511,079 5,043,102 1,087,433 523,560 6,329,959
Interfund transfers (1,661,630) (1,738,641) (325,224) (764,283) 1,516,169 2,097,533
Unrealized appreciation
(depreciation) in
aggregate current
value of securities 6,817,556 270,346 14,552,593 (206,832) 65,387 --
------------ ------------ ------------ ------------ ----------- -----------
14,195,975 (129,719) 32,460,146 5,353,048 2,101,764 11,308,115
Net assets beginning of year 77,097,130 29,086,772 57,492,987 17,749,797 5,315,329 29,736,965
------------ ------------ ------------ ------------ ----------- -----------
Net assets end of year $ 91,293,105 $ 28,957,053 $ 89,953,133 $ 23,102,845 $ 7,417,093 $41,045,080
============ ============ ============ ============ =========== ===========
<CAPTION>
REGIONS
UNITIZED LOANS TO CASH
FUND PARTICIPANTS ACCOUNT TOTAL
-----------------------------------------------------------
<S> <C> <C> <C> <C>
Additions:
Contributions from
employers $ 1,715,851 $ -- $ -- $ 24,023,039
Contributions from
employees 1,016,646 -- -- 7,014,290
Conversions 6,075,993 -- (1,692,327) 17,587,318
New loans -- 1,173,637 -- 1,173,637
Other cash receipts from
loans 53,197 -- -- 952,487
Dividend income -- -- -- 7,048,433
Capital gains -- -- -- 9,481,143
Interest income -- 169,175 -- 169,375
Gain on sale of assets 1,107,604 -- -- 8,612,560
------------ ----------- ------------ ------------
9,969,291 1,342,812 (1,692,327) 76,062,282
Deductions:
Distributions to
participants 1,942,397 100,601 -- 22,745,964
Loan principal payments
and paid outs -- 952,487 -- 952,487
Other cash disbursements
from loans 100,452 -- -- 1,173,637
------------ ----------- ------------ ------------
2,042,849 1,053,088 -- 24,872,088
Interfund transfers 876,076 -- -- --
Unrealized appreciation
(depreciation) in
aggregate current
value of securities (1,195,148) -- -- 20,303,902
------------ ----------- ------------ ------------
7,607,370 289,724 (1,692,327) 71,494,096
Net assets beginning of year 20,539,640 1,822,441 1,689,221 240,530,282
------------ ----------- ------------ ------------
Net assets end of year $ 28,147,010 $ 2,112,165 $ (3,106) $312,024,378
============ =========== ============ ============
</TABLE>
11
<PAGE> 14
Regions Financial Corporation Profit Sharing Plan
Notes to Financial Statements (continued)
4. NET ASSETS ALLOCATED BY FUND (CONTINUED)
YEAR ENDED DECEMBER 31, 1997
<TABLE>
<CAPTION>
REGIONS LTD. REGIONS REGIONS
REGIONS MATURITY REGIONS REGIONS FIXED TREASURY
BALANCED GOVERNMENT GROWTH VALUE INCOME MONEY MARKET
FUND FUND FUND FUND FUND FUND
-----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Additions:
Contribution from $ 4,369,290 $ 1,803,546 $ 5,611,474 $ 1,514,733 $ 326,840 $ 6,599,889
employers
Contributions from
employees 1,644,449 580,313 2,245,246 617,082 125,917 515,198
Conversions 6,462,269 1,578,385 12,208,345 6,131,647 2,993,286 6,479,368
New loans -- -- -- -- -- --
Other cash receipts from
loans 178,268 137,340 192,824 28,365 15,082 109,025
Dividend income 2,361,519 1,520,279 507,777 272,253 170,772 1,076,184
Capital gains 2,114,394 -- 5,470,537 414,107 -- --
Interest income -- 6,971 -- -- 281 21,774
Gain (loss) on sale of
assets 1,726,573 (61,147) 1,735,224 277,097 6,016 --
------------ ------------ ----------- ----------- ----------- ------------
18,856,762 5,565,687 27,971,427 9,255,284 3,638,194 14,801,438
Deductions:
Distributions to
participants 4,175,903 3,342,608 2,895,853 453,312 89,647 3,931,526
Loan principal payments
and paid outs -- -- -- -- -- --
Other cash disbursements
from loans 280,083 198,924 226,803 56,667 12,029 102,100
------------ ------------ ----------- ----------- ----------- ------------
4,455,986 3,541,532 3,122,656 509,979 101,676 4,033,626
Interfund transfers (1,766,135) (4,893,821) 1,573,487 2,419,587 1,058,771 (2,053,992)
Unrealized appreciation
in aggregate current
value of securities 6,080,887 202,064 2,136,647 1,834,784 97,951 --
------------ ------------ ----------- ----------- ----------- ------------
Net additions (deductions) 18,715,528 (2,667,602) 28,558,905 12,999,676 4,693,240 8,713,820
Net assets beginning of year 58,381,602 31,754,374 28,934,082 4,750,121 622,089 21,023,145
------------ ------------ ----------- ----------- ----------- ------------
Net assets end of year $ 77,097,130 $ 29,086,772 $57,492,987 $17,749,797 $ 5,315,329 $ 29,736,965
============ ============ =========== =========== =========== ============
<CAPTION>
REGIONS
UNITIZED LOANS TO CASH
FUND PARTICIPANTS ACCOUNT TOTAL
------------ ------------- ----------- ------------
<S> <C> <C> <C> <C>
Additions:
Contribution from $ 901,704 $ -- $ -- $ 21,127,476
employers
Contributions from
employees 458,186 -- -- 6,186,391
Conversions 10,224,005 379,069 1,679,623 48,135,997
New loans -- 985,096 -- 985,096
Other cash receipts from
loans 19,628 -- -- 680,532
Dividend income 1,167 -- -- 5,909,951
Capital gains -- -- -- 7,999,038
Interest income -- 121,597 -- 150,623
Gain (loss) on sale of
assets 662,522 -- -- 4,346,285
------------ ----------- ----------- ------------
12,267,212 1,485,762 1,679,623 95,521,389
Deductions:
Distributions to
participants 496,558 87,033 -- 15,472,440
Loan principal payments
and paid outs -- 680,532 -- 680,532
Other cash disbursements
from loans 108,490 -- -- 985,096
------------ ----------- ----------- ------------
605,048 767,565 -- 17,138,068
Interfund transfers 3,662,103 -- -- --
Unrealized appreciation
in aggregate current
value of securities 5,215,373 -- -- 15,567,706
------------ ----------- ----------- ------------
Net additions (deductions) 20,539,640 718,197 1,679,623 93,951,027
Net assets beginning of year -- 1,104,244 9,598 146,579,255
------------ ----------- ----------- ------------
Net assets end of year $ 20,539,640 $ 1,822,441 $ 1,689,221 $240,530,282
============ =========== =========== ============
</TABLE>
12
<PAGE> 15
Regions Financial Corporation Profit Sharing Plan
Notes to Financial Statements (continued)
5. INCOME TAX STATUS
The Plan has received a determination letter dated June 22, 1995 from the
Internal Revenue Service stating that the Plan meets the requirements of a
qualified plan under applicable provisions of the Internal Revenue Code (IRC)
and therefore, the related trust is not subject to tax under present income tax
laws. The Plan has been amended since receiving the determination letter;
however, the Plan administrator is not aware of any course of action or series
of events that have occurred that might adversely affect the Plan's qualified
status. The Plan is required to operate in conformity with the IRC to maintain
its qualification.
6. TRANSACTIONS WITH PARTIES-IN-INTEREST
During the years ended December 31, 1998 and 1997, substantially all investment
transactions were with investment funds managed by Regions Bank and are
therefore related party transactions.
7. CONVERSIONS
During the years ended December 31, 1998 and 1997, $17,587,318 and $48,135,997
respectively, in net assets were transferred to the Plan from various profit
sharing/401(k) plans of companies combined with Regions Financial Corporation.
The assets transferred are shown in the Statements of Changes in Net Assets
Available for Benefits as conversions.
8. YEAR 2000 (UNAUDITED)
The Sponsor has completed its awareness, assessment, renovation and testing
steps of its Year 2000 plan. The Sponsor has completed the installation of the
Year 2000 releases provided by vendors on its core business systems and has
completed the century date testing and validation of its core business systems.
The Sponsor will continue to communicate with its vendors and install any
additional code releases through 1999. Management believes it has an effective
program in place to resolve the Year 2000 issue in a timely manner. The
mission-critical systems have been properly upgraded. However, disruptions in
the economy that are beyond the Sponsor's control resulting from the Year 2000
issues could materially adversely affect the Sponsor. Furthermore, the Sponsor
has no means of ensuring that external agents will be Year 2000 ready.
Management is continuing to develop contingency plans that will address various
Year 2000 scenarios including those designed to address failures of systems
outside the Sponsor's control.
13
<PAGE> 16
Regions Financial Corporation Profit Sharing Plan
Supplemental Schedules
Item 27a-Schedule of Assets Held for Investment Purposes
December 31, 1998
<TABLE>
<CAPTION>
Number of Shares or Current
Par Value Description Cost Value
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Mutual Funds
5,697,826 *Regions Balanced Fund $ 67,404,376 $ 86,777,882
2,705,125 *Regions Ltd. Maturity Government Fund 26,911,897 27,213,552
4,145,098 *Regions Growth Fund 62,626,756 83,192,120
1,280,263 *Regions Value Fund 19,264,124 21,085,937
661,159 *Regions Fixed Income Fund 6,829,982 6,995,066
33,945,607 *Regions Treasury Money Market Fund 33,945,607 33,945,607
1,825,513 *Regions Unitized Fund 22,416,730 26,436,955
----------- -----------
$239,399,472 $285,647,119
=========== ===========
Loans to Participants
(Interest rate ranges from 6% to 8%) $ -- $ 2,112,165
- ------------------------------------ =========== ===========
</TABLE>
* Indicates party-in-interest to the Plan.
14
<PAGE> 17
Regions Financial Corporation Profit Sharing Plan
Supplemental Schedules (continued)
Item 27d - Schedule of Reportable Transactions
Year ended December 31, 1998
<TABLE>
<CAPTION>
IDENTITY OF PARTY INVOLVED DESCRIPTION NUMBER OF PURCHASE SELLING COST OF
OF ASSET TRANSACTIONS PRICE PRICE ASSET
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Category (iii) - A series of transactions in excess of 5% of Plan assets:
Regions Bank Regions Balanced Fund 221 purchases $ 15,940,066 $ -- $ 15,940,066
271 sales -- 11,767,922 8,615,141
Regions Bank Regions Limited Maturity 142 purchases 6,376,027 -- 6,376,027
Government Fund 277 sales -- 6,707,219 6,692,981
Regions Bank Regions Growth Fund 270 purchases 23,123,067 -- 23,123,067
261 sales -- 9,864,518 6,413,511
Regions Bank Regions Treasury Money 161 purchases 23,011,628 -- 23,011,628
Market Fund 283 sales -- 12,189,553 12,189,553
Regions Bank Regions Unitized Fund 211 purchases 11,272,602 -- 11,272,602
169 sales -- 4,385,889 3,278,285
<CAPTION>
FAIR VALUE
OF ASSET ON
IDENTITY OF PARTY INVOLVED TRANSACTION
DATE NET GAIN
- ----------------------------------------------------------
<S> <C> <C>
Regions Bank $ 15,940,066 $ --
11,767,922 3,152,781
Regions Bank 6,376,027 --
6,707,219 14,238
Regions Bank 23,123,067 --
9,864,518 3,451,007
Regions Bank 23,011,628 --
12,189,553 --
Regions Bank 11,272,602 --
4,385,889 1,107,604
</TABLE>
There were no category (i), (ii) or (iv) transactions during the year ended
December 31, 1998.
15
<PAGE> 18
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Regions Financial Corporation Profit Sharing Plan Benefits Committee has
duly caused the annual report to be signed by the undersigned thereunto
duly authorized.
REGIONS FINANCIAL CORPORATION PROFIT SHARING PLAN
REGIONS FINANCIAL CORPORATION
Date: June 28, 1999 By: /s/ Douglas W. Graham
------------- ---------------------------------
Douglas W. Graham
Senior Vice President - Personnel
Regions Financial Corporation
<PAGE> 19
INDEX TO EXHIBITS
SEQUENTIALLY
EXHIBIT NUMBERED
NUMBER DESCRIPTION PAGE
- -------- ---------------------------------- ------------
23 -- Consent of Ernst & Young LLP.
<PAGE> 1
EXHIBIT 23-CONSENT OF INDEPENDENT AUDITORS
We consent to the incorporation by reference in the Registration Statement (Form
S-8 No. 333-24265) pertaining to the Regions Financial Corporation Profit
Sharing Plan of our report dated June 18, 1999, with respect to the financial
statements and schedules of the Regions Financial Corporation Profit Sharing
Plan included in this Annual Report (Form 11-K) for the year ended December 31,
1998.
/s/ Ernst & Young LLP
Birmingham, Alabama
June 25, 1999
