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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 18, 1999
REGIONS FINANCIAL CORPORATION
(Exact name of registrant as specified in its charter)
Delaware 0-6159 63-0589368
(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification No.)
incorporation)
417 North 20th Street, Birmingham, Alabama 35203
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (205) 944-1300
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Item 5. Other Events
On October 18, 1999, the registrant Regions Financial Corporation issued a
press release reporting on its results of operations for the quarter and for the
nine-month period ended September 30, 1999. The press release is included in
this report as exhibit 99.1.
Item 7. Financial Statements and Exhibits.
(c) Exhibits. The exhibits listed in the exhibit index are filed as a part of
or incorporated by reference in this current report on Form 8-K.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Regions Financial Corporation (Registrant)
By: /s/ Robert P. Houston
Executive Vice President and Comptroller
Date: October 18, 1999
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EXHIBIT INDEX
Sequential
Exhibit Page No.
99.1 Press Release dated October 18, 1999.
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EXHIBIT 99.1
October 18, 1999
REGIONS ANNOUNCES EARNINGS
Regions Financial Corporation today announced earnings for the quarter and nine
months ended September 30, 1999. Net income for the third quarter totaled $131.0
million or $.59 per diluted share. Year-to-date net income was a record $396.3
million or $1.76 per diluted share. Using operating income comparisons, which
exclude non-recurring merger and consolidation charges incurred in the third
quarter of last year, this year's third quarter per share diluted earnings
improved 4%, and this year's year-to-date operating earnings per diluted share
increased 6%, over the comparable periods last year.
Year-to-date annualized return on stockholders' equity was 17.16%, with a return
on assets of 1.36% and an efficiency ratio of 53.23%. Loans were up 15% over
last year's third quarter totals.
Carl E. Jones, Jr., president and chief executive officer of Regions, said,
"Operating results for this year improved over last year, even though higher
interest rates have unfavorably affected our business this year. This quarter's
loan growth remained strong, reflecting continued strength in our southeastern
markets. We continue to make progress on integrating recent acquisitions and
introducing our new customers to Regions products and services. This quarter we
added 18,000 customers to our RegionsNet internet banking service."
Also, during the third quarter Regions repurchased 4.9 million shares of its
common stock in connection with its 12 million share buyback program, which was
authorized by the Board of Directors on July 21st of this year.
In connection with the preparation of Regions quarterly results, management
discovered an overaccrual of interest income on a certain portion of the
Company's mortgage loan portfolio following a processing system conversion. As
a result, Regions will adjust its results of operations for the periods ended
March 31, 1999 and June 30, 1999. As adjusted, Regions net income for the
quarter ended March 31, 1999 was $129.4 million or $.57 per diluted share,
instead of $136.5 million or $.61 per diluted share as previously reported, and
for the quarter ended June 30, 1999 was $136.0 million or $.60 per diluted
share, instead of $142.0 million or $.63 per diluted share as previously
reported. This issue has been corrected and will not affect future periods.
Regions Financial Corporation is a bank holding company providing banking
services from 731 offices in Alabama, Arkansas, Florida, Georgia, Louisiana,
South Carolina, Tennessee and Texas. Regions also provides banking-related
services in the fields of mortgage banking, insurance, securities brokerage
and mutual funds. Regions' common stock is traded in the Nasdaq National Market
System under the symbol RGBK.
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October 18, 1999
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Financial Highlights (Unaudited)
(In thousands, except per share amounts)
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<S> <C> <C> <C> <C> <C> <C>
Three Months Ended Nine Months Ended
September 30 September 30
Earnings 1999 1998 Change 1999 1998 Change
Operating income* $130,958 $127,809 2% $396,327 $371,230 7%
Net income $130,958 $51,284 155% $396,327 $294,705 34%
Per share:
Operating income* $0.59 $0.58 2% $1.78 $1.69 5%
Operating income--diluted* $0.59 $0.57 4% $1.76 $1.66 6%
Net income $0.59 $0.23 157% $1.78 $1.34 33%
Net income--diluted $0.59 $0.23 157% $1.76 $1.32 33%
Net income--cash basis (1) $0.61 $0.25 144% $1.84 $1.39 32%
Net income--diluted cash basis (1) $0.61 $0.24 154% $1.82 $1.37 33%
Cash dividends declared $0.25 $0.23 9% $0.75 $0.69 9%
</TABLE>
<TABLE>
<S> <C> <C> <C>
September 30
Financial Condition 1999 1998 Change
Total assets $41,229,164 $35,076,264 18%
Loans, net of unearned income $27,511,472 $23,852,206 15%
Securities $9,499,770 $7,696,008 23%
Total earning assets $38,397,136 $32,560,256 18%
Total deposits $29,804,048 $27,184,895 10%
Stockholders' equity $3,019,937 $2,957,653 2%
Stockholders' equity per share $13.77 $13.38 3%
Selected Ratios
Return on average stockholders' equity based on
operating income* 17.16% 17.36%
Return on average stockholders' equity based on
net income 17.16% 13.79%
Return on average total assets based on
operating income* 1.36% 1.48%
Return on average total assets based on
net income 1.36% 1.17%
Stockholders' equity to total assets 7.32% 8.43%
Allowance for loan losses as a
percentage of loans, net of
unearned income 1.20% 1.36%
Loans, net of unearned income, to
total deposits 92.31% 87.74%
Efficiency ratio excluding non-recurring items 53.23% 54.00%
*Excludes non-recurring merger and consolidation charges of $114.7 million pre-tax ($76.5 million
after tax or $.34 per diluted share) in third quarter 1998.
(1) Net income excluding the amortization of excess purchase price.
For additional information, visit Regions' Web site at http://www.regionsbank.com or contact: Ronald C.
Jackson, Senior Vice President and Director of Investor Relations, Regions Financial Corporation,
Telephone 205/326-7090.
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October 18, 1999
Page Three
Statements made in this press release, other than those containing historical
information, are forward-looking statements made pursuant to the safe-harbor
provisions of the Private Securities Litigation Act of 1995. Such statements
involve risks and uncertainties that may cause results to differ materially from
those set forth in these statements. Regions cautions readers that results and
events subject to forward-looking statements could differ materially due to the
following factors: possible changes in economic and business conditions; the
ability of Regions to integrate recent acquisitions and attract new customers;
possible changes in monetary and fiscal policies, laws and regulations; the
effects of easing of restrictions on participants in the financial services
industry; the cost and other effects of legal and administrative cases; possible
changes in the credit worthiness of customers and the possible impairment of
collectibility of loans resulting from the impact of Year 2000 issues on
customers' operations and cashflow; and other risks and factors identified in
the company's filings with the Securities and Exchange Commission.
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