<PAGE> 1
EXHIBIT 99.1
October 18, 2000
REGIONS ANNOUNCES THIRD QUARTER EARNINGS OF $127.9 MILLION OR $.58 PER SHARE
Regions Financial Corporation today announced earnings for the quarter and nine
months ended September 30, 2000. Third quarter 2000 net income totaled
$127,859,000 or $.58 per diluted share, compared to third quarter 1999 net
income of $130,958,000 or $.59 per diluted share. Year-to-date 2000 net income
was $399,157,000 or $1.80 per diluted share, compared to net income through the
first nine months of last year of $396,327,000 or $1.76 per diluted share.
Operating income for the first nine months of 2000, which excludes a net
after-tax gain of $17.8 million resulting from the sale of Regions' credit card
portfolio and sales of securities during the first quarter of 2000, totaled
$381,355,000 or $1.72 per diluted share.
Regions continues to experience loan and deposit growth. In the third quarter
of 2000, internal loan growth was 13% annualized, using linked-quarter average
balances, excluding the effect of acquisitions. Real estate construction and
mortgage loans, along with commercial loans, were the strongest categories of
growth. For the nine months ended September 30, 2000, core deposits increased
$1.7 billion or 9% annualized. This is the third consecutive quarter of steady
growth in average core deposits.
The third quarter of 2000 was also a strong period for growth in several
categories of fee income. Trust fees, service charges on deposit accounts and
other customer fees, including retail investment service fees, insurance
commissions and international banking service fees, registered annualized
double-digit increases compared to the prior quarter.
Regions' good results in overhead management continue to reflect ongoing
initiatives to enhance efficiency and productivity. In the third quarter of
2000, non-interest expenses increased less than 1% annualized over second
quarter 2000 levels, including three acquisitions in the third quarter.
"Regions continues to show solid profitability and growth, even with intense
margin pressure from higher interest rates," Regions president and chief
executive officer, Carl E. Jones, Jr., stated. "Our ongoing sales initiatives
continue to produce excellent loan growth and double-digit increases in fee
income. We continue to steadily increase core deposits, at a time when core
deposit growth is especially challenging for our industry. I am also very
pleased with our favorable results in managing overhead."
"We are especially proud of our asset quality," Mr. Jones added. "Net loan
losses through the first nine months of 2000 decreased $6.1 million compared to
the same period last year. Regions' modest level of losses combined with
limited exposure to syndicated credits and declining non-performing assets,
including 90+ day past due loans, is a tribute to our credit culture and sound
underwriting standards."
In addition to the strong internal growth in the third quarter, Regions
recently strengthened its franchise through the completion of three
acquisitions. During the third quarter of 2000, Regions added banks in the
Austin, Texas market area, the Alexandria, Louisiana market area and the Ormond
Beach/Daytona, Florida market area. Combined, these banks added over $500
million in assets and 16 offices to Regions' eight-state franchise.
Regions Financial Corporation is a $43.6 billion bank holding company providing
banking services from more than 750 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.
Continued Next Page
<PAGE> 2
October 18, 2000
Page Two
FINANCIAL HIGHLIGHTS (UNAUDITED)
(In thousands, except per share amounts)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30 September 30
----------------------- ------------------------
Earnings 2000 1999 Change 2000 1999 Change
-------- ---- ---- ------ ---- ---- ------
<S> <C> <C> <C> <C> <C> <C>
Operating income* $127,859 $130,958 -2% $381,355 $396,327 -4%
Net income $127,859 $130,958 -2% $399,157 $396,327 1%
Net income--cash basis(1) $134,510 $136,334 -1% $418,267 $410,141 2%
Per share:
Operating income* $0.58 $0.59 -2% $1.73 $1.78 -3%
Operating income--diluted* $0.58 $0.59 -2% $1.72 $1.76 -2%
Net income $0.58 $0.59 -2% $1.81 $1.78 2%
Net income--diluted $0.58 $0.59 -2% $1.80 $1.76 2%
Net income--cash basis(1) $0.61 $0.61 0% $1.90 $1.84 3%
Net income--diluted cash basis(1) $0.61 $0.61 0% $1.89 $1.82 4%
Cash dividends declared $0.27 $0.25 8% $0.81 $0.75 8%
</TABLE>
<TABLE>
<CAPTION>
September 30
-----------------------------------
Financial Condition 2000 1999 Change
------------------- ---- ---- ------
<S> <C> <C> <C>
Total assets $43,627,096 $41,229,164 6%
Loans, net of unearned income $31,204,063 $27,511,472 13%
Securities $ 9,153,323 $ 9,499,770 -4%
Total earning assets $40,878,771 $38,397,136 6%
Total deposits $31,985,650 $29,804,048 7%
Stockholders' equity $ 3,359,908 $ 3,019,937 11%
Stockholders' equity per share $ 15.16 $ 13.77 10%
Selected Ratios
Return on average stockholders' equity based on
operating income* 16.04% 17.16%
Return on average stockholders' equity based on
net income 16.79% 17.16%
Return on average total assets based on
operating income* 1.19% 1.36%
Return on average total assets based on
net income 1.25% 1.36%
Stockholders' equity to total assets 7.70% 7.32%
Allowance for loan losses as a percentage
of loans, net of unearned income 1.20% 1.20%
Loans, net of unearned income, to
total deposits 97.56% 92.31%
</TABLE>
*Nine months ended 2000 data excludes gain on sale of credit card portfolio of
$67.2 million pretax ($44.0 million after tax or $.20 per diluted share) and
loss on sale of securities of $40.0 million pretax ($26.2 million after tax or
$.12 per diluted share).
(1) Net income excluding the amortization of excess purchase price.
For additional information, please refer to Regions Form 8-K filed with the
Securities and Exchange Commission on October 18, 2000, or 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 205/326-7374.
Continued Next Page
<PAGE> 3
October 18, 2000
Page Three
The information contained in this press release may include forward-looking
statements that reflect Regions' current views with respect to future events
and financial performance. Regions' management believes that these
forward-looking statements are reasonable, however, you should not place undue
reliance on these statements as they are based only on current expectations and
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. Such forward-looking
statements are made in good faith by Regions pursuant to the "safe harbor"
provisions of the Private Securities Litigation Reform Act of 1995.
The words "believe", "expect", "anticipate", "project", and similar expressions
signify forward-looking statements. Readers are cautioned not to place undue
reliance on any forward-looking statements made by or on behalf of Regions. Any
such statement speaks only as of the date the statement was made. Regions
undertakes no obligation to update or revise any forward-looking statements.
Some factors which may affect the accuracy of our projections apply generally
to the financial services industry, including: (a) the easing of restrictions
on participants in the financial services industry, such as banks, securities
brokers and dealers, investment companies, and finance companies, may increase
our competitive pressures; (b) possible changes in interest rates may increase
our funding costs and reduce our earning asset yields, thus reducing our
margins; (c) possible changes in general economic and business conditions in
the United States and the Southeast in general and in the communities we serve
in particular may lead to a deterioration in credit quality, thereby increasing
our provisioning costs, or a reduced demand for credit, thereby reducing our
earning assets; (d) possible changes in trade, monetary and fiscal policies,
laws, and regulations, and other activities of governments, agencies, and
similar organizations, including changes in accounting standards, may have an
adverse effect on our business; and (e) possible changes in consumer and
business spending and saving habits could have an effect on our ability to grow
our assets and to attract deposits.
Other factors which may affect the accuracy of our projections are specific to
Regions, including: (i) the cost and other effects of material contingencies,
including litigation contingencies; (ii) our ability to expand into new markets
and to maintain profit margins in the face of pricing pressures; (iii) our
ability to keep pace with technological changes; (iv) our 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 Regions
customers; (v) our ability to effectively manage interest rate risk, credit
risk and operational risk; (vi) our ability to manage fluctuations in the value
of our assets and liabilities and off-balance sheet exposures so as to maintain
sufficient capital liquidity to support our business; and (vii) our ability to
achieve the earnings expectations related to the businesses that we have
recently acquired or may acquire in the future, which in turn depends on a
variety of factors, including: our ability to achieve anticipated cost savings
and revenue enhancements with respect to acquired operations; the assimilation
of acquired operations to the Regions corporate culture, including the ability
to instill our credit practices and efficient approach to acquired operations;
and the continued growth of the markets that the acquired entities serve,
consistent with recent historical experience.
<PAGE> 4
FINANCIAL SUPPLEMENT TO THIRD QUARTER EARNINGS RELEASE
SUMMARY
Net income for the third quarter of 2000 totaled $127.9 million or $.58 per
diluted share, compared to net income of $125.3 million or $.57 per share in the
second quarter of 2000 and net income of $131.0 million or $.59 per share in the
third quarter of 1999. Highlights of the current quarter include: (1) a
continuation of strong loan growth (linked-quarter annualized internal loan
growth was 13%, excluding the effect of acquisitions); (2) good growth in core
deposits (4% linked-quarter annualized, excluding the effect of acquisitions);
(3) continued improvement in non-performing assets and past due loans; (4)
strong growth in non-interest income (up $9.1 million on a linked-quarter basis
over the second quarter of this year and up $13.5 million over the third quarter
of last year); (5) excellent expense control (linked-quarter annualized increase
in overhead of less than 1%, even with three purchase acquisitions closing in
the third quarter); and (6) a challenging net interest income environment
(higher interest rates have resulted in a 44 basis point compression in the
interest margin over the third quarter of last year).
Annualized return on equity for the third quarter of 2000 was 15.56%, with a
return on assets of 1.18%.
During the third quarter of 2000 Regions strengthened its franchise through the
completion of three purchase acquisitions. In early August, Regions entered the
dynamic Austin, Texas market area through affiliation with Texas Heritage Bank,
which has $114 million in assets. In mid-August, Regions completed the
previously announced acquisition of Security First National Bank of Alexandria,
Louisiana, with $304 million in assets. Then in mid-September, Regions
consummated the acquisition of Bank at Ormond-By-The-Sea located on the east
coast of Florida in the Ormond Beach/Daytona Beach area, which contributed $108
million in assets.
BALANCE SHEET GROWTH
Loan growth for the third quarter continued strong at 13% annualized, using
linked-quarter average balances, excluding the effect of acquisitions. Real
estate construction and mortgage loans and commercial loans were the strongest
categories of growth. On a year-over-year comparison, adjusting for the effect
of $874 million in loan securitizations in the fourth quarter of 1999 and the
$278 million credit card loan sale in the first quarter of 2000, loans grew 18%
over the last year, with internal growth accounting for 15% of this growth and
3% attributable to acquisitions. Geographically, the strongest areas of growth
were the eastern and central regions of the franchise. Even though loan growth
continues strong, Regions is experiencing some moderation in growth, relative to
earlier quarters, and expects to continue to experience more moderate loan
growth in most areas of its franchise during the next quarter.
On a linked-quarter annualized basis, excluding the effect of acquisitions,
average earning assets increased 8.8% (somewhat less than loans) because a
portion of the maturities from the securities portfolio were used to reduce
short-term borrowings.
<PAGE> 5
FINANCIAL SUPPLEMENT TO THIRD QUARTER EARNINGS RELEASE
PAGE 2
Internal core deposit growth continued during the third quarter at a 4%
annualized rate, based on linked-quarter average balances, excluding the effect
of deposits added by acquisitions and wholesale deposits sources. Certificates
of deposit and time open accounts were the strongest categories of core deposit
growth. This is the third consecutive quarter of internal core deposit growth
for Regions, indicating that the initiatives put in place to increase core
deposits (including targeted special pricing, increased use of incentives, sales
campaigns and aggressive advertising) are working.
Regions relied less on wholesale deposits and short-term borrowings during the
third quarter of 2000, with these funding sources declining $836 million or 39%
annualized over second quarter 2000 levels. An additional $1.5 billion in
long-term Federal Home Loan Bank advances were added in the third quarter, which
helped to reduce interest rate sensitivity and partially mitigate the
unfavorable effects of further interest rate increases.
OPERATING PERFORMANCE
Total revenues (defined as net interest income on a taxable equivalent basis
plus non-interest income, excluding securities transactions) increased $2.5
million or 2% annualized on a linked-quarter annualized basis over the second
quarter of this year. Non-interest income increased $9.1 million, which offset
the $6.6 million decrease in net interest income. Compared to the third quarter
of last year, total revenues decreased $4.8 million, due to a $18.3 million
decline in taxable equivalent net interest (as a result of the 44 bps. decline
in the interest margin), partially offset by a $13.5 million increase in
non-interest income.
On a linked-quarter basis, the net interest margin decreased 20 bps. in the
third quarter, resulting primarily from higher funding costs related to
increases in market interest rates. The rate on interest-earning assets
increased 2 bps, compared to 26 bps. increase in the rate on interest-bearing
liabilities. Current modeling indicates that Regions' net interest margin is
stabilizing near the third quarter level, with only minimal additional decline
likely, assuming no further changes in market interest rates. Recent initiatives
to reduce interest sensitivity (including lengthening maturities of liabilities,
reducing reliance on short-term funding sources, generating core deposit growth,
making more floating loans, etc.) have resulted in Regions' balance sheet being
less sensitive to changes in market interest rates. However, if market interest
rates continue to increase, further compression in Regions' net interest margin
is likely. If market interest rates decline, Regions' interest margin should
begin to improve.
Total third quarter non-interest income increased $9.1 million or 27% annualized
over second quarter levels. The three purchase acquisitions accounted for
approximately $688,000 of this increase, primarily in service charges on deposit
accounts. Overall, service charges on deposit accounts continued to reflect good
growth--up $1.9 million over second quarter 2000 levels. Approximately one third
of this increase was attributable to the three purchase acquisitions that closed
in the third quarter and the remaining two thirds of the increase resulted from
recent pricing and management initiatives in this area. Trust fees increased at
an annualized rate of 15% in the third quarter, reflecting increased sales
efforts and pricing initiatives. Mortgage servicing
<PAGE> 6
FINANCIAL SUPPLEMENT TO THIRD QUARTER EARNINGS RELEASE
PAGE 3
and origination fees continue to be unfavorably affected by higher interest
rates, which slows new loan originations and refinance activity. Mortgage
servicing and origination fees decreased $1.5 million from second quarter
levels. Single-family mortgage production was $520 million in third quarter,
compared to $762 million in second quarter. Regions' mortgage servicing
portfolio totaled $23.1 billion at September 30, 2000, compared to $23.3 billion
at June 30, 2000. Other non-interest income increased $8.2 million over second
quarter levels. Categories of improvement included retail investment service
fees, insurance fees and international banking service fees. In connection with
Regions' ongoing business strategy of evaluating its lines of business to better
rationalize its franchise, Regions divested a specialty consumer lending
subsidiary during the third quarter, resulting in a $4.1 million pre-tax gain,
which is included in other non-interest income. Also, during the third quarter
Regions continued its ongoing strategy of exiting certain mortgage servicing
portfolios that Regions' mortgage company is not equipped to adequately service
and that do not fit well into its long-term mortgage servicing operations. This
strategy resulted in a $2.0 million pre-tax gain, which is included in third
quarter other non-interest income.
Total non-interest expense increased less than 1% annualized over second quarter
2000 levels. Excluding the effect of the three purchase acquisitions during the
third quarter, total non-interest expense decreased approximately 1% annualized
from second quarter levels, reflecting continued realization of cost savings
from earlier acquisitions and ongoing initiatives to enhance efficiency and
productivity in back office operations and lines of business. Salaries and
employee benefits decreased $1.4 million from the prior quarter, due primarily
to lower incentive compensation accruals in the third quarter. Occupancy and
furniture and equipment expense increased $3.3 million in the third quarter due
to higher utilities, maintenance and depreciation charges. Other non-interest
expense decreased $1.4 million or 6% annualized in the third quarter, compared
to the second quarter of 2000, resulting from declines in numerous categories of
expense, including advertising, insurance, travel and other outside services.
The provision for loan losses in the third quarter of 2000 was increased to
$32.7 million or 0.42% annualized of average loans, as a result of a higher
level of net loan charge-offs, growth and other changes in the loan portfolio.
Net loan charge-offs for the third quarter were $25.8 million (0.33% of average
loans annualized), compared to $17.3 million (0.23% of average loans annualized)
in the second quarter. On a year-to-date basis, net loan charge-offs declined
$6.1 million to 0.27% annualized of average loans, compared to 0.34% annualized
of average loans in the first nine months of last year. The higher level of net
loan charge-offs in the third quarter occurred in commercial, real estate and
consumer loans. The net charge-offs in the commercial and real estate portfolios
were not concentrated in any one borrower or industry, but were spread among
several mid-to-smaller credits. The higher level of consumer loan charge-offs in
the third quarter resulted primarily from conforming Regions' consumer loan
charge-off policies to recent changes in bank regulatory guidelines for
charging-off delinquent consumer loans. Loans past due 90 days or more declined
significantly at September 30, 2000 to $36.5 million from $67.4 million at June
30, 2000. Non-performing assets, excluding loans past due 90 days or more,
increased to $237.1 million at September 30, 2000, from $214.4 million at June
30, 2000, due to the addition of several loans to non-accrual status. As a
percentage of loans and other real estate, non-performing assets were 0.76% at
September 30, 2000, compared to 0.71% at June 30, 2000.
<PAGE> 7
FINANCIAL SUPPLEMENT TO THIRD QUARTER EARNINGS RELEASE
PAGE 4
The effective tax rate declined in the third quarter, compared to the first two
quarters of this year, due to increased realization of certain tax benefits from
tax planning strategies.
ACQUISITION ACTIVITY
During the third quarter of 2000 Regions strengthened its franchise through the
completion of three purchase acquisitions. In early August, Regions entered the
dynamic Austin, Texas market area through affiliation with Texas Heritage Bank,
which has $114 million in assets, $80 million in loans and $107 million in
deposits. This acquisition gives Regions an entrance into one of the fastest
growing markets in the country and enables Texas Heritage Bank to offer a much
broader product array to customers. In mid-August, Regions completed the
previously announced acquisition of Security First National Bank of Alexandria,
Louisiana, with $304 million in assets, $135 million in loans and $209 million
in deposits. This transaction offers Regions the opportunity to expand its
Louisiana franchise through affiliation with a high-performing community bank.
Then in mid-September, Regions consummated the acquisition of Bank at
Ormond-By-The-Sea located on the east coast of Florida in the Ormond
Beach/Daytona Beach area, which contributed $108 million in assets, $52 million
in loans and $98 million in deposits. Bank at Ormond-By-The-Sea is located in a
growing Florida market area that has excellent potential for enhancing Regions'
franchise. Initially, these acquisitions should be slightly accretive to
earnings, and should become more accretive as cost savings and revenue
enhancements are realized over the next several quarters. Regions issued 3.7
million shares in connection with these purchase acquisitions, all of which had
been previously purchased and held as treasury stock.
Acquisitions completed since September 30, 1999 include the following (in
thousands):
<TABLE>
<CAPTION>
Total Total Accounting Banking
Date Company Acquired Total Assets Loans Deposits Method Offices
---- ---------------- ------------ -------- ---------- ---------- -------
<S> <C> <C> <C> <C> <C> <C>
December 1999 Minden Bancshares of $ 319,441 $140,059 $ 270,138 Purchase 7
Minden, Louisiana
January 2000 LCB Corporation of $ 169,737 $112,403 $ 152,035 Purchase 5
Fayetteville, Tennessee
May 2000 Five Branches in Fort Smith, $ 186,361 $115,172 $ 185,745 Purchase 5
Arkansas
August 2000 Heritage Bancorp, Inc. of $ 114,370 $ 79,550 $ 106,791 Purchase 6
Hutto, Texas
August 2000 First National Bancshares of $ 303,793 $135,293 $ 209,001 Purchase 7
Louisiana, Inc. headquartered
in Alexandria, Louisiana
September 2000 East Coast Bank Corporation of $ 107,779 $ 51,664 $ 98,173 Purchase 3
Ormond Beach, Florida
---------- -------- ---------- --
Totals $1,201,481 $634,141 $1,021,883 33
========== ======== ========== ==
</TABLE>
<PAGE> 8
FINANCIAL SUPPLEMENT TO THIRD QUARTER EARNINGS RELEASE
PAGE 5
Regions currently has no pending acquisitions, but as a part of its ongoing
business strategy continually evaluates business combination opportunities.
STOCK BUYBACK PROGRAM
During the third quarter of 2000, Regions repurchased approximately 1.3 million
shares in connection with its share buyback program. Since this 12 million share
buyback program was announced in July 1999, Regions has repurchased a total of
3.3 million shares of its common stock (net of reissuances for completed
acquisitions).
FORWARD-LOOKING STATEMENTS
The information contained in this press release may include forward-looking
statements that reflect Regions' current views with respect to future events and
financial performance. Regions' management believes that these forward-looking
statements are reasonable, however, you should not place undue reliance on these
statements as they are based only on current expectations and 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. Such forward-looking statements are
made in good faith by Regions pursuant to the "safe harbor" provisions of the
Private Securities Litigation Reform Act of 1995.
The words "believe", "expect", "anticipate", "project", and similar expressions
signify forward-looking statements. Readers are cautioned not to place undue
reliance on any forward-looking statements made by or on behalf of Regions. Any
such statement speaks only as of the date the statement was made. Regions
undertakes no obligation to update or revise any forward-looking statements.
Some factors which may affect the accuracy of our projections apply generally to
the financial services industry, including: (a) the easing of restrictions on
participants in the financial services industry, such as banks, securities
brokers and dealers, investment companies, and finance companies, may increase
our competitive pressures; (b) possible changes in interest rates may increase
our funding costs and reduce our earning asset yields, thus reducing our
margins; (c) possible changes in general economic and business conditions in the
United States and the Southeast in general and in the communities we serve in
particular may lead to a deterioration in credit quality, thereby increasing our
provisioning costs, or a reduced demand for credit, thereby reducing our earning
assets; (d) possible changes in trade, monetary and fiscal policies, laws, and
regulations, and other activities of governments, agencies, and similar
organizations, including changes in accounting standards, may have an adverse
effect on our business; and (e) possible changes in consumer and business
spending and saving habits could have an effect on our ability to grow our
assets and to attract deposits.
Other factors which may affect the accuracy of our projections are specific to
Regions, including: (i) the cost and other effects of material contingencies,
including litigation contingencies; (ii) our ability to expand into new markets
and to maintain profit margins in the face of pricing pressures;
<PAGE> 9
FINANCIAL SUPPLEMENT TO THIRD QUARTER EARNINGS RELEASE
PAGE 6
(iii) our ability to keep pace with technological changes; (iv) our 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
Regions customers; (v) our ability to effectively manage interest rate risk,
credit risk and operational risk; (vi) our ability to manage fluctuations in the
value of our assets and liabilities and off-balance sheet exposures so as to
maintain sufficient capital and liquidity to support our business; and (vii) our
ability to achieve the earnings expectations related to the businesses that we
have recently acquired or may acquire in the future, which in turn depends on a
variety of factors, including: our ability to achieve anticipated cost savings
and revenue enhancements with respect to acquired operations; the assimilation
of acquired operations to the Regions corporate culture, including the ability
to instill our credit practices and efficient approach to acquired operations;
and the continued growth of the markets that the acquired entities serve,
consistent with recent historical experience.
For questions or additional information, please contact Ronald C. Jackson at
(205) 326-7374 or Kenneth W. Till at (205) 326-7605.
<PAGE> 10
REGIONS FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CONDITION
(Dollar Amounts in Thousands)
<TABLE>
<CAPTION>
9/30/98 12/31/98 3/31/99 6/30/99 9/30/99
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
ASSETS
Cash and due from banks $ 1,225,990 $ 1,619,006 $ 1,243,942 $ 1,350,476 $ 1,249,061
Interest-bearing deposits in other banks 141,595 143,965 75,492 77,255 48,228
Investment securities 2,972,053 3,125,114 3,480,541 3,327,552 3,560,934
Securities available for sale 4,723,955 4,844,023 5,489,283 5,512,854 5,938,836
Trading account assets 24,553 49,387 24,447 23,982 19,929
Mortgage loans held for sale 728,746 927,668 1,046,924 1,266,412 1,227,275
Federal funds sold and securities purchased
under agreement to resell 117,148 233,941 49,089 58,192 90,462
Loans 23,923,417 24,430,113 25,602,677 26,621,557 27,587,448
Unearned income (71,211) (64,526) (62,441) (68,872) (75,976)
------------ ------------ ------------ ------------ ------------
Loans, net of unearned income 23,852,206 24,365,587 25,540,236 26,552,685 27,511,472
Allowance for loan losses (325,238) (315,412) (330,151) (326,982) (330,679)
------------ ------------ ------------ ------------ ------------
Net Loans 23,526,968 24,050,175 25,210,085 26,225,703 27,180,793
Premises and equipment 514,082 534,425 559,241 571,564 575,139
Interest receivable 287,317 292,036 297,737 302,125 293,467
Due from customers on acceptances 16,814 57,046 73,036 54,339 29,614
Other assets 797,043 955,154 1,051,946 1,016,127 1,015,426
------------ ------------ ------------ ------------ ------------
$ 35,076,264 $ 36,831,940 $ 38,601,763 $ 39,786,581 $ 41,229,164
============ ============ ============ ============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits
Non-interest-bearing $ 3,875,059 $ 4,577,125 $ 4,473,304 $ 4,569,264 $ 4,624,868
Interest-bearing 23,309,836 23,772,941 24,657,747 23,857,947 25,179,180
------------ ------------ ------------ ------------ ------------
Total Deposits 27,184,895 28,350,066 29,131,051 28,427,211 29,804,048
Borrowed funds:
Short-term borrowings:
Federal funds purchased and securities
sold under agreement to repurchase 1,289,513 2,067,278 2,506,805 3,922,436 4,158,091
Commercial paper 56,750 56,750 56,750 56,750 59,250
Other short-term borrowings 2,551,480 2,372,700 2,934,584 3,457,604 3,436,292
------------ ------------ ------------ ------------ ------------
Total Short-term Borrowings 3,897,743 4,496,728 5,498,139 7,436,790 7,653,633
Long-term borrowings 424,176 571,040 497,430 388,377 371,148
------------ ------------ ------------ ------------ ------------
Total Borrowed Funds 4,321,919 5,067,768 5,995,569 7,825,167 8,024,781
Bank acceptances outstanding 16,814 57,046 73,036 54,339 29,614
Other liabilities 594,983 356,659 283,586 348,423 350,784
------------ ------------ ------------ ------------ ------------
Total Liabilities 32,118,611 33,831,539 35,483,242 36,655,140 38,209,227
Stockholders' equity:
Common stock 138,195 138,316 139,944 140,012 140,107
Surplus 1,142,592 1,147,357 1,167,184 1,167,994 1,169,324
Undivided profits 1,649,105 1,729,334 1,813,790 1,893,778 1,969,670
Treasury Stock 0 (32,603) (34) (34) (172,056)
Unearned restricted stock (7,224) (6,955) (6,294) (5,765) (5,236)
Accumulated other comprehensive income 34,985 24,952 3,931 (64,544) (81,872)
------------ ------------ ------------ ------------ ------------
Total Stockholders' Equity 2,957,653 3,000,401 3,118,521 3,131,441 3,019,937
------------ ------------ ------------ ------------ ------------
$ 35,076,264 $ 36,831,940 $ 38,601,763 $ 39,786,581 $ 41,229,164
============ ============ ============ ============ ============
<CAPTION>
12/31/99 3/31/00 6/30/00 9/30/00
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
ASSETS
Cash and due from banks $ 1,393,418 $ 1,038,303 $ 1,140,766 $ 1,076,869
Interest-bearing deposits in other banks 9,653 51,875 2,202 2,449
Investment securities 4,054,279 3,602,979 3,626,457 3,607,520
Securities available for sale 6,858,765 5,528,877 5,619,226 5,545,803
Trading account assets 14,543 24,155 18,652 21,317
Mortgage loans held for sale 567,131 351,978 356,801 251,063
Federal funds sold and securities purchased
under agreement to resell 66,078 61,863 72,108 246,556
Loans 28,221,240 29,164,121 30,479,546 31,299,305
Unearned income (76,565) (82,834) (88,556) (95,242)
------------ ------------ ------------ ------------
Loans, net of unearned income 28,144,675 29,081,287 30,390,990 31,204,063
Allowance for loan losses (338,375) (352,998) (363,475) (373,699)
------------ ------------ ------------ ------------
Net Loans 27,806,300 28,728,289 30,027,515 30,830,364
Premises and equipment 580,707 585,934 588,697 596,900
Interest receivable 306,707 300,445 326,815 333,294
Due from customers on acceptances 72,098 85,624 53,969 24,274
Other assets 984,716 1,058,081 1,068,306 1,090,687
------------ ------------ ------------ ------------
$ 42,714,395 $ 41,418,403 $ 42,901,514 $ 43,627,096
============ ============ ============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits
Non-interest-bearing $ 4,419,693 $ 4,853,155 $ 4,573,881 $ 4,561,388
Interest-bearing 25,569,401 27,101,228 27,935,020 27,424,262
------------ ------------ ------------ ------------
Total Deposits 29,989,094 31,954,383 32,508,901 31,985,650
Borrowed funds:
Short-term borrowings:
Federal funds purchased and securities
sold under agreement to repurchase 5,614,613 3,136,794 2,630,399 1,862,753
Commercial paper 56,750 26,750 36,750 38,750
Other short-term borrowings 1,953,622 725,045 1,816,220 1,620,673
------------ ------------ ------------ ------------
Total Short-term Borrowings 7,624,985 3,888,589 4,483,369 3,522,176
Long-term borrowings 1,750,861 2,032,411 2,370,148 4,392,399
------------ ------------ ------------ ------------
Total Borrowed Funds 9,375,846 5,921,000 6,853,517 7,914,575
Bank acceptances outstanding 72,098 85,624 53,969 24,274
Other liabilities 212,245 316,662 297,692 342,689
------------ ------------ ------------ ------------
Total Liabilities 39,649,283 38,277,669 39,714,079 40,267,188
Stockholders' equity:
Common stock 137,897 138,857 139,028 139,050
Surplus 1,022,825 1,051,634 1,056,452 1,058,291
Undivided profits 2,044,209 2,130,595 2,196,513 2,264,476
Treasury Stock 0 (38,696) (73,941) (18,988)
Unearned restricted stock (4,719) (4,216) (8,088) (7,673)
Accumulated other comprehensive income (135,100) (137,440) (122,529) (75,248)
------------ ------------ ------------ ------------
Total Stockholders' Equity 3,065,112 3,140,734 3,187,435 3,359,908
------------ ------------ ------------ ------------
$ 42,714,395 $ 41,418,403 $ 42,901,514 $ 43,627,096
============ ============ ============ ============
</TABLE>
<PAGE> 11
REGIONS FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(Dollar Amounts in Thousands)
<TABLE>
<CAPTION>
9/30/98 12/31/98 3/31/99 6/30/99 9/30/99
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
Interest Income:
Interest and fees on loans $ 521,428 $ 526,305 $ 512,478 $ 540,192 $ 562,484
Interest on securities:
Taxable interest income 105,163 111,687 121,762 128,773 135,346
Tax-exempt interest income 9,318 9,011 9,798 9,761 9,756
---------- ---------- ---------- ---------- ----------
Total Interest on Securities 114,481 120,698 131,560 138,534 145,102
Interest on mortgage loans held for sale 13,880 12,865 20,636 17,548 22,506
Income on federal funds sold and
securities purchased under agreement
to resell 5,563 3,965 938 937 1,046
Interest on time deposits in other banks 1,782 927 514 573 372
Interest on trading account assets 172 520 315 352 476
---------- ---------- ---------- ---------- ----------
Total Interest Income 657,306 665,280 666,441 698,136 731,986
Interest Expense:
Interest on deposits 269,086 265,876 257,455 255,257 258,847
Interest on short-term borrowings 53,614 50,088 57,599 72,928 105,719
Interest on long-term borrowings 8,818 8,757 8,790 7,685 6,972
---------- ---------- ---------- ---------- ----------
Total Interest Expense 331,518 324,721 323,844 335,870 371,538
---------- ---------- ---------- ---------- ----------
Net Interest Income 325,788 340,559 342,597 362,266 360,448
Provision for loan losses 12,547 19,023 20,738 23,944 30,707
---------- ---------- ---------- ---------- ----------
Net Interest Income After Provision
for Loan Losses 313,241 321,536 321,859 338,322 329,741
Non-Interest Income:
Trust department income 14,231 15,556 12,751 12,610 14,530
Service charges on deposit accounts 40,816 48,463 44,812 46,845 50,453
Mortgage servicing and origination fees 27,524 27,635 33,084 26,453 22,675
Securities gains (losses) 85 3,875 16 22 3
Other 31,606 35,206 52,452 35,861 45,611
---------- ---------- ---------- ---------- ----------
Total Non-Interest Income 114,262 130,735 143,115 121,791 133,272
Non-Interest Expense:
Salaries and employee benefits 125,371 137,350 136,649 138,723 140,577
Net occupancy expense 15,253 16,223 14,656 14,334 16,422
Furniture and equipment expense 18,296 19,416 16,530 16,322 18,370
Other 75,772 84,070 94,740 90,845 89,851
---------- ---------- ---------- ---------- ----------
Total Operating Expense 234,692 257,059 262,575 260,224 265,220
Merger and restructuring costs 114,728 6,710 0 0 0
---------- ---------- ---------- ---------- ----------
Total Non-Interest Expense 349,420 263,769 262,575 260,224 265,220
---------- ---------- ---------- ---------- ----------
Income Before Income Taxes 78,083 188,502 202,399 199,889 197,793
Applicable income taxes 26,799 61,495 73,019 63,900 66,835
---------- ---------- ---------- ---------- ----------
Net Income $ 51,284 $ 127,007 $ 129,380 $ 135,989 $ 130,958
========== ========== ========== ========== ==========
Operating Income $ 127,809(a) $ 131,194(b) $ 129,380 $ 135,989 $ 130,958
========== ========== ========== ========== ==========
<CAPTION>
12/31/99 3/31/00 6/30/00 9/30/00
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Interest Income:
Interest and fees on loans $ 586,632 $ 602,957 $ 633,868 $ 667,305
Interest on securities:
Taxable interest income 139,054 155,067 137,104 136,452
Tax-exempt interest income 10,169 10,161 10,325 10,680
---------- ---------- ---------- ----------
Total Interest on Securities 149,223 165,228 147,429 147,132
Interest on mortgage loans held for sale 20,312 10,313 9,329 8,176
Income on federal funds sold and
securities purchased under agreement
to resell 1,335 1,129 1,370 1,672
Interest on time deposits in other banks 282 193 184 221
Interest on trading account assets 339 409 407 188
---------- ---------- ---------- ----------
Total Interest Income 758,123 780,229 792,587 824,694
Interest Expense:
Interest on deposits 285,240 319,177 342,894 358,033
Interest on short-term borrowings 93,272 77,956 64,422 65,623
Interest on long-term borrowings 19,067 28,980 36,580 58,919
---------- ---------- ---------- ----------
Total Interest Expense 397,579 426,113 443,896 482,575
---------- ---------- ---------- ----------
Net Interest Income 360,544 354,116 348,691 342,119
Provision for loan losses 38,269 29,177 27,804 32,746
---------- ---------- ---------- ----------
Net Interest Income After Provision
for Loan Losses 322,275 324,939 320,887 309,373
Non-Interest Income:
Trust department income 13,543 14,051 14,059 14,597
Service charges on deposit accounts 52,874 53,408 57,542 59,465
Mortgage servicing and origination fees 20,906 21,956 21,539 20,016
Securities gains (losses) 119 (40,018) 67 28
Other 51,521 117,395 44,443 52,641
---------- ---------- ---------- ----------
Total Non-Interest Income 138,963 166,792 137,650 146,747
Non-Interest Expense:
Salaries and employee benefits 135,620 147,253 146,244 144,868
Net occupancy expense 16,223 15,858 16,811 18,583
Furniture and equipment expense 20,791 16,997 17,320 18,880
Other 103,659 91,027 92,412 91,008
---------- ---------- ---------- ----------
Total Operating Expense 276,293 271,135 272,787 273,339
Merger and restructuring costs 0 0 0 0
---------- ---------- ---------- ----------
Total Non-Interest Expense 276,293 271,135 272,787 273,339
---------- ---------- ---------- ----------
Income Before Income Taxes 184,945 220,596 185,750 182,781
Applicable income taxes 55,886 74,591 60,457 54,922
---------- ---------- ---------- ----------
Net Income $ 129,059 $ 146,005 $ 125,293 $ 127,859
========== ========== ========== ==========
Operating Income $ 129,059 $ 128,203(c) $ 125,293 $ 127,859
========== ========== ========== ==========
</TABLE>
<PAGE> 12
REGIONS FINANCIAL CORPORATION AND SUBSIDIARIES
(Dollar Amounts in Thousands)
<TABLE>
<CAPTION>
9/30/98 12/31/98 3/31/99 6/30/99 9/30/99
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Average shares outstanding--during quarter 220,809 219,798 222,408 223,995 221,696
Average shares outstanding--during
quarter, diluted 223,711 223,325 225,467 226,887 223,715
Actual shares outstanding--end of quarter 221,111 220,454 223,910 224,018 219,289
Operating income per share $ 0.58 $ 0.60 $ 0.58 $ 0.61 $ 0.59
Operating income per share, diluted $ 0.57 $ 0.59 $ 0.57 $ 0.60 $ 0.59
Net income per share $ 0.23 $ 0.58 $ 0.58 $ 0.61 $ 0.59
Net income per share, diluted $ 0.23 $ 0.57 $ 0.57 $ 0.60 $ 0.59
Dividends per share $ 0.23 $ 0.23 $ 0.25 $ 0.25 $ 0.25
Taxable equivalent net interest income $ 331,523 $ 344,902 $ 348,084 $ 367,831 $ 366,236
<CAPTION>
12/31/99 3/31/00 6/30/00 9/30/00
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Average shares outstanding--during quarter 218,414 221,299 220,264 220,424
Average shares outstanding--during
quarter, diluted 219,862 222,549 221,426 221,615
Actual shares outstanding--end of quarter 220,636 220,422 219,095 221,612
Operating income per share $ 0.59 $ 0.58 $ 0.57 $ 0.58
Operating income per share, diluted $ 0.59 $ 0.58 $ 0.57 $ 0.58
Net income per share $ 0.59 $ 0.66 $ 0.57 $ 0.58
Net income per share, diluted $ 0.59 $ 0.66 $ 0.57 $ 0.58
Dividends per share $ 0.25 $ 0.27 $ 0.27 $ 0.27
Taxable equivalent net interest income $ 366,479 $ 359,914 $ 354,571 $ 347,956
</TABLE>
(a) Operating income excludes non-recurring consolidation charges ($80.1
million pre-tax or $54.9 million after tax) and non-recurring
consolidation charges ($34.6 million pretax or $21.6 million after
tax).
(b) Operating income excludes non-recurring merger charges of $6.7 million
pre-tax or $4.2 million after tax.
(c) Operating income excludes gain on sale of credit card portfolio ($67.2
million pre-tax or $44.0 million after tax) and loss on sale of
securities ($40.0 million pre-tax or $26.2 million after tax).
<PAGE> 13
REGIONS FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(Dollar Amounts in Thousands)
<TABLE>
<CAPTION>
Nine Months Ended
September 30
-----------------------------
2000 1999
------------ ------------
<S> <C> <C>
Interest Income:
Interest and fees on loans $ 1,904,130 $ 1,615,154
Interest on securities:
Taxable interest income 428,623 385,881
Tax-exempt interest income 31,166 29,315
------------ ------------
Total Interest on Securities 459,789 415,196
Interest on mortgage loans held for sale 27,818 60,690
Income on federal funds sold and
securities purchased under agreement
to resell 4,171 2,921
Interest on time deposits in other banks 598 1,459
Interest on trading account assets 1,004 1,143
------------ ------------
Total Interest Income 2,397,510 2,096,563
Interest Expense:
Interest on deposits 1,020,104 771,559
Interest on short-term borrowings 208,001 236,246
Interest on long-term borrowings 124,479 23,447
------------ ------------
Total Interest Expense 1,352,584 1,031,252
------------ ------------
Net Interest Income 1,044,926 1,065,311
Provision for loan losses 89,727 75,389
------------ ------------
Net Interest Income After Provision
for Loan Losses 955,199 989,922
Non-Interest Income:
Trust department income 42,707 39,891
Service charges on deposit accounts 170,415 142,110
Mortgage servicing and origination fees 63,511 82,212
Securities gains (losses) (39,923) 41
Other 214,479 133,924
------------ ------------
Total Non-Interest Income 451,189 398,178
Non-Interest Expense:
Salaries and employee benefits 438,365 415,949
Net occupancy expense 51,252 45,412
Furniture and equipment expense 53,197 51,222
Other 274,447 275,436
------------ ------------
Total Non-Interest Expense 817,261 788,019
------------ ------------
Income Before Income Taxes 589,127 600,081
Applicable income taxes 189,970 203,754
------------ ------------
Net Income $ 399,157 $ 396,327
============ ============
Operating Income $ 381,355 $ 396,327
============ ============
</TABLE>
<PAGE> 14
REGIONS FINANCIAL CORPORATION AND SUBSIDIARIES
(Dollar Amounts in Thousands)
<TABLE>
<CAPTION>
Nine Months Ended
September 30
-------------------------
2000 1999
---------- ----------
<S> <C> <C>
Average shares outstanding--year-to-date 220,661 222,697
Average shares outstanding--year-to-date, diluted 221,862 225,350
Actual shares outstanding--end of quarter 221,612 219,289
Operating income per share $ 1.73 $ 1.78
Operating income per share, diluted $ 1.72 $ 1.76
Net income per share $ 1.81 $ 1.78
Net income per share, diluted $ 1.80 $ 1.76
Dividends per share $ 0.81 $ 0.75
Taxable equivalent net interest income 1,062,441 1,082,151
</TABLE>
<PAGE> 15
REGIONS FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED AVERAGE DAILY BALANCES AND YIELD/RATE ANALYSIS
(Dollar Amounts in Thousands, Yields on Taxable Equivalent Basis)
<TABLE>
<CAPTION>
Quarter Ended Quarter Ended Quarter Ended Quarter Ended
3/31/99 6/30/99 9/30/99 12/31/99
--------------------- --------------------- --------------------- ---------------------
Average Yield/ Average Yield/ Average Yield/ Average Yield/
Balance Rate Balance Rate Balance Rate Balance Rate
------------ ------ ------------ ------ ------------ ------ ------------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Earning assets:
Taxable securities $ 7,708,474 6.39% $ 8,141,637 6.33% $ 8,451,738 6.34% $ 8,663,789 6.36%
Non-taxable securities 742,753 8.06% 741,393 7.83% 739,665 7.87% 756,355 7.88%
Federal funds sold 103,522 3.67% 95,142 3.95% 79,125 5.24% 101,902 5.20%
Loans, net of unearned income 24,667,458 8.44% 26,101,980 8.32% 27,020,688 8.27% 28,079,812 8.31%
Int. bear. deposits in oth. bnks 55,360 3.77% 50,919 4.51% 43,293 3.41% 25,640 4.36%
Mortgages held for sale 1,192,527 7.02% 989,377 7.11% 1,260,046 7.09% 1,078,896 7.47%
Trading account assets 22,854 6.14% 21,975 7.49% 22,370 9.47% 19,839 7.50%
------------ ------------ ------------ ------------
Total earning assets 34,492,948 7.90% 36,142,423 7.81% 37,616,925 7.78% 38,726,233 7.83%
Allowance for loan losses (327,717) (329,447) (323,925) (331,666)
Cash and due from banks 1,247,831 1,272,902 1,211,370 1,217,784
Other non-earning assets 1,905,838 1,918,007 2,004,159 1,931,737
------------ ------------ ------------ ------------
$ 37,318,900 $ 39,003,885 $ 40,508,529 $ 41,544,088
============ ============ ============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Interest-bearing liabilities:
Savings accounts $ 1,507,187 1.71% $ 1,523,845 1.62% $ 1,470,113 1.57% $ 1,410,750 1.53%
Interest bearing transaction
accounts 533,181 4.24% 516,085 3.93% 434,837 4.00% 350,535 4.89%
Money market accounts 8,880,431 3.10% 9,231,649 3.16% 9,079,236 3.34% 9,187,763 3.47%
Certificates of deposit of
$100,000 or more 4,014,884 5.35% 4,065,120 5.30% 4,198,193 5.32% 4,591,010 5.47%
Other interest-bearing accounts 9,231,979 5.48% 8,832,472 5.34% 8,909,144 5.17% 9,882,913 5.30%
Federal funds purchased 2,177,374 4.92% 2,899,138 4.87% 4,490,354 5.24% 4,527,000 5.52%
Commercial paper 56,750 5.95% 56,750 6.01% 57,343 6.52% 58,061 5.86%
Other short-term borrowings 2,506,897 4.91% 3,392,371 4.35% 3,434,210 5.25% 2,315,210 5.04%
Long-term borrowings 522,407 6.96% 471,331 6.39% 385,291 7.18% 1,302,209 5.81%
------------ ------------ ------------ ------------
Total int-bearing liabilities 29,431,090 4.46% 30,988,761 4.34% 32,458,721 4.54% 33,625,451 4.69%
Non-interest bearing deposits 4,388,902 4,510,618 4,596,807 4,582,329
Other liabilities 449,178 367,156 375,602 332,596
Stockholders' equity 3,049,730 3,137,350 3,077,399 3,003,712
------------ ------------ ------------ ------------
$ 37,318,900 $ 39,003,885 $ 40,508,529 $ 41,544,088
============ ============ ============ ============
Net yield on interest earning assets 4.09% 4.08% 3.86% 3.75%
<CAPTION>
Quarter Ended Quarter Ended Quarter Ended
3/31/00 6/30/00 9/30/00
---------------------- ---------------------- ----------------------
Average Yield/ Average Yield/ Average Yield/
Balance Rate Balance Rate Balance Rate
------------ ------ ------------ ------ ------------ ------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Earning assets:
Taxable securities $ 9,551,271 6.52% $ 8,408,489 6.55% $ 8,405,165 6.45%
Non-taxable securities 782,857 7.76% 792,115 7.71% 820,542 7.59%
Federal funds sold 79,591 5.71% 87,145 6.32% 102,581 6.48%
Loans, net of unearned income 28,669,394 8.47% 29,714,554 8.60% 30,799,374 8.63%
Int. bear. deposits in oth. bnks 12,376 6.27% 10,818 6.84% 12,845 6.84%
Mortgages held for sale 508,777 8.15% 411,105 9.13% 330,682 9.84%
Trading account assets 31,354 5.65% 21,434 8.06% 11,961 7.11%
------------ ---- ------------ ---- ------------ ----
Total earning assets 39,635,620 7.98% 39,445,660 8.14% 40,483,150 8.16%
Allowance for loan losses (345,530) (357,364) (363,586)
Cash and due from banks 1,239,194 1,084,622 1,046,548
Other non-earning assets 2,059,622 2,053,414 2,055,988
------------ ------------ ------------
$ 42,588,906 $ 42,226,332 $ 43,222,100
============ ============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Interest-bearing liabilities:
Savings accounts $ 1,389,361 1.53% $ 1,362,045 1.51% $ 1,305,032 1.50%
Interest bearing transaction
accounts 415,351 4.22% 416,655 4.07% 393,976 4.48%
Money market accounts 10,052,953 3.84% 10,341,395 4.20% 10,014,333 4.33%
Certificates of deposit of
$100,000 or more 4,907,081 5.74% 4,654,185 6.00% 4,212,396 6.22%
Other interest-bearing accounts 10,610,269 5.44% 10,961,131 5.73% 11,522,007 6.00%
Federal funds purchased 4,355,968 5.83% 2,935,116 6.25% 2,231,550 6.64%
Commercial paper 56,140 6.31% 35,432 6.29% 36,815 6.30%
Other short-term borrowings 944,198 5.89% 1,161,176 6.33% 1,728,085 6.40%
Long-term borrowings 1,925,296 6.05% 2,344,772 6.27% 3,583,967 6.54%
------------ ---- ------------ ---- ------------ ----
Total int-bearing liabilities 34,656,617 4.95% 34,211,907 5.22% 35,028,161 5.48%
Non-interest bearing deposits 4,532,369 4,544,703 4,579,901
Other liabilities 293,243 322,007 344,654
Stockholders' equity 3,106,677 3,147,715 3,269,384
------------ ------------ ------------
$ 42,588,906 $ 42,226,332 $ 43,222,100
============ ============ ============
Net yield on interest earning assets 3.65% 3.62% 3.42%
</TABLE>
<PAGE> 16
REGIONS FINANCIAL CORPORATION AND SUBSIDIARIES
QUARTERLY ALLOWANCE FOR LOAN LOSSES AND NON-PERFORMING ASSETS
(Dollar Amounts in Thousands)
<TABLE>
<CAPTION>
3/31/99 6/30/99 9/30/99 12/31/99 3/31/00 6/30/00 9/30/00
-------- -------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
Balance at beginning of period $315,412 $330,151 $326,982 $330,679 $338,375 $352,998 $363,475
Net loans charged off (recovered):
Commercial 1,833 8,833 2,805 9,184 2,345 3,308 7,480
Real estate 366 805 8,379 5,122 559 3,483 4,881
Installment 9,334 17,475 15,826 19,226 13,509 10,536 13,444
-------- -------- -------- -------- -------- -------- --------
Total 11,533 27,113 27,010 33,532 16,413 17,327 25,805
Allowance of acquired banks 5,534 0 0 2,959 1,859 0 3,283
Provision charged to expense 20,738 23,944 30,707 38,269 29,177 27,804 32,746
-------- -------- -------- -------- -------- -------- --------
Balance at end of period $330,151 $326,982 $330,679 $338,375 $352,998 $363,475 $373,699
======== ======== ======== ======== ======== ======== ========
Non-performing Assets:
Loans on a non-accruing basis $152,630 $159,103 $161,837 $169,904 $189,260 $184,934 $200,419
Renegotiated loans 5,084 5,849 10,219 8,390 12,969 12,616 13,403
Foreclosed property ("Other
real estate") 15,069 13,942 13,371 12,662 13,474 16,837 23,270
-------- -------- -------- -------- -------- -------- --------
Total NPA excluding past due
loans $172,783 $178,894 $185,427 $190,956 $215,703 $214,387 $237,092
-------- -------- -------- -------- -------- -------- --------
Loans past due 90 days or more $121,393 $ 99,575 $ 77,918 $ 71,952 $ 64,117 $ 67,388 $ 36,543
-------- -------- -------- -------- -------- -------- --------
Total NPA including past due
loans $294,176 $278,469 $263,345 $262,908 $279,820 $281,775 $273,635
======== ======== ======== ======== ======== ======== ========
</TABLE>
<PAGE> 17
REGIONS FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED AVERAGE DAILY BALANCES AND YIELD/RATE ANALYSIS
(Dollar Amounts in Thousands, Yields on Taxable Equivalent Basis)
<TABLE>
<CAPTION>
Nine Months Ended
September 30
----------------------------------------------------------------------------------
2000 1999
------------------------------------ -------------------------------------
Average Yield/ Average Yield/
Balance Rate Balance Rate
------------ ------ ------------ ------
ASSETS
<S> <C> <C> <C> <C>
Earning assets:
Taxable securities $ 8,786,910 6.51% $ 8,103,339 6.35%
Non-taxable securities 798,585 7.68% 741,259 7.92%
Federal funds sold 89,819 6.20% 92,507 4.22%
Loans, net of unearned income 29,731,685 8.57% 25,938,662 8.34%
Int. bear. deposits in oth. bnks 12,016 6.65% 49,813 3.92%
Mortgages held for sale 416,540 8.92% 1,147,564 7.07%
Trading account assets 21,548 6.72% 22,398 7.70%
------------ ------------
Total earning assets 39,857,103 8.09% 36,095,542 7.83%
Allowance for loan losses (355,523) (327,016)
Cash and due from banks 1,123,174 1,243,901
Other non-earning assets 2,056,340 1,943,028
------------ ------------
$ 42,681,094 $ 38,955,455
============ ============
<CAPTION>
LIABILITIES AND STOCKHOLDERS' EQUITY
<S> <C> <C> <C> <C>
Interest-bearing liabilities:
Savings accounts $ 1,351,974 1.51% $ 1,500,246 1.63%
Interest bearing transaction
accounts 408,607 4.25% 494,341 4.06%
Money market accounts 10,135,782 4.13% 9,064,500 3.20%
Certificates of deposit of
$100,000 or more 4,589,838 5.97% 4,093,404 5.32%
Other int-bearing accounts 11,032,927 5.73% 8,990,016 5.33%
Federal funds purchased 3,170,771 6.15% 3,197,428 5.06%
Commercial paper 42,774 6.30% 56,950 6.17%
Other short-term borrowings 1,279,463 6.25% 3,114,556 4.83%
Long-term borrowings 2,621,537 6.34% 459,174 6.83%
------------ ------------
Total int-bearing liabilities 34,633,673 5.22% 30,970,615 4.45%
Non-interest bearing deposits 4,552,425 4,499,537
Other liabilities 320,058 397,042
Stockholders' equity 3,174,938 3,088,261
------------ ------------
$ 42,681,094 $ 38,955,455
============ ============
Net yield on int. earning assets 3.56% 4.01%
</TABLE>
<TABLE>
<CAPTION>
Nine Months Ended
September 30
----------------------------------------------------------
Allowance For Loan Losses: 2000 1999
------------ ------------
<S> <C> <C>
Balance at beginning of year $ 338,375 $ 315,412
Net loans charged off:
Commercial 13,133 13,471
Real estate 8,923 9,550
Installment 37,489 42,635
------------ ------------
Total 59,545 65,656
Allowance of acquired banks 5,142 5,534
Provision charged to expense 89,727 75,389
------------ ------------
Balance at end of period $ 373,699 $ 330,679
============ ============
</TABLE>
<PAGE> 18
REGIONS FINANCIAL CORPORATION AND SUBSIDIARIES
SELECTED RATIOS
<TABLE>
<CAPTION>
12/31/98 3/31/99 6/30/99 9/30/99
-------- ------- ------- -------
<S> <C> <C> <C> <C>
Return on average assets* 1.47% 1.41% 1.40% 1.28%
Return on average equity* 17.56% 17.21% 17.39% 16.88%
Stockholders' equity per share $13.61 $13.93 $13.98 $13.77
Stockholders' equity to total assets 8.15% 8.08% 7.87% 7.32%
Allowance for loan losses as a percentage of loans,
net of unearned income 1.29% 1.29% 1.23% 1.20%
Loans, net of unearned income, to total deposits 85.95% 87.67% 93.41% 92.31%
Net charge-offs as a percentage of average loans** 0.48% 0.19% 0.42% 0.40%
Total non-performing assets (excluding loans 90 days
past due) as a percentage of loans and
other real estate 0.60% 0.68% 0.67% 0.67%
Total non-performing assets (including loans 90 days
past due) as a percentage of loans and
other real estate 1.15% 1.15% 1.05% 0.96%
<CAPTION>
12/31/99 3/31/00 6/30/00 9/30/00
-------- ------- ------- -------
<S> <C> <C> <C> <C>
Return on average assets* 1.23% 1.21% 1.19% 1.18%
Return on average equity* 17.05% 16.60% 16.01% 15.56%
Stockholders' equity per share $13.89 $14.25 $14.55 $15.16
Stockholders' equity to total assets 7.18% 7.58% 7.43% 7.70%
Allowance for loan losses as a percentage of loans,
net of unearned income 1.20% 1.21% 1.20% 1.20%
Loans, net of unearned income, to total deposits 93.85% 91.01% 93.49% 97.56%
Net charge-offs as a percentage of average loans** 0.47% 0.23% 0.23% 0.33%
Total non-performing assets (excluding loans 90 days
past due) as a percentage of loans and
other real estate 0.68% 0.74% 0.71% 0.76%
Total non-performing assets (including loans 90 days
past due) as a percentage of loans and
other real estate 0.93% 0.96% 0.93% 0.88%
</TABLE>
*Annualized based on operating income.
**Annualized
