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EXHIBIT 99.1
[REGIONS LOGO]
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FORWARD-LOOKING STATEMENT
The information contained in this presentation 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.
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KEY HIGHLIGHTS
- ATTRACTIVE, GROWTH FRANCHISE IN VIBRANT SOUTHEASTERN MARKETS
- SALES CULTURE IN PLACE
- Emphasis on improving fee revenues
- EXCELLENT COST CONTROL
- Efficiency engrained in culture
- SUPERIOR CREDIT CULTURE
- High quality loan portfolio
- ONGOING BALANCE SHEET REPOSITIONING
- COMPELLING VALUE RELATIVE TO GROWTH POTENTIAL
[REGIONS LOGO]
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ATTRACTIVE GROWTH FRANCHISE
FRANCHISE GROWTH HIGHLIGHTS
<TABLE>
<CAPTION>
U.S.
REGIONS AVERAGE
------- -------
<S> <C> <C>
PROJECTED POPULATION
GROWTH 1999 - 2004 4.9% 4.2%
AVERAGE HOUSEHOLD INCOME
GROWTH 1999 - 2004 22.7% 20.3%
</TABLE>
[MAP OF FRANCHISE]
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Data are averages of county measures weighted by deposits as of 6/30/99.
Source: SNL Securities & Claritas.
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ATTRACTIVE GROWTH FRANCHISE
REGIONS' LARGEST BANKING MARKETS
<TABLE>
<CAPTION>
1999 - 2004
TOTAL PROJECTED
NUMBER OF DEPOSITS POPULATION
MSA NAME BRANCHES (MM) GROWTH
-------- -------- -------- -----------
<S> <C> <C> <C>
Birmingham, AL 42 $ 3,147 3.6%
Atlanta, GA 59 2,467 10.7
Little Rock-North Little Rock, AR 40 1,920 3.2
Mobile, AL 37 1,703 4.4
New Orleans, LA 32 1,171 0.2
Montgomery, AL 22 1,165 4.0
Huntsville, AL 19 936 3.8
Augusta-Aiken, GA-SC 26 653 5.3
Tuscaloosa, AL 8 597 4.1
Shreveport-Bossier City, LA 14 465 0.5
Daytona Beach, FL 6 412 7.8
Memphis, TN-AR-MS 12 376 4.3
Nashville, TN 17 355 6.6
Greenville-Spartanburg-Anderson, SC 9 340 4.1
Tampa-St.Petersburg-Clearwater, FL 12 334 6.6
Texarkana TS-AR 8 325 3.9
Baton Rouge, LA 9 321 1.8
</TABLE>
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Data as of 6/30/99, excluding zero-deposit branches. Source: SNL Securities
& Claritas.
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REGIONS FINANCIAL PERFORMANCE
BLUEPRINT FOR IMPROVED PERFORMANCE
<TABLE>
<S> <C> <C>
Strong Loan Growth
Net Interest Margin
Modest Charge-Offs EPS Growth
---- &
ROE
Increase Fee Income Enhancement
Cost Controls
Effective Capital Management
</TABLE>
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REGIONS FINANCIAL PERFORMANCE
LATEST QUARTER PERFORMANCE
<TABLE>
<S> <C> <C>
Strong Loan Growth ---- Loans Grew at 13% Rate
Net Interest Margin ---- Margin Declined 20 bp
Modest Charge-Offs ---- Net Charge-offs only 33bp
Increase Fee Income ---- Now 30% of Revenues
Cost Controls ---- Expenses Nearly Flat
Effective Capital Management ---- Bought Back 1.3 Million Shares
</TABLE>
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FOCUSING ON THE ENTIRE BALANCE SHEET
<TABLE>
<S> <C> <C>
Lending Strategies
Pricing Strategies
Deposit Strategies
Net Interest ----
Margin Reduced Wholesale Funding
Asset Management Product
Investment Securities Sales
</TABLE>
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FOCUSING ON THE ENTIRE BALANCE SHEET
REDUCING DEPENDENCE ON WHOLESALE BORROWINGS
SECURITIES/TOTAL ASSETS SHORT-TERM BORROWINGS/LIABILITIES
<TABLE>
<S> <C> <C> <C>
4Q99 26% 4Q99 19%
3Q00 21% 3Q00 9%
Peer Avg. 21% Peer Avg. 15%
</TABLE>
ACTIVE BALANCE SHEET MANAGEMENT HAS REDUCED REGIONS'
INTEREST RATE SENSITIVITY AND RISK.
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FOCUSING ON THE ENTIRE BALANCE SHEET
SUPPLEMENTING RATE RISK INITIATIVES WITH STRONG LOAN GROWTH
LOAN GROWTH NET OF ACQUISITIONS DEPOSIT GROWTH
<TABLE>
<S> <C> <C> <C>
1Q00 17% 1Q00 5%
2Q00 18% 2Q00 7%
3Q00 13% 3Q00 4%
Peer Avg. 4% Peer Avg. 1%
</TABLE>
Linked-quarter annualized on average balances. Linked quarter annualized.
STRONG LOAN AND DEPOSIT GROWTH IS RESULT OF MANAGEMENT'S INITIATIVES.
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SALES CULTURE IN PLACE
REDUCING DEPENDENCE ON NET INTEREST INCOME FOR REVENUE GROWTH
FEE INCOME GROWTH FEE INCOME / REVENUES
<TABLE>
<S> <C> <C> <C>
1Q00 1% 4Q99 28%
3Q00 7% 3Q00 30%
Peer Avg. 3% Peer Avg. 37%
</TABLE>
Linked-quarter basis. Data include total non-interest income excluding
securities transactions and other extraordinaries.
MORE THAN 40 FEE INCOME INITIATIVES ARE PAYING OFF AS FEES
NOW EXCEED 30% OF REVENUES.
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SALES CULTURE IN PLACE
<TABLE>
<S> <C> <C> <C> <C> <C>
TRUST DIVISION INVESTMENT COMPANY
- Annual Revenue of $56.9 million(1) - Annual Revenue of $43.9 million(1)
- $23.5 billion of assets under management - 30 Investment Reps added
- Improved profit margin - High expectations for further growth
- 43% in 2000 vs. 35% five years ago
<CAPTION>
FUNDS SALES INSURANCE COMMISSIONS
<S> <C> <C> <C>
1995 $ 1.55 1998 $ 7.8
1996 $ 3.46 1999 $ 10.3
1997 $ 14.38 2000(1) $ 11.1
1998 $ 49.00
1999 $ 141.28
2000(1) $ 120.50
</TABLE>
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Dollars in millions
(1) September 30, 2000, annualized
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CONTINUED EXCELLENT COST CONTROL
CAPITALIZING ON PROVEN EXPENSE MANAGEMENT EXPERTISE
NONINTEREST EXPENSE GROWTH G&A EXPENSE / AVG. ASSETS
<TABLE>
<S> <C> <C> <C>
4Q99 4.2% 4Q99 2.6%
1Q00 (1.9)% 3Q00 2.5%
2Q00 0.5% Peer Avg. 3.2%
3Q00 0.1%
Peer Avg. 0.4%
</TABLE>
Linked-quarter basis. Data include total non-interest expense less amortization
of intangibles, annualized for ratio calculation.
EVEN INCLUDING PURCHASE ACCOUNTING ACQUISITIONS,
EXPENSE GROWTH REMAINS IN CHECK.
AS RESULT OF BRANCH RATIONALIZATION PROJECT, EXPECT TO CONSOLIDATE 50 BRANCHES.
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COST EFFECTIVE DELIVERY SYSTEM
<TABLE>
<CAPTION>
REGIONS NET
<S> <C> <C> <C>
- BANKING OFFICES - 75,000 INTERNET BANKING CUSTOMERS
756 in 8 states - COMPETITIVE, FULL FEATURED ONLINE BANKING
- ATMs - Transfer funds between accounts
770 in 8 states - Electronic bill payment
- Viewing and reconciliation of accounts
- HOUSEHOLDS - Tracking of expenses
More than 2 million - Mortgage applications
- BUSINESS INTERNET BANKING PRODUCT RECENTLY INTRODUCED
- TELEPHONE - OTHER PLANNED PRODUCT ENHANCEMENTS
1.5 million calls per month - Internet treasury services
- Online securities trading
- INTERNET
317,000 hits per day
</TABLE>
REGIONS CONTINUES TO LEVERAGE MULTIPLE DELIVERY CHANNELS TO DELIVER
MAXIMUM CUSTOMER CONVENIENCE AT A COST LESS THAN 10 CENTS PER TRANSACTION.
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SUPERIOR CREDIT CULTURE
LONGSTANDING COMMITMENT TO CREDIT QUALITY AND CULTURE
RECENT INITIATIVES TO IMPROVE CREDIT
MINIMAL EXPOSURE TO NON-CORE CUSTOMERS
NET CHARGE-OFFS/AVERAGE LOANS
4Q99 - 0.47%
3Q00 - 0.33%
Peer Avg. - 0.36%
DESPITE BEING RANKED AMONG THE NATIONS 25 LARGEST BANKS BY ASSET SIZE, REGIONS
RANKS OVER 200TH IN EXPOSURE TO SYNDICATED LOANS.
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CAPITAL MANAGEMENT STRATEGY
- Constantly monitor and evaluate options for best returns:
- Internal growth
- Opportunistic acquisitions
- Stock buybacks
- Current authorization for 12 million share buyback program
- 5.4% of outstanding shares
- 10.8 million share repurchased
(7.5) million reissued for acquisition
3.3 million net shares repurchased
- Over next two years Regions should generate $300 to $500 million of
excess capital
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COMPELLING VALUE
PRICE/BOOK VALUE
<TABLE>
<CAPTION>
COMPANY 10/20/00
------- --------
<S> <C>
National Commerce 3.15 x
BB&T 2.65
First Tennessee 2.01
First Virginia 1.84
Wachovia 1.74
SunTrust 1.72
AmSouth 1.71
SouthTrust 1.58
Centura 1.53
Union Planters 1.48
Compass 1.46
Regions 1.38
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PEER AVERAGE 1.90 X
REGIONS DISCOUNT (27.2)%
</TABLE>
PRICE/2001E EPS
<TABLE>
<CAPTION>
COMPANY 10/20/00
------- --------
<S> <C>
National Commerce 13.1 x
First Virginia 12.3
BB&T 11.7
First Tennessee 10.3
SouthTrust 9.7
Centura 9.6
Union Planters 9.4
Wachovia 9.4
SunTrust 9.3
AmSouth 8.6
Regions 8.5
Compass 7.6
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PEER AVERAGE 10.1 X
REGIONS DISCOUNT (15.9)%
</TABLE>
2001E PEG RATIO
<TABLE>
<CAPTION>
COMPANY 10/20/00
------- --------
<S> <C>
First Virginia 1.76 x
Union Planters 1.17
BB&T 0.98
Wachovia 0.94
National Commerce 0.93
SouthTrust 0.88
Centura 0.87
AmSouth 0.86
First Tennessee 0.86
Regions 0.85
SunTrust 0.77
Compass 0.76
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PEER AVERAGE 0.98 X
REGIONS DISCOUNT (13.5)%
</TABLE>
DESPITE ITS GROWTH MARKETS, BALANCE SHEET MANAGEMENT INITIATIVES, FEE INCOME
GROWTH, EXPENSE CONTROLS AND CREDIT QUALITY, REGIONS CURRENTLY TRADES AT A
DISCOUNT TO ITS PEERS.
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Financial data are as of 9/30/00. Earnings estimates are First Call consensus.
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KEY HIGHLIGHTS
[REGIONS LOGO]
- ATTRACTIVE, GROWTH FRANCHISE IN VIBRANT SOUTHEASTERN MARKETS
- SALES CULTURE IN PLACE
- EXCELLENT COST CONTROL
- SUPERIOR CREDIT CULTURE
- ONGOING BALANCE SHEET REPOSITIONING
- COMPELLING VALUE RELATIVE TO GROWTH POTENTIAL
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[REGIONS LOGO]
