<PAGE> 1
EXHIBIT 99.1
January 18, 2001
REGIONS ANNOUNCES EARNINGS AND DIVIDEND INCREASE
Regions Financial Corporation today announced earnings for the fourth quarter
and year ended December 31, 2000. Net income for the fourth quarter of 2000
totaled $128.4 million or $.58 per diluted share. For the full year 2000, net
income was a record $527.5 million or $2.38 per diluted share, which represents
Regions 29th consecutive year of increased net income. Operating income for the
full year, 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 $509.7 million or $2.30 per diluted share.
Total assets are up 2% over year-end 1999 levels, with loans increasing 11% and
deposits up 7%. Internal growth in 2000 was supplemented by growth from five
bank acquisitions in Tennessee, Arkansas, Texas, Louisiana and Florida.
"I am very pleased to report that Regions increased net income in 2000 for the
29th consecutive year," Carl E. Jones, Jr., Regions President and Chief
Executive Officer, stated. "Even with the challenging interest rate environment
and higher credit costs in 2000, Regions' management team and employees, once
again, produced record-breaking results. We continue to exhibit loan and deposit
growth, generated both internally and through acquisitions."
"I am very excited about our recently announced pending acquisition of Morgan
Keegan," Jones added. "This transaction will transform Regions into a leading
diversified financial services company in the South."
In mid-December, Regions announced the signing of a definitive agreement under
which Regions will acquire Morgan Keegan, Inc., one of the South's largest
investment firms. Morgan Keegan operates over 50 offices in 14 states, primarily
within Regions' geographic footprint, with almost 800 financial advisors. This
transaction is expected to close during the first quarter of 2001, pending
Morgan Keegan stockholder approval, regulatory approval, as well as other
customary conditions of closing.
At its meeting yesterday, Regions' Board of Directors increased the quarterly
cash dividend to $.28 per share. The increased dividend is payable on April 2,
2001 to stockholders of record as of March 16, 2001. This is the 30th
consecutive year that Regions has increased its quarterly dividend and the 119th
consecutive quarter in which the company has paid cash dividends, going back to
its formation in 1971.
Regions Financial Corporation is a $43.7 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
January 18, 2001
Page Two
FINANCIAL HIGHLIGHTS (UNAUDITED)
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
<TABLE>
<CAPTION>
Three Months Ended Year Ended
December 31 December 31
--------------------------- ----------------------------
Earnings 2000 1999 Change 2000 1999 Change
----------- ----------- ------ ----------- ----------- ------
<S> <C> <C> <C> <C> <C> <C>
Operating income* $ 128,366 $ 129,059 -1% $ 509,721 $ 525,386 -3%
Net income $ 128,366 $ 129,059 -1% $ 527,523 $ 525,386 0%
Net income-cash basis(1) $ 135,350 $ 134,681 0% $ 553,617 $ 544,822 2%
Per share:
Operating income* $ 0.58 $ 0.59 -2% $ 2.31 $ 2.37 -3%
Operating income--diluted* $ 0.58 $ 0.59 -2% $ 2.30 $ 2.35 -2%
Net income $ 0.58 $ 0.59 -2% $ 2.39 $ 2.37 1%
Net income--diluted $ 0.58 $ 0.59 -2% $ 2.38 $ 2.35 1%
Net income--cash basis(1) $ 0.61 $ 0.62 -2% $ 2.51 $ 2.46 2%
Net income--diluted cash basis(1) $ 0.61 $ 0.61 0% $ 2.49 $ 2.43 2%
Cash dividends declared $ 0.27 $ 0.25 8% $ 1.08 $ 1.00 8%
</TABLE>
<TABLE>
<CAPTION>
December 31
-------------------------------------
Financial Condition 2000 1999 Change
----------- ----------- ------
<S> <C> <C> <C>
Total assets $43,688,293 $42,714,395 2%
Loans, net of unearned income $31,376,463 $28,144,675 11%
Securities $ 8,994,171 $10,913,044 -18%
Total earning assets $40,705,769 $39,715,124 2%
Total deposits $32,022,491 $29,989,094 7%
Stockholders' equity $ 3,457,944 $ 3,065,112 13%
Stockholders' equity per share $ 15.73 $ 13.89 13%
</TABLE>
Selected Ratios
<TABLE>
<S> <C> <C>
Return on average stockholders' equity based on
operating income* 15.76% 17.13%
Return on average stockholders' equity based on
net income 16.31% 17.13%
Return on average total assets based on
operating income* 1.19% 1.33%
Return on average total assets based on
net income 1.23% 1.33%
Stockholders' equity to total assets 7.92% 7.18%
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 97.98% 93.85%
</TABLE>
*Twelve 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 January 18, 2001 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
January 18, 2001
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 (including the Morgan Keegan
transaction), which in turn depends on a variety of factors, including: our
ability to achieve in a timely manner 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; our ability
to retain existing customers and employees of acquired operations; and the
continued growth of the markets that the acquired entities serve, consistent
with recent historical experience.
<PAGE> 4
FINANCIAL SUPPLEMENT TO FOURTH QUARTER 2000 EARNINGS RELEASE
SUMMARY
Net income for the fourth quarter of 2000 totaled $128.4 million or $.58 per
diluted share. For the full year 2000, net income was a record $527.5 million,
which represents Regions 29th consecutive year of increased net income.
Operating income for the full year, 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 $509.7 million or $2.30 per
diluted share.
Fourth quarter 2000 financial performance, compared to the prior quarter, was
favorably impacted by increased net interest income, continued growth in
non-interest income, and a lower effective tax rate. Partially offsetting these
improvements were a higher provision for loan losses and increased non-interest
expenses. Loan growth continued in the fourth quarter, but at a slower pace than
previous quarters. Core deposits increased at a 4% annualized rate during the
fourth quarter.
Regions completed three purchase acquisitions during the third quarter of 2000.
No acquisitions were completed during the fourth quarter. In mid-December,
Regions announced the signing of a definitive agreement under which Regions will
acquire Morgan Keegan, Inc., one of the South's largest and leading investment
firms. This transaction is expected to close during the first quarter of 2001,
pending Morgan Keegan stockholder approval, regulatory approval, as well as
other customary conditions of closing.
BALANCE SHEET CHANGES
Loan growth continued in the fourth quarter, but at a slower pace than previous
quarters, reflecting the overall slowing of the economy. Loan growth for the
fourth quarter was 6% 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-to-year comparison, adjusting for the effect of the $278 million credit
card portfolio sale in the first quarter of 2000, loans grew 12% over the last
year, with internal growth accounting for 11% of this growth and 1% attributable
to acquisitions. Geographically, the strongest areas of growth were the eastern
and central regions of the franchise. Assuming continued moderate economic
growth in Regions markets, Regions expects to continue to experience loan growth
in most areas of its franchise during the next quarter at a level near the
current quarterly growth rate.
On a linked-quarter annualized basis, excluding the effect of acquisitions,
average earning assets increased 2% (somewhat less than loans) because a portion
of the maturities from the securities portfolio were used to reduce short-term
wholesale deposit funding. Earning assets during the first quarter of 2001 are
expected to remain near the fourth quarter level.
Core deposits, which exclude wholesale deposit funding sources, increased at a
4% annualized rate during the fourth quarter. Internal core deposit growth,
which excludes the effect of deposits added by acquisitions and wholesale
deposits, slowed to a 1% annualized growth rate, based on linked-quarter average
balances.
<PAGE> 5
FINANCIAL SUPPLEMENT TO FOURTH QUARTER 2000 EARNINGS RELEASE
PAGE 2
Money market deposit accounts reflected some growth, with retail
certificates of deposit remaining relatively flat and savings accounts
reflecting a modest decline.
Regions continued to reduce its reliance on wholesale deposits and short-term
borrowings for funding sources during the fourth quarter of 2000, with funding
from these sources declining $936 million or 48% annualized over third quarter
2000 levels based on average balances. The increase in average long-term
borrowings during the fourth quarter reflects the additional $1.5 billion in
long-term Federal Home Loan Bank advances, which were added in mid-third quarter
2000.
OPERATING PERFORMANCE
Total revenues (defined as net interest income on a taxable equivalent basis
plus non-interest income, excluding securities transactions) increased $31.5
million or 25% annualized on a linked-quarter annualized basis over the third
quarter of this year. Taxable equivalent net interest income increased $28.2
million and non-interest income improved $3.3 million.
Net interest income (taxable equivalent) increased $11.2 million due to a 9
basis point (bps.) improvement in the net interest margin and modest growth in
earning assets. The yield on interest-earning assets improved 15 bps. this
quarter, while the rate on interest-bearing liabilities increased only 10 bps.
The primary reason for the improvement in interest-earning asset yields during
the fourth quarter was the conversion of additional interest income on
mortgage-related assets to nontaxable status. In previous quarters, a
significant portion of interest income on these mortgage-related assets was
subject to income taxes. During the fourth quarter of 2000, Regions
recapitalized one of its subsidiaries, as more fully explained below, which
resulted in the conversion of previously taxable interest income to nontaxable
status to Regions. Excluding the effect of the recapitalization of the
subsidiary which holds the mortgage-related assets, net interest income (taxable
equivalent) for the fourth quarter of 2000 would have increased $2.0 million
over the prior quarter and the fourth quarter net interest margin would have
been 3.42%, the same as the third quarter net interest margin. Current modeling
indicates that Regions net interest margin should gradually improve (estimated
at 5 to 8 bps. in first quarter 2001) over the fourth quarter level, assuming no
further changes in market interest rates.
Total fourth quarter non-interest income increased $3.3 million over third
quarter levels. Service charges on deposit accounts continued to reflect
consistent growth--up another $1.8 million over third quarter 2000 levels, a
reflection of recent pricing and management initiatives in this area. Trust fees
increased at an annualized rate of 10% in the fourth quarter, reflecting
increased sales efforts, pricing initiatives and improvements in market values
of fixed income assets under management in the fourth quarter. Mortgage
servicing and origination fees continued to reflect some decline in the fourth
quarter, but at a slower rate than the third quarter. Mortgage servicing and
origination fees in the fourth quarter were down $795,000 over third quarter
2000, primarily due to lower production. Single-family mortgage production was
$437 million in the fourth quarter, compared to $520 million in the third
quarter. Regions mortgage servicing portfolio totaled $21.6 billion at December
31, 2000, compared to $23.1 billion at September 30, 2000, reflecting the effect
of recent sales of certain mortgage servicing assets. Other non-interest income
increased $1.9 million over third quarter levels. Fourth quarter non-interest
income includes $12.2 million in gains from Regions' ongoing strategy of exiting
certain mortgage servicing portfolios. Regions' mortgage company completed the
sale of several portfolios in 2000 that it was not equipped to adequately
<PAGE> 6
FINANCIAL SUPPLEMENT TO FOURTH QUARTER 2000 EARNINGS RELEASE
PAGE 3
service and that did not fit well into its long-term mortgage servicing
operations. Areas of non-interest income that were weaker in the fourth quarter
of 2000, compared to the third quarter, were retail investment service fees,
insurance fees and credit card fees. Third quarter other non-interest income
included a $4.1 million gain from divestiture of a specialty consumer lending
subsidiary and $2.0 million in gains from sales of certain non-strategic
mortgage servicing assets.
Total non-interest expense increased $30.6 million or 11% over third quarter
2000 levels. Salaries and employee benefits increased $5.6 million, reflecting
higher long-term incentive compensation costs, primarily related to the 20%
increase in Regions stock price in the fourth quarter. Occupancy and furniture
and equipment expense increased $3.0 million in the third quarter due to higher
maintenance costs, increased property taxes, and higher depreciation charges,
primarily associated with computer equipment. Other non-interest expense
increased $22.0 million in the fourth quarter, compared to the third quarter of
2000, resulting from increases in a number of expense categories, including,
advertising and promotion, deferred insurance acquisition costs, legal and
professional fees, licenses, travel and business development, fraud and other
non-credit losses, and foreclosure expenses. A portion of the increase in other
non-interest expenses in the fourth quarter are not expected to recur in future
quarters.
The provision for loan losses in the fourth quarter of 2000 was increased to
$37.4 million or 0.48% 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 fourth quarter of 2000 were $34.6 million (0.44% of
average loans annualized), compared to $25.8 million (0.33% of average loans
annualized) in the third quarter of 2000 and $33.5 million (0.47% of average
loans annualized) in the fourth quarter of last year. The higher level of net
loan charge-offs in the fourth quarter of 2000 resulted primarily from a $11.4
million charge-off of a commercial loan to a borrower in the steel industry.
This loan had been on non-accrual status since the second quarter of 1999 and
recent unfavorable developments related to this credit required additional
charge-off in the fourth quarter of 2000. Without this charge-off, net loan
charge-offs for the fourth quarter of 2000 would have been 0.30% of average
loans annualized.
The higher level of commercial loan net charge-offs during the fourth quarter of
2000 was partially offset by lower levels of real estate and installment loan
net losses. For the full year 2000, net loan charge-offs were $94.1 million
(0.31% of average loans), down from $99.2 million (0.37% of average loans) in
1999.
Total non-performing assets ended the year at $238.8 million or 0.76% of loans
and other real estate, essentially unchanged from the $237.1 million or 0.76% of
loans and other real estate at September 30, 2000. Non-accrual loans declined
$2.4 million in the fourth quarter and other real estate increased $5.2 million.
Loans past due 90 days declined to $35.9 million at December 31, 2000, from
$36.5 million at September 30, 2000.
The effective tax rate declined in the fourth quarter of 2000, primarily due to
realization of a portion of the tax benefits associated with the
recapitalization of one of Regions' subsidiaries. During the fourth quarter of
2000, Regions recapitalized this subsidiary, raising $150 million in Tier 2
capital, which resulted in a reduction in taxable income of this subsidiary
attributable to Regions. The benefit to Regions of reduced taxable income of
this subsidiary attributable to Regions is expected to result in a lower
effective tax rate applicable to consolidated income before taxes of Regions for
each of the next several quarters. Regions' effective tax rate applicable to
consolidated income before taxes for each of the next several quarters will be
<PAGE> 7
FINANCIAL SUPPLEMENT TO FOURTH QUARTER 2000 EARNINGS RELEASE
PAGE 4
dependent upon a number of factors, including, but not limited to, the amount of
assets in the subsidiary, the yield of the assets in the subsidiary, the cost of
funding the subsidiary, possible loan losses in the subsidiary, the level of
expenses of the subsidiary, the level of income attributable to obligations of
states and political subdivisions, and various other factors. Based on
management's best estimate, the effective tax rate applicable to consolidated
income before taxes for each of the next several quarters is expected to range
from 28% to 31%.
ACQUISITION ACTIVITY
After completing three purchase acquisitions during the third quarter of 2000,
no acquisitions were completed during the fourth quarter. In mid-December,
Regions announced the signing of a definitive agreement under which Regions will
acquire Morgan Keegan, Inc., one of the South's largest investment firms. This
transaction is expected to close during the first quarter of 2001, pending
Morgan Keegan stockholder approval, regulatory approval, as well as other
customary conditions of closing.
Acquisitions completed since December 31, 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>
January 2000 LCB Corporation of $173,157 $112,403 $153,253 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 $885,460 $494,082 $752,963 26
-------------------------------------------------------------------------------------------------------------------
</TABLE>
As a part of its ongoing business strategy, Regions continually evaluates
business combination opportunities.
STOCK BUYBACK PROGRAM
During the fourth quarter of 2000, Regions repurchased approximately 1.9 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
5.3 million shares of its common stock (net of reissuances for completed
acquisitions).
<PAGE> 8
FINANCIAL SUPPLEMENT TO FOURTH QUARTER 2000 EARNINGS RELEASE
PAGE 5
In addition to the above 12 million share buyback authorization, Regions' Board
of Directors has authorized the Company to repurchase up to 100% of the shares
issued in connection with the Morgan Keegan transaction.
DIVIDEND INCREASE
At its January 2001 meeting, Regions' Board of Directors increased the quarterly
cash dividend to $.28 per share. This represents an increase of 4% over the
previous quarterly dividend level of $.27 per share. The increased dividend is
payable on April 2, 2001 to stockholders of record as of March 16, 2001. This is
the 30th consecutive year that Regions has increased its quarterly dividend and
the 119th consecutive quarter in which the company has paid cash dividends,
going back to its formation in 1971.
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.
<PAGE> 9
FINANCIAL SUPPLEMENT TO FOURTH QUARTER 2000 EARNINGS RELEASE
PAGE 6
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 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>
12/31/98 3/31/99 6/30/99 9/30/99
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
ASSETS
Cash and due from banks $ 1,619,006 $ 1,243,942 $ 1,350,476 $ 1,249,061
Interest-bearing deposits in other banks 143,965 75,492 77,255 48,228
Investment securities 3,125,114 3,480,541 3,327,552 3,560,934
Securities available for sale 4,844,023 5,489,283 5,512,854 5,938,836
Trading account assets 49,387 24,447 23,982 19,929
Mortgage loans held for sale 927,668 1,046,924 1,266,412 1,227,275
Federal funds sold and securities purchased
under agreement to resell 233,941 49,089 58,192 90,462
Loans 24,430,113 25,602,677 26,621,557 27,587,448
Unearned income (64,526) (62,441) (68,872) (75,976)
------------ ------------ ------------ ------------
Loans, net of unearned income 24,365,587 25,540,236 26,552,685 27,511,472
Allowance for loan losses (315,412) (330,151) (326,982) (330,679)
------------ ------------ ------------ ------------
Net Loans 24,050,175 25,210,085 26,225,703 27,180,793
Premises and equipment 534,425 559,241 571,564 575,139
Interest receivable 292,036 297,737 302,125 293,467
Due from customers on acceptances 57,046 73,036 54,339 29,614
Other assets 955,154 1,051,946 1,016,127 1,015,426
------------ ------------ ------------ ------------
$ 36,831,940 $ 38,601,763 $ 39,786,581 $ 41,229,164
============ ============ ============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits
Non-interest-bearing $ 4,577,125 $ 4,473,304 $ 4,569,264 $ 4,624,868
Interest-bearing 23,772,941 24,657,747 23,857,947 25,179,180
------------ ------------ ------------ ------------
Total Deposits 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 2,067,278 2,506,805 3,922,436 4,158,091
Commercial paper 56,750 56,750 56,750 59,250
Other short-term borrowings 2,372,700 2,934,584 3,457,604 3,436,292
------------ ------------ ------------ ------------
Total Short-term Borrowings 4,496,728 5,498,139 7,436,790 7,653,633
Long-term borrowings 571,040 497,430 388,377 371,148
------------ ------------ ------------ ------------
Total Borrowed Funds 5,067,768 5,995,569 7,825,167 8,024,781
Bank acceptances outstanding 57,046 73,036 54,339 29,614
Other liabilities 356,659 283,586 348,423 350,784
------------ ------------ ------------ ------------
Total Liabilities 33,831,539 35,483,242 36,655,140 38,209,227
Stockholders' equity:
Common stock 138,316 139,944 140,012 140,107
Surplus 1,147,357 1,167,184 1,167,994 1,169,324
Undivided profits 1,729,334 1,813,790 1,893,778 1,969,670
Treasury Stock (32,603) (34) (34) (172,056)
Unearned restricted stock (6,955) (6,294) (5,765) (5,236)
Accumulated other comprehensive income (loss) 24,952 3,931 (64,544) (81,872)
------------ ------------ ------------ ------------
Total Stockholders' Equity 3,000,401 3,118,521 3,131,441 3,019,937
------------ ------------ ------------ ------------
$ 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 12/31/00
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
ASSETS
Cash and due from banks $ 1,393,418 $ 1,038,303 $ 1,140,766 $ 1,076,869 $ 1,210,872
Interest-bearing deposits in other banks 9,653 51,875 2,202 2,449 3,246
Investment securities 4,054,279 3,602,979 3,626,457 3,607,520 3,539,202
Securities available for sale 6,858,765 5,528,877 5,619,226 5,545,803 5,454,969
Trading account assets 14,543 24,155 18,652 21,317 13,437
Mortgage loans held for sale 567,131 351,978 356,801 251,063 222,902
Federal funds sold and securities purchased
under agreement to resell 66,078 61,863 72,108 246,556 95,550
Loans 28,221,240 29,164,121 30,479,546 31,299,305 31,472,656
Unearned income (76,565) (82,834) (88,556) (95,242) (96,193)
------------ ------------ ------------ ------------ ------------
Loans, net of unearned income 28,144,675 29,081,287 30,390,990 31,204,063 31,376,463
Allowance for loan losses (338,375) (352,998) (363,475) (373,699) (376,508)
------------ ------------ ------------ ------------ ------------
27,806,300 28,728,289 30,027,515 30,830,364 30,999,955
Net Loans 580,707 585,934 588,697 596,900 598,632
Premises and equipment 306,707 300,445 326,815 333,294 349,637
Interest receivable 72,098 85,624 53,969 24,274 107,912
Due from customers on acceptances 984,716 1,058,081 1,068,306 1,090,687 1,091,979
Other assets ------------ ------------ ------------ ------------ ------------
$ 42,714,395 $ 41,418,403 $ 42,901,514 $ 43,627,096 $ 43,688,293
============ ============ ============ ============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits
Non-interest-bearing $ 4,419,693 $ 4,853,155 $ 4,573,881 $ 4,561,388 $ 4,512,883
Interest-bearing 25,569,401 27,101,228 27,935,020 27,424,262 27,509,608
------------ ------------ ------------ ------------ ------------
29,989,094 31,954,383 32,508,901 31,985,650 32,022,491
Total Deposits
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 1,996,812
Commercial paper 56,750 26,750 36,750 38,750 27,750
Other short-term borrowings 1,953,622 725,045 1,816,220 1,620,673 1,108,580
------------ ------------ ------------ ------------ ------------
Total Short-term Borrowings 7,624,985 3,888,589 4,483,369 3,522,176 3,133,142
Long-term borrowings 1,750,861 2,032,411 2,370,148 4,392,399 4,478,027
------------ ------------ ------------ ------------ ------------
Total Borrowed Funds 9,375,846 5,921,000 6,853,517 7,914,575 7,611,169
Bank acceptances outstanding 72,098 85,624 53,969 24,274 107,912
Other liabilities 212,245 316,662 297,692 342,689 488,777
------------ ------------ ------------ ------------ ------------
Total Liabilities 39,649,283 38,277,669 39,714,079 40,267,188 40,230,349
Stockholders' equity:
Common stock 137,897 138,857 139,028 139,050 139,105
Surplus 1,022,825 1,051,634 1,056,452 1,058,291 1,058,733
Undivided profits 2,044,209 2,130,595 2,196,513 2,264,476 2,333,285
Treasury Stock 0 (38,696) (73,941) (18,988) (67,135)
Unearned restricted stock (4,719) (4,216) (8,088) (7,673) (6,952)
Accumulated other comprehensive income (loss) (135,100) (137,440) (122,529) (75,248) 908
------------ ------------ ------------ ------------ ------------
Total Stockholders' Equity 3,065,112 3,140,734 3,187,435 3,359,908 3,457,944
------------ ------------ ------------ ------------ ------------
$ 42,714,395 $ 41,418,403 $ 42,901,514 $ 43,627,096 $ 43,688,293
============ ============ ============ ============ ============
</TABLE>
<PAGE> 11
REGIONS FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(Dollar Amounts in Thousands)
<TABLE>
<CAPTION>
12/31/98 3/31/99 6/30/99 9/30/99 12/31/99
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Interest Income:
Interest and fees on loans $526,305 $512,478 $540,192 $562,484 $586,632
Interest on securities:
Taxable interest income 111,687 121,762 128,773 135,346 139,054
Tax-exempt interest income 9,011 9,798 9,761 9,756 10,169
-------- -------- -------- -------- --------
Total Interest on Securities 120,698 131,560 138,534 145,102 149,223
Interest on mortgage loans held for sale 12,865 20,636 17,548 22,506 20,312
Income on federal funds sold and
securities purchased under agreement
to resell 3,965 938 937 1,046 1,335
Interest on time deposits in other banks 927 514 573 372 282
Interest on trading account assets 520 315 352 476 339
-------- -------- -------- -------- --------
Total Interest Income 665,280 666,441 698,136 731,986 758,123
Interest Expense:
Interest on deposits 265,876 257,455 255,257 258,847 285,240
Interest on short-term borrowings 50,088 57,599 72,928 105,719 93,272
Interest on long-term borrowings 8,757 8,790 7,685 6,972 19,067
-------- -------- -------- -------- --------
Total Interest Expense 324,721 323,844 335,870 371,538 397,579
-------- -------- -------- -------- --------
Net Interest Income 340,559 342,597 362,266 360,448 360,544
Provision for loan losses 19,023 20,738 23,944 30,707 38,269
-------- -------- -------- -------- --------
Net Interest Income After Provision
for Loan Losses 321,536 321,859 338,322 329,741 322,275
Non-Interest Income:
Trust department income 15,556 12,751 12,610 14,530 13,543
Service charges on deposit accounts 48,463 44,812 46,845 50,453 52,874
Mortgage servicing and origination fees 27,635 33,084 26,453 22,675 20,906
Securities gains (losses) 3,875 16 22 3 119
Other 35,206 52,452 35,861 45,611 51,521
-------- -------- -------- -------- --------
Total Non-Interest Income 130,735 143,115 121,791 133,272 138,963
Non-Interest Expense:
Salaries and employee benefits 137,350 136,649 138,723 140,577 135,620
Net occupancy expense 16,223 14,656 14,334 16,422 16,223
Furniture and equipment expense 19,416 16,530 16,322 18,370 20,791
Other 84,070 94,740 90,845 89,851 103,659
-------- -------- -------- -------- --------
Total Operating Expense 257,059 262,575 260,224 265,220 276,293
Merger and restructuring costs 6,710 0 0 0 0
-------- -------- -------- -------- --------
Total Non-Interest Expense 263,769 262,575 260,224 265,220 276,293
-------- -------- -------- -------- --------
Income Before Income Taxes 188,502 202,399 199,889 197,793 184,945
Applicable income taxes 61,495 73,019 63,900 66,835 55,886
-------- -------- -------- -------- --------
Net Income $127,007 $129,380 $135,989 $130,958 $129,059
======== ======== ======== ======== ========
Operating Income $131,194 (a) $129,380 $135,989 $130,958 $129,059
======== ======== ======== ======== ========
<CAPTION>
3/31/00 6/30/00 9/30/00 12/31/00
--------- -------- -------- ---------
<S> <C> <C> <C> <C>
Interest Income:
Interest and fees on loans $ 602,957 $633,868 $667,305 $ 684,013
Interest on securities:
Taxable interest income 155,067 137,104 136,452 133,351
Tax-exempt interest income 10,161 10,325 10,680 10,560
--------- -------- -------- ---------
Total Interest on Securities 165,228 147,429 147,132 143,911
Interest on mortgage loans held for sale 10,313 9,329 8,176 6,693
Income on federal funds sold and
securities purchased under agreement
to resell 1,129 1,370 1,672 1,366
Interest on time deposits in other banks 193 184 221 498
Interest on trading account assets 409 407 188 252
--------- -------- -------- ---------
Total Interest Income 780,229 792,587 824,694 836,733
Interest Expense:
Interest on deposits 319,177 342,894 358,033 352,156
Interest on short-term borrowings 77,956 64,422 65,623 68,242
Interest on long-term borrowings 28,980 36,580 58,919 72,464
--------- -------- -------- ---------
Total Interest Expense 426,113 443,896 482,575 492,862
--------- -------- -------- ---------
Net Interest Income 354,116 348,691 342,119 343,871
Provision for loan losses 29,177 27,804 32,746 37,372
--------- -------- -------- ---------
Net Interest Income After Provision
for Loan Losses 324,939 320,887 309,373 306,499
Non-Interest Income:
Trust department income 14,051 14,059 14,597 14,968
Service charges on deposit accounts 53,408 57,542 59,465 61,255
Mortgage servicing and origination fees 21,956 21,539 20,016 19,221
Securities gains (losses) (40,018) 67 28 (5)
Other 117,395 44,443 52,641 54,582
--------- -------- -------- ---------
Total Non-Interest Income 166,792 137,650 146,747 150,021
Non-Interest Expense:
Salaries and employee benefits 147,253 146,244 144,868 150,492
Net occupancy expense 15,858 16,811 18,583 19,423
Furniture and equipment expense 16,997 17,320 18,880 21,016
Other 91,027 92,412 91,008 112,990
--------- -------- -------- ---------
Total Operating Expense 271,135 272,787 273,339 303,921
Merger and restructuring costs 0 0 0 0
--------- -------- -------- ---------
Total Non-Interest Expense 271,135 272,787 273,339 303,921
--------- -------- -------- ---------
Income Before Income Taxes 220,596 185,750 182,781 152,599
Applicable income taxes 74,591 60,457 54,922 24,233
--------- -------- -------- ---------
Net Income $ 146,005 $125,293 $127,859 $ 128,366
========= ======== ======== =========
Operating Income $ 128,203 (b) $125,293 $127,859 $ 128,366
========= ======== ======== =========
</TABLE>
<PAGE> 12
REGIONS FINANCIAL CORPORATION AND SUBSIDIARIES
(Dollar Amounts in Thousands)
<TABLE>
<CAPTION>
12/31/98 3/31/99 6/30/99 9/30/99 12/31/99 3/31/00
---------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Average shares outstanding--during quarter 219,798 222,408 223,995 221,696 218,414 221,299
Average shares outstanding--during
quarter, diluted 223,325 225,467 226,887 223,715 219,862 222,549
Actual shares outstanding--end of quarter 220,454 223,910 224,018 219,289 220,636 220,422
Operating income per share $ 0.60 $ 0.58 $ 0.61 $ 0.59 $ 0.59 $ 0.58
Operating income per share, diluted $ 0.59 $ 0.57 $ 0.60 $ 0.59 $ 0.59 $ 0.58
Net income per share $ 0.58 $ 0.58 $ 0.61 $ 0.59 $ 0.59 $ 0.66
Net income per share, diluted $ 0.57 $ 0.57 $ 0.60 $ 0.59 $ 0.59 $ 0.66
Dividends per share $ 0.23 $ 0.25 $ 0.25 $ 0.25 $ 0.25 $ 0.27
Taxable equivalent net interest income $ 344,902 $ 348,084 $ 367,831 $ 366,236 $ 366,479 $ 359,914
<CAPTION>
6/30/00 9/30/00 12/31/00
---------- ----------- -----------
<S> <C> <C> <C>
Average shares outstanding--during quarter 220,264 220,424 221,062
Average shares outstanding--during
quarter, diluted 221,426 221,615 222,366
Actual shares outstanding--end of quarter 219,095 221,612 219,769
Operating income per share $ 0.57 $ 0.58 $ 0.58
Operating income per share, diluted $ 0.57 $ 0.58 $ 0.58
Net income per share $ 0.57 $ 0.58 $ 0.58
Net income per share, diluted $ 0.57 $ 0.58 $ 0.58
Dividends per share $ 0.27 $ 0.27 $ 0.27
Taxable equivalent net interest income $ 354,571 $ 347,956 $ 359,154
(a) Operating income excludes non-recurring merger charges of $6.7 million pre-tax or $4.2 million after tax.
(b) 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).
</TABLE>
<PAGE> 13
REGIONS FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(Dollar Amounts in Thousands)
<TABLE>
<CAPTION>
Year Ended
December 31
---------------------------
2000 1999
------------ ------------
<S> <C> <C>
Interest Income:
Interest and fees on loans $ 2,588,143 $ 2,201,786
Interest on securities:
Taxable interest income 561,974 524,935
Tax-exempt interest income 41,726 39,484
------------ ------------
Total Interest on Securities 603,700 564,419
Interest on mortgage loans held for sale 34,511 81,002
Income on federal funds sold and
securities purchased under agreement
to resell 5,537 4,256
Interest on time deposits in other banks 1,096 1,741
Interest on trading account assets 1,256 1,482
------------ ------------
Total Interest Income 3,234,243 2,854,686
Interest Expense:
Interest on deposits 1,372,260 1,056,799
Interest on short-term borrowings 276,243 329,518
Interest on long-term borrowings 196,943 42,514
------------ ------------
Total Interest Expense 1,845,446 1,428,831
------------ ------------
Net Interest Income 1,388,797 1,425,855
Provision for loan losses 127,099 113,658
------------ ------------
Net Interest Income After Provision
for Loan Losses 1,261,698 1,312,197
Non-Interest Income:
Trust department income 57,675 53,434
Service charges on deposit accounts 231,670 194,984
Mortgage servicing and origination fees 82,732 103,118
Securities gains (losses) (39,928) 160
Other 269,061 185,445
------------ ------------
Total Non-Interest Income 601,210 537,141
Non-Interest Expense:
Salaries and employee benefits 588,857 551,569
Net occupancy expense 70,675 61,635
Furniture and equipment expense 74,213 72,013
Other 387,437 379,095
------------ ------------
Total Non-Interest Expense 1,121,182 1,064,312
------------ ------------
Income Before Income Taxes 741,726 785,026
Applicable income taxes 214,203 259,640
------------ ------------
Net Income $ 527,523 $ 525,386
============ ============
Operating Income $ 509,721 $ 525,386
============ ============
</TABLE>
<PAGE> 14
REGIONS FINANCIAL CORPORATION AND SUBSIDIARIES
(Dollar Amounts in Thousands)
<TABLE>
<CAPTION>
Year Ended
December 31
-----------------------
2000 1999
---------- ----------
<S> <C> <C>
Average shares outstanding--year-to-date 220,762 221,617
Average shares outstanding--year-to-date, diluted 221,989 223,967
Actual shares outstanding--end of quarter 219,769 220,636
Operating income per share $ 2.31 $ 2.37
Operating income per share, diluted $ 2.30 $ 2.35
Net income per share $ 2.39 $ 2.37
Net income per share, diluted $ 2.38 $ 2.35
Dividends per share $ 1.08 $ 1.00
Taxable equivalent net interest income 1,421,595 1,448,630
</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
6/30/99 9/30/99 12/31/99
---------------------- ---------------------- ----------------------
Average Yield/ Average Yield/ Average Yield/
Balance Rate Balance Rate Balance Rate
------------ ------ ------------ ------ ------------ ------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Earning assets:
Taxable securities $ 8,141,637 6.33% $ 8,451,738 6.34% $ 8,663,789 6.36%
Non-taxable securities 741,393 7.83% 739,665 7.87% 756,355 7.88%
Federal funds sold 95,142 3.95% 79,125 5.24% 101,902 5.20%
Loans, net of unearned income 26,101,980 8.32% 27,020,688 8.27% 28,079,812 8.31%
Int. bear. deposits in oth. bnks 50,919 4.51% 43,293 3.41% 25,640 4.36%
Mortgages held for sale 989,377 7.11% 1,260,046 7.09% 1,078,896 7.47%
Trading account assets 21,975 7.49% 22,370 9.47% 19,839 7.50%
------------ ------------ ------------
Total earning assets 36,142,423 7.81% 37,616,925 7.78% 38,726,233 7.83%
Allowance for loan losses (329,447) (323,925) (331,666)
Cash and due from banks 1,272,902 1,211,370 1,217,784
Other non-earning assets 1,918,007 2,004,159 1,931,737
------------ ------------ ------------
$ 39,003,885 $ 40,508,529 $ 41,544,088
============ ============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Interest-bearing liabilities:
Savings accounts $ 1,523,845 1.62% $ 1,470,113 1.57% $ 1,410,750 1.53%
Interest bearing transaction
accounts 516,085 3.93% 434,837 4.00% 350,535 4.89%
Money market accounts 9,231,649 3.16% 9,079,236 3.34% 9,187,763 3.47%
Certificates of deposit of
$100,000 or more 4,065,120 5.30% 4,198,193 5.32% 4,591,010 5.47%
Other interest-bearing accounts 8,832,472 5.34% 8,909,144 5.17% 9,882,913 5.30%
Federal funds purchased 2,899,138 4.87% 4,490,354 5.24% 4,527,000 5.52%
Commercial paper 56,750 6.01% 57,343 6.52% 58,061 5.86%
Other short-term borrowings 3,392,371 4.35% 3,434,210 5.25% 2,315,210 5.04%
Long-term borrowings 471,331 6.39% 385,291 7.18% 1,302,209 5.81%
------------ ------------ ------------
Total int-bearing liabilities 30,988,761 4.34% 32,458,721 4.54% 33,625,451 4.69%
Non-interest bearing deposits 4,510,618 4,596,807 4,582,329
Other liabilities 367,156 375,602 332,596
Stockholders' equity 3,137,350 3,077,399 3,003,712
------------ ------------ ------------
$ 39,003,885 $ 40,508,529 $ 41,544,088
============ ============ ============
Net yield on interest earning assets 4.08% 3.86% 3.75%
<CAPTION>
Quarter Ended Quarter Ended Quarter Ended Quarter Ended
3/31/00 6/30/00 9/30/00 12/31/00
---------------------- ---------------------- ---------------------- ----------------------
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 $ 9,551,271 6.52% $ 8,408,489 6.55% $ 8,405,165 6.45% $ 8,246,431 6.52%
Non-taxable securities 782,857 7.76% 792,115 7.71% 820,542 7.59% 809,505 7.51%
Federal funds sold 79,591 5.71% 87,145 6.32% 102,581 6.48% 84,019 6.47%
Loans, net of unearned income 28,669,394 8.47% 29,714,554 8.60% 30,799,374 8.63% 31,319,500 8.80%
Int. bear. deposits in oth. bnks 12,376 6.27% 10,818 6.84% 12,845 6.84% 31,410 6.31%
Mortgages held for sale 508,777 8.15% 411,105 9.13% 330,682 9.84% 258,762 10.29%
Trading account assets 31,354 5.65% 21,434 8.06% 11,961 7.11% 14,503 8.69%
------------ ------------ ------------ ------------
Total earning assets 39,635,620 7.98% 39,445,660 8.14% 40,483,150 8.16% 40,764,130 8.31%
Allowance for loan losses (345,530) (357,364) (363,586) (374,738)
Cash and due from banks 1,239,194 1,084,622 1,046,548 1,010,589
Other non-earning assets 2,059,622 2,053,414 2,055,988 2,109,558
------------ ------------ ------------ ------------
$ 42,588,906 $ 42,226,332 $ 43,222,100 $ 43,509,539
============ ============ ============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Interest-bearing liabilities:
Savings accounts $ 1,389,361 1.53% $ 1,362,045 1.51% $ 1,305,032 1.50% $ 1,262,885 1.49%
Interest bearing transaction
accounts 415,351 4.22% 416,655 4.07% 393,976 4.48% 395,865 3.41%
Money market accounts 10,052,953 3.84% 10,341,395 4.20% 10,014,333 4.33% 10,235,426 4.43%
Certificates of deposit of
$100,000 or more 4,907,081 5.74% 4,654,185 6.00% 4,212,396 6.22% 4,090,534 6.45%
Other interest-bearing accounts 10,610,269 5.44% 10,961,131 5.73% 11,522,007 6.00% 10,579,493 6.16%
Federal funds purchased 4,355,968 5.83% 2,935,116 6.25% 2,231,550 6.64% 2,769,611 6.60%
Commercial paper 56,140 6.31% 35,432 6.29% 36,815 6.30% 45,376 6.36%
Other short-term borrowings 944,198 5.89% 1,161,176 6.33% 1,728,085 6.40% 1,342,578 6.38%
Long-term borrowings 1,925,296 6.05% 2,344,772 6.27% 3,583,967 6.54% 4,403,511 6.55%
------------ ------------ ------------ ------------
Total int-bearing liabilities 34,656,617 4.95% 34,211,907 5.22% 35,028,161 5.48% 35,125,279 5.58%
Non-interest bearing deposits 4,532,369 4,544,703 4,579,901 4,590,119
Other liabilities 293,243 322,007 344,654 383,205
Stockholders' equity 3,106,677 3,147,715 3,269,384 3,410,936
------------ ------------ ------------ ------------
$ 42,588,906 $ 42,226,332 $ 43,222,100 $ 43,509,539
============ ============ ============ ============
Net yield on interest earning assets 3.65% 3.62% 3.42% 3.51%
</TABLE>
<PAGE> 16
REGIONS FINANCIAL CORPORATION AND SUBSIDIARIES
QUARTERLY ALLOWANCE FOR LOAN LOSSES AND NON-PERFORMING ASSETS
(Dollar Amounts in Thousands)
<TABLE>
<CAPTION>
6/30/99 9/30/99 12/31/99 3/31/00 6/30/00 9/30/00 12/31/00
-------- -------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
Balance at beginning of period $330,151 $326,982 $330,679 $338,375 $352,998 $363,475 $373,699
Net loans charged off (recovered):
Commercial 8,833 2,805 9,184 2,345 3,308 7,480 22,845
Real estate 805 8,379 5,122 559 3,483 4,881 2,000
Installment 17,475 15,826 19,226 13,509 10,536 13,444 9,718
-------- -------- -------- -------- -------- -------- --------
Total 27,113 27,010 33,532 16,413 17,327 25,805 34,563
Allowance of acquired banks 0 0 2,959 1,859 0 3,283 0
Provision charged to expense 23,944 30,707 38,269 29,177 27,804 32,746 37,372
-------- -------- -------- -------- -------- -------- --------
Balance at end of period $326,982 $330,679 $338,375 $352,998 $363,475 $373,699 $376,508
======== ======== ======== ======== ======== ======== ========
Non-performing Assets:
Loans on a non-accruing basis $159,103 $161,837 $169,904 $189,260 $184,934 $200,419 $197,974
Renegotiated loans 5,849 10,219 8,390 12,969 12,616 13,403 12,372
Foreclosed property ("Other
real estate") 13,942 13,371 12,662 13,474 16,837 23,270 28,442
-------- -------- -------- -------- -------- -------- --------
Total NPA excluding past due
loans $178,894 $185,427 $190,956 $215,703 $214,387 $237,092 $238,788
-------- -------- -------- -------- -------- -------- --------
Loans past due 90 days or more $ 99,575 $ 77,918 $ 71,952 $ 64,117 $ 67,388 $ 36,543 $ 35,903
-------- -------- -------- -------- -------- -------- --------
Total NPA including past due
loans $278,469 $263,345 $262,908 $279,820 $281,775 $273,635 $274,691
======== ======== ======== ======== ======== ======== ========
</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>
Year Ended
December 31
--------------------------------------------------
2000 1999
---------------------- ---------------------
Average Yield/ Average Yield/
Balance Rate Balance Rate
----------- ------ ----------- ------
<S> <C> <C> <C> <C>
ASSETS
Earning assets:
Taxable securities $8,651,052 6.51% $8,244,603 6.35%
Non-taxable securities 801,330 7.64% 745,064 7.91%
Federal funds sold 88,361 6.27% 94,875 4.49%
Loans, net of unearned income 30,130,808 8.63% 26,478,349 8.33%
Int. bear. deposits in oth. bnks 16,891 6.49% 43,720 3.98%
Mortgages held for sale 376,880 9.16% 1,130,256 7.17%
Trading account assets 19,777 7.08% 21,753 7.65%
----------- -----------
Total earning assets 40,085,099 8.15% 36,758,620 7.83%
Allowance for loan losses (360,353) (328,188)
Cash and due from banks 1,094,874 1,237,318
Other non-earning assets 2,069,717 1,940,182
----------- -----------
$42,889,337 $39,607,932
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Interest-bearing liabilities:
Savings accounts $1,329,580 1.51% $1,477,688 1.61%
Interest bearing transaction
accounts 405,404 4.04% 458,094 4.22%
Money market accounts 10,160,829 4.20% 9,095,569 3.27%
Certificates of deposit of
$100,000 or more 4,464,330 6.08% 4,218,828 5.36%
Other int-bearing accounts 10,918,949 5.84% 9,215,075 5.32%
Federal funds purchased 3,069,933 6.25% 3,532,553 5.21%
Commercial paper 43,428 6.32% 57,230 6.09%
Other short-term borrowings 1,295,328 6.29% 2,913,077 4.88%
Long-term borrowings 3,069,465 6.42% 671,665 6.33%
----------- -----------
Total int-bearing liabilities 34,757,246 5.31% 31,639,779 4.52%
Non-interest bearing deposits 4,561,900 4,520,405
Other liabilities 335,931 380,798
Stockholders' equity 3,234,260 3,066,950
----------- -----------
$42,889,337 $39,607,932
=========== ===========
Net yield on int. earning assets 3.55% 3.94%
</TABLE>
<TABLE>
<CAPTION>
Year Ended
December 31
----------------------------------------
Allowance For Loan Losses: 2000 1999
----------- -----------
<S> <C> <C>
Balance at beginning of year $ 338,375 $ 315,412
Net loans charged off:
Commercial 35,978 22,655
Real estate 10,923 14,672
Installment 47,207 61,861
----------- -----------
Total 94,108 99,188
Allowance of acquired banks 5,142 8,493
Provision charged to expense 127,099 113,658
----------- -----------
Balance at end of period $ 376,508 $ 338,375
=========== ===========
</TABLE>
<PAGE> 18
REGIONS FINANCIAL CORPORATION AND SUBSIDIARIES
SELECTED RATIOS
<TABLE>
<CAPTION>
3/31/99 6/30/99 9/30/99 12/31/99 3/31/00 6/30/00 9/30/00 12/31/00
------- ------- ------- -------- ------- ------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Return on average assets* 1.41% 1.40% 1.28% 1.23% 1.21% 1.19% 1.18% 1.17%
Return on average equity* 17.21% 17.39% 16.88% 17.05% 16.60% 16.01% 15.56% 14.97%
Stockholders' equity per share $13.93 $13.98 $13.77 $13.89 $14.25 $14.55 $15.16 $15.73
Stockholders' equity to total assets 8.08% 7.87% 7.32% 7.18% 7.58% 7.43% 7.70% 7.92%
Allowance for loan losses as a percentage of loans,
net of unearned income 1.29% 1.23% 1.20% 1.20% 1.21% 1.20% 1.20% 1.20%
Loans, net of unearned income, to total deposits 87.67% 93.41% 92.31% 93.85% 91.01% 93.49% 97.56% 97.98%
Net charge-offs as a percentage of average loans** 0.19% 0.42% 0.40% 0.47% 0.23% 0.23% 0.33% 0.44%
Total non-performing assets (excluding loans 90 days
past due) as a percentage of loans and
other real estate 0.68% 0.67% 0.67% 0.68% 0.74% 0.71% 0.76% 0.76%
Total non-performing assets (including loans 90 days
past due) as a percentage of loans and
other real estate 1.15% 1.05% 0.96% 0.93% 0.96% 0.93% 0.88% 0.87%
</TABLE>