1. Regions Financial Corp RF October 15, 2009 Chris Martin

2. Summary of Business Regions Bancorp is based in Birmingham, Ala. The bank, which has $142 billion in assets, operates retail and commercial banking businesses and owns investment brokerage house Morgan Keegan, which made up 19% of the firm's 2008 revenue. With about 2,000 offices, Regions operates in 16 states and is among the largest banks in the United States by assets. Regions Bancorp is based in Birmingham, Ala. The bank, which has $142 billion in assets, operates retail and commercial banking businesses and owns investment brokerage house Morgan Keegan, which made up 19% of the firm's 2008 revenue. With about 2,000 offices, Regions operates in 16 states and is among the largest banks in the United States by assets. Regional bank in the Southeast. Regional bank in the Southeast.

3. Recent News 10/14 Close: 6.09 up 2.18% 10/14 Close: 6.09 up 2.18% Analysts expect RF to post a third-quarter loss of 25 cents per share. (Yahoo 10/13) Analysts expect RF to post a third-quarter loss of 25 cents per share. (Yahoo 10/13) RF hit with class action lawsuit regarding purchase of AmSouth in 2006 (Morningstar 10/09) RF hit with class action lawsuit regarding purchase of AmSouth in 2006 (Morningstar 10/09)

4. Competitive Standing Market Cap: 7.2 Billion Market Cap: 7.2 Billion Largest southeast regional bank by market cap. Largest southeast regional bank by market cap. Significantly undervalued compared to competitors. Significantly undervalued compared to competitors. From Yahoo Finance

5. Key Statistics RF Ind. Avg. RF Ind. Avg. P/B:.5.8 P/S:.6 1.2 Rev Growth (3 yr): 14.3 7.8 ROE (ttm): -36.6 -21.7 ROA (ttm):-4.34 From Yahoo Finance and Morningstar

6. Key Statistics Cash/Sh: 8.02 Cash/Sh: 8.02 Book value/sh: 12.74 Book value/sh: 12.74 Debt Equity: 1.2 Debt Equity: 1.2 Dividend Yield:.04 (.7%) Dividend Yield:.04 (.7%) Total Cash: 9.54 Billion Total Cash: 9.54 Billion Total Debt: 25.43 Billion Total Debt: 25.43 Billion Beta:.93 Beta:.93 From Yahoo Finance and Morningstar

7. Intrinsic Value Morningstar FV Estimate = $10.00 Morningstar FV Estimate = $10.00 DDM = $11.76 DDM = $11.76 * Used 2Q09 EPS and Zacks next year estimate of earnings growth * Used 2Q09 EPS and Zacks next year estimate of earnings growth

8. 1 Yr. Compared to S&P & Suntrust

9. Analyst Opinions Morningstar considers this a mid/value Morningstar considers this a mid/value 4 stars and a 2.9 mean reccomendation 4 stars and a 2.9 mean reccomendation Yahoo analysts: Strong buy-3, Hold-14, Underperform-2 Yahoo analysts: Strong buy-3, Hold-14, Underperform-2

10. Analyst Opinions With a large residential construction portfolio and a sizable Florida exposure, Regions Financial has struggled since the busted housing bubble burst. But while the short-run looks rough for the bank, long-run profits could again emerge after the newly beefed-up capital base absorbs the short-term losses. With Regions' numerous capital raises, we believe the firm's equity/asset ratio will exceed 13% until the company repays the government's original Troubled Asset Relief Program money sometime in 2011. The additional capital allows Regions to absorb the $2 billion of annual loan losses we expect in 2009 and 2010 without jeopardizing its status with the regulators. With a large residential construction portfolio and a sizable Florida exposure, Regions Financial has struggled since the busted housing bubble burst. But while the short-run looks rough for the bank, long-run profits could again emerge after the newly beefed-up capital base absorbs the short-term losses. With Regions' numerous capital raises, we believe the firm's equity/asset ratio will exceed 13% until the company repays the government's original Troubled Asset Relief Program money sometime in 2011. The additional capital allows Regions to absorb the $2 billion of annual loan losses we expect in 2009 and 2010 without jeopardizing its status with the regulators.

11. SWOT Analysis Strengths: RF is in 16 states, and each region has its own management. Strong mgt team led by Dowd Ritter, CEO from Amsouth, well capitalized Strengths: RF is in 16 states, and each region has its own management. Strong mgt team led by Dowd Ritter, CEO from Amsouth, well capitalized Weaknesses: Expected EPS of -25 cents per share, weak earnings due to commercial real estate and construction lending to continue through 2010 Weaknesses: Expected EPS of -25 cents per share, weak earnings due to commercial real estate and construction lending to continue through 2010 Opportunities: Acquisitions, 25% annual asset growth last five years, Opportunities: Acquisitions, 25% annual asset growth last five years, Threats: 9% of loan book is in construction, falling FL home prices. Threats: 9% of loan book is in construction, falling FL home prices.

12. Overview https://www.regions.com/about_regions/I R_investorrelations.html https://www.regions.com/about_regions/I R_investorrelations.html