EX-99.1 3 g72199ex99-1.txt PRESS RELEASE EXHIBIT 99.1 October 18, 2001 REGIONS ANNOUNCES EARNINGS AND DIVIDEND Regions Financial Corporation today announced earnings for the quarter and nine months ended September 30, 2001. Net income totaled $135.2 million or $.59 per diluted share for the third quarter of 2001, compared to $127.9 million or $.58 for the third quarter of 2000. Cash basis earnings, which excludes amortization of excess purchase price, totaled $.65 per diluted share, a 7% increase over the same period of the prior year. Operating income for the first nine months of 2001, which excludes a second quarter, non-recurring after-tax charge of $17.8 million, totaled $388.6 million or $1.72 per diluted share. Operating income for the first nine months of 2000, which excludes a first quarter, non-recurring after-tax gain of $17.8 million, totaled $381.4 million or $1.72 per diluted share. Year-to-date net income was $370.8 million or $1.64 per diluted share, compared to net income for the first nine months of last year of $399.2 million or $1.80 per diluted share. Carl E. Jones, Jr., chairman, president and chief executive officer of Regions, said, "We are pleased to announce another quarter of sound financial performance. Our net interest margin continues to improve and our cost control initiatives resulted in a third consecutive quarter of reduced core operating expenses. Considering the challenging market environment most brokerage companies are currently experiencing, we are pleased with Morgan Keegan's contribution this quarter, which continues to be supported by good performance from the fixed income division." "In addition, our strong credit culture continues to result in low levels of loan losses, even in the face of a weakening economy and increased levels of credit losses in the banking industry." Regions net loan losses totaled .36% (annualized) of average loans in the third quarter of 2001 and its net interest margin improved 5 bps. to 3.62%. Regions also announced that its Board of Directors has declared a quarterly cash dividend of $.28 per share, payable January 2, 2002, to stockholders of record as of December 14, 2001. This is the 122nd consecutive quarter in which the company has paid cash dividends, going back to its formation in 1971. Regions Financial Corporation, with $45.7 billion in assets, ranks among the 25 largest financial services companies in the nation. Serving customers throughout the South, it provides traditional commercial and retail banking services and other financial services in the fields of investment banking, asset management, trust, mutual funds, securities brokerage, insurance, leasing and mortgage banking. Its banking affiliate, Regions Bank, offers banking services from more than 670 banking offices in Alabama, Arkansas, Florida, Georgia, Louisiana, South Carolina, Tennessee and Texas. Regions provides investment and brokerage services from more than 135 offices of Morgan Keegan & Company, Inc., one of the South's largest investment firms. Regions ranks on both the Forbes 500 and the Fortune 500 listing of America's largest companies; its common stock is traded in the Nasdaq National Market System under the symbol RGBK. Continued Next Page October 18, 2001 Page Two FINANCIAL HIGHLIGHTS (UNAUDITED) (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
Three Months Ended Nine Months Ended September 30 September 30 ---------------------- ---------------------- Earnings 2001 2000 Change 2001 2000 Change -------- -------- ------ -------- -------- ------ Operating income* $135,199 $127,859 6% $388,562 $381,355 2% Net income $135,199 $127,859 6% $370,750 $399,157 -7% Per share: Operating income* $ 0.59 $ 0.58 2% $ 1.74 $ 1.73 1% Operating income--diluted* $ 0.59 $ 0.58 2% $ 1.72 $ 1.72 0% Oper. income--diluted cash basis(1) $ 0.65 $ 0.61 7% $ 1.88 $ 1.81 4% Net income $ 0.59 $ 0.58 2% $ 1.66 $ 1.81 -8% Net income--diluted $ 0.59 $ 0.58 2% $ 1.64 $ 1.80 -9% Cash dividends declared $ 0.28 $ 0.27 4% $ 0.84 $ 0.81 4% September 30 ------------------------------ 2001 2000 Change ------------ ------------ ------ Financial Condition Total assets $ 45,684,013 $ 43,627,096 5% Loans, net of unearned income $ 30,910,843 $ 31,204,063 -1% Securities $ 8,256,608 $ 9,153,323 -10% Total earning assets $ 41,992,945 $ 40,878,771 3% Total deposits $ 30,573,191 $ 31,985,650 -4% Stockholders' equity $ 3,948,795 $ 3,359,908 18% Stockholders' equity per share $ 17.36 $ 15.16 15% Selected Ratios Return on average stockholders' equity based on operating income* 14.09% 16.04% Return on average stockholders' equity based on net income 13.44% 16.79% Return on average total assets based on operating income* 1.17% 1.19% Return on average total assets based on net income 1.11% 1.25% Stockholders' equity to total assets 8.64% 7.70% Allowance for loan losses as a percentage of loans, net of unearned income 1.25% 1.20% Loans, net of unearned income, to total deposits 101.10% 97.56%
*In 2001 excludes merger and other non-recurring charges of $23.3 million pretax ($17.8 million after tax or $.08 per diluted share). 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, 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 October 18, 2001 Page Three Statements made in this press release, other than those containing historical information, are forward-looking statements made pursuant to the safe-harbor provisions of the Private Securities Litigation Act of 1995. Such statements involve risks and uncertainties that may cause results to differ materially from those set forth in these statements. Regions cautions readers that results and events subject to forward-looking statements could differ materially due to the following factors: possible changes in economic and business conditions; the ability of Regions to integrate recent acquisitions and attract new customers; possible changes in monetary and fiscal policies, laws and regulations; the effects of easing of restrictions on participants in the financial services industry; the cost and other effects of legal and administrative cases; possible changes in the credit worthiness of customers and the possible impairment of collectibility of loans; the effects of changes in interest rates and other risks and factors identified in the company's filings with the Securities and Exchange Commission. FINANCIAL SUPPLEMENT TO THIRD QUARTER 2001 EARNINGS RELEASE SUMMARY Net income for the third quarter of 2001 totaled $135.2 million or $.59 per diluted share, compared to $127.9 million or $.58 per diluted share for the third quarter of 2000. For the first nine months of 2001, operating income was $388.6 million, or $1.72 per diluted share, compared to operating income through September of last year of $381.4 million or $1.72 per diluted share. Operating income in 2001 excludes second quarter, net after-tax expenses of $17.8 million ($23.3 million pre-tax) related to the Morgan Keegan transaction and Regions' branch rationalization project. Operating income in 2000 excludes a first quarter, non-recurring net after-tax gain of $17.8 million resulting from the sale of Regions' credit card portfolio and sales of securities. Net income for the nine months ended September 30, 2001 totaled $370.8 million or $1.64 per diluted share, compared to $399.2 million or $1.80 per diluted share for the nine months ended September 30, 2000. Cash basis net income per diluted share, which excludes amortization of excess purchase price, totaled $.65 for the third quarter 2001, an improved of 7% over the third quarter of last year. Pursuant to the FASB's recent decision discontinuing amortization of excess purchase price, beginning in 2002, Regions will not be required to continue amortizing excess purchase price. As illustrated by this quarter's cash basis net income per diluted share, this change is expected to result in $.06 per share quarterly benefit to earnings in 2002, based on the amount of excess purchase price on Regions' balance sheet at September 30, 2001. Comparisons of Regions third quarter 2001 financial performance to certain prior periods are significantly affected by the acquisition of Morgan Keegan, which occurred on March 30, 2001, and was accounted for as a purchase. The second quarter of 2001 was the first quarter that Morgan Keegan's operations were reflected in Regions income statement, average balance sheet and related yields and rates. Morgan Keegan's assets and liabilities were reflected in Regions actual balance sheet as of March 31, 2001, since the transaction closed at the end of the first quarter of 2001. The addition of Morgan Keegan better diversified Regions' revenue stream, resulting in non-interest income totaling 40% of revenues in the third quarter of 2001, up from 30% in the third quarter of last year. Morgan Keegan's net contribution to earnings in the third quarter totaled $10.6 million. Morgan Keegan's revenues increased 1% over the third quarter of 2000. Assets continued to grow at relatively modest rates during the third quarter primarily due to slower economic conditions and strategic initiatives to re-deploy capital into more profitable products and lines of business. This strategy has resulted in continued deleveraging in the balance sheet, particularly in securities and wholesale funding. Retail transaction deposit accounts showed significant growth during the third quarter, while time deposit balances declined due to less aggressive pricing of certificates of deposit. Retail transaction FINANCIAL SUPPLEMENT TO THIRD QUARTER 2001 EARNINGS RELEASE PAGE 2 deposit accounts, which exclude certificates of deposit, increased $344 million (11.5% annualized) in the third quarter, based on linked quarter average balances. BALANCE SHEET CHANGES Loan balances declined approximately 2% annualized in the third quarter, using linked-quarter average balances, excluding the effect of acquisitions. Declines in real estate mortgage loans were partially offset by growth in the commercial and industrial and consumer categories. Excluding wholesale loan product categories, loans grew 4% on a linked quarter, annualized basis. On a year-over-year comparison, loans declined 1%. Total loans balances in the third quarter are a reflection of slower growth in the economy and management initiatives to reduce capital allocated to lower margin loan products. Average earning assets decreased 4% on a linked-quarter annualized basis due to lower loan balances and because a portion of the maturities from the securities portfolio continue to be used to reduce short-term wholesale funding. Non-interest bearing, interest-bearing checking, money market and savings accounts reflected strong growth, up $490 million or 11% annualized based on linked-quarter average balances. Retail certificates of deposit reflected a decline because of less aggressive pricing of this product. Total core deposits, which exclude wholesale deposit funding sources, decreased at a 3% annualized rate during the third quarter. Wholesale deposit funding sources increased 13% annualized, based on linked-quarter average balances, as rates on these deposits products were more favorable compared to other funding sources. OPERATING PERFORMANCE Total revenues (defined as net interest income on a taxable equivalent basis plus non-interest income, excluding securities transactions) decreased $10.5 million or 7% annualized on a linked-quarter annualized basis compared to second quarter 2001. This decline was due to reduced fees in the brokerage and investment banking, trust and mortgage banking areas, partially offset by a higher level of net interest income. Taxable equivalent net interest income increased $5.2 million while non-interest income decreased $15.6 million. Net interest income (taxable equivalent) increased $5.2 million due to a 5 basis point (bps.) increase in the net interest margin, partially offset by a decline in earning assets. The yield on interest-earning assets declined 35 bps. this quarter, while the rate on interest-bearing liabilities declined 43 bps. The increase in the net interest margin is primarily due to the repricing of many of Regions' funding sources, particularly certificates of deposits, to lower rates. Current modeling indicates that Regions' net interest margin of 3.62% in the third quarter should show continued modest improvement (4-8 bps.) in the fourth quarter of 2001, assuming no further changes in market interest rates. Total third quarter non-interest income (excluding securities transactions) decreased $15.6 million from second quarter levels. Brokerage and investment banking income decreased $7.2 million as volume declined as a result fewer trading days and an overall weaker economy. Service charges on deposit accounts continued to reflect growth--up $251,000 over second quarter, a reflection of an increase in the number of deposit accounts and pricing initiatives. Trust fees were down $1.3 million compared to FINANCIAL SUPPLEMENT TO THIRD QUARTER 2001 EARNINGS RELEASE PAGE 3 second quarter 2001, as market fluctuations negatively impacted trust sales and related asset balances. Mortgage servicing and origination fees in the third quarter were down $2.5 million over the second quarter, primarily due to lower levels of production and less profitable product mix. Single-family mortgage production was $938 million in the third quarter, compared to $1.1 billion in second quarter 2001. Regions mortgage servicing portfolio totaled $19.9 billion at September 30, 2001, compared to $20.5 billion at June 30, 2001. Other non-interest income decreased $4.8 million from second quarter 2001 levels. This decrease was due to reduced gains associated with sale of mortgage servicing rights and other assets. Securities gains totaled $4.5 million in the third quarter 2001. These gains resulted primarily from the sale of $39.4 million in mortgage-related securities, which are viewed by management as a natural offset to impairment charges related to mortgage servicing intangibles. For the third consecutive quarter, Regions was able to reduce core operating expenses. In the third quarter of 2001, total non-interest expenses declined an additional $13.7 million (almost 14% annualized), compared to second quarter 2001's core operating expenses (excluding the $23.3 million in merger and non-recurring charges). Salaries and employee benefits declined $11.7 million due primarily to lower commissions and incentives. Other non-interest expense declined $3.2 million over core second quarter levels, due to lower communication costs, stationery and printing, travel, and computer services, partially offset by a $3.0 million impairment charge related to mortgage servicing rights. The following table illustrates the trends in operating expenses between the second and third quarters of 2001, excluding the impact of the second quarter merger and non-recurring costs. Non-Interest Expense Comparison
Second Third Quarter Excluding Quarter 2001 Merger Merger 2001 As & & Non- As Dollar Percent ($ amounts in thousands) Reported Non-recurring recurring Reported Change Change ---------------------------------------------------------------------------------------------------------------- Salaries and employee benefits $251,223 $ 8,607 $242,616 $230,922 $(11,694) (4.8)% Net occupancy and furniture & equipment expense 45,025 254 44,771 45,939 1,168 2.6 Other non-interest expenses 133,118 14,431 118,687 115,509 (3,178) (2.7) -------- -------- -------- -------- -------- ---- Total non-interest expenses $429,366 $ 23,292 $406,074 $392,370 $(13,704) (3.4)
The provision for loan losses in the third quarter of 2001 was $30.0 million or 0.39% annualized of average loans. Net loan charge-offs for the third quarter of 2001 were $27.9 million (0.36% of average loans annualized), compared to $26.2 million (0.34% of average loans annualized) in the second quarter of 2001 and $25.8 million (0.33% of average loans annualized) in the third quarter of last year. The slightly higher level of net loan charge-offs in the third quarter of 2001, compared to the second quarter of 2001, is due primarily to higher commercial loan losses. Total non-performing assets at September 30, 2001 were $306.2 million or 0.99% of loans and other real estate, a slight increase from the $302.8 million or 0.98% of loans and other real estate at June 30, 2001. This increase is primarily attributable to a $3.9 million increase (real estate category) in renegotiated FINANCIAL SUPPLEMENT TO THIRD QUARTER 2001 EARNINGS RELEASE PAGE 4 loans and a $1.9 million increase in other real estate offset by a $2.5 million decline in non-accrual loans. As of September 30, 2001, renegotiated loans and other real estate totaled $18.2 million and $31.2 million, respectively with non-accrual loans totaling $256.8 million at that date. Loans past due 90 days or more remained relatively flat - $41.9 million at September 30, 2001, compared to $41.7 million at June 30, 2001. Regions non-performing loan portfolio is comprised primarily of a number of small to medium size loans that are diversified geographically throughout its franchise. The 25 largest non-accrual loans range from $13.3 million to $1.4 million, with only one loan above $10 million. The majority of these loans are to borrowers in manufacturing related industries and real estate development. Of the total $256.8 million in non-accrual loans at September 30, 2001, approximately $73.2 million (28.5% of total non-accruing loans) are secured by single-family residences, which historically have had very low loss ratios. Management considers the current level of the allowance for loan losses adequate to absorb possible losses from loans in the portfolio. Management's determination of the adequacy of allowance for loan losses requires the use of judgments and estimations that may change in the future. Unfavorable changes in the factors used by management to determine the adequacy of the reserve or the availability of new information, could cause the allowance for loan losses to be increased or decreased in future periods. The effective tax rate decreased in the third quarter of 2001 to 29.4% from 30.2% in the second quarter of 2001, primarily due to the non-deductibility of a portion of the merger and non-recurring charges in the second quarter. MORGAN KEEGAN PERFORMANCE Morgan Keegan produced net income of $10.6 million for the quarter ended September 30, 2001, an increase of 2.5% over the same quarter last year. Compared to the second quarter of 2001, Morgan Keegan's third quarter net income declined $2.0 million, primarily due to reduced volume around the market's extended close following the events of September 11, combined with the challenging market environment most brokerage companies are currently experiencing. Strength from Morgan Keegan's fixed income capital markets division continues to offset weaker market conditions in private client and equity capital markets. Revenues from the fixed income capital markets division totaled $49.2 million in the current quarter, which represents 37% of Morgan Keegan's revenue. Total revenues for Morgan Keegan during the third quarter of 2001 totaled $132.6 million compared to $144.6 million in total revenues reported for the second quarter of 2001. On a linked-quarter basis, Morgan Keegan's overhead declined $4.9 million compared to the previous quarter due to improved efficiencies related to the combination with Regions Investment Company and lower compensation costs associated with lower production levels. The total number of financial advisors at Morgan Keegan remains at approximately 900 and approximately 14,000 new accounts were opened during the third quarter. Total customer assets were $29.4 billion at September 30, 2001, down from approximately $31.1 billion at June 30, 2001, due primarily to declines in general market conditions during the third quarter. FINANCIAL SUPPLEMENT TO THIRD QUARTER 2001 EARNINGS RELEASE PAGE 5 The following table shows the components of revenue contributed by Morgan Keegan for the three months ended September 30, 2001. For comparative purposes, information for the three months ended September 30, 2000, has been presented but is not included in Regions' consolidated results of operations for 2000 since the acquisition of Morgan Keegan was accounted for as a purchase. Morgan Keegan Summary Income Statement
Three months ended Three months ended % Three months ended % ($ amounts in thousands) September 30, 2001 June 30, 2001 Change September 30, 2000 Change ----------------------------------------------------------------------------------------------------------- Revenues: Commissions $ 31,828 $ 33,879 -6.1% $ 34,809 -8.6% Principal transaction 54,374 57,743 -5.8 38,180 42.4 Investment banking 12,382 17,880 -30.7 15,711 -21.2 Interest 18,992 22,066 -13.9 28,392 -33.1 Investment advisory 11,327 11,106 2.0 9,941 13.9 Other 3,684 1,898 94.1 4,366 -15.6 -------- -------- -------- Total revenues 132,587 144,572 -8.3 131,399 0.9 Expenses: Interest expense 11,995 15,764 -23.9 20,387 -41.2 Non-interest expense 103,777* 108,639* -4.5 94,656 9.6 -------- -------- -------- Total expenses 115,772 124,403 -6.9 115,043 0.6 -------- -------- -------- Income before income taxes 16,815 20,169 -16.6 16,356 2.8 Income taxes 6,200 7,570 -18.1 6,000 3.3 -------- -------- -------- Net income $ 10,615 $ 12,599 -15.7% $ 10,356 2.5% ======== ======== ========
* - Excludes $6.6 million in amortization of excess purchase price. Morgan Keegan Breakout of Revenue by Division Three months ended September 30, 2001
Fixed Income Equity Private Capital Capital Investment Interest ($ amounts in thousands) Client Markets Markets Advisory & Other ---------------------------------------------------------------------------------------- $ amount of revenue $ 41,122 $ 49,227 $ 9,466 $ 11,539 $ 21,233 % of gross revenue 31.0% 37.1% 7.1% 8.7% 16.1%
FINANCIAL SUPPLEMENT TO THIRD QUARTER 2001 EARNINGS RELEASE PAGE 6 ACQUISITION ACTIVITY Acquisitions completed since September 30, 2000 include the following (in thousands):
------------------------------------------------------------------------------------------------------------ Total Total Accounting Date Company Acquired Total Assets Loans Deposits Method Offices ------------------------------------------------------------------------------------------------------------ February 2001 Rebsamen Insurance, Inc., headquartered $ 32,082 N/A N/A Purchase 4 in Little Rock, Arkansas March 2001 Morgan Keegan, Inc., headquartered in $ 2,008,179 N/A N/A Purchase 54 Memphis, Tennessee ------------------------------------------------------------------------------------------------------------ Totals $ 2,040,261 N/A N/A 58 ------------------------------------------------------------------------------------------------------------
At September 30, 2001, Regions had two pending acquisitions. First Bancshares of Texas, which operates six offices in the Houston, Texas area, has approximately $147 million in assets. Park Meridian Financial Corporation, which operates 3 offices in the Charlotte, North Carolina area, has approximately $298 million in assets. Both of these transactions are expected to close in the fourth quarter of 2001. As a part of its ongoing business strategy, Regions continually evaluates business combination opportunities. STOCK BUYBACK PROGRAM During the third quarter of 2001, Regions repurchased approximately 330,000 additional shares of its common stock. Regions is authorized to buy up to 12 million share under its general buyback program. 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. FINANCIAL SUPPLEMENT TO THIRD QUARTER 2001 EARNINGS RELEASE PAGE 7 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 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. REGIONS FINANCIAL CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CONDITION (Dollar Amounts in Thousands)
--------------------------------------------------------------------------------- 9/30/99 12/31/99 3/31/00 6/30/00 9/30/00 --------------------------------------------------------------------------------- ASSETS Cash and due from banks $ 1,249,061 $ 1,393,418 $ 1,038,303 $ 1,140,766 $ 1,076,869 Interest-bearing deposits in other banks 48,228 9,653 51,875 2,202 2,449 Investment securities 3,560,934 4,054,279 3,602,979 3,626,457 3,607,520 Securities available for sale 5,938,836 6,858,765 5,528,877 5,619,226 5,545,803 Trading account assets 19,929 14,543 24,155 18,652 21,317 Mortgage loans held for sale 1,227,275 567,131 351,978 356,801 251,063 Federal funds sold and securities purchased under agreement to resell 90,462 66,078 61,863 72,108 246,556 Margin receivables -- -- -- -- -- Loans 27,587,448 28,221,240 29,164,121 30,479,546 31,299,305 Unearned income (75,976) (76,565) (82,834) (88,556) (95,242) ------------ ------------ ------------ ------------ ------------ Loans, net of unearned income 27,511,472 28,144,675 29,081,287 30,390,990 31,204,063 Allowance for loan losses (330,679) (338,375) (352,998) (363,475) (373,699) ------------ ------------ ------------ ------------ ------------ Net Loans 27,180,793 27,806,300 28,728,289 30,027,515 30,830,364 Premises and equipment 575,139 580,707 585,934 588,697 596,900 Interest receivable 293,467 306,707 300,445 326,815 333,294 Due from customers on acceptances 29,614 72,098 85,624 53,969 24,274 Other assets 1,015,426 984,716 1,058,081 1,068,306 1,090,687 ------------ ------------ ------------ ------------ ------------ $ 41,229,164 $ 42,714,395 $ 41,418,403 $ 42,901,514 $ 43,627,096 ============ ============ ============ ============ ============ LIABILITIES AND STOCKHOLDERS' EQUITY Deposits Non-interest-bearing $ 4,624,868 $ 4,419,693 $ 4,853,155 $ 4,573,881 $ 4,561,388 Interest-bearing 25,179,180 25,569,401 27,101,228 27,935,020 27,424,262 ------------ ------------ ------------ ------------ ------------ Total Deposits 29,804,048 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 4,158,091 5,614,613 3,136,794 2,630,399 1,862,753 Commercial paper 59,250 56,750 26,750 36,750 38,750 Other short-term borrowings 3,436,292 1,953,622 725,045 1,816,220 1,620,673 ------------ ------------ ------------ ------------ ------------ Total Short-term Borrowings 7,653,633 7,624,985 3,888,589 4,483,369 3,522,176 Long-term borrowings 371,148 1,750,861 2,032,411 2,370,148 4,392,399 ------------ ------------ ------------ ------------ ------------ Total Borrowed Funds 8,024,781 9,375,846 5,921,000 6,853,517 7,914,575 Bank acceptances outstanding 29,614 72,098 85,624 53,969 24,274 Other liabilities 350,784 212,245 316,662 297,692 342,689 ------------ ------------ ------------ ------------ ------------ Total Liabilities 38,209,227 39,649,283 38,277,669 39,714,079 40,267,188 Stockholders' equity: Common stock 140,107 137,897 138,857 139,028 139,050 Surplus 1,169,324 1,022,825 1,051,634 1,056,452 1,058,291 Undivided profits 1,969,670 2,044,209 2,130,595 2,196,513 2,264,476 Treasury Stock (172,056) 0 (38,696) (73,941) (18,988) Unearned restricted stock (5,236) (4,719) (4,216) (8,088) (7,673) Accumulated other comprehensive income (loss) (81,872) (135,100) (137,440) (122,529) (75,248) ------------ ------------ ------------ ------------ ------------ Total Stockholders' Equity 3,019,937 3,065,112 3,140,734 3,187,435 3,359,908 ------------ ------------ ------------ ------------ ------------ $ 41,229,164 $ 42,714,395 $ 41,418,403 $ 42,901,514 $ 43,627,096 ============ ============ ============ ============ ============ ------------------------------------------------------------------ 12/31/00 3/31/01 6/30/01 9/30/01 ------------------------------------------------------------------ ASSETS Cash and due from banks $ 1,210,872 $ 1,043,984 $ 1,053,195 $ 1,103,077 Interest-bearing deposits in other banks 3,246 1,095,419 906,987 982,838 Investment securities 3,539,202 44,864 32,745 32,757 Securities available for sale 5,454,969 8,484,278 7,680,342 8,223,851 Trading account assets 13,437 601,374 554,059 605,376 Mortgage loans held for sale 222,902 466,614 601,838 452,613 Federal funds sold and securities purchased under agreement to resell 95,550 241,382 345,598 189,043 Margin receivables -- 523,118 550,749 595,624 Loans 31,472,656 31,214,746 31,057,354 31,128,869 Unearned income (96,193) (91,506) (94,401) (218,026) ------------ ------------ ------------ ------------ Loans, net of unearned income 31,376,463 31,123,240 30,962,953 30,910,843 Allowance for loan losses (376,508) (381,570) (384,324) (386,471) ------------ ------------ ------------ ------------ Net Loans 30,999,955 30,741,670 30,578,629 30,524,372 Premises and equipment 598,632 624,841 621,792 623,103 Interest receivable 349,637 310,474 291,590 286,584 Due from customers on acceptances 107,912 107,472 69,679 44,269 Other assets 1,091,979 1,857,745 1,851,886 2,020,506 ------------ ------------ ------------ ------------ $ 43,688,293 $ 46,143,235 $ 45,139,089 $ 45,684,013 ============ ============ ============ ============ LIABILITIES AND STOCKHOLDERS' EQUITY Deposits Non-interest-bearing $ 4,512,883 $ 4,420,949 $ 4,650,209 $ 4,655,075 Interest-bearing 27,509,608 26,761,914 26,509,073 25,918,116 ------------ ------------ ------------ ------------ Total Deposits 32,022,491 31,182,863 31,159,282 30,573,191 Borrowed funds: Short-term borrowings: Federal funds purchased and securities sold under agreement to repurchase 1,996,812 2,548,869 1,939,036 2,817,611 Commercial paper 27,750 49,435 27,750 27,750 Other short-term borrowings 1,108,580 2,264,254 2,392,543 2,315,063 ------------ ------------ ------------ ------------ Total Short-term Borrowings 3,133,142 4,862,558 4,359,329 5,160,424 Long-term borrowings 4,478,027 5,220,594 4,936,855 4,810,542 ------------ ------------ ------------ ------------ Total Borrowed Funds 7,611,169 10,083,152 9,296,184 9,970,966 Bank acceptances outstanding 107,912 107,472 69,679 44,269 Other liabilities 488,777 968,289 787,584 1,146,792 ------------ ------------ ------------ ------------ Total Liabilities 40,230,349 42,341,776 41,312,729 41,735,218 Stockholders' equity: Common stock 139,105 142,825 143,209 143,275 Surplus 1,058,733 1,214,063 1,227,186 1,228,574 Undivided profits 2,333,285 2,397,684 2,446,779 2,518,202 Treasury Stock (67,135) 0 (43,398) (52,508) Unearned restricted stock (6,952) (6,098) (13,899) (12,511) Accumulated other comprehensive income (loss) 908 52,985 66,483 123,763 ------------ ------------ ------------ ------------ Total Stockholders' Equity 3,457,944 3,801,459 3,826,360 3,948,795 ------------ ------------ ------------ ------------ $ 43,688,293 $ 46,143,235 $ 45,139,089 $ 45,684,013 ============ ============ ============ ============
REGIONS FINANCIAL CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENT OF INCOME (Dollar Amounts in Thousands)
----------------------------------------------------------------------- 9/30/99 12/31/99 3/31/00 6/30/00 9/30/00 12/31/00 ----------------------------------------------------------------------- Interest Income: Interest and fees on loans $562,484 $586,632 $ 602,957 $633,868 $667,305 $ 684,013 Interest on securities: Taxable interest income 135,346 139,054 155,067 137,104 136,452 133,351 Tax-exempt interest income 9,756 10,169 10,161 10,325 10,680 10,560 -------- -------- --------- -------- -------- --------- Total Interest on Securities 145,102 149,223 165,228 147,429 147,132 143,911 Interest on mortgage loans held for sale 22,506 20,312 10,313 9,329 8,176 6,693 Interest on margin receivables -- -- -- -- -- -- Income on federal funds sold and securities purchased under agreement to resell 1,046 1,335 1,129 1,370 1,672 1,366 Interest on time deposits in other banks 372 282 193 184 221 498 Interest on trading account assets 476 339 409 407 188 252 -------- -------- --------- -------- -------- --------- Total Interest Income 731,986 758,123 780,229 792,587 824,694 836,733 Interest Expense: Interest on deposits 258,847 285,240 319,177 342,894 358,033 352,156 Interest on short-term borrowings 105,719 93,272 77,956 64,422 65,623 68,242 Interest on long-term borrowings 6,972 19,067 28,980 36,580 58,919 72,464 -------- -------- --------- -------- -------- --------- Total Interest Expense 371,538 397,579 426,113 443,896 482,575 492,862 -------- -------- --------- -------- -------- --------- Net Interest Income 360,448 360,544 354,116 348,691 342,119 343,871 Provision for loan losses 30,707 38,269 29,177 27,804 32,746 37,372 -------- -------- --------- -------- -------- --------- Net Interest Income After Provision for Loan Losses 329,741 322,275 324,939 320,887 309,373 306,499 Non-Interest Income: Brokerage and investment banking 9,607 9,366 11,172 9,547 11,173 9,411 Trust department income 14,530 13,543 14,051 14,059 14,597 14,968 Service charges on deposit accounts 50,453 52,874 53,408 57,542 59,465 61,255 Mortgage servicing and origination fees 22,675 20,906 21,956 21,539 20,016 19,221 Securities gains (losses) 3 119 (40,018) 67 28 (5) Other 36,004 42,155 106,223 34,896 41,468 45,171 -------- -------- --------- -------- -------- --------- Total Non-Interest Income 133,272 138,963 166,792 137,650 146,747 150,021 Non-Interest Expense: Salaries and employee benefits 140,577 135,620 147,253 146,244 144,868 150,492 Net occupancy expense 16,422 16,223 15,858 16,811 18,583 19,423 Furniture and equipment expense 18,370 20,791 16,997 17,320 18,880 21,016 Other 89,851 103,659 91,027 92,412 91,008 112,990 -------- -------- --------- -------- -------- --------- Total Non-Interest Expense 265,220 276,293 271,135 272,787 273,339 303,921 -------- -------- --------- -------- -------- --------- Income Before Income Taxes 197,793 184,945 220,596 185,750 182,781 152,599 Applicable income taxes 66,835 55,886 74,591 60,457 54,922 24,233 -------- -------- --------- -------- -------- --------- Net Income $130,958 $129,059 $ 146,005 $125,293 $127,859 $ 128,366 ======== ======== ========= ======== ======== ========= Operating Income $130,958 $129,059 $ 128,203(a) $125,293 $127,859 $ 128,366 ======== ======== ========= ======== ======== ========= ---------------------------------- 3/31/01 6/30/01 9/30/01 ---------------------------------- Interest Income: Interest and fees on loans $661,571 $ 634,945 $606,811 Interest on securities: Taxable interest income 127,082 110,720 104,008 Tax-exempt interest income 10,278 10,510 10,151 -------- --------- -------- Total Interest on Securities 137,360 121,230 114,159 Interest on mortgage loans held for sale 6,856 11,391 11,556 Interest on margin receivables -- 7,811 7,187 Income on federal funds sold and securities purchased under agreement to resell 522 7,461 6,250 Interest on time deposits in other banks 770 4,859 4,028 Interest on trading account assets 189 6,723 6,104 -------- --------- -------- Total Interest Income 807,268 794,420 756,095 Interest Expense: Interest on deposits 338,107 306,065 276,597 Interest on short-term borrowings 48,808 57,952 45,907 Interest on long-term borrowings 73,219 79,251 77,779 -------- --------- -------- Total Interest Expense 460,134 443,268 400,283 -------- --------- -------- Net Interest Income 347,134 351,152 355,812 Provision for loan losses 28,500 28,990 30,000 -------- --------- -------- Net Interest Income After Provision for Loan Losses 318,634 322,162 325,812 Non-Interest Income: Brokerage and investment banking 10,330 117,660 110,430 Trust department income 14,986 15,098 13,749 Service charges on deposit accounts 63,273 66,939 67,190 Mortgage servicing and origination fees 21,200 24,431 21,924 Securities gains (losses) 474 (7) 4,534 Other 38,507 44,905 40,107 -------- --------- -------- Total Non-Interest Income 148,770 269,026 257,934 Non-Interest Expense: Salaries and employee benefits 159,391 251,223 230,922 Net occupancy expense 18,508 22,468 22,950 Furniture and equipment expense 17,727 22,557 22,989 Other 99,095 133,118 115,509 -------- --------- -------- Total Non-Interest Expense 294,721 429,366 392,370 -------- --------- -------- Income Before Income Taxes 172,683 161,822 191,376 Applicable income taxes 49,931 49,023 56,177 -------- --------- -------- Net Income $122,752 $ 112,799 $135,199 ======== ========= ======== Operating Income $122,752 $ 130,611(b) $135,199 ======== ========= ========
REGIONS FINANCIAL CORPORATION AND SUBSIDIARIES (Dollar Amounts in Thousands)
-------------------------------------------------------------------- 9/30/99 12/31/99 3/31/00 6/30/00 9/30/00 12/31/00 -------------------------------------------------------------------- Average shares outstanding--during quarter 221,696 218,414 221,299 220,264 220,424 221,062 Average shares outstanding--during quarter, diluted 223,715 219,862 222,549 221,426 221,615 222,366 Actual shares outstanding--end of quarter 219,289 220,636 220,422 219,095 221,612 219,769 Operating income per share $ 0.59 $ 0.59 $ 0.58 $ 0.57 $ 0.58 $ 0.58 Operating income per share, diluted $ 0.59 $ 0.59 $ 0.58 $ 0.57 $ 0.58 $ 0.58 Operating income per share, diluted cash basis $ 0.61 $ 0.61 $ 0.60 $ 0.59 $ 0.61 $ 0.61 Net income per share $ 0.59 $ 0.59 $ 0.66 $ 0.57 $ 0.58 $ 0.58 Net income per share, diluted $ 0.59 $ 0.59 $ 0.66 $ 0.57 $ 0.58 $ 0.58 Dividends per share $ 0.25 $ 0.25 $ 0.27 $ 0.27 $ 0.27 $ 0.27 Taxable equivalent net interest income $366,236 $366,479 $359,914 $354,571 $347,956 $359,154 -------------------------------- 3/31/01 6/30/01 9/30/01 -------------------------------- Average shares outstanding--during quarter 214,872 227,603 227,657 Average shares outstanding--during quarter, diluted 216,648 230,422 230,383 Actual shares outstanding--end of quarter 228,520 227,634 227,410 Operating income per share $ 0.57 $ 0.57 $ 0.59 Operating income per share, diluted $ 0.57 $ 0.57 $ 0.59 Operating income per share, diluted cash basis $ 0.60 $ 0.63 $ 0.65 Net income per share $ 0.57 $ 0.50 $ 0.59 Net income per share, diluted $ 0.57 $ 0.49 $ 0.59 Dividends per share $ 0.28 $ 0.28 $ 0.28 Taxable equivalent net interest income $368,365 $373,008 $378,177
(a) 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). (b) Operating income excludes merger and other non-recurring charges of $23.3 million pretax ($17.8 million after tax or $.08 per diluted share). REGIONS FINANCIAL CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENT OF INCOME (Dollar Amounts in Thousands)
Nine Months Ended September 30 ------------------------------------- 2001 2000 ------------ ------------ Interest Income: Interest and fees on loans $ 1,903,327 $ 1,904,130 Interest on securities: Taxable interest income 341,810 428,623 Tax-exempt interest income 30,939 31,166 ------------ ------------ Total Interest on Securities 372,749 459,789 Interest on mortgage loans held for sale 29,803 27,818 Interest on margin receivables 14,998 0 Income on federal funds sold and securities purchased under agreement to resell 14,233 4,171 Interest on time deposits in other banks 9,657 598 Interest on trading account assets 13,016 1,004 ------------ ------------ Total Interest Income 2,357,783 2,397,510 Interest Expense: Interest on deposits 920,769 1,020,104 Interest on short-term borrowings 152,667 208,001 Interest on long-term borrowings 230,249 124,479 ------------ ------------ Total Interest Expense 1,303,685 1,352,584 ------------ ------------ Net Interest Income 1,054,098 1,044,926 Provision for loan losses 87,490 89,727 ------------ ------------ Net Interest Income After Provision for Loan Losses 966,608 955,199 Non-Interest Income: Brokerage and investment banking 238,420 31,892 Trust department income 43,833 42,707 Service charges on deposit accounts 197,402 170,415 Mortgage servicing and origination fees 67,555 63,511 Securities gains (losses) 5,001 (39,923) Other 123,519 182,587 ------------ ------------ Total Non-Interest Income 675,730 451,189 Non-Interest Expense: Salaries and employee benefits 641,536 438,365 Net occupancy expense 63,926 51,252 Furniture and equipment expense 63,273 53,197 Other 347,722 274,447 ------------ ------------ Total Non-Interest Expense 1,116,457 817,261 ------------ ------------ Income Before Income Taxes 525,881 589,127 Applicable income taxes 155,131 189,970 ------------ ------------ Net Income $ 370,750 $ 399,157 ============ ============ Operating Income $ 388,562(a) $ 381,355(b) ============ ============
REGIONS FINANCIAL CORPORATION AND SUBSIDIARIES (Dollar Amounts in Thousands)
Nine Months Ended September 30 ------------------------------ 2001 2000 ---------- ---------- Average shares outstanding--year-to-date 223,424 220,661 Average shares outstanding--year-to-date, diluted 225,868 221,862 Actual shares outstanding--end of quarter 227,410 221,612 Operating income per share $ 1.74 $ 1.73 Operating income per share, diluted $ 1.72 $ 1.72 Operating income per share, diluted cash basis $ 1.88 $ 1.81 Net income per share $ 1.66 $ 1.81 Net income per share, diluted $ 1.64 $ 1.80 Dividends per share $ 0.84 $ 0.81 Taxable equivalent net interest income $1,119,551 $1,062,441
(a) In 2001 excludes merger and other non-recurring charges of $23.3 million pretax ($17.8 million after tax or $.08 per diluted share). (b) 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). REGIONS FINANCIAL CORPORATION AND SUBSIDIARIES CONSOLIDATED AVERAGE DAILY BALANCES AND YIELD/RATE ANALYSIS (Dollar Amounts in Thousands, Yields on Taxable Equivalent Basis)
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 ------------ ------ ---------- ------ ----------- ------ ----------- ------ 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% Margin receivables -- --- --- -- 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% Quarter Ended Quarter Ended Quarter Ended 3/31/01 6/30/01 9/30/01 ---------------------- ----------------------- ---------------------- Average Yield/ Average Yield/ Average Yield/ Balance Rate Balance Rate Balance Rate ----------- ------ ----------- ------ ----------- ------- ASSETS Earning assets: Taxable securities $ 7,951,812 6.59% $ 7,200,791 6.28% $ 6,956,357 6.04% Non-taxable securities 800,267 7.67% 806,045 7.76% 783,282 8.64% Federal funds sold 36,995 5.72% 675,822 4.43% 747,409 3.32% Margin receivables -- 554,202 5.65% 538,694 5.29% Loans, net of unearned income 31,274,169 8.76% 30,965,337 8.41% 30,839,867 7.99% Int. bear. deposits in oth. bnks 82,118 3.80% 504,709 3.86% 459,378 3.48% Mortgages held for sale 316,661 8.78% 597,253 7.65% 578,576 7.92% Trading account assets 15,598 5.63% 557,452 5.15% 511,547 5.01% ----------- ----------- ----------- Total earning assets 40,477,620 8.30% 41,861,611 7.82% 41,415,110 7.47% Allowance for loan losses (381,552) (385,317) (386,641) Cash and due from banks 993,091 911,506 901,067 Other non-earning assets 2,273,684 2,876,167 2,952,938 ----------- ----------- ----------- $43,362,843 $45,263,967 $44,882,474 =========== =========== =========== LIABILITIES AND STOCKHOLDERS' EQUITY Interest-bearing liabilities: Savings accounts $1,230,782 1.45% $ 1,243,006 1.35% $ 1,261,356 1.09% Interest bearing transaction accounts 430,375 3.24% 517,484 1.94% 578,406 1.79% Money market accounts 11,483,296 4.16% 12,132,752 3.42% 12,441,249 2.84% Certificates of deposit of $100,000 or more 4,257,824 6.33% 4,419,525 6.02% 4,086,712 5.65% Other interest-bearing accounts 9,531,435 6.21% 8,004,372 6.49% 7,729,754 6.38% Federal funds purchased 2,153,236 5.76% 2,203,347 4.69% 1,986,078 3.64% Commercial paper 28,232 6.52% 27,273 6.74% 27,750 6.55% Other short-term borrowings 1,108,518 6.49% 2,436,632 5.22% 2,362,939 4.57% Long-term borrowings 4,540,679 6.54% 4,974,303 6.39% 4,867,355 6.34% ------------- ----------- ----------- Total int-bearing liabilities 34,764,377 5.37% 35,958,694 4.94% 35,341,599 4.51% Non-interest bearing deposits 4,422,644 4,579,814 4,682,012 Other liabilities 817,322 938,886 947,713 Stockholders' equity 3,358,500 3,786,573 3,911,150 ------------- ----------- ----------- $43,362,843 $45,263,967 $44,882,474 ============= =========== =========== Net yield on interest earning assets 3.69% 3.57% 3.62%
REGIONS FINANCIAL CORPORATION AND SUBSIDIARIES QUARTERLY ALLOWANCE FOR LOAN LOSSES AND NON-PERFORMING ASSETS (Dollar Amounts in Thousands)
--------------------------------------------------------------------------------- 3/31/00 6/30/00 9/30/00 12/31/00 --------------------------------------------------------------------------------- Balance at beginning of period $338,375 $352,998 $363,475 $373,699 Net loans charged off (recovered): Commercial 2,345 3,308 7,480 22,845 Real estate 559 3,483 4,881 2,000 Installment 13,509 10,536 13,444 9,718 -------- -------- -------- -------- Total 16,413 17,327 25,805 34,563 Allowance of acquired banks 1,859 0 3,283 0 Provision charged to expense 29,177 27,804 32,746 37,372 -------- -------- -------- -------- Balance at end of period $352,998 $363,475 $373,699 $376,508 ======== ======== ======== ======== Non-performing Assets: Loans on a non-accruing basis $189,260 $184,934 $200,419 $197,974 Renegotiated loans 12,969 12,616 13,403 12,372 Foreclosed property ("Other real estate") 13,474 16,837 23,270 28,442 -------- -------- -------- -------- Total NPA excluding past due loans $215,703 $214,387 $237,092 $238,788 -------- -------- -------- -------- Loans past due 90 days or more $ 64,117 $ 67,388 $ 36,543 $ 35,903 -------- -------- -------- -------- Total NPA including past due loans $279,820 $281,775 $273,635 $274,691 ======== ======== ======== ======== --------------------------------------------------------------- 3/31/01 6/30/01 9/30/01 -------------------------------------------------------------- Balance at beginning of period $376,508 $381,570 $384,324 Net loans charged off (recovered): Commercial 14,390 16,048 17,361 Real estate 804 2,035 1,798 Installment 8,244 8,153 8,694 -------- -------- -------- Total 23,438 26,236 27,853 Allowance of acquired banks 0 0 0 Provision charged to expense 28,500 28,990 30,000 -------- -------- -------- Balance at end of period $381,570 $384,324 $386,471 ======== ======== ======== Non-performing Assets: Loans on a non-accruing basis $227,552 $259,291 $256,810 Renegotiated loans 11,024 14,223 18,150 Foreclosed property ("Other real estate") 29,012 29,257 31,198 -------- -------- -------- Total NPA excluding past due loans $267,588 $302,771 $306,158 -------- -------- -------- Loans past due 90 days or more $ 40,923 $ 41,736 $ 41,895 -------- -------- -------- Total NPA including past due loans $308,511 $344,507 $348,053 ======== ======== ========
REGIONS FINANCIAL CORPORATION AND SUBSIDIARIES CONSOLIDATED AVERAGE DAILY BALANCES AND YIELD/RATE ANALYSIS (Dollar Amounts in Thousands, Yields on Taxable Equivalent Basis)
Nine Months Ended September 30 -------------------------------------------------------------- 2001 2000 -------------------------- -------------------------- Average Yield/ Average Yield/ Balance Rate Balance Rate ------------ ------ ------------ ------ ASSETS Earning assets: Taxable securities $ 7,366,007 6.32% $ 8,786,910 6.51% Non-taxable securities 796,469 8.02% 798,585 7.68% Federal funds sold 489,344 3.89% 89,819 6.20% Margin receivables 366,272 5.47% -- Loans, net of unearned income 31,024,867 8.39% 29,731,685 8.57% Int. bear. deposits in oth. bnks 350,117 3.69% 12,016 6.65% Mortgages held for sale 498,456 7.99% 416,540 8.92% Trading account assets 363,349 5.09% 21,548 6.72% ------------ ------------ Total earning assets 41,254,881 7.86% 39,857,103 8.09% Allowance for loan losses (384,522) (355,523) Cash and due from banks 934,884 1,123,174 Other non-earning assets 2,703,418 2,056,340 ------------ ------------ $ 44,508,661 $ 42,681,094 ============ ============ LIABILITIES AND STOCKHOLDERS' EQUITY Interest-bearing liabilities: Savings accounts $ 1,245,160 1.29% $ 1,351,974 1.51% Interest bearing transaction accounts 509,297 2.25% 408,607 4.25% Money market accounts 12,022,608 3.45% 10,135,782 4.13% Certificates of deposit of $100,000 or more 4,254,060 6.00% 4,589,838 5.97% Other int-bearing accounts 8,415,254 6.35% 11,032,927 5.73% Federal funds purchased 2,113,608 4.72% 3,170,771 6.15% Commercial paper 27,750 6.60% 42,774 6.30% Other short-term borrowings 1,973,958 5.20% 1,279,463 6.25% Long-term borrowings 4,795,309 6.42% 2,621,537 6.34% ------------ ------------ Total int-bearing liabilities 35,357,004 4.93% 34,633,673 5.22% Non-interest bearing deposits 4,562,440 4,552,425 Other liabilities 901,785 320,058 Stockholders' equity 3,687,432 3,174,938 ------------ ------------ $ 44,508,661 $ 42,681,094 ============ ============ Net yield on int. earning assets 3.63% 3.56% Nine Months Ended September 30 -------------------------- Allowance For Loan Losses: 2001 2000 -------- -------- Balance at beginning of year $376,508 $338,375 Net loans charged off: Commercial 47,799 13,133 Real estate 4,637 8,923 Installment 25,091 37,489 -------- -------- Total 77,527 59,545 Allowance of acquired banks 0 5,142 Provision charged to expense 87,490 89,727 -------- -------- Balance at end of period $386,471 $373,699 ======== ========
REGIONS FINANCIAL CORPORATION AND SUBSIDIARIES SELECTED RATIOS
-------------------------------------------------------------------- 9/30/99 12/31/99 3/31/00 6/30/00 9/30/00 12/31/00 -------------------------------------------------------------------- Return on average assets* 1.28% 1.23% 1.21% 1.19% 1.18% 1.17% Return on average equity* 16.88% 17.05% 16.60% 16.01% 15.56% 14.97% Stockholders' equity per share $ 13.77 $ 13.89 $ 14.25 $ 14.55 $ 15.16 $ 15.73 Stockholders' equity to total assets 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 1.20% 1.20% 1.21% 1.20% 1.20% 1.20% Loans, net of unearned income, to total deposits 92.31% 93.85% 91.01% 93.49% 97.56% 97.98% Net charge-offs as a percentage of average loans** 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 0.67% 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 0.96% 0.93% 0.96% 0.93% 0.88% 0.87% ------------------------------- 3/31/01 6/30/01 9/30/01 ------------------------------- Return on average assets* 1.15% 1.16% 1.20% Return on average equity* 14.82% 13.84% 13.71% Stockholders' equity per share $ 16.64 $ 16.81 $ 17.36 Stockholders' equity to total assets 8.24% 8.48% 8.64% Allowance for loan losses as a percentage of loans, net of unearned income 1.23% 1.24% 1.25% Loans, net of unearned income, to total deposits 99.81% 99.37% 101.10% Net charge-offs as a percentage of average loans** 0.30% 0.34% 0.36% Total non-performing assets (excluding loans 90 days past due) as a percentage of loans and other real estate 0.86% 0.98% 0.99% Total non-performing assets (including loans 90 days past due) as a percentage of loans and other real estate 0.99% 1.11% 1.12%
* Annualized based on operating income. ** Annualized