regions SUPP3Q/07.v6

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Slide 1: FINANCIAL SUPPLEMENT TO THIRD QUARTER 2007 EARNINGS RELEASE Summary Quarterly earnings of $0.56 per diluted share (GAAP); excluding $0.08 in merger charges, earnings were $0.64 (non-GAAP - see page 17 for additional details) • Primary drivers of earnings include a solid quarter for Morgan Keegan, controlled expenses and accelerated merger cost saves Conservative risk culture buffers against industry credit issues • Subprime loan exposure approximately 1/10th of 1 percent of total loans • No negative amortizing mortgages • No option ARMs • Insignificant subprime-backed or high risk investment securities Merger integration goals ahead of schedule; branch conversions to be completed by year-end • Completed two key conversion events during the quarter • Converted all Alabama and Florida branches (633) in July • Converted the Regions Morgan Keegan trust system in September • Due to the success of the first branch conversion, remaining branch conversion schedule accelerated and will be completed by year-end 2007 Morgan Keegan reports continued solid results • Net income of $45.2 million on $318.4 million in revenues in 3Q07 • Strong commission income on high trading volumes • Equity investment banking M&A-related deal flow was good Banking environment remains challenging • Average loans up 1% linked-quarter, annualized • Average low-cost deposits down 5%, linked-quarter, annualized • Net interest margin of 3.74% for 3Q07, down 8 bps linked-quarter, due mostly to funding of a tax deposit, which lowered tax expense, and a decline in low-cost deposits Credit costs, while higher, remain at reasonable levels • Net charge-offs of $63.1 million, or an annualized 0.27 percent of average loans, an increase of 4 bps linked-quarter • Non-performing assets remained steady at $588.3 million or 0.62% of loans • Adherence to strong underwriting standards evident in loss experience • Net charge-offs expected to rise gradually in coming quarters as credit cycle turns • Allowance for credit losses as a percentage of loans remained flat linked-quarter at 1.19% Cost saves continue to exceed expectations • Realized $102 million in merger cost saves during 3Q07, bringing the year-to-date total to $237 million • Realization of cost saves accelerated into 2007. New 2007 target is $300 million; full run-rate of $500 million by 2Q08 remains unchanged. • Pre-tax merger-related charges of $91.8 million in 3Q07 Share repurchases continue; capital position remains strong • Regions repurchased 6.5 million of its common shares in 3Q07, leaving 27.6 million shares under repurchase authorizations at September 30, 2007 • Tangible equity to tangible assets of 6.02 percent at September 30, 2007, compared to 6.09 as of June 30, 2007 Slide 2: FINANCIAL SUPPLEMENT TO THIRD QUARTER 2007 EARNINGS RELEASE PAGE 2 Regions Financial Corporation and Subsidiaries Consolidated Balance Sheets (1) (Unaudited) ($ amounts in thousands) 9/30/07 Assets: Cash and due from banks Interest-bearing deposits in other banks Federal funds sold and securities purchased under agreements to resell Trading account assets Securities available for sale Securities held to maturity Loans held for sale Loans held for sale - divestitures Margin receivables Loans, net of unearned income Allowance for loan losses Net loans Premises and equipment, net Interest receivable Excess purchase price Mortgage servicing rights (MSRs) Other identifiable intangible assets Other assets Total Assets Liabilities and Stockholders' Equity: Deposits: Non-interest-bearing Non-interest-bearing - divestitures Interest-bearing Interest-bearing - divestitures Total deposits Borrowed funds: Short-term borrowings: Federal funds purchased and securities sold under agreements to repurchase Other short-term borrowings Total short-term borrowings Long-term borrowings Total borrowed funds Other liabilities Total Liabilities Stockholders' equity: Common stock Additional paid in capital Undivided profits Treasury stock Accumulated other comprehensive loss Total Stockholders' Equity Total Liabilities & SE 6/30/07 3/31/07 12/31/06 9/30/06 $2,902,340 29,895 $2,796,196 73,963 $2,991,232 37,365 $3,550,742 270,601 $2,055,137 38,981 706,378 1,355,007 16,957,077 49,559 792,142 525,953 94,373,632 (1,070,716) 93,302,916 2,473,339 664,974 11,453,078 377,201 804,328 5,841,002 $138,235,189 1,158,771 1,606,130 17,414,407 44,452 1,596,425 590,811 94,014,488 (1,061,873) 92,952,615 2,422,256 626,514 11,243,287 400,056 809,827 3,886,762 $137,622,472 1,154,994 1,490,374 18,361,050 46,008 1,175,650 555,580 94,168,260 (1,056,260) 93,112,000 2,372,800 627,918 11,191,675 367,222 914,410 3,669,790 $138,068,068 896,075 1,442,994 18,514,332 47,728 3,308,064 1,612,237 570,063 94,550,602 (1,055,953) 93,494,649 2,398,494 666,410 11,175,647 374,871 957,834 4,088,280 $143,369,021 913,076 1,438,427 12,425,555 30,033 1,824,687 581,558 59,477,905 (778,465) 58,699,440 1,097,616 456,978 4,967,799 407,740 287,437 1,755,627 $86,980,091 $18,834,856 74,605,074 93,439,930 $19,136,419 75,919,972 95,056,391 $19,942,928 75,393,720 95,336,648 $20,175,482 533,295 78,281,120 2,238,072 101,227,969 $12,570,051 49,599,494 62,169,545 8,063,739 1,727,346 9,791,085 10,817,491 20,608,576 4,340,334 118,388,840 8,207,250 1,882,114 10,089,364 9,287,926 19,377,290 3,492,404 117,926,085 8,159,929 2,356,205 10,516,134 8,593,117 19,109,251 3,308,003 117,753,902 7,676,254 1,990,817 9,667,071 8,642,649 18,309,720 3,129,878 122,667,567 4,943,568 1,368,480 6,312,048 5,490,404 11,802,452 1,965,191 75,937,188 7,346 16,527,540 4,632,033 (1,270,922) (49,648) 19,846,349 $138,235,189 7,344 16,500,425 4,489,078 (1,063,779) (236,681) 19,696,387 $137,622,472 7,320 16,447,358 4,289,354 (368,837) (61,029) 20,314,166 $138,068,068 7,303 16,339,726 4,493,245 (7,548) (131,272) 20,701,454 $143,369,021 4,813 7,466,180 4,547,845 (888,282) (87,653) 11,042,903 $86,980,091 (1) Regions Financial Corporation and AmSouth Bancorporation merged effective November 4, 2006. The merger was accounted for as a purchase of AmSouth by Regions. As a result, periods ending prior to November 4, 2006, reflect legacy Regions data on a stand-alone basis. Slide 3: FINANCIAL SUPPLEMENT TO THIRD QUARTER 2007 EARNINGS RELEASE PAGE 3 Regions Financial Corporation and Subsidiaries Consolidated Statements of Income (1) (Unaudited) ($ amounts in thousands, except per share data) 9/30/07 Interest income on: Loans, including fees Securities: Taxable Tax-exempt Total securities Loans held for sale Federal funds sold and securities purchased under agreements to resell Trading account assets Margin receivables Time deposits in other banks Total interest income Interest expense on: Deposits Short-term borrowings Long-term borrowings Total interest expense Net interest income Provision for loan losses Net interest income after provision for loan losses Non-interest income: Brokerage and investment banking Service charges on deposit accounts Trust department income Mortgage income Securities gains (losses), net Other Total non-interest income Non-interest expense: Salaries and employee benefits Net occupancy expense Furniture and equipment expense Impairment (recapture) of MSR's Other Total non-interest expense (2) Income before income taxes from continuing operations Income taxes Income from continuing operations (Loss) income from discontinued operations before income taxes Income tax (benefit) expense from discontinued operations (Loss) income from discontinued operations, net of tax Net income Weighted-average shares outstanding-during quarter: Basic (3) Diluted (3) Actual shares outstanding-end of quarter (3) Earnings per share from continuing operations (4): Basic Diluted Earnings per share from discontinued operations (4): Basic Diluted Earnings per share (4): Basic Diluted Cash dividends declared per share (5) Taxable equivalent net interest income from continuing operations $1,742,172 210,932 10,020 220,952 12,302 6/30/07 $1,734,278 218,123 10,831 228,954 21,363 Quarter Ended 3/31/07 $1,773,404 224,319 11,048 235,367 48,342 12/31/06 $1,587,494 200,917 9,807 210,724 35,935 9/30/06 $1,129,013 143,118 7,852 150,970 11,890 18,154 10,271 8,754 515 2,013,120 673,585 115,092 144,662 933,339 1,079,781 90,000 989,781 209,413 288,296 62,449 29,806 23,994 115,186 729,144 581,425 120,753 74,127 20,000 349,089 1,145,394 573,531 179,291 394,240 (122) (46) (76) $394,164 17,162 15,785 9,289 649 2,027,480 677,239 116,637 128,269 922,145 1,105,335 60,000 1,045,335 207,372 297,638 64,590 40,830 (32,806) 119,177 696,801 602,646 93,175 74,048 (38,000) 325,866 1,057,735 684,401 230,669 453,732 (682) (259) (423) $453,309 16,373 15,620 9,610 1,179 2,099,895 687,459 120,661 122,737 930,857 1,169,038 47,000 1,122,038 186,195 284,097 63,482 37,021 304 125,813 696,912 608,939 93,531 72,809 1,000 332,687 1,108,966 709,984 235,908 474,076 (215,818) (74,723) (141,095) $332,981 15,877 22,608 9,576 1,376 1,883,590 597,255 102,984 123,199 823,438 1,060,152 59,825 1,000,327 199,697 247,591 51,510 44,134 (20) 94,657 637,569 606,165 90,968 59,306 27,000 307,761 1,091,200 546,696 174,701 371,995 (17,718) (7,274) (10,444) $361,551 13,505 12,519 9,767 637 1,328,301 411,178 66,315 84,429 561,922 766,379 24,914 741,465 144,093 166,555 36,366 43,637 8,104 62,628 461,383 398,848 52,675 32,922 8,000 195,906 688,351 514,497 156,575 357,922 (10,442) (4,177) (6,265) $351,657 700,589 704,485 697,332 $0.56 $0.56 $0.00 $0.00 $0.56 $0.56 $0.36 $1,086,575 709,322 715,564 704,398 $0.64 $0.63 $0.00 $0.00 $0.64 $0.63 $0.36 $1,111,969 726,921 734,534 721,825 $0.65 $0.65 $(0.19) $(0.19) $0.46 $0.45 $0.36 $1,175,546 638,830 646,372 730,076 $0.58 $0.58 $(0.02) $(0.02) $0.57 $0.56 $0.35 $1,094,092 454,441 458,903 455,067 $0.79 $0.78 $(0.01) $(0.01) $0.77 $0.77 $0.35 $794,940 See notes to the Consolidated Statements of Income on page 5. Slide 4: FINANCIAL SUPPLEMENT TO THIRD QUARTER 2007 EARNINGS RELEASE PAGE 4 Regions Financial Corporation and Subsidiaries Consolidated Statements of Income (1) (Unaudited) ($ amounts in thousands, except per share data) Nine Months Ended September 30 2007 Interest income on: Loans, including fees Securities: Taxable Tax-exempt Total securities Loans held for sale Federal funds sold and securities purchased under agreements to resell Trading account assets Margin receivables Time deposits in other banks Total interest income Interest expense on: Deposits Short-term borrowings Long-term borrowings Total interest expense Net interest income Provision for loan losses Net interest income after provision for loan losses Non-interest income: Brokerage and investment banking Service charges on deposit accounts Trust department income Mortgage income Securities gains (losses), net Other Total non-interest income Non-interest expense: Salaries and employee benefits Net occupancy expense Furniture and equipment expense Impairment (recapture) of MSR's Other Total non-interest expense (2) Income before income taxes from continuing operations Income taxes Income from continuing operations (Loss) income from discontinued operations before income taxes Income tax (benefit) expense from discontinued operations (Loss) income from discontinued operations, net of tax Net income Weighted-average shares outstanding-- year-to-date: Basic (3) Diluted (3) Actual shares outstanding-- end of quarter (3) Earnings per share from continuing operations (4): Basic Diluted Earnings per share from discontinued operations (4): Basic Diluted Earnings per share (4): Basic Diluted Cash dividends declared per share $ $5,249,854 653,374 31,899 685,273 82,007 51,689 41,676 27,653 2,343 6,140,495 2,038,283 352,390 395,668 2,786,341 3,354,154 197,000 3,157,154 602,980 870,031 190,521 107,657 (8,508) 360,176 2,122,857 1,793,010 307,459 220,984 (17,000) 1,007,642 3,312,095 1,967,916 645,868 1,322,048 (216,622) (75,028) (141,594) 1,180,454 712,181 718,084 697,332 $1.86 $1.84 $(0.20) $(0.20) $1.66 $1.64 $1.08 $ 2006 $3,205,412 405,748 23,872 429,620 33,508 35,568 31,930 27,965 1,524 3,765,527 1,082,912 172,513 261,953 1,517,378 2,248,149 82,548 2,165,601 469,751 474,407 106,651 134,554 8,143 198,645 1,392,151 1,253,686 163,659 98,592 (11,000) 607,889 2,112,826 1,444,926 444,400 1,000,526 (14,888) (5,956) (8,932) 991,594 455,463 460,018 455,067 $2.20 $2.17 $(0.02) $(0.02) $2.18 $2.16 $1.05 $2,329,398 Taxable equivalent net interest income from continuing operations $3,386,057 See notes to the Consolidated Statements of Income on page 5. Slide 5: FINANCIAL SUPPLEMENT TO THIRD QUARTER 2007 EARNINGS RELEASE PAGE 5 (1) Regions Financial Corporation and AmSouth Bancorporation merged effective November 4, 2006. The merger was accounted for as a purchase of AmSouth by Regions. As a result, periods ending prior to November 4, 2006, reflect legacy Regions data on a stand-alone basis. (2) Merger-related charges total $91.8 million in 3Q07, $59.9 million in 2Q07, $49.0 million in 1Q07, and $87.6 million in 4Q06. For the year-to-date 2007, $200.7 million are included in non-interest expense. See pages 12 and 17 for additional detail. (3) On November 4, 2006, 277 million shares were issued in the AmSouth transaction; as a result, the weighted-average shares outstanding calculation for the 4Q06 includes approximately one month of pre-AmSouth merger share count and two months of post-AmSouth merger share count. (4) Certain per share amounts may not appear to reconcile due to rounding. (5) In 4Q06, in addition to the dividend paid, the Board of Directors declared a $0.36 per share dividend payable January 2, 2007, representing an acceleration of Regions' previously existing dividend schedule beginning with the 2007 dividends paid. Slide 6: FINANCIAL SUPPLEMENT TO THIRD QUARTER 2007 EARNINGS RELEASE PAGE 6 Regions Financial Corporation and Subsidiaries Consolidated Average Daily Balances and Yield/Rate Analysis Including Discontinued Operations (1) (2) ($ amounts in thousands; yields on taxable-equivalent basis) Quarter Ended 9/30/07 Average Balance Assets Interest-earning assets: Interest-bearing deposits in other banks Federal funds sold and securities purchased under agreement to resell Trading account assets Securities: Taxable Tax-exempt Loans held for sale Loans held for sale-divestitures Margin receivables Loans, net of unearned income Total interest-earning assets Allowance for loan losses Cash and due from banks Other assets 94,309,811 115,286,112 (1,062,432) 2,751,656 19,901,093 $136,876,429 Liabilities and Stockholders' Equity Interest-bearing liabilities: Savings accounts Interest-bearing transaction accounts Money market accounts Certificates of deposit of $100,000 or more Other interest-bearing deposit accounts Interest-bearing deposits divestitures Total interest-bearing deposits Federal funds purchased and securities sold under agreement to repurchase Other short-term borrowings Long-term borrowings Total interest-bearing liabilities Non-interest-bearing deposits Other liabilities Stockholders' equity 94,894,055 18,850,607 3,338,644 19,793,123 $136,876,429 Net interest income/margin FTE basis $1,086,575 3.74% $933,339 3.90% 95,077,234 19,233,146 3,187,936 20,040,276 $137,538,592 $1,111,969 3.82% $922,145 3.89% 98,716,244 19,694,403 3,100,313 20,452,731 $141,963,691 $1,187,512 3.99% $930,857 3.82% 86,747,611 17,535,467 3,108,830 17,185,928 $124,577,836 $1,104,421 4.10% $823,439 3.77% 60,767,879 12,482,899 2,847,404 10,877,640 $86,975,822 $806,260 4.21% $561,921 3.67% 8,121,636 1,598,989 10,085,073 98,522 16,570 144,662 4.81% 4.11% 5.69% 7,461,579 2,251,296 9,014,112 90,460 26,177 128,269 4.86% 4.66% 5.71% 8,174,934 2,213,107 8,606,381 96,303 24,358 122,737 4.78% 4.46% 5.78% 7,333,018 1,539,329 8,159,959 87,816 15,169 123,199 4.75% 3.91% 5.99% 4,806,594 927,313 5,810,710 56,898 9,416 84,428 4.70% 4.03% 5.76% 75,088,357 673,585 3.56% 76,350,247 677,239 3.56% 1,517,504 79,721,822 12,091 687,459 3.23% 3.50% 1,450,645 69,715,305 11,974 597,255 3.27% 3.40% 49,223,262 411,179 3.31% 21,337,142 243,511 4.53% 20,686,433 231,508 4.49% 22,356,006 242,312 4.40% 19,572,951 208,500 4.23% 15,875,539 169,610 4.24% 10,872,861 133,290 4.86% 12,443,318 152,413 4.91% 13,271,108 155,935 4.77% 12,045,318 142,757 4.70% 8,297,133 97,633 4.67% 15,268,807 23,853,236 79,618 214,371 2.07% 3.57% 15,816,958 23,542,158 84,334 206,100 2.14% 3.51% 16,113,504 22,558,401 83,343 190,814 2.10% 3.43% 13,338,852 19,734,554 62,898 168,029 1.87% 3.38% 9,187,008 12,875,034 35,127 105,756 1.52% 3.26% $3,756,311 $2,795 0.30% $3,861,380 $2,884 0.30% $3,905,299 $2,964 0.31% $3,572,985 $3,097 0.34% $2,988,548 $3,053 0.41% 1,743,636 $2,019,914 7.34% 6.95% 94,051,511 116,610,596 (1,056,832) 2,803,967 19,180,861 $137,538,592 1,735,135 $2,034,114 7.40% 7.00% 94,338,760 120,600,406 (1,061,769) 3,010,446 19,414,608 $141,963,691 1,745,475 $2,118,369 7.50% 7.12% 83,058,620 106,887,659 (985,310) 2,605,261 16,070,226 $124,577,836 1,591,768 $1,927,860 7.60% 7.16% 59,111,355 76,047,903 (780,715) 1,959,441 9,749,193 $86,975,822 1,130,704 $1,368,181 7.59% 7.14% 16,545,332 722,663 779,918 521,497 210,932 15,235 12,303 8,754 5.06% 8.36% 6.26% 6.66% 17,245,705 737,522 1,323,479 532,037 218,123 16,430 21,363 9,289 5.07% 8.94% 6.47% 7.00% 17,748,027 763,297 3,427,285 1,150,548 554,896 224,319 16,786 67,196 21,520 9,610 5.13% 8.92% 7.95% 7.59% 7.02% 16,263,163 648,747 2,689,490 1,042,964 540,805 201,354 14,540 50,113 20,087 9,576 4.91% 8.89% 7.39% 7.64% 7.03% 11,612,748 397,160 2,263,608 143,483 12,003 45,416 4.90% 11.99% 7.96% 1,141,666 1,213,485 18,154 10,385 6.31% 3.40% 1,124,636 1,555,939 17,162 15,963 6.12% 4.12% 1,061,976 1,475,097 16,373 15,911 6.25% 4.37% 1,098,535 1,419,868 15,878 23,168 5.73% 6.47% 937,005 1,130,260 13,504 12,667 5.72% 4.45% $51,740 $515 3.95% $39,767 $649 6.55% $80,520 $1,179 5.94% $125,467 $1,376 4.35% $41,821 $637 6.04% Income/ Expense Yield/ Rate Average Balance 6/30/07 Income/ Expense Yield/ Rate Average Balance 3/31/07 Income/ Expense Yield/ Rate Average Balance 12/31/06 Income/ Expense Yield/ Rate Average Balance 9/30/06 Income/ Expense Yield/ Rate 553,946 9,767 7.00% (1) Regions Financial Corporation and AmSouth Bancorporation merged effective November 4, 2006. The merger was accounted for as a . purchase of AmSouth by Regions. As a result, periods ending prior to November 4, 2006, reflect legacy Regions data on a stand-alone basis (2) Certain amounts in prior periods have been reclassified to reflect current period presentation. Slide 7: FINANCIAL SUPPLEMENT TO THIRD QUARTER 2007 EARNINGS RELEASE PAGE 7 Regions Financial Corporation and Subsidiaries Consolidated Average Daily Balances and Yield/Rate Analysis(1) ($ amounts in thousands; yields on taxable equivalent basis) Nine Months September 30 2007 Average Revenue/ Yield/ Average Balance Expense Rate Balance Assets Interest-earning assets: Interest-bearing deposits in other banks Federal funds sold and securities purchased under agreement to resell Trading account assets Securities: Taxable securities Tax-exempt Loans held for sale Loans held for sale-divestitures Margin receivables Loans, net of unearned income Total interest-earning assets Allowance for loan losses Cash and due from banks Other non-earning assets 2006 Revenue/ Expense Yield/ Rate $57,237 $2,343 5.47% $44,310 $1,524 4.60% 1,109,718 1,413,882 17,175,282 741,012 1,833,863 379,302 536,021 94,233,255 117,479,572 (1,060,347) 2,854,408 19,500,636 $138,774,269 51,689 42,259 653,374 48,452 100,861 21,520 27,653 5,224,248 6,172,399 6.23% 4.00% 5.09% 8.74% 7.35% 7.59% 6.90% 7.41% 7.02% 914,821 1,008,569 11,417,447 409,767 2,150,833 548,760 58,600,990 75,095,497 (782,596) 2,001,710 9,787,734 $86,102,345 35,568 32,574 406,816 36,421 126,559 27,965 3,214,163 3,881,590 5.20% 4.32% 4.76% 11.88% 7.87% 6.81% 7.33% 6.91% Liabilities and Stockholders' Equity Interest-bearing liabilities: Savings accounts Interest-bearing transaction accounts Money market accounts Certificates of deposit of $100,000 or more Other interest-bearing deposit accounts Interest-bearing deposits - divestitures Total interest-bearing deposits Federal funds purchased and securities sold under agreement to repurchase Other short-term borrowings Long-term borrowings Total interest-bearing liabilities Non-interest bearing deposits Other liabilities Stockholders' equity $3,840,451 15,729,996 23,322,675 12,186,977 21,456,129 500,276 77,036,504 $8,643 247,296 611,285 441,636 717,332 12,091 2,038,283 0.30% 2.10% 3.50% 4.85% 4.47% 3.23% 3.54% $3,081,155 9,763,915 12,277,398 7,780,404 15,133,773 48,036,645 $9,259 105,422 270,730 252,087 445,414 1,082,912 0.40% 1.44% 2.95% 4.33% 3.94% 3.01% 7,919,188 2,018,881 9,240,605 96,215,178 19,256,294 3,209,836 20,092,961 $138,774,269 285,285 67,105 395,668 2,786,341 4.82% 4.44% 5.72% 3.87% 4,430,637 937,539 6,416,037 59,820,858 12,762,560 2,773,706 10,745,221 $86,102,345 145,392 27,121 261,953 1,517,378 4.39% 3.87% 5.46% 3.39% Net interest income/margin FTE basis $ 3,386,058 3.85% $ 2,364,212 4.21% (1) Regions Financial Corporation and AmSouth Bancorporation merged effective November 4, 2006. The merger was accounted for as a purchase of AmSouth by Regions. As a result, periods ending prior to November 4, 2006, reflect legacy Regions data on a stand-alone basis. Slide 8: FINANCIAL SUPPLEMENT TO THIRD QUARTER 2007 EARNINGS RELEASE PAGE 8 Regions Financial Corporation and Subsidiaries Selected Ratios (1) As of and for Quarter Ended 6/30/07 3/31/07 1.32% 1.43% 9.07% 9.82% 22.89% 24.79% $27.96 14.31% 6.09% 0.95% 1.46% 6.60% 10.05% 16.29% 24.96% $28.14 14.71% 6.52% 9/30/07 Return on average assets* Return on average assets ex. merger charges and discontd. ops.* (2) Return on average equity* Return on average equity ex. merger charges and discontd. ops.* (2) Return on average tangible equity* Return on average tangible eq. ex. merger charges and discontd. ops.* (2) Stockholders' equity per share Stockholders' equity to total assets Tangible stockholders' equity to tangible assets Allowance for credit losses as a percentage of loans, net of unearned income (3) Allowance for loan losses as a percentage of loans, net of unearned income Net interest margin (FTE) Loans, net of unearned income, to total deposits Net charge-offs as a percentage of average loans* Total non-performing assets (excluding loans 90 days past due) as a percentage of loans and other real estate Total non-performing assets (including loans 90 days past due) as a percentage of loans and other real estate Annualized 1.14% 1.31% 7.90% 9.03% 20.14% 23.03% $28.46 14.36% 6.02% 12/31/06 1.15% 1.39% 8.35% 10.04% 19.59% 23.84% $28.36 14.44% 6.53% 9/30/06 1.60% 1.66% 12.83% 13.24% 24.93% 26.10% $24.27 12.70% 7.08% 1.19% 1.19% 1.18% 1.17% 1.31% 1.13% 3.74% 101.00% 0.27% 1.13% 3.82% 98.90% 0.23% 1.12% 3.99% 98.77% 0.20% 1.12% 4.10% 93.40% 0.27% 1.31% 4.21% 95.67% 0.16% 0.62% 0.62% 0.45% 0.40% 0.52% 0.97% 0.84% 0.67% 0.55% 0.66% (1) Regions Financial Corporation and AmSouth Bancorporation merged effective November 4, 2006. The merger was accounted for as a purchase . of AmSouth by Regions. As a result, periods ending prior to November 4, 2006, reflect legacy Regions data on a stand-alone basis (2) Non-GAAP measurements in 3Q07, 2Q07, 1Q07, and 4Q06 due to exclusion of merger charges; see page 17 for reconciliation to GAAP Financial Measures. (3) The allowance for credit losses reflects the allowance related to both loans on the balance sheet and exposure related to unfunded commitments and standby letters of credit. Slide 9: FINANCIAL SUPPLEMENT TO THIRD QUARTER 2007 EARNINGS RELEASE PAGE 9 Loans (1)(2) Loan Portfolio - Period End Data ($ amounts in thousands) Commercial Real estate- mortgage Real estate- construction Home equity lending Indirect lending Other consumer $ 9/30/07 23,565,882 $ 35,337,366 14,237,083 14,835,319 4,015,142 2,382,840 94,373,632 $ 6/30/07 25,123,355 $ 33,646,480 14,311,192 14,819,443 4,052,637 2,061,381 94,014,488 $ 3/31/07 24,188,205 $ 34,505,573 14,357,801 14,845,348 4,050,317 2,221,016 94,168,260 $ 12/31/06 24,145,411 $ 35,230,343 14,121,030 14,888,599 4,037,539 2,127,680 94,550,602 $ 9/30/06 16,155,841 23,534,691 8,730,822 7,529,539 1,324,017 2,202,995 59,477,905 $ 9/30/07 vs. 6/30/2007 (1,557,473) -24.6% 1,690,886 19.9% (74,109) -2.1% 15,876 0.4% (37,495) -3.7% 321,459 61.9% 359,144 1.5% $ $ Loan Portfolio - Average Balances ($ amounts in thousands) Commercial Real estate- mortgage Real estate- construction Home equity lending Indirect lending Other consumer $ 3Q07 24,146,621 $ 34,923,454 14,232,360 14,774,085 4,044,072 2,189,219 94,309,811 $ 2Q07 24,623,331 $ 34,060,372 14,295,420 14,836,871 4,059,108 2,176,409 94,051,511 $ 1Q07 24,094,090 $ 34,922,144 14,221,432 14,858,209 4,007,349 2,235,536 94,338,760 $ 4Q06 21,242,803 $ 31,361,533 12,289,921 12,402,944 3,141,590 2,619,829 83,058,620 $ 3Q06 15,932,108 23,685,891 8,435,465 7,550,011 1,336,290 2,171,590 59,111,355 $ 3Q07 vs. 2Q07* (476,710) 863,082 (63,060) (62,786) (15,036) 12,810 258,300 -7.7% 10.1% -1.8% -1.7% -1.5% 2.3% 1.1% $ $ (1) Regions Financial Corporation and AmSouth Bancorporation merged effective November 4, 2006. The merger was accounted for as a purchase of AmSouth by Regions. As a result, periods ending prior to November 4, 2006, reflect legacy Regions data on a stand-alone basis. (2) Certain amounts in prior periods have been reclassified to reflect current period presentation * Linked-quarter percentage changes are presented on an annualized basis • Linked-quarter loan classification comparisons have been impacted by 3Q07 conversion-related re-mapping. • Strong home equity production offset by equally high paydowns. Pace of paydowns beginning to slow. • $1.6 billion of loans were reclassified to held-for-sale in 4Q06 in connection with the 52 branches that were divested in 1Q07. • The AmSouth transaction added $36.5 billion of loans in 4Q06. Slide 10: FINANCIAL SUPPLEMENT TO THIRD QUARTER 2007 EARNINGS RELEASE PAGE 10 Deposits (1)(2) Deposit Portfolio - Period End Data ($ amounts in thousands) Interest-Free Deposits Interest-Bearing Checking Savings Money Market Total Low-Cost Deposits, excluding divestitures Divestitures - Interest-Free Divestitures - Other Low-Cost Total Low-Cost Deposits CD's < $100K CD's > $100K Other Interest-Bearing Deposits Divestitures - Time $ 9/30/07 18,834,856 $ 15,208,224 3,692,087 23,501,476 61,236,643 61,236,643 14,434,255 10,076,459 7,692,573 93,439,930 $ 6/30/07 19,136,419 $ 15,685,340 3,795,701 23,926,358 62,543,818 62,543,818 14,693,540 11,602,951 6,216,082 95,056,391 $ 3/31/07 19,942,928 $ 16,426,436 3,937,346 23,057,284 63,363,994 63,363,994 14,985,322 12,979,072 4,008,261 95,336,648 $ 12/31/06 20,175,482 $ 15,899,813 3,882,533 22,802,258 62,760,086 533,295 1,177,671 64,471,052 15,104,520 12,776,086 7,815,910 1,060,401 101,227,969 $ 9/30/06 12,570,051 8,513,908 2,908,930 13,882,716 37,875,605 37,875,605 11,055,918 9,124,935 4,113,087 62,169,545 $ 9/30/07 vs. 6/30/2007* (301,563) -6.3% (477,116) -12.1% (103,614) -10.8% (424,882) -7.0% -8.3% NM NM -8.3% -7.0% -52.2% 94.2% NM -6.7% $ (1,307,175) (1,307,175) (259,285) (1,526,492) 1,476,491 $ (1,616,461) Deposit Portfolio - Average Balances ($ amounts in thousands) Interest-Free Deposits Interest-Bearing Checking Savings Money Market Total Low-Cost Deposits, excluding divestitures Divestitures - Interest-Free Divestitures - Other Low-Cost Total Low-Cost Deposits CD's < $100K CD's > $100K Other Interest-Bearing Deposits Divestitures - Time $ 3Q07 18,850,607 $ 15,268,807 3,756,311 23,853,236 61,728,961 61,728,961 14,600,278 10,872,861 6,736,864 93,938,964 $ 2Q07 19,233,146 $ 15,816,958 3,861,380 23,542,158 62,453,642 62,453,642 14,773,277 12,443,318 5,913,156 95,583,393 $ 1Q07 19,324,381 $ 16,113,504 3,905,299 22,558,401 61,901,585 370,022 796,266 63,067,873 15,124,475 13,271,108 7,231,531 721,238 99,416,225 $ 4Q06 17,175,508 $ 13,338,852 3,572,985 19,734,554 53,821,899 359,957 763,757 54,945,613 13,758,120 12,045,318 5,814,833 686,891 87,250,775 $ 3Q06 12,482,899 9,187,008 2,988,548 12,875,034 37,533,489 37,533,489 11,068,375 8,297,133 4,807,164 61,706,161 $ 3Q07 vs. 2Q07* (382,539) -7.9% -13.7% (548,151) -10.8% (105,069) 311,078 5.2% -4.6% NM NM -4.6% -4.6% -50.1% 55.3% NM -6.8% $ (724,681) (724,681) (172,999) (1,570,457) 823,708 $ (1,644,429) (1) Regions Financial Corporation and AmSouth Bancorporation merged effective November 4, 2006. The merger was accounted for as a purchase of AmSouth by Regions. As a result, periods ending prior to November 4, 2006, reflect legacy Regions data on a stand-alone basis. (2) Certain amounts in prior periods have been reclassified to reflect current period presentation * Linked-quarter percentage changes are presented on an annualized basis. • Average money market accounts grew 5.2%, linked-quarter, annualized, due to efforts to shift funds from higher-rate CD's into lower-cost funding instruments. • CD's greater than $100K continued to decline linked-quarter due to CD's maturing that were not replaced. • Changes in other interest-bearing deposits are primarily related to changes in wholesale funding strategy. • $2.8 billion of deposits were reclassified to held-for-sale in 4Q06 in connection with the 52 branches that were divested in 1Q07. • The AmSouth transaction added $37.6 billion of deposits in 4Q06. Slide 11: FINANCIAL SUPPLEMENT TO THIRD QUARTER 2007 EARNINGS RELEASE PAGE 11 Operating Revenue from Continuing Operations (1)(2) Revenue ($ amounts in thousands) Net Interest Income (TE basis) Non-Interest Income (excl. sec. gains/ losses) Total Revenue (excl. sec. gains/losses, TE basis) 3Q07 1,086,575 $ 705,150 $ 1,791,725 $ 2Q07 1,111,969 $ 729,607 1,841,576 $ 1Q07 1,175,546 $ 696,608 1,872,154 $ 4Q06 1,094,092 $ 637,589 1,731,681 $ 3Q06 794,940 453,279 1,248,219 $ 3Q07 vs. 2Q07* (25,394) (24,457) (49,851) $ $ -9.1% -13.3% -10.7% (1) Regions Financial Corporation and AmSouth Bancorporation merged effective November 4, 2006. The merger was accounted for as a purchase of AmSouth by Regions. As a result, periods ending prior to November 4, 2006, reflect legacy Regions data on a stand-alone basis. (2) Certain amounts in prior periods have been reclassified to reflect current period presentation. * Linked-quarter percentage changes are presented on an annualized basis. • Net interest margin of 3.74% in 3Q07 compared to 3.82% in 2Q07 • Regions' balance sheet is neutrally positioned as of September 30, 2007. • Fee income, excluding securities gains/losses, declined linked-quarter, due in large part to lower service charge fees, and mortgage revenues. Slide 12: FINANCIAL SUPPLEMENT TO THIRD QUARTER 2007 EARNINGS RELEASE PAGE 12 Non-Interest Income and Expense from Continuing Operations (1)(2) Non-interest Income and Expense Non-interest Income ($ amounts in thousands) Brokerage and investment banking Service charges on deposit accounts Trust department income Mortgage income Securities gains (losses), net Insurance premiums & commissions Commercial credit fee income Other Total non-interest income 3Q07 209,413 $ 288,296 62,449 29,806 23,994 23,340 29,217 62,629 729,144 $ 2Q07 207,372 $ 297,638 64,590 40,830 (32,806) 25,476 18,971 74,730 696,801 $ 1Q07 186,195 $ 284,097 63,482 37,021 304 27,229 20,574 78,010 696,912 $ 4Q06 199,697 $ 247,591 51,510 44,134 (20) 21,556 24,477 48,624 637,569 $ 3Q06 144,093 166,555 36,366 43,637 8,104 21,330 18,563 22,735 461,383 3Q07 vs. 2Q07* 2,041 3.9% (9,342) -12.5% (2,141) -13.2% (11,024) -107.1% 56,800 NM (2,136) -33.3% 10,246 214.3% (12,101) -64.2% 32,343 18.4% $ $ $ $ Non-interest Expense** ($ amounts in thousands) Salaries and employee benefits Net occupancy expense Furniture and equipment expense Impairment (recapture) of MSR's Amortization of core deposit intangible Amortization of MSR's Other Total non-interest expense, excluding merger charges Merger-related charges Total non-interest expense 3Q07 566,614 $ 99,325 72,185 20,000 37,432 17,308 240,745 1,053,609 91,785 1,145,394 $ 2Q07 579,599 $ 88,490 73,056 (38,000) 32,702 20,384 241,577 997,808 59,927 1,057,735 $ 1Q07 585,408 $ 89,701 72,564 1,000 43,112 20,042 248,146 1,059,973 48,993 1,108,966 $ 4Q06 540,510 $ 87,495 58,879 27,000 32,890 19,406 237,382 1,003,562 87,638 1,091,200 $ 3Q06 398,810 52,675 32,922 8,000 10,073 16,592 168,258 687,330 1,021 688,351 3Q07 vs. 2Q07* (12,985) -8.9% 10,835 48.6% (871) -4.7% 58,000 NM 4,730 57.4% (3,076) -59.9% (832) -1.4% 55,801 31,858 87,659 22.2% 210.9% 32.9% $ $ $ $ (1) Regions Financial Corporation and AmSouth Bancorporation merged effective November 4, 2006. The merger was accounted for as a purchase of AmSouth by Regions. As a result, periods ending prior to November 4, 2006, reflect legacy Regions data on a stand-alone basis. (2) Certain amounts in prior periods have been reclassified to reflect current period presentation * Linked-quarter percentage changes are presented on an annualized basis. * * Individual expense categories are presented excluding merger-related charges, which are presented in a separate line item in the above table. • Mortgage income declined $11.0 million in 3Q07 due to lower production and a challenging industry environment; originations were down to $1.7 billion in 3Q07 from $2.1 billion in 2Q07. • In 3Q07, approximately $760 million of investment securities were sold at a $24.0 million gain. • Other non-interest income includes a $10.5 million and $2.9 million gain related to sale of residual interest in a former subsidiary in 3Q07 and 2Q07, respectively. • 2Q07 other non-interest income includes a $9.4 million gain related to the termination of debt. • Other non-interest income included a gain on sale of student loans of $22.3 million in 1Q07, $4.5 million in 2Q07 and $1.9 million in 3Q07. • Net occupancy expense includes $10.0 million and $5.3 million insurance recoveries in 2Q07 and 1Q07, respectively. • Core deposit intangible amortization was lower in 2Q07 primarily as the result of an adjustment related to the sale of divested deposits, but returned to normalized levels in 3Q07. • Non-interest expenses, excluding both merger charges and MSR impairment/recapture were down $2.2 million or 1% linked-quarter, annualized. • Merger-related cost saves of $102 million, $84 million and $51 million are reflected in 3Q07, 2Q07 and 1Q07 non-interest expense, respectively. • Primary drivers of "merger-related charges" are occupancy, personnel, and marketing expenses, all related to the July conversion event. See page 3 for individual expense categories including merger-related charges. Slide 13: FINANCIAL SUPPLEMENT TO THIRD QUARTER 2007 EARNINGS RELEASE PAGE 13 Morgan Keegan (1) Morgan Keegan Summary Income Statement ($ amounts in thousands) Revenues: Commissions Principal transactions Investment banking Interest Trust fees and services Investment advisory Other Total revenues Expenses: Interest expense Non-interest expense Total expenses Income before income taxes Income taxes Net income Breakout of Revenue by Division Fixedincome Capital Markets Equity Capital Markets Regions MK Trust 3Q07 $ 82,071 43,916 48,958 35,388 55,803 42,146 10,134 318,416 21,790 225,469 247,259 71,157 26,000 45,157 $ 2Q07 77,563 43,838 48,579 39,820 57,185 48,088 13,761 328,834 25,046 225,074 250,120 78,714 28,603 50,111 $ 1Q07 72,405 37,597 36,750 40,031 56,121 41,792 17,303 301,999 23,983 206,108 230,091 71,908 26,367 45,541 $ 4Q06 72,645 42,691 42,441 40,186 44,189 48,713 16,614 307,479 24,996 207,314 232,310 75,169 28,230 46,939 $ 3Q06 56,194 38,381 25,767 36,721 29,966 35,425 8,062 230,516 21,966 160,679 182,645 47,872 17,251 30,621 $ 3Q07 vs. 2Q07* 4,508 78 379 (4,432) (1,382) (5,942) (3,627) (10,418) (3,256) 395 (2,861) (7,557) (2,603) (4,954) 23.1% 0.7% 3.1% -44.2% -9.6% -49.0% -104.6% -12.6% -51.6% 0.7% -4.5% -38.1% -36.1% -39.2% $ $ $ $ $ $ ($ amounts in thousands) Three months ended September 30, 2007: $ amount of revenue % of gross revenue Three months ended June 30, 2007: $ amount of revenue % of gross revenue Nine months ended September 30, 2007 $ amount of revenue % of gross revenue Nine months ended September 30, 2006 $ amount of revenue % of gross revenue Private Client Asset Management Interest & Other $ 97,577 $ 30.6% 55,647 $ 17.5% 30,191 $ 9.5% 55,803 $ 17.5% 47,646 15.0% $ 31,552 9.9% $ 100,857 $ 30.6% 61,660 $ 18.8% 25,267 $ 7.7% 57,184 $ 17.4% 46,719 14.2% $ 37,147 11.3% $ 294,506 $ 31.0% 164,863 $ 17.4% 73,349 $ 7.7% 169,110 $ 17.8% 138,839 14.6% $ 108,582 11.5% $ 215,329 $ 29.9% 136,509 $ 18.9% 70,460 $ 9.8% 87,029 $ 12.0% 105,380 14.6% $ 106,485 14.8% (1) Regions Financial Corporation and AmSouth Bancorporation merged effective November 4, 2006. The merger was accounted for as a purchase of AmSouth by Regions. As a result, periods ending prior to November 4, 2006, reflect legacy Regions data on a stand-alone basis. * Linked-quarter percentage changes are presented on an annualized basis • Commission revenue increased an annualized 23% linked-quarter, driven by active equity and fixed income markets during the quarter. • Investment banking revenues were steady linked-quarter; underlying these results was heavy equity, M&A-related deal flow offset by postponement of many fixed income transactions as a result of 3Q07 fixed income market turmoil. • Interest income declined linked-quarter due primarily to declining average margin balances and reduced inventory positions. • Investment advisory fees were down during 3Q07 compared to 2Q07 as funds flowed out of higher risk bond funds and due to lower oil and gas-related revenues. • The linked-quarter decline in other revenues was a result of a loss on sale of investment assets. • 24,600 new accounts were opened in 3Q07 compared to 27,800 in 2Q07 and 20,000 in 3Q06. • Total customer assets were $82.6 billion at September 30, 2007, compared to $81.0 billion at June 30, 2007 and $65.9 billion at September 30, 2006. Slide 14: FINANCIAL SUPPLEMENT TO THIRD QUARTER 2007 EARNINGS RELEASE PAGE 14 Credit Quality (1)(2) ($ in thousands) Allowance for credit losses (ACL) Provision for loan losses from continuing operations Provision for unfunded credit losses Net loans charged-off: Commercial Real estate - mortgage Real estate - construction Home equity lending Indirect lending Other consumer Total Net loan charge-offs as a % of average loans, annualized Commercial Real estate - mortgage Real estate - construction Home equity lending Indirect lending Other consumer Total Non-performing assets (NPAs): Non-accrual loans Renegotiated loans Foreclosed properties Total Loans past due > 90 days Credit Ratios: ACL/Loans, net ALL/Loans, net NPAs (ex. 90+ past due)/loans and foreclosed properties NPAs (inc. 90+ past due)/loans and foreclosed properties $ $ $ 9/30/07 1,126,554 $ Credit Quality As of and for Quarter Ended 6/30/07 3/31/07 12/31/06 1,118,229 60,000 2,292 $ $ $ 1,110,324 47,000 2,229 $ $ $ 1,107,788 59,825 $ $ $ 9/30/06 778,465 24,914 $ $ $ YTD 9/30/07 1,126,554 197,000 4,003 $ $ $ YTD 9/30/06 778,465 82,548 - 90,000 $ (518) $ $ $ 19,161 6,392 5,230 11,701 4,395 16,242 63,121 $ $ 17,406 11,432 709 8,774 3,975 11,611 53,907 $ $ 2,044 11,108 8,572 8,686 4,416 11,196 46,022 $ $ 15,164 10,083 1,170 14,078 5,154 10,500 56,149 $ $ 7,135 10,085 1,499 4,640 1,006 (47) 24,318 $ $ 38,611 28,932 14,511 29,161 12,786 39,049 163,050 $ $ 22,377 31,150 5,817 15,642 5,387 3,419 83,792 0.31% 0.07% 0.15% 0.31% 0.43% 2.94% 0.27% 0.28% 0.13% 0.02% 0.24% 0.39% 2.14% 0.23% 0.03% 0.13% 0.24% 0.24% 0.45% 2.03% 0.20% 0.28% 0.13% 0.04% 0.45% 0.65% 1.59% 0.27% 0.18% 0.17% 0.07% 0.24% 0.30% -0.01% 0.16% 0.21% 0.11% 0.14% 0.26% 0.42% 2.37% 0.23% 0.20% 0.17% 0.10% 0.27% 0.54% 0.21% 0.19% $ $ $ 494,693 93,649 588,342 332,116 1.19% 1.13% 0.62% 0.97% $ $ $ 501,175 83,834 585,009 204,829 1.19% 1.13% 0.62% 0.84% $ $ $ 349,833 72,658 422,491 204,296 1.18% 1.12% 0.45% 0.67% $ $ $ 306,471 72,663 379,134 143,868 1.17% 1.12% 0.40% 0.55% $ $ $ 246,728 103 65,190 312,021 78,785 NA 1.31% 0.52% 0.66% Allowance for Credit Losses ($ amounts in thousands) Nine Months Ended September 30 2007 Balance at beginning of year Net loans charged off: Commercial Real estate - mortgage Real estate - construction Home equity lending Indirect lending Other consumer Total Allowance allocated to sold loans Provision for loan losses, from continuing operations Provision for loan losses, from discontinued operations Provision for unfunded credit commitments Balance at end of period Components: Allowance for loans and leases losses Reserve for unfunded credit commitments Allowance for credit losses $1,107,788 38,611 28,932 14,511 29,161 12,786 39,049 163,050 (19,369) 197,000 182 4,003 $1,126,554 2006 $783,536 22,377 31,150 5,817 15,642 5,387 3,419 83,792 (3,780) 82,548 (47) $778,465 1,070,716 55,838 $1,126,554 778,465 $778,465 (1) Regions Financial Corporation and AmSouth Bancorporation merged effective November 4, 2006. The merger was accounted for as a purchase of AmSouth by Regions. As a result, periods ending prior to November 4, 2006, reflect legacy Regions data on a stand-alone basis. (2) Certain amounts in prior periods have been reclassified to reflect current period presentation. Slide 15: FINANCIAL SUPPLEMENT TO THIRD QUARTER 2007 EARNINGS RELEASE PAGE 15 Credit Quality (continued) (1)(2) • 3Q07 net charge-offs totaled $63.1 million, or an annualized 0.27 percent of average loans. • During 3Q07, Regions sold $44 million of nonperforming loans. • During 3Q07, Regions transferred $33 million of nonperforming loans to held-for-sale and subsequently sold these loans in October 2007. • In connection with the movement of loans out of nonperforming status, Regions recorded an additional $11 million of loan loss provision, which coupled with $7 million of existing reserves on these loans, resulted in an $18 million reduction in the allowance for loan losses. • The migration of loans onto non-accrual status is primarily in real estate-related areas of the portfolio (traditional commercial real estate, real estate mortgage and real estate construction). • Loans past due greater than 90 days increased during 3Q07 primarily in commercial real estate and residential mortgages. Slide 16: FINANCIAL SUPPLEMENT TO THIRD QUARTER 2007 EARNINGS RELEASE PAGE 16 Additional Financial and Operational Data (1) 9/30/07 33,630 27.6MM 1,854 2,549 430 6/30/07 34,293 34.2MM 1,911 2,581 446 3/31/07 34,138 53.9 MM 1,913 2,590 453 12/31/06 36,517 13.9 MM 1,956 2,664 319 9/30/06 24,903 18.9 MM 1,299 1,549 328 Associate headcount Authorized shares remaining under buyback program (see note below) Full service offices (2) ATMs Morgan Keegan offices (1) Regions Financial Corporation and AmSouth Bancorporation merged effective November 4, 2006. The merger was accounted for as a purchase of AmSouth by Regions. As a result, periods ending prior to November 4, 2006, reflect legacy Regions data on a stand-alone basis (2) Regions was required by the Department of Justice to divest 52 branches in connection with the AmSouth merger, which occurred during 1Q07. • During the quarter 6.5 million shares were repurchased at an average price of $31.16 Merger-Related Items (Pre-tax dollars in thousands) Income Statement Effect Year ended December 31, 2006 First Quarter 2007 Second Quarter 2007 Third Quarter 2007 Total $ 88,658 48,993 59,927 91,785 289,363 Excess Purchase Price $ 185,378 3,537 4,090 118 193,123 $ Total 274,036 52,530 64,017 91,903 482,486 $ $ $ Slide 17: FINANCIAL SUPPLEMENT TO THIRD QUARTER 2007 EARNINGS RELEASE PAGE 17 Reconciliation to GAAP Financial Measures The table below presents computations of earnings and certain other financial measures excluding discontinued operations and merger charges (non-GAAP). Merger charges and discontinued operations are included in financial results presented in accordance with generally accepted accounting principles (GAAP). Regions believes the exclusion of merger charges in expressing earnings and certain other financial measures provides a meaningful base for period-to-period comparisons, which management believes will assist investors in analyzing the operating results of the Company and predicting future performance. These non-GAAP financial measures are also used by management to assess the performance of Regions' business, because management does not consider merger charges to be relevant to ongoing operating results. Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied, and are not audited. To mitigate these limitations, Regions has policies in place to address expenses that qualify as merger charges from other normal operating expenses to ensure that the Company's operating results are properly reflected for period-to-period comparisons. See table below for computations of earnings and certain other GAAP financial measures and the corresponding reconciliation to non-GAAP financial measures, which exclude discontinued operations and merger changes for the periods presented. 9/30/07 ($ amounts in thousands, except per share data) INCOME As of and for Quarter Ended 6/30/07 3/31/07 12/31/06 Income from continuing operations (GAAP) (Loss) income from discontinued operations, net of tax Net income (GAAP) Income from continuing operations (GAAP) Merger-related charges, pre-tax Salaries and employee benefits Net occupancy expense Furniture and equipment expense Other Total merger-related charges, pre-tax Merger-related charges, net of tax Income excluding discontinued operations and merger charges (non-GAAP) Weighted-average shares outstanding - diluted Earnings per share, excluding discontinued operations and merger charges - diluted RETURN ON AVERAGE ASSETS $ A $ $ 394,240 $ (76) 394,164 $ 394,240 14,811 21,428 1,942 53,604 91,785 56,501 450,741 704,485 0.64 $ 453,732 $ (423) 453,309 $ 453,732 23,047 4,685 992 31,203 59,927 37,155 490,887 715,564 0.69 $ 474,076 $ (141,095) 332,981 $ 474,076 23,531 3,830 245 21,387 48,993 30,376 504,452 734,534 0.69 $ 371,995 (10,444) 361,551 371,995 65,655 3,473 427 18,083 87,638 59,299 431,294 646,372 0.67 B C B/C $ $ $ $ $ $ $ $ Average assets (GAAP) Average assets, excluding discontinued operations Return on average assets (GAAP)* Return on average assets, ex. discontinued operations and merger charges (non-GAAP)* RETURN ON AVERAGE EQUITY D E A/D B/E $ $ 136,876,429 $ 136,876,429 $ 1.14% 1.31% 137,538,592 $ 137,538,592 $ 1.32% 1.43% 141,963,691 $ 140,017,429 $ 0.95% 1.46% 124,577,836 122,848,424 1.15% 1.39% Average equity (GAAP) Average intangible assets (GAAP) Average tangible equity Average equity, excluding discontinued operations Average intangible assets, excluding discontinued operations Average tangible equity, excluding discontinued operations Return on average equity (GAAP)* Return on average tangible equity* Return on average equity, ex. discontinued operations and merger charges* (non-GAAP) F G H I A/F A/G B/H $ $ $ $ 19,793,123 12,026,887 7,766,236 19,793,123 12,026,887 7,766,236 7.90% 20.14% 9.03% 23.03% $ $ $ $ 20,040,276 12,097,753 7,942,523 20,040,276 12,097,753 7,942,523 9.07% 22.89% 9.82% 24.79% $ $ $ $ 20,452,731 12,165,061 8,287,670 20,360,732 12,165,061 8,195,671 6.60% 16.29% 10.05% 24.96% $ $ $ $ 17,185,928 9,862,793 7,323,135 17,039,768 9,862,793 7,176,975 8.35% 19.59% 10.04% 23.84% Return on average tangible equity, ex. discontinued operations and merger charges (non-GAAP)* B/I * Income statement amounts have been annualized in calculation Slide 18: FINANCIAL SUPPLEMENT TO THIRD QUARTER 2007 EARNINGS RELEASE PAGE 18 Forward-Looking Statements This financial supplement to Regions’ 3 rd quarter 2007 earnings may include forward-looking statements about Regions Financial Corporation within the meaning of the Private Securities Litigation Reform Act of 1995. Statements that are not historical or current facts, including statements about beliefs and expectations, are forward-looking statements. The words “believe,” “expect,” “anticipate,” “project,” and similar expressions often signify forward-looking statements. Such statements involve inherent risks and uncertainties. Regions cautions that actual results and events could differ materially from expectations expressed in forward-looking statements as a result of factors such as possible changes in economic and business conditions and interest rates; Regions’ ability to integrate the recent combination with AmSouth Bancorporation and to retain and attract customers; the effects of geopolitical instability and risks such as terrorist attacks; the effects of weather and natural disasters such as hurricanes; possible changes in laws and regulations and governmental monetary and fiscal policies; the cost and other effects of legal and administrative cases and similar contingencies; possible changes in the creditworthiness of customers and the possible impairment of collectibility of loans; increased competition from both banks and non-banks; and effects of critical accounting policies and judgments. For discussion of these and other risks that may cause actual results to differ from expectations, please look under the caption “Forward Looking Statements” in Regions’ Annual Report on Form 10-K for the year ended December 31, 2006 and in subsequently-filed Forms 10-Q, as on file with the Securities and Exchange Commission. You should not place undue reliance on any forward-looking statements, which speak only as of the date made. Regions assumes no obligation to update or revise any forward-looking statements that are made from time to time. Regions’ Investor Relations contact is List Underwood at (205) 801-0265; Regions’ Media contact is Linda Childs at (205) 264-5690.