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Name of institution: Regions Financial Corporation Submission date: November 30, 2011 Person to be contacted about this report: David Turner, Chief Financial Officer

PART I. QUANTITATIVE OVERVIEW

SCHEDULE A: CONSUMER LENDING (Millions $) 2011

1. First Mortgage Aug Sep Oct Key Comments

a. Average Loan Balance (Daily Average Total Outstanding) $14,750 $14,712 $14,679 First and second residential 1-4 family mortgages, including residential mortgages held for sale.

b. Total Originations $489 $544 $612 Loan originations designated for the secondary market and those to be held in portfolio on 

Regions' balance sheet.

(1) Refinancings $214 $311 $406 Total originations designated as refinance status.

(2) New Home Purchases $276 $233 $205 Total originations designated as new purchase status.

2. Home Equity

a. Average Total Loan Balance $13,451 $13,363 $13,274 Average balances include Home Equity loans and HELOCs.

b. Originations (New Lines+Line Increases) $81 $61 $58 New Home Equity loans, lines and increases.

c. Total Used and Unused Commitments $22,241 $22,081 $21,919 Total portfolio of Home Equity loans and funded and unfunded HELOCs. Funded portion 

included in average balance above.

3. US Card - Managed

a. Average Total Loan Balance - Managed $1,128 $1,025 $1,018 Regions Financial Corp was an Agent Bank until the current portfolio was acquired on June 30, 

2011.

b. New Account Originations (Initial Line Amt) $31 $31 $35 Regions Financial Corp was an Agent Bank until the current portfolio was acquired on June 30, 

2011.

c. Total Used and Unused Commitments $6,786 $6,838 $6,892

4. Other Consumer 

a. Average Total Loan Balance $2,975 $2,986 $3,010 Includes consumer direct, indirect, other revolving (i.e., overdraft lines) and student loans held 

for sale.

b. Originations $159 $143 $136 Includes direct and student lending origination activity.

TREASURY MONTHLY INTERMEDIATION SNAPSHOT

October Other Consumer Lending balances increased by $23.5 million or 0.8% when compared to September. Balances are 

being favorably impacted by the re-entry of Indirect Lending that generated $93.8 million in new production for the month, 

offset by the continued run-off of the legacy Indirect Lending portfolio.

Excluding associated premiums, month end consumer credit card principal balances increased by $2.9 million, or 0.3%, in 

October to $949 million. Excluding associated premiums, average consumer credit card principal balances decreased by $3.9 

million, or (0.4%), in October to $941 million.

The mortgage division originated mortgage loans totaling $612 million in October 2011. Overall production increased 12.4% 

from the prior month. New purchase originations decreased 12% from prior month, and refinancing originations increased 

from the prior month 30.7%. Application activity in October decreased 10.4% as compared to prior month. 

Home Equity average balances declined $88.7 million or 0.7% in October to $13.3 billion. The HELOAN portfolio declined $ 7.4 

million or 0.5%, while HELOC balances declined $81.3 million or 0.7%. Portfolio run-off continues as payoffs/paydowns 

outpace production.
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SCHEDULE B: COMMERCIAL LENDING (Millions $)

1. C & I Aug Sep Oct Key Comments

a. Average Total Loan and Lease Balance $35,883 $36,165 $36,057 Average outstanding funded balances (net of deferred fees and costs) for commercial related 

loans and leases. Also includes owner-occupied commercial real estate mortgage and 

construction loans made to operating businesses.

b. Renewal of Existing Accounts $2,048 $2,474 $2,190 Renewal of existing funded and unfunded commitments for commercial and owner-occupied 

real estate related loans based upon posting date of renewal. Also includes letters of credit.

c. New Commitments $1,314 $846 $825 New funded and unfunded commitments for commercial and owner-occupied real estate related loans 

based upon posting date of the commitment. Also includes letters of credit and leases. Variable Rate 

Demand Note (VRDN) fundings are excluded from new commitment activity.

2. Commercial Real Estate

a. Average Total Loan and Lease Balance $12,975 $12,635 $12,137 Average outstanding funded balances (net of deferred fees and costs) for commercial investorowned real estate related loans. Also includes Commercial loans held for sale.

b. Renewal of Existing Accounts $871 $793 $734 Renewal of existing funded and unfunded commitments for commercial investor-owned real 

estate related loans based upon posting date of renewal. Also includes letters of credit.

c. New Commitments $63 $96 $59 New funded and unfunded commitments for commercial investor-owned real estate related loans based 

upon posting date of the commitment. Also includes letters of credit. Variable Rate Demand Note (VRDN) 

fundings are excluded from new commitment activity.

SCHEDULE C: MEMORANDA - SMALL BUSINESS LENDING (Millions $)

4. Small Business Loans3

a. Average Total Loan Balance $12,856 $12,795 $12,628 Average outstanding funded balances (net of deferred fees and costs) for commercial and commercial real estate related 

loans made to small business clients, which we generally define as clients with revenues up to $20 million. These balances 

are reflected as components of C&I, Commercial Real Estate and First Mortgage reported above.

b. Originations $674 $624 $463 New and renewed production of funded and unfunded commitments made to small business 

clients, which we generally define as clients with revenues up to $20 million. These originations 

are reflected as components of C&I and Commercial Real Estate reported above.

SCHEDULE D: OTHER INTERMEDIATION ACTIVITIES (Millions $)

1. MBS/ABS Net Purchased Volume

a. Mortgage Backed Securities $479 $87 $373

b. Asset Backed Securities $25 $27 $63

2. Secured Lending (Repo, PB, Margin Lending)

a. Average Total Matched Book (Repo/Reverse Repo)1 N/A N/A N/A

b. Average Total Debit Balances2 $1,125 $1,085 $1,075 Reflects average margin receivables as recorded on the general ledger.

3. Underwriting

a. Total Equity Underwriting $36 $18 $47 Total equity underwriting activity. Represents Regions' participation percentage.

b. Total Debt Underwriting $710 $767 $899 Debt issuances delivered monthly. Represents Regions' participation percentage.

Notes:

2. Applicable only for institutions offering prime brokerage or other margin lending services to clients.

Regions’ focus in the commercial real estate market is to take a realistic and aggressive approach to identifying problems, 

understand the global financial position of our commercial real estate clients, and seek improvements to loan structures (such 

as additional security or principal curtailments) as appropriate. In addition, we are selectively originating new loans to the 

right clients that meet our profitability and credit quality hurdles. Also, as homebuilders sell existing inventory, we continue 

to convert lot loans to residential construction loans. We are starting to finance some new homes and lots with our most 

creditworthy clients, while very selectively soliciting new homebuilder clients in stable markets. While production levels are 

somewhat increasing, they remain far below what we would expect in normal market conditions. Construction starts are at a 

multi-generational low and developers continue to remain cautious, however, pipelines appear to be rebuilding in the multifamily sector. We are starting to see evidence of an increase in demand of financing for purchase of existing properties. 

Finally, competition for the construction opportunities that are available is increasing.

The Morgan Keegan Equity department participated in 3 offerings durning August 2011, 4 during September, and 5 during 

October 2011. Gross debt issuance for August, September, and October was $4.9 billion, $5.8 billion, and $7.3 billion 

respectively.

Net purchase volume as captured in bond accounting system. Reflects settlement date. The Mortgage Backed securities 

consists of Government and Agency Fixed-Rate Mortgage-Backed Products. The Asset Backed securities consists of both 

Agency and Non-Agency Commercial Mortgage Backed products.

We expect small business demand to be flat as consumer spending continues to remain weak, and the economic recovery 

remains sluggish. The October 2011 NFIB survey reported that “poor sales” continues to be the number one problem for small 

business owners, and their small business optimism index reveals that there is no expectations for improvements in the short 

term. As a result of the poor outlook, we expect business owners to continue to be reluctant to expand or hire. Small 

business line utilization rates increased in October as compared to September.

1. Not applicable if matched book activity does not exceed $50 billion. 

Loan demand, while somewhat soft by historical standards, picked up some momentum throughout the second half of 2010 

and continued through the first half of 2011. The demand has been more robust in the upper end of the market and in certain 

industries. Outstanding loan balances decreased $108 million in October as compared to September levels. We are seeing 

less loan demand in the second half of 2011 and expect this trend to continue for the remainder of the year. Furthermore, 

loan pricing has intensified across all lending segments and we continue to have more conservative leverage positions on the 

deals we’re underwriting. Utilization rates increased in October as compared to September.

3. Memoranda: these loans are already accounted for in either consumer lending, commercial lending, or a combination of both, and include loans guaranteed by the Small Business Administration and/or any other loans that are internally classified as small business loans.
TREASURY MONTHLY INTERMEDIATION SNAPSHOT

Name of institution: Regions Financial Corporation

Reporting month(s): October 2011

Submission date: November 30, 2011

Person to be contacted regarding this report: David Turner, Chief Financial Officer

1

PART II. QUALITATIVE OVERVIEW

Please provide a brief overview of the intermediation activity during the month. This discussion should 

include a general commentary on the lending environment, loan demand, any changes in lending 

standards and terms, and any other intermediation activity.

I. Company Description

Regions Financial Corporation (“Regions” or the “Company”) is a financial holding company 

headquartered in Birmingham, Alabama, which operates throughout the South, Midwest and Texas. 

Regions provides traditional commercial, retail and mortgage banking services, as well as other financial 

services in the fields of investment banking, asset management, trust, securities brokerage, insurance 

and other specialty financing. At September 30, 2011, Regions had total consolidated assets of 

approximately $130 billion.

Regions conducts its banking operations through Regions Bank, its brokerage and investment banking 

business through Morgan Keegan & Company, Inc. (“Morgan Keegan”), and its insurance brokerage 

business through Regions Insurance Group, Inc.

II. Overall Summary

In October, new and renewed commitments decreased by $0.3 billion to $4.6 billion for the month,

while average balances declined $0.7 billion from September to $80.2 billion.

The month over month decrease in new and renewed commitments was driven by a $0.3 billion 

decrease in C&I renewals.

III. Consumer Lending

A. Mortgage Lending

The mortgage division originated mortgage loans totaling $612 million in October 2011. Overall 

production increased 12.4% from the prior month. New purchase originations decreased 12.0% from 

prior month, and refinancing originations increased from the prior month 30.7%. Application activity in 

October decreased 10.4% as compared to prior month. 

Regions’ mortgage division rolled out the U.S. Treasury sponsored Home Affordable Refinance Program 

(HARP) in late March 2009, which provides borrowers who have an existing loan owned or securitized by 

Fannie Mae or Freddie Mac, the ability to refinance to more beneficial financing terms with no new or 

additional mortgage insurance required, even if their current loan-to-value ratio is higher than it was on 

the original loan. The loan-to-value ratio cannot exceed 125%. October originations included 

approximately $67 million related to 417 loans refinanced under the Home Affordable Refinance 

Program.
TREASURY MONTHLY INTERMEDIATION SNAPSHOT

Name of institution: Regions Financial Corporation

Reporting month(s): October 2011

Submission date: November 30, 2011

Person to be contacted regarding this report: David Turner, Chief Financial Officer

2

Regions’ has implemented the U. S. Treasury sponsored Home Affordable Modification Program (HMP) 

for FNMA/FHLMC loans serviced by Regions. This program is designed to assist mortgage borrowers who 

have an existing loan owned or securitized by Fannie Mae or Freddie Mac, and who are in imminent 

danger of default or are already in default to obtain modified financing terms prescribed by the 

program. On March 26, 2010, the U.S. Treasury announced program modifications to the existing HMP 

program. These program modifications are designed to expand flexibility for mortgage servicers and 

originators to assist more unemployed homeowners and to help more people who owe more on their 

mortgage than their home is worth because their local markets saw large declines in home values. In 

accordance with the program guidelines, Regions has distributed approximately 2,681 modification 

packages to eligible borrowers subject to a ninety-day trial period. The first modifications under this 

program were seen in July 2009. In the month of October, Regions completed 46 modifications totaling 

$5.9 million in unpaid principal. Regions currently services approximately $26 billion of Agency 

mortgages.

B. Home Equity Lending

Home Equity production decreased 4.8% to $58.2 million from prior month and decreased 43.3% versus 

same period prior year. Activities for October included: daily pre-approved point of sale Equity offers at 

DDA account opening, pre-approved direct mail offer with lead lists to the branches, and continued 

momentum from targeting the lending needs of customers that do not qualify for the traditional HELOC 

product but are NOT considered subprime borrowers. 

Overall Home Equity average balances declined $88.7 million or 0.7% in October to $13.3 billion. The 

HELOAN portfolio declined $ 7.4 million or 0.5%, while HELOC balances declined $81.3 million or 0.7%. 

Portfolio run-off continues as payoffs/paydowns outpace production.

C. US Card – Managed

Regions completed its purchase of the Regions-branded credit card portfolio from FIA Card Services, 

effective June 30, 2011. The transaction acquired the portfolio of over 500,000 existing Regions 

consumer credit card accounts with balances of $947 million and 40,000 business credit card accounts 

with balances of $129MM. Excluding associated premiums, month end consumer credit card principal 

balances increased by $2.9 million, or 0.3%, in October to $949 million. Excluding associated premiums, 

average consumer credit card principal balances decreased by $3.9 million, or (0.4%), in October to $941 

million.

D. Other Consumer Lending

Other Consumer Lending production decreased 4.9% in October to $136.4 million from prior month and 

increased 165% versus same period prior year due to our re-entry into Indirect Auto Lending. Other 

Consumer Lending activities for October included: daily pre-approved point of sale Auto/Unsecured LOC 

offers at DDA account opening; pre-approved direct mail offer with lead lists to the branches, and 
TREASURY MONTHLY INTERMEDIATION SNAPSHOT

Name of institution: Regions Financial Corporation

Reporting month(s): October 2011

Submission date: November 30, 2011

Person to be contacted regarding this report: David Turner, Chief Financial Officer

3

continued momentum from targeting the lending needs of customers that do not qualify for traditional 

credit products but are NOT considered subprime borrowers. 

Regions’ Ready AdvanceTM product, a short-term, small-dollar line of credit with limits ranging from $50 

to $500, continues to be utilized by customers. New Ready AdvanceTM production, which is included in 

the $136.4 million above, totaled $3.2 million in October. Program to date 60,678 accounts have been 

established.

Overall, October Other Consumer Lending balances increased by $23.5 million or 0.8% when compared 

to September. Balances are being favorably impacted by the re-entry of Indirect Lending that generated 

$93.8 million in new production for the month, offset by the continued run-off of the legacy Indirect 

Lending portfolio.

E. Customer Assistance Program

Regions’ continues to work to meet the unique needs of financially troubled borrowers to stem 

foreclosures and keep customers in their homes. Well before the full effects of the credit crisis were 

realized, Regions launched an extensive Customer Assistance Program (CAP) for troubled borrowers. As 

unemployment levels continue to be elevated and the housing crisis lingers our goal remains the same -

to ensure customers who encounter financial difficulty know they have options and that Regions wants 

to work with them.

As a result, Regions has taken steps including renegotiating the terms of mortgages and home equity 

loans, keeping families in their homes and allowing Regions to maintain a foreclosure rate well below 

industry average for residential first mortgages. Overall, the number of Regions serviced first mortgage 

loans in the foreclosure process is less than half the national average. (1.87% for Regions vs. 4.43% 

nationally in the second quarter of 2011.) Since inception of the program, Regions has restructured 

more than $3.6 billion in mortgages, including $30 million in October 2011. Regions has assisted more 

than 41,000 homeowners with solutions.

Regions introduced the U.S. Treasury sponsored Home Affordable Modification Program for loans 

serviced on behalf of Fannie Mae and Freddie Mac back in late March 2009. To date, we have initiated 

2,681 trial period modifications for $403 million and of those 2,004 have been completed for $301 

million.

IV. Commercial Lending

A. Commercial and Industrial Lending

Loan demand, while somewhat soft by historical standards, picked up some momentum throughout the 

second half of 2010 and continued through the first half of 2011. The demand has been more robust in 

the upper end of the market and in certain industries. Outstanding loan balances decreased $108 

million in October as compared to September levels. We are seeing less loan demand in the second half 

of 2011 and expect this trend to continue for the remainder of the year. Furthermore, loan pricing has 
TREASURY MONTHLY INTERMEDIATION SNAPSHOT

Name of institution: Regions Financial Corporation

Reporting month(s): October 2011

Submission date: November 30, 2011

Person to be contacted regarding this report: David Turner, Chief Financial Officer

4

intensified across all lending segments and we continue to have more conservative leverage positions 

on the deals we’re underwriting. Utilization rates increased in October as compared to September.

Regions defines small business, in general, as clients with revenues up to $20 million. Small business 

lending activity is reflected within our Commercial and Industrial, Commercial Real Estate and First 

Mortgage outstanding loan balances and production. 

We expect small business demand to be flat as consumer spending continues to remain weak, and the 

economic recovery remains sluggish. The October 2011 NFIB survey reported that “poor sales” 

continues to be the number one problem for small business owners, and their small business optimism 

index reveals that there is no expectations for improvements in the short term. As a result of the poor 

outlook, we expect business owners to continue to be reluctant to expand or hire. Small business line 

utilization rates increased in October as compared to September.

B. Commercial Real Estate Lending

Regions’ focus in the commercial real estate market is to take a realistic and aggressive approach to 

identifying problems, understand the global financial position of our commercial real estate clients, and 

seek improvements to loan structures (such as additional security or principal curtailments) as 

appropriate. In addition, we are selectively originating new loans to the right clients that meet our 

profitability and credit quality hurdles. Also, as homebuilders sell existing inventory, we continue to 

convert lot loans to residential construction loans. We are starting to finance some new homes and lots 

with our most creditworthy clients, while very selectively soliciting new homebuilder clients in stable 

markets.

While production levels are somewhat increasing, they remain far below what we would expect in 

normal market conditions. Construction starts are at a multi-generational low and developers continue 

to remain cautious, however, pipelines appear to be rebuilding in the multi-family sector. We are 

starting to see evidence of an increase in demand of financing for purchase of existing properties.

Finally, competition for the construction opportunities that are available is increasing.

V. Treasury Activities 

Management of interest rate risk is among the most fundamental tenets in banking. Banking 

institutions utilize the Available for Sale investment portfolio as a primary tool to balance the inherent 

interest rate risk arising from core banking activities. Agency Mortgage-Backed securities provided an 

efficient means to offset asset sensitivity and maintain the desired liquidity profile, while offering a 

compelling risk adjusted return on the use of capital. Mortgage-Backed security activity in October

totaled $372.7 million, which consists of Government and Agency Fixed-Rate Mortgage-Backed 

Products. Asset-Backed security activity in August totaled $62.6 million, which consisted of both 

Agency and Non-Agency Commercial Mortgage Backed products. 
TREASURY MONTHLY INTERMEDIATION SNAPSHOT

Name of institution: Regions Financial Corporation

Reporting month(s): October 2011

Submission date: November 30, 2011

Person to be contacted regarding this report: David Turner, Chief Financial Officer

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VI. Equity and Debt Activities at Morgan Keegan

The Equity Capital Markets environment has become extremely challenging. We did see the IPO market 

reappear, with three pricing in October. The IPO backlog continues to build; waiting for a more stable 

market. The most notable IPO pending and scheduled to price in November is Groupon. There are 

currently 128 IPO’s pending with the financial services sector at 29, the energy sector at 27 and the 

technology sector at 25. Morgan Keegan was involved in three equity transactions and two closed-end 

funds during October. Our calendar continues to grow and we look forward to a more active end to the 

fourth quarter depending on market conditions. 

Municipal debt issuance continues to trail last year’s pace – as of the end of October it was down 37% 

from this time in 2010. However, consistent with fourth quarter in previous years, municipal issuance 

was strong in October and we expect this to continue thru the end of the year. Corporate issuance 

remained light in October due to market volatility and widened spreads, but improving conditions in 

both the investment grade and non-investment grade markets should result in an upswing in activity in 

November.