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Name of institution: Regions Financial Corporation Submission date: September 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 Jun Jul Aug Key Comments

a. Average Loan Balance (Daily Average Total Outstanding) $14,911 $14,835 $14,750 First and second residential 1-4 family mortgages, including residential mortgages held for sale.

b. Total Originations $496 $483 $489 Loan originations designated for the secondary market and those to be held in portfolio on 

Regions' balance sheet.

(1) Refinancings $173 $192 $214 Total originations designated as refinance status.

(2) New Home Purchases $324 $291 $276 Total originations designated as new purchase status.

2. Home Equity

a. Average Total Loan Balance $13,644 $13,545 $13,451 Average balances include Home Equity loans and HELOCs.

b. Originations (New Lines+Line Increases) $97 $72 $81 New Home Equity loans, lines and increases.

c. Total Used and Unused Commitments $22,566 $22,405 $22,241 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 $38 $1,128 $1,128 Regions Financial Corp was an Agent Bank until the current portfolio was acquired on June 30, 

2011.

b. New Account Originations (Initial Line Amt) $0 $20 $31 Regions Financial Corp was an Agent Bank until the current portfolio was acquired on June 30, 

2011.

c. Total Used and Unused Commitments $5,424 $6,709 $6,786

4. Other Consumer 

a. Average Total Loan Balance $2,892 $2,923 $2,975 Includes consumer direct, indirect, other revolving (i.e., overdraft lines) and student loans held 

for sale.

b. Originations $157 $141 $159 Includes direct and student lending origination activity.

August Other Consumer Lending balances increased by $52.2MM or 1.8% when compared to July. Balances are being 

favorably impacted by the re-entry of Indirect Lending that generated $96.7MM in new production for the month, offset by 

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

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 

$947MM and 40,000 business credit card accounts with balances of $129MM. Month end consumer credit card principal 

balances increased by $4.1MM, or 0.4%, in August to $952MM. Average consumer credit card principal balances increased by 

$1.6MM, or 0.2%, in August to $943MM.

The mortgage division originated mortgage loans totaling $489 million in August 2011. Overall production increased 1.4% 

from the prior month. New purchase originations decreased 5.3% from prior month, and refinancing originations increased 

from the prior month 11.5%. Application activity in August increased 72% as compared to prior month. 

Home Equity average balances declined $93.7MM or 0.7% in August to $13.5B. The HELOAN portfolio declined $1.7MM or 

0.1%, while HELOC balances declined $92MM or 0.8%. Portfolio run-off continues as payoffs/paydowns outpace production.

TREASURY MONTHLY INTERMEDIATION SNAPSHOT
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SCHEDULE B: COMMERCIAL LENDING (Millions $)

1. C & I Jun Jul Aug Key Comments

a. Average Total Loan and Lease Balance $35,797 $35,928 $35,883 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 $2,949 $2,068 $2,048 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 $1,703 $1,132 $1,314 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 $14,489 $13,656 $12,975 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 $1,288 $687 $871 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 $151 $95 $63 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 $12,868 $12,920 $12,856 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 $672 $574 $674 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 -$1,422 $27 $479

b. Asset Backed Securities $30 $52 $25

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 $1,208 $1,186 $1,125 Reflects average margin receivables as recorded on the general ledger.

3. Underwriting

a. Total Equity Underwriting $93 $57 $36 Total equity underwriting activity. Represents Regions' participation percentage.

b. Total Debt Underwriting $1,245 $830 $710 Debt issuances delivered monthly. Represents Regions' participation percentage.

Notes:

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.

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, in turn, reducing our land and lot portfolio. 

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. The demand for financing for purchase of existing properties also remains limited as 

transaction volume remains low. Finally, competition for the construction opportunities that are available is increasing.

The Morgan Keegan Equity department participated in 9 offerings June 2011, 6 durning July 2011, and 3 during August 2011. 

Gross debt issuance for June, July, and August was $9.7 billion, $7.9 billion, and $4.9 billion respectively.

Net purchase volume as captured in bond accounting system. Reflects settlement date. 

Consists of Government and Agency Fixed-Rate Mortgage-Backed Products. The Asset Backed securities consist of Agency 

Commercial Mortgage Backed products.

We expect small business demand to improve only modestly as consumer spending continues to remain weak, and the 

economic recovery remains sluggish. The August 2011 NFIB survey states that the percentage of small business owners 

expecting capital outlays in the next 3 - 6 months is 20%, which is a recession level reading. More business owners continue to 

expect conditions to worsen in the short term vs. those who expect improvements. We still believe business owners will 

remain cautious about adding jobs and expansion even as sales and profits pick up. Small business line utilization rates 

decreased in August as compared to July.

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. We are seeing less loan demand in 3Q and expect this trend to continue for the remainder of 2011. Furthermore, 

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

deals we’re underwriting. 

Parallel to increasing demand during this time frame, line utilization has also increased. Utilization rates increased in August 

as compared to July. However, it does appear that utilization rates have begun to stabilize. 
TREASURY MONTHLY INTERMEDIATION SNAPSHOT

Name of institution: Regions Financial Corporation

Reporting month(s): August 2011

Submission date: September 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 June 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 August, new and renewed commitments increased by $0.4 billion to $5.1 billion for the month, while 

average balances declined $0.9 billion from July to $81.2 billion.

The month over month increase in new and renewed commitments was driven by a $0.2 billion increase 

in C&I commitments and a $0.2 billion increase in Commercial Real Estate renewals.

III. Consumer Lending

A. Mortgage Lending

The mortgage division originated mortgage loans totaling $489 million in August 2011. Overall 

production increased 1.4% from the prior month. New purchase originations decreased 5.3% from prior 

month, and refinancing originations increased from the prior month 11.5%. Application activity in 

August increased 72% 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%. August originations included 

approximately $34.8 million related to 212 loans refinanced under the Home Affordable Refinance 

Program.

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 
TREASURY MONTHLY INTERMEDIATION SNAPSHOT

Name of institution: Regions Financial Corporation

Reporting month(s): August 2011

Submission date: September 30, 2011

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

2

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 2,598 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 August, Regions completed 58 modifications totaling 

$8.8 million in unpaid principal. Regions currently services approximately $ 26.3 billion of Agency 

mortgages.

B. Home Equity Lending

Home Equity production increased 12.5% to $80.6MM from prior month due in part to seasonality but 

decreased 26.8% versus same period prior year. Activities for August included: daily pre-approved point 

of sale Equity offers at DDA account opening, pre-approved direct mail offer with lead lists to the 

branches, payment savings/utilization mailing to existing customers as well as 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 $93.7MM or 0.7% in August to $13.5B. The HELOAN 

portfolio declined $1.7MM or 0.1%, while HELOC balances declined $92MM or 0.8%. 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 $947MM and 40,000 business credit card accounts with 

balances of $129MM. Month end consumer credit card principal balances increased by $4.1MM, or

0.4%, in August to $952MM. Average consumer credit card principal balances increased by $1.6MM, or 

0.2%, in August to $943MM.

D. Other Consumer Lending

Other Consumer Lending production increased 12.4% in August to $158.6MM from prior month and 

increased 160% versus same period prior year due to our re-entry into Indirect Auto Lending. Other 

Consumer Lending activities for August 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 

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

credit products but are NOT considered subprime borrowers. 
TREASURY MONTHLY INTERMEDIATION SNAPSHOT

Name of institution: Regions Financial Corporation

Reporting month(s): August 2011

Submission date: September 30, 2011

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

3

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

to $500, continues to gain momentum. New Ready AdvanceTM production, which is included in the 

$158.6MM above, totaled $5.3MM in August. Program to date 46,374 accounts have been established. 

Overall, August Other Consumer Lending balances increased by $52.2MM or 1.8% when compared to 

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

$96.7MM 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 $3.5 billion in mortgages, including $45 million in August 2011. Regions has assisted more 

than 39,000 homeowners with solutions.

In addition, 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 2,598 trial period modifications for $391.5 million and of those 1,916 have been completed for 

$289 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 $45 million 

in August as compared to July levels. We are seeing less loan demand in 3Q and expect this trend to 

continue for the remainder of 2011. Furthermore, loan pricing has intensified across all lending 

segments and we continue to have more conservative leverage positions on the deals we’re 

underwriting. 

Parallel to increasing demand during this time frame, line utilization has also increased. Utilization rates 

increased in August as compared to July. However, it does appear that utilization rates have begun to 

stabilize. 
TREASURY MONTHLY INTERMEDIATION SNAPSHOT

Name of institution: Regions Financial Corporation

Reporting month(s): August 2011

Submission date: September 30, 2011

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

4

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 improve only modestly as consumer spending continues to remain 

weak, and the economic recovery remains sluggish. The August 2011 NFIB survey states that the 

percentage of small business owners expecting capital outlays in the next 3 - 6 months is 20%, which is a 

recession level reading. More business owners continue to expect conditions to worsen in the short 

term vs. those who expect improvements. We still believe business owners will remain cautious about 

adding jobs and expansion even as sales and profits pick up. Small business line utilization rates 

decreased in August as compared to July.

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, in turn, reducing our land and lot portfolio. 

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. The demand 

for financing for purchase of existing properties also remains limited as transaction volume remains low. 

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 August

totaled $478.76 million, which consists of Government and Agency Fixed-Rate Mortgage-Backed 

Products. Asset-Backed security activity in August totaled $25.38 million, which consisted of Agency 

Commercial Mortgage Backed products. 

VI. Equity and Debt Activities at Morgan Keegan

August 2011 saw Wall Street price 12 Equity offerings with a paltry $2.8b raised, making it the worst 

month on record except for August 2002. Morgan Keegan was fortunate to be involved in three deals. 
TREASURY MONTHLY INTERMEDIATION SNAPSHOT

Name of institution: Regions Financial Corporation

Reporting month(s): August 2011

Submission date: September 30, 2011

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

5

The month was riddled with IPOs being withdrawn or postponed (17 deals) with the technology sector 

being hardest hit. Interesting to note that the last week of August saw 21 offerings file registration 

statements with the SEC. Seven of those filings were IPO’s and of those, four were in the technology 

sector. Municipal Debt issuance continues to trail last year’s pace – as of the end of August it was down 

42% from this time in 2010. The downgrade of the U.S. credit rating coupled with uncertainty 

regarding the Obama Administration’s proposals regarding tax exempt bonds have slowed new

municipal issuance. As a result, we expect September municipal issuance to continue to lag 2010’s pace. 

Corporate issuance has slowed due to seasonality and spread volatility – and we expect this to continue 

at least through September.