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Name of institution: Regions Financial Corporation Submission date: August 31, 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 May Jun Jul Key Comments

a. Average Loan Balance (Daily Average Total Outstanding) $15,059 $14,911 $14,835 First and second residential 1-4 family mortgages, including residential mortgages held for sale.

b. Total Originations $451 $496 $483 Loan originations designated for the secondary market and those to be held in portfolio on 

Regions' balance sheet.

(1) Refinancings $157 $173 $192 Total originations designated as refinance status.

(2) New Home Purchases $294 $324 $291 Total originations designated as new purchase status.

2. Home Equity

a. Average Total Loan Balance $13,747 $13,644 $13,545 Average balances include Home Equity loans and HELOCs.

b. Originations (New Lines+Line Increases) $84 $97 $72 New Home Equity loans, lines and increases.

c. Total Used and Unused Commitments $22,706 $22,566 $22,405 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 N/A $38 $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) N/A $0 $20 Regions Financial Corp was an Agent Bank until the current portfolio was acquired on June 30, 

2011.

c. Total Used and Unused Commitments N/A $5,424 $6,709

4. Other Consumer 

a. Average Total Loan Balance $2,869 $2,892 $2,923 Includes consumer direct, indirect, other revolving (i.e., overdraft lines) and student loans held 

for sale.

b. Originations $149 $157 $141 Includes direct and student lending origination activity.

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 $0.7MM, or 0.1%, in July to $948MM. The average balance comparison for July versus June was not 

meaningful since the portfolio was acquired on the last day of June. 

The mortgage division originated mortgage loans totaling $483 million in July 2011. Overall production decreased 2.7% from 

the prior month. New purchase originations decreased 10.1% from prior month, and refinancing originations increased from 

the prior month 11.1%. Application activity in July decreased 14.2% as compared to prior month. 

Home Equity average balances declined $99.5MM or 0.7% in July to $13.5B. The HELOAN portfolio declined $6.4MM or 0.4%, 

while HELOC balances declined $93.1MM or 0.8%. Portfolio run-off continues as payoffs/paydowns outpace production.

TREASURY MONTHLY INTERMEDIATION SNAPSHOT

July Other Consumer Lending balances increased by $31MM or 1.1% when compared to June. Balances are being favorably 

impacted by the re-entry of Indirect Lending that generated $94MM in new production for the month, offset by the continued 

run-off of the legacy Indirect Lending portfolio.
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SCHEDULE B: COMMERCIAL LENDING (Millions $)

1. C & I May Jun Jul Key Comments

a. Average Total Loan and Lease Balance $35,837 $35,797 $35,928 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 $2,159 $2,949 $2,068 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 $1,121 $1,703 $1,132 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 $14,777 $14,489 $13,656 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 $928 $1,288 $687 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 $118 $151 $95 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 $12,906 $12,868 $12,920 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 $634 $672 $574 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 $992 -$1,422 $27

b. Asset Backed Securities $0 $30 $52

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 $1,232 $1,208 $1,186 Reflects average margin receivables as recorded on the general ledger.

3. Underwriting

a. Total Equity Underwriting $65 $93 $57 Total equity underwriting activity. Represents Regions' participation percentage.

b. Total Debt Underwriting $612 $1,245 $830 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.

In July, commercial real estate balances decreased $833 million from June levels. While production levels are somewhat 

increasing, they remain far below what we would expect in normal market conditions. Construction starts are at a multigenerational low and developers continue to remain cautious, however, pipelines appear to be rebuilding in the multi-family 

sector. 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.

The Morgan Keegan Equity department participated in 8 offerings during May 2011, 9 during June 2011, and 6 during July 

2011. Gross debt issuance for May, June, and July was $5.5 billion, $9.7 billion, and $7.9 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 NonAgency 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 July 2011 NFIB survey states that reports of positive earnings trends is largely the 

result of price hikes vs. improved sales. As a result, trends are still not supportive of capital spending or hiring. 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 increased in July as compared to June.

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

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

fourth quarter of 2010 and into the first seven months of 2011. The stagnant economy continues to drive more conservative 

leverage positions; however, more robust loan demand is seen in the upper end of the market and in certain industries. 

Outstanding loan balances increased $131 million in July as compared to June levels. Commercial line utilization rates 

increased in July as compared to June.
TREASURY MONTHLY INTERMEDIATION SNAPSHOT

Name of institution: Regions Financial Corporation

Reporting month(s): July 2011

Submission date: August 31, 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 July, new and renewed commitments decreased by $2.1 billion to $4.7 billion for the month, while 

average balances grew $0.2 billion from June to $82.0 billion.

The month over month decrease in new and renewed commitments was driven by a $0.9 billion 

decrease in C&I renewals , a $0.6 billion decrease in C&I commitments and a $0.6 billion decrease in 

Commercial Real Estate renewals.

III. Consumer Lending

A. Mortgage Lending

The mortgage division originated mortgage loans totaling $483 million in July 2011. Overall production 

decreased 2.7% from the prior month. New purchase originations decreased 10.1% from prior month, 

and refinancing originations increased from the prior month 11.1%. Application activity in July 

decreased 14.2% 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%. July originations included approximately 

$26.4 million related to 161 loans refinanced under the Home Affordable Refinance Program.
TREASURY MONTHLY INTERMEDIATION SNAPSHOT

Name of institution: Regions Financial Corporation

Reporting month(s): July 2011

Submission date: August 31, 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 2,550 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 July, Regions completed 66 modifications totaling $8.9 

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

B. Home Equity Lending

Home Equity production decreased 26.5% to $71.6MM from prior month due in part to seasonality and 

decreased 26.8% versus same period prior year. Activities for July 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 $99.5MM or 0.7% in July to $13.5B. The HELOAN 

portfolio declined $6.4MM or 0.4%, while HELOC balances declined $93.1MM 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 $0.7MM, or 

0.1%, in July to $948MM. The average balance comparison for July versus June was not meaningful 

since the portfolio was acquired on the last day of June. 

D. Other Consumer Lending

Other Consumer Lending production decreased 10.2% in July to $141MM from prior month and 

increased 133% versus same period prior year due to our re-entry into Indirect Auto Lending. Other 

Consumer Lending activities for July 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): July 2011

Submission date: August 31, 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 gain momentum. New Ready AdvanceTM production, which is included in the 

$141MM above, totaled $4.6MM in July. Program to date 34,919 accounts have been established. 

Overall, July Other Consumer Lending balances increased by $31MM or 1.1% when compared to June. 

Balances are being favorably impacted by the re-entry of Indirect Lending that generated $94MM 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. (1.97% for Regions vs. 4.52% 

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

than $3.5 billion in mortgages, including $37 million in July 2011. Regions has assisted more than 38,000 

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 2,550 trial period modifications for $384 million and of those 1,858 have been completed for 

$280 million.

IV. Commercial Lending

A. Commercial and Industrial Lending

Loan demand in the middle market, while somewhat soft by historical standards, picked up some 

momentum throughout the fourth quarter of 2010 and into the first seven months of 2011. The 

stagnant economy continues to drive more conservative leverage positions; however, more robust loan 

demand is seen in the upper end of the market and in certain industries. Outstanding loan balances 

increased $131 million in July as compared to June levels. Commercial line utilization rates increased in 

July as compared to June.
TREASURY MONTHLY INTERMEDIATION SNAPSHOT

Name of institution: Regions Financial Corporation

Reporting month(s): July 2011

Submission date: August 31, 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 July 2011 NFIB survey states that reports of 

positive earnings trends is largely the result of price hikes vs. improved sales. As a result, trends are still 

not supportive of capital spending or hiring. 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 

increased in July as compared to June.

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 July totaled 

$27.38 million, which consists of Government and Agency Fixed-Rate Mortgage-Backed Products. 

Asset-Backed security activity in July totaled $52.19 million, which consisted of Non-Agency Commercial 

Mortgage Backed products. 

VI. Equity and Debt Activities at Morgan Keegan

The Morgan Keegan Equity department participated as a co-manager in five secondary equity 

transactions in July and participated in one closed-end fund. The syndicate calendar was active the last 

two weeks of July with 13 IPO’s pricing. The most notable was Dunkin’ Brands which priced above its 
TREASURY MONTHLY INTERMEDIATION SNAPSHOT

Name of institution: Regions Financial Corporation

Reporting month(s): July 2011

Submission date: August 31, 2011

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

5

filing range and traded up in the open market. The IPO backlog remains stable with 122 deals waiting 

for the markets to stabilize. The activity in August seems to be slow, but hopeful to see a strong fourth 

quarter. Debt municipal issuance continues to trail last year’s pace – as of the end of July it was down 

45% from this time in 2010. August is not expected to be better (primarily due to summer, but also 

market turbulence due to US credit rating downgrade by S&P), but we do expect improvement in 

September and for the rest of the year. Corporate issuance has slowed due to seasonality and spread 

volatility. This slow down is expected to continue at least through August.