Filed by Union Planters Corporation
Pursuant to Rule 425 under the Securities Act of 1933 and
deemed filed pursuant to Rule 14a-12 of the Securities Exchange Act of 1934
Subject Companies: Union Planters Corporation (Commission File No. 1-10160)
Regions Financial Corporation (Commission File No. 0-6159)
The following Investor Presentation was given on January 22, 2004:
CREATING A NEW REGIONAL FORCE
IN
BANKING AND FINANCIAL SERVICES
JANUARY 23, 2004
[Regions Logo] [Union Planters Logo]
DISCLAIMER
--------------------------------------------------------------------------------
|X| Statements made in this investor presentation and in oral statements by the
management of Regions Financial Corporation ("Regions" or "RF") and Union
Planters Corporation ("Union Planters" or "UPC"), other than those
containing historical information, are forward-looking statements made
pursuant to the safe-harbor provisions of the Private Securities Litigation
Reform Act of 1995. Such statements include, but are not limited to,
statements about the benefits of the merger between Regions and Union
Planters, including future financial and operating results and Regions' and
Union Planters' plans, objectives, expectations and intentions. Such
statements involve risks and uncertainties that may cause results to differ
materially from those set forth in these statements.
|X| The following factors, among others, could cause actual results to differ
materially from those set forth in the forward-looking statements: the
ability to obtain governmental approvals of the merger on the proposed
terms and schedule; the failure of Regions or Union Planters stockholders
to approve the merger; the risk that Regions and Union Planters may not
have the ability to effect the proposed merger; the risk that the
businesses will not be integrated successfully, including integration of
information systems and retention of key personnel; the risk that the cost
savings and any revenue synergies from the merger may not be fully realized
or may take longer to realize than expected; disruption from the merger
making it more difficult to maintain relationships with clients, employees
or suppliers; increased competition and its effect on pricing, spending,
third-party relationships and revenues; and the risk of new and changing
regulation in the U.S. and internationally. Additional factors that could
cause Regions' and Union Planters' results to differ materially from those
described in the forward-looking statements can be found in the 2002 Annual
Reports on Forms 10-K of Regions and Union Planters, and in the Quarterly
Reports on Forms 10-Q of Regions and Union Planters, filed with the
Securities and Exchange Commission and available at the Securities and
Exchange Commission's internet site (http://www.sec.gov).
|X| Regions and Union Planters undertake no obligation to update these
forward-looking statements to reflect events or circumstances that occur
after the date on which such statements were made.
|X| STOCKHOLDERS ARE URGED TO READ THE JOINT PROXY STATEMENT / PROSPECTUS
REGARDING THE PROPOSED TRANSACTION WHEN IT BECOMES AVAILABLE, BECAUSE IT
WILL CONTAIN IMPORTANT INFORMATION. Stockholders will be able to obtain a
free copy of the joint proxy statement / prospectus, as well as other
filings containing information about Regions and Union Planters, without
charge, at the Securities and Exchange Commission's internet site
(http://www.sec.gov). Copies of the joint proxy statement / prospectus and
the filings with the Securities and Exchange Commission that will be
incorporated by reference in the joint proxy statement / prospectus can
also be obtained, without charge, by directing a request to Jenifer M.
Goforth, Regions Financial Corporation, P.O. Box 10247, Birmingham, AL
35202-0247, telephone: 205-244-2823, or to Richard W. Trigger, Union
Planters Corporation, 6200 Poplar Ave., Memphis, TN 38119, telephone:
901-580-5977. The respective directors and executive officers of Regions
and Union Planters and other persons may be deemed to be participants in
the solicitation of proxies in respect of the proposed merger. Information
regarding Regions' directors and executive officers is available in its
proxy statement filed with the Securities and Exchange Commission by
Regions on April 16, 2003, and information regarding Union Planters'
directors and executive officers is available in its proxy statement filed
with the Securities and Exchange Commission by Union Planters on March 7,
2003. Other information regarding the participants in the proxy
solicitation and a description of their direct and indirect interest, by
security holdings or otherwise, will be contained in the joint proxy
statement/prospectus and other relevant materials to be filed with the
Securities and Exchange Commission when they become available.
2
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STRATEGIC VISION - CREATING A NEW REGIONAL FORCE
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|X| Leading market share in the Mid-South region with high returns and low risk
|X| Meaningful positions in surrounding high-growth markets with significant
opportunities for investment; and
|X| Diversified, well positioned mix of businesses
[x] Leading regional brokerage franchise in the South;
[x] Balanced and focused mortgage business; and
[x] Growing insurance platform
3
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STRATEGY
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|X| Improve capital generation in our high return markets through cost / scale
advantages
|X| Leverage pro forma scale and breadth of the combined organizations to:
|x| Invest in our high growth markets;
|x| Overlay proven ability of Morgan Keegan to leverage enhanced retail
footprint; and
|x| Extract synergies from overlapping business lines
|X| Accelerate credit leverage in Union Planter' franchise
|x| Leverage Regions' proven credit culture and results
|X| Integrate intelligently and carefully by focusing on our customers,
associates, and communities
4
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A LOW RISK TRANSACTION
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|X| Friendly merger
|x| No premium to overcome
|X| Important decisions have been made
|x| Key executive management on board
|x| Other key social issues decided
|X| Integration risk mitigated by:
|x| Conservative cost savings assumptions
|x| Modest branch overlap
|x| Slow and careful approach to cost savings realization - three year
phase-in
|x| Integration experience of combined management team
5
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COMPATIBLE CORPORATE CULTURE / STRATEGY
--------------------------------------------------------------------------------
Regions Union Planters
------- --------------
Similar Customer Base |X| |X|
Approach
Community Banking |X| |X|
Superior Customer Service |X| |X|
Organization
Geography |X| |X|
Business Lines |X| |X|
Uniform Operational Processes |X| |X|
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TRANSACTION SUMMARY
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Name: |X| Regions Financial Corporation
Exchange Ratio: |X| 1.0000x Newco share per Union
Planters share
|X| 1.2346x Newco share per Regions
share
Relative Ownership: |X| 59% Regions / 41% Union Planters
Board of Directors: |X| 50% Regions / 50% Union Planters
Corporate Headquarters: |X| Birmingham, AL
Business Units: |X| Morgan Keegan, headquartered in
Memphis, TN
|X| Union Planters Mortgage,
headquartered in Memphis, TN
Executive Management: |X| CEO - Carl Jones (until June 2005)
when Jack Moore succeeds
|X| Chairman - Carl Jones (until June
2006) when Jack Moore succeeds
Combined Market Cap: |X| $14.3 billion
Dividend: |X| Quarterly dividend of $0.3334 per
Newco share
Pre-Closing Dividends to Regions: |X| Regions pre-closing dividend rate
to increase to $0.4116 / share
per quarter, effective immediately
Termination Fees: |X| 3.9% of transaction value,
respectively
Anticipated Closing: |X| Mid 2004
Due Diligence: |X| Completed
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EXECUTIVE MANAGEMENT
--------------------------------------------------------------------------------
CARL JONES
Chairman & CEO
JACK MOORE ALLEN MORGAN ROBERT GOETHE RICHARD HORSLEY BRIAN JORDAN
President & Morgan Keegan Mortgage Banking COO CFO
CEO Designate & Company, Inc. BOBBY DOXEY
Senior EVP
Transition Team
Leaders
REGIONAL PRESIDENTS
John Fleischauer
Adolfo Henriques
Peter Miller
Steven Schenck
Samuel Upchurch
John White, Jr.
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A NEW REGIONAL FORCE IN BANKING AND FINANCIAL SERVICES
--------------------------------------------------------------------------------
A NEW REGIONAL FORCE IN BANKING AND FINANCIAL SERVICES
DISTRIBUTYOR STRENGTH Chart of States:
5mm Customers Iowa
1,400 Branches Illinois
1,700 ATMs Indiana
1,225 Financial Advisors Missouri
450K Online Customers Kentucky
Virginia
Arkansas
Tennessee
North Carolina
Texas
Louisiana
Mississippi
Alabama
Georgia
South Carolina
Florida
X Regions
O Union Planters
R Morgan Keegan
S Rebsamen
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A NEW REGIONAL FORCE IN BANKING AND FINANCIAL SERVICES
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ENHANCED SCALE AND SCOPE
MARKET CAPITALIZATION (1) TANGIBLE COMMON EQUITY (2)
RANK INSTITUTIONS ($BN) RANK INSTITUTIONS ($BN)
---- ------------------------- ------ ---- ----------------------- ------
1. Citigroup 261.4 1. Citigroup 63.0
2. Bank of America (3) 168.3 2. J.P. Morgan Chase (4) 55.6
3. J.P. Morgan Chase (4) 139.8 3. Bank of America 50.8
4. Wells Fargo 96.9 4. Wells Fargo 21.7
5. Wachovia 61.9 5. Wachovia 20.4
6. U.S. Bancorp 53.6 6. U.S. Bancorp 11.6
7. Fifth Third 32.7 7. National City 8.0
8. National City 21.7 8. SunTrust 8.0
9. SunTrust 20.4 9. Fifth Third 7.6
10. BB&T 19.9 10. BB&T 6.2
11. PNC Financial 15.8 11. KeyCorp 5.8
12. REGIONS / UNION PLANTERS 14.3 12. REGIONS / UNION PLANTERS(5)5.6
13. KeyCorp 13.0 13. Comerica 4.8
14. M&T Bank 11.0 14. PNC 4.1
15. SouthTrust 11.0 15. SouthTrust 3.6
20. REGIONS 8.4 16. REGIONS 3.3
23. UNION PLANTERS 5.9 20. UNION PLANTERS 2.3
Source: SNL Financial, company reports
Notes:
(1) Market data as of January 22, 2004; excludes Mellon, Bank of New York,
Northern Trust, State Street, and Synovus
(2) Top U.S. banks ranked by tangible common equity, financial data as of
9/30/03; excludes Mellon, Bank of New York, State Street and Synovus
(3) Pro forma for FleetBoston transaction, excluding merger adjustments
(4) Pro forma for Bank One transaction, excluding merger adjustments
(5) Reflects combined market capitalizations and tangible common equity of
Regions and Union Planters, excluding merger adjustments
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BALANCED AND DIVERSIFIED BUSINESS MIX
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[X] Fee income revenue equal to 45% of total net revenues
COMBINED REVENUE COMPOSITION (1)
[Pie Chart]
Mortgage Banking (2) 12%
Morgan Keegan (3) 12%
Net Interest Income 55%
Banking & Other (4) 21%
Source: Company reports
Notes:
(1) FY 2003; excludes securities gains/(losses)
(2) Excludes MSR amortization, MSR recovery/(impairment), and income related to
MSR derivatives hedge for Union Planters to equate reporting
(3) Includes investment banking and brokerage and trust income for Regions
(4) Includes bank card services, merchant card services, employment services,
factoring fees, other real estate income and Union Planters Financial
Services
11
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LEADING FRANCHISE IN THE MID-SOUTH
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APPROXIMATELY 60% OF FRANCHISE LOCATED IN THE MID-SOUTH MARKET, WHERE REGIONS
WILL HAVE A LEADING DEPOSIT MARKET SHARE (1)
DEPOSITS DEPOSITS MARKET SHARE
RANK COMPANY ($MM) %
---- ---------------------------------- --------- -----------------------
1. REGIONS / UNION PLANTERS $35,590 9.0%
2. SUNTRUST 24,778 6.3
3. BANK OF AMERICA 23,613 6.0
4. AMSOUTH 21,777 5.5
5. WACHOVIA 20,026 5.1
6. SOUTHTRUST 16,180 4.1
7. FIRST TENNESSEE 15,390 3.9
8. SYNOVUS 12,157 3.1
9. HIBERNIA 11,502 2.9
10. BANK ONE 9,076 2.3
Source: SNL Financial
Note:
(1) Includes Alabama, Arkansas, Georgia, Louisiana, Mississippi and Tennessee
12
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MID-SOUTH PROFILE
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|X| 29.1 million total population |X| 11.1 million households
|X| 1.1 million businesses |X| 6.0% overall projected
household growth
TOP MID-SOUTH MSAS TOP MID-SOUTH MSAS
MEDIAN HOUSEHOLD INCOME PROJECTED HOUSEHOLD INCOME GROWTH
[Bar Graph] [Bar Graph]
Atlanta: $59,395 Atlanta: 14.6%
New Orleans: $39,375 New Orleans: 12.4%
Nashville: $49,740 Nashville: 17.3%
Memphis: $45,698 Memphis: 18.0%
Birmingham: $44,759 Birmingham: 16.5%
Mid-South (1): $47,539 Mid-South (1): 14.5%
US Average: $46,868 US Average: 13.6%
Source: SNL Financial
Note:
(1) All MSAs in Mid-South with greater than 100,000 households
13
[Regions Logo] [Union Planters Logo]
WE WILL INVEST IN OUR KEY GROWTH MARKETS
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APPROXIMATELY 50% OF FRANCISE IN MARKETS WITH HIGH GROWTH / INVESTMENT
POTENTIAL (1)
TOTAL DEPOSITS
STATE / MSA ($MM) COMMENTS
------------------------------- ---------------- ----------------------------------------------------------------------
Florida $6,907 |X| #6 pro forma rank in Florida, with 7.0% market share
Georgia 5,783 |X| Principally Northern Georgia / Atlanta focused (#5 pro forma
rank in Georgia with 6.4% market share)
Memphis 4,153 |X| #2 pro forma rank with 17.3% market share
St. Louis 3,281 |X| #4 pro forma rank with 6.7% market share;
good wealth demographics
Texas 2,192 |X| Located primarily in Houston, Austin, and East Texas
Nashville 1,565 |X| #4 pro forma rank with 7.7% market share
The Carolinas 983 |X| MSA-focused franchises (Charlotte, Greenville)
Indianapolis 856 |X| Strong wealth characteristics and above average growth
Source: SNL Financial
Note:
(1) Percent of franchise based on combined total deposits
14
[Regions Logo] [Union Planters Logo]
ASSET QUALITY LEVERAGE
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REGIONS' STRONG CREDIT CULTURE ACCELERATES CREDIT LEVERAGE IN
UNION PLANTERS' FRANCHISE
CREDIT QUALITY RATIOS (1)
UNION
(DOLLARS IN MILLIONS) REGIONS PLANTERS COMBINED
----------------------------- --------- ---------- ----------
Allowance $454 $331 $785
NPLs 251 210 461
NPAs 303 262 565
Allowance / Loans 1.41% 1.50% 1.45%
Allowance / NPAs 150 126 139
NPAs / Assets 0.62 0.82 0.70
NCOs / Avg. Loans 0.33 0.89 0.56
PRE-TAX NET INCOME / EPS IMPACT FROM
IMPROVEMENT IN UNION PLANTERS' CREDIT QUALITY
[Bar Graph]
10bps: $22mm - 1.6% of Pro Forma EPS
20bps: $44mm - 3.2% of Pro Forma EPS
30bps: $67mm - 4.9% of Pro Forma EPS
---------------------------------------
Net Charge-Off Ratio Improvement
Note:
(1) As of and for year ended 12/31/03
15
[Regions Logo] [Union Planters Logo]
MORGAN KEEGAN - LEADING REGIONAL BROKERAGE PLATFORM
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MORGAN KEEGAN
-----------------------------------------
|X| 147 brokerage locations in 15 states
and Canada
|X| 900 financial advisors
|X| Brokerage assets of $40 billion (1)
|X| Presence in 90 Regions bank branches
+
UNION PLANTERS
-------------------------------------------
|X| 717 bank branches
|X| Approx. 325 series 6 / 7 brokers
|X| Brokerage assets of $2 billion (1)
|X| Potential for Morgan Keegan expansion
into the Union Planters branch network
MORGAN KEEGAN
FOOTPRINT UNION PLANTERS FOOTPRINT
--------------------------------------------------------------------------------
States (2) Offices Branches
---------- ------- --------
GA 24 -
AL 23 19
LA 18 23
AR 17 24
TN 14 174
TX 14 15
FL 16 72
KY 6 27
MS 1 111
IL 1 81
MO - 79
IN - 71
IA - 21
Notes:
(1) Total assets under management of $64 billion for Regions and $5 billion
for Union Planters
(2) Not included are offices in MA (1), NC (6), NY (2), PA (1), VA (2) and
Canada (1)
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[Regions Logo] [Union Planters Logo]
PROVEN ABILITY TO LEVERAGE ENHANCED RETAIL FOOTPRINT
--------------------------------------------------------------------------------
AVERAGE ASSETS PER REGIONS RETAIL REVENUE PER REGIONS
FINANCIAL ADVISOR FINANCIAL ADVISOR
(DOLLARS IN MILLIONS) (DOLLARS IN THOUSANDS)
[Bar Graph] [Bar Graph]
2001: $43 2001: $239
2002: $44 2002: $320
2003: $59 2003: $362
17% CAGR 23% CAGR
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[Regions Logo] [Union Planters Logo]
A BALANCED MORTGAGE BUSINESS WITH SCALE
--------------------------------------------------------------------------------
PRODUCT Gov't (8%), Secondary Mkt Conforming (62%),
DIVERSIFICATION Portfolio (15%), Non-Conforming (15%)
MULTIPLE Retail (38%), Correspondent (8%),
CHANNELS Agency Conforming Wholesale (39%),
Non-Conforming Wholesale (15%)
GEOGRAPHIC 22 states
DISTRIBUTION
LOAN ORIGINATION $25 billion, combined top 20 rank (1)
LOAN SERVICING $44 billion, combined top 20 rank (1)
COMBINED MORTGAGE BANKING
REVENUE CONTRIBUTION (1,2)
[Pie Graph]
88%
12%
Notes:
(1) FY 2003
(2) Excludes MSR amortization, MSR recovery/(impairment), and income related
to MSR derivatives hedge for Union Planters
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[Regions Logo] [Union Planters Logo]
IMPROVED MORTGAGE BANKING PROFITABILITY
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EXPENSE |X| Greater servicing efficiencies through economies of scale
RATIONALIZATION |X| 20th largest servicing platform in the U.S.
POTENTIAL |X| Lever Union Planters distribution platform to sell
REVENUE Equifirst product
ENHANCEMENTS |X| Secondary marketing execution pick-up
RIGHTSIZING |X| Focus origination / servicing on core footprint
OPPORTUNITY |X| Evaluate feasibility of selling select servicing outside
the expanded footprint
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[Regions Logo] [Union Planters Logo]
PRO FORMA FINANCIAL
IMPACT
TRANSACTION ASSUMPTIONS
--------------------------------------------------------------------------------
Exchange Ratio: |X| 1.0000x Newco Share per Union Planters Share
|X| 1.2346x Newco Share per Regions Share
Earnings Estimates: |X| 2004 of $3.06 and 2005 of $3.31 for Regions (1)
|X| 2004 of $2.25 (2) and 2005 of $2.54 (1) for Union
Planters
Est. Cost Savings: |X| $200 million pre-tax
|X| Phased-in 15% in 2004, 60% in 2005,
85% in 2006, 100% thereafter
|X| 7.0% of the combined operating expense base
Est. Restructuring
Costs: |X| $300 million pre-tax
Revenue Enhancements: |X| None assumed
Required Divestitures: |X| None
Core Deposit
Intangible: |X| 1.75% of Union Planters' core deposits
|X| Amortized 7 years on an accelerated basis
Anticipated Closing |X| Mid 2004
Notes:
(1) Based on average I/B/E/S earnings estimates
(2) Based on management guidance
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PRO FORMA FINANCIAL RESULTS
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2005E
------------------------------------
60% 100%
(DOLLARS IN MILLIONS, EXCEPT PER SHARE DATA) 2004E PHASE-IN PHASE-IN
--------------------------------------------- ------- ---------- ----------
Regions Stand Alone Net Income $682 $716 $716
Union Planters Stand Alone Net Income 214 472 472
Cost Savings (After-tax) 19 78 130
Other Adjustments (After-tax)(1) (25) (43) (45)
Pro Forma Net Income ------- ---------- ----------
889 1,222 1,272
------- ---------- ----------
Pro Forma Avg. Fully-Diluted Shares 368.6 452.7 452.7
Pro Forma GAAP EPS $2.41 $2.70 $2.81
Pro Forma Cash EPS 2.50 2.82 2.93
IMPACT TO REGIONS
ACCRETION / (DILUTION) TO GAAP EPS (2.6)% 0.7% 4.8%
ACCRETION / (DILUTION) TO CASH EPS 0.8% 5.1% 9.2%
IMPACT TO UNION PLANTERS
ACCRETION / (DILUTION) TO GAAP EPS 7.2% 6.3% 10.6%
ACCRETION / (DILUTION) TO CASH EPS 7.8% 8.1% 12.3%
Note:
(1) CDI amortization, net of Union Planters' existing CDI amortization, and
funding of restructuring costs (4.50% pre-tax).
Excludes impact of purchase accounting mark to market adjustments
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REALIZABLE COST SAVINGS
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|X| Estimated cost savings already identified
|X| $200 million or 7% of combined expense base
|X| Phased-in 15% in 2004, 60% in 2005, 85% in 2006, and 100%
thereafter
|X| Anticipated $300 million pre-tax restructuring costs
|X| Pro forma efficiency ratio (excluding Morgan Keegan) decreases from
58.0% to 53.1%
SOURCES OF COST SAVINGS / RESTRUCTURING COSTS
FULLY PHASED-IN COST
(DOLLARS IN MILLIONS) SAVINGS RESTRUCTURING COSTS
------------------------------------------------ ---------------------- ---------------------
Personnel $75 $100
Facilities / Branches 35 30
Systems / Other 90 170
Total (Pre-Tax) --- ----
200 300
--- ----
Pre-Tax Restructuring Costs as a % of Synergies - 150%
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ATTRACTIVE INVESTMENT
OPPORTUNITY
SIGNIFICANT UPSIDE VALUATION POTENTIAL
--------------------------------------------------------------------------------
PRO FORMA PEER
REGIONS / UPC GROUP (1) DIFFERENTIAL
------------- -------- ------------
Implied Multiple to: (2)
2004E EPS (3) 12.9x 13.6x 5%
2005E EPS (4) 11.1 12.6 14
Book Value 1.40 2.10 50
Tangible Book Value 2.76 3.08 12
Dividend Yield 4.28% 3.52% nm
Institutional Shareholders (5) 31.3% 49.6% nm
Notes:
(1) Median of BBT, KEY, MTB, NCC, PNC, SOTR and STI
(2) As of January 22, 2004
(3) Cost savings phased-in 15%
(4) Includes fully phased-in cost savings
(5) Shown as a percent of total shareholders
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CREATING VALUE FOR ALL SHAREHOLDERS
--------------------------------------------------------------------------------
$200 Million Annual Pre-Tax Cost Savings
~$1.1 Billion Value (1)
REGIONS UNION PLANTERS
Ownership: 59% 41%
Share of Cost Savings: ~$650 million ~$450 million
Value Creation: ~8% ~8%
Note:
(1) Utilizes management's estimated cost savings of $200 million pre-tax with
an 11% discount rate, 3% perpetuity growth rate; less impact of estimated
restructuring costs which is assumed to be fully expensed at transaction
close; includes funding of restructuring costs (4.50%) as per management
estimates
26
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CONCLUSION
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|X| Cash accretive to all shareholders in 2004
|X| Accelerated EPS growth
|X| Significantly enhanced scale and scope
|X| Attractive market positions in key MSAs
|X| Enhanced profitability ratios
|X| Low risk / high valuation potential transaction
|X| Attractive dividend yield
|X| Experienced management team focused on execution
CREATES SIGNIFICANT FRANCHISE AND SHAREHOLDER VALUE
27
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APPENDIX
COMBINED BALANCE SHEET
--------------------------------------------------------------------------------
For the Period Ended December 31, 2003
(Dollars in Millions) REGIONS UNION PLANTERS COMBINED (1)
------------------------------------ ------- -------------- ------------
ASSETS:
Cash and Investment Securities $11,018 $6,702 $17,720
Net Loans 31,730 21,665 53,395
Goodwill and Intangibles 1,083 911 1,994
Other Assets 4,767 2,633 7,400
------- ------ -------
Total Assets 48,598 31,911 80,509
======= ====== =======
LIABILITIES AND EQUITY:
Deposits 32,733 23,146 55,879
Borrowings 10,139 5,076 15,215
Other Liabilities 1,274 623 1,897
------- ------ -------
Total Liabilities 44,146 28,845 72,991
Capital Securities - 10 10
Common Equity 4,452 3,056 7,508
------- ------ -------
Total Liabilities and Equity 48,598 31,911 80,509
======= ====== =======
RATIOS:
TCE / Tangible Assets 7.10% 6.92% 7.03%
Note:
(1) Does not include purchase accounting adjustments and/or merger
synergies/costs
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LOAN COMPOSITION
--------------------------------------------------------------------------------
REGIONS UNION PLANTERS COMBINED
------------------ ------------------ ------------------
Total % of Total % of Total % of
(Dollars in Millions) 12/31/03 Total 12/31/03 Total 12/31/03 Total
----------------------- -------- ----- -------- ----- -------- -----
Commercial $10,182 30.5% $5,861 25.6% $16,044 28.5%
Residential Mortgages 8,319 24.9 5,578 24.4 13,896 24.7
Other Real Estate Loans 5,879 17.6 6,470 28.3 12,349 21.9
Construction 3,485 10.4 2,304 10.1 5,789 10.3
Consumer 4,320 12.9 1,807 7.9 6,127 10.9
------- ------ ------- ------ ------- ------
TOTAL LOANS $32,184 96.3% $22,020 96.4% $54,205 96.3%
------- ------ ------- ------ ------- ------
Held for Sale 1,242 3.7 832 3.6 2,074 3.7
------- ------ ------- ------ ------- ------
TOTAL GROSS LOANS $33,426 100.0% $22,852 100.0% $56,279 100.0%
======= ====== ======= ====== ======= ======
Yield on Loans 5.33% 5.45% 5.38%
30
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DEPOSIT COMPOSITION
--------------------------------------------------------------------------------
REGIONS UNION PLANTERS COMBINED
------------------ ------------------ ------------------
Total % of Total % of Total % of
(Dollars in Millions) 12/31/03 Total 12/31/03 Total 12/31/03 Total
----------------------- -------- ----- -------- ----- -------- -----
Interest-free Deposits $5,718 17.5% $5,384 23.3% $11,102 19.9%
Interest-bearing Checking 2,648 8.1 3,467 15.0 6,115 10.9
Savings 1,421 4.3 1,476 6.4 2,897 5.2
Money Market 10,642 32.5 5,660 24.5 16,302 29.2
Other Time Deposits 9,004 27.5 5,582 24.1 14,586 26.1
Jumbo Deposits 3,300 10.1 1,577 6.8 4,877 8.7
------- ------ ------- ------ ------- ------
TOTAL LOANS $32,733 100.0% $23,146 100.0% $55,879 100.0%
======= ====== ======= ====== ======= ======
Cost of Total Deposits 1.08% 1.00% 1.05%
31
[Regions Logo] [Union Planters Logo]
REALISTIC COST SAVINGS COMPARED TO OTHER MERGERS
--------------------------------------------------------------------------------
Cost Savings as % of Combined Expense Base
[Bar Graph]
Comerica/Manufactures Nat'l 15%
Star/Firstar 15%
Nat'l Commerce/CCB 12%
BB%T/Southern Nat'l 10%
Bank One/First Chicago NBD 10%
NationsBank/Bank America 10%
AVERAGE 10%
First Union/Wachovia 8%
Wells Fargo/Norwest 8%
Fleet/BankBoston 8%
REGIONS/UNION PLANTERS 7%
First Chicago/NBD Corp. 6%
Firstar/US Bancorp 5%
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TOP TEN PRO FORMA MARKETS
--------------------------------------------------------------------------------
Branches Deposits Mkt Share Rank Cumulative
State (No.) ($mm) (%) (No.) % of Franchise
------------- -------- -------- --------- ----- --------------
Alabama 197 10,310 17.1 1 19.0
Tennessee 222 8,495 9.8 3 34.7
Florida 144 6,907 2.6 6 47.5
Georgia 137 5,783 4.6 5 58.2
Arkansas 118 4,500 11.0 1 66.5
Louisiana 110 4,037 7.7 4 74.0
Illinois 75 2,665 1.0 17 78.9
Missouri 78 2,615 2.9 6 83.7
Mississippi 112 2,465 7.5 4 88.3
Texas 58 2,192 0.7 16 92.3
MSA
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Memphis 58 4,153 17.3 2 7.7
Miami 47 3,455 6.2 7 14.1
St. Louis 77 3,281 6.7 4 20.2
Atlanta 54 2,531 3.4 6 24.9
Mobile 40 2,459 36.9 1 29.4
Birmingham 37 2,051 11.0 4 33.2
Little Rock 31 1,797 20.9 1 36.5
Nashville 44 1,565 7.7 4 39.4
Montgomery 23 1,492 33.6 1 42.2
New Orleans 32 1,357 7.4 4 44.7
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