Regions Financial (RF) 8-K Regions Reports Fourth Quarter 2007 Earnings

Exhibit 99.2

FINANCIAL SUPPLEMENT TO FOURTH QUARTER 2007 EARNINGS RELEASE

Summary

Quarterly earnings of $0.10 per diluted share (GAAP); excluding $0.14 in after-tax merger charges, earnings were $0.24 (non-GAAP - see page 19 for additional details)

• Fourth quarter earnings were significantly affected by aggressive actions taken to address the decline in residential-related real estate demand and values within footprint

• Earnings reflect: $358 million loan loss provision - $251 million above charge-offs; non-merger charges of $134 million - see page 12 of supplement for details

Allowance for credit losses increases to 1.45 percent; higher charge-offs/NPAs

• Allowance for credit losses increases to 1.45 percent of loans at December 31, 2007 from 1.19 percent at September 30, 2007

• Net charge-offs of $107.5 million (annualized 0.45 percent of average loans versus 0.27 percent in 3Q07)

• Non-performing assets increased to $864.1 million or 0.90 percent of loans and OREO versus 0.62 percent at September 30, 2007

• Residential builder portfolio primary driver of non-performing asset increase

• Expect additional charge-off and non-performing asset increases in 2008 as housing downturn continues

Aggressively managing problematic residential builder portfolio

• Thoroughly reviewed $7.2 billion residential builder portfolio and increased related loan loss reserves accordingly

• Approximately $850 million has been identified for transfer into special assets during 4Q07

• Established a specifically tailored and detailed work-out program

• Shifted experienced real estate lenders to oversee work-out execution and actively manage the portfolio

• Balance of diversified $95 billion loan portfolio generally performing satisfactorily, including residential first mortgage and home equity portfolios

Merger integration 100 percent complete

• Successfully completed all branch system consolidations— common customer platform in place, with second-to-none product set, industry leading support systems and highly trained personnel

• Achieved approximately 87 percent customer retention rate throughout integration —above that of the typical bank not undergoing a merger

• Associates’ full energy now focused on handling today’s industry challenges and on successfully executing our newly adopted three-year strategic plan

Cost saves continue to exceed expectations

• Realized $108 million in merger cost saves during 4Q07, bringing the year-to-date total to $345 million versus $300 million target

• Likely to exceed targeted $500 million 2Q08 run-rate

• Pre-tax merger-related charges of $150.2 million in 4Q07

Strong fee-based revenue largely offsets softer spread revenue

• Non-interest revenue, excluding securities transactions, up an annualized 16 percent linked-quarter

• Net interest income down slightly, reflecting 13 basis points linked-quarter net interest margin drop to 3.61 percent

• Modest loan growth, an annualized 2 percent on average, linked-quarter

Morgan Keegan achieves record quarterly revenue

• Revenue rose to $350.9 million 4Q07, $32.5 million above 3Q07

• Outstanding quarter for fixed income capital markets due to higher customer demand

• Loss on MK mutual funds investment was driver of decline in 4Q07 net income

• Investment banking and M&A-related deal flow was strong during the quarter and will continue into 2008

Capital position remains strong

• Tangible equity to tangible assets of 5.88 percent at December 31, 2007, compared to 6.02 percent as of September 30, 2007

• Repurchased 3.8 million common shares in 4Q07

FINANCIAL SUPPLEMENT TO

FOURTH QUARTER 2007 EARNINGS RELEASE

PAGE 2

Regions Financial Corporation and Subsidiaries

Consolidated Balance Sheets

(Unaudited)

($ amounts in thousands)

	12/31/07			9/30/07			6/30/07			3/31/07			12/31/06
Assets:
Cash and due from banks	$	3,720,365		$	2,902,340		$	2,796,196		$	2,991,232		$	3,550,742
Interest-bearing deposits in other banks		31,706			29,895			73,963			37,365			270,601
Federal funds sold and securities purchased under agreements to resell		1,177,170			706,378			1,158,771			1,154,994			896,075
Trading account assets		907,300			1,355,007			1,606,130			1,490,374			1,442,994
Securities available for sale		17,318,074			16,957,077			17,414,407			18,361,050			18,514,332
Securities held to maturity		50,935			49,559			44,452			46,008			47,728
Loans held for sale		720,924			792,142			1,596,425			1,175,650			3,308,064
Loans held for sale - divestitures		—			—			—			—			1,612,237
Margin receivables		504,614			525,953			590,811			555,580			570,063
Loans, net of unearned income		95,378,847			94,373,632			94,014,488			94,168,260			94,550,602
Allowance for loan losses		(1,321,244	)		(1,070,716	)		(1,061,873	)		(1,056,260	)		(1,055,953	)
Net loans		94,057,603			93,302,916			92,952,615			93,112,000			93,494,649
Premises and equipment, net		2,610,851			2,473,339			2,422,256			2,372,800			2,398,494
Interest receivable		615,711			664,974			626,514			627,918			666,410
Excess purchase price		11,491,673			11,453,078			11,243,287			11,191,675			11,175,647
Mortgage servicing rights (MSRs)		321,308			377,201			400,056			367,222			374,871
Other identifiable intangible assets		759,832			804,328			809,827			914,410			957,834
Other assets		6,753,651			5,841,002			3,886,762			3,669,790			4,088,280
Total Assets	$	141,041,717		$	138,235,189		$	137,622,472		$	138,068,068		$	143,369,021
Liabilities and Stockholders’ Equity:
Deposits:
Non-interest-bearing	$	18,417,266		$	18,834,856		$	19,136,419		$	19,942,928		$	20,175,482
Non-interest-bearing - divestitures		—			—			—			—			533,295
Interest-bearing		76,357,702			74,605,074			75,919,972			75,393,720			78,281,120
Interest-bearing - divestitures		—			—			—			—			2,238,072
Total deposits		94,774,968			93,439,930			95,056,391			95,336,648			101,227,969
Borrowed funds:
Short-term borrowings:
Federal funds purchased and securities sold under agreements to repurchase		8,820,235			8,063,739			8,207,250			8,159,929			7,676,254
Other short-term borrowings		2,299,887			1,727,346			1,882,114			2,356,205			1,990,817
Total short-term borrowings		11,120,122			9,791,085			10,089,364			10,516,134			9,667,071
Long-term borrowings		11,324,790			10,817,491			9,287,926			8,593,117			8,642,649
Total borrowed funds		22,444,912			20,608,576			19,377,290			19,109,251			18,309,720
Other liabilities		3,998,808			4,340,334			3,492,404			3,308,003			3,129,878
Total Liabilities		121,218,688			118,388,840			117,926,085			117,753,902			122,667,567
Stockholders’ equity:
Common stock		7,347			7,346			7,344			7,320			7,303
Additional paid-in capital		16,544,651			16,527,540			16,500,425			16,447,358			16,339,726
Retained earnings		4,439,505			4,632,033			4,489,078			4,289,354			4,493,245
Treasury stock		(1,370,761	)		(1,270,922	)		(1,063,779	)		(368,837	)		(7,548	)
Accumulated other comprehensive income (loss)		202,287			(49,648	)		(236,681	)		(61,029	)		(131,272	)
Total Stockholders’ Equity		19,823,029			19,846,349			19,696,387			20,314,166			20,701,454
Total Liabilities & SE	$	141,041,717		$	138,235,189		$	137,622,472		$	138,068,068		$	143,369,021

FINANCIAL SUPPLEMENT TO

FOURTH QUARTER 2007 EARNINGS RELEASE

PAGE 3

Regions Financial Corporation and Subsidiaries

Consolidated Statements of Income (1)(6)

(Unaudited)

($ amounts in thousands, except per share data)

	Quarter Ended
	12/31/07			9/30/07			6/30/07			3/31/07			12/31/06
Interest income on:
Loans, including fees	$	1,674,690		$	1,742,172		$	1,734,278		$	1,773,404		$	1,587,494
Securities:
Taxable		202,669			210,932			218,123			224,319			200,917
Tax-exempt		9,361			10,020			10,831			11,048			9,807
Total securities		212,030			220,952			228,954			235,367			210,724
Loans held for sale		10,090			12,302			21,363			48,342			35,935
Federal funds sold and securities purchased under agreements to resell		17,032			18,154			17,162			16,373			15,877
Trading account assets		11,822			10,271			15,785			15,620			22,608
Margin receivables		8,160			8,754			9,289			9,610			9,576
Time deposits in other banks		344			515			649			1,179			1,376
Total interest income		1,934,168			2,013,120			2,027,480			2,099,895			1,883,590
Interest expense on:
Deposits		625,600			673,585			677,239			687,459			597,255
Short-term borrowings		107,077			115,092			116,637			120,661			102,984
Long-term borrowings		157,279			144,662			128,269			122,737			123,199
Total interest expense		889,956			933,339			922,145			930,857			823,438
Net interest income		1,044,212			1,079,781			1,105,335			1,169,038			1,060,152
Provision for loan losses		358,000			90,000			60,000			47,000			59,825
Net interest income after provision for loan losses		686,212			989,781			1,045,335			1,122,038			1,000,327
Non-interest income:
Service charges on deposit accounts		292,709			288,296			297,638			284,097			247,591
Brokerage and investment banking		227,808			209,413			207,372			186,195			199,697
Trust department income		60,798			62,449			64,590			63,482			51,510
Mortgage income		28,047			29,806			40,830			37,021			44,134
Securities gains (losses), net		(45	)		23,994			(32,806	)		304			(20	)
Other		123,661			115,186			119,177			125,813			94,657
Total non-interest income		732,978			729,144			696,801			696,912			637,569
Non-interest expense:
Salaries and employee benefits		678,859			581,425			602,646			608,939			606,165
Net occupancy expense		106,252			120,753			93,175			93,531			90,968
Furniture and equipment expense		80,346			74,127			74,048			72,809			59,306
Impairment (recapture) of MSR’s		23,000			20,000			(38,000	)		1,000			27,000
Other		459,799			349,089			325,866			332,687			307,761
Total non-interest expense (2)		1,348,256			1,145,394			1,057,735			1,108,966			1,091,200
Income before income taxes from continuing operations		70,934			573,531			684,401			709,984			546,696
Income taxes		(181	)		179,291			230,669			235,908			174,701
Income from continuing operations		71,115			394,240			453,732			474,076			371,995
Loss from discontinued operations before income taxes		(765	)		(122	)		(682	)		(215,818	)		(17,718	)
Income tax benefit from discontinued operations		(291	)		(46	)		(259	)		(74,723	)		(7,274	)
Loss from discontinued operations, net of tax		(474	)		(76	)		(423	)		(141,095	)		(10,444	)
Net income	$	70,641		$	394,164		$	453,309		$	332,981		$	361,551
Weighted-average shares outstanding–during quarter:
Basic (3)		695,518			700,589			709,322			726,921			638,830
Diluted (3)		696,895			704,485			715,564			734,534			646,372
Actual shares outstanding–end of quarter (3)		693,636			697,332			704,398			721,825			730,076
Earnings per share from continuing operations (4):
Basic	$	0.10		$	0.56		$	0.64		$	0.65		$	0.58
Diluted	$	0.10		$	0.56		$	0.63		$	0.65		$	0.58
Earnings per share from discontinued operations (4):
Basic	$	0.00		$	0.00		$	0.00		$	(0.19	)	$	(0.02	)
Diluted	$	0.00		$	0.00		$	0.00		$	(0.19	)	$	(0.02	)
Earnings per share (4):
Basic	$	0.10		$	0.56		$	0.64		$	0.46		$	0.57
Diluted	$	0.10		$	0.56		$	0.63		$	0.45		$	0.56
Cash dividends declared per share (5)	$	0.38		$	0.36		$	0.36		$	0.36		$	0.35
Taxable equivalent net interest income from continuing operations	$	1,050,419		$	1,086,575		$	1,111,969		$	1,175,546		$	1,094,092

See notes to the Consolidated Statements of Income on page 5

FINANCIAL SUPPLEMENT TO

FOURTH QUARTER 2007 EARNINGS RELEASE

PAGE 4

Regions Financial Corporation and Subsidiaries

Consolidated Statements of Income (1)(6)

(Unaudited)

($ amounts in thousands, except per share data)

	Year Ended December 31
	2007			2006
Interest income on:
Loans, including fees	$	6,924,544		$	4,792,906
Securities:
Taxable		856,043			606,665
Tax-exempt		41,260			33,679
Total securities		897,303			640,344
Loans held for sale		92,097			69,444
Federal funds sold and securities purchased under agreements to resell		68,721			51,445
Trading account assets		53,498			54,538
Margin receivables		35,813			37,541
Time deposits in other banks		2,687			2,900
Total interest income		8,074,663			5,649,118
Interest expense on:
Deposits		2,663,883			1,680,167
Short-term borrowings		459,467			275,497
Long-term borrowings		552,947			385,152
Total interest expense		3,676,297			2,340,816
Net interest income		4,398,366			3,308,302
Provision for loan losses		555,000			142,373
Net interest income after provision for loan losses		3,843,366			3,165,929
Non-interest income:
Service charges on deposit accounts		1,162,740			721,998
Brokerage and investment banking		830,788			669,448
Trust department income		251,319			158,161
Mortgage income		135,704			178,688
Securities gains (losses), net		(8,553	)		8,123
Other		483,837			293,302
Total non-interest income		2,855,835			2,029,720
Non-interest expense:
Salaries and employee benefits		2,471,869			1,859,851
Net occupancy expense		413,711			254,628
Furniture and equipment expense		301,330			157,897
Impairment of MSR’s		6,000			16,000
Other		1,467,441			915,652
Total non-interest expense (2)		4,660,351			3,204,028
Income before income taxes from continuing operations		2,038,850			1,991,621
Income taxes		645,687			619,100
Income from continuing operations		1,393,163			1,372,521
Loss from discontinued operations before income taxes		(217,387	)		(32,605	)
Income tax benefit from discontinued operations		(75,319	)		(13,229	)
Loss from discontinued operations, net of tax		(142,068	)		(19,376	)
Net income	$	1,251,095		$	1,353,145
Weighted-average shares outstanding— year-to-date:
Basic (3)		707,981			501,681
Diluted (3)		712,743			506,989
Actual shares outstanding— end of quarter (3)		693,636			730,076
Earnings per share from continuing operations (4):
Basic	$	1.97		$	2.74
Diluted	$	1.95		$	2.71
Earnings per share from discontinued operations (4):
Basic	$	(0.20	)	$	(0.04	)
Diluted	$	(0.20	)	$	(0.04	)
Earnings per share (4):
Basic	$	1.77		$	2.70
Diluted	$	1.76		$	2.67
Cash dividends declared per share	$	1.46		$	1.40
Taxable equivalent net interest income from continuing operations	$	4,424,509		$	3,423,490

See notes to the Consolidated Statements of Income on page 5.

FINANCIAL SUPPLEMENT TO

FOURTH QUARTER 2007 EARNINGS RELEASE

PAGE 5

(1) Regions Financial Corporation and AmSouth Bancorporation merged effective November 4, 2006. The merger was accounted for as a purchase of AmSouth by Regions. As a result, periods ending prior to November 4, 2006, reflect legacy Regions data on a stand-alone basis

(2) Merger-related charges total $150.2 million in 4Q07, $91.8 million in 3Q07, $59.9 million in 2Q07, $49.0 million in 1Q07, and $87.6 million in 4Q06.

For the full year 2007, $350.9 million of merger charges are included in non-interest expense. See pages 12 and 19 for additional detail

(3) On November 4, 2006, 277 million shares were issued in the AmSouth transaction; as a result, the weighted-average shares outstanding calculation for the 4Q06 includes approximately one month of pre-AmSouth merger share count and two months of post-AmSouth merger share count

(4) Certain per share amounts may not appear to reconcile due to rounding

(5) In 4Q07, in addition to the dividend paid, the Board of Directors declared a $0.38 per share dividend payable January 2, 2008

(6) Certain amounts in the prior periods have been reclassified to reflect current period presentation

FINANCIAL SUPPLEMENT TO

FOURTH QUARTER 2007 EARNINGS RELEASE

PAGE 6

Regions Financial Corporation and Subsidiaries

Consolidated Average Daily Balances and Yield/Rate Analysis Including Discontinued Operations (1) (2)

($ amounts in thousands; yields on taxable-equivalent basis)

	Quarter Ended
	12/31/07							9/30/07							6/30/07							3/31/07							12/31/06
	Average Balance			Income/ Expense		Yield/ Rate		Average Balance			Income/ Expense		Yield/ Rate		Average Balance			Income/ Expense		Yield/ Rate		Average Balance			Income/ Expense		Yield/ Rate		Average Balance			Income/ Expense		Yield/ Rate
Assets
Interest-earning assets:
Interest-bearing deposits in other banks	$	31,039		$	344	4.40	%	$	51,740		$	515	3.95	%	$	39,767		$	649	6.55	%	$	80,520		$	1,179	5.94	%	$	125,467		$	1,376	4.35	%
Federal funds sold and securities purchased under agreement to resell		1,093,155			17,032	6.18	%		1,141,666			18,154	6.31	%		1,124,636			17,162	6.12	%		1,061,976			16,373	6.25	%		1,098,535			15,878	5.73	%
Trading account assets		1,188,273			12,020	4.01	%		1,213,485			10,385	3.40	%		1,555,939			15,963	4.12	%		1,475,097			15,911	4.37	%		1,419,868			23,168	6.47	%
Securities:
Taxable		16,407,051			202,669	4.90	%		16,545,332			210,932	5.06	%		17,245,705			218,123	5.07	%		17,748,027			224,319	5.13	%		16,263,163			201,354	4.91	%
Tax-exempt		724,152			14,300	7.83	%		722,663			15,235	8.36	%		737,522			16,430	8.94	%		763,297			16,786	8.92	%		648,747			14,540	8.89	%
Loans held for sale		663,284			10,089	6.03	%		779,918			12,303	6.26	%		1,323,479			21,363	6.47	%		3,427,285			67,196	7.95	%		2,689,490			50,113	7.39	%
Loans held for sale-divestitures		—			—	—			—			—	—			—			—	—			1,150,548			21,520	7.59	%		1,042,964			20,087	7.64	%
Margin receivables		541,915			8,160	5.97	%		521,497			8,754	6.66	%		532,037			9,289	7.00	%		554,896			9,610	7.02	%		540,805			9,576	7.03	%
Loans, net of unearned income		94,783,954			1,675,761	7.01	%		94,309,811			1,743,636	7.34	%		94,051,511			1,735,135	7.40	%		94,338,760			1,745,475	7.50	%		83,058,620			1,591,768	7.60	%
Total interest-earning assets		115,432,823		$	1,940,375	6.67	%		115,286,112		$	2,019,914	6.95	%		116,610,596		$	2,034,114	7.00	%		120,600,406		$	2,118,369	7.12	%		106,887,659		$	1,927,860	7.16	%
Allowance for loan losses		(1,070,916	)						(1,062,432	)						(1,056,832	)						(1,061,769	)						(985,310	)
Cash and due from banks		2,831,323							2,751,656							2,803,967							3,010,446							2,605,261
Other assets		21,511,015							19,901,093							19,180,861							19,414,608							16,070,226
	$	138,704,245						$	136,876,429						$	137,538,592						$	141,963,691						$	124,577,836
Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Savings accounts	$	3,669,700		$	2,236	0.24	%	$	3,756,311		$	2,795	0.30	%	$	3,861,380		$	2,884	0.30	%	$	3,905,299		$	2,964	0.31	%	$	3,572,985		$	3,097	0.34	%
Interest-bearing transaction accounts		15,029,192			64,376	1.70	%		15,268,807			79,618	2.07	%		15,816,958			84,334	2.14	%		16,113,504			83,343	2.10	%		13,338,852			62,898	1.87	%
Money market accounts		23,141,502			172,708	2.96	%		23,853,236			214,371	3.57	%		23,542,158			206,100	3.51	%		22,558,401			190,814	3.43	%		19,734,554			168,029	3.38	%
Certificates of deposit of $100,000 or more		11,223,401			134,851	4.77	%		10,872,861			133,290	4.86	%		12,443,318			152,413	4.91	%		13,271,108			155,935	4.77	%		12,045,318			142,757	4.70	%
Other interest-bearing deposit accounts		22,727,144			251,429	4.39	%		21,337,142			243,511	4.53	%		20,686,433			231,508	4.49	%		22,356,006			242,312	4.40	%		19,572,951			208,500	4.23	%
Interest-bearing deposits - divestitures		—			—	—			—			—	—			—			—	—			1,517,504			12,091	3.23	%		1,450,645			11,974	3.27	%
Total interest-bearing deposits		75,790,939			625,600	3.27	%		75,088,357			673,585	3.56	%		76,350,247			677,239	3.56	%		79,721,822			687,459	3.50	%		69,715,305			597,255	3.40	%
Federal funds purchased and securities sold under agreement to repurchase		8,557,902			92,310	4.28	%		8,121,636			98,522	4.81	%		7,461,579			90,460	4.86	%		8,174,934			96,303	4.78	%		7,333,018			87,816	4.75	%
Other short-term borrowings		1,554,759			14,767	3.77	%		1,598,989			16,570	4.11	%		2,251,296			26,177	4.66	%		2,213,107			24,358	4.46	%		1,539,329			15,169	3.91	%
Long-term borrowings		11,054,567			157,279	5.64	%		10,085,073			144,662	5.69	%		9,014,112			128,269	5.71	%		8,606,381			122,737	5.78	%		8,159,959			123,199	5.99	%
Total interest-bearing liabilities		96,958,167		$	889,956	3.64	%		94,894,055		$	933,339	3.90	%		95,077,234		$	922,145	3.89	%		98,716,244		$	930,857	3.82	%		86,747,611		$	823,439	3.77	%
Non-interest-bearing deposits		18,249,585							18,850,607							19,233,146							19,694,403							17,535,467
Other liabilities		3,627,697							3,338,644							3,187,936							3,100,313							3,108,830
Stockholders’ equity		19,868,796							19,793,123							20,040,276							20,452,731							17,185,928
	$	138,704,245						$	136,876,429						$	137,538,592						$	141,963,691						$	124,577,836
Net interest income/margin FTE basis				$	1,050,419	3.61	%				$	1,086,575	3.74	%				$	1,111,969	3.82	%				$	1,187,512	3.99	%				$	1,104,421	4.10	%

(1) Regions Financial Corporation and AmSouth Bancorporation merged effective November 4, 2006. The merger was accounted for as a purchase of AmSouth by Regions. As a result, periods ending prior to November 4, 2006, reflect legacy Regions data on a stand-alone basis

(2) Certain amounts in prior periods have been reclassified to reflect current period presentation

FINANCIAL SUPPLEMENT TO

FOURTH QUARTER 2007 EARNINGS RELEASE

PAGE 7

Regions Financial Corporation and Subsidiaries

Consolidated Average Daily Balances and Yield/Rate Analysis Including Discontinued Operations(1)(2)

($ amounts in thousands; yields on taxable equivalent basis)

	Year Ended December 31
	2007							2006
	Average Balance			Revenue/ Expense		Yield/ Rate		Average Balance			Revenue/ Expense		Yield/ Rate
Assets
Interest-earning assets:
Interest-bearing deposits in other banks	$	50,634		$	2,687	5.31	%	$	64,766		$	2,900	4.48	%
Federal funds sold and securities purchased under agreement to resell		1,105,543			68,721	6.22	%		961,127			51,445	5.35	%
Trading account assets		1,357,016			54,279	4.00	%		1,112,239			55,741	5.01	%
Securities:
Taxable securities		16,981,646			856,043	5.04	%		12,638,833			608,171	4.81	%
Tax-exempt		736,762			62,751	8.52	%		470,003			50,961	10.84	%
Loans held for sale		1,538,813			110,950	7.21	%		2,286,604			176,672	7.73	%
Loans held for sale-divestitures		283,697			21,521	7.59	%		262,884			20,087	7.64	%
Margin receivables		537,507			35,813	6.66	%		546,755			37,541	6.87	%
Loans, net of unearned income		94,372,061			6,900,007	7.31	%		64,765,653			4,805,931	7.42	%
Total interest-earning assets		116,963,679			8,112,772	6.94	%		83,108,864			5,809,449	6.99	%
Allowance for loan losses		(1,063,011	)						(833,691	)
Cash and due from banks		2,848,590							2,153,838
Other non-earning assets		20,007,361							11,371,266
	$	138,756,619						$	95,800,277
Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Savings accounts	$	3,797,413		$	10,879	0.29	%	$	3,205,123		$	12,356	0.39	%
Interest-bearing transaction accounts		15,553,355			311,672	2.00	%		10,664,995			168,320	1.58	%
Money market accounts		23,277,009			783,993	3.37	%		14,157,010			436,459	3.08	%
Certificates of deposit of $100,000 or more		11,944,103			576,487	4.83	%		8,855,396			394,844	4.46	%
Other interest-bearing deposit accounts		21,776,494			968,761	4.45	%		16,252,687			656,214	4.04	%
Interest-bearing deposits - divestitures		374,179			12,091	3.23	%		365,642			11,974	3.27	%
Total interest-bearing deposits		76,722,553			2,663,883	3.47	%		53,500,853			1,680,167	3.14	%
Federal funds purchased and securities sold under agreement to repurchase		8,080,179			377,595	4.67	%		5,162,196			233,208	4.52	%
Other short-term borrowings		1,901,897			81,872	4.30	%		1,089,223			42,289	3.88	%
Long-term borrowings		9,697,823			552,947	5.70	%		6,855,601			385,152	5.62	%
Total interest-bearing liabilities		96,402,452			3,676,297	3.81	%		66,607,873			2,340,816	3.51	%
Non-interest bearing deposits		19,002,548							13,965,594
Other liabilities		3,315,160							2,858,178
Stockholders’ equity		20,036,459							12,368,632
	$	138,756,619						$	95,800,277
Net interest income/margin FTE basis				$	4,436,475	3.79	%				$	3,468,633	4.17	%

(1) Regions Financial Corporation and AmSouth Bancorporation merged effective November 4, 2006. The merger was accounted for as a purchase of AmSouth by Regions. As a result, periods ending prior to November 4, 2006, reflect legacy Regions data on a stand-alone basis.

(2) Certain amounts in the prior periods have been reclassified to reflect current period presentation

FINANCIAL SUPPLEMENT TO

FOURTH QUARTER 2007 EARNINGS RELEASE

PAGE 8

Regions Financial Corporation and Subsidiaries

Selected Ratios (1)

	As of and for Quarter Ended
	12/31/07			9/30/07			6/30/07			3/31/07			12/31/06
Return on average assets*		0.20	%		1.14	%		1.32	%		0.95	%		1.15	%
Return on average equity*		1.41	%		7.90	%		9.07	%		6.60	%		8.35	%
Return on average tangible equity*		3.67	%		20.14	%		22.89	%		16.29	%		19.59	%
Stockholders’ equity per share	$	28.58		$	28.46		$	27.96		$	28.14		$	28.36
Stockholders’ equity to total assets		14.05	%		14.36	%		14.31	%		14.71	%		14.44	%
Tangible stockholders’ equity to tangible assets		5.88	%		6.02	%		6.09	%		6.52	%		6.53	%
Allowance for credit losses as a percentage of loans, net of unearned income (2)		1.45	%		1.19	%		1.19	%		1.18	%		1.17	%
Allowance for loan losses as a percentage of loans, net of unearned income		1.39	%		1.13	%		1.13	%		1.12	%		1.12	%
Net interest margin (FTE)		3.61	%		3.74	%		3.82	%		3.99	%		4.10	%
Loans, net of unearned income, to total deposits		100.64	%		101.00	%		98.90	%		98.77	%		93.40	%
Net charge-offs as a percentage of average loans*		0.45	%		0.27	%		0.23	%		0.20	%		0.27	%
Total non-performing assets (excluding loans 90 days past due) as a percentage of loans and other real estate		0.90	%		0.62	%		0.62	%		0.45	%		0.40	%
Total non-performing assets (including loans 90 days past due) as a percentage of loans and other real estate		1.28	%		0.97	%		0.84	%		0.67	%		0.55	%

* Annualized

(1) Regions Financial Corporation and AmSouth Bancorporation merged effective November 4, 2006. The merger was accounted for as a purchase of AmSouth by Regions. As a result, periods ending prior to November 4, 2006, reflect legacy Regions data on a stand-alone basis

(2) The allowance for credit losses reflects the allowance related to both loans on the balance sheet and exposure related to unfunded commitments and standby letters of credit

FINANCIAL SUPPLEMENT TO

FOURTH QUARTER 2007 EARNINGS RELEASE

PAGE 9

Loans (1)(2)

	Loan Portfolio - Period End Data
($ amounts in thousands)
	12/31/2007		9/30/07		6/30/07		3/31/07		12/31/06		12/31/2007 vs. 9/30/2007*
Commercial	$	20,906,617	$	23,565,882	$	25,123,355	$	24,188,205	$	24,145,411	$	(2,659,265	)	-44.8	%
Real estate- mortgage		39,343,128		35,337,366		33,646,480		34,505,573		35,230,343		4,005,762		45.0	%
Real estate- construction		14,025,491		14,237,083		14,311,192		14,357,801		14,121,030		(211,592	)	-5.9	%
Home equity lending		14,962,007		14,835,319		14,819,443		14,845,348		14,888,599		126,688		3.4	%
Indirect lending		3,938,113		4,015,142		4,052,637		4,050,317		4,037,539		(77,029	)	-7.6	%
Other consumer		2,203,491		2,382,840		2,061,381		2,221,016		2,127,680		(179,349	)	-29.9	%
	$	95,378,847	$	94,373,632	$	94,014,488	$	94,168,260	$	94,550,602	$	1,005,215		4.2	%
		Loan Portfolio - Average Balances
($ amounts in thousands)
	4Q07		3Q07		2Q07		1Q07		4Q06		4Q07 vs. 3Q07*
Commercial	$	22,913,251	$	24,146,621	$	24,623,331	$	24,094,090	$	21,242,803	$	(1,233,370	)	-20.3	%
Real estate- mortgage		36,660,193		34,923,454		34,060,372		34,922,144		31,361,533		1,736,739		19.7	%
Real estate- construction		14,104,126		14,232,360		14,295,420		14,221,432		12,289,921		(128,234	)	-3.6	%
Home equity lending		14,888,685		14,774,085		14,836,871		14,858,209		12,402,944		114,600		3.1	%
Indirect lending		3,975,744		4,044,072		4,059,108		4,007,349		3,141,590		(68,328	)	-6.7	%
Other consumer		2,241,955		2,189,219		2,176,409		2,235,536		2,619,829		52,736		9.6	%
	$	94,783,954	$	94,309,811	$	94,051,511	$	94,338,760	$	83,058,620	$	474,143		2.0	%

(1) Regions Financial Corporation and AmSouth Bancorporation merged effective November 4, 2006. The merger was accounted for as a purchase of AmSouth by Regions. As a result, 4Q06 average balances include approximately two months of AmSouth operations compared to full quarter inclusion during 2007

(2) Certain amounts in the prior periods have been reclassified to reflect current period presentation

* Linked-quarter percentage changes are presented on an annualized basis

• Linked-quarter loan classification comparisons have been impacted by conversion-related re-mapping in 3Q07 and 4Q07, with a portion of commercial loans reclassifying as real estate mortgage loans

• $ 1.6 billion of loans were reclassified to held-for-sale in 4Q06 in connection with the 52 branches that were divested in 1Q07

• The AmSouth transaction added $36.5 billion of loans in 4Q06

FINANCIAL SUPPLEMENT TO

FOURTH QUARTER 2007 EARNINGS RELEASE

PAGE 10

Deposits (1)(2)

	Deposit Portfolio - Period End Data
($ amounts in thousands)
	12/31/2007		9/30/07		6/30/07		3/31/07		12/31/06		12/31/2007 vs. 9/30/2007*
Interest-Free Deposits	$	18,417,266	$	18,834,856	$	19,136,419	$	19,942,928	$	20,175,482	$	(417,590	)	-8.8	%
Interest-Bearing Checking		15,846,139		15,208,224		15,685,340		16,426,436		15,899,813		637,915		16.6	%
Savings		3,646,632		3,692,087		3,795,701		3,937,346		3,882,533		(45,455	)	-4.9	%
Money Market		22,416,912		23,501,476		23,926,358		23,057,284		22,802,258		(1,084,564	)	-18.3	%
Total Low-Cost Deposits,
excluding divestitures		60,326,949		61,236,643		62,543,818		63,363,994		62,760,086		(909,694	)	-5.9	%
Divestitures - Interest-Free		—		—		—		—		533,295		—		NM
Divestitures - Other Low-Cost		—		—		—		—		1,177,671		—		NM
Total Low-Cost Deposits		60,326,949		61,236,643		62,543,818		63,363,994		64,471,052		(909,694	)	-5.9	%
CD’s < $100K		14,085,405		14,434,255		14,693,540		14,985,322		15,104,520		(348,850	)	-9.6	%
CD’s > $100K		12,089,630		10,076,459		11,602,951		12,979,072		12,776,086		2,013,171		79.3	%
Other Interest-Bearing Deposits		8,272,984		7,692,573		6,216,082		4,008,261		7,815,910		580,411		29.9	%
Divestitures - Time		—		—		—		—		1,060,401		—		NM
	$	94,774,968	$	93,439,930	$	95,056,391	$	95,336,648	$	101,227,969	$	1,335,038		5.7	%
		Deposit Portfolio - Average Balances
($ amounts in thousands)
	4Q07		3Q07		2Q07		1Q07		4Q06		4Q07 vs. 3Q07*
Interest-Free Deposits	$	18,249,585	$	18,850,607	$	19,233,146	$	19,324,381	$	17,175,508	$	(601,022	)	-12.6	%
Interest-Bearing Checking		15,029,192		15,268,807		15,816,958		16,113,504		13,338,852		(239,615	)	-6.2	%
Savings		3,669,700		3,756,311		3,861,380		3,905,299		3,572,985		(86,611	)	-9.1	%
Money Market		23,141,502		23,853,236		23,542,158		22,558,401		19,734,554		(711,734	)	-11.8	%
Total Low-Cost Deposits,
excluding divestitures		60,089,979		61,728,961		62,453,642		61,901,585		53,821,899		(1,638,982	)	-10.5	%
Divestitures - Interest-Free		—		—		—		370,022		359,957		—		NM
Divestitures - Other Low-Cost		—		—		—		796,266		763,757		—		NM
Total Low-Cost Deposits		60,089,979		61,728,961		62,453,642		63,067,873		54,945,613		(1,638,982	)	-10.5	%
CD’s < $100K		14,192,418		14,600,278		14,773,277		15,124,475		13,758,120		(407,860	)	-11.1	%
CD’s > $100K		11,223,401		10,872,861		12,443,318		13,271,108		12,045,318		350,540		12.8	%
Other Interest-Bearing Deposits		8,534,726		6,736,864		5,913,156		7,231,531		5,814,833		1,797,862		105.9	%
Divestitures - Time		—		—		—		721,238		686,891		—		NM
	$	94,040,524	$	93,938,964	$	95,583,393	$	99,416,225	$	87,250,775	$	101,560		0.4	%

(1) Regions Financial Corporation and AmSouth Bancorporation merged effective November 4, 2006. The merger was accounted for as a purchase of AmSouth by Regions. As a result, 4Q06 average balances include approximately two months of AmSouth operations compared to full quarter inclusion during 2007

(2) Certain amounts in the prior periods have been reclassified to reflect current period presentation

* Linked-quarter percentage changes are presented on an annualized basis

• $ 2.8 billion of deposits were reclassified to held-for-sale in 4Q06 in connection with the 52 branches that were divested in 1Q07

• The AmSouth transaction added $37.6 billion of deposits in 4Q06

FINANCIAL SUPPLEMENT TO

FOURTH QUARTER 2007 EARNINGS RELEASE

PAGE 11

Operating Revenue from Continuing Operations (1)(2)

Revenue

($ amounts in thousands)	4Q07		3Q07		2Q07		1Q07		4Q06		4Q07 vs. 3Q07*
Net Interest Income (TE basis)	$	1,050,419	$	1,086,575	$	1,111,969	$	1,175,546	$	1,094,092	$	(36,156	)	-13.2	%
Non-Interest Income (excl. sec. gains/losses)		733,023		705,150		729,607		696,608		637,589		27,873		15.7	%
Total Revenue (excl. sec. gains/losses, TE basis)	$	1,783,442	$	1,791,725	$	1,841,576	$	1,872,154	$	1,731,681	$	(8,283	)	-1.8	%

(1) Regions Financial Corporation and AmSouth Bancorporation merged effective November 4, 2006. The merger was accounted for as a purchase of AmSouth by Regions. As a result, periods ending prior to November 4, 2006, reflect legacy Regions data on a stand-alone basis

(2) Certain amounts in the prior periods have been reclassified to reflect current period presentation

* Linked-quarter percentage changes are presented on an annualized basis

• Net interest margin of 3.61% in 4Q07 compared to 3.74% in 3Q07

• Regions’ balance sheet positioning is neutral to slightly asset sensitive as of December 31, 2007

• Fee income, excluding securities gains/losses, increased linked-quarter, due in large part to higher brokerage income and commercial credit fee income

FINANCIAL SUPPLEMENT TO

FOURTH QUARTER 2007 EARNINGS RELEASE

PAGE 12

Non-Interest Income and Expense from Continuing Operations (1)(2)

Non-interest Income and Expense

Non-interest Income

($ amounts in thousands)	4Q07			3Q07		2Q07			1Q07		4Q06			4Q07 vs. 3Q07*
Service charges on deposit accounts	$	292,709		$	288,296	$	297,638		$	284,097	$	247,591		$	4,413		6.1	%
Brokerage and investment banking		227,808			209,413		207,372			186,195		199,697			18,395		34.8	%
Trust department income		60,798			62,449		64,590			63,482		51,510			(1,651	)	-10.5	%
Mortgage income		28,047			29,806		40,830			37,021		44,134			(1,759	)	-23.4	%
Securities gains (losses), net		(45	)		23,994		(32,806	)		304		(20	)		(24,039	)	NM
Commercial credit fee income		35,568			29,217		18,971			20,574		24,477			6,351		86.2	%
Insurance premiums & commissions		23,320			23,340		25,476			27,229		21,556			(20	)	-0.3	%
Other		64,773			62,629		74,730			78,010		48,624			2,144		13.6	%
Total non-interest income	$	732,978		$	729,144	$	696,801		$	696,912	$	637,569		$	3,834		2.1	%
Non-interest Expense**
($ amounts in thousands)	4Q07			3Q07		2Q07			1Q07		4Q06			4Q07 vs. 3Q07*
Salaries and employee benefits	$	581,635		$	566,614	$	579,599		$	585,408	$	540,510		$	15,021		10.5	%
Net occupancy expense		102,361			99,325		88,490			89,701		87,495			3,036		12.1	%
Furniture and equipment expense		78,669			72,185		73,056			72,564		58,879			6,484		35.6	%
Impairment (recapture) of MSR’s1		23,000			20,000		(38,000	)		1,000		27,000			3,000		59.5	%
Professional fees		43,212			27,533		29,568			17,105		25,974			15,679		225.9	%
Marketing expense		29,062			20,756		19,624			21,711		21,995			8,306		158.8	%
Amortization of core deposit intangible		42,100			37,432		32,702			43,112		32,890			4,668		49.5	%
Amortization of MSR’s		21,183			17,308		20,384			20,042		19,406			3,875		88.8	%
Other		276,872			192,456		192,385			209,330		189,413			84,416		174.0	%
Total non-interest expense, excluding merger charges		1,198,094			1,053,609		997,808			1,059,973		1,003,562			144,485		54.4	%
Merger-related charges		150,162			91,785		59,927			48,993		87,638			58,377		252.3	%
Total non-interest expense	$	1,348,256		$	1,145,394	$	1,057,735		$	1,108,966	$	1,091,200		$	202,862		70.3	%

(1) Regions Financial Corporation and AmSouth Bancorporation merged effective November 4, 2006. The merger was accounted for as a purchase of AmSouth by Regions. As a result, periods ending prior to November 4, 2006, reflect legacy Regions data on a stand-alone basis

(2) Certain amounts in prior periods have been reclassified to reflect current period presentation

* Linked-quarter percentage changes are presented on an annualized basis

** Individual expense categories are presented excluding merger-related charges, which are presented in a separate line item in the above table

• Brokerage income increased in 4Q07 primarily due to higher fixed-income revenues at Morgan Keegan

• Commercial credit fee income was higher in 4Q07 as a result of increased customer derivative activity

• 4Q07 mortgage income was impacted by a $4.4 million¹loss on a sale of a portion of out-of-market mortgage servicing portfolio

• 4Q07 other non-interest income includes a $7.3 million gain on the sale of assets, $6.7 million incremental BOLI earnings compared to 3Q07; and $9.4 million¹ in write-downs of tax-preferenced low-income housing investments

• 3Q07 other non-interest income included a $10.5 million gain related to sale of a residual interest in a former subsidiary

• 4Q07 salary costs rose due to higher commissions at Morgan Keegan, which were tied to strong brokerage and investment banking activity revenues during the quarter

• Furniture and equipment expense increases in 4Q07 reflect depreciation related to capital additions and higher maintenance, rental and property taxes

• Professional fees increased in 4Q07 due to special assets litigation resulting from recent credit cycle deterioration and higher legal costs

• 4Q07 marketing expense increased due mainly to campaigns run to coincide with the branch conversions

• Amortization of core deposit intangibles increased during 4Q07 reflecting higher deposit outflows

• Other non-interest expense includes the $51.5 million¹ charge related to Regions’ ownership interest in the Visa antitrust lawsuit settlements and other related litigation; $38.5 million¹ loss related to two Morgan Keegan mutual fund investments; and $7.5 million¹ in Other Real Estate losses. Lowering non-interest expense in 4Q07 was a $10.3 million change in expense related to an investment in energy-related tax credits.

• Merger-related cost saves of $108 million, $102 million, $84 million and $51 million are reflected in 4Q07, 3Q07, 2Q07 and 1Q07 non-interest expense, respectively.

• Primary drivers of “merger-related charges” are personnel and marketing expenses, mainly related to October and December conversion events. See page 3 for individual expense categories including merger-related charges.

¹ Items included in the $134 million of 4Q07 non-merger charges

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Morgan Keegan (1)

Morgan Keegan

Summary Income Statement

($ amounts in thousands)	4Q07		3Q07		2Q07		1Q07		4Q06		4Q07 vs. 3Q07*
Revenues:
Commissions	$	82,502	$	82,071	$	77,563	$	72,405	$	72,645	$	431		2.1	%
Principal transactions		56,216		43,916		43,838		37,597		42,691		12,300		111.1	%
Investment banking		57,192		48,958		48,579		36,750		42,441		8,234		66.7	%
Interest		33,772		35,388		39,820		40,031		40,186		(1,616	)	-18.1	%
Trust fees and services		56,736		55,803		57,185		56,121		44,189		933		6.6	%
Investment advisory		52,168		42,146		48,088		41,792		48,713		10,022		94.3	%
Other		12,357		10,134		13,761		17,303		16,614		2,223		87.0	%
Total revenues		350,943		318,416		328,834		301,999		307,479		32,527		40.5	%
Expenses:
Interest expense		19,790		21,790		25,046		23,983		24,996		(2,000	)	-36.4	%
Non-interest expense		291,022		225,469		225,074		206,108		207,314		65,553		115.3	%
Total expenses		310,812		247,259		250,120		230,091		232,310		63,553		102.0	%
Income before income taxes		40,131		71,157		78,714		71,908		75,169		(31,026	)	-173.0	%
Income taxes		15,068		26,000		28,603		26,367		28,230		(10,932	)	-166.8	%
Net income	$	25,063	$	45,157	$	50,111	$	45,541	$	46,939	$	(20,094	)	-176.5	%

Breakout of Revenue by Division

($ amounts in thousands)	Private Client			Fixed- income Capital Markets			Equity Capital Markets			Regions MK Trust			Asset Management			Interest & Other
Three months ended December 31, 2007:
$ amount of revenue	$	99,005		$	79,544		$	29,940		$	56,743		$	50,066		$	35,645
% of gross revenue		28.2	%		22.7	%		8.5	%		16.2	%		14.3	%		10.1	%
Three months ended September 30, 2007:
$ amount of revenue	$	97,577		$	55,647		$	30,191		$	55,803		$	47,646		$	31,552
% of gross revenue		30.6	%		17.5	%		9.5	%		17.5	%		15.0	%		9.9	%
Year Ended December 31, 2007
$ amount of revenue	$	393,511		$	244,407		$	103,289		$	225,853		$	188,905		$	144,227
% of gross revenue		30.3	%		18.8	%		7.9	%		17.4	%		14.5	%		11.1	%
Year Ended December 31, 2006
$ amount of revenue	$	305,098		$	187,425		$	103,282		$	131,218		$	149,511		$	152,137
% of gross revenue		29.7	%		18.2	%		10.0	%		12.8	%		14.5	%		14.8	%

(1) Regions Financial Corporation and AmSouth Bancorporation merged effective November 4, 2006. The merger was accounted for as a purchase of AmSouth by Regions. As a result, periods ending prior to November 4, 2006, reflect legacy Regions data on a stand-alone basis.

* Linked-quarter percentage changes are presented on an annualized basis

• Principal transactions revenue increased an annualized 111% linked-quarter, driven by volume of trades in the fixed income business

• Investment banking revenues increased an annualized 67% linked-quarter in connection with higher deal activity during 4Q07

• Investment advisory fees were up 4Q07 compared to 3Q07 as a result of increases in the oil and gas-related activity

• The linked-quarter increase in non-interest expense was primarily a result of the $38.5 million loss related to investments in two Morgan Keegan mutual funds as well as commission-related increases in compensation

• 21,300 new accounts were opened in 4Q07 compared to 24,600 in 3Q07 and 17,300 in 4Q06

• Total customer assets were $80.0 billion at December 31, 2007, compared to $82.6 billion at September 30, 2007 and $69.2 billion at December 31, 2006

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PAGE 14

Credit Quality (1)(2)

Credit Quality

	As of and for Quarter Ended															YTD 12/31/07			YTD 12/31/06
($ in thousands)	12/31/07			9/30/07			6/30/07			3/31/07			12/31/06
Allowance for credit losses (ACL)	$	1,379,498		$	1,126,554		$	1,118,229		$	1,110,324		$	1,107,788		$	1,379,498		$	1,107,788
Provision for loan losses from continuing operations	$	358,000		$	90,000		$	60,000		$	47,000		$	59,825		$	555,000		$	142,373
Provision for unfunded credit losses	$	2,416		$	(518	)	$	2,292		$	2,229		$	—		$	6,419		$	—
Net loans charged-off:*
Commercial	$	34,742		$	19,161		$	17,406		$	2,044		$	15,164		$	73,353		$	37,541
Real estate - mortgage		20,409			6,392			11,432			11,108			10,083			49,341			41,233
Real estate - construction		16,036			5,230			709			8,572			1,170			30,547			6,987
Home equity lending		11,513			11,701			8,774			8,686			14,078			40,674			29,720
Indirect lending		7,752			4,395			3,975			4,416			5,154			20,538			10,541
Other consumer		17,020			16,242			11,611			11,196			10,500			56,069			13,919
Total	$	107,472		$	63,121		$	53,907		$	46,022		$	56,149		$	270,522		$	139,941
Net loan charge-offs as a % of average loans, annualized *
Commercial		0.60	%		0.31	%		0.28	%		0.03	%		0.28	%		0.31	%		0.22	%
Real estate - mortgage		0.22	%		0.07	%		0.13	%		0.13	%		0.13	%		0.14	%		0.16	%
Real estate - construction		0.45	%		0.15	%		0.02	%		0.24	%		0.04	%		0.21	%		0.08	%
Home equity lending		0.31	%		0.31	%		0.24	%		0.24	%		0.45	%		0.27	%		0.34	%
Indirect lending		0.77	%		0.43	%		0.39	%		0.45	%		0.65	%		0.51	%		0.59	%
Other consumer		3.01	%		2.94	%		2.14	%		2.03	%		1.59	%		2.54	%		0.60	%
Total		0.45	%		0.27	%		0.23	%		0.20	%		0.27	%		0.29	%		0.22	%
Non-performing assets (NPAs):
Non-accrual loans*	$	743,589		$	494,693		$	501,175		$	349,833		$	306,471
Foreclosed properties		120,465			93,649			83,834			72,658			72,663
Total	$	864,054		$	588,342		$	585,009		$	422,491		$	379,134
Loans past due > 90 days*	$	356,685		$	332,116		$	204,829		$	204,296		$	143,868
Credit Ratios:
ACL/Loans, net		1.45	%		1.19	%		1.19	%		1.18	%		1.17	%
ALL/Loans, net		1.39	%		1.13	%		1.13	%		1.12	%		1.12	%
NPAs (ex. 90+ past due)/loans and foreclosed properties		0.90	%		0.62	%		0.62	%		0.45	%		0.40	%
NPAs (inc. 90+ past due)/loans and foreclosed properties		1.28	%		0.97	%		0.84	%		0.67	%		0.55	%

* See page 15 for loan portfolio (risk view) breakout

Allowance for Credit Losses

($ amounts in thousands)

	Year Ended December 31
	2007			2006
Balance at beginning of year	$	1,107,788		$	783,536
Net loans charged off		(270,522	)		(139,941	)
Allowance allocated to sold loans		(19,369	)		(14,140	)
Allowance of purchased institutions at acquisition		—			335,833
Provision for loan losses, from continuing operations		555,000			142,373
Provision for loan losses, from discontinued operations		182			127
Provision for unfunded credit commitments		6,419			—
Balance at end of period	$	1,379,498		$	1,107,788
Components:
Allowance for loan losses		1,321,244			1,055,953
Reserve for unfunded credit commitments		58,254			51,835
Allowance for credit losses	$	1,379,498		$	1,107,788

(1) Regions Financial Corporation and AmSouth Bancorporation merged effective November 4, 2006. The merger was accounted for as a purchase of AmSouth by Regions. As a result, periods ending prior to November 4, 2006, reflect legacy Regions data on a stand-alone basis

(2) Certain amounts in prior periods have been reclassified to reflect current period presentation

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PAGE 15

Loan Portfolio - Risk View

Total Loan Portfolio - $95.4 billion

($ in thousands)	Outstanding		% of Total Loans
Commercial
Commercial and Industrial/Leases	$	16,533,176	17	%
Commercial Real Estate - Owner Occupied Mortgages		4,436,631	5	%
Total Commercial		20,969,807	22	%
Commercial Real Estate
CRE - Non-Owner Occupied Mortgages		8,057,504	8	%
Construction		12,893,068	14	%
Total Commercial Real Estate		20,950,572	22	%
Business and Community Banking Loans		15,540,443	16	%
Residential First Mortgage
Alt-A		2,830,062	3	%
Residential First Mortgage		14,129,484	15	%
Total Residential First Mortgage		16,959,546	18	%
Consumer
Home Equity Lending		14,962,007	16	%
Indirect Lending		3,938,113	4	%
Direct Lending		1,066,184	1	%
Other Consumer		992,175	1	%
Total Other Consumer		20,958,479	22	%
Total Loans	$	95,378,847	100	%

Fourth Quarter 2007 Net Charge-offs, Non-accrual and 90+ Days Past Due Loans

($ in thousands)	90+ Past Due		% of Loans*		Non-accrual loans		% of Loans*		Net Charge- offs		% of Avg Loans*
Commercial
Commercial and Industrial/Leases	$	5,984	0.04	%	$	55,355	0.33	%	$	24,784	0.49	%
Commercial Real Estate - Owner Occupied		1,112	0.03	%		105,494	2.38	%		2,643	0.13	%
Total Commercial		7,096	0.03	%		160,849	0.77	%		27,427	0.39	%
Commercial Real Estate
CRE - Non-Owner Occupied Mortgages		7,625	0.09	%		148,539	1.84	%		9,903	0.73	%
Construction		18,535	0.14	%		304,941	2.37	%		16,111	0.48	%
Total Commercial Real Estate		26,160	0.12	%		453,480	2.16	%		26,014	0.55	%
Business and Community Banking Loans		10,638	0.07	%		75,930	0.49	%		10,313	0.39	%
Residential First Mortgage
Alt-A		41,125	1.45	%		8,534	0.30	%		1,822	0.26	%
Residential First Mortgage		113,281	0.80	%		38,177	0.27	%		5,611	0.16	%
Total Residential First Mortgage		154,406	0.91	%		46,711	0.28	%		7,433	0.18	%
Consumer
Home Equity Lending		146,808	0.98	%		6,611	0.04	%		11,513	0.31	%
Indirect Lending		6,002	0.15	%		8	0.00	%		7,752	0.77	%
Direct Lending		2,997	0.28	%		—	0.00	%		2,911	1.09	%
Other Consumer		2,578	0.26	%		—	0.00	%		14,109	5.21	%
Total Other Consumer		158,385	0.76	%		6,619	0.03	%		36,285	0.69	%
Total Loans	$	356,685	0.37	%	$	743,589	0.78	%	$	107,472	0.45	%

* Percentage of related loan category outstandings

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PAGE 16

Commercial Real Estate - $21.0 billion

• Portfolio well-diversified by product type

• $7.2 billion residential homebuilder portfolio is a subset of the Commercial Real Estate portfolio with the majority of the residential homebuilder portfolio found in land and single family sectors

• Proactively reducing certain concentrations

• Land balances down $1.1 billion since December 2006

• Condominium balances down $644 million since December 2006

Consumer Real Estate - $31.9 Billion

Total Loan Portfolio

	Outstandings*		Wgtd Avg. LTV		Wgtd Avg. FICO	Avg. Loan Size		% in 1st Lien
Home Equity Lending	$	14,962,007	74	%	733	$	70,964	41	%
Residential 1st Mortg		14,129,484	67	%	725		174,006	100	%
Alt-A		2,830,062	72	%	711		175,737	100	%
Total Consumer RE Portfolio	$	31,921,553	71	%	727	$	119,495	71	%

* $ in thousands

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PAGE 17

Residential Homebuilder Portfolio - $7.2 billion

Portfolio Breakout by Category

$ in millions)

Geographic Breakout

¹ East consists of Georgia, North Carolina, and South Carolina

² Midwest consists of Arkansas, Illinois, Indiana, Iowa, Kentucky, Missouri, and Texas

³ Southwest consists of Louisiana and Mississippi

Product Breakout

($ in thousands)

	Lots			Residential Presold			Residential Spec			Land			National Homebuilders			Total Portfolio
	$		%*	$		%*	$		%*	$		%*	$		%*	$		%*
90+ Past Due		8,306	0.52		892	0.14		4,921	0.26		5,218	0.18		—	—		19,337	0.27
Non-Accruing Loans		68,269	4.25		31,750	5.14		100,640	5.31		57,346	1.96		—	—		258,005	3.58
Average Note Size:
Total Portfolio		290	—		350	—		240	—		1,148	—		4,721	—		405	—
East		203	—		247	—		225	—		1,078	—		—	—		307	—
Florida		843	—		965	—		529	—		3,626	—		—	—		1,265	—
Outstandings	$	1,607,794		$	617,628		$	1,893,567		$	2,925,685		$	160,505		$	7,205,179

* Percentage of related product outstandings

• Average note size of the homebuilder portfolio is $405,000

• Non-accruing loans represent 3.58 percent of the total homebuilder portfolio with the highest concentrations in Florida and the East

• 4Q07 net charge-offs (individually exceeding $1 million) in the homebuilder portfolio were $11 million

• At 4Q07 approximately $850 million of the $7.2 billion homebuilder portfolio was identified for transfer into special assets department

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PAGE 18

Additional Financial and Operational Data

	12/31/07	9/30/07	6/30/07	3/31/07	12/31/06
Associate headcount	33,161	33,630	34,293	34,138	36,517
Authorized shares remaining under buyback program (see note below)	23.1MM	27.6MM	34.2MM	53.9MM	13.9MM
Total branch outlets (1)	1,965	2,022	2,081	2,088	2,126
ATMs	2,490	2,549	2,581	2,590	2,664
Morgan Keegan offices	416	430	446	453	319

(1) Regions divested 52 branches in connection with the AmSouth merger, which occurred during 1Q07

• During 4Q07, 3.8 million shares were repurchased at an average price of $26.48

Merger-Related Items

(Pre-tax dollars in thousands)

	Income Statement Effect		Excess Purchase Price			Total
Year ended December 31, 2006	$	88,658	$	185,378		$	274,036
First Quarter 2007		48,993		3,537			52,530
Second Quarter 2007		59,927		4,090			64,017
Third Quarter 2007		91,785		118			91,903
Fourth Quarter 2007		150,162		(10,648	)		139,514
Total	$	439,525	$	182,475		$	622,000

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PAGE 19

Reconciliation to GAAP Financial Measures

The table below presents computations of earnings and certain other financial measures excluding discontinued operations and merger charges (non-GAAP). Merger charges and discontinued operations are included in financial results presented in accordance with generally accepted accounting principles (GAAP). Regions believes the exclusion of merger charges in expressing earnings and certain other financial measures, including “earnings per share from continuing operations, excluding merger charges” and “return on average tangible equity, excluding discontinued operations and merger charges”, provides a meaningful base for period-to-period comparisons, which management believes will assist investors in analyzing the operating results of the Company and predicting future performance. These non-GAAP financial measures are also used by management to assess the performance of Regions’ business, because management does not consider merger charges to be relevant to ongoing operating results. Management and the Board of Directors utilize these non-GAAP financial measures for the following purposes: Preparation of Regions’ operating budgets; calculation of performance-based annual incentive bonuses for certain executives; calculation of performance-based multi-year incentive bonuses for certain executives; monthly financial performance reporting, including segment reporting; monthly close-out “flash” reporting of consolidated results (management only); and presentations to investors of company performance. Regions believes that presenting these non-GAAP financial measures will permit investors to assess the performance of the Company on the same basis as that applied by management and the Board of Directors. Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied and are not audited. To mitigate these limitations, Regions has policies in place to address expenses that qualify as merger charges and procedures in place to approve and segregate merger charges from other normal operating expenses to ensure that the Company’s operating results are properly reflected for period-to-period comparisons. Although these non-GAAP financial measures are frequently used by stakeholders in the evaluation of a company, they have limitations as analytical tools, and should not be considered in isolation, or as a substitute for analyses of results as reported under GAAP. In particular, a measure of earnings that excludes merger charges does not represent the amount that effectively accrues directly to stockholders (i.e., merger charges are a reduction in earnings and stockholders’ equity).

		As of and for Quarter Ended															As of and for Year Ended
($ amounts in thousands, except per share data)		12/31/07			9/30/07			6/30/07			3/31/07			12/31/06			12/31/07			12/31/06
INCOME
Income from continuing operations (GAAP)		$	71,115		$	394,240		$	453,732		$	474,076		$	371,995		$	1,393,163		$	1,372,521
Loss from discontinued operations, net of tax			(474	)		(76	)		(423	)		(141,095	)		(10,444	)		(142,068	)		(19,376	)
Net income (GAAP)	A	$	70,641		$	394,164		$	453,309		$	332,981		$	361,551		$	1,251,095		$	1,353,145
Income from continuing operations (GAAP)		$	71,115		$	394,240		$	453,732		$	474,076		$	371,995		$	1,393,163		$	1,372,521
Merger-related charges, pre-tax
Salaries and employee benefits			97,224			14,811			23,047			23,531			65,655			158,613			65,693
Net occupancy expense			3,891			21,428			4,685			3,830			3,473			33,834			3,473
Furniture and equipment expense			1,677			1,942			992			245			427			4,856			427
Other			47,370			53,604			31,203			21,387			18,083			153,564			19,066
Total merger-related charges, pre-tax			150,162			91,785			59,927			48,993			87,638			350,867			88,659
Merger-related charges, net of tax			93,505			56,501			37,155			30,376			59,299			217,537			60,320
Income excluding discontinued operations and merger charges (non-GAAP)	B	$	164,620		$	450,741		$	490,887		$	504,452		$	431,294		$	1,610,700		$	1,432,841
Weighted-average shares outstanding - diluted	C		696,895			704,485			715,564			734,534			646,372			712,743			506,989
Earnings per share, excluding discontinued operations and merger charges - diluted	B/C	$	0.24		$	0.64		$	0.69		$	0.69		$	0.67		$	2.26		$	2.83
RETURN ON AVERAGE TANGIBLE EQUITY
Average equity (GAAP)	D	$	19,868,796		$	19,793,123		$	20,040,276		$	20,452,731		$	17,185,928		$	20,036,459		$	12,368,632
Average intangible assets (GAAP)			12,232,365			12,026,887			12,097,753			12,165,061			9,862,793			12,130,417			6,449,657
Average tangible equity	E	$	7,636,431		$	7,766,236		$	7,942,523		$	8,287,670		$	7,323,135		$	7,906,042		$	5,918,975
Average equity, excluding discontinued operations	F	$	19,868,796		$	19,793,123		$	20,040,276		$	20,360,732		$	17,039,768		$	20,013,170		$	12,215,207
Average intangible assets, excluding discontinued operations			12,232,365			12,026,887			12,097,753			12,165,061			9,862,793			12,130,417			6,449,657
	G	$	7,636,431		$	7,766,236		$	7,942,523		$	8,195,671		$	7,176,975		$	7,882,753		$	5,765,550
Return on average tangible equity*	A/E		3.67	%		20.14	%		22.89	%		16.29	%		19.59	%		15.82	%		22.86	%
Return on average tangible equity, ex. discontinued operations and merger charges (non-GAAP)*	B/G		8.55	%		23.03	%		24.79	%		24.96	%		23.84	%		20.43	%		24.85	%

* Income statement amounts have been annualized in calculation

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PAGE 20

Forward-Looking Statements

This financial supplement to Regions’ fourth quarter 2007 earnings release may include forward-looking statements about Regions Financial Corporation within the meaning of the Private Securities Litigation Reform Act of 1995. Statements that are not historical or current facts, including statements about beliefs and expectations, are forward-looking statements. The words “believe,” “expect,” “anticipate,” “project,” and similar expressions often signify forward-looking statements. Such statements involve inherent risks and uncertainties. Regions cautions that actual results and events could differ materially from expectations expressed in forward-looking statements as a result of factors such as possible changes in economic and business conditions and interest rates; the current stresses in the financial markets; Regions’ ability to attract and retain customers; the effects of geopolitical instability and risks such as terrorist attacks; the effects of weather and natural disasters such as hurricanes; possible changes in laws and regulations and governmental monetary and fiscal policies; the cost and other effects of legal and administrative cases and similar contingencies; possible changes in the creditworthiness of customers and the possible impairment of collectibility of loans; increased competition from both banks and non-banks; and effects of critical accounting policies and judgments. For discussion of these and other risks that may cause actual results to differ from expectations, please look under the caption “Forward Looking Statements” in Regions’ Annual Report on Form 10-K for the year ended December 31, 2006 and in subsequently-filed Forms 10-Q, as on file with the Securities and Exchange Commission. You should not place undue reliance on any forward-looking statements, which speak only as of the date made. Regions assumes no obligation to update or revise any forward-looking statements that are made from time to time.

Regions’ Investor Relations contact is List Underwood at (205) 801-0265; Regions’ Media contact is Tim Deighton at (205) 264-5277.