Regions Financial (RF) 8-K Regions Reports Fourth Quarter 2008 Loss Largely Driven by

Regions Financial

4   Quarter Earnings Conference Call

January 20, 2009

Exhibit 99.3

th

1

Fourth Quarter 2008 Results

›

Earnings per diluted share of ($9.01), ($0.35) excluding goodwill impairment

›

$6 billion, ($8.66) non-cash goodwill impairment charge

›

Full-year profit of $0.74 per share before goodwill impairment and merger charges

›

Credit quality

›

Sold or moved to held for sale (HFS) $1.0 billion of non-performing assets (NPAs)

›

NPAs, excluding HFS, declined $347 million due to aggressive management

›

Provision for loan losses increased to $1.15 billion, or $354 million above net charge-offs

›

Ratio of allowance for credit losses to non-performing loans (excluding loans held for sale)

increased from 1.07x to 1.81x

›

Allowance for credit losses to total loans increased 38 basis points to 1.95%

›

Annualized net charge-offs of 3.19% impacted by proactive NPL management

›

Tax settlement benefits earnings and capital by $275 million, essentially closes 1999-

2006 tax years

›

Net interest margin declined to 2.96%

›

Non-interest revenues affected by worsening economy

›

Regulatory capital ratios strengthened, liquidity remains strong

2

Significant Earnings Drivers

4Q08

Goodwill Impairment Charge

(8.66)

$         

Tax Settlement

0.40

Losses on Loan Sales/Held for Sale Markdowns

(0.42)

Provision above Net Charge-offs

(0.32)

MSR Impairment

(0.09)

Preferred Stock Issuance Impact

(0.04)

All Other

0.12

Earnings Per Diluted Share

(9.01)

$        

3

Credit Perspective

Portion of the loan portfolio that is under stress comprises 9% of the total, down $3.1

billion over the past year.

12/31/2008

% of Total

12/31/2007

($ in millions)

Balance

Portfolio

Balance

Change

Homebuilder

Lots

$967

1.0%

$1,608

($641)

Residential Presold

300

0.3%

618

(318)

Residential Spec

1,297

1.3%

1,893

(596)

Land

1,553

1.6%

2,926

(1,373)

National Homebuilders/Other

286

0.3%

160

126

$4,403

4.5%

$7,205

($2,802)

Home Equity Lending

Florida -

2nd lien

3,663

3.8%

3,285

378

Condominium

946

1.0%

1,614

(668)

Stressed Portfolio

$9,012

9.3%

$12,104

($3,092)

Remaining Loan Portfolio

$88,407

90.7%

$83,275

$5,132

4

Losses Contained in Smaller Portfolios

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

Total Loan Portfolio ($ in billions)

Note: Bar height represents charge-off percentage and width

represents average balances as of December 31, 2008.

5

Increasing Florida Stress

6

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

$2,000

Q3 '07

Q4 '07

Q1 '08

Q2 '08

Q3 '08

Q4 '08

0.0x

0.5x

1.0x

1.5x

2.0x

2.5x

Non-performing Assets (NPAs)

NPAs exc. Held for Sale (HFS) ($)

Allowance for Credit Losses (ACL) / Non-performing Loans

(NPLs) exc. HFS

Increases in Charge-Offs and Loan Loss Provision

Improvements in NPAs and Coverage Ratio

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

Q3 '07

Q4 '07

Q1 '08

Q2 '08

Q3 '08

Q4 '08

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

Net Charge-Offs (NCOs) / Average Loans (%)

Loan Loss Provision ($)

Net Charge-Offs ($)

Net C/O %

LLP

NPAs

ACL/NPL

exc. HFS

7

Aggressive Non-performing Asset            

Management

(in millions)

1Q

2Q

3Q

4Q

Beginning NPAs

864

1,204

1,621

1,642

Additions

523

730

721

1,004

Payments

(62)

(52)

(70)

(82)

Returned to Accruing Status

(4)

(9)

(19)

(44)

Charge-Offs/OREO Write-downs

(92)

(105)

(180)

(243)

Dispositions/Held for Sale

(25)

(147)

(431)

(982)

Ending NPAs

1,204

1,621

1,642

1,295

(1) Excluding non-performing assets transferred to held for sale

2008

1

1

8

Net Interest Income and Margin

›

Taxable-equivalent net interest income of $933 million

›

Down $41 million, excluding $43 million third quarter SILO

impact

›

Stable earning asset volumes excluding proceeds from

Government programs

›

Net interest margin of 2.96%, declined 28 basis points excluding

third quarter SILO impact

›

Falling short-term interest rates

›

55% of loan portfolio tied to Prime or LIBOR

›

Deposits rates have not declined as much due to competitive

pressures

9

Growing Customer Deposits

($ amount in millions)

6/30/2008

9/30/2008

12/31/2008

% Change

4Q08 vs

3Q08

Low Cost Deposits

58,448

$ 

56,690

$  

56,422

$     

-0.5%

Customer Deposits

85,696

84,460

87,864

4.0%

Corporate Treasury Deposits

5,207

4,131

1,669

-59.6%

Total Deposits

90,903

88,591

89,533

1.1%

($ amount in millions)

6/30/2008

9/30/2008

12/31/2008

% Change

4Q08 vs

3Q08

Low Cost Deposits

58,649

$ 

55,922

$  

58,425

$     

4.5%

Customer Deposits

86,025

85,210

90,794

6.6%

Corporate Treasury Deposits

3,878

4,011

110

-97.3%

Total Deposits

89,903

89,221

90,904

1.9%

Deposit Portfolio -

Average Balances

Deposit Portfolio -

Ending Balances

10

Q3 to Q4 2008 Non-Interest Revenue and Expense

Changes Primarily Driven by Continued Economic

Distress

Non-Interest Revenue declined $18 million driven by lower market values

on trust accounts and lower service charge revenue.

Non-Interest Expense rose 7%, excluding Goodwill and MSR impairment

charges.

(in millions)

3Q08

4Q08

% Change

Non-Interest expense

1,103

$  

7,273

$  

MSR impairment

11

99

Goodwill impairment

-

6,000

Adjusted Non-interest expense

1,092

1,174

7%

11

Capital Ratios

›

Tier 1 and total capital strengthened by Capital Purchase Program

›

Tangible ratio affected by an increase in tangible assets, a result of

improved liquidity

Estimate

3Q08

4Q08

Tier 1 Capital Ratio

7.47%

10.39%

Total Risk-Based Capital Ratio

11.70%

14.65%

Tangible Equity to Tangible Assets

5.68%

5.23%

12

Strong Funding and Liquidity

Liquidity

›

Combined available liquidity from the

Fed, FHLB, unpledged securities and

unused lines exceeds $45 billion

›

Large excess reserve balances

›

Minimal Holding Company long-term

debt maturities

›

Avg Loans/Avg Deposits 111%

›

Average non-interest-bearing deposits/

Average interest-earning assets 14%

Funding

›

Customer core deposits fund 59% of

total assets and 88% of loans

›

Customer core deposits are 98% of

total deposits

›

$4 billion TLGP remaining capacity

›

Issuances performing well

›

Short-term funding markets loosening

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