Regions Bank 2008 Annual Report Download - page 4

REGIONS REMAINS A SAFE HARBOR
FOR CUSTOMER DEPOSITS
In my 2007 letter to shareholders, I wrote
of how our three-year strategic plan and
corporate-wide initiatives were designed
to address the challenges we expected our
industry to face in 2008. These challenges,
I am confi dent in saying, exceeded everyone’s
expectations. Important, though, is that
even while we made strategic adjustments
to our operating processes and policies
to address the emerging challenges, we
remained keenly focused on our customers.
Our associates endeavored to preserve the
trust and relationships that are critical to
our success and to our ability to deliver
shareholder value.
As a true crisis of confi dence in the United
States’ banking system developed in the third
and fourth quarters of 2008, we invested
time and resources in communicating to
customers that Regions remains a safe harbor
for their deposits. In addition to being well
capitalized by regulatory standards, Regions
takes a comparatively conservative approach
to banking. Unlike some, we have no exotic
securities, no brokered loans, and almost no
sub-prime loans in our portfolio, which has
allowed us to serve customers from a more
stable and relatively stronger position.
The FDIC demonstrated its confi dence in
Regions’ stability and strength by selecting
our company to acquire the deposits of two
failing banks, the most recent on February 6,
2009. These acquisitions meant additional
deposits and liquidity and an expanding
presence in Atlanta, Georgia, a long-term
strategic market for our franchise.
2008 RESULTS
Regions ended 2008 with results that
refl ected a very tough economic and credit
environment, as well as actions taken to
aggressively recognize and deal with problem
assets. Another factor largely infl uencing our
year-end results was a fourth quarter
$6 billion non-cash goodwill impairment
charge. It is important to note that this
charge did not impact our solid regulatory
or tangible capital ratios, nor our earnings
capacity for the future. Excluding the
goodwill impairment and merger charges,
we fi nished 2008 with full-year profi t of
$514 million, or 74 cents per share.
In spite of the credit crunch that has
accompanied the current economic recession,
Regions is committed to working with
customers to meet their credit needs
without jeopardizing shareholder value.
In fact, we grew loans 2% for the full year.
Regions continues to be in the business
of making quality loans that meet high
standards for credit quality, full pricing and
depository relationships.
Revenues from Regions’ fee income-
producing businesses increased during
2008 by 8% to $3.1 billion. And, while our
non-interest expenses were higher in 2008
compared to 2007, much of the increase was
Unlike some, we have no exotic
securities, no brokered loans, and
almost no sub-prime loans in our
portfolio, which has allowed us to
serve customers from a more stable
and relatively stronger position.
– MESSAGE FROM C. DOWD RITTER –
2 REGIONS 2008 10-K