Regions Bank 2009 Annual Report Download - page 18

Acquisition Program
A substantial portion of the growth of Regions from its inception as a bank holding company in 1971 has
been through the acquisition of other financial institutions, including commercial banks and thrift institutions,
and the assets and deposits of those financial institutions. As part of its ongoing strategic plan, Regions
continually evaluates business combination opportunities. Any future business combination or series of business
combinations that Regions might undertake may be material, in terms of assets acquired or liabilities assumed, to
Regions’ financial condition. Historically, business combinations in the financial services industry have typically
involved the payment of a premium over book and market values. This practice could result in dilution of book
value and net income per share for the acquirer.
Segment Information
Reference is made to Note 23 “Business Segment Information” to the consolidated financial statements
included under Item 7. of this Annual Report on Form 10-K for information required by this item.
Supervision and Regulation
Introduction
Regions and its subsidiaries are subject to the extensive regulatory framework applicable to bank holding
companies and their subsidiaries. Regulation of financial institutions such as Regions and its subsidiaries is
intended primarily for the protection of depositors, the deposit insurance fund of the Federal Deposit Insurance
Corporation (“FDIC”) and the banking system as a whole, and generally is not intended for the protection of
stockholders or other investors. Described below are the material elements of selected laws and regulations
applicable to Regions and its subsidiaries. The descriptions are not intended to be complete and are qualified in
their entirety by reference to the full text of the statutes and regulations described. As of the date of this
document, substantial changes to the regulatory framework applicable to Regions and its subsidiaries are being
considered by Congress and by U.S. bank regulatory agencies. For a discussion of such proposed changes, please
see “Recent Regulatory Developments” below. Changes in applicable law or regulation, and in their application
by regulatory agencies, cannot be predicted, but they may have a material effect on the business and results of
Regions and its subsidiaries.
Regions is a bank holding company, registered with the Board of Governors of the Federal Reserve System
(the “Federal Reserve”) and a financial holding company under the Bank Holding Company Act of 1956, as
amended (“BHC Act”). As such, Regions and its subsidiaries are subject to the supervision, examination and
reporting requirements of the BHC Act and the regulations of the Federal Reserve.
Under the BHC Act, an eligible bank holding company may elect to be a “financial holding company” and
thereafter may engage in a range of activities that are financial in nature and that are not permissible for bank
holding companies that are not financial holding companies. A financial holding company may engage directly
or through a subsidiary in the statutorily authorized activities of securities dealing, underwriting and market
making, insurance underwriting and agency activities, merchant banking and insurance company portfolio
investments. A financial holding company also may engage in any activity that the Federal Reserve determines
by rule or order to be financial in nature, incidental to such financial activity, or complementary to a financial
activity and that does not pose a substantial risk to the safety and soundness of an institution or to the financial
system generally.
In addition to these activities, a financial holding company may engage in those activities permissible for a
bank holding company that has not elected to be treated as a financial holding company, including factoring
accounts receivable, acquiring and servicing loans, leasing personal property, performing certain data processing
services, acting as agent or broker in selling credit life insurance and certain other types of insurance in
connection with credit transactions and conducting certain insurance underwriting activities. The BHC Act does
not place territorial limitations on permissible non-banking activities of bank holding companies. The Federal
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