Regions Bank 2011 Annual Report Download - page 28

advisors offering products and services to individual and institutional investors through 90 full-service offices in
20 states. On January 11, 2012 Regions announced that it had entered into a stock purchase agreement to sell
Morgan Keegan, and related affiliates, to Raymond James Financial, Inc. The transaction is expected to close
around the end of the first quarter, subject to regulatory approvals and customary closing conditions. Morgan
Asset Management and Regions Morgan Keegan Trust are not included in the sale and will remain part of
Regions’ Wealth Management organization.
Regions Insurance Group, Inc., a subsidiary of Regions Financial Corporation, is an insurance broker that
offers insurance products through its subsidiaries Regions Insurance, Inc., headquartered in Birmingham,
Alabama, and Regions Insurance Services, Inc., headquartered in Memphis, Tennessee. Through its insurance
brokerage operations in Alabama, Arkansas, Indiana, Louisiana, Missouri, Mississippi, Tennessee and Texas,
Regions Insurance, Inc. offers insurance coverage for various lines of personal and commercial insurance, such
as property, casualty, life, health and accident insurance. Regions Insurance Services, Inc. offers credit-related
insurance products, such as title, term life, credit life, environmental, crop and mortgage insurance, as well as
debt cancellation products to customers of Regions. Regions Insurance Group, Inc. is one of the twenty largest
insurance brokers in the United States based on annual revenues.
Regions has several subsidiaries and affiliates that are agents or reinsurers of credit life insurance products
relating to the activities of certain affiliates of Regions. Regions Investment Services, Inc., which sells annuities
and life insurance products to Regions Bank customers, is a wholly-owned subsidiary of Regions Bank. Regions
Equipment Finance Corporation, a subsidiary of Regions Bank, provides domestic and international equipment
financing products, focusing on commercial clients.
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
periodically 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 22 “Business Segment Information” to the consolidated financial statements
included under Item 8. of this Annual Report on Form 10-K for information required by this item.
Supervision and Regulation
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 Federal Deposit Insurance Corporation’s (“FDIC”)
Deposit Insurance Fund (the “DIF”) 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. Changes in
applicable law or regulation, and in their interpretation and application by regulatory agencies and other
governmental authorities, cannot be predicted, but they may have a material effect on the business and results of
Regions and its subsidiaries.
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