Key points for the quarter included:

Loss of 37 cents per diluted share for the quarter ended September 30, 2009, reflects the company's efforts to aggressively address loan portfolio stress and a charge related to branch consolidation

Solid underlying business performance continues, including strong account and deposit growth. Average low cost deposits increased $1.3 billion versus the second quarter, including a $701 million or 3 percent rise in average non-interest bearing funds.

Opened a record 270,000 new retail and deposit checking accounts during the third quarter, up 29 percent versus the same quarter last year. New account openings for first nine months reached 762,000, putting Regions on track to exceed full-year goal of one million new accounts.

The net interest margin expanded 11 basis points to 2.73 percent; net interest income rose 2 percent versus second quarter

Non-interest revenues reflect higher service charges from increased transaction volume and new account growth, as well as increased mortgage income, partially offset by a reduction in brokerage income

Focused on efficiency, Regions began execution of a branch consolidation plan through which it will consolidate 121 branches; associated expenses totaled $41 million in the third quarter; future annual net savings to approximate $21 million

Non-performing assets, excluding loans held for sale, increased $662 million, well below second quarter's increase of $1.1 billion; gross inflow of non-performing loans lower than previous quarter.

Net loan charge-offs increased to $680 million or an annualized 2.86 percent of average loans, driven by value-related write-downs and problem asset dispositions

Allowance for credit losses increased to 2.90 percent of loans with $1.025 billion provision for loan losses, exceeding net charge-offs by $345 million

Capital remains well above regulatory minimums

 Earnings Highlights                                                                                                  Three months ended:                                         
 (In millions, except per share data)                                                                                 September 30, 2009   June 30, 2009       September 30, 2008 
                                                                                                                      Amount   Dil. EPS    Amount   Dil. EPS   Amount   Dil. EPS  
 Earnings                                                                                                                                                                         
 Net interest income                                                                                                  $845                 $831                $922               
 Non-interest income *                                                                                                772                  1,199               719                
 Non-interest expense                                                                                                 1,243                1,231               1,128              
 Pre-tax pre-provision net revenue                                                                                    374                  799                 513                
 Provision for loan losses                                                                                            1,025                912                 417                
 Net income (loss)                                                                                                    ($377)   ($0.32)     ($188)   ($0.22)    $79      $0.11     
 Preferred dividend expense and accretion                                                                             $60      (0.05)      56       (0.06)     -        -         
 Net income (loss) available to common shareholders                                                                   ($437)   ($0.37)     ($244)   ($0.28)    $79      $0.11     
                                                                                                                                                                                  
 GAAP to Non-GAAP Reconciliation                                                                                                                                                  
                                                                                                                                                                                  
 Net income (loss) available to common shareholders (GAAP)                                                            ($437)   ($0.37)     ($244)   ($0.28)    $79      $0.11     
 Merger-related charges, net of tax**                                                                                 -        -           -        -          $16      $0.02     
 Net income (loss) available to common shareholders, excluding merger charges (Non-GAAP)**                            ($437)   ($0.37)     ($244)   ($0.28)    $95      $0.13     
                                                                                                                                                                                  
 Key ratios                                                                                                                                                                       
 Net interest margin (FTE)                                                                                            2.73%                2.62%               3.10%              
 Return on average assets***                                                                                          (1.24%)              (0.67%)             0.22%              
 Return on average tangible common equity**, ***                                                                      (19.48%)             (12.34%)            4.20%              
                                                                                                                                                                                  
 Allowance for loan losses as % of net loans                                                                          2.83%                2.37%               1.49%              
 Net charge-offs as % of average net loans***                                                                         2.86%                2.06%               1.68%              
 Non-performing assets as % of loans and other real estate                                                            4.40%                3.55%               1.79%              
 Non-performing assets as % of loans and other real estate (excluding loans held for sale)                            3.99%                3.17%               1.66%              
 Non-performing assets (including 90+ past due) as % of loans and other real estate                                   5.08%                4.18%               2.25%              
 Non-performing assets (including 90+ past due) as % of loans and other real estate (excluding loans held for sale)   4.68%                3.80%               2.12%              


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*Quarter ended September 30, 2009, reflects $4 million related to leveraged lease transactions, which was offset by $4 million of incremental tax expense; quarter ended June 30, 2009, reflects $189 million related to leveraged lease transactions, which was offset by $196 million of incremental tax expense.

** See "Use of non-GAAP financial measures" at the end of this release

*** Annualized

Strong fundamentals overshadowed by credit quality issues

Regions' 2009 third quarter loss of $437 million, or 37 cents per fully diluted share, was driven by increased loan loss provisioning, reflective of continued economic weakness and the company's ongoing efforts to identify and address credit-related issues as it further improves the risk profile of its balance sheet. Additionally, non-interest expenses include $41 million of branch consolidation costs, as well as higher professional fees and other real estate costs.