regions SUPP 2Q 07.FINAL-rev

- Regions Financial reported quarterly earnings of $0.63 per share or $0.69 per share excluding merger charges - Key drivers of earnings were fee income growth, strong performance of Morgan Keegan, low credit costs, and faster than expected achievement of merger cost savings - Excellent progress integrating recent mergers, including successful conversion of 633 branches in Alabama and Florida in July - Maintained disciplined balance sheet and capital management with solid loan growth and increased low-cost deposits - Increased non-interest revenue and fee income despite divesting branches, while net interest income declined due to margin compression from the divestitures - Credit costs remained low while strengthening loan loss reserves