regions SUPP 4Q 07

Regions Financial Corporation reported quarterly earnings of $0.10 per share, or $0.24 per share excluding merger charges. Earnings were significantly impacted by provisions for loan losses, especially in its residential builder portfolio due to the decline in real estate values. Non-performing assets increased primarily due to the builder portfolio. Integration of its recent merger was completed, with cost saves exceeding targets. Fee income growth offset lower net interest income as loan growth remained modest.