<SUBMISSION>
<ACCESSION-NUMBER>0001281761-04-000068
<TYPE>10-Q
<PUBLIC-DOCUMENT-COUNT>6
<PERIOD>20040630
<FILING-DATE>20040806
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>REGIONS FINANCIAL CORP
<CIK>0001281761
<ASSIGNED-SIC>6021
<IRS-NUMBER>630589368
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>10-Q
<ACT>34
<FILE-NUMBER>000-50831
<FILM-NUMBER>04958731
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>417 N 20TH ST
<CITY>BIRMINGHAM
<STATE>AL
<ZIP>35202
<PHONE>205-944-1300
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>417 N 20TH ST
<CITY>BIRMINGHAM
<STATE>AL
<ZIP>35202
</MAIL-ADDRESS>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>NEW REGIONS FINANCIAL CORP
<DATE-CHANGED>20040225
</FORMER-COMPANY>
</FILER>
<DOCUMENT>
<TYPE>10-Q
<SEQUENCE>1
<FILENAME>rf10q204.htm
<TEXT>
<HTML>
<HEAD>
<META NAME="Generator" CONTENT="Microsoft Word 97">
<TITLE>UNITED STATES SECURITIES AND EXCHANGE COMMISSION</TITLE>
</HEAD>
<BODY LINK="#0000ff" VLINK="#800080">

<B><FONT SIZE=4><P ALIGN="CENTER">UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION<BR>
</B></FONT>Washington, D.C. 20549 </P>
<B><FONT SIZE=6><P ALIGN="CENTER">Form 10-Q</P>
</FONT><P ALIGN="CENTER"></P></B>
<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 CELLPADDING=1 WIDTH=707>
<TR><TD WIDTH="4%" VALIGN="MIDDLE">
<B><P>[X]</B></TD>
<TD WIDTH="3%" VALIGN="MIDDLE">
<P>&nbsp;&nbsp;</TD>
<TD WIDTH="93%" VALIGN="MIDDLE">
<B><P>Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934</B></TD>
</TR>
<TR><TD WIDTH="7%" VALIGN="MIDDLE" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="93%" VALIGN="MIDDLE">
<P>For the quarterly period ended  <B>&nbsp;June 30, 2004</B></TD>
</TR>
<TR><TD WIDTH="7%" VALIGN="MIDDLE" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="93%" VALIGN="MIDDLE">
<P ALIGN="CENTER">or</TD>
</TR>
<TR><TD WIDTH="4%" VALIGN="MIDDLE">
<B><P>[&nbsp;&nbsp;&nbsp;]</B></TD>
<TD WIDTH="3%" VALIGN="MIDDLE">
<P>&nbsp;&nbsp;</TD>
<TD WIDTH="93%" VALIGN="MIDDLE">
<B><P>Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934</B></TD>
</TR>
<TR><TD WIDTH="7%" VALIGN="MIDDLE" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="93%" VALIGN="MIDDLE">
<P>For the transition period from ____________________<B>&nbsp;&nbsp;to&nbsp;&nbsp;____________________</B></TD>
</TR>
</TABLE>
</CENTER></P>

<B><P ALIGN="CENTER"></P></B>
<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 WIDTH=564>
<TR><TD WIDTH="49%" VALIGN="TOP">
<P ALIGN="RIGHT">Commission File Number:</TD>
<TD WIDTH="51%" VALIGN="TOP">
<P>  0-6159&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="51%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
</TABLE>
</CENTER></P>

<FONT FACE="Courier"></FONT>
<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 WIDTH=566>
<TR><TD VALIGN="TOP">
<B><FONT SIZE=6><P ALIGN="CENTER">Regions Financial Corporation</B></FONT></TD>
</TR>
<TR><TD VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD VALIGN="TOP" HEIGHT=23>
<I><FONT SIZE=2><P ALIGN="CENTER">(Exact name of registrant as specified in its charter)</I></FONT> </TD>
</TR>
</TABLE>
</CENTER></P>

<FONT FACE="Courier"><P ALIGN="CENTER"></P></FONT>
<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 WIDTH=572>
<TR><TD WIDTH="50%" VALIGN="MIDDLE">
<FONT SIZE=3><P>&nbsp;</FONT></TD>
<TD WIDTH="6%" VALIGN="MIDDLE">
<FONT SIZE=3><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="44%" VALIGN="MIDDLE">
<FONT SIZE=3><P>&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP">
<B><FONT SIZE=3><P ALIGN="CENTER">Delaware</B></FONT></TD>
<TD WIDTH="6%" VALIGN="MIDDLE">&nbsp;</TD>
<TD WIDTH="44%" VALIGN="BOTTOM">
<B><FONT SIZE=3><P ALIGN="CENTER">63-0589368</B></FONT></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="6%" VALIGN="MIDDLE" HEIGHT=1><P></P></TD>
<TD WIDTH="44%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP">
<I><FONT SIZE=3><P ALIGN="CENTER">(State or other jurisdiction of<BR>
incorporation or organization)</I></FONT></TD>
<TD WIDTH="6%" VALIGN="MIDDLE">&nbsp;</TD>
<TD WIDTH="44%" VALIGN="BOTTOM">
<I><FONT SIZE=3><P ALIGN="CENTER">(IRS Employer Identification Number)<BR>
</I></FONT></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="MIDDLE">
<FONT SIZE=3><P>&nbsp;</FONT></TD>
<TD WIDTH="6%" VALIGN="MIDDLE">
<FONT SIZE=3><P>&nbsp;</FONT></TD>
<TD WIDTH="44%" VALIGN="MIDDLE">
<FONT SIZE=3><P>&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP">
<B><FONT SIZE=3><P ALIGN="CENTER">417 North 20<SUP>th</SUP> Street<BR>
Birmingham, Alabama</B></FONT></TD>
<TD WIDTH="6%" VALIGN="MIDDLE">&nbsp;</TD>
<TD WIDTH="44%" VALIGN="BOTTOM">
<FONT SIZE=3><P ALIGN="CENTER"><BR>
<B>35203</B></FONT></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="6%" VALIGN="MIDDLE" HEIGHT=1><P></P></TD>
<TD WIDTH="44%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP">
<I><FONT SIZE=3><P ALIGN="CENTER">(Address of principal executive offices)</I></FONT></TD>
<TD WIDTH="6%" VALIGN="MIDDLE">&nbsp;</TD>
<TD WIDTH="44%" VALIGN="BOTTOM">
<I><FONT SIZE=3><P ALIGN="CENTER">(Zip code)</I></FONT></TD>
</TR>
</TABLE>
</CENTER></P>

<B><FONT SIZE=2><P ALIGN="CENTER"></P></B></FONT>
<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 WIDTH=576>
<TR><TD VALIGN="TOP">
<B><FONT SIZE=3><P ALIGN="CENTER">(205) 944-1300</B></FONT></TD>
</TR>
<TR><TD VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD VALIGN="TOP" HEIGHT=23>
<I><FONT SIZE=3><P ALIGN="CENTER">(Registrant's telephone number, including area code)</I></FONT></TD>
</TR>
<TR><TD VALIGN="TOP">
<B><FONT SIZE=3><P ALIGN="CENTER">&nbsp;</B></FONT></TD>
</TR>
<TR><TD VALIGN="TOP">
<B><FONT SIZE=3><P ALIGN="CENTER">NOT APPLICABLE</B></FONT></TD>
</TR>
<TR><TD VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD VALIGN="TOP" HEIGHT=23>
<I><FONT SIZE=3><P ALIGN="CENTER">(Former name, former address and former fiscal year, if changed since last report)</I></FONT></TD>
</TR>
</TABLE>
</CENTER></P>

<P ALIGN="CENTER"></P>
<FONT SIZE=3><P>Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.</P></FONT>
<P ALIGN="LEFT"><TABLE CELLSPACING=0 BORDER=0 WIDTH=217>
<TR><TD WIDTH="26%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">[X]</FONT></TD>
<TD WIDTH="17%" VALIGN="MIDDLE">
<FONT SIZE=3><P>Yes</FONT></TD>
<TD WIDTH="17%" VALIGN="MIDDLE">
<FONT SIZE=3><P ALIGN="CENTER">&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="MIDDLE">
<FONT SIZE=3><P ALIGN="RIGHT">[&nbsp;&nbsp;]</FONT></TD>
<TD WIDTH="17%" VALIGN="MIDDLE">
<FONT SIZE=3><P>No</FONT></TD>
</TR>
</TABLE>
</P>

<FONT SIZE=3>
<P>Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).</P></FONT>
<P ALIGN="LEFT"><TABLE CELLSPACING=0 BORDER=0 WIDTH=217>
<TR><TD WIDTH="26%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">[X]</FONT></TD>
<TD WIDTH="17%" VALIGN="MIDDLE">
<FONT SIZE=3><P>Yes</FONT></TD>
<TD WIDTH="17%" VALIGN="MIDDLE">
<FONT SIZE=3><P ALIGN="CENTER">&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="MIDDLE">
<FONT SIZE=3><P ALIGN="RIGHT">[&nbsp;&nbsp;]</FONT></TD>
<TD WIDTH="17%" VALIGN="MIDDLE">
<FONT SIZE=3><P>No</FONT></TD>
</TR>
</TABLE>
</P>


<FONT SIZE=3><P>The number of shares outstanding of each of the issuer's classes of common stock was 462,087,768 shares of common stock, par value $.01, outstanding as of July 31, 2004.</P>
</FONT><P ALIGN="CENTER"></P>
<P><HR ALIGN="LEFT"></P>
<TABLE CELLSPACING=0 BORDER=0 WIDTH=580>
<TR><TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="55%" VALIGN="TOP">
<B><FONT SIZE=3><P ALIGN="CENTER">REGIONS FINANCIAL COPORATION</B></FONT></TD>
<TD WIDTH="33%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="55%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="33%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="55%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">INDEX</FONT></TD>
<TD WIDTH="33%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="55%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="33%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="55%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="33%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">Page Number</FONT></TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=3><P>PART I.</FONT></TD>
<TD WIDTH="55%" VALIGN="TOP">
<FONT SIZE=3><P><A NAME="table"></A>FINANCIAL INFORMATION</FONT></TD>
<TD WIDTH="33%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="55%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="33%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=3><P>Item 1.</FONT></TD>
<TD WIDTH="55%" VALIGN="TOP">
<FONT SIZE=3><P>Financial Statements (Unaudited)</FONT></TD>
<TD WIDTH="33%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="55%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="33%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="55%" VALIGN="TOP">
<FONT FACE="Courier"><P></FONT><A HREF="#soc"><FONT SIZE=3>Consolidated Statements of Condition -</FONT></A><FONT SIZE=3> </FONT></TD>
<TD WIDTH="33%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="55%" VALIGN="TOP">
<FONT SIZE=3><P>June 30, 2004, December 31, 2003</FONT></TD>
<TD WIDTH="33%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="55%" VALIGN="TOP">
<FONT SIZE=3><P>and June 30, 2003</FONT></TD>
<TD WIDTH="33%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">4</FONT></TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="55%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="33%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="55%" VALIGN="TOP">
<FONT FACE="Courier"><P></FONT><A HREF="#soi"><FONT SIZE=3>Consolidated Statements of Income -</FONT></A><FONT SIZE=3> </FONT></TD>
<TD WIDTH="33%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="55%" VALIGN="TOP">
<FONT SIZE=3><P>Six months and three months ended</FONT></TD>
<TD WIDTH="33%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="55%" VALIGN="TOP">
<FONT SIZE=3><P>June 30, 2004 and June 30, 2003</FONT></TD>
<TD WIDTH="33%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">5</FONT></TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="55%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="33%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="55%" VALIGN="TOP">
<FONT FACE="Courier"><P></FONT><A HREF="#sose"><FONT SIZE=3>Consolidated Statement of Stockholders' Equity -</FONT></A></TD>
<TD WIDTH="33%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="55%" VALIGN="TOP">
<FONT SIZE=3><P>Six months ended June 30, 2004</FONT></TD>
<TD WIDTH="33%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">6</FONT></TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="55%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="33%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="55%" VALIGN="TOP">
<FONT FACE="Courier"><P></FONT><A HREF="#socf"><FONT SIZE=3>Consolidated Statements of Cash Flows -</FONT></A><FONT SIZE=3> </FONT></TD>
<TD WIDTH="33%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="55%" VALIGN="TOP">
<FONT SIZE=3><P>Six months ended June 30, 2004 and</FONT></TD>
<TD WIDTH="33%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="55%" VALIGN="TOP">
<FONT SIZE=3><P>June 30, 2003</FONT></TD>
<TD WIDTH="33%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">7</FONT></TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="55%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="33%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="55%" VALIGN="TOP">
<FONT FACE="Courier"><P></FONT><A HREF="#notes"><FONT SIZE=3>Notes to Consolidated Financial Statements</FONT></A></TD>
<TD WIDTH="33%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">8</FONT></TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="55%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="33%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="55%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="33%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=3><P>Item 2. </FONT></TD>
<TD WIDTH="55%" VALIGN="TOP">
<FONT FACE="Courier"><P></FONT><A HREF="#mda"><FONT SIZE=3>Management's Discussion and Analysis of</FONT></A></TD>
<TD WIDTH="33%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="55%" VALIGN="TOP">
<FONT FACE="Courier"><P></FONT><A HREF="#mda"><FONT SIZE=3>Financial Condition and Results of Operations</FONT></A></TD>
<TD WIDTH="33%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">21</FONT></TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="55%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="33%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=3><P>Item 3.</FONT></TD>
<TD WIDTH="55%" VALIGN="TOP">
<FONT FACE="Courier"><P></FONT><A HREF="#item3"><FONT SIZE=3>Qualitative and Quantitative Disclosures about</FONT></A></TD>
<TD WIDTH="33%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="55%" VALIGN="TOP">
<FONT FACE="Courier"><P></FONT><A HREF="#item3"><FONT SIZE=3>Market Risk</FONT></A></TD>
<TD WIDTH="33%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">48</FONT></TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="55%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="33%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=3><P>Item 4.</FONT></TD>
<TD WIDTH="55%" VALIGN="TOP">
<FONT FACE="Courier"><P></FONT><A HREF="#item4"><FONT SIZE=3>Controls and Procedures</FONT></A></TD>
<TD WIDTH="33%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">48</FONT></TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="55%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="33%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="55%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="33%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=3><P>PART II.</FONT></TD>
<TD WIDTH="55%" VALIGN="TOP">
<FONT SIZE=3><P>OTHER INFORMATION</FONT></TD>
<TD WIDTH="33%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="55%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="33%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=3><P>Item 2.</FONT></TD>
<TD WIDTH="55%" VALIGN="TOP">
<FONT FACE="Courier"><P></FONT><A HREF="#item2"><FONT SIZE=3>Issuer Purchase of Equity Securities</FONT></A></TD>
<TD WIDTH="33%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">48</FONT></TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="55%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="33%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=3><P>Item 4.</FONT></TD>
<TD WIDTH="55%" VALIGN="TOP">
<FONT FACE="Courier"><P></FONT><A HREF="#pIIitem4"><FONT SIZE=3>Submission of Matters to a Vote of Security Holders</FONT></A></TD>
<TD WIDTH="33%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">49</FONT></TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="55%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="33%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=3><P>Item 6. </FONT></TD>
<TD WIDTH="55%" VALIGN="TOP">
<FONT SIZE=3><P></FONT><A HREF="#item6"><FONT SIZE=3>Exhibits and Reports on Form 8-K</FONT></A></TD>
<TD WIDTH="33%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">49-50</FONT></TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="55%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="33%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="55%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="33%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP" COLSPAN=2>
<FONT FACE="Courier"><P></FONT><A HREF="#sign"><FONT SIZE=3>SIGNATURES</FONT></A></TD>
<TD WIDTH="33%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">51</FONT></TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="55%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="33%" VALIGN="TOP">&nbsp;</TD>
</TR>
</TABLE>

<FONT FACE="Courier"><P><HR ALIGN="RIGHT"></P>
</FONT><B><FONT SIZE=3><P ALIGN="CENTER">Forward Looking Statements</P>
</B>
<P>This Quarterly Report on Form 10-Q, other periodic reports filed by Regions Financial Corporation ("Regions") under the Securities Exchange Act of 1934, as amended, and any other written or oral statements made by or on behalf of Regions may include forward looking statements which reflect Regions' current views with respect to future events and financial performance.  Such forward-looking statements are made in good faith by Regions pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995.  The forward-looking statements are based on current expectations and general assumptions and are subject to various risks, uncertainties, and other factors that may cause actual results to differ materially from the views, beliefs, and projections expressed in such statements.  These risks, uncertainties and other factors include, but are not limited to, those described below.</P>

<P>Some factors are specific to Regions, including:</P>


<UL>

<UL>
<LI>The cost and other effects of material contingencies, including litigation contingencies.</LI></UL>
</UL>



<UL>

<UL>
<LI>Regions' ability to expand into new markets and to maintain profit margins in the face of pricing pressures.</LI></UL>
</UL>



<UL>

<UL>
<LI>Regions' ability to keep pace with technological changes.</LI></UL>
</UL>



<UL>

<UL>
<LI>Regions' ability to develop competitive new products and services in a timely manner and the acceptance of such products and services by Regions' customers and potential customers.</LI></UL>
</UL>



<UL>

<UL>
<LI>Regions' ability to effectively manage interest rate risk and other market risk, credit risk and operational risk.</LI></UL>
</UL>



<UL>

<UL>
<LI>Regions' ability to manage fluctuations in the value of assets and liabilities and off-balance sheet exposure so as to maintain sufficient capital and liquidity to support Regions' business.</LI></UL>
</UL>



<UL>

<UL>
<LI>Regions' ability to achieve the earnings expectations related to the businesses that were acquired or that may be acquired in the future, which in turn depends on a variety of factors, including:</LI></UL>
</UL>



<UL>
<UL>

<UL>
<LI>Regions' ability to achieve the anticipated cost savings and revenue enhancements with respect to the acquired operations;</LI></UL>
</UL>
</UL>



<UL>
<UL>

<UL>
<LI>the assimilation of the acquired operations to Regions' corporate culture, including the ability to instill Regions' credit practices and efficient approach to the acquired operations; and</LI></UL>
</UL>
</UL>



<UL>
<UL>

<UL>
<LI>the continued growth of the markets that the acquired entities serve, consistent with recent historical experience.</LI></UL>
</UL>
</UL>


<P>Other factors which may affect Regions apply to the financial services industry more generally, including:</P>


<UL>

<UL>
<LI>Further easing of restrictions on participants in the financial services industry, such as banks, securities brokers and dealers, investment companies and finance companies, may increase competitive pressures.</LI></UL>
</UL>



<UL>

<UL>
<LI>Possible changes in interest rates may increase funding costs and reduce earning asset yields, thus reducing margins.</LI></UL>
</UL>



<UL>

<UL>
<LI>Possible changes in general economic and business conditions in the United States and the South in general and in the communities Regions serves in particular may lead to a deterioration in credit quality, thereby increasing provisioning costs, or a reduced demand for credit, thereby reducing earning assets.</LI></UL>
</UL>



<UL>

<UL>
<LI>The  threat or occurrence of war or acts of terrorism and the existence or exacerbation of general geopolitical instability and uncertainty.</LI></UL>
</UL>



<UL>

<UL>
<LI>Possible changes in trade, monetary and fiscal policies, laws, and regulations, and other activities of governments, agencies, and similar organizations, including changes in accounting standards, may have an adverse effect on business.</LI></UL>
</UL>



<UL>

<UL>
<LI>Possible changes in consumer and business spending and saving habits could affect Regions' ability to increase assets and to attract deposits.</LI></UL>
</UL>


<P>&#9;In addition, statements made in this Quarterly Report on Form 10-Q, other periodic reports filed by Regions under the Exchange Act, and other written or oral statements made by or on behalf of Regions may include forward looking statements relating to the benefits of the merger between Regions and Union Planters Corporation, including future financial and operating results, and Regions' and Union Planters' plans, objectives, expectations and intentions.  Such statements involve risks and uncertainties that may cause results to differ materially from those set forth in these statements.</P>
<P>&#9;The following factors, among those addressed above and others, could cause actual results to differ materially from those set forth in such forward-looking statements: </P>

<UL>

<UL>
<LI>The level and timeliness of realization, if any, of expected cost savings and revenue synergies from the merger. </LI>
<LI>Difficulties related to the integration of the businesses of Regions and Union Planters, including integration of information systems and retention of key personnel.</LI>
<LI>Disruption from the merger may make it more difficult to maintain relationships with clients, employees or suppliers.</LI>
<LI>A materially adverse change in the financial condition of Regions, Union Planters or the combined company.</LI>
<LI>Lower than expected revenues following the merger.</LI>
<LI>Other difficulties in effecting the merger.</LI></UL>
</UL>


<P>The words "believe," "expect," "anticipate," "project," and similar expressions signify forward-looking statements.  Readers are cautioned not to place undue reliance on any forward-looking statements made by or on behalf of Regions.  Any such statement speaks only as of the date the statement was made. Regions undertakes no obligation to update or revise any forward-looking statements.</P>

<P><HR ALIGN="RIGHT"></P>
</FONT><FONT FACE="Courier"><P></FONT><A HREF="#table"><FONT SIZE=3>Table of Contents</FONT></A></P>
<U><FONT SIZE=3></U></FONT>
<TABLE CELLSPACING=0 BORDER=0 WIDTH=667>
<TR><TD VALIGN="TOP" COLSPAN=6 HEIGHT=14>
<U><FONT SIZE=3><P ALIGN="CENTER"><A NAME="soc"></A>REGIONS FINANCIAL CORPORATION AND SUBSIDIARIES</U></FONT></TD>
</TR>
<TR><TD VALIGN="TOP" COLSPAN=6 HEIGHT=14>
<U><FONT SIZE=3><P ALIGN="CENTER">CONSOLIDATED STATEMENTS OF CONDITION</U></FONT></TD>
</TR>
<TR><TD VALIGN="TOP" COLSPAN=6 HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">(DOLLAR AMOUNTS IN THOUSANDS) (UNAUDITED)</FONT></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="CENTER">June 30,</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="CENTER">December 31,</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="CENTER">June 30,</FONT></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" HEIGHT=14>
<U><FONT SIZE=1><P>ASSETS</U></FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="CENTER">2004</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="CENTER">2003</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="CENTER">2003</FONT></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P>Cash and due from banks</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">$ 1,254,432</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">$ 1,255,853</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">$ 1,235,107</FONT></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P>Interest-bearing deposits in other banks</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">    35,802</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">     96,537</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">    154,317</FONT></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P>Securities held to maturity</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">     31,639</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">     30,943</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">     32,082</FONT></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P>Securities available for sale</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">  8,717,580 </FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">  9,056,861</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">  9,487,220 </FONT></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P>Trading account assets</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">    754,213</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">    816,074</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">    897,732</FONT></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P>Loans held for sale</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">    1,231,132</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">  1,241,852</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">      1,487,608</FONT></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P>Federal funds sold and securities </FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P>purchased under agreements to resell</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">    810,581</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">    577,989</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">    572,226</FONT></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P>Margin receivables</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">    549,673</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">    503,575</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">    682,433</FONT></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P>Loans</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT"> 33,863,816</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT"> 32,414,848</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT"> 31,945,121</FONT></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P>Unearned income</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">   (227,032)</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">   (230,525)</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">   (229,921)</FONT></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P>Loans, net of unearned income</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT"> 33,636,784</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT"> 32,184,323</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT"> 31,715,200</FONT></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P>Allowance for loan losses</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">   (452,677)</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">   (454,057)</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">   (456,672)</FONT></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P>Net loans</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT"> 33,184,107</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT"> 31,730,266</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT"> 31,258,528</FONT></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P>Premises and equipment</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">       639,822</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">    629,638</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">    623,050</FONT></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P>Interest receivable</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">       182,636</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">    194,501</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">    208,094</FONT></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P>Due from customers on acceptances</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">         9,604</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">     61,053</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">     19,912</FONT></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P>Excess purchase price</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">1,101,425</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">1,083,416</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">1,073,386</FONT></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P>Mortgage servicing rights</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">156,774</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">126,846</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">96,333</FONT></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P>Other assets</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">    1,097,373</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">  1,192,592</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">  1,720,303</FONT></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">$49,756,793</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">$48,597,996</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">$49,548,331</FONT></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1>
<FONT SIZE=1><P ALIGN="RIGHT">   </FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<U><FONT SIZE=1><P>LIABILITIES AND STOCKHOLDERS' EQUITY</U></FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P>Deposits:</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P>Non-interest-bearing</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">$  5,953,180</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">$  5,717,747</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">$  5,530,777</FONT></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P>Interest-bearing</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT"> 28,483,781</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT"> 27,014,788</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT"> 26,335,738</FONT></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P>Total deposits</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT"> 34,436,961</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT"> 32,732,535</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT"> 31,866,515</FONT></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P>Borrowed Funds:</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P>Short-term borrowings:</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P>Federal funds purchased and securities </FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P>sold under agreements to repurchase</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">  3,702,172</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">  3,031,706</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">  4,076,180</FONT></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P>Commercial paper</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">     -0- </FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">      5,500</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">       17,250</FONT></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P>Other short-term borrowings</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">  1,110,863</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">  1,389,832</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">  1,999,772</FONT></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P>Total short-term borrowings</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">  4,813,035</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">  4,427,038</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">  6,093,202</FONT></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P>Long-term borrowings</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">  4,580,054  </FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">  5,711,752</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">  5,439,448 </FONT></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P>Total borrowed funds</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT"> 9,393,089 </FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">  10,138,790</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">  11,532,650 </FONT></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P>Bank acceptances outstanding</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">     9,604</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">     61,053</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">       19,912</FONT></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P>Other liabilities</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">  1,542,543</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">  1,213,503</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">     1,758,954</FONT></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P>Total liabilities</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT"> 45,382,197</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT"> 44,145,881</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">45,178,031</FONT></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P>Stockholders' Equity:</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P>Preferred stock, par value $1.00 a share:</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P>Authorized 10,000,000 shares in 2004 and 5,000,000 shares in 2003</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">         -0- </FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">         -0-</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">         -0- </FONT></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P>Common stock, par value $.01 a share in 2004 and $.625 in 2003:</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P>Authorized 1,500,000,000 shares in 2004 and</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P>500,000,000 shares in 2003,</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P>issued, including treasury stock,</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P>271,573,092; 223,356,484; and   </FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P>222,560,561 shares, respectively</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">    2,716</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">    139,598</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">    139,100</FONT></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P>Surplus</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">    970,024</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">    983,669</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">    965,244</FONT></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P>Undivided profits</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">  3,479,106</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">  3,329,023</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">  3,142,722</FONT></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P>Treasury stock, at cost -0-;  1,389,000; and -0- shares, respectively</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">         -0-</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">         (49,944)</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">    -0-</FONT></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P>Unearned restricted stock</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">    (36,904)  </FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">    (13,771)</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">    (17,401)  </FONT></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P>Accumulated other comprehensive (loss) income </FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">    (40,346)</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">     63,540</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">     140,635</FONT></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P>Total Stockholders' Equity</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">  4,374,596 </FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">  4,452,115</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">  4,370,300</FONT></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">$49,756,793</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">$48,597,996</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">$49,548,331</FONT></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P>See notes to consolidated financial statements.</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=14><P></P></TD>
</TR>
</TABLE>

<P><HR ALIGN="RIGHT"></P>
<FONT FACE="Courier"><P></FONT><A HREF="#table"><FONT SIZE=3>Table of Contents</FONT></A></P>
<U><FONT SIZE=3><P ALIGN="CENTER"><A NAME="soi"></A>REGIONS FINANCIAL CORPORATION AND SUBSIDIARIES<BR>
CONSOLIDATED STATEMENTS OF INCOME<BR>
</U>(AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA) (UNAUDITED)</P>
</FONT><FONT SIZE=1>
<P>&#9;</P></FONT>
<TABLE CELLSPACING=0 BORDER=0 WIDTH=712>
<TR><TD WIDTH="43%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="28%" VALIGN="TOP" COLSPAN=3 HEIGHT=14>
<FONT SIZE=1><P ALIGN="CENTER">Three Months Ended</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="26%" VALIGN="TOP" COLSPAN=3 HEIGHT=14>
<FONT SIZE=1><P ALIGN="CENTER">Six Months Ended</FONT></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="28%" VALIGN="TOP" COLSPAN=3 HEIGHT=14>
<FONT SIZE=1><P ALIGN="CENTER">June 30,</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="26%" VALIGN="TOP" COLSPAN=3 HEIGHT=14>
<FONT SIZE=1><P ALIGN="CENTER">June 30,</FONT></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="CENTER">2004</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="CENTER">2003</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="CENTER">2004</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="CENTER">2003</FONT></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P>Interest Income:</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P>Interest and fees on loans</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">$413,613</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">$435,161</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">$  824,625</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">$  873,058</FONT></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P>Interest on securities:</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P>Taxable interest income</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">82,123</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">88,609</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">    168,680</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">    183,979</FONT></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P>Tax-exempt interest income</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">5,289</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">6,111</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">     10,950</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">     12,544</FONT></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P>Total Interest on Securities</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">87,412</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">94,720</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">   179,630</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">   196,523</FONT></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P>Interest on loans held for sale</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">25,044</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">19,830</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">    45,015</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">    43,178</FONT></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P>Interest on margin receivables</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">4,434</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">3,973</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">     8,626</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">     7,847</FONT></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P>Income on federal funds sold and securities <BR>
purchased under agreements to resell</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT"><BR>
1,448</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT"><BR>
1,391</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT"><BR>
     2,826</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT"><BR>
     3,420</FONT></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P>Interest on time deposits in other banks</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">18</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">49</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">        40</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">        97</FONT></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P>Interest on trading account assets</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">5,911</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">6,822</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">     12,800</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">     13,809</FONT></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P>Total Interest Income</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">537,880</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">561,946</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">   1,073,562</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">   1,137,932</FONT></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P>Interest Expense:</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P>Interest on deposits</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">85,998</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">115,237</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">   170,052</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">   250,084</FONT></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P>Interest on short-term borrowings</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">18,157</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">27,507</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">    37,808</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">    55,140</FONT></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P>Interest on long-term borrowings</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">52,862</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">52,901</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">    105,842</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">    106,504</FONT></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P>Total Interest Expense</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">157,017</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">195,645</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">   313,702</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">   411,728</FONT></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P>Net Interest Income</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">380,863</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">366,301</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">   759,860</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">   726,204</FONT></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P>Provision for loan losses</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">25,000</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">30,000</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">    40,000</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">    61,500</FONT></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P>Net Interest Income After Provision for Loan Losses</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">355,863</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">336,301</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">   719,860</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">   664,704</FONT></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P>Non-Interest Income:</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P>Brokerage and investment banking</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">128,886</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">151,811</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">   267,089</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">   276,838</FONT></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P>Trust department income</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">21,668</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">16,850</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">    42,359</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">    33,956</FONT></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P>Service charges on deposit accounts</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">73,607</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">72,205</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">    145,475</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">    141,930</FONT></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P>Mortgage servicing and origination fees</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">26,246</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">31,757</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">    49,737</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">    59,985</FONT></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P>Securities gains  </FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">149</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">15,799</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">     12,952</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">     25,697</FONT></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P>Other</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">96,803</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">89,702</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">    195,231</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">    181,307</FONT></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P>Total Non-Interest Income</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">347,359</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">378,124</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">   712,843</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">   719,713</FONT></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P>Non-Interest Expense:</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P>Salaries and employee benefits</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">288,194</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">288,937</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">   579,117</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">   561,556</FONT></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P>Net occupancy expense</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">25,985</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">25,518</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">    53,785</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">    51,230</FONT></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P>Furniture and equipment expense</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">19,341</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">20,501</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">    37,471</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">    40,813</FONT></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P>Other</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">141,209</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">149,029</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">   295,456</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">   278,560</FONT></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P>Total Non-Interest Expense</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">474,729</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">483,985</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">   965,829</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">   932,159</FONT></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P>Income Before Income Taxes</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">228,493</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">230,440</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">   466,874</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">   452,258</FONT></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P>Applicable income taxes </FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">66,469</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">65,674</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">    136,315</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">    128,892</FONT></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P>Net Income</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">$162,024</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">$164,766</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">  $  330,559</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">  $  323,366</FONT></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P>Net Income Available to Common Shareholders</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">$159,263</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">$164,766</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">$  325,835</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">$  323,366</FONT></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P>Average number of shares outstanding</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">271,024</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">274,344</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">   272,147</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">   273,970</FONT></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P>Average number of shares outstanding-diluted</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">274,564</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">277,864</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">   275,921</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">   277,247</FONT></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P>Per share:</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P>Net income</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">$0.59</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">$0.60</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">     $1.20</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">     $1.18</FONT></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P>Net income-diluted</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">$0.58</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">$0.59</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">     $1.18</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">     $1.17</FONT></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P>Cash dividends declared</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">$0.33</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">$0.24</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">     $0.67</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">     $0.49</FONT></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P>See notes to consolidated financial statements.</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14><P></P></TD>
</TR>
</TABLE>

<P><HR ALIGN="RIGHT"></P>
<FONT FACE="Courier"><P></FONT><A HREF="#table"><FONT SIZE=3>Table of Contents</FONT></A></P>
<U><FONT SIZE=3><P ALIGN="CENTER"><A NAME="sose"></A>REGIONS FINANCIAL CORPORATION AND SUBSIDIARIES<BR>
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY<BR>
</U>(AMOUNTS IN THOUSANDS) (UNAUDITED)</P></FONT>
<TABLE CELLSPACING=0 BORDER=0 WIDTH=973>
<TR><TD WIDTH="30%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14>
<B><FONT SIZE=1><P ALIGN="CENTER"><BR>
<BR>
<BR>
Common Stock</B></FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14>
<B><FONT SIZE=1><P ALIGN="CENTER"><BR>
<BR>
<BR>
Surplus</B></FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14>
<B><FONT SIZE=1><P ALIGN="CENTER"><BR>
<BR>
<BR>
Undivided Profits</B></FONT></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=14>
<B><FONT SIZE=1><P ALIGN="CENTER"><BR>
<BR>
<BR>
Treasury Stock</B></FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14>
<B><FONT SIZE=1><P ALIGN="CENTER"><BR>
Unearned Restricted<BR>
Stock</B></FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14>
<B><FONT SIZE=1><P ALIGN="CENTER"><BR>
Accumulated Other Comprehensive Income</B></FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14>
<B><FONT SIZE=1><P ALIGN="CENTER"><BR>
<BR>
<BR>
Total</B></FONT></TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<B><FONT SIZE=1><P>BALANCE AT JANUARY 1, 2004</B></FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">  $ 139,598</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">$  983,669</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT"> $3,329,023</FONT></TD>
<TD WIDTH="9%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">$  (49,944)</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">  $(13,771)</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">   $   63,540</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">$4,452,115</FONT></TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P>Comprehensive Income:</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P>Net income</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">    330,559</FONT></TD>
<TD WIDTH="9%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">   330,559</FONT></TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P>Unrealized loss on available for sale securities,</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P>net of tax and reclassification adjustment</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">(104,201)</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">(104,201)</FONT></TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P>Other comprehensive gain from derivatives, net of tax </FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">      315</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">             315</FONT></TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P>Comprehensive income*</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">    330,559</FONT></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">     (103,886)</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">   226,673</FONT></TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P>Cash dividends declared ($0.67 per common share)</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT"> (180,476)</FONT></TD>
<TD WIDTH="9%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">   (180,476)</FONT></TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P>Purchase of treasury stock</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">(156,881)</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">(156,881)</FONT></TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P>Retirement of treasury stock</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">(3,464)</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">(203,361)</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">206,825</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">-0-</FONT></TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P>Reclassification for exchange of 1.2346 shares of $.01</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P>  par value common stock for 1 share of $.625 par</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P>  value common stock in connection with merger</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">(134,765)</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">134,765</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">-0-</FONT></TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P>Common stock transactions:</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P>Stock options exercised</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">       873</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">     28,777</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">29,650</FONT></TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P>Stock issued to employees under incentive plan</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">       474</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">    26,174</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">    (26,753)</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">(105)</FONT></TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P>Amortization of unearned restricted stock</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">3,620                  </FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">3,620</FONT></TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<B><FONT SIZE=1><P>BALANCE AT JUNE 30, 2004</B></FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">  $     2,716</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">$  970,024</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT"> $3,479,106</FONT></TD>
<TD WIDTH="9%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">$           -0-</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">  $(36,904)</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">   $ (40,346)</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">$4,374,596</FONT></TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="TOP" HEIGHT=14>
<B><FONT SIZE=1><P>Disclosure of reclassification amount:</B></FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P>Unrealized holding losses, net of $58,421 in income taxes,</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P>on available for sale securities arising during period</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">  $  (95,782)</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P>Less: Reclassification adjustment, net of ($4,533) in income</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P>taxes, for net gains realized in net income</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">      8,419</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P>Unrealized holding gain on derivatives, net of ($355) in </FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">        </FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P>income taxes</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">      638</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P>Less: Reclassification adjustment, net of ($174) in income</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P>taxes, for amortization of cash flow hedges</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">      323</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P>Comprehensive income, net of $62,773 in income taxes</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=1><P ALIGN="RIGHT">$(103,886)</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="TOP" HEIGHT=1>
<FONT SIZE=1><P>   </FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1>
<FONT SIZE=1><P ALIGN="RIGHT">  </FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=1><P></P></TD>
</TR>
</TABLE>

<FONT SIZE=1><P><BR>
*Comprehensive income for the six months ended June 30, 2003 was $299.9 million. </P>

<P>*Comprehensive income for the three months ended June 30, 2004 was $21.6 million compared to $148.3 million for the three months ended June 30, 2003.</P>

<P><HR ALIGN="RIGHT">See notes to consolidated financial statements.</P>
</FONT><FONT FACE="Courier"><P></FONT><A HREF="#table"><FONT SIZE=3>Table of Contents</FONT></A></P>
<U><FONT SIZE=3><P ALIGN="CENTER"><A NAME="socf"></A>REGIONS FINANCIAL CORPORATION AND SUBSIDIARIES<BR>
CONSOLIDATED STATEMENTS OF CASH FLOWS<BR>
</U> &#9;(DOLLAR AMOUNTS IN THOUSANDS) (UNAUDITED)&#9;&#9;&#9;</P></FONT>
<TABLE CELLSPACING=0 BORDER=0 WIDTH=684>
<TR><TD WIDTH="69%" VALIGN="TOP" HEIGHT=9><P></P></TD>
<TD WIDTH="31%" VALIGN="TOP" COLSPAN=4 HEIGHT=9>
<FONT SIZE=1><P ALIGN="CENTER">Six Months Ended</FONT></TD>
</TR>
<TR><TD WIDTH="69%" VALIGN="TOP" HEIGHT=9><P></P></TD>
<TD WIDTH="31%" VALIGN="TOP" COLSPAN=4 HEIGHT=9>
<FONT SIZE=1><P ALIGN="CENTER">June 30,</FONT></TD>
</TR>
<TR><TD WIDTH="69%" VALIGN="TOP" HEIGHT=9>
<FONT SIZE=1><P>Operating Activities:</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=9>
<FONT SIZE=1><P ALIGN="CENTER">2004</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=9><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=9>
<FONT SIZE=1><P ALIGN="CENTER">2003</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=9><P></P></TD>
</TR>
<TR><TD WIDTH="69%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="69%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=1><P>Net income</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=1><P ALIGN="RIGHT">$   330,559</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=1><P ALIGN="RIGHT">$   323,366</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13><P></P></TD>
</TR>
<TR><TD WIDTH="69%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=1><P>Adjustments to reconcile net cash provided by (used in) operating activities</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="69%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=1><P>Gain on securitization of auto loans</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=1><P ALIGN="RIGHT">-0</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=1><P>-</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=1><P ALIGN="RIGHT">(6,830</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=1><P>)</FONT></TD>
</TR>
<TR><TD WIDTH="69%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=1><P>Depreciation and amortization of premises and equipment</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=1><P ALIGN="RIGHT">31,959</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=1><P ALIGN="RIGHT">33,957</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=13><P></P></TD>
</TR>
<TR><TD WIDTH="69%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=1><P>Provision for loan losses</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=1><P ALIGN="RIGHT">40,000</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=1><P ALIGN="RIGHT">61,500</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13><P></P></TD>
</TR>
<TR><TD WIDTH="69%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=1><P>Net amortization of securities</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=1><P ALIGN="RIGHT">17,730</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=1><P ALIGN="RIGHT">15,008</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=13><P></P></TD>
</TR>
<TR><TD WIDTH="69%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=1><P>Amortization of loans and other assets</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=1><P ALIGN="RIGHT">45,179</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=1><P ALIGN="RIGHT">39,700</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13><P></P></TD>
</TR>
<TR><TD WIDTH="69%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=1><P>(Recapture) impairment of mortgage servicing rights</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=1><P ALIGN="RIGHT">(28,000</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=1><P>)</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=1><P ALIGN="RIGHT">                  19,000</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=13><P></P></TD>
</TR>
<TR><TD WIDTH="69%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=1><P>Amortization of deposits and borrowings</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=1><P ALIGN="RIGHT">434</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=1><P ALIGN="RIGHT">476</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13><P></P></TD>
</TR>
<TR><TD WIDTH="69%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=1><P>Provision for losses on other real estate</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=1><P ALIGN="RIGHT">998</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=1><P ALIGN="RIGHT">1,379</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=13><P></P></TD>
</TR>
<TR><TD WIDTH="69%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=1><P>Deferred income tax expense (benefit)</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=1><P ALIGN="RIGHT">23,270</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=1><P ALIGN="RIGHT">(27,636</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=1><P>)</FONT></TD>
</TR>
<TR><TD WIDTH="69%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=1><P>Loss (gain) on sale of premises and equipment</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=1><P ALIGN="RIGHT">30</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=1><P ALIGN="RIGHT">(186</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=1><P>)</FONT></TD>
</TR>
<TR><TD WIDTH="69%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=1><P>Realized securities gains </FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=1><P ALIGN="RIGHT">(12,952</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=1><P>)</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=1><P ALIGN="RIGHT">(25,697</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=1><P>)</FONT></TD>
</TR>
<TR><TD WIDTH="69%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=1><P>Decrease (increase) in trading account assets</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=1><P ALIGN="RIGHT">                 80,302</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=1><P ALIGN="RIGHT">(111,740</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=1><P>)</FONT></TD>
</TR>
<TR><TD WIDTH="69%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=1><P>Decrease (increase) in loans held for sale</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=1><P ALIGN="RIGHT">10,720</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=1><P ALIGN="RIGHT">(559,446</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=1><P>)</FONT></TD>
</TR>
<TR><TD WIDTH="69%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=1><P>Proceeds from securitization of loans held for sale</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=1><P ALIGN="RIGHT">-0</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=1><P>-</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=1><P ALIGN="RIGHT">576,517</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=13><P></P></TD>
</TR>
<TR><TD WIDTH="69%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=1><P>Increase in margin receivables</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=1><P ALIGN="RIGHT">(46,098</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=1><P>)</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=1><P ALIGN="RIGHT">               (250,096</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=1><P>)</FONT></TD>
</TR>
<TR><TD WIDTH="69%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=1><P>Decrease in interest receivable</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=1><P ALIGN="RIGHT">12,012</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=1><P ALIGN="RIGHT">33,994</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=13><P></P></TD>
</TR>
<TR><TD WIDTH="69%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=1><P>Decrease (increase) in other assets</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=1><P ALIGN="RIGHT">25,326</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=1><P ALIGN="RIGHT">(426,864</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=1><P>)</FONT></TD>
</TR>
<TR><TD WIDTH="69%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=1><P>Increase in other liabilities</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=1><P ALIGN="RIGHT">360,059</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=1><P ALIGN="RIGHT">                499,455</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=13><P></P></TD>
</TR>
<TR><TD WIDTH="69%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=1><P>Other</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=1><P ALIGN="RIGHT">3,515</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=1><P ALIGN="RIGHT">3,506</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13><P></P></TD>
</TR>
<TR><TD WIDTH="69%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="69%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=1><P>Net Cash Provided By Operating Activities</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=1><P ALIGN="RIGHT">895,043</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=1><P ALIGN="RIGHT">                199,363</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=13><P></P></TD>
</TR>
<TR><TD WIDTH="69%" VALIGN="TOP" HEIGHT=5><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=5><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=5><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=5><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=5><P></P></TD>
</TR>
<TR><TD WIDTH="69%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=1><P>Investing Activities:</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13><P></P></TD>
</TR>
<TR><TD WIDTH="69%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=1><P>Net increase in loans </FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=1><P ALIGN="RIGHT">(1,493,784</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=1><P>)</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=1><P ALIGN="RIGHT">   (771,528</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=1><P>)</FONT></TD>
</TR>
<TR><TD WIDTH="69%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=1><P>Proceeds from sale of securities available for sale</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=1><P ALIGN="RIGHT">312,682</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=1><P ALIGN="RIGHT">     336,525</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13><P></P></TD>
</TR>
<TR><TD WIDTH="69%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=1><P>Proceeds from maturity of securities held to maturity</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=1><P ALIGN="RIGHT">559</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=1><P ALIGN="RIGHT">                        812</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=13><P></P></TD>
</TR>
<TR><TD WIDTH="69%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=1><P>Proceeds from maturity of securities available for sale</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=1><P ALIGN="RIGHT">1,708,071</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=1><P ALIGN="RIGHT">    2,405,656</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13><P></P></TD>
</TR>
<TR><TD WIDTH="69%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=1><P>Purchases of securities held to maturity</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=1><P ALIGN="RIGHT">(1,797</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=1><P>)</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=1><P ALIGN="RIGHT">       (251</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=1><P>)</FONT></TD>
</TR>
<TR><TD WIDTH="69%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=1><P>Purchases of securities available for sale</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=1><P ALIGN="RIGHT"> (1,852,864 </FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=1><P>)</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=1><P ALIGN="RIGHT">   (3,295,407</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=1><P>)</FONT></TD>
</TR>
<TR><TD WIDTH="69%" VALIGN="TOP" HEIGHT=10>
<FONT SIZE=1><P>Net decrease in interest-bearing deposits in other banks</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=10>
<FONT SIZE=1><P ALIGN="RIGHT">60,735</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=10>
<FONT SIZE=1><P ALIGN="RIGHT">    149,245</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=10><P></P></TD>
</TR>
<TR><TD WIDTH="69%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=1><P>Proceeds from sale of premises and equipment</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=1><P ALIGN="RIGHT">3,611</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=1><P ALIGN="RIGHT">      8,257</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13><P></P></TD>
</TR>
<TR><TD WIDTH="69%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=1><P>Purchases of premises and equipment</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=1><P ALIGN="RIGHT">(45,784</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=1><P>)</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=1><P ALIGN="RIGHT">    (27,047</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=1><P>)</FONT></TD>
</TR>
<TR><TD WIDTH="69%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=1><P>Net decrease in customers' acceptance liability</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=1><P ALIGN="RIGHT">51,449</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=1><P ALIGN="RIGHT">                  40,408</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13><P></P></TD>
</TR>
<TR><TD WIDTH="69%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="69%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=1><P>Net Cash Used By Investing Activities</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=1><P ALIGN="RIGHT">(1,257,122</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=1><P>)</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=1><P ALIGN="RIGHT">(1,153,330</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=1><P>)</FONT></TD>
</TR>
<TR><TD WIDTH="69%" VALIGN="TOP" HEIGHT=5><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=5><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=5><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=5><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=5><P></P></TD>
</TR>
<TR><TD WIDTH="69%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=1><P>Financing Activities:</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=1><P ALIGN="RIGHT"> </FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13><P></P></TD>
</TR>
<TR><TD WIDTH="69%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=1><P>Net increase (decrease) in deposits</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=1><P ALIGN="RIGHT">1,703,992</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=1><P ALIGN="RIGHT">            (1,060,162</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=1><P>)</FONT></TD>
</TR>
<TR><TD WIDTH="69%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=1><P>Net increase in short-term borrowings</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=1><P ALIGN="RIGHT">385,997</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=1><P ALIGN="RIGHT">2,007,745</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13><P></P></TD>
</TR>
<TR><TD WIDTH="69%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=1><P>Proceeds from long-term borrowings</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=1><P ALIGN="RIGHT">53,813</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=1><P ALIGN="RIGHT">56,177</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=13><P></P></TD>
</TR>
<TR><TD WIDTH="69%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=1><P>Payments on long-term borrowings</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=1><P ALIGN="RIGHT">(1,191,396</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=1><P>)</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=1><P ALIGN="RIGHT">    (2,838</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=1><P>)</FONT></TD>
</TR>
<TR><TD WIDTH="69%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=1><P>Net decrease in bank acceptance liability</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=1><P ALIGN="RIGHT">(51,449</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=1><P>)</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=1><P ALIGN="RIGHT">               (40,408</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=1><P>)</FONT></TD>
</TR>
<TR><TD WIDTH="69%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=1><P>Cash dividends </FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=1><P ALIGN="RIGHT">(180,476</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=1><P>)</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=1><P ALIGN="RIGHT">    (133,301</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=1><P>)</FONT></TD>
</TR>
<TR><TD WIDTH="69%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=1><P>Purchases of treasury stock</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=1><P ALIGN="RIGHT">(156,881</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=1><P>)</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=1><P ALIGN="RIGHT">    -0</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=1><P>-</FONT></TD>
</TR>
<TR><TD WIDTH="69%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=1><P>Proceeds from exercise of stock options</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=1><P ALIGN="RIGHT">29,650</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=1><P ALIGN="RIGHT">21,763</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13><P></P></TD>
</TR>
<TR><TD WIDTH="69%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="69%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=1><P>Net Cash Provided By Financing Activities</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=1><P ALIGN="RIGHT">593,250</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=1><P ALIGN="RIGHT">    848,976</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=13><P></P></TD>
</TR>
<TR><TD WIDTH="69%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="69%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=1><P>Increase (decrease) in Cash and Cash Equivalents</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=1><P ALIGN="RIGHT">231,171</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=1><P ALIGN="RIGHT">     (104,991</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=1><P>)</FONT></TD>
</TR>
<TR><TD WIDTH="69%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=1><P>Cash and Cash Equivalents, Beginning of Period</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=1><P ALIGN="RIGHT">1,833,842</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=1><P ALIGN="RIGHT">  1,912,324</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=13><P></P></TD>
</TR>
<TR><TD WIDTH="69%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="69%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=1><P>Cash and Cash Equivalents, End of Period</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=1><P ALIGN="RIGHT">$ 2,065,013</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=1><P ALIGN="RIGHT"> $ 1,807,333</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13><P></P></TD>
</TR>
<TR><TD WIDTH="69%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="69%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="69%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="69%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=13><P></P></TD>
</TR>
<TR><TD WIDTH="69%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=1><P>See notes to consolidated financial statements.</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=13><P></P></TD>
</TR>
</TABLE>


<FONT FACE="Courier" SIZE=1><P><HR ALIGN="RIGHT"></P>
</FONT><FONT FACE="Courier"><P></FONT><A HREF="#table"><FONT SIZE=3>Table of Contents</FONT></A></P>
<FONT SIZE=3><P ALIGN="CENTER"><A NAME="notes"></A>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<BR>
</P>
<P ALIGN="CENTER">JUNE 30, 2004</P>
<P><BR>
</P>
<U><P>NOTE A - Basis of Presentation</P>
</U>
<P>The accounting and reporting policies of Regions Financial Corporation ("Regions" or the "Company"), conform with accounting principles generally accepted in the United States and with general financial services industry practices. Regions provides a full range of banking and bank-related services to individual and corporate customers through its subsidiaries and branch offices located primarily in Alabama, Arkansas, Florida, Georgia, Louisiana, North Carolina, South Carolina, Tennessee and Texas.  The Company is subject to intense competition from other financial institutions and is also subject to the regulations of certain government agencies and undergoes periodic examinations by those regulatory authorities.</P>

<P>The accompanying unaudited Consolidated Financial Statements have been prepared in accordance with the instructions for Form 10-Q, and, therefore, do not include all information and footnotes necessary for a complete presentation of financial position, results of operations and cash flows in conformity with accounting principles generally accepted in the United States. These financial statements should be read in conjunction with the Consolidated Financial Statements and notes thereto included under Item 8 of the Annual Report on Form 10-K.  It is management's opinion that all adjustments, consisting of only normal and recurring items necessary for a fair presentation, have been included. Please refer to "Critical Accounting Policies" included in Management's Discussion and Analysis.</P>

<P>Regions and Union Planters Corporation ("Union Planters") merged into a new holding company named Regions Financial Corporation on July 1, 2004. Each share of Regions' $0.625 par value common stock was exchanged for 1.2346 shares of the new company $0.01 par value common stock. All per share amounts for all periods presented in this Form 10-Q have been adjusted to reflect the impact of the exchange of Regions' common stock, which occurred on July 1, 2004. In addition, the June 30, 2004 common stock and surplus amounts have been adjusted to reflect the change in par value of Regions' stock, which occurred on July 1, 2004. </P>

<P>Certain amounts in prior periods have been reclassified to conform to the current period presentation.</P>
<P><BR>
</P>
<U><P>NOTE B - Union Planters Merger</P>

</U><P>On July 1, 2004, the Company completed its merger with Union Planters Corporation, headquartered in Memphis, Tennessee. Both companies merged into a new holding company named Regions Financial Corporation upon completion of the transaction. In the transaction, each share of Union Planters Corporation common stock was converted into one share of the new company $0.01 par value common stock and each share of Regions' $0.625 par value common stock was converted into 1.2346 shares of the new company $0.01 par value common stock. The merger was accounted for as a purchase of Union Planters for accounting and financial reporting purposes.  As a result, the historical financial statements of the combined company are the historical financial statements of Regions. </P>
<U>
<P>NOTE C - Earnings Per Share</P>

</U><P>&#9;In connection with Regions' adoption of EITF Issue No. 03-6 (EITF 03-6), "Participating Securities and the Two-Class Method under FASB Statement No. 128, Earnings per Share" in the second quarter of 2004, Regions began using the two-class method to calculate earnings per share. The requirements of EITF 03-6 and the two-class method have been applied to all periods presented. Under the two-class method, Regions allocated a portion of net income to the forward agreement entered into in connection with the accelerated stock purchase agreement executed on March 9, 2004. The following table sets forth the computation of basic net income per share and diluted net income per share.</P>
</FONT>
<TABLE CELLSPACING=0 BORDER=0 WIDTH=646>
<TR><TD WIDTH="39%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="30%" VALIGN="TOP" COLSPAN=3>
<FONT SIZE=3><P ALIGN="CENTER">Three Months Ended June 30,</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="30%" VALIGN="TOP" COLSPAN=3>
<FONT SIZE=3><P ALIGN="CENTER">Six Months Ended June 30,</FONT></TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP">
<FONT SIZE=3><P>(in thousands, except per share amounts)</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">2004</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">2003</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">2004</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">2003</FONT></TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP">
<FONT SIZE=3><P>Numerator:</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>For basic net income per share and </FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>     diluted net income per share, net</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>     income </FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$162,024</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$164,766</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$330,559</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$323,366</FONT></TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP">
<FONT SIZE=3><P>Net income allocable to equity forward</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP">
<FONT SIZE=3><P>     agreement</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">(2,761)</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">-</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">(4,724)</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">-</FONT></TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>For basic net income per share and </FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>     diluted net income per share, net</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>     income available to common </FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>     shareholders </FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$159,263</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$164,766</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$325,835</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$323,366</FONT></TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>Denominator:</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP">
<FONT SIZE=3><P>For basic net income per share -- </FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>     Weighted average shares outstanding</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">271,024</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">274,344</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">272,147</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">273,970</FONT></TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP">
<FONT SIZE=3><P>   Effect of dilutive securities --</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP">
<FONT SIZE=3><P>      Stock options</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">3,540</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">3,520</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">3,774</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">3,277</FONT></TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>For diluted net income per share</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT"> 274,564</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT"> 277,864</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT"> 275,921</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT"> 277,247</FONT></TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>  Basic net income per share</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$0.59</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$0.60</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$1.20</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$1.18</FONT></TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP">
<FONT SIZE=3><P>  Diluted net income per share</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">0.58</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">0.59</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">1.18</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">1.17</FONT></TD>
</TR>
</TABLE>

<FONT SIZE=3>
<P>EITF 03-6 impacted earnings per share for the three months ended March 31, 2004. The impact of EITF 03-6 on the three months ended March 31, 2004 has been included in the earnings per share calculation for the six months ended June 30, 2004. For the three months ended March 31, 2004, Regions reported net income of $168,535,000, basic earnings per share of $0.62, and diluted earning per share of $0.61 (after adjusting per share amounts to reflect the impact of the exchange of Regions' common stock on July 1, 2004, as described in NOTE A). As a result of retroactively applying EITF 03-6, net income was adjusted by $1,963,000 to arrive at net income available to common shareholders of $166,572,000. The resulting restated basic and diluted earnings per share for the three months ended March 31, 2004 are $0.61 and $0.60, respectively.</P>
<U>
<P>NOTE D - Stock-Based Compensation</P>

</U><P>Statement of Financial Accounting Standards No. 123, "Accounting and Disclosure of Stock-Based Compensation" (Statement 123) allows for the option of continuing to follow Accounting Principles Board Opinion No. 25 (APB 25), "Accounting for Stock Issued to Employees", and the related interpretations, or selecting the fair value method of expense recognition as described in Statement 123. The Company has elected to follow APB 25 in accounting for its employee stock options.   Pro forma net income and net income per share data is presented below for the three and six months ended June 30, 2004 and 2003, as if the fair-value method had been applied in measuring compensation costs:</P>
</FONT>
<TABLE CELLSPACING=0 BORDER=0 WIDTH=654>
<TR><TD WIDTH="39%" VALIGN="TOP">
<FONT SIZE=3><P>(in thousands, except per share amounts)</FONT></TD>
<TD WIDTH="29%" VALIGN="TOP" COLSPAN=3>
<FONT SIZE=3><P ALIGN="CENTER">Three Months Ended June 30,</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="29%" VALIGN="TOP" COLSPAN=3>
<FONT SIZE=3><P ALIGN="CENTER">Six Months Ended June 30,</FONT></TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">2004</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">2003</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">2004</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">2003</FONT></TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>Net income available to common</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>   shareholders</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$159,263</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$164,766</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$325,835</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$323,366</FONT></TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP">
<FONT SIZE=3><P>Add:  Stock-based compensation expense</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP">
<FONT SIZE=3><P>   included in net income, net of related </FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP">
<FONT SIZE=3><P>   tax effects</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">1,801</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">1,843</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">2,353</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">4,021</FONT></TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>Less:  Total stock-based compensation </FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>   expense based on fair value method for</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>   all awards, net of related tax effects</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">(4,197)</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">(4,285)</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">(6,932)</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">(8,259)</FONT></TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>Pro forma net income available to  </FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>     common shareholders </FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$156,867</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$162,324</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$321,256</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$319,128</FONT></TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP">
<FONT SIZE=3><P>Per share:</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>  Net income</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$0.59</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$0.60</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$1.20</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$1.18</FONT></TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP">
<FONT SIZE=3><P>  Net income-diluted</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">0.58</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">0.59</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">1.18</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">1.17</FONT></TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>  Pro forma net income</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">0.58</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">0.59</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">1.18</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">1.16</FONT></TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP">
<FONT SIZE=3><P>  Pro forma net income-diluted</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">0.57</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">0.58</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">1.16</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">1.15</FONT></TD>
</TR>
</TABLE>

<FONT SIZE=3>
<P>The weighted average fair value of options granted was $4.54 and $4.57 for the three months and six months ended June 30, 2004, respectively, and $4.97 and $4.52 for the three months and six months ended June 30, 2003, respectively. The fair value of each grant is estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions used for grants in 2004 and 2003:</P>
<U></U></FONT>
<TABLE CELLSPACING=0 BORDER=0 WIDTH=610>
<TR><TD WIDTH="41%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">2004</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="20%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">2003</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="19%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="20%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>  Expected Dividend Yield</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">4.50%</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="20%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">3.70%</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<FONT SIZE=3><P>  Expected Option Life (in years)</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">5.0</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="20%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">5.0</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>  Expected Volatility</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">21.0%</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="20%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">21.8%</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<FONT SIZE=3><P>  Risk-Free Interest Rate</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">3.6%</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="20%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">2.8%</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
</TR>
</TABLE>

<U><FONT SIZE=3>
<P>NOTE E - Business Segment Information</P>
</U><P>&#9;</P>
<P>Regions' segment information is presented based on Regions' primary segments of business.  Each segment is a strategic business unit that serves specific needs of Regions' customers. The Company's primary segment is community banking.  Community banking represents the Company's branch banking functions and has separate management that is responsible for the operation of that business unit.  In addition, Regions has designated as distinct reportable segments the activities of its treasury, mortgage banking, investment banking/brokerage/trust, and insurance divisions. The treasury division includes the Company's bond portfolio, mortgage lending portfolio, and other wholesale activities. Mortgage banking consists of origination and servicing functions of Regions' mortgage operations.  Investment banking includes trust activities and all brokerage and investment activities associated with Morgan Keegan. Insurance includes all business associated with commercial insurance, in addition to credit life products sold to consumer customers. The reportable segment designated "Other" includes activity of Regions' indirect consumer lending division and the parent company. Prior period amounts have been restated to reflect changes in methodology.</P>

<P>The accounting policies used by each reportable segment are the same as those discussed in Note 1 to the Consolidated Financial Statements included under Item 8 of the Annual Report on Form 10-K.  The following table presents financial information for each reportable segment.</P>

<P>Six months ended June 30, 2004</P></FONT>
<P ALIGN="LEFT"><TABLE CELLSPACING=0 BORDER=0 WIDTH=618>
<TR><TD WIDTH="34%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="50%" VALIGN="TOP" COLSPAN=3>
<FONT SIZE=3><P ALIGN="CENTER">Total Banking</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="34%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="34%" VALIGN="TOP">
<FONT SIZE=3><P>(in thousands)</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER"><BR>
Community<BR>
Banking</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER"><BR>
<BR>
Treasury</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER"><BR>
<BR>
Combined</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER"><BR>
Mortgage<BR>
Banking</FONT></TD>
</TR>
<TR><TD WIDTH="34%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="34%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3>
<P>Net interest income</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT"></P>
<P ALIGN="RIGHT">$608,801</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT"></P>
<P ALIGN="RIGHT">$ 139,191</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT"></P>
<P ALIGN="RIGHT">$747,992</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT"></P>
<P ALIGN="RIGHT">$ 28,119</FONT></TD>
</TR>
<TR><TD WIDTH="34%" VALIGN="TOP">
<FONT SIZE=3><P>Provision for loan losses</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">    35,380</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">2,675</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">38,055</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">30</FONT></TD>
</TR>
<TR><TD WIDTH="34%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>Non-interest income</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">    165,096</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">   13,191</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">    178,287  </FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">160,351</FONT></TD>
</TR>
<TR><TD WIDTH="34%" VALIGN="TOP">
<FONT SIZE=3><P>Non-interest expense</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">   428,678</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">   59,474</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">   488,152</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">113,027</FONT></TD>
</TR>
<TR><TD WIDTH="34%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>Income taxes</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">    105,197</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">    33,837</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">   139,034</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT"> 27,926</FONT></TD>
</TR>
<TR><TD WIDTH="34%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="34%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="34%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>   Net income </FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT"> $ 204,642</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT"> $ 56,396</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$261,038</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$ 47,487</FONT></TD>
</TR>
<TR><TD WIDTH="34%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="34%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="34%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="34%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="34%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>Average assets</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$27,278,252</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$14,546,797</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$41,825,049</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$1,488,669</FONT></TD>
</TR>
</TABLE>
</P>

<FONT SIZE=3></FONT>
<P ALIGN="LEFT"><TABLE CELLSPACING=0 BORDER=0 WIDTH=618>
<TR><TD WIDTH="35%" VALIGN="TOP">
<FONT SIZE=3><P>(in thousands)</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">Investment Banking/<BR>
Brokerage/<BR>
Trust</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER"><BR>
<BR>
<BR>
Insurance</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER"><BR>
<BR>
<BR>
Other</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER"><BR>
<BR>
Total<BR>
Company</FONT></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3>
<P>Net interest income</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT"></P>
<P ALIGN="RIGHT">$   11,406</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT"></P>
<P ALIGN="RIGHT">$    1,070</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT"></P>
<P ALIGN="RIGHT">    $ (28,727)</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT"></P>
<P ALIGN="RIGHT">$759,860</FONT></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP">
<FONT SIZE=3><P>Provision for loan losses</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">      -0-</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">-0-</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">            1,915</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">40,000</FONT></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>Non-interest income</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">  322,178</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">43,547</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">          8,480</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">712,843</FONT></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP">
<FONT SIZE=3><P>Non-interest expense</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">  269,116</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">33,494</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">        62,040</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">965,829</FONT></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>Income taxes</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">    24,120</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">   4,164</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">       (58,929)</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">   136,315</FONT></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>   Net income </FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$  40,348</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$  6,959</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">    $ (25,273)</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$330,559</FONT></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>Average assets</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$2,540,044</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$130,782</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$3,161,231</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$49,145,775</FONT></TD>
</TR>
</TABLE>
</P>

<FONT SIZE=3>
<P>Six months ended June 30, 2003</P></FONT>
<P ALIGN="LEFT"><TABLE CELLSPACING=0 BORDER=0 WIDTH=618>
<TR><TD WIDTH="35%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="49%" VALIGN="TOP" COLSPAN=3>
<FONT SIZE=3><P ALIGN="CENTER">Total Banking</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP">
<FONT SIZE=3><P>(in thousands)</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER"><BR>
Community<BR>
Banking</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER"><BR>
<BR>
Treasury</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER"><BR>
<BR>
Combined</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER"><BR>
Mortgage Banking</FONT></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3>
<P>Net interest income</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT"></P>
<P ALIGN="RIGHT"> $559,923</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT"></P>
<P ALIGN="RIGHT"> $ 138,791</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT"></P>
<P ALIGN="RIGHT">$698,714</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT"></P>
<P ALIGN="RIGHT">$  28,872</FONT></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP">
<FONT SIZE=3><P>Provision for loan losses</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">56,370</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">     2,526</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">58,896</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">39</FONT></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>Non-interest income</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">    166,269</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">     25,673</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">    191,942  </FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">167,981</FONT></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP">
<FONT SIZE=3><P>Non-interest expense</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">   429,803</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">  16,599</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">   446,402</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">148,949</FONT></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>Income taxes</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">    77,388</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">    54,502</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">    131,890</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">    18,598</FONT></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>   Net income </FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT"> $  162,631</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT"> $ 90,837</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$253,468</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$29,267</FONT></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>Average assets</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$26,355,518</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$14,829,009</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$41,184,527</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$1,458,009</FONT></TD>
</TR>
</TABLE>
</P>

<FONT SIZE=3></FONT>
<P ALIGN="LEFT"><TABLE CELLSPACING=0 BORDER=0 WIDTH=618>
<TR><TD WIDTH="35%" VALIGN="TOP">
<FONT SIZE=3><P>(in thousands)</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">Investment<BR>
Banking/<BR>
Brokerage/<BR>
Trust</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER"><BR>
<BR>
<BR>
Insurance</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER"><BR>
<BR>
<BR>
Other</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER"><BR>
<BR>
Total<BR>
Company</FONT></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3>
<P>Net interest income</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT"></P>
<P ALIGN="RIGHT"> $  11,449 </FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT"></P>
<P ALIGN="RIGHT">$    1,075</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT"></P>
<P ALIGN="RIGHT">       $(13,906)</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT"></P>
<P ALIGN="RIGHT">$726,204</FONT></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP">
<FONT SIZE=3><P>Provision for loan losses</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">      -0-</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">-0-</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">            2,565</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">61,500</FONT></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>Non-interest income</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">  322,513</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">36,401</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">             876</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">719,713</FONT></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP">
<FONT SIZE=3><P>Non-interest expense</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">  269,150</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">27,296</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">           40,362</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">932,159</FONT></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>Income taxes</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">    24,339</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">   3,510</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">         (49,445)</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">   128,892</FONT></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>   Net income </FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$ 40,473</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$ 6,670</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$  (6,512)</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$323,366</FONT></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>Average assets</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$2,691,207</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$119,829</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$2,844,048</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$48,297,620</FONT></TD>
</TR>
</TABLE>
</P>

<FONT SIZE=3>
<P>&nbsp;</P>
<P>Three months ended June 30, 2004</P></FONT>
<P ALIGN="LEFT"><TABLE CELLSPACING=0 BORDER=0 WIDTH=618>
<TR><TD WIDTH="35%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="49%" VALIGN="TOP" COLSPAN=3>
<FONT SIZE=3><P ALIGN="CENTER">Total Banking</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP">
<FONT SIZE=3><P>(in thousands)</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER"><BR>
Community<BR>
Banking</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER"><BR>
<BR>
Treasury</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER"><BR>
<BR>
Combined</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER"><BR>
Mortgage Banking</FONT></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3>
<P>Net interest income</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT"></P>
<P ALIGN="RIGHT"> $307,683</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT"></P>
<P ALIGN="RIGHT"> $ 65,823</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT"></P>
<P ALIGN="RIGHT">$373,506</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT"></P>
<P ALIGN="RIGHT">$  16,407</FONT></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP">
<FONT SIZE=3><P>Provision for loan losses</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">23,538</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">     48</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">23,586</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">         (3)</FONT></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>Non-interest income</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">    83,992</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">     335</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">    84,327  </FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">81,470</FONT></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP">
<FONT SIZE=3><P>Non-interest expense</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">   214,949</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">  49,895</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">   264,844</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">32,634</FONT></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>Income taxes</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">    52,236</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">    6,080</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">    58,316</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">    23,738</FONT></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>   Net income </FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT"> $  100,952</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT"> $ 10,135</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$111,087</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$41,508</FONT></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>Average assets</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$27,546,535</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$14,408,041</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$41,954,576</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$1,630,622</FONT></TD>
</TR>
</TABLE>
</P>

<FONT SIZE=3></FONT>
<P ALIGN="LEFT"><TABLE CELLSPACING=0 BORDER=0 WIDTH=618>
<TR><TD WIDTH="35%" VALIGN="TOP">
<FONT SIZE=3><P>(in thousands)</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">Investment<BR>
Banking/<BR>
Brokerage/<BR>
Trust</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER"><BR>
<BR>
<BR>
Insurance</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER"><BR>
<BR>
<BR>
Other</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER"><BR>
<BR>
Total<BR>
Company</FONT></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3>
<P>Net interest income</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT"></P>
<P ALIGN="RIGHT"> $  6,167 </FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT"></P>
<P ALIGN="RIGHT">$    533</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT"></P>
<P ALIGN="RIGHT">       $(15,750)</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT"></P>
<P ALIGN="RIGHT">$380,863</FONT></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP">
<FONT SIZE=3><P>Provision for loan losses</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">      -0-</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">-0-</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">            1,417</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">25,000</FONT></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>Non-interest income</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">  158,344</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">20,917</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">             2,301</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">347,359</FONT></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP">
<FONT SIZE=3><P>Non-interest expense</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">  133,502</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">16,711</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">           27,038</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">474,729</FONT></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>Income taxes</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">    11,580</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">   1,784</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">         (28,949)</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">   66,469</FONT></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>   Net income </FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$ 19,429</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$ 2,955</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$(12,955)</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$162,024</FONT></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>Average assets</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$2,421,196</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$127,991</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$3,336,439</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$49,470,824</FONT></TD>
</TR>
</TABLE>
</P>

<FONT SIZE=3>
<P>&nbsp;</P>
<P>Three months ended June 30, 2003</P></FONT>
<P ALIGN="LEFT"><TABLE CELLSPACING=0 BORDER=0 WIDTH=618>
<TR><TD WIDTH="35%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="49%" VALIGN="TOP" COLSPAN=3>
<FONT SIZE=3><P ALIGN="CENTER">Total Banking</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP">
<FONT SIZE=3><P>(in thousands)</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER"><BR>
Community<BR>
Banking</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER"><BR>
<BR>
Treasury</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER"><BR>
<BR>
Combined</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER"><BR>
Mortgage Banking</FONT></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3>
<P>Net interest income</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT"></P>
<P ALIGN="RIGHT"> $280,727</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT"></P>
<P ALIGN="RIGHT"> $ 66,068</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT"></P>
<P ALIGN="RIGHT">$346,795</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT"></P>
<P ALIGN="RIGHT">$  13,074</FONT></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP">
<FONT SIZE=3><P>Provision for loan losses</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">28,505</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">     35</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">28,540</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">24</FONT></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>Non-interest income</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">    84,343</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">     15,772</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">    100,115  </FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">88,219</FONT></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP">
<FONT SIZE=3><P>Non-interest expense</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">   212,600</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">  8,568</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">   221,168</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">95,074</FONT></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>Income taxes</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">    40,107</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">    27,464</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">    67,571</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">    2,650</FONT></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>   Net income </FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT"> $  83,858</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT"> $ 45,773</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$129,631</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$3,545</FONT></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>Average assets</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$26,407,249</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$15,249,713</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$41,656,962</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$1,518,982</FONT></TD>
</TR>
</TABLE>
</P>

<FONT SIZE=3></FONT>
<P ALIGN="LEFT"><TABLE CELLSPACING=0 BORDER=0 WIDTH=618>
<TR><TD WIDTH="35%" VALIGN="TOP">
<FONT SIZE=3><P>(in thousands)</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">Investment<BR>
Banking/<BR>
Brokerage/<BR>
Trust</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER"><BR>
<BR>
<BR>
Insurance</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER"><BR>
<BR>
<BR>
Other</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER"><BR>
<BR>
Total<BR>
Company</FONT></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3>
<P>Net interest income</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT"></P>
<P ALIGN="RIGHT"> $  6,041 </FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT"></P>
<P ALIGN="RIGHT">$    534</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT"></P>
<P ALIGN="RIGHT">$    (143)</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT"></P>
<P ALIGN="RIGHT">$366,301</FONT></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP">
<FONT SIZE=3><P>Provision for loan losses</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">      -0-</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">-0-</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">1,436</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">30,000</FONT></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>Non-interest income</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">  175,575</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">17,200</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT"> (2,985)</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">378,124</FONT></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP">
<FONT SIZE=3><P>Non-interest expense</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">  142,924</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">13,187</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">11,632</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">483,985</FONT></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>Income taxes</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">    14,652</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">   1,622</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT"> (20,821)</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">   65,674</FONT></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>   Net income </FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$ 24,040</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$ 2,925</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$   4,625</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$164,766</FONT></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>Average assets</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$2,563,422</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$120,521</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$2,584,953</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$48,444,840</FONT></TD>
</TR>
</TABLE>
</P>

<FONT SIZE=3>
<U><P>NOTE F - Commitments and Contingencies</P><DIR>

</U><P> </P></DIR>

<P>To accommodate the financial needs of its customers, Regions makes commitments under various terms to lend funds to consumers, businesses and other entities. These commitments include (among others) revolving credit agreements, term loan commitments and short-term borrowing agreements. Many of these loan commitments have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of these commitments are expected to expire without being funded, the total commitment amounts do not necessarily represent future liquidity requirements. Standby letters of credit are also issued, which commit Regions to make payments on behalf of customers if certain specified future events occur. Historically, a large percentage of standby letters of credit also expire without being funded.</P>

<P>Both loan commitments and standby letters of credit have credit risk essentially the same as that involved in extending loans to customers and are subject to normal credit approval procedures and policies. Collateral is obtained based on management's assessment of the customer's credit.</P>

<P>Loan commitments totaled $9.2 billion at June 30, 2004, and $7.3 billion at June 30, 2003. Standby letters of credit were $1.6 billion at June 30, 2004, and $1.2 billion at June 30, 2003. Commitments under commercial letters of credit used to facilitate customers' trade transactions were $47.5 million at June 30, 2004, and $33.0 million at June 30, 2003.</P>

<P>The Company and its affiliates are subject to litigation and claims arising out of the normal course of business. Based on consultation with legal counsel, management is of the opinion that the outcome of pending and threatened litigation will not have a material effect on Regions' consolidated financial statements.</P>
<U>
<P>NOTE G - Derivative Financial Instruments</P>
</U>
<P>Regions maintains positions in derivative financial instruments to manage interest rate risk, to facilitate asset/liability management strategies, and to manage other risk exposures.  The most common derivative instruments are forward rate agreements, interest rate swaps, and put and call options.  For those derivative contracts that qualify for special hedge accounting treatment, according to Statement of Financial Accounting Standards No. 133 (Statement 133), Regions designates the hedging instrument as either a cash flow or fair value hedge.  The accounting policies associated with derivative financial instruments are discussed further in Note A to the Consolidated Financial Statements included under Item 8 of the Annual Report on Form 10-K.  </P>

<P>Regions utilizes certain derivative instruments to hedge the variability of interest cash flows on debt instruments. To the extent that the hedge of future cash flows is effective, changes in the fair value of the derivative are recognized as a component of other comprehensive income in stockholders' equity.  At June 30, 2004, Regions reported a $3.3 million loss in other comprehensive income related to cash flow hedges.  The Company will amortize this loss into earnings in conjunction with the recognition of interest payments through 2011.  To the extent that the hedge of future cash flows is ineffective, changes in the fair value of the derivative are recognized in earnings as a component of other non-interest expense.  For the six months ended June 30, 2004, there was no ineffectiveness recognized in other non-interest expense attributable to cash flow hedges.  </P>

<P>Regions hedges the changes in the fair value of assets using forward contracts, which represent commitments to sell money market instruments at a future date at a specified price or yield.  The contracts are utilized by the Company to hedge interest rate risk positions associated with the origination of mortgage loans held for sale.  The Company is subject to the market risk associated with changes in the value of the underlying financial instrument, as well as the risk that the other party will fail to perform.  For the six months ended June 30, 2004, Regions recognized a net loss of $1.0 million associated with these instruments.</P>

<P>Regions has also entered into interest rate swap agreements converting a portion of its fixed rate long-term debt to floating rate. The fair values of these derivative instruments are included in other assets on the statements of financial condition. For the six months ended June 30, 2004, there was no ineffectiveness recognized in other non-interest expense attributable to these fair value hedges. </P>

<P>During the first six months of 2004, Regions sold Eurodollar futures contracts to hedge the fair value of a pool of highly correlated indirect auto loans. For the six months ended June 30, 2004, an $89,000 loss was recorded in earnings due to hedging ineffectiveness.</P>

<P>The Company also maintains a derivatives trading portfolio of interest rate swaps, option contracts and futures and forward commitments used to meet the needs of its customers.  The portfolio is used to generate trading profit and help clients manage interest rate risk. The Company is subject to the risk that a counterparty will fail to perform. The fair value of the derivatives trading portfolio at June 30, 2004, was $31.5 million and is included in other assets.</P>

<P>Foreign currency contracts involve the exchange of one currency for another on a specified date and at a specified rate. These contracts are executed on behalf of the Company's customers and are used to manage fluctuations in foreign exchange rates. The notional amount of forward foreign exchange contracts totaled $9 million at both June 30, 2004 and 2003. The Company is subject to the risk that a counterparty will fail to perform.</P>

<P>In the normal course of business, Regions' brokerage subsidiary enters into underwriting and forward and future commitments. At June 30, 2004, the contract amount of future contracts was $57 million to purchase and $97 million to sell U.S. Government and municipal securities. The brokerage subsidiary typically settles its position by entering into equal but opposite contracts and, as such, the contract amounts do not necessarily represent future cash requirements. Settlement of transactions relating to such commitments is not expected to have a material effect on the subsidiary's financial position. Transactions involving future settlement give rise to market risk, which represents the potential loss that can be caused by a change in the market value of a particular financial instrument. The exposure to market risk is determined by a number of factors, including size, composition and diversification of positions held, the absolute and relative levels of interest rates and market volatility.</P>

<P>Regions' derivative financial instruments are summarized as follows:</P>
<P ALIGN="CENTER"></P></FONT>
<TABLE CELLSPACING=0 BORDER=0 WIDTH=642>
<TR><TD WIDTH="34%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="66%" VALIGN="TOP" COLSPAN=5 HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">Other Than Trading Derivatives</FONT></TD>
</TR>
<TR><TD WIDTH="34%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="66%" VALIGN="TOP" COLSPAN=5 HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">As of June 30, 2004</FONT></TD>
</TR>
<TR><TD WIDTH="34%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="34%" VALIGN="TOP">
<FONT SIZE=3>
<P>(dollar amounts in millions)</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER"><BR>
Notional Amount</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER"><BR>
<BR>
Fair Value</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER"><BR>
<BR>
Receive</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER"><BR>
<BR>
Pay</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">Average Maturity <BR>
in Years</FONT></TD>
</TR>
<TR><TD WIDTH="34%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="66%" VALIGN="TOP" COLSPAN=5 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="34%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P>Asset hedges:</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="34%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P>Fair value hedges:</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="34%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P>Forward sale commitments</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">$   126  </FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">$    -</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">0.2</FONT></TD>
</TR>
<TR><TD WIDTH="34%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P>Interest rate futures</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">2,075</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">-</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">1.5</FONT></TD>
</TR>
<TR><TD WIDTH="34%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="34%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P>Total asset hedges</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">$2,201  </FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">$    -</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">1.4</FONT></TD>
</TR>
<TR><TD WIDTH="34%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="34%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="34%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="34%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="34%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P>Liability hedges:</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="34%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P>Fair value hedges:</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="34%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P>Interest rate swaps</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">$2,388</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">$   55</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">4.95%</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">1.76%</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">6.3</FONT></TD>
</TR>
<TR><TD WIDTH="34%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P>Interest rate options</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">  250</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">        -</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">0.9</FONT></TD>
</TR>
<TR><TD WIDTH="34%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="34%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P>Total liability hedges</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">$2,638</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT"> $   55</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">5.8</FONT></TD>
</TR>
<TR><TD WIDTH="34%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="34%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="34%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
</TABLE>
<DIR>
<DIR>
<DIR>
<DIR>

<FONT SIZE=3><P><BR>
</P></DIR>
</DIR>
</DIR>
</DIR>
</FONT>
<TABLE CELLSPACING=0 BORDER=0 WIDTH=642>
<TR><TD WIDTH="34%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="66%" VALIGN="TOP" COLSPAN=5 HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">As of June 30, 2003</FONT></TD>
</TR>
<TR><TD WIDTH="34%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="34%" VALIGN="TOP">
<FONT SIZE=3>
<P>(dollar amounts in millions)</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER"><BR>
Notional Amount</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER"><BR>
<BR>
Fair Value</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER"><BR>
<BR>
Receive</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER"><BR>
<BR>
Pay</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">Average Maturity <BR>
in Years</FONT></TD>
</TR>
<TR><TD WIDTH="34%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="66%" VALIGN="TOP" COLSPAN=5 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="34%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P>Asset hedges:</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="34%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P>Fair value hedges:</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="34%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P>Forward sale commitments</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">$ 515  </FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">$    1</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">0.2</FONT></TD>
</TR>
<TR><TD WIDTH="34%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="34%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P>Total asset hedges</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">$ 515  </FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">$    1</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">0.2</FONT></TD>
</TR>
<TR><TD WIDTH="34%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="34%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="34%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="34%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="34%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P>Liability hedges:</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="34%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P>Fair value hedges:</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="34%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P>Interest rate swaps</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">$3,488</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">$282</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">4.96%</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">1.91%</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">6.2</FONT></TD>
</TR>
<TR><TD WIDTH="34%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P>Interest rate options</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">    1,400</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">        -</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">1.9</FONT></TD>
</TR>
<TR><TD WIDTH="34%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="34%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P>Total liability hedges</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">$4,888</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT"> $282</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">5.0</FONT></TD>
</TR>
<TR><TD WIDTH="34%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="34%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="34%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
</TABLE>

<FONT SIZE=3>
<P>&nbsp;</P></FONT>
<TABLE CELLSPACING=0 BORDER=0 WIDTH=645>
<TR><TD WIDTH="23%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="77%" VALIGN="TOP" COLSPAN=7 HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">Derivative Financial Instruments</FONT></TD>
</TR>
<TR><TD WIDTH="23%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="77%" VALIGN="TOP" COLSPAN=7 HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">As of June 30,</FONT></TD>
</TR>
<TR><TD WIDTH="23%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="38%" VALIGN="TOP" COLSPAN=3 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="36%" VALIGN="TOP" COLSPAN=3 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="23%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="38%" VALIGN="TOP" COLSPAN=3 HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">2004</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="36%" VALIGN="TOP" COLSPAN=3 HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">2003</FONT></TD>
</TR>
<TR><TD WIDTH="23%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="25%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="25%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="23%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="25%" VALIGN="TOP" COLSPAN=2 HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">Contract or Notional Amount</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="25%" VALIGN="TOP" COLSPAN=2 HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">Contract or Notional Amount</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="23%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="23%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">Other</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">Other</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="23%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">Than</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">Credit Risk</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">Than</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">Credit Risk</FONT></TD>
</TR>
<TR><TD WIDTH="23%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">Trading</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">Trading</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">Amount*</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">Trading</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">Trading</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">Amount*</FONT></TD>
</TR>
<TR><TD WIDTH="23%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="23%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="77%" VALIGN="TOP" COLSPAN=7 HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">(in millions)</FONT></TD>
</TR>
<TR><TD WIDTH="23%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P>Interest rate swaps</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">$ 2,388</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">$6,159</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">$ 66</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">$&nbsp;&nbsp;3,488</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">$5,096</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">$171</FONT></TD>
</TR>
<TR><TD WIDTH="23%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P>Interest rate options</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">250</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">995</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">-0-</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">1,400</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">556</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">-0-</FONT></TD>
</TR>
<TR><TD WIDTH="23%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P>Futures and forward</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="23%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P>  commitments</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">2,201</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">2,442</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">-0-</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">515</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">760</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">1</FONT></TD>
</TR>
<TR><TD WIDTH="23%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P>Foreign exchange</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="23%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P>  forwards</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">         -0-</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">          9</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">          -0-</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">         -0-</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">        9</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">         -0-</FONT></TD>
</TR>
<TR><TD WIDTH="23%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="23%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P>     Total</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">  $ 4,839</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">  $9,605</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">     $ 66</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">$ 5,403</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT"> $6,421</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">       $172</FONT></TD>
</TR>
<TR><TD WIDTH="23%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="23%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="23%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
</TABLE>

<FONT SIZE=3>
<P>The following table is a summary of Regions' derivative financial instruments as of March 31, 2004 and 2003, and is presented for comparison purposes.</P></FONT>
<TABLE CELLSPACING=0 BORDER=0 WIDTH=645>
<TR><TD WIDTH="23%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="77%" VALIGN="TOP" COLSPAN=7 HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">Derivative Financial Instruments</FONT></TD>
</TR>
<TR><TD WIDTH="23%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="77%" VALIGN="TOP" COLSPAN=7 HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">As of March 31,</FONT></TD>
</TR>
<TR><TD WIDTH="23%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="38%" VALIGN="TOP" COLSPAN=3 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="36%" VALIGN="TOP" COLSPAN=3 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="23%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="38%" VALIGN="TOP" COLSPAN=3 HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">2004</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="36%" VALIGN="TOP" COLSPAN=3 HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">2003</FONT></TD>
</TR>
<TR><TD WIDTH="23%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="25%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="25%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="23%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="25%" VALIGN="TOP" COLSPAN=2 HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">Contract or Notional Amount</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="25%" VALIGN="TOP" COLSPAN=2 HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">Contract or Notional Amount</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="23%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="23%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">Other</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">Other</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="23%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">Than</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">Credit Risk</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">Than</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">Credit Risk</FONT></TD>
</TR>
<TR><TD WIDTH="23%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">Trading</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">Trading</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">Amount*</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">Trading</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">Trading</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">Amount*</FONT></TD>
</TR>
<TR><TD WIDTH="23%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="23%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="77%" VALIGN="TOP" COLSPAN=7 HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">(in millions)</FONT></TD>
</TR>
<TR><TD WIDTH="23%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P>Interest rate swaps</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">$3,438</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">$5,839</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">$134</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">$&nbsp;&nbsp;3,938</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">$3,909</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">$180</FONT></TD>
</TR>
<TR><TD WIDTH="23%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P>Interest rate options</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">250</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">839</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">-0-</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">1,400</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">223</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">-0-</FONT></TD>
</TR>
<TR><TD WIDTH="23%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P>Futures and forward</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="23%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P>  commitments</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">5,869</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">1,294</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">-0-</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">395</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">1,465</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">-0-</FONT></TD>
</TR>
<TR><TD WIDTH="23%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P>Foreign exchange</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="23%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P>  forwards</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">         -0-</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">          15</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">          -0-</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">         -0-</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">        7</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">         -0-</FONT></TD>
</TR>
<TR><TD WIDTH="23%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="23%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P>     Total</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">  $9,557</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">  $7,987</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">     $134</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">$ 5,733</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT"> $5,604</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">       $180</FONT></TD>
</TR>
<TR><TD WIDTH="23%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="23%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="23%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
</TABLE>

<FONT SIZE=3>
<P>*Credit Risk Amount is defined as all positive exposures not collateralized with cash on deposit.  Any credit risk arising under option contracts is combined with swaps to reflect netting agreements.</P>
<U><P>&nbsp;</P>
<P>NOTE H - Pension and Postretirement Benefits</P>
</U><P>The following table provides the net pension cost and postretirement benefit cost recognized for the six months ended June 30, 2004 and 2003:</P>
<P> &#9;&#9;&#9;&#9;&#9;</P></FONT>
<TABLE CELLSPACING=0 BORDER=0 WIDTH=664>
<TR><TD WIDTH="30%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="34%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=3><P ALIGN="CENTER">Pension Cost</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="34%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=3><P ALIGN="CENTER">Postretirement Benefit Cost</FONT></TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="TOP">
<FONT SIZE=3><P>(in thousands)</FONT></TD>
<TD WIDTH="34%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=3><P ALIGN="CENTER">Six Months Ended June 30,</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="34%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=3><P ALIGN="CENTER">Six Months Ended June 30,</FONT></TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">2004</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">2003</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">2004</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">2003</FONT></TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>Service cost</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$   7,517</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$   6,534</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$  1,064</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$     893</FONT></TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="TOP">
<FONT SIZE=3><P>Interest cost</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">11,333</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">10,574</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">1,006</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">693</FONT></TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>Expected return on plan assets</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">(12,388)</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT"> (10,705)</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT"> (86)</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">-0-</FONT></TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="TOP">
<FONT SIZE=3><P>Net amortization (deferral)     </FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">4,451</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">3,621</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">464</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">118</FONT></TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>Net periodic pension expense</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$ 10,913</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$ 10,024</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$  2,448</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$  1,704</FONT></TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
</TABLE>

<FONT SIZE=3>
<P> The following table provides the net pension cost and postretirement benefit cost recognized for the three months ended June 30, 2004 and 2003:</P>
<P> &#9;&#9;&#9;&#9;&#9;</P></FONT>
<TABLE CELLSPACING=0 BORDER=0 WIDTH=664>
<TR><TD WIDTH="30%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="34%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=3><P ALIGN="CENTER">Pension Cost</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="34%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=3><P ALIGN="CENTER">Postretirement Benefit Cost</FONT></TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="TOP">
<FONT SIZE=3><P>(in thousands)</FONT></TD>
<TD WIDTH="34%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=3><P ALIGN="CENTER">Three Months Ended June 30,</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="34%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=3><P ALIGN="CENTER">Three Months Ended June 30,</FONT></TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">2004</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">2003</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">2004</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">2003</FONT></TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>Service cost</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$   3,759</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$   3,247</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$    528</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$    447</FONT></TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="TOP">
<FONT SIZE=3><P>Interest cost</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">5,667</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">5,255</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">499</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">347</FONT></TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>Expected return on plan assets</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">(6,194)</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT"> (5,320)</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT"> (43)</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">-0-</FONT></TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="TOP">
<FONT SIZE=3><P>Net amortization (deferral)     </FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">2,226</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">1,800</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">230</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">59</FONT></TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>Net periodic pension expense</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$   5,458</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$   4,982</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$ 1,214</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$    853</FONT></TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
</TABLE>

<FONT SIZE=3><P><BR>
</P>
<U><P>NOTE I - Borrowings </P>

</U><P>During the second quarter of 2004, Regions retired $1.1 billion in Federal Home Loan Bank advances resulting in a loss of $39.6 million recorded in other non-interest expense. These liabilities were replaced by negotiable certificates of deposit and federal funds purchased.<BR>
</P>
<U><P>NOTE J - Recent Accounting Pronouncements</P>
</U>
<P>On March 9, 2004, the SEC released Staff Accounting Bulletin No. 105 (SAB 105), "Application of Accounting Principles to Loan Commitments" that will require all registrants to account for mortgage loan interest rate lock commitments related to loans held for sale as written options, effective not later than for commitments entered into after March 31, 2004. The Company enters into such commitments with customers in connection with residential mortgage loan applications. SAB 105 required the Company to recognize a liability on its balance sheet equal to the fair value of the commitment at the time the loan commitment is issued. The adoption of SAB 105 did not have a material effect on Regions' results of operations or financial position.</P>

<P>At its March 31, 2004 meeting, the FASB ratified the consensuses reached by the Emerging Issues Task Force in EITF Issue No. 03-6 (EITF 03-6), "Participating Securities and the Two-Class Method under FASB Statement No. 128, Earnings per Share." EITF 03-6 concludes that a forward contract to issue an entity's own shares that has a provision that reduces the contract price per share when dividends are declared on the issuing entity's common stock, to be a participating security, and therefore, earnings per share must be calculated using the two-class method under FASB Statement No. 28. EITF 03-6 was effective for the first reporting period beginning after March 31, 2004, and required restatement for prior periods presented. Regions adopted EITF 03-6 on April 1, 2004. Upon adoption, Regions began using the two-class method to calculate earnings per share for all periods presented. Under the two-class method, Regions allocated a portion of net income to the forward agreement entered into in connection with the accelerated stock purchase agreement executed on March 9, 2004. The impact of the forward agreement on net income available to common shareholders is presented in NOTE C - Earnings Per Share. </P>

<P>&#9;In December 2003, President Bush signed into law a bill that expands Medicare benefits, primarily adding a prescription drug benefit for Medicare-eligible retirees beginning in 2006. The law also provides a federal subsidy to companies which sponsor postretirement benefit plans that provide prescription drug coverage. FASB Staff Position 106-1, "Accounting and Disclosure Requirements Related to the Medicare Prescription Drug, Improvement and Modernization Act of 2003" permitted deferring the recognition of the new Medicare provisions' impact due to lack of specific authoritative guidance on accounting for the federal subsidy. The Company elected to defer accounting for the effects of this new legislation until the specific authoritative guidance was issued. Accordingly, the postretirement benefit obligations and net periodic costs reported in the accompanying financial statements and notes do not reflect the impact of this legislation. During the second quarter, the FASB issued FASB Staff Position 106-2 (FSP 106-2), "Accounting and Disclosure Requirements Related to the Medicare Prescription Drug, Improvement and Modernization Act of 2003." FSP 106-2 provides the final accounting and disclosure requirements related to the new Medicare provisions and is effective for the first interim period beginning after June 15, 2004. Management does not believe the adoption of FSP 106-2 will have a material effect on Regions' financial position or results of operations.</P>

<P>At its March 31, 2004 meeting, the FASB ratified several consensuses reached by the Emerging Issues Task Force in EITF Issue No. 03-1 (EITF 03-1), "The Meaning of Other-Than-Temporary Impairments and Its Application to Certain Investments." The consensuses ratified include application guidance for determining whether an other-than-temporary impairment has occurred on certain investments. The application guidance in EITF 03-1 is effective in reporting periods beginning after June 15, 2004. Regions is currently assessing the impact of the application guidance in EITF 03-1 on its investment portfolio.</P>

</FONT><P><HR ALIGN="LEFT"></P>
<FONT FACE="Courier"><P></FONT><A HREF="#table"><FONT SIZE=3>Table of Contents</FONT></A></P>
<U><P><A NAME="mda"></A> <FONT SIZE=3>Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations</P>
</U>
<P>INTRODUCTION</P>

<P>The following discussion and financial information is presented to aid in understanding Regions Financial Corporation's ("Regions" or the "Company") financial position and results of operations. The emphasis of this discussion will be on the six and three months ended June 30, 2004, as compared to the six and three months ended June 30, 2003, and the three months ended March 31, 2004. </P>

<P>CORPORATE PROFILE</P>

<P>Regions' primary business is providing traditional commercial and retail banking services to customers throughout the South. Regions' banking affiliate, Regions Bank, operates as an Alabama state-chartered bank with branch offices in Alabama, Arkansas, Florida, Georgia, Louisiana, North Carolina, South Carolina, Tennessee and Texas.</P>

<P>In addition to providing traditional commercial and retail banking services, Regions provides other financial services in the fields of investment banking, asset management, trust, mutual funds, securities brokerage, mortgage banking, insurance, leasing, and other specialty financing. Regions has no foreign banking operations, although it maintains an international department to assist customers with their foreign transactions. Regions provides investment banking and brokerage services from 145 offices of Morgan Keegan &amp; Company, Inc. ("Morgan Keegan"), one of the largest investment firms based in the South. Regions' mortgage banking operations, Regions Mortgage and EquiFirst Corporation ("EquiFirst"), provide residential mortgage loan origination and servicing activities for customers. Regions Mortgage services approximately $15.8 billion in mortgage loans.  Regions provides full-line insurance brokerage services through Rebsamen Insurance, Inc., one of the 50 largest insurance brokers in the country.  Credit life insurance services for customers are provided through other of Regions' affiliates.</P>

<P>Regions' profitability, like that of many other financial institutions, is dependent on its ability to generate revenue from net interest income and non-interest income sources.  Net interest income is the difference between the interest income Regions receives on earning assets, such as loans and securities, and the interest expense Regions pays on interest-bearing liabilities, principally deposits and borrowings.  Regions' net interest income is impacted by the size and mix of its balance sheet and the interest rate spread it earns on its assets and liabilities.  Non-interest income includes fees from service charges on deposit accounts, trust and securities brokerage activities, mortgage origination and servicing, insurance and other customer services which Regions provides.  Results of operations are also affected by the provision for loan losses and non-interest expenses such as salaries and employee benefits, occupancy and other operating expenses, including income taxes.</P>

<P>Economic conditions, competition and the monetary and fiscal policies of the Federal government in general, significantly affect financial institutions, including Regions.  Lending and deposit activities and fee income generation are influenced by the level of business spending and investment, consumer income, spending and savings, capital market activities, competition among financial institutions, customer preferences, interest rate conditions and prevailing market rates on competing products in Regions' primary market areas.</P>

<P>Regions' business strategy has been and continues to be focused on the diversification of its revenue stream, providing a competitive mix of products and services, delivering quality customer service and maintaining a branch distribution network with offices in convenient locations.  Regions believes that its recently completed merger with Union Planters Corporation will be beneficial in the future implementation of this strategy.</P>
</FONT><FONT FACE="Courier">
</FONT><FONT SIZE=3><P>The Company's principal market areas are located in the states of Alabama, Arkansas, Florida, Georgia, Louisiana, North Carolina, South Carolina, Tennessee and Texas. Morgan Keegan also operates offices in Illinois, Kentucky, Massachusetts, Mississippi, New York and Virginia, as well as Toronto, Canada.</P>

<P>RECENT DEVELOPMENTS</P>

<P>On July 1, 2004, the Company completed its merger with Union Planters Corporation, headquartered in Memphis, Tennessee. Both companies merged into a new holding company named Regions Financial Corporation upon completion of the transaction. The merger was accounted for as a purchase of Union Planters for accounting and financial reporting purposes.  As a result, the historical financial statements of the combined company are the historical financial statements of Regions (see NOTE B - Union Planters Merger).</P>

<P>Union Planters Bank, National Association, the principal banking subsidiary of Union Planters Corporation, operates in 12 states: Alabama, Arkansas, Florida, Illinois, Indiana, Iowa, Kentucky, Louisiana, Mississippi, Missouri, Tennessee and Texas. Union Planters offers a full range of commercial and consumer financial solutions including trust services, investment services, and insurance services, as well as a full range of mortgage products. Union Planters also offers, through Capital Factors, Inc., based in Boca Raton, Florida, receivable-based commercial financing and related fee-based credit, collection and management information services. Capital Factors has regional offices in Atlanta, Georgia; Charlotte, North Carolina; Dallas, Texas; Los Angeles, California; New York, New York; and an office specializing in financing to the rental car industry in San Ramon, California. In addition, Strategic Outsourcing, Inc., based in Charlotte, North Carolina, provides professional employment services such as payroll administration, tax reporting, compliance, workers' compensation, insurance and benefits management.</P>

<P>SECOND QUARTER HIGHLIGHTS</P>

<P>Regions reported net income available to common shareholders of $.58 per diluted share in the second quarter of 2004, compared to $.59 per diluted share for the second quarter of 2003 and $.60 per diluted share for the first quarter of 2004.  These per share amounts have been adjusted to reflect the impact of the exchange of Regions' stock in connection with the merger with Union Planters Corporation, which occurred on July 1, 2004 (see NOTE A - Basis of Presentation). In addition, net income available to common shareholders includes the impact of EITF 03-6, which was adopted in the second quarter of 2004 (see NOTE J - Recent Accounting Pronouncements).</P>

<P>Regions continued to produce a balanced revenue stream in the second quarter of 2004, with net interest income accounting for 52% of total revenue and non-interest income (excluding securities gains and losses) accounting for 48%.  Net interest income increased 4% over the second quarter of 2003 and was up 2%, annualized, compared to the first quarter of 2004.  The net interest margin for the second quarter of 2004 was 3.53%, up from 3.47% in the second quarter of 2003, but declined slightly compared to 3.56% in the first quarter of 2004.  Earning asset growth in the second quarter of 2004 offset the slight decline in the margin, which resulted primarily from maturity of fixed rate assets.  Morgan Keegan's revenues were $169.8 million in the second quarter of 2004 compared to $188.0 in the second quarter of 2003 and $176.5 in the first quarter of 2004. Revenue comparisons are impacted by fees from proprietary fund closings and stronger fixed income markets in previous quarters.  Gains on sale of mortgage loans increased 23.7% over the second quarter of 2003 and 46.4%, annualized, compared to the first quarter of 2004, primarily due to strong origination volume.</P>

<P>Regions' core banking trends continued positive.  Loan growth of 10.6%, linked quarter, annualized, was driven by commercial real estate lending and home equity lines of credit.  Low-cost deposits increased 2.7%, linked quarter, annualized, due primarily to a deposit acquisition campaign. </P>

<P>Net charge-offs totaled $27.9 million or 0.34% of average loans, annualized, in the second quarter of 2004, compared to 0.29% for the second quarter of 2003 and 0.17% in the first quarter of 2004. On a linked-quarter basis, non-performing assets including loans past due 90 days decreased $19.2 million to $262.5 million at June 30, 2004. Non-accrual loans decreased $14.1 million, other real estate decreased $7.7 million, and renegotiated loans decreased $391,000 compared to first quarter 2004 levels. Loans past due greater than 90 days increased $3.1 million in the second quarter of 2004, compared to the prior quarter. </P>

<P>The provision for loan losses totaled $25.0 million in the second quarter of 2004 compared to $30.0 million during the same period of 2003 and $15.0 million during the first quarter of 2004.  The allowance for loan losses at June 30, 2004, was 1.35% of total loans, net of unearned income, compared to 1.44% at June 30, 2003, and 1.39% at March 31, 2004.</P>
<P> </P>
<P>Non-interest income, excluding securities gains and losses, decreased $15.1 million compared to the second quarter of 2003 and $5.5 million compared to the first quarter of 2004. Brokerage and investment banking revenues totaled $128.9 million in the second quarter of 2004, compared to $151.8 million in the second quarter of 2003 and $138.2 million in the first quarter of 2004. Trust fees totaled $21.7 million in the second quarter of 2004, compared to $16.9 million in the same period in 2003 and $20.7 million in the first quarter of 2004.  Regions' mortgage servicing and origination fees totaled $26.2 million in the second quarter 2004 compared to $31.8 million in the second quarter of 2003 and $23.5 million in the first quarter of 2004.</P>

<P>Regions recaptured $40.0 million of mortgage servicing rights valuation allowance in the second quarter of 2004, included in other non-interest expense. The recapture resulted from an increase in mortgage interest rates driving slower refinance activity during the second quarter. Also included in non-interest expense was $39.6 million in losses incurred on the early retirement of $1.1 billion of Federal Home Loan Bank advances in the second quarter of 2004. Merger-related and other charges in the second quarter of 2004 totaled $7.8 million. Total non-interest expenses, excluding merger-related and other charges in the second quarter of 2004 and impairment charges of $19.0 million and $12.0 million taken in the second quarter of 2003 and the first quarter of 2004, respectively, increased $2.0 million compared to the second quarter of 2003 and decreased $11.8 million compared to the first quarter of 2004. </P>

<P>CRITICAL ACCOUNTING POLICIES</P>

<P>In preparing financial information, management is required to make significant estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses for the periods shown.  The accounting principles followed by Regions and the methods of applying these principles conform with accounting principles generally accepted in the United States and general banking practices.  Estimates and assumptions most significant to Regions are related primarily to allowance for loan losses, intangibles, income taxes, securitizations and pensions and are summarized in the following discussion and the Notes to the Consolidated Financial Statements included under Item 8 of the Annual Report on Form <BR>
10-K.</P>

<P>Management's determination of the adequacy of the allowance for loan losses, which is based on the factors and risk identification procedures discussed in the following pages, requires the use of judgments and estimates that may change in the future. Changes in the factors used by management to determine the adequacy of the allowance or the availability of new information could cause the allowance for loan losses to be increased or decreased in future periods. In addition, bank regulatory agencies, as part of their examination process, may require that additions be made to the allowance for loan losses based on their judgments and estimates.</P>

<P>Regions' excess purchase price (the amount in excess of book value of acquired institutions) is reviewed at least annually to ensure that there have been no events or circumstances resulting in an impairment of the recorded amount of excess purchase price. Adverse changes in the economic environment, operations of acquired business units, or other factors could result in a decline in projected fair values. If the estimated fair value is less than the carrying amount, a loss would be recognized to reduce the carrying amount to implied fair value.</P>

<P>For purposes of evaluating mortgage servicing impairment, Regions must value its mortgage servicing rights. Mortgage servicing rights do not trade in an active market with readily observable market prices. Although sales of mortgage servicing rights do occur, the exact terms and conditions of sales may not be readily available. As a result, Regions stratifies its mortgage servicing portfolio on the basis of certain risk characteristics including loan type and contractual note rate and values its mortgage servicing rights using discounted cash flow modeling techniques which require management to make estimates regarding future net servicing cash flows, taking into consideration actual and expected mortgage loan prepayment rates and discount rates. Changes in interest rates, prepayment frequency or other factors could result in impairment of the servicing asset and a charge against earnings to reduce the recorded carrying amount. Based on a hypothetical sensitivity analysis, Regions estimates that a reduction in the primary mortgage market rates of 25 basis points and 50 basis points would reduce the June 30, 2004 fair value of mortgage servicing rights by 6% and 15%, respectively. Management mitigates risk associated with declines in the estimated value of mortgage servicing rights by purchasing agency securities to create economic hedges.</P>

<P>Management's determination of the realization of the deferred tax asset is based upon management's judgment of various future events and uncertainties, including the timing and amount of future income earned by certain subsidiaries and the implementation of various tax plans to maximize realization of the deferred tax asset.  Management believes that the subsidiaries will generate sufficient operating earnings to realize the deferred tax benefits. Regions' recent consolidated federal income tax returns are open for examination. From time to time Regions engages in business plans that may also have an effect on its tax liabilities. While Regions has obtained the opinion of advisors that the tax aspects of these plans should prevail, examination of Regions' income tax returns or changes in tax law may impact these plans and resulting provisions for income taxes. A further discussion of these plans and the benefits recognized related to these plans is included under the heading of "APPLICABLE INCOME TAXES."</P>

<P> </P>

<P>TOTAL ASSETS</P>

<P>Regions' total assets at June 30, 2004, were $49.8 billion - relatively flat compared to June 30, 2003, and a 2% increase compared to December 31, 2003. The growth since year-end was primarily the result of an increase in loans, partially offset by a decline in the securities portfolio.</P>

<P>LOANS AND ALLOWANCE FOR LOAN LOSSES</P>

<P>LOAN PORTFOLIO</P>

<P>Regions' primary investment is loans.  At June 30, 2004, loans represented 73% of Regions' earning assets.</P>

<P>The following table includes a distribution of Regions' loan portfolio.</P></FONT>
<TABLE CELLSPACING=0 BORDER=0 WIDTH=630>
<TR><TD WIDTH="37%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="20%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="19%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="37%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P>Loan Portfolio <BR>
(period end data)</FONT></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="19%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="37%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="20%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="19%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="37%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P><BR>
(in thousands)</FONT></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">Second Quarter<BR>
2004</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="19%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">Fourth Quarter<BR>
2003</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">Second Quarter<BR>
2003</FONT></TD>
</TR>
<TR><TD WIDTH="37%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="20%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="19%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="37%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P>Commercial</FONT></TD>
<TD WIDTH="20%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">$10,034,086</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="19%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">$10,182,176</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">$10,988,657</FONT></TD>
</TR>
<TR><TD WIDTH="37%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P>Residential mortgages</FONT></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">   8,199,935</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="19%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">8,318,711</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">8,204,385</FONT></TD>
</TR>
<TR><TD WIDTH="37%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P>Other real estate loans</FONT></TD>
<TD WIDTH="20%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">   6,738,835</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="19%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">5,878,922</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">4,910,895</FONT></TD>
</TR>
<TR><TD WIDTH="37%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P>Construction</FONT></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">   3,647,943</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="19%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">3,484,767</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">3,579,442</FONT></TD>
</TR>
<TR><TD WIDTH="37%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P>Branch installment</FONT></TD>
<TD WIDTH="20%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">   1,256,961</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="19%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">1,353,707</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">1,476,601</FONT></TD>
</TR>
<TR><TD WIDTH="37%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P>Indirect installment</FONT></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">     808,130</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="19%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">362,496</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">382,401</FONT></TD>
</TR>
<TR><TD WIDTH="37%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P>Consumer lines of credit</FONT></TD>
<TD WIDTH="20%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">   2,241,820</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="19%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">1,918,988</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">1,538,884</FONT></TD>
</TR>
<TR><TD WIDTH="37%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P>Student loans</FONT></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">       709,074</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="19%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">       684,556</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">       633,935</FONT></TD>
</TR>
<TR><TD WIDTH="37%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="20%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="19%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="37%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="20%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">$33,636,784</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="19%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">$32,184,323</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">$31,715,200</FONT></TD>
</TR>
<TR><TD WIDTH="37%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="20%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="19%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="37%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="19%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="37%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="20%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="19%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
</TABLE>

<FONT SIZE=3>
<P>Total loans at June 30, 2004, increased 6% from June 30, 2003, and 5% over year-end 2003. The strongest categories of growth in the loan portfolio have been in commercial real estate and consumer lines of credit. During the second quarter of 2004, Regions reclassified approximately $430 million in indirect consumer auto loans from loans held for sale to indirect installment loans, since Regions is no longer originating and securitizing these type loans. The average yield on loans during the second quarter of 2004 was 5.19% compared to 5.70% during the second quarter of 2003, and 5.27% during the first quarter of 2004.  During the first half of 2004, the average yield on loans was 5.23% compared to 5.78% in 2003.   </P>

<P>ALLOWANCE FOR LOAN LOSSES</P>

<P>Every loan carries some degree of credit risk.  This risk is reflected in the consolidated financial statements by the allowance for loan losses, the amount of loans charged off and the provision for loan losses charged to operating expense. It is Regions' policy that when a loss is identified, it is charged against the allowance for loan losses in the current period. The policy regarding recognition of losses requires immediate recognition of a loss if significant doubt exists as to principal repayment.</P>

<P>Regions' provision for loan losses is a reflection of actual losses experienced during the period and management's judgment as to the adequacy of the allowance for loan losses.  Some of the factors considered by management in determining the amount of the provision and resulting allowance include: (1) detailed reviews of individual loans; (2) gross and net loan charge-offs in the current period; (3) the current level of the allowance in relation to total loans and to historical loss levels; (4) past due and non-accruing loans; (5) collateral values of properties securing loans; (6) the composition of the loan portfolio (types of loans) and risk profiles; and (7) management's analysis of economic conditions and the resulting impact on Regions' loan portfolio.</P>

<P>A coordinated effort is undertaken to identify credit losses in the loan portfolio for management purposes and to establish the loan loss provision and resulting allowance for accounting purposes. A regular, formal and ongoing loan review is conducted to identify loans with unusual risks or possible losses. The primary responsibility for this review rests with the management of the individual banking offices.  Their work is supplemented with reviews by Regions' internal audit staff and corporate loan examiners. This process provides information that helps in assessing the quality of the portfolio, assists in the prompt identification of problems and potential problems, and aids in deciding if a loan represents a probable loss that should be recognized or a risk for which an allowance should be maintained.</P>

<P>If, as a result of Regions' loan review and evaluation procedures, it is determined that payment of interest on a loan is questionable, it is Regions' policy to reverse interest previously accrued and uncollected on the loan against interest income. Interest on such loans is thereafter recorded on a "cash basis" and is included in earnings only when actually received in cash and when full payment of principal is no longer doubtful.</P>

<P>Although it is Regions' policy to immediately charge off as a loss all loan amounts judged to be uncollectible, historical experience indicates that certain losses exist in the loan portfolio that have not been specifically identified. To provide for these unidentifiable losses, the allowance for loan losses is established by charging the provision for loan loss expense against current earnings.  No portion of the resulting allowance is in any way allocated or restricted to any individual loan or group of loans.  The entire allowance is available to absorb losses from any and all loans.</P>

<P>Regions' determination of its allowance for loan losses is based in accordance with Statement of Financial Accounting Standards Nos. 114 and 5.  In determining the amount of the allowance for loan losses, management uses information from its loan review process to stratify the loan portfolio into risk grades.  The higher-risk-graded loans in the portfolio are assigned estimated amounts of loss based on several factors, including current and historical loss experience of each higher-risk category, regulatory guidelines for losses in each higher-risk category and<I> </I>management's judgment of economic conditions and the resulting impact on the higher-risk-graded loans.  All loans deemed to be impaired, which include non-accrual loans and loans past due 90 days or more, excluding loans to individuals, are evaluated individually. The vast majority of Regions' impaired loans are dependent upon collateral for repayment. For these loans, impairment is measured by evaluating collateral value as compared to the current investment in the loan. For all other loans, Regions compares the amount of estimated discounted cash flows to the investment in the loan. In the event a particular loan's collateral value is not sufficient to support the collection of the investment in the loan, a charge is immediately taken against the allowance for loan losses. The amount of the allowance for loan losses related to the higher-risk loans (including impaired loans) was approximately 69% at June 30, 2004 and at December 31, 2003.</P>

<P>In addition to establishing allowance levels for specifically identified higher-risk-graded loans, management determines allowance levels for all other loans in the portfolio for which historical experience indicates that certain losses exist.  These loans are categorized by loan type and assigned estimated amounts of loss based on several factors, including current and historical loss experience of each loan type and management's judgment of economic conditions and the resulting impact on each category of loans. The amount of the allowance for loan losses related to all other loans in the portfolio for which historical experience indicates that certain losses exist was approximately 31% of Regions' allowance for loan losses at June 30, 2004 and at December 31, 2003. The amount of the allowance related to these loans is combined with the amount of the allowance related to the higher-risk-graded loans to evaluate the overall level of the allowance for loan losses.</P>

<P>Management considers the current level of the allowance for loan losses adequate to absorb losses from loans in the portfolio. Management's determination of the adequacy of the allowance for loan losses, which is based on the factors and risk identification procedures previously discussed, requires the use of judgments and estimations that may change in the future. Changes in the factors used by management to determine the adequacy of the allowance or the availability of new information could cause the allowance for loan losses to be increased or decreased in future periods.  In addition, bank regulatory agencies, as part of their examination process, may require that additions be made to the allowance for loan losses based on their judgments and estimates.</P>

<P>Activity in the allowance for loans losses is summarized as follows: </P>
</FONT>
<TABLE CELLSPACING=0 BORDER=0 WIDTH=594>
<TR><TD WIDTH="56%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="44%" VALIGN="TOP" COLSPAN=3>
<FONT SIZE=3><P ALIGN="CENTER">Six Months Ended</FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP">
<FONT SIZE=3><P>(dollar amounts in thousands)</FONT></TD>
<TD WIDTH="21%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">June 30,</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="21%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">June 30,</FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="21%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">2004</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="21%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">2003</FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="21%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="21%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>  Balance at beginning of period&#9;</FONT></TD>
<TD WIDTH="21%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$454,057</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="21%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$437,164</FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP">
<FONT SIZE=3><P>  Loans charged-off:</FONT></TD>
<TD WIDTH="21%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="21%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>    Commercial</FONT></TD>
<TD WIDTH="21%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">40,824</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="21%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT"> 34,969</FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP">
<FONT SIZE=3><P>    Real estate</FONT></TD>
<TD WIDTH="21%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">   7,104</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="21%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT"> 8,382</FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>    Installment</FONT></TD>
<TD WIDTH="21%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT"> 15,159</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="21%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT"> 19,128</FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="21%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="21%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP">
<FONT SIZE=3><P>       Total</FONT></TD>
<TD WIDTH="21%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">63,087</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="21%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">62,479                   </FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>  Recoveries:</FONT></TD>
<TD WIDTH="21%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="21%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP">
<FONT SIZE=3><P>    Commercial</FONT></TD>
<TD WIDTH="21%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT"> 11,002</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="21%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT"> 6,758</FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>    Real estate</FONT></TD>
<TD WIDTH="21%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">   1,600</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="21%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">2,629</FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP">
<FONT SIZE=3><P>    Installment</FONT></TD>
<TD WIDTH="21%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT"> 9,105</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="21%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT"> 11,100</FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="21%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="21%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>       Total</FONT></TD>
<TD WIDTH="21%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">21,707</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="21%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT"> 20,487                   </FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP">
<FONT SIZE=3><P>  Net loans charged off:</FONT></TD>
<TD WIDTH="21%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="21%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>    Commercial</FONT></TD>
<TD WIDTH="21%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">29,822</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="21%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT"> 28,211</FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP">
<FONT SIZE=3><P>    Real estate</FONT></TD>
<TD WIDTH="21%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">   5,504</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="21%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">5,753</FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>    Installment</FONT></TD>
<TD WIDTH="21%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT"> 6,054</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="21%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT"> 8,028</FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="21%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="21%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP">
<FONT SIZE=3><P>       Total</FONT></TD>
<TD WIDTH="21%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">41,380</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="21%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">41,992                  </FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>  Provision charged to expense</FONT></TD>
<TD WIDTH="21%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">40,000</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="21%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">61,500</FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="21%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="21%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP">
<FONT SIZE=3><P>  Balance at end of period</FONT></TD>
<TD WIDTH="21%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">$452,677</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="21%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">$456,672</FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="21%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="21%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="21%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="21%" VALIGN="TOP" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="21%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="21%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="21%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="21%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>  Average loans outstanding:</FONT></TD>
<TD WIDTH="21%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="21%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP">
<FONT SIZE=3><P>    Commercial</FONT></TD>
<TD WIDTH="21%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">$ 10,048,599</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="21%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT"> $10,892,392</FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>    Real estate</FONT></TD>
<TD WIDTH="21%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT"> 16,890,006</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="21%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">15,062,677</FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP">
<FONT SIZE=3><P>    Installment</FONT></TD>
<TD WIDTH="21%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT"> 5,729,302</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="21%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT"> 5,344,638</FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="21%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="21%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>       Total</FONT></TD>
<TD WIDTH="21%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$32,667,907</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="21%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$31,299,707                   </FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="21%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="21%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="21%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="21%" VALIGN="TOP" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="21%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="21%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP">
<FONT SIZE=3><P>  Net charge-offs as percent of average</FONT></TD>
<TD WIDTH="21%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="21%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP">
<FONT SIZE=3><P>    loans outstanding (annualized):</FONT></TD>
<TD WIDTH="21%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="21%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>    Commercial</FONT></TD>
<TD WIDTH="21%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">.60%</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="21%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT"> .52%</FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP">
<FONT SIZE=3><P>    Real estate</FONT></TD>
<TD WIDTH="21%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">   .07%</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="21%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">.08%</FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>    Installment</FONT></TD>
<TD WIDTH="21%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT"> .21%</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="21%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT"> .30%</FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="21%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="21%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP">
<FONT SIZE=3><P>       Total</FONT></TD>
<TD WIDTH="21%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT"> .25%</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="21%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">.27%                   </FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="21%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="21%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="21%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="21%" VALIGN="TOP" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="21%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="21%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
</TABLE>

<FONT SIZE=3>
<P>&nbsp;</P>
<P>Net loan losses as a percentage of average loans (annualized) were 0.34% in the second quarter of 2004 compared to 0.29% in the second quarter 2003 and 0.17% in the first quarter of 2004. At June 30, 2004, the allowance for loan losses was 1.35% of loans, compared to 1.44% at June 30, 2003, and 1.39% at March 31, 2004. The allowance for loan losses as a percentage of non-performing loans was 201% at June 30, 2004, compared to 149% at June 30, 2003, and 159% at December 31, 2003.  The allowance for loan losses as a percentage of non-performing assets was 172% at June 30, 2004, compared to 127% at June 30, 2003, and 134% at December 31, 2003.</P>

<P>NON-PERFORMING ASSETS</P>

<P>Non-performing assets are summarized as follows:</P>
</FONT>
<TABLE CELLSPACING=0 BORDER=0 WIDTH=678>
<TR><TD WIDTH="36%" VALIGN="TOP">
<FONT SIZE=3><P>(dollar amounts in thousands)</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">June 30,</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">March 31,</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">December 31,</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">June 30,</FONT></TD>
</TR>
<TR><TD WIDTH="36%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">2004</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">2004</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">2003</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">2003</FONT></TD>
</TR>
<TR><TD WIDTH="36%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="36%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>Non-accruing loans</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$187,685</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$201,805</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$250,344</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$241,789</FONT></TD>
</TR>
<TR><TD WIDTH="36%" VALIGN="TOP">
<FONT SIZE=3><P>Loans past due 90 days or more</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">37,147</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">34,091</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">35,187</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">35,894</FONT></TD>
</TR>
<TR><TD WIDTH="36%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>Renegotiated loans</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">-</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">391</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">886</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">29,803</FONT></TD>
</TR>
<TR><TD WIDTH="36%" VALIGN="TOP">
<FONT SIZE=3><P>Other real estate</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">   37,652</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">   45,356</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">   52,195</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">   52,358</FONT></TD>
</TR>
<TR><TD WIDTH="36%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="36%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>  Total</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$262,484</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$281,643</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$338,612</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$359,844</FONT></TD>
</TR>
<TR><TD WIDTH="36%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="36%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="36%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="36%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="1%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="36%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>Non-performing assets as a</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="1%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
</TR>
<TR><TD WIDTH="36%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>  percentage of loans and</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="1%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
</TR>
<TR><TD WIDTH="36%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>  other real estate</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">0.78%</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">0.86%</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">1.05%</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">1.13%</FONT></TD>
</TR>
</TABLE>

<FONT SIZE=3>
<P>Non-accruing loans at June 30, 2004, decreased $54.1 million from June 30, 2003 levels and $62.7 million from year-end 2003 levels. Compared to March 31, 2004, non-accrual loans declined $14.1 million due to reduced inflows of loans into non-accrual status.  At June 30, 2004, real<B> </B>estate loans comprised $85.1 million ($66.0 million in residential) of total non-accruing loans, with commercial loans accounting for $94.0 million and consumer loans accounting for $8.6 million. Loans past due 90 days or more increased $1.3 million compared to June 30, 2003 and $2.0 million from year-end 2003 levels. Compared to March 31, 2004, loans past due 90 days or more increased $3.1 million. Renegotiated loans decreased $29.8 million compared to June 30, 2003 and $886,000 from year-end 2003 levels. The decrease from a year ago is due primarily to a $21.9 million shared national credit, which was reclassified to non-accrual loans before being sold in the first quarter of 2004. Other real estate decreased $14.7 million from June 30, 2003, $14.5 million since December 31, 2003, and $7.7 million compared to March 31, 2004, due primarily to sales of parcels of other real estate.  </P>

<P>&#9;</P>
<P>INTEREST BEARING DEPOSITS IN OTHER BANKS</P>

<P>Interest-bearing deposits in other banks are used primarily as temporary investments and generally have short-term maturities. At June 30, 2004, this category of earning asset totaled $35.8 million compared to $154.3 million at June 30, 2003, and $96.5 million at December 31, 2003.  </P>

<P>SECURITIES</P>

<P>The following table shows the carrying values of securities as follows:</P>
</FONT>
<TABLE CELLSPACING=0 BORDER=0 WIDTH=653>
<TR><TD WIDTH="47%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P>(in thousands)</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">June 30,</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">December 31,</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">June 30,</FONT></TD>
</TR>
<TR><TD WIDTH="47%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">2004</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">2003</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">2003</FONT></TD>
</TR>
<TR><TD WIDTH="47%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="47%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P>Securities held to maturity:</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="47%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P>U.S. Treasury and Federal agency securities</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">$30,888</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">$30,189</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">$30,566</FONT></TD>
</TR>
<TR><TD WIDTH="47%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P>Obligations of states and political subdivisions</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">751</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">754</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">1,516</FONT></TD>
</TR>
<TR><TD WIDTH="47%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="47%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P>     Total</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">$31,639</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">$30,943</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">$32,082</FONT></TD>
</TR>
<TR><TD WIDTH="47%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="47%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="47%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="47%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P>Securities available for sale:</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="47%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P>U.S. Treasury and Federal agency securities</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">$1,786,479</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">$2,568,163</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">$2,610,717</FONT></TD>
</TR>
<TR><TD WIDTH="47%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P>Obligations of states and political subdivisions</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">433,588</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">451,594</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">505,593</FONT></TD>
</TR>
<TR><TD WIDTH="47%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P>Mortgage-backed securities</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">6,196,326</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">5,703,057</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">6,031,505</FONT></TD>
</TR>
<TR><TD WIDTH="47%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P>Other securities</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">83,657</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">101,825</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">81,670</FONT></TD>
</TR>
<TR><TD WIDTH="47%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P>Equity securities</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">217,530</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">232,222</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">257,735</FONT></TD>
</TR>
<TR><TD WIDTH="47%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="47%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P>  Total</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">$8,717,580</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">$9,056,861</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">$9,487,220</FONT></TD>
</TR>
<TR><TD WIDTH="47%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="47%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="47%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
</TABLE>

<FONT SIZE=3>
<P>Total securities at June 30, 2004, declined 8% from June 30, 2003 and 4% since year-end 2003 levels.  These declines are due primarily to maturities and the sale of $544 million in agency securities that served as economic hedges for the impairment of mortgage servicing rights in the first quarter of 2004. Investment securities are an important tool used to manage the interest rate sensitivity of the Company (see INTEREST RATE SENSITIVITY, <I>Exposure to Interest Rate Movements</I>).</P>

<P>LOANS HELD FOR SALE</P>

<P>Loans held for sale declined $256.5 million compared to June 30, 2003 and $10.7 million compared to year-end 2003. Regions securitized and sold approximately $570 million during the first quarter of 2003 and $640 million during the fourth quarter of 2003 of indirect consumer auto loans classified as loans held for sale. During the second quarter of 2004, Regions reclassified approximately $430 million in indirect consumer auto loans from loans held for sale to indirect installment loans, since Regions is no longer originating and securitizing these type loans. At June 30, 2004, the $1.2 billion in loans held for sale are mortgage loans held for sale. </P>

<P>MARGIN RECEIVABLES </P>

<P>Margin receivables at June 30, 2004, totaled $549.7 million compared to $682.4 million at June 30, 2003, and $503.6 million at December 31, 2003. Margin receivables represent funds advanced to brokerage customers for the purchase of securities that are secured by certain marketable securities held in the customer's brokerage account. The risk of loss from these receivables is minimized by requiring that customers maintain marketable securities in the brokerage account which have a fair market value substantially in excess of the funds advanced to the customer. Fluctuations in these balances are caused by trends in general market conditions, volatility in equity retail products, and investor sentiment toward economic stability.</P>

<P>OTHER ASSETS</P>

<P>Other assets decreased $622.9 million compared to June 30, 2003, and $95.2 million since year-end 2003.  Significant decreases include derivative assets, receivables related to production at Morgan Keegan, and other real estate.</P>

<P>LIQUIDITY</P>

<P>GENERAL</P>

<P>Liquidity is an important factor in the financial condition of Regions and affects Regions' ability to meet the borrowing needs and deposit withdrawal requirements of its customers. Assets, consisting principally of loans and securities, are funded by customer deposits, purchased funds, borrowed funds and stockholders' equity.</P>

<P>The securities portfolio is one of Regions' primary sources of liquidity. Maturities of securities provide a constant flow of funds available for cash needs. Maturities in the loan portfolio also provide a steady flow of funds. Additional funds are provided from payments on consumer loans and one-to-four family residential mortgage loans. Historically, Regions' high levels of earnings have also contributed to cash flow. In addition, liquidity needs can be met by the purchase of funds in state and national money markets. Regions' liquidity also continues to be enhanced by a relatively stable deposit base.</P>

<P>The loan to deposit ratio at June 30, 2004, was 97.68% compared to 99.53% at June 30, 2003 and 98.33% at December 31, 2003.</P>
</FONT>
<FONT SIZE=3><P>Regions filed a $1.5 billion universal shelf registration statement in November 2001 and a $1.0 billion universal shelf registration statement in January 2001. Under these registration statements, Regions issued $600 million of subordinated notes in May 2002, $500 million of subordinated notes in February 2001 and $288 million of trust preferred securities in February 2001. Consequently, $1.1 billion of various debt securities could be subsequently issued, at market rates, under these registration statements.</P>

<P>Regions also has the ability to obtain additional FHLB advances subject to collateral requirements and other limitations.</P>

<P>In addition, Regions Bank has the requisite agreements in place to issue and sell up to $5 billion of its bank notes to institutional investors through placement agents. As of June 30, 2004, there were $400 million bank notes outstanding under this program. </P>

<P>Morgan Keegan maintains certain lines of credit with unaffiliated banks to manage liquidity in the ordinary course of business. </P>
<P> </P>

<P>RATINGS</P>

<P>The table below reflects the most recent debt ratings of Regions Financial Corporation and Regions Bank by Standard &amp; Poor's Corporation, Moody's Investors Service and Fitch IBCA:</P>
</FONT>
<TABLE CELLSPACING=0 BORDER=0 WIDTH=620>
<TR><TD WIDTH="56%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">S&amp;P</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">Moody's</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">Fitch</FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P>Regions Financial Corporation:</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P>Subordinated notes&#9;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">A-</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">A2</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">A</FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P>Trust preferred securities &#9;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">BBB+</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">A2</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">A</FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P>Regions Bank:</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P>Short-term certificates of deposit&#9;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">A-1</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">P-1</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">F1+</FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P>Short-term debt&#9;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">A-1</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">P-1</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">F1+</FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P>Long-term certificates of deposit&#9;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">A+</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">Aa3</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">AA-</FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P>Long-term debt&#9;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">A+</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">Aa3</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">A+</FONT></TD>
</TR>
</TABLE>

<FONT SIZE=3>
<P>A security rating is not a recommendation to buy, sell or hold securities, and the ratings above are subject to revision or withdrawal at any time by the assigning rating agency. Each rating should be evaluated independently of any other rating.</P>

<P>DEPOSITS</P>

<P>Regions competes with other banking and financial services companies for a share of the deposit market. Regions' ability to compete in the deposit market depends heavily on how effectively the Company meets customers' needs. Regions employs both traditional and non-traditional means to meet customers' needs and enhance competitiveness. The traditional means include providing well-designed products, providing a high level of customer service, providing attractive pricing and expanding the traditional branch network to provide convenient branch locations for customers throughout the South. Regions also employs non-traditional approaches to enhance its competitiveness.  These include providing centralized, high quality telephone banking services and alternative product delivery channels like Internet banking. </P>

<P>Total deposits at June 30, 2004, increased 8% compared to June 30, 2003, and 5% from year-end 2003 levels. Compared to June 30, 2003, non-interest bearing deposits, interest bearing checking, money market, and savings accounts increased $1.1 billion or 6% due to a deposit acquisition campaign. Wholesale deposits also increased from June 30, 2003 and year-end 2003 levels as they became a more attractive funding source in the quarter.</P>

<P>The following table presents the average rates paid on deposits by category for the six&nbsp;months ended June 30, 2004 and 2003:</P></FONT>
<TABLE CELLSPACING=0 BORDER=0 WIDTH=642>
<TR><TD WIDTH="63%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="37%" VALIGN="TOP" COLSPAN=3 HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">Average Rates Paid</FONT></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">June 30,</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">June 30,</FONT></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">2004</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">2003</FONT></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P>Interest-bearing transaction accounts</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">0.86%</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">1.10%</FONT></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P>Savings accounts</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">0.22</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">0.30</FONT></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P>Money market savings accounts</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">0.62</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">0.81</FONT></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P>Certificates of deposit of $100,000 or more</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">1.92</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">2.88</FONT></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P>Other interest-bearing deposits</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">2.09</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">3.11</FONT></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P>    Total interest-bearing deposits</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">1.27%</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">1.87%</FONT></TD>
</TR>
</TABLE>

<FONT SIZE=3>
<P>The following table presents the average amounts of deposits outstanding by category for the six months ended June 30, 2004 and 2003:</P>
</FONT>
<TABLE CELLSPACING=0 BORDER=0 WIDTH=638>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="40%" VALIGN="TOP" COLSPAN=3 HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">Average Amounts Outstanding</FONT></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="19%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="40%" VALIGN="TOP" COLSPAN=3 HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">Six months ended June 30,</FONT></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P>(in thousands)</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">2004</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">2003</FONT></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="19%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="40%" VALIGN="TOP" COLSPAN=3 HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P>Non-interest-bearing demand deposits</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">$ 5,856,875</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">$ 5,151,095</FONT></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="19%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P>Interest-bearing transaction accounts</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">2,706,828</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">2,036,865</FONT></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P>Savings accounts</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">1,438,443</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">1,417,322</FONT></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P>Money market savings accounts</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">10,600,753</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">10,692,566</FONT></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P>Certificates of deposit of $100,000 or more</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">3,696,782</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">3,338,815</FONT></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P>Other interest-bearing deposits</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">8,567,316</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">9,496,294</FONT></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="19%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P>   Total interest-bearing deposits</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">27,010,122</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">26,981,862</FONT></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=1>
<FONT SIZE=3><P>   </FONT></TD>
<TD WIDTH="19%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P>   Total deposits</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">$32,866,997</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">$32,132,957</FONT></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="19%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="19%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="19%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="19%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=14><P></P></TD>
</TR>
</TABLE>

<FONT SIZE=3>
<P>BORROWINGS</P>

<P>Following is a summary of short-term borrowings:</P>
</FONT>
<TABLE CELLSPACING=0 BORDER=0 WIDTH=642>
<TR><TD WIDTH="43%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P>(in thousands)</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">June 30,</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">December 31,</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">June 30,</FONT></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">2004</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">2003</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">2003</FONT></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P>Federal funds purchased</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">$1,409,985</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT"> $   738,371</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">$1,999,905</FONT></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P>Securities sold under</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P>  agreements to repurchase</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT"> 2,292,187</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">  2,293,335</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">  2,076,275</FONT></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P>Federal Home Loan Bank structured notes</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">   350,000</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">    350,000</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT"> 850,000</FONT></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P>Notes payable to unaffiliated banks</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">  53,000</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">   91,200</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">   158,900</FONT></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P>Commercial paper  </FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">   -</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">   5,500</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">    17,250</FONT></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P>Due to brokerage customers</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">  442,376 </FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">  544,832</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT"> 591,945</FONT></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P>Broker margin calls</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">  36,260</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">  68,332</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">118,690</FONT></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P>Short sale liability</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">     229,227</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">     335,468</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">    280,237</FONT></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P>Total</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">$4,813,035</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">$4,427,038</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">$6,093,202</FONT></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
</TABLE>

<FONT SIZE=3>
<P>Net federal funds purchased and security repurchase agreements totaled $2.9 billion at June 30, 2004, compared to $3.5 billion at June 30, 2003, and $2.5 billion at year-end 2003. The level of federal funds and security repurchase agreements can fluctuate significantly on a day-to-day basis, depending on funding needs and which sources of funds are used to satisfy those needs.  During the first half of 2004, net funds purchased averaged $2.9 billion compared to $2.6 billion for the same period in 2003. Other short-term borrowings and commercial paper decreased $906 million since June 30, 2003, due primarily to the extinguishment of Federal Home Loan Bank advances and declines in all major categories of other short-term borrowings. Since year-end, other short-term borrowings and commercial paper have decreased $284.5 million due primarily to declines in Morgan Keegan's lines of credit with unaffiliated banks and due to brokerage customer positions, as well as a decrease in short sale liability, which represents Regions' trading obligation to deliver certain securities at a predetermined date and price. </P>

<P>Long-term borrowings are summarized as follows:</P>
</FONT>
<TABLE CELLSPACING=0 BORDER=0 WIDTH=636>
<TR><TD WIDTH="42%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P>(in thousands)</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">June 30,</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">December 31,</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">June 30,</FONT></TD>
</TR>
<TR><TD WIDTH="42%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">2004</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">2003</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">2003</FONT></TD>
</TR>
<TR><TD WIDTH="42%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="42%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P>6 3/8% subordinated notes</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">$   600,000</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">$    600,000</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">$   600,000</FONT></TD>
</TR>
<TR><TD WIDTH="42%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P>7.00% subordinated notes</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">  500,000</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">  500,000</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">  500,000</FONT></TD>
</TR>
<TR><TD WIDTH="42%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P>7.75% subordinated notes</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">  100,000</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">  100,000</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">  100,000</FONT></TD>
</TR>
<TR><TD WIDTH="42%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P>Senior bank notes</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">400,000</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">400,000</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">-0-</FONT></TD>
</TR>
<TR><TD WIDTH="42%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P>Federal Home Loan Bank structured notes</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">1,785,000</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">2,835,000</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">3,585,000</FONT></TD>
</TR>
<TR><TD WIDTH="42%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P>Federal Home Loan Bank advances</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">768,518</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">806,627</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">115,777</FONT></TD>
</TR>
<TR><TD WIDTH="42%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P>Trust preferred securities</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">  -0-</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">  -0-</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">  291,769</FONT></TD>
</TR>
<TR><TD WIDTH="42%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P>8.00% junior subordinated notes</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">300,708</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">300,731</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">-0-</FONT></TD>
</TR>
<TR><TD WIDTH="42%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P>Industrial development revenue bonds</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">2,000</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">2,000</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">2,200</FONT></TD>
</TR>
<TR><TD WIDTH="42%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P>Mark-to-market on hedged long-term debt</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">63,275</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">109,845</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT"> 186,876</FONT></TD>
</TR>
<TR><TD WIDTH="42%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P>Other long-term debt </FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">        60,553</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">        57,549</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">        57,826</FONT></TD>
</TR>
<TR><TD WIDTH="42%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="42%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P>  Total</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT"> $4,580,054</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT"> $5,711,752</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT"> $5,439,448</FONT></TD>
</TR>
<TR><TD WIDTH="42%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="42%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="42%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="42%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=14><P></P></TD>
</TR>
</TABLE>

<FONT SIZE=3>
<P>Long-term borrowings decreased $859.4 million since June 30, 2003 and $1.1 billion since year-end 2003 due primarily to the early retirement of Federal Home Loan Bank advances.    </P>

<P>OTHER LIABILITIES</P>

<P>Other liabilities decreased $216.4 million compared to June 30, 2003, but increased $329.0 million since year-end 2003. Areas of increase since year-end include dividends and accounts payable.</P>

<P>STOCKHOLDERS' EQUITY</P>

<P>Regions' merger with Union Planters Corporation was consummated on July 1, 2004. Upon completion of the merger, both companies merged into a new holding company named Regions Financial Corporation and each share of Regions' common stock was converted into 1.2346 shares of the new company common stock. As a result of the merger, common stock and surplus as of June 30, 2004 have been adjusted to reflect the issuance of 271,573,092 shares of the new company's $0.01 par value common stock in exchange for 219,968,485 shares of Regions' $0.625 par value common stock.</P>

<P>Stockholders' equity was $4.4 billion at June 30, 2004.  Regions' ratio of equity to total assets was 8.79% at June 30, 2004, compared to 8.82% at June 30, 2003 and 9.16% at December 31, 2003.</P>

<P>Prior to adjustment for the exchange of shares that occurred upon the July 1, 2004 merger with Union Planters Corporation, Regions was authorized to purchase up to 12.6 million shares of $0.625 par value common stock.  During the first quarter of 2004, Regions repurchased approximately 4.2 million shares of $0.625 par value common stock at a total cost of $156.9 million.  Included in the shares repurchased are 4.0 million shares of $0.625 par value common stock that were repurchased through an accelerated stock repurchase agreement entered into on March 9, 2004.  Regions did not repurchase additional shares in the second quarter of 2004. On June 30, 2004, Regions retired 5,543,000 shares of $0.625 par value treasury stock. In connection with the merger, the board of directors assessed the existing repurchase authorizations of both Regions and Union Planters and authorized Regions to purchase up to 20.0 million shares of the combined company's $0.01 par value common stock.</P>

<P>Regions and its subsidiaries are required to comply with capital adequacy standards established by banking regulatory agencies.  Currently, there are two basic measures of capital adequacy: a risk-based measure and a leverage measure. </P>

<P>The risk-based capital standards are designed to make regulatory capital requirements more sensitive to differences in credit risk profiles among banks and bank holding companies, to account for off-balance sheet exposure and interest rate risk, and to minimize disincentives for holding liquid assets.  Assets and off-balance sheet items are assigned to broad risk categories, each with specified risk-weighting factors.  The resulting capital ratios represent capital as a percentage of total risk-weighted assets and off-balance sheet items.  Banking organizations that are considered to have excessive interest rate risk exposure are required to maintain higher levels of capital. </P>

<P>The minimum standard for the ratio of total capital to risk-weighted assets is 8%.  At least 50% of that capital level must consist of common equity, undivided profits and non-cumulative perpetual preferred stock, less goodwill and certain other intangibles ("Tier 1 capital").  The remainder ("Tier 2 capital") may consist of a limited amount of other preferred stock, mandatory convertible securities, subordinated debt, and a limited amount of the allowance for loan losses.  The sum of Tier 1 capital and Tier 2 capital is "total risk-based capital." </P>

<P>The banking regulatory agencies also have adopted regulations that supplement the risk-based guidelines to include a minimum ratio of 3% of Tier 1 capital to average assets less goodwill (the "leverage ratio").  Depending upon the risk profile of the institution and other factors, the regulatory agencies may require a leverage ratio of 1% to 2% above the minimum 3% level.</P>

<P>The following chart summarizes the applicable bank regulatory capital requirements. Regions' capital ratios at June 30, 2004 and 2003, substantially exceeded all regulatory requirements.</P>
</FONT>
<TABLE CELLSPACING=0 BORDER=0 WIDTH=638>
<TR><TD WIDTH="34%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">Well</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="34%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">Minimum</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">Capitalized</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">Regions at</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">Regions at</FONT></TD>
</TR>
<TR><TD WIDTH="34%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">Regulatory</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">Regulatory</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">June 30,</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">June 30,</FONT></TD>
</TR>
<TR><TD WIDTH="34%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">Requirement</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">Requirement</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">2004</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">2003</FONT></TD>
</TR>
<TR><TD WIDTH="34%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="34%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P>Tier 1 capital to risk-adjusted assets</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">4.00%</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">6.00%</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">9.50%</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">9.11%</FONT></TD>
</TR>
<TR><TD WIDTH="34%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P>Total risk-based capital to <BR>
  risk-adjusted assets</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT"><BR>
8.00</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT"><BR>
10.00</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT"><BR>
14.13</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT"><BR>
13.81</FONT></TD>
</TR>
<TR><TD WIDTH="34%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P>Tier 1 leverage ratio</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">3.00</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">5.00</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">7.39</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">7.22</FONT></TD>
</TR>
</TABLE>

<FONT SIZE=3>
<P>&nbsp;</P>
<P>OPERATING RESULTS</P>

<P>Net income available to common shareholders or the first six months of 2004 totaled $325.8 million or $1.18 per diluted share, a 1% increase (on a per share diluted basis) over the same period in 2003. For the second quarter of 2004, net income available to common shareholders totaled $159.3 million ($0.58 per diluted share) compared to $164.8 million ($0.59 per diluted share) in the second quarter of 2003 and $166.6 million ($0.60 per diluted share) in the first quarter of 2004. These per share amounts have been adjusted to reflect the impact of the exchange of Regions' stock in connection with the merger with Union Planters Corporation, which occurred on July 1, 2004 (see NOTE A - Basis of Presentation). In addition, net income available to common shareholders includes the impact of EITF 03-6, which was adopted in the second quarter of 2004 (see NOTE J - Recent Accounting Pronouncements).</P>

<P>Annualized return on stockholders' equity for the first six months of 2004 was 15.04% compared to 15.23% for the same period in 2003. Annualized return on assets for the first six months of 2004 and 2003 was 1.35%.</P>

<P>NET INTEREST INCOME</P>

<P>The following table presents a summary of net interest income for the quarters ended June 30, 2004, March 31, 2004, and June 30, 2003.</P>
</FONT>
<TABLE CELLSPACING=0 BORDER=0 WIDTH=642>
<TR><TD WIDTH="43%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P>(dollar amounts in thousands)</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">June 30,</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">March 31,</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">June 30,</FONT></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">2004</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">2004</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">2003</FONT></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P>Interest income</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">$537,880</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">$535,682</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">$561,946</FONT></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P>Interest expense</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">157,017</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">156,685</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">195,645</FONT></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P> Net interest income</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">380,863</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">378,997</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">366,301</FONT></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P>Tax equivalent adjustment</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">16,226</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">16,414</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">    16,450</FONT></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P> Net interest income (taxable equivalent)</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">$397,089</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">$395,411</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">$382,751</FONT></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P>Net interest margin</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">3.53%</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">3.56%</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">3.47%</FONT></TD>
</TR>
</TABLE>

<FONT SIZE=3>
<P>Net interest income (taxable equivalent basis) for the first six months of 2004 increased $32.8 million, or 4%, compared to the same period in 2003. The increase in net interest income is due primarily to increases in average earning assets and improved spreads on these earning assets. The net yield on interest-earning assets (taxable equivalent basis) was 3.54% in the first six months of 2004 compared to 3.48% during the same period in 2003.</P>

<P>For the second quarter of 2004, net interest income (taxable equivalent basis) increased $14.3 million, or 4%, compared to the second quarter of 2003 due to increases in earning assets. The net yield on interest earning assets (taxable equivalent basis) was 3.53% in the second quarter of 2004 compared to 3.47% during the second quarter of 2003. The yield on interest earning assets declined 32 basis points in the second quarter of 2004, while the rate on interest bearing liabilities declined 42 basis points, compared to the second quarter of 2003.</P>

<P>Compared to the first quarter of 2004, net interest income (taxable equivalent basis) increased $1.7 million, or 2% annualized, due to strong earning asset growth that offset contraction in the net interest margin.  The net yield on interest earning assets (taxable equivalent basis) was 3.53% in the second quarter of 2004 compared to 3.56% in the first quarter of 2004.  The decline in net interest margin was due primarily to maturities of fixed rate assets. The yield on interest earning assets declined five basis points, while the rate on interest bearing liabilities declined two basis points, compared to the prior quarter.</P>

<P>Analysis of Changes in Net Interest Income</P>
</FONT>
<TABLE CELLSPACING=0 BORDER=0 WIDTH=641>
<TR><TD WIDTH="40%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="60%" VALIGN="TOP" COLSPAN=5>
<FONT SIZE=3><P ALIGN="CENTER">Six months ended June 30,</FONT></TD>
</TR>
<TR><TD WIDTH="40%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="60%" VALIGN="TOP" COLSPAN=5 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="40%" VALIGN="TOP">
<FONT SIZE=3><P>(in thousands)</FONT></TD>
<TD WIDTH="60%" VALIGN="TOP" COLSPAN=5>
<FONT SIZE=3><P ALIGN="CENTER">2004 over 2003</FONT></TD>
</TR>
<TR><TD WIDTH="40%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="19%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="19%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="40%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">Volume</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">Yield/Rate</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">Total</FONT></TD>
</TR>
<TR><TD WIDTH="40%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="19%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="19%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="40%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>Increase (decrease) in:</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
</TR>
<TR><TD WIDTH="40%" VALIGN="TOP">
<FONT SIZE=3><P>Interest income on:</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="40%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>Loans</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$37,021</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$(85,454)</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$(48,433)</FONT></TD>
</TR>
<TR><TD WIDTH="40%" VALIGN="TOP">
<FONT SIZE=3><P>Federal funds sold</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">111</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">(705)</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT"> (594) </FONT></TD>
</TR>
<TR><TD WIDTH="40%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>Taxable securities</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">(6,170)</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">(9,129)</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">(15,299)</FONT></TD>
</TR>
<TR><TD WIDTH="40%" VALIGN="TOP">
<FONT SIZE=3><P>Non-taxable securities</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">(2,254)</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">660</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">(1,594)</FONT></TD>
</TR>
<TR><TD WIDTH="40%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>Other earning assets</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">(240)</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">1,790</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">1,550</FONT></TD>
</TR>
<TR><TD WIDTH="40%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="19%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="19%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="40%" VALIGN="TOP">
<FONT SIZE=3><P>Total</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">28,468</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">(92,838)</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">(64,370)</FONT></TD>
</TR>
<TR><TD WIDTH="40%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>Interest expense on:</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
</TR>
<TR><TD WIDTH="40%" VALIGN="TOP">
<FONT SIZE=3><P>Savings deposits</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">31</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">(579)</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">(548)</FONT></TD>
</TR>
<TR><TD WIDTH="40%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>Other interest-bearing deposits</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">69</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">(79,553)</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">(79,484)</FONT></TD>
</TR>
<TR><TD WIDTH="40%" VALIGN="TOP">
<FONT SIZE=3><P>Borrowed funds</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">(581)</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">(17,413)</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">(17,994)</FONT></TD>
</TR>
<TR><TD WIDTH="40%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="19%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="19%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="40%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>Total</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">(481)</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">(97,545)</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">(98,026)</FONT></TD>
</TR>
<TR><TD WIDTH="40%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="19%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="19%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="40%" VALIGN="TOP">
<FONT SIZE=3><P>Increase in net interest income</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">$28,949</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">$  4,707</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">$ 33,656</FONT></TD>
</TR>
<TR><TD WIDTH="40%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="19%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="19%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="40%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="19%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="19%" VALIGN="TOP" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="40%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="19%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="19%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="40%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP">&nbsp;</TD>
</TR>
</TABLE>

<FONT SIZE=3>
<P>Note: The change in interest due to both rate and volume has been allocated to change due to volume and change due to rate in proportion to the absolute dollar amounts of the change in each.</P>

<P>MARKET RISK </P>
</FONT><B>
</B><FONT SIZE=3><P>Market risk is the risk of loss arising from adverse changes in the fair value of financial instruments due to changes in interest rates, exchange rates, commodity prices, equity prices, or the credit quality of debt securities.</P>

<P>The overall level of market risk taking activity within Regions has recently reached the minimum threshold level as determined by the Federal Reserve Bank which will require future compliance with the 1996 market risk amendment to the Basel Capital Accord. As a result, Regions is in process of implementing the protocols and processes necessary to meet the market risk measurement and risk management objectives of the Accord.</P>
</FONT><FONT FACE="Courier">
</FONT><FONT SIZE=3><P>INTEREST RATE SENSITIVITY</P>

<P>Regions' primary market risk is interest rate risk, including uncertainty with respect to absolute interest rate levels as well as uncertainty with respect to relative interest rate levels which impact both the shape and the slope of the various yield curves affecting the financial products and services that the Company offers. To quantify this risk, Regions measures the change in its net interest income in various interest rate scenarios as compared to a base case scenario. Net interest income sensitivity (as measured over 12 months) is a useful short-term indicator of Regions' interest rate risk.</P><DIR>

<P><BR>
</P></DIR>

<I><P>Sensitivity Measurement</I>. Financial simulation models are Regions' primary tools used to measure interest rate exposure. Using a wide range of hypothetical deterministic and stochastic simulations, these tools provide management with extensive information on the potential impact to net interest income caused by changes in interest rates.  </P>

<P>These models are structured to simulate cash flows and accrual characteristics of the many products both on and off Regions' balance sheet. Assumptions are made about the direction and volatility of interest rates, the slope of the yield curve, and about the changing composition of the balance sheet that result from both strategic plans and from customer behavior. Among the assumptions are expectations of balance sheet growth and composition, the pricing and maturity characteristics of existing business and the characteristics of future business. Interest rate related risks are expressly considered, such as pricing spreads, the lag time in pricing administered rate accounts, prepayments and other option risks. Regions considers these factors, as well as the degree of certainty or uncertainty surrounding their future behavior.</P>

<P>Off-balance sheet items are used to mitigate the risk of changes in the values of selected assets and liabilities resulting from changes in interest rates. The effect of these economic hedges is included in the simulations of net interest income.  </P>

<P>The primary objectives of asset/liability management at Regions are balance sheet coordination and the management of interest rate risk in achieving reasonable and stable net interest income throughout various interest rate cycles. A standard set of alternate interest rate scenarios is compared to the results of the base case scenario to determine the extent of potential fluctuations and to establish exposure limits. The standard set of interest rate scenarios includes the traditional instantaneous parallel rate shifts of plus and minus 100 and 200 basis points. In addition, Regions includes simulations of gradual interest rate movements that may more realistically mimic potential interest rate movements. Gradual scenarios could include curve steepening, flattening, and parallel movements of various magnitudes phased in over a 6-month period.  </P>
<I>
<P>Exposure to Interest Rate Movements.</I>  Based on the foregoing discussion, management has estimated the potential effect of shifts in interest rates on net interest income. As of June 30, 2004, Regions maintains a slightly asset sensitive position to gradual rate shifts of plus or minus 100 and 200 basis points. The following table demonstrates the expected effect that a gradual (over six months beginning at June 30, 2004 and 2003) parallel interest rate shift would have on Regions' annual net interest income. Results of the same analysis for the comparable period for 2003 are presented for comparison purposes.</P>
</FONT>
<TABLE CELLSPACING=0 BORDER=0 WIDTH=641>
<TR><TD WIDTH="24%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">Gradual</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="34%" VALIGN="TOP" COLSPAN=2 HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">June 30, 2004</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="37%" VALIGN="TOP" COLSPAN=2 HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">June 30, 2003</FONT></TD>
</TR>
<TR><TD WIDTH="24%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="19%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="24%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">$ Change in</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">% Change in</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">$ Change in</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">% Change in</FONT></TD>
</TR>
<TR><TD WIDTH="24%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">Change in</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">Net Interest</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">Net Interest</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">Net Interest</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">Net Interest</FONT></TD>
</TR>
<TR><TD WIDTH="24%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">Interest Rates</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">Income</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">Income</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">Income</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">Income</FONT></TD>
</TR>
<TR><TD WIDTH="24%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="19%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="24%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">(in basis points)</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="73%" VALIGN="TOP" COLSPAN=5>
<FONT SIZE=3><P ALIGN="CENTER">(dollar amounts in thousands)</FONT></TD>
</TR>
<TR><TD WIDTH="24%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="CENTER">+200</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$ 39,000</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="CENTER">2.5%</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$ (2,000)</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="CENTER">   (0.2)%</FONT></TD>
</TR>
<TR><TD WIDTH="24%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">+100</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">24,000</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">1.6</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">(6,000)</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">(0.4)</FONT></TD>
</TR>
<TR><TD WIDTH="24%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="CENTER">-100</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">(7,000)</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="CENTER">(0.5)</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">(9,000)</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="CENTER">(0.7)</FONT></TD>
</TR>
<TR><TD WIDTH="24%" VALIGN="TOP" HEIGHT=5>
<FONT SIZE=3><P ALIGN="CENTER">-200</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=5><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=5>
<FONT SIZE=3><P ALIGN="RIGHT">(16,000)</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=5>
<FONT SIZE=3><P ALIGN="CENTER">(1.0)</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=5><P></P></TD>
<TD WIDTH="19%" VALIGN="TOP" HEIGHT=5>
<FONT SIZE=3><P ALIGN="RIGHT">(32,000)</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=5>
<FONT SIZE=3><P ALIGN="CENTER">(2.2)</FONT></TD>
</TR>
</TABLE>

<FONT SIZE=3>
<P>As of June 30, 2004, Regions maintains a slightly asset sensitive position to instantaneous rate shifts of plus or minus 100 and 200 basis points.  The following table demonstrates the expected effect that an instantaneous parallel rate shift would have on Regions' annual net interest income.  Results of the same analysis for the comparable period of 2003 are presented for comparison purposes.</P>
</FONT><FONT FACE="Courier"></FONT>
<TABLE CELLSPACING=0 BORDER=0 WIDTH=641>
<TR><TD WIDTH="24%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">Instantaneous</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="34%" VALIGN="TOP" COLSPAN=2 HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">June 30, 2004</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="37%" VALIGN="TOP" COLSPAN=2 HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">June 30, 2003</FONT></TD>
</TR>
<TR><TD WIDTH="24%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="19%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="24%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">$ Change in</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">% Change in</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">$ Change in</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">% Change in</FONT></TD>
</TR>
<TR><TD WIDTH="24%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">Change in</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">Net Interest</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">Net Interest</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">Net Interest</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">Net Interest</FONT></TD>
</TR>
<TR><TD WIDTH="24%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">Interest Rates</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">Income</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">Income</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">Income</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">Income</FONT></TD>
</TR>
<TR><TD WIDTH="24%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="19%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="24%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">(in basis points)</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="73%" VALIGN="TOP" COLSPAN=5>
<FONT SIZE=3><P ALIGN="CENTER">(dollar amounts in thousands)</FONT></TD>
</TR>
<TR><TD WIDTH="24%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="CENTER">+200</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$ 44,000</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="CENTER">2.9%</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$  22,000</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">1.5%</FONT></TD>
</TR>
<TR><TD WIDTH="24%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">+100</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">25,000</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">1.7</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">8,000</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">0.5</FONT></TD>
</TR>
<TR><TD WIDTH="24%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="CENTER">-100</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">(16,000)</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="CENTER">(1.1)</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">(26,000)</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">(1.8)</FONT></TD>
</TR>
<TR><TD WIDTH="24%" VALIGN="TOP" HEIGHT=5>
<FONT SIZE=3><P ALIGN="CENTER">-200</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=5><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=5>
<FONT SIZE=3><P ALIGN="RIGHT">(26,000)</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=5>
<FONT SIZE=3><P ALIGN="CENTER">(1.7)</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=5><P></P></TD>
<TD WIDTH="19%" VALIGN="TOP" HEIGHT=5>
<FONT SIZE=3><P ALIGN="RIGHT">(80,000)</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=5>
<FONT SIZE=3><P ALIGN="RIGHT">(5.5)</FONT></TD>
</TR>
</TABLE>

<FONT FACE="Courier">
</FONT><FONT SIZE=3><P>DERIVATIVES</P>

<P>Regions uses financial derivative instruments for management of interest rate sensitivity. The Asset and Liability Committee in its oversight role for the management of interest rate sensitivity approves the use of derivatives in balance sheet hedging strategies. The most common derivatives the Company employs are interest rate swaps, interest rate options, forward sale commitments, and interest rate and foreign exchange forward contracts.</P>

<P>Interest rate swaps are contractual agreements typically entered into to exchange fixed for variable streams of interest payments. The notional principal is not exchanged but is used as a reference for the size of the interest payments. Interest rate options are contracts that allow the buyer to purchase or sell a financial instrument at a pre-determined price and time. Forward sale commitments are contractual obligations to sell money market instruments at a future date for an already agreed upon price. Foreign exchange forwards are contractual agreements to receive or deliver a foreign currency at an agreed upon future date and price. </P>

<P>Regions has made use of interest rate swaps and interest rate options to convert a portion of its fixed-rate funding position to a variable rate. Regions also uses derivatives to manage interest rate and pricing risk associated with its mortgage origination business. Futures contracts and forward sales commitments are used to protect the value of the loan pipeline from changes in interest rates. In the period of time that elapses between the origination and sale of mortgage loans, changes in interest rates have the potential to cause a decline in the value of the loans in this held for sale portfolio. Futures and forward sale commitment positions are used to protect the Company from the risk of such adverse changes. The change in value of the contracts used to mitigate interest rate risk is expected to be highly effective in offsetting the change in value of specific assets and liabilities over the life of the relationship.</P>

<P>Regions also uses derivatives to meet the needs of its customers.  Interest rate swaps, interest rate options, futures and forward commitments and foreign exchange forwards are the most common derivatives sold to customers. Positions with similar characteristics are used to offset the market risk and minimize income statement volatility associated with this portfolio. Those instruments, which are used to service customers, are entered into the trading account, with changes in value recorded in the income statement. </P>

<P>BROKERAGE AND MARKET MAKING ACTIVITY</P>

<P>Morgan Keegan's business activities expose it to market risk, including its securities inventory positions and securities held for investment.</P>

<P>Morgan Keegan trades for its own account in corporate and tax-exempt securities and U.S. government, agency and guaranteed securities. Most of these transactions are entered into to facilitate the execution of customers' orders to buy or sell these securities. In addition, it trades certain equity securities in order to "make a market" in these securities. Morgan Keegan's trading activities require the commitment of capital. All principal transactions place the subsidiary's capital at risk. Profits and losses are dependent upon the skills of employees and market fluctuations. In some cases, in order to mitigate the risks of carrying inventory, Morgan Keegan enters into a low level of activity involving U.S. Treasury note futures.</P>

<P>Morgan Keegan, as part of its normal brokerage activities, assumes short positions on securities. The establishment of short positions exposes Morgan Keegan to off-balance sheet risk in the event that prices increase, as it may be obligated to cover such positions at a loss.  Morgan Keegan manages its exposure to these instruments by entering into offsetting or other positions in a variety of financial instruments.</P>

<P>Morgan Keegan will occasionally economically hedge a portion of its long proprietary inventory position through the use of short positions in financial future contracts, which are included in securities sold, not yet purchased at market value. At June 30, 2004, Morgan Keegan had no outstanding futures contracts. The contract amounts do not necessarily represent future cash requirements.  </P>

<P>In the normal course of business, Morgan Keegan enters into underwriting and forward and future commitments. At June 30, 2004, the contract amounts of futures contracts were $57 million to purchase and $97 million to sell U.S. Government and municipal securities.<B> </B>Morgan Keegan typically settles its position by entering into equal but opposite contracts and, as such, the contract amounts do not necessarily represent future cash requirements. Settlement of the transactions relating to such commitments is not expected to have a material effect on Regions' consolidated financial position. Transactions involving future settlement give rise to market risk, which represents the potential loss that can be caused by a change in the market value of a particular financial instrument. Regions' exposure to market risk is determined by a number of factors, including the size, composition and diversification of positions held, the absolute and relative levels of interest rates, and market volatility.</P>

<P>Interest rate risk at Morgan Keegan arises from the exposure of holding interest-sensitive financial instruments such as government, corporate and municipal bonds and certain preferred equities. Morgan Keegan manages its exposure to interest rate risk by setting and monitoring limits and, where feasible, hedging with offsetting positions in securities with similar interest rate risk characteristics.  Securities inventories are marked to market, and accordingly there are no unrecorded gains or losses in value. While a significant portion of the securities inventories have contractual maturities in excess of five years, these inventories, on average, turn over in excess of twelve times per year. Accordingly, the exposure to interest rate risk inherent in Morgan Keegan's securities inventories is less than that of similar financial instruments held by firms in other industries.  Morgan Keegan's equity securities inventories are exposed to risk of loss in the event of unfavorable price movements. The equity securities inventories are marked to market and there are no unrecorded gains or losses.</P>

<P>&#9;Morgan Keegan is also subject to credit risk arising from non-performance by trading counterparties, customers, and issuers of debt securities owned. This risk is managed by imposing and monitoring position limits, monitoring trading counterparties, reviewing security concentrations, holding and marking to market collateral and conducting business through clearing organizations that guarantee performance.  Morgan Keegan regularly participates as an agent in the trading of some derivative securities for its customers; however, this activity does not involve Morgan Keegan acquiring a position or commitment in these products and this trading is not a significant portion of Morgan Keegan's business.  Morgan Keegan does not participate in the trading of derivative securities that have off-balance sheet risk.</P>

<P>PROVISION FOR LOAN LOSSES</P>

<P>The provision for loan losses was $40.0 million or .25% (annualized) of average loans in the first six months of 2004 compared to $61.5 million or .40% (annualized) of average loans in the first six months of 2003. For the second quarter of 2004, the provision for loan losses was $25.0 million or .30% (annualized) of average loans compared to $30.0 million or .39% (annualized) of average loans in the second quarter of 2003 and $15.0 million or .19% (annualized) in the first quarter of 2004. The provision for loan losses recorded in the first six months and second quarter of 2004 was based on management's assessment of inherent losses associated with the loan portfolio and management's evaluation of economic conditions (see "ALLOWANCE FOR LOAN LOSSES").</P>

<P>NON-INTEREST INCOME</P>

<P>The following table presents a summary of non-interest income for the quarters ended June 30, 2004, March 31, 2004, and June 30, 2003.</P></FONT>
<TABLE CELLSPACING=0 BORDER=0 WIDTH=631>
<TR><TD WIDTH="43%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">June 30,</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">March 31,</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">June 30,</FONT></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P>(in thousands)</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">2004</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">2004</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="CENTER">2003</FONT></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P>Brokerage and investment banking</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">$128,886</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">$138,203</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">$151,811</FONT></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P>Trust department income</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT"> 21,668</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT"> 20,691</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT"> 16,850</FONT></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P>Service charges on deposit accounts</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">  73,607</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">  71,868</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">  72,205</FONT></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P>Mortgage servicing and origination fees</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">26,246</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">23,491</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">31,757</FONT></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P>Securities gains (losses)</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT"> 149</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT"> 12,803</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT"> 15,799</FONT></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P>Insurance premiums and commissions</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">21,645</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">23,155</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">17,654</FONT></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P>Gain on sale of mortgage loans</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">46,016</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">41,236</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">37,211</FONT></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P>Derivative income</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">1,799</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">964</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">8,016</FONT></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P>Other</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">   27,343</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">   33,073</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">   26,821</FONT></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P>Total non-interest income</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">$347,359</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">$365,484</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=3><P ALIGN="RIGHT">$378,124</FONT></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP" HEIGHT=14>
<FONT FACE="Courier">
</FONT><FONT SIZE=3><P>&nbsp;</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=14><P></P></TD>
</TR>
</TABLE>

<FONT SIZE=3><P>Total non-interest income (excluding securities transactions) increased $5.9 million or 1% in the first six months of 2004 compared to the same period of 2003 due primarily to higher trust fees and gains on sale of mortgage loans, partially offset by lower brokerage and investment banking income and mortgage servicing and origination fees. On a quarterly basis, total non-interest income (excluding securities transactions) decreased $15.1 million or 4% compared to the second quarter of 2003 and $5.5 million or 6% (annualized) compared to the first quarter of 2004, due primarily to lower brokerage fees, as fixed income markets weakened compared to prior quarters.</P>

<P>BROKERAGE AND INVESTMENT BANKING</P>

<P>Brokerage and investment banking income reflected a decrease of $9.7 million in the first six months of 2004 compared to the same period in 2003 due primarily to declining private client business and weaker fixed-income markets, partially offset by increases in equity capital markets revenues in the first half of 2004. In the second quarter of 2004, brokerage and investment banking income decreased $22.9 million compared to the second quarter of 2003 and $9.3 million compared to the first quarter of 2004 due to the impact from propriety fund closing fees and stronger fixed-income markets in previous quarters.</P>

<P>The following table shows the breakout of revenue by division contributed by Morgan Keegan for the three months ended June 30, 2004 and March 31, 2004, and the six months ended June 30, 2004 and 2003.</P>
</FONT>
<TABLE CELLSPACING=0 BORDER=0 WIDTH=696>
<TR><TD WIDTH="38%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="38%" VALIGN="TOP" COLSPAN=2 HEIGHT=13>
<FONT SIZE=3><P>Morgan Keegan</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=13><P></P></TD>
</TR>
<TR><TD WIDTH="38%" VALIGN="TOP" COLSPAN=2 HEIGHT=13>
<FONT SIZE=3><P>Breakout of Revenue by Division</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=13><P></P></TD>
</TR>
<TR><TD WIDTH="27%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="27%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=3><P><BR>
<BR>
(dollar amounts in thousands)</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=3><P ALIGN="CENTER"><BR>
Private<BR>
Client</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=3><P ALIGN="CENTER">Fixed-income Capital Markets</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=3><P ALIGN="CENTER">Equity Capital Markets</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=3><P ALIGN="CENTER"><BR>
Regions MK<BR>
Trust</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=3><P ALIGN="CENTER"><BR>
Investment Advisory</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=3><P ALIGN="CENTER"><BR>
Interest<BR>
 &amp; Other</FONT></TD>
</TR>
<TR><TD WIDTH="27%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="27%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=3><P>Three months ended<BR>
June 30, 2004:</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13><P></P></TD>
</TR>
<TR><TD WIDTH="27%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=3><P>$ amount of revenue </FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=3><P ALIGN="RIGHT">$48,696</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=3><P ALIGN="RIGHT">$50,821</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=3><P ALIGN="RIGHT">$17,879</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=3><P ALIGN="RIGHT">$18,246</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=3><P ALIGN="RIGHT">$21,633</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=3><P ALIGN="RIGHT">$12,539</FONT></TD>
</TR>
<TR><TD WIDTH="27%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=3><P>% of gross revenue</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=3><P ALIGN="RIGHT">28.7%</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=3><P ALIGN="RIGHT">29.9%</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=3><P ALIGN="RIGHT"> 10.5%</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=3><P ALIGN="RIGHT">10.7%</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=3><P ALIGN="RIGHT">12.7%</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=3><P ALIGN="RIGHT">7.5%</FONT></TD>
</TR>
<TR><TD WIDTH="27%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=13><P></P></TD>
</TR>
<TR><TD WIDTH="27%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=3><P>Three months ended<BR>
March 31, 2004:</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13><P></P></TD>
</TR>
<TR><TD WIDTH="27%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=3><P>$ amount of revenue </FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=3><P ALIGN="RIGHT">$60,064</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=3><P ALIGN="RIGHT">$50,464</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=3><P ALIGN="RIGHT">$15,520</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=3><P ALIGN="RIGHT">$17,590</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=3><P ALIGN="RIGHT">$19,792</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=3><P ALIGN="RIGHT">$13,040</FONT></TD>
</TR>
<TR><TD WIDTH="27%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=3><P>% of gross revenue</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=3><P ALIGN="RIGHT">34.0%</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=3><P ALIGN="RIGHT">28.6%</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=3><P ALIGN="RIGHT"> 8.8%</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=3><P ALIGN="RIGHT">10.0%</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=3><P ALIGN="RIGHT">11.2%</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=3><P ALIGN="RIGHT">7.4%</FONT></TD>
</TR>
<TR><TD WIDTH="27%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=13><P></P></TD>
</TR>
<TR><TD WIDTH="27%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=3><P>Six months ended<BR>
June 30, 2004:</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13><P></P></TD>
</TR>
<TR><TD WIDTH="27%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=3><P>$ amount of revenue </FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=3><P ALIGN="RIGHT">$108,760</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=3><P ALIGN="RIGHT">$101,285</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=3><P ALIGN="RIGHT">$33,399</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=3><P ALIGN="RIGHT">$35,836</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=3><P ALIGN="RIGHT">$41,425</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=3><P ALIGN="RIGHT">$25,579</FONT></TD>
</TR>
<TR><TD WIDTH="27%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=3><P>% of gross revenue</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=3><P ALIGN="RIGHT">31.4%</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=3><P ALIGN="RIGHT">29.2%</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=3><P ALIGN="RIGHT">9.6%</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=3><P ALIGN="RIGHT">10.3%</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=3><P ALIGN="RIGHT">12.0%</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=3><P ALIGN="RIGHT">7.5%</FONT></TD>
</TR>
<TR><TD WIDTH="27%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=13><P></P></TD>
</TR>
<TR><TD WIDTH="27%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=3><P>Six months ended<BR>
June 30, 2003:</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13><P></P></TD>
</TR>
<TR><TD WIDTH="27%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=3><P>$ amount of revenue </FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=3><P ALIGN="RIGHT">$92,089</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=3><P ALIGN="RIGHT">$142,894</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=3><P ALIGN="RIGHT">$24,471</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=3><P ALIGN="RIGHT">$29,865</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=3><P ALIGN="RIGHT">$30,536</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=13>
<FONT SIZE=3><P ALIGN="RIGHT">$27,968</FONT></TD>
</TR>
<TR><TD WIDTH="27%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=3><P>% of gross revenue</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=3><P ALIGN="RIGHT">26.5%</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=3><P ALIGN="RIGHT">41.1%</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=3><P ALIGN="RIGHT">7.0%</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=3><P ALIGN="RIGHT">8.6%</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=3><P ALIGN="RIGHT">8.8%</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=13>
<FONT SIZE=3><P ALIGN="RIGHT">8.0%</FONT></TD>
</TR>
</TABLE>

<FONT SIZE=3>
<P>&nbsp;</P>
<P>The following table shows the components of revenue contributed by Morgan Keegan for the three months ended June 30, 2004, March 31, 2004, and June 30, 2003.</P>
</FONT>
<TABLE CELLSPACING=0 BORDER=0 WIDTH=681>
<TR><TD WIDTH="26%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="26%" VALIGN="TOP">
<FONT SIZE=3><P>Morgan Keegan<BR>
Summary Income Statement</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="26%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="26%" VALIGN="TOP">
<FONT SIZE=3><P><BR>
(dollar amounts in thousands)</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">Three months <BR>
ended<BR>
June 30, 2004</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">Three months <BR>
ended<BR>
Mar. 31, 2004</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">Three months<BR>
ended<BR>
June 30, 2003</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER"><BR>
% Change from<BR>
Mar. 31, 2004</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER"><BR>
% Change from<BR>
June 30, 2003</FONT></TD>
</TR>
<TR><TD WIDTH="26%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="26%" VALIGN="TOP">
<FONT SIZE=3><P>Revenues:</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="26%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>  Commissions</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$38,751</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$43,965</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$40,022</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">(11.9)%</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">(3.2)%</FONT></TD>
</TR>
<TR><TD WIDTH="26%" VALIGN="TOP">
<FONT SIZE=3><P>  Principal transaction</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">48,583</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">53,838</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">72,208</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">(9.8)</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">(32.7)</FONT></TD>
</TR>
<TR><TD WIDTH="26%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>  Investment banking</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">24,944</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">24,545</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">28,933</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">1.6</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">(13.8)</FONT></TD>
</TR>
<TR><TD WIDTH="26%" VALIGN="TOP">
<FONT SIZE=3><P>  Interest</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">11,470</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">12,636</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">12,385</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">(9.2)</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">(7.4)</FONT></TD>
</TR>
<TR><TD WIDTH="26%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>  Trust fees and services</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">18,245</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">17,591</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">14,707</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">3.7</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">24.1</FONT></TD>
</TR>
<TR><TD WIDTH="26%" VALIGN="TOP">
<FONT SIZE=3><P>  Investment advisory</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">20,530</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">18,683</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">14,778</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">9.9</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">38.9</FONT></TD>
</TR>
<TR><TD WIDTH="26%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>  Other</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">7,291</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">5,212</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">4,927</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">39.9</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">48.0</FONT></TD>
</TR>
<TR><TD WIDTH="26%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="26%" VALIGN="TOP">
<FONT SIZE=3><P>     Total revenues</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">169,814</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">176,470</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">187,960</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">(3.8)</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">(9.7)</FONT></TD>
</TR>
<TR><TD WIDTH="26%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT FACE="Courier">
<P>&nbsp;</P>
</FONT><FONT SIZE=3><P>&nbsp;</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
</TR>
<TR><TD WIDTH="26%" VALIGN="TOP">
<FONT SIZE=3><P>Expenses:</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="26%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>  Interest expense</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">5,303</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">7,397</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">6,344</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">(28.3)</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">(16.4)</FONT></TD>
</TR>
<TR><TD WIDTH="26%" VALIGN="TOP">
<FONT SIZE=3><P>  Non-interest expense</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">133,502</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">135,614</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">142,924</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">(1.6)</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">(6.6)</FONT></TD>
</TR>
<TR><TD WIDTH="26%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="26%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>     Total expenses</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">138,805</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">143,011</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">149,268</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">(2.9)</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">(7.0)</FONT></TD>
</TR>
<TR><TD WIDTH="26%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="26%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="26%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>Income before income taxes</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">31,009</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">33,459</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">38,692</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">(7.3)</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">(19.9)</FONT></TD>
</TR>
<TR><TD WIDTH="26%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="26%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>Income taxes</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">11,580</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">12,540</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">14,652</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">(7.7)</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">(21.0)</FONT></TD>
</TR>
<TR><TD WIDTH="26%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="26%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="26%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>Net income</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$19,429</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$20,919</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$24,040</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">(7.1)%</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">(19.2)%</FONT></TD>
</TR>
<TR><TD WIDTH="26%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="26%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="26%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=1><P></P></TD>
</TR>
</TABLE>

<FONT SIZE=3><P> </P>

<P>TRUST INCOME</P>

<P>Trust department income for the first six months of 2004 increased $8.4 million or 25% compared to the first six months of 2003 due to an increase in corporate trust revenues and higher asset values.  Second quarter 2004 trust department income increased $4.8 million or 29% over the second quarter of 2003 and $1.0 million or 5% over first quarter of 2004 due to increases in fee levels and higher asset values, on which fees are based.</P>

<P>SERVICE CHARGES ON DEPOSIT ACCOUNTS</P>

<P>Service charges on deposit accounts increased $3.5 million or 3% in the first six months of 2004 over the same period in 2003 due to management's continued focus on fee collection efforts. In the second quarter of 2004, service charges on deposit accounts increased $1.4 million over the second quarter of 2003 and $1.7 million over the first quarter of 2004.</P>

<P>MORTGAGE SERVICING AND ORIGINATION FEES</P>

<P>The primary source of this category of income is Regions' mortgage banking affiliates, Regions Mortgage and EquiFirst. Regions Mortgage's primary business and source of income is the origination and servicing of conforming mortgage loans for long-term investors. EquiFirst typically originates non-conforming mortgage loans which are sold to third-party investors with servicing released. Net gains and losses related to the sale of mortgage loans are included in other non-interest income. </P>

<P>For the first six months of 2004, mortgage servicing and origination fees decreased $10.2 million or 17% compared to the same period of 2003 due to a decrease in production levels and fewer loans serviced. On a quarterly basis, mortgage servicing and origination fees decreased $5.5 million or 17% compared to the second quarter of 2003. Compared to the first quarter of 2004, mortgage servicing and origination fees increased $2.8 million or 47% (annualized) due to significant increases in production in the second quarter of 2004, a result of lower interest rates at the beginning of the quarter and increased production from EquiFirst. Single-family mortgage production was $2.4 billion in the second quarter of 2004, compared to $2.5 billion in the second quarter of 2003 and $1.7 billion in the first quarter of 2004. The mortgage company's servicing portfolio totaled $15.8 billion at June 30, 2004, compared to $16.6 billion at June 30, 2003, and $15.9 billion at March 31, 2004.</P>

<P>A summary of mortgage servicing rights, which are included in other assets in the consolidated statements of condition, is presented as follows.  The balances shown represent the original amounts capitalized, less accumulated amortization and valuation adjustments, for the right to service mortgage loans that are owned by other investors.  The carrying values of mortgage servicing rights are affected by various factors, including prepayments of the underlying mortgages.  A significant change in prepayments of mortgages in the servicing portfolio could result in significant changes in the valuation adjustments.</P>
</FONT>
<TABLE CELLSPACING=0 BORDER=0 WIDTH=564>
<TR><TD WIDTH="60%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="40%" VALIGN="TOP" COLSPAN=3>
<FONT SIZE=3><P ALIGN="CENTER">Six Months Ended</FONT></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP">
<FONT SIZE=3><P>(dollar amounts in thousands)</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">June 30,</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">June 30,</FONT></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">2004</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">2003</FONT></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="19%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>Balance at beginning of year</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$166,346</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$147,487</FONT></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP">
<FONT SIZE=3><P>Additions</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">18,849</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">32,523</FONT></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>Amortization</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">   (16,921)</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">    (24,177)</FONT></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="19%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">168,274</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">155,833</FONT></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>Valuation adjustment</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">   (11,500)</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">    (59,500)</FONT></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="19%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP">
<FONT SIZE=3><P>Balance at end of period</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT"> $156,774</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">$ 96,333</FONT></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="19%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="19%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="19%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">&nbsp;</TD>
</TR>
</TABLE>

<FONT SIZE=3>
<P>The changes in the valuation allowance for servicing assets for the six months ended June 30, 2004 and 2003 were as follows:</P></FONT>
<TABLE CELLSPACING=0 BORDER=0 WIDTH=612>
<TR><TD WIDTH="62%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="38%" VALIGN="TOP" COLSPAN=3>
<FONT SIZE=3><P ALIGN="CENTER">Six Months Ended</FONT></TD>
</TR>
<TR><TD WIDTH="62%" VALIGN="TOP">
<FONT SIZE=3><P>(in thousands)</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">June 30,</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">June 30,</FONT></TD>
</TR>
<TR><TD WIDTH="62%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">2004</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">2003</FONT></TD>
</TR>
<TR><TD WIDTH="62%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="62%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>Balance at beginning of the year</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">  $39,500</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">  $40,500</FONT></TD>
</TR>
<TR><TD WIDTH="62%" VALIGN="TOP">
<FONT SIZE=3><P>(Recapture of) provisions for impairment valuation</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">   (28,000)</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">   19,000</FONT></TD>
</TR>
<TR><TD WIDTH="62%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="62%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>Balance at end of the period</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">  $11,500</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">  $59,500</FONT></TD>
</TR>
<TR><TD WIDTH="62%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="62%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="62%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
</TABLE>

<FONT SIZE=3>
<P>SECURITIES GAINS</P>

<P>Securities gains for the first six months of 2004 totaled $13.0 million compared to $25.7 million for the same period of 2003.  Of the $13.0 million in 2004, $12.8 million was realized in the first quarter related to the sale of agency securities that served as economic hedges for the impairment of mortgage servicing rights.</P>

<P>OTHER INCOME</P>

<P>The components of other income consist mainly of fees and commissions, insurance premiums, customer derivative fees and gains related to the sale of mortgage loans. Other non-interest income for the first six months of 2004 increased $13.9 million over the first six months of 2003 due primarily to strong performance by Regions' insurance operations and higher gains resulting from mortgage banking activities.  In the second quarter of 2004, other non-interest income increased $7.1 million over the second quarter of 2003 due to increased insurance revenues and higher gains from mortgage banking activities. Compared to the first quarter of 2004, other non-interest income decreased $1.6 million..</P>

<P>&nbsp;</P>
<P>NON-INTEREST EXPENSE</P>

<P>The following table presents a summary of non-interest expense for the quarters ended June 30, 2004, March 31, 2004, and June 30, 2003.</P>
</FONT>
<TABLE CELLSPACING=0 BORDER=0 WIDTH=601>
<TR><TD WIDTH="41%" VALIGN="TOP">
<FONT SIZE=3><P>(in thousands)</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">June 30,</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">March 31,</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">June 30,</FONT></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">2004</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">2004</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">2003</FONT></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>Salaries and employee benefits</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$288,194</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$290,923</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$288,937</FONT></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<FONT SIZE=3><P>Net occupancy expense</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT"> 25,985</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT"> 27,800</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT"> 25,518</FONT></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>Furniture and equipment expense</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">  19,341</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">  18,130</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">  20,501</FONT></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<FONT SIZE=3><P>(Recapture) impairment of MSRs</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">(40,000)</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">12,000</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">19,000</FONT></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>Loss on early extinguishment of debt</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">39,620</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">-0-</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">-0-</FONT></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<FONT SIZE=3><P>Other</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT"> 141,589</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT"> 142,247</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT"> 130,029</FONT></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>Total non-interest expense</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$474,729</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$491,100</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$483,985</FONT></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
</TABLE>

<FONT SIZE=3>
<P>Total non-interest expense increased $33.7 million or 4% in the first six months of 2004 compared to the same period in 2003 due primarily to increased salaries and employee benefits and merger-related and other charges. Excluding the merger-related and other charges, total non-interest expense increased $32.6 in the first six months of 2004 compared to 2003. Second quarter 2004 non-interest expense decreased $9.3 million compared to the second quarter of 2003 and $16.4 million compared to the first quarter of 2004. Excluding the merger-related and other charges, non-interest expense increased $2.0 million in the second quarter of 2004 compared to 2003 and decreased $11.8 million compared to the first quarter of 2004.</P>

<P>The following tables show the impact of merger related and other charges affecting the components of non-interest expense for the quarters ended June 30, 2004, March 31, 2004, and June 30, 2003. Included in merger-related and other charges is the recapture and impairment of mortgage servicing rights, loss on early extinguishment of debt, merger and other charges. Management believes the following tables are useful in evaluating trends in non-interest expense. For further discussion of non-interest expense, refer to the discussion of each component following the tables below. </P>

<P>Three months ended June 30, 2004</P></FONT>
<TABLE CELLSPACING=0 BORDER=0 WIDTH=577>
<TR><TD WIDTH="39%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="20%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">Less: Merger-</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="20%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">related and</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP">
<FONT SIZE=3><P>(in thousands)</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">As Reported</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="20%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">Other Charges</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">As Adjusted</FONT></TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="20%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="19%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="20%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>Salaries and employee benefits</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$ 288,194</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="20%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$  1,011</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$ 287,183</FONT></TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP">
<FONT SIZE=3><P>Net occupancy expense</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">25,985</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="20%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">-0-</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">25,985</FONT></TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>Furniture and equipment expense</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">19,341</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="20%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">8</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">19,333</FONT></TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP">
<FONT SIZE=3><P>Other</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">141,209</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="20%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">6,774</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">134,435</FONT></TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="20%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="19%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>     Total</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$ 474,729</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="20%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$  7,793</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$ 466,936</FONT></TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="20%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="19%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="19%" VALIGN="TOP" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="20%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="19%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
</TABLE>

<FONT SIZE=3>
<P>Three months ended March 31, 2004</P></FONT>
<TABLE CELLSPACING=0 BORDER=0 WIDTH=577>
<TR><TD WIDTH="39%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="20%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">Less: Merger-</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="20%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">related and</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP">
<FONT SIZE=3><P>(in thousands)</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">As Reported</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="20%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">Other Charges</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">As Adjusted</FONT></TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="20%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="19%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="20%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>Salaries and employee benefits</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$ 290,923</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="20%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$         -0-</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$ 290,923</FONT></TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP">
<FONT SIZE=3><P>Net occupancy expense</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">27,800</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="20%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">-0-</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">27,800</FONT></TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>Furniture and equipment expense</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">18,130</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="20%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">-0-</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">18,130</FONT></TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP">
<FONT SIZE=3><P>Other</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">154,247</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="20%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">12,321</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">141,926</FONT></TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="20%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="19%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>     Total</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$ 491,100</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="20%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$ 12,321</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$ 478,779</FONT></TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="20%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="19%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="19%" VALIGN="TOP" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="20%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="19%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
</TABLE>

<FONT SIZE=3>
<P>Three months ended June 30, 2003</P></FONT>
<TABLE CELLSPACING=0 BORDER=0 WIDTH=577>
<TR><TD WIDTH="39%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="20%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">Less: Merger-</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="20%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">related and</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP">
<FONT SIZE=3><P>(in thousands)</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">As Reported</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="20%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">Other Charges</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">As Adjusted</FONT></TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="20%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="19%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="20%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>Salaries and employee benefits</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$ 288,937</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="20%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$         -0-</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$ 288,937</FONT></TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP">
<FONT SIZE=3><P>Net occupancy expense</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">25,518</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="20%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">-0-</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">25,518</FONT></TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>Furniture and equipment expense</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">20,501</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="20%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">-0-</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">20,501</FONT></TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP">
<FONT SIZE=3><P>Other</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">149,029</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="20%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">19,000</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">130,029</FONT></TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="20%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="19%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>     Total</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$ 483,985</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="20%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$ 19,000</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">$ 464,985</FONT></TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="20%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="19%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="19%" VALIGN="TOP" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="20%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="19%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
</TABLE>

<FONT SIZE=3>
<P>&nbsp;</P>
<P>SALARIES AND EMPLOYEE BENEFITS</P>
<P> </P>
<P>Salaries and employee benefits were up $17.6 million or 3% in the first six months of 2004 compared to the same period in 2003, due to increased benefit plan costs, normal merit increases, and merger related expenses.  In the second quarter of 2004, salaries and employee benefits decreased $743,000 compared to the second quarter of 2003 and $2.7 million compared to the first quarter of 2004.  As of June 30, 2004, Regions had 16,506 full-time equivalent employees.  </P>

<P>NET OCCUPANCY EXPENSE</P>

<P>Net occupancy expense includes rents, depreciation and amortization, utilities, maintenance, insurance, taxes and other expenses of premises occupied by Regions and its affiliates. Regions' affiliates operate banking offices in Alabama, Arkansas, Florida, Georgia, Louisiana, North Carolina, South Carolina, Tennessee, and Texas.</P>

<P>Net occupancy expense increased $2.6 million or 5% in the first six months of 2004 over the first six months of 2003 due to expenses related to new and acquired branch offices. Net occupancy expense in the second quarter of 2004 increased $467,000 compared to second quarter of 2003 but decreased $1.8 million compared to the first quarter of 2004.</P>

<P>FURNITURE AND EQUIPMENT EXPENSE</P>

<P>Furniture and equipment expense during the first six months of 2004 decreased $3.3 million compared to the same period in 2003 due primarily to reduced expenses related to computer equipment. In the second quarter of 2004, furniture and equipment expense decreased $1.2 million compared to the second quarter of 2003. Compared to the first quarter of 2004, furniture and equipment expense was up $1.2 million due primarily to increased computer equipment depreciation. </P>

<P>OTHER EXPENSES</P>

<P>The significant components of other expense include other non-credit losses, amortization and impairment of mortgage servicing rights and computer and other outside services. Other non-interest expense increased $16.9 million or 6% in the first six months of 2004 compared to the same period in 2003 due to increases in professional fees, origination costs associated with mortgage subsidiaries, and merger-related and other charges. In the second quarter of 2004, other non-interest expense decreased $7.8 million compared to the second quarter of 2003 and $13.0 million compared to the first quarter of 2004. Theses decreases were impacted by Regions' recapture of $40.0 million of mortgage servicing rights valuation allowance in the second quarter of 2004, as well as the impairment charges on mortgage servicing rights of $19.0 million in the second quarter of 2003 and $12.0 million in the first quarter of 2004. Also included in other non-interest expense was $39.6 million in losses incurred on the early retirement of $1.1 billion of Federal Home Loan Bank advances in the second quarter of 2004.</P>

<P>APPLICABLE INCOME TAXES</P>

<P>Income tax expense for the first six months of 2004 increased $7.4 million compared to the first six months of 2003 due to higher levels of income before taxes and a higher effective tax rate. The second quarter 2004 income tax expense increased $795,000 compared to the second quarter of 2003. Regions effective tax rate for the first six months of 2004 was 29.2% compared to 28.5% in the first six months of 2003. </P>

<P>From time to time Regions engages in business plans that may also have an effect on its tax liabilities.  While Regions has obtained the opinion of advisors that the tax aspects of these strategies should prevail, examination of Regions' income tax returns or changes in tax law may impact the tax benefits of these plans.  </P>

<P>Periodically, Regions invests in pass-through investment vehicles that generate tax credits, principally low-income housing credits, which directly reduce Regions' federal income tax liability. Congress has legislated these tax credit programs to encourage capital inflows to these investment vehicles. The amount of tax benefit recognized from these tax credits was $12.0 million in the first six months of 2004 and $12.4 million in the first six months of 2003. The amount of tax benefit recognized from these tax credits in the second quarter of 2004 and 2003 was $6.0 million and $6.2 million, respectively.</P>

<P>During the fourth quarter of 2000, Regions recapitalized a mortgage-related subsidiary by raising Tier 2 capital, which resulted in a reduction in taxable income of that subsidiary attributable to Regions.  The reduction in the taxable income of this subsidiary attributable to Regions is expected to result in a lower effective tax rate applicable to the consolidated taxable income before taxes of Regions for future periods.  The impact on Regions' effective tax rate applicable to consolidated income before taxes of the reduction in the subsidiary's taxable income attributable to Regions will, however, depend on a number of factors, including, but not limited to, the amount of assets in the subsidiary, the yield of the assets in the subsidiary, the cost of funding the subsidiary, possible loan losses in the subsidiary, the level of expenses of the subsidiary, the level of income attributable to obligations of states and political subdivisions, and various other factors.  The amount of federal and state tax benefits recognized related to the recapitalized subsidiary was $22.3 million in the first six months of 2004 and $20.8 million in the first six months of 2003.  For the second quarter of 2004, the amount of federal and state tax benefits recognized was $11.1 million compared to $10.3 million in the second quarter of 2003.</P>

<P>Regions has segregated a portion of its investment securities and intellectual property into separate legal entities organized in Delaware in order to, among other business purposes, protect such intangible assets from inappropriate claims of Regions' creditors, and to maximize the return on such assets by the professional and focused management thereof. Regions has recognized state tax benefits related to these legal entities of $6.7 million in the first six months of 2004 and $6.9 million in the first six months of 2003.  In the second quarter of 2004, $3.6 million of state tax benefits was recognized compared to $3.5 million in the second quarter of 2003.</P>

<P>Regions' federal and state income tax returns for the years 1998 through 2002 are open for review and examination by governmental authorities.  In the normal course of these examinations, Regions is subject to challenges from governmental authorities regarding amounts of taxes due.  Regions has received notices of proposed adjustments relating to taxes due for the years 1999 through 2001, which includes proposed adjustments relating to an increase in taxable income of the mortgage-related  subsidiary discussed above.  Regions believes adequate provision for income taxes have been recorded for all years open for review and intends to vigorously contest the proposed adjustments.  To the extent that final resolution of the proposed adjustments results in significantly different conclusions from Regions' current assessment of the proposed adjustments, Regions' effective tax rate in any given financial reporting period may be materially different from its current effective tax rate.</FONT><FONT FACE="Courier"> </P>
</FONT><FONT SIZE=3><P><HR ALIGN="LEFT"></P>
</FONT><FONT FACE="Courier"><P></FONT><A HREF="#table"><FONT SIZE=3>Table of Contents</FONT></A></P>
<U><FONT SIZE=3><P><A NAME="item3"></A>Item 3.&#9;Qualitative and Quantitative Disclosures about Market Risk</P>
</U>
<P>Reference is made to pages 37 through 40 'Market Risk' included in Management's Discussion and Analysis.&#9;</P>
<P><BR>
</P>
<U><P><A NAME="item4"></A>Item 4.  Controls and Procedures</P>

</U><P>Based on an evaluation, as of the end of the period covered by this Form 10-Q, under the supervision and with the participation of Regions' management, including its Chief Executive Officer and Chief Financial Officer, the Chief Executive Officer and Chief Financial Officer have concluded that Regions' disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934) are effective. As of the end of the period covered by this report, there have been no significant changes in Regions' internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, Regions' internal control over financial reporting.</P>

<P>&nbsp;</P>
<P>PART II.  OTHER INFORMATION</P>

<U><P><A NAME="item2"></A>Item 2.&#9;Issuer Purchase of Equity Securities</P>
</U></FONT>
<TABLE CELLSPACING=0 BORDER=0 WIDTH=684>
<TR><TD WIDTH="18%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">Total Number of</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">Maximum Number</FONT></TD>
</TR>
<TR><TD WIDTH="18%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">Shares Purchased</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">of Shares that May</FONT></TD>
</TR>
<TR><TD WIDTH="18%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">Total Number</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">Average Price</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">As Part of Publicly</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">Yet Be Purchased</FONT></TD>
</TR>
<TR><TD WIDTH="18%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">of Shares </FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">Paid Per</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">Announced Plans</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">Adjustment for</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">Under the Plans</FONT></TD>
</TR>
<TR><TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">Period</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">Purchased </FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">Share</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">or Programs</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">Exchange Ratio<SUP>(2)</SUP></FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">or Programs<SUP>(1)</SUP></FONT></TD>
</TR>
<TR><TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="19%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="18%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>April 1, 2004 - </FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
</TR>
<TR><TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>April 30, 2004</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">7,057,000</FONT></TD>
</TR>
<TR><TD WIDTH="18%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>May 1, 2004 -</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
</TR>
<TR><TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>May 31, 2004</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">7,057,000</FONT></TD>
</TR>
<TR><TD WIDTH="18%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>June 1, 2004 -</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
</TR>
<TR><TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>June 30, 2004</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">1,655,572</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">8,712,572</FONT></TD>
</TR>
<TR><TD WIDTH="18%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="19%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="18%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>      Total</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P ALIGN="RIGHT">1,655,572</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP" BGCOLOR="#c0c0c0">&nbsp;</TD>
</TR>
</TABLE>

<FONT SIZE=3>
<P>&nbsp;</P>
<OL>

<LI>On July 15, 2004, Regions' Board of Directors ratified the repurchase of up to 20.0 million shares of Regions' $0.01 par value common stock through open market transactions. </LI>
<LI>Regions and Union Planters Corporation ("Union Planters") merged into a new holding company named Regions Financial Corporation on July 1, 2004. Each share of Regions' $0.625 par value common stock was exchanged for 1.2346 shares of the new company $0.01 par value common stock.  </LI></OL>

<P><HR ALIGN="LEFT"></P>
<P><A NAME="pIIitem4"></A></FONT><A HREF="#table"><FONT SIZE=3>Table of Contents</FONT></A></P>
<U><FONT SIZE=3><P>Item 4.&#9;Submission of Matters to a Vote of Security Holders</P>

</U><P>At the Annual Meeting of Stockholders held June 8, 2004, the proposal to adopt the Agreement and Plan of Merger, dated as of January 22, 2004, by and between Union Planters Corporation and Regions Financial Corporation, was approved, pursuant to which Union Planters and Regions would each be merged with and into a newly-formed holding company, New Regions Financial Corporation. On the proposal, 147,811,227 shares were voted in favor, 1,253,805 shares were voted against, 1,573,997 shares abstained, and there were 37,580,187 broker non-votes.</P>

<P>In addition, four nominees were elected as directors of Regions to serve three-year terms. The directors elected at the 2004 Annual Meeting were Margaret H. Greene (158,119,126 votes in favor and 30,100,090 votes withheld), Carl E. Jones, Jr. (184,706,650 votes in favor and 3,512,566 votes withheld), Susan W. Matlock (185,392,915 votes in favor and 2,826,301 votes withheld), and John H. Watson (185,693,330 votes in favor and 2,525,886 votes withheld).</P>

<P>The stockholders also ratified the Board of Directors' selection of Ernst &amp; Young LLP as independent auditors of the Company for the year ending December 31, 2004. On the proposal, 182,252,091 shares were voted in favor, 3,902,901 shares were voted against, 2,064,224 shares abstained, and there were no broker non-votes.</P>

<P>The stockholders also defeated a shareholder proposal submitted by the United Brotherhood of Carpenters Pension Fund regarding the minimum number of votes required for election of directors. On the shareholder proposal, 23,148,942 shares were voted in favor, 119,104,974 shares were voted against, 8,385,113 shares abstained, and there were 37,580,187 broker non-votes.</P>

<U><P><A NAME="item6"></A>Item 6.&#9;Exhibits and Reports on Form 8-K</P>
</U>
<P>&nbsp;</P><DIR>

<P>(a) Exhibits:</P></DIR>
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<TR><TD WIDTH="29%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">Exhibit No.</FONT></TD>
<TD WIDTH="71%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">Description</FONT></TD>
</TR>
<TR><TD WIDTH="29%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="71%" VALIGN="TOP">&nbsp;</TD>
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<FONT SIZE=3><P ALIGN="CENTER">3.1</FONT></TD>
<TD WIDTH="71%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>Amended and restated Certificate of Incorporation as last amended effective on July 1, 2004</FONT></TD>
</TR>
<TR><TD WIDTH="29%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="71%" VALIGN="TOP">&nbsp;</TD>
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<FONT SIZE=3><P ALIGN="CENTER">3.2</FONT></TD>
<TD WIDTH="71%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>Bylaws as last amended effective on July 1, 2004.</FONT></TD>
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<TD WIDTH="71%" VALIGN="TOP">&nbsp;</TD>
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<FONT SIZE=3><P ALIGN="CENTER">31.1</FONT></TD>
<TD WIDTH="71%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>Certification of chief executive officer pursuant to Section 302 of the Sarbanes Oxley Act of 2002.</FONT></TD>
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<TD WIDTH="71%" VALIGN="TOP">&nbsp;</TD>
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<FONT SIZE=3><P ALIGN="CENTER">31.2</FONT></TD>
<TD WIDTH="71%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>Certification of chief financial officer pursuant to Section 302 of the Sarbanes Oxley Act of 2002.</FONT></TD>
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<TD WIDTH="71%" VALIGN="TOP">&nbsp;</TD>
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<FONT SIZE=3><P ALIGN="CENTER">32</FONT></TD>
<TD WIDTH="71%" VALIGN="TOP" BGCOLOR="#c0c0c0">
<FONT SIZE=3><P>Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.</FONT></TD>
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<P>&#9;</P>

<P>&nbsp;</P><DIR>

<P>(b) Reports on Form 8-K</P><DIR>

<P>&#9;</P></DIR>

<P>A report on Form 8-K, dated April 16, 2004, was furnished on that date under items 9 and 12 in connection with the Registrant's results of operations for the quarter ended March 31, 2004.</P>

<P>A report on Form 8-K, dated May 4, 2004, was furnished on May 5, 2004, under item 9 in connection with the Registrant's presentation in Birmingham, Alabama discussing prospects of the Company.</P>

<P>A report on Form 8-K, dated May 21, 2004, was filed on May 24, 2004, under item 5 concerning the Registrant's settlement of previously disclosed purported stockholder class actions.</P>

<P>A report on Form 8-K, dated June 17, 2004, was furnished on June 18, 2004, under item 9 in connection with the Registrant's presentation in Boston, Massachusetts discussing prospects of the Company.</P>
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<FONT SIZE=3><P ALIGN="CENTER"><A NAME="sign"></A>SIGNATURES</P>

<P>&nbsp;</P>
<P>Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by undersigned thereunto duly authorized.</P>
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<P>&#9;Regions Financial Corporation</P></DIR>
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<P><BR>
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<P>DATE:  August 6, 2004&#9;&#9;</P><DIR>
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<U><P> /s/ Ronald C. Jackson&#9;<BR>
</U>&#9;Ronald C. Jackson<BR>
&#9;Senior Vice President and Comptroller<BR>
&#9;(Chief Accounting Officer and<BR>
&#9; Duly Authorized Officer)<BR>
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<P ALIGN="RIGHT">EXHIBIT 3.1</P>
<P ALIGN="CENTER"></P>
<P ALIGN="CENTER">AMENDED AND RESTATED</P>
<P ALIGN="CENTER"></P>
<P ALIGN="CENTER">CERTIFICATE OF INCORPORATION</P>
<P ALIGN="CENTER"></P>
<P ALIGN="CENTER">OF</P>
<P ALIGN="CENTER"></P>
<P ALIGN="CENTER">REGIONS FINANCIAL CORPORATION</P>
<P ALIGN="CENTER"></P>
<P ALIGN="CENTER">&nbsp;</P>
<P>&#9;FIRST.  The name of the corporation is Regions Financial Corporation.</P>

<P>&#9;SECOND.  The address of its registered office in the State of Delaware is 2711 Centerville Road in the City of Wilmington, County of New Castle.  The name of the registered agent at such address is Corporation Service Company.  The principal office of the corporation shall be in the State of Alabama and shall be located in the City of Birmingham, County of Jefferson.  Directors' meetings (unless from time to time specifically otherwise ordered by the Board of Directors) and appropriate corporate functions shall be held in Birmingham.  The chief executive officer may, for his convenience, in discharging his duties, locate at whatever place he deems desirable the necessary secretarial and personal assistants for the efficient operation of his office.  The corporation may have such other offices, either within or without the State of Alabama, as the Board of Directors may designate or as the business of the corporation may require from time to time.  Specialized personnel, such as auditors, examiners, public relation officers, etc., shall be located in such cities as the Directors may from time to time order.</P>

<P>&#9;THIRD.  The purpose of the corporation is to engage in any lawful act or activity for which corporations may be organized under the General Corporation Law of Delaware.</P>

<P>&#9;FOURTH.  The total number of shares of all classes of stock which the corporation shall have the authority to issue is One Billion Five Hundred Ten Million (1,510,000,000) of which One Billion Five Hundred Million (1,500,000,000) shares are to be common stock (hereinafter called the "Common Stock"), of a par value of one cent ($.01) each, and Ten Million (10,000,000) shares are to be Preferred Stock (hereinafter called the "Preferred Stock") of the par value of one dollar ($1) each.</P>

<P>&#9;(1)&#9;Shares of Preferred Stock may be issued in one or more series from time to time by the board of directors, and the board of directors is expressly authorized to fix by resolution or resolutions the designations and the powers, preferences and rights, and the qualifications, limitations and restrictions thereof, of the shares of each series of Preferred Stock, including without limitation the following:</P>

<P>&#9;&#9;(a)&#9;the distinctive serial designation of such series which shall distinguish it from other series;</P>

<P>&#9;&#9;(b)&#9;the number of shares included in such series;</P>

<P>&#9;&#9;(c)&#9;the dividend rate (or method of determining such rate) payable to the holders of the shares of such series, any conditions upon which such dividends shall be paid and the date or dates upon which such dividends shall be payable;</P>

<P>&#9;&#9;(d)&#9;whether dividends on the shares of such series shall be cumulative and, in the case of shares of any series having cumulative dividend rights, the date or dates or method of determining the date or dates from which dividends on the shares of such series shall be cumulative;</P>

<P>&#9;&#9;(e)&#9;the amount or amounts which shall be payable out of the assets of the corporation to the holders of the shares of such series upon voluntary or involuntary liquidation, dissolution, or winding up the corporation, and the relative rights of priority, if any, of payment of the shares of such series;</P>

<P>&#9;&#9;(f)&#9;the price or prices at which, the period or periods within which and the terms and conditions upon which the shares of such series may be redeemed, in whole or in part, at the option of the corporation or at the option of the holder or holders thereof or upon the happening of a specified event or events;</P>

<P>&#9;&#9;(g)&#9;the obligation, if any, of the corporation to purchase or redeem shares of such series pursuant to a sinking fund or otherwise and the price or prices at which, the period or periods within which and the terms and conditions upon which the shares of such series shall be redeemed or purchased, in whole or in part, pursuant to such obligation;</P>

<P>&#9;&#9;(h)&#9;whether or not the shares of such series shall be convertible or exchangeable, at any time or times at the option of the holder or holders thereof or at the option of the corporation or upon the happening of a specified event or events, into shares of any other class or classes or any other series of the same or any other class or classes of stock of the corporation, and the price or prices or rate or rates of exchange or conversion and any adjustments applicable thereto; and</P>

<P>&#9;&#9;(i)&#9;whether or not the holders of the shares of such series shall have voting rights, in addition to the voting rights provided by law (if any), and if so the terms of such voting rights.</P>

<P>&#9;(2)&#9;Subject to the rights of the holders of any series of Preferred Stock, the number of authorized shares of any class or series of Preferred Stock set forth in this certificate of incorporation, as it may be amended from time to time, may be increased or decreased (but not below the number of shares thereof then outstanding) by the affirmative vote of the holders of a majority of the outstanding shares of such class or series, voting together as a single class, irrespective of the provisions of Section 242(b)(2) of the General Corporation Law of Delaware or any corresponding provision hereafter enacted.</P>

<P>&#9;(3)&#9;Authority is hereby expressly granted to the Board of Directors from time to time to issue any authorized but unissued shares of Common Stock for such consideration and on such terms as it may determine.</P>

<P>&#9;FIFTH.  The name and mailing address of each incorporator is as follows:</P>

<P>&#9;&#9;NAME&#9;&#9;&#9;&#9;&#9;MAILING ADDRESS</P>

<P>&#9;Jeffrey I. Schwartz&#9;&#9;&#9;&#9;125 Broad Street</P>
<P>&#9;&#9;&#9;&#9;&#9;&#9;&#9;New York, New York  10004</P>

<P>&#9;SIXTH.  The corporation is to have perpetual existence.</P>

<P>&#9;SEVENTH.  In furtherance and not in limitation of the powers conferred by statute, the Board of Directors is expressly authorized.</P>

<P>&#9;(1)&#9;To make, alter or repeal the by-laws of the corporation, except as otherwise may be provided by such by-laws.</P>

<P>&#9;(2)&#9;To authorize and cause to be executed mortgages and liens upon the real and personal property of the corporation.</P>

<P>&#9;(3)&#9;To declare such lawful dividends, either in cash or stock of the corporation, as in its discretion it may deem advisable.</P>

<P>&#9;(4)&#9;To set apart out of any of the funds of the corporation available for dividends a reserve or reserves for any proper purposes and to abolish any such reserve in the manner in which it was created.</P>

<P>&#9;(5)&#9;To fix the number of Directors which shall constitute the whole Board, subject to the following:</P>

<P>&#9;&#9;(a)&#9;The number of Directors constituting the entire Board shall be fixed from time to time by vote of a majority of the entire Board except as may be otherwise provided in the by-laws of the corporation, provided, however, that the number of Directors shall not be reduced so as to shorten the term of any Director at the time in office.</P>

<P>&#9;&#9;(b)&#9;The Board of Directors shall be divided into three classes, as nearly equal in numbers as the then total number of Directors constituting the entire Board permits with the term of office of one class expiring each year.  Directors of the first class shall hold office for a term expiring at the 2005 annual meeting.  Directors of the second class shall hold office for a term expiring at the 2006 annual meeting and Directors of the third class shall hold office for a term expiring at the 2007 annual meeting.  Except as otherwise provided in the by-laws of the corporation, any vacancies in the Board of Directors for any reason, and any created directorships resulting from any increase in the number of Directors may be filled by the Board of Directors, acting by a majority of Directors then in office, although less than a quorum, and any directors so chosen shall hold office until the next election of the class for which such Directors shall have been chosen and until their successors shall be elected and qualified.  No decrease in the number of Directors shall shorten the term of any incumbent Director.  Subject to the foregoing, at each annual meeting of stockholders the successors to the class of Directors whose term shall then expire shall be elected to hold office for a term expiring at the third succeeding annual meeting.</P>

<P>&#9;&#9;(c)&#9;Notwithstanding any other provisions of this certificate of incorporation or the by-laws of the corporation (and notwithstanding the fact that some lesser percentage may be specified by law, this certificate of incorporation or the by-laws of the corporation), any Director or the entire Board of Directors of the corporation may be removed at any time, but only for cause and only by the affirmative vote of the holders of 75% or more of the outstanding shares of capital stock of the corporation entitled to vote generally in the election of directors (considered for this purpose as one class) cast at a meeting of the stockholders called for that purpose.</P>

<P>&#9;&#9;(d)&#9;In the event that the holders of any class or series of stock of the corporation shall be entitled, voting separately as a class, to elect any directors of the corporation, then the number of directors that may be elected by such holders shall be in addition to the number fixed pursuant to the by-laws and, except as otherwise expressly provided in the terms of such class or series, the terms of the directors elected by such holders shall expire at the annual meeting of stockholders next succeeding their election without regard to the classification of the remaining directors.</P>

<P>&#9;(6)&#9;(a)&#9;Except as set forth in Clause (d) of this paragraph (6) of Article Seventh, the affirmative vote of the holders of at least 75% of the outstanding shares of the corporation entitled to vote in election of Directors shall be required to effect or validate:</P>

<P>&#9;&#9;&#9;(1)&#9;any merger or consolidation with or into any other corporation, or</P>

<P>&#9;&#9;&#9;(2)&#9;any sale or lease of all or a substantial part of the assets of the corporation to any other corporation, person or other entity,</P>

<P>if, in the case of both (1) and (2), as of the record date for determination of stockholders entitled to notice thereof and to vote thereon, such other corporation, person or entity which is party to such a transaction is the beneficial owner, directly or indirectly, of 5% or more of the outstanding shares of the corporation entitled to vote in elections of directors.  Such affirmative vote shall be in addition to any vote of the holders of the shares of the corporation otherwise required by law, this certificate of incorporation or any agreement between the corporation and any national securities exchange.</P>

<P>&#9;&#9;(b)&#9;For purpose of this paragraph (6) any corporation, person or other entity shall be deemed to be the beneficial owner of any shares of the corporation:</P>

<P>&#9;&#9;&#9;(1)&#9;which it owns directly, whether or not of record, or</P>

<P>&#9;&#9;&#9;(2)&#9;which it has the right to acquire pursuant to any agreement or understanding or upon exercise of conversion rights, warrants or options or otherwise, or</P>

<P>&#9;&#9;&#9;(3)&#9;which are beneficially owned, directly or indirectly (including shares deemed to be owned through application of clause (2) above), by an "affiliate" or "associate" as those terms are defined in Rule 12b-2 of the General Rules and Regulations under the Securities Exchange Act of 1934, as amended and in effect on April 1, 2004, or </P>

<P>&#9;&#9;&#9;(4)&#9;which are beneficially owned, directly or indirectly (including shares deemed owned through application of clause (2) above), by any other corporation, person or entity with which it or its "affiliate" or "associate" has any agreement or arrangement or understanding for the purpose of acquiring, holding, voting, or disposing of shares of the corporation.  For the purpose of determining whether a specific corporation, person or entity is the beneficial owner of one or more of the outstanding shares of the corporation, the outstanding shares of the corporation shall include shares not in fact outstanding but deemed owned through the application of clauses (b)(2)(3) and (4) above by such corporation, person or entity, but shall not include any other shares which may be issuable pursuant to any agreement or upon exercise of conversion rights, warrants or options or otherwise.</P>

<P>&#9;&#9;(c)&#9;The Board of Directors shall have the power and duty to determine for the purposes of this paragraph (6), on the basis of information known to the corporation, whether:</P>

<P>&#9;&#9;&#9;(1)&#9;such other corporation or entity beneficially owns more than 5% of the outstanding shares of the corporation entitled to vote in elections of Directors;</P>

<P>&#9;&#9;&#9;(2)&#9;a corporation, person, or entity is an "affiliate" or "associate" (as defined in paragraph (b) above) of another; and </P>

<P>&#9;&#9;&#9;(3)&#9;the memorandum of understanding referred to in clause (d) below is substantially consistent with the transaction covered thereby.</P>

<P>&#9;&#9;Any such determination shall be conclusive and binding for all purposes of this paragraph (6).</P>

<P>&#9;&#9;(d)&#9;The provisions of this paragraph (6) shall not apply to:</P>

<P>&#9;&#9;&#9;(1)&#9;any transaction of a type addressed by paragraph 6(a)(1) or (2) if the Board of Directors of the corporation has approved a memorandum of understanding or other written agreement providing for such transaction with such other corporation prior to the time that such other corporation shall have become the beneficial owner of more than 5% of the outstanding shares of the corporation entitled to vote in elections of Directors; or after such acquisition of 5% of the outstanding shares, if 75% or more of the entire Board of Directors approve such transaction prior to its consummation; or</P>

<P>&#9;&#9;&#9;(2)&#9;any merger or consolidation of the corporation with, or any sale or lease by the corporation or any subsidiary thereof of any assets of, or any sale or lease by the corporation or any subsidiary thereof of any of its assets to, any corporation of which a majority of the outstanding shares of all classes of stock entitled to vote in election of Directors is owned of record or beneficially by the corporation and its subsidiaries.</P>

<P>&#9;EIGHTH.  Elections of directors need not be written ballot except and to the extent provided in the by-laws of the corporation or directed by a majority of the entire Board of Directors.</P>

<P>&#9;NINTH.  No action required to be taken or which may be taken at any annual or special meeting of stockholders of the corporation may be taken without a meeting, and the power of stockholders to consent in writing, without a meeting, to the taking of any action is specifically denied.</P>

<P>&#9;TENTH.  (1)&#9;The corporation shall indemnify its officers, directors, employees and agents to the fullest extent permitted by law.</P>

<P>&#9;(2)&#9;No director of the corporation shall be personally liable to the corporation or its stockholders for monetary damages, for breach of fiduciary duty as a director, except for liability (i) for any breach of the director's duty of loyalty to the corporation or its stockholders; (ii) for acts or omissions not in good faith or which involve intentional misconduct or a knowing violation of law; (iii) under Section 174 of the Delaware General Corporation Law; or (iv) for any transaction from which the director derived an improper personal benefit.</P>

<P>&#9;ELEVENTH.  Whenever a compromise or arrangement is proposed between this corporation and its creditors or any class of them and/or between this corporation and its stockholders or any class of them, any court of equitable jurisdiction within the State of Delaware may, on this application in a summary way of this corporation or of any creditor or stockholder thereof, or on the application of any receiver or receivers appointed for this corporation under the provisions of Section 291 of Title 8 of the Delaware Code or on the application of trustees in dissolution or of any receiver or receivers appointed for this corporation under the provisions of Section 279 of Title 8 of the Delaware Code order a meeting of the creditors or class of creditors, and/or of the stockholders or class of stockholders of this corporation, as the case may be, to be summoned in such manner as the said court directs.  If a majority in number representing three-fourths in value of the creditors or class of creditors, and/or of the stockholders or class of stockholders of this corporation, as the case may be, agree to any compromise or arrangement and to any reorganization of this corporation as consequence of such compromise or arrangement, the said compromise or arrangement and the said application has been made, be binding on all the creditors or class of creditors, and/or on all the stockholders or class of stockholders, of this corporation, as the case may be, and also on this corporation.</P>

<P>&#9;TWELFTH.  The corporation reserves the right to amend, alter, change or repeal any provision contained in this certificate of incorporation, in the manner now or hereafter prescribed by statute, and all rights conferred upon stockholders herein are granted subject to this reservation.</P>

<P>&#9;As provided in Article Seventh, paragraph (1), the Board of Directors is expressly authorized to make, alter or repeal by-laws of the corporation by a vote of a majority of the entire Board except as otherwise provided in the by-laws; and the stockholders may make, alter or repeal any by-laws whether or not adopted by them, provided however, that any such additional by-laws, alterations or repeal by the stockholders may be adopted only by the affirmative vote of the holders of 75% or more of the outstanding shares of capital stock of the corporation entitled to vote generally in the election of Directors (considered for this purpose as one class) at a meeting of stockholders called for such purpose.</P>

<P>&#9;Notwithstanding any other provision of this certificate of incorporation or the by-laws of the corporation (and in addition to any other vote that may be required by law, this certificate of incorporation or the by-laws) the affirmative vote of the holders of at least 75% of the outstanding shares of the capital stock of the corporation entitled to vote generally in the election of Directors (considered for this purpose as one class) shall be required to amend, alter or repeal any provision of Article Seventh paragraph (5), Article Seventh paragraph (6), Article Ninth, Article Tenth or Article Twelfth of the certificate of incorporation.</P>

<P>&#9;THIRTEENTH.  This amended and restated certificate of incorporation shall become effective as of 12:01 a.m. Eastern Time on July 1, 2004.</P>

<P>&#9;IN WITNESS WHEREOF, the undersigned, being the Chief Executive Officer of the corporation, does hereby execute this amended and restated certificate of incorporation this 30th day of June, 2004.</P>

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<U><P>/s/ Carl E. Jones, Jr.&#9;&#9;&#9;                     </P>
</U><P>Name:  Carl E. Jones, Jr.</P>
<P>Title:  Chief Executive Officer</P>

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                                                                     EXHIBIT 3.2

                                     BY-LAWS
                                       OF
                           REGIONS FINANCIAL CORPORATION

                               ARTICLE I. OFFICES

Section 1.        Registered Office:

         The registered office shall be established and maintained at the office
of the Corporation Service Company, in the City of Wilmington, in the County of
New Castle, in the State of Delaware, and said corporation shall be the
registered agent of this Corporation in charge thereof.

Section 2.        Other Offices:

         The Corporation may have other offices, either within or without the
State of Delaware, at such place or places as the Board of Directors may from
time to time appoint or the business of the Corporation may require. The
principal place of business of the Corporation shall be in Birmingham, Alabama.

                      ARTICLE II. MEETINGS OF STOCKHOLDERS

Section 1.        Annual Meetings:

         Annual meetings of stockholders for the election of Directors and for
such other business as may be stated in the notice of the meeting, shall be held
at such place, either within or without the State of Delaware, and at such time
and date as the Board of Directors, by resolution, shall determine and as set
forth in the notice of the meeting.

         At each annual meeting, the stockholders entitled to vote shall elect
Directors, and they may transact such other corporate business as may properly
come before the meeting.

Section 2.        Other Meetings:

         Meetings of stockholders for any purpose other than the election of
Directors may be held at such time and place, within or without the State of
Delaware, as shall be stated in the notice of the meeting.

Section 3.        Voting:

         Each stockholder entitled to vote in accordance with the terms of the
Certificate of Incorporation and in accordance with the provisions of these
By-Laws shall be entitled to one vote, in person or by proxy, for each share of
stock entitled to vote held by such stockholder, but no proxy shall be voted
after eleven (11) months from its date unless

<PAGE>

such proxy provides for a longer period. A stockholder may authorize another
person to act as proxy by transmitting, or authorizing the transmission of, a
telegram, cablegram or other means of electronic transmission to the person
authorized to act as proxy or to a proxy solicitation firm, proxy support
service organization, or other person authorized by the person who will act as
proxy to receive the transmission, in each case as the Board of Directors, the
Chairman of the Board of Directors or the presiding officer of the meeting may
determine from time to time. Such proxy shall be filed with the secretary of the
Corporation before or at the time of the meeting. All elections for Directors
shall be decided by a plurality vote; all other questions shall be decided by a
majority vote except as otherwise provided by the Certificate of Incorporation
or the laws of the State of Delaware.

         A complete list of the stockholders entitled to vote at the ensuing
election, arranged in alphabetical order, with the address of each, and the
number of shares held by each, shall be open to the examination of any
stockholder, for any purpose germane to the meeting, during ordinary business
hours for a period of at least ten days prior to the meeting, either at a place
within the city where the meeting is to be held, which place shall be specified
at the notice of the meeting, or if not so specified, at the place where the
meeting is to be held. The list shall also be produced and kept at the time and
place of the meeting during the whole time thereof, and may be inspected by any
stockholder who is present.

Section 4.        Quorum:

         A majority of the outstanding shares of the Corporation entitled to
vote, represented in person or by proxy, shall constitute a quorum at meetings
of stockholders. For purposes of the foregoing, where a separate vote by class
or classes is required for any matter, the holders of a majority of the
outstanding shares of such class or classes, present in person or represented by
proxy, shall constitute a quorum to take action with respect to that vote on
that matter. Two or more classes or series of stock shall be considered a single
class if the holders thereof are entitled to vote together as a single class at
the meeting. In determining whether a quorum is present, shares held by a
subsidiary corporation owned by this Corporation, and treasury shares, shall not
be counted. If less than a majority of the outstanding shares are represented, a
majority of the shares so represented may adjourn the meeting from time to time
without further notice, but until a quorum is secured no other business may be
transacted. The stockholders present at a duly organized meeting may continue to
transact business until an adjournment notwithstanding the withdrawal of enough
stockholders to leave less than a quorum. At any duly organized meeting, a vote
of a majority of the stock represented thereat shall decide any question brought
before the meeting.

Section 5.        No Stockholder Action by Consent:

         No action required to be taken or which may be taken at any annual or
special meeting of stockholders of the Corporation may be taken without a
meeting, and the power of stockholders to consent in writing, without a meeting,
to the taking of any action is specifically denied.

Section 6.        Special Meetings:

         Special meetings of the stockholders for any purpose or purposes may be
called by the Chief Executive Officer, the President, the Secretary, or by
resolution of the Directors.

Section 7.        Notice of Meetings:

         Written notice, stating the place, date and time of the meeting, and
the general nature of the business to be considered, shall be given to each
stockholder entitled to vote thereat at his address as it appears on the records
of the Corporation, not less than ten nor more than sixty days before the date
of the meeting. If mailed, such notice shall be deemed to be given when
deposited in the United States mail, postage prepaid, directed to the
stockholder at such stockholder's address as it appears on the records of the
Corporation.

Section 8.        Notice of Stockholder Business and Nominations:

         (A)      Annual Meetings of Stockholders. (1) Nominations of persons
for election to the Board of Directors of the Corporation and the proposal of
business to be considered by the stockholders may be made at an annual meeting
of stockholders (a) pursuant to the Corporation's notice of meeting, (b) by or
at the direction of the Board of Directors (including pursuant to Section 10 of
Article III) or (c) by any stockholder of the Corporation who was a stockholder
of record at the time of giving of notice provided for in this By-Law, who is
entitled to vote at the meeting and who complied with the notice procedures set
forth in this By-Law.

             (2) For nominations or other business to be properly brought before
an annual meeting by a stockholder pursuant to clause (c) of paragraph (A)(1) of
Section 8 of this Article II, the stockholder must have given timely notice
thereof in writing to the Secretary of the Corporation and such other business
must be a proper matter for stockholder action. To be timely, a stockholder's
notice shall be delivered to the Secretary at the principal executive offices of
the Corporation not later than the close of business on the 120th day prior to
the first anniversary of the date of the preceding year's proxy statement;
provided, however, that in the event that no annual meeting were held the
previous year or that the date of the annual meeting is more than 30 days before
or after the first anniversary of the preceding year's annual meeting, notice
by the stockholder to be timely must be so delivered not later than the close
of business on the later of the 120th day prior to such annual meeting or the
10th day following the day on which public announcement of the date of such
meeting is first made. In no event shall the public announcement of an
adjournment of an annual meeting commence a new time period for the giving of
a stockholder's notice as described above. Such stockholder's notice shall set
forth (a) as to each person whom the stockholder proposes to nominate for
election or reelection as a Director all information relating to such person
that is required to be disclosed in solicitations of proxies for election of
Directors in an election contest, or is otherwise required, in each case
pursuant to Regulation 14A under the Securities Exchange Act of 1934, as
amended (the "Exchange Act") (including such person's written consent to being
named in the proxy statement as a nominee and to serving as a Director if
elected); (b) as to any other business that the stockholder proposes to bring
before the meeting, a brief description of the business desired to be brought
before the meeting, the reasons for conducting such business at the meeting
and any material interest in such business of such stockholder and the
beneficial owner, if any, on whose behalf the proposal is made; (c) as to the
stockholder giving the notice and the beneficial owner, if any, on whose behalf
the nomination or proposal is made (i) the name and address of such stockholder,
as they appear on the Corporation's books, and of such beneficial owner,
(ii) the class and number of shares of the Corporation which are owned
beneficially and of record by such stockholder and such beneficial owner, and
(iii) with respect to nominations, a description of all arrangements or
understandings between such stockholder and such beneficial owner and each
proposed nominee and any other person or persons (including their names)
pursuant to which the nominations are to be made by such stockholder; and (d)
the names and addresses of any other stockholders or beneficial owners known to
be supporting such nomination or business by the proposing stockholder or
beneficial owner, if any, on whose behalf the nomination or proposal is made.

         (B)      Special Meetings of Stockholders. Only such business shall be
conducted at a special meeting of stockholders as shall have been brought before
the meeting pursuant to the Corporation's notice of meeting. Nominations of
persons for election to the Board of Directors may be made at a special meeting
of stockholders at which Directors are to be elected pursuant to the
Corporation's notice of meeting (a) by or at the direction of the Board of
Directors or (b) by any stockholder of the Corporation who is a stockholder of
record at the time of giving of notice provided for in this By-Law, who shall be
entitled to vote at the meeting and who complies with the notice procedures set
forth in this By-Law. In the event the Corporation calls a special meeting of
stockholders for the purpose of electing one or more Directors to the Board of
Directors, any such stockholder may nominate a person or persons (as the case
may be), for election to such position(s) as specified in the Corporation's
notice of meeting, if the stockholder's notice required by paragraph (A)(2) of
Section 8 of this Article II shall be delivered to the Secretary at the
principal executive offices of the Corporation not later than the last to occur
of (a) the close of business on the 120th day prior to such special meeting and
not later than the close of business on the 90th day prior to such special
meeting or (b) the 10th day following the day on which public announcement is
first made of the date of the special meeting and of the nominees proposed by
the Board of Directors to be elected at such meeting. In no event shall the
public announcement of an adjournment of a special meeting commence a new time
period for the giving of a stockholder's notice as described above.

         (C)      General. (1) Only such persons who are nominated in accordance
with the procedures set forth in this By-Law shall be eligible to serve as
Directors (except as provided by Section 10 of Article III) and only such
business shall be conducted at a meeting of stockholders as shall have been
brought before the meeting in accordance with the procedures set forth in this
By-Law. Except as otherwise provided by Delaware law, the Chairman of the
meeting shall have the power and duty to determine whether a nomination or any
business proposed to be brought before the meeting was made, or proposed, as the
case may be, in accordance with the procedures set forth in this By-Law and, if
any proposed nomination or business is not in compliance with this By-Law, to
declare that such defective proposal or nomination shall be disregarded.

             (2) For purposes of this By-Law, "public announcement" shall mean
disclosure in a press release reported by the Dow Jones News Service, Associated
Press or comparable national news service or in a document publicly filed by the
Corporation with the Securities and Exchange Commission pursuant to Section 13,
14 or 15(d) of the Exchange Act.

             (3) Notwithstanding the foregoing provisions of this By-Law, a
stockholder shall also comply with all applicable requirements of the Exchange
Act and the rules and regulations thereunder with respect to the matters set
forth in this By-Law. Nothing in this By-Law shall be deemed to affect any
rights of (i) stockholders to request inclusion of proposals in the
Corporation's proxy statement pursuant to Rule 14a-8 under the Exchange Act or
(ii) the holders of any series of Preferred Stock to elect Directors under
specified circumstances.

                             ARTICLE III. DIRECTORS

Section 1.        Number and Term:

         The number of Directors which shall constitute the whole Board shall be
fixed, from time to time, by resolutions adopted by the Board of Directors, in
compliance with Section 10 of this Article III, but from and after the Effective
Time (as defined in Section 10 of this Article III), shall not be less than
three persons. The Directors shall be of three classes, so that approximately
one-third in number of the Directors shall be elected at each annual meeting of
stockholders and, except as hereinafter provided, each Director shall hold
office for three years, or until his successor is elected and qualified, or
until his earlier retirement, death, resignation or removal. Directors need not
be residents of Delaware.

Section 2.        Resignations:

         Any Director or other officer may resign at any time. Such resignation
shall be made in writing, and shall take effect at the time of its receipt by
the Chief Executive Officer, the President, or the Secretary or at such other
time as may be specified therein. The acceptance of a resignation shall not be
necessary to make it effective.

Section 3.        Vacancies:

         Except as provided in Section 10 of this Article III, if the office of
any Director or other officer becomes vacant, the remaining Directors in office,
though less than a quorum, by a majority vote, may appoint any qualified person
to fill such vacancy, who shall hold office for the unexpired term and until his
successor shall be duly chosen.

Section 4.        Removal:

         Notwithstanding the fact that some lesser percentage may be specified
by law, any Director or the entire Board of Directors of the Corporation may be
removed at any time, but only for cause and only by the affirmative vote of the
holders of 75% or more of the outstanding shares of capital stock of the
Corporation entitled to vote generally in the election of directors (considered
for this purpose as one class) cast at a meeting of the stockholders called for
that purpose.

Section 5.        Powers:

         The Board of Directors shall exercise all the powers of the Corporation
except such as are by law, by the Certificate of Incorporation of the
Corporation or by these By-Laws conferred upon or reserved to the stockholders.

Section 6.        Meetings:

         A regular meeting of the Board of Directors shall be held immediately
before or after the Annual Meeting of Stockholders. Additional meetings of the
Directors may be held without notice at such places and times as shall be
determined from time to time by resolution of the Directors.

         Special meetings of the Board of Directors may be called by the Chief
Executive Officer, the President, or by the Secretary on the written request of
a majority of the Board of Directors on at least two days' notice to each
Director and shall be held at such place or places as may be determined by the
Directors, or as shall be stated in the call of the meeting.

         Unless otherwise restricted by the Certificate of Incorporation or
these By-Laws, members of the Board of Directors, or any committee designated by
the Board of Directors, may participate in a meeting of the Board of Directors,
or any committee, by means of conference telephone or similar communications
equipment by means of which all persons participating in the meeting can hear
each other, and such participation in a meeting shall constitute presence in
person at the meeting.

Section 7.        Quorum:

         A majority of the Directors shall constitute a quorum for the
transaction of business. If at any meeting of the Board of Directors there shall
be less than a quorum present, a majority of those present may adjourn the
meeting from time to time until a quorum is obtained, and no further notice
thereof need be given other than by announcement at the meeting which shall be
so adjourned. Notwithstanding the withdrawal of enough directors to leave less
than a quorum, the directors present at a duly organized meeting may continue to
transact business until adjournment.

Section 8.        Compensation:

         Directors shall not receive any stated salary for their services as
Directors or as members of committees, except that by resolution of the Board of
Directors, retainer fees, meeting fees, and expenses of attendance at meetings
may be authorized. Nothing herein contained shall be construed to preclude any
Director from serving the Corporation in any other capacity as an officer, agent
or otherwise, and receiving compensation therefor.

Section 9.        Action Without Meeting:

         Any action required or permitted to be taken at any meeting of the
Board of Directors or of any committee thereof, may be taken without a meeting,
if prior to such action a written consent thereto is signed by all members of
the Board of Directors, or of such committee as the case may be, and such
written consent is filed with the minutes of proceedings of the Board of
Directors or committee.

Section 10.       Board Composition:

         (A)      The Board of Directors of the Corporation has resolved that,
effective as of the Effective Time (as defined in the Agreement and Plan of
Merger, dated as of January 22, 2004, by and between Regions Financial
Corporation ("Regions") and Union Planters Corporation ("Union Planters"), as
the same may be amended from time to time (the "Merger Agreement")), the Board
of Directors of the Corporation shall be comprised of 26 directors, of which
thirteen shall be former members of the Board of Directors of Regions chosen by
Regions (the "Former Regions Directors") and thirteen of which shall be former
members of the Board of Directors of Union Planters chosen by Union Planters
(the "Former Union Planters Directors") and the Former Regions Directors and the
Former Union Planters Directors shall be apportioned among the three classes of
the Board of Directors in a manner as nearly equal as possible. From and after
the Effective Time through June 30, 2007, all vacancies on the Board of
Directors of the Corporation created by the cessation of service of a Former
Regions Director shall be filled by a nominee proposed to the nominating
committee of the Board of Directors of the Corporation by a majority of the
remaining Former Regions Directors, and all vacancies on the Board of Directors
of the Corporation created by the cessation of service of a Former Union Planters
Director shall be filled by a nominee proposed to the nominating committee of the
Board of Directors of the Corporation by a majority of the remaining Former Union
Planters Directors, and all directors so nominated and appointed or elected to
the Board of Directors of the Corporation by the Former Regions Directors shall
be considered "Former Regions Directors" for purposes of this Section 10 and all
directors so nominated and appointed or elected to the Board of Directors of the
Corporation by the Former Union Planters Directors shall be considered "Former
Union Planters Directors" for purposes of this Section 10.

         (B)      The provisions of this Section 10 may be modified, amended or
repealed, and any By-Law provision inconsistent with the provisions of this
Section 10 may be adopted, only by an affirmative vote of at least 66-2/3% of
the full Board of Directors. In the event of any inconsistency between any
provision of this Section 10 and any other provision of these By-Laws or the
Corporation's other constituent documents, the provisions of this Section 10 are
intended to control.

Section 11. Committees. A majority of the whole Board of Directors shall have
the authority to designate one or more committees, each committee to consist of
one or more of the Directors of the Corporation. The Board may designate one or
more Directors as alternate members of any committee, who may replace any absent
or disqualified member or any meeting of the committee. Any such committee, to
the extent provided in the resolution or in these By-Laws of the Corporation,
shall have and may exercise the powers of the Board of Directors in the
management of the business and affairs of the Corporation, and may authorize the
seal of the Corporation to be affixed to all papers which may require it;
provided, however, these By-Laws may provide that in the absence or
disqualification of any member of such committee or committees, the member or
members thereof present at any meeting and not disqualified from voting, whether
or not he or they constitute a quorum, may unanimously appoint another member of
the Board of Directors to act at the meeting in the place of any such absent or
disqualified member.

                              ARTICLE IV. OFFICERS

Section 1.        Officers:

         The officers of the Corporation shall be a Chief Executive Officer, a
President, such Vice-Presidents as shall from time to time be deemed necessary,
a Secretary, a Comptroller, and such other officers as may be deemed
appropriate. A Chairman of the Board and one or more Vice-Chairman may also be
elected. All such officers shall be elected by the Board of Directors and shall
hold office until their successors are elected and qualified. None of the
officers of the Corporation need be Directors. More than one office may be held
by the same person.

Section 2.        Chairman of the Board:

         In the event there is a Chairman of the Board, he shall preside at all
meetings of the Board of Directors and stockholders. He shall have and perform
such duties as usually devolve upon his office and such other duties as are
prescribed by the By-Laws and by the Board of Directors. In the absence or
inability to act of the Chairman of the Board in such capacity, the Chief
Executive Officer shall have and exercise all the powers and duties of such
office and shall preside at all meetings of the Board of Directors, and in the
absence or inability to act of the Chief Executive Officer pursuant to the
foregoing, the President shall have and exercise all the powers and duties of
such office and shall preside at all meetings of the Board of Directors, and in
the absence or inability to act of the President pursuant to the foregoing, any
Vice-Chairman shall have and exercise all the powers and duties of such office
and shall preside at all meetings of the Board of Directors, and in the absence
or inability to act of any Vice-Chairman pursuant to the foregoing, the other
Directors shall appoint an officer or director of the Corporation to have and
exercise all such powers and duties of such office as may be appropriate and
shall elect one of their number to preside at the meeting.

Section 3.        Chief Executive Officer:

         The Chairman of the Board or the President, as may be designated by the
Board of Directors, shall serve as the Chief Executive Officer of the
Corporation. Subject to the control of the Board of Directors, he shall be
vested with authority to act for the Corporation, and shall have general and
active management of the business of the Corporation and such other general
powers and duties of supervision and management as usually devolve upon such
office and as may be prescribed from time to time by the Board of Directors.

Section 4.        Vice-Chairman:

         In the event there is a Vice-Chairman of the Board, he shall have and
perform such duties as are prescribed from time to time by the Board of
Directors.

Section 5.        President:

         The President shall perform such duties as usually devolve upon his
office and such other duties as are prescribed by the By-Laws, by the Board of
Directors, and by the Chairman of the Board.

Section 6.        Vice-Presidents:

         The Vice-Presidents shall perform such duties as may be assigned to
them from time to time by the By-Laws, the Board of Directors, the Chairman of
the Board, or the President.

Section 7.        Comptroller:

         The Comptroller shall have custody of all funds of the Corporation. He
shall have and perform such duties as are incident to the office of Comptroller
and such other duties as may from time to time be assigned to him by the Board
of Directors, the Chairman of the Board, or the President.

Section 8.        Secretary:

         The Secretary shall keep minutes of all meetings of the stockholders
and the Board of Directors unless otherwise directed by those bodies. He shall
have custody of the corporate seal, and the Secretary or any Assistant Secretary
shall affix the same to all instruments or papers requiring the seal of the
Corporation. The Secretary, or in his absence, any Assistant Secretary, shall
attend to the giving and serving of all notices of the Corporation. He shall
perform all the duties incident to the office of Secretary, subject to the
control of the Board of Directors, and shall do and perform such other duties as
may from time to time be assigned by the Board of Directors, the Chairman of the
Board, or the President.

Section 9.        Other Officers and Agents:

         The Board of Directors may appoint such other officers and agents as it
may deem advisable, who shall exercise such powers and perform such duties as
shall be determined from time to time by the Board of Directors.

Section 10.       Election and Term:

         The officers of the Corporation shall be elected annually by the Board
of Directors. Except as provided in Section 11 of this Article IV, each officer
shall hold office at the pleasure of the Board of Directors until his death,
resignation, retirement, or removal.

Section 11.       Chairman of the Board and CEO Position and Succession:

         (A)      The Board of Directors of the Corporation has resolved that,
effective as of the Effective Time (as defined in the Merger Agreement), Carl E.
Jones, Jr. shall serve as Chairman of the Board and Chief Executive Officer of
the Corporation and Jackson W. Moore shall become the President and Chief
Executive Officer-Designate of the Corporation. The Board of Directors of the
Corporation has further resolved that Jackson W. Moore shall be the successor to
Carl E. Jones, Jr. as the Chief Executive Officer of the Corporation, with such
succession to become effective on July 1, 2005 or any such earlier date as of
which Carl E. Jones, Jr. ceases for any reason to serve in the position of Chief
Executive Officer of the Corporation (the date of such succession, the "First
Succession Date"), and that Carl E. Jones, Jr. shall continue to serve as
Chairman of the Board following the First Succession Date until June 30, 2006.
The Board of Directors has further resolved that Jackson W. Moore shall be the
successor to Carl E. Jones, Jr. as the Chairman of the Board of the Corporation,
with such succession to become effective on July 1, 2006 or any such earlier
date as of which Carl E. Jones, Jr. no longer serves as the Chairman of the
Board of the Corporation (the "Second Succession Date").

         (B)      The removal of Carl E. Jones, Jr. or Jackson W. Moore from, or
the failure to appoint or re-elect Carl E. Jones, Jr. or Jackson W. Moore to,
any of the positions specifically provided for in this Section 11, and any
amendment to or termination of any employment agreement with Carl E. Jones, Jr.
or Jackson W. Moore, prior to the Second Succession Date and any determination
not to nominate Carl E. Jones, Jr. or Jackson W. Moore as a Director of the
Corporation, prior to the Second Succession Date, shall each require the
affirmative vote of at least 66-2/3% of the full Board of Directors.

         (C)      The provisions of this Section 11 may be modified, amended or
repealed, and any By-Law provision inconsistent with the provisions of this
Section 11 may be adopted, only by an affirmative vote of at least 66-2/3% of
the full Board of Directors. In the event of any inconsistency between any
provision of this Section 11 and any other provision of these By-Laws or the
Corporation's other constituent documents, the provisions of this Section 11 are
intended to control.

                            ARTICLE V. MISCELLANEOUS

Section 1.        Certificates of Stock:

         The shares of stock in the Corporation shall be represented by
certificates, provided that the Board of Directors may provide by resolution or
resolutions that some or all of any or all classes or series of the
Corporation's stock shall be uncertificated shares. Any such resolution shall
not apply to shares represented by a certificate theretofore issued until such
certificate is surrendered to the Corporation. Notwithstanding the adoption of
such a resolution by the Board of Directors, every holder of stock represented
by certificates, and upon request every holder of uncertificated shares, shall
be entitled to have a certificate signed by or in the name of the Corporation by
the Chairman of the Board, the Chief Executive Officer, the President or a
Vice-President, the Comptroller or an Assistant Comptroller, and the Secretary
or an Assistant Secretary, of the Corporation, representing the number of shares
of stock registered in certificate form owned by such holder. Any or all of the
signatures may be facsimiles. In case any officer, transfer agent or registrar
who has signed or whose facsimile signature has been placed upon a certificate
shall have ceased to be such officer, transfer agent or registrar before such
certificate is issued, it may be issued by the Corporation with the same effect
as if such person were such officer, transfer agent or registrar at the date of
issue.

Section 2.        Lost Certificates:

         The Board of Directors may order a new certificate or certificates of
stock to be issued in the place of any certificate or certificates of the
Corporation alleged to have been lost or destroyed, but in every such case the
owner of the lost certificate or certificates shall first cause to be given to
the Corporation or its authorized agent a bond in such sum as said Board may
direct, as indemnity against any loss that the Corporation may incur by reason
of such replacement of the lost certificate or certificates; but the Board of
Directors may, at their discretion refuse to replace any lost certificate of
stock save upon the order of some court having jurisdiction in such matter and
may cause such legend to be inscribed on the new certificate or certificates
as in the Board's discretion may be necessary to prevent loss to the
Corporation.

Section 3.        Transfer of Shares:

         The shares of stock of the Corporation shall be transferable only upon
its books by the holders thereof in person or by their duly authorized attorneys
or legal representatives, and upon such transfer the old certificates shall be
surrendered to the Corporation by the delivery thereof to the person in charge
of the stock and transfer books, and ledgers, or to the authorized agent of the
Corporation, by whom they shall be canceled, and new certificates shall
thereupon be issued. A record shall be made of each transfer and whenever a
transfer shall be made for collateral security, and not absolutely, it shall be
expressed in the entry of the transfer.

         The Corporation may decline to register on its stock books transfers of
stock standing in the name of infants, unless (a) the law of the state of which
the infant is a resident relieves the Corporation of all liability therefor in
case the infant or anyone acting for him thereafter elects to rescind such
transfer, or (b) a court having jurisdiction of the infant and the subject
matter enters a valid decree authorizing such transfer.

Section 4.        Fractional Shares:

         No fractional part of a share of stock shall ever be issued by this
Corporation.

Section 5.        Stockholders Record Date:

         In order that the Corporation may determine the stockholders entitled
to notice of or to vote at any meeting of stockholders or any adjournment
thereof, or entitled to receive payment of any dividend or other distribution or
allotment of any rights, or entitled to exercise any rights in respect of any
change, conversion or exchange of stock or for the purpose of any other lawful
action, the Board of Directors may fix, in advance, a record date, which shall
not be more than sixty nor less than ten days before the date of such meeting,
nor more than sixty days prior to any other action. A determination of
stockholders of record entitled to notice of or to vote at a meeting of
stockholders shall apply to adjournment of the meeting; provided, however, that
the Board of Directors may fix a new record date for the adjourned meeting.

Section 6.        Dividends:

         Subject to the provisions of the Certificate of Incorporation, the
Board of Directors may, out of funds legally available therefore at any regular
or special meeting, declare dividends upon the capital stock of the Corporation
as and when they deem expedient. Before declaring any dividend there may be set
apart out of any fund of the Corporation available for dividends, such sum or
sums as the Directors from time to time in their discretion deem proper for
working capital or as a reserve fund to meet contingencies or for equalizing
dividends or for such other purposes as the Directors shall deem conducive to
the interests of the Corporation.

         The Corporation may decline to pay cash dividends to infant
stockholders except where full and valid release may be granted by the infant or
under a decree of court of competent jurisdiction.

Section 7.        Seal:

         The corporate seal shall consist of two concentric circles between
which shall be "REGIONS FINANCIAL CORPORATION DELAWARE" with a representation of
the Corporate Logogram in the center.

Section 8.        Fiscal Year:

         The fiscal year of the Corporation shall be determined by resolution of
the Board of Directors.

Section 9.        Checks:

         All checks, drafts or other orders for the payment of money, notes or
other evidences of indebtedness issued in the name of the Corporation shall be
signed by such officer or officers, agent or agents of the Corporation, and in
such manner as shall be determined from time to time by resolution of the Board
of Directors.

Section 10.       Notice and Waiver of Notice:

         Whenever any notice is required by these By-Laws to be given, personal
notice is not meant unless expressly so stated, and any notice so required shall
be deemed to be sufficient if given by depositing the same in the United States
mail, postage prepaid, or by telegram, teletype, facsimile transmission or other
form of wire, wireless, or other electronic communication or by private carrier
addressed to the person entitled thereto at his address as it appears on the
records of the Corporation, and such notice shall be deemed to have been given
on the date of such mailing. Stockholders not entitled to vote shall not be
entitled to receive notice of any meetings except as otherwise provided by
statute.

         Whenever any notice whatever is required to be given under the
provisions of any law, or under the provisions of the Certificate of
Incorporation of the Corporation or these By-Laws, a waiver thereof in writing,
signed by the person or persons entitled to said notice, whether before or after
the time stated therein, shall be deemed equivalent thereto.

Section 11.       Indemnification of Officers, Directors, Employees, Agents and
Fiduciaries; Insurance:

         (A)      The Corporation shall indemnify, in accordance with and to the
fullest extent permitted by law, any person made or threatened to be made a
party to any threatened, pending or completed action, suit or proceeding,
whether civil, criminal, administrative or investigative, by reason of the fact
that such person is or was a Director, Advisory Director, officer, employee,
agent or fiduciary of the Corporation or any constituent corporation absorbed in
a consolidation or merger, or serves as such with another corporation, or with a
partnership, joint venture, trust or other enterprise at the request of the
Corporation or any such constituent corporation.

         (B)      The indemnification provided by this Section 11 shall not be
deemed exclusive of and shall be in addition to any other rights (whether
created prior or subsequent to the adoption of these By-Laws) to which those
indemnified may be entitled under any statute, rule of law, articles of
incorporation, by-law, agreement, vote of stockholders or disinterested
Directors or otherwise, both as to action in their official capacity and as to
action in another capacity and as to action in another capacity while holding
such office, and shall continue as to a person who has ceased to be a Director,
employee or agent of the Corporation, and shall inure to the benefit of the
heirs, executors and administrators of such a person.

         (C)      By action of the Board of Directors notwithstanding any
interest of the Directors in such action, the Corporation may purchase and
maintain insurance in such amounts as the Board of Directors deems appropriate
on behalf of any person who is or was a Director, officer, employee, agent or
fiduciary of the Corporation, or is or was serving at the request of the
Corporation as a Director, officer, employee, agent or fiduciary of another
corporation, partnership, joint venture, trust or other enterprise against any
liability asserted against him and incurred by him in any such capacity, or
arising out of his status as such, whether or not the Corporation shall have the
power to indemnify him against such liability under the provisions of this
Section 11.

                             ARTICLE VI. AMENDMENTS

         These By-Laws may be amended, altered or repealed and By-Laws may be
adopted (A) by the affirmative vote of a majority of the Board of Directors or
(B) by the stockholders at any annual meeting of the stockholders, or at any
special meeting thereof if notice of the proposed alteration or repeal or By-Law
or By-Laws to be adopted is contained in the notice of such special meeting, by
the affirmative vote of seventy-five percent (75%) of the stock issued and
outstanding and entitled to vote thereat, subject to the provisions of Section
10 of Article III and Section 11 of Article IV.


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<FONT SIZE=2><P ALIGN="RIGHT">EXHIBIT 31.1</P>
<B><U><P ALIGN="CENTER">CERTIFICATION</B></U> </P>
<P>I, Carl E. Jones, Jr., certify that: </P><DIR>

<P>1.  I have reviewed this quarterly report on Form 10-Q of Regions Financial Corporation; </P>
<P>2.  Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; </P>
<P>3.  Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; </P>
<P>4.  The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have: </P><DIR>
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<P>(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; </P>
<P>(b) [Omitted in accordance with Commission Release No. 33-8238]<STRIKE> </P>
</STRIKE><P>(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and </P>
<P>(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and </P></DIR>
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<P>5.  The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): </P><DIR>
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<P>(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and </P>
<P>(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.</P></DIR>
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<P>Date: August 6, 2004</P>
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<U><P>/s/ Carl E. Jones, Jr.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<BR>
</U>Carl E. Jones, Jr.<BR>
Chairman of the Board, President, and <BR>
Chief Executive Officer<BR>
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<FONT SIZE=2><P ALIGN="RIGHT">EXHIBIT 31.2</P>
<B><U><P ALIGN="CENTER">CERTIFICATION</B></U> </P>
<P>I, D. Bryan Jordan, certify that: </P><DIR>

<P>1.  I have reviewed this quarterly report on Form 10-Q of Regions Financial Corporation; </P>
<P>2.  Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; </P>
<P>3.  Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; </P>
<P>4.  The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have: </P><DIR>
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<P>(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; </P>
<P>(b) [Omitted in accordance with Commission Release No. 33-8238]<STRIKE> </P>
</STRIKE><P>(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and </P>
<P>(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and </P></DIR>
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<P>5.  The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): </P><DIR>
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<P>(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and </P>
<P>(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.</P></DIR>
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<P>Date: August 6, 2004</P>
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<U><P>/s/ D. Bryan Jordan&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<BR>
</U>D. Bryan Jordan<BR>
Executive Vice President and  <BR>
Chief Financial Officer<BR>
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<TYPE>EX-32
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<FONT SIZE=3><P ALIGN="RIGHT">Exhibit 32</P>
<P ALIGN="CENTER"></P>
<P ALIGN="CENTER">STATEMENT OF THE CHIEF EXECUTIVE OFFICER AND THE <BR>
CHIEF FINANCIAL OFFICER OF REGIONS FINANCIAL CORPORATION<BR>
PURSUANT TO 18 U.S.C. SECTION 1350</P>
<P ALIGN="CENTER"></P>
<P>Each of the undersigned hereby certifies in his capacity as an officer of Regions Financial Corporation (the "Company") that this Quarterly Report on Form 10-Q for the period ended June 30, 2004, as filed with the Securities and Exchange Commission on the date hereof (this "Report"), fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, and the information contained in this Report fairly presents, in all material respects, the financial condition and results of operations of the Company.</P>

<P>&nbsp;</P>
<P>DATE:  August 6, 2004&#9;</P><DIR>
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<U><P>/s/ Carl E. Jones, Jr.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<BR>
</U>Carl E. Jones, Jr.<BR>
Chairman of the Board, President<BR>
and Chief Executive Officer<BR>
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<P>DATE:  August 6, 2004&#9;</P><DIR>
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<U><P>/s/ D. Bryan Jordan&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<BR>
</U>D. Bryan Jordan<BR>
Executive Vice President and<BR>
Chief Financial Officer<BR>
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