Regions Bank 2008 Annual Report Download - page 32

The market price of shares of our common stock will fluctuate.
The market price of our common stock could be subject to significant fluctuations due to a change in
sentiment in the market regarding our operations or business prospects. Such risks may be affected by:
• Operating results that vary from the expectations of management, securities analysts and investors;
• Developments in our businesses or in the financial sector generally;
• Regulatory changes affecting our industry generally or our businesses and operations;
• The operating and securities price performance of companies that investors consider to be comparable
to us;
• Announcements of strategic developments, acquisitions and other material events by us or our
competitors;
• Changes in the credit, mortgage and real estate markets, including the markets for mortgage-related
securities; and
• Changes in global financial markets and global economies and general market conditions, such as
interest or foreign exchange rates, stock, commodity, credit or asset valuations or volatility.
Stock markets in general and our common stock in particular have, over the past year, and continue to be
experiencing significant price and volume volatility. As a result, the market price of our common stock may
continue to be subject to similar market fluctuations that may be unrelated to our operating performance or
prospects. Increased volatility could result in a decline in the market price of our common stock.
Industry competition may have an adverse effect on our success.
Our profitability depends on our ability to compete successfully. We operate in a highly competitive
environment. Certain of our competitors are larger and have more resources than we do. In our market areas, we
face competition from other commercial banks, savings and loan associations, credit unions, internet banks,
finance companies, mutual funds, insurance companies, brokerage and investment banking firms, and other
financial intermediaries that offer similar services. Some of our non-bank competitors are not subject to the same
extensive regulations that govern Regions or Regions Bank and may have greater flexibility in competing for
business. Regions expects competition to intensify among financial services companies due to the recent
consolidation of certain competing financial institutions and the conversion of certain investment banks to bank
holding companies. Should competition in the financial services industry intensify, Regions’ ability to market its
products and services may be adversely affected.
Changes in the policies of monetary authorities and other government action could adversely affect our
profitability.
The results of operations of Regions are affected by credit policies of monetary authorities, particularly the
Federal Reserve. The instruments of monetary policy employed by the Federal Reserve include open-market
operations in U.S. government securities, changes in the discount rate or the federal funds rate on bank
borrowings, and changes in reserve requirements against bank deposits. In view of changing conditions in the
national economy and in the money markets, we cannot predict possible future changes in interest rates, deposit
levels, and loan demand on our businesses and earnings. Furthermore, ongoing military operations in the Middle
East or elsewhere around the world, including those in response to terrorist attacks, may result in currency
fluctuations, exchange controls, market disruption and other adverse effects.
Anti-takeover laws and certain agreements and charter provisions may adversely affect share value.
Certain provisions of state and federal law and our certificate of incorporation may make it more difficult
for someone to acquire control of us without our Board of Directors’ approval. Under federal law, subject to
certain exemptions, a person, entity or group must notify the federal banking agencies before acquiring control of
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