Regions Bank 2010 Annual Report Download - page 53

As long as the Series A Preferred Stock is outstanding, dividend payments and repurchases or redemptions
relating to certain equity securities, including Regions common stock, are prohibited until all accrued and unpaid
dividends are paid on such preferred stock, subject to certain limited exceptions. In addition, prior to
November 14, 2011, unless Regions has redeemed all of the Series A Preferred Stock or the U.S. Treasury has
transferred all of the Series A Preferred Stock to third parties, the consent of the U.S. Treasury will be required
for Regions to, among other things, increase its common stock dividend above $0.10 except in limited
circumstances. Regions has reduced its quarterly common stock dividend to $0.01 per share and does not expect
to increase its quarterly dividend above such level for the foreseeable future. Also, Regions is a bank holding
company, and its ability to declare and pay dividends is dependent on certain federal regulatory considerations,
including the guidelines of the Federal Reserve regarding capital adequacy and dividends.
In addition, the terms of Regions’ outstanding junior subordinated debt securities prohibit it from declaring
or paying any dividends or distributions on Regions’ capital stock, including its common stock, or purchasing,
acquiring, or making a liquidation payment on such stock, if Regions has given notice of its election to defer
interest payments but the related deferral period has not yet commenced or a deferral period is continuing.
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