This excerpt taken from the RF 8-K filed Jan 20, 2009.
Deposit growth gaining momentum
Regions remains focused on profitably growing deposits, taking advantage of opportunities to deepen existing customer relationships as well as develop new long-term relationships. Total customer deposits grew 4 percent on average in the fourth quarter, reflecting strong certificate of deposit (CD) growth in response to competitive offers and customer desire to lock in rates in the falling rate environment. The Integrity Bank acquisition on August 29 had a full quarter impact in the fourth quarter as well.
Low-cost deposits, which are total customer deposits less customer CDs, declined 0.5 percent on average linked-quarter; however, balances were up 4.5 percent on an ending basis. Money markets and interest-free categories reflect the benefit of competitive rate offers and the introduction of new Consumer and Business checking products. On another positive note, net new consumer checking household growth picked up dramatically late in the year to an annualized rate of 3.2 percent, which is double the growth rate of 2007.
Average loans increased 1 percent in the fourth quarter. Within total loans, commercial and industrial lending increased modestly versus the third quarter. As reported in the previous quarter, Regions is targeting new commercial business relationships that extend beyond lending to include deposits and fee-based services such as treasury management products. Commercial real estate construction balances declined as expected, reflecting the general environment for residential real estate. Within the consumer categories, home equity balances increased slightly but were more than offset by a decline in other consumer balances, driven largely by student loan sales.