June 19, 2009 (FinancialWire) — Regions Financial Corp. (NYSE: RF) said it will have raised $2.5 billion when an exchange offer of common stock for trust preferred securities recently launched by the company settles on June 22.

The company launched a public equity offering of common stock in late May that generated net proceeds of $1.769 billion. A public offering of mandatory convertible preferred stock generated net proceeds of $278 million.

Regions’ offer to exchange common shares for outstanding 6.625% trust preferred securities issued by Regions Financing Trust II, which expired in June 17, and is scheduled to settle on June 22, will generate additional Tier 1 common equity of $172 million.

In addition to the public offerings, the company sold shares it owned in Visa Inc. and other securities, which generated capital of $117 million.

As a result of these capital raising efforts, Regions said it also expects that roughly $200 million of deferred tax assets will be included in the company’s Tier 1 common equity buffer required by SCAP.

Regions said that the $2.5 billion raised “fully meets” the Tier 1 common equity capital requirements prescribed by the Federal Reserve’s Supervisory Capital Assessment Program.

Birmingham, Alabama-based Regions Financial is a provider of consumer and commercial banking, trust, securities brokerage, mortgage and insurance products and services.

Regions serves customers in 16 states across the South, Midwest and Texas, and through its subsidiary, Regions Bank, operates 1,900 banking offices and around 2,300 AT Its investment and securities brokerage trust and asset management division, Morgan Keegan & Co. Inc., provides services from over 300 offices.

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