SEC Filing Summary: Form 13F-HR
Business Context and Reporting Period
Reporting Manager: Regions Bank (Institutional Investment Manager)
Filing Type: Form 13F Holdings Report
Reporting Period: Quarter ended March 31, 2009
Signatory: James E. Meigs, Executive Vice President
Submission Date: May 12, 2009
This filing discloses the equity securities held by Regions Bank at the end of the first quarter of 2009. The report includes holdings managed directly by Regions Bank and one other included manager (Regions Bank, File No. 085-00829).
Key Financial Metrics
Total Portfolio Value: $4,936,168 (as reported in the summary table)
Total Number of Holdings: 1,831 entries
Top Holdings by Value (Selected):
- Exxon Mobil Corp: $159,146,000 (Defined) + $69,690,000 (Discretionary/Other)
- Procter & Gamble Co: $64,981,000 (Defined) + $21,868,000 (Discretionary/Other)
- Johnson & Johnson: $76,162,000 (Defined) + $24,380,000 (Discretionary/Other)
- Microsoft Corp: $48,090,000 (Defined) + $11,821,000 (Discretionary/Other)
- Regions Financial Corp: $33,118,000 (Defined) + $24,314,000 (Discretionary/Other)
- Verizon Communications: $59,448,000 (Defined) + $14,727,000 (Discretionary/Other)
- Wells Fargo & Co: $29,701,000 (Defined) + $5,904,000 (Discretionary/Other)
- Walmart Stores Inc: $68,001,000 (Defined) + $12,669,000 (Discretionary/Other)
- Walgreen Co: $29,342,000 (Defined) + $7,057,000 (Discretionary/Other)
- Travelers Cos Inc: $39,397,000 (Defined) + $5,364,000 (Discretionary/Other)
Note: The summary table value of $4.9 million appears inconsistent with the aggregate value of individual holdings listed in the information table, which totals significantly higher (in the billions). The individual holding values are presented in thousands ($X$1000).
Material Changes and Portfolio Composition
Ownership Structure: The portfolio is split between "Defined" authority (typically managed accounts) and "Discretionary/Other" authority. Significant holdings exist in both categories for major issuers.
Notable Holdings:
- Self-Holding: Regions Bank holds a substantial position in its parent company, Regions Financial Corp (approx. 13.5 million shares total).
- Financial Sector: Heavy exposure to major banks including Bank of America, J.P. Morgan Chase, Wells Fargo, and Citigroup.
- Energy Sector: Significant positions in Exxon Mobil, Chevron, ConocoPhillips, and Devon Energy.
- Technology: Major holdings in Microsoft, Oracle, Cisco Systems, Intel, and Apple.
- Consumer Staples: Large positions in Procter & Gamble, Coca-Cola, PepsiCo, and Walmart.
Unusual Items: The filing lists holdings in Circuit City Stores with a value of $0 but 60,000 shares under Defined authority, indicating a position held at a nominal or zero value, likely reflecting the company's financial distress during the 2009 period.
Guidance, Outlook, and Risks
Guidance/Outlook: Form 13F filings are historical disclosures of holdings and do not contain forward-looking guidance, management commentary, or earnings outlooks.
Risks and Contingencies:
- Market Risk: The portfolio is heavily weighted toward large-cap U.S. equities, exposing the manager to broad market volatility.
- Concentration Risk: Significant concentration in the financial and energy sectors, which were particularly volatile during the 2008-2009 financial crisis.
- Liquidity Risk: While most holdings are liquid large-cap stocks, the filing includes positions in distressed companies (e.g., Circuit City) which may have limited liquidity.
Key Facts for Investor Verification
- Portfolio Valuation Discrepancy: Verify the total portfolio value. The summary page states $4,936,168, but the sum of individual holdings (e.g., Exxon alone is ~$228M) suggests the total portfolio value is in the billions. The summary figure may represent a specific subset or contain a reporting error.
- Self-Ownership: Confirm the extent of Regions Bank's investment in its own parent company, Regions Financial Corp, which constitutes a significant portion of the reported equity.
- Distressed Assets: Investigate the status of the Circuit City Stores holding (60,000 shares valued at $0) to understand the impact of potential write-downs or bankruptcy proceedings.
- Authority Split: Note the distinction between "Defined" and "Discretionary/Other" voting authority, which indicates the manager controls a mix of managed accounts and discretionary funds.