Regions' Conforming Wholesale Mortgage Operations to Be Assumed by M&T Mortgage Corporation

Business Wire, March 4, 2005

BIRMINGHAM, Ala. -- Regions Mortgage, part of Regions Financial Corporation (NYSE: RF), has reached a definitive agreement for its conforming wholesale operations to be assumed by M&T Mortgage Corporation, a subsidiary of M&T Bank Corporation of Buffalo, N.Y. (NYSE: MTB).

Regions Mortgage Chairman and CEO Robert A. Goethe said the primary reason for the transaction is that remaining in the wholesale arena would not further the company's core strategies of growing its banking franchise and cross-selling Regions products and services to mortgage customers.

"Upon completion of the transaction, Regions Mortgage can now focus more fully on leveraging cross-selling opportunities with the company's Regions Bank and Union Planters bank customers across our 15-state footprint in the South, Midwest and Texas," Goethe said.

"In addition, this transaction is one that means positive things for our associates in this division, who will have the opportunity to continue their employment with M&T," he said. "M&T, in turn, is getting a strong mortgage wholesale production team."

The transaction's primary impact will be on sales branches located in Montgomery, Ala., Phoenix, Ariz.; Irvine, Ca.; Denver, Co.; Tampa, Fla.; Alpharetta, Ga.; Elgin, Ill.; Las Vegas, N.V.; Greensboro, N.C.; Cincinnati, Ohio; Houston and San Antonio, Texas; and Bellevue, Wash. The conforming wholesale division is headquartered in Alpharetta.

"M&T is excited about the opportunity to expand the distribution network of our existing wholesale mortgage business by adding these 13 offices," said James J. Beardi, president of M&T Mortgage Corporation. "We look forward to adding this seasoned group of mortgage professionals and moving into these markets with our broader menu of mortgage products."

The transaction does not include or impact Regions Mortgage's primary origination and servicing business headquartered in Memphis, Tenn.; EquiFirst, Regions' non-conforming wholesale arm based in Charlotte, N.C.; the conforming correspondent operations headquartered in Alpharetta; or the company's non-conforming correspondent and wholesale operations in Hattiesburg, Miss. Terms of the agreement will not be disclosed.

About M&T Mortgage Corporation

M&T Mortgage Corporation, headquartered in Buffalo, N.Y., has a long history in both the retail and wholesale mortgage businesses and is a well-recognized lender in the mortgage broker community. Additional information about M&T Mortgage can be found at www.mandtbank.com

About Regions Mortgage

Regions Mortgage, headquartered in Memphis, Tenn., is one of the nation's top residential mortgage loan originators and servicers. The balanced, focused mortgage business offers a full array of residential mortgage products and services through its retail and correspondent lending channels and a warehouse lending banker/broker, Regions Funding. Regions' mortgage operations also include non-conforming wholesaler EquiFirst, a premiere national lender based in Charlotte, N.C., with a Western U.S. operations center in Phoenix, Ariz. EquiFirst originates its production through a network of independent mortgage brokers and sells its loans on the secondary market. Additional information about Regions Mortgage, Regions Funding and EquiFirst can be found at www.regionsmortgage.com, www.regionsfunding.com and www.equifirst.com