Regions Financial Corporation · NYSE:RF
Regions Financial — Barclays Global Financial Services Conference 2013
18 slides from Regions Financial's conference presentation, Sep 10, 2013
Slide 1: Barclays Global Financial Services Conference
Exhibit 99.1 Barclays Global Financial Services Conference September 10, 2013 David Turner Chief Financial Officer 1
Slide 2: 2013 Imperatives
2013 Imperatives We remain focused on three key imperatives in 2013: 2013 Imperatives Grow Quality Continue to Manage Grow loans Households Expenses Execute • Leveraged specialized • Committed to customer • Expense control is part of lending groups service our culture, not just a campaign • Expanded
Slide 3: Loans grew $1.1B linked quarter
Loans grew $1.1B linked quarter Total Loan Balances (1) • Total loan balances grew $1.1 billion linked quarter • Commercial and industrial loans increased 5% linked quarter • Investor real estate portfolio experienced more modest pace of decline ($ in millions) • Indirect auto production up 21% Loan
Slide 4: Broad based loan growth
Broad based loan growth Linked quarter loan growth by county • Almost 70% of our areas experienced loan growth during 2Q13 • All loan categories experienced an increase in loan production • Business lending experienced loan growth in several areas: • Regions Business Capital • Real Estate Corporate
Slide 5: Lower deposit costs driven by deposit mix
Lower deposit costs driven by deposit mix Deposit Balances (1) and Deposit Costs ($ in millions) (1) Average balances 5
Slide 6: Continued increases in net interest margin
Continued increases in net interest margin 2Q13 vs. 1Q13 Net Interest Margin Change Net Interest Margin vs. Peer Median 35 bps Variance 18 bps Variance Note: Peer banks include BBT, CMA, FHN, FITB, HBAN, KEY, MTB, PNC, STI, USB, WFC, ZION Source: SNL Financial 6
Slide 7: Interest rate sensitivity summary
Interest rate sensitivity summary Net interest income remains asset sensitive to increases in both short-term and longer-term rates 12- Month Net Interest Income Impact From 12- Month Net Interest Income Impact From Incremental Longer-term Rate Increases (1) Incremental Short-term Rate Increases (1)
Slide 8: Non-interest revenue relatively flat
Non-interest revenue relatively flat Non-Interest Revenue • Mortgage income was slightly down • Mortgage loan production was $1.9 billion dollars, an increase of 6% over the prior quarter • Service charges income was impacted by lower NSF fees • Experienced an increase in net checking accounts and n
Slide 9: Expense control – a culture, not a campaign
Expense control – a culture, not a campaign Non-Interest Expense (1) / Average Assets Non- Interest Expense (1) 2Q13 vs. 1Q13 % Change (1) 1Q13Adjusted to exclude non-core items, ratios are annualized – See appendixfor reconciliation Peer banks include: BBT, CMA, FHN, FITB, HBAN, KEY, MTB, PNC, STI,
Slide 10: Continued asset quality improvement
Continued asset quality improvement Credit leverage remains Net Charge-Offs and Ratio Allowance for Loan Losses / Total Loans 46% decrease Y-O-Y $265 $262 3.01% 1.39% 1.38% $180 $180 2.18% $144 0.96% 0.99% 2.14% 0.77% 1.76% 2Q12 3Q12 4Q12 1Q13 2Q13 2Q12 3Q12 4Q12 1Q13 2Q13 ($ in millions) Regions Pe
Slide 11: Strong capital position
Strong capital position Tier 1 Common Ratio (1) (2) Basel III Tier 1 Common Ratio (1) (3) Bank #1 10.8% 11.2% 11.1% 10.3% 10.8% Bank #3 9.5% 10.5% Bank #4 9.3% 10.0% Bank #5 9.1% 10.1% 10.2% 10.0% 9.9% Bank #6 8.9% 9.8% Bank #7 8.6% Bank #8 8.3% Bank #9 8.2% 2Q12 3Q12 4Q12 1Q13 2Q13 Regions Peer Med
Slide 12: 2013 Imperatives
2013 Imperatives We remain focused on three key imperatives in 2013: 2013 Imperatives Grow Quality Continue to Manage Grow loans Households Expenses Execute • Leveraged specialized • Committed to customer • Expense control is part of lending groups service our culture, not just a campaign • Expanded
Slide 13: Appendix
Appendix Ms REGIONS »
Slide 14: Forward-looking statements
Forward-looking statements This presentation may include forward-looking statements which reflect Regions’ current views with respect to future events and financial performance. The Private Securities Litigation Reform Act of 1995 (“the Act”) provides a “safe harbor” for forward-looking statements w
Slide 15: Non-GAAP reconciliation: Tier 1 common
Non-GAAP reconciliation: Tier 1 common The following table provides calculations of Tier 1 capital (regulatory) and "Tier 1 common equity" (non-GAAP). Traditionally, the Federal Reserve and other banking regulatory bodies have assessed a bank's capital adequacy based on Tier 1 capital, the calculati
Slide 16: Non-GAAP reconciliation: non-interest income / expense, fee income and efficiency ratios
Non-GAAP reconciliation: non-interest income / expense, fee income ratios and efficiency ratios The table below presents computations of the efficiency ratio (non-GAAP), which is a measure of productivity, generally calculated as non-interest expense divided by total revenue. The table also shows th
Slide 17: Non-GAAP reconciliation: Basel III
Non-GAAP reconciliation: Basel III The following table provides calculations of Tier 1 common, based on Regions’ current understanding of the Final Basel III requirements, released in July 2013. Regions currently calculates its risk-based capital ratios under guidelines adopted by the Federal Reserv
Slide 18: An REGIONS
An REGIONS
Regions Financial — Barclays Global Financial Services Conference 2013 on 6ix