Regions Financial Corporation · NYSE:RF
Regions Financial — Investor Presentation (September 2010)
12 slides from Regions Financial's investor presentation, Sep 13, 2010
Slide 1: NPA Migration
NPA Migration ($500) $0 $500 $1,000 $1,500 $2,000 2Q09 3Q09 4Q09 1Q10 2Q10 0% 5% 10% 15% 20% 25% 30% 35% 40% Gross Additions Dispositions Net NPA Change Charge-Offs Discount on Disposition Activity 1,758 1,667 1,404 1,306 1,122 (297) Dispositions includes OREO Sales, Problem Loan and HFS Sales and T
Slide 2: Provision Stabilized and Matched Charge Offs
Provision Stabilized and Matched Charge Offs $0 $200 $400 $600 $800 $1,000 $1,200 2Q09 3Q09 4Q09 1Q10 2Q10 Net Charge Offs Provision over Net Charge Offs $912 $1,025 $1,179 $770 $651 Loan Loss Provision
Slide 3: Earnings: Improving Trends in PPNR
Earnings: Improving Trends in PPNR *Non-GAAP, refer to Appendix for non-GAAP reconciliation Q2 Q3 Q4 Q1 Q2 ($ in millions) 2009 2009 2009 2010 2010 Net Interest Income $ 831 $ 845 $ 850 $ 831 $ 856 Core Non-Interest Income* Core Revenue* 1,592 1,609 1,593 1,565 1,612 Net Interest Margin 2.62% 2.73%
Slide 4: Net Interest Income and Net Interest Margin Trending Positively
Net Interest Income and Net Interest Margin Trending Positively › Ongoing improvement in deposit mix and cost with substantial repricing opportunity in maturing, higher-cost CDs › Consistent progress in pricing of new and renewed loans › Net interest margin expected to continue to rise $840 $853 $85
Slide 5: Deposit Cost Improvement More Than Peers
Deposit Cost Improvement More Than Peers 1Q 2010 vs 2Q 2010 0.35% 0.50% 0.40% 0.76% 0.79% 1.17% 0.78% 0.90% 1.04% 0.54% 0.39% 0.29% 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% 1.40% Wells BofA US PNC Comerica M&T SunTrust Regions BBT M&I Key 1Q 2Q -0.02% -0.07% -0.08% -0.08% -0.03% -0.05% -0.21% -0.05
Slide 6: Strong Year Over Year Checking Account Growth
Strong Year Over Year Checking Account Growth Exceeded Road to 1 Million Goal in 2009 On Target to Do It Again 488,200 Opened YTD
Slide 7: Strengthened Our Core Franchise Through Productivity and Efficiency Initiatives
Strengthened Our Core Franchise Through Productivity and Efficiency Initiatives * Excludes regulatory settlement charge, FDIC expense, other real estate expense, legal and professional fees, credit investigations, credit support expense, unfunded commitments, MSR impairment, loss on early extinguish
Slide 8: Solid Capital Ratios
Solid Capital Ratios (1) “TRUPS” refers to Trust Preferred Securities 2Q10 Proforma 2Q10 - excluding TRUPS (1) Total Risk-Based Capital 15.9% 15.0% Tier 1 Capital 12.0% 11.2% Tier 1 Common 7.7% 7.7%
Slide 9: Regions
WN REGIONS
Slide 10: Appendix – Non-GAAP Financial Measures
Appendix – Non-GAAP Financial Measures Note: The following table illustrates the method of calculating the non-GAAP financial measures used in this slide presentation: Q2 Q3 Q4 Q1 Q2 ($ in millions) 2009 2009 2009 2010 2010 Net Interest Income (GAAP) $ 831 $ 845 $ 850 $ 831 $ 856 Non-Interest Income
Slide 11: Total Loan Portfolio: Investor Real Estate $18.9B, 22%
Investor Real Estate $18.9B 22% Total Loan Portfolio $85.9B Investor Real Estate $18.9B Commercial and Industrial $21.1B / 25% Owner Occupied Real Estate $12.5B / 15% Residential First Mortgage $15.6B / 18% Indirect $1.9B / 2% Direct and Other $1.1B 1% Home Equity $14.8B 17% Land $2.3B / 12% Single
Slide 12: Investor Real Estate Portfolio is Diversified
Investor Real Estate Portfolio is Diversified 22% of Total Portfolio Other* $3.1B / 17% FL $4.4B / 23% TX $2.1B / 11% GA $1.9B / 10% TN $1.7B / 9% AL $1.6B / 9% NC $1.1B / 6% LA - $0.9B / 4% MO - $0.6B / 3% SC - $0.6B / 3% AR - $0.5B / 3% Loan Size Geography * Other includes states with exposure of
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