Regions Financial Corporation · NYSE:RF
Regions Financial — Investor Presentation (June 2021)
74 slides from Regions Financial's investor presentation, June 2021
Slide 1: Investor Information May - June 2021
Investor Information May - June 2021
Slide 2: Table of contents
Table of contents Topic Page # Profile and Strategy 3-7 Income Statement 8-20 Business Segment Highlights 21-25 Balance Sheet 26-28 Capital, Debt & Liquidity 29-34 Technology & Continuous Improvement 35-41 Credit 42-55 Near-Term Expectations 56 Environmental, Social & Corporate Governance 57-58 LIBO
Slide 3: Our banking franchise
Our banking franchise Ranked 18th in the U.S. in total deposits(1) Line of business coverage First Sterling Ascentium Business Capital Capital Markets Commercial Banking Corporate Banking Equipment Finance Government/Institutional Institutional Services Birmingham, Alabama Private Wealth Real Estate
Slide 4: Top market share plays a valuable role in the competitive landscape
Top market share plays a valuable role in the competitive landscape Markets with top 5 market share(1) • Ranked 18th in the U.S. in total deposits(1) • 86% of deposits in 7 states: Alabama, Tennessee, Florida, Louisiana, Mississippi, Georgia, Arkansas • Top 5 or better market share in ~70% of MSAs a
Slide 5: Presence in strong growth markets
Presence in strong growth markets COVID-19 Impact on USA Moving Study(1) notes 60% of top(3) MSAs are projected to grow faster than more people moved to the South and to metro areas with populations < 1 million during 2020 the U.S. national average Population growth vs. peers(2) (2021-2026) Top Fast
Slide 6: Our footprint has significant economic advantages
Our footprint has significant economic advantages Jobs Population Footprint Retirees 56% of all new jobs 52% of all U.S. 35% of the U.S. GDP 6 of the top 10 states created in the U.S. population growth in generated in our where retirees are since 2009 were in last 10 years occurred footprint moving
Slide 7: Regions receives top honors
Regions receives top honors Regions Bank Ranked Seven Years Strong: Regions Highest in Customer Regions Bank named Best Regions Bank Awarded Bank Again Named Gallup Satisfaction in J.D. Power Places to work for LGBTQ Bronze Military Friendly Exceptional Workplace Award 2020 U.S. Online Banking Equal
Slide 8: First quarter 2021 overview
First quarter 2021 overview Net Income Available to $614M Common Shareholders Diluted Earnings Per $0.63 Share Adjusted Total $1,604M Revenue(1) • Adjusted total revenue(1) and adjusted pre-tax pre-provision income(1) increased 14% and Adjusted Non- $918M Interest Expense(1) 17%, respectively YoY •
Slide 9: Net interest income and net interest margin - liquidity impacts
Net interest income and net interest margin - liquidity impacts NII(1) and NIM ($ in millions) $1,017 $978 $940 3.44% 3.40% 3.40% 3.13% 3.02% 1Q20 4Q20 1Q21 NII(1) NIM NIM excl. PPP/Cash(2) • In 1Q, deposit and cash balances remained elevated given stimulus / liquidity in the system • PPP and cash a
Slide 10: Net interest income and net interest margin - core drivers
Net interest income and net interest margin - core drivers Core(1) NIM Attribution Drivers of Core NIM and NII 3.40% 3.40% • Rate environment impacts offset through active balance sheet management ◦ Higher avg. hedging notional; total benefit Largely able to offset ongoing impacts of reinvestment of
Slide 11: Balance sheet profile
Balance sheet profile (as of March 31, 2021) Portfolio compositions • Naturally asset sensitive balance sheet, supported by a Borrowin… large, stable deposit base and low reliance on wholesale Assets(1) Liabilities 2% Other Other 2% borrowings 12% • NII sensitivity to short-term rates has been large
Slide 12: Cash management update
Cash management update • Recent liquidity inflows represent an NII ~$30B Deposit Growth (March 2020 to March 2021) opportunity, with cash deployment dependent on: • Deposit growth broadly distributed across products, ◦ stability of deposit inflows businesses, and industries ◦ return levels on potent
Slide 13: Earnings stability and hedging
Earnings stability and hedging NIM Performance vs Peers Cash-flow Hedge Contribution to NII - 4Q20(3)(4) 10.7%10.5% 3.51% 3.46% 3.47% 3.44% 3.44% 9.6% 3.5 3.41% 3.40% 9.1% 8.9% 3.36% WAL remaining on 3.25% CF Hedges(5) 3.34% 3.34% 3.35% 3.13% 6.1% 5.7% 3.24% 3.27% 5.1% 3.02% 3.3 3.16% 3.8% 3 3.11% 2
Slide 14: Hedging strategy update
Hedging strategy update Hedge Notional Maturity Profile Long-term NII Sensitivity Profile to Rates Hedge Notional 1mo. LIBOR Cumulative NII growth (2021-2024) - scenarios assume no Current No Hedges(5) loan growth in any 1Q notional reductions scenario and no Hedges 2Q notional reductions Forwards +
Slide 15: Interest rate exposure of future business and long-term rates
Interest rate exposure of future business and long-term rates • The majority of Regions’ residual NII exposure to interest rates Fixed / float loan mix(1) 100% comes from future business activities and cash-flow reinvestment; 90% full-year 2021 estimate: 80% 70% • ~$11B fixed-rate loan production (e
Slide 16: Non-interest income
Non-interest income Change vs QoQ highlights & outlook ($ in millions) 1Q21 4Q20 1Q20 • Additional government stimulus, changes in customer behavior and continued Service charges on deposit accounts $157 (1.9)% (11.8)% enhancements to overdraft practices & Card and ATM fees 115 (1.7)% 9.5% transacti
Slide 17: Diversified non-interest income
Diversified non-interest income 1Q21 fee revenue by segment(1) Consumer ($ in millions) • Consumer fee income categories include service charges on deposit accounts, card and ATM fees, and mortgage income generated through origination and servicing of residential mortgages Wealth Management • Wealth
Slide 18: Leverage operating advantage to grow mortgage share and relationships
Leverage operating advantage to grow mortgage share and relationships Market Prime Delivery Mortgage Investing Strength Portfolio Efficiency Servicing For Growth Closed mortgages 752 Avg. FICO 62% lower Servicing expense in Investments in expected to have origination and line with peer people, proce
Slide 19: Non-interest expense
Non-interest expense Adjusted non-interest expense(1) QoQ highlights & outlook ($ in millions) $824 $930 $918 • Adjusted expenses(1) decreased 1% driven primarily by lower incentive compensation 57.9% 56.8% related to capital markets and mortgage 55.8% partially offset by increased payroll taxes • B
Slide 20: Strong PPI profile
Strong PPI(1) profile Adjusted PPI(1) to RWA(2) 2.71% 2.61% 2.25% 2.15% 2.14% 2.11% 2.09% 2.04% 2.03% 2.02% 2.01% 1.92% 1.81% 1.6% Peer 1 RF Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 Peer 10 Peer 11 Peer 12 Peer 13 • Regions' 1Q adjusted pre-tax pre-provision income (PPI)(1) increased
Slide 21: Business segments
Business segments 1Q21 Pre-tax pre- 1Q21 Average 1Q21 Average provision income(1) loans deposits 5% 2% 8% 33% 35% $680M $85B $123B 43% 52% 63% 59% Consumer Corporate Wealth Management (1) Pie %'s exclude the pre-tax pre-provision income (loss) from the Other Segment totaling $(13) million. 21
Slide 22: Consumer Banking Group - Prudent cost management fueling growth
Consumer Banking Group - Prudent cost management fueling growth and industry leading efficiency Creating Efficiencies… ...To Re-Invest In the Business… Branch Count (1) Branch FTE 20% Omnichannel Experience 26 % ROSIE: Regions Optimal Solutions Intelligence 2014 2020 2014 2020 Engine • Migration to
Slide 23: Corporate Banking Group
Corporate Banking Group 2020: A year to align, transform, and execute to deliver long-term shared value Our investments Our model Our associates generated return proved resilient delivered results • 13 Greenwich Excellence Record Financial Awards Acquired and integrated Performance(1) • Standout Com
Slide 24: Wealth Management
Wealth Management Focus on execution while capitalizing on our investments in industry-leading technology to optimize the client and associate experience. Customer Experience • Maintained strong momentum in growth markets and protected business through and Communication continued engagement and comm
Slide 25: Continuing our momentum
Continuing our momentum Corporate Banking Group: • Focused on executing core business disciplines centered on delivering Regions 360® through providing proactive, tailored solutions to meet clients’ needs • Areas of focus ◦ Ensuring full channel access to Ascentium and introducing Regions' capabilit
Slide 26: Average loans & deposits
Average loans & deposits Adjusted average loans and leases(1) Average deposits by segment ($ in billions) ($ in billions) $119.8 $122.9 $79.9 $80.1 $79.1 0.4 0.4 8.9 9.3 26.9 27.4 27.2 $95.7 1.3 40.3 8.1 40.6 26.6 53.0 52.7 51.9 72.9 69.9 59.7 1Q20 4Q20 1Q21 1Q20 4Q20 1Q21 Consumer Bank Corporate Ba
Slide 27: 1Q21 average loan composition
1Q21 average loan composition Average consumer loans Average business loans ($ in billions) ($ in billions) $16.6 $5.4 $0.3 $29.0B $42.8 $55.7B $5.4 $1.0 $0.8 $1.1 $1.8 $2.4 $7.1 Mortgage Indirect-Vehicles Commercial and Industrial CRE Mortgage - OO Indirect-Other Home Equity CRE Construction - OO I
Slide 28: PPP loan details
PPP loan details ($ in millions) 2Q20 3Q20 4Q20 1Q21 Round 1-average $ 3,213 $ 4,558 $ 4,143 $ 3,232 Round 2-average — — — 566 Total-average $ 3,213 $ 4,558 $ 4,143 $ 3,798 NII(1) $ 18 $ 31 $ 54 $ 40 Round 1-ending $ 4,498 $ 4,594 $ 3,624 $ 2,888 Round 2-ending — — — 1,429 Total-ending $ 4,498 $ 4,5
Slide 29: Capital and Liquidity
Capital and Liquidity Tier 1 capital ratio(1) Common equity Tier 1 Loan-to-deposit ratio(2) ratio(1) 11.9% 88% 11.4% 10.3% 9.8% 70% 65% 10.6% 9.4% 1Q20 4Q20 1Q21 1Q20 4Q20 1Q21 1Q20 4Q20 1Q21 QoQ Highlights & Outlook (3) Consolidated Liquidity Sources ($ in billions) • During 1Q, Regions declared $1
Slide 30: CET1 Waterfall
CET1 Waterfall 0.6% 0.1% 10.3% 9.8% (0.1)% (0.1)% Pre-tax pre- Provision Common 4Q20 CET1% provision Tax & Other 1Q21 CET1%(3) expense(2) Dividend income(1) 30 (1) Non-GAAP; see appendix for reconciliation. (2) Provision expense includes the impact of CECL deferral. (3) Current quarter ratios are es
Slide 31: 2Q21 - 4Q21 projected preferred stock dividends
2Q21 - 4Q21 projected preferred stock dividends ($ in millions) Regions Preferred Par Value 2Q21 3Q21 4Q21 Series A $500.0 $8.0 $— $— Series B $500.0 $8.0 $8.0 $8.0 Series C $500.0 $7.1 $7.1 $7.1 Series D $350.0 $5.0 $5.0 $5.0 Series E(1) $400.0 $— $6.5 $4.5 Total $28.1 $26.6 $24.6 31 (1) The 3Q div
Slide 32: Significant protection
Significant protection 4Q20 CET1 + Additional Loss Absorbency(1)(2) % of RWA 14.94% 0.96% 14.06% 13.81% 13.50% 1.82% 1.87% 0.88% 12.74% 12.66% 1.85% 12.37% 12.26% 12.08% 12.06% 12.04% 0.59% 0.56% 11.90% 11.60% 0.55% 0.57% 0.40% 0.29% 0.42% 11.53% 2.01% 1.39% 0.78% 1.85% 2.10% 1.48% 0.38% 0.19% 2.12%
Slide 33: Optimizing capital while continuing to invest
Optimizing capital while continuing to invest Capital Optimization Investments Corporate/Commercial Indirect Talent and Technology • Stood up loan sales and • ~$6.4B of strategic runoff in process • Expansion in priority growth markets trading desk; supports active • Third-party originated auto • Co
Slide 34: Regions unsecured debt and credit ratings profile
Regions unsecured debt and credit ratings profile Debt maturity profile(1) Select credit ratings ($ in millions) Moody's S&P Fitch Regions Financial Corporation $1,000 $900 Senior Unsecured Debt Baa2 BBB+ BBB+ $800 500 Subordinated Debt Baa2 BBB BBB 1,000 750 Regions Bank $100 300 $0 $0 Senior Unsec
Slide 35: Empowered by innovation & data
Empowered by innovation & data Expanding Influence of Data & Personalization Platform Modernization ® Efforts Deposit & Lending Modernization Modernization of the Bank's Core Systems Omnichannel view of customers for a to enable product and service innovation “You Know Me & Value Me” experience New
Slide 36: Differentiating through customer experience
Differentiating through customer experience Digital Acceleration Innovating Operations Regions Secure Messaging Mobile App Redesign 83% Customer Satisfaction Rating 4.8 iOS App Rating New Mobile features include TermIT, Recurring Transfers, Digital External Transfers Automated Interactions 85% avera
Slide 37: Digital advantage from past technology investments
Digital advantage from past technology investments Pandemic Resiliency & Adaptive Response Adapting to Meet Changing PPP & Stimulus Payments Customer Needs Processed more than 75k loans totaling Branch by appointment $6.5B across PPP1 and PPP2 Shifted to drive-thru service and walk Improvements redu
Slide 38: Continue to invest for the future
Continue to invest for the future 10% $625MM System Maintenance in technology New Technology 42% spending 48% Cybersecurity / Risk Management • Technology spend represents ~10-11% of revenue. • Technology Spend is expected to stay flat and produce innovation through New Technology Investments. Past
Slide 39: Growth in Digital
Growth in Digital Active Digital Banking Users Active Mobile Banking Users Digital Banking Log-Ins Consumer Sales by Channel(1)(4) (Millions) (Millions) (Millions) 9% YoY 14% YoY 21% YoY 311 2.13 3.0 257 2.7 170 131 87% 76% 1.87 141 bps 126 100 +1, 13% 24% March YTD March YTD March YTD March YTD Mar
Slide 40: Continuous improvement initiatives delivering solid results
Continuous improvement initiatives delivering solid results Initiative tracker Expense initiatives (% represents $ of savings) Initiatives Total Initiatives to be number of complete completed initiatives Revenue 17 13 30 Organizational efficiency, All Others 22 12 34 effectiveness & simplification 1
Slide 41: Optimizing the branch network
Optimizing the branch network Consolidations funding growth initiatives Branch Efficiency Through 2021 Cumulative branch consolidations and de novos • >400 branches consolidated from 2014 – 1Q21 De novos while opening 74 Consolidations • The branch network decreased by 59 in 2020, driven by 75 conso
Slide 42: Asset quality
Asset quality Net charge-offs and ratio ACL to loans coverage ratio ($ in millions) ($ in millions) 2.90% 2.81% $123 2.57% 63 $94 $83 2.74% 2.69% 2.44% 53 0.59% 0.43% 46 1.71% 0.40% 1.71% 60 41 37 Day 1 (2) 3Q20 4Q20 1Q21 1Q20 4Q20 1Q21 (1) Consumer net Business services Net charge-offs ACL/Loans (i
Slide 43: Allowance for credit losses waterfall
Allowance for credit losses waterfall ($ in millions) QoQ highlights $2,293 • 1Q ending allowance decreased $225M due to improvement in the economic outlook combined with stabilized credit $(83) performance and charge-offs $2,068 $(130) $(12) • The benefits of the improving economic outlook were par
Slide 44: Base R&S economic outlook
Base R&S economic outlook (as of March 2021) Pre-R&S period 1Q2021 2Q2021 3Q2021 4Q2021 1Q2022 2Q2022 3Q2022 4Q2022 1Q2023 Real GDP, annualized % change 4.9 % 6.8 % 6.3 % 4.9 % 3.9 % 2.7 % 2.6 % 2.4 % 2.3 % Unemployment rate 6.2 % 5.8 % 5.5 % 5.2 % 4.8 % 4.7 % 4.5 % 4.3 % 4.1 % HPI, year-over-year %
Slide 45: Allowance Allocation
Allowance Allocation As of 3/31/21 As of 12/31/20 (in millions) Loan Balance ACL ACL/Loans Loan Balance ACL ACL/Loans C&I $43,241 $921 2.13 % $42,870 $1,027 2.40 % CRE-OO mortgage 5,335 206 3.87 % 5,405 242 4.47 % CRE-OO construction 293 22 7.52 % 300 24 7.98 % Total commercial $48,869 $1,149 2.35 %
Slide 46: Bottom up review informs and narrows COVID-19 high-risk industry sectors
Bottom up review informs and narrows COVID-19 high-risk industry sectors (as of March 31, 2021) % of Utilization C&I Portfolio BAL$(1) BAL$ Rate(2) % Criticized Energy – Oil & Gas Extraction, Oilfield Services $1.05b 1.2% 59% 32% Healthcare – Offices of Other Health Practitioners $0.18b 0.2% 60% 4%
Slide 47: COVID-19 high-risk industry sectors waterfall
COVID-19 high-risk industry sectors waterfall ($ in billions) QoQ highlights • COVID high-risk industries are continuously refined to those exhibiting higher levels of stress due $0.26 to COVID impact $5.15 • Specifically identified at-risk assets not falling into currently flagged $3.36 sectors wer
Slide 48: Commercial & IRE loans
Commercial & IRE loans As of 3/31/21 Total Outstanding ($ in millions) Commitments Balances % Utilization Administrative, Support, Waste & Repair $2,611 $1,622 62% •The outstanding balance for Agriculture 676 419 62% Real Estate within the Educational Services 3,880 2,985 77% Commercial section refl
Slide 49: Energy lending
Energy lending As of 3/31/21 Total Outstanding ($ in millions) # of Clients (1) Commitments Balances % Utilization $ Criticized % Criticized Oilfield services and supply (OFS)(2) 144 $447 $290 65% $42 14% Exploration and production (E&P)(2) 96 1,336 763 57% 295 39% Midstream 21 1,463 428 29% 112 26%
Slide 50: Energy lending (continued)
Energy lending (continued) Balances by Category Gross Losses $1,500 $1,200 $ (Millions) $140 $135.9 $900 $600 $120 $300 $0 $100 P s m m r s E& rvi ce rea rea the oa n Se ds t ns t O PL iel d Mi ow PP $ (Millions) $80 $75.1 lf D Oi $60 1Q2015 1Q2021 $40 $36.7 Balance Trend $28.5 $33.0 $20 $5,000 $6.0
Slide 51: Restaurant lending
Restaurant lending As of 3/31/21 % of Total Outstanding Outstanding ($ in millions) # of Clients* Commitments Balances % Utilization $ Criticized Criticized Quick Service 16,936 $1,319 $1,073 81% $71 7% Casual Dining 29 519 394 76% 305 77% Other 19 145 115 79% 94 82% PPP Loans 2,699 473 473 100% — —
Slide 52: Hotel lending
Hotel lending As of 3/31/21 % of Total Outstanding Outstanding ($ in millions) # of Clients* Commitments Balances % Utilization $ Criticized Criticized CRE-Unsecured (REITs) 11 $803 $626 78% $568 91% IRE – Mortgage 17 263 249 95% 233 94% IRE – Construction 1 31 28 90% 28 100% Consumer Services 3,673
Slide 53: Commercial retail lending
Commercial retail lending As of 3/31/21 Total Outstanding ($ in millions) # of Clients* Commitments Balances % Utilization $ Criticized % Criticized CRE-Unsecured (REITs) 23 $2,701 $1,087 40% $0 —% IRE 139 747 718 96% 174 24% C&I 26,953 2,564 1,313 51% 19 1% CRE-OO 838 843 798 95% 22 3% ABL 20 1,046
Slide 54: Loans to Small Business and Small Farms
Loans to Small Business and Small Farms (outstanding balances as of March 31, 2021) Balances by Industry Balances by State Healthcare 13% 13% Real Estate 13% Florida 30% 21% Transportation & Warehousing 10% 30% Alabama 10% 36% 8% $7.9B 13% Professional, Scientific & Technical Services 9% Restaurant,
Slide 55: Consumer lending portfolio statistics
Consumer lending portfolio statistics Consumer Third Party Residential Mortgage Lending Consumer Credit Card • Avg. origination FICO 749 • Avg. origination FICO 754 • Avg. origination FICO 773 • Current LTV 59% • Avg. new line $26,038 • Avg. new line $5,223 • 97% owner occupied • 48% home improvemen
Slide 56: 2021 expectations
2021 expectations FY 2021 Category Expectations Total Adjusted Revenue Stable (dependent on timing & (from adjusted 2020 of $6,206)(1)(2)(3) amount of PPP forgiveness) Adjusted Non-Interest Expense Stable (from adjusted 2020 of $3,541)(1)(2) Adjusted Average Loans Down low single digits (from adjust
Slide 57: Corporate governance
Corporate governance Regions understands that good corporate governance is the Robust corporate governance shareholder foundation of sustainable business, and good decision-making is engagement program necessary for creating shareholder value over the long term. • We consider proper shareholder enga
Slide 58: Environmental & social highlights
Environmental & social highlights Focus on the Customer • Regions Now Banking® • Regions Affordable Mortgage • Small Business products and services • Fair & Responsible Lending Policy • Regions360® approach • Bank Your Way Advancement of Diversity, Continuous Improvement in Equity, & Inclusion (DEI)
Slide 59: Regions' transition away from LIBOR
Regions' transition away from LIBOR Key Accomplishments Regions’ LIBOR Transition team has made substantial progress and remains in alignment with the industry We are operationally ready for SOFR and prepared to extend new loans tied to this benchmark Financial Strategy Portfolios Transitioned Prima
Slide 60: Appendix
> GENERATING Consistent Sustainable Kone term Performance APPENDIX AM REGIONS] 60
Slide 61: Footprint economic advantages source references
Footprint economic advantages source references Fact Source Bureau of Labor Statistics. "Employment, Hours, and Earnings from the Current Employment Job Growth Statistics Survey.” data.bls.gov/timeseries/CES0000000001 US Census Bureau. “State Intercensal Tables: 2000-2010." https://www.census.gov/da
Slide 62: Non-GAAP information
Non-GAAP information Management uses pre-tax pre-provision income (non-GAAP) and adjusted pre-tax pre-provision income (non-GAAP), as well as the adjusted efficiency ratio (non-GAAP) and the adjusted fee income ratio (non-GAAP) to monitor performance and believes these measures provide meaningful in
Slide 63: Non-GAAP reconciliation: adjusted net interest margin
Non-GAAP reconciliation: adjusted net interest margin Quarter-ended 3/31/2021 12/31/2020 9/30/2020 6/30/2020 3/31/2020 Net interest margin (FTE) (GAAP) 3.02 % 3.13 % 3.13 % 3.19 % 3.44 % Impact of SBA PPP loans (0.04)% (0.07)% 0.01 % 0.02 % NM Impact of excess cash 0.42 % 0.34 % 0.27 % 0.15 % NM Adj
Slide 64: Non-GAAP reconciliation: adjusted average loans
Non-GAAP reconciliation: adjusted average loans Average Balances ($ amounts in millions) 1Q21 4Q20 3Q20 2Q20 1Q20 1Q21 vs. 4Q20 1Q21 vs. 1Q20 Commercial and industrial $ 42,816 $ 43,889 $ 46,405 $ 49,296 $ 40,519 $ (1,073) (2.4)% $ 2,297 5.7 % Less: Commercial loans transferred to held for sale — 23
Slide 65: Non-GAAP reconciliation: adjusted full year average loans
Non-GAAP reconciliation: adjusted full year average loans Average Balances Twelve Months Ended December 31 ($ amounts in millions) 2020 2019 2020 vs. 2019 Commercial and industrial $ 45,028 $ 40,162 $ 4,866 12.1 % Less: Commercial loans transferred to held for sale 179 — $ 179 NM Less: SBA PPP Loans
Slide 66: Non-GAAP reconciliation: adjusted ending loans
Non-GAAP reconciliation: adjusted ending loans As of 3/31/2021 3/31/2021 ($ amounts in millions) 3/31/2021 12/31/2020 9/30/2020 6/30/2020 3/31/2020 vs. 12/31/2020 vs. 3/31/2020 Commercial and industrial $ 43,241 $ 42,870 $ 45,199 $ 47,670 $ 45,388 $ 371 0.9 % $ (2,147) (4.7)% Less: Commercial loans
Slide 67: Non-GAAP reconciliation: NII, non-interest income/expense, efficiency ratio
Non-GAAP reconciliation: NII, non-interest income/expense, operating leverage and efficiency ratio Quarter Ended ($ amounts in millions) 3/31/2021 12/31/2020 9/30/2020 6/30/2020 3/31/2020 1Q21 vs. 4Q20 1Q21 vs. 1Q20 Non-interest expense (GAAP) A $ 928 $ 987 $ 896 $ 924 $ 836 $ (59) (6.0)% $ 92 11.0
Slide 68: Non-GAAP reconciliation: non-interest expense
Non-GAAP reconciliation: non-interest expense Year Ended December 31 ($ amounts in millions) 2020 2019 2018 2017 2016 Non-interest expense (GAAP) $ 3,643 $ 3,489 $ 3,570 $ 3,491 $ 3,483 Adjustments: Contribution to Regions Financial Corporation foundation (10) — (60) (40) — Professional, legal and r
Slide 69: Non-GAAP reconciliation: ACL/Loans excluding PPP
Non-GAAP reconciliation: ACL/Loans excluding PPP As of ($ amounts in millions) 3/31/2021 12/31/2020 9/30/2020 6/30/2020 3/31/2020 Total Loans $ 84,755 $ 85,266 $ 88,359 $ 90,548 $ 88,098 Less: SBA PPP Loans 4,317 3,624 4,594 4,498 — Loans excluding PPP, net (non- GAAP) $ 80,438 $ 81,642 $ 83,765 $ 8
Slide 70: Non-GAAP reconciliation: Pre-tax pre-provision income (PPI)
Non-GAAP reconciliation: Pre-tax pre-provision income (PPI) Quarter Ended ($ amounts in millions) 3/31/2021 12/31/2020 9/30/2020 6/30/2020 3/31/2020 1Q21 vs. 4Q20 1Q21 vs. 1Q20 Net income (loss) available to common shareholders (GAAP) $ 614 $ 588 $ 501 $ (237) $ 139 $ 26 4.4 % $ 475 341.7 % Preferre
Slide 71: Forward-looking statements
Forward-looking statements Forward-Looking Statements This presentation may include forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not based on historical information, but rather are related to future operations, strategi
Slide 72: Forward-looking statements (continued)
Forward-looking statements (continued) • Our ability to comply with stress testing and capital planning requirements (as part of the CCAR process or otherwise) may continue to require a significant investment of our managerial resources due to the importance of such tests and requirements. • Our abi
Slide 73: Forward-looking statements (continued)
Forward-looking statements (continued) • Possible downgrades in our credit ratings or outlook could, among other negative impacts, increase the costs of funding from capital markets. • The effects of a possible downgrade in the U.S. government’s sovereign credit rating or outlook, which could result
Slide 74: Generating Consistent Sustainable Long-term Performance
> GENERATING Consistent Sustainable \ Long-term Performance A REGIONS Ma REGIONS| 74
Regions Financial — Investor Presentation (June 2021) on 6ix