Regions Financial Corporation · NYSE:RF
Regions Financial — Investor Presentation (February 2023)
76 slides from Regions Financial's investor presentation, February 2023
Slide 1: Investor Information
Exhibit 99.1 Investor Information February - March 2023
Slide 2: Table of contents
Table of contents Topic Page # Profile and Strategy 3-10 Income Statement 11-25 Business Segment Highlights 26-30 Balance Sheet 31-38 Capital, Debt & Liquidity 39-40 Technology & Continuous Improvement 41-46 Credit 47-55 Near-Term Expectations 56 Environmental, Social & Governance 57-58 LIBOR Transi
Slide 3: Our banking franchise
Our banking franchise Ranked 19th in the U.S. in total deposits(1) Line of business coverage Ascentium EnerBank First Sterling Business Capital Capital Markets Commercial Banking Corporate Banking Equipment Finance Government/Institutional Institutional Services Birmingham, Alabama Private Wealth Re
Slide 4: Profile evolution
Profile evolution Proactive Interest Rate Improved Credit Risk Profile Continuous Improvement Hedging Customer Organization • Hedge program introduced in Investor CRE CCAR Loan Loss Journeys Simplification 2017/2018 to protect NIM ($ in billions) Rate against falling interest rates Revenue Efficienc
Slide 5: Top market share plays a valuable role in the competitive landscape
Top market share plays a valuable role in the competitive landscape • Ranked 19th in the U.S. in total Markets with top 5 market share(1) 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 6: Strong in-market migration has converted legacy core markets into growth markets
Strong in-market migration has converted legacy core markets into growth markets Market '23-'28 Population Serving Fast-Growing MSAs Deposits Rank(1) Growth(1) 18 of top 25 U.S. markets with Nashville, Tennessee $10.7 3 net migration inflows are within Tampa, Florida $7.7 4 Regions' footprint(2) Atl
Slide 7: Regions receives top honors
Regions receives top honors For the second year, Regions earned Gallup's Don Clifton Strengths-Based Culture Award, which recognized organizations in 2022 with workplace cultures that put the strengths of all associates at the core of how they collaborate, make decisions and work every day. Regions
Slide 8: 2022 overview
2022 overview Continue to generate consistent, sustainable long-term performance 4Q22 FY22 Highlights Key Performance Metrics Reported Adjusted(1) Reported Adjusted(1) • Both reported and adjusted FY PPI(1) represent highest level on Net Income Available to Common Shareholders $660M $2.1B record • 4
Slide 9: Regions' consistent outperformance
Regions' consistent outperformance Regions' earnings, including credit costs, have been top quartile for 10 straight quarters Adjusted PPI(1) Less Adjusted Net Charge-offs(1) to RWA(2) 2.68 2.76 2.54 2.44 2.33 2.33 2.29 2.28 2.23 2.16 2.23 2.19 1.97 1.91 1.86 1.78 1.89 1.73 1.74 1.74 1.63 1.70 2Q20
Slide 10: ROATCE: Industry leading performance
ROATCE: Industry leading performance ROATCE Performance Trend vs. Peers(1) Rank: 1 24.1% Rank: 1 21.4% 19.3% 17.6% 16.5% 17.0% 14.9% 12.0% 12.0% 14.7% 11.0% 9.2% 11.0% 9.7% 8.5% 9.0% 2015 2016 2017 2018 2019 2020 2021 2022 RF Peer Median (1) Non-GAAP; see Appendix for reconciliation. Peers include C
Slide 11: Consistent NIM outperformance aided by hedged loan yield & deposit advantage
Consistent NIM outperformance aided by hedged loan yield & deposit advantage Net Interest Margin vs. Peers(1) • Regions' asset sensitive balance sheet mix and 3.99% funding advantage consistently produces above 3.48% 3.45% 3.53% peer median net interest margin 3.21% 3.06% 3.52% • Under higher rates,
Slide 12: NII & margin performance
NII & margin performance FTE NII and NIM(1) Drivers of NII and NIM ($ in millions) $1,414 • NII +$140M, or +11% linked-quarter; NIM +0.46% $1,274 $1,029 • Higher short-term rates largely drive NII growth 3.99% ◦ Additional asset sensitivity in the quarter 3.53% from hedge notional maturities(2) offs
Slide 13: Balance sheet profile
Balance sheet profile (as of December 31, 2022) Portfolio Compositions • Balance sheet position naturally benefits Assets(1) Loans(2)(3)(4) from higher interest rates (i.e. asset Other Fixed Hedges sensitive), supported by 13% 7% Cash ◦ Large floating rate loan and cash mix 6% $155B $97B ◦ Large, st
Slide 14: Balance sheet positioning advantage
Balance sheet positioning advantage Strong deposit franchise and funding position provide an opportunity for flexibility and outperformance in a monetary tightening environment (1) Cash / Earning Assets Loan-to-Deposit Ratio 20% 92% 89% Peer Median:80% 87% 84% 81% 80% 80% 79% 78% 14% 75% 75% 74% 74%
Slide 15: Regions' deposit advantage
Regions' deposit advantage Interest-bearing Deposit Costs by Fed Funds Interest-bearing Deposit Costs(1) 5.00% 2.00% Level(1) During the prior cycle, betas 4.00% 3.84% 1.50% would have continued higher if: IB Deposit Yield – Fed hiked further 3.00% 2.50% – Rates remained near 1.00% peak longer 2.00%
Slide 16: Asset sensitive balance sheet
Asset sensitive balance sheet Attractive long-term NIM range (3.60-4.00%); well-protected against lower rates Net Interest Income Sensitivity Drivers Sensitivity to Short-Term Rates Sensitivity to Long-Term Rates • ~54% floating rate loans excl. hedges; forward-starting • ~$16B annual fixed rate loa
Slide 17: Hedging strategy update
Hedging strategy update Net Receive Hedge Notional(1) (Quarterly Avg) (Annual Avg) 4Q22 Swap Additions 1 2 4Q22 2 1Q23 3 2Q23 4 3Q23 5 4Q23 6 1Q24 7 2Q24 1 2023 2 2024 3 2025 4 2026 5 2027 6 2028 Swap Notional - 3Q22 $6.7B $9.7B $9.9B $15.7B $18.7B $21.5B $21.1B $13.5B $20.5B $17.4B $10.8B $6.0B $1.
Slide 18: Securities portfolio provides downside rate protection / liquidity
Securities portfolio provides downside rate protection / liquidity • Portfolio constructed to protect against changes in market rates Securities portfolio composition(1) ◦ Duration of approximately 5 years as of Corporate Bonds 12/31/2022 (fully extended) provides offset Agency/UST 4% 7% to long-dur
Slide 19: Non-interest income
Non-interest income Non-Interest Income Adj. Non-Interest Income (1) QoQ highlights & outlook ($ in millions) ($ in millions) • 4Q reported NIR includes $50M of insurance $615 $605 $600 $615 $606 proceeds related to 3Q regulatory settlement $550 • Expect to offer a grace period feature in 2023 resul
Slide 20: Diversified non-interest income
Diversified non-interest income 4Q22 fee revenue by segment(1) Consumer ($ 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 21: Capital Markets
Capital Markets Growing products and services that our clients value Capital markets is an umbrella over capital raising, risk management, and advisory services. (1)(2) Capital Markets Product Solutions Capital Markets Annual Revenue Our associates delivered results $331 $339 $275 Real Estate Merger
Slide 22: Treasury Management
Treasury Management Enabling our clients to optimize cash flow and manage risk with a comprehensive & competitive suite of Treasury Management solutions Steadily Growing our Treasury Management Business +10% +9% +11% +31% Growing Growing Increasing Growing Treasury Portfolio of Digital, Global Manag
Slide 23: Deposit account policy changes
Deposit account policy changes Providing customers capabilities to be more financially sound Adjusted Non-Interest Income(1)(2) Updated NSF/OD Policies ($ in millions) Regions is committed to making banking easier for our customers. $2,379 Details of Regions' Announcement(3): $2,109 1Q22-Eliminate o
Slide 24: Mortgage remains a key component of fee revenue
Mortgage remains a key component of fee revenue Market Prime Delivery Mortgage Investing Strength Portfolio Efficiency Servicing For Growth Industry purchase 756 Avg. FICO 23% lower origination Servicing expense Continuing to focus on volume in 2022 51% current LTV and fulfillment cost lower than pe
Slide 25: Non-interest expense
Non-interest expense Non-Interest Expense Adj. Non-Interest Expense(1) QoQ highlights & outlook ($ in millions) ($ in millions) $1,170 • Non-interest expense decreased ~13% on a reported basis but increased ~2% on an adjusted basis(1) $1,017 $1,012 $983 $988 $967 • Reported professional & legal exp.
Slide 26: Business segments
Business segments 4Q22 Pre-tax pre- 4Q22 Average 4Q22 Average provision income(1) loans deposits 1% 7% 2% 7% 29% 34% 43% $984M $96B $133B 50% 64% 63% Consumer Corporate Wealth Management Other 26 (1) Pie %'s exclude the pre-tax pre-provision income from the Other Segment totaling $39 million.
Slide 27: Investments in our businesses
Investments in our businesses Investments in talent, technology and strategic acquisitions continue to pay off CORPORATE CONSUMER WEALTH Treasury Management client base Record 2022 non-interest Mobile users increased grew 9% YoY(1); 2022 Revenue grew income reflecting growth of 5.7% YoY 10% achievin
Slide 28: Consumer Banking Group
Consumer Banking Group Driving growth and customer engagement through strategic investments Continuing to Deliver Strong Delivering Solid Customer Strategic Investments Across Results Satisfaction & Loyalty The Business Premier Lender to Homeowners Strong 2022 Revenue Growth with revenue 16% higher
Slide 29: Corporate Banking Group
Corporate Banking Group Driving continued long-term performance for our clients & our shareholders Strategic Investments Executing a Strategy that Invested in Talent & Expanded Expertise Delivers Results Enablement Integrated Clearsight Advisors & Sabal Another Record Year for Cultivating a strong,
Slide 30: Wealth Management Group
Wealth Management Group Focus on execution & investments to optimize the client and associate experience Customer Experience & Strategic Technology Investments Delivered Record Results(1) Communication & Data Analytics Maintained strong momentum in Salesforce Modernization enhancements growth market
Slide 31: Loan growth continues
Loan growth continues Loans and leases 1% QoQ highlights (Average, $ in billions) • Avg business loans increased 2% reflecting high- $94.6 $95.8 quality, broad-based growth across financial $86.6 services, wholesale durables, information services and multi-family 32.2 32.0 31.5 • Line commitments in
Slide 32: 4Q22 Average loan composition
4Q22 Average loan composition Average consumer loans Average business loans ($ in billions) ($ in billions) $18.6 $5.1 $0.3 $32.0B $50.1 $63.8B $6.4 $1.2 $0.6 $1.9 $6.0 $5.6 Mortgage Home Equity Commercial and Industrial CRE Mortgage - OO Other Consumer Other Consumer - Exit Portfolios CRE Construct
Slide 33: Commercial & IRE loans
Commercial & IRE loans As of 12/31/22 Total Outstanding ($ in millions) Commitments Balances % Utilization Administrative, Support, Waste & Repair $2,461 $1,531 62% Agriculture 583 332 57% •Commercial Real Estate Total Educational Services 4,289 3,311 77% Commitments and Outstanding Energy - Oil, Ga
Slide 34: Deposits
Deposits Normalization occurring as expected Deposits by Segment QoQ highlights & outlook (Average, $ in billions) $136.7 • Avg total consumer balances modestly lower, $135.5 $133.0 3.0 2.3 2.2 driven by higher-balance customers seeking 10.1 9.5 9.0 investment alternatives 42.7 39.0 38.2 • Avg corpo
Slide 35: Deposit mix and outlook
Deposit mix and outlook 12/31/2022 Deposits(1)(2) Trends & Outlook (Ending, $ in billions) • New Customers & Customers with Low Betas in 2019: Customers who had low deposit betas in the Consumer & Wealth 2019 rate cycle (effective annual rate <20bps)(3) and new customers since 2019 have exhibited ve
Slide 36: State of the consumer
State of the consumer Regions' exposure to low-FICO borrowers remains negligible; customers with historically low deposit balances still have significant cushion Regions' consumer borrowers are in a strong position More broadly, Regions' lower-deposit-balance customers relative to pre-pandemic pre-p
Slide 37: Median customer deposit balances
Median customer deposit balances Consumer and Corporate Median Consumer Customer Deposit Balances(1) Median Corporate Deposit Balances(2) (12/31/2019-11/30/2022) (12/31/2019-11/30/2022) Stimulus Rounds 2 & 3 Up ~62% Stimulus Round 1 Up ~49% Retail Deposits 0 1 0 1 9 1 1 2 0 2 0 2 0 1 0 1 9 1 1 2 0 2
Slide 38: Deposit advantage
Deposit advantage Business Deposit Mix(1) Funding Mix(1) - Current vs. Prior % of Total Deposits Balance in 4Q22 Average Rising Rate Cycle Accounts Less than $250k(2) ($ in billions) ($ in billions) $135 3% 52% $105 47% 46% 45% 28% 43% 42% 42% 42% Corporate 10% 40% 40% 40% 39% $38 27% 33% 28% Consum
Slide 39: Capital and liquidity
Capital and liquidity Tier 1 capital ratio Common equity Tier 1 ratio 11.0% 10.9% 9.6% 9.6% 9.3% 10.6% 4Q21 3Q22 4Q22 4Q21 3Q22 4Q22 Loan-to-deposit ratio(1) QoQ Highlights & Outlook • Common Equity Tier 1 (CET1) ratio increased to 9.6%, reflecting solid capital generation through 74% earnings offse
Slide 40: Tangible Common Equity
Tangible Common Equity • Higher levels of interest rates are beneficial to Regions through expansion in net interest margin and deposit value ◦ However, higher rates also result in unrealized losses within our securities and cash flow hedging portfolios which act as a drag on our ratio of TCE to Tan
Slide 41: Investing for growth while maintaining focus on capital optimization
Investing for growth while maintaining focus on capital optimization 2014 2015 2016 2018 Sold Regions Insurance Acquisition of Acquisition of Group; redeployed capital Fannie Mae HUD (MAP) generated to shareholders DUS License License Entered into MSR flow-deal arrangement Third-party originated aut
Slide 42: Empowered by innovation & data
Empowered by innovation & data Expanding Influence of Data & Personalization Platform Modernization Efforts Platform Enhancements Data-driven omnichannel view of customers for a “You Know Me & Value Next Generation of Customer Experience and Core Banking and Data Me” experience Platforms Continued e
Slide 43: Differentiating through customer experience
Differentiating through customer experience Digital Acceleration Innovating Operations Expanded Regions Secure Messaging Adoption Increased usage by 19% 4Q22 vs 4Q21 5.7% increase in Mobile users in 4Q22 compared to 4Q21 Automated Non-Agent Interactions 87.1% average interaction resolution rate Digi
Slide 44: Continue to invest for the future
Continue to invest for the future Regions remains competitive by reserving ~9–11% of revenue for technology spend Innovation and Strategy Customer Experience & Technology Spend Allocation Past investment on innovation and Investments over the last 4 years to strategy provided a firm, resilient moder
Slide 45: Growth in digital
Growth in digital Digital Usage Sales and Transactions Zelle Transactions (Millions) (1) Active Users (Millions) Digital Sales (Accounts in Thousands) +13% +17% +93% 3.18 3.28 2.40 5.5% 3.44 2.89 2.27 75.8 68.0 2.04 64.5 9.6 12.7 2.66 11.3 53.2 66.2 55.3 1.79 4Q20 4Q21 4Q22 4Q20 4Q21 4Q22 4Q20 4Q21
Slide 46: Continuous improvement framework
Continuous improvement framework Simplify & Grow established a culture of Continuous Improvement. Now that Continuous Improvement is embedded in our DNA, initiatives are no longer centrally tracked, and groups manage the development and execution of their programs with regular updates to the Steerin
Slide 47: Asset quality
Asset quality Underlying credit performance remains broadly stable Net charge-offs Allowance for Credit Losses (ACL) ($ in millions) ($ in millions) $1,574 $1,539 $1,582 0.46% 0.29% 0.20% 0.19% $110 349% 317% 311% $63 $69 1.79% 1.63% 1.63% $44 $47 4Q21 3Q22 4Q22 4Q21 3Q22 4Q22 (1) Adjusted Net Charg
Slide 48: Higher Risk Industry Segments
Higher Risk Industry Segments (Outstanding balances as of December 31, 2022) Business Services High Risk Segments Portfolio BAL$(1) % of Total Loans % NPL % ACL Consumer Discretionary Goods $1.76 1.8% 2.0% 1.8% Retail Trade & Consumer Manufacturing Freight Transportation $0.98 1.0% 1.0% 3.6% Transpo
Slide 49: Allowance for credit losses waterfall
Allowance for credit losses waterfall ($ in millions) QoQ highlights • 4Q allowance increased $43M $53 compared to prior quarter, resulting $42 $1,582 in a $112M provision expense. $1,539 $(20) $(32) • Key drivers of the increase in ACL: ◦ High quality balance growth ◦ Credit quality changes and nor
Slide 50: Base R&S economic outlook
Base R&S economic outlook (as of December 2022) Pre-R&S period 4Q2022 1Q2023 2Q2023 3Q2023 4Q2023 1Q2024 2Q2024 3Q2024 4Q2024 Real GDP, annualized % change 1.1 % 0.3 % 0.6 % 0.9 % 1.3 % 1.6 % 2.3 % 2.2 % 2.4 % Unemployment rate 3.7 % 3.8 % 4.0 % 4.2 % 4.3 % 4.4 % 4.4 % 4.4 % 4.3 % HPI, year-over-yea
Slide 51: Allowance allocation
Allowance allocation As of 12/31/2022 As of 12/31/2021 (in millions) Loan Balance ACL ACL/Loans Loan Balance ACL ACL/Loans C&I $50,905 $628 1.23 % $43,758 $613 1.40 % CRE-OO mortgage 5,103 102 2.00 % 5,287 118 2.23 % CRE-OO construction 298 7 2.29 % 264 9 3.53 % Total commercial $56,306 $737 1.31 %
Slide 52: Well positioned for next downturn
Well positioned for next downturn Highly Diversified Business Portfolio(1) (2) Healthcare All Other Commercial 5.7% 3.8% Investor Real Estate Commodities 13.0% 6.8% Distribution 6.8% Financial Services 10.8% Business Services 7.5% $64.7B Manufacturing 8.3% (3) CRE Unsecured, including REITs 10.4% Te
Slide 53: Consumer lending portfolio statistics
Consumer lending portfolio statistics Consumer Credit Card Residential Mortgage Consumer FICO Scores(1) • Avg. origination FICO 769 • Avg. origination FICO 759 • Avg. new line $6,394 • Current LTV 52% 2% 2% 2% • 4Q22 Yield 14.34% • 98% owner occupied • 4Q22 QTD NCO 2.94% 63% Other Consumer(2) 81% 76
Slide 54: Leveraged portfolio
Leveraged portfolio (outstanding balances as of December 31, 2022) Diversified Portfolio Important Factors • RF defines Leverage consistent with Moody's historical Regional Bank Survey definition; Commitments >$5M with funded debt to EBITDA>4.0x 12.3% ◦ Commitments are $4.4B 24.9% 4.2% • Not a strat
Slide 55: SNC portfolio
SNC portfolio (outstanding balances as of December 31, 2022) Shared National Credit Balances by Industry Portfolio Characteristics • Diverse industry mix • RF is agent on 7% and titled role on 44% of 15.2% balances 33.8% • 44% of balances are investment grade 8.2% $26.1 B • 12% of balances are lever
Slide 56: 2023 expectations
2023 expectations FY 2023 Expectations Expectations for 1Q23 & Beyond Total Adjusted Revenue • 1Q NII growth of 1-3%(3); 2023 NII (from adjusted 2022 of $7,165)(1)(2)(3) up 8-10% growth of 13-15%(3) Adjusted Non-Interest Expense up 4.5-5.5%; expect 1H23 to (from adjusted 2022 of $3,886)(1)(2 ) be hi
Slide 57: Environmental, Social & Governance
Environmental, Social & Governance ESG Governance Suite of ESG Disclosures BOARD OF DIRECTORS ESG-related elements of the Strategic Plan, annual budget, and capital planning process ■ Annual Review & ESG Report ■ TCFD Report O Board-Level Committees ■ SASB Index V ■ GRI Index ESG strategies, initiat
Slide 58: Environmental, Social & Governance
Environmental, Social & Governance Creating Shared Value Through Commitments and Initiatives Supporting environmental Fostering diversity, equity, Promoting financial inclusivity sustainability and inclusion ▪ Introduced Regions Now CheckingSM to ▪ Surpassed 2023 target to reduce ▪ Nurtured inclusiv
Slide 59: LIBOR Transition
LIBOR Transition The Last Act Highlights Moving to Final Phase of Transition Jun 30, 2023 For almost two years Regions has been originating loans and derivatives using alternative indexes. Over the past three quarters focus has been on proactive remediation of specific Last Day USD LIBOR will be pub
Slide 60: Acquisitions exceeding expectations
Acquisitions exceeding expectations 4Q22 Ascentium Capital EnerBank Average Balances $2.3B $4.4B Portfolio Yield 8.1% 7.6% NCOs 1.24% 1.09% Ascentium Capital(1) EnerBank(2) Origination Growth Synergistic Opportunities • 4Q22 origination growth is up 20% from 4Q21 • Successful integration of EnerBank
Slide 61: APPENDIX
> GENERATING Consistent Sustainable Kone term Performance APPENDIX A REGIONS] 61
Slide 62: Fourth quarter 2022 highlights
Fourth quarter 2022 highlights Summary of fourth quarter results Selected items impact QoQ YoY FY ($ amounts in millions, except per share data) 4Q22 Change Change (amounts in millions, except per share data) 4Q22 2022 Net interest income $ 1,401 11.0% 37.5% Pre-tax adjusted items(1): Branch consoli
Slide 63: 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 64: Non-GAAP reconciliation
Non-GAAP reconciliation Adjusted Net Charge-Offs and Ratio Year-Ended For the Quarter Ended ($ amounts in millions) 2022 2021 12/31/2022 9/30/2022 6/30/2022 3/31/2022 12/31/2021 Net loan charge-offs (GAAP) $ 263 $ 204 $ 69 $ 110 $ 38 $ 46 $ 44 Less: charge-offs associated with the sale of unsecured
Slide 65: Non-GAAP reconciliation
Non-GAAP reconciliation Pre-tax pre-provision income (PPI) Year Ended Quarter Ended ($ amounts in millions) 2022 12/31/2022 9/30/2022 6/30/2022 3/31/2022 12/31/2021 4Q22 vs. 3Q22 4Q22 vs. 4Q21 Net income available to common shareholders (GAAP) $ 2,146 $ 660 $ 404 $ 558 $ 524 $ 414 $ 256 63.4 % $ 246
Slide 66: Non-GAAP reconciliation
Non-GAAP reconciliation NII, non-interest income/expense, and efficiency ratio Quarter Ended ($ amounts in millions) 12/31/2022 9/30/2022 6/30/2022 3/31/2022 12/31/2021 4Q22 vs. 3Q22 4Q22 vs. 4Q21 Non-interest expense (GAAP) A $ 1,017 $ 1,170 $ 948 $ 933 $ 983 $ (153) (13.1)% $ 34 3.5 % Adjustments:
Slide 67: Non-GAAP reconciliation
Non-GAAP reconciliation NII, non-interest income/expense, and efficiency ratio Twelve Months Ended December 31 ($ amounts in millions) 2022 2021 2022 vs. 2021 Non-interest expense (GAAP) A $ 4,068 $ 3,747 $ 321 8.6 % Adjustments: Contribution to the Regions Financial Corporation foundation — (3) 3 1
Slide 68: Non-GAAP reconciliation
Non-GAAP reconciliation Non-interest income Year Ended ($ amounts in millions) 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 Non-interest income (GAAP) $ 2,429 $ 2,524 $ 2,393 $ 2,116 $ 2,019 $ 1,962 $ 2,011 $ 1,937 $ 1,785 $ 2,096 $ 2,201 $ 2,226 Security (gains) losses, net 1 (3) (4)
Slide 69: Non-GAAP reconciliation
Non-GAAP reconciliation Non-interest expense Twelve Months Ended December 31 ($ amounts in millions) 2022 2021 2020 2019 2018 2017 2016 Non-interest expense (GAAP) $ 4,068 $ 3,747 $ 3,643 $ 3,489 $ 3,570 $ 3,491 $ 3,483 Adjustments: Contribution to Regions Financial Corporation foundation — (3) (10)
Slide 70: Non-GAAP reconciliation
Non-GAAP reconciliation Return on average tangible common shareholders' equity Year Ended ($ amounts in millions) 2022 2021 2020 2019 2018 2017 2016 2015 RETURN ON AVERAGE TANGIBLE COMMON SHAREHOLDERS' EQUITY Net income available to common shareholders A $ 2,146 $ 2,400 $ 991 $ 1,503 $ 1,695 $ 1,199
Slide 71: Non-GAAP reconciliation
Non-GAAP reconciliation Return on average tangible common shareholders' equity Year-Ended ($ amounts in millions) 2022 2021 RETURN ON AVERAGE TANGIBLE COMMON SHAREHOLDERS' EQUITY Net income available to common shareholders (GAAP) A $ 2,146 $ 2,400 Average shareholders' equity (GAAP) $ 16,503 $ 18,20
Slide 72: Non-GAAP reconciliation
Non-GAAP reconciliation Tangible Common Ratios As of and for Quarter Ended ($ amounts in millions, except per share data) 12/31/2022 9/30/2022 6/30/2022 3/31/2022 12/31/2021 TANGIBLE COMMON RATIOS Shareholders’ equity (GAAP) A $ 15,947 $ 15,173 $ 16,507 $ 16,982 $ 18,326 Less: Preferred stock (GAAP)
Slide 73: 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. The words “future,” “anticipates,” “assumes,” “intends,” “plans,” “seeks,” “believes,” “predicts,” “potential,” “objectiv
Slide 74: 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 75: Forward-looking statements (continued)
Forward-looking statements (continued) • Market replacement of LIBOR and the related effect on our LIBOR-based financial products and contracts, including, but not limited to, derivative products, debt obligations, deposits, investments, and loans. • Possible downgrades in our credit ratings or outl
Slide 76: Generating Consistent, Sustainable Long-term Performance
> GENERATING Consistent Sustainable \ Long-term Performance A REGIONS Ma REGIONS| 76
Regions Financial — Investor Presentation (February 2023) on 6ix