Regions Financial Corporation · NYSE:RF
Regions Financial — Investor Presentation (February 2022)
77 slides from Regions Financial's investor presentation, Feb 15, 2022
Slide 1: Investor Information February - March 2022
Investor Information February - March 2022 Exhibit 99.1
Slide 2: Table of contents
2 Table of contents Topic Page # Profile and Strategy 3-9 Income Statement 10-26 Business Segment Highlights 27-30 Balance Sheet 31-36 Capital, Debt & Liquidity 37-40 Technology & Continuous Improvement 41-45 Credit 46-49 Near-Term Expectations 50 Environmental, Social & Governance 51-54 LIBOR Trans
Slide 3: Our banking franchise
3 Line of business coverage Alabama – 190 Georgia – 114 Iowa – 5 Mississippi – 101 South Carolina – 20 Arkansas – 60 Illinois – 41 Kentucky – 11 Missouri – 51 Tennessee – 200 Florida – 280 Indiana – 44 Louisiana – 84 North Carolina – 7 Texas – 93 Ranked 18th in the U.S. in total deposits(1) Branch l
Slide 4: Top market share plays a valuable role in the competitive landscape
4 Top market share plays a valuable role in the competitive landscape (1) Based on MSA and non-MSA counties using FDIC deposit data as of 6/30/2021; pro-forma for announced M&A transactions as of 01/25/2022. (2) Significant money center bank presence (JPM, BAC, C, WFC) defined as combined market sha
Slide 5: Strong in-market migration has converted legacy core markets into growth markets
5 Strong in-market migration has converted legacy core markets into growth markets Top Faster Growing MSAs Deposits Market Rank(1) Birmingham, Alabama $14.9 2 Nashville, Tennessee $10.8 3 Tampa, Florida $7.2 4 Miami, Florida $5.9 11 Atlanta, Georgia $5.5 7 Mobile, Alabama $3.2 1 Orlando, Florida $3.
Slide 6: Strong recovery within footprint
6 Strong recovery within footprint (1) Per VISA Business and Economic Insights - Regional U.S. Economic Outlook, October 2021 measuring projected timeframes to return to pre-pandemic employment levels. • Majority of RF footprint will likely return to pre-pandemic employment levels by 2Q22 with the S
Slide 7: Regions receives top honors
7 Regions Bank Awarded Silver Military Friendly Employer Award Seven Years Strong: Regions Bank Again Named Gallup Exceptional Workplace Award Winner in 2021 Regions Bank earned the Great Place to Work-Certified™ Company designation based on what current associates say about their experience working
Slide 8: Growing franchise value
8 Market Capitalization(1) Peer 1 $89B Peer 2 $89B Peer 3 $87B Peer 4 $34B Peer 5 $25B RF $24B Peer 6 $24B Peer 7 $24B Peer 8 $23B Peer 9 $13B Peer 10 $11B Peer 11 $10B Peer 12 $8B Peer 13 $5B (1) Source: Bloomberg market capitalization as of 02/09/2022. (2) Source: S&P Capital IQ total assets and t
Slide 9: 2021 overview
9 2021 overview (1) Non-GAAP, see appendix for reconciliation. (2) Highest annual capital markets revenue since starting to rebuild those capabilities in 2014. Adjusted Pre-Tax Pre- Provision Income(1) Diluted Earnings Per Share Adjusted Total Revenue(1) Adjusted Non- Interest Expense(1) Net Income
Slide 10: Consistent NIM performance aided by peer-leading loan yield
10 Consistent NIM performance aided by peer-leading loan yield • Regions consistently produces above peer median net interest margin, and at YE the percentage of cash to total assets for Regions was almost 2x the peer median providing further upside. • Forward starting hedging strategy put in place
Slide 11: NII & margin performance
11 $1,017 $976 $1,029 3.13% 2.76% 2.83% 3.40% 3.30% 3.34% 4Q20 3Q21 4Q21 NII(1) NII & margin performance NII and NIM(1) ($ in millions) (1) Net interest income (NII) and net interest margin (NIM) are reflected on a fully taxable-equivalent basis. (2) Non-GAAP; see appendix for reconciliation. NIM •
Slide 12: Net interest income outlook
12 Loan accrual adj • Linked-quarter NII expected to grow modestly in 1Q22 excluding reduced PPP contributions ◦ Environment conducive for continued loan growth ◦ Stability from rate environment; fixed rate loan production and securities reinvestment yields neutral to runoff ◦ 2 fewer days reduce NI
Slide 13: Balance sheet profile
13 • Balance sheet position naturally benefits from higher interest rates (i.e. asset sensitive), supported by: ◦ large floating rate loan and cash mix ◦ large, stable deposit base and low reliance on wholesale borrowings • Stability of deposit funding evidenced over time ◦ High concentration of non
Slide 14: Deposit surge and beta
14 $97 $14 $12 $14 $137 12/31/2019 Deposits Most-Stable, Low-Beta Growth Mid-Stable, Mid-Beta Growth Least Stable, Higher-Beta Growth 12/31/2021 Deposits $— $50 $100 $150 12/31/2019 Deposits Mostly Stable, Low-Beta ro th id-Stable, id-Beta ro th Least-Stable, igher-Beta ro th 12/31/2021 Deposits $ $
Slide 15: Asset sensitive balance sheet
15 $22 $25 $25 4Q16 4Q21 4Q22 (expected) (1) ~70% fixed rate production has life of 5 years or less. (2) $ in Billions. Reflects net exposure of contractual floating rate assets and liabilities, active hedge notional over following 12-months, and expected deposit repricing betas and runoff. 25bps ra
Slide 16: Adjusted NIM as rates rise
16 Adjusted(1) NIM as Rates Rise (1) Adj. NIM excludes PPP and excess cash over $750M. Adjusted NIM is non-GAAP; see appendix for historical reconciliations. Upper End of Fed Funds Range 3.40% 3.65% 3.80% 3.85% 3.38% 3.58% 3.70% 3.75% 3.35% 3.50% 3.60% 3.65% 0.25% 1.00% 2.00% 2.50% Adjusted(1) NIM R
Slide 17: NII drivers and expected growth
17 While not included in the outlook, opportunities exist if surge deposits are retained with lower betas (assume 70% through-the-cycle deposit beta), or if excess cash is able to be deployed into loans/securities NII is positioned to benefit from higher rates, as well as natural loan growth and str
Slide 18: Balance sheet hedging program
18 2 3 4 5 6 • The balance sheet hedging program has performed as designed, limiting NII and NIM downside under a low rate environment ◦ Gains on terminated hedges deferred and amortized over the life of the initial contract, locking in the benefit to NII in future periods; total return of ~$1.5B, i
Slide 19: Interest rate exposure of future business
19 Fixed Loans Securities Resi. Mtg Loans <2 Years 3-5 Years 6-7 Years >7 Years —% 20% 40% Agency/UST 4.2% Agency MBS 65.8% Agency CMBS 23.5% Non-Agency CMBS 1.8% Corporate Bonds 4.7% Interest rate exposure of future business to middle/long-term rates • NII benefits from higher middle and long-term
Slide 20: Non-interest income
20 • Adjusted non-interest income decreased ~5%. • Newly announced NSF/OD policy changes combined with 2021's previously announced changes will result in FY22 service charges of ~$600M and FY23 service charges ~$25M below FY22. • Expect 2022 capital markets to generate quarterly revenue in $90-$110M
Slide 21: Diversified non-interest income
21 Consumer 52% Wealth Management 17% Corporate 31% 4Q21 fee revenue by segment(1) Diversified non-interest income ($ 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 resid
Slide 22: Capital markets
22 Capital markets Growing products and services that our clients value Our associates delivered results $73 $104 $152 $161 $202 $178 $275 $331 2014 2015 2016 2017 2018 2019 2020 2021 • Regions began to rebuild its Capital Markets capabilities in 2014 after its 2012 sale of it's broker-dealer subsid
Slide 23: Updated NSF/OD policies
23 Regions has made significant changes and upgrades while continuing to provide clients with resources needed to succeed in managing their finances. Details of Regions' Announcement(2): • By end of 1Q22-Eliminate overdraft protection transfer fees • By end of 2Q22-Reduce daily cap for overdraft occ
Slide 24: Mortgage
24 Closed mortgages expected near $900M in 4Q 2021 across the US(1) Purchase volume expected to remain strong in 2022 driven by strengthening economy(1) Investments in people, process and technology beginning in 2018 Enhancing MLO execution to drive customer experience and improve cycle time Continu
Slide 25: Non-interest expense
25 $930 $918 $967 55.8% 56.6% 58.8% Adjusted non-interest expense Acquisition Expenses Adjusted efficiency ratio 4Q20 3Q21 4Q21 $3,387 $3,419 $3,434 $3,443 $3,541 $3,698 2016 2017 2018 2019 2020 2021 • Adjusted non-interest expenses increased ~5%; includes impact of 4Q acquisitions. ◦ Salaries and b
Slide 26: Industry leading PPI profile
26 2.38% 2.32% 2.18% 2.13% 2.12% 2.07% 2.03% 1.88% 1.88% 1.81% 1.79% 1.79% 1.59% 1.52% RF Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 Peer 10 Peer 11 Peer 12 Peer 13 Industry leading PPI(1) profile (1) Non-GAAP; see Appendix for reconciliation. (2) Source: S&P Capital IQ. Risk-wei
Slide 27: Business segments
27 52%43% 5% 61% 37% 2% 31% 59% 8% 2% $651M $87B $137B 4Q21 Pre-tax pre- provision income(1) 4Q21 Average deposits 4Q21 Average loans (1) Pie %'s exclude the pre-tax pre-provision income from the Other Segment totaling $(2) million. Business segments Consumer Corporate Wealth Management Other
Slide 28: Consumer Banking Group
28 (1) Consumer Bank – LOB Average Deposits. (2) From 1/1/2014 to 12/31/2021. (3) Since 2017. Consumer Banking Group Driving growth and customer engagement through strategic investments Continuing to Deliver Strong Results Net Consumer Checking exceeded previous 3 yrs combined & 3x higher than pre-p
Slide 29: Corporate Banking Group
29 Corporate Banking Group Strong alignment across the businesses, risk partners, and product groups Strategic Investments Expanded Expertise Solid Credit Quality with Net Charge-offs of 11bps Fully Integrated Ascentium Capital Completed strategic acquisitions Delivered Outstanding Performance Inves
Slide 30: Wealth Management Group
30 (1) Represents full year 2021 Numbers. Wealth Management Group Focus on execution & investments to optimize the client and associate experience Customer Experience & Communication Maintained strong momentum in growth markets and protected business through continued engagement and solid partnershi
Slide 31: Loan growth momentum
31 • 4Q adjusted loans grew 7% on an ending basis and 6% on an average basis ◦ Excl. ~$3B acquired EnerBank loans, full-year ending adj. loans increased 4% and full-year average adj. loans decreased 3%. • Commercial pipelines have surpassed pre- pandemic levels, production remains strong, and line o
Slide 32: Average loan composition
32 $42.3 $5.4 $0.2 $5.5 $1.7 Commercial and Industrial CRE Mortgage - OO CRE Construction - OO IRE - Mortgage IRE - Construction 4Q21 Average loan composition $17.4 $6.3 $5.4 $1.2 $1.2 Mortgage Home Equity Other Consumer Other Consumer - Exit Portfolios Consumer Credit Card Average consumer loans $3
Slide 33: Commercial & IRE loans
33 Commercial & IRE loans As of 12/31/21 ($ in millions) Total Commitments Outstanding Balances % Utilization Administrative, Support, Waste & Repair $2,630 $1,489 57% Agriculture 589 336 57% Educational Services 3,923 2,975 76% Energy - Oil, Gas & Coal 4,039 1,361 34% Financial Services 11,515 5,58
Slide 34: PPP loan details
34 ($ in millions) 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 Round 1-average $ 3,213 $ 4,558 $ 4,143 $ 3,171 $ 2,401 $ 814 $ 288 Round 2-average — — — 627 1,500 1,324 800 Total-average $ 3,213 $ 4,558 $ 4,143 $ 3,798 $ 3,901 $ 2,138 $ 1,088 NII(1) $ 18 $ 31 $ 54 $ 40 $ 43 $ 31 $ 39 Round 1-ending $ 4,498 $
Slide 35: Deposit growth continues
35 $119.8 $131.9 $136.7 69.9 79.1 80.9 40.6 42.5 42.7 8.9 9.9 10.1 0.4 0.4 3.0 4Q20 3Q21 4Q21 Deposit growth continues (1) Other deposits represent non-customer balances primarily consisting of EnerBank brokered deposits. Average deposits by segment ($ in billions) Wealth Mgt Other(1) Consumer Bank
Slide 36: Deposit advantage
36 Borrowings/ Other(1) 2017 2021 Deposit advantage (1) "Other" category includes EnerBank deposits. (2) Source - Bank Call Report data as of 09/30/2021. (3) 4Q2021 Average NIB/IB split by Business: Consumer 37%/63%, Corporate 61%/39%, Wealth 15%/85%. Funding Mix - Current vs. Prior Rising Rate Cycl
Slide 37: Capital and liquidity
37 9.8% 10.8% 9.6% 4Q20 3Q21 4Q21 • Common Equity Tier 1 (CET1) ratio decreased 120 bps in 4Q due primarily to non-bank acquisitions and share repurchases. ◦ Continue to prioritize capital utilization for organic growth and non-bank acquisitions that propel future growth. • In 4Q, Regions closed on
Slide 38: CET1 waterfall
38 10.8% 0.7% (0.1)% (0.2)% (0.4)% (1.2)% 9.6% CET1 waterfall (1) Non-GAAP; see appendix for reconciliation. (2) 'Other' includes impact of tax, provision, CECL deferral, preferred dividends, and net change in intangibles, all exclusive of acquisitions (broken out separately). (3) RWA growth exclude
Slide 39: Investing for growth while maintaining focus on capital optimization
39 Acquisition of HUD (MAP) License Investing for growth while maintaining focus on capital optimization 2014 2015 2016 2019 20202018 2021 Acquisition of Fannie Mae DUS License Third-party originated auto portfolio ~$2.0B moved to runoff Entered into MSR flow-deal arrangement Sold Regions Insurance
Slide 40: Unsecured debt and credit ratings profile
40 $100 $900 $650 $800 750 650 100 150 300 500 HoldCo Senior Notes Bank Senior Notes HoldCo Subordinated Notes Bank Subordinated Notes 2022 2023 2024 2025 2028 2037 Regions unsecured debt and credit ratings profile • Unsecured wholesale debt footprint represents just 1.5% of 12/31/2021 assets with H
Slide 41: Technology and data efforts
41 ® Efforts Omnichannel view of customers for a “You Know Me & Value Me” experience Regions Client IQ (RCLIQ) and WealthIQ delivering ‘needs based’ engagement resulting in significant corporate and wealth management revenue ROSIE Personalized offering of products and services to anticipate customer
Slide 42: Digital acceleration
42 Digital Acceleration Digital Enhancements New Digital features include MyGreenInsights Upgrade, New Transaction Register, Zelle Enhancements, Consumer and Business Services alerts 49% increase in Zelle transactions in 4Q21 compared to 4Q20 Innovating Operations Authentication Improvements Risk Ba
Slide 43: Continue to invest for the future
43 System Maintenance New Technology Cybersecurity / Risk Management Continue to invest for the future • Regions remains competitive by reserving ~10-11% of revenue for Technology Spend. • Past investment on innovation and strategy provided a firm, resilient foundation for addressing changes in cust
Slide 44: Growth in digital
44 1.9 2.0 2.3 4Q19 4Q20 4Q21 0.86 1.79 2.66 4Q19 4Q20 4Q21 127 149 157 4Q19 4Q20 4Q21 2.7 2.9 3.1 4Q19 4Q20 4Q21 14.1% 20.0% 21.5% 30.5% 33.3% 33.0% 55.4% 46.7% 45.5% 4Q19 4Q20 4Q21 40.2 63.9 82.9 31.0 53.3 74.19.2 10.6 8.8 Deposits Lending 4Q19 4Q20 4Q21 60% 67% 69% 40% 33% 31% 4Q19 4Q20 4Q21 Grow
Slide 45: Continuous improvement framework
45 Continuous improvement framework • Making Banking Easier – Be intensely responsive to customer needs • Revenue Growth – Improve effectiveness in generating prudent, profitable, sustainable growth • Efficiency Improvements – Continuously leverage people and technology to improve processes, reduce
Slide 46: Asset quality improvement continues
46 1.71% 2.69% 1.80% 1.79% 1.71% 2.81% 1.83% 1.81% ACL/Loans (incl. PPP) ACL/Loans (excl. PPP) Day 1 4Q20 3Q21 4Q21 $94 $30 $44 41 25 32 53 5 12 0.43% 0.14% 0.20% 4Q20 3Q21 4Q21 $745 $530 $451 308% 283% 349% 4Q20 3Q21 4Q21 NPLs and ACL coverage ratio Asset quality improvement continues ($ in million
Slide 47: Allowance for credit losses waterfall
47 Changes in Portfolio Risk & Balances $1,499 $(44) $(51) $2 $168 $1,574 Allowance for credit losses waterfall Changes in Economic Outlook & Adjustments Net Charge- Offs 12/31/2021 • 4Q ending allowance, excluding EnerBank, decreased $93M due to continued improvement in the economic outlook and exp
Slide 48: Base economic outlook
48 Pre-R&S period 4Q2021 1Q2022 2Q2022 3Q2022 4Q2022 1Q2023 2Q2023 3Q2023 4Q2023 Real GDP, annualized % change 6.4 % 4.0 % 4.2 % 4.0 % 3.4 % 2.6 % 2.2 % 2.1 % 2.2 % Unemployment rate 4.4 % 3.9 % 3.8 % 3.7 % 3.7 % 3.6 % 3.6 % 3.5 % 3.5 % HPI, year-over-year % change 16.7 % 14.0 % 9.6 % 6.0 % 4.7 % 4.
Slide 49: Allowance for credit losses by portfolio
49 As of 12/31/2021 As of 12/31/2020 (in millions) Loan Balance ACL ACL/Loans Loan Balance ACL ACL/Loans C&I $43,758 $613 1.40 % $42,870 $1,027 2.40 % CRE-OO mortgage 5,287 118 2.23 % 5,405 242 4.47 % CRE-OO construction 264 9 3.53 % 300 24 7.98 % Total commercial $49,309 $740 1.50 % $48,575 $1,293
Slide 50: 2022 expectations
50 2022 expectations (1) Non-GAAP, see appendix for reconciliation. (2) The reconciliation with respect to forward-looking non-GAAP measures is expected to be consistent with actual non-GAAP reconciliations included in the attached appendix or in previous filings with the SEC. (3) Expectations utili
Slide 51: ESG - Environmental
51 2018 ESG - Environmental Launched Solar Tax Equity Finance Team Began publicly issuing a Corporate Sustainability Report Expanded Asset Management offerings to include ESG- focused products Adopted an Environmental Sustainability Policy Statement and two environmental goals: Reduce Scope 1 and Sc
Slide 52: ESG - Social
52 Customers Associates Communities • Regions360® approach • Bank Your Way • Regions Now Banking® • Fair and responsible banking • Digital and online banking channels • Diversity, Equity and Inclusion commitments established • Cultivating a more inclusive work environment • Support for the physical
Slide 53: ESG - Governance
53 ESG - Governance COVID-19 Board oversight of Regions' response 43 Board and Committee meetings in 2020 98% attendance by Directors As we emerge from a year of enormous challenges, we stand by our commitment to creating shared value: Our shareholders benefit when we do what is right for our custom
Slide 54: ESG - Recognitions and resources
54 MSCI State Street Global Advisors S&P Global Sustainalytics AA ESG Rating 68 R-Factor Score S&P 500 ESG Index Low-Risk ESG Risk Rating Human Rights Campaign JUST Capital JUST Capital Disability Equality Index FTSE Russell 100 Score in 2021 Corporate Equality Index 2021 JUST 100 Top 100 Companies
Slide 55: LIBOR Transition Readiness & the Path Forward
55 LIBOR Transition Readiness & the Path Forward Moving to Next Phase of Transition Financial Considerations & Potential Impact As of January 1, 2022 Regions is no longer originating LIBOR loans. Regions has taken steps both systematically and through training to ensure that no new LIBOR loans are a
Slide 56: Ascentium Capital acquisition
56 Ascentium Capital acquisition Acquisition exceeding expectations Company Overview • Announced February 27, 2020; closed April 1, 2020. • Ascentium Capital was the largest independent equipment finance lender in the U.S. • Partners with ~4,000 vendors to finance essential-use equipment for small b
Slide 57: EnerBank acquisition
57 • Announced June 8, 2021; closed October 1, 2021. • Headquartered in Salt Lake City, UT, EnerBank originates prime and super-prime home improvement point-of-sale loans through a national network of +10,000 contractors • A top 5 originator in the home improvement point-of- sale space, one of the f
Slide 58: Sabal Capital Partners acquisition
58 Agency Licenses Sabal Capital Partners acquisition Continues build-out of Regions' fee-based businesses Company Overview & Regions' Strategic Rationale • Announced October 4, 2021; closed December 1, 2021. • Sabal Capital Partners is a market leader in the origination of small-balance agency loan
Slide 59: Clearsight Advisors acquisition
59 Clearsight Advisors acquisition Further expand Regions specialty capabilities and M&A advisory services Company Overview • Announced December 17, 2021; closed December 31, 2021. • Clearsight Advisors is a leading-edge mergers and acquisitions firm serving clients in the technology, professional s
Slide 60: Appendix
> GENERATING Consistent Sustainable \ Long-term Performance APPENDIX AW REGIONS] 60
Slide 61: Selected items impact Fourth quarter 2021 highlights
61 Selected items impact Fourth quarter 2021 highlights (1) Non-GAAP, see appendix for reconciliation. (2) Based on income taxes at an approximate 25% incremental rate. (3) Items impacting results or trends during the period, but are not considered non-GAAP adjustments. These items generally include
Slide 62: Non-GAAP measures definitions
62 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 information to inves
Slide 63: Adjusted net interest margin
63 Non-GAAP reconciliation Adjusted net interest margin Quarter-ended Year-ended 12/31/2021 9/30/2021 12/31/2020 12/31/2021 12/31/2020 Net interest margin (FTE) (GAAP) 2.83 % 2.76 % 3.13 % 2.85 % 3.21 % Impact of SBA PPP loans (0.09) % (0.05) % (0.07) % (0.05) % 0.01 % Impact of excess cash 0.60 % 0
Slide 64: Adjusted average loans
64 Non-GAAP reconciliation Adjusted average loans Average Balances ($ amounts in millions) 4Q21 3Q21 2Q21 1Q21 4Q20 4Q21 vs. 3Q21 4Q21 vs. 4Q20 Commercial and industrial $ 42,254 $ 41,892 $ 43,140 $ 42,816 $ 43,889 $ 362 0.9 % $ (1,635) (3.7) % Add: Commercial loans held for sale reclassified to the
Slide 65: Adjusted full year average loans
65 Non-GAAP reconciliation Adjusted full year average loans Average Balance Average Balance Average Balance Twelve Months Ended Twelve Months Ended Twelve Months Ended ($ amounts in millions) December 31, 2021 December 31, 2020 2021 vs. 2020 Total Loans $ 84,802 $ 87,813 $ (3,011) (3.4) % Add: Comme
Slide 66: Adjusted ending loans
66 Non-GAAP reconciliation Adjusted ending loans As of 12/31/2021 12/31/2021 ($ amounts in millions) 12/31/2021 9/30/2021 6/30/2021 3/31/2021 12/31/2020 vs. 9/30/2021 vs. 12/31/2020 Commercial and industrial $ 43,758 $ 41,748 $ 42,628 $ 43,241 $ 42,870 $ 2,010 4.8 % $ 888 2.1 % Add: Commercial loans
Slide 67: Non-interest expense
67 Non-GAAP reconciliation Non-interest expense Year Ended December 31 ($ amounts in millions) 2021 2020 2019 2018 2017 2016 Non-interest expense (GAAP) $ 3,747 $ 3,643 $ 3,489 $ 3,570 $ 3,491 $ 3,483 Adjustments: Contribution to Regions Financial Corporation foundation (3) (10) — (60) (40) — Profes
Slide 68: ACL/Loans excluding PPP
68 Non-GAAP reconciliation ACL/Loans excluding PPP As of ($ amounts in millions) 12/31/2021 9/30/2021 6/30/2021 3/31/2021 12/31/2020 Total Loans $ 87,784 $ 83,270 $ 84,074 $ 84,755 $ 85,266 Less: SBA PPP Loans 748 1,536 2,948 4,317 3,624 Loans excluding PPP, net (non- GAAP) $ 87,036 $ 81,734 $ 81,12
Slide 69: Pre-tax pre-provision income (PPI)
69 Non-GAAP reconciliation Pre-tax pre-provision income (PPI) Quarter Ended ($ amounts in millions) 12/31/2021 9/30/2021 6/30/2021 3/31/2021 12/31/2020 4Q21 vs. 3Q21 4Q21 vs. 4Q20 Net income (loss) available to common shareholders (GAAP) $ 414 $ 624 $ 748 $ 614 $ 588 $ (210) (33.7) % $ (174) (29.6)
Slide 70: Pre-tax pre-provision income (PPI) - year ended
70 Non-GAAP reconciliation Pre-tax pre-provision income (PPI) NM - Not Meaningful Year Ended ($ amounts in millions) 12/31/2021 12/31/2020 2021 vs. 2020 Net income available to common shareholders (GAAP) $ 2,400 $ 991 $ 1,409 142.2 % Preferred dividends (GAAP) 121 103 18 17.5 % Income tax expense (G
Slide 71: NII, non-interest income/expense, and efficiency ratio
71 Non-GAAP reconciliation NII, non-interest income/expense, and efficiency ratio NM - Not Meaningful Quarter Ended ($ amounts in millions) 12/31/2021 9/30/2021 6/30/2021 3/31/2021 12/31/2020 4Q21 vs. 3Q21 4Q21 vs. 4Q20 Non-interest expense (GAAP) A $ 983 $ 938 $ 898 $ 928 $ 987 $ 45 4.8 % $ (4) (0.
Slide 72: NII, non-interest income/expense, and efficiency ratio - twelve months
72 Non-GAAP reconciliation NII, non-interest income/expense, and efficiency ratio NM - Not Meaningful Twelve Months Ended December 31 ($ amounts in millions) 2021 2020 2021 vs. 2020 Non-interest expense (GAAP) K $ 3,747 $ 3,643 $ 104 2.9 % Adjustments: Contribution to the Regions Financial Corporati
Slide 73: Non-interest income
73 Non-GAAP reconciliation Non-interest income Year Ended ($ amounts in millions) 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Non-interest income (GAAP) $ 2,226 $ 2,201 $ 2,096 $ 1,785 $ 1,937 $ 2,011 $ 1,962 $ 2,019 $ 2,116 $ 2,393 $ 2,524 Security (gains) losses, net (112) (48) (26) (27
Slide 74: Forward-Looking Statements
74 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, strategies, financial results or
Slide 75: • Our ability to comply with stress testing and capital planning requirements (as part
75 • 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 ability to comply with applicable capit
Slide 76: • Market replacement of LIBOR and the related effect on our LIBOR-based financial products
76 • 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 outlook could, among other negative impa
Slide 77: GENERATING
> GENERATING Consistent Sustainable Krizneterm Performance A REGIONS Ax REGIONS| 77
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