Regions Financial Corporation · NYSE:RF
Regions Financial — Q1 2013 Earnings Presentation
18 slides from Regions Financial's earnings presentation, Apr 23, 2013
Slide 1: Regions Financial 1st Quarter 2013 Earnings Conference Call
Exhibit 99.3 Regions Financial st 1 Quarter 2013 Earnings Conference Call April 23, 2013
Slide 2: Moving Forward: 1Q13 Highlights
Moving Forward 1Q13 Highlights ($ in millions, except per share data) • Loan balances steady; 2013 ending Net Interest Income $798 balances expected to increase Non-Interest Revenue $501 • Net checking account growth • Mortgage fees continue to Non-Interest Expense $842 contribute to revenue PPI(1)
Slide 3: Steady loan balances
Steady loan balances Total Loan Balances (1) $76,720 $76,202 $75,259 $73,995 $73,936 • Investor real estate decline 30,299 29,878 29,554 29,202 28,875 subsided; now comprises 10% of total loan portfolio (1) 46,421 46,324 45,705 44,793 45,061 • Commercial and industrial production increased 3% and 1Q
Slide 4: Strengthened deposit profile
Strengthened deposit profile Deposit Balances (1) and Deposit Costs • Deposit mix and costs continued $96,061 $95,863 $94,609 $94,805 $93,864 to improve 17,175 14,220 12,904 19,053 15,536 • Time deposits as a % of total average deposits decreased to 14% in 1Q13 from 20% in 1Q12 37 bps 32 bps • Total
Slide 5: Net interest margin improves
Net interest margin improves Net Interest Income and Net Interest Margin • Net interest income was down 2% linked quarter, driven by a fewer number of days in the quarter and a $839 $850 $830 $831 $811 decline in earning assets 3.16% 3.13% • Loan yields were 4.14%, down 7 3.09% 3.08% 3.10% basis poi
Slide 6: Non-interest revenue impacted by seasonal trends
Non-interest revenue impacted by seasonal trends Non-Interest Revenue $524 $507 $533 $536 • Mortgage income decreased in the $501 first quarter, but remains well above 142 137 144 historical levels 135 139 28 28 27 • Loan production was $1.8 26 18 21 30 23 23 billion, up 13% over last year 18 77 90
Slide 7: Expense control – a culture, not a campaign
Expense control – a culture, not a campaign Adjusted Non-Interest Expenses (1) • Other real estate expenses decreased to $2 million, down from $6 million in $913 8% decrease Y-O-Y the fourth quarter $869 $849 • Held for sale experienced net gains of $840 $842 $6 million related to property sales, re
Slide 8: Continued improvement in asset quality
Continued improvement in asset quality Net Charge-Offs and Ratio NPLs and Coverage Ratio 46% Decline (1) 26% Decline in Total NPLs (1) $332 130% $265 $262 118% 120% 125% 1.73% 114% 120% 109% 110% 1.39% 1.38% 115% $180 $180 110% 0.99% $2,151 0.96% $1,915 $1,884 105% $1,681 100% $1,586 95% 90% 1Q12 2Q
Slide 9: Capital ratios remain strong
Capital ratios remain strong Loan to deposit ratio (4) • Basel III Tier 1 Common ratio(1)(2) estimated under 80% 79% 79% 78% 79% the new proposed rules at 9.1% • Loan to deposit ratio remains low, allowing Regions to be ready for loan growth when the market demand increases 1Q12 2Q12 3Q12 4Q12 1Q13
Slide 10: Appendix
Appendix Ma REGIONS ©
Slide 11: 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 12: Non-GAAP reconciliation: pre-tax pre-provision income
Non-GAAP reconciliation: pre-tax pre- provision income The Pre-Tax Pre-Provision Income (PPI) table below presents computations of pre-tax pre-provision income from continuing operations excluding certain adjustments (non- GAAP). Regions believes that the presentation of PPI and the exclusion of cer
Slide 13: Non-GAAP reconciliation: net income and earnings per share
Non-GAAP reconciliation: net income and earnings per share The table below presents a reconciliation of income and earnings per share available to common shareholders from continuing operations (GAAP) to adjusted income and adjusted earnings per share available to common shareholders from continuing
Slide 14: Non-GAAP reconciliation: non-interest expense
Non-GAAP reconciliation: non-interest expense The table below presents non-interest expense (GAAP) excluding certain adjustments to arrive at adjusted non-interest expense (non-GAAP). Regions believes that the exclusion of these adjustments provides a meaningful base for period-to-period comparisons
Slide 15: Non-GAAP reconciliation: tier 1 capital
Non-GAAP reconciliation: tier 1 capital Regions' Series A preferred stock issued to the U.S. Treasury was repurchased on April 4, 2012 and the warrant to purchase 48.3 million shares of Regions common stock was retired on May 2, 2012. The following table presents the calculations of Tier 1 capital a
Slide 16: 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 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 Basel III requirements, as proposed by the U.S. Notices of Proposed Rulemaking released in June 2012. Regions currently calculates its risk-based capital ratios u
Slide 18: Ma REGIONS
Ma REGIONS