Regions Financial Corporation · NYSE:RF
Regions Financial — Barclays Americas Select Conference 2015
27 slides from Regions Financial's conference presentation, May 15, 2015
Slide 1: Barclays Americas Select Conference
Barclays Americas Select Conference May 20, 2015 Grayson Hall Chairman and CEO Exhibit 99.1
Slide 2: Regions' Vision Statement
Regions’ aims to be the premier regional financial institution in America through being deeply embedded in its communities, operating as one team with the highest integrity, providing unique and extraordinary service to all of its customers, and offering an unparalleled opportunity for professional
Slide 3: Key differentiators
3 Key differentiators MARKETS PEOPLE CULTURE CUSTOMER FOCUS
Slide 4: Key differentiators: Markets
4 Key differentiators MARKETS Birmingham, Alabama Ranked #3 DEPOSIT SHARE IN CORE MARKETS People Culture Customer Focus #2 #1 #5 #1 #2 #4 TOP PROJECTED POPULATION GROWTH TO OUTPACE U.S. AVERAGE HISTORICAL POPULATION GROWTH EXCEEDS ALL OTHER REGIONS OF THE U.S. TOP (1) (2) (3) (1) Core markets includ
Slide 5: Key differentiators: People
5 Key differentiators PEOPLE Markets Culture Customer Focus Recognized by Gallup as one of the top places to work in 2015 Top 40 Recognized by Forbes as one of America’s best employers Top 400
Slide 6: Key differentiators: Culture
6 Key differentiators CULTURE Customers Shareholders Associates Customer Focus Markets People Shared Value Communities
Slide 7: Key differentiators: Customer Focus
7 Key differentiators CUSTOMER FOCUS Markets People Culture Regions prescriptive approach to relationship banking ™customers are 2x more profitable than non-360 customers Recognized by Greenwich Associates as a top small business and middle market bank Recognized by Temkin Group for providin
Slide 8: Business groups
Business groups 8 Corporate Banking Group Commercial Banking Specialized Industries Regions Business Capital Real Estate Banking Treasury Management Capital Markets Consumer Retail Consumer Banking Mortgage Credit Card Indirect Auto Lending Regions Now Banking Small Business
Slide 9: Balance Sheet: Steady financial progress
Balance Sheet 1Q15 1Q13 2 Year Improvement Loan Balances $78B $74B $4B Low-Cost Deposits $89B $82B $7B Deposit Costs(1) 12 bps 18 bps 6 bps Profitability Net Interest Margin(1) 3.18% 3.13% 5 bps Credit Risk Profile Non-Performing Assets $970MM $1.8B 46% Net Charge-Offs $54MM $180MM 3x Allowance for
Slide 10: Grow and diversify revenue; operating leverage; deploy capital
Grow and diversify revenue Committed to generating positive operating leverage over time Effectively deploy capital Leverage ™ to grow customers and households Grow checking, savings, credit card and wealth management accounts Mortgage income expected to improve and will continue to look for o
Slide 11: Grow and diversify revenue
Grow and diversify revenue 11
Slide 12: Revenue contributors
Revenue contributors 12 64% 36% Net Interest Income (FTE) Adjusted Non- Interest Income⁽¹⁾ Total Revenue $1.3B Note: Peer banks include BBT, CMA, FHN, FITB, HBAN, KEY, MTB, PNC, STI, USB, WFC, ZION Source: SNL Financial (1) See appendix for reconciliation [VALUE] [VALUE] Net Interest Income (FTE) Ad
Slide 13: Net interest margin and loan yields
Net interest margin and loan yields Net interest margin vs. peers 3.26% 3.18% 3.24% 2.93% 1Q14 2Q14 3Q14 4Q14 1Q15 Note: Peer banks include BBT, CMA, FHN, FITB, HBAN, KEY, MTB, PNC, STI, USB, WFC, ZION Source: SNL Financial Loan yield vs. peers 13 4.03% 3.86% 3.92% 3.69% 1Q14 2Q14 3Q14 4Q14 1Q15 Reg
Slide 14: Major sources of non-interest income
Major sources of non-interest income ($ in millions) (1) Total Wealth Management income presented above does not include the portion of service charges on deposit accounts and similar smaller dollar amounts that are also attributable to the Wealth Management segment. 14 184 175 190 185 173 174 181 1
Slide 15: Committed to generating positive operating leverage over time
Committed to generating positive operating leverage over time 15
Slide 16: Expenses
Expenses Adjusted non-interest expenses(1) ($ in millions) $3,666 $3,532 $3,471 $3,432 $3,358 2010 2011 2012 2013 2014 (1) Non-GAAP – See appendix for reconciliation Note: Peer banks include BBT, CMA, FHN, FITB, HBAN, KEY, MTB, PNC, STI, USB, WFC, ZION Source: SNL Financial 16 Adjusted expenses(1) /
Slide 17: Effectively deploy capital
Effectively deploy capital 17
Slide 18: Strong capital position
Strong capital position Capital position is sufficient to support both the return of capital and strong organic growth as well as other strategic opportunities Rank 1 Peer #1 11.95% 2 ® 11.41% 3 Peer #3 10.69% 4 Peer #4 10.64% 5 Peer #5 10.50% 6 Peer #6 10.50% 7 Peer #7 10.43% 8 Peer #8 10.31% 9 P
Slide 19: Organic growth
Organic growth 19 $73.9 $75.0 $75.9 $74.6 $75.7 $76.5 $76.6 $77.3 $78.2 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 Business Lending Consumer Lending Ending loan balances ($ in billions) Initiatives Business: Expand specialized lending offerings Grow Real Estate Corporate Banking Lead more sy
Slide 20: Capital return to shareholders
Capital return to shareholders 20 Dividends Share repurchases $0 $339 $256 $627 FY 2012 Actual FY 2013 Actual FY 2014 Actual FY 2015 Estimated* * 1Q15 actual was $102MM, projected 2Q15-4Q15 based on 2015 CCAR submission of $875MM, evenly spread over 5 quarters for this example, but are subject to ma
Slide 21: Expectations for 2015
Expectations for 2015 Economic growth expected to pick up over the remainder of the year Continued improvement in housing prices expected Expect an increase in short- term rates in latter part of 2015 21 Economy Loans NIM / Operating leverage Expect total loan growth in the 4% to 6% range on
Slide 22: Regions' Mission Statement
22 Regions' mission is to achieve superior economic value for our shareholders over time by making life better for our customers, our associates and our communities and creating shared value as we help them meet their financial goals and aspirations. Regions’ Mission Statement
Slide 23: Appendix
Appendix Ms REGIONS
Slide 24: Non-GAAP reconciliation: Non-interest income/expense
24 Non-GAAP reconciliation: Non- interest income/expense NM – Not Meaningful (1) Regions recorded $100 million of contingent legal and regulatory accruals during the fourth quarter of 2014 related to previously disclosed matters. (2) Regions recorded a non-tax deductible regulatory charge of $58 mil
Slide 25: Non-GAAP reconciliation: Basel III common equity Tier 1 ratio
Non-GAAP reconciliation: Basel III common equity Tier 1 ratio – fully phased-in pro-forma The calculation of the fully phased-in pro-forma "Common equity Tier 1" (CET1) is based on Regions’ understanding of the Final Basel III requirements. For Regions, the Basel III framework became effective on a
Slide 26: Forward-looking statements
Forward-looking statements The foregoing list of factors is not exhaustive. For discussion of these and other factors that may cause actual results to differ from expectations, look under the captions “Forward-Looking Statements” and “Risk Factors" of Regions' Annual Report on Form 10-K for the year
Slide 27: Regions
A REGIONS REGIONS
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