Regions Financial Corporation · NYSE:RF
Regions Financial — Q3 2014 Earnings Presentation
16 slides from Regions Financial's earnings presentation, Oct 21, 2014
Slide 1: 3rd Quarter 2014 Earnings Conference Call
3rd Quarter 2014 Earnings o Conference Call October 21, 2014
Slide 2: Remaining prudent and disciplined
Remaining prudent and disciplined • Growing customer base and 3Q14 Highlights Focused on deepening relationships • Net income available to banking • Meeting diverse range of common shareholders of fundamentals customer needs while $305 million and diluted appropriately managing risks EPS of $0.22 •
Slide 3: Loans
Loans Ending Loan Balances ($ in millions) • Consumer lending portfolio increased $120 $75,892 $75,680 $76,513 $76,607 $74,609 million from 2Q 29,156 28,641 28,590 28,796 28,916 • Growth led by indirect auto lending 46,736 45,968 47,090 47,717 47,691 • Credit card balances increased 2% from prior qu
Slide 4: Deposits and funding costs
Deposits and funding costs Ending Deposit Balances Average Deposit Balances ($ in millions) ($ in millions) $92,080 $92,051 $92,925 $92,989 $93,971 $92,321 $92,453 $93,393 $93,822 $94,130 9,419 9,067 8,856 9,676 9,219 8,951 8,767 10,417 9,888 10,066 82,255 82,777 84,174 84,871 85,363 81,663 82,163 8
Slide 5: Net interest income and net interest margin
Net interest income and net interest margin • Net interest income (FTE) flat versus prior quarter, while net interest Net interest income and net interest margin ($ in millions) margin declined 6 basis points • Net interest income benefited from $846 an additional day in quarter and $838 $837 $837 $
Slide 6: Non-interest revenue
Non-interest revenue Non-interest revenue ($ in millions) • Non-interest revenue up 5% from 2Q $526 $495 $478 $457 • Service charges increased 4% from 2Q 60 134 $438 66 83 57 • Capital markets income increased $8 111 84 90 90 million from 2Q, primarily related to 89 52 43 39 40 43 increase in real e
Slide 7: Expenses reflect investments in talent and technology
Expenses reflect investments in talent and technology Adjusted non-interest expenses(1) • Salaries and benefits increased $13 million ($ in millions) 6% Decrease(2) – primarily driven by increase in headcount and related benefits and incentives $879 $883 • Furniture and equipment related expenses $8
Slide 8: Solid asset quality
Solid asset quality Net charge-offs and ratio NPLs and coverage ratio(3) ($ in millions) 34% Decline(1) ($ in millions) 38% Decline in Total NPLs(1) $1,354 137% 141% $1,082 $1,070 $899 $837 124% 118% 114% 3Q13 4Q13 1Q14 2Q14 3Q14 NPLs Coverage Ratio Criticized and classified loans(4) Troubled debt r
Slide 9: Strong capital and solid liquidity
Strong capital and solid liquidity Tier 1 capital ratio(1) • Expect to begin executing $350 million share repurchase program shortly, as 12.5% 12.7% previously planned 11.8% 11.5% 11.7% • Basel III Common Equity Tier 1 ratio(1)(2) estimated to be approximately 11.2%, which is well above minimum thre
Slide 10: Appendix
Appendix A REGIONS 10 PSS SS SL PLP SP PPL PSP LP LLP LLP LP LSP LPL LLLP LLL Lf Z|
Slide 11: Non-GAAP reconciliation: Non-interest expense and efficiency/fee income ratios
Non-GAAP reconciliation: Non-interest expense and efficiency/fee income ratios The table below presents computations of the efficiency ratio (non-GAAP), which is a measure of productivity, generally calculated as non-interest expense divided by total revenue. The table also shows the fee income rati
Slide 12: 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 13: Non-GAAP reconciliation: Net charge-off ratio
Non-GAAP reconciliation: Net charge-off ratio Select calculations for annualized net charge-offs as a percentage of average loans (GAAP) are presented in the table below. During the fourth quarter of 2013, Regions made the strategic decision to transfer certain primarily accruing restructured reside
Slide 14: Non-GAAP reconciliation: Basel III common equity Tier 1
Non-GAAP reconciliation: Basel III common equity Tier 1 The following table provides calculations of “common equity Tier 1" (CET1) (non-GAAP), based on Regions’ current understanding of the Final Basel III requirements. In December 2010, the Basel Committee on Banking Supervision (the “Basel Committ
Slide 15: Forward-looking statements
Forward-looking statements This presentation may include forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995, which reflect Regions’ current views with respect to future events and financial performance. Forward-looking statements are not based on historica
Slide 16: Regions
A. REGIONS