Regions Financial Corporation · NYSE:RF
Regions Financial — Q3 2012 Earnings Presentation
19 slides from Regions Financial's earnings presentation, Oct 23, 2012
Slide 1: Regions Third Quarter 2012 Earnings Conference Call
Exhibit 99.3 Regions 3rd October Quarter 23, Financial 2012 Earnings Conference Call
Slide 2: Regions Financial Highlights
BOTTOM 3Q12 Diluted Pre-tax $0.21 EPS million Income1 $481 Regions $0.22 Operations diversifying streamlining improving providing ensuring further Simply (1) Non-GAAP– from Financial strengthening Pre-provision put, EPS is superior new Continuing productivity focused -LINE Regions and processes tech
Slide 3: Financial Highlights
($11) 2Q12 3Q11 3Q12 From $(33) -3% $(21) $817 $838 $850 Non-Interest 20 533 507 Pre-tax 2% 19 3% 27 869 842 850 -6% (32) -4% (22) 481 503 513 -49% (249) -1% (3) 262 265 511 Loan -47% (73) 4% 10 (229) (239) (156) 2 7 33 26 355 Preferred -91% (322) (54) (71) — 71 54 from 225 11% 32 312 280 (87 4 14 O
Slide 4: Commercial and Industrial Loans Have Grown Almost 10% Over Prior Year
COMMERCIAL Commercial Investor Indirect * Averageauto real Balances & estate experienced industrial ANDtotaled INDUSTRIAL loan line a$8.7 record utilization balances billion quarter LOANS* aton rose quarter as anproduction 60 average basis HAVE end and basis points GROWN increased hasincreased to no
Slide 5: Funding Mix Continues to Improve; Deposit Costs Declined
FUNDING Avg. 4Q12—$3B 1H13—$4.9B 2H13—$2.3B Deposit Total * Average time funding repricing costs deposits Balances MIX atdeclined costs at 2.10% 1.69% 0.66% CONTINUES opportunities as improved a4%bps of linked avg. toremain, TO 56deposits bps, quarter, IMPROVE maturities down decreased down 19 ASbps
Slide 6: Net Interest Margin Impacted by Continued Low Rate Environment
•NET $ $859 3.08% 3.09% 3.16% 3Q11 3.04% Net (1) 6 REGIONS Net Securities Recoveries Cash inFrom Interest millions INTEREST $858 interest 4Q11 3.08% reserves continuing $839 portfolio 1Q12 Income Margin of margin interest negatively $850 MARGIN 2Q12 and (FTE) operations yield was $830 on 3Q12 Net im
Slide 7: Record High in Mortgage Income Drives Non-Interest Revenue
RECORD Non-interest At Mortgage the endloan revenues HIGH ofrevenue the production third INincreased MORTGAGE increased quarter of approximately 18% we 5%reached linked INCOME linkedquarter 1.2 quarter $2.2 DRIVES billion billion andin56% NON-INTEREST HARP reflects overIIlast an loans, increase year
Slide 8: Non-Interest Expenses Impacted by Credit Expenses
NON-INTEREST Non-interest Other Held Overall (1) 8 From for real 2012 sale continuing estate expenses experienced expenses expenses EXPENSES operations were from net increased up continuing gains 3% IMPACTED adjusted linked of$3$17 million operations toquarter million exclude BYover CREDIT due relat
Slide 9: Continued Momentum in Asset Quality Metrics
CONTINUED MOMENTUM IN ASSET QUALITY METRICS
Slide 10: Capital Ratios Remain Strong
•CAPITAL (1) (2) (3) (4) Basel Loan Current Non-GAAP Includes Based to IIIdeposit on Tier RATIOS Quarter Series ending 1–Common ratio See Aratios REMAIN balances Preferred appendix remains are ratio(2) estimated STRONG low, Stock for estimated reconciliation allowing and associated under Regionsthe
Slide 11: Appendix
APPENDIX
Slide 12: Forward-Looking Statements
FORWARD-LOOKING This of to statements management’s general statements. Additionally, liquiditliquidity capital. requirements ›unfavorable Possible Regions’ Changes Statements” 10-Q The which aremadefrom Possible differ 1995 Dodd-Frank cost effects foregoing words presentation for speak All assumptio
Slide 13: Non-GAAP Reconciliation: Income and EPS Excluding Goodwill Impairment
NON The financial accordance and predicting dividends purposes: of management measures results accrues As ($ 9/30/11 12/31/11 03/31/12 06/30/12 09/30/12 Preferred $301 54 71 A $141 $(81) $239 $351 731 impairment C Net $129 B $101 $(602) $145 ($284 4 (11) 14 (467) shareholders 3 D Goodwill 87 (135) 1
Slide 14: Non-GAAP Reconciliation: Pre-Tax Pre-Provision Income
NON-GAAP The (non-GAAP) assist Regions’ operations. management. by particular, 3Q12 185 continuing income excluding stakeholders $Pre-Tax investors 3Q12 (135) from business. goodwill aoperations Regions $($ measure Pre-Provision continuing RECONCILIATION: .Non-GAAP 87 Regions amounts in in$analyzing
Slide 15: Non-GAAP Reconciliation: Fee Income and Efficiency Ratios
NON The shows meaningful efficiency income GAAP), management assess indications applied Securities 913 losses, $ 1,351 $table -GAAP 871 the net on by $which below 1,338 performance impairment, fee ratio. $(12) aof management information 850 fully believes RECONCILIATION: ratio ongoing is (12) $Non-i
Slide 16: Non-GAAP Reconciliation: Tier 1 Common
NON -GAAP RECONCILIATION: TIER 1 COMMON The following assessed Assessment While calculate useful capital category adjusted, made (non-GAAP) data) Accumulated (345) (regulatory) stock common9/30/12 -to (432) not to framework, - Tier (3,429) ais provide equity risk-based it comprises prescribed bank’s
Slide 17: Non-GAAP Reconciliation: Tier 1 Capital Ratio
NON-GAAP Regions’ presents period ($ comprehensive Disallow 10,118 of 91,449 quarter amounts Regions presented. $92,786 amounts the 13,270 Series edcommon in calculations servicing RECONCILIATION: millions) Tier (income) A$and The preferred 12,139 1stock the capital amount assets 9/30/12 resulting o
Slide 18: Non-GAAP Reconciliation: Basel III
NON -GAAP RECONCILIATION: BASEL III Thenot June Supervision 2012, fully year received are from ability 14,901 otherfollowing period. 2012. phased Regions’ adjustments U.S. to formally Non-qualifying through assess Regulators Regions The (the -in, table disclosed Regions’ defined Basel calculations “
Slide 19: Regions
REGIONS