Regions Financial Corporation · NYSE:RF
Regions Financial — BancAnalysts Association of Boston Fall Conference 2014
21 slides from Regions Financial's conference presentation, Nov 7, 2014
Slide 1: BancAnalysts Association of Boston Fall Conference
BancAnalysts Association o of Boston Fall Conference November 7, 2014 David Turner Chief Financial Officer 1 Deron Smithy Treasurer Exhibit 99.1
Slide 2: Agenda
Agenda • Footprint positioning • Deposit gathering using multiple channels • Retail network strategy • Deposit strategies • Interest rate sensitivity • Liquidity management 2
Slide 3: Footprint positioning: High Market Share, High Growth Markets
($ in billions) National Average: 3.5% Source: SNL Financial as of 6/30/14 Note: Core Markets include AL, FL, LA, MS, AR, TN Weighted Average Deposit Market Share in Regions’ Core Markets Rank Name Market Share 1 Bank of America 11.3% 2 Wells Fargo 9.7% 3 Regions 9.0% 4 SunTrust 6.6% 5 JPMorgan Chas
Slide 4: Optimizing channel integration to drive deposit convenience
Optimizing channel integration to drive deposit convenience 4 › 1,671 locations › Continues to be #1 sales generator › More than 80% of sales occur in a branch › Experimenting with several new designs, technologies and universal banker roles › 37% of customers use mobile technology › Customers using
Slide 5: Channel activity
Channel activity 5 Channel Integration Total branch outlets Product unit sales by channel (in thousands) 2% Decline since 4Q12 13.6% Increase since 2012 Branch interactions (in millions) 11% Decline since 2012 Mobile banking 166% Increase in interactions since 2012 1117 1141 1262 99 114 96 127 146 1
Slide 6: Retail network strategy
6 Retail network strategy F = Flagship – (8,000 - 10,000 sq feet) • Large, highly visible prime locations • Larger staff, focused highly on sales and customer service • Advanced technology • Full Line of Business compliment N = Neighborhood – (2,500 - 4,000 sq feet) • Commitment to smaller footprint
Slide 7: Retail network strategy
7 Retail network strategy F = Flagship – (8,000 - 10,000 sq feet) • Large, highly visible prime locations • Larger staff, focused highly on sales and customer service • Advanced technology • Full Line of Business compliment N = Neighborhood – (2,500 - 4,000 sq feet) • Commitment to smaller footprint
Slide 8: Retail network strategy
8 Retail network strategy F = Flagship – (8,000 - 10,000 sq feet) • Large, highly visible prime locations • Larger staff, focused highly on sales and customer service • Advanced technology • Full Line of Business compliment N = Neighborhood – (2,500 - 4,000 sq feet) • Commitment to smaller footprint
Slide 9: Retail network strategy
9 Retail network strategy F = Flagship – (8,000 - 10,000 sq feet) • Large, highly visible prime locations • Larger staff, focused highly on sales and customer service • Advanced technology • Full Line of Business compliment N = Neighborhood – (2,500 - 4,000 sq feet) • Commitment to smaller footprint
Slide 10: Video Teller Machine (VTM)
Video Teller Machine (VTM) • Overview • VTM provides customer convenience and extended hours • Links a customer to a Contact Center banker via video • Banker can complete nearly all the transactions offered at a branch including non-card transactions/activities • Easily deployed throughout the footp
Slide 11: Continued focus on growing non-interest revenue and managing expenses
Continued focus on growing non-interest revenue and managing expenses Non-interest revenue • Growing checking accounts and quality households • Continued expansion of Now Banking® • Focused on growing Wealth Management • Increasing opportunities within the Corporate Bank Non-interest expense • Expen
Slide 12: Well positioned deposit base adds considerable value
Well positioned deposit base adds considerable value 12 33% 28% 23% [VALUE]% 7% $94B Interest-free Money market Interest-bearing checking Time Savings Deposits – Composition(1) 42% 20% 38% Individual Small Business Business Deposit Composition(1) (1) As of 2Q14 (2) Source: SNL Financial – Bank Call
Slide 13: Deposit mix vs. peers
Deposit mix vs. peers(1) 0% 10% 20% 30% 40% 50% Peer #1 Peer #2 Peer #3 Peer #4 RF Peer #5 Peer #6 Peer #7 Peer #8 Peer #9 Peer #10 Peer #11 • Regions’ comparative concentration in non- interest bearing deposit categories indicate a relatively less interest sensitive funding base • Regions' deposits
Slide 14: Net interest margin (NIM) summary
Net interest margin (NIM) summary • NIM has remained stable despite the impacts of a low-rate environment due largely to efficiencies in deposit and funding costs • However, further continuation of rates at current levels will put moderate pressure on NIM over time • Naturally asset sensitive positi
Slide 15: Interest rate risk management
15 Interest rate risk management Assumption sensitivity analysis (1) As of 3Q14 (2) 12 month NII sensitivity to gradual, parallel changes in interest rates over six months versus a market forward rate scenario (3) Assumes reinvestment into wholesale funding Standard shock scenario + 200bps(2) $242 $
Slide 16: Favorable liquidity and funding mix
Note: Data as of 6/30/14 Peer banks include BBT, CMA, FHN, FITB, HBAN, KEY, MTB, PBCT, PNC, STI, USB, WFC, ZION Source: Form 10-Q filings Favorable liquidity and funding mix 16 16 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 68% 73% 78%
Slide 17: Well positioned for the liquidity coverage ratio
Well positioned for the liquidity coverage ratio without significant balance sheet changes • Low loan to deposit ratio (81%) and low funded debt/earning assets (4.1%) provides greater flexibility to fund future loan growth • Lower reliance on market rate funding supports favorable LCR and interest r
Slide 18: Regions
A. REGIONS
Slide 19: Appendix
ELAS EY EDEL IY YY EY EY ED LEED DY EY SOE ELE EY SEY OO Li ES EY LS LB Appendix Ax REGIONS +9
Slide 20: Standard shock scenario model assumptions
Standard shock scenario model assumptions 20 Category Assumption Interest rates 200 bps gradual ramp (parallel increase over 6 months above market forward rates) Loan balances Moderate increase Deposit balances Moderate increase in aggregate balances, rate shock includes rate-related shift in deposi
Slide 21: 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
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