Regions Financial Corporation · NYSE:RF
Regions Financial — Q3 2010 Earnings Presentation
14 slides from Regions Financial's earnings presentation, Oct 26, 2010
Slide 1: Regions Financial 3rd Quarter Earnings Conference Call
Exhibit 99.3 * * ************** * ************** Regions Financial ************** 3rd Quarter Earnings Conference Call ************** October 26, 2010 **************
Slide 2: 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 3: Summary of Third Quarter 2010 Results
Summary of Third Quarter 2010 Results › Loss per diluted share of $0.17 › Pre-tax pre-provision net revenue (“PPNR”) of $454 million › Net interest income increased $12 million and net interest margin expanded 9 bps to 2.96% › Non-interest revenues decreased $6 million or 1% reflecting lower service
Slide 4: Non-performing Asset Levels Decline, but Remain Elevated
Non-performing Asset Levels Decline, but Remain Elevated $ in millions $5,000 $4,500 $4,095 $4,316 $4,019 $3,833 $4,000 $3,720 $610 $607 $546 $3,500 $504 $461 $3,000 $2,500 $2,000 $3,488 $3,706 $3,216 $3,473 $3,372 $1,500 $1,000 $500 $0 3Q09 4Q09 1Q10 2Q10 3Q10 OREO & Repo NPL (excluding HFS) › NPLs
Slide 5: De-risking through Asset Dispositions
De-risking through Asset Dispositions › Significant de-risking: $1.0 billion of troubled assets sold or transferred to held for sale in the third quarter of 2010 › $709 million in total closed distressed asset sales › $350 million in bulk distressed asset sale (included in $709 million above) › $332
Slide 6: Higher Loan Charge-Offs Reflect Asset Dispositions
Higher Loan Charge-Offs Reflect Asset Dispositions $ millions $680 $692 $700 $651
Slide 7: Commercial and Industrial Growing; Investor Real Estate Reflects De-risking Efforts
Commercial and Industrial Growing; Investor Real Estate Reflects De-risking Efforts Ending Balances ($ in millions) 6/30/2010 9/30/2010 $ Change % Change Commercial & Industrial $ 21,096 $ 21,501 $ 405 2% Commercial Real Estate - Owner-Occupied 12,514 12,372 (142) -1% Investor Real Estate 18,930 17,
Slide 8: Decline in Deposit Costs Driven by Changing Deposit Mix
Decline in Deposit Costs Driven by Changing Deposit Mix Average Balances and Average Rates ($ in millions) 3Q10 Avg Rate 2Q10 Avg Rate % Change % Change Low Cost Deposits $ 69,917 0.17% $ 71,119 0.23% $ (1,202) -2% Time Deposits 25,100 2.16% 26,872 2.29% (1,772) -7% Customer Deposits 95,017 0.70% 97
Slide 9: Net Interest Income Improves Despite Decline in Earning Assets
Net Interest Income Improves Despite Decline in Earning Assets $ in millions › Net interest margin $900 3.00% climbed 9bps linked $890 quarter; up 24 bps year-to- $880 $876 date $870 $863 2.90% › Repricing opportunity $860 $853 $857 remains with over $11.4 $850 billion of CD’s maturing at $840 $839
Slide 10: Solid non-interest revenue; focused expense management
Solid non-interest revenue; focused expense management › Non-interest revenue 1% lower versus prior quarter › Service charges income reflect impact of Regulation E › Mortgage income remains strong due to refinance activity › Morgan Keegan’s brokerage revenues were solid reflecting strength in privat
Slide 11: Capital Ratios Remain Solid
Capital Ratios Remain Solid Pro forma for Basel III (1) (2) 2Q10 3Q10 3Q10 Total Risk-Based Capital 15.9% 16.0% 14.7% Tier 1 Capital 12.0% 12.1% 11.3% Tier 1 Common 7.7% 7.6% 7.8% › BASEL III impact expectation: › Tier 1 common well above the minimum level › Well positioned with respect to the Liqui
Slide 12: Impact from Regulatory Reform Manageable
Impact from Regulatory Reform Manageable Issue Impact to Regions Regulation E Impact from Reg E to be less than originally forecasted due to better than expected customer response to opting-in to programs nd >Original forecast for 2 half of 2010: $72 million >New forecast: $50 - 60 million for secon
Slide 13: Solid and Tested Foreclosure Process
Solid and Tested Foreclosure Process › Committee of key managers approves the decision to proceed with foreclosure › Same process for loans owned by Regions or an investor › Mortgage foreclosure affidavits signed by a department manager in the presence of a notary › Low foreclosure volumes › 100 Reg
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