Regions Financial Corporation · NYSE:RF
Regions Financial — Barclays Capital Americas Select Conference 2011
31 slides from Regions Financial's conference presentation, May 23, 2011
Slide 1: Barclays Capital Americas Select Conference
EXHIBIT 99.1 Exhibit 2011 London Grayson President Barclays 99.1 May Hall and23, Chief Capital 2011 Executive AmericasOfficer Select Conference
Slide 2: Why Regions?
2•Why Experienced Comprehensive Exceptional Leading Strong Regions? Southeastern capital, brand service management favorability reserves line quality of United product and liquidity States offerings footprint
Slide 3: Regions at a glance: regional footprint
Regional HQ: Houston Chicago Dallas San Kansas Indianapolis St. Louisville Nashville Birmingham New Atlanta Ranked 3*Miami AsLouis Antonio Birmingham, of Orleans City May 4th Austin Bank Memphis Lexington or17, Raleigh Jacksonville Better Focused 2011 ALin Charlotte Associates: Market in Tampa the S
Slide 4: Regions' Market Footprint Characterized by Growth
Regions’ ($ Market Birmingham, Nashville, 3.4% 9.6% % Atlanta, St. Jackson, New Mobile, National Southeastern IA Projected Population 9.0 8.0 7.0 6.0 5.9 4Source: 2in IL Louis, and to or 4.3% billions) Orleans, Miami, IN 8.9 7.9 6.9 less Market above SNL AL GA Average: AR MS Footprint MO TN Growth $
Slide 5: Regions Positioned in Core Growth Markets
Regions Weighted 9876432110-’15 10 Source: 5Note: Toronto-Dominion Wells Citigroup PNC U.S. Bank JPMorgan Regions SunTrust BBVA BB&T Capital Synovus Regions Hancock Regions’ Bancorp Market 2.6% of Fargo SNL is /2.3% 1.5% One Average Compass America 6.1% Well 1.6% 1.7% 5.9% 1.4% 3.7% Holdings Chase 1
Slide 6: Experienced Management Team
Experienced O.B. Fournier General years Matthew John Head David Chief 6*Industry Indicates Grayson B. Current of Administrative Executive Risk Financial Turner, B.Owen Counsel Consumer Experience: Gale Lusco Edmonds Officer attendance Management Role: Hall, Jr.* Officer Officer Services Jr.* <131 40
Slide 7: Our Primary Focus
Our primary Focus Drive Build 7Execute for Financial onwith Our the focus Customer Excellence Future Performance is returning to sustainable profitability through disciplined execution of our strategic priorities
Slide 8: Comprehensive, Diverse Total Revenue
Comprehensive Diverse Total Commercial: Consumer: Non-Interest Deposit –Mortgage 1. Net Other Service 8Brokerage Small CRE Equipment Home Direct Indirect 1,200 Customer Strong Migration Growth Mortgage 2010 Interest Revenue 6%Mortgage financial total and Range Service Equity Lending performance Auto
Slide 9: Quality Portfolio and Business Growth
Quality Portfolio Business 62% ›Consumer 9*Ending Focused Represents Broad 65% C&I Growing Consumer Loan Indirect 38% line of production Loans based Balances areas Mix* Services auto on utilization Services consumer loan over middle middle-market lending Key experienced growth 80% intomarket mortgag
Slide 10: Regions Commercial Momentum Continues
Regions Commercial 1Q10 1.6% 2.7% 0.6% 1.9% 0.3% -2.7% -1.4% -2.4% -4.0% -3.0% -2.0% -1.0% 0.0% 1.0% 2.0% 3.0% 4.0% (1) 3Our Momentum 10consecutive Peers commercial vs.Commercial include: 2Q10 continues Loan quarters vs. loan BAC, Growth 3Q10 Loan portfolio in ofBBT, 2011, vs. growth Growth 4Q10 CMA
Slide 11: What Makes Us Different? Outstanding Customer Service
Competitive What Outstanding customers’ (1) (2) #1 Top Customer Regions 11 in Based Bank Customer Makes continues received on Service inneeds customer Advantage Customer Us Gallup Prime Service Different? allows Excellence Study toPerformance survey perform growth Service and Driven Regions “Friendl
Slide 12: Excellent Brand Favorability
Excellent Regions (1) (2) 12 BasedBank Bankshas Service on in the study 4#2 Quarter Highest Bank Quality include: Rolling #3 Brand and Bank Bank Brand Average Favorability #4 of Bank America, Strength from #5 (1) Bank TNS BB&T, Being #6 Consumer Recognized BBVA Bank #7 Compass, Banking Bank #8Market
Slide 13: Great Strides in Improving Deposit Mix and Costs
We 1Q11 4Q10 1Q10 Deposits Time 100 64 Deposit 559 41 13bps bps Have bps Improvement Improvement Cost Low MadeCost Great 30% 25% 24% Strides Deposits in Improving 70% 75% 76% Deposit Mix and Deposit Costs
Slide 14: Net Interest Margin Impact of Excess Liquidity and Non-Accruals
$Impact $950 $550 $876 3.00% Net 1Q10 2.0% 2.2% 2.4% 2.6% 2.8% 3.0% 3.2% 3.4% Reported 3.27% 3.06% 0.16% 0.08% 0.11% 0.15% 0.17% 0.12% 2.96% 14 2.77% in Interest Income millions $900 $500 $886 2Q10 2.96% 3.33% 0.16% 3.07% 3.00% 2.87% of Net Excess $850 $863 & Income Margin 3Q10 Interest 2.87% 3.19%
Slide 15: 1Q11 Highlights
1Q10 ($ (Loss) Net millions) 1Q11 Core *›+4.0% 15 Improvement Credit Refer inInterest millions, Non- Revenue Earnings $863 4Q10 Available to losses Revenue appendix +Total Income 1Q11 $764 except improved in Highlights toCore adjusted =(255) for $$1,627 EPS) 831 Interest reconciliation dramatically,
Slide 16: Strong Capital and Solid Liquidity
Strong 12.0% Capital 7.7% 12.5% 12.4% 11.1% 11.7% 7.1% Tier Loans 89.7% 1Q10 84.4% *Basel 16Pro17.6% forma III 2Q10 Common /89.3% 12.1% Capital Deposits is expected 7.9% 3Q10 - Subject 88.9% and Tier 7.9% 4Q10 Solid to 287.6% to7.5% have change 1Q11 Liquidity minimal 1Q11 as interpretation Basel imp
Slide 17: Positive PPNR Momentum Towards Sustainable Profitability
Positive PPNR ($ ($22) ($221) ($306) ($165) ($373) ($793) $1,400 4Q09 $460 $461 $454 $486 $397 $386 $482 $682 $760 $651 $770 $1,179 Loan *PPNR 17 millions) Loss 1Q10 Less $1,200 adjusted Momentum Provision Provision 2Q10 $1,000 for 3Q10 non-core Towards $800 4Q10 $600 Our items 1Q11 $400 Sustainable
Slide 18: Significant Reduction in Higher Risk Real Estate Segments
Significant Total $30 Mortgage 1Q11 $14.8 $25.8 $Higher $7 Land $1.1 $5.0 $0.3 $2.3 $1.4 $6.3 4Q06 Reduced 18in$6 $25 billions Investor Condo 1Q11 $5Risk $20 Investor High $4 Construction Reduction $3 Investor Single $15 Real Risk $2$10 Real $1 Estate Family Segments Real $5 $0 inEstate $0 Highest E
Slide 19: Non-Performing Loan Inflows and Delinquencies Decline
Non-Performing NPL $1.6 $1.0 $1.3 $0.7 $1.2 Land/Condo/Single ($ Delinquencies $2,500 402 593 $1,761 2Q10 780 419 612 $1,811 1Q10 978 389 700 $2,067 410 585 $1,637 $1,608 30-59 1Q11 676 19 in642 766 $1.4 Inflow billions) millions) 2Q10 Days $2,000 527 3Q10 4Q10 $1.2 405 60-89 3Q10 by$1,500 $1.0 Type
Slide 20: Favorable Non-Performing Loan Trends
Favorable $Non-Performing $5.0 $0.3 $4.3 $3.7 $4.2 $3.5 $3.4 $3.9 $3.2 NPL $3.1 Current 40% Business 1Q11 38% 4Q10 37% 3Q10 36% 2Q10 24% 1Q10 ›28% 20 Non-performing Delinquencies Business in billions $4.6 $0.6 $0.3 $0.4 30% OREO&Services $4.5 $0.5 $0.4 20% Trend Paying Services & $4.0 Repo 10% conti
Slide 21: Substantial Loan Loss Allowance Coverage Remains Strong
Substantial $Loan $1,000 $700 $651 $385 $233 $178 $759 2Q10 $333 $682 $481 4Q10 $402 Business HFS Allowance 4.30% 4.04% 4.20% 1.01x 0.92x 1.08x 0.86x 3.81%3.79% 1Q10 NPL (1) 21inLoan millions (1) /$165 $205 $186 $348 $169 Charge-Offs 2Q10 1.03x 3.99% 1.02x Loans 4.20% 0.94x $900 charge-offs Services
Slide 22: Why Regions?
•Why 22 Experienced Comprehensive Exceptional Leading Strong Regions? Southeastern capital, brand service management favorability reserves line quality of United product and liquidity States offerings footprint
Slide 23: Appendix
Appendix Ay REGIONS | 2
Slide 24: Forward-Looking Statements
Forward-Looking This provides looking are information results banking process, this restrictions whose economic Potential Possible Regions’ Changes The Factors” .The Commission. of 24 the related time. Dodd-Frank impact current cost effects foregoing presentation words date terms tostatements. regul
Slide 25: Non-GAAP Reconciliation
Non-GAAP 1Q10 ($ Net Leveraged Non-interest Regulatory Adjustments: Loss Securities Branch Adjusted 25 ininterest millions) (gain) on 2Q10 consolidation extinguishment total non-interest pre-tax (gains) impairment, lease charge, on income 3Q10 Reconciliation income expense revenue sale termination p
Slide 26: Improving Early Stage Credit Metrics
Improving 30-59 (31%) $978 90+ (25%) $700 Business (27%) ($ $12,487 $8,820 1Q10 Criticized *Includes 26 inDay millions) $780 $612 2Q10 Day Decline $8,196 $11,337 Delinquencies Services classified Classified Early Delinquencies $766 $593 3Q10 $7,929 $642 $585 Stage $10,593 4Q10 Criticized loans $676
Slide 27: ...Result in Improving Asset Quality
…Result NPLs (41%) $1,229 NPAs (37 $1,303 (17%) $3,705 Total (14%) ($ $4,572 1Q10 27 in%) millions) NPLs NPAs 2Q10 Gross (including Decline Decline $799, $865 $3,473 $4,275 In (including Improving 3Q10 Migration $1,410 $1,340 $3,372 $4,226 HFS) 4Q10 $1,021 $947 $3,160 $3,918 HFS) Asset Gross 1Q11 $7
Slide 28: Credit Fundamentals Strengthening
Credit NCO’s (25%) 3.16% (8%) 5.92% NPAs ($ $5,272 NPL (36 28% 1Q10 28 in%) 24% Balances millions) Decline 2Q10 +Decline Fundamentals 2.99% 5.63% Avg Increase $4,887 9036% Day day Loans 3Q10 3.52% 5.65% Paying $4,819 37% Delinquencies Delinquencies/Loans 4Q10 38% 3.22% 5.38% Strengthening Current $4
Slide 29: Allowance for Loan Losses Increasing to Total Loans
20%Increase 86% Allowance 9% 3.61% 1Q10 29 Increase 92% 2Q10 3.71% 94% Coverage for 3Q10 3.77% Loan 101% 4Q10 Losses 3.84% Increasing 103% 1Q11 to 3.92% Total NPLsLoans
Slide 30: Conservative Impaired Loan Marks
Conservative Impaired Charge-Offs Legal ($ Residential Home Total Note1: Note 30 millions) 2: 3: Commercial Indirect Consumer 5,147 Balance Equity Impaired Book Legal Loans First 685 Book Marks 397 Value and balance Applied 229 as 1,600 loans Mortgage Other 14 and Real 1,379 Investor Value ofreprese
Slide 31: Adequately Reserved Troubled Debt Restructurings
Adequately March ($ Balance Accruing: Non-accrual Commercial Investor Residential Home Other Total 31 millions) Accruing Troubled Non-accrual Consumer Equity 31, Credit Real 2011 First Reserved Loan or $Estate 355 28 72 120 Debt $Losses 90+ Mortgage 4164 1,553 $Allowance 50 or 14% 0$9DPD: 1230 208 R
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