Regions Financial Corporation · NYSE:RF
Regions Financial — Investor Presentation (February 2022)
77 slides from Regions Financial's investor presentation, February 2022
Slide 1: Investor Information
Exhibit 99.1 Investor Information February - March 2022
Slide 2: Table of contents
Table of contents Topic Page # Profile and Strategy 3-9 Income Statement 10-26 Business Segment Highlights 27-30 Balance Sheet 31-36 Capital, Debt & Liquidity 37-40 Technology & Continuous Improvement 41-45 Credit 46-49 Near-Term Expectations 50 Environmental, Social & Governance 51-54 LIBOR Transit
Slide 3: Our banking franchise
Our banking franchise Ranked 18th in the U.S. in total deposits(1) Line of business coverage Ascentium EnerBank First Sterling Business Capital Capital Markets Commercial Banking Corporate Banking Equipment Finance Government/Institutional Institutional Services Birmingham, Alabama Private Wealth Re
Slide 4: Top market share plays a valuable role in the competitive landscape
Top market share plays a valuable role in the competitive landscape • Ranked 18th in the U.S. in total Markets with top 5 market share(1) deposits(1) • 86% of deposits in 7 states: Alabama, Tennessee, Florida, Louisiana, Mississippi, Georgia, Arkansas • Top 5 or better market share in ~70% of MSAs a
Slide 5: Strong in-market migration has converted legacy core markets into growth markets
Strong in-market migration has converted legacy core markets into growth markets Market '22-'27 Population Top Faster Growing MSAs Deposits Rank(1) Growth(1) Birmingham, Alabama $14.9 2 16 of top 25 U.S. markets with Nashville, Tennessee $10.8 3 net migration inflows are within Tampa, Florida $7.2 4
Slide 6: Strong recovery within footprint
Strong recovery within footprint Projected Employment Recovery Expectations by Region(1) Q2 2022 Q3 2022 Q1 2023 Q2 2023 • Majority of RF footprint will likely return to pre-pandemic employment levels by 2Q22 with the South experiencing the strongest consumer spending recovery compared to other regi
Slide 7: Regions receives top honors
Regions receives top honors Regions Bank earned Regions Bank Ranked Regions Bank Seven Years Strong: the Great Place to Highest in Customer Regions Bank named a Awarded Silver Regions Bank Again Company designation Satisfaction Work-Certified™ in J.D. Regions Bank named a Best Place to Work for Mili
Slide 8: Growing franchise value
Growing franchise value Market Capitalization(1) Total Assets(2) Total Deposits(2) Peer 1 $89B Peer 1 $573B Peer 2 $457B Peer 2 $89B Peer 2 $558B Peer 1 $456B Peer 3 $87B Peer 3 $541B Peer 3 $416B Peer 4 $34B Peer 4 $211B Peer 4 $169B Peer 5 $25B Peer 6 $188B Peer 6 $154B RF $24B Peer 5 $186B Peer 5
Slide 9: 2021 overview
2021 overview 4Q21 FY 2021 Net Income Available to $414M $2.4B Common Shareholders Diluted Earnings Per $0.43 $2.49 Share • 2021 reported pre-tax pre-provision Adjusted Total $1.6B $6.4B Revenue(1) income(1) represents the highest level on record. • 2021 adjusted pre-tax pre-provision Adjusted Non-
Slide 10: Consistent NIM performance aided by peer-leading loan yield
Consistent NIM performance aided by peer-leading loan yield Net Interest Margin vs. Peers(1) Loan Yield vs. Peers(1) 3.48% 3.45% 4.79% 3.40% 3.34% 4.59% 3.21% 3.38% 4.70% 3.31% 4.54% 4.15% 4.11% 2.85% 2.89% 2.72% 3.88% 3.61% 2018 2019 2020 2021 2018 2019 2020 2021 RF NIM excl. PPP/Cash (2) Peer Medi
Slide 11: NII & margin performance
NII & margin performance NII and NIM(1) ($ in millions) $1,017 $1,029 $976 3.40% 3.30% 3.34% 3.13% 2.76% 2.83% 4Q20 3Q21 4Q21 NII(1) NIM NIM excl. PPP/Cash(2) • In 4Q, deposit and cash balances remained elevated. • PPP and cash account for -51 bps NIM and $42M NII within the quarter (+3 bps / +$8M Q
Slide 12: NII & margin - core drivers
NII & margin - core drivers NII Attribution $1,019 Drivers of NII and NIM • Adjusted loan(1) growth excl. EnerBank in 4Q21 of +~$1.3B average and +~$2.4B ending $965 Stable core NII excluding loan • Rate environment impacts continue to be offset accrual adjustments through active balance sheet manag
Slide 13: Balance sheet profile
Balance sheet profile (as of December 31, 2021) • Balance sheet position naturally benefits from higher Portfolio Compositions interest rates (i.e. asset sensitive), supported by: Borrowings Assets(1) Liabilities 2% Other ◦ large floating rate loan and cash mix Other 2% 11% ◦ large, stable deposit b
Slide 14: Deposit surge and beta
Deposit surge and beta Pandemic-Related Deposit Growth Adds to Low-Cost, Stable Funding Base(1) $150 $150 $14 $137 $12 $14 Business/ Other $97 Deposits $100 $100 Business/ Other Deposits Low-beta deposits have grown considerably. Other $50 $50 pandemic era increases (approx. 2/3's) are assumed to Re
Slide 15: Asset sensitive balance sheet
Asset sensitive balance sheet Well positioned for rising short-term and/or long-term interest rates Short-term Rate Sensitivity Drivers Begin cycle more sensitive than the last, and will benefit from hedge maturities and potential for deposit outperformance 25bps rate hike adds +$60-80M of NII over
Slide 16: Adjusted NIM as Rates Rise
(1) Adjusted NIM as Rates Rise Adjusted(1) NIM Range by Rate Level Assumptions 3.85% As rates increase to more normal levels, Regions' NIM will naturally expand over the coming years 3.80% Mid-point assumes: 3.75% • Expected balance sheet growth consistent with 4%-5% average loan growth 3.70% • Depo
Slide 17: Future NII drivers
Future NII drivers NII is positioned to benefit from higher rates, as well as natural loan growth and strategic investments. Hedge proceeds (~$1.5B total return) and the capital generated have been invested into strategically important businesses, such as Ascentium and EnerBank. NII Drivers - Curren
Slide 18: Hedging strategy update
Hedging strategy update Net Receive Hedge Notional(1) Net Receive Hedge Notional(1) (Quarterly Avg) (Annual Avg) Active Hedge Notional 1mo. LIBOR 4Q21 Adjustments 3Q21 Adjustments 1H21 Adjustments 1 1Q22 2 2Q22 3 3Q22 4 4Q22 2 2022 3 2023 4 2024 5 2025 6 2026 (2,3,4) (2,3,4) Hedge Notional $20.5B $2
Slide 19: Interest rate exposure of future business to middle/long-term rates
Interest rate exposure of future business to middle/long-term rates Fixed Asset Production - Maturity Buckets(1) • NII benefits from higher middle and long-term rates through 40% future fixed-rate asset production and cash-flow reinvestment; ~70% of fixed rate assets full-year 2022 estimate: have ma
Slide 20: Non-interest income
Non-interest income QoQ highlights & outlook Change vs • Adjusted non-interest income decreased ~5%. 4Q21 3Q21 4Q20 • Newly announced NSF/OD policy changes combined ($ in millions) with 2021's previously announced changes will result Service charges on deposit accounts $166 2.5% 3.8% in FY22 service
Slide 21: Diversified non-interest income
Diversified non-interest income 4Q21 fee revenue by segment(1) Consumer ($ in millions) • Consumer fee income categories include service charges on deposit accounts, card and ATM fees, and mortgage income generated through origination and servicing of residential mortgages. Wealth Management • Wealt
Slide 22: Capital markets
Capital markets Growing products and services that our clients value Capital markets is an umbrella of several different products and services to meet the needs of Regions' clients. Product solutions generally fall into the categories of capital raising, risk management and advisory services. Capita
Slide 23: Deposit account policy changes
Deposit account policy changes Providing customers capabilities to be more financially sound Adjusted Non-Interest Income(1) Updated NSF/OD Policies ($ in millions) Regions is committed to making banking easier for $2,498 our customers. $2,109 Details of Regions' Announcement(2): • By end of 1Q22-El
Slide 24: Leverage operating advantage to grow mortgage share and relationships
Leverage operating advantage to grow mortgage share and relationships Market Prime Delivery Mortgage Investing Strength Portfolio Efficiency Servicing For Growth Closed mortgages 753 Avg. FICO 20% lower Servicing expense Investments in expected near origination and lower than peer people, process an
Slide 25: Non-interest expense
Non-interest expense Adjusted non-interest expense(1) QoQ highlights & outlook ($ in millions) • Adjusted non-interest expenses increased ~5%; includes $967 impact of 4Q acquisitions. $930 $918 ◦ Salaries and benefits increased 4% due to higher base salaries and incentive comp. 58.8% 55.8% 56.6% ◦ A
Slide 26: Industry leading PPI profile
Industry leading PPI(1) profile 2.38% 2.32% 4Q Adjusted PPI(1) to RWA(2) 2.18% 2.13% 2.12% 2.07% 2.03% 1.88% 1.88% 1.81% 1.79% 1.79% 1.59% 1.52% RF 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 • Regions' 4Q pre-tax pre-provision income (PPI)(1) remai
Slide 27: Business segments
Business segments 4Q21 Pre-tax pre- 4Q21 Average 4Q21 Average provision income(1) loans deposits 2% 5% 2% 8% 31% 37% 43% $651M 52% $87B $137B 61% 59% Consumer Corporate Wealth Management Other 27 (1) Pie %'s exclude the pre-tax pre-provision income from the Other Segment totaling $(2) million.
Slide 28: Consumer Banking Group
Consumer Banking Group Driving growth and customer engagement through strategic investments Continuing to Deliver Strong Creating Efficiencies Through an Strategic Investments Across Results Optimized Branch Network The Business Net Consumer Checking exceeded ~490 branch consolidations; ~80 De Novos
Slide 29: Corporate Banking Group
Corporate Banking Group Strong alignment across the businesses, risk partners, and product groups Strategic Investments Delivered Outstanding Invested in Talent & Expanded Expertise Performance Enablement Record Year for Revenue & Completed strategic Attracted top talent Profit acquisitions Strong C
Slide 30: Wealth Management Group
Wealth Management Group Focus on execution & investments to optimize the client and associate experience Customer Experience & Delivered Strong Strategic Technology Investments Communication Results(1) & Data Analytics Maintained strong momentum in Planned launch of hybrid robo- Strong NIR Growth ad
Slide 31: Loan growth momentum
Loan growth momentum Adjusted loans and leases(1) QoQ highlights & outlook • 4Q adjusted loans grew 7% on an ending basis (Average, $ in billions) and 6% on an average basis $84.3 ◦ Excl. ~$3B acquired EnerBank loans, $80.3 $79.8 full-year ending adj. loans increased 4% 27.4 27.1 30.3 and full-year
Slide 32: 4Q21 Average loan composition
4Q21 Average loan composition Average consumer loans Average business loans ($ in billions) ($ in billions) $17.4 $5.4 $0.2 $31.5B $42.3 $55.1B $5.5 $1.2 $1.2 $1.7 $6.3 $5.4 Mortgage Home Equity Commercial and Industrial CRE Mortgage - OO Other Consumer Other Consumer - Exit Portfolios CRE Construct
Slide 33: Commercial & IRE loans
Commercial & IRE loans As of 12/31/21 Total Outstanding ($ in millions) Commitments Balances % Utilization Administrative, Support, Waste & Repair $2,630 $1,489 57% •The outstanding balance for Agriculture 589 336 57% Real Estate within the Educational Services 3,923 2,975 76% Commercial section ref
Slide 34: PPP loan details
PPP loan details ($ in millions) 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 Round 1-average $ 3,213 $ 4,558 $ 4,143 $ 3,171 $ 2,401 $ 814 $ 288 Round 2-average — — — 627 1,500 1,324 800 Total-average $ 3,213 $ 4,558 $ 4,143 $ 3,798 $ 3,901 $ 2,138 $ 1,088 NII(1) $ 18 $ 31 $ 54 $ 40 $ 43 $ 31 $ 39 Round 1-en
Slide 35: Deposit growth continues
Deposit growth continues Average deposits by segment QoQ highlights & outlook ($ in billions) $136.7 • Pace of deposit growth has slowed, balances $131.9 3.0 continued to increase to new record levels. 0.4 10.1 $119.8 9.9 0.4 • Average deposits QoQ growth primarily due to higher 8.9 account balances
Slide 36: Deposit advantage
Deposit advantage (1) Business Deposit Mix (1) Funding Mix - Current vs. Prior % of Total Deposits Balance in 4Q 2021 Average Rising Rate Cycle Accounts Less than $250k(2) ($ in billions) ($ in billions) $142 6% 64% $107 30% 57% Corporate 50% $43 12% 44% 44% 43% 42% 42% 26% 41% 38% 37% 35% Consumer
Slide 37: Capital and liquidity
Capital and liquidity Tier 1 capital ratio(1) Common equity Tier 1 ratio(1) 12.3% 10.8% 11.4% 9.8% 9.6% 11.0% 4Q20 3Q21 4Q21 4Q20 3Q21 4Q21 QoQ Highlights & Outlook • Common Equity Tier 1 (CET1) ratio decreased 120 bps in 4Q due primarily to non-bank acquisitions and share repurchases. Loan-to-depos
Slide 38: CET1 waterfall
CET1 waterfall 10.8% 0.7% 9.6% (0.1)% (0.2)% (0.4)% (1.2)% Common Pre-tax pre- RWA Dividend/ 4Q21 3Q21 Other(2) Acquisitions(4) provision Growth(3) Share CET1%(5) CET1% income(1) Repurchases (1) Non-GAAP; see appendix for reconciliation. (2) 'Other' includes impact of tax, provision, CECL deferral,
Slide 39: Investing for growth while maintaining focus on capital optimization
Investing for growth while maintaining focus on capital optimization 2014 2015 2016 2018 2019 2020 2021 Sold Regions Insurance Entered into second MSR Acquisition of Acquisition of Acquisition of Group; redeployed capital flow-deal arrangement Fannie Mae HUD (MAP) Freddie Mac generated to shareholde
Slide 40: Regions unsecured debt and credit ratings profile
Regions unsecured debt and credit ratings profile Debt maturity profile(1) Select credit ratings ($ in millions) Moody's S&P Fitch Regions Financial Corporation $900 Senior Unsecured Debt Baa2*+ BBB+ BBB+ 150 $800 $650 Subordinated Debt Baa2*+ BBB BBB 500 750 650 Regions Bank $100 300 100 Senior Uns
Slide 41: Empowered by innovation & data
Empowered by innovation & data Expanding Influence of Data & Personalization Platform Modernization ® Efforts Deposit & Lending Modernization Modernization of the Bank's Core Systems to Omnichannel view of customers for a enable product and service innovation “You Know Me & Value Me” experience New
Slide 42: Differentiating through customer experience
Differentiating through customer experience Digital Acceleration Innovating Operations Expanded Regions Secure Messaging Adoption Increased usage by ~270% from January 7% increase in digital users in 4Q21 2021 to December 2021 compared to 4Q20 12% increase in Mobile users in 4Q21 Automated Non-Agent
Slide 43: Continue to invest for the future
Continue to invest for the future System Maintenance New Technology Cybersecurity / Risk Management • Regions remains competitive by reserving ~10-11% of revenue for Technology Spend. • Past investment on innovation and strategy provided a firm, resilient foundation for addressing changes in custome
Slide 44: Growth in digital
Growth in digital Digital Usage Sales and Transactions Zelle Transactions (Millions) (1) Active Users (Millions) Digital Sales (Accounts in Thousands) +13% 2.3 +106% +208% 2.66 3.1 +22% 82.9 2.7 2.9 63.9 8.8 2.0 1.9 10.6 1.79 40.2 9.2 74.1 53.3 31.0 0.86 4Q19 4Q20 4Q21 4Q19 4Q20 4Q21 4Q19 4Q20 4Q21
Slide 45: Continuous improvement framework
Continuous improvement framework Simplify & Grow established a culture of Continuous Improvement. Now that Continuous Improvement is embedded in our DNA, initiatives are no longer centrally tracked, and groups manage the development and execution of their programs with regular updates to the Steerin
Slide 46: Asset quality improvement continues
Asset quality improvement continues Net charge-offs and ratio ACL to loans ratio ($ in millions) ($ in millions) 2.81% $94 53 2.69% 1.71% 1.83% 1.81% 0.43% $44 1.71% 1.80% 1.79% $30 12 5 Day 1 (2) 4Q20 3Q21 4Q21 0.20% 41 25 0.14% 32 (1) ACL/Loans (incl. PPP) ACL/Loans (excl. PPP) 4Q20 3Q21 4Q21 Cons
Slide 47: Allowance for credit losses waterfall
Allowance for credit losses waterfall ($ in millions) QoQ highlights $168 $1,574 • 4Q ending allowance, excluding EnerBank, $1,499 decreased $93M due to continued $2 improvement in the economic outlook and $(44) $(51) expectations of improving credit performance in certain sectors / clients. • The b
Slide 48: Base R&S economic outlook
Base R&S economic outlook (as of December 2021) Pre-R&S period 4Q2021 1Q2022 2Q2022 3Q2022 4Q2022 1Q2023 2Q2023 3Q2023 4Q2023 Real GDP, annualized % change 6.4 % 4.0 % 4.2 % 4.0 % 3.4 % 2.6 % 2.2 % 2.1 % 2.2 % Unemployment rate 4.4 % 3.9 % 3.8 % 3.7 % 3.7 % 3.6 % 3.6 % 3.5 % 3.5 % HPI, year-over-yea
Slide 49: Allowance allocation
Allowance allocation As of 12/31/2021 As of 12/31/2020 (in millions) Loan Balance ACL ACL/Loans Loan Balance ACL ACL/Loans C&I $43,758 $613 1.40 % $42,870 $1,027 2.40 % CRE-OO mortgage 5,287 118 2.23 % 5,405 242 4.47 % CRE-OO construction 264 9 3.53 % 300 24 7.98 % Total commercial $49,309 $740 1.50
Slide 50: 2022 expectations
2022 expectations FY 2022 Expectations for 1Q22 & Beyond Category Expectations • Expect consumer exit portfolios to have an average impact of ~$700M in FY22. Total Adjusted Revenue Up 4-5% (from adjusted 2021 of $6,412)(1)(2)(3) • Linked-quarter NII expected to grow modestly in 1Q22 excluding reduce
Slide 51: ESG - Environmental
ESG - Environmental Regions' Climate Commitment Regions acknowledges the climate challenges that face our planet and is committed to both further reducing our environmental footprint and exploring new ways to support our customers and third parties in their own efforts to enact similar change. 2021
Slide 52: ESG - Social
ESG - Social Our mission at Regions is to achieve superior economic value for our shareholders over time by making life better for our customers, our associates and our communities and creating shared value as we help them meet their financial goals and aspirations. We do this by providing competiti
Slide 53: ESG - Governance
ESG - Governance We consider proper shareholder 43 engagement to be a continuous Specific components of COVID-19 Board and Committee relationship throughout the year, with Regions' ESG-related Board oversight meetings in 2020 both Directors and management, policies, practices, and of Regions' throug
Slide 54: ESG - Recognitions and resources
ESG - Recognitions and resources State Street MSCI Global Advisors S&P Global Sustainalytics AA 68 S&P 500 Low-Risk ESG Rating R-Factor Score ESG Index ESG Risk Rating Human Rights JUST Capital JUST Capital Disability Equality FTSE Russell Campaign Index 100 Top 100 Companies Score in 2021 2021 Supp
Slide 55: LIBOR Transition
LIBOR Transition Readiness & the Path Forward Highlights Moving to Next Phase of Transition As of January 1, 2022 Regions is no longer originating LIBOR loans. Regions has taken steps Dec 31, 2021 both systematically and through training to ensure that no new LIBOR loans are added to the Last Day Re
Slide 56: Ascentium Capital acquisition
Ascentium Capital acquisition Acquisition exceeding expectations Company Overview Integration Updates • Announced February 27, 2020; closed April 1, 2020. In November 2021, the Ascentium Capital equipment finance capabilities were rolled • Ascentium Capital was the largest independent out to the ent
Slide 57: EnerBank acquisition
EnerBank acquisition Expanding our consumer lending products and services Regions is focused on serving as the Premier Lender to Homeowners. By adding EnerBank’s suite of home improvement financing, Regions is able to expand options for homeowners throughout the company’s footprint while establishin
Slide 58: Sabal Capital Partners acquisition
Sabal Capital Partners acquisition Continues build-out of Regions' fee-based businesses Company Overview & Regions' Strategic Rationale • Announced October 4, 2021; closed December 1, • Sabal expands Regions’ agency (Fannie/Freddie) CRE 2021. lending product suite and provides Regions the • Sabal Ca
Slide 59: Clearsight Advisors acquisition
Clearsight Advisors acquisition Further expand Regions specialty capabilities and M&A advisory services Company Overview Regions' Strategic Rationale • Announced December 17, 2021; closed December 31, $100M 32 35%+ 2021. Average Deal Clearsight Revenue CAGR • Clearsight Advisors is a leading-edge me
Slide 60: Appendix
> GENERATING Consistent Sustainable Kone term Performance APPENDIX AM REGIONS] 60
Slide 61: Fourth quarter 2021 highlights
Fourth quarter 2021 highlights Summary of fourth quarter results Selected items impact QoQ YoY FY ($ amounts in millions, except per share data) 4Q21 Change Change (amounts in millions, except per share data) 4Q21 2021 Net interest income $ 1,019 5.6% 1.3% Pre-tax adjusted items(1): Provision for (b
Slide 62: Non-GAAP information
Non-GAAP information Management uses pre-tax pre-provision income (non-GAAP) and adjusted pre-tax pre-provision income (non-GAAP), as well as the adjusted efficiency ratio (non-GAAP) and the adjusted fee income ratio (non-GAAP) to monitor performance and believes these measures provide meaningful in
Slide 63: Non-GAAP reconciliation
Non-GAAP reconciliation Adjusted net interest margin Quarter-ended Year-ended 12/31/2021 9/30/2021 12/31/2020 12/31/2021 12/31/2020 Net interest margin (FTE) (GAAP) 2.83 % 2.76 % 3.13 % 2.85 % 3.21 % Impact of SBA PPP loans (0.09)% (0.05)% (0.07)% (0.05)% 0.01 % Impact of excess cash 0.60 % 0.59 % 0
Slide 64: Non-GAAP reconciliation
Non-GAAP reconciliation Adjusted average loans Average Balances ($ amounts in millions) 4Q21 3Q21 2Q21 1Q21 4Q20 4Q21 vs. 3Q21 4Q21 vs. 4Q20 Commercial and industrial $ 42,254 $ 41,892 $ 43,140 $ 42,816 $ 43,889 $ 362 0.9 % $ (1,635) (3.7)% Add: Commercial loans held for sale reclassified to the por
Slide 65: Non-GAAP reconciliation
Non-GAAP reconciliation Adjusted full year average loans Average Balance Average Balance Average Balance Twelve Months Twelve Months Twelve Months Ended Ended Ended December 31, December 31, ($ amounts in millions) 2021 2020 2021 vs. 2020 Total Loans $ 84,802 $ 87,813 $ (3,011) (3.4)% Add: Commercia
Slide 66: Non-GAAP reconciliation
Non-GAAP reconciliation Adjusted ending loans As of 12/31/2021 12/31/2021 ($ amounts in millions) 12/31/2021 9/30/2021 6/30/2021 3/31/2021 12/31/2020 vs. 9/30/2021 vs. 12/31/2020 Commercial and industrial $ 43,758 $ 41,748 $ 42,628 $ 43,241 $ 42,870 $ 2,010 4.8 % $ 888 2.1 % Add: Commercial loans he
Slide 67: Non-GAAP reconciliation
Non-GAAP reconciliation Non-interest expense Year Ended December 31 ($ amounts in millions) 2021 2020 2019 2018 2017 2016 Non-interest expense (GAAP) $ 3,747 $ 3,643 $ 3,489 $ 3,570 $ 3,491 $ 3,483 Adjustments: Contribution to Regions Financial Corporation foundation (3) (10) — (60) (40) — Professio
Slide 68: Non-GAAP reconciliation
Non-GAAP reconciliation ACL/Loans excluding PPP As of ($ amounts in millions) 12/31/2021 9/30/2021 6/30/2021 3/31/2021 12/31/2020 Total Loans $ 87,784 $ 83,270 $ 84,074 $ 84,755 $ 85,266 Less: SBA PPP Loans 748 1,536 2,948 4,317 3,624 Loans excluding PPP, net (non- GAAP) $ 87,036 $ 81,734 $ 81,126 $
Slide 69: Non-GAAP reconciliation
Non-GAAP reconciliation Pre-tax pre-provision income (PPI) Quarter Ended ($ amounts in millions) 12/31/2021 9/30/2021 6/30/2021 3/31/2021 12/31/2020 4Q21 vs. 3Q21 4Q21 vs. 4Q20 Net income (loss) available to common shareholders (GAAP) $ 414 $ 624 $ 748 $ 614 $ 588 $ (210) (33.7)% $ (174) (29.6)% Pre
Slide 70: Non-GAAP reconciliation
Non-GAAP reconciliation Pre-tax pre-provision income (PPI) Year Ended ($ amounts in millions) 12/31/2021 12/31/2020 2021 vs. 2020 Net income available to common shareholders (GAAP) $ 2,400 $ 991 $ 1,409 142.2 % Preferred dividends (GAAP) 121 103 18 17.5 % Income tax expense (GAAP) 694 220 474 215.5
Slide 71: Non-GAAP reconciliation
Non-GAAP reconciliation NII, non-interest income/expense, and efficiency ratio Quarter Ended ($ amounts in millions) 12/31/2021 9/30/2021 6/30/2021 3/31/2021 12/31/2020 4Q21 vs. 3Q21 4Q21 vs. 4Q20 Non-interest expense (GAAP) A $ 983 $ 938 $ 898 $ 928 $ 987 $ 45 4.8 % $ (4) (0.4)% Adjustments: Contri
Slide 72: Non-GAAP reconciliation
Non-GAAP reconciliation NII, non-interest income/expense, and efficiency ratio Twelve Months Ended December 31 ($ amounts in millions) 2021 2020 2021 vs. 2020 Non-interest expense (GAAP) K $ 3,747 $ 3,643 $ 104 2.9 % Adjustments: Contribution to the Regions Financial Corporation foundation (3) (10)
Slide 73: Non-GAAP reconciliation
Non-GAAP reconciliation Non-interest income Year Ended ($ amounts in millions) 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Non-interest income (GAAP) $ 2,226 $ 2,201 $ 2,096 $ 1,785 $ 1,937 $ 2,011 $ 1,962 $ 2,019 $ 2,116 $ 2,393 $ 2,524 Security (gains) losses, net (112) (48) (26) (27) (
Slide 74: Forward-looking statements
Forward-looking statements Forward-Looking Statements This presentation may include forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not based on historical information, but rather are related to future operations, strategi
Slide 75: Forward-looking statements (continued)
Forward-looking statements (continued) • Our ability to comply with stress testing and capital planning requirements (as part of the CCAR process or otherwise) may continue to require a significant investment of our managerial resources due to the importance of such tests and requirements. • Our abi
Slide 76: Forward-looking statements (continued)
Forward-looking statements (continued) • Market replacement of LIBOR and the related effect on our LIBOR-based financial products and contracts, including, but not limited to, derivative products, debt obligations, deposits, investments, and loans. • Possible downgrades in our credit ratings or outl
Slide 77: Generating Consistent Sustainable Long-term Performance
> GENERATING Consistent Sustainable \ Long-term Performance A REGIONS Ma REGIONS| 77
Regions Financial — Investor Presentation (February 2022) on 6ix