Regions Financial Corporation · NYSE:RF
Regions Financial — Investor Presentation (November 2009)
20 slides from Regions Financial's investor presentation, Nov 5, 2009
Slide 1: Homebuilder
Homebuilder $3.4bn / 3.6% of Total Portfolio; 14.6% of NOO-CRE % of Total Portfolio % of Total CRE NOO 3.6% Continue to Reduce Exposure ($mm) 14.6% Reduced exposure by 53% since 12/31/07 Transferred 68 Real Estate bankers to workout positions Frequent contact with borrowers Closely tracking collater
Slide 2: Condominium
Condominium $647mm / 0.7% of Total Portfolio % of Total Portfolio % of Total CRE NOO Effectively Reducing Exposure ($mm) Minimal exposure remaining 50% of portfolio is in Florida 0.7% 2.8% 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 Florida Remaining Portfolio $ 1,367 $ 1,266 $ 1,082 $ 946 $ 850 $ 711 $ 647
Slide 3: Multi-Family and Retail
Multi-Family and Retail Including Business and Community $9.4bn / 10% of Total Portfolio More subject to workout and restructure and subsequent return to accrual status Well-diversified by type and geography % of Total Portfolio % of Total CRE NOO By Geography Observations $0 $500 $1,000 $1,500 Mult
Slide 4: Home Equity - $15.6bn / 17% of Total Loans
Other States 1 st Lien 28% Other States 2 nd Lien 35% Florida 1 st Lien 14% Florida 2 nd Lien 23% Home Equity - $15.6bn / 17% of Total Loans Most Stressed Portion is Florida nd Liens - 3.8% of Total Loans Entire Home Equity Portfolio: Branch originated, in-footprint balances Active monitoring and ma
Slide 5: Problem Asset Dispositions
Total Sales $ 137 $ 147 $ 353 $ 637 Held for Sale Balance $ 393 $ 371 $ 380 $ 380 Problem Asset Dispositions ($ in millions) 1Q 2009 2Q 2009 3Q 2009 2009 YTD OREO $ $ $ $ Problem Loan Sales Held for Sale
Slide 6: Gross NPA Migration Lower than Prior Quarter
$1,116 $1,758 $1,667 Income producing CRE, principally Multi-Family and Retail, continued to increase while the combined Homebuilder and Condo migration declined 51% of Total CRE non- performing loans are in Florida and Georgia, our two primary markets of concern Gross NPA Migration Lower than Prior
Slide 7: Appropriate Reserve Coverage
Appropriate Reserve Coverage Total Loan Balances NPL Balances Allowance Total Loans NPLs Specific Analysis Loans (loans over $2.5 million) 2,039 2,039 19.8% 0.20x All Other Loans 90,715 1,177 2,223 2.5% 1.89x Total 92,754 3,216 2,627 2.8% 0.82x ALLL as % of
Slide 8: After three quarters, over $1 billion favorable to SCAP Stress Case scenario
After three quarters, over $1 billion favorable to SCAP Stress Case scenario * PPNR adjusted for Q2 capital raise activities 1. Regions PPNR – Q309 YTD 2. SCAP assumptions straight-lined; PPNR includes $0.4 billion overage from 1Q09 (in millions) RF SCAP Difference B/(W) Net Charge-offs (1,561) $ (3
Slide 9: Net Charge-Offs Below Fed Stress Test Level - Cumulative
Net Charge-Offs Below Fed Stress Test Level - Cumulative $ millions $9.2B $5.9B $3.4B Does not include Provision over Net Charge-Offs 1,000 1,200 1,400 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 Regulators - Stress Net Charge-Offs Regions - Base Net Charge-Offs Regions - Stress Net Charge-Offs Regions
Slide 10: Growing Customer Relationships
Growing Customer Relationships Loyalty drives the bottom line Loyalty Score May- J J A S O N D J F M A M J J A Sep- Gallup’s 75th Percentile Gallup’s 50th Percentile Regions Percent Highly Loyal Gallup’s 90th Percentile
Slide 11: Added Emphasis on Customer Experience Has Led to Dramatic Performance Improvements
Added Emphasis on Customer Experience Has Led to Dramatic Performance Improvements J.D. Power 2009 Retail Bank Study Results Regions 2008 Industry Average Regions 2009 We passed 29 banks in 1 year #1 in customer satisfaction among the 27 largest mortgage servicing companies – J.D. Power and Associat
Slide 12: The "Road to One Million"
On The “Road to One Million” Total New Checking Account Production 20,000 40,000 60,000 80,000 100,000 Jan Feb Mar Apr May Jun Jul Aug Sep 2008 2009 Up 29% Year Over Year Record Checking Sales
Slide 13: Strong Account Growth and High Customer Retention
Strong Account Growth and High Customer Retention Lead to Rising Low-Cost Deposits $50.0 $55.0 $60.0 $65.0 Q3 '08 Q4 '08 Q1 '09 Q2 '09 Q3 '09 1.00 1.10 1.20 1.30 1.40 1.50 1.60 1.70 1.80 1.90 Low-Cost Deposits Total Deposit Costs Opened a record 270,000 new retail and business checking accounts in 3
Slide 14: Diversified Southeastern Franchise
Diversified Southeastern Franchise Strategically important position across a number of Southeastern markets Regions Morgan Keegan Insurance Offices 1,895
Slide 15: Morgan Keegan
Morgan Keegan - Leading Regional Retail Brokerage, Investment Banking and Financial Services Company Morgan Keegan Highlights 1,276 Financial Advisors 339 Offices in 19 States $75 billion of customer assets $69 billion of trust assets $69 million assets per financial advisor $3.6 billion of new brok
Slide 16: Strong and Improving Market Share
Strong and Improving Market Share Note: Based on June 30, 2009 FDIC data per SNL.. Adjusted for brokered deposits in MS and GA. State Dep. ($B) Rank AL 18.9 % % FL 17.4 TN 17.3 LA 7.3 MS 7.0 GA 6.4 AR 4.6 TX 3.7 IL 2.7 MO 2.5 IN 2.4 Other 3.5 - - % of Total Mkt. Share
Slide 17: Regions' Capital Levels Strong and Comparable to Peers
7.03 7.63 7.45 7.25 8.02 7.80 8.40 5.50 5.18 6.20 6.80 9.50 9.60 10.63 10.80 11.10 12.10 12.18 12.46 12.55 12.61 13.23 RF Tier 1 T1C Regions’ Capital Levels Strong and Comparable to Peers Peers include: BAC, BBT, CMA, FITB, KEY, MI, PNC, STI, USB, WFC; Estimated capital ratios as of September 30, 20
Slide 18: Improved Margin and Net Interest Income
Improved Margin and Net Interest Income 0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 Q3 '08 Q4 '08 Q1 '09 Q2 '09 Q3 '09 Net Interest Margin Deposit Costs Continued non-interest bearing deposit growth benefiting margin Loan and deposit pricing improvements having a positive influence Asset sensitive balan
Slide 19: Risk Adjusted Going on Spreads for New and Renewed Loans
Risk Adjusted Going on Spreads for New and Renewed Loans Source: Standard & Poor’s Regions vs. Market (1) Prime spreads were converted to the LIBOR-equivalent using an assumed differential of bps. Spreads are weighted by outstandings. Going on Spreads do not include the impact of Fees or rate floors
Slide 20: **************************************************************************************** ****************************…
**************************************************************************************** **************************************************************************************** ****************************************************************************************
Regions Financial — Investor Presentation (November 2009) on 6ix