Regions Financial Corporation · NYSE:RF
Regions Financial — Q1 2012 Earnings Presentation
19 slides from Regions Financial's earnings presentation, Apr 24, 2012
Slide 1: Regions Financial 1st Quarter Earnings Call
Exhibit 99.3 Regions Quarter Conference April REGIONS 24,Earnings Financial 2012 Call 1st
Slide 2: Key Quarter Accomplishments and Significant Milestones
AInflows Key 1Q12 •Broad-Based REGIONS No Closed Successful Credit Redeemed Income Net Lowest NPLs QUARTER Milestones objection income charge-offs Results declined Ratings Morgan quarterly from of2NPLs $3.5 common Asset available OF continuing toupgrade 9% Keegan decreased billion Capital SIGNIFICAN
Slide 3: 1Q12 Financial Highlights
1Q12 ($ From Non-Interest Pre-tax Loan Net Shareholders Diluted (1) (2) REGIONS inNon-GAAP Interest Charge-Offs Income millions, Loss Continuing FINANCIAL Pre-provision EPSReserve Provision 3/Income $0.01 from Revenue Expense1 (Loss) from except excludes 481 Operations Continuing Discontinued Contin
Slide 4: Asset Quality Metrics: Marked Improvement
MARKED $730 NPL 11 48% *Year-over-year **Excludes 30% 116% NPLs Loan $ $398 1Q11 Business Consumer Reserve REGIONS inbps millions Decline* 49% Decline Gross Balances $755 $355 Loss 2Q11 ALL and 118% Increase* Reduction Services 42% Coverage Net Provision $555 76% 4IMPROVEMENT /Migration 3Q11 loans $
Slide 5: Continued Commercial and Industrial Loan Growth
CONTINUED Commercial 8% $22,889 Total $ $82,412 4.31% 1Q11 Avg. •* REGIONS Commercial Investor Loan Average in increase millions Loan Loan 2Q11 4.27% yield $23,506 $81,106 real Balances Balance 5Balances* 3Q11 Y-O-Y decreased and 4.31% & estate COMMERCIAL industrial Industrial $23,953 $80,513 4Q11 L
Slide 6: Low Deposit Costs
LOW DEPOSIT Deposit $ $95,257 22,506 59 72,286 1Q11 Low •* REGIONS Avg. Improved Repricing Deposit Average inbps millions Cost 2Q11 COST time 53 21,369 73,616 Balances* $96,122 costs bps Deposits Balances COSTS 6deposits deposit opportunities 3Q11 DEPOSITS 46 19,774 74,778 declined $96,147 bps 4Q11
Slide 7: Net Interest Margin Stable
•NET $ $864 3.09% 1Q11 Net (1) REGIONS Net Cash Non-accruals Securities inFrom Interest millions INTEREST $864 interest 2Q11 3.07% reserves continuing $859 7portfolio 3Q11 Income margin 3.04% negatively negatively $857 MARGIN 4Q11 and (FTE) operations 3.08% totals impacted $839 1Q12 Net impacted imp
Slide 8: Ability to Mitigate Fee Income Impact of New Legislation
ABILITY MITIGATE Fee $ $501 60 28 15 45 81 287 1Q11 Service Capital Mortgage Credit Insurance •Other (1) REGIONS Adjusted Mortgage Factors Ongoing Increased New in70 66 25 16 50 From Income 308 millions $519 2Q11 52 27 23 68 44 revenue Card Markets, charges 310 60 26 57 68 offsetting continuing Inco
Slide 9: Seasonal Expense Increase; Cost Containment Focus Continues
SEASONAL •CONTINUES Headcount 24,356 Other $ $41 1Q11 (1) REGIONS Adjusted Non-interest Salaries Headcount Other inNon-GAAP $41 millions 2Q11 Real 23,966 real $48 and non-interest –9Estate 3Q11 estate reduced $34 Bank INCREASE benefits expenses TO 23,713 excludes $15 and 4Q11 BE Associates 737 A HFS
Slide 10: Strong Capital Ratios
•STRONG 12.5% 3.6% 8.9% (1) (2) (3) (4) Loan 84% Tier 7.9% 1Q11 REGIONS Tier The Basel Current Non-GAAP Based 184% to 3.6% 9.0% 7.9% $900 2Q11 1Common Capital 12.6% III ratio Capital Common Deposit on 83% CAPITAL Tier 10 million 3.7% 9.1% 8.2% Quarter 3Q11 is ending 12.8% Ratio Excluding 1estimated
Slide 11: Appendix
APPENDIX AXREGIONS *
Slide 12: Forward-Looking Statements
FORWARD-LOOKING This of to statements management’s general statements. Additionally, system. on the requirements current occurrences ›Statements” which REGIONS With The Potential Possible Regions’ Changes differ 1995 Regions acceptance presentation Dodd-Frank cost effects foregoing words speak regar
Slide 13: Non-GAAP Reconciliation
NON-GAAP The GAAP). (GAAP). charge and predicting impairment following presentations As ($ Preferred Net Goodwill Regulatory Income Weighted-average Earnings (1) (2) Regions second tax taxes REGIONS amounts of There In purposes. related income tables by and the and quarter available (loss) assumed T
Slide 14: Non-GAAP Reconciliation
NON-GAAP The GAAP). operating that presentation have company, excludes Quarter ($ Preferred Income Provision Goodwill Pre-tax Other Loss Leveraged Securities Branch Total Adjusted (1) REGIONS amounts After the Pre-Tax inherent (gain) other Adjustments: pre-provision consolidation activities tax (los
Slide 15: Non-GAAP Reconciliation
NON-GAAP In income adjusted investors Regions’ operations. As management. ($ Continuing Branch Goodwill Net Non-interest Securities Adjustments: Leveraged Loss Adjusted REGIONS the amounts of interest (gain) and table consolidation (non-GAAP). total business. in non-interest total impairment for imp
Slide 16: Non-GAAP Reconciliation: Tier 1 Common Risk-Based Ratio
NON-GAAP The bank’s (“CCAR”), and banking Regions’ balance from divided by TIER Stockholders’ Accumulated Non-qualifying Disallowed Qualifying Preferred Risk-weighted Tier (1) REGIONS the Current banking following 1each 1common capital risk-weighted capital COMMON by sheet regulations, capital stock
Slide 17: Non-GAAP Reconciliation: Basel III Ratios
NON-GAAP ratios in, The understanding evolving measures Regions’ ($ Stockholders’ Non-qualifying Adjustments, $ Preferred Qualifying Minimum Basel (1) (2) our REGIONS 11,813 amounts Basel Under Regions understanding following U.S. under ICommittee III risk-weighted Tier risk-weighted and III capital
Slide 18: Non-GAAP Reconciliation: Tier 1 Common Risk-Based Ratio
NON-GAAP Regions last for As ($ TIER Stockholders’ Accumulated Non-qualifying Disallowed Qualifying Risk-weighted Tier REGIONS amounts of the day 1 March December September June 1capital retirement RISK-BASED of Series the 30, non-controlling trust 18 in deferred servicing 31, RECONCILIATION: $other
Slide 19: REGIONS
~ REGIONS