Regions Financial Corporation · NYSE:RF
Regions Financial — Non-Deal Roadshow (October 2022)
76 slides from Regions Financial's roadshow presentation, Oct 31, 2022
Slide 1: Investor Information November - December 2022
Investor Information November - December 2022 Exhibit 99.1
Slide 2: Table of contents
2 Table of contents Topic Page # Profile and Strategy 3-10 Income Statement 11-27 Business Segment Highlights 28-32 Balance Sheet 33-40 Capital, Debt & Liquidity 41-42 Technology & Continuous Improvement 43-48 Credit 49-56 Near-Term Expectations 57 Environmental, Social & Governance 58-59 LIBOR Tran
Slide 3: Line of business coverage
3 Line of business coverage Alabama – 190 Georgia – 115 Iowa – 5 Mississippi – 101 South Carolina – 20 Arkansas – 59 Illinois – 41 Kentucky – 11 Missouri – 51 Tennessee – 200 Florida – 277 Indiana – 42 Louisiana – 83 North Carolina – 7 Texas – 91 Ranked 19th in the U.S. in total deposits(1) Branch l
Slide 4: Profile evolution and continuous improvement
4 CCAR Loan Loss Rate Profile evolution Improved Credit Risk Profile Continuous Improvement Proactive Interest Rate Hedging Exited Non-Core Business Strategic M&A Top Quartile Profitability $24 $7 2008 2021 Investor CRE ($ in billions) 8.1% 6.5% 2012 2021 Customer Journeys Organization Simplificatio
Slide 5: Top market share plays a valuable role in the competitive landscape
5 Top market share plays a valuable role in the competitive landscape (1) Based on MSA and non-MSA counties using FDIC deposit data as of 6/30/2022; pro-forma for announced M&A transactions as of 10/24/2022. (2) Significant money center bank presence (JPM, BAC, C, WFC) defined as combined market sha
Slide 6: Strong in-market migration has converted legacy core markets into growth markets
6 Strong in-market migration has converted legacy core markets into growth markets Top Faster Growing MSAs Deposits Market Rank(1) Birmingham, Alabama $16.3 1 Nashville, Tennessee $10.7 3 Tampa, Florida $7.7 4 Miami, Florida $6.2 10 Atlanta, Georgia $6.1 7 Mobile, Alabama $3.5 1 Orlando, Florida $3.
Slide 7: Regions receives top honors
7 Regions receives top honors Regions Bank Awarded Silver Military Friendly Employer Award Regions Bank named as a Best Place to Work in Financial Services and Insurance. Regions Bank earned the Great Place to Work- Certified™ Company designation based on what current associates say about their expe
Slide 8: Third quarter 2022 overview
8 Third quarter 2022 overview (1) Non-GAAP, see appendix for reconciliation. Key Performance Metrics Reported Adjusted(1) Net Income Available to Common Shareholders $404M Diluted Earnings Per Share $0.43 Total Revenue $1.9B $1.9B Non-Interest Expense $1.2B $988M Pre-Tax Pre-Provision Income(1) $697
Slide 9: Regions' consistent outperformance
9 Regions' consistent outperformance Adjusted PPI(1) Less Adjusted Net Charge-offs(1) to RWA(2) Regions' earnings, including credit costs, have been top quartile for 9 straight quarters 1.70 2.16 2.33 2.29 2.33 2.44 2.23 2.19 2.54 2.68 1.74 1.73 1.74 1.86 1.97 1.91 1.78 1.63 1.89 2.28 RF Peer Median
Slide 10: ROATCE: Top of peer group
10 ROATCE: Top of peer group 9.0% 9.7% 11.0% 17.6% 14.9% 9.2% 21.4% 21.4% 12.0% 11.0% 12.0% 17.0% 14.7% 8.5% 16.5% 18.0% RF Peer Median 2015 2016 2017 2018 2019 2020 2021 YTD 3Q 2022 ROATCE Performance Trend vs. Peers(1) (1) Non-GAAP; see Appendix for reconciliation. Peers include CFG, CMA, FHN, FIT
Slide 11: Consistent NIM performance aided by peer-leading loan yield
11 Consistent NIM performance aided by peer-leading loan yield (1) Source: S&P Capital IQ. Peers include CFG, CMA, FHN, FITB, HBAN, HWC, KEY, MTB, PNC, SNV, TFC, USB, ZION. (2) Non- GAAP; see appendix for reconciliation. Net Interest Margin vs. Peers(1) 3.48% 3.45% 3.21% 2.85% 2.85% 3.06% 3.53%3.40%
Slide 12: NII & margin performance
12 $976 $1,119 $1,274 2.76% 3.06% 3.53% 3.30% 3.44% 3.68% 3Q21 2Q22 3Q22 NII NII & margin performance NII and NIM(1) ($ in millions) (1) Net interest income (NII) and net interest margin (NIM) are reflected on a fully taxable-equivalent basis. (2) Non-GAAP; see appendix for reconciliation. NIM • In
Slide 13: Net interest income drivers
13 • NII increased +$154M, or +14% linked-quarter • Higher short-term rates largely drive NII growth ◦ Hand-off from hedging benefit to contractual loan and cash repricing ◦ Deposit costs so far slow to react; 3Q deposit cost = 15 bps / interest-bearing deposit cost = 25 bps (11% QoQ beta) • Higher
Slide 14: Asset sensitive balance sheet
14 Upper End of Fed Funds Range 3.90% 4.05% 3.80% 3.90% 3.70% 3.75% 1.00% 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% (1) Adjusted NIM excludes PPP and excess cash over $750M. Adjusted NIM is non-GAAP; see appendix for historical reconciliations. • ~$16B annual fixed rate loan production and securities rein
Slide 15: Balance sheet profile
15 Floating 61% Fixed 39% Deposits 86% Borrowings 1% Other 3% Equity 10% • Balance sheet position naturally benefits from higher interest rates (i.e. asset sensitive), supported by ◦ large floating rate loan and cash mix ◦ large, stable deposit base and low reliance on wholesale borrowings • Have re
Slide 16: Balance sheet positioning advantage
16 Balance sheet positioning advantage Strong deposit franchise and cash position provide an opportunity for flexibility and outperformance in a monetary tightening environment (1) RF's calc utilizes cash at the Fed and excludes unrealized gain/loss on AFS securities from EA. (2) Rate cycle measured
Slide 17: Regions' deposit pricing advantage
17 RF IB Deposit Yield ('15-'19) Peer Median ('15-'19) RF IB Deposit Yield (Current) Peer Median (Current) —% 0. 50 % 1. 00 % 1. 50 % 2. 00 % 2. 50 % 3. 00 % 3. 50 % 4. 00 % 4. 50 % 5. 00 % —% 0.50% 1.00% 1.50% 2.00% 2.50% 2.37% 0.82% 0.25% 1.03% 0.41% Fed Funds RF IB Deposit Yield Peer Median 3Q 15
Slide 18: Hedges protected NII while rates were low
18 Hedges protected NII while rates were low; unwound hedges additive to NII in coming years; hand-off from hedge income to higher rates in this environment Guidance assumes 2023 Fed Funds of ~4.75% and a full cycle interest-bearing deposit beta in the mid-30%s; potential to outperform if the FOMC p
Slide 19: Hedging strategy update
19 1 2 3 4 5 6 7 Net Receive Hedge Notional(1) (1) Net receive hedge notional reflects receive-fixed asset hedges minus pay-fixed hedges as of 10/26. (2) Recent hedging vs. overnight SOFR; 1H22 1mL equivalent yield: 2.84%; 3Q22 1mL equivalent yield: 3.36%; 4Q22 early 2023 start 1mL equivalent yield:
Slide 20: Securities portfolio provides downside rate protection
20 • Portfolio constructed to protect against changes in market rates ◦ Duration of approximately 5 years provides offset to long-duration deposit book ◦ ~34% of the securities in the portfolio are bullet-like (CMBS, corporate bonds, and USTs) ◦ Reinvestment has favored bullet-like cashflows in 3Q,
Slide 21: Non-interest income
21 Adj. Non-Interest Income $646 $640 $606 3Q21 2Q22 3Q22 Change vs ($ in millions) 3Q22 2Q22 3Q21 Service charges $156 (5.5)% (3.7)% Card and ATM fees 126 (5.3)% (2.3)% Capital markets (Ex CVA/DVA) 72 (21.7)% (16.3)% Capital Markets - CVA/DVA 21 5.0% NM Wealth management income 108 5.9% 13.7% Mortg
Slide 22: Diversified non-interest income
22 Consumer 47% Wealth Management 18% Corporate 35% 3Q22 fee revenue by segment(1) Diversified non-interest income ($ 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 resid
Slide 23: Capital Markets
23 Capital Markets Growing products and services that our clients value Our associates delivered results • Capital Markets revenue is up 12% Sep YTD • 2021 vs. 2020 growth was driven by revenue derived from loan syndications, securities underwriting and placement, M&A advisory services, and fees gen
Slide 24: Treasury Management
24 Treasury Management Enabling our clients to optimize cash flow and manage risk with a comprehensive & competitive suite of Treasury Management solutions • Export Working Capital Preferred Lender • #1 SBA Export Lender for 4 Consecutive Years • Export Working Capital Lender of the Year • Highest D
Slide 25: Deposit account policy changes
25 Regions has made significant changes and upgrades while continuing to provide clients with resources needed to succeed in managing their finances. Details of Regions' Announcement(3): 1Q22-Eliminate overdraft protection transfer fees 2Q22-Reduce daily cap for overdraft occurrences to 3 2Q22-Elimi
Slide 26: Mortgage remains a key component of fee revenue
26 Purchase volume expected to remain mostly stable driven by the housing market(1), while refinances have slowed due to rising rates Closed mortgages expected to be ~$410B in 4Q 2022 across the US(1) Enhancing MLO execution to drive customer experience and improve cycle time Continuing to focus on
Slide 27: Non-interest expense
27 $938 $948 $1,170 57.7% 53.9% 62.3% Non-interest expense Efficiency ratio 3Q21 2Q22 3Q22 • Non-interest expense increased ~23% on a reported basis and ~4% on an adjusted basis(1). ◦ Salaries and benefits increased ~3% due to higher base salaries along with one additional day in quarter; Offset by
Slide 28: Business segments
28 48% 46% 6% 63% 35% 2% 29% 62% 7% 2% $697M $95B $136B 3Q22 Pre-tax pre- provision income(1) 3Q22 Average deposits 3Q22 Average loans (1) Pie %'s exclude the pre-tax pre-provision income from the Other Segment totaling $(175) million. Business segments Consumer Corporate Wealth Management Other
Slide 29: Investments in our businesses
29 (1) August 2022 vs 2021. (2) Represents penetration of Corporate Banking Group segment. (3) Includes relationships/accounts for Private Wealth Management, Institutional Services and Investment Services, Jul vs Dec. (4) Quality Relationships defined as having a cumulative $500K in loans, deposits
Slide 30: Consumer Banking Group
30 (1) Consumer Bank – LOB Average Deposits. (2) From 1/1/2014 to 9/30/2022. Consumer Banking Group Driving growth and customer engagement through strategic investments Continuing to Deliver Strong Results Strong Banker Talent in branches to provide effective consumer banking services to customers D
Slide 31: Corporate Banking Group
31 Corporate Banking Group Driving continued long-term performance for our clients & our shareholders Strategic Investments Expanded Expertise Solid Credit Quality with YTD Charge offs of 4bps, an 8bps improvement vs the prior yearAscentium Capital YTD origination growth up 27% vs prior year Integra
Slide 32: Wealth Management Group
32 (1) Represents September YTD Numbers. (2) Through Regions Investment Solutions. See additional information on slide 75. Wealth Management Group Focus on execution & investments to optimize the client and associate experience Continued enhancement of existing business intelligence dashboards to ai
Slide 33: Loan growth continues
33 • Avg business loans growth was broad-based across all businesses and industries; driven mostly by existing clients. Commitments increased $4.4B and utilization decreased to 43.1%. ◦ Expect pace of loan growth to slow over time as capital market conditions become more favorable. ◦ PPP loans ended
Slide 34: Average loan composition
34 $49.1 $5.2 $0.2 $6.1 $1.8 Commercial and Industrial CRE Mortgage - OO CRE Construction - OO IRE - Mortgage IRE - Construction 3Q22 Average loan composition $18.1 $6.0 $6.2 $0.7 $1.2 Mortgage Home Equity Other Consumer Other Consumer - Exit Portfolios Consumer Credit Card Average consumer loans $3
Slide 35: Commercial & IRE loans
35 Commercial & IRE loans As of 9/30/22 ($ in millions) Total Commitments Outstanding Balances % Utilization Administrative, Support, Waste & Repair $2,504 $1,539 61% Agriculture 565 350 62% Educational Services 4,175 3,319 79% Energy - Oil, Gas & Coal 4,814 1,574 33% Financial Services - Banking &
Slide 36: Deposits normalization occurring as expected
36 $132.0 $138.3 $135.4 79.9 85.0 85.5 41.4 41.5 38.3 10.2 9.5 9.40.5 2.3 2.2 3Q21 2Q22 3Q22 $131.9 $139.6 $135.5 79.1 85.2 84.7 42.5 41.9 39.1 9.9 10.0 9.4 0.4 2.5 2.3 3Q21 2Q22 3Q22 Deposits Normalization occurring as expected (1) Other deposits represent non-customer balances primarily consisting
Slide 37: Deposit surge and beta
37 • Comprised of new consumer customers, consumer customers who did not receive stimulus and growth in historically stable products such as savings. • ~$15B, representing ~41% of growth since 12/31/2019. Balances roughly stable in 3Q22. • Considerable growth in consumer balances that had low betas
Slide 38: State of the consumer
38 State of the consumer Regions' exposure to low-FICO borrowers remains negligible; customers with historically low deposit balances still have significant cushion Retail Deposits Business/ Other Deposits Retail Deposits Regions' consumer borrowers are in a strong position relative to pre-pandemic
Slide 39: Median customer deposit balances
39 Median customer deposit balances Consumer and Corporate Retail Deposits De c- 20 19 M ar -2 02 0 Ju n- 20 20 Se p- 20 20 De c- 20 20 M ar -2 02 1 Ju n- 20 21 Se p- 20 21 De c- 20 21 M ar -2 02 2 Ju n- 20 22 Se p- 20 22 (1) Based on large random sample of customers. Excludes customers with zero-ba
Slide 40: Deposit advantage
40 4Q17 3Q22 Deposit advantage (1) "Other" category includes EnerBank deposits and are average deposit balances. (2) Source - Bank Call Report data as of 6/30/2022. Peers include CFG, CMA, FHN, FITB, HBAN, HWC, KEY, MTB, PNC, SNV, TFC, USB, ZION. (3) 3Q22 Ending NIB/IB split by Business: Consumer 37
Slide 41: Capital and liquidity
41 10.8% 9.2% 9.3% 3Q21 2Q22 3Q22 • Common Equity Tier 1 (CET1) ratio increased to 9.3%, reflecting solid capital generation through earnings offset by continued strong loan growth. • Expect to manage to CET1 near the mid-to- upper end of 9.25-9.75% operating range over time. • In 3Q, Regions declar
Slide 42: Tangible Common Equity
42 7.79% 6.83% 5.93% 5.76% 5.01% 7.47% 6.66% 6.63% 6.97% 7.17% TCE Ratio Adjusted TCE Ratio, ex-AOCI 3Q21 4Q21 1Q22 2Q22 3Q22 4.00% 5.00% 6.00% 7.00% 8.00% Tangible Common Equity (1) Non-GAAP; see Appendix for reconciliation. • The impact of market rates has created a drag on Regions' TCE ratio thro
Slide 43: Investing for growth while maintaining focus on capital optimization
43 Investing for growth while maintaining focus on capital optimization Acquisition of HUD (MAP) License 2014 2015 2016 2019 2020 2018 2021 Acquisition of Fannie Mae DUS License Third-party originated auto portfolio ~$2.0B moved to runoff Entered into MSR flow-deal arrangement Sold Regions Insurance
Slide 44: Technology and continuous improvement efforts
44 ® Efforts Data-driven omnichannel view of customers for a “You Know Me & Value Me” experience Regions Client IQ (RCLIQ) and Wealth Client IQ delivering ‘needs based’ engagement resulting in significant corporate and wealth management revenue ROSIE Personalized offering of products and services to
Slide 45: Digital Acceleration
45 Digital Acceleration Digital Enhancements iTreasury Upgrade, Regions InvestPath® digital investment solutions tool(2), Fraud Engine Enhancements, Authentication Enhancements, Digital Deposit Account Funding Page redesign, CardHub 33.5% increase in Zelle transactions in Q3 2022 compared to Q3 2021
Slide 46: Continue to invest for the future
46 System Maintenance New Technology Cybersecurity / Risk Management Continue to invest for the future • Regions remains competitive by reserving ~9-11% of revenue for Technology Spend. • Past investment on innovation and strategy provided a firm, resilient foundation for addressing changes in custo
Slide 47: Growth in digital
47 2.01 2.25 2.39 3Q20 3Q21 3Q22 1.57 2.40 3.23 3Q20 3Q21 3Q22143 158 156 3Q20 3Q21 3Q22 2.85 3.16 3.30 3Q20 3Q21 3Q22 19.6% 21.4% 21.7% 33.6% 33.1% 32.5% 46.8% 45.5% 45.8% 3Q20 3Q21 3Q22 73.8 84.4 86.7 63.4 71.9 70.3 10.4 12.5 16.5 Deposits Lending 3Q20 3Q21 3Q22 66% 69% 71% 34% 31% 29% 3Q20 3Q21 3
Slide 48: Continuous improvement framework
48 Continuous improvement framework • Making Banking Easier – Be intensely responsive to customer needs • Revenue Growth – Improve effectiveness in generating prudent, profitable, sustainable growth • Efficiency Improvements – Continuously leverage people and technology to improve processes, reduce
Slide 49: Asset quality
49 • Asset quality remains broadly stable; metrics in-line to slightly better than pre-pandemic levels. • Excluding unsecured consumer loan sale impact, 3Q annualized adjusted NCOs(1) increased 2 bps to 19 bps QoQ. • 3Q NPLs increased QoQ, but remain below pre-pandemic levels. • 3Q ACL and ACL/Loans
Slide 50: Allowance for credit losses waterfall
50 Economic / Qualitative & Hurricane Reserve(1) $1,514 $79 $40 $(94) $1,539 Allowance for credit losses waterfall 09/30/2022 • 3Q allowance increased $25M compared to prior quarter, resulting in a $135M provision expense. • Key drivers of the increase in ACL: ◦ Significant growth in commitments in
Slide 51: Base R&S economic outlook
51 Pre-R&S period 3Q2022 4Q2022 1Q2023 2Q2023 3Q2023 4Q2023 1Q2024 2Q2024 3Q2024 Real GDP, annualized % change 1.8 % 1.0 % 1.2 % 1.2 % 1.4 % 1.5 % 1.6 % 1.9 % 1.9 % Unemployment rate 3.6 % 3.6 % 3.6 % 3.7 % 3.9 % 4.0 % 4.1 % 4.2 % 4.2 % HPI, year-over-year % change 12.6 % 7.6 % 2.4 % (0.9) % (0.7) %
Slide 52: Allowance allocation
52 As of 9/30/2022 As of 12/31/2021 (in millions) Loan Balance ACL ACL/Loans Loan Balance ACL ACL/Loans C&I $49,591 $622 1.25 % $43,758 $613 1.40 % CRE-OO mortgage 5,167 107 2.08 % 5,287 118 2.23 % CRE-OO construction 282 6 2.30 % 264 9 3.53 % Total commercial $55,040 $735 1.34 % $49,309 $740 1.50 %
Slide 53: Well positioned for next downturn
53 3Q21 3Q223Q19 3Q22 Commercial Portfolio Migrates to Lower Risk 19 bps Commercial Portfolio Probability of Default All Other Commercial 16.3% Investor Real Estate 12.9% CRE Unsecured 10.6% Govt. Education 10.3%Financial Services 10.3% Consumer Services 8.9% Manufacturing 8.3% Technology Services 7
Slide 54: Consumer lending portfolio statistics
54 Consumer lending portfolio statistics • Avg. origination FICO 757 • Current LTV 51% • 98% owner occupied • Avg. origination FICO 748 • Current LTV 34% • 71% of portfolio is 1st lien • Avg. loan size $35,788 • $33M to convert to amortizing or balloon during 2022 • Avg. origination FICO 765 • Avg.
Slide 55: Leveraged portfolio
55 $3.3B Leveraged portfolio (outstanding balances as of September 30, 2022) • RF defines Leverage consistent with Moody's historical Regional Bank Survey definition; Commitments >$5M with funded debt to EBITDA>4.0x ◦ Commitments are $4.6B • Not a strategic growth objective; used to support client r
Slide 56: SNC portfolio
56 16.2% 7.7% 7.6% 7.1% 7.1% 5.5%5.2% 5.1% 4.7% 33.8% Financial Services 16% Information 8% Manufacturing 8% Diversified 7% Wholesale 7% Industrial 5% Energy 5% Professional, Scientific & Technical Services 5% Healthcare 5% Other 34% (Portfolios <5% of total) $25.4 B Shared National Credit Balances
Slide 57: 2022 expectations
57 2022 expectations (1) Non-GAAP, see appendix for reconciliation. (2) The reconciliation with respect to forward-looking non-GAAP measures is expected to be consistent with actual non-GAAP reconciliations included in the attached appendix or in previous filings with the SEC. (3) Expectations utili
Slide 58: Environmental, Social & Governance
58 Environmental, Social & Governance ESG Governance ESG-related elements of the Strategic Plan, annual budget, and capital planning processBOARD OF DIRECTORS Board-Level Committees NCG Committee ESG strategies, initiatives, policies, and practices, along with related voluntary disclosures and stake
Slide 59: ESG progress and initiatives
59 Promoting financial inclusivity Pursuing environmental sustainability Maintaining accountability for our ESG progress ▪ Further integrated ESG into our enterprise-wide strategic planning and risk management processes ▪ Formed a new Technology Committee of the Board of Directors to provide oversig
Slide 60: LIBOR Transition Readiness & the Path Forward
60 LIBOR Transition Readiness & the Path Forward Moving to Next Phase of Transition Path to Completing the Transition From LIBOR As of January 1, 2022 Regions is no longer originating LIBOR loans. Regions has taken steps both systematically and through training to ensure that no new LIBOR loans are
Slide 61: Acquisitions exceeding expectations
61 Acquisitions exceeding expectations Ascentium(1) EnerBank(2) Ascentium Capital 3Q22 origination growth is up 8% from the prior quarter and YTD origination growth is up 27% from the prior year Contributing to growth are transactions originated through cross-marketing relationships with Commercial
Slide 62: Appendix
> GENERATING Consistent Sustainable \ Long-term Performance APPENDIX AW REGIONS] 62
Slide 63: Selected items impact
63 Selected items impact Third quarter 2022 highlights (1) Non-GAAP, see appendix for reconciliation. (2) Based on income taxes at an approximate 25% incremental rate. 3Q22 regulatory settlement included a $50M civil monetary penalty that is not tax deductible. (3) Items impacting results or trends
Slide 64: Non-GAAP measures definitions
64 Management uses pre-tax pre-provision income (non-GAAP) and adjusted pre-tax pre-provision income (non-GAAP), as well as the adjusted efficiency ratio (non-GAAP) and the adjusted fee income ratio (non-GAAP) to monitor performance and believes these measures provide meaningful information to inves
Slide 65: Adjusted net interest margin
65 Non-GAAP reconciliation Adjusted net interest margin Quarter-ended Year-ended 9/30/2022 6/30/2022 3/31/2022 12/31/2021 9/30/2021 12/31/2021 12/31/2020 Net interest margin (FTE) (GAAP) 3.53 % 3.06 % 2.85 % 2.83 % 2.76 % 2.85 % 3.21 % Impact of SBA PPP loans (0.01) % (0.01) % (0.02) % (0.09) % (0.0
Slide 66: Non-interest income
66 Non-GAAP reconciliation Non-interest income Year Ended ($ amounts in millions) 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 Non-interest income (GAAP) $ 2,524 $ 2,393 $ 2,116 $ 2,019 $ 1,962 $ 2,011 $ 1,937 $ 1,785 $ 2,096 $ 2,201 $ 2,226 Security (gains) losses, net (3) (4) 28 (1) (19)
Slide 67: Adjusted Net Charge-Offs and Ratio
67 Non-GAAP reconciliation Adjusted Net Charge-Offs and Ratio For the Quarter Ended ($ amounts in millions) 9/30/2022 6/30/2022 3/31/2022 12/31/2021 9/30/2021 Net loan charge-offs (GAAP) $110 $38 $46 $44 $30 Less: charge-offs associated with the sale of unsecured consumer loans 63 — — — — Adjusted n
Slide 68: Non-interest expense
68 Non-GAAP reconciliation Non-interest expense Year Ended December 31 ($ 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) — Profes
Slide 69: Pre-tax pre-provision income (PPI)
69 Non-GAAP reconciliation Pre-tax pre-provision income (PPI) NM - Not Meaningful Quarter Ended ($ amounts in millions) 9/30/2022 6/30/2022 3/31/2022 12/31/2021 9/30/2021 6/30/2021 3/31/2021 12/31/2020 9/30/2020 6/30/2020 Net income available to common shareholders (GAAP) $ 404 $ 558 $ 524 $ 414 $ 6
Slide 70: NII, non-interest income/expense, and efficiency ratio
70 Non-GAAP reconciliation NII, non-interest income/expense, and efficiency ratio NM - Not Meaningful Quarter Ended ($ amounts in millions) 9/30/2022 6/30/2022 3/31/2022 12/31/2021 9/30/2021 3Q22 vs. 2Q22 3Q22 vs. 3Q21 Non-interest expense (GAAP) A $ 1,170 $ 948 $ 933 $ 983 $ 938 $ 222 23.4 % $ 232
Slide 71: Return on average tangible common shareholders' equity
71 Non-GAAP reconciliation Return on average tangible common shareholders' equity Nine Months Ended September 30 Year Ended ($ amounts in millions) 2022 2021 2020 2019 2018 2017 2016 2015 RETURN ON AVERAGE TANGIBLE COMMON SHAREHOLDERS' EQUITY Net income available to common shareholders A $ 1,486 $ 2
Slide 72: Tangible Common Ratios
72 Non-GAAP reconciliation Tangible Common Ratios As of and for Quarter Ended ($ amounts in millions, except per share data) 9/30/2022 6/30/2022 3/31/2022 12/31/2021 9/30/2021 TANGIBLE COMMON RATIOS Shareholders’ equity (GAAP) A $ 15,173 $ 16,507 $ 16,982 $ 18,326 $ 18,605 Less: Preferred stock (GAA
Slide 73: Forward-Looking Statements
73 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, strategies, financial results or
Slide 74: • Our ability to comply with stress testing and capital planning requirements (as part
74 • 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 ability to comply with applicable capit
Slide 75: • Market replacement of LIBOR and the related effect on our LIBOR-based financial products
75 • 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 outlook could, among other negative impa
Slide 76: GENERATING
> GENERATING Consistent Sustainable Krizneterm Performance A REGIONS Ax REGIONS| 76