Regions Financial Corporation · NYSE:RF
Regions Financial — Goldman Sachs Financial Services Conference 2012
22 slides from Regions Financial's conference presentation, Dec 5, 2012
Slide 1: Goldman Sachs Financial Services Conference
Exhibit 99.1 Goldman Sachs Financial Services Conference December 5, 2012 Grayson Hall President and Chief Executive Officer
Slide 2: Regions makes life better.
Regions makes life better. Regions’ mission 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. 2
Slide 3: Business Priorities
BUSINESS PRIORITIES Four strategic priorities based on a foundation of managing performance provide direction for all business decisions 3
Slide 4: Our Company Today… Company Snapshot
OUR COMPANY TODAY… COMPANY SNAPSHOT September 2012 Associates 23,361 Assets $122B Loans $75B Deposits $95B Branches 1,716 ATMs 2,061 Market Cap* $9.3B • Operating in sixteen states; however, seven states represent 85% of total deposits • Primary business lines: Consumer Services, Business Services,
Slide 5: Footprint Positioning
FOOTPRINT POSITIONING CHARACTERIZED BY HIGH MARKET SHARE, HIGH GROWTH MARKETS ($ in billions) ’10-’15 Market Population Top 10 MSAs Deposits Rank Growth Weighted Average Deposit Market Share in Regions’ Core Markets Birmingham, AL $10.1 1 3.4% Market Nashville, TN $7.0 1 9.6% Rank Name Share Tampa,
Slide 6: 2012 Accomplishment Highlights
2012 ACCOMPLISHMENT HIGHLIGHTS Strategic Priorities Focus on the Strengthen Build the Best Enhance Risk Financial Customer Team Management Performance Manage Performance • Capital plan approved and executed • Executed MK transaction, raised $900 million in equity, repaid TARP, repurchased warrant •
Slide 7: Revenue Growth – Steady Progress
REVENUE GROWTH – STEADY PROGRESS Growth in Total Revenue Linked Quarter vs Peers 2.2% 1.3% 1.2% 0.8% 0.1% 0.4% -0.5% -0.4% -0.7% -1.1% 3Q11 4Q11 1Q12 2Q12 3Q12 Regions Peer Median Note: Peer banks include BBT, CMA, FHN, FITB, HBAN, KEY, PNC, STI, USB, WFC, ZION Source: SNL Financial 7
Slide 8: Regions Has the Second Lowest Expense to Assets Ratio vs Peers
REGIONS HAS THE SECOND LOWEST EXPENSE TO ASSETS RATIO VS PEERS Non-Interest Expense (1) / Average Assets 4.2% 3.9% 3.4% 3.4% 3.5% 3.6% 3.3% 3.3% 3.0% 3.1% 2.8% 2.9% 2.7% Bank RF Bank Bank Bank Bank Bank Bank Bank Bank Bank Bank Bank #1 #3 #4 #5 #6 #7 #8 #9 #10 #11 #12 #13 (1) Adjusted to excludenon-
Slide 9: Focused on Improved Efficiency
FOCUSED ON IMPROVED EFFICIENCY Efficiency Ratio (1) 67.9% 69.4% 64.9% 65.0% 64.6% 64.6% 64.3% 62.8% 61.8% 64.3% Target- Mid to High 50s 3Q11 4Q11 1Q12 2Q12 3Q12 Regions Peer Median (1) Non-GAAP– See appendix for reconciliation Note: Results from Continuing Operations 9 Peer banks include: BBT, CMA,
Slide 10: Continued Asset Quality Improvement; Significant Credit Leverage Remains
CONTINUED ASSET QUALITY IMPROVEMENT; SIGNIFICANT CREDIT LEVERAGE REMAINS Non-Performing Assets Allowance for Loan Losses / Total Loans 35% decrease Y-O-Y $3,391 3.73% $2,996 $2,641 $2,331 $2,215 2.74% 2.58% 1.84% 3Q11 4Q11 1Q12 2Q12 3Q12 3Q11 4Q11 1Q12 2Q12 3Q12 Regions Peer Group Median Note: Peer
Slide 11: Solid Capital and Liquidity
SOLID CAPITAL AND LIQUIDITY Loan to Deposit Ratio Tier 1 Common Ratio (1) 90.3% 89.8% 89.7% 88.7% 88.4% 10.5% 9.8% 9.9% 10.0% 9.7% 82.8% 9.9% 9.8% 81.1% 8.5% 9.6% 80.1% 8.2% 79.0% 79.3% 3Q11 4Q11 1Q12 2Q12 3Q12 3Q11 4Q11 1Q12 2Q12 3Q12 Regions Peer Median Regions Peer Median (1) Non-GAAP– See append
Slide 12: Creating Shared Value for Our Customers, Communities, Associates and Shareholders
CREATING SHARED VALUE FOR OUR CUSTOMERS, OUR COMMUNITIES, OUR ASSOCIATES AND OUR SHAREHOLDERS THROUGH… • Getting a full and detailed view of customer financial needs – 360° View • Deepening customer relationships through cross-sell • Going to market as One bank, One team, One Regions – making referr
Slide 13: Our Approach to Serving Our Communities
OUR APPROACH TO SERVING OUR COMMUNITIES Community Service Housing Assistance Disaster Response Policy • Regions associates • Regions Customer • Penalty free withdrawals on volunteered for nearly 5,300 Assistance Program (CAP) CDs community service activities has helped more than 45,000 in first-half
Slide 14: Transition to Growth: Business Services
TRANSITION TO GROWTH Business Services – Key Focus Areas for 2013 • Acquire, retain and deepen relationships • Maintain disciplined focus on Healthcare Technology/Defense specialized industries to drive growth (Nashville) (Charlotte) • Specialized Industries: Healthcare, Restaurant, Transportation T
Slide 15: Transition to Growth: Wealth Management
TRANSITION TO GROWTH Continue Executing our new Wealth Management Strategy - Key Focus Areas for 2013 • Broaden and deepen relationships • Grow trust assets under management • Roll out branch-based Financial Consultants- Cetera • Enhance performance management and coaching culture • Stay focused on
Slide 16: Transition to Growth: Consumer Services
TRANSITION TO GROWTH Consumer Services – Key Focus Areas for 2013 • Deepen relationships • Attract, retain and expand quality consumer households • Stabilize and grow quality earning assets – get paid for the risks we take • Leverage NOW Banking products to bank the under- banked markets • Continue
Slide 17: Appendix
APPENDIX Ma REGIONS ”
Slide 18: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This presentation may include forward-looking statements which reflect Regions’ current views with respect to future events and financial performance. The Private Securities Litigation Reform Act of 1995 (“ the Act” ) provides a “ safe harbor” for forward-looking statement
Slide 19: Non-GAAP Reconciliation: Non-Interest Expense
NON-GAAP RECONCILIATION: NON-INTEREST EXPENSE The table below presents non-interest expense (GAAP) excluding certain adjustments to arrive at adjusted non-interest expense (non- GAAP). Regions believes that the exclusion of these adjustments provides a meaningful base for period-to-period comparison
Slide 20: Non-GAAP Reconciliation: Fee Income Ratios and Efficiency Ratios
NON-GAAP RECONCILIATION: FEE INCOME RATIOS AND EFFICIENCY RATIOS The table below presents computations of the efficiency ratio (non-GAAP), which is a measure of productivity, generally calculated as non-interest expense divided by total revenue. The table also shows the fee ratio (non-GAAP), general
Slide 21: Non-GAAP Reconciliation: Tier 1 Common
NON-GAAP RECONCILIATION: TIER 1 COMMON The following table provides calculations of Tier 1 capital (regulatory) and "Tier 1 common equity" (non-GAAP). Traditionally, the Federal Reserve and other banking regulatory bodies have assessed a bank's capital adequacy based on Tier 1 capital, the calculati
Slide 22: Regions
REGIONS
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