Regions Financial Corporation · NYSE:RF
Regions Financial — Investor Presentation (November 2022)
76 slides from Regions Financial's investor presentation, November 2022
Slide 1: Investor Information November - December 2022
Exhibit 99.1 Investor Information November - December 2022
Slide 2: Table of contents
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 Transi
Slide 3: Our banking franchise
Our banking franchise Ranked 19th 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: Profile evolution
Profile evolution Proactive Interest Rate Improved Credit Risk Profile Continuous Improvement Hedging • Hedge program introduced Customer Organization Investor CRE CCAR Loan Loss in 2017/2018 to protect NIM Journeys Simplification ($ in billions) Rate against falling interest rates Revenue Efficienc
Slide 5: Top market share plays a valuable role in the competitive landscape
Top market share plays a valuable role in the competitive landscape • Ranked 19th 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 6: 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) 18 of top 25 U.S. markets with Birmingham, Alabama $16.3 1 net migration inflows are within Nashville, Tennessee $10.7 3 Regions' footprint(2)
Slide 7: Regions receives top honors
Regions receives top honors For the second year, Regions earned Gallup's Don Clifton Strengths- Based Culture Award, which recognized Regions Bank Awarded Regions Bank named as a Regions Bank earned the Eight Years Strong: Silver Military Friendly Best Place to Work in Great Place to Work- Regions B
Slide 8: Third quarter 2022 overview
Third quarter 2022 overview Key Performance Metrics Reported Adjusted(1) 3Q22 Key Highlights Net Income Available to $404M • 3Q adjusted pre-tax pre-provision Common Shareholders income(1) represents highest level Diluted Earnings on record $0.43 • Settled outstanding regulatory Per Share matter rel
Slide 9: Regions' consistent outperformance
Regions' consistent outperformance Regions' earnings, including credit costs, have been top quartile for 9 straight quarters Adjusted PPI(1) Less Adjusted Net Charge-offs(1) to RWA(2) 2.68 2.54 2.44 2.33 2.33 2.29 2.23 2.16 2.28 2.19 1.97 1.91 1.86 1.78 1.89 1.73 1.74 1.74 1.63 1.70 2Q20 3Q20 4Q20 1
Slide 10: ROATCE: Top of peer group
ROATCE: Top of peer group ROATCE Performance Trend vs. Peers(1) 21.4% 21.4% 17.6% 18.0% 16.5% 17.0% 14.9% 12.0% 12.0% 14.7% 11.0% 9.2% 11.0% 9.7% 8.5% 9.0% 2015 2016 2017 2018 2019 2020 2021 YTD 3Q 2022 RF Peer Median (1) Non-GAAP; see Appendix for reconciliation. Peers include CFG, CMA, FHN, FITB,
Slide 11: Consistent NIM performance aided by peer-leading loan yield
Consistent NIM performance aided by peer-leading loan yield Net Interest Margin vs. Peers(1) Loan Yield vs. Peers(1) 3.68% 3.48% 3.45% 3.43% 3.44% 4.79% 3.40% 3.53% 3.34% 4.59% 4.53% 3.38% 3.06% 4.70% 3.31% 3.21% 3.25% 4.54% 4.15% 4.15% 2.85% 2.85% 4.11% 4.07% 4.29% 2.89% 2.89% 2.72% 3.88% 2.60% 3.6
Slide 12: NII & margin performance
NII & margin performance NII and NIM(1) ($ in millions) $1,274 $1,119 $976 3.68% 3.30% 3.44% 3.53% 3.06% 2.76% 3Q21 2Q22 3Q22 NII NIM NIM excl. PPP/Cash (2) • In 3Q, deposit and cash balances remain elevated; expect normalization to continue at a modest pace; reported NIM and NIM excl. PPP/Cash expe
Slide 13: NII & margin - core drivers
NII & margin - core drivers NII Attribution Drivers of NII and NIM Rate Environment • NII increased +$154M, or +14% linked-quarter $1,262 • Higher short-term rates largely drive NII growth Contractual balance sheet and hedge repricing outpaced ◦ Hand-off from hedging benefit to deposit cost increase
Slide 14: Asset sensitive balance sheet
Asset sensitive balance sheet Well positioned for rising short-term and/or long-term interest rates Longer-Term Adjusted(1) NIM Expectations Short-term Rate Sensitivity Drivers Constructed a balance sheet profile for a NIM range of 3.60% • ~50% floating rate loans excl. hedges to 4.00% over the long
Slide 15: Balance sheet profile
Balance sheet profile (as of September 30, 2022) Portfolio Compositions • Balance sheet position naturally benefits Assets(1) Loans(2)(3)(4) from higher interest rates (i.e. asset Other sensitive), supported by 13% Fixed (ex Fixed Hedges Hedges) 47% 14% ◦ large floating rate loan and cash mix Cash 9
Slide 16: Balance sheet positioning advantage
Balance sheet positioning advantage Strong deposit franchise and cash position provide an opportunity for flexibility and outperformance in a monetary tightening environment (1) Cash / Earning Assets Loan-to-Deposit Ratio Peer Median:78% 20% 89% 87% 87% 81% 80% 78% 78% 76% 74% 73% 72% 71% 71% 70% 15
Slide 17: Regions' deposit pricing advantage
Regions' deposit pricing advantage Interest-bearing Deposit Costs by Fed Funds Interest-bearing Deposit Costs(1,2) 5.00% 2.00% Level(1,2) During the prior cycle, betas 4.00% 1.50% would have continued higher if: IB Deposit Yield – Fed hiked further 3.00% 2.50% – Rates remained near 1.00% peak longer
Slide 18: Future NII drivers
Future NII drivers NII is positioned to benefit from higher rates, as well as natural loan growth and strategic opportunities. Hedge proceeds and the capital generated has been invested into strategically important businesses, such as Ascentium and EnerBank. NII Drivers - 2021 Relative Impact of Fut
Slide 19: Hedging strategy update
Hedging strategy update Net Receive Hedge Notional(1) (Quarterly Avg) (Annual Avg) 3Q22 Swap Notional Removal 3Q22/4Q22 Swap Additions/ Extension 1 3Q22 2 4Q22 3 1Q23 4 2Q23 5 3Q23 6 4Q23 7 1Q24 1 2023 2 2024 3 2025 4 2026 5 2027 6 2028 Swap Notional - 2Q22 $17.0B $11.7B $9.4B $9.4B $15.7B $18.7B $1
Slide 20: Securities portfolio provides downside rate protection
Securities portfolio provides downside rate protection • Portfolio constructed to protect against changes in market rates Securities portfolio composition(1) ◦ Duration of approximately 5 years provides Corporate Bonds Agency/UST offset to long-duration deposit book 4% 7% ◦ ~34% of the securities in
Slide 21: Non-interest income
Non-interest income Non-Interest Income Adj. Non-Interest Income (1) QoQ outlook ($ in millions) ($ in millions) • As of 9/30 all 2022 announced OD policy $649 $640 $646 $640 $605 $606 enhancements completed; expected to result in FY22 service charges of ~$630M. Expect to implement grace feature in
Slide 22: Diversified non-interest income
Diversified non-interest income 3Q22 fee revenue by segment(1) Consumer ($ 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 23: Capital Markets
Capital Markets Growing products and services that our clients value Capital markets is an umbrella over capital raising, risk management, and advisory services. Capital Markets Product Solutions Our associates Capital Markets Annual Revenue (1)(2)(3) delivered results $363 $331 $275 Real Estate $20
Slide 24: Treasury Management
Treasury Management Enabling our clients to optimize cash flow and manage risk with a comprehensive & competitive suite of Treasury Management solutions Steadily Growing our Treasury Management Business +10% Growing Core Growing Increasing Growing Cash +11% portfolio of +12% digital, +12% Global Man
Slide 25: Deposit account policy changes
Deposit account policy changes Providing customers capabilities to be more financially sound Adjusted Non-Interest Income(1)(2) Updated NSF/OD Policies ($ in millions) Regions is committed to making banking easier for our customers. $2,498 Details of Regions' Announcement(3): $2,109 1Q22-Eliminate o
Slide 26: Mortgage remains a key component of fee revenue
Mortgage remains a key component of fee revenue Market Prime Delivery Mortgage Investing Strength Portfolio Efficiency Servicing For Growth Purchase volume 755 Avg. FICO 23% lower origination Servicing expense Enhancing MLO expected to remain and fulfillment cost lower than peer execution to drive m
Slide 27: Non-interest expense
Non-interest expense Non-Interest Expense Adj. Non-Interest Expense(1) QoQ highlights & outlook ($ in millions) ($ in millions) $988 $1,170 $954 • Non-interest expense increased ~23% on a $918 reported basis and ~4% on an adjusted $938 $948 basis(1). 62.3% ◦ Salaries and benefits increased ~3% 57.7%
Slide 28: Business segments
Business segments 3Q22 Pre-tax pre- 3Q22 Average 3Q22 Average provision income(1) loans deposits 2% 6% 2% 7% 29% 35% $697M 48% $95B $136B 46% 63% 62% Consumer Corporate Wealth Management Other 28 (1) Pie %'s exclude the pre-tax pre-provision income from the Other Segment totaling $(175) million.
Slide 29: Investments in our businesses
Investments in our businesses We are investing in talent, technology, and strategic acquisitions; the investments we are making across all three of our businesses are paying off. CORPORATE CONSUMER WEALTH Mobile users increased YTD non-interest Increased number of Treasury 6.5% YoY income growth of
Slide 30: 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 Premier Lender to Top-decile customer >500 branch consolidations; ~80 D
Slide 31: Corporate Banking Group
Corporate Banking Group Driving continued long-term performance for our clients & our shareholders Strategic Investments Executing a Strategy that Invested in Talent & Expanded Expertise Delivers Results Enablement Integrated Clearsight Advisors Continue to attract top talent to Another Record Year
Slide 32: Wealth Management Group
Wealth Management Group Focus on execution & investments to optimize the client and associate experience Customer Experience & Strategic Technology Investments Delivered Strong Results(1) Communication & Data Analytics Maintained strong momentum in Strong NIR Growth NIR growth of Continued lead mana
Slide 33: Loan growth continues
Loan growth continues Loans and leases QoQ highlights & outlook (Average, $ in billions) 4% • Avg business loans growth was broad-based $90.8 $94.6 across all businesses and industries; driven $83.4 mostly by existing clients. Commitments 31.3 32.2 increased $4.4B and utilization decreased to 28.5 4
Slide 34: 3Q22 Average loan composition
3Q22 Average loan composition Average consumer loans Average business loans ($ in billions) ($ in billions) $18.1 $5.2 $0.2 $32.2B $49.1 $62.4B $6.1 $1.2 $0.7 $1.8 $6.0 $6.2 Mortgage Home Equity Commercial and Industrial CRE Mortgage - OO Other Consumer Other Consumer - Exit Portfolios CRE Construct
Slide 35: Commercial & IRE loans
Commercial & IRE loans As of 9/30/22 Total Outstanding ($ in millions) Commitments Balances % Utilization Administrative, Support, Waste & Repair $2,504 $1,539 61% Agriculture 565 350 62% •Commercial Real Estate Total Educational Services 4,175 3,319 79% Commitments and Outstanding Energy - Oil, Gas
Slide 36: Deposits
Deposits Normalization occurring as expected Deposits by Segment QoQ highlights & outlook (Average, $ in billions) $139.6 $135.5 • Avg consumer balances modestly lower, $131.9 2.5 0.4 10.0 2.3 decline consistent with typical pre- 9.9 9.4 pandemic seasonal effects. 41.9 39.1 42.5 • Avg corporate depo
Slide 37: Deposit surge and beta
Deposit surge and beta Pandemic-Related Deposit Growth Adds to Low-Cost, Stable Funding Base(1) $150 $9 $134 $13 Business/ $15 Other $97 Deposits $100 Business/ Other Deposits Low-beta deposits have grown considerably and remain relatively stable. Other pandemic era increases (approx. 3/5) Retail $5
Slide 38: State of the consumer
State of the consumer Regions' exposure to low-FICO borrowers remains negligible; customers with historically low deposit balances still have significant cushion Regions' consumer borrowers are in a strong position More broadly, Regions' lower-deposit-balance customers relative to pre-pandemic pre-p
Slide 39: Median customer deposit balances
Median customer deposit balances Consumer and Corporate Median Consumer Customer Deposit Balances(1) Median Corporate Deposit Balances(2) (12/31/2019-9/30/2022) (12/31/2019-8/31/2022) Stimulus Round 2 Up 63% Stimulus Round 1 Up 44% Retail Deposits 2 2 1 1 1 1 0 0 0 0 9 0 2 0 1 0 1 0 1 9 2 1 2 -202 -
Slide 40: Deposit advantage
Deposit advantage Business Deposit Mix(1) Funding Mix(1) - Current vs. Prior % of Total Deposits Balance in 3Q 2022 Average Rising Rate Cycle Accounts Less than $250k(2) ($ in billions) ($ in billions) $138 3% $105 51% 28% 46% 44% 43% 43% 42% 41% 41% Corporate 10% 39% 39% 37% 36% $39 27% 30% Consume
Slide 41: Capital and liquidity
Capital and liquidity Tier 1 capital ratio(1) Common equity Tier 1 ratio(1) 12.3% 10.8% 9.2% 9.3% 10.6% 10.6% 3Q21 2Q22 3Q22 3Q21 2Q22 3Q22 Loan-to-deposit ratio(2) QoQ Highlights & Outlook • Common Equity Tier 1 (CET1) ratio increased 68% 70% to 9.3%, reflecting solid capital generation 63% through
Slide 42: Tangible Common Equity
Tangible Common Equity • The impact of market rates has created a drag on Regions' TCE ratio through Accumulated Other Comprehensive Income (AOCI) ◦ Unrealized losses are associated with available for sale securities and cash flow hedging instruments which are expected to be realized through income
Slide 43: Investing for growth while maintaining focus on capital optimization
Investing for growth while maintaining focus on capital optimization 2014 2015 2016 2018 Sold Regions Insurance Acquisition of Acquisition of Group; redeployed capital Fannie Mae HUD (MAP) generated to shareholders DUS License License Entered into MSR flow-deal arrangement Third-party originated aut
Slide 44: Empowered by innovation & data
Empowered by innovation & data Expanding Influence of Data & Personalization Platform Modernization ® Efforts Regions 2.0 Next Generation of Customer Experience Data-driven omnichannel view of and Core Banking Platforms customers for a “You Know Me & Value Me” experience New Fulfillment & Servicing
Slide 45: Differentiating through customer experience
Differentiating through customer experience Digital Acceleration Innovating Operations Expanded Regions Secure Messaging Adoption Increased usage by 147% September 2022 6.5% increase in Mobile users in Q3 2022 MTD versus September 2021 compared to Q3 2021 Automated Non-Agent Digital Enhancements Int
Slide 46: Continue to invest for the future
Continue to invest for the future System Maintenance New Technology Cybersecurity / Risk Management • 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 customer
Slide 47: Growth in digital
Growth in digital Digital Usage Sales and Transactions Zelle Transactions (Millions) (1) Active Users (Millions) Digital Sales (Accounts in Thousands) +16% % +17% +106% 3.16 3.30 +19 2.39 86.7 2.85 2.25 84.4 3.23 73.8 2.01 12.5 16.5 10.4 2.40 63.4 71.9 70.3 1.57 3Q20 3Q21 3Q22 3Q20 3Q21 3Q22 3Q20 3Q
Slide 48: 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 49: Asset quality
Asset quality 3Q impacted by consumer loan sale and hurricane reserve Provision for Credit Losses Net charge-offs Allowance for Credit Losses (ACL) ($ in millions) ($ in millions) ($ in millions) 0.46% $1,499 $1,514 $1,539 $146 $20 $135 0.14% 0.17% 0.19% 410% $(31) $110 311% 283% $63 1.80% 1.62% 1.6
Slide 50: Allowance for credit losses waterfall
Allowance for credit losses waterfall ($ in millions) QoQ highlights • 3Q allowance increased $25M $40 compared to prior quarter, resulting $79 in a $135M provision expense. $1,514 $1,539 $(94) • Key drivers of the increase in ACL: ◦ Significant growth in commitments in both core Business (primarily
Slide 51: Base R&S economic outlook
Base R&S economic outlook (as of September 2022) 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-ye
Slide 52: Allowance allocation
Allowance allocation 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 % $
Slide 53: Well positioned for next downturn
Well positioned for next downturn Highly Diversified Business Portfolio(1) Commercial Portfolio Migrates to Lower Risk Distribution All Other Commercial 47% 46% 46% 6.9% 16.3% (2) Business Services 38% 7.7% 33% 26% Technology Services 16% 15% 7.8% 12% $63.2B Investor Real Estate 11% 6% 4% 12.9% Manu
Slide 54: Consumer lending portfolio statistics
Consumer lending portfolio statistics Consumer Credit Card Residential Mortgage Consumer FICO Scores(1) • Avg. origination FICO 776 • Avg. origination FICO 757 3% 2% • Avg. new line $6,367 • Current LTV 51% 2% • 3Q22 Yield 13.79% • 98% owner occupied • 3Q22 QTD NCO 2.39% 63% Other Consumer(2) 81% 77
Slide 55: Leveraged portfolio
Leveraged portfolio (outstanding balances as of September 30, 2022) Diversified Portfolio Important Factors Other (Portfolios <4% of total) Religious, Leisure, Personal 9.1% • RF defines Leverage consistent with Moody's historical & Non-Profit Services 3.6% Information Regional Bank Survey definitio
Slide 56: SNC portfolio
SNC portfolio (outstanding balances as of September 30, 2022) Shared National Credit Balances by Industry Portfolio Characteristics • Diverse industry mix 16.2% • RF is agent on 7% and titled role on 43% of 33.8% 7.7% balances $25.4 B 7.6% • 45% of balances are investment grade 4.7% 7.1% • 12% of ba
Slide 57: 2022 expectations
2022 expectations Expectations for 4Q22 & Beyond • 4Q NII expected to grow 7-9%(3); 2022 NII FY 2022 growth expected to be +20-22%(3), excl. PPP Category +23-25%(3); expect 4Q22 NII to be ~33-35% Expectations higher than 1Q22(3) Total Adjusted Revenue up 11-12% (from adjusted 2021 of $6,412)(1)(2)(3
Slide 58: Environmental, Social & Governance
Environmental, Social & Governance ESG Governance Suite of ESG Disclosures BOARD OF DIRECTORS ESG-related elements of the Strategic Plan, annual budget, and capital planning process ■ Annual Review & ESG Report ■ TCFD Report O Board-Level Committees ■ SASB Index V ■ GRI Index ESG strategies, initiat
Slide 59: Environmental, Social & Governance
Environmental, Social & Governance 2021 Highlights Pursuing environmental Fostering diversity, equity, Promoting financial inclusivity sustainability and inclusion ▪ Introduced Regions Now CheckingSM to ▪ Surpassed 2023 target to reduce ▪ Nurtured inclusive corporate suite of Regions Now Banking® pr
Slide 60: LIBOR Transition
LIBOR Transition Readiness & the Path Forward Highlights Moving to Next Phase of Transition As of January 1, 2022 Regions is no longer originating LIBOR loans. Regions has taken steps Dec 31, 2021 both systematically and through training to ensure that no new LIBOR loans are added to the Last Day Re
Slide 61: Acquisitions exceeding expectations
Acquisitions exceeding expectations Ascentium(1) EnerBank(2) Ascentium Capital 3Q22 origination growth is up 8% from Successful integration of EnerBank has led to a the prior quarter and YTD origination growth is up 27% continued focus on growth and synergy opportunities from the prior year New cont
Slide 62: Appendix
> GENERATING Consistent Sustainable Kone term Performance APPENDIX Aw REGIONS| 62
Slide 63: Third quarter 2022 highlights
Third quarter 2022 highlights Summary of third quarter results Selected items impact QoQ YoY ($ amounts in millions, except per share data) 3Q22 Change Change (amounts in millions, except per share data) 3Q22 Net interest income $ 1,262 13.9% 30.8% Pre-tax adjusted items(1): Branch consolidation, pr
Slide 64: 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 65: Non-GAAP reconciliation
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)% (0.05)% (0.
Slide 66: Non-GAAP reconciliation
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) (6
Slide 67: Non-GAAP reconciliation
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 $30 Less: charge-offs associated with the sale of unsecured consumer loans 63 — — — — Adjusted net
Slide 68: Non-GAAP reconciliation
Non-GAAP reconciliation Non-interest expense Year Ended December 31 ($ 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 69: Non-GAAP reconciliation
Non-GAAP reconciliation Pre-tax pre-provision income (PPI) 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 $ 624 $ 748 $ 614 $ 588 $
Slide 70: Non-GAAP reconciliation
Non-GAAP reconciliation NII, non-interest income/expense, and efficiency ratio 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 24.7 % Adjustments: Bra
Slide 71: Non-GAAP reconciliation
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 $ 2,40
Slide 72: Non-GAAP reconciliation
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 (GAAP)
Slide 73: 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 74: 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 75: 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 76: Generating Consistent Sustainable Long-term Performance
> GENERATING Consistent Sustainable \ Long-term Performance A REGIONS Ma REGIONS| 76
Regions Financial — Investor Presentation (November 2022) on 6ix