Regions Financial Corporation · NYSE:RF
Regions Financial — 2011 Citi Financial Services Conference
30 slides from Regions Financial's conference presentation, Mar 9, 2011
Slide 1: 2011 Citi Financial Services Conference
2011 Citi Financial Services Conference March 9, 2011 David Turner, Chief Financial Officer Exhibit 99.1
Slide 2: 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 statements w
Slide 3: Our primary focus is returning to sustainable profitability through disciplined execution
Our primary focus is returning to sustainable profitability through disciplined execution of our strategic priorities
Slide 4: Why Regions?
Why Regions? • Strong Southeastern franchise with comprehensive line of business offerings • Leading brand favorability and exceptional service quality • Solid core business performance • Aggressively identifying and disposing of problem assets • Capital and liquidity remain solid
Slide 5: Strong Southeastern Franchise
Strong Southeastern Franchise Ranked 5 or Better in Market Share Targeted Growth Areas Headquarters Birmingham, AL Associates 27,829 Branches 1,772 Morgan Keegan Offices Regions Insurance Offices 30 ATMs 2,148 Deposits* $95 Billion Loans* $83 Billion Projected population growth for Regions footprint
Slide 6: Consumer Services
Consumer Services Deposits Mortgage Consumer Lending Insurance Credit/Debit Cards Branches Online Banking Mobile Banking Telebanking ATMs Diversified Offerings Multi-Channel Delivery Private Banking
Slide 7: Business Services
Business Services Business Segments Small Business Middle Market Real Estate Product Groups Treasury Management Capital Markets / Syndications Equipment Finance Core Middle Market Sales > $20MM Specialized Groups Public, Institutional, Not for Profit, Healthcare, Transportation, Franchise Restaurant
Slide 8: Morgan Keegan Business Units
Morgan Keegan Business Units Fixed Income Capital Markets Equity Capital Markets Investment Banking Private Client Group Regions Morgan Keegan Trust Services Institutional Sales & Trading, Fixed Income Research Equity Research, Institutional Sales & Trading Municipal Finance, M&A Public Offerings, C
Slide 9: Competitive Advantage Driven by Customer Loyalty
Competitive Advantage D riven by Customer Loyalty What Makes Us Different? Regions continues to perform in the top 10% in customer loyalty and top 20% for branch service quality (2) (1) Based on TNS survey 3Q10 Consumer Banking Market Effectiveness Study (2) Based on Gallup survey (3) Based on Bain
Slide 10: Strong Low-Cost Deposit Growth While Driving Lower Deposit Costs
Strong Low-Cost Deposit Growth While Driving Lower Deposit Costs Low Cost Deposits (1) Deposit Costs (1) (1) Full Year Average
Slide 11: Improved Deposit Mix
Improved Deposit Mix Average Deposits $94.6B Average Deposits $96.5B • Reduced Average Time Deposit mix from 35% in 2009 to 27% in 2010 • Grew Low-Cost Deposits 14% year-over-year
Slide 12: Disciplined Focus on New Checking Account Growth
Disciplined Focus on New Checking Account Growth • Approximately 1 million new checking accounts in 2009 and 2010 • Grew quality checking accounts (1) by 3% over • Increased sales productivity with new account sales per branch improving 3.4% from 2009 • Continued efforts to improve checking portfoli
Slide 13: Consumer Loan Production Improving; Consumers Continue to De-Leverage
Consumer Loan Production Improving; However Consumers Continue to De-Leverage Consumer Loan Production Consumer Loans Mortgage Production remains strong – second best year in terms of Mortgage Production New Consumer Loan Production volumes are improving in Branch Small Business, Direct and Indirect
Slide 14: Middle Market and Small Business Comprise 81% of Business Service Revenue
Middle Market and Small Business Comprise 81% of Business Service Revenue Total Business Services Revenue Small Business Business Banking (Metro Markets) Community Banking Branch Small Business Middle Market Commercial and Industrial Specialized Groups Commercial Real Estate Professional income prop
Slide 15: We are Growing Commercial Loans
We are Growing Commercial Loans Commercial & Owner Occupied Real Estate Loan Growth
Slide 16: Core revenue continues to grow
Core revenue continues to grow ($ in millions) Net Interest Income Core Non- Interest Revenue* Total Core Revenue * Non-GAAP; refer to Appendix for Non-GAAP reconciliation 4Q10 $877 + $794 = $1,671 3Q10 $868 + $748 = $1,616 2Q10 $856 + $756 = $1,612 1Q10 $831 + $734 = $1,565 4Q09 $850 + $743 = $1,59
Slide 17: Net Interest Margin Impacted by Excess Liquidity and Non-Accruals
Net Interest Margin Impacted by Excess Liquidity and Non-Accruals Net Income & Net Interest Margin Impact of Excess Liquidity & Non-Accruals on NIM 3.00% 3.27% 3.20% 3.19% 3.06%
Slide 18: Growth of Fee Income and Debit Card Interchange
Growth of Fee Income and Debit Card Interchange Migration to Fee Based Accounts Growth in Debit / ATM Fees $85M $92.6M $93.6M $96.8M
Slide 19: Strengthened Our Core Franchise Through Productivity & Efficiency Initiatives
Strengthened Our Core Franchise Through Productivity & Efficiency Initiatives ($ in millions) Branches 1,965 1,900 1,895 1,772 Reduced branch count by 10% since 2007 Headcount 33,161 30,784 28,509 27,829 Headcount declined 5,332 or 16% Total Expenses $4,660 $4,792 (1) $4,751 $4,985 Adjusted Expenses
Slide 20: Non-Performing Loan Inflows Decline
Non-Performing Loan Inflows Decline NPL Inflow by Type Business Services Gross NPLs Ending Balances
Slide 21: Non-performing Asset Levels Decline
Non-performing Asset Levels Decline Non-Performing Assets › Non-performing assets declined $308 million from third quarter › For the full year declined $494 million
Slide 22: Conservative Marks and Reserves Already Taken on Impaired Loans
Conservative Marks and Reserves Already Taken on Impaired Loans Impaired Loans as of December 31, 2010 ($ in millions) Legal Balance Charge-offs & Payments Received Book Value Related Allowance Charge-offs, Payments and Allowance as % of Legal Balance Commercial and industrial $ $ $ $ 41% Commercial
Slide 23: Loan Charge-Offs and Allowance
Loan Charge-Offs and Allowance Loan Charge-Offs Allowance & Coverage HFS (1) (1) Loan charge-offs related Sales / Transfer to Held for Sale (2) Excludes loans held for sale
Slide 24: Higher Risk Portfolio Segments Significantly Reduced
Higher Risk Portfolio Segments Significantly Reduced Reduced Investor Real Estate $9.9 B or 38% over 4 years Total Investor Real Estate Higher Risk Investor Real Estate Segments Reduced High Risk Segments $10.4 B or 76% over 4 years
Slide 25: Solid Capital; Above proposed Basel minimum ratios
Solid Capital; Above proposed Basel minimum ratios Basel Tier 1 Basel T1C
Slide 26: Favorable liquidity position
Favorable liquidity position › Regions low loan to deposit ratio favorable among peers › Favorable funding mix driven by low cost deposits * Based on 4Q10 ending balances
Slide 27: Why Regions?
Why Regions? • Strong Southeastern franchise with comprehensive line of business offerings • Leading brand favorability and exceptional service quality • Solid core business performance • Aggressively identifying and disposing of problem assets • Capital and liquidity remain solid
Slide 28: Regions
Av REGIONS
Slide 29: Non-GAAP reconciliation - Revenue
Non-GAAP reconciliation - Revenue Note: The following table illustrates the method of calculating the Non-GAAP financial measures used in this slide presentation: ($ amounts in millions) 4Q09 1Q10 2Q10 3Q10 4Q10 Net Interest Income (GAAP) $ $ $ $ $ Non-Interest Revenue (GAAP) 1,213 Total Revenue (GA
Slide 30: Non-GAAP reconciliation - Expenses
Non-GAAP reconciliation - Expenses Note: The following table illustrates the method of calculating the Non-GAAP financial measures used in this slide presentation: ($ in millions) Total Non-Interest Expenses (GAAP) $ 4,660 $ 10,792 $ 4,751 $ 4,985 Adjustments: Goodwill impairment charge 6,000 Regula
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