Regions Financial Corporation · NYSE:RF
Regions Financial — Investor Presentation (December 2009)
17 slides from Regions Financial's investor presentation, Dec 8, 2009
Slide 1: Significant Actions to Reduce Risk in Challenging Times
Significant Actions to Reduce Risk in Challenging Times Early exit of EquiFirst (subprime originations) Aggressively reduced high risk Commercial Real Estate exposure Sold or moved to held for sale $2.4 bn of problem assets Established a comprehensive Customer Assistance Program to manage home equit
Slide 2: Elevated Losses but an Active Disposition Program
Elevated Losses but an Active Disposition Program 4Q08 1Q09 2Q09 (in millions) $ $ $ $ Net Charge-offs CRE Valuation Losses Sales/Transfer to HFS Commercial Real Estate Other Commercial Consumer Real Estate Other Consumer Total Net Charge-offs Provision Over Net Charge-Offs Loan Loss Provision 1,150
Slide 3: Active Asset Management Leads to Slowing Inflows
Active Asset Management Leads to Slowing Inflows Inflow mix changing – homebuilders flattening; condos declining; income producing CRE increasing Income producing properties have some level of cash flows – greater ability to restructure NPAs contain $335 million of currently paying loans $ Millions
Slide 4: Investor Real Estate $22.8bn 24%
Investor Real Estate $22.8bn 24% Total Loan Portfolio $92.7bn Commercial and Industrial $21.9bn / 24% Owner Occupied Real Estate $13.0bn / 14% 3Q09 losses 0.57% Residential First Mortgage $15.5bn / 17% Indirect $2.8bn / 3% Direct and Other $1.1bn 1% Home Equity $15.6bn 17% Reduced by $3 billion, or
Slide 5: Investor Real Estate Portfolio is Well Diversified
Investor Real Estate Portfolio is Well Diversified 24% of Total Portfolio* # of Loans 25,297 3,148 5,000 10,000 15,000 20,000 25,000 30,000 <$1MM $1MM-10MM $10MM- 25MM $25MM + $789 Thousand Average Loan Balance Other** $2.9bn / 13% FL $5.4bn / 24% GA $2.5bn / 11% TX $2.3bn / 10% AL $2.1bn / 9% TN $1
Slide 6: Multi Family $5.1bn 22%
Multi Family $5.1bn 22% Multi Family Properties: Geographic Diversification and Lower Loss Severity Land $3.4bn / 15% Single Family $2.3bn / 10% Condo $0.7bn / 3% Hotel $1.1bn / 5% Industrial $1.5bn / 7% Office $3.0bn / 13% Retail $4.3bn / 19% Other $1.4bn / 6% 1,200 1,800 <$1MM $1MM- 10MM $10MM- 25
Slide 7: Regions' Capital Levels Strong and Comparable to Peers
7.88 12.15 RF Tier 1 T1C Regions’ Capital Levels Strong and Comparable to Peers Peers include: BAC, BBT, CMA, FITB, KEY, MI, PNC, STI, USB, WFC; MTB; Capital ratios as of September 30, 2009 Source: SNL and Company Reports
Slide 8: Diversified Southeastern Franchise
Diversified Southeastern Franchise Strategically important position across a number of Southeastern markets Regions Morgan Keegan Insurance Offices 1,895
Slide 9: Morgan Keegan
Morgan Keegan - Leading Regional Retail Brokerage, Investment Banking and Financial Services Company Morgan Keegan Highlights 1,276 Financial Advisors 339 Offices in 19 States $75 billion of customer assets $69 billion of trust assets $69 million assets per financial advisor $3.6 billion of new brok
Slide 10: Outstanding Customer Loyalty Drives Growth
Outstanding Customer Loyalty Drives Growth Loyalty Score May- J J A S O N D J F M A M J J A Sep- Gallup’s 75th Percentile Gallup’s 50th Percentile Regions Percent Highly Loyal Gallup’s 90th Percentile
Slide 11: Record Checking Sales Up 29% Year over Year
Record Checking Sales Up 29% Year over Year 20,000 40,000 60,000 80,000 100,000 Jan Feb Mar Apr May Jun Jul Aug Sep 2008 2009
Slide 12: Strong Account Growth and High Customer Retention Lead to Rising Low-Cost Deposits
Strong Account Growth and High Customer Retention Lead to Rising Low-Cost Deposits and Lower Overall Funding Cost $50.0 $55.0 $60.0 $65.0 Q3 '08 Q4 '08 Q1 '09 Q2 '09 Q3 '09 1.00 1.10 1.20 1.30 1.40 1.50 1.60 1.70 1.80 1.90 Low-Cost Deposits Total Deposit Costs 11.2% year over year growth in low cost
Slide 13: Result = Strong and Improving Market Share
Result = Strong and Improving Market Share Note: Based on June 30, 2009 FDIC data per SNL. Adjusted for brokered deposits in MS and GA. State Dep. ($B) Rank AL 18.9 % % FL 17.4 TN 17.3 LA 7.3 MS 7.0 GA 6.4 AR 4.6 TX 3.7 IL 2.7 MO 2.5 IN 2.4 Other 3.5 - - % of Total Mkt. Share
Slide 14: Well Positioned for Eventual Rising Rate Environment
Well Positioned for Eventual Rising Rate Environment 1.00 1.50 2.00 2.50 3.00 3.50 Q3 '08 Q4 '08 Q1 '09 Q2 '09 Q3 '09 Net Interest Margin Deposit Costs Asset sensitive balance sheet will prove beneficial as rates begin to rise Continued non-interest bearing deposit growth benefiting margin Loan and
Slide 15: Regions Now Outperforming Peers in Commercial Loan Pricing
Source: Standard & Poor’s Regions Now Outperforming Peers in Commercial Loan Pricing Q1 '08 Q2 '08 Q3 '08 Q4 '08 Q1 '09 Q2 '09 Q3 '09 Regions Market (1) Prime spreads were converted to the LIBOR-equivalent using an assumed differential of 275 bps. Spreads are weighted by outstandings. Going on Sprea
Slide 16: Credit Available, but Demand Remains Soft
48.9% 47.5% 45.4% 42.8% Credit Available, but Demand Remains Soft $25.0 $24.9 $24.5 $25.5 $- $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 Dec Mar Jun Sep 40% 42% 44% 46% 48% 50% 52% Commitments Utilization Rate Commitment levels remain high Utilization rates reflect weaker demand Small Business trending simil
Slide 17: Regions
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