Regions Financial Corporation · NYSE:RF
Regions Financial — Q2 2025 Earnings Presentation
54 slides from Regions Financial's earnings presentation, Jul 18, 2025
Slide 1: 2nd Quarter Earnings
Exhibit 99.3 2nd Quarter Earnings July 18, 2025
Slide 2: Second Quarter Overview
Second Quarter Overview Continue to deliver consistent, sustainable long-term performance 2Q25 Key Performance Metrics Investments Driving Growth Reported Adjusted(1) Net Income Available to Common • On track with hiring incremental bankers $534M $538M and related revenue enablement roles in Shareho
Slide 3: Loans
Loans Poised for growth Average Loans & Leases ($ in billions) QoQ Highlights & Outlook $97.3 $96.1 $96.1 • Avg loans remained stable while ending loans grew 1% $33.3 $33.0 $32.9 • Avg business loans remained stable; 2% growth in ending balances driven by C&I and real estate $64.0 $63.1 $63.2 ◦ Grow
Slide 4: Deposit Advantage Key to Franchise Value
Deposit Advantage Key to Franchise Value Outperforming deposit growth & disciplined pricing 5 Year Deposit Growth vs Current Deposit Costs(1) 1Q25 Total Deposit Cost vs Peers(1) 40% RF Avg. Total Deposit Growth 30% Above industry median growth Peer Median w/ meaningfully 2.23% 20% 2.03% 2.04% 2.00%
Slide 5: Deposits
Deposits Relationship deepening and customer acquisition support positive deposit trends Average Deposits by Segment ($ in billions) $126.9 $127.7 $129.4 $2.9 $3.1 $3.0 QoQ Highlights & Outlook $7.5 $7.6 $7.3 $36.7 $38.3 $39.2 • Avg deposits increased over 1%; Ending deposits 1.59% 1.40% remained re
Slide 6: NII & Margin Performance
NII & Margin Performance NII propelled by balance sheet repricing and funding cost benefits FTE NII and NIM ($ in millions) Drivers of NII and NIM $1,198 $1,206 $1,271 • NII +5% QoQ; NIM increased 13bps to 3.65% 3.65% • Elevated long-term interest rates increase 3.51% 3.52% new production fixed-rate
Slide 7: 2025 NII Expected Range and Assumptions
2025 NII(1) Expected Range and Assumptions Resilient NII expected to grow in 2025 under a wide range of possible outcomes Expectation: NII expected to grow in 2025, with fixed-rate asset Net Interest Income Trend ($M) turnover and funding cost management as the primary drivers Return to long-term gr
Slide 8: Non-Interest Income
Non-Interest Income Non-Interest Income Adj. Non-Interest Income(1) ($ in millions) ($ in millions) $646 $646 QoQ Highlights & Outlook $590 $595 $615 $545 • NIR increased 5% on an adjusted(1) basis and 9% on a reported basis, which included $25M pre-tax loss on securities repositioning in 1Q which d
Slide 9: Non-Interest Expense
Non-Interest Expense Non-Interest Expense Adj. Non-Interest Expense(1) ($ in millions) ($ in millions) $1,004 $1,039 $1,073 $1,032 $1,035 $1,073 QoQ Highlights & Outlook $22 $— • NIE increased 3% on a reported basis and 4% on an adjusted basis(1), driven 57.6% primarily by a 5% increase in S&B 57.6%
Slide 10: Asset Quality
Asset Quality Credit performance improving; metrics tracking favorably Net Charge-Offs(1) Non-Performing Loans (NPLs)(1) $847 $843 $776 $123 $113 $101 0.87% 0.88% 0.80% 0.42% 0.52% 0.47% 2Q24 1Q25 2Q25 NPLs - excluding LHFS NPL/Loans 2Q24 1Q25 2Q25 NCOs NCOs Ratio QoQ Highlights & Outlook Allowance
Slide 11: Capital and Liquidity
Capital and Liquidity Managing capital flexibility to support growth and shareholder returns Tier 1 Capital Ratio(1) 11.7% 12.2% 11.8% QoQ Highlights & Outlook • Declared 2Q common dividends of $224M and 2Q24 1Q25 2Q25 executed $144M in share repurchases; Board declared a dividend of $0.265, a 6% in
Slide 12: CET1 Under Basel III Endgame (B3E)
CET1 Under Basel III Endgame (B3E) B3E Update Volatility Management • B3E has yet to be finalized but expect AOCI to be included in • Reclassified Available-for-Sale securities into Held-to- Regulatory Capital Maturity to reduce volatility; ~18% of portfolio in HTM • CET1 inclusive of AOCI increased
Slide 13: 2025 Expectations
2025 Expectations Previous FY 2025 Current FY 2025 Expectations Expectations Expectations for 3Q25 & Beyond(3) Net Interest Income up 1 – 4%(3) up 3 – 5%(3) (vs. 2024 of $4,818) • NII expected to grow in 2025, with fixed-rate asset turnover and funding Adjusted Non-Interest cost management as the pr
Slide 14: Appendix
Appendix 4 a
Slide 15: Longstanding Strategic Priorities
Longstanding Strategic Priorities Soundness Profitability Growth Strategically Investing in: • Top quartile organic loan & Relentless focus on: deposit growth over the last Committed to: • Client selectivity 5 yrs vs. peers(1) • Diversified Revenue • Credit Risk Management • Opportunities to leverag
Slide 16: Capital Strength
Capital Strength Soundness: Robust capital balances and strong organic capital generation position Regions well for full range of potential economic conditions Capital Resiliency • Prudent risk management evident in Pro Forma Post-Stress Capital(2) Federal Reserve's stress testing results 11.68% 11.
Slide 17: Driving Shareholder Value
Driving Shareholder Value Soundness: Peer-leading dividend growth while actively managing share count Post-Financial Crisis 1Q25 6 Yr Dividend Growth CAGR Maximum Shares Shares RF 10.1% Period Outstanding Outstanding Decline (MM) (MM) Peer 1 9.1% RF 3Q12 1,423 910 (36.1)% Peer 2 9.1% Peer 12 4Q11 19
Slide 18: Total Shareholder Return
Total Shareholder Return Profitability: Strong track record of leading Shareholder Return 3 Year Total Shareholder Return 5 Year Total Shareholder Return 62% 61% 212%204% 45% 44% 41% 39% Peer Median: 34% 35% 34% 159%158% 157% 19% 14% 14% 134% Peer Median: 120% 8% 7% 122%120% 113% 99% 83% 81% 52% 44%
Slide 19: Regions' Consistent Outperformance
Regions' Consistent Outperformance Profitability: Sustained advantage in risk efficiency Regions' earnings, including credit costs, have been top quartile vs peers since 2019 Adjusted PPI(1) Less Net Charge-offs to RWA(2) 2.30% 2.47% 2.31% 2.22% 2.09% 1.96% 1.99% 1.96% 1.88% 1.95% 1.78% 1.73% 1.64%
Slide 20: Leading with Consistently Strong Growth Metrics
Leading with Consistently Strong Growth Metrics Profitability: Supports a higher P/E multiple Peer Leading ROATCE(1) For 4 Straight Years Rank: 1 Rank: 1 24.1% Rank: 1 21.4% 21.9% Rank: 1 17.6% 17.8% 18.6% 16.4% 14.9% 19.3% 12.0% 11.0% 12.0% 17.0% 16.5% 14.7% 9.2% 14.3% 9.0% 9.7% 11.0% 8.5% 2015 201
Slide 21: Tangible Book Value Growth plus Dividends
Tangible Book Value Growth plus Dividends Profitability: 3 and 5 yr CAGR excluding AOCI 3 Yr CAGR of TBV + Dividends 5 Yr CAGR of TBV + Dividends Peer 1 20.4% Peer 1 15.3% RF 18.7% Peer 7 14.9% Peer 2 16.7% RF 14.8% Peer 3 16.2% Peer 2 14.6% Peer 4 15.2% Peer 6 14.2% Peer 5 14.2% Peer 9 13.9% Peer 6
Slide 22: Top Quartile Organic Loan and Deposit Growth
Top Quartile Organic Loan and Deposit Growth Growth: Consistent, disciplined growth 5 Yr Loan Growth excl. Bank M&A 21% 18% 17% 12% 12% 11% Peer Median: 7% 7% 7% 2% 1% 1% (3)% (4)% (5)% 5 12 RF 9 6 13 3 10 1 7 4 11 2 8 er er er er er er er er er er er er er Pe Pe Pe Pe Pe Pe Pe Pe Pe Pe Pe Pe Pe 5 Y
Slide 23: Attractive Footprint and Strong Brand Presence
Attractive Footprint and Strong Brand Presence Growth: Home field advantage in the southeast Winning in Core Markets Strong Profitability/Returns Supported by: Building trust & serving clients for over 170 years ☑ Low Cost Core Deposits ☑ Strong Brand ☑ Loyal Customer Base ☑ Employer / Bank of Choic
Slide 24: Building on Our Success
Building on Our Success Growth: Strategic investments in priority markets driving deposit expansion Continuing to Invest in Maximizing Growth Priority Markets Opportunities Building on success with incremental Priority Market Growth Opportunities(1) investments supporting growth while ‘25-‘30 Popula
Slide 25: Investing in People and Technology
Investing in People and Technology Growth: Expanding talent and capabilities in markets with greatest opportunity Investing in Banker Investments in Technology Expansion Over the next 3 years, will invest in Talent ☐ Core Modernization across the Footprint in key areas of opportunity: Personalizatio
Slide 26: Growth in Digital
Growth in Digital Digital Usage Sales & Transactions Customer Satisfaction (1) (4) Mobile Banking Active Users (Millions) Consumer Checking Sales by Channel +6% 2% 1% 2% Mobile App 2.59 2.67 2.52 71% 80% 73% Average 4.9 out 27% 19% 25% of 5 rating from 2Q23 2Q24 2Q25 iOS app store 2Q23 2Q24 2Q25 Dig
Slide 27: Investments in Our Businesses
Investments in Our Businesses Investments in talent, technology and strategic acquisitions continue to pay off Corporate Consumer Wealth • Driving growth in our priority and • Growing and retaining primary core markets by adding resources relationships by reskilling ~300 • Record 2Q25 NIR, up 1.2% Q
Slide 28: Hedging Strategy Update
Hedging Strategy Update Mostly "neutral" rate risk position protects margin & decreases capital volatility Asset Hedge Notional (Quarterly Avg) (Annual Avg) Receive-Fixed, Cash Flow Swaps - Loans Pay-Fixed, Fair Value Swaps - AFS Securities Net Asset Swap Position(2) Cash Flow Collars - Loans(3) 2Q2
Slide 29: Securities Portfolio
Securities Portfolio Provides downside rate protection/liquidity • Portfolio constructed to protect against changes in market rates Securities Portfolio Composition(1) ◦ Duration of ~4.1 years (AFS ~3.7 years) as of 6/30/2025; provides offset to long-duration deposit book Agency/UST Corporate Bonds
Slide 30: Regions' Deposit Pricing
Regions' Deposit Pricing Interest-bearing Deposit Costs vs. Peers(1) Retail CD Maturities (as of 6/30/2025)(2) 6.00% 4.50% Int-Bearing Deposit Rates 5.00% 3.8% 3.7% 4.00% 3.2% 3.2% 3.00% 2.50% 2.48% 2.5% 2.00% $5.2 1.03% 1.99% $3.0 $1.0 1.00% $2.0 $0.3 —% 3Q25 4Q25 1Q26 2Q26 3Q26 17 18 20 21 23 24 1
Slide 31: 3Q25 Projected Preferred Stock Expense
3Q25 Projected Preferred Stock Expense Regions Preferred Par Value 2Q25A 3Q25E Series C $500.0 $7.1 $7.1 Series D $350.0 $9.0 $— Series E $400.0 $4.5 $4.5 Series F $500.0 $8.7 $8.7 Total $29.3 $20.3 • Series D shares were redeemed on 6/16/2025 at par. Upon redemption, $4M of related issuance costs w
Slide 32: Continuous Improvement in Risk Management
Continuous Improvement in Risk Management Our commitment to strengthening credit risk disciplines and intentional portfolio shaping over the past decade-plus leaves us well positioned for sound, profitable growth Strong Origination Disciplines Aligned with Comprehensive Risk Framework Case Studies i
Slide 33: Historical Credit Profile
Historical Credit Profile Total Net Charge-Offs 2.00% 1.50% Average Pre-Pandemic Average Pandemic 0.46% 0.35% 1.00% 0.47% 0.50% —% 13 20 22 25 1Q 1Q 4Q 2Q Non-Performing Loans 2.50% 2.00% Average Pre-Pandemic Average Pandemic 1.07% 0.64% 1.50% 1.00% 0.80% 0.50% —% 13 20 22 25 1Q 1Q 4Q 2Q • Both non-
Slide 34: Historical Credit Profile
Historical Credit Profile Commercial Net Charge-Offs(1) 1.00% Average Pre-Pandemic Average Pandemic 0.27% 0.25% 0.50% 0.39% —% 13 20 22 25 1Q 1Q 4Q 2Q Consumer Net Charge-Offs(2) 3.50% Average Pre-Pandemic Average Pandemic 0.78% 0.53% 3.00% 2.50% 2.00% 1.50% 1.00% 0.63% 0.50% —% 13 20 22 25 1Q 1Q 4Q
Slide 35: Commercial Real Estate
Commercial Real Estate (Outstanding balances as of June 30, 2025) Highly Diversified Portfolio (IRE including Unsecured CRE) Key Portfolio Metrics Other Hotel Res. Homebuilders 2.6% 8.2% 4.7% Healthcare • Unsecured loans for RE purposes generally have low 7.8% leverage, with strong access to liquidi
Slide 36: CRE- Office Portfolio
CRE- Office Portfolio (Outstanding balances as of June 30, 2025) Key Portfolio Metrics(1) Investor Real Estate Office Portfolio Overview Balances $1,320 % of Total Loans 1.4% 17% 20% 42% NPL $213 58% 83% 80% NPL / Loans 16.2% Charge-offs $20 Class A Class B Multi-Tenant Single Tenant Suburban Urban
Slide 37: Transportation - Trucking
Transportation - Trucking (Outstanding balances as of June 30, 2025) Key Portfolio Metrics(1) Ongoing Portfolio Surveillance Balances $1,433 • Trucking operators entered 2025 with optimism, expecting freight volumes to rebound; however, % of Total Loans 1.5% economic challenges have resulted in oper
Slide 38: Consumer Lending Portfolio
Consumer Lending Portfolio • Consumer Credit Card Home Equity Consumer FICO Scores(1) • Avg. origination FICO 775 • Avg. origination FICO 760 • Avg. new line $9,334 2% 2% 2% • Current LTV 37% • 2Q25 Yield 14.24% • 59% of portfolio is 1st lien • 2Q25 QTD NCO 4.24% • Avg. loan size $34,780 68% • $88M
Slide 39: Allowance for Credit Losses
Allowance for Credit Losses QoQ Highlights • 2Q allowance increased $13M compared to the prior quarter, resulting in a $126M ($ in millions) provision expense and an essentially flat ACL % $1,730 $1 $15 $1,743 • The change in ACL resulted from: $(3) ◦ Deterioration in the baseline economic forecast
Slide 40: Base R&S Economic Outlook
Base R&S Economic Outlook (As of June 2025) Pre-R&S period 2Q2025 3Q2025 4Q2025 1Q2026 2Q2026 3Q2026 4Q2026 1Q2027 2Q2027 Real GDP, annualized % change 2.4 % 0.1 % 1.2 % 1.4 % 2.3 % 1.8 % 2.2 % 2.2 % 2.0 % Unemployment rate 4.2 % 4.4 % 4.5 % 4.5 % 4.4 % 4.3 % 4.2 % 4.1 % 4.0 % HPI, year-over-year %
Slide 41: Allowance Allocation
Allowance Allocation Regions "Day 1" CECL ACL ratio on 1/1/2020 was 1.71%. The company has executed a number of de-risking strategies that have improved the overall loan portfolio. Taking the 2Q25 loan portfolio and applying the "Day 1" ACL rates would produce a proforma Day 1 ACL ratio of 1.62%. As
Slide 42: Non-GAAP Information
Non-GAAP Information Management uses computations of earnings and certain other financial measures, which exclude certain adjustments that are included in the financial results presented in accordance with GAAP, to monitor performance and believes these measures provide meaningful information to inv
Slide 43: Non-GAAP Reconciliation
Non-GAAP Reconciliation Pre-Tax Pre-Provision Income (PPI) Less Charge-Offs to Risk-Weighted Assets Six Months Ended Year Ended ($ amounts in millions) 6/30/2025 2024 2023 2022 2021 2020 2019 Net income available to common shareholders (GAAP) $ 999 $ 1,774 $ 1,976 $ 2,146 $ 2,400 $ 991 $ 1,503 Prefe
Slide 44: Non-GAAP Reconciliation
Non-GAAP reconciliation Return on Average Tangible Common Shareholders' Equity Six Months Ended Year Ended ($ amounts in millions) 6/30/2025 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 RETURN ON AVERAGE TANGIBLE COMMON SHAREHOLDERS' EQUITY Net income available to common shareholders A $ 999 $
Slide 45: Non-GAAP Reconciliation
Non-GAAP Reconciliation Tangible Common Ratios As of and for Quarter Ended ($ amounts in millions, except per share data) 6/30/2025 3/31/2025 12/31/2024 9/30/2024 6/30/2024 TANGIBLE COMMON RATIOS Shareholders’ equity (GAAP) A $ 18,666 $ 18,530 $ 17,879 $ 18,676 $ 17,169 Less: Preferred stock (GAAP)
Slide 46: Non-GAAP Reconciliation
Non-GAAP Reconciliation Net Income Available to Common Shareholders, Adjusted Diluted EPS, and Return Ratios Quarter Ended ($ amounts in millions) 6/30/2025 3/31/2025 12/31/2024 9/30/2024 6/30/2024 2Q25 vs. 1Q25 2Q25 vs. 2Q24 Net income available to common shareholders (GAAP) A $ 534 $ 465 $ 508 $ 4
Slide 47: Non-GAAP Reconciliation
Non-GAAP Reconciliation Pre-Tax Pre-Provision Income (PPI) Quarter Ended ($ amounts in millions) 6/30/2025 3/31/2025 12/31/2024 9/30/2024 6/30/2024 2Q25 vs. 1Q25 2Q25 vs. 2Q24 Net income available to common shareholders (GAAP) $ 534 $ 465 $ 508 $ 446 $ 477 $ 69 14.8 % $ 57 11.9 % Preferred dividends
Slide 48: Non-GAAP Reconciliation
Non-GAAP Reconciliation NII, Non-Interest Income/Expense, and Efficiency Ratio Quarter Ended ($ amounts in millions) 6/30/2025 3/31/2025 12/31/2024 9/30/2024 6/30/2024 2Q25 vs. 1Q25 2Q25 vs. 2Q24 Non-interest expense (GAAP) A $ 1,073 $ 1,039 $ 1,038 $ 1,069 $ 1,004 $ 34 3.3 % $ 69 6.9 % Adjustments:
Slide 49: Non-GAAP Reconciliation
Non-GAAP Reconciliation Non-Interest Expense Twelve Months Ended December 31 ($ amounts in millions) 2024 2023 2022 2021 2020 2019 2018 2017 2016 Non-interest expense (GAAP) $ 4,242 $ 4,416 $ 4,068 $ 3,747 $ 3,643 $ 3,489 $ 3,570 $ 3,491 $ 3,483 Adjustments: FDIC insurance special assessment (16) (1
Slide 50: Non-GAAP Reconciliation
Non-GAAP Reconciliation Adjusted CET1- inclusive of AOCI(4) Quarter Ended ($ amounts in millions) 6/30/2025 3/31/2025 12/31/2024 9/30/2024 6/30/2024 ADJUSTED CET1 RATIO Common Equity Tier 1(1) A $ 13,529 $ 13,355 $ 13,434 $ 13,185 $ 13,093 Adjustments: AOCI gain (loss) on securities(2) (1,485) (1,64
Slide 51: Forward-Looking Statements
Forward-Looking Statements Forward-Looking Statements This presentation and the accompanying earnings call may include forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. In addition, the company, through its senior management, may from time to time make fo
Slide 52: Forward-Looking Statements
Forward-Looking Statements (continued) • Our inability to develop and gain acceptance from current and prospective customers for new products and services and the enhancement of existing products and services to meet customers’ needs and respond to emerging technological trends in a timely manner co
Slide 53: Forward-Looking Statements
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
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