Regions Financial Corporation · NYSE:RF
Regions Financial — Non-Deal Roadshow (May 2023)
78 slides from Regions Financial's roadshow presentation, May 1, 2023
Slide 1: Investor Information May - June 2023
Investor Information May - June 2023 Exhibit 99.1
Slide 2: Table of contents
2 Table of contents Topic Page # Profile and Strategy 3-10 Asset / Liability Management 11-18 Fees & Expenses 19-25 Business Segment Highlights 26-30 Loans & Deposits 31-38 Capital, Debt & Liquidity 39-42 Technology & Continuous Improvement 43-46 Credit 47-57 Near-Term Expectations 58 Environmental,
Slide 3: Our banking franchise
3 Line of business coverage Alabama – 189 Georgia – 116 Iowa – 5 Mississippi – 101 South Carolina – 18 Arkansas – 58 Illinois – 41 Kentucky – 10 Missouri – 51 Tennessee – 200 Florida – 274 Indiana – 41 Louisiana – 83 North Carolina – 7 Texas – 90 Ranked 20th in the U.S. in total deposits(1) Branch l
Slide 4: Improved credit risk profile and continuous improvement
4 CCAR Loan Loss Rate Profile evolution Improved Credit Risk Profile Continuous Improvement Proactive Interest Rate Hedging Exited Non-Core Business Strategic M&A Top Quartile Profitability $24 $8 2008 2022 Investor CRE ($ in billions) 8.1% 6.9% 2012 2022 Customer Journeys Organization Simplificatio
Slide 5: Top market share plays a valuable role in the competitive landscape
5 Top market share plays a valuable role in the competitive landscape (1) Based on MSA and non-MSA counties using FDIC deposit data as of 6/30/2022; pro-forma for announced M&A transactions as of 04/24/2023. (2) Significant money center bank presence (JPM, BAC, C, WFC) defined as combined market sha
Slide 6: Serving fast-growing MSAs
6 Strong in-market migration has converted legacy core markets into growth markets Serving Fast-Growing MSAs Deposits Market Rank(1) Nashville, Tennessee $10.7 3 Tampa, Florida $7.7 4 Atlanta, Georgia $6.1 7 Orlando, Florida $3.2 5 Knoxville, Tennessee $3.1 3 Huntsville, Alabama $2.6 1 Dallas/Ft Wor
Slide 7: Regions receives top honors
7 Regions receives top honors Regions Bank recognized as a 2023 Top 10 Military Friendly Brand Regions Bank earned the Great Place to Work-Certified™ Company designation based on what current associates say about their experience working here Nine Years Strong: Regions Bank Again Named Gallup Except
Slide 8: First quarter 2023 overview
8 First quarter 2023 overview Continue to generate consistent, sustainable long-term performance (1) Non-GAAP, see appendix for reconciliation. Key Performance Metrics 1Q23 Reported Net Income Available to Common Shareholders $588M Diluted Earnings Per Share $0.62 Total Revenue $2.0B Non-Interest Ex
Slide 9: Regions' consistent outperformance
9 Regions' consistent outperformance Adjusted PPI(1) Less Adjusted Net Charge-offs(1) to RWA(2) Regions' earnings, including credit costs, have been top quartile for 11 straight quarters 1.70 2.16 2.33 2.29 2.33 2.44 2.23 2.19 2.54 2.68 2.76 2.72 1.74 1.73 1.74 1.86 1.97 1.91 1.78 1.63 1.89 2.28 2.2
Slide 10: ROATCE: Industry leading performance
10 ROATCE: Industry leading performance 9.0% 9.7% 11.0% 17.6% 14.9% 9.2% 21.4% 24.1% 26.7% 12.0% 11.0% 12.0% 17.0% 14.7% 8.5% 16.5% 19.3% 20.2% RF Peer Median 2015 2016 2017 2018 2019 2020 2021 2022 1Q23 ROATCE Performance Trend vs. Peers(1) (1) Non-GAAP; see Appendix for reconciliation. Peers inclu
Slide 11: Consistent NIM outperformance
11 4.52% 4.69% 4.15% 4.11% 4.07% 4.15% 4.53% 5.05% 5.68% 4.59% 4.79% 3.88% 3.61% 3.41% 3.64% 4.29% 5.10% 5.54% RF Peer Median 2018 2019 2020 2021 1Q22 2Q22 3Q22 4Q22 1Q23 Consistent NIM outperformance aided by hedged loan yield & deposit advantage (1) Source: S&P Capital IQ. Peers include CFG, CMA,
Slide 12: Net interest income attribution
12 Market Rates(2) (1) Net interest income (NII) and net interest margin (NIM) are reflected on a fully taxable-equivalent basis. (2) Market rate impacts include contractual loan, cash, hedge and borrowings repricing; fixed asset turnover at higher market rates; and lower securities premium amortiza
Slide 13: Balance sheet profile
13 Floating 33% Fixed 67% Deposits 83% Borrowings 3% Other 3% Equity 11% • Balance sheet position naturally benefits from higher interest rates (i.e. asset sensitive), supported by ◦ Large floating rate loan and cash mix ◦ Large, stable deposit base as evidenced over multiple rate cycles • Ample cas
Slide 14: Balance sheet positioning advantage
14 Cash / Earning Assets Bo rr ow in gs / E ar ni ng A ss et s Cash vs Borrowings RF 0% 5% 10% 15% 20% 25% —% 5% 10% 15% 20% 25% Balance sheet positioning advantage Strong deposit franchise and funding position provide an opportunity for flexibility and outperformance in a monetary tightening enviro
Slide 15: Regions' deposit advantage
15 RF IB Deposit Yield ('15-'19) Peer Median ('15-'19) RF IB Deposit Yield (Current) Peer Median (Current) —% 0. 50 % 1. 00 % 1. 50 % 2. 00 % 2. 50 % 3. 00 % 3. 50 % 4. 00 % 4. 50 % 5. 00 % 5. 50 % —% 0.50% 1.00% 1.50% 2.00% 2.50% 4.69% 0.82% 0.91% 1.03% 1.61% Fed Funds RF IB Deposit Yield Peer Medi
Slide 16: Net interest income sensitivity
16 Sensitivity to Long-Term Rates • ~$15B annual fixed rate loan production and securities reinvestment; mostly exposed to middle tenor rates • Reduced premium amortization from lower prepay speeds and lower purchase prices on monthly reinvestment Asset sensitive balance sheet Sensitivity to Short-T
Slide 17: Hedging strategy update
17 1 2 3 4 5 6 7 Program Overview • Legacy Hedging Program: Performed as designed, limiting NII & NIM downside during low-rate environment • 2021: Completed hedge repositioning to purposely open rate exposure prior to rates rising • 2022-23: Added meaningful future protection at rate levels supporti
Slide 18: Securities portfolio
18 • Portfolio constructed to protect against changes in market rates ◦ Duration of 4.8 years as of 3/31/2023 provides offset to long-duration deposit book ◦ Portfolio is fully extended ◦ ~35% of securities in the portfolio are bullet-like (CMBS, corporate bonds, agency bullets, and USTs) ◦ MBS mix
Slide 19: Non-interest income
19 Adj. Non-Interest Income $583 $550 $535 1Q22 4Q22 1Q23 Change vs ($ in millions) 1Q23 4Q22 1Q22 Service charges $155 2.0% (7.7)% Card and ATM fees 121 (6.9)% (2.4)% Capital markets (Ex CVA/DVA) 75 4.2% 11.9% Capital markets - CVA/DVA (33) (200.0)% NM Wealth management income 112 3.7% 10.9% Mortga
Slide 20: Diversified non-interest income
20 Consumer 49% Wealth Management 21% Corporate 30% 1Q23 fee revenue by segment(1) Diversified non-interest income ($ 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 resid
Slide 21: Capital Markets
21 Capital Markets Growing products and services that our clients value Our associates delivered results • 2022 vs. 2021 growth was driven by improvements in CVA/DVA, Real Estate loan syndications, and interest rate & commodity derivatives products • Capital Markets Income (ex. CVA/DVA) $75M in 1Q;
Slide 22: Treasury Management
22 Treasury Management Enabling our clients to optimize cash flow and manage risk with a comprehensive & competitive suite of Treasury Management solutions +15% Treasury Management Revenue(1) +9% Portfolio of Treasury Management Clients(2) +10% Digital, Payment & Integrated Services Revenue(3) +14%
Slide 23: Deposit account policy changes
23 Regions has made significant changes and upgrades while continuing to provide clients with resources needed to succeed in managing their finances. Details of Regions' Announcement(3): 1Q22-Eliminate overdraft protection transfer fees 2Q22-Reduce daily cap for overdraft occurrences to 3 2Q22-Elimi
Slide 24: Mortgage remains a key component of fee revenue
24 Industry origination volume forecasted to be down 15% versus 2022(1) Closed mortgage volume is estimated to be $1.8T in 2023 across the US(1) Continuing to focus on growing servicing through acquiring new MSRs Enhancing MLO execution to drive customer experience and improve cycle time 755 Avg. FI
Slide 25: Non-interest expense
25 $933 $1,017 $1,027 57.9% 50.5% 52.3% Non-interest expense Efficiency ratio 1Q22 4Q22 1Q23 • Non-interest expense increased ~1% on a reported and adjusted basis(1) • Salaries & benefits increased ~2% due to merit (effective 3/1) and a seasonal increase in payroll taxes • FY23 pension-related expen
Slide 26: Business segments
26 40% 54% 6% 64% 34% 2% 28% 64% 7% 1% $924M $97B $129B 1Q23 Pre-tax pre- provision income(1) 1Q23 Average deposits 1Q23 Average loans (1) Pie %'s exclude the pre-tax pre-provision income from the Other Segment totaling $(15) million. Business segments Consumer Corporate Wealth Management Other
Slide 27: Investments in our businesses
27 (1) Feb '22 - Feb '23 (2) Quality Relationships defined as having a cumulative $500K in loans, deposits and IM&T accounts, revenue per Quality Relationship measured over TTM, Feb '23 vs Dec '22. (3) Retention of IM&T revenue vs baseline. Investments in our businesses Investments in talent, techno
Slide 28: Consumer Banking Group
28 (1) Consumer Bank – LOB Average Deposits 1Q2023 vs. 1Q2020. (2) Excludes small business. Consumer Banking Group Driving growth and customer engagement through strategic investments Continuing to Deliver Strong Results Delivered ~230K Greenprint personalized financial plans in 1Q23, an increase Yo
Slide 29: Corporate Banking Group
29 Corporate Banking Group Driving continued long-term performance for our clients & our shareholders Strengthening Capabilities with Strategic Investments Ascentium Capital loan production is up 15% vs prior year Sabal integration on schedule; Clearsight Advisors 1Q23 revenue second-highest quarter
Slide 30: Wealth Management Group
30 (1) Represents March QTD Numbers. (2) Wealth Management - LOB Average Deposits 1Q20 vs 1Q23 Wealth Management Group Focus on execution & investments to optimize the client and associate experience Provided Our Best Thinking to clients during recent industry headlines, through multiple client expe
Slide 31: Loan growth continues
31 • Avg business loans increased 2% reflecting high-quality, broad- based growth across utilities, retail trade (automotive, grocery, hardware, & consumer essentials) and financial services industries • Line commitments increased ~$1.5B and utilization increased to 43.7% • Avg consumer loans increa
Slide 32: 1Q23 average loan composition
32 $51.2 $5.0 $0.3 $6.4 $2.0 Commercial and Industrial CRE Mortgage - OO CRE Construction - OO IRE - Mortgage IRE - Construction 1Q23 average loan composition $19.0 $5.9$5.8 $0.5 $1.2 Mortgage Home Equity Other Consumer Other Consumer - Exit Portfolios Consumer Credit Card Average consumer loans $32
Slide 33: Commercial & IRE loans
33 Commercial & IRE loans As of 03/31/23 ($ in millions) Total Commitments Outstanding Balances % Utilization Administrative, Support, Waste & Repair $2,577 $1,582 61% Agriculture 565 329 58% Educational Services 4,290 3,282 77% Energy - Oil, Gas & Coal 4,951 1,652 33% Financial Services - Banking &
Slide 34: Deposits
34 $141.0 $131.7 $128.5 85.2 83.5 83.3 42.8 37.1 35.2 10.4 9.1 8.0 2.6 2.0 2.0 1Q22 4Q22 1Q23 $138.7 $133.0 $129.0 83.1 83.6 82.2 42.6 38.2 36.3 10.4 9.0 8.4 2.6 2.2 2.1 1Q22 4Q22 1Q23 Deposits Normalization occurring as expected (1) Other deposits represent non-customer balances primarily consistin
Slide 35: Deposit mix and outlook
35 Deposit mix and outlook Trends & Outlook Consumer & Wealth • New Customers & Customers with Low Betas in 2019: Customers who had low deposit betas in the 2019 rate cycle (effective annual rate <20bps)(2) and new customers since 2019 have exhibited stable behavior thus far • Other 2019 Customers:
Slide 36: Median deposit balances
36 Median deposit balances Consumer and Corporate Retail Deposits De c- 20 19 M ar -2 02 0 Ju n- 20 20 Se p- 20 20 De c- 20 20 M ar -2 02 1 Ju n- 20 21 Se p- 20 21 De c- 20 21 M ar -2 02 2 Ju n- 20 22 Se p- 20 22 De c- 20 22 M ar -2 02 3 (1) Excludes customers with zero-balance or overdrawn accounts
Slide 37: Diversified deposit base
37 Diversified deposit base (1) $ in billions as of 3/31/2023. (2) Data and categorization reflects FR 2052a (Complex Institution Liquidity Monitoring Report) methodology. (3) High quality checking account estimates are based on multiple individual account behaviors and activities (e.g., balances an
Slide 38: Deposit advantage
38 Deposit advantage Well diversified deposit base vs. Peers (1) As of 12/31/2022. Peers include: CFG, CMA, FHN, FITB, HBAN, HWC, KEY, MTB, PNC, SNV, TFC, USB, ZION. Source: Bank Call Reports. ...Resulting in the highest mix of FDIC insured deposits amongst peers % of Total Deposits Insured By FDIC(
Slide 39: Liquidity advantage
39 Liquidity advantage (1) Fed master account closing balance only. Does not include other small in transit / processing items included in Call Report or SEC reports. (2) 'Liquid Securities Free to Use incl. Bank Term Funding Program (BTFP)' are comprised of Free to Pledge Securities and the increme
Slide 40: Capital and liquidity
40 9.4% 9.6% 9.8% 1Q22 4Q22 1Q23 • Common Equity Tier 1 (CET1) ratio increased to 9.8%, reflecting solid capital generation through earnings partially offset by modest loan growth and ~$100M, or 7 bps, related to the 1Q phase-in of CECL into regulatory capital • Given current macro economic conditio
Slide 41: Tangible common equity
41 5.93% 5.76% 5.01% 5.63% 6.31% 6.63% 6.97% 7.17% 7.64% 8.02% TCE Ratio Adjusted TCE Ratio, ex-AOCI 1Q22 2Q22 3Q22 4Q22 1Q23 4.00% 5.00% 6.00% 7.00% 8.00% 9.00% Tangible Common Equity (1) Non-GAAP; see Appendix for reconciliation. • Higher levels of interest rates are beneficial to Regions through
Slide 42: Investing for growth while maintaining focus on capital optimization
42 Investing for growth while maintaining focus on capital optimization Acquisition of HUD (MAP) License 2014 2015 2016 2019 2020 2018 2021 Acquisition of Fannie Mae DUS License Third-party originated auto portfolio ~$2.0B moved to runoff Entered into MSR flow-deal arrangement Sold Regions Insurance
Slide 43: Empowered by innovation & data
43 Empowered by innovation & data Regions remains competitive by reserving ~9–11% of revenue for technology spend (1) RCLIQ is a machine learning based data product used by Corporate Banking Relationship managers to find new opportunities, predict share of wallet deepening activities as well as earl
Slide 44: Differentiating through customer experience
44 Differentiating through customer experience Best In Class Mobile App(1) Authentication Improvements Completed launch of new Corporate Banking Authentication platform. Launched new Enterprise Authentication Portal for Consumer Online Banking using cloud native technologies. Faster & More Transpare
Slide 45: Growth in digital
45 2.11 2.31 2.46 1Q21 1Q22 1Q23 2.03 2.73 3.55 1Q21 1Q22 1Q23 168 157 166 1Q21 1Q22 1Q23 20.5% 21.5% 22.4% 32.1% 32.9% 32.3% 47.4% 45.6% 45.3% 1Q21 1Q22 1Q23 85.5 82.6 101.9 74.7 65.8 75.3 10.8 16.8 26.6 Deposits Lending 1Q21 1Q22 1Q23 67% 70% 73% 33% 30% 27% 1Q21 1Q22 1Q23 Growth in digital Mobile
Slide 46: Continuous improvement framework
46 Continuous improvement framework • Making Banking Easier – Be intensely responsive to customer needs • Revenue Growth – Improve effectiveness in generating prudent, profitable, sustainable growth • Efficiency Improvements – Continuously leverage people and technology to improve processes, reduce
Slide 47: Asset quality
47 • Credit performance continues to normalize as expected • 1Q annualized NCOs totaled 35 bps • 1Q NPLs and business services criticized loans increased while total delinquencies decreased • 1Q ACL/Loans ratio remained stable; total ACL increase attributable to economic conditions and normalizing c
Slide 48: Commercial Real Estate
48 Commercial Real Estate Highly Diversified Total IRE Portfolio (including Unsecured CRE) • Unsecured loans for RE purposes generally have low leverage, with strong access to liquidity ◦ 68% of REITs are investment grade or mapped to IG risk rating (provide loss insulation to overall portfolio) ◦ B
Slide 49: Higher risk industry segments
49 Higher Risk Industry Segments (Outstanding balances as of March 31, 2023) (1) Amounts exclude PPP loans and Held For Sale loans. (2) GreenStreet Commercial Property Price Index as of April 6, 2023 - change in commercial property value for business office at a 25% discount. Business Services High
Slide 50: Allowance for credit losses waterfall
50 ACL After ASU 2022-02 $1,582 $(38) $1,544 $33 $38 $(19) $1,596 Allowance for credit losses waterfall 3/31/2023 • 1Q allowance increased $14M compared to prior quarter, resulting in a $135M provision expense. • Key drivers of the net increase in ACL: ◦ Credit quality changes and normalization with
Slide 51: Base economic outlook
51 Pre-R&S period 1Q2023 2Q2023 3Q2023 4Q2023 1Q2024 2Q2024 3Q2024 4Q2024 1Q2025 Real GDP, annualized % change 1.4 % 0.2 % 0.8 % 0.9 % 1.2 % 1.4 % 1.6 % 1.9 % 2.0 % Unemployment rate 3.6 % 3.8 % 3.9 % 4.2 % 4.2 % 4.3 % 4.3 % 4.3 % 4.2 % HPI, year-over-year % change 1.3 % (4.6) % (5.6) % (6.4) % (5.1
Slide 52: Allowance allocation
52 As of 3/31/2023 As of 12/31/2022 (in millions) Loan Balance ACL ACL/Loans Loan Balance ACL ACL/Loans C&I $51,811 $660 1.27 % $50,905 $628 1.23 % CRE-OO mortgage 4,938 103 2.10 % 5,103 102 2.00 % CRE-OO construction 306 7 2.24 % 298 7 2.29 % Total commercial $57,055 $770 1.35 % $56,306 $737 1.31 %
Slide 53: Well positioned for next downturn
53 All Other Commercial 3.6% Investor Real Estate 13.0% Financial Services 10.6% CRE Unsecured, including REITs 10.3% Govt. Education 9.9% Consumer Services 9.0% Technology Services 8.2% Manufacturing 8.1% Energy 2.6% Agriculture 0.5% Utilities 4.7% Business Services 7.6% Distribution 6.6% Healthcar
Slide 54: Consumer lending portfolio statistics
54 Consumer lending portfolio statistics • Avg. origination FICO 758 • Current LTV 52% • 98% owner occupied • Avg. origination FICO 775 • Current LTV 33% • 68% of portfolio is 1st lien • Avg. loan size $35,121 • $90M to convert to amortizing or balloon during 2023 • Avg. origination FICO 762 • Avg.
Slide 55: Leveraged portfolio
55 $3.1B Leveraged portfolio (outstanding balances as of March 31, 2023) • Consistent with Moody's historical Regional Bank Survey definition; Commitments >$5M with funded debt to EBITDA>4.0x ◦ Commitments are $4.2B • Not a strategic growth objective; used to support client relationships • Sponsor-o
Slide 56: SNC portfolio
56 14.7% 8.0% 7.6% 7.4% 6.6% 5.8%5.5% 5.4% 5.4% 33.6% Financial Services Manufacturing Information Diversified Wholesale Professional, Scientific & Technical Services Industrial Utilities Energy - Oil, Gas & Coal Other (Portfolios <5% of total) $27.0B SNC portfolio (outstanding balances as of March
Slide 57: Historical credit profile
57 Historical Credit Profile —% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% —% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% —% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% 5.00% —% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% Average Total Net Charge-Offs Average Non-Performing Lo
Slide 58: 2023 expectations
58 2023 expectations (1) Non-GAAP, see appendix for reconciliation. (2) The reconciliation with respect to forward-looking non-GAAP measures is expected to be consistent with actual non-GAAP reconciliations included in the attached appendix or in previous filings with the SEC. (3) 2Q and mid-point o
Slide 59: Environmental, Social & Governance
59 Environmental, Social & Governance ESG Governance ESG-related elements of the Strategic Plan, annual budget, and capital planning processBOARD OF DIRECTORS Board-Level Committees NCG Committee ESG strategies, initiatives, policies, and practices, along with related voluntary disclosures and stake
Slide 60: ESG progress
60 Promoting financial inclusivity Pursuing environmental sustainability Maintaining accountability for our ESG progress ▪ Further integrated ESG into our enterprise-wide strategic planning and risk management processes ▪ Formed a new Technology Committee of the Board of Directors to provide oversig
Slide 61: LIBOR Transition
61 LIBOR Transition The Last Act Moving to Final Phase of Transition Path to Completing the Transition From LIBOR For over two years Regions has been originating loans and derivatives using alternative indexes. Over the past year focus has been on proactive remediation of specific legacy LIBOR contr
Slide 62: Acquisitions exceeding expectations
62 Acquisitions exceeding expectations Ascentium Capital(1) EnerBank(2) Origination Growth • 1Q23 origination growth is up 15% from 1Q22 Cross Marketing • Contributing to growth are transactions originated through cross-marketing relationships with Commercial and Small Business Banking NCOs • 1Q 202
Slide 63: Appendix
> GENERATING Consistent Sustainable \ Long-term Performance APPENDIX AW REGIONS] 63
Slide 64: Selected items impact
64 Selected items impact First quarter 2023 highlights (1) Non-GAAP, see appendix for reconciliation. (2) Based on income taxes at an approximate 25% incremental rate. (3) Items impacting results or trends during the period, but are not considered non-GAAP adjustments. These items generally include
Slide 65: Non-GAAP measures
65 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 information to inves
Slide 66: Adjusted net charge-offs and ratio
66 Non-GAAP reconciliation Adjusted Net Charge-Offs and Ratio Year-Ended For the Quarter Ended ($ amounts in millions) 2022 12/31/2022 9/30/2022 6/30/2022 3/31/2022 Net loan charge-offs (GAAP) $ 263 $ 69 $ 110 $ 38 $ 46 Less: charge-offs associated with the sale of unsecured consumer loans 63 — 63 —
Slide 67: Adjusted AOCI for AFS plus HTM and cash flow hedges
67 Non-GAAP reconciliation Adjusted AOCI for AFS plus HTM and Cash Flow Hedges ($ amounts in millions) 12/31/2022 Unrealized losses on securities transferred to held to maturity, after-tax (GAAP) $ (9) Unrealized gains (losses) on securities available for sale, after-tax (GAAP) (2,561) Unrealized ga
Slide 68: Non-interest expense
68 Non-GAAP reconciliation Non-interest expense Twelve Months Ended December 31 ($ amounts in millions) 2022 2021 2020 2019 2018 2017 2016 Non-interest expense (GAAP) $ 4,068 $ 3,747 $ 3,643 $ 3,489 $ 3,570 $ 3,491 $ 3,483 Adjustments: Contribution to Regions Financial Corporation foundation — (3) (
Slide 69: Pre-tax pre-provision income (PPI)
69 Non-GAAP reconciliation Pre-tax pre-provision income (PPI) Quarter Ended ($ amounts in millions) 3/31/2023 12/31/2022 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) $ 588 $ 660 $ 404 $ 558 $
Slide 70: NII, non-interest income/expense, and efficiency ratio
70 Non-GAAP reconciliation NII, non-interest income/expense, and efficiency ratio NM - Not Meaningful Quarter Ended ($ amounts in millions) 3/31/2023 12/31/2022 9/30/2022 6/30/2022 3/31/2022 1Q23 vs. 4Q22 1Q23 vs. 1Q22 Non-interest expense (GAAP) A $ 1,027 $ 1,017 $ 1,170 $ 948 $ 933 $ 10 1.0 % $ 94
Slide 71: Non-interest income
71 Non-GAAP reconciliation Non-interest income Year Ended ($ amounts in millions) 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 Non-interest income (GAAP) $ 2,429 $ 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 1 (3)
Slide 72: Return on average tangible common shareholders' equity
72 Quarter Ended ($ amounts in millions) 3/31/2023 12/31/2022 9/30/2022 6/30/2022 3/31/2022 RETURN ON AVERAGE TANGIBLE COMMON SHAREHOLDERS' EQUITY Net income available to common shareholders (GAAP) A $ 588 $ 660 $ 404 $ 558 $ 524 Average shareholders' equity (GAAP) $ 16,457 $ 15,442 $ 16,473 $ 16,40
Slide 73: Return on average tangible common shareholders' equity
73 Non-GAAP reconciliation Return on average tangible common shareholders' equity 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 $ 2,146 $ 2,400 $ 991 $ 1,503 $ 1,695 $ 1,
Slide 74: Tangible common ratios
74 Non-GAAP reconciliation Tangible Common Ratios As of and for Quarter Ended ($ amounts in millions, except per share data) 3/31/2023 12/31/2022 9/30/2022 6/30/2022 3/31/2022 TANGIBLE COMMON RATIOS Shareholders’ equity (GAAP) A $ 16,883 $ 15,947 $ 15,173 $ 16,507 $ 16,982 Less: Preferred stock (GAA
Slide 75: Forward-Looking Statements
75 Forward-Looking Statements This presentation may include forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. The words “future,” “anticipates,” “assumes,” “intends,” “plans,” “seeks,” “believes,” “predicts,” “potential,” “objectives,” “estimates,” “expec
Slide 76: • Our inability to keep pace with technological changes, including those related to the
76 • Our inability to keep pace with technological changes, including those related to the offering of digital banking and financial services, could result in losing business to competitors. • Changes in laws and regulations affecting our businesses, including legislation and regulations relating to
Slide 77: • The effects of man-made and natural disasters, including fires, floods, droughts, tornadoes, hurricanes,
77 • The effects of man-made and natural disasters, including fires, floods, droughts, tornadoes, hurricanes, and environmental damage (specifically in the Southeastern United States), which may negatively affect our operations and/or our loan portfolios and increase our cost of conducting business.
Slide 78: Generating consistent, sustainable long-term performance
> GENERATING Consistent Sustainable Krizneterm Performance A REGIONS Ax REGIONS| 78