Regions Financial Corporation · NYSE:RF
Regions Financial — Q4 2008 Earnings Presentation
14 slides from Regions Financial's earnings presentation, Jan 20, 2009
Slide 1: Regions Financial 4th Quarter Earnings Conference Call
Exhibit 99.3 Regions Financial 4th Quarter Earnings Conference Call January 20, 2009
Slide 2: Fourth Quarter 2008 Results
Fourth Quarter 2008 Results › Earnings per diluted share of ($9.01), ($0.35) excluding goodwill impairment › $6 billion, ($8.66) non-cash goodwill impairment charge › Full-year profit of $0.74 per share before goodwill impairment and merger charges › Credit quality › Sold or moved to held for sale (
Slide 3: Significant Earnings Drivers
Significant Earnings Drivers 4Q08 Goodwill Impairment Charge $ (8.66) Tax Settlement 0.40 Losses on Loan Sales/Held for Sale Markdowns (0.42) Provision above Net Charge-offs (0.32) MSR Impairment (0.09) Preferred Stock Issuance Impact (0.04) All Other 0.12 Earnings Per Diluted Share $ (9.01) 2
Slide 4: Credit Perspective
Credit Perspective Portion of the loan portfolio that is under stress comprises 9% of the total, down $3.1 billion over the past year. 12/31/2008 % of Total 12/31/2007 ($ in millions) Balance Portfolio Balance Change Homebuilder Lots $967 1.0% $1,608 ($641) Residential Presold 300 0.3% 618 (318) Res
Slide 5: Losses Contained in Smaller Portfolios
Losses Contained in Smaller Portfolios 30.00% 25.00% Note: Bar height represents charge-off percentage and width represents average balances as of December 31, 2008. 20.00% 15.00% 10.00% 5.00% 0.00% Total Loan Portfolio ($ in billions) 4
Slide 6: Increasing Florida Stress
WA. REGIONS Increasing Florida Stress Mm REGIONS OFPHES CONFORMING PROPERTIES HOME PRICE DEPRECIATION. ANNUAL ———"F pee Arquaizes Desrecioncn eee we SERS a 10% 15% Arrsenzes Depreciation (EERE 5-0 Anewetizes Dececiation (GGG 1-1 anrumues Deprecianon
Slide 7: Increases in Charge-Offs and Loan Loss Provision; Improvements in NPAs and Coverage Ratio
Increases in Charge-Offs and Loan Loss Provision Improvements in NPAs and Coverage Ratio ACL/NPL NPAs exc. HFS Net C/O % LLP $2,000 2.5x 3.50% $1,400 $1,800 $1,600 2.0x 3.00% $1,200 $1,400 2.50% $1,000 $1,200 1.5x 2.00% $800 $1,000 $800 1.0x 1.50% $600 $600 1.00% $400 $400 0.5x 0.50% $200 $200 $0 0.
Slide 8: Aggressive Non-performing Asset Management
Aggressive Non-performing Asset Management 2008 (in millions) 1Q 2Q 3Q 4Q Beginning NPAs1 864 1,204 1,621 1,642 Additions 523 730 721 1,004 Payments (62) (52) (70) (82) Returned to Accruing Status (4) (9) (19) (44) Charge-Offs/OREO Write-downs (92) (105) (180) (243) Dispositions/Held for Sale (25) (
Slide 9: Net Interest Income and Margin
Net Interest Income and Margin › Taxable-equivalent net interest income of $933 million › Down $41 million, excluding $43 million third quarter SILO impact › Stable earning asset volumes excluding proceeds from Government programs › Net interest margin of 2.96%, declined 28 basis points excluding th
Slide 10: Growing Customer Deposits
Growing Customer Deposits Deposit Portfolio - Average Balances % Change ($ amount in millions) 6/30/2008 9/30/2008 12/31/2008 4Q08 vs 3Q08 Low Cost Deposits $ 58,448 $ 56,690 $ 56,422 -0.5% Customer Deposits 85,696 84,460 87,864 4.0% Corporate Treasury Deposits 5,207 4,131 1,669 -59.6% Total Deposit
Slide 11: Q3 to Q4 2008 Non-Interest Revenue and Expense Changes
Q3 to Q4 2008 Non-Interest Revenue and Expense Changes Primarily Driven by Continued Economic Distress Non-Interest Revenue declined $18 million driven by lower market values on trust accounts and lower service charge revenue. Non-Interest Expense rose 7%, excluding Goodwill and MSR impairment charg
Slide 12: Capital Ratios
Capital Ratios Estimate 3Q08 4Q08 Tier 1 Capital Ratio 7.47% 10.39% Total Risk-Based Capital Ratio 11.70% 14.65% Tangible Equity to Tangible Assets 5.68% 5.23% › Tier 1 and total capital strengthened by Capital Purchase Program › Tangible ratio affected by an increase in tangible assets, a result of
Slide 13: Strong Funding and Liquidity
Strong Funding and Liquidity Funding Liquidity › Customer core deposits fund 59% of › Combined available liquidity from the total assets and 88% of loans Fed, FHLB, unpledged securities and unused lines exceeds $45 billion › Customer core deposits are 98% of total deposits › Large excess reserve bal
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