Regions Financial Corporation · NYSE:RF
Regions Financial — Keefe, Bruyette & Woods 2011 Boston Bank Conference
31 slides from Regions Financial's conference presentation, Mar 1, 2011
Slide 1: Keefe, Bruyette & Woods 2011 Boston Bank Conference
Keefe, Bruyette & Woods 2011 Boston Bank Conference March 1, 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
Slide 3: Regions
Ms REGIONS |
Slide 4: Our primary focus is returning to sustainable profitability
Our primary focus is returning to sustainable profitability through disciplined execution of our strategic priorities Our primary focus is returning to sustainable profitability through disciplined execution of our strategic priorities
Slide 5: 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 6: Strong Southeastern Franchise
Strong Southeastern Franchise Ranked 5 th 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 footpr
Slide 7: 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 8: 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 9: 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 10: Competitive Advantage: What Makes Us Different? Customer Loyalty
Competitive Advantage D riven by What Makes Us Different? Customer Loyalty 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 11: 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 Low Cost Deposits (1) Deposit Costs (1)
Slide 12: 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 Average Deposits $94.6B Average Deposits $96.5B
Slide 13: 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 2009 • Increased sales productivity with new account sales per branch improving 3.4% from 2009 • Continued efforts to improve checking por
Slide 14: Consumer Loan Production Improving; Consumers Continue to De-Leverage
Consumer Loan Production Improving; However Consumers Continue to De-Leverage Consumer Loan Production Consumer Loans *$5.2B in Mortgage production sold to Agencies Consumer Loan Production Consumer Loans
Slide 15: Middle Market and Small Business Comprise 81% of Business Service Revenue
Middle Market and Small Business Comprise 81% of Business Service Revenue Average Loans (1) Average Loans (1) (1) Average balances 4Q10 Small Business Business Banking (Metro Markets) Community Banking Branch Small Business Middle Market Commercial and Industrial Specialized Groups Commercial Real E
Slide 16: We are Growing Commercial Loans
We are Growing Commercial Loans Commercial & Owner Occupied Real Estate Loan Growth Commercial & Owner Occupied Real Estate Loan Growth
Slide 17: Core revenue continues to grow
Core revenue continues to grow ($ 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 18: 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 Net Income & Net Interest Margin Impact of Excess Liquidity & Non-Accruals on NIM 3.00% 3.27% 3.20% 3.19% 3.06%
Slide 19: 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 Migration to Fee Based Accounts Growth in Debit / ATM Fees
Slide 20: Strengthened Our Core Franchise Through Productivity & Efficiency Initiatives
Strengthened Our Core Franchise Through Productivity & Efficiency Initiatives (1) Excludes $6 billion goodwill impairment (2) Non-GAAP; refer to Appendix for Non-GAAP reconciliation ($ 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
Slide 21: Non-Performing Loan Inflows Decline
Non-Performing Loan Inflows Decline NPL Inflow by Type Business Services Gross NPLs Ending Balances NPL Inflow by Type Business Services Gross NPLs
Slide 22: 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 Non-Performing Assets
Slide 23: Conservative Marks and Reserves Already Taken on Impaired Loans
Conservative Marks and Reserves Already Taken on Impaired Loans Note1: Impaired loans include non-accrual commercial and investor real estate loans, excluding leasing, and all TDRs (including accruing commercial, investor real estate, and consumer TDRs) Note 3: Legal balance represents the contractu
Slide 24: Loan Charge-Offs and Allowance
Loan Charge-Offs and Allowance Loan Charge-Offs Allowance & Coverage (1) Loan charge-offs related Sales / Transfer to Held for Sale (2) Excludes loans held for sale Loan Charge-Offs Allowance & Coverage HFS (1)
Slide 25: Higher Risk Portfolio Segments Significantly Reduced
Higher Risk Portfolio Segments Significantly Reduced Total Investor Real Estate Higher Risk Investor Real Estate Segments Reduced Investor Real Estate $9.9 B or 38% over 4 years Reduced High Risk Segments $10.4 B or 76% over 4 years
Slide 26: Solid Capital; Above proposed Basel minimum ratios
Solid Capital; Above proposed Basel minimum ratios Basel Tier 1 Basel T1C
Slide 27: Favorable liquidity position
Favorable liquidity position Regions low loan to deposit ratio favorable among peers Favorable funding mix driven by low cost deposits * Based on 4Q10 ending balances
Slide 28: Why Regions?
Why Regions? • Strong Southeastern franchise with comprehensive line of business offerings • Leading brand favorability and exceptional service quality • Solid core business performance • Aggressively identifying and disposing of problem assets • Capital and liquidity remain solid
Slide 29: Regions
A REGIONS
Slide 30: Non-GAAP reconciliation - Revenue
Non-GAAP reconciliation - Revenue Note: The following table illustrates the method of calculating the Non-GAAP financial measures used in this slide presentation: ($ amounts in millions) 4Q09 1Q10 2Q10 3Q10 4Q10 Net Interest Income (GAAP) $ $ $ $ $ Non-Interest Revenue (GAAP) 1,213 Total Revenue (GA
Slide 31: 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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