Regions Financial Corporation · NYSE:RF
Regions Financial — Financial Bancorp Analysts Association of Boston Fall Conference 2012
22 slides from Regions Financial's conference presentation, Nov 1, 2012
Slide 1: Financial Analysts Association of Boston Fall Conference
Exhibit 99.1 ExhibitFinancial BancAnalysts November David Chief Turner 99.11, 2012 Association Officer of Boston Fall Conference
Slide 2: Franchise Overview
FRANCHISE Ranked Bank Loans: Business Small Commercial Equipment Consumer Mortgage Home Credit Wealth Institutional Private Investment *As 2Insurance ofAssociates: and Equity Card October $75B Management Wealth 4th Services Direct mid-sized Services Finance Services or Services Real Deposits: Indire
Slide 3: Renewed Focus on Consumer and Business Lending
*3 Mort RENEWED CONSUMER 39% Mortgage $1B Non-real Consumer BUSINESS 61% Focused Broad Integrated 1st Other Card Credit 4% 3% Indirect 19% IRE 58% C&I 7% 23% 3Q12Equity Regions-branded of CRE* Home Consumer Business 45% based Total auto 41% Includes on estate loan approach loan middle SERVICES FOCUS
Slide 4: Business Services Focused on Specialized Industries
BUSINESS Specialized Our Experienced Healthcare (Nashville) Energy Restaurant 4Transportation (Houston) goal(Atlanta) is Technology/Defense to (Charlotte) lending SERVICES positive be thegroups premier year FOCUSED over are corporate headquartered year growth ONmiddle SPECIALIZED inthroughout all ma
Slide 5: Loan Outstandings and Commitments Increase
LOAN $30,801 25,020 26,272 41.7% 42.6% 40.2% 10,069 3Q10 Outstandings Commitments Pipelines Commercial 5Excludes in millions 4Q10 41.5% 40.3% 31,242 43.3% 10,592 COMMITMENTS $185 remain 1Q11 & 26,992 Commitments 43.1% and increased 32,228 11,265 million industrial solid 2Q11 Outstandings 28,029 11,6
Slide 6: 3Q12 Financial Highlights
3Q12 Diluted Highlights Pre-tax provision EPS Continuing Adjusted Operations $$513 $438 2.2% 2.1% 3Q11 1.9% PPI Loan Provision 6(1) in (1) millions from $485 Loss 2.2% 2.1% 4Q11 FINANCIAL Financial PPI Pre- EPS Non-GAAP Pre-tax Income1 $355 $503 (1) $0.22 (1) 1Q12 $481 $0.21 3.5% /$295 $481 RWA Pre-
Slide 7: Commercial and Investor Real Estate Loans
$COMMERCIAL 4.31% 4.35% 11,884 4.18% 4.29% 3Q11 Investor 7*Total in millions Loan loans loan 4Q11 4.29% 10,727 Ending Real real yields Balances* were 1Q12 estate $79,447 Estate 10,111 balances down were AND 2Q12 totaled expected Loan $77,594 9,447 and down $943 INDUSTRIAL 3Q12 Yield Loan $8.7 8,713
Slide 8: Funding Mix Continues to Improve
$FUNDING 21,369 46 40 37 32 28 74,778 3Q11 Low Avg. 4Q12 1H13 2H13 Deposit 8*Total inbps millions Cost time funding 4Q11 - 75,381 19,774 $3B $4.9B $2.3B Balances* repricing costs Average Deposits deposits MIX 1Q12 at$96,147 declined costs at2.10% 19,053 77,008 1.69% 0.66% CONTINUES Balances opportun
Slide 9: Net Interest Margin Impacted by Low Rate Environment
NET Securities Non-accrual Cash $859 $3millions in 3.08% 3Q11 3.04% Net 9(1) .09% interest Interest INTEREST $858 reserves 4Q11 3.08% From 3.16% portfolio $839 1Q12 margin Income loans negatively continuing $850 MARGIN 2Q12 impacted yield was and (FTE) $830 impacted 3Q12 Net impacted operations Net
Slide 10: Record Mortgage Income Drives Higher Non-Interest Revenue
RECORD Fee $524 millions 84 $in 24 26 68 57 263 310 90 3Q11 Service Credit Non-interest Other At Mortgage 1027 137 142 28 24 77 the Income 254 $533 4Q11 26 23 106 end Card/Bankcard 135 137 charges 233 $513 18 23 revenues loan MORTGAGE of1Q12 by revenue 244 the $507 production Quarter Mortgage third
Slide 11: Non-Interest Expenses Impacted by Credit Expenses
NON-INTEREST Non-interest Held Overall Non-Interest Other millions $in $(16) 3Q11 (1) 15 11$850 $33for $(4) 4Q11 real Real $871 2012 From $913 $48 sale estate Estate 1Q12 expenses $842 Expenses1 experienced expenses continuing expenses and 2Q12 EXPENSES $869 HFS were from 3Q12 operations net increas
Slide 12: Continued Momentum in Asset Quality Metrics
CONTINUED $7,305 $5,131 NPL 39% $381 $463 $561 *Year-over-year **Excludes 30% $2,710 $2,372 $1,915 109% NPLs Loan $355 millions $in 358 141 282 (156) 136 3Q11 Business Reserve Consumer in153 $2,151 148129 191 millions Decline* Decline Gross $315 91% Loss (135) 4Q11 ALL $26 and $117 120% 118% $1,884
Slide 13: Capital Ratios Remain Strong
CAPITAL Basel Loan 81% 83% 79% 12.8% 3.8% 9.0% (2) 179% (1) Tier 9.6% 10.5% 82%. 3Q11 (3) 13 80% to 11.0% 3.9% 9.4% III Capital 13.3% deposit Deposit 10.0% 8.5% 4Q11 Tier RATIOS 10.5% 11.5% 114.3% Ratio Common Capitalapital Common Current 1Q12 Non-GAAP Includes ratio 11.0% RatioREMAIN –remains Quart
Slide 14: Appendix
APPENDIX AXREGIONS “
Slide 15: Forward-Looking Statements
FORWARD-LOOKING This provides looking related available materially Treasury rules, industry, whose economic Possible Regions’ Changes Factors” 2012 The the 16 date Dodd-Frank cost effects foregoing words presentation and including terms tostatements. made. additional regulations stresses downgrades
Slide 16: Non-GAAP Reconciliation
NON-GAAP The accounting “earnings period-to-period management Management reporting performance audited. substitute effectively ($ Preferred impairment Net shareholders Goodwill deductible) Income shareholders, Weighted-average GAAP) Èarnings diluted Earnings excluding (1) 17 amounts income table (G
Slide 17: Non-GAAP Reconciliation
NON-GAAP The believes results adjustments will aare Quarter 3Q12 ($ common Preferred Income taxes Provision (non-GAAP) Goodwill Pre-tax excluding 18substitute amounts not Pre-Tax permit (GAAP) 3Q12 of audited. pre-provision tax (loss) Ended that shareholders the dividends impairment for goodwill inv
Slide 18: Non-GAAP Reconciliation
NON-GAAP The (non-GAAP), interest excluding added these These consider Company Quarter ($ Continuing Branch Goodwill Net Non-interest Securities Adjustments: Leveraged Adjusted Fee Efficiency 19 amounts interest income table adjustments together non-GAAP consolidation expense Ended the non-interest
Slide 19: Non-GAAP Reconciliation
NON-GAAP The adequacy regulators analysts banking Regions’ assigned together the common As ($ TIER Stockholders’ Accumulated Non-qualifying Disallowed Qualifying Preferred Risk-weighted Tier (1) 20 amounts of Tier following 1 and 1common capital COMMON 1regulations, and Current to equity capital sto
Slide 20: Non-GAAP Reconciliation
NON-GAAP Regions’ Quarter ($ TIER Stockholders’ Accumulated Non-qualifying Disallowed Qualifying Series Retirement Risk-weighted Tier (1) 21 amounts 1 1capital ARISK-BASED Ended Current preferred Preferred Series non-controlling trust of in deferred servicing RECONCILIATION: and as ratio(1) ratio ot
Slide 21: Non-GAAP Reconciliation
NON-GAAP The currently In emphasis Implementation including finalized. entities provide Estimate 2012 Proposed ($ Stockholders’ Non-qualifying Adjustments, tax Basel (1) (2) of 22 December amounts the Under [Regions assets, following U.S. Irequirements.] III risk-weighted may investors Tier risk-wei
Slide 22: Regions
REGIONS
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