Regions Financial Corporation · NYSE:RF
Regions Financial — Q1 2010 Earnings Presentation
19 slides from Regions Financial's earnings presentation, Apr 20, 2010
Slide 1: Regions Financial 1st Quarter Earnings Conference Call April 20, 2010
Exhibit 99.3 * * * * * Regions Financial * 1st Quarter Earnings Conference Call * April 20, 2010
Slide 2: Forward Looking Statements
Forward Looking Statements This press release 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 wh
Slide 3: Summary of First Quarter 2010 Results
Summary of First Quarter 2010 Results › Loss per diluted share of $0.21 › Net interest margin increased 5 bps to 2.77% › Average earning assets decreased 2%, driven primarily by targeted reduction in investor real estate › Non-interest revenues, as adjusted, declined 1% due largely to lower brokerag
Slide 4: Investor Real Estate Drives Loan Decline
Investor Real Estate Drives Loan Decline Ending Balances ($ in millions) 12/31/2009 3/31/2010 $ Change % Change Commercial & Industrial $ 21,547 $ 21,220 $ (327) -2% Commercial Real Estate - Owner-Occupied 12,805 12,626 (179) -1% Investor Real Estate 21,700 20,405 (1,295) -6% Residential First Mortg
Slide 5: Commercial Line Utilization Stabilizing
Commercial Line Utilization Stabilizing ($ in billions) Commercial $30.0 52% $25.0 $24.9 $24.5 $24.9 $24.7 50% $25.0 48% $20.0 47.5% 46% $15.0 45.4% 44% $10.0 42.8% 42% $5.0 41.2% 40.7% 40% $- 38% Mar'09 Jun'09 Sept'09 Dec'09 Mar'10 Commitments Utilization Rate › Commitment levels remain solid › Uti
Slide 6: Favorable Mix Shift to Low Cost Deposits
Favorable Mix Shift to Low Cost Deposits Average Balances and Average Rates ($ in millions) 12/31/2009 Avg Rate 3/31/2010 Avg Rate % Change % Change Low Cost Deposits $ 64,300 0.31% $ 68,456 0.31% $ 4,156 6% Time Deposits 31,961 2.86% 29,707 2.59% (2,254) -7% Customer Deposits 96,261 1.15% 98,163 1.
Slide 7: Record Setting Account Growth the Driving Force Behind Rising Customer Deposits
Record Setting Account Growth the Driving Force Behind Rising Customer Deposits › Exceeding 2009 record pace of new checking account $100.0 7% year over year 1.70% st growth in average openings; 248,000 in 1 customer deposits 1.60% quarter $95.0 1.50% › Retention remains better 1.40% than industry n
Slide 8: Recession-Related Expenses Impacting Core Pre-tax Pre-Provision Net Revenue (PPNR)
Recession-Related Expenses Impacting Core Pre- tax Pre-Provision Net Revenue (PPNR) $ in millions 4Q09 1Q10 $2,000 $1,500 850 831 $1,000 $500 743 734 $386 $397 $0 (988) (996) ($500) ($1,000) (219) (172) ($1,500) Net Interest Income Non-Interest Revenue Other Expenses Recession-Related Expenses ($ in
Slide 9: Improving Net Interest Margin; Expected to Rise throughout 2010 and Beyond
Improving Net Interest Margin; Expected to Rise throughout 2010 and Beyond $ in millions › Net interest margin climbed 5 bps $860 $853 $857 3.10% linked quarter; Expected to climb $850 3.00% to 3.00% by year-end 2010 $840 $839 $840 2.90% › Ongoing improvement in deposit mix and cost with substantial
Slide 10: NII Sensitivity Timeline
NII Sensitivity Timeline 7.00% 5.00% 3.00% 1.00% -1.00% -3.00% -5.00% -7.00% +100 -100 8
Slide 11: Non-Interest income impacted by lower Brokerage Income
Non-Interest income impacted by lower Brokerage Income Difference ($ in millions) 4Q09 1Q10 $ % Non-interest income, as reported $ 718 $ 812 $ 94 13% - Leveraged lease termination gains 71 19 - Securities gains / (losses) (96) 59 Core non-interest income $ 743 $ 734 $ (9) -1% › Brokerage income lowe
Slide 12: Core Non-Interest Expense Improves
Core Non-Interest Expense Improves Difference ($ in millions) 4Q09 1Q10 $ % Non-interest expense $ 1,219 $ 1,230 $ 11 1% - Branch consolidation charges 12 8 - Securities impairment - 1 - Loss on early extinguishment of debt - 53 Core non-interest expense $ 1,207 $ 1,168 $ (39) -3% › Legal and profes
Slide 13: Capital Ratios Remain Strong
Capital Ratios Remain Strong (1) 4Q09 1Q10 Total Risk-Based Capital 15.8% 15.8% Tier 1 Capital 11.5% 11.7% Tier 1 Common 7.1% 7.1% (1) Current Quarter ratios are estimated 11
Slide 14: NPA Migration Declining
NPA Migration Declining $ millions Net NPA* Change down 41% $2,000 4Q09 to 1Q10 $1,500 $1,000 $500 $0 1Q09 2Q09 3Q09 4Q09 1Q10 Net NPA Change Gross NPA Additions * Excludes non-performing assets held for sale 12
Slide 15: Disposed of over $3 Billion in Problem Assets Over Past 18 Months
Disposed of over $3 Billion in Problem Assets Over Past 18 Months $ millions $1,200 $1,039 $900 $689 $643 $554 $600 $281 $300 $228 $0 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 Sales Transfer to HFS Note: Dispositions include loans sold or moved to held for sale. The 03/31/10 balance in held for sale was $256MM.
Slide 16: Charge-Offs Stabilized
Charge-Offs Stabilized $ millions $1,000 $750 $680 $692 $700 $491 $500 $390 $250 $0 1Q09 2Q09 3Q09 4Q09 1Q10 Business Services Consumer Sales/Transfer to HFS 14
Slide 17: Troubled Debt Restructurings Decline; Primarily Performing Residential First Mortgages
Troubled Debt Restructurings Decline; Primarily Performing Residential First Mortgages $ in millions 2,000 1,800 1,600 1,400 1,200 1,000 800 600 400 200 0 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 Accruing Residential first mortgage Other Non-accrual or 90 or more days past due › Recidivism rate much
Slide 18: Credit Trends Stable: Will Improve
Credit Trends Stable: Will Improve › NPAs peak by the end of 2Q10 and decline thereafter › Charge-offs peak by the end of 2Q10 and decline thereafter › Charge-off guidance given at the July 2009 Investor Day Conference still holds: somewhere near midpoint of our $3.4 billion to $5.9 billion two year
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