Regions Financial Corporation · NYSE:RF
Regions Financial — Morgan Stanley Financials Conference 2014
19 slides from Regions Financial's conference presentation, Jun 10, 2014
Slide 1: Morgan Stanley Financials Conference
Morgan Stanley Financials Conference June 10, 2014 David Turner Chief Financial Officer Exhibit 99.1
Slide 2: Well positioned for growth
Well positioned for growth 2 (1) Based on ending balances (2) Non-GAAP – See appendix for reconciliation Note: Peer banks include BBT, CMA, FHN, FITB, HBAN, KEY, MTB, PNC, STI, USB, WFC, ZION Source: SNL Financial Liquidity Loan to deposit ratio(1) 78.5% 81.0% 88.1% 89.9% 1Q13 2Q13 3Q13 4Q13 1Q14 Bu
Slide 3: Solid balance sheet
Solid balance sheet 3 $94,133 $92,454 $92,321 $92,453 $93,393 87.0% 88.3% 89.1% 89.5% 90.1% 1Q13 2Q13 3Q13 4Q13 1Q14 Total Deposits Low Cost Deposits / Total Deposits ($ in millions) Deposits(1) ($ in millions) Loans(1) $73,936 $74,990 $75,892 $74,609 $75,680 1Q13 2Q13 3Q13 4Q13 1Q14 (1) Based on en
Slide 4: Loan Highlights
$7,322 $7,014 $6,930 $6,750 $6,992 1Q13 2Q13 3Q13 4Q13 1Q14 $2,483 $2,693 $2,889 $3,075 $3,253 1Q13 2Q13 3Q13 4Q13 1Q14 $96 $99 $112 $141 $161 1Q13 2Q13 3Q13 4Q13 1Q14 Credit card sales ($ in millions) Loan Highlights 4 Commercial and industrial loans(1) ($ in millions) Investor real estate lending(
Slide 5: Continued progress
Continued progress Net interest margin growth 5 Deposit costs improvement Note: Peer banks include BBT, CMA, FHN, FITB, HBAN, KEY, MTB, PNC, STI, USB, WFC, ZION Source: SNL Financial 3.13% 3.26% 3.41% 3.21% 1Q13 2Q13 3Q13 4Q13 1Q14 Regions Peer Average 0.18% 0.12% 0.24% 0.19% 1Q13 2Q13 3Q13 4Q13 1Q1
Slide 6: Non-interest revenue
Non-interest revenue • Expected to trend up from 1Q14 • Achieved net checking account growth in all market areas and grew quality households in all business groups in 1Q14, driven by philosophy • Mix of new mortgages continues to be driven by new home purchases • MBA projects overall market producti
Slide 7: Product and services innovation
Product and services innovation 7 Online / Mobile Contact Center Retail • Two Way Video Banker • Tablets • Universal Banker • Teller Kiosk • Deposit Secured Line of Credit • Intelligent Routing • Automated Phone System Personalization • Digital Wallet (Visa) • Small Business Mobile Deposits • Small
Slide 8: Channel optimization
Channel optimization 8 Continued Branch Rationalization Mobile Banking interactions increased 59% in 2013 81% of sales occur in a branch Branch transactions down 8% in 2013 Channel Integration
Slide 9: Expense management
Expense management 9 2.87% 2.91% 3.14% 3.00% 1Q13 2Q13 3Q13 4Q13 1Q14 Regions Peer Median 64.9% 66.9% 64.4% 65.5% 1Q13 2Q13 3Q13 4Q13 1Q14 Regions Peer Median Efficiency ratio(1) Non-interest expense* / average assets(1) (1) Non-GAAP – See appendix for reconciliation *Annualized Peer banks include:
Slide 10: Asset Quality
Net charge-offs and ratio ($ in millions) Allowance for loan losses / total loans 127 151 $180 $144 $114 $278 $82 0.99% 0.77% 0.60% 0.67% 0.44% 1Q13 2Q13 3Q13 4Q13 1Q14 Net Charge-Offs related to loan transfer Adjusted Net Charge-Offs ratio (1) See GAAP to non-GAAP reconciliation in appendix Peer ba
Slide 11: A Solid Start to 2014
A Solid Start to 2014 1Q14 Accomplishments • Achieved quality household growth • Achieved net checking account and credit card growth in all 19 market areas •Received no objection to capital plan 1Q14 Results • Experienced $1.1 billion in loan growth • Largest linked quarter loan growth in almost 6
Slide 12: Appendix
Appendix Ms REGIONS 12
Slide 13: Non-GAAP reconciliation: Tier 1 common
Non-GAAP reconciliation: Tier 1 common The following table provides calculations of Tier 1 capital (regulatory) and "Tier 1 common equity" (non-GAAP). Traditionally, the Federal Reserve and other banking regulatory bodies have assessed a bank's capital adequacy based on Tier 1 capital, the calculati
Slide 14: Non-GAAP reconciliation: Tangible book value
Non-GAAP reconciliation: Tangible book value 14 ($ amounts in millions, except per share data) 3/31/2014 12/31/2013 9/30/2013 6/30/2013 3/31/2013 TANGIBLE COMMON RATIOS—CONSOLIDATED Stockholders’ equity (GAAP) $ 16,132 $ 15,768 $ 15,489 $ 15,329 $ 15,740 Less: Preferred equity (GAAP) 442 450 458 466
Slide 15: Non-GAAP reconciliation: Non-interest expense, efficiency ratio
Non-GAAP reconciliation: Non-interest expense, efficiency ratio and non-interest expense to average assets ratio The table below presents computations of the efficiency ratio (non-GAAP), which is a measure of productivity, generally calculated as non-interest expense divided by total revenue. The ta
Slide 16: Non-GAAP reconciliation: Non-interest expense – full year
16 Non-GAAP reconciliation: Non-interest expense – full year (1) In the fourth quarter of 2013, Regions recorded a non-tax deductible charge of $58 million related to previously disclosed inquiries from government authorities concerning matters from 2009. Regions is in discussions with banking super
Slide 17: Non-GAAP reconciliation: Net charge-off ratio
Non-GAAP reconciliation: Net charge-off ratio Select calculations for annualized net charge-offs as a percentage of average loans are presented in the table below. During the fourth quarter of 2013, Regions made the strategic decision to transfer certain primarily accruing restructured residential f
Slide 18: Forward-looking statements
Forward-looking statements The foregoing list of factors is not exhaustive. For discussion of these and other factors that may cause actual results to differ from expectations, look under the captions “Forward-Looking Statements” and “Risk Factors" of Regions' Annual Report on Form 10-K for the year
Slide 19: A. REGIONS
A. REGIONS
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