Regions Financial Corporation · NYSE:RF
Regions Financial — Investor Presentation (August 2024)
85 slides from Regions Financial's investor presentation, Aug 19, 2024
Slide 1: Investor Information August - September
Investor Information August - September Exhibit 99.1
Slide 2: Table of Contents
2 Table of Contents Topic Page # Profile and Strategy 3-12 Asset / Liability Management 13-23 Fees & Expenses 24-32 Business Segment Highlights 33-35 Loans & Deposits 36-44 Capital, Debt & Liquidity 45-47 Technology 48-51 Credit 52-64 Near-Term Expectations 65 Environmental, Social & Governance 66-6
Slide 3: Our Banking Franchise
3 Alabama – 186 Georgia – 117 Iowa – 5 Mississippi – 98 South Carolina – 18 Arkansas – 57 Illinois – 41 Kentucky – 9 Missouri – 49 Tennessee – 195 Florida – 272 Indiana – 40 Louisiana – 80 North Carolina – 6 Texas – 88 Ranked 19th in the U.S. in total deposits(1) Branch Locations by State(2) Our Ban
Slide 4: Diversified Lines of Businesses
4 Diversified Lines of Businesses Retail Branch network, ATMs, deposit accounts, credit cards, home equity loans, etc. Includes small businesses serviced through the branch Mortgage ~300 Mortgage Loan Officers providing home financing to Customers; Business also has ~$70B in UPB for mortgage servici
Slide 5: Profile Evolution and Improved Credit Risk Profile
5 CCAR Loan Loss Rate Profile Evolution Improved Credit Risk Profile Continuous Improvement Proactive Interest Rate Hedging Exited Non-Core Businesses Strategic M&A Top Quartile Profitability $24 $9 2008 2023 Investor CRE ($ in billions) 8.1% 7.8% 2012 2024 Customer Journeys Organization Simplificat
Slide 6: Top Market Share
6 Top Market Share Plays valuable role in the competitive landscape (1) Based on MSA and non-MSA counties using FDIC deposit data as of 6/30/2023; pro-forma for announced M&A transactions as of 7/29/2024. (2) Significant money center bank presence (JPM, BAC, C, WFC) defined as combined market share
Slide 7: Strong In-Market Migration
7 Strong In-Market Migration Converted legacy core markets into growth markets Serving Fast-Growing MSAs Deposits Market Rank(1) Nashville, Tennessee $10.0 3 Tampa, Florida $6.5 5 Atlanta, Georgia $5.8 7 Orlando, Florida $2.7 6 Knoxville, Tennessee $2.7 3 Huntsville, Alabama $2.7 1 Dallas/Ft Worth,
Slide 8: Regions Receives Top Honors
8 Regions Receives Top Honors Regions Bank was recognized as a 2024 Silver Status Military Friendly and Military Spouse Friendly Employer Regions Bank was named a Gallup Exceptional Workplace Award Winner for the 10th consecutive year. For the fourth consecutive year, Regions Bank was named a Best P
Slide 9: Second Quarter Overview
9 Second Quarter Overview Continue to deliver consistent, sustainable long-term performance (1) Non-GAAP, see appendix for reconciliation. Key Performance Metrics 2Q24 Reported Adjusted(1) Net Income Available to Common Shareholders $477M Diluted Earnings Per Share $0.52 Total Revenue $1.7B $1.8B No
Slide 10: Regions' Consistent Outperformance
10 Regions' Consistent Outperformance Adjusted PPI(1) Less Net Charge-offs to RWA(2) Regions' earnings, including credit costs, have been top quartile vs peers since 2019 1.96% 1.99% 2.30% 2.47% 2.31% 1.86% 2.07% 1.95% 1.78% 1.88% 1.96% 1.73% 1.58% 1.61% RF Peer Median 2019 2020 2021 2022 2023 1Q24
Slide 11: ROATCE: Industry Leading Performance
11 ROATCE: Industry Leading Performance 14.9% 9.2% 21.4% 24.1% 21.9% 14.3% 20.8% 14.7% 8.5% 16.5% 19.3% 16.4% 12.9% 15.5% RF Peer Median 2019 2020 2021 2022 2023 1Q24 2Q24 ROATCE Performance Trend vs. Peers(1) (1) Non-GAAP; see Appendix for reconciliation. Peers include CFG, CMA, FHN, FITB, HBAN, HW
Slide 12: Consistent Top Quartile EPS Growth
12 Consistent Top Quartile EPS Growth 3 Year EPS CAGR 27% 26% 25% 22% 21% 17% 15% 13% 12% 4% 2% (7)% (11)% RF Pe er 1 Pe er 2 Pe er 3 Pe er 4 Pe er 5 Pe er 6 Pe er 7 Pe er 8 Pe er 9 Pe er 1 0 Pe er 1 1 Pe er 1 2 Pe er 1 3 5 Year EPS CAGR 9% 7% 4% 4% 1% 1% 1% —% (1)% (2)% (2)% (3)% (5)% (12)% RF Pe e
Slide 13: Consistent NIM Outperformance
13 • Regions' naturally asset sensitive balance sheet mix and funding advantage consistently produces above peer median net interest margin • Under elevated rate environment, deposit cost stability leads to margin outperformance • Under lower rates, the hedging strategy protects the funding advantag
Slide 14: Net Interest Income Drivers
14 (1) Market rate impacts include contractual loan, cash and borrowings repricing; fixed asset turnover at higher market rates; securities premium amortization net discount accretion $2M lower vs 1Q at $11M. (2) Other mostly from reversal of seasonal asset dividends received in 1Q and the higher av
Slide 15: 2024 NII Range and Assumptions
15 • Flatter yield curve (compared to 6/30) • Business performance underperforms expectations including full cycle interest- bearing deposit beta above ~45% with deposit outflows or continuous remixing 2024 NII Range and Assumptions "Neutral" interest rate risk position; NII performance will depend
Slide 16: Balance Sheet Profile
16 • Balance sheet position naturally benefits from higher interest rates (i.e. asset sensitive), supported by ◦ Large floating rate loan mix ◦ Large, stable deposit base as evidenced over multiple rate cycles • Fixed-rate securities and receive-fixed hedges insulate the natural interest rate sensit
Slide 17: Balance Sheet Positioning Advantage
17 Balance Sheet Positioning Advantage Strong deposit franchise and funding position provide an opportunity for flexibility and margin outperformance in an evolving rate environment **All balances are ending as of 6/30/24; Source: SEC reporting. Loan-to-Deposit Ratio 97% 86% 84% 83% 82% 81% 80% 80%
Slide 18: Interest-bearing Deposit Costs and Betas
18 Total Deposit Yield (%) EO P To ta l D ep os it G ro w th 1 1.5 2 2.5 3 0 10 20 30 40 2.50% 5.50% 0.82% 2.34%1.03% 2.94% Fed Funds RF IB Deposit Cost Peer Median 3Q 16 1Q 17 3Q 17 1Q 18 3Q 18 1Q 19 3Q 19 1Q 20 3Q 20 1Q 21 3Q 21 1Q 22 3Q 22 1Q 23 3Q 23 1Q 24 —% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00%
Slide 19: Interest-Bearing Deposit Mix
19 % of 2 Q 24 E nd in g In te re st -B ea ri ng D ep os it s Interest-bearing Deposits: $86B (labels represent % of IB Deposits) Interest-Bearing Deposit Mix Composition of deposit book affords ability to maintain cost advantage if rates decline; When combined with hedges, creates a well protected
Slide 20: Hedging Program
20 Notional Fixed Rate Maturity AFS Securities(3) $1.3B 4.8% 0.9 years Debt(3) (4) $1.4B 0.6% 2.3 years Time Deposits(3) $0.3B 5.0% 0.4 years 1 2 3 4 Cash Flow Hedge Notional(1) (1) Floating rate leg of swaps vs overnight SOFR. (2) Collars use short interest rate caps to pay for long interest rate f
Slide 21: Securities Portfolio Overview
21 Agency/UST 6% Agency MBS 69% Agency CMBS 22% Corporate Bonds 3% Securities Portfolio - Overview Provides downside rate protection/liquidity Securities Portfolio Composition(1) $29.3B • Portfolio constructed to protect against changes in market rates ◦ Duration is fully extended at ~4.5 years as o
Slide 22: Securities Portfolio - Repositioning
22(1) NII estimate and payback assumptions use Market Forwards as of trade completion dates. (2) Point in time impact; portfolio duration is naturally shortening and repositioning provides offset. Securities Portfolio - Repositioning Provides efficient use of capital/downside protection Rationale fo
Slide 23: Securities Portfolio - AOCI Management
23 2) Held to Maturity (HTM) Accounting Designation (1) Information as of 6/30/2024; HTM AOCI adjusted for true Fair Value, AOCI in CET1 (No AFS Opt Out) includes AOCI related to AFS, HTM and Pension related obligations; Source: Call Reports, RC-R and RC-B. (2) Peers include: CFG, CMA, FHN, FITB, HB
Slide 24: Non-Interest Income
24 $576 $613 $595 2Q23 1Q24 2Q24 ($ in millions) Change vs 2Q24 1Q24 2Q23 Service charges $151 2.0% (0.7)% Card and ATM fees 120 3.4% (7.7)% Wealth management income 122 2.5% 10.9% Capital markets (Ex CVA/DVA) 70 (24.7)% (9.1)% Mortgage income 34 (17.1)% 30.8% Non-Interest Income (1) Non-GAAP; see a
Slide 25: Diversified Non-Interest Income
25 Consumer 45% Wealth Management 21% Corporate 34% 2Q24 Fee Revenue by Segment(1) Diversified Non-Interest Income • Consumer fee income categories include service charges on deposit accounts, card and ATM fees, and mortgage income generated through origination and servicing of residential mortgages
Slide 26: Track Record of Expanding Fee Based Services
26 Track Record of Expanding Fee Based Services Proven Non-Interest Income ResiliencyAdjusted Non-Interest Income(1) Diversified revenue growth through expanded fee-based services (1) Non-GAAP; see appendix for reconciliation. Amounts disclosed in years 2023-2016 represent the initial amounts report
Slide 27: Capital Markets
27 Capital Markets Growing products & services that our clients value Our associates delivered results • 2024 June YTD Capital Markets revenue ex. CVA/DVA of $163M up 7% vs 2023 June YTD driven by increased Investment Grade bond activity and strong Real Estate multifamily originations. • CVA/DVA imp
Slide 28: Treasury Management
28 +8% Treasury Management Revenue(1) +6% Portfolio of Treasury Management Clients(2) +2% Digital, Payment & Integrated Services Revenue(3) +10% Global Trade Services Dollar Volume(4) Continually Investing in Technology First in the marketplace to launch Visa Commercial Pay- Mobile to provide improv
Slide 29: Wealth Management
29 Wealth Management NIR(1) ($ in millions) The Value We Bring To Our Clients The Client Experience Every client is unique and deserves a tailor-made path to confidently reach their evolving financial goals. Wherever you are, and wherever you are going, we offer a dedicated team, specialized experti
Slide 30: Mortgage
30 Mortgage Remains a key component of fee revenue (1) Mortgage Bankers Association – July 2024 Forecast. (2) Includes residential owned portfolio and serviced for others. (3) MBA/Stratmor PGR FY23. Mortgage Income ($ in millions) Strong Performance Industry-Leading Low-Cost Servicer Delivery Effici
Slide 31: Non-Interest Expense and Efficiency Ratio
31 $1,111 $1,131 $1,004 56.4% 64.3% 57.6% Non-interest expense Efficiency ratio 2Q23 1Q24 2Q24 $3,387 $3,419 $3,434 $3,443 $3,541 $3,698 $3,886 $4,262 $135 Adjusted non-interest expense Incremental operational losses Include expenses associated with acquisitions 2016 2017 2018 2019 2020 2021 2022 20
Slide 32: Efficiency Ratio vs. Peers
32 Efficiency Ratio vs. Peers 2Q24 Efficiency Ratio vs. Peers FY23 Efficiency Ratio vs. Peers 53.8% 55.1% 56.5% 57.3% 57.8% 58.6% 59.0% 59.1% 60.5% 64.3% 64.4% 65.8% 67.5% 70.4% Peer 1 Peer 2 Peer 3 RF Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 Peer 10 Peer 11 Peer 12 Peer 13 Peer 14 52.6% 54.2% 55.3% 55.6%
Slide 33: Consumer Banking Group
33 Consumer Banking Group Driving growth and customer engagement through strategic investments (1) J.D. Power 2024 U.S. Banking Online Satisfaction Study; among banks with $70B to $200B in deposits, which measures customer satisfaction with financial institutions’ website experience for banking acco
Slide 34: Corporate Banking Group
34 Corporate Banking Group Driving continued long-term performance for our clients & our shareholders (1) Reflects Corporate Banking Group Segment results only; excludes Branch Small Business losses. (2) YTD Treasury Management Revenue Growth, June '24 to June '23. (3) YoY Client Growth, June '24 to
Slide 35: Wealth Management Group
35 Record quarterly NIR in 2Q24 with growth of $11.1M, or 10%, YoY driven by strong production and improved market conditions Assets Under Management increased 8% YoY driven by IM&T Sales and improved equity market conditions Grew Total Investment Services Assets +$2.0B or 11%, YoY 2Q24 Average Depo
Slide 36: Loans
36 $99.2 $96.9 $97.5 66.0 63.6 64.2 33.2 33.3 33.3 2Q23 1Q24 2Q24 $98.6 $97.4 $97.3 65.7 64.0 64.0 32.9 33.4 33.3 2Q23 1Q24 2Q24 Average Loans & Leases ($ in billions) Business LoansConsumer Loans Ending Loans & Leases ($ in billions) Loans • Avg and ending loans remained relatively stable • Avg bus
Slide 37: Average Loan Composition
37 $50.0 $4.8 $0.4 $6.6 $2.2 Commercial and Industrial CRE Mortgage - OO CRE Construction - OO IRE - Mortgage IRE - Construction 2Q24 Average Loan Composition $20.2$5.6 $6.2 $1.3 Mortgage Home Equity Other Consumer Consumer Credit Card Average Consumer Loans $33.3B Average Business Loans $64B ($ in
Slide 38: Commercial & IRE Loans
38 Commercial & IRE Loans As of 6/30/24 ($ in millions) Total Commitments Outstanding Balances % Utilization(2) Administrative, Support, Waste & Repair $2,257 $1,482 56% Agriculture 365 240 48% Educational Services 4,181 3,311 39% Energy 4,984 1,579 32% Financial Services - Banking & Trust 10,635 4,
Slide 39: Ascentium & EnerBank
39 Ascentium & EnerBank (1) Key portfolio metrics were provided with the company's original acquisition announcement on Form 8-K dated February 27, 2020. (2) Key portfolio metrics were provided with the company's original acquisition announcement on Form 8-K dated June 8, 2021. 2Q24 Ascentium Capita
Slide 40: Deposits
40 $127.0 $129.0 $126.6 81.6 81.1 80.1 35.3 37.1 36.5 7.2 7.8 7.4 2.9 3.0 2.6 2Q23 1Q24 2Q24 $125.5 $127.1 $126.9 81.0 79.2 79.8 34.9 37.1 36.7 7.4 7.7 7.5 2.2 3.1 2.9 2Q23 1Q24 2Q24 (1) Other deposits represent non-customer balances primarily consisting of wholesale funding (for example, Eurodollar
Slide 41: Checking Balances & Spending Levels
41 • Pre-pandemic, customers maintained a relatively steady ratio of checking balances to spending activity. • After a period of elevated balances during 2020-2023, customers have returned to a similar pre-pandemic level of ~1.7x monthly spending activity. • The return to historical levels suggests
Slide 42: Diversified Deposit Base
42 Diversified Deposit Base Insured/Uninsured Deposit Mix(1)(2) • ~74% of Total Deposits are covered by FDIC insurance or are collateralized (Public Funds or Trust); >95% of Total Deposits are associated with customers who reside within our 15-state branch footprint • Wholesale deposits are well-div
Slide 43: Diversified Deposit Base (cont'd)
43 • Regions' utilization of wholesale-like brokered deposits is minimal. 57% 55% 52% 50% 45% 44% 44% 43% 42% 42% 40% 39% 38% 36% RF Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 Peer 10 Peer 11 Peer 12 Peer 13 1% 2% 2% 2% 3% 4% 5% 6% 7% 8% 8% 9% 11% 13% Peer 8 RF Peer 7 Peer 3 Peer
Slide 44: Deposit Advantage
44 Deposit Advantage Well diversified deposit base vs. peers (1) As of 6/30/2024. Source: Bank Call Reports / SEC filings. Peers include CFG, CMA, FHN, FITB, HBAN, HWC, KEY, MTB, PNC, SNV, TFC, USB, ZION. ...Resulting in one of the highest mix of FDIC insured deposits amongst peers % of Total Deposi
Slide 45: Capital and Liquidity
45 • Basel III Endgame - Estimate a low to mid-single digit increase in RWAs under the Expanded Risk Based Approach in addition to the phase-in of AOCI into regulatory capital ◦ CET1 adjusted to include AOCI at 6/30 is estimated at 8.2%(4) • Declared 2Q common dividends of $220M and executed $87M in
Slide 46: Tangible Common Equity
46 6.09% 5.82% 6.79% 6.42% 6.55% 8.14% 8.37% 8.50% 8.34% 8.50% TCE Ratio Adjusted TCE Ratio, ex-AOCI 2Q23 3Q23 4Q23 1Q24 2Q24 5% 6% 7% 8% 9% 10% Tangible Common Equity (1) Non-GAAP, see Appendix for reconciliation. • Higher levels of interest rates are generally beneficial to Regions through expansi
Slide 47: Common Equity Tier 1
47 10.1% 10.3% 10.3% 10.3% 10.4% 7.8% 7.5% 8.3% 8.1% 8.2% CET1 Ratio Adjusted CET1 Ratio, Incl. AOCI 2Q23 3Q23 4Q23 1Q24 2Q24 6% 7% 8% 9% 10% 11% 12% Common Equity Tier 1 (1) Current quarter ratios are estimated. (2) Non-GAAP, see Appendix for reconciliation. Common Equity Tier 1 Ratio(1) • CET1 rem
Slide 48: Investing for Growth
48 Return optimization of commercial, OORE and IRE loans began through Capital Commitments Working Group Investing for Growth Maintaining Focus on Capital Optimization and Expanded Client Capabilities 2014 - 2015 2018 2019 20202016 Acquisition of HUD (MAP) License Acquisition of Fannie Mae DUS Licen
Slide 49: Empowered by Data & Innovation
49 Empowered by Data & Innovation Regions remains competitive by reserving ~9–11% of revenue for technology spend Next Gen Platforms Next Generation of Customer Experience and Core Banking and Data Platforms Modernization efforts began in 2021 with runway through 2027 to complete the overall program
Slide 50: Expanded Regions Reggie Messaging
50 Expanded Regions Reggie® Messaging External- and internal-facing messaging volume and usage has grown by 6% in 2Q24 Vs 2Q23 Automated Non-Agent Interactions 86.6% average interaction resolution rate2 in 2Q24 Authentication Improvements Deployed additional authentication and fraud risk mitigation
Slide 51: Growth in Digital
51 2.36 2.52 2.59 2Q22 2Q23 2Q24 2.99 3.85 4.89 2Q22 2Q23 2Q24 159 174 186 2Q22 2Q23 2Q24 22.2% 23.6% 24.3% 32.2% 31.9% 31.3% 45.6% 44.5% 44.4% 2Q22 2Q23 2Q24 2.5 5.0 5.2 2Q22 2Q23 2Q24 71% 74% 75% 29% 26% 25% 2Q22 2Q23 2Q24 Growth in Digital Mobile Banking Log-Ins (Millions) Customer Transactions(2
Slide 52: Historical Credit Profile
52 0.87% —% 0.50% 1.00% 1.50% 2.00% 2.50% 0.42% —% 0.50% 1.00% 1.50% 2.00% Historical Credit Profile Non-Performing Loans Total Net Charge-Offs 1Q20 2Q24 4Q221Q20 4Q22 2Q24 • Non-Accrual and loss rate levels are reverting to historical pre-pandemic ranges as expected and will continue to do so durin
Slide 53: Historical Credit Profile: Consumer and Commercial NCOs
53 0.61% —% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 0.32% —% 0.50% 1.00% Consumer Net Charge-Offs(2) Commercial Net Charge-Offs(1) 1Q20 2Q24 4Q22 1Q20 4Q22 2Q24 (1) Includes C&I, CRE - OO and IRE. (2) The spike in Consumer net charge-offs in late 2013 was associated with the move of ~$700M primari
Slide 54: Asset Quality
54 • 2Q annualized NCOs totaled 42 bps, decreasing 8 bps on a reported basis • 2Q NPL decrease attributable primarily to slowing pace of downgrades and increased paydowns and loan sales • 2Q ACL remained flat attributable to relatively stable economic forecast and improvement in overall risk profile
Slide 55: Portfolios of Interest
55 Portfolios of Interest • Regions is taking additional steps to manage the most rate sensitive parts of the portfolio following unprecedented speed and magnitude of FED hikes (+5% in <18 months) • Continued enhanced quarterly credit servicing of the Office and Multi-Family portfolios, including lo
Slide 56: Commercial Real Estate
56 Commercial Real Estate (Outstanding balances as of June 30, 2024) Highly Diversified Portfolio (IRE including Unsecured CRE) (1) Excludes $5.2B of Owner-occupied CRE whose source of repayment are individual businesses, and whose credit performance resembles Commercial during periods of stress. (2
Slide 57: CRE - Office Portfolio
57 CRE- Office Portfolio (Outstanding balances as of June 30, 2024) (1) $ in Millions. Amounts include IRE and CRE Unsecured loans but exclude Held For Sale loans. Metrics represent 06/30/2024 results except for charge-offs, which are the 6 months ended June 30, 2024, annualized, based on average ba
Slide 58: CRE - Multi-Family Portfolio
58 CRE- Multi-Family Portfolio (Outstanding balances as of June 30, 2024) Key Portfolio Metrics(1) Balances $ $4,279 % of Total Loans 4.4% NPL $0 NPL / Loans —% Charge-offs $0 Charge-offs / Loans —% ACL $77 ACL / Loans 1.8% • WA LTV 52% (based on appraisal at origination or most recent received); St
Slide 59: Transportation - Trucking
59 Transportation - Trucking (Outstanding balances as of June 30, 2024) (1) $ in Millions. Metrics represent 06/30/2024 results except for charge-offs, which are the 6 months ended June 30, 2024, annualized, based on average balances. NPL & ACL percentages are based on Portfolio totals. Metrics are
Slide 60: Allowance for Credit Losses
60 $1,731 $(21) $20 $2 $1,732 Allowance for Credit Losses 06/30/2024 • 2Q allowance essentially flat compared to the prior quarter, resulting in a $102M provision expense • Primary drivers of the overall flat ACL were a relatively stable economic forecast and improvement in the overall portfolio ris
Slide 61: Base R&S Economic Outlook
61 Pre-R&S period 2Q2024 3Q2024 4Q2024 1Q2025 2Q2025 3Q2025 4Q2025 1Q2026 2Q2026 Real GDP, annualized % change 2.1 % 1.9 % 2.2 % 2.4 % 2.3 % 2.4 % 2.1 % 2.1 % 2.2 % Unemployment rate 3.9 % 4.0 % 4.1 % 4.2 % 4.2 % 4.2 % 4.1 % 4.1 % 4.0 % HPI, year-over-year % change 4.6 % 3.2 % 2.3 % 2.2 % 2.6 % 3.1
Slide 62: Allowance Allocation
62 As of 6/30/2024 Day 1 Ratios (in millions) Loan Balance ACL ACL/Loans Actual Proforma C&I $47,590 $570 1.20 % CRE-OO mortgage 4,781 109 2.27 % CRE-OO construction 370 11 3.07 % Total commercial $52,741 $690 1.31 % 1.33 % 1.32 % IRE mortgage 6,536 210 3.20 % IRE construction 2,301 31 1.36 % Total
Slide 63: Highly Diversified Business Portfolio
63 All Other Commercial 3.8% Investor Real Estate 13.8% Financial Services 12.5% CRE Unsecured, including REITs 10.5% Govt. Education 10.0% Consumer Services 8.5% Technology Services 7.4% Manufacturing 7.5% Energy 2.4% Agriculture 0.4% Utilities 3.7% Business Services 8.0% Distribution 6.4% Healthca
Slide 64: Consumer Lending Portfolio
64 Consumer Lending Portfolio • Avg. origination FICO 757 • Current LTV 52% • 98% owner occupied • Avg. origination FICO 773 • Current LTV 35% • 62% of portfolio is 1st lien • Avg. loan size $34,529 • $79M to convert to amortizing or balloon during 2024 • Avg. origination FICO 750 • Avg. new loan $1
Slide 65: 2024 Expectations
65 2024 Expectations (1) Non-GAAP, see appendix for reconciliation. (2) The reconciliation with respect to forward-looking non-GAAP measures is expected to be consistent with actual non-GAAP reconciliations included in the attached appendix or in previous filings with the SEC. (3) Expectations assum
Slide 66: Environmental, Social, and Governance: Governance
66 Environmental, Social, and Governance Delivering shared value through strong governance practices GOVERNANCE OF ESG-RELATED RISKS AND OPPORTUNITIES Board-Level Oversight Board of Directors • ESG matters arising within the Strategic Plan, capital planning process, and annual budget • Execution of
Slide 67: Environmental, Social, and Governance: Strategic Business Objectives
67 Building our best team: an informed, engaged workforce that is diverse like the communities where we live and work Overseeing and managing ESG-related risks and opportunities in line with our broader business strategy Environmental, Social, and Governance Delivering shared value through strategic
Slide 68: Appendix
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Slide 69: Selected Items Impact Second Quarter 2024 Highlights
69 Selected Items Impact Second Quarter 2024 Highlights (1) Non-GAAP, see appendix for reconciliation. (2) Based on income taxes at an approximate 25% incremental rate. The 2Q24 adjustment to other miscellaneous expense for a contingent reserve release related to a prior acquisition included a non-t
Slide 70: Non-GAAP Measures Definitions
70 Management uses computations of earnings and certain other financial measures, which exclude certain adjustments that are included in the financial results presented in accordance with GAAP, to monitor performance and believes these measures provide meaningful information to investors. Non-intere
Slide 71: Adjusted Net Charge-Offs and Ratio
71 Non-GAAP Reconciliation Adjusted Net Charge-Offs and Ratio For the Quarter Ended ($ amounts in millions) 6/30/2024 3/31/2024 12/31/2023 9/30/2023 6/30/2023 Net loan charge-offs (GAAP) $ 101 $ 121 $ 132 $ 101 $ 81 Less: charge-offs associated with the sale of loans — — 35 — — Adjusted net loan cha
Slide 72: Non-Interest Expense
72 Non-GAAP Reconciliation Non-Interest Expense Twelve Months Ended December 31 ($ amounts in millions) 2023 2022 2021 2020 2019 2018 2017 2016 Non-interest expense (GAAP) $ 4,416 $ 4,068 $ 3,747 $ 3,643 $ 3,489 $ 3,570 $ 3,491 $ 3,483 Adjustments: FDIC special assessment (119) — — — — — — — Contrib
Slide 73: Pre-tax Pre-Provision Income (PPI)
73 Non-GAAP Reconciliation Pre-tax Pre-Provision Income (PPI) Quarter Ended ($ amounts in millions) 6/30/2024 3/31/2024 12/31/2023 9/30/2023 6/30/2023 2Q24 vs. 1Q24 2Q24 vs. 2Q23 Net income available to common shareholders (GAAP) $ 477 $ 343 $ 367 $ 465 $ 556 $ 134 39.1 % $ (79) (14.2) % Preferred d
Slide 74: Pre-tax Pre-Provision Income (PPI) Annual
74 Quarter Ended Year Ended ($ amounts in millions) 6/30/2024 3/31/2024 2023 2022 2021 2020 2019 Net income available to common shareholders (GAAP) $ 477 $ 343 $ 1,976 $ 2,146 $ 2,400 $ 991 $ 1,503 Preferred dividends (GAAP) 24 25 98 99 121 103 79 Income tax expense (GAAP) 124 96 533 631 694 220 403
Slide 75: NII, non-interest income/expense, and efficiency ratio
75 Non-GAAP Reconciliation NII, non-interest income/expense, and efficiency ratio NM - Not Meaningful Quarter Ended ($ amounts in millions) 6/30/2024 3/31/2024 12/31/2023 9/30/2023 6/30/2023 2Q24 vs. 1Q24 2Q24 vs. 2Q23 Non-interest expense (GAAP) A $ 1,004 $ 1,131 $ 1,185 $ 1,093 $ 1,111 $ (127) (11
Slide 76: Return on Average Tangible Common Shareholders' Equity
76 Quarter Ended Year Ended ($ amounts in millions) 2Q24 1Q24 2023 2022 2021 RETURN ON AVERAGE TANGIBLE COMMON SHAREHOLDERS' EQUITY Net income available to common shareholders (GAAP) A $ 477 $ 343 $ 1,976 $ 2,146 $ 2,400 Average shareholders' equity (GAAP) $ 16,713 $ 17,121 $ 16,522 $ 16,503 $ 18,20
Slide 77: Return on average tangible common shareholders' equity
77 Non-GAAP reconciliation Return on average tangible common shareholders' equity Quarter Ended Year Ended ($ amounts in millions) 2Q24 1Q24 2023 2022 2021 2020 2019 RETURN ON AVERAGE TANGIBLE COMMON SHAREHOLDERS' EQUITY Net income available to common shareholders A $ 477 $ 343 $ 1,976 $ 2,146 $ 2,4
Slide 78: Adjusted CET1 - inclusive of AOCI
78 Quarter Ended ($ amounts in millions) 6/30/2024 3/31/2024 12/31/2023 9/30/2023 ADJUSTED CET1 RATIO Common Equity Tier 1(1) A $ 13,093 $ 12,913 $ 12,976 $ 13,056 Adjustments: AOCI gain (loss) on securities(2) (2,298) (2,264) (2,064) (3,084) AOCI gain (loss) on defined benefit pension plans and oth
Slide 79: Non-Interest Income
79 Non-GAAP reconciliation Non-interest income Year Ended ($ amounts in millions) 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 Non-interest income (GAAP) $ 2,256 $ 2,429 $ 2,524 $ 2,393 $ 2,116 $ 2,019 $ 1,962 $ 2,011 $ 1,937 $ 1,785 $ 2,096 $ 2,201 $ 2,226 Security (gains) losse
Slide 80: Tangible Common Ratios
80 As of and for Quarter Ended ($ amounts in millions, except per share data) 6/30/2024 3/31/2024 12/31/2023 9/30/2023 6/30/2023 TANGIBLE COMMON RATIOS Shareholders’ equity (GAAP) A $ 17,169 $ 17,044 $ 17,429 $ 16,100 $ 16,639 Less: Preferred stock (GAAP) 1,659 1,659 1,659 1,659 1,659 Intangible ass
Slide 81: Tangible Common Ratios
81 Non-GAAP reconciliation Tangible Common Ratios As of and for Quarter Ended ($ amounts in millions, except per share data) 6/30/2024 3/31/2024 12/31/2023 9/30/2023 6/30/2023 TANGIBLE COMMON RATIOS Shareholders’ equity (GAAP) A $ 17,169 $ 17,044 $ 17,429 $ 16,100 $ 16,639 Less: Preferred stock (GAA
Slide 82: Forward-Looking Statements
82 Forward-Looking Statements This presentation may include forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. The words “future,” “anticipates,” “assumes,” “intends,” “plans,” “seeks,” “believes,” “predicts,” “potential,” “objectives,” “estimates,” “expec
Slide 83: Forward-Looking Statements (continued)
83 • Our inability to develop and gain acceptance from current and prospective customers for new products and services and the enhancement of existing products and services to meet customers’ needs and respond to emerging technological trends in a timely manner could have a negative impact on our re
Slide 84: Forward-Looking Statements (continued)
84 • Our ability to comply with stress testing and capital planning requirements (as part of the CCAR process or otherwise) may continue to require a significant investment of our managerial resources due to the importance of such tests and requirements. • Our ability to comply with applicable capit
Slide 85: Slide 85
Regions Financial — Investor Presentation (August 2024) on 6ix