Regions Financial Corporation · NYSE:RF
Regions Financial — Evercore Financials Forum 2013
12 slides from Regions Financial's conference presentation, Aug 6, 2013
Slide 1: Growth in Consumer Lending
Growth in Consumer Lending Evercore Financials Forum August 6, 2013 Logan Pichel Head of Consumer Lending Exhibit 99.1
Slide 2: Overview
Total loan portfolio* Consumer portfolio* 39% 61% 39% 44% Consumer Services Business Services Wealth Management Overview *Ending balances as of June 30, 2013 Industrial management 9% 3% 5% Business Services Consumer Services Residential 1st Mortgage Home equity Indirect Credit card Other Consumer Le
Slide 3: Consumer lending – loan production
Consumer lending – loan production 2013 production has returned to pre-crisis levels and is becoming more balanced $11.3 $10.1 $9.2 $11.2 $5.7 June 2013 YTD Mortgage Home Equity Indirect Auto Credit Card Direct
Slide 4: Consumer lending – balance change
$(2.4) $(2.1) $(2.5) $(1.6) $(0.3) Consumer lending – balance change Increased production is resulting in balance sheet improvement June 2013 YTD
Slide 5: Indirect auto lending
Indirect auto lending Industry growth and growth in number of dealers OPPORTUNITIES • Industry growth • Expand dealer network • Increase loans per dealer • Automated approvals CHALLENGES • Compliance $0.2 $1.1 $0.2 $1.5 $0.5 $0.9 $0.3 $(0.9) June 2013 YTD Production Balance Change
Slide 6: Direct lending
Direct lending and expanded delivery channels will grow production OPPORTUNITIES • • 10% of Regions households have a direct loan • Point-of-sale pre- approvals • Direct to consumers sales initiatives CHALLENGES • Reductions in average loan size $0.5 $0.5 $0.5 $0.5 $0.2 $0.00 $0.05 $0.02 $(0.03) $(0
Slide 7: First year of Regions operating platform
First year of Regions operating platform OPPORTUNITIES • • Increased consumer household penetration • Expansion of account activation / utilization • Loyalty programs CHALLENGES • Elevated payment rates Credit Card $0.4 $0.4 $0.2 $0.02 $0.00 $(0.08) June 2013 YTD Production Balance Change
Slide 8: Home equity lending
Home equity lending Balanced production HELOANs (60%) and HELOCs (40%) OPPORTUNITIES • Improvements in the economy and real estate values • Slower run-off as mortgage refinances decline • Approved not booked CHALLENGES • Portfolio is still declining $1.2 $1.2 $0.9 $0.8 $0.6 $(0.7) $(1.1) $(1.2) $(1.
Slide 9: Mortgage lending
Retaining the 15 year fixed-rate product in the portfolio Mortgage lending OPPORTUNITIES • Purchase business • 53% in 2Q • Expand sales force • HARP refinance • • Mortgage Loan Originator branding • Branch referrals • Servicing rights acquisitions CHALLENGES • Reduced refinance volume • Margin press
Slide 10: Regions mortgage
• Strong Customer Satisfaction Scores – Originations & Servicing • Low Cost Originator and Servicer • Low risk model • Retail production in footprint • Servicing retained • Servicing rights acquisitions are in footprint agency loans • Fully integrated with the bank • 30% of Mortgage Production resul
Slide 11: Balanced production
Mortgage 85% Mortgage 66% 2009 2013 Home Equity 11% Direct 4% Home Equity 10% Indirect Auto 16% Direct 4% Credit Card 4% Balanced production means more balanced production. Understanding and meeting customer needs and in turn building long-lasting relationships is the way we bring to life.
Slide 12: Regions
Ma REGIONS