Regions Financial Corporation · NYSE:RF
Regions Financial — Credit Suisse Financial Services Forum 2015
18 slides from Regions Financial's conference presentation, Feb 9, 2015
Slide 1: Credit Suisse Financial Services Forum
Credit Suisse Financial Services Forum February 10, 2015 David Turner Chief Financial Officer Exhibit 99.1
Slide 2: 2014 Overview: Financial Highlights
2014 Overview Continued risk discipline Emphasis on diversifying and growing revenue Focused on banking fundamentals • Loans increased $3 billion or 4% • Deposits increased $2 billion or 2%, while deposit costs reached historic lows • Increased number of quality households and grew number of checkin
Slide 3: Strategic Tactics for 2015
Diversify revenue Prudently manage expenses Effectively deploy capital • Leverage to grow customers and households • Grow checking, savings, credit card and wealth management accounts • Mortgage income expected to improve and will continue to look for opportunities to add to the servicing portfolio
Slide 4: Loans expected to grow 4-6% in 2015
Loans expected to grow 4-6% in 2015 $74.6 $75.7 $76.5 $76.6 $77.3 4Q13 1Q14 2Q14 3Q14 4Q14 ($ in billions) ($ in billions) Loan Balances(1) by portfolio Loan Balances(1) $46.0 $47.1 $47.7 $47.7 $48.2 $28.6 $28.6 $28.8 $28.9 $29.1 4Q13 1Q14 2Q14 3Q14 4Q14 Business Lending Consumer Lending (1) On an e
Slide 5: Well positioned deposit base adds value
Low-cost deposits Deposits Well positioned deposit base adds value 34% 27% 23% 7% 9% $94B Interest-free Money market Interest-bearing checking Savings Time Deposits – Composition(1) 44% 18% 38% Individual Small Business Business Deposit Composition(1) (1) As of December 31, 2014 (2) Source: SNL Fina
Slide 6: Net interest income and net interest margin
Net interest income and net interest margin • Base case: Net interest margin is expected to remain stable to trending higher in a moderately rising rate environment in 2015 • Alternatively, if short and long-term rates remain at current levels, we would expect 10 to 12 basis points of modest margin
Slide 7: Non-interest income
Non-interest income Non-interest income ($ in millions) 185 173 174 181 167 80 79 84 85 86 43 40 43 39 27 84 89 90 90 91 134 57 66 83 77 $526 $438 $457 $478 $448 4Q13 1Q14 2Q14 3Q14 4Q14 Service charges on deposit accounts Card and ATM fees Mortgage Income Wealth Management Income Other (1) Total We
Slide 8: Prudent expense management
Expenses Adjusted non-interest expenses (1) ($ in millions) $3,666 $3,532 $3,471 $3,432 $3,358 2010 2011 2012 2013 2014 • Proven track record of consistently lowering full year adjusted expenses(1) • Disciplined culture of overall expense management while prudently investing for the future • Continu
Slide 9: Solid asset quality
2014 2012 2013 2011 2014 2012 2013 2011 Solid asset quality Quarterly adjusted net charge-offs / Average Loans(1) 2.37% 0.42% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% NPLs / Ending Loans(2) 3.79% 1.07% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% • Direct and indirect energy exposure
Slide 10: Capital deployment
Capital • Excess capital position is sufficient to support both the return of capital and strong organic growth as well as other strategic opportunities • Returning capital to shareholders is a top priority • We believe that increasing our total payout ratio in 2015 is appropriate Rank 1 Peer #1 11.
Slide 11: Liquidity and funding mix
Liquidity and funding mix 11 Liquidity position vs. peers Rank 1 Peer #1 74% 2 Peer #2 80% 3 ® 82% 4 Peer #3 84% 5 Peer #4 85% 6 Peer #5 87% 7 Peer #6 88% 8 Peer #7 89% 9 Peer #8 90% 10 Peer #9 90% 11 Peer #10 92% 12 Peer #11 93% 13 Peer #12 95% (1) Based on ending balances as of 12/31/14 Peer banks
Slide 12: Strategic Tactics for 2015
Diversify revenue Prudently manage expenses Effectively deploy capital • Leverage to grow customers and households • Grow checking, savings, credit card and wealth management accounts • Mortgage income expected to improve and will continue to look for opportunities to add to the servicing portfolio
Slide 13: Appendix
Appendix 13M REGIONS
Slide 14: Non-GAAP reconciliation: Non-interest expense
Non-GAAP reconciliation: Non-interest expense The tables below presents non-interest expense (GAAP) excluding certain adjustments to arrive at adjusted non-interest expense (non-GAAP). Regions believes that the exclusion of these adjustments provides a meaningful base for period-to-period comparison
Slide 15: 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 (GAAP) are presented in the table below. During the fourth quarter of 2013, Regions made the strategic decision to transfer certain primarily accruing restructured reside
Slide 16: 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 17: Forward-looking statements
Forward-looking statements This presentation may include forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. The terms "Regions," "the Company," "we," "us" and "our" mean Regions Financial Corporation, a Delaware corporation and its subsidiaries, when or wh
Slide 18: Regions
A. REGIONS
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