Regions Financial Corporation · NYSE:RF
Regions Financial — Barclays Global Financial Services Conference 2014
19 slides from Regions Financial's conference presentation, Sep 9, 2014
Slide 1: Barclays Global Financial Services Conference
Barclays Global Financial Services Conference September 9, 2014 Grayson Hall Chief Executive Officer Exhibit 99.1
Slide 2: Company profile
Company profile *As of 2Q14, except Market Cap as of 9/4/2014 2 Company Snapshot* Associates 23,416 Assets $119B Loans $77B Deposits $94B Branches 1,673 ATMs 1,990 Market Cap $14.1B Top Ten MSAs ’14-’19 Population Growth Birmingham, AL Nashville, TN Tampa, FL Memphis, TN Miami, FL Atlanta, GA St. Lo
Slide 3: Balance sheet growth
Balance sheet growth 3 $92,454 $92,321 $92,453 $93,393 $93,822 88.4% 89.1% 89.5% 90.1% 90.5% 2Q13 3Q13 4Q13 1Q14 2Q14 Total Deposits Low Cost Deposits / Total Deposits ($ in millions) Deposits(1) ($ in millions) Loans(1) $74,990 $75,892 $74,609 $75,680 $76,513 2Q13 3Q13 4Q13 1Q14 2Q14 (1) Based on e
Slide 4: Key lending categories
$7,014 $6,930 $6,750 $6,992 $6,973 2Q13 3Q13 4Q13 1Q14 2Q14 $2,693 $2,889 $3,075 $3,253 $3,422 2Q13 3Q13 4Q13 1Q14 2Q14 $99 $112 $141 $161 $174 2Q13 3Q13 4Q13 1Q14 2Q14 Credit card sales ($ in millions) Key lending categories 4 Commercial and industrial loans(1) ($ in millions) Investor real estate
Slide 5: Steady progress
Steady progress 5 Declining deposit costs Note: Peer banks include BBT, CMA, FHN, FITB, HBAN, KEY, MTB, PNC, STI, USB, WFC, ZION Source: SNL Financial (1) Year-over-year change 0.15% 0.11% 0.23% 0.17% 2Q13 3Q13 4Q13 1Q14 2Q14 Regions Peer Median Lower total funding costs 9 Bp Decline(1) 4 Bp Decline
Slide 6: Emphasis on non-interest revenue diversification
Emphasis on non-interest revenue diversification • Achieved checking account growth and grew quality households in 2Q14, driven by philosophy • New home purchases driving mortgage production • Expanded small credit product offerings in order to meet customer needs • Total number of Financial Consult
Slide 7: Meeting customer needs through innovation
Meeting customer needs through 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 • Small Business Mobile Deposits • Small Business Onlin
Slide 8: Channel optimization and integration
Channel optimization and integration 8 Channel Integration Total branch outlets Product sales by channel (in thousands) 2% Decline since 4Q12 14% Increase since 2012 Branch interactions (in millions) 11% Decline since 2012 Mobile banking 92% Increase in interactions since 2012 133 123 119 2012 2013
Slide 9: Continued focus on expense management
Continued focus on expense management 9 Non-interest expense(1) 2Q14 vs. 1Q14 (1) Adjusted to exclude non-core items – See appendix for reconciliation (2) Non-GAAP – See appendix for reconciliation Peer banks include: BBT, CMA, FHN, FITB, HBAN, KEY, MTB, PNC, STI, USB, WFC, ZION Source: SNL Financia
Slide 10: Asset quality continues to improve
Asset quality continues to improve Net charge-off ratio(1) Allowance for loan losses / total loans Criticized and classified loans(3) ($ in millions) Troubled debt restructurings ($ in millions) 42 Bp Decline(2) 57 Bp Decline(2) 22% Decline(2) 45% Decline(2) 10 (1) All numbers are GAAP and 4Q13 rati
Slide 11: Well positioned for growth
$6.69 $8.12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 Well positioned for growth 11 (1) Non-GAAP – See appendix for reconciliation (2) Based on ending balances Note: Peer banks include BBT, CMA, FHN, FITB, HBAN, KEY, MTB, PNC, STI, USB, WFC, ZION Source: SNL Financial Liquidity Loan to deposit ra
Slide 12: Expectations for 2014
Expectations for 2014 › Prolonged low interest rate environment › Evolving regulatory environment › Leverage to grow customer relationships across business groups by 2% to 4% › Loan growth of 3% to 5% on a point-to-point basis › Deposit growth of 1% to 2% on a point-to-point basis › Moderate compres
Slide 13: Appendix
Appendix Ad REGIONS 13
Slide 14: Non-GAAP reconciliation: Non-interest expense and efficiency ratio
Non-GAAP reconciliation: Non-interest expense and efficiency ratio The table below presents computations of the efficiency ratio (non-GAAP), which is a measure of productivity, generally calculated as non-interest expense divided by total revenue. The table also shows the fee income ratio (non-GAAP)
Slide 15: Non-GAAP reconciliation: Net charge-off ratio
Non-GAAP reconciliation: Net charge-off ratio Select calculations for annualized net charge-offs as a percentage of average loans are presented in the table below. During the fourth quarter of 2013, Regions made the strategic decision to transfer certain primarily accruing restructured residential f
Slide 16: Non-GAAP reconciliation: Tier 1 common
Non-GAAP reconciliation: Tier 1 common The following table provides calculations of Tier 1 capital (regulatory) and "Tier 1 common equity" (non-GAAP). Traditionally, the Federal Reserve and other banking regulatory bodies have assessed a bank's capital adequacy based on Tier 1 capital, the calculati
Slide 17: Non-GAAP reconciliation: Tangible book value
Non-GAAP reconciliation: Tangible book value 17 ($ amounts in millions, except per share data) 6/30/2014 3/31/2014 12/31/2013 9/30/2013 6/30/2013 TANGIBLE COMMON RATIOS—CONSOLIDATED Stockholders’ equity (GAAP) $ 17,029 $ 16,132 $ 15,768 $ 15,489 $ 15,329 Less: Preferred stock (GAAP) 920 442 450 458
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
Regions Financial — Barclays Global Financial Services Conference 2014 on 6ix