Regions Financial Corporation · NYSE:RF
Regions Financial — Q1 2011 Earnings Presentation
18 slides from Regions Financial's earnings presentation, Apr 19, 2011
Slide 1: Regions Financial 1st Quarter Earnings Conference Call
Regions Financial 1 st Quarter Earnings Conference Call April 19, 2011 › Exhibit 99.3
Slide 2: Continued Progress: Earnings Highlights
Continued Progress ($ in millions) 1Q10 4Q10 1Q11 Earnings Highlights consecutive quarter of profitability Credit related costs fell to lowest level in almost 2 years Credit costs* negatively impacted EPS ($0.26) per share Security gains positively impacted EPS $0.04 per share Continued solid core b
Slide 3: Solid Core Performance, Credit Quality Improves
Solid Core Performance Credit Quality Improves Balance Sheet Highlights Business Performance Improvement Net charge-offs declined $201MM or 29% Inflow of non-performing loans down 23% and delinquencies improved 2% Non-performing loans declined for the th consecutive quarter Criticized and classified
Slide 4: Ms REGIONS |
Ms REGIONS |
Slide 5: Improvement in Quality Loan Demand
Improvement in Quality Loan Demand 38% Portfolio Mix 62% Consumer Services Loan production of $2.2 billion Growing consumer loans to achieve a more balanced portfolio Indirect auto lending production increased from $143 million in 4Q10 to $255 million in 1Q11 Business Services Loan production of $11
Slide 6: 1Q11 Earnings Highlights
1Q11 Earnings Highlights Improvement in adjusted PPNR versus prior year driven by increased revenues Credit losses improved dramatically, thus loan loss provision declined 29% linked quarter, and essentially matched charge offs * See appendix for non-GAAP reconciliation ($ in millions, except EPS) 1
Slide 7: Non-Performing Loan Inflows Decline
Non-Performing Loan Inflows Decline
Slide 8: Non-performing Loans Decline
Non-performing Loans Decline Non-performing loans, excluding loans held for sale, declined $73 million Non-performing assets relatively flat, reflecting an increase in loans held for sale Delinquencies continue to improve Business Services criticized and classified problem loans declined approximate
Slide 9: Substantial Decline in Net Charge-offs; Coverage Ratio remains strong
Substantial Decline in Net Charge-offs; Coverage Ratio remains strong (1) Loan charge-offs related to Sales and Transfer to Held for Sale (2) Excludes loans held for sale
Slide 10: Loan Balances Reflect Commercial Growth offset by De-Risking in Investor Real Estate
Loan Balances Reflect Commercial Growth offset by Continued De-Risking Efforts in Investor Real Estate Average Commercial and Industrial loan balances increased $933MM reflecting strength in our middle market segment C&I commitments increased $700 million or 2.7% C&I line utilization increased 140 b
Slide 11: Decline in Deposit Costs Driven by Changing Deposit Mix
Decline in Deposit Costs Driven by Changing Deposit Mix Our improved deposit mix is resulting in lower deposit costs Low cost deposits as a % of total deposits increased to 76% in 1Q11 from 70% in 1Q10 Deposit costs declined 5 bps linked quarter; down 41 bps year-over-year * Average Balances
Slide 12: Net interest margin continued to improve
Net interest margin continued to improve Net interest margin climbed bps linked quarter; up 30 bps vs. 1Q10 Repricing opportunities remain with over $9.4 billion of CD’s maturing in the next 9 months at an average rate of 1.80% Slower pre-payments resulting in lower premium amortization in the inves
Slide 13: Non-Interest Revenues Remain Relatively Steady
Non-Interest Revenues Remain Relatively Steady Adjusted non-interest revenue* 4% higher versus prior year Service charges declined slightly due to pressure on NSF/OD income; offset by change in fee based account structure Morgan Keegan’s revenues down due to lower investment banking revenue in 1Q11
Slide 14: Focused Expense Management
Focused Expense Management Adjusted non-interest expenses* 4% lower versus prior quarter and flat versus prior year Credit-related expenses, declined $34 million, primarily driven by lower other real estate expense Professional and legal fees declined $11 million Headcount down over 3,000 positions
Slide 15: Capital Ratios Remain Strong; Liquidity Profile Solid
Capital Ratios Remain Strong; Liquidity Profile Solid Favorable Liquidity Position * Current Quarter ratios are estimated ** Subject to change as interpretation of Basel III rules is ongoing and dependent on guidance from Basel and regulators. Well-positioned with respect to the Liquidity Coverage R
Slide 16: A REGIONS
A REGIONS
Slide 17: Forward-Looking Statements
› Forward - Looking Statements › This presentation may include forward-looking statements which reflect Regions’ current views with respect to future events and financial performance. The Private Securities Litigation Reform Act of (“the Act”) provides a “safe harbor” for forward-looking statements
Slide 18: Non-GAAP Reconciliation
Non-GAAP Reconciliation 1Q10 4Q10 1Q11 ($ in millions) Net interest income (GAAP) $ $ $ Non-interest income (GAAP) 1,213 Adjustments: Securities (gains) losses, net (59) (333) (82) Leveraged lease termination gains (19) (59) - Loss (gain) on sale of mortgage loans - (26) Adjusted non-interest income