Regions Financial Corporation · NYSE:RF
Regions Financial — Q4 2013 Earnings Presentation
18 slides from Regions Financial's earnings presentation, Jan 21, 2014
Slide 1: Regions Financial 4th Quarter 2013 Earnings Conference Call
Regions Financial 4th Quarter 2013 Earnings Conference Call January 21, 2014 1
Slide 2: 2013 – Focused on the fundamentals
2013 – Focused on the fundamentals Noteworthy Accomplishments in 2013 Successful Execution of • Net income available to common Business Priorities shareholders h h ld iincreased d 10% • Grow loans • Expanded net interest margin 16 bps • Grow relationships p • Lowered deposit costs 10 bps to historic
Slide 3: Notable items in the fourth quarter
Notable items in the fourth quarter Loans Transferred to HFS Notable Items Impact • Loans totaling approximately Pre-tax $ After-tax EPS ($ in millions, except per share data) $ $686 million transferred to I Impactt off Loans L Transferred T f d to t held-for-sale (75) (46) Held-For-Sale • Loans wer
Slide 4: Loan balances impacted by the transfer of loans to held-for-sale
Loan balances impacted by the transfer of loans to held-for-sale held for sale • Total average loan balances up 1% - however, ending loans down 2% due to loans transferred to held-for-sale Total Loan Balances (1) • Excluding the loans transferred, adjusted ending loans declined 1 percent (2) ( ) lin
Slide 5: Total funding costs continued to improve
Total funding g costs continued to improve p Deposit Balances (1) and Deposit Costs $94,805 $93,864 $92,613 $92,080 $92,051 14 220 14,220 12 904 12,904 11 423 11,423 10 417 10,417 9 888 9,888 • Average g low-cost deposits p increased $500 million linked quarter to 89% of 22 bps 18 bps 15 bps 13 bps
Slide 6: Net interest income increased and net interest margin expanded
Net interest income increased and net interest margin e expanded panded • Net interest income increased 1% Net Interest Income and Net Interest Margin from prior quarter and net interest $846 margin increased 2 bps $838 • Increases in long-term interest rates $831 further reduce prepayments on $821
Slide 7: Non-interest revenue impacted by company initiatives
Non-interest revenue impacted by company initiatives • Non-interest revenue increased 6% QoQ Non-Interest Revenue • Included $17 million net gain related to sale of certain low low-income income housing investments $536 $526 $501 $497 and $39 million gain related to leveraged $495 89 lease terminati
Slide 8: Prudent expense management
Prudent expense management • 4Q expenses included $58 million Non-Interest Expenses regulatory charge • Branch B h consolidation lid ti expense off $5 $946 million for 30 branches $902 63 • Deposit administrative fees lower by $15 $884 $884 p million - due to improvement in asset 883 $842 quality an
Slide 9: Broad-based improvement in asset quality
Broad-based improvement in asset quality Net Charge-Offs and Ratio NPLs and Coverage Ratio (2) 29% Decline (1) 36% Decline in Total NPLs (1) 170% $278 $1,681 $1,586 160% $1,506 $1 354 $1,354 150% $180 $180 151 $1,082 140% 130% $144 120% $114 124% 110% 127 114% 114% 110% 100% 109% 90% 0.96% 0.99% 0 7
Slide 10: Strong capital position
Strong capital position Tier 1 capital ratio (1) • Basel III Tier 1 Common ratio(1)(2) estimated to be approximately 10.5%, which is well above minimum threshold 12 4% 12.4% 12.0% • Liquidity at both the bank and holding 11.6% 11.5% 11.6% company remains solid with a loan to deposit ratio of 81% • R
Slide 11: Appendix
Appendix Ma REGIONS «
Slide 12: Non-GAAP reconciliation: Ending loans
Non-GAAP reconciliation: Ending loans Quarter Ended 12/31/2013 12/31/2013 ($ amounts in millions) 12/31/2013 9/30/2013 6/30/2013 3/31/2013 12/31/2012 vs. 9/30/2013 vs. 12/31/2012 Commercial and industrial $ 29,413 $ 29,863 $ 28,954 $ 27,602 $ 26,674 $ (450) (1.5 )% $ 2,739 10.3 % Commercial real est
Slide 13: Non-GAAP reconciliation: Non-interest expense and efficiency ratio
Non-GAAP reconciliation: Non-interest p expense and efficiency y 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. Management uses this ratio to monitor performanc
Slide 14: 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 15: 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 16: Non-GAAP reconciliation: Basel III
Non-GAAP reconciliation: Basel III The following table provides calculations of Tier 1 common, based on Regions’ current understanding of the Final Basel III requirements, released in July 2013. Regions currently calculates its risk-based capital ratios under guidelines adopted by the Federal Reserv
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 1995 (“the Act”) provides a “safe harbor” for forward-looking statements w
Slide 18: VN REGIONS
VN REGIONS