Regions Financial Corporation · NYSE:RF
Regions Financial — Q3 2014 Earnings Presentation
16 slides from Regions Financial's earnings presentation, Oct 21, 2014
Slide 1: 3rd Quarter 2014 Earnings Conference Call
3rd Quarter 2014 Earnings o Conference Call October 21, 2014 Exhibit 99.3
Slide 2: Remaining prudent and disciplined; 3Q14 Highlights
Remaining prudent and disciplined 2 • Growing customer base and deepening relationships • Meeting diverse range of customer needs while appropriately managing risks • Continuing to make investments in talent and technology • Increasing efficiency through continuous business process improvements • Re
Slide 3: Loans
Loans • Consumer lending portfolio increased $120 million from 2Q • Growth led by indirect auto lending • Credit card balances increased 2% from prior quarter as active accounts increased • Mortgage balances up modestly as production increased 1% • Business lending portfolio up 4% YTD • Commercial a
Slide 4: Deposits and funding costs
4 Deposits and funding costs Ending Deposit Balances ($ in millions) 35 bps 34 bps 33 bps 31 bps 30 bps 3Q13 4Q13 1Q14 2Q14 3Q14 Funding costs 81,663 82,163 83,506 83,922 85,115 10,417 9,888 9,419 9,067 8,856 $92,080 $92,051 $92,925 $92,989 $93,971 3Q13 4Q13 1Q14 2Q14 3Q14 Average Deposit Balances (
Slide 5: Net interest income and net interest margin
Net interest income and net interest margin • Net interest income (FTE) flat versus prior quarter, while net interest margin declined 6 basis points • Net interest income benefited from an additional day in quarter and modest increase in the securities portfolio • Net interest margin pressured from
Slide 6: Non-interest revenue
Non-interest revenue • Non-interest revenue up 5% from 2Q • Service charges increased 4% from 2Q • Capital markets income increased $8 million from 2Q, primarily related to increase in real estate capital markets activity • Card and ATM fees increased 1% from 2Q as credit card spending volume increa
Slide 7: Expenses reflect investments in talent and technology
Expenses reflect investments in talent and technology • Salaries and benefits increased $13 million – primarily driven by increase in headcount and related benefits and incentives • Furniture and equipment related expenses increased – primarily related to investments in technology, including system
Slide 8: Solid asset quality
1,159 463 457 452 452 1,653 1,321 1,301 992 866 397 391 386 383 376 579 $3,209 $2,754 $2,144 $1,827 $1,694 3Q13 4Q13 1Q14 2Q14 3Q14 Residential First Mortgage All Other Home Equity TDRs Held-For-Sale 2,477 2,088 1,914 1,724 1,688 1,035 927 1,067 1,327 1,297 $3,512 $3,015 $2,981 $3,051 $2,985 3Q13 4Q
Slide 9: Strong capital and solid liquidity
Strong capital and solid liquidity Tier 1 capital ratio(1) Loan to deposit ratio(3) Tier 1 common ratio(1)(2) (1) Current quarter ratios are estimated (2) Non-GAAP; see appendix for reconciliation (3) Based on ending balances 11.5% 11.7% 11.8% 12.5% 12.7% 3Q13 4Q13 1Q14 2Q14 3Q14 11.0% 11.2% 11.4% 1
Slide 10: Appendix
Appendix Ms REGIONS 10
Slide 11: Non-GAAP reconciliation: Non-interest expense and efficiency/fee income ratios
Non-GAAP reconciliation: Non-interest expense and efficiency/fee income ratios 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 rati
Slide 12: 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 13: 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 14: Non-GAAP reconciliation: Basel III common equity Tier 1
Non-GAAP reconciliation: Basel III common equity Tier 1 The following table provides calculations of “common equity Tier 1" (CET1) (non-GAAP), based on Regions’ current understanding of the Final Basel III requirements. In December 2010, the Basel Committee on Banking Supervision (the “Basel Committ
Slide 15: 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 16: Regions
A. REGIONS