Regions Financial Corporation · NYSE:RF

Regions Financial — Investor Presentation (February 2016)

21 slides from Regions Financial's investor presentation, Feb 23, 2016

  1. Slide 1: Investor Presentation 1Q2016

    ® ® Investor Presentation 1Q2016 Exhibit 99.1

  2. Slide 2: Our banking franchise

    ® Our banking franchise Regions aims to be the premier regional financial institution in America Corporate Banking Business Capital Capital Markets Dealer Finance Equipment Finance Government/Institutional Specialized Industry Institutional Services Insurance Private Wealth • • • • • • • • • (1) As

  3. Slide 3: Strength of markets – our 16 state footprint

    ® Strength of markets – our 16 state footprint Of all US auto manufacturing is within our footprint(2) 30% Of all US auto manufacturing employment is in our footprint(2) 46% All new jobs created in the US since 2009 were in our footprint(1) 41% Of the total US GDP is within our footprint(4) 39% Non-

  4. Slide 4: Strength of markets: core markets provide a sound deposit franchise

    ® Strength of markets Core markets provide a sound deposit franchise Regions Branches Regions Insurance Group 79% 79% of total deposits are in these six states AL –MS – FL LA – TN – AR Ranked 3rd or better in 14 of our Top 25 MSAs TOP 3 Source: SNL Financial as of 6/30/2015 FDIC summary 4

  5. Slide 5: Strategic initiatives

    ® Strategic initiatives Strengthen financial performance 5 Effectively Deploy Capital  Disciplined organic growth  Return appropriate capital to shareholders  Use strategic investments to leverage our infrastructure and enhance revenue diversification Disciplined Expense Management  Generate pos

  6. Slide 6: Financial Overview

    ® Financial Overview 6 Funding costs 1. Adjusted to include the impact of leases reclassified to other-earning assets. Non-GAAP; see appendix for reconciliation. 2. During the fourth quarter of 2015, Regions corrected the accounting for certain leases which had previously been included in loans. The

  7. Slide 7: Favorable asset sensitivity position

    ® Favorable asset sensitivity position Positioned to win in any rate environment 7 Loan Mix(1) (1) As of 12/31/2015  Naturally asset-sensitive balance sheet  Primarily core deposit funded  59% of loans have variable rates  Asset sensitive under a range of deposit stress scenarios  Net interest

  8. Slide 8: Grow and diversify revenue

    ® Grow and diversify revenue 8 34% 20% 19% 8% 5% 14% Service charges Wealth Management Income Card and ATM fees Mortgage Income Capital Markets Other $1.9B Non-Interest Income(1) Mix – 2015 (1) Adjusted non-GAAP; see appendix for reconciliation Summary of 2015 Non-Interest Income Initiatives  Achie

  9. Slide 9: Source of sustainable franchise value

    ® Source of sustainable franchise value Evidence that our investments are paying off 9 Non-Interest Income(1) Mix – 2015 2015  GreenSky®  Fundation™  Streamline of CreditSM  Financial Consultants  Insurance lift-outs and acquisitions  M&A Advisory  Multifamily Debt Placements  Affordable Hou

  10. Slide 10: Disciplined Expense Management

    ® Disciplined Expense Management 10 (1) Adjusted non-GAAP; see appendix for reconciliation 54% 10% 9% 4% 3% 3% 3% 14% Salaries and Benefits Occupancy FF&E Outside Services Professional & Legal FDIC Marketing Other Total Expense(1) Mix - 2015 ($ in millions) $3,532 $3,471 $3,432 $3,358 $3,454 2011 20

  11. Slide 11: Committed to improve efficiencies

    ® 11 Committed to improve efficiencies  Hiring restrictions for non-customer facing positions started Oct 2015  Streamlining and automating processes to reduce personnel needs  Partially through staffing reductions and through attrition  Evaluate staffing models, spans and layers throughout the

  12. Slide 12: Effectively deploy capital

    ® Effectively deploy capital Strength of our capital position 12 9.6% 9.8% 9.8% 10.0% 10.2% 10.4% 10.5% 10.5% 10.7% 10.9% 11.0% 11.1% 12.2% Peer #12 Peer #11 Peer #10 Peer #9 Peer #8 Peer #7 Peer #6 Peer #5 Peer #4 Regions Peer #3 Peer #2 Peer #1 Source: SNL Financial Peers include: BBT, CMA, FHN, F

  13. Slide 13: Asset quality

    ® (1) Excludes loans held for sale (2) Includes commercial and investor real estate loans only (3) The All Other category includes TDRs classified as held for sale for the following periods : $29MM in 4Q14, $19MM in 1Q15, $18MM in 2Q15, $14MM in 3Q15 and $8MM in 4Q15. $83 $54 $46 $60 $78 0.42% 0.28%

  14. Slide 14: Energy lending

    ® Energy lending ⦁ Reserves at 6% of direct energy exposure. ⦁ Negligible amount of second lien loans within the energy portfolio ⦁ Leveraged loans account for approximately 10% of energy related balances; the majority are Midstream. ⦁ Expectations for energy related charge-offs for the remainder of

  15. Slide 15: Loan balances by select states

    ® Commercial - Energy (Direct), $534 Commercial - Non-Energy, $2,369 Investor Real Estate, $254 Consumer Real Estate Secured, $1,092 Consumer Non- Real Estate Secured, $281 $4.5 B 15 Loan Balances by Select States Louisiana Commercial - Energy (Direct), $1,273 Commercial - Non-Energy, $4,499 Investo

  16. Slide 16: 2016 Expectations

    ® 2016 Expectations  Average Loan growth 3 – 5%  Average Deposit growth 2 – 4% Net interest income and other financing income up 2 – 4%(1)  Adjusted non-interest income up 4 – 6%  Adjusted expenses flat to up modestly: efficiency ratio <63%  Operating leverage of 2 – 4%(1) Net charge-offs 25

  17. Slide 17: Why Regions? – Building sustainable franchise value

    ® Why Regions? – Building sustainable franchise value 17 Effectively Deploy Capital Grow and Diversify Revenue Disciplined Expense Management Adjusted EPS growth of 12-15% (CAGR) Adjusted efficiency ratio of <60% Adjusted ROATCE 12-14% Three pillars of execution Long-term expected results How we int

  18. Slide 18: Appendix

    ® Appendix 18

  19. Slide 19: ® During the fourth quarter 2015, Regions corrected the accounting for certain leases which

    ® During the fourth quarter 2015, Regions corrected the accounting for certain leases which had previously been included in loans. These leases had been classified as capital leases but were subsequently determined to be operating leases. The adjustment resulted in a reclassification of these leases

  20. Slide 20: ® NM - Not Meaningful (1) Regions recorded $50 million and $100 million of

    ® NM - Not Meaningful (1) Regions recorded $50 million and $100 million of contingent legal and regulatory accruals during the second quarter of 2015 and the fourth quarter of 2014, respectively, related to previously disclosed matters. The fourth quarter of 2014 accruals were settled in the second

  21. Slide 21: ® • Current and future economic and market conditions in the United States generally

    ® • Current and future economic and market conditions in the United States generally or in the communities we serve, including the effects of declines in property values, unemployment rates and potential reductions of economic growth, which may adversely affect our lending and other businesses and o

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