Regions Financial Corporation · NYSE:RF
Regions Financial — Investor Presentation (November 2024)
86 slides from Regions Financial's investor presentation, Nov 7, 2024
Slide 1: Investor Information November - December
Investor Information November - December Exhibit 99.1
Slide 2: Table of Contents
2 Table of Contents Topic Page # Profile and Strategy 3-13 Asset / Liability Management 14-25 Fees & Expenses 26-34 Business Segment Highlights 35-37 Loans & Deposits 38-45 Capital, Debt & Liquidity 46-50 Technology 51-53 Credit 54-65 Near-Term Expectations 66 Environmental, Social & Governance 67-6
Slide 3: Our Banking Franchise
3 Alabama – 185 Georgia – 117 Iowa – 5 Mississippi – 98 South Carolina – 18 Arkansas – 57 Illinois – 41 Kentucky – 9 Missouri – 49 Tennessee – 195 Florida – 272 Indiana – 40 Louisiana – 80 North Carolina – 6 Texas – 88 Ranked 18th in the U.S. in total deposits(1) Branch Locations by State(2) Our Ban
Slide 4: Diversified Lines of Businesses
4 Diversified Lines of Businesses Retail Branch network, ATMs, deposit accounts, credit cards, home equity loans, etc. Includes small businesses serviced through the branch Mortgage ~300 Mortgage Loan Officers providing home financing to Customers; ~$90B in UPB for mortgage servicing (includes owned
Slide 5: Improved Credit Risk Profile and Continuous Improvement
5 CCAR Loan Loss Rate Profile Evolution Improved Credit Risk Profile Continuous Improvement Proactive Interest Rate Hedging Exited Non-Core Businesses Strategic M&A Top Quartile Profitability $24 $9 2008 2023 Investor CRE ($ in billions) 8.1% 7.8% 2012 2024 Customer Journeys Organization Simplificat
Slide 6: Top Market Share
6 Top Market Share Plays valuable role in the competitive landscape (1) Based on MSA and non-MSA counties using FDIC deposit data as of 6/30/2024; pro-forma for announced M&A transactions as of 11/1/2024. (2) Significant money center bank presence (JPM, BAC, C, WFC) defined as combined market share
Slide 7: Strong In-Market Migration
7 Strong In-Market Migration Converted legacy core markets into growth markets Serving Fast-Growing MSAs Deposits Market Rank(1) Nashville, Tennessee $10.2 3 Tampa, Florida $6.5 5 Atlanta, Georgia $5.7 7 Orlando, Florida $2.8 6 Knoxville, Tennessee $3.0 3 Huntsville, Alabama $2.6 1 Dallas/Ft Worth,
Slide 8: Regions Receives Top Honors
8 Regions Receives Top Honors Regions Bank was recognized as a 2024 Silver Status Military Friendly and Military Spouse Friendly Employer Regions Bank was named a Gallup Exceptional Workplace Award Winner for the 10th consecutive year. For the fourth consecutive year, Regions Bank was named a Best P
Slide 9: Third Quarter Overview
9 Third Quarter Overview Continue to deliver consistent, sustainable long-term performance (1) Non-GAAP, see appendix for reconciliation. Key Performance Metrics 3Q24 Reported Adjusted(1) Net Income Available to Common Shareholders $446M Diluted Earnings Per Share $0.49 Total Revenue $1.8B $1.9B Non
Slide 10: Regions' Consistent Outperformance
10 Regions' Consistent Outperformance Adjusted PPI(1) Less Net Charge-offs to RWA(2) Regions' earnings, including credit costs, have been top quartile vs peers since 2019 1.96% 1.99% 2.30% 2.47% 2.31% 1.86% 2.07% 2.16% 1.95% 1.78% 1.88% 1.96% 1.73% 1.58% 1.61% 1.71% RF Peer Median 2019 2020 2021 202
Slide 11: ROATCE: Industry Leading Performance
11 ROATCE: Industry Leading Performance 14.9% 9.2% 21.4% 24.1% 21.9% 14.3% 20.8% 16.9% 14.7% 8.5% 16.5% 19.3% 16.4% 12.9% 15.5% 14.5% RF Peer Median 2019 2020 2021 2022 2023 1Q24 2Q24 3Q24 ROATCE Performance Trend vs. Peers(1) (1) Non-GAAP; see Appendix for reconciliation. Peers include CFG, CMA, FH
Slide 12: Consistent Top Quartile EPS Growth
12 Consistent Top Quartile EPS Growth 3 Year EPS CAGR 27% 26% 25% 22% 21% 17% 15% 13% 12% 4% 2% (7)% (11)% RF Pe er 1 Pe er 2 Pe er 3 Pe er 4 Pe er 5 Pe er 6 Pe er 7 Pe er 8 Pe er 9 Pe er 1 0 Pe er 1 1 Pe er 1 2 Pe er 1 3 5 Year EPS CAGR 9% 7% 4% 4% 1% 1% 1% —% (1)% (2)% (2)% (3)% (5)% (12)% RF Pe e
Slide 13: Total Shareholder Return
13 Total Shareholder Return 3 Year Total Shareholder Return 37% 13% 11% 11% 10% 9% 8% 1% —% (10)%(11)%(15)%(18)%(23)% Pe er 1 Pe er 2 Pe er 3 Pe er 4 Pe er 5 RF Pe er 6 Pe er 7 Pe er 8 Pe er 9 Pe er 1 0 Pe er 1 1 Pe er 1 2 Pe er 1 3 5 Year Total Shareholder Return 74% 69% 69% 49% 45% 41% 37% 34% 24%
Slide 14: Consistent NIM Outperformance
14 • Regions' naturally asset sensitive balance sheet mix and funding advantage consistently produces above peer median net interest margin • Under elevated rate environment, deposit cost stability leads to margin outperformance • Under lower rates, the hedging strategy protects the funding advantag
Slide 15: Net Interest Income and Margin
15 Less Hedge Notional (1) Market rate impacts include contractual loan, cash and borrowings repricing; fixed asset turnover at higher market rates; securities premium amortization net discount accretion $6M better vs 2Q at $5M. (2) Other mostly from one additional day in quarter, debt/securities ad
Slide 16: Balance Sheet Profile
16 • Balance sheet position naturally benefits from higher interest rates (i.e. asset sensitive), supported by ◦ Large floating rate loan mix ◦ Large, stable deposit base as evidenced over multiple rate cycles • Fixed-rate securities and receive-fixed hedges insulate the natural interest rate sensit
Slide 17: Balance Sheet Positioning Advantage
17 Balance Sheet Positioning Advantage Strong deposit franchise and funding position provide an opportunity for flexibility and margin outperformance in an evolving rate environment **All balances are ending as of 9/30/24; Source: SEC reporting. Loan-to-Deposit Ratio 94% 86% 83% 81% 81% 80% 80% 78%
Slide 18: Positioning for Changing Rate Environment
18 • Front-book/back-book tailwind - $12B to $14B of annual fixed-rate loan production and securities reinvestment at higher yields than those maturing is a primary driver of NII growth • Benefit from higher rates/steepening curve - remain modestly asset sensitive to middle/ long-term rate changes g
Slide 19: Long-term Deposit Growth and Current Deposit Costs
19 Total Deposit Cost (%) EO P To ta l D ep os it G ro w th 1.00 1.50 2.00 2.50 3.00 —% 10% 20% 30% 40% (1) Balance changes cover 4Q19 to 3Q24. Balances have been adjusted for merger & acquisition activity: CFG, FHN, HBAN, MTB, PNC, USB. Other peers include CMA, FITB, HWC, KEY, SNV, TFC, ZION. Total
Slide 20: Regions' Interest-bearing Deposit Cost Trend
20 Regions' Interest-bearing Deposit Cost Trend 2.50% 5.50% 0.82% 2.34%1.03% 2.96% Fed Funds RF IB Deposit Cost Peer Median 3Q16 1Q17 3Q17 1Q18 3Q18 1Q19 3Q19 1Q20 3Q20 1Q21 3Q21 1Q22 3Q22 1Q23 3Q23 1Q24 3Q24 —% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 59% 35% 55% 55% 29% 43% Peer Median RF '04-'07 Cycle
Slide 21: Interest-Bearing Deposit Mix
21 % of 3 Q 24 E nd in g In te re st -B ea ri ng D ep os it s Interest-bearing Deposits: $87B (labels represent % of IB Deposits) Interest-Bearing Deposit Mix Composition of deposit book affords ability to maintain cost advantage if rates continue to decline; When combined with hedges, creates a wel
Slide 22: Cash Flow Hedge Notional
22 Notional Fixed Rate Maturity AFS Securities(3) $0.3B 4.5% 2.4 years Debt(3) (4) $1.4B 0.6% 1.9 years Cash Flow Hedge Notional(1) (1) Floating rate leg of swaps vs overnight SOFR. (2) Collars use short interest rate caps to pay for long interest rate floors; weighted avg. floor of 1.86%, weighted
Slide 23: Securities Portfolio
23 Agency/UST 8% Agency MBS 73% Agency CMBS 17% Corporate Bonds 2% • Portfolio constructed to protect against changes in market rates ◦ AFS+HTM duration of ~4.7 years as of 9/30/2024; provides offset to long-duration deposit book ◦ ~27% of securities in the portfolio are bullet-like (CMBS, corporate
Slide 24: Securities Portfolio - Repositioning
24(1) NII estimate and payback assumptions use Market Forwards as of trade completion dates. (2) Point in time impact; portfolio duration is naturally shortening and repositioning provides offset. Securities Portfolio - Repositioning Provides efficient use of capital/downside rate protection Rationa
Slide 25: Securities Portfolio - AOCI Management
25 2) Held to Maturity (HTM) Accounting Designation (1) Fair value hedging includes pay fixed swaps and other strategies currently in development, with the balance sheet duration likely offset through the addition of offsetting cash flow hedges against floating rate loans.(2) Estimated, current port
Slide 26: Non-Interest Income
26 $567 $595 $650 3Q23 2Q24 3Q24 ($ in millions) Change vs 3Q24 2Q24 3Q23 Service charges $158 4.6% 11.3% Card and ATM fees 118 (1.7)% (6.3)% Wealth management income 128 4.9% 14.3% Capital markets (Ex CVA/DVA) 93 32.9% 38.8% Mortgage income 36 5.9% 28.6% Non-Interest Income (1) Non-GAAP; see append
Slide 27: Diversified Non-Interest Income
27 Consumer 42% Wealth Management 20% Corporate 38% 3Q24 Fee Revenue by Segment(1) Diversified Non-Interest Income • Consumer fee income categories include service charges on deposit accounts, card and ATM fees, and mortgage income generated through origination and servicing of residential mortgages
Slide 28: Track Record of Expanding Fee Based Services
28 Track Record of Expanding Fee Based Services Proven Non-Interest Income ResiliencyAdjusted Non-Interest Income(1) Diversified revenue growth through expanded fee-based services (1) Non-GAAP; see appendix for reconciliation. Amounts disclosed in years 2023-2016 represent the initial amounts report
Slide 29: Capital Markets
29 Capital Markets Growing products & services that our clients value Our associates delivered results • 2024 Sep YTD Capital Markets revenue ex. CVA/DVA of $256M up 17% vs 2023 Sep YTD, driven by increased Investment Grade bond activity and strong Real Estate multifamily originations • CVA/DVA impa
Slide 30: Treasury Management
30 +11% Treasury Management Revenue(1) +4% Portfolio of Treasury Management Clients(2) +7% Digital, Payment & Integrated Services Revenue(3) +31% Global Trade Services Dollar Volume(4) Continually Investing in Technology First in the marketplace to launch Visa Commercial Pay- Mobile to provide impro
Slide 31: Wealth Management
31 Wealth Management NIR(1) ($ in millions) The Value We Bring To Our Clients The Client Experience Every client is unique and deserves a tailor-made path to confidently reach their evolving financial goals. Wherever you are, and wherever you are going, we offer a dedicated team, specialized experti
Slide 32: Mortgage
32 Mortgage Remains a key component of fee revenue (1) Mortgage Bankers Association – Oct 2024 Forecast. (2) Includes residential owned portfolio and serviced for others. (3) MBA/Stratmor PGR 1H24. Mortgage Income ($ in millions) Strong Performance Industry-Leading Low-Cost Servicer Delivery Efficie
Slide 33: Non-Interest Expense and Efficiency Ratio
33 $1,093 $1,004 $1,069 58.5% 57.6% 59.3% Non-interest expense Efficiency ratio 3Q23 2Q24 3Q24 $1,089 $1,032 $1,069 $53 $— 58.2% 57.6% 56.9% Adjusted non-interest expense Incremental operational losses Adjusted efficiency ratio 3Q23 2Q24 3Q24 • NIE increased ~6% on a reported basis as 3Q adjusted it
Slide 34: Efficiency Ratio vs. Peers
34 Efficiency Ratio vs. Peers 3Q24 Efficiency Ratio vs. Peers FY23 Efficiency Ratio vs. Peers 53.4% 54.5% 54.5% 54.6% 56.6% 57.1% 58.2% 59.0% 60.2% 60.6% 62.9% 65.8% 67.1% 69.4% Peer 1 Peer 2 Peer 3 RF Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 Peer 10 Peer 11 Peer 12 Peer 13 Peer 14 52.6% 54.2% 55.3% 55.6%
Slide 35: Consumer Banking Group
35 Consumer Banking Group Driving growth and customer engagement through strategic investments (1) J.D. Power 2024 U.S. Banking Online Satisfaction Study; among banks with $70B to $200B in deposits, which measures customer satisfaction with financial institutions’ website experience for banking acco
Slide 36: Corporate Banking Group
36 Corporate Banking Group Driving continued long-term performance for our clients & our shareholders (1) Reflects Corporate Banking Group Segment results only; excludes Branch Small Business losses. (2) Total loans is representative of total bank. (3) YoY Client Growth, September ‘24 to December ‘2
Slide 37: Wealth Management Group
37 Record quarterly NIR in 3Q24 with growth of $16.7M, or 15%, YoY driven by strong production and improved market conditions Assets Under Administration increased 9% YoY driven by IM&T Sales and improved equity market conditions Grew Total Investment Services Assets +$2.6B or 14%, YoY 3Q24 Average
Slide 38: Loans
38 $98.9 $97.5 $96.8 65.4 64.2 63.6 33.5 33.3 33.2 3Q23 2Q24 3Q24 $98.8 $97.3 $97.0 65.4 64.0 63.8 33.4 33.3 33.2 3Q23 2Q24 3Q24 Average Loans & Leases ($ in billions) Business LoansConsumer Loans Ending Loans & Leases ($ in billions) Loans • Avg loans remained stable while ending loans declined sli
Slide 39: Average Loan Composition
39 $49.8 $4.9 $0.3 $6.5 $2.3 Commercial and Industrial CRE Mortgage - OO CRE Construction - OO IRE - Mortgage IRE - Construction 3Q24 Average Loan Composition $20.1$5.5 $6.2 $1.4 Mortgage Home Equity Other Consumer Consumer Credit Card Average Consumer Loans $33.2B Average Business Loans $63.8B ($ i
Slide 40: Commercial & IRE Loans
40 Commercial & IRE Loans As of 9/30/24 ($ in millions) Total Commitments Outstanding Balances % Utilization(2) Administrative, Support, Waste & Repair $2,190 $1,442 57% Agriculture 367 244 50% Educational Services 3,975 3,183 39% Energy 4,989 1,488 30% Financial Services - Banking & Trust 11,362 4,
Slide 41: Ascentium & Home Improvement Financing
41 Ascentium & Home Improvement Financing (1) Key portfolio metrics were provided with the company's original acquisition announcement on Form 8-K dated February 27, 2020. (2) Regions' Home Improvement Financing previously known as EnerBank. Key portfolio metrics were provided with the company's ori
Slide 42: Deposits
42 $126.2 $126.6 $126.4 81.0 80.1 78.9 34.6 36.5 37.0 7.8 7.4 7.5 2.8 2.6 3.0 3Q23 2Q24 3Q24 $125.2 $126.9 $126.0 80.0 79.8 78.9 34.9 36.7 36.9 7.5 7.5 7.4 2.8 2.9 2.8 1.16% 1.59% 1.60% 3Q23 2Q24 3Q24 (1) Other deposits represent non-customer balances primarily consisting of wholesale funding (for e
Slide 43: Checking Balances & Spending Levels
43 • Pre-pandemic, customers maintained a relatively steady ratio of checking balances to spending activity. • After a period of elevated balances during 2020-2023, customers in aggregate hold 1.6x monthly spend versus a pre- pandemic average level of ~1.7x. • The moderately lower ratio is largely d
Slide 44: Diversified Deposit Base
44 Diversified Deposit Base Insured/Uninsured Deposit Mix(1)(2) • ~73% of Total Deposits are covered by FDIC insurance or are collateralized (Public Funds or Trust); >95% of Total Deposits are associated with customers who reside within our 15-state branch footprint • Wholesale deposits are well-div
Slide 45: Deposit Advantage
45 Deposit Advantage Well diversified deposit base vs. peers (1) As of 9/30/2024. Source: Bank Call Reports / SEC filings. Peers include CFG, CMA, FHN, FITB, HBAN, HWC, KEY, MTB, PNC, SNV, TFC, USB, ZION. ...Resulting in one of the highest mix of FDIC insured deposits amongst peers % of Total Deposi
Slide 46: Capital and Liquidity
46 • Declared 3Q common dividends of $229M and executed $101M in share repurchases; RF increased dividend payout target to 40-50% of earnings • Anticipate continuing to manage CET1 consistent with current levels over the near term • Tangible common book value per share(4) of $12.26, a 15.6% increase
Slide 47: 4Q24 Projected Preferred Stock Expense
47 4Q24 Projected Preferred Stock Expense Regions Preferred Par Value 3Q24A 4Q24E Series B $500.0 $23.0 $— Series C $500.0 $7.1 $7.1 Series D $350.0 $5.0 $5.0 Series E $400.0 $4.5 $4.5 Series F $500.0 $4.4 $8.7 Total $44.0 $25.3 • Series B shares were redeemed on 9/16/24 at Par; Upon redemption, $15
Slide 48: Common Equity Tier 1
48 Common Equity Tier 1 10.3% 10.3% 10.4% 10.6% 8.3% 8.2% 8.2% 9.1% Reported CET1 Ratio Adjusted CET1 Inclusive of AOCI Operating Range 4Q23 1Q24 2Q24 3Q24 CET1 Under Basel III Endgame Basel III Endgame Update • Basel III Endgame has yet to be finalized but expect AOCI to be included in Regulatory C
Slide 49: Tangible Common Equity
49 5.82% 6.79% 6.42% 6.55% 7.37% 8.36% 8.50% 8.34% 8.50% 8.47% TCE Ratio Adjusted TCE Ratio, ex-AOCI 3Q23 4Q23 1Q24 2Q24 3Q24 5% 6% 7% 8% 9% 10% Tangible Common Equity (1) Non-GAAP, see Appendix for reconciliation. • Higher levels of interest rates are generally beneficial to Regions through expansi
Slide 50: Investing for Growth: Capital Optimization
50 Return optimization of commercial, OORE and IRE loans began through Capital Commitments Working Group Investing for Growth Maintaining Focus on Capital Optimization and Expanded Client Capabilities 2014 - 2015 2018 2019 20202016 Acquisition of HUD (MAP) License Acquisition of Fannie Mae DUS Licen
Slide 51: Empowered by Data & Innovation
51 Empowered by Data & Innovation Regions remains competitive by reserving ~9–11% of revenue for technology spend Next Gen Platforms Next Generation of Customer Experience and Core Banking and Data Platforms Modernization efforts began in 2021 with runway through 2027 to complete the overall program
Slide 52: Expanded Regions Reggie Messaging
52 Expanded Regions Reggie® Messaging External- and internal-facing messaging volume and usage has grown by 4% in 3Q24 vs 3Q23 Automated Non-Agent Interactions 86.7% average interaction resolution rate2 in 3Q24 Authentication Improvements Introduced a new modern identity platform for 4M Online Banki
Slide 53: Growth in Digital
53 2.39 2.55 2.61 3Q22 3Q23 3Q24 3.20 4.14 4.78 3Q22 3Q23 3Q24 156 180 190 3Q22 3Q23 3Q24 21.7% 22.9% 23.9% 32.5% 32.3% 31.6% 45.8% 44.8% 44.5% 3Q22 3Q23 3Q24 2.4 5.1 4.8 3Q22 3Q23 3Q24 71% 74% 75% 29% 26% 25% 3Q22 3Q23 3Q24 Growth in Digital Mobile Banking Log-Ins (Millions) Customer Transactions(2
Slide 54: Historical Credit Profile
54 0.85% —% 0.50% 1.00% 1.50% 2.00% 2.50% 0.48% —% 0.50% 1.00% 1.50% 2.00% Historical Credit Profile Non-Performing Loans Total Net Charge-Offs 1Q20 3Q24 4Q221Q20 4Q22 3Q24 • Non-Accrual and loss rate levels are reverting to historical pre-pandemic ranges as expected Average Pre-Pandemic 0.46% Avera
Slide 55: Historical Credit Profile: Net Charge-Offs
55 0.58% —% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 0.42% —% 0.50% 1.00% Consumer Net Charge-Offs(2) Commercial Net Charge-Offs(1) 1Q20 3Q24 4Q22 1Q20 4Q22 3Q24 (1) Includes C&I, CRE - OO and IRE. (2) The spike in Consumer net charge-offs in late 2013 was associated with the move of ~$700M primari
Slide 56: Asset Quality
56 • 3Q annualized NCOs totaled 48 bps, increasing 6 bps on a reported basis driven by a large information credit and one office credit, which were fully reserved for • 3Q ACL increased 1 bp reflecting some deterioration in economic forecast and modest net risk rating downgrades, offset by reduction
Slide 57: Portfolios of Interest
57 Portfolios of Interest • Regions continues to closely monitor and manage the higher risk and most rate sensitive parts of the portfolio • Recent and potential future rate cuts should ease pressure on borrowers across the portfolio • Enhanced quarterly credit servicing of these portfolios continue
Slide 58: Commercial Real Estate
58 Commercial Real Estate (Outstanding balances as of September 30, 2024) Highly Diversified Portfolio (IRE including Unsecured CRE) (1) Excludes $5.2B of Owner-occupied CRE whose source of repayment are individual businesses, and whose credit performance resembles Commercial during periods of stres
Slide 59: CRE - Office Portfolio
59 CRE- Office Portfolio (Outstanding balances as of September 30, 2024) (1) $ in Millions. Amounts include IRE and CRE Unsecured loans but exclude Held For Sale loans. Metrics represent 09/30/2024 results except for charge-offs, which reflects results for the 9 months ended September 30, 2024, annu
Slide 60: Transportation - Trucking
60 Transportation - Trucking (Outstanding balances as of September 30, 2024) (1) $ in Millions. Metrics represent 09/30/2024 results except for charge-offs, which reflects results for the 9 months ended September 30, 2024, annualized, based on average balances. NPL & ACL percentages are based on Por
Slide 61: Consumer Lending Portfolio
61 Consumer Lending Portfolio • Avg. origination FICO 757 • Current LTV 52% • 98% owner occupied • 3Q24 QTD NCO (0.01%) • Avg. origination FICO 774 • Current LTV 35% • 61% of portfolio is 1st lien • Avg. loan size $34,600 • $60M to convert to amortizing or balloon during 2024 • 3Q24 QTD NCO (0.05%)
Slide 62: Allowance for Credit Losses
62 $1,732 $(26) $16 $6 $1,728 Allowance for Credit Losses 09/30/2024 • 3Q allowance essentially flat compared to the prior quarter, resulting in a $113M provision expense • A consistent ACL resulted from: ◦ Decreases in Specific Reserve borrowers due to charge-offs offset by increases due to risk ra
Slide 63: Base R&S Economic Outlook
63 Pre-R&S period 3Q2024 4Q2024 1Q2025 2Q2025 3Q2025 4Q2025 1Q2026 2Q2026 3Q2026 Real GDP, annualized % change 1.8 % 1.9 % 2.0 % 1.8 % 2.1 % 2.3 % 2.2 % 2.1 % 1.9 % Unemployment rate 4.2 % 4.2 % 4.3 % 4.3 % 4.4 % 4.4 % 4.3 % 4.3 % 4.2 % HPI, year-over-year % change 3.4 % 2.7 % 2.5 % 2.5 % 2.4 % 2.5
Slide 64: Allowance Allocation
64 As of 9/30/2024 Day 1 Ratios (in millions) Loan Balance ACL ACL/Loans Actual Proforma C&I $46,900 $567 1.21 % CRE-OO mortgage 4,873 109 2.24 % CRE-OO construction 341 10 2.93 % Total commercial $52,114 $686 1.32 % 1.33 % 1.32 % IRE mortgage 6,562 198 3.01 % IRE construction 2,250 43 1.90 % Total
Slide 65: Highly Diversified Business Portfolio
65 All Other Commercial 3.6% Investor Real Estate 13.9% Financial Services 13.3% CRE Unsecured, including REITs 10.4% Govt. Education 9.8% Consumer Services 8.6% Technology Services 6.9% Manufacturing 7.6% Energy 2.3% Agriculture .4% Utilities 3.8% Business Services 7.9% Distribution 6.5% Healthcare
Slide 66: 2024 Expectations
66 2024 Expectations (1) Non-GAAP, see appendix for reconciliation. (2) The reconciliation with respect to forward-looking non-GAAP measures is expected to be consistent with actual non-GAAP reconciliations included in the attached appendix or in previous filings with the SEC. (3) Expectations assum
Slide 67: Environmental, Social, and Governance
67 Environmental, Social, and Governance Delivering shared value through strong governance practices GOVERNANCE OF ESG-RELATED RISKS AND OPPORTUNITIES Board-Level Oversight Board of Directors • ESG matters arising within the Strategic Plan, capital planning process, and annual budget • Execution of
Slide 68: Environmental, Social, and Governance
68 Building our best team: an informed, engaged workforce that is diverse like the communities where we live and work Overseeing and managing ESG-related risks and opportunities in line with our broader business strategy Environmental, Social, and Governance Delivering shared value through strategic
Slide 69: Ras
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Slide 70: Third Quarter 2024 Highlights
70 Selected Items Impact Third Quarter 2024 Highlights (1) Non-GAAP, see appendix for reconciliation. (2) Based on income taxes at an approximate 25% incremental rate. (3) 3Q24 amount includes $15M of Series B preferred stock issuance costs, which reduced net income available to common shareholders
Slide 71: Non-GAAP Measures
71 Management uses computations of earnings and certain other financial measures, which exclude certain adjustments that are included in the financial results presented in accordance with GAAP, to monitor performance and believes these measures provide meaningful information to investors. Non-intere
Slide 72: Adjusted Net Charge-Offs and Ratio
72 Non-GAAP Reconciliation Adjusted Net Charge-Offs and Ratio For the Quarter Ended ($ amounts in millions) 9/30/2024 6/30/2024 3/31/2024 12/31/2023 9/30/2023 Net loan charge-offs (GAAP) $ 117 $ 101 $ 121 $ 132 $ 101 Less: charge-offs associated with the sale of loans — — — 35 — Adjusted net loan ch
Slide 73: Non-Interest Expense
73 Non-GAAP Reconciliation Non-Interest Expense Twelve Months Ended December 31 ($ amounts in millions) 2023 2022 2021 2020 2019 2018 2017 2016 Non-interest expense (GAAP) $ 4,416 $ 4,068 $ 3,747 $ 3,643 $ 3,489 $ 3,570 $ 3,491 $ 3,483 Adjustments: FDIC insurance special assessment (119) — — — — — —
Slide 74: Pre-Tax Pre-Provision Income (PPI)
74 Non-GAAP Reconciliation Pre-Tax Pre-Provision Income (PPI) Quarter Ended ($ amounts in millions) 9/30/2024 6/30/2024 3/31/2024 12/31/2023 9/30/2023 3Q24 vs. 2Q24 3Q24 vs. 3Q23 Net income available to common shareholders (GAAP) $ 446 $ 477 $ 343 $ 367 $ 465 $ (31) (6.5) % $ (19) (4.1) % Preferred
Slide 75: Pre-Tax Pre-Provision Income (PPI)
75 Quarter Ended Year Ended ($ amounts in millions) 9/30/2024 6/30/2024 3/31/2024 2023 2022 2021 2020 2019 Net income available to common shareholders (GAAP) $ 446 $ 477 $ 343 $ 1,976 $ 2,146 $ 2,400 $ 991 $ 1,503 Preferred dividends (GAAP) 44 24 25 98 99 121 103 79 Income tax expense (GAAP) 118 124
Slide 76: NII, Non-Interest Income/Expense, and Efficiency Ratio
76 Non-GAAP Reconciliation NII, Non-Interest Income/Expense, and Efficiency Ratio NM - Not Meaningful Quarter Ended ($ amounts in millions) 9/30/2024 6/30/2024 3/31/2024 12/31/2023 9/30/2023 3Q24 vs. 2Q24 3Q24 vs. 3Q23 Non-interest expense (GAAP) A $ 1,069 $ 1,004 $ 1,131 $ 1,185 $ 1,093 $ 65 6.5 %
Slide 77: Return on Average Tangible Common Equity
77 Quarter Ended Year Ended ($ amounts in millions) 9/30/2024 6/30/2024 3/31/2024 2023 2022 2021 RETURN ON AVERAGE TANGIBLE COMMON SHAREHOLDERS' EQUITY Net income available to common shareholders (GAAP) A $ 446 $ 477 $ 343 $ 1,976 $ 2,146 $ 2,400 Average shareholders' equity (GAAP) $ 18,047 $ 16,713
Slide 78: Return on Average Tangible Common Shareholders' Equity
78 Non-GAAP reconciliation Return on average tangible common shareholders' equity Quarter Ended Year Ended ($ amounts in millions) 9/30/2024 6/30/2024 3/31/2024 2023 2022 2021 2020 2019 RETURN ON AVERAGE TANGIBLE COMMON SHAREHOLDERS' EQUITY Net income available to common shareholders A $ 446 $ 477 $
Slide 79: Adjusted CET1 - Inclusive of AOCI
79 Quarter Ended ($ amounts in millions) 9/30/2024 6/30/2024 3/31/2024 12/31/2023 ADJUSTED CET1 RATIO Common Equity Tier 1(1) A $ 13,184 $ 13,093 $ 12,913 $ 12,976 Adjustments: AOCI gain (loss) on securities(2) (1,369) (2,298) (2,264) (2,064) AOCI gain (loss) on defined benefit pension plans and oth
Slide 80: Non-Interest Income
80 Non-GAAP Reconciliation Non-Interest Income Year Ended ($ amounts in millions) 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 Non-interest income (GAAP) $ 2,256 $ 2,429 $ 2,524 $ 2,393 $ 2,116 $ 2,019 $ 1,962 $ 2,011 $ 1,937 $ 1,785 $ 2,096 $ 2,201 $ 2,226 Security (gains) losse
Slide 81: Tangible Common Ratios
81 As of and for Quarter Ended ($ amounts in millions, except per share data) 9/30/2024 6/30/2024 3/31/2024 12/31/2023 9/30/2023 TANGIBLE COMMON RATIOS Shareholders’ equity (GAAP) A $ 18,676 $ 17,169 $ 17,044 $ 17,429 $ 16,100 Less: Preferred stock (GAAP) 1,715 1,659 1,659 1,659 1,659 Intangible ass
Slide 82: Tangible Common Ratios
82 As of and for Quarter Ended ($ amounts in millions, except per share data) 9/30/2024 6/30/2024 3/31/2024 12/31/2023 9/30/2023 6/30/2023 TANGIBLE COMMON RATIOS Shareholders’ equity (GAAP) A $ 18,676 $ 17,169 $ 17,044 $ 17,429 $ 16,100 $ 16,639 Less: Preferred stock (GAAP) 1,715 1,659 1,659 1,659 1
Slide 83: Forward-Looking Statements
83 Forward-Looking Statements This presentation may include forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. The words “future,” “anticipates,” “assumes,” “intends,” “plans,” “seeks,” “believes,” “predicts,” “potential,” “objectives,” “estimates,” “expec
Slide 84: Forward-Looking Statements: Risk Factors
84 • Our inability to develop and gain acceptance from current and prospective customers for new products and services and the enhancement of existing products and services to meet customers’ needs and respond to emerging technological trends in a timely manner could have a negative impact on our re
Slide 85: Forward-Looking Statements: Risk Factors
85 • Our ability to comply with stress testing and capital planning requirements (as part of the CCAR process or otherwise) may continue to require a significant investment of our managerial resources due to the importance of such tests and requirements. • Our ability to comply with applicable capit
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Regions Financial — Investor Presentation (November 2024) on 6ix