Regions Financial Corporation · NYSE:RF
Regions Financial — Bank of America Merrill Lynch Banking and Financial Services Conference 2012
19 slides from Regions Financial's conference presentation, Nov 14, 2012
Slide 1: Bank of America Merrill Lynch Banking and Financial Services Conference
EXHIBIT 99.1 Bank of America Merrill Lynch Banking and Financial Services Conference November 14, 2012 David Turner Chief Financial Officer
Slide 2: Relationship Bank Focused on Shared Value
RELATIONSHIP BANK FOCUSED ON SHARED VALUE Business Services › Small and mid- sized C&I lending › Commercial Real Estate › Equipment Finance Consumer Services Ranked 4th or Better in Market Share › Mortgage › Direct Lending › Home Equity › Indirect Auto › Credit Card • Bank Associates: 23,361 • Asset
Slide 3: Targeting a More Balanced Loan Portfolio
TARGETING A MORE BALANCED LOAN PORTFOLIO CONSUMER SERVICES BUSINESS SERVICES • 39% of Total Loan Portfolio • 61% of Total Loan Portfolio • Mortgage loan production totaled $2.2 billion in 3Q • Focused on middle market and small business • Indirect auto lending grew 25% YoY or 10% linked quarter • Br
Slide 4: Business Services Focused on Specialized Industries
BUSINESS SERVICES FOCUSED ON SPECIALIZED INDUSTRIES • Specialized lending groups are headquartered throughout our footprint Healthcare Technology/Defense (Nashville) (Charlotte) • Integrated approach to specialized lending where local bankers work with experienced specialized Transportation lenders
Slide 5: Loan Commitments and Loans Outstanding Increase
LOAN COMMITMENTS AND LOANS OUTSTANDING INCREASE Commitments and Outstandings 31,242 32,228 29,929 30,801 28,731 26,992 28,029 44.4% 43.9% 25,020 26,272 43.3% 43.1% 42.6% 41.7% 41.5% 40.2% 40.3% 12,428 12,764 13,275 13,858 14,148 10,069 10,592 11,265 11,631 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q1
Slide 6: Loan Balance Trends
LOAN BALANCE TRENDS 2 1 • Total loans were down $758 million Total Loan Balances and Loan Yields dollars or 1% linked quarter • Investor real estate totaled $8.7 billion at quarter end and has now been reduced to 12% of total loans down from 15% one year ago • Investor real estate expected to contin
Slide 7: Funding Mix Continues to Improve as Deposit Costs Declined 4 bps
FUNDING MIX CONTINUES TO IMPROVE AS DEPOSIT COSTS DECLINED 4 BPS Deposit Balances* and Deposit Costs • Avg. time deposits as a % of avg. deposits decreased to 16% in 3Q12 $96,147 $95,155 $96,061 $95,863 $94,609 from 22% in 3Q11 21,369 19,774 19,053 17,175 15,536 • Deposit repricing opportunities rem
Slide 8: Net Interest Margin Impacted by Continued Low Rate Environment
NET INTEREST MARGIN IMPACTED BY CONTINUED LOW RATE ENVIRONMENT • Net interest margin was impacted by Net Interest Income and Net Interest Margin the continued low rate environment, which drove overall higher $859 $858 $839 $850 $830 prepayment rates 3.16% • Securities portfolio yield impacted by inc
Slide 9: Record Mortgage Income Drives Non-Interest Revenue Higher
RECORD MORTGAGE INCOME DRIVES NON-INTEREST REVENUE HIGHER (1) Fee Income by Quarter • Non-interest revenue increased 5% $533 linked quarter $513 $524 $507 $507 84 • Mortgage revenues increased 18% 142 137 137 135 27 linked quarter and 56% over last year 24 28 26 28 26 18 68 23 23 24 • 50% of applica
Slide 10: Non-Interest Expenses Impacted by Credit Expenses
NON-INTEREST EXPENSES IMPACTED BY CREDIT EXPENSES Non-Interest Expenses1 • Non-interest expenses were up 3% linked quarter due to an increase in credit related $913 $871 $869 expenses, credit card conversion expenses and $850 $842 salaries and benefits • Other real estate expenses increased $3 milli
Slide 11: Continued Momentum in Asset Quality Metrics
CONTINUED MOMENTUM IN ASSET QUALITY METRICS Business Services Criticized Loans NPLs and Coverage Ratio $7,305 30% Decline* 30% Decline in Total NPLs* $6,370 $5,979 $2,710 120% $5,436 118% $5,131 $2,372 $2,151 116% $1,915 $1,884 109% 109% 3Q11 4Q11 1Q12 2Q12 3Q12 3Q11 4Q11 1Q12 2Q12 3Q12 NPLs** ALL /
Slide 12: Capital Ratios Remain Strong
CAPITAL RATIOS REMAIN STRONG (3) • Basel III Tier 1 Common ratio (1) estimated Loan to Deposit Ratio under the new proposed rules at 8.7% 83% 81% 80% • Loan to deposit ratio remains low, 79% 79% allowing Regions to be ready for loan growth when the market demand increases 3Q11 4Q11 1Q12 2Q12 3Q12 (1
Slide 13: Appendix
APPENDIX Me REGIONS ®
Slide 14: 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 statement
Slide 15: Non-GAAP Reconciliation: Non-Interest Expense
NON-GAAP RECONCILIATION: NON-INTEREST EXPENSE The table below presents non-interest expense (GAAP) excluding certain adjustments to arrive at adjusted non-interest expense (non- GAAP). Regions believes that the exclusion of these adjustments provides a meaningful base for period-to-period comparison
Slide 16: 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 17: Non-GAAP Reconciliation: Tier 1 Capital
NON-GAAP RECONCILIATION: TIER 1 CAPITAL Regions' Series A preferred stock was repurchased on April 4, 2012 and the warrant to purchase 48.3 million shares of Regions common stock was retired on May 2, 2012. The following table presents the calculations of Tier 1 capital and the Tier 1 capital ratio,
Slide 18: 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 Basel III requirements, as proposed by the U.S. Notices of Proposed Rulemaking released in June 2012. Regions currently calculates its risk-based capital ratios u
Slide 19: Regions
REGIONS