Regions Financial Corporation · NYSE:RF
Regions Financial — Investor Presentation (May 2021)
74 slides from Regions Financial's investor presentation, May 11, 2021
Slide 1: Investor Information May - June 2021
Investor Information May - June 2021 Exhibit 99.1
Slide 2: Table of contents
2 Table of contents Topic Page # Profile and Strategy 3-7 Income Statement 8-20 Business Segment Highlights 21-25 Balance Sheet 26-28 Capital, Debt & Liquidity 29-34 Technology & Continuous Improvement 35-41 Credit 42-55 Near-Term Expectations 56 Environmental, Social & Corporate Governance 57-58 LI
Slide 3: Our banking franchise
3 Line of business coverage Alabama – 195 Georgia – 114 Iowa – 8 Mississippi – 112 South Carolina – 21 Arkansas – 64 Illinois – 42 Kentucky – 11 Missouri – 55 Tennessee – 209 Florida – 290 Indiana – 47 Louisiana – 92 North Carolina – 7 Texas – 99 Ranked 18th in the U.S. in total deposits(1) Branch l
Slide 4: Top market share plays a valuable role in the competitive landscape
4 Top market share plays a valuable role in the competitive landscape (1) Based on MSA and non-MSA counties using FDIC deposit data as of 6/30/2020; pro-forma for announced M&A transactions as of 4/28/2021. (2) Significant money center bank presence (JPM, BAC, C, WFC) defined as combined market shar
Slide 5: Presence in strong growth markets
5 4.9% 3.1% 3.0% 1.9% 1.7% 1.2% 1.2% 1.0% 0.4% Peer #1 Peer #2 Peer #3 Peer #4 Peer #5 Peer #6 Peer #7 Peer #8 Presence in strong growth markets Top Faster Growing MSAs Deposits Market Rank(3) Nashville, Tennessee $9.7 3 Tampa, Florida $5.3 4 Miami, Florida $5.1 13 Atlanta, Georgia $4.8 7 Orlando, F
Slide 6: Our footprint has significant economic advantages
6 Jobs Our footprint has significant economic advantages Population #2 state for workforce development/talent attraction Footprint Retirees Top 3 state for business climate #2 state for manufacturing output #1 state for film production Alabama Tennessee Louisiana Georgia 56% of all new jobs created
Slide 7: Regions receives top honors
7 Regions receives top honors Regions Bank Awarded Bronze Military Friendly Award Seven Years Strong: Regions Bank Again Named Gallup Exceptional Workplace Award Winner in 2021 Regions Bank Ranked Highest in Customer Satisfaction in J.D. Power 2020 U.S. Online Banking Satisfaction Study Among Region
Slide 8: First quarter 2021 overview
8 First quarter 2021 overview (1) Non-GAAP, see appendix for reconciliation. Adjusted Pre-Tax Pre- Provision Income(1) Diluted Earnings Per Share Adjusted Total Revenue(1) Adjusted Non- Interest Expense(1) Net Income Available to Common Shareholders $686M $0.63 $1,604M $918M $614M • Adjusted total r
Slide 9: Net interest income and net interest margin - liquidity impacts
9 $940 $1,017 $978 3.44% 3.13% 3.02% 3.40% 3.40% 1Q20 4Q20 1Q21 NII(1) Net interest income and net interest margin - liquidity impacts NII(1) and NIM ($ in millions) (1) Net interest income (NII) on a fully taxable equivalent basis. (2) Non-GAAP; see appendix for reconciliation. NIM • In 1Q, deposit
Slide 10: Net interest income drivers
10 • Rate environment impacts offset through active balance sheet management ◦ Higher avg. hedging notional; total benefit of $102M NII to 1Q(3) ◦ Lower deposit pricing; deposit cost = 6bps / interest-bearing deposit cost = 11bps ◦ Cash management strategy carryover from 4Q; Dec. long-term debt call
Slide 11: Balance sheet profile
11 IB 53% NIB 43% Time 4% Loans 55% Securities 18% Cash 15% Other 12% Deposits 96% Borrowin… 2% Other 2% Floating 60% Fixed 40% $130B Floating 22% Fixed 73% PPP 5% Loans(2)(3) • Naturally asset sensitive balance sheet, supported by a large, stable deposit base and low reliance on wholesale borrowing
Slide 12: Cash deployment and liquidity
12 • Recent liquidity inflows represent an NII opportunity, with cash deployment dependent on: ◦ stability of deposit inflows ◦ return levels on potential asset purchases ◦ demand for loan growth • Regions will take a conservative approach to cash deployment over time given uncertainty in these fact
Slide 13: Earnings stability and hedging
13 10.7%10.5% 9.6% 9.1% 8.9% 6.1% 5.7% 5.1% 3.8% 2.7% 2.5% 0.6% 0.3% 1.5 3.7 3.9 2.1 0.9 3.3 2.3 1.0 2.3 3.3 P e e r 12 R F 1Q R F 4Q P e e r 11 P e e r 10 P e e r 9 P e e r 8 P e e r 7 P e e r 6 P e e r 5 P e e r 4 P e e r 3 P e e r 2 P e e r 1 WAL remaining on CF Hedges(5) Cash-flow Hedge Program
Slide 14: Hedge program repositioning
14 • Recent terminations and resulting maturity profile well positioned for rising short-term rates in 2023 and beyond ◦ Notional reductions(2) - intended to ensure balanced rate risk position as higher rates become possible ◦ Securities offset(3) - $1.25B of swaps unwound to offset a portion of the
Slide 15: Interest rate exposure of future business and long-term rates
15 Agency/UST: 1% Agency MBS: 69% Agency CMBS: 24% Non-Agency CMBS: 2% Corporate Bonds: 4% Interest rate exposure of future business and long-term rates (1) 3/31/2021 data latest available; Source: SEC reporting, Call Report data for loan repricing within 1 year; Peers include CFG, CMA, FHN, FITB, H
Slide 16: Non-interest income
16 • Additional government stimulus, changes in customer behavior and continued enhancements to overdraft practices & transaction posting are expected to keep service charges 10-15% below 2019 levels • Capital markets growth in fees generated from the placement of permanent financing for real estate
Slide 17: Diversified non-interest income
17 Consumer 54% Wealth Management15% Corporate 31% 1Q21 fee revenue by segment(1) Diversified non-interest income ($ in millions) • Consumer fee income categories include service charges on deposit accounts, card and ATM fees, and mortgage income generated through origination and servicing of reside
Slide 18: Mortgage
18 Closed mortgages expected to have reached $1.1T in 1Q 2021 across the US(1) Purchase and refinance volume expected to remain strong in 2021 driven by continued low rates, but declining from 2020 industry high production(1) Investments in people, process and technology began in 2018 Enhancing MLO
Slide 19: Non-interest expense
19(1) Non-GAAP; see appendix for reconciliation. (2) 2020 adjusted non-interest expenses include ~$60M of expense associated with the Ascentium acquisition that closed 4/1/2020. • Adjusted expenses(1) decreased 1% driven primarily by lower incentive compensation related to capital markets and mortga
Slide 20: Strong PPI profile
20 2.71% 2.61% 2.25% 2.15% 2.14% 2.11% 2.09% 2.04% 2.03% 2.02% 2.01% 1.92% 1.81% 1.6% Peer 1 RF Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 Peer 10 Peer 11 Peer 12 Peer 13 Strong PPI(1) profile (1) Non-GAAP; see Appendix for reconciliation. (2) Source: SNL Financial. Risk-weighted Assets
Slide 21: Business segments
21 52%43% 5% 63% 35% 2% 33% 59% 8% $680M $85B $123B 1Q21 Pre-tax pre- provision income(1) 1Q21 Average deposits 1Q21 Average loans (1) Pie %'s exclude the pre-tax pre-provision income (loss) from the Other Segment totaling $(13) million. Business segments Consumer Corporate Wealth Management
Slide 22: Consumer Banking Group - Prudent cost management
22 2014 2020 57.8% 58.1% 59.7% 61.1% 66.2% 74.1% 74.5% 76.6% RF Peer 1 Peer 2 Peer3 Peer 4 Peer 5 Peer 6 Peer 7 2014 2020 2014 2020 Creating Efficiencies… ...To Re-Invest In the Business… • Migration to single job family in branches along with transaction migration and thin network strategy are driv
Slide 23: Corporate Banking Group
23 Corporate Banking Group Note: (1) Reflects 2020 YE. (2) Reported as of March to October 2020. (3) Regions’ deferrals reported YTD as of December 17, 2020, includes Ascentium deferrals of 13.3k reported YTD as of December 31, 2020. 2020: A year to align, transform, and execute to deliver long-term
Slide 24: Wealth Management
24 Wealth Management • Maintained strong momentum in growth markets and protected business through continued engagement and communication with clients • Stood up key COVID-19 and business continuity resources for WM associates • Implemented sales model changes with temporary branch closures due to h
Slide 25: Continuing our momentum
25 Continuing our momentum • Focused on executing core business disciplines centered on delivering Regions 360® through providing proactive, tailored solutions to meet clients’ needs • Areas of focus ◦ Ensuring full channel access to Ascentium and introducing Regions' capabilities ◦ Expanding capita
Slide 26: Average loans & deposits
26 $95.7 $119.8 $122.9 59.7 69.9 72.9 26.6 40.6 40.38.1 8.9 9.3 1.3 0.4 0.4 1Q20 4Q20 1Q21 Average loans & deposits (1) Non-GAAP, see appendix for reconciliation. (2) Other deposits represent non-customer balances primarily consisting of wholesale funding (for example, Eurodollar deposits, selected
Slide 27: 1Q21 average loan composition
27 $42.8 $5.4 $0.3 $5.4 $1.8 Commercial and Industrial CRE Mortgage - OO CRE Construction - OO IRE - Mortgage IRE - Construction 1Q21 average loan composition $16.6 $0.8 $2.4 $7.1 $1.1 $1.0 Mortgage Indirect-Vehicles Indirect-Other Home Equity Credit Card Other Average consumer loans $29.0B Average
Slide 28: PPP loan details
28 ($ in millions) 2Q20 3Q20 4Q20 1Q21 Round 1-average $ 3,213 $ 4,558 $ 4,143 $ 3,232 Round 2-average — — — 566 Total-average $ 3,213 $ 4,558 $ 4,143 $ 3,798 NII(1) $ 18 $ 31 $ 54 $ 40 Round 1-ending $ 4,498 $ 4,594 $ 3,624 $ 2,888 Round 2-ending — — — 1,429 Total-ending $ 4,498 $ 4,594 $ 3,624 $ 4
Slide 29: Capital and Liquidity
29 Capital and Liquidity Consolidated Liquidity Sources(3) ($ in billions) Federal Reserve Cash Balance $23 Free to Pledge Securities 17 Available FHLB Borrowing Capacity 16 Discount Window Availability 13 Total $69 (1) Current quarter ratios are estimated. (2) Based on ending balances. (3) As of Ma
Slide 30: CET1 Waterfall
30 9.8% 0.6% 0.1% (0.1)% (0.1)% 10.3% CET1 Waterfall (1) Non-GAAP; see appendix for reconciliation. (2) Provision expense includes the impact of CECL deferral. (3) Current quarter ratios are estimated and reflect rounding. 4Q20 CET1% Pre-tax pre- provision income(1) Common Dividend 1Q21 CET1%(3) Pro
Slide 31: Projected preferred stock dividends
31 Regions Preferred Par Value 2Q21 3Q21 4Q21 Series A $500.0 $8.0 $— $— Series B $500.0 $8.0 $8.0 $8.0 Series C $500.0 $7.1 $7.1 $7.1 Series D $350.0 $5.0 $5.0 $5.0 Series E(1) $400.0 $— $6.5 $4.5 Total $28.1 $26.6 $24.6 2Q21 - 4Q21 projected preferred stock dividends ($ in millions) (1) The 3Q div
Slide 32: Significant protection
32 Significant protection • The combined loss absorbing protection from capital, allowance coverage, and accumulated other comprehensive income(1) is among the highest in the peer set ◦ Regions’ coverage equates to roughly 13.8% of RWA vs. the peer median of 12.4% • AOCI reflective of implied stabil
Slide 33: Capital optimization
33 Capital Optimization Investments Indirect • ~$6.4B of strategic runoff in process • Third-party originated auto runoff of ~$2.0B starting in 2016 • Dealer Financial Services auto portfolio runoff of ~$2.4B starting in early 2019 • GSKY unsecured consumer loans runoff of ~$2.0B starting in Dec 201
Slide 34: Unsecured debt and credit ratings profile
34 $0 $0 $1,000 $100 $900 $800 — — 1,000 750 300 500 HoldCo Senior Notes Bank Senior Notes HoldCo Subordinated Notes Bank Subordinated Notes 2021 2022 2023 2024 2025 2037 Regions unsecured debt and credit ratings profile • Unsecured wholesale debt footprint represents just 1.8% of 3/31/2021 assets w
Slide 35: Technology and digital efforts
35 ® Efforts Omnichannel view of customers for a “You Know Me & Value Me” experience Regions Client IQ (RCLIQ) delivering ‘needs based’ engagement resulting in significant corporate revenue ROSIE Personalized offering of products and services to anticipate customer needs Accelerating digital transfo
Slide 36: Digital Acceleration
36 Digital Acceleration Digital Users up 9% in Q1 2021 compared to Q1 2020 Mobile App Redesign 4.8 iOS App Rating New Mobile features include TermIT, Recurring Transfers, External Transfers 141% increase in customer Zelle payments in Q1 2021 compared to Q1 2020 Innovating Operations Emerging Stronge
Slide 37: Digital advantage from past technology investments
37 Digital advantage from past technology investments Digital Expansion & Resiliency Increased daily mobile deposit limits 99%+ system availability sustained eSign Expansion Expanded eSign functionality resulting in 1,790 packaged signed and over 44,400 PPP loans vaulted PPP & Stimulus Payments Proc
Slide 38: Continue to invest for the future
38 System Maintenance New Technology Cybersecurity / Risk Management Continue to invest for the future $625MM in technology spending 48%42% 10% • Technology spend represents ~10-11% of revenue. • Technology Spend is expected to stay flat and produce innovation through New Technology Investments. Pas
Slide 39: Growth in digital consumer transactions
39 257 311 126 141 131 170 March YTD 2020 March YTD 2021 Mobile Banking Log-Ins 21% YoY Online Banking Log-Ins 1.02 2.03 March YTD 2020 March YTD 2021 15% 21% 31% 32% 54% 47% March YTD 2020 March YTD 2021 40.0 82.4 35.0 72.0 2.7 2.9 2.3 7.4 March YTD 2020 March YTD 2021 62% 67% 38% 33% March YTD 202
Slide 40: Continuous improvement initiatives delivering solid results
40Note: data through 1Q21. Initiatives complete Initiatives to be completed Total number of initiatives Revenue 17 13 30 Organizational efficiency, effectiveness & simplification 22 12 34 Third-party spend reductions 17 11 28 Total initiatives 56 36 92 Continuous improvement initiatives delivering s
Slide 41: Optimizing the branch network
41 2014 2015 2016 2017 2018 2019 2020 2021E 2013 2014 2015 2016 2017 2018 2019 2020 2021E Branch Efficiency Through 2021 Optimizing the branch network Consolidations funding growth initiatives • >400 branches consolidated from 2014 – 1Q21 while opening 74 • The branch network decreased by 59 in 2020
Slide 42: Asset quality
42 $123 $94 $83 60 41 37 63 53 460.59% 0.43% 0.40% 1Q20 4Q20 1Q21 $638 $745 $738 261% 308% 280% 1Q20 4Q20 1Q21 NPLs and ACL coverage ratio Asset quality ($ in millions) ($ in millions) ($ in millions) Net charge-offs and ratio NPLs - excluding LHFS ACL coverage ratio Consumer net charge-offs Busines
Slide 43: Allowance for credit losses waterfall
43 Changes in Portfolio Risk & Balances $2,293 $(83) $(130) $(12) $2,068 Allowance for credit losses waterfall Changes in Economic Outlook Net Charge- Offs 3/31/2021 • 1Q ending allowance decreased $225M due to improvement in the economic outlook combined with stabilized credit performance and charg
Slide 44: Base R&S economic outlook
44 Pre-R&S period 1Q2021 2Q2021 3Q2021 4Q2021 1Q2022 2Q2022 3Q2022 4Q2022 1Q2023 Real GDP, annualized % change 4.9 % 6.8 % 6.3 % 4.9 % 3.9 % 2.7 % 2.6 % 2.4 % 2.3 % Unemployment rate 6.2 % 5.8 % 5.5 % 5.2 % 4.8 % 4.7 % 4.5 % 4.3 % 4.1 % HPI, year-over-year % change 10.1 % 10.0 % 8.1 % 5.7 % 3.5 % 3.
Slide 45: Allowance for credit losses by portfolio
45 As of 3/31/21 As of 12/31/20 (in millions) Loan Balance ACL ACL/Loans Loan Balance ACL ACL/Loans C&I $43,241 $921 2.13 % $42,870 $1,027 2.40 % CRE-OO mortgage 5,335 206 3.87 % 5,405 242 4.47 % CRE-OO construction 293 22 7.52 % 300 24 7.98 % Total commercial $48,869 $1,149 2.35 % $48,575 $1,293 2.
Slide 46: COVID-19 high-risk industry sectors
46 • Proactive, frequent customer dialogue • Closely monitoring most vulnerable customers • Monitoring ratings migration Bottom up review informs and narrows COVID-19 high-risk industry sectors (as of March 31, 2021) C&I Portfolio BAL$(1) % of BAL$ Utilization Rate(2) % Criticized Energy – Oil & Gas
Slide 47: COVID-19 high-risk industry sectors waterfall
47 $5.15 $0.26 $(2.01) $(0.04) $3.36 COVID-19 high-risk industry sectors waterfall ($ in billions) Changed to Specifically Identified Assets (1) • COVID high-risk industries are continuously refined to those exhibiting higher levels of stress due to COVID impact • Specifically identified at-risk ass
Slide 48: Commercial & IRE loans
48 Commercial & IRE loans As of 3/31/21 ($ in millions) Total Commitments Outstanding Balances % Utilization Administrative, Support, Waste & Repair $2,611 $1,622 62% Agriculture 676 419 62% Educational Services 3,880 2,985 77% Energy - Oil, Gas & Coal 3,912 1,600 41% Financial Services 9,397 4,143
Slide 49: Energy lending
49 As of 3/31/21 ($ in millions) # of Clients (1) Total Commitments Outstanding Balances % Utilization $ Criticized % Criticized Oilfield services and supply (OFS)(2) 144 $447 $290 65% $42 14% Exploration and production (E&P)(2) 96 1,336 763 57% 295 39% Midstream 21 1,463 428 29% 112 26% Downstream
Slide 50: Energy lending (continued)
50 $ (M ill io ns ) 1Q2015 1Q2021 E& P Oil fie ld Se rvi ce s Mi ds tre am Do wn str ea m Ot he r PP P L oa ns $0 $300 $600 $900 $1,200 $1,500 Energy lending (continued) Balances by Category Gross Losses *Other Losses include losses to MLP funds as well as losses related to coal. $ (M ill io ns ) $0
Slide 51: Restaurant lending
51 As of 3/31/21 ($ in millions) # of Clients* Total Commitments Outstanding Balances % Utilization $ Criticized % of Outstanding Criticized Quick Service 16,936 $1,319 $1,073 81% $71 7% Casual Dining 29 519 394 76% 305 77% Other 19 145 115 79% 94 82% PPP Loans 2,699 473 473 100% — —% Total Restaura
Slide 52: Hotel lending
52 As of 3/31/21 ($ in millions) # of Clients* Total Commitments Outstanding Balances % Utilization $ Criticized % of Outstanding Criticized CRE-Unsecured (REITs) 11 $803 $626 78% $568 91% IRE – Mortgage 17 263 249 95% 233 94% IRE – Construction 1 31 28 90% 28 100% Consumer Services 3,673 143 137 96
Slide 53: Commercial retail lending
53 Commercial retail lending As of 3/31/21 ($ in millions) # of Clients* Total Commitments Outstanding Balances % Utilization $ Criticized % Criticized CRE-Unsecured (REITs) 23 $2,701 $1,087 40% $0 —% IRE 139 747 718 96% 174 24% C&I 26,953 2,564 1,313 51% 19 1% CRE-OO 838 843 798 95% 22 3% ABL 20 1,
Slide 54: Loans to Small Business and Small Farms
54 13% 13% 10% 9% 9% 9% 8% 8% 21% Healthcare 13% Real Estate 13% Transportation & Warehousing 10% Professional, Scientific & Technical Services 9% Restaurant, Accommodation & Lodging 9% Retail Trade 9% Administrative, Support, Waste & Repair 8% Manufacturing 8% Other 21% (Portfolios <8% of total) 30
Slide 55: Consumer lending portfolio statistics
55 Consumer lending portfolio statistics Residential Mortgage • Avg. origination FICO 749 • Current LTV 59% • 97% owner occupied Home Equity • Avg. origination FICO 754 • Current LTV 42% • Only $47.8M of resets through 2021 • 69% of portfolio is 1st lien • Avg. loan size $33,370 Other Consumer Unsec
Slide 56: 2021 expectations
56 2021 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) Total revenue guid
Slide 57: Corporate governance
57 Corporate governance Other corporate governance highlights • Independent Chair of the Board • Director-by-Director Board skills, diversity and composition matrix • Adopted a version of the Rooney Rule applicable to Director and Section 16 Officer candidates, including CEO • Half of the Board's st
Slide 58: Environmental & social highlights
58 Environmental & social highlights Continuous Improvement in Sustainability • 2023 goals: 30% reduction in both greenhouse gas emissions and energy use • Sustainable lending in renewable energy • Sustainable investing through ESG- focused investment products • Environmental & social risk managemen
Slide 59: Regions' transition away from LIBOR
59 Regions' transition away from LIBOR Key Accomplishments • B We are operationally ready for SOFR and prepared to extend new loans tied to this benchmark • Mortgage ARMs are lending using SOFR and deposits linked to LIBOR have been transitioned to a new benchmark Portfolios Transitioned • All core
Slide 60: Appendix
> GENERATING Consistent Sustainable \ Long-term Performance APPENDIX AM REGIONS| 60
Slide 61: Fact sources and references
61 Fact Source Job Growth Bureau of Labor Statistics. "Employment, Hours, and Earnings from the Current Employment Statistics Survey.” data.bls.gov/timeseries/CES0000000001 Population Growth US Census Bureau. “State Intercensal Tables: 2000-2010." https://www.census.gov/data/tables/ time-series/demo
Slide 62: Non-GAAP measures definitions
62 Management uses pre-tax pre-provision income (non-GAAP) and adjusted pre-tax pre-provision income (non-GAAP), as well as the adjusted efficiency ratio (non-GAAP) and the adjusted fee income ratio (non-GAAP) to monitor performance and believes these measures provide meaningful information to inves
Slide 63: Non-GAAP reconciliation: adjusted net interest margin
63 Non-GAAP reconciliation: adjusted net interest margin Quarter-ended 3/31/2021 12/31/2020 9/30/2020 6/30/2020 3/31/2020 Net interest margin (FTE) (GAAP) 3.02 % 3.13 % 3.13 % 3.19 % 3.44 % Impact of SBA PPP loans (0.04) % (0.07) % 0.01 % 0.02 % NM Impact of excess cash 0.42 % 0.34 % 0.27 % 0.15 % N
Slide 64: Non-GAAP reconciliation: adjusted average loans
64 Non-GAAP reconciliation: adjusted average loans Average Balances ($ amounts in millions) 1Q21 4Q20 3Q20 2Q20 1Q20 1Q21 vs. 4Q20 1Q21 vs. 1Q20 Commercial and industrial $ 42,816 $ 43,889 $ 46,405 $ 49,296 $ 40,519 $ (1,073) (2.4) % $ 2,297 5.7 % Less: Commercial loans transferred to held for sale
Slide 65: Non-GAAP reconciliation: adjusted full year average loans
65 Non-GAAP reconciliation: adjusted full year average loans Average Balances Twelve Months Ended December 31 ($ amounts in millions) 2020 2019 2020 vs. 2019 Commercial and industrial $ 45,028 $ 40,162 $ 4,866 12.1 % Less: Commercial loans transferred to held for sale 179 — $ 179 NM Less: SBA PPP Lo
Slide 66: Non-GAAP reconciliation: adjusted ending loans
66 Non-GAAP reconciliation: adjusted ending loans As of 3/31/2021 3/31/2021 ($ amounts in millions) 3/31/2021 12/31/2020 9/30/2020 6/30/2020 3/31/2020 vs. 12/31/2020 vs. 3/31/2020 Commercial and industrial $ 43,241 $ 42,870 $ 45,199 $ 47,670 $ 45,388 $ 371 0.9 % $ (2,147) (4.7) % Less: Commercial lo
Slide 67: Non-GAAP reconciliation: NII, non-interest income/expense, efficiency ratio
67 Non-GAAP reconciliation: NII, non-interest income/expense, operating leverage and efficiency ratio NM - Not Meaningful Quarter Ended ($ amounts in millions) 3/31/2021 12/31/2020 9/30/2020 6/30/2020 3/31/2020 1Q21 vs. 4Q20 1Q21 vs. 1Q20 Non-interest expense (GAAP) A $ 928 $ 987 $ 896 $ 924 $ 836 $
Slide 68: Non-GAAP reconciliation: non-interest expense
68 Non-GAAP reconciliation: non-interest expense Year Ended December 31 ($ amounts in millions) 2020 2019 2018 2017 2016 Non-interest expense (GAAP) $ 3,643 $ 3,489 $ 3,570 $ 3,491 $ 3,483 Adjustments: Contribution to Regions Financial Corporation foundation (10) — (60) (40) — Professional, legal an
Slide 69: Non-GAAP reconciliation: ACL/Loans excluding PPP
69 Non-GAAP reconciliation: ACL/Loans excluding PPP As of ($ amounts in millions) 3/31/2021 12/31/2020 9/30/2020 6/30/2020 3/31/2020 Total Loans $ 84,755 $ 85,266 $ 88,359 $ 90,548 $ 88,098 Less: SBA PPP Loans 4,317 3,624 4,594 4,498 — Loans excluding PPP, net (non- GAAP) $ 80,438 $ 81,642 $ 83,765
Slide 70: Non-GAAP reconciliation: Pre-tax pre-provision income
70 Non-GAAP reconciliation: Pre-tax pre-provision income (PPI) Quarter Ended ($ amounts in millions) 3/31/2021 12/31/2020 9/30/2020 6/30/2020 3/31/2020 1Q21 vs. 4Q20 1Q21 vs. 1Q20 Net income (loss) available to common shareholders (GAAP) $ 614 $ 588 $ 501 $ (237) $ 139 $ 26 4.4 % $ 475 341.7 % Prefe
Slide 71: Forward-Looking Statements
71 Forward-Looking Statements This presentation may include forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not based on historical information, but rather are related to future operations, strategies, financial results or
Slide 72: Forward-looking statements risk factors
72 • 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
Slide 73: Forward-looking statements risk factors (continued)
73 • Possible downgrades in our credit ratings or outlook could, among other negative impacts, increase the costs of funding from capital markets. • The effects of a possible downgrade in the U.S. government’s sovereign credit rating or outlook, which could result in risks to us and general economic
Slide 74: Generating consistent, sustainable long-term performance
> GENERATING Consistent Sustainable We ng-term Performance A REGIONS