Regions Financial Corporation · NYSE:RF
Regions Financial — Q3 2013 Earnings Presentation
15 slides from Regions Financial's earnings presentation, Oct 22, 2013
Slide 1: Regions Financial 3rd Quarter 2013 Earnings Conference Call
Regions Financial 3rd Quarter 2013 Earnings Conference Call October 22, 2013 1
Slide 2: Staying focused and moving forward
Staying y g focused and moving g forward Grew loan balances $902 million from the prior quarter to $76 billion Increased net interest income $16 million from the prior quarter to $824 million Expanded net interest margin 8 basis points to 3.24% Improved overall asset quality as net charge-offs decli
Slide 3: Loan balances continued to increase
Loan balances continued to increase Total Loan Balances (1) $75,259 $73,995 $73,936 $74,990 $75,892 • Total loan balances grew over $900 29 554 29,554 29 202 29,202 28 875 28,875 28 946 28,946 29 156 29,156 million from the second quarter • Growing indirect auto loans by expanding the dealer network
Slide 4: Total funding costs continued to improve
Total funding g costs continued to improve p Deposit Balances (1) and Deposit Costs $94,609 $94,805 $93,864 $92,613 $92,080 14 220 14,220 12 904 12,904 • Average low-cost deposits grew 15,536 15 536 11 423 11,423 10 417 10,417 28 bps $473 million from the prior quarter 22 bps 18 bps 15 bps • Time de
Slide 5: Net interest income increased and net interest margin expanded
Net interest income increased and net interest margin e expanded panded • Net interest income increased $16 million Net Interest Income and Net Interest Margin or 2% linked quarter $838 • Net interest margin increased 8 bps $830 $831 quarter-over-quarter $821 • Liability management and investment 3.
Slide 6: Non-interest revenue relatively flat
Non-interest revenue relatively y flat • Divested non-core portion of Wealth Non-Interest Revenue Management business, which resulted in a pre-tax gain of $24 million $533 $536 $501 $497 $495 • As expected, mortgage income declined 25% 83 89 as production slowed by 16% due to fewer 83 85 60 refinanc
Slide 7: Prudent expense management
Prudent expense management Non-Interest Expenses • Non-interest expenses were flat linked quarter $902 $884 $884 • Salaries and benefits increased $869 slightly due to additional staffing $842 in revenue ggenerating,g customer facing and compliance areas • Continue to make investments in technology
Slide 8: Broad-based improvement in asset quality
Broad-based improvement in asset quality Net Charge-Offs and Ratio NPLs and Coverage Ratio (2) $262 56% Decline(1) 28% Decline in Total NPLs(1) 130% $1,884 125% $180 $1,681 114% 120% $180 $1,586 $144 115% 1.38% $1,506 110% $114 $1,354 0.96% 0.99% 114% 110% 109% 105% 0.77% 109% 0 60% 0.60% 100% 95% 9
Slide 9: Strong capital position
Strong capital position • Basel III Tier 1 Common ratio(1)(2) Tier 1 capital ratio (1) estimated to be approximately 10.4%, which is well above minimum threshold 11 5% 11.5% 12 0% 12.4% 12.0% 12 4% 11 6% 11.6% 11 6% 11.6% • Liquidity at both the bank and holding company remains solid with a loan to
Slide 10: Appendix
Appendix Ma REGIONS «
Slide 11: Interest rate sensitivity summary
Interest rate sensitivity summary Net interest income remains asset sensitive to increases in both short-term and longer-term rates 5.00% 5.00% 4 00% 4.00% 4.00% 3.00% 3.00% 2.00% 2.00% 1.00% 1 00% 1.00% 0.00% 0.00% Forward Curve Forward Curve 12- Month Net Interest Income Impact From 12- Month Net
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: Basel III
Non-GAAP reconciliation: Basel III Th following The f ll i table t bl provides id calculations l l ti off Tier Ti 1 common, based b d on Regions’ R i ’ currentt understanding d t di off theth Fi Finall B Basell III requirements, i t released l d iin JJuly l 2013 2013. Regions currently calculates it
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 statements w
Slide 15: VN REGIONS
VN REGIONS