Regions Financial Corporation · NYSE:RF
Regions Financial — Raymond James 33rd Annual Institutional Investors Conference (March 2012)
26 slides from Regions Financial's conference presentation, Mar 5, 2012
Slide 1: Raymond James 33rd Annual Institutional Investors Conference
Raymond James 33 rd Annual Institutional Investors Conference March 5, 2012 David Turner Chief Financial Officer Exhibit 99.1
Slide 2: Why Regions?
Why Regions? • Strong Southeastern franchise with comprehensive line of product offerings • Leading brand favorability and exceptional service quality • Solid core business performance • Aggressively identifying and disposing of problem assets • Capital and liquidity remain solid and continue to imp
Slide 3: Regional Bank in the Southeast with Comprehensive and Diversified Product Offerings
Regional Bank in the Southeast with Comprehensive and Diversified Line of Product Offerings Consumer Services Business Services Associates: 26,813* Assets: $127B Loans: $78B Deposits: $96B Branches: 1,726 Insurance Offices: 30 ATMs: 2,083 Market Cap: $7.0B** * Includes Morgan Keegan associates **As
Slide 4: Regions' Footprint: High Market Shares, High Growth Markets or Both
Regions’ Footprint is Characterized by Either High Market Shares, High Growth Markets or Both Weighted Average Deposit Market Share in Regions’ Core Markets ($ in billions) National Average: 3.9% Source: SNL Financial Note: Core Markets include AL, FL, LA, MS, AR, TN Top 10 MSAs Deposits Market Shar
Slide 5: Competitive Advantage Driven by Customer Loyalty
Competitive Advantage Driven by Customer Loyalty Regions continues to perform in the top 10% in customer loyalty and top 20% for branch service quality (1) (1) Based on Gallup survey (2) Based on Prime Performance study (3) 2011 Greenwich Excellence Award #1 in Customer Service and “Friendliest” Ban
Slide 6: Quality Loans Key to Profitable Growth Portfolio Mix
Quality Loans Key to Profitable Growth Portfolio Mix Consumer Services › 40% of Total Loan Portfolio › Growing consumer loans to achieve a more balanced portfolio › Consumer loan growth will be fueled by new businesses as well as growth in existing businesses › Loan production in mortgage grew 18% o
Slide 7: Recent C&I Loan Growth Reflects Slowdown in 2011 Loan Growth
Recent C&I Loan Growth Reflects Slowdown in 2011 Loan Growth Quarter to Quarter *Balances are on ending basis • Commercial & Industrial loans have grown 9% since end of 2010 • Commercial & Industrial commitments increased 14% • Line utilization increased over 200 basis points since the end of 2010
Slide 8: Mix and Cost of Deposits Provides Further Opportunity to Lower Deposit Costs
Mix and Cost of Deposits Provides Further Opportunity to Lower Deposit Costs Deposit Cost Opportunity Gap Deposit Mix Compared to Peers Note: Peer banks include BAC, BBT, CMA, FITB, KEY, MTB, PNC, STI, USB, WFC Regions Peer Average • Regions has additional room to reduce deposit costs • Opportunity
Slide 9: Funding Mix and Deployment of Cash Reserves Expected to Improve NIM
Funding Mix and Deployment of Cash Reserves Expected to Result in Improvement to the NIM Impact of Excess Cash Reserves & Non-Accruals on NIM 1 Regions has closed a portion of its gap vs. the peers in the last 5 quarters 69 bps 41 bps Note: Peer banks include BAC, BBT, CMA, FITB, KEY, MTB, PNC, STI,
Slide 10: Ability to Adapt Our Business Model Helps Mitigate New Legislation
Ability to Adapt Our Business Model Helps Mitigate New Legislation Fee Income by Quarter Total 2011 service charges were relatively stable despite the negative impact of Regulation E and debit interchange legislation. Offsetting Durbin • Ongoing restructuring of our accounts from free to fee-eligibl
Slide 11: Expense control continues to be a focus
Expense control continues to be a focus 4Q11 vs. 4Q10 % Change • Year-over-year Regions’ expenses declined 7% while many peers continued to grow expenses • While many peers expenses increased in the fourth quarter, Regions expenses were stable, excluding Visa charge Source: SNL Financial – from cont
Slide 12: Expenses Per FTE Lowest of All Peers
Expenses Per FTE Lowest of All Peers NIE Per FTE Salaries and Benefits Expense Per FTE Source: SNL Financial – 4Q11 vs 4Q10 – from continuing operations excludes goodwill impairment; see appendix for reconciliation Note: Peer banks include BAC, BBT, CMA, FITB, KEY, MTB, PNC, STI, USB, WFC
Slide 13: Significant Reduction in Highest Risk Portfolio Segments
Significant Reduction in Highest Risk Portfolio Segments Total Investor Real Estate Higher Risk Investor Real Estate Segments Reduced Investor Real Estate $15.1 B or 59% over 5 years Reduced High Risk Segments $11.8 B or 87% over 5 years
Slide 14: Continued Improvement in Credit Quality Metrics
Continued Improvement in Credit Quality Metrics Business Services Criticized Loans * NCO’s Avg Loans Total NPAs (including HFS) NPLs Gross Migration *Includes classified loans and special mention loans
Slide 15: Loan Loss Provision Down 57% Since 4Q10; Allowance Ratio Above Peers
Loan Loss Provision Down 57% Since 4Q10; Allowance Ratio 1.2X Higher Than Peer Average Loan Loss Provision Allowance versus Peers (1) Loan charge-offs related to Sales and Transfer to Held for Sale Note: Peer banks include BAC, BBT, CMA, FITB, KEY, MTB, PNC, STI, USB, WFC Sales/ HFS (1)
Slide 16: Strong Capital
Strong Capital * Non-GAAP – see appendix for reconciliation; 4Q11 Tier 1 Common and Tier 1 Capital ratios are estimated ** Non-GAAP - Subject to change as interpretation of Basel III rules is ongoing and dependent on guidance from Basel and regulators; see appendix for reconciliation
Slide 17: Solid Liquidity
Liquidity Coverage Ratio Core Deposits as a % of Total Funding Solid Liquidity Source: SNL Financial Note: Peer banks include BAC, BBT, CMA, FITB, KEY, MTB, PNC, STI, USB, WFC Note 2: Liquidity Coverage Ratio as of 3Q11 Data provided by Barclay’s Capital based on the their models using publicly avai
Slide 18: We reached three important milestones in 2011
We reached three important milestones in 2011 Our core franchise strengthened and we achieved sustainable profitability from our continuing operations* All of our credit quality related metrics experienced marked improvement throughout the year Completed the strategic review of Morgan Keegan, result
Slide 19: As REGIONS
As REGIONS |
Slide 20: 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 (“the Act”) provides a “safe harbor” for forward-looking statements which
Slide 21: Non-GAAP Reconciliation: Pre-Tax Pre-Provision Income and Adjusted Expenses
Non-GAAP Reconciliation: Pre-Tax Pre-Provision Income and Adjusted Expenses Adjusted non-interest expense declined 5% for the full year 2011 and 12% comparing 4Q10 to 4Q11, while increasing 2% on a linked quarter basis in 4Q11 4Q11 3Q11 2Q11 1Q11 4Q10 Pre-Tax Pre-Provision Income (non-GAAP) Income (
Slide 22: Non-GAAP Reconciliation: Tier 1 Common
Non-GAAP Reconciliation: Tier 1 Common ($ amounts in millions) 12/31/11 9/30/11 6/30/11 3/31/11 12/31/10 TIER 1 COMMON RISK-BASED RATIO CONSOLIDATED - Stockholders' equity (GAAP) 16,499 $ 17,263 $ 16,888 $ 16,619 $ 16,734 $ Accumulated other comprehensive (income) loss (92) Non-qualifying goodwill a
Slide 23: Non-GAAP Reconciliation: Basel III
Non-GAAP Reconciliation: Basel III ($ amounts in millions) 12/31/11 BASEL III Stockholders' equity (GAAP) 16,499 $ Non-qualifying goodwill and intangibles (1) (5,065) Adjustments, including other comprehensive income related to cash flow hedges, disallowed deferred tax assets, threshold deductions a
Slide 24: Continued Improvement in Credit Quality Metrics
Continued Improvement in Credit Quality Metrics NPL Balances Paying Current and as Agreed Total NPLs (excluding HFS)
Slide 25: Credit Quality Metrics
Credit Quality Metrics Allowance for Loan Losses to NPLs (excl HFS) Investor Real Estate Gross NPA Migration NPAs + 90 Day Delinquencies/Loans + OREO + HFS NPAs + 90 day Delinquencies * Previous presentation showed 2Q11 on a pro-forma basis to include completed bulk sale after quarter-end. Current p
Slide 26: Ma REGIONS
Ma REGIONS
Regions Financial — Raymond James 33rd Annual Institutional Investors Conference (March 2012) on 6ix