Regions Financial Corporation · NYSE:RF
Regions Financial — Investor Presentation (February 2024)
81 slides from Regions Financial's investor presentation, Feb 6, 2024
Slide 1: Investor Information February - March 2024
Investor Information February - March 2024 Exhibit 99.1
Slide 2: Table of Contents
2 Table of Contents Topic Page # Profile and Strategy 3-10 Asset / Liability Management 11-19 Fees & Expenses 20-26 Business Segment Highlights 27-31 Loans & Deposits 32-39 Capital, Debt & Liquidity 40-41 Technology & Continuous Improvement 42-46 Credit 47-60 Near-Term Expectations 61 Environmental,
Slide 3: Our Banking Franchise
3 Line of business coverage Alabama – 186 Georgia – 117 Iowa – 5 Mississippi – 99 South Carolina – 18 Arkansas – 57 Illinois – 41 Kentucky – 9 Missouri – 49 Tennessee – 198 Florida – 272 Indiana – 40 Louisiana – 82 North Carolina – 7 Texas – 90 Ranked 19th in the U.S. in total deposits(1) Branch loc
Slide 4: Continuous Improvement and Improved Credit Risk Profile
4 CCAR Loan Loss Rate Profile Evolution Improved Credit Risk Profile Continuous Improvement Proactive Interest Rate Hedging Exited Non-Core Business Strategic M&A Top Quartile Profitability $24 $9 2008 2023 Investor CRE ($ in billions) 8.1% 6.9% 2012 2022 Customer Journeys Organization Simplificatio
Slide 5: Top Market Share
5 Top Market Share Plays valuable role in the competitive landscape (1) Based on MSA and non-MSA counties using FDIC deposit data as of 6/30/2023; pro-forma for announced M&A transactions as of 1/26/2024. (2) Significant money center bank presence (JPM, BAC, C, WFC) defined as combined market share
Slide 6: Strong In-Market Migration
6 Strong In-Market Migration Converted legacy core markets into growth markets Serving Fast-Growing MSAs Deposits Market Rank(1) Nashville, Tennessee $10.0 3 Tampa, Florida $6.5 5 Atlanta, Georgia $5.8 7 Orlando, Florida $2.7 6 Knoxville, Tennessee $2.7 3 Huntsville, Alabama $2.7 1 Dallas/Ft Worth,
Slide 7: Regions Receives Top Honors
7 Regions Receives Top Honors Regions Bank was recognized as a 2024 Silver Status Military Friendly and Military Spouse Friendly Employer Regions Bank earned the Great Place to Work-Certified™ Company designation based on associates' perceptions of their workplace experience Nine Years Strong: Regio
Slide 8: 2023 Overview
8 2023 Overview Continue to deliver consistent, sustainable long-term performance (1) Non-GAAP, see appendix for reconciliation. Key Performance Metrics 4Q23 FY23 Reported Adjusted(1) Reported Adjusted(1) Net Income Available to Common Shareholders $367M $2.0B Diluted Earnings Per Share $0.39 $2.11
Slide 9: Regions' Consistent Outperformance
9 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% 1.98% 2.30% 2.47% 2.31% 1.95% 1.78% 1.89% 1.96% 1.73% RF Peer Median 2019 2020 2021 2022 2023 (1) Non-GAAP; see Appendix for
Slide 10: ROATCE: Industry Leading Performance
10 ROATCE: Industry Leading Performance 9.0% 9.7% 11.0% 17.6% 14.9% 9.2% 21.4% 24.1% 21.9% 12.0% 11.0% 12.0% 17.0% 14.7% 8.5% 16.5% 19.3% 16.4% RF Peer Median 2015 2016 2017 2018 2019 2020 2021 2022 2023 ROATCE Performance Trend vs. Peers(1) (1) Non-GAAP; see Appendix for reconciliation. Peers inclu
Slide 11: Consistent NIM Outperformance
11 4.52% 4.69% 4.15% 4.11% 4.07% 4.15% 4.53% 5.05% 5.68% 5.94% 5.91% 5.92%4.59% 4.79% 3.88% 3.61% 3.41% 3.64% 4.29% 5.10% 5.54% 5.81% 6.07% 6.20% RF Peer Median 2018 2019 2020 2021 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 Consistent NIM Outperformance Aided by hedged loan yield & deposit advantage (1
Slide 12: Net Interest Income Drivers
12 (1) Deposit impacts include the increase in deposit interest expense, offset by lower wholesale borrowings costs due to deposit funding growth. (2) Market rate impacts include contractual loan, cash and borrowings repricing; fixed asset turnover at higher market rates; securities premium amortiza
Slide 13: 2024 NII Range and Assumptions
13 • Through hedging, managed NII sensitivity to be mostly neutral to changes in interest rates late in the cycle ◦ Sensitivity to short-term rates: given mostly neutral position, more or less fed funds cuts will not be a material driver of NII variability within the range; assume mid-30%s falling r
Slide 14: Balance Sheet Profile and Rate Sensitivity
14 • 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 sensi
Slide 15: Balance Sheet Positioning Advantage
15 Balance Sheet Positioning Advantage Strong deposit franchise and funding position provide an opportunity for flexibility and margin outperformance in an evolving rate environment (1) RF's calc utilizes cash at the Fed and excludes unrealized gain/loss on AFS securities from earning assets. **All
Slide 16: Deposit Betas
16 • Regions' deposit composition has led to repricing (betas) among the lowest in the peer group through multiple rising rate cycles • Consistent rate seeking behavior across the last two cycles; full cycle beta driven by magnitude of Fed tightening and duration of tightening cycle • Regions antici
Slide 17: Interest-bearing Deposit Mix
17 % of 2 02 3 En di ng In te re st B ea ri ng D ep os it s Interest-bearing Deposits: $85B (labels represent % of IB Deposits) • Accounts with an intermediate rate • Beta in falling rates: 20-30% • Mostly Consumer/Wealth low rate stable accounts with small account size & customer longevity ◦ $13K a
Slide 18: Cash Flow Hedge Notional
18 Notional Fixed Rate Maturity AFS Securities(3) $1.3B 4.8% 1.4 years Debt(3) $1.4B 0.6% 2.8 years Time Deposits(3) $.3B 4.9% 1 year 1 2 3 4 5 Cash Flow Hedge Notional(1) (1) Floating rate leg of swaps vs overnight SOFR. No BSBY exposure in hedge accounting strategies. (2) Collars use short interes
Slide 19: Securities Portfolio
19 • Portfolio constructed to protect against changes in market rates ◦ Duration is fully extended at ~4.5 years as of 12/31/2023; provides offset to long-duration deposit book ◦ ~39% of securities in the portfolio are bullet-like (CMBS, corporate bonds, agency bullets, and USTs) ◦ MBS mix concentra
Slide 20: Non-Interest Income
20 Adj. Non-Interest Income $550 $567 $581 4Q22 3Q23 4Q23 Change vs ($ in millions) 4Q23 3Q23 4Q22 Service charges $143 0.7% (5.9)% Card and ATM fees 127 0.8% (2.3)% Capital markets (Ex CVA/DVA) 53 (20.9)% (26.4)% Capital markets - CVA/DVA (5) (66.7)% 54.5% Wealth management income 117 4.5% 8.3% Mor
Slide 21: Diversified Non-Interest Income
21 Consumer 46% Wealth Management 21% Corporate 33% 4Q23 fee revenue by segment(1) Diversified Non-Interest Income ($ 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 resid
Slide 22: Capital Markets
22 Capital Markets Growing products & services that our clients value Our associates delivered results • Interest rates and a selective credit approach impacted transaction revenue generation for most products in 2023; including a CVA/DVA impact of ($50M) for the year • Capital Markets Income (ex. C
Slide 23: Treasury Management
23 Treasury Management Enabling our clients to optimize cash flow and manage risk with a comprehensive & competitive suite of Treasury Management solutions Delivered another record year in 2023 +8% Treasury Management Revenue(1) +6% Portfolio of Treasury Management Clients(2) +3% Digital, Payment &
Slide 24: Deposit Account Policy Changes
24 Regions has made significant changes and upgrades while continuing to provide clients with resources needed to succeed in managing their finances. Implemented(3) and Pending Changes: 1Q22-Eliminate overdraft protection transfer fees 2Q22-Reduce daily cap for overdraft occurrences to 3 2Q22-Elimin
Slide 25: Mortgage
25 Mortgage Remains a key component of fee revenue (1) Mortgage Bankers Association – December 2023 (2) Includes residential owned portfolio and serviced for others (3) MBA Stratmor Mortgage Income ($ in millions) Strong Performance Industry-Leading Low-Cost Servicer Delivery Efficiency • Mortgage I
Slide 26: Non-Interest Expense and Efficiency Ratio
26 $1,017 $1,093 $1,185 50.5% 58.5% 65.0% Non-interest expense Efficiency ratio 4Q22 3Q23 4Q23 $1,012 $1,089 $1,038 $53 51.6% 58.2% 56.9% Adjusted non-interest expense Incremental operational losses Adjusted efficiency ratio 4Q22 3Q23 4Q23 • NIE increased ~8% on a reported basis including $119M FDIC
Slide 27: Business Segments
27 48% 45% 7% 63% 35% 2% 29% 63% 6% 2% $626M $98B $126B 4Q23 Pre-tax pre- provision income(1) 4Q23 Average deposits 4Q23 Average loans (1) Pie %'s exclude the pre-tax pre-provision income from the Other Segment totaling ($142) million. The Other Segment consists primarily of unallocated Treasury fun
Slide 28: Investments in Our Businesses
28 (1) Total Wealth Management Relationships as of Nov '23 vs Dec '22 Investments in Our Businesses Investments in talent, technology and strategic acquisitions continue to pay off CORPORATE CONSUMER WEALTH Mobile app improvements: budget planning tools & external transfer functionality; 4Q23 Mobile
Slide 29: Consumer Banking Group
29 Consumer Banking Group Driving growth and customer engagement through strategic investments Continuing to Deliver Strong Results Prudent Consumer Expense Management, 7% lower than 3Q23 Industry leading deposit costs driven by a continued focus on preserving advantageous deposit mix Mobile capabil
Slide 30: Corporate Banking Group
30 Corporate Banking Group Driving continued long-term performance for our clients & our shareholders SOUNDNESS GROWTHPROFITABILITY $0 Net charge-offs in Commercial Real Estate, a portfolio that represents 15.9% of total loan exposure: • Office 1.5% of total loan exposure • Multifamily 4.1% total lo
Slide 31: Wealth Management Group
31 Wealth Management Group Focus on execution & investments to optimize the client and associate experience Conducted our annual Voice of the Client survey. Key insights were that PWM clients are very satisfied with their overall experience, especially their relationship team; 86% of clients rated t
Slide 32: Loans
32 • Avg and ending loans decreased modestly QoQ; Ending loans grew ~1.4% vs PY • Avg business loans declined ~1% QoQ; Reserving capital for full relationship business • Avg consumer loans remained relatively flat as growth in mortgage and EnerBank partially offset by declines in home equity and the
Slide 33: 4Q23 Average Loan Composition
33 $50.9 $4.9 $0.3 $6.5 $2.2 Commercial and Industrial CRE Mortgage - OO CRE Construction - OO IRE - Mortgage IRE - Construction 4Q23 Average Loan Composition $20.1$5.7 $6.2 $0.1 $1.3 Mortgage Home Equity Other Consumer Other Consumer - Exit Portfolios Consumer Credit Card Average Consumer Loans $33
Slide 34: Commercial & IRE Loans
34 Commercial & IRE Loans As of 12/31/23 ($ in millions) Total Commitments Outstanding Balances % Utilization Administrative, Support, Waste & Repair $2,377 $1,461 61% Agriculture 447 239 53% Educational Services 4,329 3,502 81% Energy 4,833 1,484 31% Financial Services - Banking & Trust 10,084 4,55
Slide 35: Deposits
35 $131.7 $126.2 $127.8 83.5 81.0 80.0 37.1 34.7 36.9 9.1 7.8 7.7 2.0 2.7 3.2 4Q22 3Q23 4Q23 $133.0 $125.2 $126.4 83.6 80.0 79.4 38.2 34.9 36.3 9.0 7.5 7.7 2.2 2.8 3.0 4Q22 3Q23 4Q23 Deposits Normalization occurring as expected (1) Other deposits represent non-customer balances primarily consisting
Slide 36: Median Consumer Deposit Balances
36 Median Consumer Deposit Balances Retail Deposits De c- 20 19 M ar -2 02 0 Ju n- 20 20 Se p- 20 20 De c- 20 20 M ar -2 02 1 Ju n- 20 21 Se p- 20 21 De c- 20 21 M ar -2 02 2 Ju n- 20 22 Se p- 20 22 De c- 20 22 M ar -2 02 3 Ju n- 20 23 Se p- 20 23 De c- 20 23 (1) Excludes customers with zero-balance
Slide 37: Checking Balances & Spending Levels
37 Checking Balances & Spending Levels % Ch an ge v s. 2 01 9 Change in Checking Deposits Change in Debit Activity 2019 Average 1Q22 4Q23 —% 20% 40% 60% Balances and Avg Monthly Consumer & Wealth Debits vs. 2019 • Pre-pandemic, customers maintained a relatively steady ratio of checking balances to d
Slide 38: Diversified Deposit Base
38 Diversified Deposit Base (1) $ in billions as of 12/31/2023. (2) Data and categorization reflects FR 2052a (Complex Institution Liquidity Monitoring Report) methodology. (3) High quality checking account estimates are based on multiple individual account behaviors and activities (e.g., balances a
Slide 39: Deposit Advantage
39 Deposit Advantage Well diversified deposit base vs. Peers (1) As of 9/30/2023. 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 40: Capital and Liquidity Position
40 Position ($B) as of 4Q22 4Q23 Cash at the Federal Reserve(2) $ 9.1 $ 4.3 Unencumbered Investment Securities(3) 19.3 18.9 Federal Home Loan Bank Availability 14.5 15.1 Discount Window Availability 13.2 21.3 Total $ 56.1 $ 59.6 • Basel III Endgame - Estimate a low to mid-single digit increase in RW
Slide 41: Tangible Common Equity
41 6.31% 6.09% 5.82% 6.79% 8.02% 8.14% 8.36% 8.50% TCE Ratio Adjusted TCE Ratio, ex-AOCI 1Q23 2Q23 3Q23 4Q23 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 expansion in net interes
Slide 42: Investing for Growth
42 Investing for Growth Maintaining Focus on Capital Optimization and Expanded Client Capabilities Acquisition of HUD (MAP) License 2014 2015 2016 2019 2020 2018 2021 Acquisition of Fannie Mae DUS License Third-party originated auto portfolio ~$2.0B moved to runoff Entered into MSR flow-deal arrange
Slide 43: Empowered by Data & Innovation
43 Empowered by Data & Innovation Regions remains competitive by reserving ~9–11% of revenue for technology spend Next Gen Platforms Omnichannel Customer Experience and next gen Core Banking and Data Platforms Fraud Analytics Machine learning models to detect and prevent fraud to proactively protect
Slide 44: Differentiating Through Customer Experience
44 Differentiating Through Customer Experience Authentication Improvements Completed launch of new Corporate Banking Authentication platform. Launched and integrated new Enterprise Authentication Portal into Online Banking and Consumer Digital Origination process using cloud native technologies. Cor
Slide 45: Growth in Digital
45 2.27 2.40 2.56 4Q21 4Q22 4Q23 2.66 3.44 4.28 4Q21 4Q22 4Q23 158 161 181 4Q21 4Q22 4Q23 21.5% 22.3% 23.9% 33.0% 33.0% 31.4% 45.5% 44.7% 44.7% 4Q21 4Q22 4Q23 9.6 12.8 10.7 7.7 9.8 4.7 1.9 3.0 6.0 Loans Credit Cards 4Q21 4Q22 4Q23 69% 71% 74% 31% 29% 26% 4Q21 4Q22 4Q23 Growth in Digital Mobile Banki
Slide 46: Continuous Improvement Framework
46 Continuous Improvement Framework • Making Banking Easier – Be intensely responsive to customer needs • Revenue Growth – Improve effectiveness in generating prudent, profitable, sustainable growth • Efficiency Improvements – Continuously leverage people and technology to improve processes, reduce
Slide 47: Historical Credit Profile
47 0.82% —% 0.50% 1.00% 1.50% 2.00% 2.50% 0.54% —% 0.50% 1.00% 1.50% 2.00% Historical Credit Profile Non-Performing Loans Total Net Charge-Offs 1Q20 4Q23 4Q22 1Q20 4Q22 4Q 23 • Non-Accrual and loss rate levels are seeing normalization as expected and will continue normalizing throughout 2024. (1) 4Q
Slide 48: Historical Credit Profile: Consumer and Commercial NCOs
48 1.18% —% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 0.20% —% 0.50% 1.00% Historical Credit Profile Consumer Net Charge-Offs(2,3) Commercial Net Charge-Offs(1) 1Q20 4Q23 4Q22 1Q20 4Q22 4Q 23 • Loss rate levels are seeing normalization as expected and will continue normalizing throughout 2024. (1) I
Slide 49: Asset Quality
49 • 4Q annualized NCOs totaled 54 bps, increasing 14 bps QoQ; Ex. impact of the unsecured consumer portfolio loan sale, adjusted NCOs were 39 bps(1) • 4Q NPLs and business services criticized loans increased; 4Q NPL increase attributable primarily to downgrades within office, transportation, consum
Slide 50: Commercial Real Estate
50 Commercial Real Estate (Outstanding balances as of December 31, 2023) Highly Diversified Total IRE Portfolio (including Unsecured CRE) • Unsecured loans for RE purposes generally have low leverage, with strong access to liquidity ◦ 64% of REITs are investment grade or mapped to IG risk rating (pr
Slide 51: CRE - Office Portfolio
51 CRE- Office Portfolio (Outstanding balances as of December 31, 2023) (1) $ in Millions. Amounts exclude Held For Sale loans. Metrics represent 12/31/2023 results except for charge-offs, which are for FY 2023. (2) GreenStreet Commercial Property Price Index as of January 5, 2024 - change in commer
Slide 52: CRE - Multi-Family Portfolio
52 CRE- Multi-Family Portfolio (Outstanding balances as of December 31, 2023) (1) $ in Millions. Amounts exclude Held For Sale loans. Metrics represent 12/31/2023 results except for charge-offs, which are for FY 2023. (2) GreenStreet Commercial Property Price Index as of January 5, 2024 - change in
Slide 53: CRE - Senior Housing Portfolio
53 CRE- Senior Housing Portfolio (Outstanding balances as of December 31, 2023) (1) $ in Millions. Metrics exclude ~$200M in non-real estate commercial loans in the Sr. Housing sector; Amounts also exclude Held For Sale loans. Metrics represent 12/31/2023 results except for charge-offs, which are fo
Slide 54: Allowance for Credit Losses
54 $1,677 $47 $12 $(9) $(27) $1,700 Allowance for Credit Losses 12/31/2023 • 4Q allowance increased $23M compared to the prior quarter, resulting in a $155M provision expense • Primary driver of the net increase in ACL was adverse risk migration and continued credit quality normalization QoQ Highlig
Slide 55: Base Economic Outlook
55 Pre-R&S period 4Q2023 1Q2024 2Q2024 3Q2024 4Q2024 1Q2025 2Q2025 3Q2025 4Q2025 Real GDP, annualized % change 1.2 % 1.3 % 1.4 % 1.8 % 2.1 % 2.4 % 2.5 % 2.5 % 2.3 % Unemployment rate 3.8 % 3.8 % 3.9 % 4.0 % 4.1 % 4.1 % 4.1 % 4.0 % 3.9 % HPI, year-over-year % change 4.6 % 4.1 % 3.1 % 1.5 % 1.5 % 1.9
Slide 56: Allowance Allocation
56 As of 12/31/2023 As of 12/31/2022 (in millions) Loan Balance ACL ACL/Loans Loan Balance ACL ACL/Loans C&I $50,865 $697 1.37 % $50,905 $628 1.23 % CRE-OO mortgage 4,887 110 2.25 % 5,103 102 2.00 % CRE-OO construction 281 7 2.38 % 298 7 2.29 % Total commercial $56,033 $814 1.45 % $56,306 $737 1.31
Slide 57: Well Positioned for Next Downturn
57 All Other Commercial 3.7% Investor Real Estate 13.7% Financial Services 11.7% CRE Unsecured, including REITs 10.4% Govt. Education 10.3% Consumer Services 8.8% Technology Services 7.9% Manufacturing 7.4% Energy 2.3% Agriculture 0.4% Utilities 4.7% Business Services 7.6% Distribution 6.2% Healthca
Slide 58: Consumer Lending Portfolio
58 Consumer Lending Portfolio • Avg. origination FICO 762 • Current LTV 53% • 98% owner occupied • Avg. origination FICO 770 • Current LTV 35% • 65% of portfolio is 1st lien • Avg. loan size $34,700 • $136M to convert to amortizing or balloon during 2024 • Avg. origination FICO 781 • Avg. new loan $
Slide 59: Leveraged Portfolio
59 $3.0B Leveraged Portfolio (Outstanding balances as of December 31, 2023) • Consistent with Moody's historical Regional Bank Survey definition; Commitments >$5M with funded debt to EBITA>4.0x ◦ Commitments are $4.0B • Not a strategic growth objective; used to support client relationships • Sponsor
Slide 60: SNC Portfolio
60 $25.9B SNC Portfolio (Outstanding balances as of December 31, 2023) • Improved portfolio composition and asset quality through focus on lower risk segments • 48% of balances consist of investment grade or select portfolios(1); IG mix increased 6% since 2020 • 11% of balances are leveraged(2) • Re
Slide 61: 2024 Expectations
61 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 62: Environmental, Social & Governance: Managing Risks & Opportunities
62 Environmental, Social & Governance Managing ESG risks & opportunities BOARD OF DIRECTORS ESG-related elements of the Strategic Plan, annual budget, and capital planning process BOARD-LEVEL COMMITTEES NCG Committee Risk Committee CHR Committee Audit Committee Technology Committee ESG strategies, i
Slide 63: Environmental, Social & Governance
63 Environmental, Social & Governance Customized approach to making life better for the people and places we serve We provide a suite of ESG disclosures on our ESG Resource Center, which is accessible at ir.regions.com/governance: • ESG Report • TCFD Report • SASB Index • GRI Index Sound practices t
Slide 64: Ascentium & EnerBank
64 Ascentium & EnerBank Ascentium Capital(1) EnerBank(2) Origination Growth • Ascentium Capital loans of $2.6B increased 1% vs. 3Q23 • An increasing interest rate environment, inflation, and a slowing economy are providing headwinds to origination growth and portfolio credit performance Cross Market
Slide 65: Appendix
> GENERATING Consistent Sustainable \clensterm Performance APPENDIX AW REGIONS] 65
Slide 66: Fourth Quarter 2023 Highlights
66 Selected items impact Fourth Quarter 2023 Highlights (1) Non-GAAP, see appendix for reconciliation. (2) Based on income taxes at an approximate 25% incremental rate. (3) Items impacting results or trends during the period, but are not considered non-GAAP adjustments. (4) Loans sold in 4Q had an a
Slide 67: Non-GAAP Measures Explanation
67 Management uses computations of earnings and certain other financial measures, which exclude certain adjustments that are included in the financial results presented in accordance with GAAP, to monitor performance and believes these measures provide meaningful information to investors. Non-intere
Slide 68: Non-GAAP Reconciliation: Non-Interest Expense
68 Non-GAAP Reconciliation Non-Interest Expense Twelve Months Ended December 31 ($ 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 special assessment (119) — — — — — — — Contrib
Slide 69: Non-GAAP Reconciliation: Adjusted Net Charge-Offs and Ratio
69 Non-GAAP Reconciliation Adjusted Net Charge-Offs and Ratio For the Quarter Ended For the Year Ended ($ amounts in millions) 12/31/2023 9/30/2022 2023 2022 Net loan charge-offs (GAAP) $ 132 $ 110 $ 397 $ 263 Less: charge-offs associated with the sale of unsecured consumer loans 35 63 35 63 Adjuste
Slide 70: Non-GAAP Reconciliation: Pre-tax Pre-provision Income
70 Non-GAAP reconciliation Pre-tax pre-provision income (PPI) ($ amounts in millions) 2023 2022 2021 2020 2019 Net income available to common shareholders (GAAP) $ 1,976 $ 2,146 $ 2,400 $ 991 $ 1,503 Preferred dividends (GAAP) 98 99 121 103 79 Income tax expense (GAAP) 533 631 694 220 403 Income (lo
Slide 71: Non-GAAP Reconciliation: Quarterly NII, Non-Interest Income/Expense
71 Non-GAAP Reconciliation NII, non-interest income/expense, and efficiency ratio NM - Not Meaningful Quarter Ended ($ amounts in millions) 12/31/2023 9/30/2023 6/30/2023 3/31/2023 12/31/2022 4Q23 vs. 3Q23 4Q23 vs. 4Q22 Non-interest expense (GAAP) A $ 1,185 $ 1,093 $ 1,111 $ 1,027 $ 1,017 $ 92 8.4 %
Slide 72: Non-GAAP Reconciliation: Twelve Months NII and Efficiency Ratio
72 Non-GAAP Reconciliation NII, non-interest income/expense, and efficiency ratio Twelve Months Ended December 31 ($ amounts in millions) 2023 Non-interest expense (GAAP) A $ 4,416 Adjustments: FDIC assessment (119) Branch consolidation, property and equipment charges (7) Salaries and employee benef
Slide 73: Return on Average Tangible Common Equity
73 Year Ended ($ amounts in millions) 2023 2022 2021 RETURN ON AVERAGE TANGIBLE COMMON SHAREHOLDERS' EQUITY Net income available to common shareholders (GAAP) A $ 1,976 $ 2,146 $ 2,400 Average shareholders' equity (GAAP) $ 16,522 $ 16,503 $ 18,201 Less: Average intangible assets (GAAP) 5,960 6,023 5
Slide 74: Non-GAAP Reconciliation: Return on Average Tangible Common Equity
74 Non-GAAP reconciliation Return on average tangible common shareholders' equity Year Ended ($ amounts in millions) 2023 2022 2021 2020 2019 2018 2017 2016 2015 RETURN ON AVERAGE TANGIBLE COMMON SHAREHOLDERS' EQUITY Net income available to common shareholders A $ 1,976 $ 2,146 $ 2,400 $ 991 $ 1,503
Slide 75: Non-GAAP Reconciliation: Adjusted CET1
75 Quarter Ended ($ amounts in millions) 12/31/2023 9/30/2023 ADJUSTED CET1 RATIO Common equity(1) A $ 12,976 $ 13,056 Adjustments: AOCI gain (loss) on securities(2) (2,064) (3,084) AOCI gain (loss) on defined benefit pension plans and other post employment benefits (451) (403) Adjusted common equit
Slide 76: Non-GAAP Reconciliation: Non-Interest Income
76 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 77: Non-GAAP Reconciliation: Tangible Common Ratios
77 Non-GAAP reconciliation Tangible Common Ratios As of and for Quarter Ended ($ amounts in millions, except per share data) 12/31/2023 9/30/2023 6/30/2023 3/31/2023 TANGIBLE COMMON RATIOS Shareholders’ equity (GAAP) A $ 17,429 $ 16,100 $ 16,639 $ 16,883 Less: Preferred stock (GAAP) 1,659 1,659 1,65
Slide 78: Forward-Looking Statements
78 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 79: • Our inability to keep pace with technological changes, including those related to the
79 • Our inability to keep pace with technological changes, including those related to the offering of digital banking and financial services, could result in losing business to competitors. • Changes in laws and regulations affecting our businesses, including legislation and regulations relating to
Slide 80: • The effects of man-made and natural disasters, including fires, floods, droughts, tornadoes, hurricanes,
80 • The effects of man-made and natural disasters, including fires, floods, droughts, tornadoes, hurricanes, and environmental damage (specifically in the Southeastern United States), which may negatively affect our operations and/or our loan portfolios and increase our cost of conducting business.
Slide 81: GENERATING
> GENERATING Consistent Sustainable Kctonarterm Performance A REGIONS Ax REGIONS| 81
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