Regions Financial Corporation · NYSE:RF
Regions Financial — Investor Presentation (November 2021)
80 slides from Regions Financial's investor presentation, November 2021
Slide 1: Investor Information
Exhibit 99.1 Investor Information November - December 2021
Slide 2: Table of contents
Table of contents Topic Page # Profile and Strategy 3-9 Income Statement 10-22 Business Segment Highlights 23-28 Balance Sheet 29-32 Capital, Debt & Liquidity 33-39 Technology & Continuous Improvement 40-44 Credit 45-57 Near-Term Expectations 58 Environmental, Social & Governance 59-62 LIBOR Transit
Slide 3: Our banking franchise
Our banking franchise Ranked 17th in the U.S. in total deposits(1) Line of business coverage First Sterling Ascentium Business Capital Capital Markets Commercial Banking Corporate Banking Equipment Finance Government/Institutional Institutional Services Birmingham, Alabama Private Wealth Real Estate
Slide 4: Top market share plays a valuable role in the competitive landscape
Top market share plays a valuable role in the competitive landscape • Ranked 17th in the U.S. in total Markets with top 5 market share(1) deposits(1) • 86% of deposits in 7 states: Alabama, Tennessee, Florida, Louisiana, Mississippi, Georgia, Arkansas • Top 5 or better market share in ~70% of MSAs a
Slide 5: Presence in strong growth markets
Presence in strong growth markets 16 of top 25 markets with net migration 60% of top(3) MSAs are projected to grow faster than inflows are within our footprint(1) the U.S. national average Population growth vs. peers(2) (2021-2026) Top Faster Market '21-'26 Population Growing MSAs Deposits Rank(3) G
Slide 6: Strong recovery within footprint
Strong recovery within footprint Projected Employment Recovery Expectations by Region(1) Q32022 Q42022 2023 • Majority of RF footprint will likely return to pre-pandemic employment levels during 2H22 with the South experiencing the strongest consumer spending recovery compared to other regions.(1) 6
Slide 7: Regions receives top honors
Regions receives top honors Regions Bank Ranked Highest in Customer Seven Years Strong: Regions Regions Bank named Best Regions Bank Awarded Satisfaction in J.D. Power Places Bank Again Named Gallup to work for LGBTQ Bronze Military Friendly 2021 U.S. Online Banking Equality Exceptional Workplace Aw
Slide 8: Third quarter 2021 overview
Third quarter 2021 overview Net Income Available to $624M Common Shareholders Diluted Earnings Per $0.65 Share Adjusted Total • Adjusted pre-tax pre-provision $1,611M Revenue(1) income(1) increased 4% QoQ • Adjusted efficiency ratio(1) improved Adjusted Non- 30 bps QoQ to 56.6% $918M Interest Expens
Slide 9: Strong foundation-positioned for growth
Strong foundation-positioned for growth Committed to continuous expansion of platforms and capabilities Innovating through digital investments and enhancing our customer experiences to generate shareholder return Digital investments Growing highly efficient Strong & recovering generate return busine
Slide 10: Stable NII & margin
Stable NII & margin NII and NIM(1) ($ in millions) $1,000 $975 $976 3.41% 3.31% 3.30% 3.13% 2.81% 2.76% 3Q20 2Q21 3Q21 NII(1) NIM NIM excl. PPP/Cash(2) • In 3Q, deposit and cash balances remained elevated. • PPP and cash account for -54 bps NIM and +$34M NII within the quarter (-4 bps / -$12M QoQ) ◦
Slide 11: NII & margin - core drivers
NII & margin - core drivers Core(1) NII Attribution Drivers of Core(1) NII and NIM Offset ongoing impacts of $942 • Rate environment impacts offset through active balance reinvestment through balance sheet management sheet management strategies $929 ◦ Hedging benefit of $108M NII in 3Q(3) ◦ Lower de
Slide 12: Future NII drivers
Future NII drivers NII is positioned to benefit from higher rates, as well as natural loan growth and strategic opportunities. Hedge proceeds (~$1.6B total return) and the capital generated has been invested into strategically important businesses, such as Ascentium and EnerBank. NII Drivers - Curre
Slide 13: Balance sheet profile
Balance sheet profile (as of September 30, 2021) • Naturally asset sensitive balance sheet, supported by a large, Portfolio compositions Borrowin… stable deposit base and low reliance on wholesale borrowings Assets(1) Liabilities 2% Other Other 2% • NII sensitivity to short-term rates has been large
Slide 14: Balance sheet management
Balance sheet management Cash management update • Recent liquidity inflows represent an NII opportunity, ~$35B Ending Deposit Growth (Dec 2019 to Sep 2021) with cash deployment dependent on: • Deposit growth broadly distributed across ◦ stability and rate-sensitivity of deposit inflows products, bus
Slide 15: Earnings stability and hedging
Earnings stability and hedging NIM Performance vs Peers Cash-flow Hedge Contribution to NII - 2Q21(3)(4) 3.51% 11.3% 3.46% 3.47% 3.44% 3.44% 3.41% 10.8% 3.5 3.40% 3.36% 3.30% 3.25% 8.3% WAL remaining on 3.13% 7.1% CF Hedges(5) 3.34% 3.34% 3.35% 3.24% 3.27% 6.0% 3.16% 5.2% 4.7% 3 3.11% 3.02% 3.1 2.8
Slide 16: Hedging strategy update
Hedging strategy update Avg. Hedge Notional Maturity Profile Long-term NII Sensitivity Profile to Rates Active Hedge Notional 1mo. LIBOR Cumulative NII growth (2021-2024) - scenarios assume no loan growth in any Current Unwind scenario and no 3Q21 Adjustments Hedges Hedges(6) benefit from surge depo
Slide 17: Interest rate exposure of future business and long-term rates
Interest rate exposure of future business and long-term rates ~$17B Annual Fixed Asset Production(1) • In addition to growing NII exposure to short-term rates over time, NII benefits from a steepening yield curve through future fixed- 10% rate asset production and cash-flow reinvestment; full-year 2
Slide 18: Non-interest income
Non-interest income QoQ highlights & outlook Change vs • Changes in customer behavior and additional customer benefits likely keep service charges ($ in millions) 3Q21 2Q21 3Q20 10-15% below 2019 levels. Service charges on deposit accounts $162 (0.6)% 6.6% • Capital markets increase driven by record
Slide 19: Diversified non-interest income
Diversified non-interest income 3Q21 fee revenue by segment(1) Consumer ($ 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 residential mortgages. Wealth Management • Wealt
Slide 20: Leverage operating advantage to grow mortgage share and relationships
Leverage operating advantage to grow mortgage share and relationships Market Prime Delivery Mortgage Investing Strength Portfolio Efficiency Servicing For Growth Closed mortgages 753 Avg. FICO 20% lower Servicing expense Investments in expected to have origination and lower than peer people, process
Slide 21: Non-interest expense
Non-interest expense Adjusted non-interest expense(1) QoQ highlights & outlook ($ in millions) • Adjusted non-interest expenses increased 3% driven $889 $895 $918 primarily by higher salary and benefits and professional and legal fees, offset by a decline in marketing expenses. 55.3% 56.9% 56.6% ◦ S
Slide 22: Industry leading PPI profile
Industry leading PPI(1) profile Adjusted PPI(1) to RWA(2) 2.54% 2.49% 2.38% 2.14% 2.13% 2.12% 2.06% 2.06% 1.98% 1.98% 1.87% 1.78% 1.76% 1.69% RF Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 Peer 10 Peer 11 Peer 12 Peer 13 • Regions' 3Q adjusted pre-tax pre-provision income (PPI)(1)
Slide 23: Business segments
Business segments 3Q21 Pre-tax pre- 3Q21 Average 3Q21 Average provision income(1) loans deposits 5% 2% 8% 32% 35% 39% $676M $83B $132B 56% 63% 60% Consumer Corporate Wealth Management (1) Pie %'s exclude the pre-tax pre-provision income from the Other Segment totaling $3 million. 23
Slide 24: Consumer Banking Group
Consumer Banking Group Strategic investments and prudent cost management drive growth, customer satisfaction, and effectiveness Creating Efficiencies and Growth through an Strategic & Disciplined Investments Optimized Branch Network • Maximizing customer value and meeting consumer demand through an
Slide 25: Making banking easier
Making banking easier Providing transparency, simplicity and speed into how accounts work Improved Visibility and Enhanced Product New Product - Transparency Features Regions Now Checking Expanded Alert Capabilities Simplified Transaction Posting Order New Checking Account Product – ◦ Balance alerts
Slide 26: Corporate Banking Group
Corporate Banking Group 2021: Delivering proactive solutions to our clients Non-Interest Income PPP Loan Balances ($ in millions) ($ in billions) $3.6 Our associates $564 delivered results $445 $1.5 Sep20 YTD Sep21 YTD 12/31/20 09/30/21 Capital Markets Income Other PPP1 Service Charges on Deposit Ac
Slide 27: Wealth Management
Wealth Management Focus on execution while capitalizing on our investments in industry-leading technology to optimize the client and associate experience. • Maintained strong momentum in growth markets and protected business through Customer Experience continued engagement and communication with cli
Slide 28: Continuing our momentum
Continuing our momentum Corporate Banking Group: • Deepen industry and solution expertise verticals to grow relationships and drive differentiation ◦ Pending acquisition of Sabal Capital Partners announced October 4, 2021; market leader in origination of small-balance agency loans • Establish an out
Slide 29: Loan growth momentum
Loan growth momentum Adjusted loans and leases(1) QoQ highlights & outlook • Adjusted average and ending loans increased ~1% (Average, $ in billions) QoQ; positioning us well for continued momentum for loan growth in 4Q and beyond. $82.3 $79.2 $79.8 • Commercial pipelines have surpassed pre-pandemic
Slide 30: 3Q21 Average loan composition
3Q21 Average loan composition Average consumer loans Average business loans ($ in billions) ($ in billions) $17.2 $5.4 $0.3 $28.5B $54.9B $41.9 $5.6 $1.0 $1.1 $0.6 $1.7 $2.1 $6.5 Mortgage Indirect-Vehicles Commercial and Industrial CRE Mortgage - OO Indirect-Other Home Equity CRE Construction - OO I
Slide 31: PPP loan details
PPP loan details ($ in millions) 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 Round 1-average $ 3,213 $ 4,558 $ 4,143 $ 3,171 $ 2,401 $ 814 Round 2-average — — — 627 1,500 1,324 Total-average $ 3,213 $ 4,558 $ 4,143 $ 3,798 $ 3,901 $ 2,138 NII(1) $ 18 $ 31 $ 54 $ 40 $ 43 $ 31 Round 1-ending $ 4,498 $ 4,594 $ 3,624
Slide 32: Deposit growth continues
Deposit growth continues Average deposits by segment QoQ highlights & outlook ($ in billions) $131.1 $131.9 • Pace of deposit growth has slowed, balances 0.4 0.4 $116.7 9.5 9.9 continued to increase to new record levels. 0.4 8.7 • Average deposits QoQ growth primarily due to 43.0 42.5 higher account
Slide 33: Capital and liquidity
Capital and liquidity Tier 1 capital ratio(1) Common equity Tier 1 ratio(1) 12.3% 10.8% 11.9% 10.4% 10.8% 9.3% 3Q20 2Q21 3Q21 3Q20 2Q21 3Q21 QoQ Highlights & Outlook • During 3Q, Regions declared $164M in common dividends. (2) Loan-to-deposit ratio • Stress Capital Buffer requirement for 4Q21 throug
Slide 34: CET1 waterfall
CET1 waterfall 0.6% 0.1% 10.8% 10.4% (0.1)% (0.2)% Pre-tax pre- 2Q21 Provision Tax & Common 3Q21 provision CET1% benefit(2) Other Dividend CET1%(3) income(1) 34 (1) Non-GAAP; see appendix for reconciliation. (2) Provision benefit includes the impact of CECL deferral. (3) Current quarter ratios are e
Slide 35: Projected preferred stock expense
Projected preferred stock expense ($ in millions) Regions Preferred Par Value 3Q21 4Q21E Series B $500.0 $8.0 $8.0 Series C $500.0 $7.1 $7.1 Series D $350.0 $5.0 $5.0 Series E $400.0 $6.5 $4.5 Total $26.6 $24.6 • The 3Q dividend for Series E includes a long first dividend period to include accrual s
Slide 36: Significant protection
Significant protection 2Q21 CET1 + Additional Loss Absorbency(1)(2) % of RWA 13.29% 13.25% 13.14% 0.52% 12.59% 12.55% 1.39% 1.21% 0.31% 12.26% 12.03% 0.27% 11.80% 11.74% 11.70% 11.62% 11.64% 1.75% 0.95% 0.47% 0.21% 0.08% 11.27% 1.56% 0.06% 0.16% 0.26% —% 11.16% 1.53% 1.56% 1.64% 1.84% 1.44% 1.40% 1.
Slide 37: Strategy yielding strong ROATCE improvement
Strategy yielding strong ROATCE improvement 2020 ROATCE(1)(2) vs. 2014 ROATCE(2) 26.3% 20.5% 2014: Peer Median 11.3% 2020: Peer Median 13.4% 17.6% 16.8% 16.4% 15.2% 14.5% 14.3% 13.3% 13.4% 12.1% 11.1% 12.5% 12.1% 14.7% 10.8% 13.7% 12.1% 12.0% 11.3% 10.8% 10.4% 9.7% 8.7% 5.0% 6.4% 6.9% 6.6% ) (3 7 3
Slide 38: Investing for growth while maintaining focus on capital optimization
Investing for growth while maintaining focus on capital optimization Investments Talent and Technology Consumer Bank Corporate Bank • Expansion in priority growth markets • Acquired EnerBank USA acquisition; top • Pending acquisition of Sabal Capital Partners • Corporate bankers, MLOs, Wealth Adviso
Slide 39: Regions unsecured debt and credit ratings profile
Regions unsecured debt and credit ratings profile Debt maturity profile(1) Select credit ratings ($ in millions) Moody's S&P Fitch Regions Financial Corporation $900 Senior Unsecured Debt Baa2 BBB+ BBB+ 150 $800 $650 Subordinated Debt Baa2 BBB BBB 500 750 650 Regions Bank $100 300 100 Senior Unsecur
Slide 40: Empowered by innovation & data
Empowered by innovation & data Expanding Influence of Data & Personalization Platform Modernization ® Efforts Deposit & Lending Modernization Modernization of the Bank's Core Systems to Omnichannel view of customers for a enable product and service innovation “You Know Me & Value Me” experience New
Slide 41: Differentiating through Customer Experience
Differentiating through Customer Experience Digital Acceleration Innovating Operations Expanded Regions Secure Messaging Servicing Home Loan Direct customers Mobile Enhancements Digital 4.8 iOS App Rating New Mobile features include Mobile Wallet One Time Passcode, Automated Non-Agent Users up Lands
Slide 42: Continue to invest for the future
Continue to invest for the future 10% System Maintenance New Technology 42% 48% Cybersecurity / Risk Management • Regions remains competitive by reserving ~10-11% of revenue for Technology Spend. • Past investment on innovation and strategy provided a firm, resilient foundation for addressing change
Slide 43: Growth in digital
Growth in digital (2)(3) Active Digital Banking Users Active Mobile Banking Users Mobile Banking Log-Ins Customer Transactions (Millions) (Millions) (Millions) 14% 23% 34% 2.3 40% 34% 31% 3.1 162 2.7 2.8 143 2.0 120 69% 66% 60% 1.8 3Q19 3Q20 3Q21 3Q19 3Q20 3Q21 3Q19 3Q20 3Q21 3Q19 3Q20 3Q21 Digital
Slide 44: Continuous improvement framework
Continuous improvement framework Simplify & Grow established a culture of Continuous Improvement. Now that Continuous Improvement is embedded in our DNA, initiatives are no longer centrally tracked, and groups manage the development and execution of their programs with regular updates to the Steerin
Slide 45: Asset quality improvement continues
Asset quality improvement continues Net charge-offs and ratio ACL to loans ratio ($ in millions) ($ in millions) $113 2.90% 75 2.74% 2.07% 0.50% 1.71% 1.83% $47 1.71% 1.80% 2.00% 23 $30 (2) 0.23% 5 Day 1 3Q20 2Q21 3Q21 38 24 25 0.14% (1) ACL/Loans (incl. PPP) ACL/Loans (excl. PPP) 3Q20 2Q21 3Q21 • 3
Slide 46: Allowance for credit losses waterfall
Allowance for credit losses waterfall ($ in millions) $1,684 QoQ highlights $(30) • 3Q ending allowance decreased $185M $1,499 $(91) due to continued improvement in the $(64) economic outlook and expectations of improving credit performance in certain sectors / clients. • The benefits of the improvi
Slide 47: Base R&S economic outlook
Base R&S economic outlook (as of September 2021) Pre-R&S period 3Q2021 4Q2021 1Q2022 2Q2022 3Q2022 4Q2022 1Q2023 2Q2023 3Q2023 Real GDP, annualized % change 3.8 % 5.6 % 5.2 % 4.1 % 3.2 % 2.6 % 2.3 % 2.2 % 2.3 % Unemployment rate 5.2 % 4.8 % 4.6 % 4.4 % 4.2 % 4.1 % 4.0 % 3.9 % 3.8 % HPI, year-over-ye
Slide 48: Allowance allocation
Allowance allocation As of 9/30/2021 As of 12/31/20 (in millions) Loan Balance ACL ACL/Loans Loan Balance ACL ACL/Loans C&I $41,748 647 1.55 % $42,870 $1,027 2.40 % CRE-OO mortgage 5,446 128 2.35 % 5,405 242 4.47 % CRE-OO construction 252 9 3.64 % 300 24 7.98 % Total commercial $47,446 $784 1.65 % $
Slide 49: COVID-19 high-risk industry sectors
Bottom up review informs and narrows COVID-19 high-risk industry sectors (as of September 30, 2021) % of Utilization C&I Portfolio BAL$(1) BAL$ Rate(2) % Criticized Energy – Oil & Gas Extraction, Oilfield Services, Coal $0.93b 1.1% 48% 22% Consumer Services & Travel – Amusement, Arts and Recreation,
Slide 50: Commercial & IRE loans
Commercial & IRE loans Pending Review As of 9/30/21 Total Outstanding ($ in millions) Commitments Balances % Utilization Administrative, Support, Waste & Repair $2,728 $1,501 55% •The outstanding balance for Agriculture 560 331 59% Real Estate within the Educational Services 3,877 2,954 76% Commerci
Slide 51: Energy lending
Energy lending As of 9/30/21 Total Outstanding ($ in millions) # of Clients (1) Commitments Balances % Utilization $ Criticized % Criticized Oilfield services and supply (OFS)(2) 146 $377 $231 61% $1 —% Exploration and production (E&P)(2) 87 1,305 698 53% 201 29% Midstream 23 1,587 475 30% 95 20% Do
Slide 52: Energy lending (continued)
Energy lending (continued) Balances by Category Gross Losses $1,500 $ (Millions) $1,200 $140 $135.9 $900 $600 $300 $120 $0 E& P ice s m m er ns $100 r v t r ea t r ea Ot h Lo a dS e ds wn s P l Mi o PP $ (Millions) i e D $80 $75.1 lf Oi $60 1Q2015 3Q2021 $40 $36.7 $33.0 Balance Trend $28.5 $20 $10.8
Slide 53: Restaurant lending
Restaurant lending As of 9/30/21 % of Total Outstanding Outstanding ($ in millions) # of Clients* Commitments Balances % Utilization $ Criticized Criticized Quick Service 12,188 $1,196 $981 82% $44 4% Casual Dining 23 446 280 63% 195 70% Other 20 118 87 74% 8 9% PPP Loans 1,681 193 193 100% — —% Tot
Slide 54: Hotel lending
Hotel lending As of 9/30/21 % of Total Outstanding Outstanding ($ in millions) # of Clients* Commitments Balances % Utilization $ Criticized Criticized CRE-Unsecured (REITs) 9 $685 $468 68% $367 78% IRE – Mortgage 19 312 298 96% 282 95% IRE – Construction — — — —% — —% Consumer Services 3705 138 132
Slide 55: Commercial retail lending
Commercial retail lending As of 9/30/21 Total Outstanding ($ in millions) # of Clients* Commitments Balances % Utilization $ Criticized % Criticized CRE-Unsecured (REITs) 18 $2,115 $615 29% $0 —% IRE 123 638 608 95% 66 11% C&I 21,326 2,435 1,135 47% 9 1% CRE-OO 810 943 882 94% 13 1% ABL 16 1,044 262
Slide 56: Loans to Small Business and Small Farms
Loans to Small Business and Small Farms (outstanding balances as of September 30, 2021) Balances by Industry Balances by State Healthcare 13% 13% Transportation & Warehousing 13% Florida 27% 21% Real Estate 13% 27% Alabama 10% 13% Retail Trade 8% 40% Tennessee 8% 8% $6.5B Professional, Scientific &
Slide 57: Consumer lending portfolio statistics
Consumer lending portfolio statistics Consumer Third Party Residential Mortgage Lending Consumer Credit Card • Avg. origination FICO 750 • Avg. origination FICO 754 • Avg. origination FICO 781 • Current LTV 56% • Avg. new line $31,227 • Avg. new line $5,919 • 97% owner occupied • 43% home improvemen
Slide 58: 2021 expectations
2021 expectations FY 2021 Category Expectations Up modestly (dependent on Total Adjusted Revenue timing & amount of PPP (from adjusted 2020 of $6,206)(1)(2) forgiveness) Adjusted Non-Interest Expense Up modestly (from adjusted 2020 of $3,541)(1)(2) Adjusted Average Loans Down low single digits (from
Slide 59: ESG - Environmental
ESG - Environmental Regions' Climate Commitment Regions acknowledges the climate challenges that face our planet and is committed to both further reducing our environmental footprint and exploring new ways to support our customers and third parties in their own efforts to enact similar change. 2021
Slide 60: ESG - Social
ESG - Social Our mission at Regions is to achieve superior economic value for our shareholders over time by making life better for our customers, our associates and our communities and creating shared value as we help them meet their financial goals and aspirations. We do this by providing competiti
Slide 61: ESG - Governance
ESG - Governance We consider proper shareholder 43 engagement to be a continuous Specific components of COVID-19 Board and Committee relationship throughout the year, with Regions' ESG-related Board oversight meetings in 2020 both Directors and management, policies, practices, and of Regions' throug
Slide 62: ESG - Recognitions and resources
ESG - Recognitions and resources State Street MSCI Global Advisors S&P Global Sustainalytics AA 63 S&P 500 Low-Risk ESG Rating R-Factor Score ESG Index ESG Risk Rating Human Rights JUST Capital JUST Capital Disability Equality FTSE Russell Campaign Index 100 Top 100 Companies Score in 2021 2021 Supp
Slide 63: LIBOR Transition
LIBOR Transition Readiness & the Path Forward Key Considerations Regions' Approach & Timeline Despite a relatively short timeline until banks can no longer originate LIBOR-linked financial products, uncertainty remains around the market’s direction for alternative Q4 2020: Mortgage ARMs are rates. R
Slide 64: Ascentium Capital
Ascentium Capital Acquisition exceeding expectations Company Overview Integration Updates Acquisition closed April 1, 2020, and • Ascentium Capital was the largest independent integration with Regions' systems, policies equipment finance lender in the U.S. and people is now complete. • Partners with
Slide 65: EnerBank acquisition
EnerBank acquisition Closed: October 1, 2021 Overview Portfolio Overview • Headquartered in Salt Lake City, UT, EnerBank LTM Originations Heat Map(1) originates prime and super-prime home improvement point-of-sale loans through a national network of contractors • A top 5 originator in the home impro
Slide 66: Sabal Capital Partners acquisition
Sabal Capital Partners acquisition Continues build-out of Regions' fee-based businesses Company Overview & Regions' Strategic Rationale • Announced October 4, 2021; expected close 4Q21 • Sabal expands Regions’ agency (Fannie/Freddie) CRE • Sabal Capital Partners is a market leader in the lending pro
Slide 67: Appendix
> GENERATING Consistent Sustainable Kone term Performance APPENDIX AM REGIONS] 67
Slide 68: Non-GAAP information
Non-GAAP information 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 in
Slide 69: Non-GAAP reconciliation
Non-GAAP reconciliation Core net interest income and adjusted net interest margin Quarter-ended 9/30/2021 6/30/2021 Net interest income (FTE) (GAAP) $ 976 $ 975 Impact of SBA PPP loans (31) (43) Impact of excess cash (3) (3) Core net interest income (FTE) (non-GAAP) $ 942 $ 929 Net interest margin (
Slide 70: Non-GAAP reconciliation
Non-GAAP reconciliation Adjusted average loans Average Balances ($ amounts in millions) 3Q21 2Q21 1Q21 4Q20 3Q20 3Q21 vs. 2Q21 3Q21 vs. 3Q20 Commercial and industrial $ 41,892 $ 43,140 $ 42,816 $ 43,889 $ 46,405 $ (1,248) (2.9)% $ (4,513) (9.7)% Add: Commercial loans held for sale reclassified to th
Slide 71: Non-GAAP reconciliation
Non-GAAP reconciliation Adjusted full year average loans Average Balance Twelve Months Ended ($ amounts in millions) December 31, 2020 Total Loans $ 87,813 Add: Commercial loans held for sale reclassified to the portfolio 1 Less: SBA PPP Loans 2,986 Less: Indirect—other consumer exit portfolio 1,417
Slide 72: Non-GAAP reconciliation
Non-GAAP reconciliation Adjusted ending loans As of 9/30/2021 9/30/2021 ($ amounts in millions) 9/30/2021 6/30/2021 3/31/2021 12/31/2020 9/30/2020 vs. 6/30/2021 vs. 9/30/2020 Commercial and industrial $ 41,748 $ 42,628 $ 43,241 $ 42,870 $ 45,199 $ (880) (2.1)% $ (3,451) (7.6)% Add: Commercial loans
Slide 73: Non-GAAP reconciliation
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 and re
Slide 74: Non-GAAP reconciliation
Non-GAAP reconciliation ACL/Loans excluding PPP As of ($ amounts in millions) 9/30/2021 6/30/2021 3/31/2021 12/31/2020 9/30/2020 Total Loans $ 83,270 $ 84,074 $ 84,755 $ 85,266 $ 88,359 Less: SBA PPP Loans 1,536 2,948 4,317 3,624 4,594 Loans excluding PPP, net (non- GAAP) $ 81,734 $ 81,126 $ 80,438
Slide 75: Non-GAAP reconciliation
Non-GAAP reconciliation Pre-tax pre-provision income (PPI) Quarter Ended ($ amounts in millions) 9/30/2021 6/30/2021 3/31/2021 12/31/2020 9/30/2020 3Q21 vs. 2Q21 3Q21 vs. 3Q20 Net income (loss) available to common shareholders (GAAP) $ 624 $ 748 $ 614 $ 588 $ 501 $ (124) (16.6)% $ 123 24.6 % (1) Pre
Slide 76: Non-GAAP reconciliation
Non-GAAP reconciliation NII, non-interest income/expense, and efficiency ratio Quarter Ended Year Ended ($ amounts in millions) 9/30/2021 6/30/2021 3/31/2021 12/31/2020 9/30/2020 3Q21 vs. 2Q21 3Q21 vs. 3Q20 12/31/2020 Non-interest expense (GAAP) A $ 938 $ 898 $ 928 $ 987 $ 896 $ 40 4.5 % $ 42 4.7 %
Slide 77: Forward-looking statements
Forward-looking statements 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, strategi
Slide 78: Forward-looking statements (continued)
Forward-looking statements (continued) • 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 abi
Slide 79: Forward-looking statements (continued)
Forward-looking statements (continued) • Market replacement of LIBOR and the related effect on our LIBOR-based financial products and contracts, including, but not limited to, derivative products, debt obligations, deposits, investments, and loans. • Possible downgrades in our credit ratings or outl
Slide 80: Generating Consistent, Sustainable Long-term Performance
> GENERATING Consistent Sustainable \ Long-term Performance A REGIONS Ma REGIONS] 80
Regions Financial — Investor Presentation (November 2021) on 6ix