Regions Financial Corporation · NYSE:RF
Regions Financial — Investor Presentation (August 2023)
79 slides from Regions Financial's investor presentation, Aug 4, 2023
Slide 1: Investor Information August - September 2023
Investor Information August - September 2023 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 32-38 Capital, Debt & Liquidity 39-42 Technology & Continuous Improvement 43-46 Credit 47-58 Near-Term Expectations 59 Environmental,
Slide 3: Our banking franchise
3 Line of business coverage Alabama – 188 Georgia – 116 Iowa – 5 Mississippi – 101 South Carolina – 18 Arkansas – 57 Illinois – 41 Kentucky – 9 Missouri – 50 Tennessee – 198 Florida – 273 Indiana – 40 Louisiana – 82 North Carolina – 7 Texas – 90 Ranked 19th in the U.S. in total deposits(1) Branch lo
Slide 4: Profile evolution and continuous improvement
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 $8 2008 2022 Investor CRE ($ in billions) 8.1% 6.9% 2012 2022 Customer Journeys Organization Simplificatio
Slide 5: Top market share plays a valuable role in the competitive landscape
5 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 6/30/2022; pro-forma for announced M&A transactions as of 07/11/2023. (2) Significant money center bank presence (JPM, BAC, C, WFC) defined as combined market sha
Slide 6: Serving fast-growing MSAs
6 Strong in-market migration has converted legacy core markets into growth markets Serving Fast-Growing MSAs Deposits Market Rank(1) Nashville, Tennessee $10.7 3 Tampa, Florida $7.7 4 Atlanta, Georgia $6.1 7 Orlando, Florida $3.2 5 Knoxville, Tennessee $3.1 3 Huntsville, Alabama $2.6 1 Dallas/Ft Wor
Slide 7: Regions receives top honors
7 Regions receives top honors Regions Bank recognized as a 2023 Top 10 Military Friendly Brand Regions Bank earned the Great Place to Work-Certified™ Company designation based on what current associates say about their experience working here Nine Years Strong: Regions Bank Again Named Gallup Except
Slide 8: Second quarter 2023 overview
8 Second quarter 2023 overview Continue to generate consistent, sustainable long-term performance (1) Non-GAAP, see appendix for reconciliation. Key Performance Metrics 2Q23 Reported Net Income Available to Common Shareholders $556M Diluted Earnings Per Share $0.59 Total Revenue $2.0B Non-Interest E
Slide 9: Regions' consistent outperformance
9 Regions' consistent outperformance Adjusted PPI(1) Less Adjusted Net Charge-offs(1) to RWA(2) Regions' earnings, including credit costs, have been top quartile for 12 straight quarters 1.70 2.16 2.33 2.29 2.33 2.44 2.23 2.19 2.54 2.68 2.76 2.72 2.43 1.74 1.73 1.74 1.86 1.97 1.91 1.78 1.63 1.89 2.2
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% 26.7% 23.8% 12.0% 11.0% 12.0% 17.0% 14.7% 8.5% 16.5% 19.3% 20.2% 17.6% RF Peer Median 2015 2016 2017 2018 2019 2020 2021 2022 1Q23 2Q23 ROATCE Performance Trend vs. Peers(1) (1) Non-GAAP; see Appendix for reconcilia
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% 4.59% 4.79% 3.88% 3.61% 3.41% 3.64% 4.29% 5.10% 5.54% 5.81% RF Peer Median 2018 2019 2020 2021 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 Consistent NIM outperformance aided by hedged loan yield & deposit advantage (1) Source: S&P Capital IQ. Peers i
Slide 12: Net interest income attribution
12 Deposit Balances (1) Market rate impacts include contractual loan, cash, hedge and borrowings repricing; fixed asset turnover at higher market rates; securities premium amortization net discount accretion flat vs 1Q at $20M. (2) Expectations assume 06/30/2023 forward rates: upper-end Fed Funds ra
Slide 13: Balance sheet profile
13 Floating 60% Fixed 40% Deposits 82% Borrowings 5% Other 2% Equity 11% • Balance sheet position naturally benefits from higher interest rates (i.e. asset sensitive), supported by ◦ Large floating rate loan and cash mix ◦ Large, stable deposit base as evidenced over multiple rate cycles • Fixed-rat
Slide 14: Balance sheet positioning advantage
14 Cash / Earning Assets Bo rr ow in gs / E ar ni ng A ss et s Cash vs Borrowings 0% 5% 10% 15% 20% —% 5% 10% 15% 20% Balance sheet positioning advantage Strong deposit franchise and funding position provide an opportunity for flexibility and outperformance in a monetary tightening environment (1) R
Slide 15: Regions' deposit advantage
15 RF IB Deposit Yield ('15-'19) Peer Median ('15-'19) RF IB Deposit Yield (Current) Peer Median (Current) —% 0. 50 % 1. 00 % 1. 50 % 2. 00 % 2. 50 % 3. 00 % 3. 50 % 4. 00 % 4. 50 % 5. 00 % 5. 50 % —% 0.50% 1.00% 1.50% 2.00% 2.50% 2.50% 5.16% 0.82% 1.33% 1.03% 2.19% Fed Funds RF IB Deposit Yield Pee
Slide 16: Conservative interest rate and liquidity risk management
16 Conservative Interest Rate and Liquidity Risk Management • Since early in the pandemic, Regions employed various analytical tools to better understand the unprecedented influx of deposits • Considering the significant uncertainty arising from the ‘surge,’ Regions chose to maintain a conservative
Slide 17: Net interest income sensitivity drivers
17 Sensitivity to Long-Term Rates • ~$13-$15B annual fixed rate loan production and securities reinvestment; mostly exposed to middle tenor rates • Reduced premium amortization from lower prepay speeds and lower purchase prices on monthly reinvestment Balance sheet positioning Sensitivity to Short-T
Slide 18: Hedging strategy update
18 $13.0B $20.4B $19.0B $16.5B $11.7B $5.9B 1 2 3 4 5 6 7 Program Overview • Legacy Hedging Program: Performed as designed, limiting NII & NIM downside during a low-rate environment • 2021: Completed hedge repositioning to purposely open rate exposure prior to rates rising • 2022-23: Added meaningfu
Slide 19: Securities portfolio
19 • Portfolio constructed to protect against changes in market rates ◦ Duration of 4.7 years as of 6/30/2023 provides offset to long-duration deposit book ◦ Portfolio is fully extended ◦ ~34% of securities in the portfolio are bullet-like (CMBS, corporate bonds, agency bullets, and USTs) ◦ MBS mix
Slide 20: Non-interest income
20 Adj. Non-Interest Income $640 $535 $576 2Q22 1Q23 2Q23 Change vs ($ in millions) 2Q23 1Q23 2Q22 Service charges $152 (1.9)% (7.9)% Card and ATM fees 130 7.4% (2.3)% Capital markets (Ex CVA/DVA) 77 2.7% (16.3)% Capital markets - CVA/DVA (9) 72.7% (145.0)% Wealth management income 110 (1.8)% 7.8% M
Slide 21: Diversified non-interest income by segment
21 Consumer 47% Wealth Management 20% Corporate 33% 2Q23 fee revenue by segment(1) Diversified non-interest income ($ 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 and services that our clients value Our associates delivered results • 2022 vs. 2021 growth was driven by improvements in CVA/DVA, Real Estate loan syndications, and interest rate & commodity derivatives products • Capital Markets Income (ex. CVA/DVA) $77M in 2Q;
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 +13% Treasury Management Revenue(1) +8% Portfolio of Treasury Management Clients(2) +7% Digital, Payment & Integrated Services Revenue(3) +29% G
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. Details of Regions' Announcements(3): 1Q22-Eliminate overdraft protection transfer fees 2Q22-Reduce daily cap for overdraft occurrences to 3 2Q22-Elim
Slide 25: Mortgage remains a key component of fee revenue
25 Industry origination volume forecasted to be down 22% versus 2022(1) Closed mortgage volume is estimated to be $1.8T in 2023 across the US(1) Continuing to focus on growing servicing through acquiring new MSRs Enhancing MLO execution to drive customer experience and improve cycle time 756 Avg. FI
Slide 26: Non-interest expense and efficiency ratio
26 $948 $1,027 $1,111 53.9% 52.3% 56.4% Non-interest expense Efficiency ratio 2Q22 1Q23 2Q23 $954 $1,025 $1,110 54.2% 52.2% 56.4% Adjusted non-interest expense Adjusted efficiency ratio 2Q22 1Q23 2Q23 • Non-interest expense increased ~8% on a reported and adjusted basis(1); Ex. incremental $82M asso
Slide 27: Business segments
27 46% 48% 6% 64% 34% 2% 28% 64% 6% 2% $846M $99B $126B 2Q23 Pre-tax pre- provision income(1) 2Q23 Average deposits 2Q23 Average loans (1) Pie %'s exclude the pre-tax pre-provision income from the Other Segment totaling $4 million. Business segments Consumer Corporate Wealth Management Other
Slide 28: Investments in our businesses
28 (1) June '22 - June '23 (2) Quality Relationships defined as having a cumulative $500K in loans, deposits and IM&T accounts, revenue per Quality Relationship measured over TTM, June '23 vs Dec '22. (3) Total includes $6.2B bulk MSR purchase completed in July 2023. Investments in our businesses In
Slide 29: Consumer Banking Group
29 (1) Consumer Bank – LOB Average Deposits 2Q23 vs. 2Q20. (2) Excludes small business. Consumer Banking Group Driving growth and customer engagement through strategic investments Continuing to Deliver Strong Results Delivered ~450K Greenprint personalized financial plans through June, with the goal
Slide 30: Corporate Banking Group
30 Corporate Banking Group Driving continued long-term performance for our clients & our shareholders Strengthening Capabilities with Strategic Investments Executing a Strategy that Delivers Results Investing in Talent & Enablement Delivering a comprehensive & competitive suite of Treasury Managemen
Slide 31: Wealth Management Group
31 (1) Wealth Management - LOB Average Deposits 2Q20 vs 2Q23 Wealth Management Group Focus on execution & investments to optimize the client and associate experience Showcasing Our Best Thinking and providing insight in a disruptive market through interviews on Fox Business, CNBC and other trusted b
Slide 32: Loan growth continues
32 • Avg business loans increased 1% reflecting high-quality, broad-based growth across the telecommunications, multi-family, and energy industries ▪ ~84% of 2Q business loan growth was driven by existing clients • Line commitments increased ~$1.5B while utilization decreased to 43.5% • Avg consumer
Slide 33: 2Q23 average loan composition
33 $52.0 $4.9 $0.3 $6.5 $2.0 Commercial and Industrial CRE Mortgage - OO CRE Construction - OO IRE - Mortgage IRE - Construction 2Q23 average loan composition $19.4 $5.8 $6.0 $0.5 $1.2 Mortgage Home Equity Other Consumer Other Consumer - Exit Portfolios Consumer Credit Card Average consumer loans $3
Slide 34: Commercial & IRE loans
34 Commercial & IRE loans As of 06/30/23 ($ in millions) Total Commitments Outstanding Balances % Utilization Administrative, Support, Waste & Repair $2,536 $1,597 63% Agriculture 538 276 51% Educational Services 4,334 3,441 79% Energy 4,900 1,795 37% Financial Services - Banking & Trust 10,033 4,14
Slide 35: Deposits: normalization occurring as expected
35 $138.3 $128.4 $127.0 85.0 83.3 81.6 41.5 35.2 35.3 9.5 7.9 7.2 2.3 2.0 2.9 2Q22 1Q23 2Q23 $139.5 $129.0 $125.5 85.2 82.2 81.0 41.9 36.3 34.9 10.0 8.4 7.4 2.4 2.1 2.2 2Q22 1Q23 2Q23 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 (1) Excludes customers with zero-balance or overdrawn accounts a
Slide 37: Diversified deposit base
37 Diversified deposit base (1) $ in billions as of 6/30/2023. (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 an
Slide 38: Deposit advantage vs. peers
38 Deposit advantage Well diversified deposit base vs. Peers (1) As of 6/30/2023. Information for top two charts for Peer 7 is based on 3/31/2023 data. Source: Bank Call Reports / SEC filings. Peers include CFG, CMA, FHN, FITB, HBAN, HWC, KEY, MTB, PNC, SNV, TFC, USB, ZION. ...Resulting in the highe
Slide 39: Liquidity position is strong and stable
39(1) Fed master account closing balance only. Does not include other small in transit / processing items included in Call Report or SEC reports. (2) 'Liquid Securities Free to Use incl. Bank Term Funding Program (BTFP)' are comprised of Free to Pledge Securities and the incremental BTFP borrowing a
Slide 40: Capital and liquidity
40 9.2% 9.9% 10.1% 2Q22 1Q23 2Q23 • Common Equity Tier 1 (CET1) ratio(1) increased to 10.1%, reflecting solid capital generation through earnings partially offset by modest loan growth, as well as common & preferred stock dividends • From 4Q23 through 3Q24, the Stress Capital Buffer will remain at 2
Slide 41: Tangible common equity
41 5.76% 5.01% 5.63% 6.31% 6.09% 6.97% 7.17% 7.64% 8.02% 8.14% TCE Ratio Adjusted TCE Ratio, ex-AOCI 2Q22 3Q22 4Q22 1Q23 2Q23 4.00% 5.00% 6.00% 7.00% 8.00% 9.00% Tangible Common Equity (1) Non-GAAP; see Appendix for reconciliation. • Higher levels of interest rates are beneficial to Regions through
Slide 42: Investing for growth while maintaining capital optimization
42 Investing for growth while maintaining focus on capital optimization 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 arrangement Sold Regions Insurance
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 Platform Next Generation of Customer Experience and Core Banking and Data Platforms Modernization efforts began in 2021 with runway through 2027 to complete the overall program
Slide 44: Differentiating through customer experience
44 Differentiating through customer experience Authentication Improvements Completed launch of new Corporate Banking Authentication platform. Launched new Enterprise Authentication Portal for Consumer Online Banking using cloud native technologies. Faster Transactions 2Q23 Real Time Payment transact
Slide 45: Growth in digital
45 2.19 2.36 2.52 2Q21 2Q22 2Q23 2.28 2.99 3.85 2Q21 2Q22 2Q23 159 159 174 2Q21 2Q22 2Q23 21.4% 22.2% 23.6% 32.2% 32.2% 31.9% 46.4% 45.6% 44.5% 2Q21 2Q22 2Q23 88.7 82.7 99.6 75.4 65.9 79.1 13.3 16.8 20.5 Deposits Lending 2Q21 2Q22 2Q23 68% 71% 74% 32% 29% 26% 2Q21 2Q22 2Q23 Growth in digital Mobile
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: Asset quality
47 • Credit performance continues to normalize as expected • 2Q annualized NCOs totaled 33 bps • 2Q NPLs decreased while business services criticized loans and total delinquencies both increased • 2Q ACL/Loans ratio increased slightly; total ACL increase attributable to normalizing credit, economic
Slide 48: Commercial Real Estate
48 Commercial Real Estate(1) Highly Diversified Total IRE Portfolio (including Unsecured CRE) • Unsecured loans for RE purposes generally have low leverage, with strong access to liquidity ◦ 70% of REITs are investment grade or mapped to IG risk rating (provide loss insulation to overall portfolio)
Slide 49: Higher risk industry segments
49 Higher Risk Industry Segments (Outstanding balances as of June 30, 2023) (1) Amounts exclude PPP loans and Held For Sale loans. (2) CoStar is an industry leader in CRE data & analytics. CoStar data as of March 31, 2023 (3) GreenStreet Commercial Property Price Index as of June 6, 2023 - change in
Slide 50: Allowance for credit losses waterfall
50 $1,596 $15 $15 $7 $1,633 Allowance for credit losses waterfall 06/30/2023 • 2Q allowance increased $37M compared to the prior quarter, resulting in a $118M provision expense • Key drivers of the net increase in ACL: ◦ Increased qualitative ACL due to elevated risk in Business Offices and Apartmen
Slide 51: Base economic outlook
51 Pre-R&S period 2Q2023 3Q2023 4Q2023 1Q2024 2Q2024 3Q2024 4Q2024 1Q2025 2Q2025 Real GDP, annualized % change 1.2 % 0.9 % 0.9 % 1.2 % 1.1 % 1.2 % 1.3 % 1.4 % 1.6 % Unemployment rate 3.5 % 3.6 % 3.8 % 3.9 % 4.1 % 4.2 % 4.3 % 4.3 % 4.2 % HPI, year-over-year % change (1.1) % (3.1) % (4.1) % (4.8) % (3
Slide 52: Allowance allocation
52 As of 6/30/2023 As of 12/31/2022 (in millions) Loan Balance ACL ACL/Loans Loan Balance ACL ACL/Loans C&I $52,300 $677 1.29 % $50,905 $628 1.23 % CRE-OO mortgage 4,797 106 2.21 % 5,103 102 2.00 % CRE-OO construction 292 7 2.31 % 298 7 2.29 % Total commercial $57,389 $790 1.38 % $56,306 $737 1.31 %
Slide 53: Well positioned for next downturn
53 All Other Commercial 3.6% Investor Real Estate 13.1% Financial Services 10.7% CRE Unsecured, including REITs 10.7% Govt. Education 10.0% Consumer Services 8.8% Technology Services 8.5% Manufacturing 7.8% Energy 2.7% Agriculture 0.4% Utilities 4.6% Business Services 7.7% Distribution 6.6% Healthca
Slide 54: Consumer lending portfolio statistics
54 Consumer lending portfolio statistics • Avg. origination FICO 764 • Current LTV 53% • 98% owner occupied • Avg. origination FICO 778 • Current LTV 34% • 67% of portfolio is 1st lien • Avg. loan size $34,791 • $79M to convert to amortizing or balloon during 2023 • Avg. origination FICO 762 • Avg.
Slide 55: Leveraged portfolio
55 $3.7B Leveraged portfolio (outstanding balances as of June 30, 2023) • Consistent with Moody's historical Regional Bank Survey definition; Commitments >$5M with funded debt to EBITDA>4.0x ◦ Commitments are $4.8 • 4% of leveraged loans are investment grade and 53% are solid pass ratings • Not a st
Slide 56: SNC portfolio
56 $27.4B SNC Portfolio (outstanding balances as of June 30, 2023) • Improved portfolio composition and asset quality through focus on lower risk segments • 44% of balances are Investment Grade • 13% of balances are leveraged • 8% are Agented, 46% are participant with title, and 46% are participant
Slide 57: SNC portfolio outstandings
57 SNC portfolio (outstanding balances as of June 30, 2023) Shared National Credit Outstandings: $14B (52%) Select and Investment Grade Asset Securitization $1.8 6.6% REIT $5.2 19.0% Subscription Lines $0.8 2.9% Utilities Investment Grade $1.0 3.6% Superior Transaction and Return Relationships (STAR
Slide 58: Historical credit profile
58 (1) Includes C&I, CRE - OO and IRE. (2) The spike in Consumer net charge-offs in late 2013 was associated with the move of ~$700M primarily accruing troubled debt restructured residential first mortgage loans to held for sale resulting in ~$150M of charge-offs. Historical Credit Profile —% 0.50%
Slide 59: 2023 expectations
59 2023 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 60: Environmental, Social & Governance: managing ESG risks
60 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 61: Environmental, Social & Governance
61 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 62: LIBOR Transition
62 LIBOR Transition Mission Accomplished Regions has completed the transition from LIBOR As of June 30, 2023 Regions has completed the transition from LIBOR. The project that lasted over four years resulted in a smooth transition of thousands of loans and derivatives tied to USD LIBOR to alternative
Slide 63: Acquisitions exceeding expectations
63 Acquisitions exceeding expectations Ascentium Capital(1) EnerBank(2) Origination Growth • Volume up 4% for the first half of 2023 • An increasing interest rate environment, inflation, and a slowing economy are providing headwinds to origination growth and portfolio credit performance Cross Market
Slide 64: Appendix
> GENERATING Consistent Sustainable \ Long-term Performance APPENDIX AK REGIONS] 64
Slide 65: Second quarter 2023 highlights
65 Selected items impact Second 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. NM - Not Meaningful ($ amount
Slide 66: Non-GAAP measures explanation
66 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 67: Adjusted net charge-offs and ratio
67 Non-GAAP reconciliation Adjusted Net Charge-Offs and Ratio Year-Ended For the Quarter Ended ($ amounts in millions) 2022 12/31/2022 9/30/2022 6/30/2022 3/31/2022 Net loan charge-offs (GAAP) $ 263 $ 69 $ 110 $ 38 $ 46 Less: charge-offs associated with the sale of unsecured consumer loans 63 — 63 —
Slide 68: Adjusted AOCI for AFS plus HTM and cash flow hedges
68 Non-GAAP reconciliation Adjusted AOCI for AFS plus HTM and Cash Flow Hedges ($ amounts in millions) 3/31/2023 Unrealized losses on securities transferred to held to maturity, after-tax (GAAP) $ (9) Unrealized gains (losses) on securities available for sale, after-tax (GAAP) (2,226) Unrealized gai
Slide 69: Non-interest expense reconciliation
69 Non-GAAP reconciliation Non-interest expense Twelve Months Ended December 31 ($ amounts in millions) 2022 2021 2020 2019 2018 2017 2016 Non-interest expense (GAAP) $ 4,068 $ 3,747 $ 3,643 $ 3,489 $ 3,570 $ 3,491 $ 3,483 Adjustments: Contribution to Regions Financial Corporation foundation — (3) (
Slide 70: Pre-tax pre-provision income
70 Non-GAAP reconciliation Pre-tax pre-provision income (PPI) Quarter Ended ($ amounts in millions) 6/30/2023 3/31/2023 12/31/2022 9/30/2022 6/30/2022 3/31/2022 12/31/2021 9/30/2021 6/30/2021 3/31/2021 12/31/2020 9/30/2020 6/30/2020 Net income available to common shareholders (GAAP) $ 556 $ 588 $ 66
Slide 71: NII, non-interest income/expense, and efficiency ratio
71 Non-GAAP reconciliation NII, non-interest income/expense, and efficiency ratio NM - Not Meaningful Quarter Ended ($ amounts in millions) 6/30/2023 3/31/2023 12/31/2022 9/30/2022 6/30/2022 2Q23 vs. 1Q23 2Q23 vs. 2Q22 Non-interest expense (GAAP) A $ 1,111 $ 1,027 $ 1,017 $ 1,170 $ 948 $ 84 8.2 % $
Slide 72: Non-interest income reconciliation
72 Non-GAAP reconciliation Non-interest income Year Ended ($ amounts in millions) 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 Non-interest income (GAAP) $ 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) losses, net 1 (3)
Slide 73: Return on average tangible common equity (quarterly)
73 Quarter Ended ($ amounts in millions) 6/30/2023 3/31/2023 12/31/2022 9/30/2022 6/30/2022 RETURN ON AVERAGE TANGIBLE COMMON SHAREHOLDERS' EQUITY Net income available to common shareholders (GAAP) A $ 556 $ 588 $ 660 $ 404 $ 558 Average shareholders' equity (GAAP) $ 16,892 $ 16,457 $ 15,442 $ 16,47
Slide 74: Return on average tangible common equity (annual)
74 Non-GAAP reconciliation Return on average tangible common shareholders' equity Year Ended ($ amounts in millions) 2022 2021 2020 2019 2018 2017 2016 2015 RETURN ON AVERAGE TANGIBLE COMMON SHAREHOLDERS' EQUITY Net income available to common shareholders A $ 2,146 $ 2,400 $ 991 $ 1,503 $ 1,695 $ 1,
Slide 75: Tangible common ratios
75 Non-GAAP reconciliation Tangible Common Ratios As of and for Quarter Ended ($ amounts in millions, except per share data) 6/30/2023 3/31/2023 12/31/2022 9/30/2022 6/30/2022 3/31/2022 TANGIBLE COMMON RATIOS Shareholders’ equity (GAAP) A $ 16,639 $ 16,883 $ 15,947 $ 15,173 $ 16,507 $ 16,982 Less: P
Slide 76: Forward-Looking Statements
76 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 77: Forward-looking statements risk factors
77 • 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 78: Forward-looking statements risk factors (continued)
78 • 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 79: Generating consistent sustainable long-term performance
> GENERATING Consistent Sustainable Krizneterm Performance A REGIONS Ax REGIONS| 79
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