Regions Financial Corporation · NYSE:RF
Regions Financial — Investor Presentation (February 2023)
76 slides from Regions Financial's investor presentation, Feb 23, 2023
Slide 1: Investor Information February - March 2023
Investor Information February - March 2023 Exhibit 99.1
Slide 2: Table of contents
2 Table of contents Topic Page # Profile and Strategy 3-10 Income Statement 11-25 Business Segment Highlights 26-30 Balance Sheet 31-38 Capital, Debt & Liquidity 39-40 Technology & Continuous Improvement 41-46 Credit 47-55 Near-Term Expectations 56 Environmental, Social & Governance 57-58 LIBOR Tran
Slide 3: Line of business coverage
3 Line of business coverage Alabama – 189 Georgia – 116 Iowa – 5 Mississippi – 101 South Carolina – 18 Arkansas – 58 Illinois – 41 Kentucky – 10 Missouri – 51 Tennessee – 200 Florida – 275 Indiana – 41 Louisiana – 83 North Carolina – 7 Texas – 90 Ranked 19th in the U.S. in total deposits(1) Branch l
Slide 4: Improved credit risk profile 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 01/30/2023. (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 Eight Years Strong: Regions Bank Again Named Gallup Excep
Slide 8: 2022 overview
8 2022 overview Continue to generate consistent, sustainable long-term performance (1) Non-GAAP, see appendix for reconciliation. (2) Peer banks include: CFG, CMA, FHN, FITB, HBAN, HWC, KEY, MTB, SNV, PNC, TFC, USB, and ZION. Key Performance Metrics 4Q22 FY22 Reported Adjusted(1) Reported Adjusted(1
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 10 straight quarters 1.70 2.16 2.33 2.29 2.33 2.44 2.23 2.19 2.54 2.68 2.76 1.74 1.73 1.74 1.86 1.97 1.91 1.78 1.63 1.89 2.28 2.23 RF
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% 12.0% 11.0% 12.0% 17.0% 14.7% 8.5% 16.5% 19.3% RF Peer Median 2015 2016 2017 2018 2019 2020 2021 2022 ROATCE Performance Trend vs. Peers(1) (1) Non-GAAP; see Appendix for reconciliation. Peers include CFG, CMA, FHN,
Slide 11: Consistent NIM outperformance
11 4.52% 4.69% 4.15% 4.11% 4.07% 4.15% 4.53% 5.05% 4.59% 4.79% 3.88% 3.61% 3.41% 3.64% 4.29% 5.10% RF Peer Median 2018 2019 2020 2021 1Q22 2Q22 3Q22 4Q22 Consistent NIM outperformance aided by hedged loan yield & deposit advantage (1) Source: S&P Capital IQ. Peers include CFG, CMA, FHN, FITB, HBAN,
Slide 12: Net interest income highlights
12 • NII +$140M, or +11% linked-quarter; NIM +0.46% • Higher short-term rates largely drive NII growth ◦ Additional asset sensitivity in the quarter from hedge notional maturities(2) offsets deposit costs and balance normalization ◦ 4Q deposit cost = 34bps / interest-bearing deposit cost = 57bps (22
Slide 13: Balance sheet profile
13 Floating 61% Fixed 39% Deposits 85% Borrowings 1% Other 3% Equity 10% • 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 and low reliance on wholesale borrowings • Have re
Slide 14: Balance sheet positioning advantage
14 Balance sheet positioning advantage Strong deposit franchise and funding position provide an opportunity for flexibility and outperformance in a monetary tightening environment (1) RF's calc utilizes cash at the Fed and excludes unrealized gain/loss on AFS securities from EA. Source: SEC reportin
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 % —% 0.50% 1.00% 1.50% 2.00% 2.50% 3.84% 0.82% 0.57% 1.03% 1.00% Fed Funds RF IB Deposit Yield Peer Median 3Q 15
Slide 16: Asset sensitive balance sheet
16 Sensitivity to Long-Term Rates • ~$16B 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 Asset sensitive balance sheet Sensitivity to Short-T
Slide 17: Hedging strategy update
17 1 2 3 4 5 6 7 Program Overview • Legacy Hedging Program: Performed as designed, limiting NII & NIM downside during low-rate environment • 2021: Completed hedge repositioning to purposely open rate exposure prior to rates rising • 2022: Added meaningful future protection at rate levels supportive
Slide 18: Securities portfolio provides downside rate protection
18 • Portfolio constructed to protect against changes in market rates ◦ Duration of approximately 5 years as of 12/31/2022 (fully extended) provides offset to long-duration deposit book ◦ Reinvestment has favored bullet-like cash flows in 4Q, providing downside protection from lower rates ◦ ~36% of
Slide 19: Non-interest income
19 Adj. Non-Interest Income $615 $606 $550 4Q21 3Q22 4Q22 Change vs ($ in millions) 4Q22 3Q22 4Q21 Service charges $152 (2.6)% (8.4)% Card and ATM fees 130 3.2% 2.4% Capital markets (Ex CVA/DVA) 72 —% (13.3)% Capital markets - CVA/DVA (11) (152.4)% NM Wealth management income 108 —% 8.0% Mortgage in
Slide 20: Diversified non-interest income
20 Consumer 48% Wealth Management 20% Corporate 32% 4Q22 fee revenue by segment(1) Diversified non-interest income ($ 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 21: Capital Markets
21 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 • Organic growth and the integration of Sabal Capit
Slide 22: Treasury Management
22 Treasury Management Enabling our clients to optimize cash flow and manage risk with a comprehensive & competitive suite of Treasury Management solutions • Export Working Capital Preferred Lender • #1 SBA Export Lender for 4 Consecutive Years • Export Working Capital Lender of the Year (2019) • Hi
Slide 23: Deposit account policy changes
23 Regions has made significant changes and upgrades while continuing to provide clients with resources needed to succeed in managing their finances. Details of Regions' Announcement(3): 1Q22-Eliminate overdraft protection transfer fees 2Q22-Reduce daily cap for overdraft occurrences to 3 2Q22-Elimi
Slide 24: Mortgage remains a key component of fee revenue
24 Industry purchase volume in 2022 declined modestly, while refinance activity fell dramatically in response to rising rates(1) Closed mortgage volume is estimated to be $1.9T in 2023 across the US(1) Continuing to focus on growing servicing through acquiring new MSRs Enhancing MLO execution to dri
Slide 25: Non-interest expense and efficiency ratio
25 $983 $1,170 $1,017 59.8% 62.3% 50.5% Non-interest expense Efficiency ratio 4Q21 3Q22 4Q22 • Non-interest expense decreased ~13% on a reported basis but increased ~2% on an adjusted basis(1) • Reported professional & legal exp. 4Q decline driven by charges related to 3Q regulatory settlement • Sal
Slide 26: Business segments
26 43% 50% 7% 64% 34% 2% 29% 63% 7% 1% $984M $96B $133B 4Q22 Pre-tax pre- provision income(1) 4Q22 Average deposits 4Q22 Average loans (1) Pie %'s exclude the pre-tax pre-provision income from the Other Segment totaling $39 million. Business segments Consumer Corporate Wealth Management Other
Slide 27: Investments in our businesses
27 (1) December 2022 vs 2021. (2) Quality Relationships defined as having a cumulative $500K in loans, deposits and IM&T accounts, revenue per Quality Relationship measured over TTM, Nov '22 vs Dec '21. (3) Retention of IM&T revenue vs baseline. Investments in our businesses Investments in talent, t
Slide 28: Consumer Banking Group
28 (1) Consumer Bank – LOB Average Deposits. (2) Excludes impact of 3Q22 unsecured consumer loan sale. Consumer Banking Group Driving growth and customer engagement through strategic investments Continuing to Deliver Strong Results Delivered ~800K Greenprint personalized financial plans in 2022 with
Slide 29: Corporate Banking Group
29 Corporate Banking Group Driving continued long-term performance for our clients & our shareholders Strategic Investments Expanded Expertise Solid Credit Quality with FY22 Charge offs of 7bps, a 3bps improvement vs the prior year Ascentium Capital experienced record loan production, up 25% vs prio
Slide 30: Wealth Management Group
30 (1) Represents December YTD Numbers. Wealth Management Group Focus on execution & investments to optimize the client and associate experience Continued enhancement of existing business intelligence dashboards to aid in client management and identification of trends Customer Experience & Communica
Slide 31: Loan growth continues
31 • Avg business loans increased 2% reflecting high- quality, broad-based growth across financial services, wholesale durables, information services and multi-family • Line commitments increased ~$800M and utilization increased to 43.4% ◦ Expect pace of loan growth to slow over time as capital mark
Slide 32: Average loan composition
32 $50.1 $5.1 $0.3 $6.4 $1.9 Commercial and Industrial CRE Mortgage - OO CRE Construction - OO IRE - Mortgage IRE - Construction 4Q22 Average loan composition $18.6 $6.0 $5.6 $0.6 $1.2 Mortgage Home Equity Other Consumer Other Consumer - Exit Portfolios Consumer Credit Card Average consumer loans $3
Slide 33: Commercial & IRE loans
33 Commercial & IRE loans As of 12/31/22 ($ in millions) Total Commitments Outstanding Balances % Utilization Administrative, Support, Waste & Repair $2,461 $1,531 62% Agriculture 583 332 57% Educational Services 4,289 3,311 77% Energy - Oil, Gas & Coal 4,691 1,559 33% Financial Services - Banking &
Slide 34: Deposits normalization occurring as expected
34 $139.1 $135.4 $131.7 82.8 85.5 83.5 42.7 38.3 37.1 10.9 9.4 9.1 2.7 2.2 2.0 4Q21 3Q22 4Q22 $136.7 $135.5 $133.0 80.9 84.7 83.6 42.7 39.0 38.2 10.1 9.5 9.0 3.0 2.3 2.2 4Q21 3Q22 4Q22 Deposits Normalization occurring as expected (1) Other deposits represent non-customer balances primarily consistin
Slide 35: Deposit mix and outlook
35 Deposit mix and outlook Trends & Outlook Consumer & Wealth • New Customers & Customers with Low Betas in 2019: Customers who had low deposit betas in the 2019 rate cycle (effective annual rate <20bps)(3) and new customers since 2019 have exhibited very stable behavior thus far • Other 2019 Custom
Slide 36: State of the consumer
36 State of the consumer Regions' exposure to low-FICO borrowers remains negligible; customers with historically low deposit balances still have significant cushion Retail Deposits Business/ Other Deposits Retail Deposits Regions' consumer borrowers are in a strong position relative to pre-pandemic
Slide 37: Median customer deposit balances
37 Median customer deposit balances Consumer and Corporate 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 (1) Based on full RF customer set. Previous iterations of this data were based
Slide 38: Deposit advantage
38 4Q17 4Q22 Deposit advantage (1) "Other" category includes EnerBank deposits and are average deposit balances. (2) Source - Bank Call Report data as of 9/30/2022. Peers include CFG, CMA, FHN, FITB, HBAN, HWC, KEY, MTB, PNC, SNV, TFC, USB, ZION. Funding Mix(1) - Current vs. Prior Rising Rate Cycle
Slide 39: Capital and liquidity
39 9.6% 9.3% 9.6% 4Q21 3Q22 4Q22 • Common Equity Tier 1 (CET1) ratio increased to 9.6%, reflecting solid capital generation through earnings offset by continued strong loan growth • Expect to manage CET1 near the upper end of 9.25-9.75% operating range over the near term • In 4Q, Regions declared $1
Slide 40: Tangible Common Equity
40 6.83% 5.93% 5.76% 5.01% 5.63% 6.66% 6.63% 6.97% 7.17% 7.64% TCE Ratio Adjusted TCE Ratio, ex-AOCI 4Q21 1Q22 2Q22 3Q22 4Q22 4.00% 5.00% 6.00% 7.00% 8.00% Tangible Common Equity (1) Non-GAAP; see Appendix for reconciliation. • Higher levels of interest rates are beneficial to Regions through expans
Slide 41: Investing for growth while maintaining focus on capital optimization
41 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 42: Empowered by innovation & data
42 Enhanced Fraud Analytics Machine learning models to detect and prevent fraud and enable analytics for proactive customer protection Modernizing Technology Practices Applying Security-First software development principles and expanding Agile adoption Cloud Engineering New talent and structure will
Slide 43: Differentiating through customer experience
43 Differentiating through customer experience Best In Class Mobile App(1) Authentication Improvements Enhanced Risk Based Authentication in Mobile Banking and Digital Corporate Banking, New Identity Platform for Digital Corporate Banking, Launched Customer Authentication framework, and One Time Pas
Slide 44: Continue to invest for the future
44 System Maintenance New Technology Cybersecurity / Risk Management Continue to invest for the future Regions remains competitive by reserving ~9–11% of revenue for technology spend Innovation and Strategy Customer Experience & Technology Past investment on innovation and strategy provided a firm,
Slide 45: Growth in digital
45 2.04 2.27 2.40 4Q20 4Q21 4Q22 1.79 2.66 3.44 4Q20 4Q21 4Q22149 158 161 4Q20 4Q21 4Q22 2.89 3.18 3.28 4Q20 4Q21 4Q22 20.0% 21.5% 22.3% 33.3% 33.0% 33.0% 46.7% 45.5% 44.7% 4Q20 4Q21 4Q22 64.5 75.8 68.0 53.2 66.2 55.3 11.3 9.6 12.7 Deposits Lending 4Q20 4Q21 4Q22 67% 69% 71% 33% 31% 29% 4Q20 4Q21 4Q
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 • Experienced some expected normalization in credit metrics, underlying credit performance remains broadly stable • 4Q annualized NCOs were 29 bps; excluding 3Q consumer loan sale, adjusted FY22 NCOs(1) at 22 bps • 4Q NPLs flat QoQ, but remain below pre-pandemic levels • 4Q ACL increased, resulti
Slide 48: Higher Risk Industry Segments
48 Higher Risk Industry Segments (Outstanding balances as of December 31, 2022) (1)Amounts exclude PPP loans and Held For Sale loans. Business Services High Risk Segments Portfolio BAL$(1) % of Total Loans % NPL % ACL Consumer Discretionary Goods Retail Trade & Consumer Manufacturing $1.76 1.8% 2.0%
Slide 49: Allowance for credit losses waterfall
49 Economic Changes $1,539 $42 $53 $(20) $(32) $1,582 Allowance for credit losses waterfall 12/31/2022 • 4Q allowance increased $43M compared to prior quarter, resulting in a $112M provision expense. • Key drivers of the increase in ACL: ◦ High quality balance growth ◦ Credit quality changes and nor
Slide 50: Base R&S economic outlook
50 Pre-R&S period 4Q2022 1Q2023 2Q2023 3Q2023 4Q2023 1Q2024 2Q2024 3Q2024 4Q2024 Real GDP, annualized % change 1.1 % 0.3 % 0.6 % 0.9 % 1.3 % 1.6 % 2.3 % 2.2 % 2.4 % Unemployment rate 3.7 % 3.8 % 4.0 % 4.2 % 4.3 % 4.4 % 4.4 % 4.4 % 4.3 % HPI, year-over-year % change 6.1 % (0.2) % (3.8) % (3.7) % (2.7
Slide 51: Allowance allocation
51 As of 12/31/2022 As of 12/31/2021 (in millions) Loan Balance ACL ACL/Loans Loan Balance ACL ACL/Loans C&I $50,905 $628 1.23 % $43,758 $613 1.40 % CRE-OO mortgage 5,103 102 2.00 % 5,287 118 2.23 % CRE-OO construction 298 7 2.29 % 264 9 3.53 % Total commercial $56,306 $737 1.31 % $49,309 $740 1.50
Slide 52: Well positioned for next downturn
52 All Other Commercial 3.8% Investor Real Estate 13.0% Financial Services 10.8% CRE Unsecured, including REITs 10.4% Govt. Education 10.1% Consumer Services 8.5% Technology Services 8.3% Manufacturing 8.3% Business Services 7.5% Distribution 6.8% Commodities 6.8% Healthcare 5.7% Well positioned for
Slide 53: Consumer lending portfolio statistics
53 Consumer lending portfolio statistics • Avg. origination FICO 759 • Current LTV 52% • 98% owner occupied • Avg. origination FICO 758 • Current LTV 35% • 68% of portfolio is 1st lien • Avg. loan size $35,733 • $125M to convert to amortizing or balloon during 2023 • Avg. origination FICO 760 • Avg.
Slide 54: Leveraged portfolio
54 $3.3B Leveraged portfolio (outstanding balances as of December 31, 2022) • RF defines Leverage consistent with Moody's historical Regional Bank Survey definition; Commitments >$5M with funded debt to EBITDA>4.0x ◦ Commitments are $4.4B • Not a strategic growth objective; used to support client re
Slide 55: SNC portfolio
55 15.2% 8.2% 7.9% 7.0% 7.0%5.7%5.3% 5.3% 4.6% 33.8% Financial Services Information Manufacturing Wholesale Diversified Industrial Energy Professional, Scientific & Technical Services Healthcare Other (Portfolios <5% of total) $26.1 B SNC portfolio (outstanding balances as of December 31, 2022) • Di
Slide 56: 2023 expectations
56 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 utili
Slide 57: Environmental, Social & Governance
57 Environmental, Social & Governance ESG Governance ESG-related elements of the Strategic Plan, annual budget, and capital planning processBOARD OF DIRECTORS Board-Level Committees NCG Committee ESG strategies, initiatives, policies, and practices, along with related voluntary disclosures and stake
Slide 58: ESG progress and initiatives
58 Promoting financial inclusivity Supporting environmental sustainability Maintaining accountability for our ESG progress ▪ Further integrated ESG into our enterprise-wide strategic planning and risk management processes ▪ Formed a new Technology Committee of the Board of Directors to provide overs
Slide 59: LIBOR Transition
59 LIBOR Transition The Last Act Moving to Final Phase of Transition Path to Completing the Transition From LIBOR For almost two years Regions has been originating loans and derivatives using alternative indexes. Over the past three quarters focus has been on proactive remediation of specific legacy
Slide 60: Acquisitions exceeding expectations
60 Acquisitions exceeding expectations Ascentium Capital(1) EnerBank(2) Origination Growth • 4Q22 origination growth is up 20% from 4Q21 • FY22 origination growth is up 25% from FY21 Cross Marketing • Contributing to growth are transactions originated through cross-marketing relationships with Comme
Slide 61: Appendix
> GENERATING Consistent Sustainable \ Long-term Performance APPENDIX AK REGIONS| 61
Slide 62: Selected items impact
62 Selected items impact Fourth quarter 2022 highlights (1) Non-GAAP, see appendix for reconciliation. (2) Based on income taxes at an approximate 25% incremental rate. 3Q22 regulatory settlement included a $50M civil monetary penalty that is not tax deductible. (3) Items impacting results or trends
Slide 63: Non-GAAP measures definitions
63 Management uses pre-tax pre-provision income (non-GAAP) and adjusted pre-tax pre-provision income (non-GAAP), as well as the adjusted efficiency ratio (non-GAAP) and the adjusted fee income ratio (non-GAAP) to monitor performance and believes these measures provide meaningful information to inves
Slide 64: Adjusted Net Charge-Offs and Ratio
64 Non-GAAP reconciliation Adjusted Net Charge-Offs and Ratio Year-Ended For the Quarter Ended ($ amounts in millions) 2022 2021 12/31/2022 9/30/2022 6/30/2022 3/31/2022 12/31/2021 Net loan charge-offs (GAAP) $ 263 $ 204 $ 69 $ 110 $ 38 $ 46 $ 44 Less: charge-offs associated with the sale of unsecur
Slide 65: Pre-tax pre-provision income (PPI)
65 Non-GAAP reconciliation Pre-tax pre-provision income (PPI) Year Ended Quarter Ended ($ amounts in millions) 2022 12/31/2022 9/30/2022 6/30/2022 3/31/2022 12/31/2021 4Q22 vs. 3Q22 4Q22 vs. 4Q21 Net income available to common shareholders (GAAP) $ 2,146 $ 660 $ 404 $ 558 $ 524 $ 414 $ 256 63.4 % $
Slide 66: NII, non-interest income/expense, and efficiency ratio
66 Non-GAAP reconciliation NII, non-interest income/expense, and efficiency ratio NM - Not Meaningful Quarter Ended ($ amounts in millions) 12/31/2022 9/30/2022 6/30/2022 3/31/2022 12/31/2021 4Q22 vs. 3Q22 4Q22 vs. 4Q21 Non-interest expense (GAAP) A $ 1,017 $ 1,170 $ 948 $ 933 $ 983 $ (153) (13.1) %
Slide 67: NII, non-interest income/expense, and efficiency ratio (twelve months)
67 Non-GAAP reconciliation NII, non-interest income/expense, and efficiency ratio NM - Not Meaningful Twelve Months Ended December 31 ($ amounts in millions) 2022 2021 2022 vs. 2021 Non-interest expense (GAAP) A $ 4,068 $ 3,747 $ 321 8.6 % Adjustments: Contribution to the Regions Financial Corporati
Slide 68: Non-interest income
68 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 69: Non-interest expense
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: Return on average tangible common shareholders' equity
70 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 71: Return on average tangible common shareholders' equity excluding AOCI
71 Year-Ended ($ amounts in millions) 2022 2021 RETURN ON AVERAGE TANGIBLE COMMON SHAREHOLDERS' EQUITY Net income available to common shareholders (GAAP) A $ 2,146 $ 2,400 Average shareholders' equity (GAAP) $ 16,503 $ 18,201 Less: Average intangible assets (GAAP) 6,023 5,435 Average deferred tax li
Slide 72: Tangible Common Ratios
72 Non-GAAP reconciliation Tangible Common Ratios As of and for Quarter Ended ($ amounts in millions, except per share data) 12/31/2022 9/30/2022 6/30/2022 3/31/2022 12/31/2021 TANGIBLE COMMON RATIOS Shareholders’ equity (GAAP) A $ 15,947 $ 15,173 $ 16,507 $ 16,982 $ 18,326 Less: Preferred stock (GA
Slide 73: Forward-Looking Statements
73 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 74: • Our ability to comply with stress testing and capital planning requirements (as part
74 • 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 ability to comply with applicable capit
Slide 75: • Market replacement of LIBOR and the related effect on our LIBOR-based financial products
75 • 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 outlook could, among other negative impa
Slide 76: Generating Consistent, Sustainable Long-term Performance
> GENERATING Consistent Sustainable Krizneterm Performance A REGIONS Ax REGIONS| 76
Regions Financial — Investor Presentation (February 2023) on 6ix