Regions Financial Corporation · NYSE:RF
Regions Financial — Citi US Financial Services Conference 2013
23 slides from Regions Financial's conference presentation, Mar 6, 2013
Slide 1: Citi US Financial Services Conference
Exhibit 99.1 Citi US Financial Services Conference March 6, 2013 David Turner Chief Financial Officer 1
Slide 2: Why Regions?
Why Regions? • Strong market presence Competitive Position • Competitive product set • Stronger company today than three years ago Proven Track Record • Revenue growth on par with peers • Disciplined expense management • Improving efficiency ratio Opportunity for • Stable net interest margin Outperf
Slide 3: A leading southeastern banking franchise
A leading southeastern banking franchise Company Snapshot December 2012 Associates 23,427 Assets $121B Loans $74B Deposits $95B Branches 1,711 #1 #2 ATMs 2,054 Market Cap* $10.8B #1 #6 #1 • 14th largest full-service bank #4 • Operating in sixteen states; however, #4 seven states represent 85% of tot
Slide 4: Footprint positioning
Footprint positioning Characterized by high market share, high growth markets ’10-’15 Market Population Weighted Average Deposit Top 10 MSAs Deposits Rank Growth Market Share in Regions’ Birmingham, AL $10.1 1 Core Markets 3.4% Nashville, TN $7.0 1 9.6% Market Rank Name Share Tampa, FL $5.0 4 3.7% 1
Slide 5: Stronger company today
Stronger company today Balance Sheet 4Q12 4Q09 Improvement Deposit Costs 0.22% 1.15% 93 bps Total Funding Costs 0.50% 1.45% 95 bps Time Deposits as % of Total Deposits 14% 32% Reduced by half Low-Cost Deposits $82.0B $67.1B 22% Profitability Mortgage Revenue $90MM $46MM 96% Net Interest Margin(1) 3.
Slide 6: Revenue growth – continuing to make progress
Revenue growth – continuing to make progress Growth in Total Revenue Linked Quarter vs Peers 2.2% 0.9% 1.0% 0.5% -0.2% 1.0% 0.3% -0.3% -0.4% -2.0% 4Q11 1Q12 2Q12 3Q12 4Q12 Regions Peer Median Peer banks include BBT, CMA, FHN, FITB, HBAN, KEY, MTB, PNC, STI, USB, WFC, ZION Note: Net interest income o
Slide 7: Regions has the second lowest expense to assets ratio vs peers
Regions has the second lowest expense to assets ratio vs peers and reduced expenses faster than almost all our peers Non-Interest Expense (1) / Average Assets 4.3% 3.9% 3.2% 3.3% 3.4% 3.5% 3.5% 3.5% 2.8% 3.0% 3.0% 3.1% 2.6% Bank RF Bank Bank Bank Bank Bank Bank Bank Bank Bank Bank Bank #1 #3 #4 #5 #
Slide 8: Focused on improved efficiency
Focused on improved efficiency Efficiency Ratio (1) 70.1% Target: Mid to High 67.9% 50s 65.0% 65.3% 64.6% 64.2% 64.3% 64.3% 62.7% 62.8% 4Q11 1Q12 2Q12 3Q12 4Q12 Regions Peer Median (1) Non-GAAP – See appendix for reconciliation Note: Results from Continuing Operations 8 Peer banks include: BBT, CMA,
Slide 9: Net interest margin improves
Net interest margin improves • Net interest margin was up 2 Net Interest Margin vs. Peers bps linked quarter, primarily due to lower deposit costs 3.53% 3.52% 3.51% and interest recoveries 3.47% 3.44% • Opportunities to protect the margin through: • Continued reduction of deposit costs 3.16% • Reten
Slide 10: Continued asset quality improvement
Continued asset quality improvement Significant credit leverage remains Net Charge-Offs and Ratio Allowance for Loan Losses / Total Loans 58% decrease Y-O-Y $430 3.54% $332 2.16% $265 $262 2.59% 1.73% $180 1.39% 1.38% 2.34% 1.89% 0.96% 4Q11 1Q12 2Q12 3Q12 4Q12 4Q11 1Q12 2Q12 3Q12 4Q12 ($ in millions
Slide 11: Solid capital and liquidity
Solid capital and liquidity Tier 1 Common Ratio (1) Loan to Deposit Ratio 10.8% 89% 10.5% 88% 88% 88% 10.0% 87% 9.6% 9.7% 9.9% 10.0% 9.6% 9.8% 8.5% 81% 80% 79% 79% 78% 4Q11 1Q12 2Q12 3Q12 4Q12 4Q11 1Q12 2Q12 3Q12 4Q12 Regions Peer Median Regions Peer Median Estimated Basel III(1) at the end of 4Q12
Slide 12: Creating shared value for our customers, communities, associates and shareholders
Creating shared value for our customers, our communities, our associates and our shareholders through… • Getting a full and detailed view of customer financial needs – 360° View • Deepening customer relationships through cross-sell • Going to market as One bank, One team, One Regions – making referr
Slide 13: Transition to growth through shared value
Transition to growth through shared value Business Services – key focus areas for 2013 • Acquire, retain and deepen relationships through Technology & • Maintain disciplined focus on Defense specialized industries to drive (Charlotte) Healthcare growth: (Nashville) • Healthcare Transportation/ Resta
Slide 14: Transition to growth through shared value
Transition to growth through shared value Wealth Management - key focus areas for 2013 • Broaden and deepen relationships • Grow trust assets under management • Roll out branch-based Financial Consultants in partnership with Cetera • Enhance performance management and coaching culture • Stay focused
Slide 15: Transition to growth through shared value
Transition to growth through shared value Consumer Services – key focus areas for 2013 • Deepen relationships • Attract, retain and expand quality consumer households • Stabilize and grow quality earning assets – get paid for the risks we take • Leverage NOW Banking products to bank the under-banked
Slide 16: Moving forward in 2013
Moving forward in 2013 • Through , maximize opportunities to deepen quality customer relationships • Grow households • Positioned for continued increases in loan production • Indirect auto portfolio • Commercial and Industrial • Credit card • Retention of 15-year fixed rate mortgages • Continue to l
Slide 17: Why Regions?
Why Regions? • Strong market presence Competitive Position • Competitive product set • Stronger company today than three years ago Proven Track Record • Revenue growth on par with peers • Disciplined expense management • Improving efficiency ratio Opportunity for • Stable net interest margin Outperf
Slide 18: Appendix
Appendix Mm REGIONS «
Slide 19: Forward-looking statements
Forward-looking statements This presentation may include forward-looking statements which reflect Regions’ current views with respect to future events and financial performance. The Private Securities Litigation Reform Act of 1995 (“the Act”) provides a “safe harbor” for forward-looking statements w
Slide 20: Non-GAAP reconciliation: non-interest income / expense, fee income ratios and efficiency ratios
Non-GAAP reconciliation: non-interest income / expense, fee income ratios and efficiency ratios The table below presents computations of the efficiency ratio(non-GAAP), which is a measure of productivity, generally calculated as non-interest expense divided by total revenue. The table also shows the
Slide 21: Non-GAAP reconciliation: tier 1 common
Non-GAAP reconciliation: tier 1 common The following table provides calculations of Tier 1 capital (regulatory) and "Tier 1 common equity" (non-GAAP). Traditionally, the Federal Reserve and other banking regulatory bodies have assessed a bank's capital adequacy based on Tier 1 capital, the calculati
Slide 22: Non-GAAP reconciliation: Basel III
Non-GAAP reconciliation: basel III The following table provides calculations of Tier 1 common, based on Regions’ current understanding of Basel III requirements, as proposed by the U.S. Notices of Proposed Rulemaking released in June 2012. Regions currently calculates its risk-based capital ratios u
Slide 23: Ma REGIONS
Ma REGIONS
Regions Financial — Citi US Financial Services Conference 2013 on 6ix