Regions Financial Corporation · NYSE:RF
Regions Financial — Q4 2012 Earnings Presentation
19 slides from Regions Financial's earnings presentation, Jan 22, 2013
Slide 1: Regions Financial 4th Quarter 2012 Earnings Conference Call
Exhibit 99.3 Regions Financial 4th Quarter 2012 Earnings Conference Call January 22, 2013 REGIONS
Slide 2: 2012 Financial Highlights: A Transformational Year for Regions
2012 –ratings Completed 2Credit REGIONSA TRANSFORMATIONAL divestiture improvement of Morgan Enhanced Keegan YEAR technology Issued FOR REGIONS ~$900 platform million Issued 2012ofFinancial preferred common Highlights stock stock Redeemed of $500 Netmillion Income preferred and From redeemed stock Co
Slide 3: Regions Financial Highlights
4Q12-31% Interest (82) Common Shareholders 3Operations REGIONS reconciliation FINANCIAL Revenue1 (135) (250) ($0.11) $ (602) 312 -58% 490 $0.22 HIGHLIGHTS 273 $Loan 521 301 (39) $0.19 524 $Loss -13% 261 3($0.03) 1% Reserve $ 408 ($ (40) 34 in-14% 302% -13% 7% millions, Reduction Adjusted $0.30 Share
Slide 4: Continued Growth in Commercial and Indirect Auto Loan Portfolios
CONTINUED in$ 47,569 billion, 4linked REGIONS $24,748 quarter 46,622 or 9%$24,310 from to 46,574 GROWTH 4.21%, the 4Q11 45,987 prior primarily IN 1Q12 year 45,254 COMMERCIAL 2Q12 Commercial due4Q11 to3Q12 interest 1Q12 4Q12 and ANDrecoveries 2Q12 industrial Total INDUSTRIAL 3Q12 Loan on commitments
Slide 5: Funding Mix Continues to Improve as Deposit Costs Declined
FUNDING 40 in 5funding REGIONS 4Q12 bps 37 costs from bps MIXimproved 20% 32 CONTINUES bps in 28 4Q11 to bps 50Deposit 22 bps, bps TOdown IMPROVE 76,244 repricing 18 78,928 bps opportunities AS from 78,893 DEPOSIT one year 79,968 remain, COSTS ago82,031 maturities DECLINED 4Q11include: 1Q12 6 BPS 2Q
Slide 6: Net Interest Margin Improves
NET acceleration for 6Net REGIONS aInterest relatively INTERESTMargin of stable deferred MARGIN margin fees IMPROVES on in 2013 end ofNet year Net Interest payoffs interest Income added margin and about was Net2 up Interest bps2 to bps the Margin linked margin quarter, $858 Opportunities $850 due$83
Slide 7: Service Charges and Mortgage Income Drive Non-Interest Revenue Growth
SERVICE 90 related reached 7been REGIONS 90refinanced 106 to$1.6 an 263 CHARGES increase billion 254 244 ininHARP INCOME 254 service 233 II charges 4Q11 loans, DRIVES1Q12 exceeding income NON-INTEREST 2Q12 Mortgage our 3Q12 original 4Q12 revenues REVENUE goal Service ofincreased $1charges billion GR
Slide 8: Adjusted Non-Interest Expenses Improve
ADJUSTED expenses prior $840 8GAAP, REGIONS quarter $849 see decreased 4Q11 appendix Overall NON-INTEREST 1Q12 $72013 formillion 2Q12 GAAP expenses 3Q12 over EXPENSES1 to Non-GAAP 4Q12 prior from quarter Other continuing IMPROVE reconciliation Real or 54% operations Estate Held Non-interest andforar
Slide 9: Continued Momentum in Asset Quality Metrics
CONTINUED Decline* $1,915 92Q12 REGIONS 3Q12 $1,884 $6,370 4Q12 115% MOMENTUM $5,979 *Year-over-year 116% millions $1,681 IN$5,436 ASSET 113% change $5,131 109% QUALITY **Excludes 111% $4,492 METRICS 109% loans 4Q11107% held 1Q12 Net for 105% 2Q12 Charge-Offs sale 4Q11 3Q121Q12 4Q12 58%2Q12 NPLs Dec
Slide 10: Capital Ratios Remain Strong
CAPITAL market 3.9% Common issued 10 REGIONS 10.5% to demand the Ratio RATIOS 11.0% US(2) increases Treasury 10.8% 11.5% REMAINSuccessfully and 10.5% 12.0% associated STRONG 10.0% 9.4%issued (1) 9.6% Basel warrant 4Q11 preferred 8.5% III1Q12 (4) Tier (1) Based 12Q12 stock 4Q11 Common onof 3Q12 1Q12
Slide 11: Appendix
11 REGIONS APPENDIX
Slide 12: Forward-Looking Statements
FORWARD-LOOKING Litigation results based assumptions other described Future foregoing and yields, borrowers or Possible issued including liquidity services manage inherent increased Regions’ downgrades backed Regions party. developments captions Reports should 12 REGIONS worsening other factors ›on
Slide 13: Non-GAAP Reconciliation: Pre-Tax Pre-Provision Income
NON-GAAP from comparisons, to ongoing GAAP company, adjustments (loss) expense 26 Leveraged termination provision million 13 REGIONS assess 117 continuing from financial 295 for (GAAP) operations. the income they lease 6/30/2012, continuing 4costs does performance RECONCILIATION: 12.1% which have me
Slide 14: Non-GAAP Reconciliation: Adjusted Earnings from Continuing Operations
NON-GAAP accordance provides financial and consolidated of Although for investment amounts (602) shareholders discontinued early continuing 1,387 share Asset costs pending The deductible provision 14 REGIONS the analyses adjusted the settlement termination of from REIT Management 1,258 Company Board
Slide 15: Non-GAAP Reconciliation: Non-Interest Income/Expense
aNON-GAAP revenue. arrive (non-GAAP), made to-period management indications $management. -100.0% (20) 830 gains, 0.5% measure 33850 -2.3% 3.8% Adjusted to at netarrive 839 adjusted Management Branch comparisons, -of $$of - (222) (7) 858 (22) productivity, to RECONCILIATION: Quarter ongoing which at
Slide 16: Non-GAAP Reconciliation: Tier 1 Common
NON-GAAP banking Comprehensive While formally disclosed capital amounts each denominator risk-weighted Ended 16,499 (35) (regulatory) (3,429) N/O 16 REGIONS (238) 10.8% ofnot ($ adequacy Accumulated the (3,419) regulatory of defined amounts calculations. prescribed (336) four off-balance 10.5% $(ris
Slide 17: Non-GAAP Reconciliation: Tier 1 Capital Ratio
NON-GAAP common on amounts (65) (33) Preferred exclude excluding 17 REGIONS the (202) (33) last Series in stock (33) Stock Series (54) day millions) RECONCILIATION: (36) A of was 60 retirement APreferred the 69 (35) Preferred retired 12/31/12 quarter Non-qualifying Qualifying on (reduction Stock for
Slide 18: Non-GAAP Reconciliation: Basel III Estimate
NON-GAAP Proposed Committee June Basel will feedback formally calculations. the (1) Common credit by 18 REGIONS Basel (4,968) same be 2012, III card a defined phase will III. basis. received Rulemaking (non-GAAP) relationship Adjustments, U.S. onThe Since RECONCILIATION: change Banking in Estimate R
Slide 19: Regions
REGIONS