Regions Financial Corporation · NYSE:RF
Regions Financial — Q2 2014 Earnings Presentation
16 slides from Regions Financial's earnings presentation, Jul 22, 2014
Slide 1: 2nd Quarter 2014 Earnings Conference Call
2nd Quarter 2014 Earnings o Conference Call July 22, 2014
Slide 2: Steady progress: 2Q14 Highlights
Steady progress 2Q14 Hi hli ht Highlights Revenue Increased 2% • Net income available to common shareholders of $292 million or $0.21 per diluted Adjusted efficiency Improved 270 bps share ratio(1) • Number off customers and quality households increased Loans Increased 1.1% again in 2Q • Focused F d
Slide 3: Loans
Loans Ending g Loan Balances • Business lending portfolio up 1%; production ($ in millions) up 22% $74,990 $75,892 $74,609 $75,680 $76,513 • Commercial & Industrial loans upp 3% 28,946 29,156 , 28,641 28,590 , 28,796 QoQ 46,044 46,736 45,968 47,090 47,717 • Commercial line utilization increased 30 b
Slide 4: Deposits and funding costs
Deposits and funding costs Ending Deposit Balances Average Deposit Balances ($ in millions) ($ in millions) $93,822 $92,613 $92,080 $92,051 $92,925 $92,989 $92,454 $92,321 $92,453 $93,393 8,951 , 11,423 , 10,417 , 9,888 9,419 9,067 10 797 10,797 10 066 10,066 9 676 9,676 9,219 81 657 81,657 82 255 8
Slide 5: Net interest income and net interest margin
Net interest income and net interest margin • Net interest income (FTE) increased Net interest income and net interest margin ($ in millions) $6 million from prior quarter, while nett interest i t t margin i declined d li d 2 b basisi $846 points $838 $837 $831 • Net interest income positively iimpa
Slide 6: Non-interest revenue
Non-interest revenue Non-interest revenue ($ in millions) • Non-interest revenue grew $19 million, $526 $497 $495 or 4% from 1Q $457 85 60 134 $438 • Service charges increased 1%, aided 57 66 87 111 by increases in checking accounts in 84 90 89 first half of the year 69 52 43 40 43 82 • Card and ATM
Slide 7: Expenses
Expenses Adjusted non-interest expenses(1) • Adjusted non-interest expenses(1) ($ in millions) declined 2% from 1Q $879 $883 • Salaries and benefits declined 3%, $846 related to seasonal payroll taxes in $828 $ $827 1Q and lower headcount • Deposit administrative fees declined $9 million, illi prima
Slide 8: Asset quality
Asset quality Net charge-offs and ratio NPLs and coverage ratio(3) ($ in millions) 53% Decline(1) ($ in millions) 40% Decline in Total NPLs(1) $278 $1,506 137% 151 $1,354 $144 $1 082 $1,082 $ $1,070 $114 $899 $82 $67 124% 118% 0.77% 0.67% 114% 0.60% 0.44% 0.35% 109% 2Q13 3Q13 4Q13 1Q14 2Q14 2Q13 Q 3
Slide 9: Capital and liquidity
Capital and liquidity • Basel III Common Equity Tier 1 Tier 1 capital ratio(1) ratio(1)(2) estimated to be approximately 11.0%, which is well 12.5% above minimum threshold 11 6% 11.5% 11.7% 11.6% 11 7% 11 8% 11.8% • Liquidity at both the bank and holding company remains solid with a loan to deposit
Slide 10: Appendix
Appendix A REGIONS 10 PSS SS SL PLP SP PPL PSP LP LLP LLP LP LSP LPL LLLP LLL Lf Z|
Slide 11: Non-GAAP reconciliation: Non-interest expense and efficiency/fee income ratios
Non-GAAP reconciliation: Non-interest expense and efficiency/fee income 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 fee income rati
Slide 12: Non-GAAP reconciliation: Net charge-off ratio
Non-GAAP reconciliation: Net charge-off ratio Select calculations for annualized net charge-offs as a percentage of average loans (GAAP) are presented in the table below. During the fourth quarter of 2013, Regions made the strategic decision to transfer certain primarily accruing restructured reside
Slide 13: 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 14: Non-GAAP reconciliation: Basel III common equity Tier 1
Non-GAAP reconciliation: Basel III common q y Tier 1 equity The following table provides calculations of “common equity Tier 1" (CET1) (non-GAAP), based on Regions’ current understanding of the Final Basel III requirements. In December 2010, the Basel Committee on Banking Supervision (the “Basel Com
Slide 15: Forward-looking statements
Forward-looking statements This presentation may include forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995, which reflect Regions’ current views with respect to future events and financial performance performance. Forward-looking Forward looking statement
Slide 16: Regions
A. REGIONS