Regions Financial Corporation · NYSE:RF
Regions Financial — Q2 2010 Earnings Presentation
12 slides from Regions Financial's earnings presentation, Jul 27, 2010
Slide 1: Regions Financial 2nd Quarter Earnings Conference Call
Exhibit 99.3 ********* ********* ********* ********* ********* Regions Financial ********* ********* 2nd Quarter Earnings Conference Call ********* July 27, 2010 ********* ********* ********* ********* ********* ********* ********* ********* ********* ********* ********* ********* ********* ********
Slide 2: 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 whi
Slide 3: Summary of Second Quarter 2010 Results
Summary of Second Quarter 2010 Results › Loss per diluted share of $0.28 (loss of $0.11 per share excluding regulatory charge*) › Adjusted pre-tax pre-provision net revenue (PPNR) improves $89 million or 22% › Net interest income increased $25 million and net interest margin increased 10 bps to 2.87
Slide 4: NPA Migration Moderating
NPA Migration Moderating $ millions First Net NPA Reduction $2,000 Since 4Q08 $1,500 $1,000 $500 $0 -$500 2Q09 3Q09 4Q09 1Q10 2Q10 Net NPA Change Gross NPA Additions * Excludes non-performing assets held for sale 2
Slide 5: Loan Loss Provision Reflects Improved Credit Environment
Loan Loss Provision Reflects Improved Credit Environment $ in millions Loan Loss Provision $1,400 $425 $912 $1,025 $1,179 $770 $651 $1,200 $1,000 487 345 70 $800 421 $600 35 $400 680 692 700 651 491 $200 390 $0 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 Net Charge Offs Provision over Net Charge Offs 3
Slide 6: Total TDRs - $1.6B
Consumer TDRs -$1.4B* Total TDRs - $1.6B* 95% are accruing interest $ millions $2,000 $1,600 $1,200 $800 $400 $0 2Q09 3Q09 4Q09 1Q10 2Q10 Residential Mortgage - 65% Home Equity - 20% Accruing Non-Accruing Other Consumer - 4% Commercial - 11% › Modifications are a result of our proactive outreach eff
Slide 7: Loans & Deposits – 2Q10 Linked Quarter Changes
Loans & Deposits – 2Q10 Linked Quarter Changes Targeted declines in Investor Owned CRE with continued focus on growing low-cost deposits Loans Deposits (Linked Quarter Ending Balances Change in billions and % Change) (Linked Quarter Ending Balances Change in billions and % Change) $0.0 ($0.1) ($0.1)
Slide 8: Record Setting Account Growth and Retention Continues to Drive Strength in Customer Deposits
Record Setting Account Growth and Retention Continues to Drive Strength in Customer Deposits › Closely matching 2009’s record pace of new checking 4% year over year growth in average account openings; 488,000 customer deposits through first half of 2010 $100.0 $98.2 $98.0 1.45% › Retention remains b
Slide 9: Net Interest Income Improves Despite Decline in Earning Assets
Net Interest Income Improves Despite Decline in Earning Assets › Net interest margin $870 $863 3.10% climbed 10 bps linked $860 $857 $853 3.00% quarter $850 2.90% › Ongoing improvement in $840 $840 $839 deposit mix and cost with 2.80% substantial remaining $830 2.70% repricing opportunity in $820 ma
Slide 10: Improving Components of Operating Leverage
Improving Components of Operating Leverage Difference ($ in millions) 1Q10 2Q10 $ % Non-interest revenue, as reported $ 812 $ 756 $ (56) -7% - Leveraged lease termination gains 19 - - Securities gains / (losses) 59 - Adjusted non-interest revenue* $ 734 $ 756 $ 22 3% Difference ($ in millions) 1Q10
Slide 11: Capital Ratios Remain Solid
Capital Ratios Remain Solid Proforma 2Q10 - excluding (1) (1)(2) 1Q10 2Q10 TRUPS Total Risk-Based Capital 15.8% 15.9% 15.0% Tier 1 Capital 11.7% 12.0% 11.2% Tier 1 Common 7.1% 7.7% 7.7% (1) Current Quarter ratios are estimated (2) “TRUPS” refers to Trust Preferred Securities 9
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