Regions Financial Corporation · NYSE:RF
Regions Financial — Q1 2014 Earnings Presentation
16 slides from Regions Financial's earnings presentation, Apr 22, 2014
Slide 1: 1st Quarter 2014 Earnings Conference Call
1st Quarter 2014 Earnings o Conference Call April 22, 2014
Slide 2: A solid start to 2014
A solid start to 2014 1Q14 Results 1Q14 Accomplishments ‣Net income available to common ‣Achieved quality household shareholders of $311 million or growth g $0.22 per diluted share ‣Recognized as top bank for ‣Experienced $1.1 billion in loan customer experience growth ‣Achieved net checking account
Slide 3: Loans
Loans • Loan growth continues to be driven by Total Loan Balances (1) business lending ($ in millions) • Commercial and industrial loans $74 990 $75 $73 936 $74,990 $73,936 $75,892 892 $74 609 $75,680 $74,609 $75 680 increased 4% • Commercial line utilization increased 28,946 29,156 28,641 28,590 28
Slide 4: Deposits and funding costs
Deposits and funding costs Deposit balances(1) and deposit costs • Total average deposits increased $874 ($ in millions) million from the fourth quarter $93,864 $92,613 $92,080 $92,051 $92,925 12,904 11,423 10,417 9,888 9,419 • Low-cost deposits increased to 90% of total average deposits 18 bps 15 b
Slide 5: Net interest income and net interest margin
Net interest income and net interest margin • Net interest income (FTE) Net interest income and net interest margin ($ in millions) decreased 2% from prior quarter, attributable tt ib t bl tto fewer f days d in i th the $846 quarter and impact of low interest $838 rate environment on loan yields $83
Slide 6: Non-interest revenue
Non-interest revenue • Non-interest revenue down $88 million Non-interest revenue ($ in millions) from fourth quarter; however, fourth $526 $501 $497 $495 quarter included benefits of $56 million 83 85 60 134 $438 • Service charges down, driven by lower 57 seasonal trends and continued changes in 86
Slide 7: Expenses
Expenses • Adjusted expenses(1) declined 4% from 4Q Adjusted non-interest expenses(1) • Troubled debt restructuring (TDR) sale ($ in millions) was finalized and actual expenses were $35 million less than initially estimated $879 $883 • Salaries and benefits declined 2% - $842 $846 seasonal increases
Slide 8: Asset quality
Asset quality Net charge-offs and ratio NPLs and coverage ratio(2) ($ in millions) 54% Decline(1) ($ in millions) 33% Decline in Total NPLs(1) $278 $180 $1,586 $1 506 $1,506 $144 151 $1 354 $1,354 $114 $1,082 $1,070 $82 127 0.99% 124% 118% 0.77% 0.60% 0.67% 0.44% 114% 110% 109% 1Q13 2Q13 3Q13 4Q13 1
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 10.8%, which is well 12.4% above minimum threshold 11 7% 11.9% 11 6% 11.5% 11.7% 11.6% 11 9% • 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
Non-GAAP reconciliation: Non-interest expense The table below presents non-interest expense (GAAP) excluding certain adjustments to arrive at adjusted non-interest expense (non-GAAP). Regions believes that the exclusion of these adjustments provides a meaningful base for period-to-period comparisons
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 are presented in the table below. During the fourth quarter of 2013, Regions made the strategic decision to transfer certain primarily accruing restructured residential f
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), based on Regions’ current understanding of the Final Basel III requirements. In December 2010, the Basel Committee on Banking Supervision (the “Basel Committee”) re
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