Regions Financial Corporation · NYSE:RF
Regions Financial — Q1 2024 Earnings Presentation
82 slides from Regions Financial's earnings presentation, Apr 25, 2024
Slide 1: Investor Information April - June 2024
Investor Information April - June 2024 Exhibit 99.1
Slide 2: Table of Contents
2 Table of Contents Topic Page # Profile and Strategy 3-11 Asset / Liability Management 12-20 Fees & Expenses 21-27 Business Segment Highlights 28-32 Loans & Deposits 33-39 Capital, Debt & Liquidity 40-42 Technology & Continuous Improvement 43-47 Credit 48-61 Near-Term Expectations 62 Environmental,
Slide 3: Our Banking Franchise
3 Line of business coverage Alabama – 186 Georgia – 117 Iowa – 5 Mississippi – 98 South Carolina – 18 Arkansas – 57 Illinois – 41 Kentucky – 9 Missouri – 49 Tennessee – 196 Florida – 272 Indiana – 40 Louisiana – 80 North Carolina – 6 Texas – 88 Ranked 19th in the U.S. in total deposits(1) Branch loc
Slide 4: Profile evolution and continuous improvement
4 CCAR Loan Loss Rate Profile Evolution Improved Credit Risk Profile Continuous Improvement Proactive Interest Rate Hedging Exited Non-Core Businesses Strategic M&A Top Quartile Profitability $24 $9 2008 2023 Investor CRE ($ in billions) 8.1% 6.9% 2012 2022 Customer Journeys Organization Simplificat
Slide 5: Top Market Share Plays
5 Top Market Share Plays valuable role in the competitive landscape (1) Based on MSA and non-MSA counties using FDIC deposit data as of 6/30/2023; pro-forma for announced M&A transactions as of 4/19/2024. (2) Significant money center bank presence (JPM, BAC, C, WFC) defined as combined market share
Slide 6: Strong In-Market Migration
6 Strong In-Market Migration Converted legacy core markets into growth markets Serving Fast-Growing MSAs Deposits Market Rank(1) Nashville, Tennessee $10.0 3 Tampa, Florida $6.5 5 Atlanta, Georgia $5.8 7 Orlando, Florida $2.7 6 Knoxville, Tennessee $2.7 3 Huntsville, Alabama $2.7 1 Dallas/Ft Worth,
Slide 7: Regions Receives Top Honors
7 Regions Receives Top Honors Regions Bank was recognized as a 2024 Silver Status Military Friendly and Military Spouse Friendly Employer Regions Bank was named a Gallup Exceptional Workplace Award Winner for the 10th consecutive year. For the third consecutive year, Regions Bank was named a Best Pl
Slide 8: First Quarter Overview
8 First Quarter Overview Continue to deliver consistent, sustainable long-term performance (1) Non-GAAP, see appendix for reconciliation. Key Performance Metrics 1Q24 Reported Adjusted(1) Net Income Available to Common Shareholders $343M Diluted Earnings Per Share $0.37 Total Revenue $1.7B $1.8B Non
Slide 9: Regions' Consistent Outperformance
9 Regions' Consistent Outperformance Adjusted PPI(1) Less Net Charge-offs to RWA(2) Regions' earnings, including credit costs, have been top quartile vs peers since 2019 1.96% 1.98% 2.30% 2.47% 2.31% 1.86% 1.95% 1.78% 1.89% 1.96% 1.73% 1.58% RF Peer Median 2019 2020 2021 2022 2023 1Q24 (1) Non-GAAP;
Slide 10: ROATCE: Industry Leading Performance
10 ROATCE: Industry Leading Performance 9.0% 9.7% 11.0% 17.6% 14.9% 9.2% 21.4% 24.1% 21.9% 14.3% 12.0% 11.0% 12.0% 17.0% 14.7% 8.5% 16.5% 19.3% 16.4% 12.9% RF Peer Median 2015 2016 2017 2018 2019 2020 2021 2022 2023 1Q24 ROATCE Performance Trend vs. Peers(1) (1) Non-GAAP; see Appendix for reconcilia
Slide 11: Consistent Top Quartile EPS Growth
11 Consistent Top Quartile EPS Growth 3 Year EPS CAGR 27% 26% 25% 22% 21% 17% 15% 13% 12% 4% 2% (7)% (11)% RF Pe er 1 Pe er 2 Pe er 3 Pe er 4 Pe er 5 Pe er 6 Pe er 7 Pe er 8 Pe er 9 Pe er 1 0 Pe er 1 1 Pe er 1 2 Pe er 1 3 5 Year EPS CAGR 9% 7% 4% 4% 1% 1% 1% —% (1)% (2)% (2)% (3)% (5)% (12)% RF Pe e
Slide 12: Consistent NIM Outperformance
12 4.52% 4.69% 4.15% 4.11% 4.07% 4.15% 4.53% 5.05% 5.68% 5.94% 5.91% 5.92% 5.88% 4.59% 4.79% 3.88% 3.61% 3.41% 3.64% 4.29% 5.10% 5.54% 5.81% 6.07% 6.20% 6.18% RF Peer Median 2018 2019 2020 2021 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 Consistent NIM Outperformance Aided by hedged loan yield & de
Slide 13: Net interest income highlights
13(1) Other includes 1 fewer day, credit interest reversals, loan fees, securities repositioning, and lower cash balances.(2) Market rate impacts include contractual loan, cash and borrowings repricing; fixed asset turnover at higher market rates; securities premium amortization net discount accreti
Slide 14: 2024 NII Range and Assumptions
14 • Stable or easing fed funds rate with flatter yield curve • Less responsive deposit rates if market rates fall (~25% beta) • Stability in deposit balances and mix after normalizing by mid-year • Through hedging, managed NII sensitivity to be mostly neutral to changes in interest rates late in th
Slide 15: Balance sheet profile and interest rate sensitivity
15 • Balance sheet position naturally benefits from higher interest rates (i.e. asset sensitive), supported by ◦ Large floating rate loan mix ◦ Large, stable deposit base as evidenced over multiple rate cycles • Fixed-rate securities and receive-fixed hedges insulate the natural interest rate sensit
Slide 16: Balance Sheet Positioning Advantage
16 Balance Sheet Positioning Advantage Strong deposit franchise and funding position provide an opportunity for flexibility and margin outperformance in an evolving rate environment (1) RF's calc utilizes cash at the Fed and excludes unrealized gain/loss on AFS securities from earning assets. **All
Slide 17: Deposit betas
17 • Regions' deposit composition has led to repricing (betas) among the lowest in the peer group through multiple rising rate cycles • Consistent rate seeking behavior across the last two cycles; full cycle beta driven by magnitude of Fed tightening and duration of tightening cycle • Regions antici
Slide 18: Interest-bearing deposit mix
18 % of 1 Q 24 E nd in g In te re st B ea ri ng D ep os it s Interest-bearing Deposits: $87B (labels represent % of IB Deposits) • Accounts with an intermediate rate • Beta in falling rates: 20-30% • Mostly Consumer/Wealth low rate stable accounts with small account size & customer longevity ◦ $13K
Slide 19: Cash flow hedge notional
19 Notional Fixed Rate Maturity AFS Securities(3) $1.3B 4.8% 1.1 years Debt(3) $1.4B 0.6% 2.5 years Time Deposits(3) $0.3B 5.0% 0.7 years 1 2 3 4 Cash Flow Hedge Notional(1) (1) Floating rate leg of swaps vs overnight SOFR. No BSBY exposure in hedge accounting strategies. (2) Collars use short inter
Slide 20: Securities portfolio
20 • Portfolio constructed to protect against changes in market rates ◦ Duration is fully extended at ~4.6 years as of 03/31/2024; provides offset to long-duration deposit book ◦ ~32% of securities in the portfolio are bullet-like (CMBS, corporate bonds, agency bullets, and USTs) ◦ MBS mix concentra
Slide 21: Non-Interest Income
21 $535 $581 $613 1Q23 4Q23 1Q24 ($ in millions) Change vs 1Q24 4Q23 1Q23 Service charges $148 3.5% (4.5)% Card and ATM fees 116 (8.7)% (4.1)% Capital markets (Ex CVA/DVA) 93 75.5% 24.0% Wealth management income 119 1.7% 6.3% Mortgage income 41 32.3% 70.8% Non-Interest Income (1) Non-GAAP; see appen
Slide 22: Diversified Non-Interest Income
22 Consumer 43% Wealth Management 20% Corporate 37% 1Q24 fee revenue by segment(1) Diversified Non-Interest Income ($ in millions) • Consumer fee income categories include service charges on deposit accounts, card and ATM fees, and mortgage income generated through origination and servicing of resid
Slide 23: Track Record of Expanding Fee Based Services
23 Track Record of Expanding Fee Based Services Proven Non-Interest Income Resiliency $2,109 $2,259 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Adjusted Non-Interest Income(1)(2) Strategic investments & enhanced client capabilities have generated ~ $700M in additional revenue si
Slide 24: Capital Markets
24 Capital Markets Growing products & services that our clients value Our associates delivered results • 1Q24 Capital Markets revenue ex. CVA/DVA of $93M up 78% vs 4Q23 and 24% vs 1Q23 driven by carryover of M&A deals from 2023, increased Investment Grade bond activity, and strong Real Estate multif
Slide 25: Treasury Management
25 • First in the marketplace to launch Visa Commercial Pay-Mobile to provide improved expense tracking and a simplified travel solution • Developed a Cash Flow Advisor tool to provide real-time cash management analysis for clients and prospects • Expanded the integrated billing and payments platfor
Slide 26: Mortgage
26 Mortgage Remains a key component of fee revenue (1) Mortgage Bankers Association – April 2024 Forecast, (2) Includes residential owned portfolio and serviced for others, (3) MBA/Stratmor PGR FY23 Mortgage Income ($ in millions) Strong Performance Industry-Leading Low-Cost Servicer Delivery Effici
Slide 27: Non-interest expense and efficiency ratio
27 $1,027 $1,185 $1,131 52.3% 65.0% 64.3% Non-interest expense Efficiency ratio 1Q23 4Q23 1Q24 $1,025 $1,038 $1,097 $22 52.2% 56.9% 60.6% Adjusted non-interest expense Incremental operational losses Adjusted efficiency ratio 1Q23 4Q23 1Q24 • NIE decreased ~5% on a reported basis including ~$18M incr
Slide 28: Business Segments
28 48% 45% 7% 63% 35% 2% 29% 63% 6% 2% $616M $97B $127B 1Q24 Pre-tax pre- provision income(1) 1Q24 Average deposits 1Q24 Average loans (1) Pie %'s exclude the pre-tax pre-provision income from the Other Segment totaling ($105) million. The Other Segment consists primarily of unallocated Treasury fun
Slide 29: Investments in Our Businesses
29 (1) YTD Treasury Management Revenue Growth, Mar '24 to Mar '23. (2) Total Wealth Management Relationships as of Feb '24 to Feb '23. Investments in Our Businesses Investments in talent, technology and strategic acquisitions continue to pay off CORPORATE CONSUMER WEALTH Mobile app improvements: Spa
Slide 30: Consumer Banking Group
30 Consumer Banking Group Driving growth and customer engagement through strategic investments Continuing to Deliver Strong Results $8.0B MSR bulk acquisition completed in March 2024 Industry leading deposit costs driven by a continued focus on preserving advantageous deposit mix Mobile capabilities
Slide 31: Corporate Banking Group
31 Corporate Banking Group Driving continued long-term performance for our clients & our shareholders SOUNDNESS GROWTHPROFITABILITY Diversified Commercial Real Estate portfolio that represents 15.9% of total loan exposure: • Office 1.6% of total loan exposure • Multi-family 4.2% total loan exposure
Slide 32: Wealth Management Group
32 Wealth Management Group Focus on execution & investments to optimize the client and associate experience Continued showcasing our thought leadership and best thinking through avenues such as social media. Regions Wealth Management LinkedIn Page continues to see follower growth with almost 1,800 n
Slide 33: Loans
33 • Avg and ending loans decreased modestly QoQ • Avg business loans declined ~1% as modest increases associated with the funding up of previously approved investor real estate construction loans were offset by declines in C&I lending ◦ ~$870M of C&I loans were refinanced off- balance sheet through
Slide 34: 1Q24 Average Loan Composition
34 $50.1 $4.8 $0.3 $6.6 $2.3 Commercial and Industrial CRE Mortgage - OO CRE Construction - OO IRE - Mortgage IRE - Construction 1Q24 Average Loan Composition $20.2$5.6 $6.3 $1.3 Mortgage Home Equity Other Consumer Consumer Credit Card Average Consumer Loans $33.4B Average Business Loans $64.1B ($ i
Slide 35: Commercial & IRE Loans
35 Commercial & IRE Loans As of 3/31/24 ($ in millions) Total Commitments Outstanding Balances % Utilization(2) Administrative, Support, Waste & Repair $2,307 $1,525 58% Agriculture 418 239 37% Educational Services 4,290 3,463 43% Energy 4,935 1,572 32% Financial Services - Banking & Trust 10,251 4,
Slide 36: Deposits
36 $128.5 $127.8 $129.0 83.3 80.0 81.1 35.2 36.9 37.1 8.0 7.7 7.8 2.0 3.2 3.0 1Q23 4Q23 1Q24 $129.0 $126.4 $127.1 82.2 79.4 79.2 36.3 36.3 37.1 8.5 7.7 7.7 2.0 3.0 3.1 1Q23 4Q23 1Q24 Deposits Normalization occurring as expected (1) Other deposits represent non-customer balances primarily consisting
Slide 37: Checking Balances & Spending Levels
37 Checking Balances & Spending Levels % Ch an ge v s. 2 01 9 Change in Checking Deposits Change in Debit Activity 2019 Average 1Q22 1Q24 —% 20% 40% 60% Balances and Avg Monthly Consumer & Wealth Debits vs. 2019 • Pre-pandemic, customers maintained a relatively steady ratio of checking balances to d
Slide 38: Diversified Deposit Base
38 Diversified Deposit Base (1) $ in billions as of 3/31/2024. (2) Data and categorization reflects FR 2052a (Complex Institution Liquidity Monitoring Report) methodology. (3) High quality checking account estimates are based on multiple individual account behaviors and activities (e.g., balances an
Slide 39: Deposit Advantage
39 Deposit Advantage Well diversified deposit base vs. Peers (1) As of 12/31/2023. Source: Bank Call Reports / SEC filings. Peers include CFG, CMA, FHN, FITB, HBAN, HWC, KEY, MTB, PNC, SNV, TFC, USB, ZION. ...Resulting in one of the highest mix of FDIC insured deposits amongst peers % of Total Depos
Slide 40: Capital and liquidity
40 • Basel III Endgame - Estimate a low to mid-single digit increase in RWAs under the Expanded Risk Based Approach in addition to the phase-in of AOCI into regulatory capital ◦ CET1 adjusted to include AOCI at 3/31 is estimated at 8.1%(4) • Common Equity Tier 1 (CET1) ratio(1) remained ~10.3%, refl
Slide 41: Tangible Common Equity
41 6.31% 6.09% 5.82% 6.79% 6.42% 8.02% 8.14% 8.36% 8.50% 8.34% TCE Ratio Adjusted TCE Ratio, ex-AOCI 1Q23 2Q23 3Q23 4Q23 1Q24 5% 6% 7% 8% 9% 10% Tangible Common Equity (1) Non-GAAP, see Appendix for reconciliation. • Higher levels of interest rates are generally beneficial to Regions through expansi
Slide 42: Common Equity Tier 1
42 9.9% 10.1% 10.3% 10.3% 10.3% 7.8% 7.8% 7.5% 8.3% 8.1% CET1 Ratio Adjusted CET1 Ratio, Incl. AOCI 1Q23 2Q23 3Q23 4Q23 1Q24 6% 7% 8% 9% 10% 11% 12% Common Equity Tier 1 (1) Current quarter ratios are estimated. (2) Non-GAAP, see Appendix for reconciliation. Common Equity Tier 1 Ratio(1) • CET1 rema
Slide 43: Investing for Growth
43 Investing for Growth Maintaining Focus on Capital Optimization and Expanded Client Capabilities Acquisition of HUD (MAP) License 2014- 2015 2016 2019 20202018 2021 Acquisition of Fannie Mae DUS License Third-party originated auto portfolio ~$2.0B moved to runoff Entered into MSR flow-deal arrange
Slide 44: Empowered by Data & Innovation
44 Empowered by Data & Innovation Regions remains competitive by reserving ~9–11% of revenue for technology spend Next Gen Platforms Next Generation of Customer Experience and Core Banking and Data Platforms Modernization efforts began in 2021 with runway through 2027 to complete the overall program
Slide 45: Digital and authentication improvements
45 Authentication Improvements Launched Identity Proofing in over 1,200 branches – improving identity assurance to protect and secure our customers' branch experiences. Over 41K transactions have been processed with greater confidence to protect our customers' accounts. Delivering Digital-First Solu
Slide 46: Growth in Digital
46 2.31 2.46 2.57 1Q22 1Q23 1Q24 2.73 3.50 4.35 1Q22 1Q23 1Q24 157 166 183 1Q22 1Q23 1Q24 21.5% 22.3% 24.2% 32.9% 32.3% 30.8% 45.6% 45.4% 45.0% 1Q22 1Q23 1Q24 1.9 2.9 6.0 1Q22 1Q23 1Q24 70% 73% 75% 30% 27% 25% 1Q22 1Q23 1Q24 Growth in Digital Mobile Banking Log-Ins (Millions) Customer Transactions(2
Slide 47: Continuous Improvement Framework
47 Continuous Improvement Framework • Making Banking Easier – Be intensely responsive to customer needs • Revenue Growth – Improve effectiveness in generating prudent, profitable, sustainable growth • Efficiency Improvements – Continuously leverage people and technology to improve processes, reduce
Slide 48: Historical Credit Profile
48 0.94% —% 0.50% 1.00% 1.50% 2.00% 2.50% 0.50% —% 0.50% 1.00% 1.50% 2.00% Historical Credit Profile Non-Performing Loans Total Net Charge-Offs 1Q20 1Q24 4Q221Q20 4Q22 1Q24 Average Pre-Pandemic 0.46% Average Pandemic 0.35% Average Pre-Pandemic 1.07% Average Pandemic 0.64% 1Q13 1Q13
Slide 49: Historical Credit Profile
49 0.76% —% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 0.36% —% 0.50% 1.00% Historical Credit Profile Consumer Net Charge-Offs(2) Commercial Net Charge-Offs(1) 1Q20 1Q24 4Q22 1Q20 4Q22 1Q24 (1) Includes C&I, CRE - OO and IRE. (2) The spike in Consumer net charge-offs in late 2013 was associated with
Slide 50: Asset Quality
50 • 1Q annualized NCOs totaled 50 bps, decreasing 4 bps on an reported basis and increasing 11 bps QoQ on an adjusted(1) basis driven by a large restaurant credit and one commercial manufacturing credit • 1Q NPL increase attributable primarily to office, professional services, transportation, and m
Slide 51: Commercial Real Estate
51 Commercial Real Estate (Outstanding balances as of March 31, 2024) Highly Diversified Portfolio (IRE including Unsecured CRE) • Unsecured loans for RE purposes generally have low leverage, with strong access to liquidity ◦ 62% of REIT outstanding balances are investment grade or mapped to an IG r
Slide 52: CRE- Office Portfolio
52 CRE- Office Portfolio (Outstanding balances as of March 31, 2024) (1) $ in Millions. Amounts include IRE and CRE Unsecured loans but exclude Held For Sale loans. Metrics represent 03/31/2024 results except for charge-offs, which are for Q124. (2) Stressed LTV based on GreenStreet's Commercial Pro
Slide 53: CRE- Multi-Family Portfolio
53 CRE- Multi-Family Portfolio (Outstanding balances as of March 31, 2024) Key Portfolio Metrics(1) Balances $ $4,052 % of Total Loans 4.2% NPL $0 NPL/Loans —% Charge-offs $0 Charge-offs / Loans —% ACL $74 ACL/Loans 1.8% • Absent an economic recession or an unexpected further significant increase in
Slide 54: CRE- Senior Housing Portfolio
54 CRE- Senior Housing Portfolio (Outstanding balances as of March 31, 2024) (1) $ in Millions. Metrics exclude ~$200M in non-real estate commercial loans in the Sr. Housing sector; Amounts also exclude Held For Sale loans. Metrics represent 03/31/2024 results except for charge-offs, which are for Q
Slide 55: Allowance for Credit Losses
55 $1,700 $33 $24 $(26) $1,731 Allowance for Credit Losses 03/31/2024 • 1Q allowance increased $31M compared to the prior quarter, resulting in a $152M provision expense • Primary drivers of the net increase in ACL were adverse risk migration, specific reserves for large borrowers, and increases in
Slide 56: Base Economic Outlook
56 Pre-R&S period 1Q2024 2Q2024 3Q2024 4Q2024 1Q2025 2Q2025 3Q2025 4Q2025 1Q2026 Real GDP, annualized % change 1.9 % 1.8 % 2.2 % 2.5 % 2.6 % 2.7 % 2.4 % 2.4 % 2.2 % Unemployment rate 3.8 % 3.9 % 3.9 % 4.0 % 4.1 % 4.1 % 4.0 % 4.0 % 3.9 % HPI, year-over-year % change 5.7 % 5.2 % 3.7 % 2.6 % 2.5 % 3.0
Slide 57: Allowance Allocation
57 As of 3/31/2024 As of 12/31/2023 (in millions) Loan Balance ACL ACL/Loans Loan Balance ACL ACL/Loans C&I $49,701 $730 1.47 % $50,865 $697 1.37 % CRE-OO mortgage 4,788 106 2.21 % 4,887 110 2.25 % CRE-OO construction 306 7 2.36 % 281 7 2.38 % Total commercial $54,795 $843 1.54 % $56,033 $814 1.45 %
Slide 58: Well Positioned for Next Downturn
58 All Other Commercial 3.8% Investor Real Estate 13.8% Financial Services 11.6% CRE Unsecured, including REITs 10.4% Govt. Education 10.2% Consumer Services 8.7% Technology Services 7.6% Manufacturing 7.7% Energy 2.5% Agriculture 0.4% Utilities 3.8% Business Services 7.9% Distribution 6.4% Healthca
Slide 59: Consumer Lending Portfolio
59 Consumer Lending Portfolio • Avg. origination FICO 759 • Current LTV 53% • 98% owner occupied • Avg. origination FICO 772 • Current LTV 36% • 64% of portfolio is 1st lien • Avg. loan size $34,457 • $112M to convert to amortizing or balloon during 2024 • Avg. origination FICO 770 • Avg. new loan $
Slide 60: Leveraged Portfolio
60 $2.7B Leveraged Portfolio (Outstanding balances as of March 31, 2024) • Commitments are $3.6B; 75% of which are funded • Not a strategic growth objective; used to support client relationships • Sponsor-owned clients as a percentage of total portfolio continue to decline • Enhanced centralized und
Slide 61: SNC Portfolio
61 $25.0B SNC Portfolio (Outstanding balances as of March 31, 2024) • Improved portfolio composition and asset quality through focus on lower risk segments • 46% of balances consist of investment grade or select portfolios(1) • 10% of balances are leveraged(2) • Regions is agent or holds a title rol
Slide 62: 2024 Expectations
62 2024 Expectations (1) Non-GAAP, see appendix for reconciliation. (2) The reconciliation with respect to forward-looking non-GAAP measures is expected to be consistent with actual non-GAAP reconciliations included in the attached appendix or in previous filings with the SEC. (3) Expectations assum
Slide 63: Environmental, Social & Governance
63 Environmental, Social & Governance Delivering shared value through robust governance practices GOVERNANCE OF ESG-RELATED RISKS & OPPORTUNITIES Board-Level Oversight Board of Directors • ESG matters arising within the Strategic Plan, capital planning process, and annual budget • Execution of respo
Slide 64: Environmental, Social & Governance
64 Environmental, Social & Governance Delivering shared value through strategic business objectives SHAREHOLDERS Achieving superior economic value by overseeing and managing ESG- related risks and opportunities in line with business strategy CUSTOMERS Offering products and services that align with t
Slide 65: Ascentium & EnerBank
65 Ascentium & EnerBank Ascentium Capital(1) EnerBank(2) Origination Growth • Ascentium Capital loans of $2.5B were flat vs prior quarter • An increasing interest rate environment, inflation, and economic uncertainty are providing headwinds to origination growth and portfolio credit performance Cros
Slide 66: Appendix
> GENERATING Consistent Sustainable \clensterm Performance APPENDIX AW REGIONS] 66
Slide 67: Selected Items Impact First Quarter 2024 Highlights
67 Selected Items Impact First Quarter 2024 Highlights (1) Non-GAAP, see appendix for reconciliation. (2) Based on income taxes at an approximate 25% incremental rate. (3) Items impacting results or trends during the period, but are not considered non-GAAP adjustments. ($ amounts in millions, except
Slide 68: Non-GAAP measures definitions
68 Management uses computations of earnings and certain other financial measures, which exclude certain adjustments that are included in the financial results presented in accordance with GAAP, to monitor performance and believes these measures provide meaningful information to investors. Non-intere
Slide 69: Non-GAAP Reconciliation Non-Interest Expense
69 Non-GAAP Reconciliation Non-Interest Expense Twelve Months Ended December 31 ($ amounts in millions) 2023 2022 2021 2020 2019 2018 2017 2016 Non-interest expense (GAAP) $ 4,416 $ 4,068 $ 3,747 $ 3,643 $ 3,489 $ 3,570 $ 3,491 $ 3,483 Adjustments: FDIC special assessment (119) — — — — — — — Contrib
Slide 70: Adjusted Net Charge-Offs and Ratio
70 Non-GAAP Reconciliation Adjusted Net Charge-Offs and Ratio For the Quarter Ended ($ amounts in millions) 3/31/2024 12/31/2023 9/30/2023 6/30/2023 3/31/2023 Net loan charge-offs (GAAP) $ 121 $ 132 $ 101 $ 81 $ 83 Less: charge-offs associated with the sale of unsecured consumer loans — 35 — — — Adj
Slide 71: Pre-tax Pre-Provision Income (PPI)
71 Non-GAAP Reconciliation Pre-tax Pre-Provision Income (PPI) Quarter Ended ($ amounts in millions) 3/31/2024 12/31/2023 9/30/2023 6/30/2023 3/31/2023 1Q24 vs. 4Q23 1Q24 vs. 1Q23 Net income available to common shareholders (GAAP) $ 343 $ 367 $ 465 $ 556 $ 588 $ (24) (6.5) % $ (245) (41.7) % Preferre
Slide 72: Pre-tax pre-provision income (PPI)
72 Non-GAAP reconciliation Pre-tax pre-provision income (PPI) Quarter Ended Year Ended ($ amounts in millions) 3/31/2024 2023 2022 2021 2020 2019 Net income available to common shareholders (GAAP) $ 343 $ 1,976 $ 2,146 $ 2,400 $ 991 $ 1,503 Preferred dividends (GAAP) 25 98 99 121 103 79 Income tax e
Slide 73: NII, non-interest income/expense, and efficiency ratio
73 Non-GAAP Reconciliation NII, non-interest income/expense, and efficiency ratio NM - Not Meaningful Quarter Ended ($ amounts in millions) 3/31/2024 12/31/2023 9/30/2023 6/30/2023 3/31/2023 1Q24 vs. 4Q23 1Q24 vs. 1Q23 Non-interest expense (GAAP) A $ 1,131 $ 1,185 $ 1,093 $ 1,111 $ 1,027 $ (54) (4.6
Slide 74: Return on average tangible common shareholders' equity
74 Year Ended ($ amounts in millions) 2023 2022 2021 RETURN ON AVERAGE TANGIBLE COMMON SHAREHOLDERS' EQUITY Net income available to common shareholders (GAAP) A $ 1,976 $ 2,146 $ 2,400 Average shareholders' equity (GAAP) $ 16,522 $ 16,503 $ 18,201 Less: Average intangible assets (GAAP) 5,960 6,023 5
Slide 75: Return on average tangible common shareholders' equity
75 Non-GAAP reconciliation Return on average tangible common shareholders' equity Year Ended ($ amounts in millions) 2023 2022 2021 2020 2019 2018 2017 2016 2015 RETURN ON AVERAGE TANGIBLE COMMON SHAREHOLDERS' EQUITY Net income available to common shareholders A $ 1,976 $ 2,146 $ 2,400 $ 991 $ 1,503
Slide 76: Adjusted CET1 Ratio
76 Quarter Ended ($ amounts in millions) 3/31/2024 12/31/2023 9/30/2023 6/30/2023 3/31/2023 ADJUSTED CET1 RATIO Common Equity Tier 1 Capital(1) A $ 12,912 $ 12,976 $ 13,056 $ 12,786 $ 12,420 Adjustments: AOCI gain (loss) on securities(2) (2,264) (2,064) (3,084) (2,490) (2,235) AOCI gain (loss) on de
Slide 77: Non-interest income
77 Non-GAAP reconciliation Non-interest income Year Ended ($ amounts in millions) 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 Non-interest income (GAAP) $ 2,256 $ 2,429 $ 2,524 $ 2,393 $ 2,116 $ 2,019 $ 1,962 $ 2,011 $ 1,937 $ 1,785 $ 2,096 $ 2,201 $ 2,226 Security (gains) losse
Slide 78: Tangible Common Ratios
78 Non-GAAP reconciliation Tangible Common Ratios As of and for Quarter Ended ($ amounts in millions, except per share data) 3/31/2024 12/31/2023 9/30/2023 6/30/2023 3/31/2023 TANGIBLE COMMON RATIOS Shareholders’ equity (GAAP) A $ 17,044 $ 17,429 $ 16,100 $ 16,639 $ 16,883 Less: Preferred stock (GAA
Slide 79: Forward-Looking Statements
79 Forward-Looking Statements This presentation may include forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. The words “future,” “anticipates,” “assumes,” “intends,” “plans,” “seeks,” “believes,” “predicts,” “potential,” “objectives,” “estimates,” “expec
Slide 80: Forward-looking statements risk factors
80 • Our inability to develop and gain acceptance from current and prospective customers for new products and services and the enhancement of existing products and services to meet customers’ needs and respond to emerging technological trends in a timely manner could have a negative impact on our re
Slide 81: Forward-looking statements risk factors
81 • Our ability to comply with stress testing and capital planning requirements (as part of the CCAR process or otherwise) may continue to require a significant investment of our managerial resources due to the importance of such tests and requirements. • Our ability to comply with applicable capit
Slide 82: Generating Consistent Sustainable Performance
> GENERATING Consistent Sustainable Kctonarterm Performance A REGIONS Ax REGIONS| 82