Slide 1: 3rd Quarter Earnings Conference Call
3rd Quarter Earnings Conference Call October 20, 2015 ® Exhibit 99.3
Slide 2: Third quarter 2015 results
Third quarter 2015 results 2 *Annualized (1) Available to common shareholders from continuing operations (2) Excluding loans held for sale ($ in millions, except per share data) 3Q15 2Q15 Change Net Income(1) $246 $273 (10%) Diluted EPS(1) $0.19 $0.20 (5%) Diluted EPS Impact from significant items (
Slide 3: Loans
Loans 3 For the quarter: Ending loan balances up $914MM or 1% Business lending achieved solid growth as balances increased 1% Commercial and industrial grew 2% Commitments increased 2% Consumer lending had a strong quarter with every category achieving growth Indirect vehicle loans up 3%
Slide 4: Deposits and funding costs
$94.1 $94.2 $97.5 $97.1 $97.2 3Q14 4Q14 1Q15 2Q15 3Q15 Deposits and funding costs 4 30 bps 29 bps 29 bps 25 bps 25 bps 3Q14 4Q14 1Q15 2Q15 3Q15 Deposit costs Funding costs Ending deposit balances ($ in billions) Average deposit balances ($ in billions) $94.0 $94.0 $95.8 $97.1 $97.2 3Q14 4Q14 1Q15 2Q
Slide 5: Net interest income and net interest margin
$837 $837 $832 $839 $855 3.18% 3.17% 3.18% 3.16% 3.13% 3Q14 4Q14 1Q15 2Q15 3Q15 Net Interest Income (FTE) Net Interest Margin Net interest income and net interest margin Net interest income on a FTE basis increased $16MM or 2% Principal drivers were higher loan balances and balance sheet hedging
Slide 6: Non-interest income
Non-interest income Non-interest income declined following a strong second quarter Mortgage income decreased 15%, primarily related to lower benefit from mortgage servicing rights and related hedge Wealth management income up 5%, driven by insurance income and investment services fee income
Slide 7: Non-interest expense
826 859 840 859 894 110 65 75 1 $826 $969 $905 $934 $895 3Q14 4Q14 1Q15 2Q15 3Q15 Adjusted Non-Interest Expense⁽¹⁾ Selected Items⁽¹⁾ ($ in millions) Non-interest expense Deposit administrative fees increased $31MM Additional expense in 3Q of $23MM related to prior assessments as well as refunds
Slide 8: Asset quality
(1) Excludes loans held for sale (2) Includes commercial and investor real estate loans only (3) The All Other category includes TDRs classified as held for sale for the following periods : $13MM in 3Q14, $29MM in 4Q14, $19MM in 1Q15, $18MM in 2Q15 and $14MM in 3Q15. $75 $83 $54 $46 $60 0.39% 0.42%
Slide 9: Capital and liquidity
81% 82% 80% 83% 83% 3Q14 4Q14 1Q15 2Q15 3Q15 12.7% 12.5% 12.2% 12.1% 11.7% 3Q14 4Q14 1Q15 2Q15 3Q15 Capital and liquidity Repurchased $270MM or 26.6MM shares of common stock and declared dividends of $79MM Transitional basis Basel III Common Equity Tier 1 ratio estimated at 11.0%, well above cur
Slide 10: Expectations for 2015
Expectations for 2015 10 Loans Net Interest Margin Expect total loan growth in the 4% to 6% range on a point-to-point basis and expect to skew at the higher end of the range Commercial and industrial loans expected to drive growth within business lending portfolio Indirect vehicle lending grow
Slide 11: Appendix
11 Appendix
Slide 12: Energy lending
Energy lending 12 Securities portfolio contains ~$240MM of high quality, investment grade corporate grade bonds that are energy related at 9/30/15 ($ in millions) As of 3/31/15 As of 6/30/15 As of 9/30/15 Oilfield Services and supply $1,192 $1,216 $1,095 Exploration and production (Upstream) 1,123
Slide 13: Non-GAAP reconciliation: Non-interest expense and efficiency ratio
13 Non-GAAP reconciliation: Non-interest expense and efficiency ratio NM - Not Meaningful (1) Regions recorded $50 million and $100 million of contingent legal and regulatory accruals during the second quarter of 2015 and the fourth quarter of 2014, respectively, related to previously disclosed matt
Slide 14: Non-GAAP reconciliation: Basel III common equity Tier 1 ratio
Non-GAAP reconciliation: Basel III common equity Tier 1 ratio – fully phased-in pro- forma The calculation of the fully phased-in pro-forma "Common equity Tier 1" (CET1) is based on Regions’ understanding of the Final Basel III requirements. For Regions, the Basel III framework became effective on a
Slide 15: Forward-looking statements
Forward-looking statements The foregoing list of factors is not exhaustive. For discussion of these and other factors that may cause actual results to differ from expectations, look under the captions “Forward-Looking Statements” and “Risk Factors" of Regions' Annual Report on Form 10-K for the year
Slide 16: Regions
A REGIONS