Slide 1: Regions Financial 2nd Quarter Earnings Conference Call
Exhibit 99.3 Regions Financial 2nd Quarter Earnings Conference Call July 24, 2012
Slide 2: Prudent and Profitable Growth Driven by Solid Business Performance
PRUDENT AND PROFITABLE GROWTH DRIVEN BY SOLID BUSINESS PERFORMANCE • Experienced continued growth in 2Q12 Financial Highlights commercial and industrial portfolio • Conservative low loan-to-deposit ratio Diluted EPS $0.20 provides considerable flexibility to take advantage of lending opportunities t
Slide 3: 2Q12 Financial Highlights
2Q12 FINANCIAL HIGHLIGHTS ($ in millions, except EPS) 2Q11 1Q12 2Q12 2Q12 vs. 1Q12 2Q12 vs. 2Q11 From Continuing Operations Net Interest Income $ 856 $ 827 $ 838 $ 11 1% $ (18) -2% Non-Interest Revenue 543 524 507 (17) -3% (36) -7% Non-Interest Expense 956 913 842 (71) -8% (114) -12% 1 443 438 503 6
Slide 4: Commercial and Industrial Loans Grew 4% Over Last Quarter
COMMERCIAL AND INDUSTRIAL LOANS GREW 4% OVER LAST QUARTER Commercial and Industrial Loan Balances* 9% increase Y-O-Y • Commercial & industrial loan balances $23,953 $24,310 $24,748 $25,650 on an average basis increased $902 $23,506 million, or 4% linked quarter reflecting strength in our middle mark
Slide 5: Funding Mix Continues to Improve as Deposit Costs Declined 5 bps
FUNDING MIX CONTINUES TO IMPROVE AS DEPOSIT COSTS DECLINED 5 BPS Deposit Balances* and Deposit Costs • Avg. time deposits as a % of avg. deposits decreased to 18% in 2Q12 $96,122 $96,147 $95,155 $96,061 $95,863 from 23% in 2Q11 22,506 21,369 19,774 19,053 17,175 • Deposit repricing opportunities rem
Slide 6: Net Interest Margin Improves 7 bps
NET INTEREST MARGIN IMPROVES 7 BPS • Net interest margin favorably impacted by Net Interest Income and Net Interest Margin¹ improvements in deposit costs, lower excess cash and lower non-accrual $864 $859 $858 $839 $850 balances 3.16% • Cash reserves negatively impacted net interest margin 8 bps in
Slide 7: Non-Interest Revenue Driven by 17% Increase in Mortgage Income
NON-INTEREST REVENUE DRIVEN BY 17% INCREASE IN MORTGAGE INCOME Fee Income by Quarter 1 • Non-interest revenue decreased 3% linked quarter $519 $516 $505 $490 $488 66 52 55 • Mortgage revenues increased 17% 27 60 57 25 - 15 28 50 26 14 26 linked quarter and 80% over last year 68 16 15 57 77 70 44 90
Slide 8: Reduction in Credit Costs Drive Non-Interest Expenses Down 8% Linked Quarter
REDUCTION IN CREDIT COSTS DRIVE NON-INTEREST EXPENSES DOWN 8% LINKED QUARTER 1 Non-Interest Expenses • Diligent and continued focus on reducing $956 $913 expenses through efficiencies $871 $850 $842 • Non-interest expenses were 8% lower than prior quarter and down 12% year-over-year • Other real est
Slide 9: Continued Momentum in Asset Quality Metrics
CONTINUED MOMENTUM IN ASSET QUALITY METRICS NPL Gross Migration NPLs and Coverage Ratio 43% Decline* 31% Decline in Total NPLs* $755 118% $2,784 $2,710 $2,372 120% $555 $561 116% $2,151 $381 $1,915 $315 112% 109% 2Q11 3Q11 4Q11 1Q12 2Q12 2Q11 3Q11 4Q11 1Q12 2Q12 NPLs** ALL / NPL** Business Services
Slide 10: Strong Capital Ratios
STRONG CAPITAL RATIOS • The impact of the warrant redemption related to the Loan to Deposit Ratio (4) repayment of Series A preferred stock was $45 million during the second quarter 84% 83% 81% 80% • Basel III Tier 1 Common ratio estimated under the 79% new proposed rules at 8.0% • Low loan to depos
Slide 11: Appendix
APPENDIX Ms REGIONS 4
Slide 12: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS 12
Slide 13: Non-GAAP Reconciliation: Net Income / (Loss) and Earnings Per Share
NON-GAAP RECONCILIATION: NET INCOME / (LOSS) AND EARNINGS PER SHARE The table below presents earnings (loss) per share from continuing operations, excluding preferred dividends and accretion (non-GAAP). The table also presents computations of earnings (loss) and certain other financial measures, exc
Slide 14: Non-GAAP Reconciliation: Pre-Tax Pre-Provision Income
NON-GAAP RECONCILIATION: PRE-TAX PRE-PROVISION INCOME The Pre-Tax Pre-Provision Income from Continuing Operations table below presents computations of pre-tax pre-provision income from continuing operations excluding certain adjustments (non-GAAP). Regions believes that the exclusion of these adjust
Slide 15: Non-GAAP Reconciliation: Fee Income Ratios and Efficiency Ratios
NON-GAAP RECONCILIATION: FEE INCOME RATIOS AND EFFICIENCY 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 ratio (non-GAAP), general
Slide 16: 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 17: Non-GAAP Reconciliation: Tier 1 Capital
NON-GAAP RECONCILIATION: TIER 1 CAPITAL Regions' Series A preferred stock was repurchased on April 4, 2012 and the warrant to purchase 48.3 million shares of Regions common stock was retired on May 2, 2012. The following table presents the calculations of Tier 1 capital and the Tier 1 capital ratio,
Slide 18: Non-GAAP Reconciliation: Basel III
NON-GAAP RECONCILIATION: BASEL III The following table provides calculations of Tier 1 common equity (non-GAAP), based on Regions’ current understanding of Basel III requirements, as proposed by the U.S. Notices of Proposed Rulemaking released in June 2012. Regions currently calculates its risk-base
Slide 19: Regions
REGIONS