Slide 1: 2nd Quarter Earnings Conference Call
2nd Quarter Earnings Conference Call July 19, 2016 Exhibit 99.3
Slide 2: 2nd quarter 2016 results
2nd quarter 2016 results • Generated positive operating leverage of 4%(2) on an adjusted basis year-to-date • Achieved year-to-date adjusted efficiency ratio of 62.3%(2) • Expanded customer base as checking accounts, households, credit cards and wealth relationships grew • Total adjusted revenue (FT
Slide 3: Continued loan growth
Continued loan growth Business Lending Consumer Lending 2Q15 3Q15 4Q15 1Q16 2Q16 49.8 50.7 50.5 51.0 51.2 29.4 29.9 30.3 30.5 30.8 ($ in billions) Quarter-over-Quarter: • Loan and lease balances up 1% • Consumer lending experienced another strong quarter with balances up 1% and production up 20% • A
Slide 4: Prudently managing deposits; strong growth in consumer
Prudently managing deposits; strong growth in consumer Low-cost deposits Time deposits + Other 2Q15 3Q15 4Q15 1Q16 2Q16 88.9 89.1 89.7 90.4 90.2 8.2 $97.1 8.1 $97.2 7.8 $97.5 7.4 $97.8 7.3 $97.5 ($ in billions) 4 Consumer Bank Corporate Bank Wealth Management Other 2Q15 3Q15 4Q15 1Q16 2Q16 53.1 52.9
Slide 5: Net interest income and other financing income and net interest margin
Net interest income and other financing income and net interest margin Net Interest Income and Other Financing Income (FTE) Net Interest Margin 2Q15 3Q15 4Q15 1Q16 2Q16 $839 $855 $856 $883 $869 3.16% 3.13% 3.08% 3.19% 3.15% Quarter-over-Quarter: • Net interest income and other financing income (FTE)
Slide 6: Non-interest income growth driven by revenue diversification initiatives
Non-interest income growth driven by revenue diversification initiatives 2Q15 3Q15 4Q15 1Q16 2Q16 41 38 46 39 37 38 46 66 54 75 69 68 97 102 100 106 103 90 93 96 95 99 168 167 166 159 166 96 13 12 6 590 497 989 514 506 1,000 526 1,182 1,030 (1) Non-GAAP; see appendix for reconciliation (2) Total Wea
Slide 7: Expenses: Focused on what we can control in an uncertain environment
Expenses: Focused on what we can control in an uncertain environment 2Q15 3Q15 4Q15 1Q16 2Q16 859 894 861 843 889 75 1 12 26 26 Quarter-over-Quarter: • Expenses increased $46MM or 5.3%; adjusted expenses increased $46MM or 5.5%(1) • Total salaries and benefits increased $5MM ◦ Market value adjustmen
Slide 8: Net charge-offs, NPLs and criticized and classified loans
Net Charge-Offs Net Charge-Offs ratio 2Q15 3Q15 4Q15 1Q16 2Q16 $46 $60 $78 $68 $72 0.23% 0.30% 0.38% 0.34% 0.35% NPLs Coverage Ratio 2Q15 3Q15 4Q15 1Q16 2Q16 $751 $789 $782 $993 $1,025 149% 141% 141% 116% 112% Classified Loans Special Mention 2Q15 3Q15 4Q15 1Q16 2Q16 1,787 1,838 1,937 2,640 2,468 1,
Slide 9: Industry leading capital and liquidity ratios
Industry leading capital and liquidity ratios 2Q15 3Q15 4Q15 1Q16 2Q16 12.1% 11.7% 11.7% 11.6% 11.6% 2Q15 3Q15 4Q15 1Q16 2Q16 11.1% 10.8% 10.7% 10.7% 10.7% 2Q15 3Q15 4Q15 1Q16 2Q16 83% 83% 83% 83% 84% • Returned $258MM to shareholders, including the repurchase of $179MM of common stock and $79MM in
Slide 10: 2016 Expectations
2016 Expectations • Average loan growth of 3% - 5%(1); expect to track toward lower end of range • Average deposits relatively stable(1)(2) • Net interest income and other financing income up 2% - 4%; assuming no rate increases, expect to be at mid-point of range • Adjusted non-interest income up 4%
Slide 11: Appendix
Appendix Ax REGIONS :
Slide 12: Energy lending overview
• Total outstandings and commitments declined primarily due to paydowns and payoffs • Allowance for loan and lease losses was 9.4% of direct energy balances at 6/30/16 vs 8.0% at 3/31/16 • No second lien exposure outstanding within the energy portfolio • Leveraged loans account for 14% of energy rel
Slide 13: Energy lending - Oil Field Services and Exploration & Production detail
Energy lending - Oil Field Services and Exploration & Production detail Type As of6/30/16 # of Clients* Commentary Marine $457 9 Client selection is strong with ~61% of exposure tied to clients with contract protection through 2016. Expect some additional stress into 2017 as E&P companies focus on s
Slide 14: Loan balances by select states: Texas, Louisiana
Loan balances by select states Texas Louisiana Note: Intelligence from our customer assistance program (CAP) reveals no noticeable increase in assistance requests in these markets to date. Commercial - Non-Energy, $4,353 Investor Real Estate, $1,451 Consumer Real Estate Secured, $918 Consumer Non-Re
Slide 15: Loan balances by select states: Alabama, Mississippi
Loan balances by select states Alabama Mississippi Commercial - Non- Energy, $5,283 Investor Real Estate, $355 Consumer Real Estate Secured, $3,569 Consumer Non-Real Estate Secured, $875 Commercial - Energy (Direct), $38 Commercial - Non-Energy, $1,455 Investor Real Estate, $183 Consumer Real Estate
Slide 16: Non-GAAP reconciliation: Non-interest income, non-interest expense and efficiency ratio
Non-GAAP reconciliation: Non-interest income, non-interest expense and efficiency ratio NM - Not Meaningful (1) Regions recorded $3 million, $50 million and $100 million of contingent legal and regulatory accruals during the second quarter of 2016, the second quarter of 2015, and the fourth quarter
Slide 17: Non-GAAP reconciliation continued: YTD non-interest income, expense, efficiency ratio and operating leverage
Non-GAAP reconciliation continued: YTD Non- interest income, non-interest expense, efficiency ratio and operating leverage Six Months Ended June 30 ($ amounts in millions) 2016 2015 2016 vs. 2015 ADJUSTED EFFICIENCY AND OPERATING LEVERAGE RATIO, ADJUSTED NON-INTEREST INCOME/EXPENSE- CONTINUING OPERA
Slide 18: 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 (1) Current quarter amounts and the resulting ratio are estimated. (2) Regions continues to develop systems and internal controls to precisely calculate risk-weighted assets as required by Basel III on a fully
Slide 19: 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. Forward-looking statements are not based on historica
Slide 20: Forward-looking statements continued
Forward-looking statements continued 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 fo
Slide 21: Regions
A. REGIONS