Regions Financial Corporation · NYSE:RF
Regions Financial — Investor Day (February 2019)
30 slides from Regions Financial's investor day presentation, Feb 27, 2019
Slide 1: Investor Day 2019: Managing for the long-term
EExhibit 99.1 Investor Day 2019 Managing for the long‐term John Turner | President and Chief Executive Officer
Slide 2: John Turner, President and Chief Executive Officer
John Turner President and Chief Executive Officer John Turner is president and chief executive officer of Regions Financial Corporation. He leads the company’s executive leadership team. Effective July 2, 2018, Turner became the chief executive officer and was appointed to Regions’ board of director
Slide 3: Achieved all of our long-term targets established at Investor Day 2015
Achieved all of our long‐term targets established at Investor Day 2015 Adjusted ROATCE (1) Adjusted Efficiency Ratio (1) Adj. Earnings per Share Growth(1)(2) 16.5% <60% 24% 16% 59.3% 14% 19% Excluding 15% Tax Reform 12% 2018 Target 2018 Results 2018 Target 2018 Results 2018 Target 2018 Results Range
Slide 4: Solid execution of strategic plan
Solid execution of strategic plan Significant progress over the last three years Operating Effectiveness Revenue Growth & Diversification Efficiency Improvements ✓ Household & checking growth ✓ Total Revenue increased ✓ Lowered efficiency ratio ✓ Amplified focus on risk adjusted ✓ Launched new produ
Slide 5: Appropriate capital allocation continues to be a priority
Appropriate capital allocation continues to be a priority Creating shareholder value through increased focus on risk adjusted returns We made challenging decisions in Rigorous processes in place to manage order to optimize our capital Business / Products / Relationships Disciplined focus on relation
Slide 6: Total shareholder return 3rd highest among peers since 2015 Investor Day
Total shareholder return 3rd highest among peers since 2015 Investor Day 100% 77% 72% 63% 62% 52% 47% 47% 46% 46% 42% 32% 27% 26% 12% Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 Peer 10 Peer 11 Peer 12 Peer 13 Peer 14 Source: Bloomberg; time period 11/19/2015 to 2/19/2019; Peers i
Slide 7: Why Regions?
Why Regions? 1 FOOTPRINT advantage 2 Valuable DEPOSIT FRANCHISE 3 Focus on risk adjusted returns and PROFITABILITY ENHANCED risk management and governance 4 infrastructure Simplify and Grow underpins LONG‐TERM 5 PERFORMANCE INVESTOR DAY 2019 | Overview | 7
Slide 8: Overview
INVESTOR DAY 2019 | Overview | 8
Slide 9: Looking ahead…how we will deliver
Looking ahead…how we will deliver Lean Into Our Continuously Drive Innovation Make Strategic Strengths Improve Through Digital and Disciplined and Data Investments Strategy underpinned by relationship banking approach INVESTOR DAY 2019 | Overview | 9
Slide 10: Strategy begins with our strengths
Strategy begins with our strengths Customer Team Culture Markets Enterprise Risk Focus Management Commitment to Attracting, retaining Shared value is at the Stable funding and Consistent and customer and developing foundation of our profitability from strong risk culture experience talent
Slide 11: Longstanding commitment to our customers
Longstanding commitment to our customers Customer Focus Outstanding customer service Customer expectations are changing • High customer loyalty and primacy • Value added omni‐channel experience • Brand favorability • Enhanced digital experiences • Third‐party recognition • Broad product sets and ser
Slide 12: Strong team and cultural foundation of honesty, integrity, and trust
Strong team and cultural foundation of honesty, integrity, and trust Team and Culture Shared Value Company Values Go‐To‐Market Our deliberate, prescriptive approach that puts the customers’ needs first Customers Shareholders Recruiting Top Talent Communities Associates Lean into strengths | Continuo
Slide 13: Top market share plays a valuable role in the competitive landscape
Top market share plays a valuable role in the competitive landscape Markets th (1) Markets with top 5 market share • Ranked 15 nationally in total deposits • 86% of deposits in 7 states: AL, TN, FL, LA, MS, GA, AR • Top 5 or better market share in ~70% of MSAs across 15‐state footprint(2) • ~70% of
Slide 14: Presence in strong growth markets
Presence in strong growth markets Markets (1) Population Growth vs. Peers (2019‐2024) More than 60% of top(2) MSA’s are projected to grow faster than the national average Peer 1 5.1% Market ‘19‐’24 Population Top MSAs Deposits Rank (2) Growth 3.6% ($ in Billions) Nashville, TN $7.6 3 Peer 2 3.6% Tam
Slide 15: Our footprint has significant economic advantages
Our footprint has significant economic advantages Markets Jobs Population Footprint Retirees 42% of all new jobs 51% of all U.S. 35% of the GDP 6 of the top 10 created in the US population growth in last generated in our states where since 2009 were in 10 years occurred within footprint retirees are
Slide 16: Deposit advantage expected to continue
Deposit advantage expected to continue Markets Deposit base composition creates a Loyal and growing customer base Results in a continued deposit solid foundation extends the advantage advantage • Retail deposits represent 69% of • Regions cumulative deposit beta 18% total deposits • Total deposit co
Slide 17: Sound risk management practices
Sound risk management practices Enterprise Risk Management Collaborative Risk Culture Sound Risk Appetite • Clear tone from the top • Knowing our risk capacity • Associate ownership • Alignment with strategy • Escalation expectations • Balanced financial strength • Effective challenge • Risk‐reward
Slide 18: Solid approach to understanding the risks we take
Solid approach to understanding the risks we take Enterprise Risk Management Positioned to perform in any environment Understanding Risk • Late‐stage credit cycle risk • Strategic risk • Interest rate risk • Customer and associate conduct risk • Information security risk • Business resilience risk •
Slide 19: Delivering continuous improvement through our Simplify and Grow approach
Delivering continuous improvement through our Simplify and Grow approach MAKING BANKING EASIER • Organization simplification MAKING • Full digitization BANKING REVENUE • Enhanced loan processes and account openings GROWTH • Streamline credit process; more digital; faster EASIER responses REVENUE GRO
Slide 20: Focused technology strategy to better serve our customers
Focused technology strategy to better serve our customers Customer Experiences Innovation • Mobile first thinking • Continue deployment of AI • Continued digitization of customer • Strategic investments and partnerships experiences • Talent acquisition • Making banking easier • Develop processes tha
Slide 21: Strategic and disciplined investments
Strategic and disciplined investments Investing in organic growth, efficiency advancements and digitalization Consumer Bank Corporate Bank “Thin Network” Retail branch Expand industry expertise and market strategy opportunities Digital capabilities Product and customer platform enhancements
Slide 22: Strategic and disciplined investments: investing in our communities
Strategic and disciplined investments Investing in our communities Economic and Community Development Engaging our Associates Financial Wellness Community Investment Education and Workforce Strengthening Customer Readiness Relationships Lean into strengths | Continuously improve | Innovate | Invest
Slide 23: Prudently managing and optimizing capital
Prudently managing and optimizing capital Adjusted ROATCE(1) Capital priorities 16.5% Organic Growth 11.7% 9.0% 9.8% Dividends 2015 2016 2017 2018 Dividend per common share Strategic Investments $0.46 $0.315 $0.23 $0.255 Share Repurchases CAGR +26% 2015 2016 2017 2018 Lean into strengths | Continuou
Slide 24: Why Regions?
Why Regions? 1 FOOTPRINT advantage 2 Valuable DEPOSIT FRANCHISE 3 Focus on risk adjusted returns and PROFITABILITY ENHANCED risk management and governance 4 infrastructure 5 Simplify and Grow underpins LONG‐TERM PERFORMANCE INVESTOR DAY 2019 | Overview | 24
Slide 25: Appendix
Appendix INVESTOR DAY 2019 | Overview | 25
Slide 26: Non-GAAP reconciliation: NII/NIM, non-interest income/expense, efficiency ratio
Non‐GAAP reconciliation: NII/NIM, non‐interest income/expense, operating leverage and efficiency ratio The table below and on the following page present computations of the net interest margin; efficiency ratio, which is a measure of productivity, generally calculated as non‐interest expense divided
Slide 27: Non-GAAP reconciliation: return on tangible equity and earnings per share
Non‐GAAP reconciliation: YTD return on average tangible stockholders' equity and earnings per common share from continuing operations The tables below present computations of "adjusted net income from continuing operations available to common shareholders," "adjusted return on average tangible commo
Slide 28: Economic Facts
Economic Facts Fact Source Job Growth Bureau of Labor Statistics. "Employment, Hours, and Earnings from the Current Employment Statistics Survey." Databases, Tables & Calculators by Subject, 18 Feb. 2019, data.bls.gov/timeseries/CES0000000001. Accessed 18 Feb. 2019. Population Growth Data Access and
Slide 29: Forward looking statements disclosure
Forward looking statements disclosure 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
Slide 30: Forward looking statements disclosure (continued)
Forward looking statements disclosure (continued) • Our ability to identify and address cyber‐security risks such as data security breaches, malware, “denial of service” attacks, “hacking” and identity theft, a failure of which could disrupt our business and result in the disclosure of and/or misuse