Regions Financial Corporation · NYSE:RF
Regions Financial — BancAnalysts Association of Boston Fall Conference 2013
22 slides from Regions Financial's conference presentation, Nov 8, 2013
Slide 1: BancAnalysts Association of Boston Fall Conference
1 BancAnalysts Association of Boston Fall Conference November 8, 2013 David Turner Chief Financial Officer Loan Growth Returns John Asbury Head of Business Services Exhibit 99.1
Slide 2: 2013 Imperatives
2 2013 Imperatives We remain focused on three key imperatives in 2013: 2013 Imperatives Grow loans Grow Quality Households Continue to Manage Expenses • Leverage specialized lending groups • Expand indirect auto dealer network • Grow home equity loan portfolio Execute • Committed to customer service
Slide 3: Overall loan strategy: Three year look back
3 Overall loan strategy: Three year look back 20.4 18.9 17.5 15.9 14.8 13.4 11.9 10.7 10.1 9.4 8.7 7.7 7.3 7.0 6.9 33.8 33.6 33.9 35.1 35.5 35.8 36.2 36.0 36.3 36.9 37.0 37.1 37.7 39.0 39.8 34.0 33.4 33.0 31.9 31.1 32.0 31.3 30.9 30.3 29.9 29.6 29.2 28.9 29.0 29.2 $88.2 $85.9 $84.4 $82.9 $81.4 $81.2
Slide 4: Gaining momentum
4 Gaining momentum (1) Ending balances; peers include BBT, CMA, FHN, FITB, HBAN, KEY, MTB, PNC, STI, USB, WFC, ZION Source: SNL Financial Loan growth vs. peers (1) -1.24% 1.20% 0.85% 0.93% 3Q12 4Q12 1Q13 2Q13 3Q13 Regions Peer Group Median • YTD total loan growth is $1.9 billion or 3% • Total portfo
Slide 5: Business lending
5 Business lending 3Q13 = $47B (1) (1) Ending balances • Total business lending portfolio increased 2% second to third quarter • Commercial and industrial portfolio increased approximately $900 million or 3% from the prior quarter • Specialized lending groups delivered a strong quarter, driven by he
Slide 6: Business lending focused on specialized industries
6 • Specialized lending groups are headquartered throughout our footprint • Our goal is to be the premier middle market bank for the specialized industries we serve • Specialized lending groups delivered strong third quarter results, driven by healthcare, technology, REIT finance and energy • Additi
Slide 7: Business lending - commitments and line utilization
7 Business lending - commitments and line utilization $24.7 $24.7 $25.0 $26.3 $27.0 $28.0 $28.7 $29.9 $30.8 $31.2 $32.2 $33.6 $34.5 $36.4 $37.8 40.7% 39.8% 40.2% 40.3% 41.7% 41.5% 43.3% 42.6% 43.1% 44.4% 43.9% 43.4% 44.8% 44.7% 44.8% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q Commitments Utilizati
Slide 8: Consumer lending
8 Consumer lending Other $1B / 4% 3Q13 = $29B (1) Credit Card $1B / 3% Linked Quarter Change (1) YOY % Change (1) Residential Mortgage 0.1% -2.8% Home Equity Lending -0.5% -5.6% Indirect Auto Lending 7.3% 30.1% Consumer Credit Card 3.5% -0.6% Home Equity $11B / 39% Indirect $3B / 10% • Consumer lend
Slide 9: Residential real estate trends
9 $12,157 $11,912 $11,670 $11,475 $11,351 3Q12 4Q12 1Q13 2Q13 3Q13 Residential real estate trends 180 222 160 $13,225 $12,963 $12,875 $12,839 $12,856 3Q12 4Q12 1Q13 2Q13 3Q13 10/15 Year Mortgage Retention Mortgage Balances (1) ($ in millions) (1) Ending balances (2) Average balances • Mortgage balan
Slide 10: Indirect auto trends
10 Indirect auto trends $2,220 $2,336 $2,483 $2,693 $2,889 1,759 1,915 1,998 2,068 2,112 3Q12 4Q12 1Q13 2Q13 3Q13 Number of dealers in network Loan balances (1) and dealer network ($ in millions) • Loan portfolio grew for eleventh consecutive quarter • Currently have relationships with approximately
Slide 11: Credit card trends
11 Credit card trends $901 $906 $851 $866 $896 3Q12 4Q12 1Q13 2Q13 3Q13 Credit card balances (1) ($ in millions) • Steady increases in new credit card production • Period end balances increased 3.5% second to third quarter • Driven by marketing efforts through balance transfers extended to existing
Slide 12: Net interest margin & revenue trends
12 Net interest margin & revenue trends 3.08% 3.24% 3.47% 3.29% 3Q12 4Q12 1Q13 2Q13 3Q13 Regions Peer Group Average 39 bps Net Interest Margin vs. Peers • Net interest margin increased 8 bps quarter-over-quarter • Liability management and investment actions in 2Q provided 7 bps benefit to 3Q margin
Slide 13: Broad-based improvement in asset quality
13 Broad-based improvement in asset quality $759 $511 $262 $114 3.52% 2.52% 1.38% 0.60% 3Q10 3Q11 3Q12 3Q13 Net Charge-Offs and Ratio Criticized and Classified Loans (1) 7.9 5.4 3.4 2.5 2.7 1.9 1.7 1.0 $10.6 $7.3 $5.1 $3.5 3Q10 3Q11 3Q12 3Q13 Classified Loans Special Mention (1) Includes commercial
Slide 14: Prudent expense management
14 Prudent expense management • Headcount increased 3% year-to- date, primarily driven by increases in customer-facing, revenue- generating and compliance positions • 69% of new additions in revenue-generating areas • Mortgage operations will adjust to lower demand • Operational staff already reduce
Slide 15: Strong capital and solid liquidity
15 Strong capital and solid liquidity (1) Non-GAAP – See appendix for reconciliation Note: Peer banks include BBT, CMA, FHN, FITB, HBAN, KEY, MTB, PNC, STI, USB, WFC, ZION Source: SNL Financial 10.5% 10.8% 11.2% 11.1% 11.0% 9.9% 10.0% 10.1% 10.2% 10.4% 3Q12 4Q12 1Q13 2Q13 3Q13 Regions Peer Median 79
Slide 16: 2013 Imperatives
16 2013 Imperatives We remain focused on three key imperatives in 2013: 2013 Imperatives Grow loans Grow Quality Households Continue to Manage Expenses • Leverage specialized lending groups • Expand indirect auto dealer network • Grow home equity loan portfolio Execute • Committed to customer servic
Slide 17: Appendix
Appendix AM REGIONS *
Slide 18: Forward-looking statements
18 Forward-looking statements This presentation may include forward-looking statements which reflect Regions’ current views with respect to future events and financial performance. The Private Securities Litigation Reform Act of 1995 (“the Act”) provides a “safe harbor” for forward-looking statement
Slide 19: Non-GAAP reconciliation: non-interest income / expense, fee income ratios and efficiency ratios
19 Non-GAAP reconciliation: non-interest income / expense, 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
Slide 20: Non-GAAP reconciliation: Tier 1 common
20 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 calcul
Slide 21: Non-GAAP reconciliation: Basel III
21 Non-GAAP reconciliation: Basel III (1) Under Basel III, in addition to goodwill and other identified intangibles regulatory capital must be reduced by purchased credit card relationship intangible assets. The majority of these assets are allowed in Basel I capital. (2) Regions continues to develo
Slide 22: Ma REGIONS
Ma REGIONS
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