Regions Financial Corporation · NYSE:RF
Regions Financial — Investor Presentation (February 2021)
71 slides from Regions Financial's investor presentation, Feb 10, 2021
Slide 1: Investor Information February - March 2021
Investor Information February - March 2021 Exhibit 99.1
Slide 2: Table of contents
2 Table of contents Topic Page # Profile and Strategy 3-7 Income Statement 8-19 Business Segment Highlights 20-23 Balance Sheet 24-27 Capital, Debt & Liquidity 28-33 Technology & Continuous Improvement 34-40 Credit 41-53 Near-Term Expectations 54 Environmental, Social & Corporate Governance 55-56 Ap
Slide 3: Our banking franchise
3 Line of business coverage Alabama – 196 Georgia – 114 Iowa – 8 Mississippi – 112 South Carolina – 21 Arkansas – 66 Illinois – 42 Kentucky – 11 Missouri – 55 Tennessee – 209 Florida – 289 Indiana – 49 Louisiana – 92 North Carolina – 7 Texas – 98 Ranked 17th in the U.S. in total deposits(1) Branch l
Slide 4: Top market share plays a valuable role in the competitive landscape
4 Top market share plays a valuable role in the competitive landscape (1) Based on MSA and non-MSA counties using FDIC deposit data as of 6/30/2020; pro-forma for announced M&A transactions as of 2/1/2021. (2) Significant money center bank presence (JPM, BAC, C, WFC) defined as combined market share
Slide 5: Presence in strong growth markets
5 4.9% 3.1% 3.0% 1.9% 1.7% 1.2% 1.2% 1.0% 0.4% Peer #1 Peer #2 Peer #3 Peer #4 Peer #5 Peer #6 Peer #7 Peer #8 Presence in strong growth markets Top Faster Growing MSAs Deposits Market Rank(2) Nashville, Tennessee $9.7 3 Tampa, Florida $5.3 4 Miami, Florida $5.1 13 Atlanta, Georgia $4.8 7 Orlando, F
Slide 6: Our footprint has significant economic advantages
6 Jobs Our footprint has significant economic advantages Population #2 state for workforce development/talent attraction Footprint Retirees Top 3 state for business climate #2 state for manufacturing output #1 state for film production Alabama Tennessee Louisiana Georgia 56% of all new jobs created
Slide 7: Regions receives top honors
7 Regions receives top honors Regions Bank Awarded Bronze Military Friendly Award and named Best Places to work for LGBTQ Equality by Human Rights Campaign Foundation Six Years Strong: Regions Bank Again Named Gallup Exceptional Workplace Award Winner in 2020 Regions Bank Named Top Regional Bank in
Slide 8: 2020 overview
8 2020 overview (1) Non-GAAP, see appendix for reconciliation. Adjusted Pre-Tax Pre- Provision Income(1) $2,665M Diluted Earnings Per Share$1.03 Adjusted Total Revenue(1) $6,206M Adjusted Non- Interest Expense(1) $3,541M Net Income Available to Common Shareholders$991M $725M $0.61 $1,655M $930M $588
Slide 9: Net interest income and net interest margin - liquidity impacts
9 $931 $1,000 $1,017 3.39% 3.13% 3.13% 3.41% 3.40% 4Q19 3Q20 4Q20 • In 4Q, deposit and cash balances remained elevated given stimulus / liquidity in the system • PPP loans account for +7 bps NIM and +$54M NII within the quarter (+8bps / +$23M QoQ); excess cash accounts for -34 bps NIM and +$1M NII (
Slide 10: Net interest income drivers and outlook
10 • Rate environment impacts offset through active balance sheet management; trend likely to continue in near-term ◦ Higher avg. hedging notional; total benefit of $97M NII to 4Q(3) ◦ Lower deposit pricing; deposit cost = 8bps / interest-bearing deposit cost = 13bps ◦ Cash management strategy carry
Slide 11: Balance sheet profile
11 Floating 61% Fixed 39% $122B IB 54% NIB 42% Time 4% Floating 24% Fixed 76% Loans(2)(3) • Naturally asset sensitive balance sheet, supported by a large, stable deposit base and low reliance on wholesale borrowings • NII sensitivity to short-term rates has been largely neutralized though balance sh
Slide 12: Deposit advantage and net interest margin versus peers
12 3.32% 3.37% 3.49% 3.52% 3.45% 3.39% 3.19% 3.13% 3.22% 3.27% 3.35% 3.39% 3.36% 3.26% 2.90% 2.75% 3.38% 3.40% Q 1 17 Q 2 17 Q 3 17 Q 4 17 Q 1 18 Q 2 18 Q 3 18 Q 4 18 Q 1 19 Q 2 19 Q 3 19 Q 4 19 Q 1 20 Q 2 20 Q 3 20 Q 4 20 3 3.5 Lo an Y ie ld D e p osit C osts 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 3% 4
Slide 13: Hedging strategy protection
13 9.9% 9.6% 9.5% 8.7% 6.9% 6.1% 5.4% 5.2% 5.0% 2.9% 2.0% 0.5% 0.3% 1.7 4.1 4.4 1.1 1.4 3.6 2.5 1.0 2.1 P e e r 12 R F 4Q R F 3Q P e e r 11 P e e r 10 P e e r 9 P e e r 8 P e e r 7 P e e r 6 P e e r 5 P e e r 4 P e e r 3 P e e r 2 P e e r 1 Cash-flow Hedge Program Details 12/31/20(1) • $20.75B of to
Slide 14: Interest rate exposure of future business and long-term rates
14 Agency/UST 1% Agency MBS 70% Agency CMBS 23% Non-Agency CMBS 2% Corporate Bonds 4% Interest rate exposure of future business and long-term rates (1) 12/31/2020 data; Source: Call Report data for loan repricing within 1 year; Peers include CFG, CMA, FHN, FITB, HBAN, HWC, KEY, MTB, PNC, SNV, USB, Z
Slide 15: Non-interest income
15 • Expect 2021 service charges to grow but remain 10%-15% below 2019 levels due to continued elevated deposits and ongoing enhancements to overdraft practices and transaction posting • Card & ATM fees have fully recovered; expect solid growth in 2021 vs pre-pandemic levels • Capital Markets delive
Slide 16: Diversified non-interest income
16 Consumer 52% Wealth Management14% Corporate 34% 4Q20 fee revenue by segment(1) Diversified non-interest income ($ in millions) • Consumer fee income categories include service charges on deposit accounts, card and ATM fees, and mortgage income generated through origination and servicing of reside
Slide 17: Mortgage investing for growth
17 Closed mortgages expected to exceed $3.6T in 2020 across the US(1) Purchase and refinance volume expected to remain strong in 2021 driven by continued low rates, but declining from 2020 industry production(1) Investments in people, process and technology began in 2018 Significantly improved share
Slide 18: Adjusted non-interest expense
18(1) Non-GAAP; see appendix for reconciliation. (2) 2020 adjusted non-interest expenses include ~$60M of expense associated with the Ascentium acquisition that closed 4/1/2020. • Adjusted expenses(1) increased 5% QoQ driven primarily by higher incentive compensation from record capital markets acti
Slide 19: Strong PPI profile
19 2.69% 2.63% 2.36% 2.23% 2.21% 2.14% 2.13% 2.12% 2.11% 2.11% 2.00% 1.99% 1.95% 1.56% RF 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 Strong PPI(1) profile (1) Non-GAAP; see Appendix for reconciliation. (2) Source: SNL Financial. Risk-weighted Asset
Slide 20: Business segments
20 47% 49% 4% 63% 35% 2% 34% 58% 8% $699M $87B $120B 4Q20 Pre-tax pre- provision income(1) 4Q20 Average deposits 4Q20 Average loans (1) Pie %'s exclude the pre-tax pre-provision income (loss) from the Other Segment totaling $(199) million. Business segments Consumer Corporate Wealth Management
Slide 21: Consumer Banking Group - prudent cost management
21 2014 2020 RF Peer 1 Peer 2 Peer3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 2014 2020 2014 2020 Creating Efficiencies… ...To Re-Invest In the Business… • Migration to single job family in branches along with transaction migration and thin network strategy are driving reduction in branches and FTE • Conti
Slide 22: Corporate Banking Group
22 Corporate Banking Group Note: (1) Reflects 2020 YE. (2) Reported as of March to October 2020. (3) Regions’ deferrals reported YTD as of December 17, 2020, Includes Ascentium deferrals of 13.3k reported YTD as of December 31, 2020. 2020: A year to align, transform, and execute to deliver long-term
Slide 23: Wealth Management
23 Wealth Management • Maintained strong momentum in growth markets and protected business through continued engagement and communication with clients • Stood up key COVID-19 and business continuity resources for WM associates • Implemented sales model changes with temporary branch closures due to h
Slide 24: Average loans
24 $78.6 $82.0 $80.1 52.0 54.7 52.7 26.6 27.3 27.4 4Q19 3Q20 4Q20 Adjusted average loans and leases(1) Average loans ($ in billions) (1) Non-GAAP, see appendix for reconciliation. Adjusted business loans(1) Adjusted consumer loans(1) QoQ highlights & outlook • Average loans decreased 3%; adjusted av
Slide 25: 4Q20 average loan composition
25 $43.9 $5.4 $0.3 $5.5 $1.9 Commercial and Industrial CRE Mortgage - OO CRE Construction - OO IRE - Mortgage IRE - Construction 4Q20 average loan composition $16.4 $1.0 $2.5 $7.4 $1.2 $1.1 Mortgage Indirect-Vehicles Indirect-Other Home Equity Credit Card Other Average consumer loans $29.6B Average
Slide 26: Commercial & IRE loans
26 Commercial & IRE loans As of 12/31/20 ($ in millions) Total Commitments Outstanding Balances % Utilization Administrative, Support, Waste & Repair $2,622 $1,605 61% Agriculture 756 424 56% Educational Services 3,907 3,055 78% Energy - Oil, Gas & Coal 4,013 1,676 42% Financial Services 9,321 4,416
Slide 27: Average deposits
27 $94.5 $116.7 $119.8 59.4 68.8 69.9 26.6 38.8 40.67.9 8.7 8.9 0.6 0.4 0.4 4Q19 3Q20 4Q20 Average deposits (1) Other deposits represent non-customer balances primarily consisting of wholesale funding (for example, Eurodollar deposits, selected deposits and brokered time deposits). Average deposits
Slide 28: Capital and liquidity
28 • During 4Q declared $148M in common dividends • Federal Reserve released results of its updated Supervisory Stress Test and indicated Regions met or exceeded all minimum capital levels under the provided scenarios • Common Equity Tier 1 ratio increased ~50 bps to an estimated 9.8%; in the near-t
Slide 29: CET1 waterfall
29 9.32% 0.64% 0.01% 0.01% (0.14)% 9.84% CET1 Waterfall (1) Non-GAAP; see appendix for reconciliation. (2) Provision benefit includes the impact of CECL deferral. (3) Current quarter ratios are estimated. 3Q20 CET1% Pre-tax pre- provision income(1) Common Dividend 4Q20 CET1%(3) Provision benefit(2)
Slide 30: Significant protection
30 Significant protection • The combined loss absorbing protection from capital, allowance coverage, and accumulated other comprehensive income(1) is among the highest in the peer set ◦ Regions’ coverage equates to roughly 13.5% of RWA vs. the peer median of 12.3% • AOCI reflective of implied stabil
Slide 31: Capital optimization
31 Capital Optimization Investments Indirect • ~$6.4B of strategic runoff in process • Third-party originated auto runoff of ~$2.0B starting in 2016 • Dealer Financial Services auto portfolio runoff of ~$2.4B starting in early 2019 • GSKY unsecured consumer loans runoff of ~$2.0B starting in Dec 201
Slide 32: Unsecured debt and credit ratings profile
32 $0 $614 $0 $1,000 $100 $900 $800 — 360 — 1,000 750 254 150 300 500 HoldCo Senior Notes Bank Senior Notes HoldCo Subordinated Notes Bank Subordinated Notes 2020 2021 2022 2023 2024 2025 2037 Regions unsecured debt and credit ratings profile • Unsecured wholesale debt footprint represents just 2.3%
Slide 33: Ample sources of additional liquidity
33 Board Liquidity Risk Appetite Significant customer deposit growth, coupled with ample liquidity resources beyond deposits, has positioned Regions well to meet customer needs as the economy continues to reopen and expand: • FHLB provides funding collateralized by mortgage and CRE loans • Unencumbe
Slide 34: Technology efforts
34 ® Efforts Omnichannel view of customers for a “You Know Me & Value Me” experience Regions Client IQ (RCLIQ) delivering ‘needs based’ engagement resulting in $9.5M in corporate revenue ROSIE Personalized offering of products and services resulting in $26M in revenue Reduced Fraud Losses 2020 Fraud
Slide 35: Digital acceleration
35 Digital Acceleration Digital Users up ~7% with over 2MM active mobile customers Mobile App Redesign 4.8 iOS App Rating New Mobile features include TermIT, Recurring Transfers, External Transfers Customers made Zelle payments totaling over $1 Billion Innovating Operations Emerging Stronger Rapid D
Slide 36: Digital advantage from past technology investments
36 Digital advantage from past technology investments Digital Expansion & Resiliency Increased daily mobile deposit limits 99%+ system availability sustained eSign Expansion Expanded eSign functionality to 18 new groups and enabled an additional 139 forms PPP & Stimulus Payments Processed more than
Slide 37: Continue to invest for the future
37 System Maintenance New Technology Cybersecurity / Risk Management Continue to invest for the future $625MM in technology spending 48%42% 10% • ~10-11% of revenue is reserved for Technology Spend. • Technology Spend is expected to stay flat and produce innovation through New Technology Investments
Slide 38: Growth in digital
38 246 286 301 119 143 158 127 143 143 4Q19 3Q20 4Q20 2.7 2.8 2.9 4Q19 3Q20 4Q20 Mobile Banking Log-Ins 1.88 2.01 2.04 4Q19 3Q20 4Q20 14% 20% 20% 29% 34% 33% 57% 46% 47% 4Q19 3Q20 4Q20 40.2 73.0 63.8 31.0 63.5 53.35.1 2.8 2.4 4.1 6.7 8.1 4Q19 3Q20 4Q20 61% 67% 66% 39% 33% 34% 4Q19 3Q20 4Q20 Growth i
Slide 39: Continuous improvement initiatives delivering solid results
39Note: data through 4Q20. Initiatives complete Initiatives to be completed Total number of initiatives Revenue 11 19 30 Organizational efficiency, effectiveness & simplification 22 12 34 Third-party spend reductions 15 11 26 Total initiatives 48 42 90 Continuous improvement initiatives delivering s
Slide 40: Optimizing the branch network
40 2014 2015 2016 2017 2018 2019 2020 2021E 2013 2014 2015 2016 2017 2018 2019 2020 2021E Branch Efficiency Through 2020 Optimizing the branch network Consolidations funding growth initiatives • >400 branches consolidated from 2014 – EOY 2020 while opening 72 branches • The branch network shrank by
Slide 41: Asset quality
41 $96 $113 $94 65 38 41 31 75 530.46% 0.50% 0.43% 4Q19 3Q20 4Q20 $507 $767 $745 180% 316% 308% 4Q19 3Q20 4Q20 NPLs and ACL coverage ratio Asset quality ($ in millions) ($ in millions) ACL to loans coverage ratioNet charge-offs and ratio NPLs - excluding LHFS ACL coverage ratio Consumer net charge-o
Slide 42: Allowance for credit losses waterfall
42 Other Changes (Model Uncertainty & Portfolio Risk) $2,425 $(94) $(137) $99 $2,293 Allowance for credit losses waterfall Changes in Economic Outlook Net Charge- Offs 12/31/2020 • 4Q ending allowance was down ~$132M due to stabilization in economic outlook and improved credit performance, charge-of
Slide 43: Base reasonable & supportable economic outlook
43 Pre-R&S period 4Q2020 1Q2021 2Q2021 3Q2021 4Q2021 1Q2022 2Q2022 3Q2022 4Q2022 Real GDP, annualized % change 3.4 % 0.5 % 1.6 % 5.0 % 5.3 % 3.9 % 2.9 % 2.4 % 2.4 % Unemployment rate 6.8 % 6.6 % 6.4 % 6.1 % 5.8 % 5.4 % 5.2 % 5.0 % 4.9 % HPI, year-over-year % change 7.2 % 7.2 % 6.8 % 5.4 % 3.8 % 3.1
Slide 44: Allowance for credit losses by portfolio
44 As of 12/31/20 As of 9/30/20 (in millions) Loan Balance ACL ACL/Loans Loan Balance ACL ACL/Loans C&I $42,870 $1,027 2.40 % $45,199 $1,119 2.48 % CRE-OO mortgage 5,405 242 4.47 % 5,451 247 4.53 % CRE-OO construction 300 24 7.98 % 305 22 7.16 % Total commercial $48,575 $1,293 2.66 % $50,955 $1,388
Slide 45: COVID-19 high-risk industry sectors
45 • Proactive, frequent customer dialogue • Closely monitoring most vulnerable customers • Monitoring ratings migration Bottom up review informs and narrows COVID-19 high-risk industry sectors (as of December 31, 2020) C&I Portfolio BAL$(1) % of BAL$ Utilization Rate(2) % Criticized Energy – Oil &
Slide 46: COVID-19 high-risk industry sectors waterfall
46 $6.58 $0.89 $0.19 $(1.90) $(0.61) $5.15 COVID-19 high-risk industry sectors waterfall ($ in billions) Specifically Identified Assets Sector Additions • COVID high-risk industries are continuously refined to those exhibiting higher levels of stress due to COVID impact • Specifically identified at-
Slide 47: Energy lending
47 As of 12/31/20 ($ in millions) # of Clients (1) Total Commitments Outstanding Balances % Utilization $ Criticized % Criticized Oilfield services and supply (OFS)(2) 148 $449 $289 64% $66 23% Exploration and production (E&P)(2) 100 1,391 787 57% 346 44% Midstream 25 1,527 485 32% 135 28% Downstrea
Slide 48: Energy lending (continued)
48 $ (M ill io ns ) 1Q2015 4Q2020 E& P Oil fie ld Se rvi ce s Mi ds tre am Do wn str ea m Ot he r PP P L oa ns $0 $300 $600 $900 $1,200 $1,500 Energy lending (continued) Balances by Category Gross Losses *Other Losses include losses to MLP funds as well as losses related to coal. $ (M ill io ns ) $0
Slide 49: Restaurant lending
49 As of 12/31/20 ($ in millions) # of Clients* Total Commitments Outstanding Balances % Utilization $ Criticized % of Outstanding Criticized Quick Service 13,188 $1,374 $1,127 82% $98 9% Casual Dining 30 488 429 88% 389 91% Other 22 148 120 81% 97 81% PPP Loans 2,475 347 347 100% — —% Total Restaur
Slide 50: Hotel lending
50 As of 12/31/20 ($ in millions) # of Clients* Total Commitments Outstanding Balances % Utilization $ Criticized % of Outstanding Criticized CRE-Unsecured (REITs) 11 $824 $606 74% $602 99% IRE – Mortgage 15 216 202 94% 187 93% IRE – Construction 3 80 66 83% 66 100% Consumer Services 3,594 147 140 9
Slide 51: Commercial retail lending
51 Commercial retail lending As of 12/31/20 ($ in millions) # of Clients* Total Commitments Outstanding Balances % Utilization $ Criticized % Criticized CRE-Unsecured (REITs) 26 $2,802 $1,210 43% $0 —% IRE 146 779 749 96% 194 26% C&I 22,780 2,577 1,254 49% 25 2% CRE-OO 862 804 760 95% 25 3% ABL 21 1
Slide 52: Loans to small business and small farms
52 14% 13% 10% 9% 9% 8% 8% 8% 21% Healthcare 14% Real Estate 13% Transportation & Warehousing 10% Professional, Scientific & Technical Services 9% Retail Trade 9% Restaurant, Accommodation & Lodging 8% Administrative, Support, Waste & Repair 8% Manufacturing 8% Other 21% (Portfolios <8% of total) 29
Slide 53: Consumer lending portfolio statistics
53 Consumer lending portfolio statistics Residential Mortgage • Avg. origination FICO 749 • Current LTV 60% • 97% owner occupied Home Equity • Avg. origination FICO 754 • Current LTV 43% • Only $68.8M of resets through 2021 • 69% of portfolio is 1st lien • Avg. loan size $38,139 Other Consumer Unsec
Slide 54: 2021 expectations
54 2021 expectations (1) Non-GAAP, see appendix for reconciliation. (2) The reconciliation with respect to forward-looking non-GAAP measures is expected to be consistent with actual non-GAAP reconciliations included in the attached appendix or in previous filings with the SEC. (3) Total revenue guid
Slide 55: Corporate governance
55 Corporate governance Other corporate governance highlights • Independent Chair of the Board • Director-by-Director Board skills, diversity and composition matrix • Adopted a version of the Rooney Rule applicable to Director and Section 16 Officer candidates, including CEO • Half of the Board's st
Slide 56: Environmental & social highlights
56 Environmental & social highlights(1) ESG Recognitions: • Ranked by Newsweek as one of America’s Most Responsible Companies for 2021 (#125) • Great Place to Work-Certified™ Company (6th consecutive year) • Named to the JUST 100 as one of America’s Most JUST Companies for 2021 by Forbes and JUST Ca
Slide 57: Appendix
> GENERATING Consistent Sustainable \ Long-term Performance APPENDIX AW REGIONS| 57
Slide 58: Reference sources
58 Fact Source Job Growth Bureau of Labor Statistics. "Employment, Hours, and Earnings from the Current Employment Statistics Survey.” data.bls.gov/timeseries/CES0000000001 Population Growth US Census Bureau. “State Intercensal Tables: 2000-2010." https://www.census.gov/data/tables/ time-series/demo
Slide 59: Non-GAAP measures definitions
59 Management uses pre-tax pre-provision income (non-GAAP) and adjusted pre-tax pre-provision income (non-GAAP), as well as the adjusted efficiency ratio (non-GAAP) and the adjusted fee income ratio (non-GAAP) to monitor performance and believes these measures provide meaningful information to inves
Slide 60: Non-GAAP reconciliation: adjusted average loans
60 Non-GAAP reconciliation: adjusted average loans Average Balances ($ amounts in millions) 4Q20 3Q20 2Q20 1Q20 4Q19 4Q20 vs. 3Q20 4Q20 vs. 4Q19 Commercial and industrial $ 43,889 $ 46,405 $ 49,296 $ 40,519 $ 39,743 $ (2,516) (5.4) % $ 4,146 10.4 % Less: Commercial loans transferred to held for sale
Slide 61: Non-GAAP reconciliation: adjusted ending loans
61 Non-GAAP reconciliation: adjusted ending loans As of 12/31/2020 12/31/2020 ($ amounts in millions) 12/31/2020 9/30/2020 6/30/2020 3/31/2020 12/31/2019 vs. 9/30/2020 vs. 12/31/2019 Commercial and industrial $ 42,870 $ 45,199 $ 47,670 $ 45,388 $ 39,971 $ (2,329) (5.2) % $ 2,899 7.3 % Less: Commerci
Slide 62: Non-GAAP reconciliation: NII, non-interest income/expense, efficiency ratio
62 Non-GAAP reconciliation: NII, non-interest income/expense, operating leverage and efficiency ratio NM - Not Meaningful Quarter Ended ($ amounts in millions) 12/31/2020 9/30/2020 6/30/2020 3/31/2020 12/31/2019 4Q20 vs. 3Q20 4Q20 vs. 4Q19 Non-interest expense (GAAP) A $ 987 $ 896 $ 924 $ 836 $ 897
Slide 63: Non-GAAP reconciliation: NII, non-interest income/expense, efficiency ratio (year)
63 Non-GAAP reconciliation: NII, non-interest income/expense, operating leverage and efficiency ratio NM - Not Meaningful Year Ended ($ amounts in millions) 2020 2019 2020 vs. 2019 Non-interest expense (GAAP) K $ 3,643 $ 3,489 154 4.4 % Adjustments: Contribution to the Regions Financial Corporation
Slide 64: Non-GAAP reconciliation: non-interest expense
64 Non-GAAP reconciliation: non-interest expense Year Ended December 31 ($ amounts in millions) 2020 2019 2018 2017 2016 Non-interest expense (GAAP) $ 3,643 $ 3,489 $ 3,570 $ 3,491 $ 3,483 Adjustments: Contribution to Regions Financial Corporation foundation (10) — (60) (40) — Professional, legal an
Slide 65: Non-GAAP reconciliation: ACL/Loans excluding PPP
65 Non-GAAP reconciliation: ACL/Loans excluding PPP As of ($ amounts in millions) 12/31/2020 9/30/2020 6/30/2020 3/31/2020 12/31/2019 Total Loans $ 85,266 $ 88,359 $ 90,548 $ 88,098 $ 82,963 Less: SBA PPP Loans 3,624 4,594 4,498 — — Loans excluding PPP, net (non- GAAP) $ 81,642 $ 83,765 $ 86,050 $ 8
Slide 66: Non-GAAP reconciliation: Pre-tax pre-provision income
66 Non-GAAP reconciliation: Pre-tax pre-provision income (PPI) Quarter Ended ($ amounts in millions) 12/31/2020 9/30/2020 6/30/2020 3/31/2020 12/31/2019 4Q20 vs. 3Q20 4Q20 vs. 4Q19 Net income (loss) available to common shareholders (GAAP) $ 588 $ 501 $ (237) $ 139 $ 366 $ 87 17.4 % $ 222 60.7 % Pref
Slide 67: Non-GAAP reconciliation: Pre-tax pre-provision income (year)
67 Non-GAAP reconciliation: Pre-tax pre-provision income (PPI) NM - Not Meaningful Year Ended ($ amounts in millions) 12/31/2020 12/31/2019 2020 vs. 2019 Net income available to common shareholders (GAAP) $ 991 $ 1,503 $ (512) (34.1) % Preferred dividends (GAAP) 103 79 24 30.4 % Income tax expense (
Slide 68: Forward-Looking Statements
68 Forward-Looking Statements This presentation may include forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not based on historical information, but rather are related to future operations, strategies, financial results or
Slide 69: Forward-looking statements risk factors
69 • Changes in laws and regulations affecting our businesses, including legislation and regulations relating to bank products and services, as well as changes in the enforcement and interpretation of such laws and regulations by applicable governmental and self-regulatory agencies, including as a r
Slide 70: Forward-looking statements risk factors (continued)
70 • Changes in commodity market prices and conditions could adversely affect the cash flows of our borrowers operating in industries that are impacted by changes in commodity prices (including businesses indirectly impacted by commodities prices such as businesses that transport commodities or manu
Slide 71: Generating consistent, sustainable, long-term performance
> GENERATING Consistent Sustainable We ng-term Performance A REGIONS
Regions Financial — Investor Presentation (February 2021) on 6ix