Regions Financial Corporation · NYSE:RF
Regions Financial — Credit Suisse Financial Services Forum 2014
23 slides from Regions Financial's conference presentation, Feb 11, 2014
Slide 1: Credit Suisse Financial Services Forum
1 Credit Suisse Financial Services Forum February 11, 2014 David Turner Chief Financial Officer Exhibit 99.1
Slide 2: 2013 Business Priorities & Accomplishments
2 2013 Business Priorities & Accomplishments › Net income available to common shareholders increased 10% › Expanded net interest margin 16 bps › Lowered deposit costs 10 bps to historic low › Achieved broad-based asset quality improvement › Raised common stock cash dividend › Improved debt and capit
Slide 3: Expectations for 2014
3 Expectations for 2014 › Prolonged low interest rate environment › Evolving regulatory environment › Leverage to grow customer relationships across business groups by 2% to 4% › Loan growth of 3% to 5% › Deposit growth of 1% to 2% › Relatively stable net interest margin › 2014 Adjusted expenses low
Slide 4: Allowing customers to bank the way they choose
4 Allowing customers to bank the way they choose Retail Contact Center Online Products › Active mobile customers increased 25% in 2013 › Remote deposit capture allows customers to have immediate access to their funds Social Media Mobile › Agent call volume increased 6% year over year › Increased sal
Slide 5: Business lending growth driven by commercial and industrial loans
5 Business lending growth driven by commercial and industrial loans 4Q13 = $46B (1) (1) Ending balances Commercial & Industrial $29B / 64% IRE $7B / 15% OO Real Estate $10B / 21% › Commercial and industrial loans increased 10% in 2013, driven by specialized lending › Investor real estate loans were
Slide 6: Specialized lending groups headquartered throughout our footprint
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 results in 2013, driven by healthcare, energy and technology › Real Estate Corporate Bank
Slide 7: Business lending - commitments steadily increasing
7 Business lending - commitments steadily increasing $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 $38.3 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% 43.4% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Commitm
Slide 8: Consumer lending growth led by indirect and credit card loans
8 Consumer lending growth led by indirect and credit card loans Other $1B / 4% 4Q13 = $29B (1) Credit Card $1B / 3% Home Equity $12B / 40% Indirect $3B / 11% (1) Ending balances Residential Mortgage $12B / 42% › Indirect auto balances increased 32% from the prior year › Over 2,100 dealers in network
Slide 9: Laying the foundation in 2013 for future success
9 Laying the foundation in 2013 for future success Indirect › 2,140 dealers in network that cover 27% of dealers in footprint › Increased average number of loans per dealer by 58% through enhanced technology Credit Card › Credit card production increased 43% and active accounts grew 7% › Penetration
Slide 10: Net interest margin – closing the gap
10 Net interest margin – closing the gap Margin benefits from both short-term and long-term rate increases Note: Peer banks include BBT, CMA, FHN, FITB, HBAN, KEY, MTB, PNC, STI, USB, WFC, ZION Source: SNL Financial 3.10% 3.26% 3.47% 3.25% 4Q12 1Q13 2Q13 3Q13 4Q13 Regions Peer Average Net Interest M
Slide 11: Prudent expense management
11 Prudent expense management Non-Interest Expense* (1) / Average Assets 2.79% 3.00% 3.22% 3.12% 4Q12 1Q13 2Q13 3Q13 4Q13 Regions Peer Median 62.7% 66.3% 65.3% 64.3% 4Q12 1Q13 2Q13 3Q13 4Q13 Regions Peer Median Efficiency Ratio (1) (1) Non-GAAP – See appendix for reconciliation *Annualized Peer bank
Slide 12: Continued asset quality improvement
12 Continued asset quality improvement Net Charge-Offs and Ratio Criticized and Classified Loans (2) 3.2 3.0 2.8 2.5 2.1 1.3 1.1 1.1 1.0 0.9 $4.5 $4.1 $3.9 $3.5 $3.0 4Q12 1Q13 2Q13 3Q13 4Q13 Classified Loans Special Mention (1) See GAAP to non-GAAP reconciliation in appendix (2) Includes commercial
Slide 13: Strong capital and solid liquidity
13 Strong capital and solid liquidity Well positioned for future capital deployment (1) Current quarter ratios are estimated (2) Non-GAAP – See appendix for reconciliation Note: Peer banks include BBT, CMA, FHN, FITB, HBAN, KEY, MTB, PNC, STI, USB, WFC, ZION Source: SNL Financial 10.8% 11.2% 11.1% 1
Slide 14: Building on our foundation in 2014
14 Grow • Loans • Deposits • New Quality Households Manage • Risk • Expenses • Capital Risk Framework Deepen • • Relationships • Engagement RISK FRAMEWORK Building on our foundation in 2014
Slide 15: Appendix
Appendix Ms REGIONS «
Slide 16: Non-GAAP reconciliation: Adjusted total loans
16 Non-GAAP reconciliation: Adjusted total loans NM – Not Meaningful (1) Regions believes excluding the impact of the residential first mortgage loans transferred to held for sale during the fourth quarter of 2013 provides a more meaningful calculation of loan growth rates and presents them on the s
Slide 17: Non-GAAP reconciliation: Net charge-off ratio
17 Non-GAAP reconciliation: Net charge-off ratio As of and for Quarter Ended ($ amounts in millions) 12/31/2013 9/30/2013 6/30/2013 3/31/2013 12/31/2012 Residential first mortgage net charge-offs (GAAP) A $ 164 $ 13 $ 18 $ 22 $ 26 Less: Net charge-offs associated with transfer to loans held for sale
Slide 18: Quarter Ended ($ amounts in millions) 12/31/2013 9/30/2013 6/30/2013 3/31/2013 12/31/2012 4Q13 vs. 3Q13
18 Quarter Ended ($ amounts in millions) 12/31/2013 9/30/2013 6/30/2013 3/31/2013 12/31/2012 4Q13 vs. 3Q13 4Q13 vs. 4Q12 Non-interest expense (GAAP) $ 946 $ 884 $ 884 $ 842 $ 902 $ 62 7.0 % $ 44 4.9 % Adjustments: REIT investment early termination costs — — — — (42 ) — NM 42 NM Loss on early extingu
Slide 19: Non-GAAP reconciliation: Non-interest expense and efficiency ratio full year
19 Non-GAAP reconciliation: Non-interest expense and efficiency ratio full year Year Ended December 31 ($ amounts in millions) 2013 2012 2013 vs. 2012 Non-interest expense (GAAP) $ 3,556 $ 3,526 $ 30 0.9 % Adjustments: REIT investment early terminations costs — (42 ) 42 NM Loss on early extinguishme
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 The following table provides calculations of Tier 1 common, based on Regions’ current understanding of the Final Basel III requirements, released in July 2013. Regions currently calculates its risk-based capital ratios under guidelines adopted by the Federal Res
Slide 22: Forward-looking statements
22 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 23: Ma REGIONS
Ma REGIONS
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