Regions Financial Corporation · NYSE:RF
Regions Financial — Q1 2015 Earnings Presentation
16 slides from Regions Financial's earnings presentation, Apr 21, 2015
Slide 1: 1st Quarter Earnings Conference Call
1st Quarter Earnings Conference Call April 21, 2015 Exhibit 99.3
Slide 2: Solid start to 2015
Solid start to 2015 2 *Annualized (1) Available to common shareholders (2) Non-GAAP; see appendix for reconciliation (3) Excluding loans held for sale Effectively deploy capital Generate positive operating leverage Revenue diversification Received no objection to 2015 CCAR submission Repurchased
Slide 3: Loans
Loans 3 For the quarter: Ending loan balances up $936MM or 1% Business lending balances increased 2% Investor real estate increased 2% Commercial and industrial grew 3% Line utilization increased 10 basis points and commitments for new loans increased 4% Consumer lending remained steady
Slide 4: Deposits and funding costs
12 bps 11 bps 11 bps 11 bps 12 bps 1Q14 2Q14 3Q14 4Q14 1Q15 $93.4 $93.8 $94.1 $94.2 $97.5 1Q14 2Q14 3Q14 4Q14 1Q15 Deposits and funding costs 4 33 bps 31 bps 30 bps 29 bps 29 bps 1Q14 2Q14 3Q14 4Q14 1Q15 Deposit costs Funding costs Ending deposit balances ($ in billions) Average deposit balances ($
Slide 5: Net interest income and net interest margin
$831 $838 $837 $837 $832 3.26% 3.24% 3.18% 3.17% 3.18% 1Q14 2Q14 3Q14 4Q14 1Q15 Net Interest Income (FTE) Net Interest Margin Net interest income and net interest margin Net interest income on a FTE basis declined $5 million or 1% Low rate environment and fewer days in the quarter were principal
Slide 6: Non-interest income
Non-interest income Mortgage income increased 48% as loan production increased, along with improvement in the market valuation of mortgage servicing rights Wealth Management revenue increased 8% led by higher insurance commissions, higher investment services fees and increases in investment mana
Slide 7: Adjusted non-interest expenses
$846 $827 $826 $859 $840 1Q14 2Q14 3Q14 4Q14 1Q15 Adjusted non-interest expenses(1) Adjusted non-interest expenses(1) declined 2% Expenses included some significant items Redeemed $250 million of higher cost debt and incurred $43 million of extinguishment charges Recorded $13 million of expe
Slide 8: Asset quality
(1) Excludes loans held for sale (2) Includes commercial and investor real estate loans only (3) The All Other category includes TDRs classified as Held-For-Sale for the following periods : $38M in 1Q14, $16M in 2Q14, $13M in 3Q14, $29M in 4Q14 and $19M in 1Q15. $82 $67 $75 $83 $54 0.44% 0.35% 0.39%
Slide 9: Capital and liquidity
81% 82% 81% 82% 80% 1Q14 2Q14 3Q14 4Q14 1Q15 11.8% 12.5% 12.7% 12.5% 12.0% 1Q14 2Q14 3Q14 4Q14 1Q15 Capital and liquidity Repurchased $102 million of shares of common stock, completing the $350 million program that was part of 2014 CCAR Transitional basis Basel III Common Equity Tier 1 ratio est
Slide 10: Expectations for 2015
Expectations for 2015 Economic growth expected to pick up over the remainder of the year Continued improvement in housing prices expected Expect an increase in short- term rates in latter part of 2015 10 Economy Loans NIM / Operating leverage Expect total loan growth in the 4% to 6% range on
Slide 11: Appendix
Appendix Ms REGIONS
Slide 12: Energy lending
Energy lending 12 Energy Loan Portfolio Outstandings ($ in millions) As of 3/31/15 Oilfield Services and supply $1,192 Exploration and production (Upstream) $1,123 Midstream $258 Downstream $45 Other $227 Total Energy – Oil, Gas and Coal $2,845 Indirect exposure: $497 Direct and indirect exposure $3
Slide 13: Non-GAAP reconciliation: Non-interest expense and efficiency ratio
13 Non-GAAP reconciliation: Non- interest expense and efficiency ratio NM – Not Meaningful (1) Regions recorded $100 million of contingent legal and regulatory accruals during the fourth quarter of 2014 related to previously disclosed matters. (2) Regions recorded a non-tax deductible regulatory cha
Slide 14: 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 The calculation of the fully phased-in pro-forma "Common equity Tier 1" (CET1) is based on Regions’ understanding of the Final Basel III requirements. For Regions, the Basel III framework became effective on a
Slide 15: Forward-looking statements
Forward-looking statements 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 for the year
Slide 16: A REGIONS
A REGIONS REGIONS