EX-99.2 3 rf-20211231xexhibitx992.htm EX-99.2 Document

Exhibit 99.2

regionslogob22a.jpg
Regions Financial Corporation and Subsidiaries
Financial Supplement
Fourth Quarter 2021





Regions Financial Corporation and Subsidiaries                                
Financial Supplement to Fourth Quarter 2021 Earnings Release

Table of Contents
 
   Page
Financial Highlights  
Selected Ratios and Other Information  
Consolidated Statements of Income  
Consolidated Average Daily Balances and Yield / Rate Analysis  
Pre-Tax Pre-Provision Income ("PPI") and Adjusted PPI  
Non-Interest Income, Mortgage Income, Wealth Management Income and Capital Markets Income  
Non-Interest Expense  
Reconciliation to GAAP Financial Measures  
Adjusted Efficiency Ratios, Adjusted Fee Income Ratios, Adjusted Non-Interest Income / Expense, Adjusted Operating Leverage Ratios, and Return Ratios
Credit Quality  
Allowance for Credit Losses, Net Charge-Offs and Related Ratios  
Non-Accrual Loans (excludes loans held for sale), Early and Late Stage Delinquencies  
Troubled Debt Restructurings  
Consolidated Balance Sheets  
  
Loans   
Deposits  
Reconciliation to GAAP Financial Measures  
Tangible Common Ratios
Forward-Looking Statements



Regions Financial Corporation and Subsidiaries                                
Financial Supplement to Fourth Quarter 2021 Earnings Release
Financial Highlights
Quarter Ended
($ amounts in millions, except per share data)12/31/20219/30/20216/30/20213/31/202112/31/2020
Earnings Summary
Interest income - taxable equivalent$1,066 $1,017 $1,018 $1,024 $1,072 
Interest expense - taxable equivalent37 41 43 46 55 
Net interest income - taxable equivalent1,029 976 975 978 1,017 
Less: Taxable-equivalent adjustment10 11 12 11 11 
Net interest income 1,019 965 963 967 1,006 
Provision for (benefit from) credit losses110 (155)(337)(142)(38)
Net interest income after provision for (benefit from) credit losses909 1,120 1,300 1,109 1,044 
Non-interest income615 649 619 641 680 
Non-interest expense983 938 898 928 987 
Income before income taxes541 831 1,021 822 737 
Income tax expense103 180 231 180 121 
Net income$438 $651 $790 $642 $616 
Net income available to common shareholders$414 $624 $748 $614 $588 
Earnings per common share - basic$0.44 $0.65 $0.78 $0.64 $0.61 
Earnings per common share - diluted$0.43 $0.65 $0.77 $0.63 $0.61 
Balance Sheet Summary
At quarter-end
Loans, net of unearned income$87,784 $83,270 $84,074 $84,755 $85,266 
Allowance for credit losses(1,574 )(1,499 )(1,684 )(2,068 )(2,293 )
Assets162,938 156,153 155,610 153,331 147,389 
Deposits139,072 132,039 131,484 129,602 122,479 
Long-term borrowings2,407 2,451 2,870 2,916 3,569 
Shareholders' equity18,326 18,605 18,252 17,862 18,111 
Average balances
Loans, net of unearned income$86,548 $83,350 $84,551 $84,755 $86,664 
Assets160,051 155,630 154,678 146,554 144,819 
Deposits136,682 131,897 131,132 122,937 119,767 
Long-term borrowings2,433 2,774 2,901 3,192 4,634 
Shareholders' equity18,308 18,453 18,000 18,038 17,915 




1
Regions Financial Corporation and Subsidiaries                                
Financial Supplement to Fourth Quarter 2021 Earnings Release
Selected Ratios and Other Information
As of and for Quarter Ended
 12/31/20219/30/20216/30/20213/31/202112/31/2020
Return on average assets* (1)
1.09 %1.66 %2.05 %1.78 %1.69 %
Return on average common shareholders' equity*9.86 %14.75 %18.35 %15.20 %14.37 %
Return on average tangible common shareholders’ equity (non-GAAP)* (2)
15.07 %21.34 %26.91 %22.28 %21.15 %
Efficiency ratio59.8 %57.7 %56.4 %57.3 %58.1 %
Adjusted efficiency ratio (non-GAAP) (2)
58.8 %56.6 %56.9 %56.8 %55.8 %
Common book value per share$17.69 $17.75 $17.38 $16.87 $17.13 
Tangible common book value per share (non-GAAP) (2)
$11.38 $12.32 $11.94 $11.46 $11.71 
Tangible common shareholders’ equity to tangible assets (non-GAAP) (2)
6.83 %7.79 %7.58 %7.43 %7.91 %
Common equity (3)
$10,842 $11,628 $11,190 $10,952 $10,525 
Total risk-weighted assets (3)
$114,003 $108,052 $107,943 $106,261 $106,943 
Common equity Tier 1 ratio (3)
9.5 %10.8 %10.4 %10.3 %9.8 %
Tier 1 capital ratio (3)
11.0 %12.3 %11.9 %11.9 %11.4 %
Total risk-based capital ratio (3)
12.7 %14.1 %13.9 %14.0 %13.6 %
Leverage ratio (3)
8.1 %8.8 %8.6 %8.9 %8.7 %
Effective tax rate 18.9 %21.7 %22.6 %21.9 %16.5 %
Allowance for credit losses as a percentage of loans, net of unearned income1.79 %1.80 %2.00 %2.44 %2.69 %
Allowance for credit losses as a percentage of loans excluding PPP, net of unearned income (non-GAAP)(2)
1.81 %1.83 %2.07 %2.57 %2.81 %
Allowance for credit losses to non-performing loans, excluding loans held for sale 349 %283 %253 %280 %308 %
Net interest margin (FTE)* 2.83 %2.76 %2.81 %3.02 %3.13 %
Adjusted net interest margin (FTE) (non-GAAP) (2) *
3.34 %3.30 %3.31 %3.40 %3.40 %
Loans, net of unearned income, to total deposits63.1 %63.1 %63.9 %65.4 %69.6 %
Net charge-offs as a percentage of average loans*0.20 %0.14 %0.23 %0.40 %0.43 %
Non-accrual loans, excluding loans held for sale, as a percentage of loans0.51 %0.64 %0.79 %0.87 %0.87 %
Non-performing assets (excluding loans 90 days past due) as a percentage of loans, foreclosed properties, non-marketable investments and non-performing loans held for sale0.54 %0.66 %0.93 %0.90 %0.91 %
Non-performing assets (including loans 90 days past due) as a percentage of loans, foreclosed properties, non-marketable investments and non-performing loans held for sale (4)
0.70 %0.80 %1.09 %1.09 %1.10 %
Associate headcount—full-time equivalent(5)
19,626 18,963 18,814 18,926 19,406 
ATMs 2,068 2,051 2,051 2,101 2,083 
Branch Statistics
Full service1,268 1,276 1,280 1,332 1,333 
Drive-through/transaction service only34 34 33 34 36 
Total branch outlets1,302 1,310 1,313 1,366 1,369 

Year Ended December 31
20212020
Return on average assets (1)
1.63 %0.79 %
Return on average common stockholders' equity14.51 %6.24 %
Return on average tangible common stockholders’ equity (non-GAAP) (2)
21.42 %9.23 %
Efficiency ratio 57.8 %57.5 %
Adjusted efficiency ratio (non-GAAP) (2)
57.3 %56.6 %
Effective tax rate 21.6 %16.8 %
Net interest margin (FTE) 2.85 %3.21 %
Net charge-offs as a percentage of average loans0.24 %0.58 %
*Annualized
(1)Calculated by dividing net income by average assets.
(2)See reconciliation of GAAP to non-GAAP Financial Measures that begin on pages 6, 8, 12, 13, 14, 15, 20, 22, 23, and 26
(3)Current quarter Common equity as well as Total risk-weighted assets, Common equity Tier 1, Tier 1 capital, Total risk-based capital and Leverage ratios are estimated.
(4)Excludes guaranteed residential first mortgages that are 90+ days past due and still accruing. Refer to the footnotes on page 17 for amounts related to these loans.
(5)Associate headcount for the fourth quarter of 2021 includes approximately 620 associates from acquisitions closed in the quarter.


2
Regions Financial Corporation and Subsidiaries                                
Financial Supplement to Fourth Quarter 2021 Earnings Release
Consolidated Statements of Income (unaudited)
Quarter Ended
($ amounts in millions, except per share data)12/31/20219/30/20216/30/20213/31/202112/31/2020
Interest income on:
Loans, including fees $902 $847 $849 $854 $906 
Debt securities134 135 131 133 136 
Loans held for sale6 7 12 12 9 
Other earning assets 14 17 14 14 10 
Total interest income1,056 1,006 1,006 1,013 1,061 
Interest expense on:
Deposits13 15 17 19 24 
Long-term borrowings24 26 26 27 31 
Total interest expense37 41 43 46 55 
Net interest income 1,019 965 963 967 1,006 
Provision for (benefit from) credit losses110 (155)(337)(142)(38)
Net interest income after provision for (benefit from) credit losses909 1,120 1,300 1,109 1,044 
Non-interest income:
Service charges on deposit accounts166 162 163 157 160 
Card and ATM fees127 129 128 115 117 
Wealth management income100 95 96 91 89 
Capital markets income83 87 61 100 110 
Mortgage income49 50 53 90 75 
Securities gains (losses), net— 1 1 1 — 
Other90 125 117 87 129 
Total non-interest income615 649 619 641 680 
Non-interest expense:
Salaries and employee benefits575 552 532 546 581 
Equipment and software expense96 90 89 90 90 
Net occupancy expense76 75 75 77 78 
Other236 221 202 215 238 
Total non-interest expense983 938 898 928 987 
Income before income taxes541 831 1,021 822 737 
Income tax expense 103 180 231 180 121 
Net income $438 $651 $790 $642 $616 
Net income available to common shareholders$414 $624 $748 $614 $588 
Weighted-average shares outstanding—during quarter:
Basic949 955 958 961 960 
Diluted958 962 965 968 965 
Actual shares outstanding—end of quarter942 955 955 961 960 
Earnings per common share: (1)
Basic$0.44 $0.65 $0.78 $0.64 $0.61 
Diluted$0.43 $0.65 $0.77 $0.63 $0.61 
Taxable-equivalent net interest income$1,029 $976 $975 $978 $1,017 
________
(1) Quarterly amounts may not add to year-to-date amounts due to rounding.





3
Regions Financial Corporation and Subsidiaries                                
Financial Supplement to Fourth Quarter 2021 Earnings Release
Consolidated Statements of Income (continued) (unaudited)
Twelve Months Ended December 31
($ amounts in millions, except per share data)20212020
Interest income on:
Loans, including fees$3,452 $3,610 
Debt securities533 582 
Loans held for sale37 28 
Other earning assets 59 42 
Total interest income4,081 4,262 
Interest expense on:
Deposits64 180 
Short-term borrowings— 10 
Long-term borrowings103 178 
Total interest expense167 368 
Net interest income3,914 3,894 
Provision for (benefit from) credit losses(524)1,330 
Net interest income after provision for (benefit from) credit losses4,438 2,564 
Non-interest income:
Service charges on deposit accounts648 621 
Card and ATM fees499 438 
Wealth management income 382 337 
Capital markets income331 275 
Mortgage income242 333 
Securities gains (losses), net3 4 
Other419 385 
Total non-interest income2,524 2,393 
Non-interest expense:
Salaries and employee benefits2,205 2,100 
Equipment and software expense365 348 
Net occupancy expense303 313 
Other874 882 
Total non-interest expense3,747 3,643 
Income before income taxes3,215 1,314 
Income tax expense 694 220 
Net income $2,521 $1,094 
Net income available to common shareholders$2,400 $991 
Weighted-average shares outstanding—during year:
Basic956 959 
Diluted963 962 
Actual shares outstanding—end of period942 960 
Earnings per common share:
Basic$2.51 $1.03 
Diluted$2.49 $1.03 
Taxable-equivalent net interest income$3,958 $3,942 


4
Regions Financial Corporation and Subsidiaries                                
Financial Supplement to Fourth Quarter 2021 Earnings Release
Consolidated Average Daily Balances and Yield/Rate Analysis
 Quarter Ended
 12/31/20219/30/2021
($ amounts in millions; yields on taxable-equivalent basis)Average BalanceIncome/ Expense
Yield/ Rate (1)
Average BalanceIncome/ Expense
Yield/ Rate (1)
Assets
Earning assets:
Federal funds sold and securities purchased under agreements to resell$1 $— 0.18 %$2 $— 0.18 %
Debt securities (2)
29,264 134 1.83 29,308 135 1.85 
Loans held for sale855 6 2.98 1,044 7 2.64 
Loans, net of unearned income:
Commercial and industrial 42,254 468 4.39 41,892 464 4.38 
Commercial real estate mortgage—owner-occupied5,386 60 4.34 5,436 60 4.37 
Commercial real estate construction—owner-occupied263 3 3.95 246 2 4.14 
Commercial investor real estate mortgage5,531 30 2.13 5,605 32 2.18 
Commercial investor real estate construction1,654 11 2.72 1,706 12 2.72 
Residential first mortgage17,413 136 3.12 17,198 135 3.15 
Home equity6,334 55 3.51 6,523 58 3.53 
Consumer credit card1,155 35 12.16 1,128 35 12.19 
Other consumer—exit portfolios1,160 18 5.71 1,363 19 5.63 
Other consumer5,398 96 7.13 2,253 41 7.06 
Total loans, net of unearned income86,548 912 4.18 83,350 858 4.07 
Interest bearing deposits in other banks26,121 10 0.15 25,144 9 0.15 
Other earning assets1,276 4 1.41 1,303 8 2.06 
Total earning assets 144,065 1,066 2.94 140,151 1,017 2.88 
Unrealized gains/(losses) on debt securities available for sale, net (2)
331 674 
Allowance for loan losses(1,572)(1,581)
Cash and due from banks2,143 1,937 
Other non-earning assets15,084 14,449 
$160,051 $155,630 
Liabilities and Shareholders’ Equity
Interest-bearing liabilities:
Savings $14,854 5 0.12 $14,328 4 0.13 
Interest-bearing checking26,000 2 0.03 25,277 2 0.03 
Money market 31,483 1 0.02 30,765 2 0.02 
Time deposits6,505 5 0.36 4,527 7 0.55 
Other deposits— — — 1 — 1.50 
Total interest-bearing deposits (3)
78,842 13 0.07 74,898 15 0.08 
Federal funds purchased and securities sold under agreements to repurchase44 — 0.19 — — — 
Long-term borrowings2,433 24 3.93 2,774 26 3.65 
Total interest-bearing liabilities81,319 37 0.18 77,672 41 0.20 
Non-interest-bearing deposits (3)
57,840 — — 56,999 — — 
Total funding sources139,159 37 0.11 134,671 41 0.12 
Net interest spread (2)
2.76 2.67 
Other liabilities2,566 2,506 
Shareholders’ equity18,308 18,453 
Noncontrolling interest18 — 
$160,051 $155,630 
Net interest income /margin FTE basis (2)
$1,029 2.83 %$976 2.76 %
_______
(1) Amounts have been calculated using whole dollar values.
(2) Debt securities are included on an amortized cost basis with yield and net interest margin calculated accordingly.
(3) Total deposit costs may be calculated by dividing total interest expense on deposits by the sum of interest-bearing deposits and non-interest bearing deposits. The rates for total deposit costs equal 0.04% for the quarter ended December 31, 2021 and 0.04% for the quarter ended September 30, 2021.



5
Regions Financial Corporation and Subsidiaries                                
Financial Supplement to Fourth Quarter 2021 Earnings Release
Consolidated Average Daily Balances and Yield/Rate Analysis (continued)
 Quarter Ended
 6/30/20213/31/202112/31/2020
($ amounts in millions; yields on taxable-equivalent basis)Average BalanceIncome/ Expense
Yield/ Rate (1)
Average BalanceIncome/ Expense
Yield/ Rate (1)
Average BalanceIncome/ Expense
Yield/ Rate (1)
Assets
Earning assets:
Federal funds sold and securities purchased under agreements to resell$9 $— 0.13 %$— $— — %$— $— — %
Debt securities (2)
28,633 131 1.83 27,180 $133 1.96 26,779 136 2.02 
Loans held for sale1,382 12 3.36 1,603 12 3.10 1,253 9 2.62 
Loans, net of unearned income:
Commercial and industrial 43,140 467 4.32 42,816 459 4.33 43,889 491 4.44 
Commercial real estate mortgage—owner-occupied5,358 60 4.42 5,375 60 4.48 5,405 62 4.49 
Commercial real estate construction—owner-occupied276 3 4.05 303 3 3.89 303 3 3.95 
Commercial investor real estate mortgage5,521 30 2.19 5,375 30 2.22 5,549 32 2.22 
Commercial investor real estate construction1,761 12 2.73 1,847 13 2.75 1,899 13 2.82 
Residential first mortgage16,795 134 3.19 16,606 134 3.23 16,433 135 3.30 
Home equity6,774 60 3.52 7,085 62 3.55 7,411 67 3.61 
Consumer credit card1,108 33 12.13 1,151 35 12.19 1,190 37 12.40 
Other consumer—exit portfolios1,599 22 5.60 1,884 26 5.66 2,187 31 5.60 
Other consumer2,219 40 7.20 2,313 43 7.47 2,398 46 7.63 
Total loans, net of unearned income 84,551 861 4.07 84,755 865 4.11 86,664 917 4.20 
Interest bearing deposits in other banks23,337 7 0.11 16,509 4 0.10 13,379 3 0.10 
Other earning assets1,297 7 2.20 1,279 10 3.27 1,278 7 2.20 
Total earning assets
139,209 1,018 2.92 131,326 1,024 3.14 129,353 1,072 3.29 
Unrealized gains/(losses) on debt securities available for sale, net (2)
627 867 1,055 
Allowance for loan losses(1,896)(2,139)(2,286)
Cash and due from banks2,094 1,931 2,027 
Other non-earning assets14,644 14,569 14,670 
$154,678 $146,554 $144,819 
Liabilities and Shareholders’ Equity
Interest-bearing liabilities:
Savings $13,914 5 0.14 $12,340 5 0.15 $11,374 3 0.12 
Interest-bearing checking25,044 2 0.03 24,171 2 0.04 22,940 3 0.05 
Money market 30,762 2 0.03 29,425 3 0.04 29,312 5 0.06 
Time deposits4,813 8 0.64 5,158 9 0.74 5,598 13 0.86 
Other deposits4 — 0.55 4 — 1.81 11 — 1.93 
Total interest-bearing deposits (3)
74,537 17 0.09 71,098 19 0.11 69,235 24 0.13 
Federal funds purchased and securities sold under agreements to repurchase— — — — — — 35 — 0.24 
Long-term borrowings2,901 26 3.59 3,192 27 3.42 4,634 31 2.66 
Total interest-bearing liabilities 77,438 43 0.22 74,290 46 0.25 73,904 55 0.29 
Non-interest-bearing deposits (3)
56,595 — — 51,839 — — 50,532 — — 
Total funding sources134,033 43 0.13 126,129 46 0.15 124,436 55 0.17 
Net interest spread (2)
2.70 2.89 3.00 
Other liabilities2,645 2,387 2,468 
Shareholders’ equity18,000 18,038 17,915 
$154,678 $146,554 $144,819 
Net interest income/margin FTE basis (2)
$975 2.81 %$978 3.02 %$1,017 3.13 %
_______
(1) Amounts have been calculated using whole dollar values.
(2) Debt securities are included on an amortized cost basis with yield and net interest margin calculated accordingly.
(3) Total deposit costs may be calculated by dividing total interest expense on deposits by the sum of interest-bearing deposits and non-interest bearing deposits. The rates for total deposit costs equal 0.05% for the quarter ended June 30, 2021, 0.06% for the quarter ended March 31, 2021 and 0.08% for the quarter ended December 31, 2020.

Adjusted Net Interest Margin (non-GAAP)
Regions believes the adjusted net interest margin (non-GAAP) provides investors with meaningful additional information about Regions' performance when margin associated with the SBA's Paycheck Protection Program (PPP) loans and excess cash are excluded from net interest margin (GAAP).
Quarter-ended
12/31/20219/30/20216/30/20213/31/202112/31/2020
Net interest margin (FTE) (GAAP)2.83 %2.76 %2.81 %3.02 %3.13 %
Impact of SBA PPP loans (1)
(0.09)%(0.05)%(0.05)%(0.04)%(0.07)%
Impact of excess cash (2)
0.60 %0.59 %0.55 %0.42 %0.34 %
Adjusted net interest margin (FTE) (non-GAAP)3.34 %3.30 %3.31 %3.40 %3.40 %
_______
(1) The impact of SBA PPP loans was determined using average PPP loan balances and the related net interest income.
(2) The impact of excess cash was determined using the average cash balance in excess of $750 million and the related net interest income. The $750 million threshold approximates the average cash balance for the four quarters preceding the outbreak of the COVID-19 pandemic.

6
Regions Financial Corporation and Subsidiaries                                
Financial Supplement to Fourth Quarter 2021 Earnings Release
Consolidated Average Daily Balances and Yield/Rate Analysis (continued)
 Twelve Months Ended December 31
 20212020
($ amounts in millions; yields on taxable-equivalent basis)Average BalanceIncome/ Expense
Yield/ Rate (1)
Average BalanceIncome/ Expense
Yield/ Rate (1)
Assets
Earning assets:
Federal funds sold and securities purchased under agreements to resell$3 $— 0.14 %$— $— — %
Debt securities(2)
28,604 533 1.86 24,837 582 2.34 
Loans held for sale1,219 37 3.06 932 28 2.95 
Loans, net of unearned income:
Commercial and industrial 42,522 1,858 4.35 45,028 1,831 4.05 
Commercial real estate mortgage—owner-occupied5,389 240 4.40 5,476 249 4.48 
Commercial real estate construction—owner-occupied272 11 4.00 314 13 4.21 
Commercial investor real estate mortgage5,509 122 2.18 5,251 142 2.66 
Commercial investor real estate construction1,741 48 2.73 1,854 62 3.31 
Residential first mortgage17,006 539 3.17 15,397 540 3.51 
Home equity6,677 235 3.53 7,862 299 3.80 
Consumer credit card1,136 138 12.17 1,240 152 12.23 
Other consumer—exit portfolios1,499 85 5.65 2,758 162 5.88 
Other consumer3,051 220 7.19 2,633 208 7.91 
Total loans, net of unearned income84,802 3,496 4.11 87,813 3,658 4.15 
Interest bearing deposits in other banks22,810 30 0.13 7,688 9 0.13 
Other earning assets 1,289 29 2.23 1,382 33 2.37 
Total earning assets138,727 4,125 2.97 122,652 4,310 3.50 
Unrealized gains/(losses) on debt securities available for sale, net (2)
623 935 
Allowance for loan losses(1,795)(1,944)
Cash and due from banks2,027 2,047 
Other non-earning assets14,687 14,405 
$154,269 $138,095 
Liabilities and Shareholders’ Equity
Interest-bearing liabilities:
Savings $13,867 19 0.13 $10,325 14 0.14 
Interest-bearing checking25,128 8 0.03 21,522 35 0.16 
Money market 30,615 8 0.03 27,877 51 0.18 
Time deposits5,253 29 0.56 6,432 76 1.18 
Other deposits2 — 1.20 252 4 1.58 
Total interest-bearing deposits (2)
74,865 64 0.09 66,408 180 0.27 
Federal funds purchased and securities sold under agreements to repurchase12 — 0.19 46 1 1.18 
Other short-term borrowings— — — 797 9 1.13 
Long-term borrowings2,823 103 3.63 6,601 178 2.67 
Total interest-bearing liabilities77,700 167 0.21 73,852 368 0.50 
Non-interest-bearing deposits (2)
55,838 — — 44,386 — — 
Total funding sources133,538 167 0.12 118,238 368 0.31 
Net interest spread (2)
2.75 3.00 
Other liabilities2,525 2,469 
Shareholders’ equity18,201 17,382 
Noncontrolling interest5 6 
$154,269 $138,095 
Net interest income/margin FTE basis (2)
$3,958 2.85 %$3,942 3.21 %
_______
(1) Amounts have been calculated using whole dollar values.
(2) Debt securities are included on an amortized cost basis with yield and net interest margin calculated accordingly.
(3) Total deposit costs may be calculated by dividing total interest expense on deposits by the sum of interest-bearing deposits and non-interest bearing deposits. The rates for total
deposit costs equal 0.05% and 0.16% for the years ended December 31, 2021 and 2020, respectively.


7
Regions Financial Corporation and Subsidiaries                                
Financial Supplement to Fourth Quarter 2021 Earnings Release
Pre-Tax Pre-Provision Income ("PPI") and Adjusted PPI (non-GAAP)
The Pre-Tax Pre-Provision Income tables below present computations of pre-tax pre-provision income excluding certain adjustments (non-GAAP). Regions believes that the presentation of PPI and the exclusion of certain items from PPI provides a meaningful base for period-to-period comparisons, which management believes will assist investors in analyzing the operating results of the Company and predicting future performance. These non-GAAP financial measures are also used by management to assess the performance of Regions’ business. It is possible that the activities related to the adjustments may recur; however, management does not consider the activities related to the adjustments to be indications of ongoing operations. Regions believes that presentation of these non-GAAP financial measures will permit investors to assess the performance of the Company on the same basis as that applied by management. Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied and are not audited. Although these non-GAAP financial measures are frequently used by stakeholders in the evaluation of a company, they have limitations as analytical tools, and should not be considered in isolation, or as a substitute for analyses of results as reported under GAAP. In particular, a measure of income that excludes certain adjustments does not represent the amount that effectively accrues directly to shareholders.
 Quarter Ended
($ amounts in millions)12/31/20219/30/20216/30/20213/31/202112/31/20204Q21 vs. 3Q214Q21 vs. 4Q20
Net income available to common shareholders (GAAP)$414 $624 $748 $614 $588 $(210)(33.7)%$(174)(29.6)%
Preferred dividends and other (GAAP) (1)
24 27 42 28 28 (3)(11.1)%(4)(14.3)%
Income tax expense (GAAP)103 180 231 180 121 (77)(42.8)%(18)(14.9)%
Income before income taxes (GAAP)541 831 1,021 822 737 (290)(34.9)%(196)(26.6)%
Provision for (benefit from) credit losses (GAAP)110 (155)(337)(142)(38)265 171.0 %148 389.5 %
Pre-tax pre-provision income (non-GAAP)651 676 684 680 699 (25)(3.7)%(48)(6.9)%
Other adjustments:
Securities (gains) losses, net— (1)(1)(1)— 1 100.0 %— NM
Gains on equity investment (2)
— — — (3)(6)— NM6 100.0 %
Leveraged lease termination gains, net— (2)— — — 2 100.0 %— NM
Bank-owned life insurance (3)
— — (18)— (25)— NM25 100.0 %
Salaries and employee benefits—severance charges1 — 2 3 26 1 NM(25)(96.2)%
Branch consolidation, property and equipment charges— — — 5 7 — NM(7)(100.0)%
Contribution to the Regions Financial Corporation foundation— — 1 2 10 — NM(10)(100.0)%
Loss on early extinguishment of debt— 20 — — 14 (20)(100.0)%(14)(100.0)%
Professional, legal and regulatory expenses(4)
15 — — — — 15 NM15 NM
Total other adjustments16 17 (16)6 26 (1)(5.9)%(10)(38.5)%
Adjusted pre-tax pre-provision income (non-GAAP)$667 $693 $668 $686 $725 $(26)(3.8)%$(58)(8.0)%
Year Ended
($ amounts in millions)12/31/202112/31/20202021 vs. 2020
Net income available to common shareholders (GAAP)$2,400 $991 $1,409 142.2 %
Preferred dividends (GAAP) (1)
121 103 18 17.5 %
Income tax expense (GAAP)694 220 474 215.5 %
Income before income taxes (GAAP)3,215 1,314 1,901 144.7 %
Provision for credit losses (GAAP) (524)1,330 (1,854)(139.4)%
Pre-tax pre-provision income (non-GAAP)2,691 2,644 47 1.8 %
Other adjustments:
Securities (gains) losses, net(3)(4)1 25.0 %
Gains on equity investment (2)
(3)(50)47 94.0 
Leveraged lease termination gains, net(2)(2)— — %
Bank owned life insurance (3)
(18)(25)7 28.0 %
Salaries and employee benefits—severance charges6 31 (25)(80.6)%
Branch consolidation, property and equipment charges5 31 (26)(83.9)%
Contribution to the Regions Financial Corporation foundation3 10 (7)(70.0)%
Loss on early extinguishment of debt20 22 (2)(9.1)
Professional, legal and regulatory expenses(4)
15 7 8 114.3 
Ascentium expenses— 1 (1)(100.0)
Total other adjustments23 21 2 9.5 %
Adjusted pre-tax pre-provision income (non-GAAP)$2,714 $2,665 $49 1.8 %
______
NM - Not Meaningful
(1) The second quarter 2021 and year-to-date 2021 amounts include $13 million of Series A preferred stock issuance costs, which reduced net income available to common shareholders when the shares were redeemed during the second quarter of 2021.
(2) The first quarter 2021 amount is a gain on the sale of an equity investment, whereas the 2020 amounts are valuations gains on the investment that was sold in the first quarter 2021.
(3) The second quarter 2021 amount relates to an individual BOLI claim benefit. During the fourth quarter of 2020, the Company recognized a gain on the exchange of BOLI policies.
(4)    Amounts are professional and legal expenses related to acquisitions.



8
Regions Financial Corporation and Subsidiaries                                
Financial Supplement to Fourth Quarter 2021 Earnings Release
Non-Interest Income
 Quarter Ended
($ amounts in millions)12/31/20219/30/20216/30/20213/31/202112/31/20204Q21 vs. 3Q214Q21 vs. 4Q20
Service charges on deposit accounts$166 $162 $163 $157 $160 $4 2.5 %$6 3.8 %
Card and ATM fees127 129 128 115 117 (2)(1.6)%10 8.5 %
Wealth management income100 95 96 91 89 5 5.3 %11 12.4 %
Capital markets income (1)
83 87 61 100 110 (4)(4.6)%(27)(24.5)%
Mortgage income49 50 53 90 75 (1)(2.0)%(26)(34.7)%
Commercial credit fee income 23 23 23 22 22 — — %1 4.5 %
Bank-owned life insurance14 18 33 17 43 (4)(22.2)%(29)(67.4)%
Securities gains (losses), net— 1 1 1 — (1)(100.0)%— NM
Market value adjustments on employee benefit assets (2)
— 5 8 7 7 (5)(100.0)%(7)(100.0)%
Gains on equity investment (3)
— — — 3 6 — NM(6)(100.0)%
Other 53 79 53 38 51 (26)(32.9)%2 3.9 %
Total non-interest income$615 $649 $619 $641 $680 $(34)(5.2)%$(65)(9.6)%
Mortgage Income
Quarter Ended
($ amounts in millions)12/31/20219/30/20216/30/20213/31/202112/31/20204Q21 vs. 3Q214Q21 vs. 4Q20
Production and sales$46 $57 $50 $76 $74 $(11)(19.3)%$(28)(37.8)%
Loan servicing27 26 25 24 24 1 3.8 %3 12.5 %
MSR and related hedge impact:
MSRs fair value increase (decrease) due to change in valuation inputs or assumptions(6)(3)(38)90 5 (3)(100.0)%(11)(220.0)%
MSRs hedge gain (loss)1 (12)32 (83)(11)13 108.3 %12 109.1 %
MSRs change due to payment decay(19)(18)(16)(17)(17)(1)(5.6)%(2)(11.8)%
MSR and related hedge impact(24)(33)(22)(10)(23)9 27.3 %(1)(4.3)%
Total mortgage income$49 $50 $53 $90 $75 $(1)(2.0)%(26)(34.7)%
Mortgage production - portfolio$1,273 $1,548 $1,746 $1,470 $1,833 $(275)(17.8)%$(560)(30.6)%
Mortgage production - agency/secondary market1,133 1,276 1,255 1,306 1,553 (143)(11.2)%(420)(27.0)%
Total mortgage production$2,406 $2,824 $3,001 $2,776 $3,386 $(418)(14.8)%$(980)(28.9)%
Mortgage production - purchased58.6 %59.7 %63.6 %51.3 %49.3 %
Mortgage production - refinanced41.4 %40.3 %36.4 %48.7 %50.7 %
 
Wealth Management Income
Quarter Ended
($ amounts in millions)12/31/20219/30/20216/30/20213/31/202112/31/20204Q21 vs. 3Q214Q21 vs. 4Q20
Investment management and trust fee income$74 $69 $69 $66 $67 $5 7.2 %$7 10.4 %
Investment services fee income26 26 27 25 22 — — %4 18.2 %
Total wealth management income (4)
$100 $95 $96 $91 $89 $5 5.3 %$11 12.4 %
Capital Markets Income
Quarter Ended
($ amounts in millions)12/31/20219/30/20216/30/20213/31/202112/31/20204Q21 vs. 3Q214Q21 vs. 4Q20
Capital markets income$83 $87 $61 $100 $110 $(4)(4.6)%$(27)(24.5)%
Less: Valuation adjustments on customer derivatives (5)
— 1 (4)11 8 (1)(100.0)%(8)(100.0)%
Capital markets income excluding valuation adjustments $83 $86 $65 $89 $102 $(3)(3.5)%$(19)(18.6)%
_________
NM - Not Meaningful
(1)Capital markets income primarily relates to capital raising activities that includes debt securities underwriting and placement, loan syndication and placement, as well as foreign exchange, derivative and merger and acquisition advisory services.
(2)These market value adjustments relate to assets held for employee benefits that are offset within salaries and employee benefits expense.
(3)The first quarter 2021 amount is a gain on the sale of an equity investment, whereas the fourth quarter 2020 amount is a valuations gain on the investment that was sold in the first quarter 2021.
(4)Total wealth management income presented above does not include the portion of service charges on deposit accounts and similar smaller dollar amounts that are also attributable to the wealth management segment.
(5)For the purposes of determining the fair value of customer derivatives, the Company considers the risk of nonperformance by counterparties, as well as the Company's own risk of nonperformance. The valuation adjustments above are reflective of the values associated with these considerations.

9
Regions Financial Corporation and Subsidiaries                                
Financial Supplement to Fourth Quarter 2021 Earnings Release

Non-Interest Income
 Twelve Months EndedYear-to-Date 12/31/2021 vs. 12/31/2020
($ amounts in millions)12/31/202112/31/2020AmountPercent
Service charges on deposit accounts$648 $621 $27 4.3 %
Card and ATM fees499 438 61 13.9 %
Wealth management income382 337 45 13.4 %
Capital markets income (1)
331 275 56 20.4 %
Mortgage income242 333 (91)(27.3)%
Commercial credit fee income 91 77 14 18.2 %
Bank-owned life insurance82 95 (13)(13.7)%
Securities gains (losses), net3 4 (1)(25.0)%
Market value adjustments on employee benefit assets - other (2)
20 12 8 66.7 %
Gains on equity investment (3)
3 50 (47)(94.0)%
Other 223 151 72 47.7 %
Total non-interest income$2,524 $2,393 $131 5.5 %
Mortgage Income
Twelve Months EndedYear-to-Date 12/31/2021 vs. 12/31/2020
($ amounts in millions)12/31/202112/31/2020AmountPercent
Production and sales$229 $296 $(67)(22.6)%
Loan servicing102 95 7 7.4 %
MSR and related hedge impact:
MSRs fair value increase (decrease) due to change in valuation inputs or assumptions43 (89)132 148.3 %
MSRs hedge gain (loss)(62)99 (161)(162.6)%
MSRs change due to payment decay(70)(68)(2)(2.9)%
MSR and related hedge impact(89)(58)(31)(53.4)%
Total mortgage income$242 $333 $(91)(27.3)%
Mortgage production - portfolio$6,037 $7,225 $(1,188)(16.4)%
Mortgage production - agency/secondary market4,970 5,072 (102)(2.0)%
Total mortgage production $11,007 $12,297 $(1,290)(10.5)%
Mortgage production - purchased58.4 %46.6 %
Mortgage production - refinanced41.6 %53.4 %
Wealth Management Income
Twelve Months EndedYear-to-Date 12/31/2021 vs. 12/31/2020
($ amounts in millions)12/31/202112/31/2020AmountPercent
Investment management and trust fee income$278 $253 $25 9.9 %
Investment services fee income104 84 20 23.8 %
Total wealth management income (4)
$382 $337 $45 13.4 %
Capital Markets Income
Twelve Months EndedYear-to-Date 12/31/2021 vs. 12/31/2020
($ amounts in millions)12/31/202112/31/2020AmountPercent
Capital markets income$331 $275 $56 20.4 %
Less: Valuation adjustments on customer derivatives (5)
8 13 (5)(38.5)%
Capital markets income excluding valuation adjustments $323 $262 $61 23.3 %
_________
NM - Not Meaningful
(1)Capital markets income primarily relates to capital raising activities that includes debt securities underwriting and placement, loan syndication and placement, as well as foreign exchange, derivative and merger and acquisition advisory services.
(2)These market value adjustments relate to assets held for employee benefits that are offset within salaries and employee benefits expense.
(3)The 2021 amount is a gain on the sale of an equity investment, whereas the 2020 amount is a valuation gain on the investment that was sold in the first quarter 2021.
(4)Total wealth management income presented above does not include the portion of service charges on deposit accounts and similar smaller dollar amounts that are also attributable to the wealth management segment.
(5)For the purposes of determining the fair value of customer derivatives, the Company considers the risk of nonperformance by counterparties, as well as the Company's own risk of nonperformance. The valuation adjustments above are reflective of the values associated with these considerations.

10
Regions Financial Corporation and Subsidiaries                                
Financial Supplement to Fourth Quarter 2021 Earnings Release
Non-Interest Expense
Quarter Ended
($ amounts in millions)12/31/20219/30/20216/30/20213/31/202112/31/20204Q21 vs. 3Q214Q21 vs. 4Q20
Salaries and employee benefits$575 $552 $532 $546 $581 $23 4.2 %$(6)(1.0)%
Net occupancy expense76 75 75 77 78 1 1.3 %(2)(2.6)%
Equipment and software expense96 90 89 90 90 6 6.7 %6 6.7 %
Outside services41 38 39 38 37 3 7.9 %4 10.8 %
Professional, legal and regulatory expenses 33 21 15 29 21 12 57.1 %12 57.1 %
Marketing32 23 29 22 26 9 39.1 %6 23.1 %
FDIC insurance assessments13 11 11 10 12 2 18.2 %1 8.3 %
Credit/checkcard expenses15 16 17 14 13 (1)(6.3)%2 15.4 %
Branch consolidation, property and equipment charges — — — 5 7 — — %(7)(100.0)%
Visa class B shares expense8 4 6 4 6 4 100.0 %2 33.3 %
Loss on early extinguishment of debt— 20 — — 14 (20)(100.0)%(14)(100.0)%
Other94 88 85 93 102 6 6.8 %(8)(7.8)%
Total non-interest expense$983 $938 $898 $928 $987 $45 4.8 %$(4)(0.4)%

Twelve Months EndedYear-to-Date 12/31/2021 vs. 12/31/2020
($ amounts in millions)12/31/202112/31/2020AmountPercent
Salaries and employee benefits $2,205 $2,100 $105 5.0 %
Net occupancy expense303 313 (10)(3.2)%
Equipment and software expense365 348 17 4.9 %
Outside services156 170 (14)(8.2)%
Professional, legal and regulatory expenses 98 89 9 10.1 %
Marketing106 94 12 12.8 %
FDIC insurance assessments45 48 (3)(6.3)%
Credit/checkcard expenses62 50 12 24.0 %
Branch consolidation, property and equipment charges 5 31 (26)(83.9)%
Visa class B shares expense22 24 (2)(8.3)%
Loss on early extinguishment of debt20 22 (2)(9.1)%
Other360 354 6 1.7 %
Total non-interest expense$3,747 $3,643 $104 2.9 %
_________
NM - Not Meaningful




11
Regions Financial Corporation and Subsidiaries                                
Financial Supplement to Fourth Quarter 2021 Earnings Release
Reconciliation to GAAP Financial Measures
Adjusted Efficiency Ratios, Adjusted Fee Income Ratios, Adjusted Non-Interest Income/Expense, and Adjusted Operating Leverage Ratios
The table below presents computations of the efficiency ratio, which is a measure of productivity, generally calculated as non-interest expense divided by total revenue; and the fee income ratio, generally calculated as non-interest income divided by total revenue. Management uses these ratios to monitor performance and believes these measures provide meaningful information to investors. Non-interest expense (GAAP) is presented excluding certain adjustments to arrive at adjusted non-interest expense (non-GAAP), which is the numerator for the efficiency ratio. Non-interest income (GAAP) is presented excluding certain adjustments to arrive at adjusted non-interest income (non-GAAP), which is the numerator for the fee income ratio. Net interest income and non-interest income are added together to arrive at total revenue. Adjustments are made to arrive at adjusted total revenue (non-GAAP). Net interest income on a taxable-equivalent basis and non-interest income are added together to arrive at total revenue on a taxable-equivalent basis. Adjustments are made to arrive at adjusted total revenue on a taxable-equivalent basis (non-GAAP), which is the denominator for the fee income and efficiency ratios. Regions believes that the exclusion of these adjustments provides a meaningful basis for period-to-period comparisons, which management believes will assist investors in analyzing the operating results of the Company and predicting future performance. These non-GAAP financial measures are also used by management to assess the performance of Regions’ business. It is possible that the activities related to the adjustments may recur; however, management does not consider the activities related to the adjustments to be indications of ongoing operations. The table on the following page also presents a computation of the operating leverage ratio (non-GAAP) which is the period to period percentage change in adjusted total revenue on a taxable-equivalent basis (non-GAAP) less the percentage change in adjusted non-interest expense (non-GAAP). Regions believes that presentation of these non-GAAP financial measures will permit investors to assess the performance of the Company on the same basis as that applied by management.
 Quarter Ended
($ amounts in millions) 12/31/20219/30/20216/30/20213/31/202112/31/20204Q21 vs. 3Q214Q21 vs. 4Q20
Non-interest expense (GAAP)A$983 $938 $898 $928 $987 $45 4.8 %$(4)(0.4)%
Adjustments:
Contribution to the Regions Financial Corporation foundation — — (1)(2)(10)— NM10 100.0 
Branch consolidation, property and equipment charges— — — (5)(7)— NM7 100.0 %
Salaries and employee benefits—severance charges(1)— (2)(3)(26)(1)NM25 96.2 %
Loss on early extinguishment of debt— (20)— — (14)20 100.0 %14 NM
Professional, legal and regulatory expenses (1)
(15)— — — — (15)NM(15)NM
Adjusted non-interest expense (non-GAAP)B$967 $918 $895 $918 $930 $49 5.3 %$37 4.0 %
Net interest income (GAAP)C$1,019 $965 $963 $967 $1,006 $54 5.6 %$13 1.3 %
Taxable-equivalent adjustment10 11 12 11 11 (1)(9.1)%(1)(9.1)%
Net interest income, taxable-equivalent basisD$1,029 $976 $975 $978 $1,017 $53 5.4 %$12 1.2 %
Non-interest income (GAAP)E615 649 619 641 680 (34)(5.2)%(65)(9.6)%
Adjustments:
Securities (gains) losses, net— (1)(1)(1)— 1 100.0 %— NM
Gains on equity investment (2)
— — — (3)(6)— NM6 100.0 %
Leveraged lease termination gains— (2)— — — 2 100.0 %— NM
Bank-owned life insurance (3)
— — (18)— (25)— NM25 100.0 %
Adjusted non-interest income (non-GAAP)F$615 $646 $600 $637 $649 (31)(4.8)%$(34)(5.2)%
Total revenueC+E=G$1,634 $1,614 $1,582 $1,608 $1,686 $20 1.2 %$(52)(3.1)%
Adjusted total revenue (non-GAAP)C+F=H$1,634 $1,611 $1,563 $1,604 $1,655 $23 1.4 %$(21)(1.3)%
Total revenue, taxable-equivalent basisD+E=I$1,644 $1,625 $1,594 $1,619 $1,697 $19 1.2 %$(53)(3.1)%
Adjusted total revenue, taxable-equivalent basis (non-GAAP)D+F=J$1,644 $1,622 $1,575 $1,615 $1,666 $22 1.4 %$(22)(1.3)%
Efficiency ratio (GAAP) (4)
A/I59.8 %57.7 %56.4 %57.3 %58.1 %
Adjusted efficiency ratio (non-GAAP) (4)
B/J58.8 %56.6 %56.9 %56.8 %55.8 %
Fee income ratio (GAAP) (4)
E/I37.4 %40.0 %38.8 %39.6 %40.1 %
Adjusted fee income ratio (non-GAAP) (4)
F/J37.4 %39.8 %38.1 %39.4 %38.9 %
________
NM - Not Meaningful
(1)Amounts are professional and legal expenses related to acquisitions.
(2)The first quarter 2021 amount is a gain on the sale of an equity investment, whereas the fourth quarter 2020 amount is a valuation gain on the investment that was sold in the first quarter 2021.
(3)During the second quarter of 2021, the Company recognized an individual BOLI claim benefit. During the fourth quarter of 2020, the Company recognized a gain on the exchange of BOLI policies.
(4)Amounts have been calculated using whole dollar values.







12
Regions Financial Corporation and Subsidiaries                                
Financial Supplement to Fourth Quarter 2021 Earnings Release
Reconciliation to GAAP Financial Measures
Adjusted Efficiency Ratios, Adjusted Fee Income Ratios, Adjusted Non-Interest Income/Expense, and Adjusted Operating Leverage Ratios (continued)
Twelve Months Ended December 31
($ amounts in millions)202120202021 vs. 2020
Non-interest expense (GAAP)K$3,747 $3,643 $104 2.9 %
Adjustments:
Contribution to the Regions Financial Corporation foundation (3)(10)7 70.0 %
Branch consolidation, property and equipment charges(5)(31)26 83.9 %
Salaries and employee benefits—severance charges(6)(31)25 80.6 %
Loss on early extinguishment of debt(20)(22)2 9.1 %
Professional, legal and regulatory expenses (1)
(15)(7)(8)(114.3)%
Acquisition expenses— (1)1 100.0 %
Adjusted non-interest expense (non-GAAP)L$3,698 $3,541 $157 4.4 %
Net interest income (GAAP) M$3,914 $3,894 $20 0.5 %
Taxable-equivalent adjustment44 48 (4)(8.3)%
Net interest income, taxable-equivalent basisN$3,958 $3,942 $16 0.4 %
Non-interest income (GAAP)O$2,524 $2,393 $131 5.5 %
Adjustments:
Securities (gains) losses, net(3)(4)1 25.0 %
Gains on equity investment (2)
(3)(50)47 94.0 %
Leveraged lease termination gains(2)(2)— — %
Bank owned life insurance (3)
(18)(25)7 28.0 %
Adjusted non-interest income (non-GAAP)P$2,498 $2,312 $186 8.0 %
Total revenueM+O=Q$6,438 $6,287 $151 2.4 %
Adjusted total revenue (non-GAAP)M+P=R$6,412 $6,206 $206 3.3 %
Total revenue, taxable-equivalent basisN+O=S$6,482 $6,335 $147 2.3 %
Adjusted total revenue, taxable-equivalent basis (non-GAAP)N+P=T$6,456 $6,254 $202 3.2 %
Operating leverage ratio (GAAP) (4)
S-K(0.6)%
Adjusted operating leverage ratio (non-GAAP) (4)
T-L(1.2)%
Efficiency ratio (GAAP) (4)
K/S57.8 %57.5 %
Adjusted efficiency ratio (non-GAAP) (4)
L/T57.3 %56.6 %
Fee income ratio (GAAP) (4)
O/S38.9 %37.8 %
Adjusted fee income ratio (non-GAAP) (4)
P/T38.7 %37.0 %
______
NM - Not Meaningful
(1)Amounts are professional and legal expenses related to acquisitions.
(2)The 2021 amount is a gain on the sale of an equity investment, whereas the 2020 amount is a valuation gain on the investment that was sold in the first quarter 2021.
(3)During the second quarter of 2021, the Company recognized an individual BOLI claim benefit. During the fourth quarter of 2020, the Company recognized a gain on the exchange of BOLI policies.
(4)Amounts have been calculated using whole dollar values.






13
Regions Financial Corporation and Subsidiaries                                
Financial Supplement to Fourth Quarter 2021 Earnings Release
Reconciliation to GAAP Financial Measure

Return Ratio

The table below provides a calculation of “return on average tangible common shareholders’ equity”. Tangible common shareholders’ equity ratios have become a focus of some investors and management believes they may assist investors in analyzing the capital position of the Company absent the effects of intangible assets and preferred stock. Analysts and banking regulators have assessed Regions’ capital adequacy using the tangible common shareholders’ equity measure. Because tangible common shareholders’ equity is not formally defined by GAAP or prescribed in any amount by federal banking regulations it is currently considered to be a non-GAAP financial measure and other entities may calculate it differently than Regions’ disclosed calculations. Since analysts and banking regulators may assess Regions’ capital adequacy using tangible common shareholders’ equity, management believes that it is useful to provide investors the ability to assess Regions’ capital adequacy on this same basis.
Quarter Ended
($ amounts in millions)12/31/20219/30/20216/30/20213/31/202112/31/2020
RETURN ON AVERAGE TANGIBLE COMMON SHAREHOLDERS' EQUITY
Net income available to common shareholders (GAAP)A$414 $624 $748 $614 $588 
Average shareholders' equity (GAAP)$18,308 $18,453 $18,000 $18,038 $17,915 
Less:
Average intangible assets (GAAP)5,852 5,285 5,292 5,309 5,313 
Average deferred tax liability related to intangibles (GAAP) (98)(96)(96)(104)(105)
Average preferred stock (GAAP)1,660 1,659 1,659 1,656 1,656 
Average tangible common shareholders' equity (non-GAAP)B$10,894 $11,605 $11,145 $11,177 $11,051 
Return on average tangible common shareholders' equity (non-GAAP) *(1)
A/B15.07 %21.34 %26.91 %22.28 %21.15 %


Year Ended
($ amounts in millions)20212020
RETURN ON AVERAGE TANGIBLE COMMON STOCKHOLDERS' EQUITY
Net income available to common shareholders (GAAP)E$2,400 $991 
Average stockholders' equity (GAAP)$18,201 $17,382 
Less:
Average intangible assets (GAAP)5,435 5,239 
Average deferred tax liability related to intangibles (GAAP)(99)(99)
Average preferred stock (GAAP)1,658 1,509 
Average tangible common stockholders' equity (non-GAAP)F$11,207 $10,733 
Return on average tangible common stockholders' equity (non-GAAP)(1)
E/F21.42 %9.23 %
___
*Annualized
(1)Amounts have been calculated using whole dollar values.


14
Regions Financial Corporation and Subsidiaries                                
Financial Supplement to Fourth Quarter 2021 Earnings Release
Credit Quality
As of and for Quarter Ended
($ amounts in millions)12/31/20219/30/20216/30/20213/31/202112/31/2020
Components:
Beginning allowance for loan losses (ALL)$1,428 $1,597 $1,976 $2,167 $2,276 
Loans charged-off:
Commercial and industrial23 21 35 45 67 
Commercial real estate mortgage—owner-occupied— 1 1 1 2 
Commercial real estate construction—owner-occupied— — — 1 — 
Total commercial23 22 36 47 69 
Commercial investor real estate mortgage1 — 4 15 1 
Total investor real estate1 — 4 15 1 
Residential first mortgage1 — — 1 3 
Home equity—lines of credit1 1 2 2 3 
Home equity—closed-end— — 1 — 1 
Consumer credit card10 9 12 12 12 
Other consumer—exit portfolios6 7 7 11 13 
Other consumer30 20 21 26 24 
Total consumer48 37 43 52 56 
Total72 59 83 114 126 
Recoveries of loans previously charged-off:
Commercial and industrial12 14 14 16 14 
Commercial real estate mortgage—owner-occupied— 2 1 — 1 
Commercial real estate construction—owner-occupied— — — — — 
Total commercial12 16 15 16 15 
Commercial investor real estate mortgage— 1 2 — 2 
Total investor real estate— 1 2 — 2 
Residential first mortgage2 — 2 1 — 
Home equity—lines of credit3 3 5 3 4 
Home equity—closed-end1 1 2 — 1 
Consumer credit card3 2 3 3 3 
Other consumer—exit portfolios— 2 1 2 2 
Other consumer7 4 6 6 5 
Total consumer16 12 19 15 15 
Total28 29 36 31 32 
Net charge-offs (recoveries):
Commercial and industrial11 7 21 29 53 
Commercial real estate mortgage—owner-occupied— (1)— 1 1 
Commercial real estate construction—owner-occupied— — — 1 — 
Total commercial11 6 21 31 54 
Commercial investor real estate mortgage1 (1)2 15 (1)
Total investor real estate1 (1)2 15 (1)
Residential first mortgage(1)— (2)— 3 
Home equity—lines of credit(2)(2)(3)(1)(1)
Home equity—closed-end(1)(1)(1)— — 
Consumer credit card7 7 9 9 9 
Other consumer—exit portfolios6 5 6 9 11 
Other consumer23 16 15 20 19 
Total consumer32 25 24 37 41 
Total$44 $30 $47 $83 $94 
Provision for (benefit from) loan losses$86 $(139)$(332)$(108)$(15)
Initial allowance on acquired purchased credit deteriorated loans9 — — — — 
Ending allowance for loan losses (ALL)1,479 1,428 1,597 1,976 2,167 
Beginning reserve for unfunded credit commitments71 87 92 126 149 
Provision for (benefit from) unfunded credit losses24 (16)(5)(34)(23)
Ending reserve for unfunded commitments95 71 87 92 126 
Allowance for credit losses (ACL) at period end$1,574 $1,499 $1,684 $2,068 $2,293 

15
Regions Financial Corporation and Subsidiaries                                
Financial Supplement to Fourth Quarter 2021 Earnings Release
Credit Quality (continued)
As of and for Quarter Ended
($ amounts in millions)12/31/20219/30/20216/30/20213/31/202112/31/2020
Net loan charge-offs as a % of average loans, annualized (1):
Commercial and industrial0.11 %0.06 %0.19 %0.28 %0.48 %
Commercial real estate mortgage—owner-occupied0.01 %(0.06)%(0.03)%0.09 %0.07 %
Commercial real estate construction—owner-occupied0.18 %0.10 %0.38 %0.93 %— %
Total commercial0.10 %0.05 %0.17 %0.26 %0.44 %
Commercial investor real estate mortgage0.01 %(0.05)%0.19 %1.11 %(0.04)%
Commercial investor real estate construction— %— %(0.01)%— %(0.01)%
Total investor real estate0.01 %(0.03)%0.14 %0.82 %(0.03)%
Residential first mortgage(0.02)%(0.01)%(0.04)%— %0.08 %
Home equity—lines of credit(0.22)%(0.24)%(0.29)%(0.06)%(0.11)%
Home equity—closed-end(0.16)%(0.10)%(0.10)%— %0.03 %
Consumer credit card2.42 %2.57 %3.17 %3.19 %3.02 %
Other consumer—exit portfolios1.69 %1.58 %1.49 %1.98 %1.97 %
Other consumer1.69 %2.80 %2.63 %3.56 %3.02 %
Total consumer0.39 %0.35 %0.34 %0.52 %0.54 %
Total0.20 %0.14 %0.23 %0.40 %0.43 %
Non-performing loans, excluding loans held for sale$451 $530 $666 $738 $745 
Non-performing loans held for sale13 3 99 8 6 
Non-performing loans, including loans held for sale464 533 765 746 751 
Foreclosed properties10 13 15 21 25 
Non-performing assets (NPAs)$474 $546 $780 $767 $776 
Loans past due > 90 days (2)
$140 $124 $134 $154 $164 
Criticized loans—business (3)
$2,905 $3,054 $3,222 $3,756 $3,800 
Credit Ratios (2):
ACL/Loans, net1.79 %1.80 %2.00 %2.44 %2.69 %
ALL/Loans, net1.69 %1.71 %1.90 %2.33 %2.54 %
Allowance for credit losses to non-performing loans, excluding loans held for sale349 %283 %253 %280 %308 %
Allowance for loan losses to non-performing loans, excluding loans held for sale328 %269 %240 %268 %291 %
Non-performing loans, excluding loans held for sale/Loans, net0.51 %0.64 %0.79 %0.87 %0.87 %
NPAs (ex. 90+ past due)/Loans, foreclosed properties, and non-performing loans held for sale0.54 %0.66 %0.93 %0.90 %0.91 %
NPAs (inc. 90+ past due)/Loans, foreclosed properties, and non-performing loans held for sale (1)
0.70 %0.80 %1.09 %1.09 %1.10 %
(1)Amounts have been calculated using whole dollar values.
(2)Excludes guaranteed residential first mortgages that are 90+ days past due and still accruing. Refer to the footnotes on page 16 for amounts related to these loans.
(3)Business represents the combined total of commercial and investor real estate loans.

ACL/ Loans excluding PPP, net (non-GAAP)
Regions believes this Allowance for Credit Losses (ACL) ratio provides investors with meaningful additional information about credit loss allowance levels when the SBA's Paycheck Protection Program (PPP) loans, which are fully backed by the U.S. government, are excluded from total loans and the related allowance for credit losses is excluded from the total allowance for credit losses.

As of
($ amounts in millions)12/31/20219/30/20216/30/20213/31/202112/31/2020
Total Loans$87,784 $83,270 $84,074 $84,755 $85,266 
Less: SBA PPP Loans748 1,536 2,948 4,317 3,624 
Loans excluding PPP, net (non-GAAP)$87,036 $81,734 $81,126 $80,438 $81,642 
ACL at period end$1,574 $1,499 $1,684 $2,068 $2,293 
Less: SBA PPP Loans' ACL2 2 3 3 1 
ACL excluding PPP Loans' ACL (non-GAAP)$1,572 $1,497 $1,681 $2,065 $2,292 
ACL/Loans excluding PPP, net (non-GAAP)1.81 %1.83 %2.07 %2.57 %2.81 %


16
Regions Financial Corporation and Subsidiaries                                
Financial Supplement to Fourth Quarter 2021 Earnings Release
Non-Performing Loans (excludes loans held for sale)
 As of
($ amounts in millions, %'s calculated using whole dollar values)12/31/20219/30/20216/30/20213/31/202112/31/2020
Commercial and industrial$305 0.70 %$359 0.86 %$472 1.11 %$426 0.98 %$418 0.97 %
Commercial real estate mortgage—owner-occupied52 0.98 %68 1.26 %76 1.41 %93 1.73 %97 1.80 %
Commercial real estate construction—owner-occupied11 4.11 %11 4.22 %10 4.02 %9 3.24 %9 3.01 %
Total commercial368 0.75 %438 0.92 %558 1.16 %528 1.08 %524 1.08 %
Commercial investor real estate mortgage3 0.06 %4 0.07 %4 0.07 %100 1.86 %114 2.11 %
Total investor real estate3 0.05 %4 0.05 %4 0.05 %100 1.39 %114 1.57 %
Residential first mortgage33 0.19 %37 0.22 %51 0.30 %53 0.32 %53 0.32 %
Home equity—lines of credit40 1.08 %44 1.15 %45 1.12 %48 1.12 %46 1.01 %
Home equity—closed-end7 0.27 %7 0.27 %8 0.30 %9 0.31 %8 0.29 %
Total consumer80 0.25 %88 0.31 %104 0.36 %110 0.38 %107 0.36 %
Total non-performing loans$451 0.51 %$530 0.64 %$666 0.79 %$738 0.87 %$745 0.87 %

Early and Late Stage Delinquencies
Accruing 30-89 Days Past Due Loans
As of
($ amounts in millions, %'s calculated using whole dollar values)12/31/20219/30/20216/30/20213/31/202112/31/2020
Commercial and industrial $64 0.15 %$34 0.08 %$35 0.08 %$42 0.10 %$59 0.14 %
Commercial real estate mortgage—owner-occupied4 0.09 %7 0.14 %7 0.13 %9 0.16 %5 0.09 %
Commercial real estate construction—owner-occupied— 0.07 %1 0.23 %— 0.14 %1 0.27 %1 0.30 %
Total commercial68 0.14 %42 0.09 %42 0.09 %52 0.11 %65 0.13 %
Commercial investor real estate mortgage— — %— — %4 0.07 %2 0.04 %3 0.06 %
Commercial investor real estate construction— — %— — %— — %1 0.03 %— — %
Total investor real estate— — %— — %4 0.06 %3 0.04 %3 0.04 %
Residential first mortgage—non-guaranteed (1)
64 0.38 %60 0.36 %51 0.31 %62 0.39 %80 0.51 %
Home equity—lines of credit21 0.57 %22 0.56 %18 0.45 %22 0.50 %35 0.78 %
Home equity—closed-end 11 0.44 %10 0.40 %10 0.39 %12 0.47 %17 0.60 %
Consumer credit card15 1.23 %12 1.02 %11 0.95 %12 1.09 %14 1.15 %
Other consumer—exit portfolios14 1.30 %14 1.08 %15 0.99 %18 1.06 %29 1.42 %
Other consumer46 0.85 %17 0.75 %16 0.70 %17 0.77 %25 1.07 %
Total consumer (1)
171 0.67 %135 0.49 %121 0.43 %143 0.51 %200 0.70 %
Total accruing 30-89 days past due loans (1)
$239 0.27 %$177 0.21 %$167 0.20 %$198 0.24 %$268 0.32 %
Accruing 90+ Days Past Due LoansAs of
($ amounts in millions, %'s calculated using whole dollar values)12/31/20219/30/20216/30/20213/31/202112/31/2020
Commercial and industrial$5 0.01 %$3 0.01 %$4 0.01 %$8 0.02 %$7 0.02 %
Commercial real estate mortgage—owner-occupied1 0.01 %2 0.03 %2 0.03 %1 0.02 %1 0.01 %
Total commercial6 0.01 %5 0.01 %6 0.01 %9 0.02 %8 0.02 %
Residential first mortgage—non-guaranteed (2)
74 0.44 %68 0.41 %75 0.46 %87 0.55 %99 0.62 %
Home equity—lines of credit21 0.56 %20 0.53 %21 0.51 %19 0.45 %19 0.41 %
Home equity—closed-end 12 0.49 %13 0.49 %13 0.48 %14 0.52 %13 0.49 %
Consumer credit card12 1.04 %11 0.97 %12 1.05 %14 1.25 %14 1.19 %
Other consumer—exit portfolios2 0.21 %2 0.18 %2 0.17 %3 0.18 %4 0.20 %
Other consumer13 0.23 %5 0.22 %5 0.24 %8 0.33 %7 0.30 %
Total consumer (2)
134 0.58 %119 0.43 %128 0.46 %145 0.52 %156 0.54 %
Total accruing 90+ days past due loans (2)
$140 0.16 %$124 0.15 %$134 0.16 %$154 0.18 %$164 0.19 %
Total delinquencies (1) (2)
$379 0.43 %$301 0.36 %$301 0.36 %$352 0.42 %$432 0.51 %
(1)Excludes loans that are 100% guaranteed by FHA and guaranteed loans sold to GNMA where Regions has the right but not the obligation to repurchase. Total 30-89 days past due guaranteed loans excluded were $40 million at 12/31/2021, $40 million at 9/30/2021, $46 million at 6/30/2021, $58 million at 3/31/2021, and $65 million at 12/31/2020.
(2)Excludes loans that are 100% guaranteed by FHA and all guaranteed loans sold to GNMA where Regions has the right but not the obligation to repurchase. Total 90 days or more past due guaranteed loans excluded were $49 million at 12/31/2021, $44 million at 9/30/2021, $44 million at 6/30/2021, $51 million at 3/31/2021, and $57 million at 12/31/2020.

17
Regions Financial Corporation and Subsidiaries                                
Financial Supplement to Fourth Quarter 2021 Earnings Release
Troubled Debt Restructurings
 
 As of
($ amounts in millions)12/31/20219/30/20216/30/20213/31/202112/31/2020
Current:
Commercial $81 $86 $71 $75 $76 
Investor real estate1 28 75 11 44 
Residential first mortgage206 210 206 197 174 
Home equity—lines of credit27 29 31 33 34 
Home equity—closed-end55 58 62 68 73 
Consumer credit card— — — 1 1 
Other consumer4 4 4 4 3 
Total current374 415 449 389 405 
Accruing 30-89 DPD:
Commercial — — 1 2 1 
Investor real estate— — — 1 — 
Residential first mortgage14 13 11 11 14 
Home equity—lines of credit1 — — — 1 
Home equity—closed-end3 3 3 3 5 
Other consumer— — — — 1 
Total accruing 30-89 DPD18 16 15 17 22 
Total accruing and <90 DPD392 431 464 406 427 
Non-accrual or 90+ DPD:
Commercial 87 74 114 125 124 
Residential first mortgage31 32 32 36 42 
Home equity—lines of credit2 3 3 3 2 
Home equity—closed-end6 6 7 7 7 
Total non-accrual or 90+DPD126 115 156 171 175 
Total TDRs - Loans$518 $546 $620 $577 $602 
TDRs - Held For Sale— 2 — 1 1 
Total TDRs$518 $548 $620 $578 $603 
Total TDRs - Loans by Portfolio
As of
($ amounts in millions)12/31/20219/30/20216/30/20213/31/202112/31/2020
Total commercial TDRs$168 $160 $186 $202 $201 
Total investor real estate TDRs1 28 75 12 44 
Total consumer TDRs349 358 359 363 357 
Total TDRs - Loans$518 $546 $620 $577 $602 


18
Regions Financial Corporation and Subsidiaries                                
Financial Supplement to Fourth Quarter 2021 Earnings Release
Consolidated Balance Sheets (unaudited)
As of
($ amounts in millions)12/31/20219/30/20216/30/20213/31/202112/31/2020
Assets:
Cash and due from banks$1,350 $1,741 $1,820 $1,918 $1,558 
Interest-bearing deposits in other banks28,061 25,766 23,774 23,002 16,398 
Debt securities held to maturity899 945 993 1,059 1,122 
Debt securities available for sale28,481 28,986 29,290 27,092 27,154 
Loans held for sale1,003 934 1,194 1,487 1,905 
Loans, net of unearned income 87,784 83,270 84,074 84,755 85,266 
Allowance for loan losses
(1,479)(1,428)(1,597)(1,976)(2,167)
Net loans86,305 81,842 82,477 82,779 83,099 
Other earning assets1,187 1,269 1,246 1,262 1,217 
Premises and equipment, net1,814 1,805 1,825 1,852 1,897 
Interest receivable319 304 323 336 346 
Goodwill5,744 5,181 5,181 5,181 5,190 
Residential mortgage servicing rights at fair value (MSRs)418 410 392 401 296 
Other identifiable intangible assets, net305 101 108 114 122 
Other assets7,052 6,869 6,987 6,848 7,085 
Total assets$162,938 $156,153 $155,610 $153,331 $147,389 
Liabilities and Equity:
Deposits:
Non-interest-bearing$58,369 $57,145 $56,468 $55,925 $51,289 
Interest-bearing80,703 74,894 75,016 73,677 71,190 
Total deposits139,072 132,039 131,484 129,602 122,479 
Borrowed funds:
Long-term borrowings2,407 2,451 2,870 2,916 3,569 
Other liabilities3,133 3,040 3,004 2,951 3,230 
Total liabilities144,612 137,530 137,358 135,469 129,278 
Equity:
Preferred stock, non-cumulative perpetual1,659 1,659 1,659 1,656 1,656 
Common stock10 10 10 10 10 
Additional paid-in capital12,189 12,479 12,467 12,740 12,731 
Retained earnings5,550 5,296 4,836 4,235 3,770 
Treasury stock, at cost(1,371)(1,371)(1,371)(1,371)(1,371)
Accumulated other comprehensive income, net289 532 651 592 1,315 
Total shareholders’ equity18,326 18,605 18,252 17,862 18,111 
Noncontrolling interest
— 18 — — — 
Total equity
18,326 18,623 18,252 17,862 18,111 
Total liabilities and equity
$162,938 $156,153 $155,610 $153,331 $147,389 








19
Regions Financial Corporation and Subsidiaries                                
Financial Supplement to Fourth Quarter 2021 Earnings Release
End of Period Loans
As of
    12/31/202112/31/2021
($ amounts in millions)12/31/20219/30/20216/30/20213/31/202112/31/2020 vs. 9/30/2021 vs. 12/31/2020
Commercial and industrial$43,758 $41,748 $42,628 $43,241 $42,870 $2,010 4.8 %$888 2.1 %
Commercial real estate mortgage—owner-occupied5,287 5,446 5,381 5,335 5,405 (159)(2.9)%(118)(2.2)%
Commercial real estate construction—owner-occupied264 252 245 293 300 12 4.8 %(36)(12.0)%
Total commercial49,309 47,446 48,254 48,869 48,575 1,863 3.9 %734 1.5 %
Commercial investor real estate mortgage 5,441 5,608 5,449 5,405 5,394 (167)(3.0)%47 0.9 %
Commercial investor real estate construction1,586 1,704 1,799 1,817 1,869 (118)(6.9)%(283)(15.1)%
Total investor real estate7,027 7,312 7,248 7,222 7,263 (285)(3.9)%(236)(3.2)%
Total business56,336 54,758 55,502 56,091 55,838 1,578 2.9 %498 0.9 %
Residential first mortgage17,512 17,347 17,051 16,643 16,575 165 1.0 %937 5.7 %
Home equity—lines of credit (1)
3,744 3,875 4,057 4,286 4,539 (131)(3.4)%(795)(17.5)%
Home equity—closed-end (2)
2,510 2,556 2,588 2,631 2,713 (46)(1.8)%(203)(7.5)%
Consumer credit card1,184 1,136 1,131 1,111 1,213 48 4.2 %(29)(2.4)%
Other consumer—exit portfolios (3)
1,071 1,260 1,479 1,739 2,035 (189)(15.0)%(964)(47.4)%
Other consumer5,427 2,338 2,266 2,254 2,353 3,089 132.1 %3,074 130.6 %
Total consumer31,448 28,512 28,572 28,664 29,428 2,936 10.3 %2,020 6.9 %
Total Loans$87,784 $83,270 $84,074 $84,755 $85,266 $4,514 5.4 %$2,518 3.0 %
_______
NM - Not meaningful.
(1)     The balance of Regions' home equity lines of credit consists of $2,089 million of first lien and $1,655 million of second lien at 12/31/2021.
(2)    The balance of Regions' closed-end home equity loans consists of $2,334 million of first lien and $176 million of second lien at 12/31/2021.
(3)    Regions ceased originating indirect vehicle loans in the second quarter of 2019 and decided not to renew another third party relationship in the fourth quarter of 2019.

Adjusted Ending Balances of Loans (non-GAAP)
Regions believes adjusting ending loan balances for the impact of commercial loans transferred to held for sale, SBA PPP loans and the other consumer exit portfolio, provides a meaningful calculation of loan growth rates and presents them on the same basis as that applied by management.

As of
12/31/202112/31/2021
($ amounts in millions)12/31/20219/30/20216/30/20213/31/202112/31/2020 vs. 9/30/2021 vs. 12/31/2020
Commercial and industrial$43,758 $41,748 $42,628 $43,241 $42,870 $2,010 4.8 %$888 2.1 %
Add: Commercial loans held for sale reclassified to the portfolio(1)
— — — 210 239 — NM(239)(100.0)%
Less: SBA PPP Loans748 1,536 2,948 4,317 3,624 (788)(51.3)%(2,876)(79.4)%
Adjusted commercial and industrial loans (non-GAAP)$43,010 $40,212 $39,680 $39,134 $39,485 $2,798 7.0 %$3,525 8.9 %
Total commercial loans$49,309 $47,446 $48,254 $48,869 $48,575 $1,863 3.9 %$734 1.5 %
Add: Commercial loans held for sale reclassified to the portfolio(1)
— — — 210 239 — NM(239)(100.0)%
Less: SBA PPP Loans748 1,536 2,948 4,317 3,624 (788)(51.3)%(2,876)(79.4)%
Adjusted total commercial loans (non-GAAP)$48,561 $45,910 $45,306 $44,762 $45,190 $2,651 5.8 %$3,371 7.5 %
Total business loans$56,336 $54,758 $55,502 $56,091 $55,838 $1,578 2.9 %$498 0.9 %
Add: Commercial loans held for sale reclassified to the portfolio(1)
— — — 210 239 — NM(239)(100.0)%
Less: SBA PPP Loans748 1,536 2,948 4,317 3,624 (788)(51.3)%(2,876)(79.4)%
Adjusted total business loans (non-GAAP)$55,588 $53,222 $52,554 $51,984 $52,453 $2,366 4.4 %$3,135 6.0 %
Total consumer loans$31,448 $28,512 $28,572 $28,664 $29,428 $2,936 10.3 %$2,020 6.9 %
Less: Other consumer- exit portfolios (2)
1,071 1,260 1,479 1,739 2,035 (189)(15.0)%(964)(47.4)%
Adjusted total consumer loans (non-GAAP)30,377 27,252 27,093 26,925 27,393 $3,125 11.5 %$2,984 10.9 %
Total loans$87,784 $83,270 $84,074 $84,755 $85,266 $4,514 5.4 %$2,518 3.0 %
Add: Commercial loans held for sale reclassified to the portfolio(1)
— — — 210 239 — NM(239)(100.0)%
Less: SBA PPP Loans748 1,536 2,948 4,317 3,624 (788)(51.3)%(2,876)(79.4)%
Less: Other consumer- exit portfolios (2)
1,071 1,260 1,479 1,739 2,035 (189)(15.0)%(964)(47.4)%
Adjusted ending total loans (non-GAAP)$85,965 $80,474 $79,647 $78,909 $79,846 $5,491 6.8 %$6,119 7.7 %
_______
NM - Not meaningful.
(1)On December 31, 2020, Regions reclassified a certain portfolio of approximately $239 million of commercial and industrial loans to loans held for sale. On June 1, 2021, Regions made the decision not to sell the respective loans, therefore the remaining balance of approximately $193 million was reclassified back into the held for investment portfolio.
(2)Regions ceased originating indirect vehicle loans in the second quarter of 2019 and decided not to renew another third party relationship in the fourth quarter of 2019.





20
Regions Financial Corporation and Subsidiaries                                
Financial Supplement to Fourth Quarter 2021 Earnings Release

End of Period Loans (continued)
As of
End of Period Loans by Percentage12/31/20219/30/20216/30/20213/31/202112/31/2020
Commercial and industrial49.9 %50.1 %50.7 %51.0 %50.3 %
Commercial real estate mortgage—owner-occupied6.0 %6.5 %6.4 %6.3 %6.3 %
Commercial real estate construction—owner-occupied0.3 %0.3 %0.3 %0.3 %0.4 %
Total commercial56.2 %56.9 %57.4 %57.6 %57.0 %
Commercial investor real estate mortgage6.2 %6.7 %6.5 %6.4 %6.3 %
Commercial investor real estate construction1.8 %2.0 %2.1 %2.1 %2.2 %
Total investor real estate8.0 %8.7 %8.6 %8.5 %8.5 %
Total business64.2 %65.6 %66.0 %66.1 %65.5 %
Residential first mortgage19.9 %20.8 %20.3 %19.6 %19.4 %
Home equity—lines of credit 4.3 %4.7 %4.8 %5.1 %5.3 %
Home equity—closed-end 2.9 %3.1 %3.1 %3.1 %3.2 %
Consumer credit card1.3 %1.4 %1.3 %1.3 %1.4 %
Other consumer—exit portfolios1.2 %1.5 %1.8 %2.1 %2.4 %
Other consumer6.2 %2.8 %2.7 %2.7 %2.8 %
Total consumer35.8 %34.4 %34.0 %33.9 %34.5 %
Total Loans100.0 %100.0 %100.0 %100.0 %100.0 %


21
Regions Financial Corporation and Subsidiaries                                
Financial Supplement to Fourth Quarter 2021 Earnings Release
Average Balances of Loans
 Average Balances
($ amounts in millions)4Q213Q212Q211Q214Q204Q21 vs. 3Q214Q21 vs. 4Q20
Commercial and industrial$42,254 $41,892 $43,140 $42,816 $43,889 $362 0.9 %$(1,635)(3.7)%
Commercial real estate mortgage—owner-occupied5,386 5,436 5,358 5,375 5,405 (50)(0.9)%(19)(0.4)%
Commercial real estate construction—owner-occupied263 246 276 303 303 17 6.9 %(40)(13.2)%
Total commercial47,903 47,574 48,774 48,494 49,597 329 0.7 %(1,694)(3.4)%
Commercial investor real estate mortgage5,531 5,605 5,521 5,375 5,549 (74)(1.3)%(18)(0.3)%
Commercial investor real estate construction1,654 1,706 1,761 1,847 1,899 (52)(3.0)%(245)(12.9)%
Total investor real estate7,185 7,311 7,282 7,222 7,448 (126)(1.7)%(263)(3.5)%
Total business 55,088 54,885 56,056 55,716 57,045 203 0.4 %(1,957)(3.4)%
Residential first mortgage17,413 17,198 16,795 16,606 16,433 215 1.3 %980 6.0 %
Home equity—lines of credit3,806 3,956 4,165 4,416 4,646 (150)(3.8)%(840)(18.1)%
Home equity—closed-end2,528 2,567 2,609 2,669 2,765 (39)(1.5)%(237)(8.6)%
Consumer credit card1,155 1,128 1,108 1,151 1,190 27 2.4 %(35)(2.9)%
Other consumer—exit portfolios (1)
1,160 1,363 1,599 1,884 2,187 (203)(14.9)%(1,027)(47.0)%
Other consumer5,398 2,253 2,219 2,313 2,398 3,145 139.6 %3,000 125.1 %
Total consumer31,460 28,465 28,495 29,039 29,619 2,995 10.5 %1,841 6.2 %
Total loans$86,548 $83,350 $84,551 $84,755 $86,664 $3,198 3.8 %$(116)(0.1)%
_____
NM - Not meaningful.
(1)Regions ceased originating indirect vehicle lending in the second quarter of 2019 and decided not to renew another third party relationship in the fourth quarter of 2019.


Adjusted Average Balances of Loans (non-GAAP)
Regions believes adjusting total average loans for the impact of commercial loans transferred to held for sale, SBA PPP loans, the indirect-other consumer exit portfolio and the indirect- vehicles exit portfolio, provides a meaningful calculation of loan growth rates and presents them on the same basis as that applied by management.
 Average Balances
($ amounts in millions)4Q213Q212Q211Q214Q204Q21 vs. 3Q214Q21 vs. 4Q20
Commercial and industrial$42,254 $41,892 $43,140 $42,816 $43,889 $362 0.9 %$(1,635)(3.7)%
Add: Commercial loans held for sale reclassified to the portfolio(1)
— — 138 231 3 — NM(3)(100.0)%
Less: SBA PPP Loans1,088 2,138 3,901 3,798 4,143 (1,050)(49.1)%(3,055)(73.7)%
Adjusted commercial and industrial loans (non-GAAP)$41,166 $39,754 $39,377 $39,249 $39,749 $1,412 3.6 %$1,417 3.6 %
Total commercial loans$47,903 $47,574 $48,774 $48,494 $49,597 $329 0.7 %$(1,694)(3.4)%
Add: Commercial loans held for sale reclassified to the portfolio(1)
— — 138 231 — — NM— NM
Less: SBA PPP Loans1,088 2,138 3,901 3,798 4,143 (1,050)(49.1)%(3,055)(73.7)%
Adjusted total commercial loans (non-GAAP)$46,815 $45,436 $45,011 $44,927 $45,454 $1,379 3.0 %$1,361 3.0 %
Total business loans$55,088 $54,885 $56,056 $55,716 $57,045 $203 0.4 %$(1,957)(3.4)%
Add: Commercial loans held for sale reclassified to the portfolio(1)
— — 138 231 3 — NM(3)(100.0)%
Less: SBA PPP Loans1,088 2,138 3,901 3,798 4,143 (1,050)(49.1)%(3,055)(73.7)%
Adjusted total business loans (non-GAAP)$54,000 $52,747 $52,293 $52,149 $52,905 $1,253 2.4 %$1,095 2.1 %
Total consumer loans$31,460 $28,465 $28,495 $29,039 $29,619 $2,995 10.5 %$1,841 6.2 %
Less: other consumer—exit portfolios (2)
1,160 1,363 1,599 1,884 2,187 (203)(14.9)%(1,027)(47.0)%
Adjusted total consumer loans (non-GAAP)$30,300 $27,102 $26,896 $27,155 $27,432 $3,198 11.8 %$2,868 10.5 %
Total loans$86,548 $83,350 $84,551 $84,755 $86,664 $3,198 3.8 %$(116)(0.1)%
Add: Commercial loans held for sale reclassified to the portfolio(1)
— — 138 231 3 — NM(3)(100.0)%
Less: SBA PPP Loans1,088 2,138 3,901 3,798 4,143 (1,050)(49.1)%(3,055)(73.7)%
Less: other consumer—exit portfolios (2)
1,160 1,363 1,599 1,884 2,187 (203)(14.9)%(1,027)(47.0)%
Adjusted total loans (non-GAAP)$84,300 $79,849 $79,189 $79,304 $80,337 $4,451 5.6 %$3,963 4.9 %
NM - Not meaningful.
(1)On December 31, 2020, Regions reclassified a certain portfolio of approximately $239 million of commercial and industrial loans to loans held for sale. On June 1, 2021, Regions made the decision not to sell the respective loans, therefore the remaining balance of approximately $193 million was reclassified back into the held for investment portfolio.
(2)Regions ceased originating indirect vehicle lending in the second quarter of 2019 and decided not to renew another third party relationship in the fourth quarter of 2019.






22
Regions Financial Corporation and Subsidiaries                                
Financial Supplement to Fourth Quarter 2021 Earnings Release
Average Balances of Loans (continued)

Average Balances
Twelve Months Ended December 31
($ amounts in millions)202120202021 vs. 2020
Commercial and industrial$42,522 $45,028 $(2,506)(5.6)%
Commercial real estate mortgage—owner-occupied5,389 5,476 (87)(1.6)%
Commercial real estate construction—owner-occupied272 314 (42)(13.4)%
Total commercial48,183 50,818 (2,635)(5.2)%
Commercial investor real estate mortgage5,509 5,251 258 4.9 %
Commercial investor real estate construction1,741 1,854 (113)(6.1)%
Total investor real estate7,250 7,105 145 2.0 %
Total business 55,433 57,923 (2,490)(4.3)%
Residential first mortgage17,006 15,397 1,609 10.5 %
Home equity—lines of credit4,084 4,948 (864)(17.5)%
Home equity—closed-end2,593 2,914 (321)(11.0)%
Consumer credit card1,136 1,240 (104)(8.4)%
Other consumer—exit portfolios (1)
1,499 2,758 (1,259)(45.6)%
Other consumer3,051 2,633 418 15.9 %
Total consumer29,369 29,890 (521)(1.7)%
Total Loans$84,802 $87,813 $(3,011)(3.4)%
_____
NM - Not meaningful.
(1)Regions ceased originating indirect vehicle lending in the second quarter of 2019 and decided not to renew a third party relationship in the fourth quarter of 2019.


Adjusted Average Balances of Loans (non-GAAP)
Regions believes adjusting total average loans for the impact of commercial loans transferred to held for sale, SBA PPP loans, the indirect- other consumer exit portfolio and the indirect vehicles exit portfolio, provides a meaningful calculation of loan growth rates and presents them on the same basis as that applied by management.
Average Balances
Twelve Months Ended December 31
($ amounts in millions)202120202021 vs. 2020
Commercial and industrial$42,522 $45,028 $(2,506)(5.6)%
Add: Commercial loans held for sale reclassified to the portfolio (1)
91 1 90 NM
Less: SBA PPP Loans2,722 2,986 (264)(8.8)%
Adjusted commercial and industrial loans (non-GAAP)$39,891 $42,043 $(2,152)(5.1)%
Total commercial loans$48,183 $50,818 $(2,635)(5.2)%
Add: Commercial loans held for sale reclassified to the portfolio (1)
91 1 90 NM
Less: SBA PPP Loans2,722 2,986 (264)(8.8)%
Adjusted total commercial loans (non-GAAP)$45,552 $47,833 $(2,281)(4.8)%
Total business loans$55,433 $57,923 $(2,490)(4.3)%
Add: Commercial loans held for sale reclassified to the portfolio (1)
91 1 90 NM
Less: SBA PPP Loans2,722 2,986 (264)(8.8)%
Adjusted total business loans (non-GAAP)$52,802 $54,938 $(2,136)(3.9)%
Total consumer loans$29,369 $29,890 $(521)(1.7)%
Less: other consumer—exit portfolios (2)
1,499 2,758 (1,259)(45.6)%
Adjusted total consumer loans (non-GAAP)$27,870 $27,132 $738 2.7 %
Total Loans$84,802 $87,813 $(3,011)(3.4)%
Add: Commercial loans held for sale reclassified to the portfolio (1)
91 1 90 NM
Less: SBA PPP Loans2,722 2,986 (264)(8.8)%
Less: other consumer—exit portfolios (2)
1,499 2,758 (1,259)(45.6)%
Adjusted total loans (non-GAAP)$80,672 $82,070 $(1,398)(1.7)%
NM - Not meaningful.
(1)On December 31, 2020, Regions reclassified a certain portfolio of approximately $239 million of commercial and industrial loans to loans held for sale. On June 1, 2021, Regions made the decision not to sell the respective loans, therefore the remaining balance of approximately $193 million was reclassified back into the held for investment portfolio.
(2)Regions ceased originating indirect vehicle lending in the second quarter of 2019 and decided not to renew another third party relationship in the fourth quarter of 2019.


23
Regions Financial Corporation and Subsidiaries                                
Financial Supplement to Fourth Quarter 2021 Earnings Release
End of Period Deposits
 As of
     12/31/202112/31/2021
($ amounts in millions)12/31/20219/30/20216/30/20213/31/202112/31/2020 vs. 9/30/2021 vs. 12/31/2020
Interest-free deposits$58,369 $57,145 $56,468 $55,925 $51,289$1,2242.1%$7,08013.8%
Interest-bearing checking28,018 25,217 25,512 24,757 24,4842,80111.1%3,53414.4%
Savings15,134 14,573 14,099 13,500 11,6355613.8%3,49930.1%
Money market—domestic31,408 30,736 30,725 30,448 29,7196722.2%1,6895.7%
Low-cost deposits132,929 127,671 126,804 124,630 117,1275,2584.1%15,80213.5%
Time deposits6,143 4,368 4,679 4,970 5,3411,77540.6%80215.0%
Total Customer Deposits139,072 132,039 131,483 129,600 122,4687,0335.3%16,60413.6%
Corporate treasury time deposits— — 1 2 11—NM(11)(100.0)%
Total Deposits$139,072 $132,039 $131,484 $129,602 $122,479$7,0335.3%$16,59313.5%
 As of
   12/31/202112/31/2021
($ amounts in millions)12/31/20219/30/20216/30/20213/31/202112/31/2020 vs. 9/30/2021 vs. 12/31/2020
Consumer Bank Segment$82,849 $79,873 $78,428 $77,381 $71,652$2,9763.7%$11,19715.6%
Corporate Bank Segment42,689 41,442 43,147 42,211 40,7451,2473.0%1,9444.8%
Wealth Management Segment10,853 10,251 9,477 9,537 9,7186025.9%1,13511.7%
Other (1)
2,681 473 432 473 3642,208466.8%2,317NM
Total Deposits$139,072 $132,039 $131,484 $129,602 $122,479$7,0335.3%$16,59313.5%
 As of
    12/31/202112/31/2021
($ amounts in millions)12/31/20219/30/20216/30/20213/31/202112/31/2020 vs. 9/30/2021 vs. 12/31/2020
Wealth Management - Private Wealth$10,033 $9,046 $8,614 $8,589 $8,462$98710.9%$1,57118.6%
Wealth Management - Institutional Services820 1,205 863 948 1,256(385)(32.0)%(436)(34.7)%
Total Wealth Management Segment Deposits$10,853 $10,251 $9,477 $9,537 $9,718$6025.9%$1,13511.7%
As of
End of Period Deposits by Percentage12/31/20219/30/20216/30/20213/31/202112/31/2020
Interest-free deposits42.0 %43.3 %42.9 %43.2 %41.9 %
Interest-bearing checking20.1 %19.1 %19.4 %19.1 %20.0 %
Savings10.9 %11.0 %10.7 %10.4 %9.5 %
Money market—domestic22.6 %23.3 %23.4 %23.5 %24.3 %
Low-cost deposits95.6 %96.7 %96.4 %96.2 %95.7 %
Time deposits4.4 %3.3 %3.6 %3.8 %4.3 %
Total Deposits100.0 %100.0 %100.0 %100.0 %100.0 %
NM - Not meaningful.
(1)Other deposits represent non-customer balances primarily consisting of wholesale funding (for example, Eurodollar trade deposits, selected deposits and brokered time deposits).










24
Regions Financial Corporation and Subsidiaries                                
Financial Supplement to Fourth Quarter 2021 Earnings Release
Average Balances of Deposits
Average Balances
($ amounts in millions)4Q213Q212Q211Q214Q204Q21 vs. 3Q214Q21 vs. 4Q20
Interest-free deposits$57,840 $56,999 $56,595 $51,839 $50,532 $841 1.5 %$7,308 14.5 %
Interest-bearing checking26,000 25,277 25,044 24,171 22,940 723 2.9 %3,060 13.3 %
Savings14,854 14,328 13,914 12,340 11,374 526 3.7 %3,480 30.6 %
Money market—domestic31,483 30,765 30,762 29,425 29,312 718 2.3 %2,171 7.4 %
Low-cost deposits130,177 127,369 126,315 117,775 114,158 2,808 2.2 %16,019 14.0 %
Time deposits6,505 4,527 4,813 5,158 5,598 1,978 43.7 %907 16.2 %
Total Customer Deposits136,682 131,896 131,128 122,933 119,756 4,786 3.6 %16,926 14.1 %
Corporate treasury time deposits— 1 1 4 11 (1)(100.0)%(11)(100.0)%
Corporate treasury other deposits— — 3 — — — NM— NM
Total Deposits$136,682 $131,897 $131,132 $122,937 $119,767 $4,785 3.6 %16,915 14.1 %
 Average Balances
($ amounts in millions)4Q213Q212Q211Q214Q204Q21 vs. 3Q214Q21 vs. 4Q20
Consumer Bank Segment$80,930 $79,098 $78,200 $72,949 $69,912 $1,832 2.3 %$11,018 15.8 %
Corporate Bank Segment42,659 42,525 42,966 40,285 40,581 134 0.3 %2,078 5.1 %
Wealth Management Segment10,054 9,873 9,519 9,281 8,884 181 1.8 %1,170 13.2 %
Other (1)
3,039 401 447 422 390 2,638 NM2,649 NM
Total Deposits$136,682 $131,897 $131,132 $122,937 $119,767 $4,785 3.6 %$16,915 14.1 %
 Average Balances
($ amounts in millions)4Q213Q212Q211Q214Q204Q21 vs. 3Q214Q21 vs. 4Q20
Wealth Management - Private Wealth$9,266 $9,036 $8,673 $8,442 $8,106 $230 2.5 %$1,160 14.3 %
Wealth Management - Institutional Services788 837 846 839 778 (49)(5.9)%10 1.3 %
Total Wealth Management Segment Deposits$10,054 $9,873 $9,519 $9,281 $8,884 $181 1.8 %$1,170 13.2 %


Average Balances
Twelve Months Ended December 31
($ amounts in millions)202120202021 vs. 2020
Interest-free deposits$55,838 $44,386 $11,452 25.8 %
Interest-bearing checking25,128 21,522 3,606 16.8 %
Savings13,867 10,325 3,542 34.3 %
Money market—domestic30,615 27,877 2,738 9.8 %
Low-cost deposits125,448 104,110 21,338 20.5 %
Time deposits5,253 6,432 (1,179)(18.3)%
Total Customer Deposits130,701 110,542 20,159 18.2 %
Corporate treasury time deposits1 93 (92)(98.9)%
Corporate treasury other deposits1 159 (158)(99.4)%
Total Deposits$130,703 $110,794 $19,909 18.0 %
Average Balances
Twelve Months Ended December 31
($ amounts in millions)202120202021 vs. 2020
Consumer Bank Segment$77,820 $66,065 $11,755 17.8 %
Corporate Bank Segment42,115 35,613 6,502 18.3 %
Wealth Management Segment9,684 8,501 1,183 13.9 %
Other (1)
1,084 615 469 76.3 %
Total Deposits$130,703 $110,794 $19,909 18.0 %
Average Balances
Twelve Months Ended December 31
($ amounts in millions)202120202021 vs. 2020
Wealth Management - Private Wealth$8,857 $7,573 $1,284 17.0 %
Wealth Management - Institutional Services827 928 (101)(10.9)%
Total Wealth Management Segment Deposits$9,684 $8,501 $1,183 13.9 %
________
NM - Not meaningful.
(1)Other deposits represent non-customer balances primarily consisting of wholesale funding (for example, Eurodollar trade deposits, selected deposits and brokered time deposits).


25
Regions Financial Corporation and Subsidiaries                                
Financial Supplement to Fourth Quarter 2021 Earnings Release
Reconciliation to GAAP Financial Measures
Tangible Common Ratios
The following tables provide the calculation of the end of period “tangible common shareholders’ equity” and "tangible common book value per share" ratios, and a reconciliation of shareholders’ equity (GAAP) to tangible common shareholders’ equity (non-GAAP). Since analysts and banking regulators may assess Regions’ capital adequacy using tangible common shareholders' equity, we believe that it is useful to provide investors the ability to assess Regions’ capital adequacy on this same basis.

  As of and for Quarter Ended
($ amounts in millions, except per share data) 12/31/20219/30/20216/30/20213/31/202112/31/2020
Tangible Common Ratios
Shareholders’ equity (GAAP)$18,326 $18,605 $18,252 $17,862 $18,111 
Less:
Preferred stock (GAAP)1,659 1,659 1,659 1,656 1,656 
Intangible assets (GAAP)6,049 5,282 5,289 5,295 5,312 
Deferred tax liability related to intangibles (GAAP)(100)(97)(96)(96)(106)
Tangible common shareholders’ equity (non-GAAP)A$10,718 $11,761 $11,400 $11,007 $11,249 
Total assets (GAAP)$162,938 $156,153 $155,610 $153,331 $147,389 
Less:
Intangible assets (GAAP)6,049 5,282 5,289 5,295 5,312 
Deferred tax liability related to intangibles (GAAP)(100)(97)(96)(96)(106)
Tangible assets (non-GAAP)B$156,989 $150,968 $150,417 $148,132 $142,183 
Shares outstanding—end of quarterC942 955 955 961 960 
Tangible common shareholders’ equity to tangible assets (non-GAAP) (1)
A/B6.83 %7.79 %7.58 %7.43 %7.91 %
Tangible common book value per share (non-GAAP) (1)
A/C$11.38 $12.32 $11.94 $11.46 $11.71 
_________
(1)Amounts have been calculated using whole dollar values.


26
Regions Financial Corporation and Subsidiaries                                
Financial Supplement to Fourth Quarter 2021 Earnings Release
Forward-Looking Statements
This release 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 other developments. Forward-looking statements are based on management’s current expectations as well as certain assumptions and estimates made by, and information available to, management at the time the statements are made. Those statements are based on general assumptions and are subject to various risks, and because they also relate to the future they are likewise subject to inherent uncertainties and other factors that may cause actual results to differ materially from the views, beliefs and projections expressed in such statements. Therefore, we caution you against relying on any of these forward-looking statements. These risks, uncertainties and other factors include, but are not limited to, those described below:
•Current and future economic and market conditions in the United States generally or in the communities we serve (in particular the Southeastern United States), including the effects of possible declines in property values, increases in unemployment rates, financial market disruptions and potential reductions of economic growth, which may adversely affect our lending and other businesses and our financial results and conditions.
•Possible changes in trade, monetary and fiscal policies of, and other activities undertaken by, governments, agencies, central banks and similar organizations, which could have a material adverse effect on our earnings.
•Possible changes in market interest rates or capital markets could adversely affect our revenue and expense, the value of assets and obligations, and the availability and cost of capital and liquidity.
•The impact of pandemics, including the ongoing COVID-19 pandemic, on our businesses, operations, and financial results and conditions. The duration and severity of any pandemic, including the COVID-19 pandemic, could disrupt the global economy, adversely affect our capital and liquidity position, impair the ability of borrowers to repay outstanding loans and increase our allowance for credit losses, impair collateral values, and result in lost revenue or additional expenses.
•Any impairment of our goodwill or other intangibles, any repricing of assets, or any adjustment of valuation allowances on our deferred tax assets due to changes in tax law, adverse changes in the economic environment, declining operations of the reporting unit or other factors.
•The effect of new tax legislation and/or interpretation of existing tax law, which may impact our earnings, capital ratios, and our ability to return capital to shareholders.
•Possible changes in the creditworthiness of customers and the possible impairment of the collectability of loans and leases, including operating leases.
•Changes in the speed of loan prepayments, loan origination and sale volumes, charge-offs, credit loss provisions or actual credit losses where our allowance for credit losses may not be adequate to cover our eventual losses.
•Possible acceleration of prepayments on mortgage-backed securities due to low interest rates, and the related acceleration of premium amortization on those securities.
•Loss of customer checking and savings account deposits as customers pursue other, higher-yield investments, which could increase our funding costs.
•Possible changes in consumer and business spending and saving habits and the related effect on our ability to increase assets and to attract deposits, which could adversely affect our net income.
•Our ability to effectively compete with other traditional and non-traditional financial services companies, including fintechs, some of whom possess greater financial resources than we do or are subject to different regulatory standards than we are.
•Our inability to develop and gain acceptance from current and prospective customers for new products and services and the enhancement of existing products and services to meet customers’ needs and respond to emerging technological trends in a timely manner could have a negative impact on our revenue.
•Our inability to keep pace with technological changes, including those related to the offering of digital banking and financial services, could result in losing business to competitors.
•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 result of the changes in U.S. presidential administration, control of the U.S. Congress, and changes in personnel at the bank regulatory agencies, which could require us to change certain business practices, increase compliance risk, reduce our revenue, impose additional costs on us, or otherwise negatively affect our businesses.
•Our capital actions, including dividend payments, common stock repurchases, or redemptions of preferred stock, must not cause us to fall below minimum capital ratio requirements, with applicable buffers taken into account, and must comply with other requirements and restrictions under law or imposed by our regulators, which may impact our ability to return capital to shareholders.
•Our ability to comply with stress testing and capital planning requirements (as part of the CCAR process or otherwise) may continue to require a significant investment of our managerial resources due to the importance of such tests and requirements.
•Our ability to comply with applicable capital and liquidity requirements (including, among other things, the Basel III capital standards), including our ability to generate capital internally or raise capital on favorable terms, and if we fail to meet requirements, our financial condition and market perceptions of us could be negatively impacted.
•The effects of any developments, changes or actions relating to any litigation or regulatory proceedings brought against us or any of our subsidiaries.
•The costs, including possibly incurring fines, penalties, or other negative effects (including reputational harm) of any adverse judicial, administrative, or arbitral rulings or proceedings, regulatory enforcement actions, or other legal actions to which we or any of our subsidiaries are a party, and which may adversely affect our results.
•Our ability to manage fluctuations in the value of assets and liabilities and off-balance sheet exposure so as to maintain sufficient capital and liquidity to support our businesses.
•Our ability to execute on our strategic and operational plans, including our ability to fully realize the financial and nonfinancial benefits relating to our strategic initiatives.
•The risks and uncertainties related to our acquisition or divestiture of businesses, including our recently completed acquisitions of EnerBank, Sabal Capital Partners, and Clearsight Advisors, and risks related to such acquisitions, including that the expected synergies, cost savings and other financial or other benefits may not be realized within the expected timeframes, or might be less than projected; difficulties in integrating the businesses; and the inability of Regions to effectively cross-sell products following these acquisitions.
•The success of our marketing efforts in attracting and retaining customers.
•Our ability to recruit and retain talented and experienced personnel to assist in the development, management and operation of our products and services may be affected by changes in laws and regulations in effect from time to time.
•Fraud or misconduct by our customers, employees or business partners.
•Any inaccurate or incomplete information provided to us by our customers or counterparties.
•Inability of our framework to manage risks associated with our businesses, such as credit risk and operational risk, including third-party vendors and other service providers, which could, among other things, result in a breach of operating or security systems as a result of a cyber attack or similar act or failure to deliver our services effectively.
•Dependence on key suppliers or vendors to obtain equipment and other supplies for our businesses on acceptable terms.
•The inability of our internal controls and procedures to prevent, detect or mitigate any material errors or fraudulent acts.

27
Regions Financial Corporation and Subsidiaries                                
Financial Supplement to Fourth Quarter 2021 Earnings Release
•The effects of geopolitical instability, including wars, conflicts, civil unrest, and terrorist attacks and the potential impact, directly or indirectly, on our businesses.
•The effects of man-made and natural disasters, including fires, floods, droughts, tornadoes, hurricanes, and environmental damage (specifically in the Southeastern United States), which may negatively affect our operations and/or our loan portfolios and increase our cost of conducting business. The severity and frequency of future earthquakes, fires, hurricanes, tornadoes, droughts, floods and other weather-related events are difficult to predict and may be exacerbated by global climate change.
•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 manufacture equipment used in the production of commodities), which could impair their ability to service any loans outstanding to them and/or reduce demand for loans in those industries.
•Our ability to identify and address cyber-security risks such as data security breaches, malware, ransomware, “denial of service” attacks, “hacking” and identity theft, including account take-overs, a failure of which could disrupt our businesses and result in the disclosure of and/or misuse or misappropriation of confidential or proprietary information, disruption or damage to our systems, increased costs, losses, or adverse effects to our reputation.
•Our ability to achieve our expense management initiatives.
•Market replacement of LIBOR and the related effect on our LIBOR-based financial products and contracts, including, but not limited to, derivative products, debt obligations, deposits, investments, and loans.
•Possible downgrades in our credit ratings or outlook could, among other negative impacts, increase the costs of funding from capital markets.
•The effects of problems encountered by other financial institutions that adversely affect us or the banking industry generally could require us to change certain business practices, reduce our revenue, impose additional costs on us, or otherwise negatively affect our businesses.
•The effects of the failure of any component of our business infrastructure provided by a third party could disrupt our businesses, result in the disclosure of and/or misuse of confidential information or proprietary information, increase our costs, negatively affect our reputation, and cause losses.
•Our ability to receive dividends from our subsidiaries, in particular Regions Bank, could affect our liquidity and ability to pay dividends to shareholders.
•Changes in accounting policies or procedures as may be required by the FASB or other regulatory agencies could materially affect our financial statements and how we report those results, and expectations and preliminary analyses relating to how such changes will affect our financial results could prove incorrect.
•Fluctuations in the price of our common stock and inability to complete stock repurchases in the time frame and/or on the terms anticipated.
•The effects of any damage to our reputation resulting from developments related to any of the items identified above.
•Other risks identified from time to time in reports that we file with the SEC.
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 ended December 31, 2020 and the "Risk Factors" of Regions' Quarterly Report on Form 10-Q for the quarter ended September 30, 2021 as filed with the SEC.
Forward-looking statements are subject to the risk that the actual effects may differ, possibly materially, from what is reflected in those forward-looking statements due to factors and future developments that are uncertain, unpredictable and in many cases beyond our control, including the scope and duration of the COVID-19 pandemic (including any resurgences) and the direct and indirect impact of the COVID-19 pandemic on our customers, third parties and us.
The words “future,” “anticipates,” “assumes,” “intends,” “plans,” “seeks,” “believes,” “predicts,” “potential,” “objectives,” “estimates,” “expects,” “targets,” “projects,” “outlook,” “forecast,” “would,” “will,” “may,” “might,” “could,” “should,” “can,” and similar terms and expressions often signify forward-looking statements. You should not place undue reliance on any forward-looking statements, which speak only as of the date made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible to predict all of them. We assume no obligation and do not intend to update or revise any forward-looking statements that are made from time to time, either as a result of future developments, new information or otherwise, except as may be required by law.
Regions’ Investor Relations contact is Dana Nolan at (205) 264-7040; Regions’ Media contact is Jeremy King at (205) 264-4551.

28