DELAWARE | 001-34034 | 63-0589368 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
¨ | Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
99.1 | Press Release dated July 22, 2014 | ||
99.2 | Supplemental Financial Information | ||
99.3 | Visual Presentation of July 22, 2014 |
REGIONS FINANCIAL CORPORATION | |
By: | /s/ Fournier J. Gale, III |
Name: | Fournier J. Gale, III |
Title: | Senior Executive Vice President, General Counsel and Corporate Secretary |
Media Contact: | Investor Relations Contact: | |||
Evelyn Mitchell | List Underwood or Dana Nolan | |||
(205) 264-4551 | (205) 581-7890 | |||
• | Total revenue increased $25 million or 2 percent over the prior quarter |
• | Achieved positive operating leverage and improved adjusted efficiency ratio(1) to 64.2 percent |
• | Grew ending loan balances $833 million or 1.1 percent from the prior quarter to $77 billion |
• | Overall credit quality improved as net charge-offs declined to 0.35 percent of average loans |
Highlights | Quarter Ended | |||||||||||
($ in millions, except per share data) | 6/30/2014 | 3/31/2014 | 6/30/2013 | |||||||||
Net Income | ||||||||||||
Net interest income | $ | 822 | $ | 816 | $ | 808 | ||||||
Non-interest income | 457 | 438 | 497 | |||||||||
Total revenue | 1,279 | 1,254 | 1,305 | |||||||||
Provision for loan losses | 35 | 2 | 31 | |||||||||
Non-interest expense | 820 | 817 | 884 | |||||||||
Income from continuing operations before income tax | 424 | 435 | 390 | |||||||||
Income tax expense | 125 | 128 | 122 | |||||||||
Income from continuing operations (A) | 299 | 307 | 268 | |||||||||
Income (loss) from discontinued operations, net of tax | 1 | 12 | (1 | ) | ||||||||
Net income | 300 | 319 | 267 | |||||||||
Preferred dividends (B) | 8 | 8 | 8 | |||||||||
Net income available to common shareholders | $ | 292 | $ | 311 | $ | 259 | ||||||
Income from continuing operations available to common shareholders (A) – (B) | $ | 291 | $ | 299 | $ | 260 | ||||||
Diluted EPS Summary | ||||||||||||
Earnings per common share | $ | 0.21 | $ | 0.22 | $ | 0.18 | ||||||
Income (loss) per share from discontinued operations | — | 0.01 | — | |||||||||
Earnings per common share from continuing operations | $ | 0.21 | $ | 0.21 | $ | 0.18 | ||||||
Key Ratios | ||||||||||||
Net interest margin (FTE) from continuing operations~ | 3.24 | % | 3.26 | % | 3.16 | % | ||||||
Tier 1 capital* | 12.5 | % | 11.8 | % | 11.6 | % | ||||||
Tier 1 common risk-based ratio (non-GAAP)*(1) | 11.6 | % | 11.4 | % | 11.1 | % | ||||||
Basel III common equity Tier 1 ratio (non-GAAP)*(1) | 11.0 | % | 10.8 | % | 10.3 | % | ||||||
Tangible common stockholders’ equity to tangible assets(non-GAAP)(1) | 9.84 | % | 9.53 | % | 8.72 | % | ||||||
Tangible common book value per share (non-GAAP)(1) | $ | 8.12 | $ | 7.81 | $ | 7.11 | ||||||
Allowance for loan losses as a percentage of loans, net of unearned income | 1.61 | % | 1.67 | % | 2.18 | % | ||||||
Net charge-offs as a percentage of average net loans~ | 0.35 | % | 0.44 | % | 0.77 | % | ||||||
Non-accrual loans, excluding loans held for sale, as a percentage of loans | 1.17 | % | 1.41 | % | 2.01 | % | ||||||
Non-performing assets as a percentage of loans, foreclosed properties and non-performing loans held for sale | 1.37 | % | 1.63 | % | 2.25 | % | ||||||
Non-performing assets (including 90+ past due) as a percentage of loans, foreclosed properties and non-performing loans held for sale(2) | 1.69 | % | 1.97 | % | 2.68 | % |
• | Current and future economic and market conditions in the United States generally or in the communities we serve, including the effects of declines in property values, unemployment rates and potential reduction of economic growth. |
• | Possible changes in trade, monetary and fiscal policies of, and other activities undertaken by, governments, agencies, central banks and similar organizations. |
• | The effects of a possible downgrade in the U.S. government’s sovereign credit rating or outlook. |
• | Possible changes in market interest rates. |
• | Any impairment of our goodwill or other intangibles, or any adjustment of valuation allowances on our deferred tax assets due to adverse changes in the economic environment, declining operations of the reporting unit, or other factors. |
• | Possible changes in the creditworthiness of customers and the possible impairment of the collectability of loans. |
• | Changes in the speed of loan prepayments, loan origination and sale volumes, charge-offs, loan loss provisions or actual loan losses. |
• | Possible acceleration of prepayments on mortgage-backed securities due to low interest rates, and the related acceleration of premium amortization on those securities. |
• | Our ability to effectively compete with other financial services companies, some of whom possess greater financial resources than we do and are subject to different regulatory standards than we are. |
• | Loss of customer checking and savings account deposits as customers pursue other, higher-yield investments. |
• | Our ability to develop and gain acceptance from current and prospective customers for new products and services in a timely manner. |
• | Changes in laws and regulations affecting our businesses, including changes in the enforcement and interpretation of such laws and regulations by applicable governmental and self-regulatory agencies. |
• | Our ability to obtain regulatory approval (as part of the CCAR process or otherwise) to take certain capital actions, including paying dividends and any plans to increase common stock dividends, repurchase common stock under current or future programs, or issue or redeem preferred stock or other regulatory capital instruments. |
• | Our ability to comply with applicable capital and liquidity requirements (including the finalized Basel III capital standards), including our ability to generate capital internally or raise capital on favorable terms. |
• | The costs and other 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. |
• | Any adverse change to our ability to collect interchange fees in a profitable manner, whether such change is the result of regulation, legislation or other governmental action. |
• | 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 business. |
• | Possible changes in consumer and business spending and saving habits and the related effect on our ability to increase assets and to attract deposits. |
• | Any inaccurate or incomplete information provided to us by our customers or counterparties. |
• | Inability of our framework to manage risks associated with our business, including operational risk and credit risk. |
• | The inability of our internal disclosure controls and procedures to prevent, detect or mitigate any material errors or fraudulent acts. |
• | The effects of geopolitical instability, including wars, conflicts and terrorist attacks. |
• | The effects of man-made and natural disasters, including fires, floods, droughts, tornadoes, hurricanes and environmental damage. |
• | Our ability to keep pace with technological changes. |
• | Our ability to identify and address cyber-security risks such as data security breaches, “denial of service” attacks, “hacking” and identity theft. |
• | Possible downgrades in our credit ratings or outlook. |
• | The effects of problems encountered by other financial institutions that adversely affect us or the banking industry generally. |
• | The effects of the failure of any component of our business infrastructure which is provided by a third party. |
• | Our ability to receive dividends from our subsidiaries. |
• | Changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board or other regulatory agencies. |
• | The effects of any damage to our reputation resulting from developments related to any of the items identified above. |
Page | ||
Consolidated Balance Sheets | ||
Consolidated Statements of Income | ||
Selected Ratios and Other Information | ||
Consolidated Average Daily Balances and Yield / Rate Analysis from Continuing Operations | ||
Loans | ||
Deposits | ||
Pre-Tax Pre-Provision Income (“PPI”) and Adjusted PPI | ||
Non-Interest Income, Mortgage Income and Wealth Management Income | ||
Non-Interest Expense | ||
Credit Quality | ||
Allowance for Credit Losses, Net Charge-Offs and Related Ratios | ||
Non-Accrual Loans (excludes loans held for sale), Criticized and Classified Loans - Commercial and Investor Real Estate, and Home Equity Lines of Credit - Future Maturities | ||
Early and Late Stage Delinquencies | ||
Troubled Debt Restructurings | ||
Reconciliation to GAAP Financial Measures | ||
Adjusted Efficiency Ratios, Adjusted Fee Income Ratios, and Adjusted Non-Interest Income / Expense | ||
Return Ratios, Tangible Common Ratios and Capital | ||
Statements of Discontinued Operations | ||
Forward-Looking Statements |
As of | |||||||||||||||||||
($ amounts in millions) | 6/30/2014 | 3/31/2014 | 12/31/2013 | 9/30/2013 | 6/30/2013 | ||||||||||||||
Assets: | |||||||||||||||||||
Cash and due from banks | $ | 2,094 | $ | 2,072 | $ | 1,661 | $ | 2,032 | $ | 2,112 | |||||||||
Interest-bearing deposits in other banks | 2,705 | 3,114 | 3,612 | 1,827 | 2,168 | ||||||||||||||
Federal funds sold and securities purchased under agreements to resell | 20 | 10 | — | — | — | ||||||||||||||
Trading account securities | 100 | 117 | 111 | 119 | 102 | ||||||||||||||
Securities held to maturity | 2,275 | 2,317 | 2,353 | 2,388 | 2,425 | ||||||||||||||
Securities available for sale | 21,963 | 21,615 | 21,485 | 21,630 | 22,001 | ||||||||||||||
Loans held for sale | 514 | 395 | 1,055 | 673 | 839 | ||||||||||||||
Loans, net of unearned income | 76,513 | 75,680 | 74,609 | 75,892 | 74,990 | ||||||||||||||
Allowance for loan losses | (1,229 | ) | (1,261 | ) | (1,341 | ) | (1,540 | ) | (1,636 | ) | |||||||||
Net loans | 75,284 | 74,419 | 73,268 | 74,352 | 73,354 | ||||||||||||||
Other interest-earning assets | 65 | 86 | 86 | 105 | 135 | ||||||||||||||
Premises and equipment, net | 2,194 | 2,194 | 2,216 | 2,218 | 2,228 | ||||||||||||||
Interest receivable | 308 | 316 | 313 | 331 | 326 | ||||||||||||||
Goodwill | 4,816 | 4,816 | 4,816 | 4,816 | 4,816 | ||||||||||||||
Mortgage servicing rights at fair value (MSRs) | 276 | 288 | 297 | 281 | 276 | ||||||||||||||
Other identifiable intangible assets | 281 | 294 | 295 | 307 | 318 | ||||||||||||||
Other assets | 5,824 | 5,880 | 5,828 | 5,785 | 7,607 | ||||||||||||||
Total assets | $ | 118,719 | $ | 117,933 | $ | 117,396 | $ | 116,864 | $ | 118,707 | |||||||||
Liabilities and stockholders’ equity: | |||||||||||||||||||
Deposits: | |||||||||||||||||||
Non-interest-bearing | $ | 31,277 | $ | 31,154 | $ | 30,083 | $ | 30,308 | $ | 29,464 | |||||||||
Interest-bearing | 62,545 | 62,239 | 62,370 | 62,013 | 62,990 | ||||||||||||||
Total deposits | 93,822 | 93,393 | 92,453 | 92,321 | 92,454 | ||||||||||||||
Borrowed funds: | |||||||||||||||||||
Short-term borrowings: | |||||||||||||||||||
Federal funds purchased and securities sold under agreements to repurchase | 1,818 | 1,981 | 2,182 | 1,773 | 2,877 | ||||||||||||||
Other short-term borrowings | — | — | — | — | 1,000 | ||||||||||||||
Total short-term borrowings | 1,818 | 1,981 | 2,182 | 1,773 | 3,877 | ||||||||||||||
Long-term borrowings | 3,824 | 4,226 | 4,830 | 4,838 | 4,856 | ||||||||||||||
Total borrowed funds | 5,642 | 6,207 | 7,012 | 6,611 | 8,733 | ||||||||||||||
Other liabilities | 2,226 | 2,201 | 2,163 | 2,443 | 2,191 | ||||||||||||||
Total liabilities | 101,690 | 101,801 | 101,628 | 101,375 | 103,378 | ||||||||||||||
Stockholders’ equity: | |||||||||||||||||||
Preferred stock, non-cumulative perpetual | 920 | 442 | 450 | 458 | 466 | ||||||||||||||
Common stock | 14 | 14 | 14 | 14 | 14 | ||||||||||||||
Additional paid-in capital | 19,121 | 19,179 | 19,216 | 19,248 | 19,440 | ||||||||||||||
Retained earnings (deficit) | (1,597 | ) | (1,897 | ) | (2,216 | ) | (2,443 | ) | (2,736 | ) | |||||||||
Treasury stock, at cost | (1,377 | ) | (1,377 | ) | (1,377 | ) | (1,377 | ) | (1,377 | ) | |||||||||
Accumulated other comprehensive income (loss), net | (52 | ) | (229 | ) | (319 | ) | (411 | ) | (478 | ) | |||||||||
Total stockholders’ equity | 17,029 | 16,132 | 15,768 | 15,489 | 15,329 | ||||||||||||||
Total liabilities and stockholders’ equity | $ | 118,719 | $ | 117,933 | $ | 117,396 | $ | 116,864 | $ | 118,707 |
Quarter Ended | |||||||||||||||||||
($ amounts in millions, except per share data) | 6/30/2014 | 3/31/2014 | 12/31/2013 | 9/30/2013 | 6/30/2013 | ||||||||||||||
Interest income on: | |||||||||||||||||||
Loans, including fees | $ | 737 | $ | 732 | $ | 758 | $ | 758 | $ | 746 | |||||||||
Securities—taxable | 156 | 154 | 151 | 144 | 152 | ||||||||||||||
Loans held for sale | 4 | 8 | 6 | 6 | 8 | ||||||||||||||
Trading account securities | — | 2 | 1 | 1 | — | ||||||||||||||
Other interest-earning assets | 2 | 2 | 1 | 2 | 1 | ||||||||||||||
Total interest income | 899 | 898 | 917 | 911 | 907 | ||||||||||||||
Interest expense on: | |||||||||||||||||||
Deposits | 25 | 27 | 29 | 31 | 33 | ||||||||||||||
Short-term borrowings | 1 | — | — | 1 | 1 | ||||||||||||||
Long-term borrowings | 51 | 55 | 56 | 55 | 65 | ||||||||||||||
Total interest expense | 77 | 82 | 85 | 87 | 99 | ||||||||||||||
Net interest income | 822 | 816 | 832 | 824 | 808 | ||||||||||||||
Provision for loan losses | 35 | 2 | 79 | 18 | 31 | ||||||||||||||
Net interest income after provision for loan losses | 787 | 814 | 753 | 806 | 777 | ||||||||||||||
Non-interest income: | |||||||||||||||||||
Service charges on deposit accounts | 174 | 173 | 185 | 190 | 175 | ||||||||||||||
Card and ATM fees | 84 | 79 | 80 | 82 | 81 | ||||||||||||||
Mortgage income | 43 | 40 | 43 | 52 | 69 | ||||||||||||||
Securities gains, net | 6 | 2 | — | 3 | 8 | ||||||||||||||
Other | 150 | 144 | 218 | 168 | 164 | ||||||||||||||
Total non-interest income | 457 | 438 | 526 | 495 | 497 | ||||||||||||||
Non-interest expense: | |||||||||||||||||||
Salaries and employee benefits | 443 | 455 | 464 | 455 | 452 | ||||||||||||||
Net occupancy expense | 90 | 93 | 91 | 92 | 92 | ||||||||||||||
Furniture and equipment expense | 70 | 70 | 71 | 71 | 69 | ||||||||||||||
Other | 217 | 199 | 320 | 266 | 271 | ||||||||||||||
Total non-interest expense | 820 | 817 | 946 | 884 | 884 | ||||||||||||||
Income from continuing operations before income taxes | 424 | 435 | 333 | 417 | 390 | ||||||||||||||
Income tax expense | 125 | 128 | 92 | 124 | 122 | ||||||||||||||
Income from continuing operations | 299 | 307 | 241 | 293 | 268 | ||||||||||||||
Discontinued operations: | |||||||||||||||||||
Income (loss) from discontinued operations before income taxes | 2 | 19 | (25 | ) | (1 | ) | (2 | ) | |||||||||||
Income tax expense (benefit) | 1 | 7 | (11 | ) | (1 | ) | (1 | ) | |||||||||||
Income (loss) from discontinued operations, net of tax | 1 | 12 | (14 | ) | — | (1 | ) | ||||||||||||
Net income | $ | 300 | $ | 319 | $ | 227 | $ | 293 | $ | 267 | |||||||||
Net income from continuing operations available to common shareholders | $ | 291 | $ | 299 | $ | 233 | $ | 285 | $ | 260 | |||||||||
Net income available to common shareholders | $ | 292 | $ | 311 | $ | 219 | $ | 285 | $ | 259 | |||||||||
Weighted-average shares outstanding—during quarter: | |||||||||||||||||||
Basic | 1,378 | 1,378 | 1,378 | 1,388 | 1,401 | ||||||||||||||
Diluted | 1,390 | 1,390 | 1,395 | 1,405 | 1,418 | ||||||||||||||
Actual shares outstanding—end of quarter | 1,378 | 1,378 | 1,378 | 1,378 | 1,395 | ||||||||||||||
Earnings per common share from continuing operations: | |||||||||||||||||||
Basic | $ | 0.21 | $ | 0.22 | $ | 0.17 | $ | 0.21 | $ | 0.19 | |||||||||
Diluted | $ | 0.21 | $ | 0.21 | $ | 0.17 | $ | 0.20 | $ | 0.18 | |||||||||
Earnings per common share: | |||||||||||||||||||
Basic | $ | 0.21 | $ | 0.23 | $ | 0.16 | $ | 0.21 | $ | 0.18 | |||||||||
Diluted | $ | 0.21 | $ | 0.22 | $ | 0.16 | $ | 0.20 | $ | 0.18 | |||||||||
Cash dividends declared per common share | $ | 0.05 | $ | 0.03 | $ | 0.03 | $ | 0.03 | $ | 0.03 | |||||||||
Taxable-equivalent net interest income from continuing operations | $ | 837 | $ | 831 | $ | 846 | $ | 838 | $ | 821 |
As of and for Quarter Ended | |||||||||||||||||||
6/30/2014 | 3/31/2014 | 12/31/2013 | 9/30/2013 | 6/30/2013 | |||||||||||||||
Return on average assets from continuing operations* | 0.99 | % | 1.03 | % | 0.79 | % | 0.97 | % | 0.88 | % | |||||||||
Return on average tangible common stockholders’ equity (non-GAAP)* (1) | 10.68 | % | 11.84 | % | 8.58 | % | 11.41 | % | 10.15 | % | |||||||||
Adjusted efficiency ratio from continuing operations (non-GAAP) (1) | 64.2 | % | 66.9 | % | 66.3 | % | 67.3 | % | 63.1 | % | |||||||||
Common book value per share | $ | 11.69 | $ | 11.38 | $ | 11.12 | $ | 10.90 | $ | 10.65 | |||||||||
Tangible common book value per share (non-GAAP) (1) | $ | 8.12 | $ | 7.81 | $ | 7.54 | $ | 7.32 | $ | 7.11 | |||||||||
Tangible common stockholders’ equity to tangible assets (non-GAAP) (1) | 9.84 | % | 9.53 | % | 9.24 | % | 9.02 | % | 8.72 | % | |||||||||
Tier 1 common equity risk-based ratio (non-GAAP) (1)(2) | 11.6 | % | 11.4 | % | 11.2 | % | 11.0 | % | 11.1 | % | |||||||||
Basel III common equity Tier 1 ratio (non-GAAP) (1)(2) | 11.0 | % | 10.8 | % | 10.6 | % | 10.4 | % | 10.3 | % | |||||||||
Tier 1 capital ratio (2) | 12.5 | % | 11.8 | % | 11.7 | % | 11.5 | % | 11.6 | % | |||||||||
Total risk-based capital ratio (2) | 15.3 | % | 14.9 | % | 14.7 | % | 14.5 | % | 14.7 | % | |||||||||
Leverage ratio (2) | 10.8 | % | 10.2 | % | 10.0 | % | 9.9 | % | 9.7 | % | |||||||||
Allowance for loan losses as a percentage of loans, net of unearned income | 1.61 | % | 1.67 | % | 1.80 | % | 2.03 | % | 2.18 | % | |||||||||
Allowance for loan losses to non-performing loans, excluding loans held for sale | 1.37x | 1.18x | 1.24x | 1.14x | 1.09x | ||||||||||||||
Net interest margin (FTE) from continuing operations* | 3.24 | % | 3.26 | % | 3.26 | % | 3.24 | % | 3.16 | % | |||||||||
Loans, net of unearned income, to total deposits | 81.6 | % | 81.0 | % | 80.7 | % | 82.2 | % | 81.1 | % | |||||||||
Net charge-offs as a percentage of average loans* | 0.35 | % | 0.44 | % | 1.46 | % | 0.60 | % | 0.77 | % | |||||||||
Adjusted net charge-offs as a percentage of average loans (non-GAAP)* (1) | 0.35 | % | 0.44 | % | 0.67 | % | 0.60 | % | 0.77 | % | |||||||||
Non-accrual loans, excluding loans held for sale, as a percentage of loans | 1.17 | % | 1.41 | % | 1.45 | % | 1.78 | % | 2.01 | % | |||||||||
Non-performing assets (excluding loans 90 days past due) as a percentage of loans, foreclosed properties and non-performing loans held for sale | 1.37 | % | 1.63 | % | 1.74 | % | 2.03 | % | 2.25 | % | |||||||||
Non-performing assets (including loans 90 days past due) as a percentage of loans, foreclosed properties and non-performing loans held for sale (3) | 1.69 | % | 1.97 | % | 2.08 | % | 2.38 | % | 2.68 | % | |||||||||
Associate headcount | 23,416 | 23,687 | 24,255 | 24,068 | 23,692 | ||||||||||||||
ATMs | 1,990 | 2,002 | 2,029 | 2,030 | 2,038 | ||||||||||||||
Branch Statistics | |||||||||||||||||||
Full service | 1,592 | 1,592 | 1,624 | 1,625 | 1,628 | ||||||||||||||
Drive-thru/transaction service only | 81 | 81 | 81 | 81 | 81 | ||||||||||||||
Total branch outlets | 1,673 | 1,673 | 1,705 | 1,706 | 1,709 |
(1) | See reconciliation of GAAP to non-GAAP Financial Measures on pages 12 and 16-18. |
(2) | Current quarter Tier 1 common, Basel III common equity Tier 1, Tier 1 capital, Total risk-based capital and Leverage ratios are estimated. |
(3) | Excludes guaranteed residential first mortgages that are 90+ days past due and still accruing. Refer to the footnotes on page 14 for amounts related to these loans. |
Quarter Ended | |||||||||||||||||||||
6/30/2014 | 3/31/2014 | ||||||||||||||||||||
($ amounts in millions; yields on taxable-equivalent basis) | Average Balance | Income/ Expense | Yield/ Rate | Average Balance | Income/ Expense | Yield/ Rate | |||||||||||||||
Assets | |||||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||
Federal funds sold and securities purchased under agreements to resell | $ | 16 | $ | — | 0.86 | % | $ | 9 | $ | — | 0.86 | % | |||||||||
Trading account securities | 115 | — | 0.76 | 111 | 2 | 6.31 | |||||||||||||||
Securities: | |||||||||||||||||||||
Taxable | 23,856 | 156 | 2.62 | 23,872 | 154 | 2.62 | |||||||||||||||
Tax-exempt | 3 | — | — | 4 | — | — | |||||||||||||||
Loans held for sale | 413 | 4 | 3.96 | 854 | 8 | 3.89 | |||||||||||||||
Loans, net of unearned income: | |||||||||||||||||||||
Commercial and industrial | 31,058 | 284 | 3.68 | 29,993 | 278 | 3.75 | |||||||||||||||
Commercial real estate mortgage—owner-occupied | 9,170 | 111 | 4.85 | 9,391 | 111 | 4.81 | |||||||||||||||
Commercial real estate construction—owner-occupied | 357 | 4 | 4.09 | 341 | 3 | 4.00 | |||||||||||||||
Commercial investor real estate mortgage | 5,296 | 42 | 3.20 | 5,287 | 45 | 3.42 | |||||||||||||||
Commercial investor real estate construction | 1,822 | 15 | 3.18 | 1,524 | 12 | 3.28 | |||||||||||||||
Residential first mortgage | 12,137 | 121 | 3.99 | 12,127 | 122 | 4.07 | |||||||||||||||
Home equity | 11,106 | 100 | 3.62 | 11,216 | 101 | 3.64 | |||||||||||||||
Indirect | 3,376 | 29 | 3.46 | 3,189 | 29 | 3.66 | |||||||||||||||
Consumer credit card | 926 | 25 | 11.10 | 926 | 26 | 11.23 | |||||||||||||||
Other consumer | 1,142 | 21 | 7.31 | 1,145 | 20 | 7.26 | |||||||||||||||
Total loans, net of unearned income | 76,390 | 752 | 3.95 | 75,139 | 747 | 4.03 | |||||||||||||||
Other interest-earning assets | 2,844 | 2 | 0.25 | 3,469 | 2 | 0.25 | |||||||||||||||
Total interest-earning assets | 103,637 | 914 | 3.54 | 103,458 | 913 | 3.58 | |||||||||||||||
Allowance for loan losses | (1,246 | ) | (1,321 | ) | |||||||||||||||||
Cash and due from banks | 1,767 | 1,817 | |||||||||||||||||||
Other non-earning assets | 13,838 | 13,874 | |||||||||||||||||||
$ | 117,996 | $ | 117,828 | ||||||||||||||||||
Liabilities and Stockholders’ Equity | |||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||
Savings | $ | 6,468 | 2 | 0.10 | $ | 6,234 | 2 | 0.12 | |||||||||||||
Interest-bearing checking | 20,476 | 4 | 0.09 | 20,791 | 5 | 0.09 | |||||||||||||||
Money market | 26,112 | 7 | 0.10 | 26,213 | 8 | 0.13 | |||||||||||||||
Time deposits | 9,067 | 12 | 0.52 | 9,419 | 12 | 0.53 | |||||||||||||||
Total interest-bearing deposits (1) | 62,123 | 25 | 0.16 | 62,657 | 27 | 0.17 | |||||||||||||||
Federal funds purchased and securities sold under agreements to repurchase | 2,017 | 1 | 0.09 | 2,097 | — | 0.08 | |||||||||||||||
Other short-term borrowings | 54 | — | 0.23 | — | — | — | |||||||||||||||
Long-term borrowings | 4,161 | 51 | 4.98 | 4,643 | 55 | 4.78 | |||||||||||||||
Total interest-bearing liabilities | 68,355 | 77 | 0.45 | 69,397 | 82 | 0.48 | |||||||||||||||
Non-interest-bearing deposits (1) | 30,866 | — | — | 30,268 | — | — | |||||||||||||||
Total funding sources | 99,221 | 77 | 0.31 | 99,665 | 82 | 0.33 | |||||||||||||||
Net interest spread | 3.09 | 3.10 | |||||||||||||||||||
Other liabilities | 2,107 | 2,162 | |||||||||||||||||||
Stockholders’ equity | 16,668 | 16,001 | |||||||||||||||||||
$ | 117,996 | $ | 117,828 | ||||||||||||||||||
Net interest income/margin FTE basis | $ | 837 | 3.24 | % | $ | 831 | 3.26 | % |
(1) | Total deposit costs from continuing operations 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 from continuing operations equal 0.11% and 0.12% for the quarters ended June 30, 2014 and March 31, 2014, respectively. |
Quarter Ended | ||||||||||||||||||||||||||||||||
12/31/2013 | 9/30/2013 | 6/30/2013 | ||||||||||||||||||||||||||||||
($ amounts in millions; yields on taxable-equivalent basis) | Average Balance | Income/ Expense | Yield/ Rate | Average Balance | Income/ Expense | Yield/ Rate | Average Balance | Income/Expense | Yield/ Rate | |||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||||||||||
Trading account securities | $ | 110 | $ | 1 | 3.86 | % | $ | 107 | $ | 1 | 1.52 | % | $ | 122 | $ | — | 0.48 | % | ||||||||||||||
Securities: | ||||||||||||||||||||||||||||||||
Taxable | 23,771 | 151 | 2.52 | 24,074 | 144 | 2.38 | 26,706 | 152 | 2.29 | |||||||||||||||||||||||
Tax-exempt | 5 | — | — | 5 | — | — | 6 | — | — | |||||||||||||||||||||||
Loans held for sale | 625 | 6 | 3.94 | 751 | 6 | 3.34 | 880 | 8 | 3.42 | |||||||||||||||||||||||
Loans, net of unearned income: | ||||||||||||||||||||||||||||||||
Commercial and industrial | 29,950 | 287 | 3.81 | 29,319 | 284 | 3.84 | 28,301 | 272 | 3.85 | |||||||||||||||||||||||
Commercial real estate mortgage—owner-occupied | 9,613 | 116 | 4.81 | 9,678 | 116 | 4.77 | 9,808 | 114 | 4.66 | |||||||||||||||||||||||
Commercial real estate construction—owner-occupied | 302 | 3 | 3.86 | 368 | 4 | 4.22 | 339 | 5 | 5.27 | |||||||||||||||||||||||
Commercial investor real estate mortgage | 5,405 | 47 | 3.46 | 5,712 | 51 | 3.53 | 6,124 | 54 | 3.58 | |||||||||||||||||||||||
Commercial investor real estate construction | 1,426 | 13 | 3.44 | 1,251 | 10 | 3.48 | 1,085 | 10 | 3.57 | |||||||||||||||||||||||
Residential first mortgage | 12,752 | 126 | 3.92 | 12,835 | 128 | 3.95 | 12,823 | 128 | 4.00 | |||||||||||||||||||||||
Home equity | 11,311 | 102 | 3.59 | 11,351 | 103 | 3.58 | 11,475 | 103 | 3.62 | |||||||||||||||||||||||
Indirect | 3,014 | 29 | 3.77 | 2,810 | 28 | 3.88 | 2,606 | 26 | 4.08 | |||||||||||||||||||||||
Consumer credit card | 910 | 28 | 11.83 | 878 | 26 | 12.16 | 851 | 27 | 12.33 | |||||||||||||||||||||||
Other consumer | 1,160 | 21 | 7.21 | 1,157 | 22 | 7.52 | 1,137 | 20 | 7.25 | |||||||||||||||||||||||
Total loans, net of unearned income | 75,843 | 772 | 4.04 | 75,359 | 772 | 4.07 | 74,549 | 759 | 4.09 | |||||||||||||||||||||||
Other interest-earning assets | 2,579 | 1 | 0.24 | 2,447 | 2 | 0.25 | 1,869 | 1 | 0.24 | |||||||||||||||||||||||
Total interest-earning assets | 102,933 | 931 | 3.59 | 102,743 | 925 | 3.57 | 104,132 | 920 | 3.55 | |||||||||||||||||||||||
Allowance for loan losses | (1,512 | ) | (1,613 | ) | (1,706 | ) | ||||||||||||||||||||||||||
Cash and due from banks | 1,807 | 1,781 | 1,745 | |||||||||||||||||||||||||||||
Other non-earning assets | 13,735 | 14,006 | 14,077 | |||||||||||||||||||||||||||||
$ | 116,963 | $ | 116,917 | $ | 118,248 | |||||||||||||||||||||||||||
Liabilities and Stockholders’ Equity | ||||||||||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||||||||||
Savings | $ | 6,049 | 2 | 0.09 | $ | 6,076 | 1 | 0.10 | $ | 6,148 | 2 | 0.09 | ||||||||||||||||||||
Interest-bearing checking | 19,815 | 4 | 0.09 | 19,613 | 5 | 0.09 | 19,636 | 4 | 0.10 | |||||||||||||||||||||||
Money market | 26,081 | 8 | 0.13 | 26,250 | 9 | 0.13 | 25,952 | 9 | 0.14 | |||||||||||||||||||||||
Time deposits | 9,888 | 15 | 0.59 | 10,417 | 16 | 0.60 | 11,423 | 18 | 0.66 | |||||||||||||||||||||||
Total interest-bearing deposits (1) | 61,833 | 29 | 0.19 | 62,356 | 31 | 0.19 | 63,159 | 33 | 0.21 | |||||||||||||||||||||||
Federal funds purchased and securities sold under agreements to repurchase | 2,021 | — | 0.07 | 1,982 | 1 | 0.07 | 2,287 | 1 | 0.09 | |||||||||||||||||||||||
Other short-term borrowings | 159 | — | 0.20 | 381 | — | 0.20 | 310 | — | 0.19 | |||||||||||||||||||||||
Long-term borrowings | 4,840 | 56 | 4.56 | 4,845 | 55 | 4.57 | 5,298 | 65 | 4.93 | |||||||||||||||||||||||
Total interest-bearing liabilities | 68,853 | 85 | 0.49 | 69,564 | 87 | 0.49 | 71,054 | 99 | 0.56 | |||||||||||||||||||||||
Non-interest-bearing deposits (1) | 30,218 | — | — | 29,724 | — | — | 29,454 | — | — | |||||||||||||||||||||||
Total funding sources | 99,071 | 85 | 0.34 | 99,288 | 87 | 0.35 | 100,508 | 99 | 0.40 | |||||||||||||||||||||||
Net interest spread | 3.10 | 3.08 | 2.99 | |||||||||||||||||||||||||||||
Other liabilities | 2,386 | 2,312 | 2,097 | |||||||||||||||||||||||||||||
Stockholders’ equity | 15,506 | 15,317 | 15,643 | |||||||||||||||||||||||||||||
$ | 116,963 | $ | 116,917 | $ | 118,248 | |||||||||||||||||||||||||||
Net interest income/margin FTE basis | $ | 846 | 3.26 | % | $ | 838 | 3.24 | % | $ | 821 | 3.16 | % |
(1) | Total deposit costs from continuing operations 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 from continuing operations equal 0.12%, 0.13%, and 0.15% for the quarters ended December 31, 2013, September 30, 2013, and June 30, 2013, respectively. |
As of | |||||||||||||||||||||||||||||||||
6/30/2014 | 6/30/2014 | ||||||||||||||||||||||||||||||||
($ amounts in millions) | 6/30/2014 | 3/31/2014 | 12/31/2013 | 9/30/2013 | 6/30/2013 | vs. 3/31/2014 | vs. 6/30/2013 | ||||||||||||||||||||||||||
Commercial and industrial | $ | 31,354 | $ | 30,466 | $ | 29,413 | $ | 29,863 | $ | 28,954 | $ | 888 | 2.9 | % | $ | 2,400 | 8.3 | % | |||||||||||||||
Commercial real estate mortgage—owner-occupied | 9,024 | 9,257 | 9,495 | 9,566 | 9,731 | (233 | ) | (2.5 | )% | (707 | ) | (7.3 | )% | ||||||||||||||||||||
Commercial real estate construction—owner-occupied | 366 | 375 | 310 | 377 | 345 | (9 | ) | (2.4 | )% | 21 | 6.1 | % | |||||||||||||||||||||
Total commercial | 40,744 | 40,098 | 39,218 | 39,806 | 39,030 | 646 | 1.6 | % | 1,714 | 4.4 | % | ||||||||||||||||||||||
Commercial investor real estate mortgage | 5,193 | 5,338 | 5,318 | 5,613 | 5,806 | (145 | ) | (2.7 | )% | (613 | ) | (10.6 | )% | ||||||||||||||||||||
Commercial investor real estate construction | 1,780 | 1,654 | 1,432 | 1,317 | 1,208 | 126 | 7.6 | % | 572 | 47.4 | % | ||||||||||||||||||||||
Total investor real estate | 6,973 | 6,992 | 6,750 | 6,930 | 7,014 | (19 | ) | (0.3 | )% | (41 | ) | (0.6 | )% | ||||||||||||||||||||
Residential first mortgage (1) | 12,187 | 12,136 | 12,163 | 12,856 | 12,839 | 51 | 0.4 | % | (652 | ) | (5.1 | )% | |||||||||||||||||||||
Home equity—first lien | 6,068 | 6,008 | 5,998 | 5,894 | 5,726 | 60 | 1.0 | % | 342 | 6.0 | % | ||||||||||||||||||||||
Home equity—second lien | 4,996 | 5,140 | 5,296 | 5,455 | 5,684 | (144 | ) | (2.8 | )% | (688 | ) | (12.1 | )% | ||||||||||||||||||||
Indirect | 3,422 | 3,253 | 3,075 | 2,889 | 2,693 | 169 | 5.2 | % | 729 | 27.1 | % | ||||||||||||||||||||||
Consumer credit card | 945 | 917 | 948 | 896 | 866 | 28 | 3.1 | % | 79 | 9.1 | % | ||||||||||||||||||||||
Other consumer | 1,178 | 1,136 | 1,161 | 1,166 | 1,138 | 42 | 3.7 | % | 40 | 3.5 | % | ||||||||||||||||||||||
Total consumer | 28,796 | 28,590 | 28,641 | 29,156 | 28,946 | 206 | 0.7 | % | (150 | ) | (0.5 | )% | |||||||||||||||||||||
Total Loans | $ | 76,513 | $ | 75,680 | $ | 74,609 | $ | 75,892 | $ | 74,990 | $ | 833 | 1.1 | % | $ | 1,523 | 2.0 | % | |||||||||||||||
Average Balances | |||||||||||||||||||||||||||||||||
($ amounts in millions) | 2Q14 | 1Q14 | 4Q13 | 3Q13 | 2Q13 | 2Q14 vs. 1Q14 | 2Q14 vs. 2Q13 | ||||||||||||||||||||||||||
Commercial and industrial | $ | 31,058 | $ | 29,993 | $ | 29,950 | $ | 29,319 | $ | 28,301 | $ | 1,065 | 3.6 | % | $ | 2,757 | 9.7 | % | |||||||||||||||
Commercial real estate mortgage—owner-occupied | 9,170 | 9,391 | 9,613 | 9,678 | 9,808 | (221 | ) | (2.4 | )% | (638 | ) | (6.5 | )% | ||||||||||||||||||||
Commercial real estate construction—owner-occupied | 357 | 341 | 302 | 368 | 339 | 16 | 4.7 | % | 18 | 5.3 | % | ||||||||||||||||||||||
Total commercial | 40,585 | 39,725 | 39,865 | 39,365 | 38,448 | 860 | 2.2 | % | 2,137 | 5.6 | % | ||||||||||||||||||||||
Commercial investor real estate mortgage | 5,296 | 5,287 | 5,405 | 5,712 | 6,124 | 9 | 0.2 | % | (828 | ) | (13.5 | )% | |||||||||||||||||||||
Commercial investor real estate construction | 1,822 | 1,524 | 1,426 | 1,251 | 1,085 | 298 | 19.6 | % | 737 | 67.9 | % | ||||||||||||||||||||||
Total investor real estate | 7,118 | 6,811 | 6,831 | 6,963 | 7,209 | 307 | 4.5 | % | (91 | ) | (1.3 | )% | |||||||||||||||||||||
Residential first mortgage (1) | 12,137 | 12,127 | 12,752 | 12,835 | 12,823 | 10 | 0.1 | % | (686 | ) | (5.3 | )% | |||||||||||||||||||||
Home equity—first lien | 6,052 | 6,014 | 5,963 | 5,825 | 5,697 | 38 | 0.6 | % | 355 | 6.2 | % | ||||||||||||||||||||||
Home equity—second lien | 5,054 | 5,202 | 5,348 | 5,526 | 5,778 | (148 | ) | (2.8 | )% | (724 | ) | (12.5 | )% | ||||||||||||||||||||
Indirect | 3,376 | 3,189 | 3,014 | 2,810 | 2,606 | 187 | 5.9 | % | 770 | 29.5 | % | ||||||||||||||||||||||
Consumer credit card | 926 | 926 | 910 | 878 | 851 | — | NM | 75 | 8.8 | % | |||||||||||||||||||||||
Other consumer | 1,142 | 1,145 | 1,160 | 1,157 | 1,137 | (3 | ) | (0.3 | )% | 5 | 0.4 | % | |||||||||||||||||||||
Total consumer | 28,687 | 28,603 | 29,147 | 29,031 | 28,892 | 84 | 0.3 | % | (205 | ) | (0.7 | )% | |||||||||||||||||||||
Total Loans | $ | 76,390 | $ | 75,139 | $ | 75,843 | $ | 75,359 | $ | 74,549 | $ | 1,251 | 1.7 | % | $ | 1,841 | 2.5 | % | |||||||||||||||
End of Period Loan Portfolio Balances by Percentage | As of | ||||||||||||||||||||||||||||||||
6/30/2014 | 3/31/2014 | 12/31/2013 | 9/30/2013 | 6/30/2013 | |||||||||||||||||||||||||||||
Commercial and industrial | 41.0 | % | 40.3 | % | 39.4 | % | 39.4 | % | 38.6 | % | |||||||||||||||||||||||
Commercial real estate mortgage—owner-occupied | 11.8 | % | 12.2 | % | 12.8 | % | 12.6 | % | 13.0 | % | |||||||||||||||||||||||
Commercial real estate construction—owner-occupied | 0.5 | % | 0.5 | % | 0.4 | % | 0.5 | % | 0.5 | % | |||||||||||||||||||||||
Total commercial | 53.3 | % | 53.0 | % | 52.6 | % | 52.5 | % | 52.1 | % | |||||||||||||||||||||||
Commercial investor real estate mortgage | 6.8 | % | 7.0 | % | 7.1 | % | 7.4 | % | 7.7 | % | |||||||||||||||||||||||
Commercial investor real estate construction | 2.3 | % | 2.2 | % | 1.9 | % | 1.7 | % | 1.6 | % | |||||||||||||||||||||||
Total investor real estate | 9.1 | % | 9.2 | % | 9.0 | % | 9.1 | % | 9.3 | % | |||||||||||||||||||||||
Residential first mortgage | 15.9 | % | 16.0 | % | 16.3 | % | 16.9 | % | 17.1 | % | |||||||||||||||||||||||
Home equity—first lien | 7.9 | % | 8.0 | % | 8.0 | % | 7.8 | % | 7.6 | % | |||||||||||||||||||||||
Home equity—second lien | 6.6 | % | 6.8 | % | 7.1 | % | 7.2 | % | 7.6 | % | |||||||||||||||||||||||
Indirect | 4.5 | % | 4.3 | % | 4.1 | % | 3.8 | % | 3.6 | % | |||||||||||||||||||||||
Consumer credit card | 1.2 | % | 1.2 | % | 1.3 | % | 1.2 | % | 1.2 | % | |||||||||||||||||||||||
Other consumer | 1.5 | % | 1.5 | % | 1.6 | % | 1.5 | % | 1.5 | % | |||||||||||||||||||||||
Total consumer | 37.6 | % | 37.8 | % | 38.4 | % | 38.4 | % | 38.6 | % | |||||||||||||||||||||||
Total Loans | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % |
(1) | Regions transferred approximately $686 million of primarily performing restructured residential first mortgage loans to held for sale at the end of the fourth quarter of 2013. This transaction impacts the third quarter 2013 to fourth quarter 2013 ending balance variance as well as the fourth quarter 2013 to first quarter 2014 average balance variance. |
As of | |||||||||||||||||||||||||||||||||
6/30/2014 | 6/30/2014 | ||||||||||||||||||||||||||||||||
($ amounts in millions) | 6/30/2014 | 3/31/2014 | 12/31/2013 | 9/30/2013 | 6/30/2013 | vs. 3/31/2014 | vs. 6/30/2013 | ||||||||||||||||||||||||||
Customer Deposits | |||||||||||||||||||||||||||||||||
Interest-free deposits | $ | 31,277 | $ | 31,154 | $ | 30,083 | $ | 30,308 | $ | 29,464 | $ | 123 | 0.4 | % | $ | 1,813 | 6.2 | % | |||||||||||||||
Interest-bearing checking | 21,159 | 20,605 | 20,789 | 19,583 | 19,937 | 554 | 2.7 | % | 1,222 | 6.1 | % | ||||||||||||||||||||||
Savings | 6,440 | 6,463 | 6,050 | 6,038 | 6,117 | (23 | ) | (0.4 | )% | 323 | 5.3 | % | |||||||||||||||||||||
Money market—domestic | 25,772 | 25,730 | 25,635 | 26,085 | 25,946 | 42 | 0.2 | % | (174 | ) | (0.7 | )% | |||||||||||||||||||||
Money market—foreign | 223 | 222 | 220 | 241 | 193 | 1 | 0.5 | % | 30 | 15.5 | % | ||||||||||||||||||||||
Low-cost deposits | 84,871 | 84,174 | 82,777 | 82,255 | 81,657 | 697 | 0.8 | % | 3,214 | 3.9 | % | ||||||||||||||||||||||
Time deposits | 8,951 | 9,219 | 9,608 | 10,066 | 10,797 | (268 | ) | (2.9 | )% | (1,846 | ) | (17.1 | )% | ||||||||||||||||||||
Total customer deposits | 93,822 | 93,393 | 92,385 | 92,321 | 92,454 | 429 | 0.5 | % | 1,368 | 1.5 | % | ||||||||||||||||||||||
Corporate Treasury Deposits | |||||||||||||||||||||||||||||||||
Time deposits | — | — | 68 | — | — | — | NM | — | NM | ||||||||||||||||||||||||
Total Deposits | $ | 93,822 | $ | 93,393 | $ | 92,453 | $ | 92,321 | $ | 92,454 | $ | 429 | 0.5 | % | $ | 1,368 | 1.5 | % | |||||||||||||||
Average Balances | |||||||||||||||||||||||||||||||||
($ amounts in millions) | 2Q14 | 1Q14 | 4Q13 | 3Q13 | 2Q13 | 2Q14 vs. 1Q14 | 2Q14 vs. 2Q13 | ||||||||||||||||||||||||||
Customer Deposits | |||||||||||||||||||||||||||||||||
Interest-free deposits | $ | 30,866 | $ | 30,268 | $ | 30,218 | $ | 29,724 | $ | 29,454 | $ | 598 | 2.0 | % | $ | 1,412 | 4.8 | % | |||||||||||||||
Interest-bearing checking | 20,476 | 20,791 | 19,815 | 19,613 | 19,636 | (315 | ) | (1.5 | )% | 840 | 4.3 | % | |||||||||||||||||||||
Savings | 6,468 | 6,234 | 6,049 | 6,076 | 6,148 | 234 | 3.8 | % | 320 | 5.2 | % | ||||||||||||||||||||||
Money market—domestic | 25,889 | 25,988 | 25,834 | 26,026 | 25,722 | (99 | ) | (0.4 | )% | 167 | 0.6 | % | |||||||||||||||||||||
Money market—foreign | 223 | 225 | 247 | 224 | 230 | (2 | ) | (0.9 | )% | (7 | ) | (3.0 | )% | ||||||||||||||||||||
Low-cost deposits | 83,922 | 83,506 | 82,163 | 81,663 | 81,190 | 416 | 0.5 | % | 2,732 | 3.4 | % | ||||||||||||||||||||||
Time deposits | 9,067 | 9,417 | 9,843 | 10,417 | 11,423 | (350 | ) | (3.7 | )% | (2,356 | ) | (20.6 | )% | ||||||||||||||||||||
Total customer deposits | 92,989 | 92,923 | 92,006 | 92,080 | 92,613 | 66 | 0.1 | % | 376 | 0.4 | % | ||||||||||||||||||||||
Corporate Treasury Deposits | |||||||||||||||||||||||||||||||||
Time deposits | — | 2 | 45 | — | — | (2 | ) | (100.0 | )% | — | NM | ||||||||||||||||||||||
Total Deposits | $ | 92,989 | $ | 92,925 | $ | 92,051 | $ | 92,080 | $ | 92,613 | $ | 64 | 0.1 | % | $ | 376 | 0.4 | % | |||||||||||||||
As of | |||||||||||||||||||||||||||||||||
End of Period Deposits by Percentage | 6/30/2014 | 3/31/2014 | 12/31/2013 | 9/30/2013 | 6/30/2013 | ||||||||||||||||||||||||||||
Customer Deposits | |||||||||||||||||||||||||||||||||
Interest-free deposits | 33.3 | % | 33.4 | % | 32.5 | % | 32.8 | % | 31.9 | % | |||||||||||||||||||||||
Interest-bearing checking | 22.6 | % | 22.1 | % | 22.5 | % | 21.2 | % | 21.6 | % | |||||||||||||||||||||||
Savings | 6.9 | % | 6.9 | % | 6.6 | % | 6.5 | % | 6.6 | % | |||||||||||||||||||||||
Money market—domestic | 27.5 | % | 27.5 | % | 27.7 | % | 28.3 | % | 28.1 | % | |||||||||||||||||||||||
Money market—foreign | 0.2 | % | 0.2 | % | 0.2 | % | 0.3 | % | 0.2 | % | |||||||||||||||||||||||
Low-cost deposits | 90.5 | % | 90.1 | % | 89.5 | % | 89.1 | % | 88.4 | % | |||||||||||||||||||||||
Time deposits | 9.5 | % | 9.9 | % | 10.4 | % | 10.9 | % | 11.6 | % | |||||||||||||||||||||||
Total customer deposits | 100.0 | % | 100.0 | % | 99.9 | % | 100.0 | % | 100.0 | % | |||||||||||||||||||||||
Corporate Treasury Deposits | |||||||||||||||||||||||||||||||||
Time deposits | — | % | — | % | 0.1 | % | — | % | — | % | |||||||||||||||||||||||
Total Deposits | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % |
Quarter Ended | |||||||||||||||||||||||||||||||||
($ amounts in millions) | 6/30/2014 | 3/31/2014 | 12/31/2013 | 9/30/2013 | 6/30/2013 | 2Q14 vs. 1Q14 | 2Q14 vs. 2Q13 | ||||||||||||||||||||||||||
Net income from continuing operations available to common shareholders (GAAP) | $ | 291 | $ | 299 | $ | 233 | $ | 285 | $ | 260 | $ | (8 | ) | (2.7 | )% | $ | 31 | 11.9 | % | ||||||||||||||
Preferred dividends (GAAP) | 8 | 8 | 8 | 8 | 8 | — | NM | — | NM | ||||||||||||||||||||||||
Income tax expense (GAAP) | 125 | 128 | 92 | 124 | 122 | (3 | ) | (2.3 | )% | 3 | 2.5 | % | |||||||||||||||||||||
Income from continuing operations before income taxes (GAAP) | 424 | 435 | 333 | 417 | 390 | (11 | ) | (2.5 | )% | 34 | 8.7 | % | |||||||||||||||||||||
Provision for loan losses (GAAP) | 35 | 2 | 79 | 18 | 31 | 33 | NM | 4 | 12.9 | % | |||||||||||||||||||||||
Pre-tax pre-provision income from continuing operations (non-GAAP) | 459 | 437 | 412 | 435 | 421 | 22 | 5.0 | % | 38 | 9.0 | % | ||||||||||||||||||||||
Other adjustments: | |||||||||||||||||||||||||||||||||
Securities gains, net | (6 | ) | (2 | ) | — | (3 | ) | (8 | ) | (4 | ) | 200.0 | % | 2 | (25.0 | )% | |||||||||||||||||
Gain on sale of other assets(1) | — | — | — | (24 | ) | — | — | NM | — | NM | |||||||||||||||||||||||
Leveraged lease termination gains, net(2) | — | (1 | ) | (39 | ) | — | — | 1 | (100.0 | )% | — | NM | |||||||||||||||||||||
Gain on sale of TDRs held for sale, net | — | (35 | ) | — | — | — | 35 | (100.0 | )% | — | NM | ||||||||||||||||||||||
Loss on early extinguishment of debt | — | — | — | 5 | 56 | — | NM | (56 | ) | NM | |||||||||||||||||||||||
Branch consolidation and property and equipment charges | — | 6 | 5 | — | — | (6 | ) | (100.0 | )% | — | NM | ||||||||||||||||||||||
Regulatory charge (credit) | (7 | ) | — | 58 | — | — | (7 | ) | NM | (7 | ) | NM | |||||||||||||||||||||
Total other adjustments | (13 | ) | (32 | ) | 24 | (22 | ) | 48 | 19 | (59.4 | )% | (61 | ) | (127.1 | )% | ||||||||||||||||||
Adjusted pre-tax pre-provision income from continuing operations (non-GAAP) | $ | 446 | $ | 405 | $ | 436 | $ | 413 | $ | 469 | $ | 41 | 10.1 | % | $ | (23 | ) | (4.9 | )% |
(1) | Gain on sale of a non-core portion of a Wealth Management business. |
(2) | After-tax amount for leveraged lease termination gains was $6 million for the fourth quarter of 2013. |
Quarter Ended | |||||||||||||||||||||||||||||||||
($ amounts in millions) | 6/30/2014 | 3/31/2014 | 12/31/2013 | 9/30/2013 | 6/30/2013 | 2Q14 vs. 1Q14 | 2Q14 vs. 2Q13 | ||||||||||||||||||||||||||
Service charges on deposit accounts | $ | 174 | $ | 173 | $ | 185 | $ | 190 | $ | 175 | $ | 1 | 0.6 | % | $ | (1 | ) | (0.6 | )% | ||||||||||||||
Card and ATM fees | 84 | 79 | 80 | 82 | 81 | 5 | 6.3 | % | 3 | 3.7 | % | ||||||||||||||||||||||
Mortgage income | 43 | 40 | 43 | 52 | 69 | 3 | 7.5 | % | (26 | ) | (37.7 | )% | |||||||||||||||||||||
Investment management and trust fee income | 47 | 49 | 48 | 50 | 49 | (2 | ) | (4.1 | )% | (2 | ) | (4.1 | )% | ||||||||||||||||||||
Insurance commissions and fees | 32 | 30 | 28 | 27 | 29 | 2 | 6.7 | % | 3 | 10.3 | % | ||||||||||||||||||||||
Capital markets fee income and other (1) | 16 | 13 | 29 | 18 | 20 | 3 | 23.1 | % | (4 | ) | (20.0 | )% | |||||||||||||||||||||
Bank-owned life insurance | 23 | 19 | 20 | 18 | 22 | 4 | 21.1 | % | 1 | 4.5 | % | ||||||||||||||||||||||
Commercial credit fee income | 15 | 15 | 16 | 16 | 17 | — | NM | (2 | ) | (11.8 | )% | ||||||||||||||||||||||
Leveraged lease termination gains, net | — | 1 | 39 | — | — | (1 | ) | (100.0 | )% | — | NM | ||||||||||||||||||||||
Investment services fee income | 11 | 10 | 8 | 10 | 9 | 1 | 10.0 | % | 2 | 22.2 | % | ||||||||||||||||||||||
Securities gains, net | 6 | 2 | — | 3 | 8 | 4 | 200.0 | % | (2 | ) | (25.0 | )% | |||||||||||||||||||||
Gain on sale of other assets(2) | — | — | — | 24 | — | — | NM | — | NM | ||||||||||||||||||||||||
Net revenue (loss) from affordable housing | (17 | ) | (18 | ) | 1 | (18 | ) | (15 | ) | 1 | (5.6 | )% | (2 | ) | 13.3 | % | |||||||||||||||||
Other | 23 | 25 | 29 | 23 | 33 | (2 | ) | (8.0 | )% | (10 | ) | (30.3 | )% | ||||||||||||||||||||
Total non-interest income from continuing operations | $ | 457 | $ | 438 | $ | 526 | $ | 495 | $ | 497 | $ | 19 | 4.3 | % | $ | (40 | ) | (8.0 | )% |
Quarter Ended | |||||||||||||||||||||||||||||||||
($ amounts in millions) | 6/30/2014 | 3/31/2014 | 12/31/2013 | 9/30/2013 | 6/30/2013 | 2Q14 vs. 1Q14 | 2Q14 vs. 2Q13 | ||||||||||||||||||||||||||
Production and sales | $ | 26 | $ | 24 | $ | 25 | $ | 37 | $ | 54 | $ | 2 | 8.3 | % | $ | (28 | ) | (51.9 | )% | ||||||||||||||
Loan servicing | 22 | 21 | 22 | 22 | 23 | 1 | 4.8 | % | (1 | ) | (4.3 | )% | |||||||||||||||||||||
MSR hedge ineffectiveness: | |||||||||||||||||||||||||||||||||
MSRs fair value increase (decrease) (3) | (19 | ) | (17 | ) | 5 | (8 | ) | 24 | (2 | ) | 11.8 | % | (43 | ) | (179.2 | )% | |||||||||||||||||
MSRs hedge gain (loss) | 14 | 12 | (9 | ) | 1 | (32 | ) | 2 | 16.7 | % | 46 | (143.8 | )% | ||||||||||||||||||||
MSR hedge ineffectiveness | (5 | ) | (5 | ) | (4 | ) | (7 | ) | (8 | ) | — | NM | 3 | (37.5 | )% | ||||||||||||||||||
Total mortgage income | $ | 43 | $ | 40 | $ | 43 | $ | 52 | $ | 69 | $ | 3 | 7.5 | % | $ | (26 | ) | (37.7 | )% | ||||||||||||||
Mortgage production - purchased | $ | 968 | $ | 662 | $ | 802 | $ | 968 | $ | 1,009 | $ | 306 | 46.2 | % | $ | (41 | ) | (4.1 | )% | ||||||||||||||
Mortgage production - refinanced | 302 | 304 | 436 | 638 | 912 | (2 | ) | (0.7 | )% | (610 | ) | (66.9 | )% | ||||||||||||||||||||
Total mortgage production(4) | $ | 1,270 | $ | 966 | $ | 1,238 | $ | 1,606 | $ | 1,921 | $ | 304 | 31.5 | % | $ | (651 | ) | (33.9 | )% |
Quarter Ended | |||||||||||||||||||||||||||||||||
($ amounts in millions) | 6/30/2014 | 3/31/2014 | 12/31/2013 | 9/30/2013 | 6/30/2013 | 2Q14 vs. 1Q14 | 2Q14 vs. 2Q13 | ||||||||||||||||||||||||||
Investment services fee income | $ | 11 | $ | 10 | $ | 8 | $ | 10 | $ | 9 | $ | 1 | 10.0 | % | $ | 2 | 22.2 | % | |||||||||||||||
Investment management and trust fee income | 47 | 49 | 48 | 50 | 49 | (2 | ) | (4.1 | )% | (2 | ) | (4.1 | )% | ||||||||||||||||||||
Insurance commissions and fees | 32 | 30 | 28 | 27 | 29 | 2 | 6.7 | % | 3 | 10.3 | % | ||||||||||||||||||||||
Gain on sale of other assets(2) | — | — | — | 24 | — | — | NM | — | NM | ||||||||||||||||||||||||
Total wealth management income (5) | $ | 90 | $ | 89 | $ | 84 | $ | 111 | $ | 87 | $ | 1 | 1.1 | % | $ | 3 | 3.4 | % |
(1) | Capital markets fee income and other primarily relates to loan syndications, foreign exchange and derivatives. |
(2) | Gain on sale of a non-core portion of a Wealth Management business. |
(3) | Fair value adjustment includes payment decay and assumptions change impact. |
(4) | Represents total mortgage production during the period, including amounts sold into the secondary market as well as amounts retained in Regions' residential first mortgage loan portfolio. |
(5) | 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. |
Quarter Ended | |||||||||||||||||||||||||||||||||
($ amounts in millions) | 6/30/2014 | 3/31/2014 | 12/31/2013 | 9/30/2013 | 6/30/2013 | 2Q14 vs. 1Q14 | 2Q14 vs. 2Q13 | ||||||||||||||||||||||||||
Salaries and employee benefits | $ | 443 | $ | 455 | $ | 464 | $ | 455 | $ | 452 | $ | (12 | ) | (2.6 | )% | $ | (9 | ) | (2.0 | )% | |||||||||||||
Net occupancy expense | 90 | 93 | 91 | 92 | 92 | (3 | ) | (3.2 | )% | (2 | ) | (2.2 | )% | ||||||||||||||||||||
Furniture and equipment expense | 70 | 70 | 71 | 71 | 69 | — | NM | 1 | 1.4 | % | |||||||||||||||||||||||
Professional and legal expenses | 37 | 35 | 46 | 34 | 21 | 2 | 5.7 | % | 16 | 76.2 | % | ||||||||||||||||||||||
Deposit administrative fee | 13 | 22 | 20 | 35 | 37 | (9 | ) | (40.9 | )% | (24 | ) | (64.9 | )% | ||||||||||||||||||||
Outside services | 35 | 27 | 31 | 27 | 26 | 8 | 29.6 | % | 9 | 34.6 | % | ||||||||||||||||||||||
Marketing | 24 | 24 | 25 | 26 | 24 | — | NM | — | NM | ||||||||||||||||||||||||
Loss on early extinguishment of debt | — | — | — | 5 | 56 | — | NM | (56 | ) | (100.0 | )% | ||||||||||||||||||||||
Regulatory charge (credit) | (7 | ) | — | 58 | — | — | (7 | ) | NM | (7 | ) | NM | |||||||||||||||||||||
Branch consolidation and property and equipment charges | — | 6 | 5 | — | — | (6 | ) | (100.0 | )% | — | NM | ||||||||||||||||||||||
Provision (credit) for unfunded credit losses | 11 | — | 4 | 1 | (15 | ) | 11 | NM | 26 | (173.3 | )% | ||||||||||||||||||||||
Gain on sale of TDRs held for sale, net | — | (35 | ) | — | — | — | 35 | (100.0 | )% | — | NM | ||||||||||||||||||||||
Other | 104 | 120 | 131 | 138 | 122 | (16 | ) | (13.3 | )% | (18 | ) | (14.8 | )% | ||||||||||||||||||||
Total non-interest expense from continuing operations | $ | 820 | $ | 817 | $ | 946 | $ | 884 | $ | 884 | $ | 3 | 0.4 | % | $ | (64 | ) | (7.2 | )% |
• | Deposit administrative fees in the second quarter of 2014 benefited from refunds of previously incurred fees. |
• | Outside Services increased by $8 million quarter over quarter primarily due to the use of temporary staffing on compliance and regulatory related projects. |
• | In the fourth quarter of 2013, Regions recorded a non-tax deductible regulatory charge of $58 million related to previously disclosed inquiries from government authorities. These matters were settled in the second quarter of 2014 for $7 million less than originally estimated. |
• | The provision for unfunded credit losses represents reserves related to unfunded commitments and letters of credit. Fluctuations from quarter to quarter are expected as these instruments fund. The $11 million increase in the second quarter of 2014 is primarily the result of increased reserves on individual instruments. |
• | Other non-interest expenses decreased $16 million quarter over quarter primarily due to declines in other real estate owned expense and mortgage repurchase reserves, reflecting improving credit conditions. |
As of and for Quarter Ended | |||||||||||||||||||
($ amounts in millions) | 6/30/2014 | 3/31/2014 | 12/31/2013 | 9/30/2013 | 6/30/2013 | ||||||||||||||
Components: | |||||||||||||||||||
Allowance for loan losses (ALL) | $ | 1,229 | $ | 1,261 | $ | 1,341 | $ | 1,540 | $ | 1,636 | |||||||||
Reserve for unfunded credit commitments | 89 | 78 | 78 | 74 | 73 | ||||||||||||||
Allowance for credit losses (ACL) | $ | 1,318 | $ | 1,339 | $ | 1,419 | $ | 1,614 | $ | 1,709 | |||||||||
Provision for loan losses | $ | 35 | $ | 2 | $ | 79 | $ | 18 | $ | 31 | |||||||||
Provision (credit) for unfunded credit losses | 11 | — | 4 | 1 | (15 | ) | |||||||||||||
Net loans charged-off: | |||||||||||||||||||
Commercial and industrial | 15 | 10 | 36 | 17 | 30 | ||||||||||||||
Commercial real estate mortgage—owner-occupied | 11 | 13 | 27 | 20 | 28 | ||||||||||||||
Commercial real estate construction—owner-occupied | — | 1 | (1 | ) | — | — | |||||||||||||
Total commercial | 26 | 24 | 62 | 37 | 58 | ||||||||||||||
Commercial investor real estate mortgage | 2 | 1 | (2 | ) | 6 | 16 | |||||||||||||
Commercial investor real estate construction | (2 | ) | — | (1 | ) | (1 | ) | (2 | ) | ||||||||||
Total investor real estate | — | 1 | (3 | ) | 5 | 14 | |||||||||||||
Residential first mortgage (3) | 7 | 9 | 164 | 13 | 18 | ||||||||||||||
Home equity—first lien | 3 | 7 | 8 | 10 | 7 | ||||||||||||||
Home equity—second lien | 8 | 14 | 18 | 22 | 22 | ||||||||||||||
Indirect | 4 | 7 | 6 | 5 | 4 | ||||||||||||||
Consumer credit card | 8 | 8 | 8 | 6 | 11 | ||||||||||||||
Other consumer | 11 | 12 | 15 | 16 | 10 | ||||||||||||||
Total consumer (3) | 41 | 57 | 219 | 72 | 72 | ||||||||||||||
Total (3) | $ | 67 | $ | 82 | $ | 278 | $ | 114 | $ | 144 | |||||||||
Net loan charge-offs as a % of average loans, annualized: | |||||||||||||||||||
Commercial and industrial | 0.20 | % | 0.14 | % | 0.48 | % | 0.22 | % | 0.43 | % | |||||||||
Commercial real estate mortgage—owner-occupied | 0.46 | % | 0.58 | % | 1.13 | % | 0.81 | % | 1.17 | % | |||||||||
Commercial real estate construction—owner-occupied | 0.05 | % | 0.47 | % | (0.10 | )% | (0.03 | )% | (0.83 | )% | |||||||||
Total commercial | 0.25 | % | 0.25 | % | 0.63 | % | 0.37 | % | 0.61 | % | |||||||||
Commercial investor real estate mortgage | 0.12 | % | 0.10 | % | (0.13 | )% | 0.39 | % | 1.02 | % | |||||||||
Commercial investor real estate construction | (0.36 | )% | (0.13 | )% | (0.44 | )% | (0.18 | )% | (0.54 | )% | |||||||||
Total investor real estate | — | % | 0.05 | % | (0.20 | )% | 0.28 | % | 0.79 | % | |||||||||
Residential first mortgage (3) | 0.20 | % | 0.32 | % | 5.10 | % | 0.41 | % | 0.56 | % | |||||||||
Home equity—first lien | 0.24 | % | 0.44 | % | 0.51 | % | 0.66 | % | 0.47 | % | |||||||||
Home equity—second lien | 0.62 | % | 1.13 | % | 1.35 | % | 1.56 | % | 1.53 | % | |||||||||
Indirect | 0.53 | % | 0.85 | % | 0.78 | % | 0.76 | % | 0.56 | % | |||||||||
Consumer credit card | 3.53 | % | 3.63 | % | 3.65 | % | 3.06 | % | 4.95 | % | |||||||||
Other consumer | 3.84 | % | 4.14 | % | 5.04 | % | 5.24 | % | 3.66 | % | |||||||||
Total consumer (3) | 0.57 | % | 0.81 | % | 2.98 | % | 0.99 | % | 0.99 | % | |||||||||
Total (3) | 0.35 | % | 0.44 | % | 1.46 | % | 0.60 | % | 0.77 | % | |||||||||
Non-accrual loans, excluding loans held for sale | $ | 899 | $ | 1,070 | $ | 1,082 | $ | 1,354 | $ | 1,506 | |||||||||
Non-performing loans held for sale | 20 | 40 | 82 | 43 | 53 | ||||||||||||||
Non-accrual loans, including loans held for sale | 919 | 1,110 | 1,164 | 1,397 | 1,559 | ||||||||||||||
Foreclosed properties | 128 | 129 | 136 | 147 | 136 | ||||||||||||||
Non-performing assets (NPAs) | $ | 1,047 | $ | 1,239 | $ | 1,300 | $ | 1,544 | $ | 1,695 | |||||||||
Loans past due > 90 days (1) | $ | 251 | $ | 257 | $ | 256 | $ | 270 | $ | 319 | |||||||||
Accruing restructured loans not included in categories above (2) | $ | 1,412 | $ | 1,578 | $ | 1,676 | $ | 2,529 | $ | 2,591 | |||||||||
Accruing restructured loans held for sale not included in categories above (2) | $ | 7 | $ | 11 | $ | 545 | $ | 19 | $ | 19 | |||||||||
Credit Ratios: | |||||||||||||||||||
ACL/Loans, net | 1.72 | % | 1.77 | % | 1.90 | % | 2.13 | % | 2.28 | % | |||||||||
ALL/Loans, net | 1.61 | % | 1.67 | % | 1.80 | % | 2.03 | % | 2.18 | % | |||||||||
Allowance for loan losses to non-performing loans, excluding loans held for sale | 1.37x | 1.18x | 1.24x | 1.14x | 1.09x | ||||||||||||||
Non-accrual loans, excluding loans held for sale/Loans, net | 1.17 | % | 1.41 | % | 1.45 | % | 1.78 | % | 2.01 | % | |||||||||
NPAs (ex. 90+ past due)/Loans, foreclosed properties and non-performing loans held for sale | 1.37 | % | 1.63 | % | 1.74 | % | 2.03 | % | 2.25 | % | |||||||||
NPAs (inc. 90+ past due)/Loans, foreclosed properties and non-performing loans held for sale (1) | 1.69 | % | 1.97 | % | 2.08 | % | 2.38 | % | 2.68 | % |
(1) | Excludes guaranteed residential first mortgages that are 90+ days past due and still accruing. Refer to the footnotes on page 14 for amounts related to these loans. |
(2) | See page 15 for detail of restructured loans. |
(3) | Includes $151 million in residential first mortgage net charge-offs on loans transferred to loans held for sale during the fourth quarter of 2013. Excluding these net charge-offs, the adjusted net charge-off percentage for residential first mortgages for the fourth quarter of 2013 would have been 0.41% (non-GAAP). Excluding these net charge-offs, the adjusted net charge-off percentage for total consumer loans for the fourth quarter of 2013 would have been 0.93% (non-GAAP). The adjusted net charge-off percentage for all loans would have been 0.67% (non-GAAP). See page 12 for a reconciliation of these GAAP to non-GAAP net charge-off ratios. |
As of and for Quarter Ended | ||||||||||||||||||||
($ amounts in millions) | 6/30/2014 | 3/31/2014 | 12/31/2013 | 9/30/2013 | 6/30/2013 | |||||||||||||||
Residential first mortgage net charge-offs (GAAP) | A | $ | 7 | $ | 9 | $ | 164 | $ | 13 | $ | 18 | |||||||||
Less: Net charge-offs associated with transfer to loans held for sale | — | — | 151 | — | — | |||||||||||||||
Adjusted residential first mortgage net charge-offs (non-GAAP) | B | $ | 7 | $ | 9 | $ | 13 | $ | 13 | $ | 18 | |||||||||
Total consumer net charge-offs (GAAP) | C | $ | 41 | $ | 57 | $ | 219 | $ | 72 | $ | 72 | |||||||||
Less: Net charge-offs associated with transfer to loans held for sale | — | — | 151 | — | — | |||||||||||||||
Adjusted total consumer net charge-offs (non-GAAP) | D | $ | 41 | $ | 57 | $ | 68 | $ | 72 | $ | 72 | |||||||||
Total net charge-offs (GAAP) | E | $ | 67 | $ | 82 | $ | 278 | $ | 114 | $ | 144 | |||||||||
Less: Net charge-offs associated with transfer to loans held for sale | — | — | 151 | — | — | |||||||||||||||
Adjusted net charge-offs (non-GAAP) | F | $ | 67 | $ | 82 | $ | 127 | $ | 114 | $ | 144 | |||||||||
Average residential first mortgage loans (GAAP) | G | $ | 12,137 | $ | 12,127 | $ | 12,752 | $ | 12,835 | $ | 12,823 | |||||||||
Add: Average balances of residential first mortgage loans transferred to loans held for sale | — | — | 74 | — | — | |||||||||||||||
Adjusted average residential first mortgage loans (non-GAAP) | H | $ | 12,137 | $ | 12,127 | $ | 12,826 | $ | 12,835 | $ | 12,823 | |||||||||
Average total consumer loans (GAAP) | I | $ | 28,687 | $ | 28,603 | $ | 29,147 | $ | 29,031 | $ | 28,892 | |||||||||
Add: Average balances of residential first mortgage loans transferred to loans held for sale | — | — | 74 | — | — | |||||||||||||||
Adjusted average total consumer loans (non-GAAP) | J | $ | 28,687 | $ | 28,603 | $ | 29,221 | $ | 29,031 | $ | 28,892 | |||||||||
Total average loans (GAAP) | K | $ | 76,390 | $ | 75,139 | $ | 75,843 | $ | 75,359 | $ | 74,549 | |||||||||
Add: Average balances of residential first mortgage loans transferred to loans held for sale | — | — | 74 | — | — | |||||||||||||||
Adjusted total average loans (non-GAAP) | L | $ | 76,390 | $ | 75,139 | $ | 75,917 | $ | 75,359 | $ | 74,549 | |||||||||
Residential first mortgage net charge-off percentage (GAAP)* | A/G | 0.20 | % | 0.32 | % | 5.10 | % | 0.41 | % | 0.56 | % | |||||||||
Adjusted residential first mortgage net charge-off percentage (non-GAAP)* | B/H | 0.20 | % | 0.32 | % | 0.41 | % | 0.41 | % | 0.56 | % | |||||||||
Total consumer net charge-off percentage (GAAP)* | C/I | 0.57 | % | 0.81 | % | 2.98 | % | 0.99 | % | 0.99 | % | |||||||||
Adjusted total consumer net charge-off percentage (non-GAAP)* | D/J | 0.57 | % | 0.81 | % | 0.93 | % | 0.99 | % | 0.99 | % | |||||||||
Total net charge-off percentage (GAAP)* | E/K | 0.35 | % | 0.44 | % | 1.46 | % | 0.60 | % | 0.77 | % | |||||||||
Adjusted total net charge-off percentage (non-GAAP)* | F/L | 0.35 | % | 0.44 | % | 0.67 | % | 0.60 | % | 0.77 | % |
As of | ||||||||||||||||||||||||||||||||||
($ amounts in millions) | 6/30/2014 | 3/31/2014 | 12/31/2013 | 9/30/2013 | 6/30/2013 | |||||||||||||||||||||||||||||
Commercial and industrial | $ | 200 | 0.64 | % | $ | 280 | 0.92 | % | $ | 257 | 0.87 | % | $ | 383 | 1.28 | % | $ | 408 | 1.41 | % | ||||||||||||||
Commercial real estate mortgage—owner-occupied | 294 | 3.25 | % | 307 | 3.31 | % | 303 | 3.19 | % | 364 | 3.81 | % | 398 | 4.08 | % | |||||||||||||||||||
Commercial real estate construction—owner-occupied | 8 | 2.32 | % | 16 | 4.31 | % | 17 | 5.33 | % | 12 | 3.25 | % | 15 | 4.38 | % | |||||||||||||||||||
Total Commercial | 502 | 1.23 | % | 603 | 1.50 | % | 577 | 1.47 | % | 759 | 1.91 | % | 821 | 2.10 | % | |||||||||||||||||||
Commercial investor real estate mortgage | 158 | 3.05 | % | 209 | 3.91 | % | 238 | 4.47 | % | 276 | 4.92 | % | 352 | 6.07 | % | |||||||||||||||||||
Commercial investor real estate construction | 9 | 0.49 | % | 8 | 0.51 | % | 10 | 0.70 | % | 31 | 2.34 | % | 16 | 1.30 | % | |||||||||||||||||||
Total Investor Real Estate | 167 | 2.39 | % | 217 | 3.11 | % | 248 | 3.67 | % | 307 | 4.43 | % | 368 | 5.25 | % | |||||||||||||||||||
Residential first mortgage | 119 | 0.98 | % | 136 | 1.12 | % | 146 | 1.21 | % | 167 | 1.30 | % | 186 | 1.44 | % | |||||||||||||||||||
Home equity | 111 | 1.00 | % | 114 | 1.02 | % | 111 | 0.98 | % | 121 | 1.06 | % | 130 | 1.14 | % | |||||||||||||||||||
Direct | — | — | % | — | — | % | — | — | % | — | — | % | — | 0.06 | % | |||||||||||||||||||
Indirect | — | — | % | — | — | % | — | — | % | — | — | % | 1 | 0.03 | % | |||||||||||||||||||
Consumer credit card | — | — | % | — | — | % | — | — | % | — | — | % | — | — | % | |||||||||||||||||||
Other consumer | — | — | % | — | — | % | — | — | % | — | — | % | — | — | % | |||||||||||||||||||
Total Consumer | 230 | 0.80 | % | 250 | 0.87 | % | 257 | 0.90 | % | 288 | 0.99 | % | 317 | 1.09 | % | |||||||||||||||||||
Total Non-Accrual Loans | $ | 899 | 1.17 | % | $ | 1,070 | 1.41 | % | $ | 1,082 | 1.45 | % | $ | 1,354 | 1.78 | % | $ | 1,506 | 2.01 | % |
As of | |||||||||||||||||||||||||||||||||
6/30/2014 | 6/30/2014 | ||||||||||||||||||||||||||||||||
($ amounts in millions) | 6/30/2014 | 3/31/2014 | 12/31/2013 | 9/30/2013 | 6/30/2013 | vs. 3/31/2014 | vs. 6/30/2013 | ||||||||||||||||||||||||||
Special Mention | $ | 1,327 | $ | 1,067 | $ | 927 | $ | 1,035 | $ | 1,142 | $ | 260 | 24.4 | % | $ | 185 | 16.2 | % | |||||||||||||||
Accruing Classified Loans | 1,055 | 1,094 | 1,263 | 1,411 | 1,587 | (39 | ) | (3.6 | )% | (532 | ) | (33.5 | )% | ||||||||||||||||||||
Non-Accruing Classified Loans | 669 | 820 | 825 | 1,066 | 1,189 | (151 | ) | (18.4 | )% | (520 | ) | (43.7 | )% | ||||||||||||||||||||
Total | $ | 3,051 | $ | 2,981 | $ | 3,015 | $ | 3,512 | $ | 3,918 | $ | 70 | 2.3 | % | $ | (867 | ) | (22.1 | )% |
As of 6/30/2014 | |||||||||||||||||
($ amounts in millions) | First Lien | % of Total | Second Lien | % of Total | Total | ||||||||||||
2014 | $ | 14 | 0.16 | % | $ | 114 | 1.29 | % | $ | 128 | |||||||
2015 | 24 | 0.27 | % | 171 | 1.95 | % | $ | 195 | |||||||||
2016 | 30 | 0.34 | % | 40 | 0.45 | % | $ | 70 | |||||||||
2017 | 6 | 0.06 | % | 12 | 0.14 | % | $ | 18 | |||||||||
2018 | 18 | 0.20 | % | 26 | 0.30 | % | $ | 44 | |||||||||
2019-2023 | 1,244 | 14.12 | % | 1,106 | 12.55 | % | $ | 2,350 | |||||||||
2024-2028 | 2,770 | 31.43 | % | 3,111 | 35.30 | % | $ | 5,881 | |||||||||
Thereafter | 72 | 0.82 | % | 55 | 0.62 | % | $ | 127 | |||||||||
Total | $ | 4,178 | 47.40 | % | $ | 4,635 | 52.60 | % | $ | 8,813 |
(1) | The balance of Regions' home equity portfolio was $11,064 million at June 30, 2014 consisting of $8,813 million of home equity lines of credit and $2,251 million of closed-end home equity loans. The closed-end loans were primarily originated as amortizing loans, and were therefore excluded from the table above. |
Accruing 30-89 Days Past Due Loans | As of | |||||||||||||||||||||||||||||||||
($ amounts in millions) | 6/30/2014 | 3/31/2014 | 12/31/2013 | 9/30/2013 | 6/30/2013 | |||||||||||||||||||||||||||||
Commercial and industrial | $ | 35 | 0.11 | % | $ | 27 | 0.09 | % | $ | 43 | 0.15 | % | $ | 31 | 0.10 | % | $ | 36 | 0.12 | % | ||||||||||||||
Commercial real estate mortgage—owner-occupied | 56 | 0.63 | % | 37 | 0.39 | % | 56 | 0.59 | % | 56 | 0.59 | % | 52 | 0.54 | % | |||||||||||||||||||
Commercial real estate construction—owner-occupied | 1 | 0.21 | % | — | 0.10 | % | — | 0.06 | % | 1 | 0.21 | % | 1 | 0.25 | % | |||||||||||||||||||
Total Commercial | 92 | 0.23 | % | 64 | 0.16 | % | 99 | 0.25 | % | 88 | 0.22 | % | 89 | 0.23 | % | |||||||||||||||||||
Commercial investor real estate mortgage | 61 | 1.17 | % | 75 | 1.41 | % | 35 | 0.66 | % | 118 | 2.11 | % | 60 | 1.04 | % | |||||||||||||||||||
Commercial investor real estate construction | — | 0.01 | % | 2 | 0.15 | % | 5 | 0.32 | % | 4 | 0.27 | % | 3 | 0.21 | % | |||||||||||||||||||
Total Investor Real Estate | 61 | 0.87 | % | 77 | 1.11 | % | 40 | 0.59 | % | 122 | 1.76 | % | 63 | 0.90 | % | |||||||||||||||||||
Residential first mortgage—non-guaranteed (1) | 153 | 1.30 | % | 146 | 1.24 | % | 187 | 1.58 | % | 176 | 1.41 | % | 183 | 1.47 | % | |||||||||||||||||||
Home equity | 111 | 1.00 | % | 123 | 1.10 | % | 146 | 1.30 | % | 131 | 1.15 | % | 133 | 1.16 | % | |||||||||||||||||||
Direct | 8 | 0.92 | % | 8 | 0.95 | % | 9 | 1.09 | % | 8 | 1.03 | % | 9 | 1.16 | % | |||||||||||||||||||
Indirect | 45 | 1.31 | % | 42 | 1.28 | % | 50 | 1.62 | % | 39 | 1.35 | % | 38 | 1.39 | % | |||||||||||||||||||
Consumer credit card | 11 | 1.13 | % | 11 | 1.26 | % | 13 | 1.38 | % | 12 | 1.37 | % | 10 | 1.18 | % | |||||||||||||||||||
Other consumer | 10 | 2.91 | % | 8 | 2.41 | % | 10 | 2.89 | % | 12 | 3.38 | % | 12 | 3.53 | % | |||||||||||||||||||
Total Consumer (1) | 338 | 1.19 | % | 338 | 1.20 | % | 415 | 1.47 | % | 378 | 1.31 | % | 385 | 1.35 | % | |||||||||||||||||||
Total Accruing 30-89 Days Past Due Loans (1) | $ | 491 | 0.64 | % | $ | 479 | 0.64 | % | $ | 554 | 0.75 | % | $ | 588 | 0.78 | % | $ | 537 | 0.72 | % | ||||||||||||||
Accruing 90+ Days Past Due Loans | As of | |||||||||||||||||||||||||||||||||
($ amounts in millions) | 6/30/2014 | 3/31/2014 | 12/31/2013 | 9/30/2013 | 6/30/2013 | |||||||||||||||||||||||||||||
Commercial and industrial | $ | 9 | 0.03 | % | $ | 7 | 0.02 | % | $ | 6 | 0.02 | % | $ | 6 | 0.02 | % | $ | 8 | 0.03 | % | ||||||||||||||
Commercial real estate mortgage—owner-occupied | 5 | 0.05 | % | 3 | 0.04 | % | 6 | 0.06 | % | 7 | 0.07 | % | 16 | 0.16 | % | |||||||||||||||||||
Commercial real estate construction—owner-occupied | — | — | % | — | — | % | — | — | % | — | 0.12 | % | — | — | % | |||||||||||||||||||
Total Commercial | 14 | 0.03 | % | 10 | 0.03 | % | 12 | 0.03 | % | 13 | 0.03 | % | 24 | 0.06 | % | |||||||||||||||||||
Commercial investor real estate mortgage | 17 | 0.32 | % | 2 | 0.04 | % | 6 | 0.10 | % | 15 | 0.27 | % | 24 | 0.41 | % | |||||||||||||||||||
Commercial investor real estate construction | — | — | % | — | — | % | — | — | % | 1 | 0.07 | % | — | 0.03 | % | |||||||||||||||||||
Total Investor Real Estate | 17 | 0.24 | % | 2 | 0.03 | % | 6 | 0.08 | % | 16 | 0.23 | % | 24 | 0.34 | % | |||||||||||||||||||
Residential first mortgage—non-guaranteed (2) | 136 | 1.15 | % | 154 | 1.31 | % | 142 | 1.21 | % | 149 | 1.19 | % | 178 | 1.42 | % | |||||||||||||||||||
Home equity | 65 | 0.58 | % | 71 | 0.63 | % | 75 | 0.66 | % | 72 | 0.64 | % | 75 | 0.66 | % | |||||||||||||||||||
Direct | 1 | 0.14 | % | 1 | 0.12 | % | 1 | 0.14 | % | 2 | 0.16 | % | 1 | 0.15 | % | |||||||||||||||||||
Indirect | 5 | 0.16 | % | 5 | 0.15 | % | 5 | 0.17 | % | 4 | 0.15 | % | 3 | 0.13 | % | |||||||||||||||||||
Consumer credit card | 11 | 1.19 | % | 12 | 1.30 | % | 12 | 1.28 | % | 12 | 1.27 | % | 11 | 1.27 | % | |||||||||||||||||||
Other consumer | 2 | 0.57 | % | 2 | 0.62 | % | 3 | 0.64 | % | 2 | 0.47 | % | 3 | 0.63 | % | |||||||||||||||||||
Total Consumer (2) | 220 | 0.78 | % | 245 | 0.87 | % | 238 | 0.84 | % | 241 | 0.83 | % | 271 | 0.95 | % | |||||||||||||||||||
Total Accruing 90+ Days Past Due Loans (2) | $ | 251 | 0.33 | % | $ | 257 | 0.34 | % | $ | 256 | 0.34 | % | $ | 270 | 0.36 | % | $ | 319 | 0.43 | % |
(1) | Excludes loans that are 100% guaranteed by FHA and also those 100% guaranteed by GNMA where Regions has the right but not the obligation to repurchase. Total 30-89 days past due guaranteed loans excluded were $19 million at 6/30/14, $16 million at 3/31/14, $17 million at 12/31/13, $18 million at 9/30/13, and $20 million at 6/30/13. |
(2) | Excludes loans that are 100% guaranteed by FHA and also those 100% guaranteed by GNMA where Regions has the right but not the obligation to repurchase. Total 90 days or more past due guaranteed loans excluded were $88 million at 6/30/14, $94 million at 3/31/14, $106 million at 12/31/13, $97 million at 9/30/13, and $96 million at 6/30/13. |
As of | |||||||||||||||||||
($ amounts in millions) | 6/30/2014 | 3/31/2014 | 12/31/2013 | 9/30/2013 | 6/30/2013 | ||||||||||||||
Current: | |||||||||||||||||||
Commercial | $ | 332 | $ | 408 | $ | 441 | $ | 428 | $ | 426 | |||||||||
Investor real estate | 321 | 441 | 498 | 599 | 721 | ||||||||||||||
Residential first mortgage | 261 | 240 | 212 | 894 | 898 | ||||||||||||||
Home equity | 332 | 334 | 332 | 337 | 343 | ||||||||||||||
Consumer credit card | 2 | 2 | 2 | 2 | 1 | ||||||||||||||
Other consumer | 20 | 22 | 25 | 28 | 31 | ||||||||||||||
Total Current | 1,268 | 1,447 | 1,510 | 2,288 | 2,420 | ||||||||||||||
Accruing 30-89 DPD: | |||||||||||||||||||
Commercial | 23 | 18 | 27 | 17 | 18 | ||||||||||||||
Investor real estate | 34 | 18 | 13 | 88 | 26 | ||||||||||||||
Residential first mortgage | 61 | 70 | 95 | 104 | 91 | ||||||||||||||
Home equity | 24 | 23 | 29 | 29 | 33 | ||||||||||||||
Other consumer | 2 | 2 | 2 | 3 | 3 | ||||||||||||||
Total Accruing 30-89 DPD | 144 | 131 | 166 | 241 | 171 | ||||||||||||||
Total Accruing and <90 DPD | 1,412 | 1,578 | 1,676 | 2,529 | 2,591 | ||||||||||||||
Non-accrual or 90+ DPD: | |||||||||||||||||||
Commercial | 146 | 207 | 156 | 283 | 302 | ||||||||||||||
Investor real estate | 96 | 145 | 157 | 174 | 208 | ||||||||||||||
Residential first mortgage | 130 | 147 | 156 | 161 | 177 | ||||||||||||||
Home equity | 27 | 29 | 30 | 31 | 31 | ||||||||||||||
Total Non-accrual or 90+DPD | 399 | 528 | 499 | 649 | 718 | ||||||||||||||
Total TDRs - Loans | $ | 1,811 | $ | 2,106 | $ | 2,175 | $ | 3,178 | $ | 3,309 | |||||||||
TDRs - Held For Sale (1) | 16 | 38 | 579 | 31 | 39 | ||||||||||||||
Total TDRs | $ | 1,827 | $ | 2,144 | $ | 2,754 | $ | 3,209 | $ | 3,348 |
(1) | The majority of TDRs held for sale at December 31, 2013 were comprised of residential first mortgage loans transfered during the fourth quarter of 2013 and subsequently sold in the first quarter of 2014. |
Quarter Ended | ||||||||||||||||||||||||||||||||||
($ amounts in millions) | 6/30/2014 | 3/31/2014 | 12/31/2013 | 9/30/2013 | 6/30/2013 | 2Q14 vs. 1Q14 | 2Q14 vs. 2Q13 | |||||||||||||||||||||||||||
Non-interest expense (GAAP) | $ | 820 | $ | 817 | $ | 946 | $ | 884 | $ | 884 | $ | 3 | 0.4 | % | $ | (64 | ) | (7.2 | )% | |||||||||||||||
Adjustments: | ||||||||||||||||||||||||||||||||||
Loss on early extinguishment of debt | — | — | — | (5 | ) | (56 | ) | — | NM | 56 | (100.0 | )% | ||||||||||||||||||||||
Regulatory (charge) credit | 7 | — | (58 | ) | — | — | 7 | NM | 7 | NM | ||||||||||||||||||||||||
Branch consolidation and property and equipment charges | — | (6 | ) | (5 | ) | — | — | 6 | (100.0 | )% | — | NM | ||||||||||||||||||||||
Gain on sale of TDRs held for sale, net | — | 35 | — | — | — | (35 | ) | (100.0 | )% | — | NM | |||||||||||||||||||||||
Adjusted non-interest expense (non-GAAP) | A | $ | 827 | $ | 846 | $ | 883 | $ | 879 | $ | 828 | $ | (19 | ) | (2.2 | )% | $ | (1 | ) | (0.1 | )% | |||||||||||||
Net interest income (GAAP) | $ | 822 | $ | 816 | $ | 832 | $ | 824 | $ | 808 | $ | 6 | 0.7 | % | $ | 14 | 1.7 | % | ||||||||||||||||
Taxable-equivalent adjustment | 15 | 15 | 14 | 14 | 13 | — | NM | 2 | 15.4 | % | ||||||||||||||||||||||||
Net interest income, taxable-equivalent basis | 837 | 831 | 846 | 838 | 821 | 6 | 0.7 | % | 16 | 1.9 | % | |||||||||||||||||||||||
Non-interest income (GAAP) | 457 | 438 | 526 | 495 | 497 | 19 | 4.3 | % | (40 | ) | (8.0 | )% | ||||||||||||||||||||||
Adjustments: | ||||||||||||||||||||||||||||||||||
Leveraged lease termination gains, net | — | (1 | ) | (39 | ) | — | — | 1 | (100.0 | )% | — | NM | ||||||||||||||||||||||
Securities gains, net | (6 | ) | (2 | ) | — | (3 | ) | (8 | ) | (4 | ) | 200.0 | % | 2 | (25.0 | )% | ||||||||||||||||||
Gain on sale of other assets(1) | — | — | — | (24 | ) | — | — | NM | — | NM | ||||||||||||||||||||||||
Adjusted non-interest income (non-GAAP) | B | 451 | 435 | 487 | 468 | 489 | 16 | 3.7 | % | (38 | ) | (7.8 | )% | |||||||||||||||||||||
Adjusted total revenue (non-GAAP) | C | $ | 1,288 | $ | 1,266 | $ | 1,333 | $ | 1,306 | $ | 1,310 | $ | 22 | 1.7 | % | $ | (22 | ) | (1.7 | )% | ||||||||||||||
Adjusted efficiency ratio (non-GAAP) | A/C | 64.2 | % | 66.9 | % | 66.3 | % | 67.3 | % | 63.1 | % | |||||||||||||||||||||||
Adjusted fee income ratio (non-GAAP) | B/C | 35.0 | % | 34.4 | % | 36.5 | % | 35.9 | % | 37.3 | % |
(1) | Gain on sale of a non-core portion of a Wealth Management business. |
As of and for Quarter Ended | ||||||||||||||||||||
($ amounts in millions, except per share data) | 6/30/2014 | 3/31/2014 | 12/31/2013 | 9/30/2013 | 6/30/2013 | |||||||||||||||
RETURN ON AVERAGE TANGIBLE COMMON STOCKHOLDERS’ EQUITY | ||||||||||||||||||||
Net income available to common shareholders (GAAP) | A | $ | 292 | $ | 311 | $ | 219 | $ | 285 | $ | 259 | |||||||||
Average stockholders’ equity (GAAP) | $ | 16,680 | $ | 16,002 | $ | 15,504 | $ | 15,317 | $ | 15,644 | ||||||||||
Less: | ||||||||||||||||||||
Average intangible assets (GAAP) | 5,104 | 5,107 | 5,118 | 5,129 | 5,141 | |||||||||||||||
Average deferred tax liability related to intangibles (GAAP) | (184 | ) | (187 | ) | (189 | ) | (188 | ) | (188 | ) | ||||||||||
Average preferred stock (GAAP) | 779 | 444 | 452 | 460 | 468 | |||||||||||||||
Average tangible common stockholders’ equity (non-GAAP) | B | $ | 10,981 | $ | 10,638 | $ | 10,123 | $ | 9,916 | $ | 10,223 | |||||||||
Return on average tangible common stockholders’ equity (non-GAAP)(1) | A/B | 10.68 | % | 11.84 | % | 8.58 | % | 11.41 | % | 10.15 | % | |||||||||
TANGIBLE COMMON RATIOS—CONSOLIDATED | ||||||||||||||||||||
Stockholders’ equity (GAAP) | $ | 17,029 | $ | 16,132 | $ | 15,768 | $ | 15,489 | $ | 15,329 | ||||||||||
Less: | ||||||||||||||||||||
Preferred stock (GAAP) | 920 | 442 | 450 | 458 | 466 | |||||||||||||||
Intangible assets (GAAP) | 5,097 | 5,110 | 5,111 | 5,123 | 5,134 | |||||||||||||||
Deferred tax liability related to intangibles (GAAP) | (183 | ) | (186 | ) | (188 | ) | (189 | ) | (187 | ) | ||||||||||
Tangible common stockholders’ equity (non-GAAP) | C | $ | 11,195 | $ | 10,766 | $ | 10,395 | $ | 10,097 | $ | 9,916 | |||||||||
Total assets (GAAP) | $ | 118,719 | $ | 117,933 | $ | 117,396 | $ | 116,864 | $ | 118,707 | ||||||||||
Less: | ||||||||||||||||||||
Intangible assets (GAAP) | 5,097 | 5,110 | 5,111 | 5,123 | 5,134 | |||||||||||||||
Deferred tax liability related to intangibles (GAAP) | (183 | ) | (186 | ) | (188 | ) | (189 | ) | (187 | ) | ||||||||||
Tangible assets (non-GAAP) | D | $ | 113,805 | $ | 113,009 | $ | 112,473 | $ | 111,930 | $ | 113,760 | |||||||||
Shares outstanding—end of quarter | E | 1,378 | 1,378 | 1,378 | 1,378 | 1,395 | ||||||||||||||
Tangible common stockholders’ equity to tangible assets (non-GAAP) | C/D | 9.84 | % | 9.53 | % | 9.24 | % | 9.02 | % | 8.72 | % | |||||||||
Tangible common book value per share (non-GAAP) | C/E | $ | 8.12 | $ | 7.81 | $ | 7.54 | $ | 7.32 | $ | 7.11 |
As of and for Quarter Ended | ||||||||||||||||||||
($ amounts in millions) | 6/30/2014 | 3/31/2014 | 12/31/2013 | 9/30/2013 | 6/30/2013 | |||||||||||||||
TIER 1 COMMON RISK-BASED RATIO(2) —CONSOLIDATED | ||||||||||||||||||||
Stockholders’ equity (GAAP) | $ | 17,029 | $ | 16,132 | $ | 15,768 | $ | 15,489 | $ | 15,329 | ||||||||||
Accumulated other comprehensive (income) loss | 52 | 229 | 319 | 411 | 478 | |||||||||||||||
Non-qualifying goodwill and intangibles | (4,797 | ) | (4,804 | ) | (4,798 | ) | (4,804 | ) | (4,812 | ) | ||||||||||
Disallowed servicing assets | (28 | ) | (29 | ) | (31 | ) | (30 | ) | (30 | ) | ||||||||||
Qualifying trust preferred securities | — | — | — | — | 3 | |||||||||||||||
Tier 1 capital (regulatory) | $ | 12,256 | $ | 11,528 | $ | 11,258 | $ | 11,066 | $ | 10,968 | ||||||||||
Qualifying trust preferred securities | — | — | — | — | (3 | ) | ||||||||||||||
Preferred stock (GAAP) | (920 | ) | (442 | ) | (450 | ) | (458 | ) | (466 | ) | ||||||||||
Tier 1 common equity (non-GAAP) | F | $ | 11,336 | $ | 11,086 | $ | 10,808 | $ | 10,608 | $ | 10,499 | |||||||||
Risk-weighted assets (regulatory) | G | $ | 98,036 | $ | 97,418 | $ | 96,416 | $ | 96,486 | $ | 94,640 | |||||||||
Tier 1 common risk-based ratio (non-GAAP) | F/G | 11.6 | % | 11.4 | % | 11.2 | % | 11.0 | % | 11.1 | % | |||||||||
BASEL III COMMON EQUITY TIER 1 RATIO (2) | ||||||||||||||||||||
Stockholder's equity (GAAP) | $ | 17,029 | $ | 16,132 | $ | 15,768 | $ | 15,489 | $ | 15,329 | ||||||||||
Non-qualifying goodwill and intangibles (3) | (4,911 | ) | (4,923 | ) | (4,922 | ) | (4,933 | ) | (4,946 | ) | ||||||||||
Adjustments, including all components of accumulated other comprehensive income, disallowed deferred tax assets, threshold deductions and other adjustments | (96 | ) | 61 | 130 | 244 | 291 | ||||||||||||||
Preferred stock (GAAP) | (920 | ) | (442 | ) | (450 | ) | (458 | ) | (466 | ) | ||||||||||
Basel III common equity Tier 1 (non-GAAP) | H | $ | 11,102 | $ | 10,828 | $ | 10,526 | $ | 10,342 | $ | 10,208 | |||||||||
Basel III risk-weighted assets (non-GAAP)(4) | I | $ | 100,904 | $ | 100,566 | $ | 99,483 | $ | 99,739 | $ | 99,048 | |||||||||
Basel III common equity Tier 1 ratio (non-GAAP) | H/I | 11.0 | % | 10.8 | % | 10.6 | % | 10.4 | % | 10.3 | % |
(1) | Annualized |
(2) | Current quarter amounts and the resulting ratio are estimated. |
(3) | Under Basel III, regulatory capital must be reduced by purchased credit card relationship intangible assets. These assets are partially allowed in Basel I capital. |
(4) | Regions continues to develop systems and internal controls to precisely calculate risk-weighted assets as required by Basel III. The amount included above is a reasonable approximation, based on our understanding of the requirements. |
Quarter Ended | |||||||||||||||||||
($ amounts in millions, except per share data) | 6/30/2014 | 3/31/2014 | 12/31/2013 | 9/30/2013 | 6/30/2013 | ||||||||||||||
Non-interest expense: | |||||||||||||||||||
Professional and legal fees | $ | (3 | ) | $ | (19 | ) | $ | 24 | $ | 3 | $ | 1 | |||||||
Other | 1 | — | 1 | (2 | ) | 1 | |||||||||||||
Total non-interest expense | (2 | ) | (19 | ) | 25 | 1 | 2 | ||||||||||||
Income (loss) from discontinued operations before income tax | 2 | 19 | (25 | ) | (1 | ) | (2 | ) | |||||||||||
Income tax expense (benefit) | 1 | 7 | (11 | ) | (1 | ) | (1 | ) | |||||||||||
Income (loss) from discontinued operations, net of tax | $ | 1 | $ | 12 | $ | (14 | ) | $ | — | $ | (1 | ) | |||||||
Weighted-average shares outstanding—during quarter (1): | |||||||||||||||||||
Basic | 1,378 | 1,378 | 1,378 | 1,388 | 1,401 | ||||||||||||||
Diluted | 1,390 | 1,390 | 1,378 | 1,388 | 1,401 | ||||||||||||||
Earnings (loss) per common share from discontinued operations: | |||||||||||||||||||
Basic | $ | 0.00 | $ | 0.01 | $ | (0.01 | ) | $ | (0.00 | ) | $ | (0.00 | ) | ||||||
Diluted | $ | 0.00 | $ | 0.01 | $ | (0.01 | ) | $ | (0.00 | ) | $ | (0.00 | ) |
(1) | In a quarter where there is a loss from discontinued operations, basic and diluted weighted-average common shares outstanding are the same. |
• | Current and future economic and market conditions in the United States generally or in the communities we serve, including the effects of declines in property values, unemployment rates and potential reduction of economic growth. |
• | Possible changes in trade, monetary and fiscal policies of, and other activities undertaken by, governments, agencies, central banks and similar organizations. |
• | The effects of a possible downgrade in the U.S. government’s sovereign credit rating or outlook. |
• | Possible changes in market interest rates. |
• | Any impairment of our goodwill or other intangibles, or any adjustment of valuation allowances on our deferred tax assets due to adverse changes in the economic environment, declining operations of the reporting unit, or other factors. |
• | Possible changes in the creditworthiness of customers and the possible impairment of the collectability of loans. |
• | Changes in the speed of loan prepayments, loan origination and sale volumes, charge-offs, loan loss provisions or actual loan losses. |
• | Possible acceleration of prepayments on mortgage-backed securities due to low interest rates, and the related acceleration of premium amortization on those securities. |
• | Our ability to effectively compete with other financial services companies, some of whom possess greater financial resources than we do and are subject to different regulatory standards than we are. |
• | Loss of customer checking and savings account deposits as customers pursue other, higher-yield investments. |
• | Our ability to develop and gain acceptance from current and prospective customers for new products and services in a timely manner. |
• | Changes in laws and regulations affecting our businesses, including changes in the enforcement and interpretation of such laws and regulations by applicable governmental and self-regulatory agencies. |
• | Our ability to obtain regulatory approval (as part of the CCAR process or otherwise) to take certain capital actions, including paying dividends and any plans to increase common stock dividends, repurchase common stock under current or future programs, or issue or redeem preferred stock or other regulatory capital instruments. |
• | Our ability to comply with applicable capital and liquidity requirements (including the finalized Basel III capital standards), including our ability to generate capital internally or raise capital on favorable terms. |
• | The costs and other 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. |
• | Any adverse change to our ability to collect interchange fees in a profitable manner, whether such change is the result of regulation, legislation or other governmental action. |
• | 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 business. |
• | Possible changes in consumer and business spending and saving habits and the related effect on our ability to increase assets and to attract deposits. |
• | Any inaccurate or incomplete information provided to us by our customers or counterparties. |
• | Inability of our framework to manage risks associated with our business, including operational risk and credit risk. |
• | The inability of our internal disclosure controls and procedures to prevent, detect or mitigate any material errors or fraudulent acts. |
• | The effects of geopolitical instability, including wars, conflicts and terrorist attacks. |
• | The effects of man-made and natural disasters, including fires, floods, droughts, tornadoes, hurricanes and environmental damage. |
• | Our ability to keep pace with technological changes. |
• | Our ability to identify and address cyber-security risks such as data security breaches, “denial of service” attacks, “hacking” and identity theft. |
• | Possible downgrades in our credit ratings or outlook. |
• | The effects of problems encountered by other financial institutions that adversely affect us or the banking industry generally. |
• | The effects of the failure of any component of our business infrastructure which is provided by a third party. |
• | Our ability to receive dividends from our subsidiaries. |
• | Changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board or other regulatory agencies. |
• | The effects of any damage to our reputation resulting from developments related to any of the items identified above. |
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