Investor Deck
August - September, 2017
Exhibit 99.1
Table of contents
Topic Page #
Profile 3-8
Net Interest Income and Asset Sensitivity 9-14
Fee Income and Efficiencies 15-20
Balance Sheet 21-27
Credit 28-35
Capital and Liquidity 36-40
Long-term Targets and 2017 Expectations 41-43
Non-GAAP and Forward Looking Statements 44-50
2
Profile
3
Regions aims to be the premier regional financial institution in America
Line of Business Coverage
Alabama – 206 Louisiana – 99
Arkansas – 77 Mississippi – 119
Florida – 320 Missouri – 55
Georgia – 120 North Carolina – 6
Illinois – 46 South Carolina – 25
Indiana – 51 Tennessee – 211
Iowa – 8 Texas – 72
Kentucky – 11
Ranked 16th Nationally in Total Deposits(2)
Corporate Banking
Business Capital
Capital Markets
Dealer Finance
Equipment Finance
Government/Institutional
Specialized Industry
Institutional Services
Insurance
Private Wealth
Real Estate Corporate Banking
Commercial Banking
•
•
•
•
•
•
•
•
•
•
•
•
Branch Locations by State (1)
Our banking franchise
Birmingham, Alabama
(1) Full Service branches as of 6/30/2017
(2) Source: SNL Financial as of 06/30/2016
4
Strength of our markets
5
Market Rank in Core States
78% of total deposits are in our core states
Alabama - Mississippi - Florida
Louisiana - Tennessee - Arkansas
78%
High Market Share, High Growth Markets
Source: SNL Financial
As of 6/30/2016 FDIC summary
6
Strength of our markets - our 15 state footprint
6 1. Source: Bureau of Labor Statistics through March 2017; Data pulled May 2, 20172. Source: Auto Alliance; Data ; Data pulled May 2, 2017
3. Source: Automotive News Light Vehicle Production by state for 2016
4. Source: Based on Total Domestic Shipping Tonnage by state; U.S. Army Corps of Engineers, as of 2015
5. Bureau of Economic Analysis; non-durable goods is as a percent of the non-durable good subcomponent of gdp, as of 2015
Of all new jobs
created in the US
since 2009 were
in our footprint(1)
Of all US
automotive
employment is in
our footprint(2)
Of all US light vehicle
production is within
our footprint(3)
Of all US port trade
tonnage(4) traveling
through ports in our
footprint
Of non-durable goods
manufacturing occurs
in our footprint(5)
Of the total US GDP is
within our footprint(5)
61%
50%
36%
43%
44%
58%
Regions receives top honors
7
Strategic initiatives
8
Net Interest
Income and Asset
Sensitivity
9
Improving net interest income(1) and net
interest margin
Net Interest Income and Other Financing Income (FTE)
Net Interest Margin (RF)
Net Interest Margin (Peer Median)
2Q16 3Q16 4Q16 1Q17 2Q17
$869
$856
$874 $881
$904
3.15%
3.06%
3.16%
3.25%
3.32%
3.01%
2.97%
3.04%
3.11%
3.22%
• Net interest income(1) (FTE) increased $23 million
or 3%, and the net interest margin increased 7 bps
◦ Both margin and income benefited from
higher interest rates and favorable credit-
related interest recoveries
◦ One extra day in the quarter benefited net
interest income(1) (FTE) by ~$5 million and
negatively impacted net interest margin by
~ 2 bps
• NIM continues to outperform and is 10 bps above
the peer median at 2Q17
• Expect continued growth in net interest income(1)
and expect net interest margin to be stable to up
modestly
($ in millions)
10
Net interest income(1) and net interest margin
(1) Net interest income and other financing income
(2) Source: SNL Financial; Peer median includes BBT, CFG, CMA, FHN,
FITB, HBAN, HBHC, KEY, MTB, PNC, SNV, STI, USB, ZION
2Q17 Results and Outlook
2017 Guidance - Net interest income(1)
growth of 3%-5%
(2)
Deposits
91%
Borrowings
7%
Other
2%
IB Checking,
Money Market
& Savings
56%
Non-Interest
Bearing
Checking
37%
Time
7%
Interest rate risk exposure
(as of June 30, 2017)
• Naturally asset sensitive balance sheet
poised to benefit from rising interest
rates
• 48% of loans are floating rate,
including loan hedges(1)
• $33B of net contractual floating
rate exposure(1)(2)(3)
• Middle and long-term sensitivity
primarily driven by execution of
fixed-rate lending strategies and
reinvestment of fixed-rate
securities; diminished impact from
premium amortization unless rate
levels decline substantially
• Predominantly funded (91%) by
deposit franchise, comprised
mostly of smaller account,
consumer balances; 44% is fixed
rate (non-interest bearing or time)
• Loan hedges(1) used at the margin to
protect earnings under low rates, while
allowing for NII to expand as rates rise
• Deposit betas were roughly 54% through
the last cycle and 10% so far this cycle(4),
both at the lower end of peers
Portfolio Compositions
11
1. Including balance sheet hedges ($7.4B receive fixed loan swaps, $1.85B received fixed debt swaps)
2. ARM mortgage loans are included as floating rate loans
3. Excluding deposits, which are primarily management priced
4. Last rising rate cycle measured from 2Q04 – 2Q07; current rising rate cycle measured from 3Q15 – 2Q17
Contractual Floating Rate Exposure(1)(2)(3)
Loans
64%
Securities
20%
Other
16%
$125B
Assets Liabilities
$108B
Floating
50%
Fixed
50%
Wholesale Borrowings(1)
$7B$98B
Deposits
Floating
48%
Fixed
52%
Loans(1)(2)
$80B
($ in billions)
Interest rate risk assumptions
(as of June 30, 2017)
Standard Interest Rate Risk Scenario Assumptions
12
1. Growth expectations exclude the impact of third-party indirect-vehicle portfolio
2. Impacts of stresses to standard shock scenario are applied independently; not cumulative
3. Including balance sheet hedges ($7.4B receive fixed loan swaps, $1.85B received fixed debt swaps)
Assumption Sensitivity Analysis (2)(3)
($ in millions)
$57
$8
$28
$3
2Q16 3Q16 4Q16 1Q17 2Q17
18 18 18 19 19
17
$35
17
$35
18
$36
17
$36
17
$36
Interest Bearing Deposits
by Customer Type(1)
($ in billions)
Non-Interest Bearing Deposits
by Customer Type(1)
($ in billions)
Other
Segment
Deposit advantage
Deposits by Customer Type(1)
(Retail vs. Business)
• Retail deposits consist of consumer and private wealth
accounts and represent 67% of total deposits
• Business deposits consist of corporate, institutional and
other accounts and represent 33% of total deposits
• 37% of total average 2Q17 deposits are non-interest
bearing deposits
• Approximately 44% of our consumer low-cost deposit
dollars have been customers for over 10 years
• Deposit MSA stratification
◦ ~50% of deposits <1M people
◦ ~35% of deposits <500K people
2Q16 3Q16 4Q16 1Q17 2Q17
44 44 45 46 45
18
$62
19
$63
17
$62
16
$62
16
$61
13
Consumer
Segment
Private
Wealth*
Corporate
Segment
Institutional
Trust*
$1
* Private Wealth and Institutional Trust deposits are combined into the Wealth Management Segment.
(1) Average Balances
2Q17, ($ in billions)
Deposit composition and pricing
(as of June 30, 2017)
• Regions' predominantly deposit funded balance sheet, which includes an attractive mix of low cost deposits, provides for
a competitive funding advantage against the peer set
◦ 91% of liability funding is comprised of deposits, the highest in the peer group
◦ 34% of liability funding is in non-interest bearing accounts, the third highest in the peer group
• This advantage is evidenced in the current rising rate cycle through Regions' 10% deposit beta to date versus the peer
median of 14%
Interest bearing deposit betas Deposit funding composition
Peers include: BBT, CFG, CMA, FHN, FITB, HBAN, HBHC, KEY, MTB, PNC, SNV, STI, USB, ZION14
Peer median = 14.2%
Peer median = 4.5b
ps
Peer median = 86%
Peer median = 26%
Fee Income and
Efficiencies
15
Capital markets
Mortgage
income
Other
Wealth
management
income
Card and ATM
fees
Service charges
on deposit
accounts
Selected items
2Q16 3Q16 4Q16 1Q17 2Q17
38 42 31 32 38
46 46 43 41 40
68 78
59 56 60
103
107
103 109 108
99
105
103 104 104
166
166
173 168
$510
169
6
$526
55
$599
10
$522
6
$525
Creating sustainable franchise value
(1) Non-GAAP; see appendix for reconciliation
($ in millions)
16
Non-interest income
• Non-interest income increased $15 million or 3%;
includes the recognition of a $5 million deferred gain
associated with the sale of affordable housing
residential mortgage loans in 4Q16 (which is adjusted)
and negative impact of operating lease impairment
charges of $7 million in 2Q17 and $5 million in 1Q17
(which are not adjusted)
• Adjusted non-interest income(1) increased $9 million or
2%
◦ Capital markets income increased $6 million
due to increased M&A activity and fees from
placement of permanent financing for real
estate customers
◦ Bank-owned life insurance income, within
other non-interest income, increased $3
million due to higher claim benefits
◦ Mortgage income remained relatively stable;
purchased rights to service $2.7 billion of
mortgage loans in 2Q17
2017 Guidance - Adjusted non-interest
income growth of 1%-3%
2Q17 Results and Outlook
(1)
Fee revenue by Segment
Consumer
$287
Wealth
$109
Corporate
$118
Diversified fee income
Note: Excludes Other Segment information of $11mm in 2Q17
($ in millions)
17
• Service charges are expected to increase through second half of 2017
consistent with growth in checking accounts and households
• Card and ATM fee growth is expected to continue consistent with
growth in active cards and increased transactions
• Mortgage income expected to hold up in spite of lower refinancing
volume due to predominance of purchase volume, expanded home
loan direct channel, and support from recent servicing purchases
Consumer
Wealth
• Growth in investment management and trust fees offset by modest
declines in insurance and investment services income
◦ Wealth management relationships increased 3% QoQ
◦ Assets under management increased 4% QoQ
• Growth from prior insurance lift-outs and increases in the number of
investment advisors are expected to drive additional growth
Corporate
• QoQ growth in capital markets driven primarily by fees generated
from the the placement of permanent financing for real estate
customers and M&A advisory services
• Capital markets income is expected to improve throughout the
remainder of the year driven by M&A advisory services, loan trading,
CMBS, and syndications
Investing in fee income growth initiatives
18
2015-2016
• GreenSky
• Fundation
• CMBS origination
• Regions.com powered by Avant
• Mortgage servicing rights acquisitions
• Financial consultants
• Retail bankers
• Insurance lift-outs and acquisitions
• M&A advisory
◦ BlackArch acquisition
• Multi-family debt placements
• Affordable housing
◦ First Sterling acquisition
• Treasury platform
2017-2018
• Additional point-of-sale opportunities
• Expansion of mortgage home loan direct
channel
• Additional mortgage servicing rights
acquisitions
• Loan sales & trading
• Fixed income sales & trading
• Multi-family debt placements
• Grow affordable housing
• Enhanced treasury management platform
• Insurance acquisitions
• De novo branch additions
• Digital loan offers
• Streamlined digital account opening
solutions
• Additional retail bankers
• Integration of artificial intelligence and
personalization to improve customer
experience
Non-interest expenses
Prudently managing expenses
2Q16 3Q16 4Q16 1Q17 2Q17
889 912 877 872 899
26
$915
22
$934
22
$899
5
$877 10
$909
(1) Non-GAAP; see appendix for reconciliation
($ in millions)
Selected Items(1)Adjusted Non-Interest Expense(1)
19
• Expenses increased $32 million or 4%; adjusted
expenses(1) increased $27 million or 3%
◦ Salaries and Benefits increased $19 million and
included full quarter impact of merit increases
and $10 million pension settlement charge
(which is not adjusted)
◦ Professional, legal and regulatory increased $6
million due to an increase in legal settlement
expense
◦ Furniture & equipment expense increased $5
million associated with capital investment
projects and technology initiatives
• Adjusted efficiency ratio(1) increased 50 bps to
63.2% and included the pension settlement
charge (included in NIE) and operating lease
impairment charge (included in NIR); these
charges negatively impacted the ratio by 100 bps
2Q17 Results and Outlook
2017 Guidance - Adjusted non-interest
expenses 0%-1%; full year efficiency ratio
~62%
Focus on efficiency remains firmly intact
20
Operational
Efficiencies
Branch and Real Estate
Optimization
Third-Party
Discretionary and Other
• Staffing levels decreased
approximately 1,300 or 5% since
4Q15
• Universal Banker deployed in all
branches allowing for the migration
of non-cash transactions away from
the teller line
• Six Sigma deployed to review and
optimize business processes
throughout the organization and has
resulted in numerous efficiency and
cost saving opportunities
• Certain organizational units have
been realigned to better achieve
efficiencies
• Realignment of incentive programs
• Total square footage has declined
by over 5% since 4Q15
• Consolidated or announced plans
to consolidate 160 branches
since 4Q15, accelerating our
original commitment to
consolidate at least 150 branches
by year end 2018
• Ongoing efforts to evaluate
additional opportunities to
consolidate branches and
optimize square footage
• Eliminated or reduced office
space by consolidating corporate
locations into high volume
workspaces
• Renegotiation or cancellation of
third party agreements
• Curtailment of discretionary
expenses (i.e. travel and
entertainment, conferences,
etc.)
Balance Sheet
21
Average loans and leases
2Q16 3Q16 4Q16 1Q17 2Q17
$82.0
$81.3
$80.6
$80.2 $80.1
Prudently managing loans
($ in billions)
22
• Average loan and lease balances remain relatively stable
• Total new and renewed loan production increased 46%
• Average consumer lending portfolio declined $87 million
◦ Continued to experience loan growth in residential
mortgage, home equity loans, indirect-other, and
direct lending categories
◦ Impacted by decision to exit third-party
arrangement within the indirect-vehicle portfolio
and continued declines in home equity lines of
credit
• Average Business lending portfolio increased $19
million
◦ Growth in commercial and industrial partially
offset by declines in owner-occupied commercial
real estate and investor real estate construction
loans
2Q17 Results and Outlook
2017 Guidance - Excluding the impact of the third-party
indirect-vehicle portfolio, full-year average loans are expected
to be flat to slightly down compared to the prior year. Expect
modest loan growth on a sequential linked-quarter basis
throughout the rest of 2017.
Consumer lending
Mortgage $13.6
Indirect-Vehicles
$2.1
Indirect-Vehicles
Third-Party $1.6
Indirect-Other $1.0
Home Equity $10.5
Credit Card $1.2
Other $1.1
Average consumer loans
($ in billions)
23
• Consumer lending remained relatively flat
◦ Consumer production increased 22%, offset by the
decision to exit a third-party arrangement within the
indirect-vehicle portfolio
▪ Excluding the run-off in the indirect vehicle
portfolio average consumer loans increased
$140 million over 1Q17
◦ Purchased approximately $138 million of unsecured
consumer loans at the end of 2Q17, included in
indirect-other consumer lending portfolio; no impact
on 2Q17 average balances
◦ Average home equity lines of credit continue to
decline faster than growth in home equity loans
• Expect growth in second half of 2017 from residential
mortgage, home equity loans, consumer credit card, indirect-
other and direct consumer categories
◦ Regions' mortgage production is weighted heavily to
purchase, and the contribution from online home loan
direct channel is expected to increase helping to offset
lower refinancing activity
◦ Full-year average decline from third-party indirect
vehicle portfolio expected between $500-$600 million
2Q17 Results and Outlook
2Q16 3Q16 4Q16 1Q17 2Q17
$30.8 $31.1
$31.4 $31.2 $31.1
$31.1B
Average business loans
Business lending
($ in billions)
24
• Business lending remained relatively stable with
continued focus on improving risk-adjusted returns and
reducing exposures
◦ Commercial lending production increased 53%
over 1Q17 while line utilization increased 20bps
and commitments for new loans increased $700
million
◦ Growth in average commercial and industrial loans
driven by new or expanded relationships in
government and institutional banking, asset-based
lending, financial services and the real estate
investment trust portfolios
◦ Growth offset by intentional reduction of exposure
in certain areas
▪ Direct energy decreased 3%, medical office
building decreased 12%
▪ IRE construction loans decreased $41
million due in part to ongoing
diversification efforts
• Expect to maintain the momentum experienced in 2Q17
through the second half of the year; future growth driven
in part by the technology & defense, financial services,
power & utilities and asset-based lending portfolios
2Q17 Results and Outlook
Commercial and
industrial $35.6
CRE Mortgage - OO
$6.6
CRE Construction -
OO $0.4
IRE - Mortgage $4.2
IRE - Construction
$2.2
$49.0B
2Q16 3Q16 4Q16 1Q17 2Q17
$51.1 $50.2 $49.1 $48.9 $49.0
Average deposits by segment
Consumer
Bank
Corporate
Bank
Wealth
Management
Other
2Q16 3Q16 4Q16 1Q17 2Q17
54.7 55.2 55.6 56.2 57.1
27.6 28.3 28.7 28.2 27.6
11.3 10.6 10.2 10.0 9.5
3.9
$97.5
3.8
$97.9
4.0
$98.5
3.6
$98.0
3.3
$97.5
Average deposits by type
Solid deposit mix
Low-cost
deposits
Time deposits
+ Other
2Q16 3Q16 4Q16 1Q17 2Q17
90.2 90.5 91.0 90.8 90.5
7.3
$97.5
7.4
$97.9
7.5
$98.5
7.2
$98.0
7.0
$97.5
($ in billions)
25
($ in billions)
• Average deposits decreased $478 million
• Average Consumer deposits increased $890
million or 2%, reflecting the strength of the retail
franchise
• Average Corporate deposits decreased $581
million or 2% driven by seasonal decline in public
funds deposits
• Average Wealth Management deposits decreased
$496 million or 5% as a result of ongoing strategic
reductions of certain collateralized deposits
• Average Other deposits declined $291 million or
8% primarily due to declines in average retail
brokered sweep deposits
• Deposit costs remained low at 15 basis points
• Funding costs remained low at 34 basis points
• Expect continued growth in low-cost consumer
deposits will offset the strategic declines in
collateralized and brokered deposits in 2017
2Q17 Results and Outlook
2017 Guidance - Full year average deposits are
expected to be relatively stable with the prior year
Securities portfolio
26
• Portfolio is managed within the construct of the
overall balance sheet and risk management process
• Well constructed and expected to perform well in a
variety of economic environments
• Supportive of both regulatory and market liquidity
objectives
• Selective when purchasing MBS - choose loan
characteristics that offer prepayment protection
while preserving upside in rising rate scenario
• Supplement MBS with bullet like assets such as
Agency & Non-Agency CMBS and Investment Grade
Corporate Bonds
• ~4.2yr duration with relatively modest extension risk
from current levels
Agency/UST 1%
Agency MBS 74%
Agency CMBS 16%
Non-agency CMBS 3%
Corporate Bonds 5%
Other Credit Related 1%
(1) Includes both AFS and HTM securities at 6/30/2017
Securities Portfolio Composition(1)
($ in millions)
$25.4B
Historical Debt Profile
Unsecured Secured (FHLB)
Total Debt as a % of Assets
1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17
3.16
$3.16
2.31
3.06 3.06
3.55
4.15
3.50 3.50 3.50 3.50
3.00
$5.31
4.25
$7.31 5.25
$8.31
4.25
$7.80 4.75
$8.90
2.50
$6.00
4.25
$7.75
2.50
$6.00 3.85
$7.35
2.58%
4.35%
5.85%
6.58%
6.21%
7.04%
4.79%
6.14%
4.81%
5.89%
Balance sheet optimization
• Regions actively manages its debt
profile in response to balance
sheet changes and growth
dynamics
• Actions include tender offers for
unsecured issuances as well as
active management of FHLB
advances
• During 2016, repurchased $649
million of 2.00 percent senior
notes
• At 6/30/17, weighted average
interest rate for FHLB advances
was 1.1 percent and weighted
average of remaining maturities of
0.4 years
27 Note: Balances exclude valuation adjustments on hedged long-term debt and capital lease obligations.
($ in billions)
Credit
28
NPLs and coverage ratio(1)
Criticized (Direct Energy) Criticized (Non-Energy)
2Q16 3Q16 4Q16 1Q17 2Q17
1,078 1,024 971 867 755
2,586
$3,664
2,718
$3,742
2,641
$3,612
2,671
$3,538
2,525
$3,280
Net Charge-Offs (Direct Energy) Net Charge-Offs (Non-Energy)
Net Charge-Offs ratio
2Q16 3Q16 4Q16 1Q17 2Q17
17 6 14 13 18
55
$72
48
$54
69
$83 87
$100
50
$68
0.35%
0.26%
0.41%
0.51%
0.34%
2Q16 3Q16 4Q16 1Q17 2Q17
280 305 311 310 267
745
$1,025
773
$1,078
684
$995
694
$1,004
556
$823
112% 104% 110% 106%
127%
124% 123% 138% 135% 163%
Stable asset quality
• Provision for loan losses was $20 million less than net charge-offs
primarily attributable to reductions in NPLs, criticized and classified
loans across various industries
• Decrease in NPLs driven by broad based improvement in commercial
loans; decrease in criticized business loans driven by declines in energy,
transportation & warehousing, wholesale goods and other industries
• Allowance for loan losses, as a percent of NPLs, was 127%; excluding
direct energy this ratio increased linked quarter from 135%(2) to 163%(2)
• Direct energy charge-offs totaled $18 million for the quarter and
$31 million for the year
($ in millions) ($ in millions)
29
2Q17 Results and Outlook
(1) Excludes loans held for sale
(2) Non-GAAP; see appendix for reconciliation
Net charge-offs and ratio
(2)
Criticized Business Loans
($ in millions)
Coverage excluding Direct Energy
NPLs (Non-Energy) (1)
Coverage Ratio
NPLs (Direct Energy)(1)
30
Significant improvement in asset quality
Net Charge-Offs Non-Performing Loans
4Q
10
4Q
11
4Q
12
4Q
13
4Q
14
4Q
15
4Q
16
$682
$68
$3,160
$823
Net Charge-Offs and NPLs have significantly improved
2Q1
7
• Approximately $250 million of outstanding balances across the REIT and
IRE portfolios relate to shopping malls
• Portfolio exposure to REIT's specializing in enclosed malls consists of a
small number of credits, all of which are investment grade
• IRE portfolio is widely distributed, largest tenants typically include 'basic
needs' anchors
• C&I retail portfolio is also widely distributed; largest categories include:
◦ Motor vehicle & parts dealers ~$450 million outstanding to
~1,100 clients
◦ Building materials, garden equipment & supplies ~$200 million
outstanding to ~700 clients
◦ Non-store retailers ~$170 million outstanding to ~270 clients
◦ Less than $65 million outstanding to clothing & accessories
• CRE-OO portfolio consists primarily of small strip malls and convenience
stores
• ABL portfolio is collateralized primarily by inventory and accounts
receivable
• Generally, well placed retail centers continue to perform well with low
vacancy rates
• Regions has not been impacted by recent big name bankruptcies;
continue to watch the sector closely
• Securities portfolio includes ~$810 million of post-crisis issued AAA rated
CMBS with exposure to retail within the diversified collateral pool;
protected with 34% credit enhancement, and losses expected to be de
minimis in severely adverse scenario; portfolio also includes ~$83 million
in retail related high quality, investment grade corporate bonds
Commercial retail lending overview
Total retail
(1) Does not include $28 million of retail related operating leases.
* Represents the number of clients with loan balances outstanding.31
As of 6/30/17
($ in millions)
Loan
Balances
Total
Commitments
Including
Outstanding
Balances
%
Utilization
$
Criticized
%
Criticized
# of
Clients *
REITs
$1,503 $2,797 54% — — 27
Investor real
estate (IRE) 1,034 1,115 93% 21 2% 356
C&I
1,358 2,480 55% 43 3% 7,204
CRE-OO
662 692 96% 34 5% 1,311
ABL
643 1,735 37% 22 3% 26
Total Retail (1)
$5,200 $8,819 59% $120 2% 8,924
• Total outstandings and commitments
declined primarily due to paydowns and
payoffs
• Allowance for loan and lease losses was
6.9% of direct energy balances at
6/30/17 vs 6.1% at 3/31/17
• No second lien exposure outstanding
within the energy portfolio
• Leveraged loans account for 22% of
energy related balances; the majority are
Exploration & Production and Midstream
• Energy charge-offs are $18 million for
2Q17 and $31 million for 2017 year to
date
• Under a stressed scenario with oil
averaging below $25, incremental losses
could total $100 million over the next 8
quarters
• Utilization rate has remained between
40-60% since 1Q15
• 13% of direct energy loans are on non-
accrual status
• ALLL/NPL excluding direct energy is
163%(1)
Energy lending overview
Total energy
As of 6/30/17 As of 3/31/17
($ in millions)
Loan /
Lease
Balances
Total
Commitments
Including
Outstanding
Balances
%
Utilization
$
Criticized
%
Criticized
Loan /
Lease
Balances
Total
Commitments
Including
Outstanding
Balances
%
Utilization
$
Criticized
%
Criticized
Oilfield services
and supply (OFS) $601 $926 65% $335 56% $647 $1,015 64% $375 58%
Exploration and
production
(E&P) 678 1,261 54% 388 57% 664 1,298 51% 445 67%
Midstream 519 1,188 44% 13 3% 502 1,152 44% 27 5%
Downstream 81 299 27% 16 20 83 278 30% 16 19%
Other 106 287 37% 3 3% 117 256 46% 3 3
Total direct
1,985 3,961 50% 755 38% 2,013 3,999 50% 866 43%
Indirect 544 994 55% 103 19% 514 913 56% 112 22%
Direct and
indirect 2,529 4,955 51% 858 34% 2,527 4,912 51% 978 39%
Operating leases
97 97 — 58 60% 119 119 — 61 51%
Loans held for
sale $1 $1 — $1 100% — — — — —
Total energy $2,627 $5,053 52% $917 35% $2,646 $5,031 53% $1,039 39%
Note: Securities portfolio contained ~$4MM of high quality, investment grade corporate bonds that are energy related at 6/30/17, unchanged from 3/31/17.
A leveraged relationship is defined as senior cash flow leverage of 3x or total cash flow leverage of 4x except for Midstream Energy which is 6x total cash flow
leverage.
(1) Non-GAAP; see appendix for reconciliation
32
Energy lending - Oil Field Services and Exploration
& Production detail
Type As of6/30/17
# of
Clients* Commentary
Marine $395 8 Sector remains under stress. Approximately
45% of marine outstandings are under contract
for remainder of 2017.
Integrated OFS 92 6 Improving conditions for companies servicing
onshore activity. Average utilization remains at
30% indicating clients have ample liquidity.
Compression 50 2 Linked to movement of natural gas. Sector is
more stable and lower risk than other sectors.
Fluid Management 10 2 Improvement in this sector as rig counts have
improved. Exposure is minimal after recent
payoffs.
Pre-drilling / Drilling 54 3 Outlook for onshore drillers is improving.
Offshore drillers remain stressed; however
Regions only has minimal exposure to offshore
drillers.
Total Oil Field Services
(OFS)
601 21
Exploration and
production (E&P)
678 27**
Total OFS and E&P $1,279
• 47% shared national credit (SNC) loans
• 65% utilization rate compared to 64%
in 1Q17
• 83% Non-pass rated (criticized) loans
paying as agreed
E&P Portfolio
*Represents the number of clients that comprise 75% of the loan balances outstanding.
**Represents the number of clients that comprise 90% of the loan balances outstanding.
OFS Portfolio
• Majority of borrowing is senior
secured
• 97% shared national credit (SNC) loans
• 54% utilization rate compared to 51%
in 1Q17
• 84% Non-pass rated (criticized) loans
paying as agreed
($ in millions)
33
Commercial -
Non-Energy,
$2,177
Investor Real
Estate, $123
Consumer Real
Estate Secured,
$1,137
Consumer Non-Real Estate
Secured, $295
Commercial - Energy
(Direct), $417
Loan balances by select states
Texas Louisiana
Note: Intelligence from our customer assistance program (CAP) reveals no noticeable increase in assistance requests in these markets to date.
Commercial - Non-
Energy, $4,399
Investor Real
Estate, $1,122
Consumer Real Estate
Secured, $1,121
Consumer Non-Real Estate
Secured, $987 Commercial - Energy(Direct), $1,037
Investor Real Estate Balances by City
($ in millions)
Office Retail Multi-Family
Single
Family Other Total
Houston $46 $39 $245 $69 $17 $416
Dallas 93 31 154 53 31 362
San
Antonio — 26 51 41 25 143
Other 9 65 91 3 33 201
Total $148 $161 $541 $166 $106 $1,122
Investor Real Estate Balances by City
($ in millions)
Office Retail Multi-Family
Single
Family Other Total
Baton
Rouge $35 $1 $8 $13 $21 $78
New
Orleans 5 5 1 1 6 18
Other 1 5 5 1 15 27
Total $41 $11 $14 $15 $42 $123
$4.1B$8.7B
34
Loan balances by select states
Alabama Mississippi
Commercial - Non-
Energy, $5,069
Investor Real Estate,
$275
Consumer Real
Estate Secured,
$3,586
Consumer Non-Real Estate
Secured, $822
Commercial -
Non-Energy,
$1,445
Investor Real
Estate, $130
Consumer Real
Estate Secured,
$932
Consumer Non-Real Estate
Secured, $347
Commercial -
Energy (Direct),
$38
$2.9B$9.8B
Investor Real Estate Balances by City
($ in millions)
Office Retail Multi-
Family
Single
Family
Other Total
Birmingham $14 $21 $5 $19 $23 $82
Huntsville 82 15 5 3 1 106
Mobile /
Baldwin County 2 15 3 2 11 33
Other 7 10 18 11 8 54
Total $105 $61 $31 $35 $43 $275
Investor Real Estate Balances by City
($ in millions)
Office Retail Multi-Family
Single
Family Other Total
North
Mississippi — — — — $80 $80
Jackson/Other 4 5 19 1 3 32
Gulfport /
Biloxi /
Pascagoula — — 18 — — 18
Total $4 $5 $37 $1 $83 $130
Commercial- Energy
(Direct), $11
35
Capital and
Liquidity
36
Solid liquidity
• Regions has a strong, core funded
balance sheet resulting in a low loan-
to-deposit ratio
• Future debt maturities are manageable
and allow for efficient re-financing
• Regions’ liquidity policy requires that
the holding company maintain at least
18 months coverage of maturities, debt
service and other cash needs
• Management targets 24 months
coverage
• Bank wholesale funding requirements
will be largely dictated by the relative
performance of loan and deposit
growth
(1) Based on ending balances37
Loan-to-deposit ratio(1)
2Q16 3Q16 4Q16 1Q17 2Q17
84% 82% 81% 80% 82%
Strong capital levels
Note: Regions’ CET1 ratio is estimated at 6/30/17. Peer financial data as of 6/30/17 includes BBT, CFG, CMA, FHN, FITB, HBAN, HBHC, KEY, MTB, PNC,
SNV, STI, USB and ZION.
Source: SNL Financial.
38
Basel III Common Equity Tier 1 Ratio
Peer #1
RF
Peer #2
Peer #3
Peer #4
Peer #5
Peer #6
Peer #7
Peer #8
Peer #9
Peer #10
Peer #11
Peer #12
Peer #13
Peer #14
12.3
11.5
11.5
11.2
10.8
10.6
10.3
10.3
10.0
10.0
10.0
9.9
9.8
9.7
9.5
Capital Priorities
Capital Returned to Shareholders
Dividends Share Repurchases
2014 2015 2016 6/30/17 YTD
247 304 318
162
256
$503
623
$927
839
$1,157
275
$437
Robust capital returns
(1) Includes fees associated with open market share repurchases.39
• Remain committed to target
CET1 ratio of 9.5 percent
based on current risk in our
balance sheet
• Target dividend payout ratio
between 30 and 40 percent
over time
• Sufficient capital to support
organic growth, strategic
investments, and a robust
return to shareholders
• 3Q17 share repurchases
through August 3rd totaled
$144.9 million
($ in millions)
(1)
Solid total shareholder returns
Source: Bloomberg
Note: Total shareholder return data as of 8/3/2017
Peers include BBT, CFG (Publicly traded as of 2015), CMA, FITB, HBAN, HBHC, KEY, MTB, PNC, SNV, STI, USB, FHN and ZION
40
1 Year
RF
Peer #1
Peer #2
Peer #3
Peer #4
Peer #5
Peer #6
Peer #7
Peer #8
Peer #9
Peer #10
Peer #11
Peer #12
Peer #13
Peer #14
68.2
67.0
65.3
63.2
59.6
59.0
56.8
46.7
45.1
44.1
43.9
40.3
32.6
27.9
22.7
3 Year
Peer #1
Peer #2
Peer #3
Peer #4
Peer #5
RF
Peer #6
Peer #7
Peer #8
Peer #9
Peer #10
Peer #11
Peer #12
Peer #13
Peer #14
94.6
70.3
64.4
64.3
60.0
59.6
55.7
55.4
46.0
45.9
45.3
44.3
42.1
36.7
—
5 Year
Peer #1
Peer #2
Peer #3
Peer #4
Peer #5
Peer #6
RF
Peer #7
Peer #8
Peer #9
Peer #10
Peer #11
Peer #12
Peer #13
Peer #14
240.4
161.9
159.2
148.2
143.4
143.4
135.0
134.4
130.7
117.1
111.1
76.9
75.8
73.7
—
Long-term Targets
and 2017
Expectations
41
2017 expectations
42
• Excluding the impact of the third-party indirect-vehicle portfolio, full-year average loans
are expected to be flat to slightly down compared to the prior year*
• Full year average deposits are expected to be relatively stable with the prior year*
• Net interest income and other financing income growth of 3%-5%*
• Adjusted non-interest income growth of 1%-3%*
• Adjusted expenses 0%-1%; full year efficiency ratio ~62%
• Adjusted operating leverage of 2%-4%
• Full year effective tax rate expected in the 30%-31% range**
• Net charge-offs of 35-50 bps
Note: The reconciliation with respect to these forward-looking non-GAAP measures is expected to be consistent with the actual non-GAAP
reconciliations included in the attached appendix.
* Expectations are unchanged compared to 1Q17, but have been revised since originally announced in 4Q16.
** Expectation revised in 2Q17.
Executing on our strategy
43 Note: The reconciliation with respect to forward-looking non-GAAP measures is expected to be consistent with the actual non-GAAP reconciliations
included in the attached appendix.
(1) Non-GAAP; see appendix for reconciliation
Non-GAAP and
Forward Looking
Statements
44
Non-GAAP reconciliation: Non-interest income,
non-interest expense and efficiency ratio
NM - Not Meaningful
The table below presents computations of the efficiency ratio (non-GAAP), which is a measure of productivity, generally calculated as non-interest expense divided by total revenue. Management uses this ratio to monitor
performance and believes this measure provides 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 other financing 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 efficiency ratio. Regions believes that the exclusion of these adjustments 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. The table on the following page 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.
45
Quarter Ended
($ amounts in millions) 6/30/2017 3/31/2017 12/31/2016 9/30/2016 6/30/2016 2Q17 vs. 1Q17 2Q17 vs. 2Q16
ADJUSTED EFFICIENCY AND FEE INCOME RATIOS, ADJUSTED NON-
INTEREST INCOME/EXPENSE-CONTINUING OPERATIONS
Non-interest expense (GAAP) A $ 909 $ 877 $ 899 $ 934 $ 915 $ 32 3.6 % $ (6) (0.7)%
Adjustments:
Professional, legal and regulatory expenses (1) — — — — (3) — NM 3 (100.0)%
Branch consolidation, property and equipment charges (7) (1) (17) (5) (22) (6) NM 15 (68.2)%
Loss on early extinguishment of debt — — — (14) — — NM — NM
Salary and employee benefits—severance charges (3) (4) (5) (3) (1) 1 (25.0)% (2) 200.0 %
Adjusted non-interest expense (non-GAAP) B $ 899 $ 872 $ 877 $ 912 $ 889 $ 27 3.1 % $ 10 1.1 %
Net interest income and other financing income (GAAP) $ 882 $ 859 $ 853 $ 835 $ 848 $ 23 2.7 % $ 34 4.0 %
Taxable-equivalent adjustment 22 22 21 21 21 — NM 1 4.8 %
Net interest income and other financing income, taxable-equivalent
basis C $ 904 $ 881 $ 874 $ 856 $ 869 $ 23 2.6 % $ 35 4.0 %
Non-interest income (GAAP) D $ 525 $ 510 $ 522 $ 599 $ 526 $ 15 2.9 % $ (1) (0.2)%
Adjustments:
Securities (gains) losses, net (1) — (5) — (6) (1) NM 5 (83.3)%
Insurance proceeds (1) — — — (47) — — NM — NM
Leveraged lease termination gains, net (1) — — — (8) — — NM — NM
Gain on sale of affordable housing residential mortgage loans (1) (5) — (5) — — (5) NM (5) NM
Adjusted non-interest income (non-GAAP) E $ 519 $ 510 $ 512 $ 544 $ 520 $ 9 1.8 % $ (1) (0.2)%
Total revenue, taxable-equivalent basis C+D=F $ 1,429 $ 1,391 $ 1,396 $ 1,455 $ 1,395 $ 38 2.7 % $ 34 2.4 %
Adjusted total revenue, taxable-equivalent basis (non-GAAP) C+E=G $ 1,423 $ 1,391 $ 1,386 $ 1,400 $ 1,389 $ 32 2.3 % $ 34 2.4 %
Efficiency ratio (GAAP) A/F 63.6% 63.1% 64.4% 64.2% 65.6%
Adjusted efficiency ratio (non-GAAP) B/G 63.2% 62.7% 63.2% 65.3% 64.0%
Fee income ratio (GAAP) D/F 36.8% 36.7% 37.4% 41.2% 37.7%
Adjusted fee income ratio (non-GAAP) E/G 36.5% 36.6% 36.9% 38.8% 37.5%
Non-GAAP reconciliation: Non-interest income,
non-interest expense and efficiency ratio
NM - Not Meaningful
The table below presents computations of the efficiency ratio (non-GAAP), which is a measure of productivity, generally calculated as non-interest expense divided by total revenue. Management uses this ratio to monitor
performance and believes this measure provides 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 other financing 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 efficiency ratio. Regions believes that the exclusion of these adjustments 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. The table on the following page 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.
46
The table below presents computations of the adjusted allowance for loan losses to non-performing loans, excluding loans held for sale ratio (non-GAAP), generally calculated as adjusted allowance for
loan losses divided by adjusted total non-accrual loans, excluding loans held for sale. The allowance for loan losses (GAAP) is presented excluding the portion of the allowance related to direct energy
loans to arrive at the adjusted allowance for loan losses (non-GAAP). Total non-accrual loans (GAAP) is presented excluding direct energy non-accrual loans to arrive at adjusted total non-accrual loans,
excluding loans held for sale (non-GAAP), which is the denominator for the allowance for loan losses to non-accrual loans ratio. Management believes that excluding the portion of the allowance for
loan losses related to direct energy loans and the direct energy non-accrual loans will assist investors in analyzing the Company's credit quality performance absent the volatility that has been
experienced by energy businesses. Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied, are not audited, and should not be considered in isolation, or as a
substitute for analyses of results as reported under GAAP.
Non-GAAP reconciliation: Adjusted allowance for loan losses to
non-performing loans, excluding loans held for sale
47
As of
($ amounts in millions) 6/30/2017 3/31/2017 12/31/2016 9/30/2016 6/30/2016
Allowance for loan losses (GAAP) A $ 1,041 $ 1,061 $ 1,091 $ 1,126 $ 1,151
Less: Direct energy portion 136 123 147 176 226
Adjusted allowance for loan losses (non-GAAP) B $ 905 $ 938 $ 944 $ 950 $ 925
Total non-accrual loans (GAAP) C $ 823 $ 1,004 $ 995 $ 1,078 $ 1,025
Less: Direct energy non-accrual loans 267 310 311 305 280
Adjusted total non-accrual loans (non-GAAP) D $ 556 $ 694 $ 684 $ 773 $ 745
Allowance for loan losses to non-performing loans, excluding loans held for sale (GAAP) A/C 1.27x 1.06x 1.10x 1.04x 1.12x
Adjusted allowance for loan losses to non-performing loans, excluding loans held for sale
(non-GAAP) B/D 1.63x 1.35x 1.38x 1.23x 1.24x
Non-GAAP reconciliation: YTD return on average tangible stockholders'
equity and earnings per common share from continuing operations
The tables below present computations of "adjusted net income from continuing operations available to common shareholders," "adjusted return on average
tangible common stockholders' equity" and "adjusted earnings per common share from continuing operations," which exclude certain significant items that are
included in the financial results presented in accordance with GAAP. Management believes these measures provide a meaningful base for period-to-period
comparisons, and 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. These
non-GAAP measures also provide analysts and investors certain metrics regarding the progress of the Company in comparison to long-term expected results
previously communicated.
(1) The total net adjustments to non-interest expense is the summation of the adjustments previously shown on page 26.
(2) The total net adjustments to non-interest income is the summation of the adjustments previously shown on page 26.
(3) The computation of the income tax impact for adjusted items is based on 38.5%, comprised of the statutory federal rate of 35%, adjusted for applicable state income taxes, net of the related federal tax benefit. The tax
adjustment also includes the tax impact from leveraged lease termination gains.
(4) On a continuing operations basis.
48
Forward-looking statements
This presentation may include forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. The terms “Regions,” the “Company,” “we,” “us” and “our” mean Regions Financial Corporation, a Delaware
corporation, and its subsidiaries when or where appropriate. The words “anticipates,” “intends,” “plans,” “seeks,” “believes,” “estimates,” “expects,” “targets,” “projects,” “outlook,” “forecast,” “will,” “may,” “could,” “should,” “can,” and similar
expressions often signify forward-looking statements. 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, including the effects of declines in property values, unemployment rates 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.
• The effects of a possible downgrade in the U.S. government’s sovereign credit rating or outlook, which could result in risks to us and general economic conditions that we are not able to predict.
• 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.
• 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 and leases, including operating leases.
• Changes in the speed of loan prepayments, loan origination and sale volumes, charge-offs, loan loss provisions or actual loan losses where our allowance for loan 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.
• 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, which could increase our funding costs.
• Our inability to develop and gain acceptance from current and prospective customers for new products and services in a timely manner could have a negative impact on our revenue.
• The effects of any developments, changes or actions relating to any litigation or regulatory proceedings brought against us or any of our subsidiaries.
• Changes in laws and regulations affecting our businesses, such as the Dodd-Frank Act and other 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, 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 ability to obtain a regulatory non-objection (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 redeem preferred stock or other regulatory capital instruments, may impact our ability to return capital to stockholders and market perceptions of us.
• 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 and
intensity of such tests and requirements.
• Our ability to comply with applicable capital and liquidity requirements (including, among other things, the Basel III capital standards and the LCR rule), including our ability to generate capital internally or raise capital on favorable
terms, and if we fail to meet requirements, our financial condition could be negatively impacted.
• The Basel III framework calls for additional risk-based capital surcharges for globally systemically important banks. Although we are not subject to such surcharges, it is possible that in the future we may become subject to similar
surcharges.
• 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 business.
• Our ability to execute on our strategic and operational plans, including our ability to fully realize the financial and non-financial benefits relating to our strategic initiatives.
• The success of our marketing efforts in attracting and retaining customers.
49
• 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 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.
• The risks and uncertainties related to our acquisition and integration of other companies.
• Inability of our framework to manage risks associated with our business 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.
• 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 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, which may negatively affect our operations and/or our loan portfolios and increase our cost
of conducting business.
• 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 inability to keep pace with technological changes could result in losing business to competitors.
• Our ability to identify and address cyber-security risks such as data security breaches, malware, “denial of service” attacks, “hacking” and identity theft, a failure of which could disrupt our business 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 realize our adjusted efficiency ratio target as part of our expense management initiatives.
• Significant disruption of, or loss of public confidence in, the Internet and services and devices used to access the Internet could affect the ability of our customers to access their accounts and conduct banking transactions.
• Possible downgrades in our credit ratings or outlook could 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 could affect our liquidity and ability to pay dividends to stockholders.
• Changes in accounting policies or procedures as may be required by the FASB or other regulatory agencies could materially affect how we report our financial results.
• Other risks identified from time to time in reports that we file with the SEC.
• The effects of any damage to our reputation resulting from developments related to any of the items identified above.
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 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.
See also the reports filed with the Securities and Exchange Commission, including the discussion under the “Risk Factors” section of Regions’ Annual Report on Form 10-K for the year ended December 31, 2016 as filed with the
Securities and Exchange Commission and available on its website at www.sec.gov.
Forward-looking statements continued
50
®
51