Exhibit

EX-99.2 3 rf-2019331xexhibitx992.htm EXHIBIT 99.2 Exhibit

Exhibit 99.2

Regions Financial Corporation and Subsidiaries

Financial Supplement

First Quarter 2019

Regions Financial Corporation and Subsidiaries

Financial Supplement to First Quarter 2019 Earnings Release

Table of Contents




		Page

Financial Highlights		1

Selected Ratios and Other Information		2

Consolidated Statements of Income		3

Consolidated Average Daily Balances and Yield / Rate Analysis		4

Pre-Tax Pre-Provision Income ("PPI") and Adjusted PPI		6

Non-Interest Income, Mortgage Income and Wealth Management Income		7

Non-Interest Expense		8

Reconciliation to GAAP Financial Measures
Adjusted Efficiency Ratios, Adjusted Fee Income Ratios, Adjusted Non-Interest Income / Expense, Adjusted Operating Leverage Ratios, and Return Ratios		9

Credit Quality
Allowance for Credit Losses, Net Charge-Offs and Related Ratios, Adjusted Net Charge-offs and Related Ratios		11
Non-Accrual Loans (excludes loans held for sale), Criticized and Classified Loans - Business Services, and Home Equity Lines of Credit - Future Principal Payment Resets		14
Early and Late Stage Delinquencies		15
Troubled Debt Restructurings		16

Consolidated Balance Sheets		17

Loans		18

Deposits		20

Reconciliation to GAAP Financial Measures
Tangible Common Ratios and Capital		22

Forward-Looking Statements		23

Regions Financial Corporation and Subsidiaries

Financial Supplement to First Quarter 2019 Earnings Release

Financial Highlights



	Quarter Ended
($ amounts in millions, except per share data)	3/31/2019			12/31/2018			9/30/2018			6/30/2018			3/31/2018
Earnings Summary
Interest income and other financing income - taxable equivalent	$	1,196		$	1,171		$	1,125		$	1,088		$	1,060
Interest expense - taxable equivalent	223			188			156			136			122
Depreciation expense on operating lease assets	12			12			14			14			16
Net interest income and other financing income - taxable equivalent - continuing operations	961			971			955			938			922
Less: Taxable-equivalent adjustment	13			13			13			12			13
Net interest income and other financing income	948			958			942			926			909
Provision (credit) for loan losses	91			95			84			60			(10		)
Net interest income and other financing income after provision (credit) for loan losses	857			863			858			866			919
Non-interest income	502			481			519			512			507
Non-interest expense	860			853			922			911			884
Income from continuing operations before income taxes	499			491			455			467			542
Income tax expense	105			85			85			89			128
Income from continuing operations	394			406			370			378			414
Income (loss) from discontinued operations before income taxes	—			—			274			(3		)	—
Income tax expense (benefit)	—			—			80			—			—
Income (loss) from discontinued operations, net of tax	—			—			194			(3		)	—
Net income	$	394		$	406		$	564		$	375		$	414
Income from continuing operations available to common shareholders	$	378		$	390		$	354		$	362		$	398
Net income available to common shareholders	$	378		$	390		$	548		$	359		$	398

Earnings per common share from continuing operations - basic	$	0.37		$	0.38		$	0.33		$	0.32		$	0.35
Earnings per common share from continuing operations - diluted	0.37			0.37			0.32			0.32			0.35
Earnings per common share - basic	0.37			0.38			0.50			0.32			0.35
Earnings per common share - diluted	0.37			0.37			0.50			0.32			0.35

Balance Sheet Summary
At quarter-end—Consolidated
Loans, net of unearned income	$	84,430		$	83,152		$	81,821		$	80,478		$	79,822
Allowance for loan losses	(853		)	(840		)	(840		)	(838		)	(840		)
Assets	128,802			125,688			124,578			124,557			122,913
Deposits	95,720			94,491			93,255			95,283			96,990
Long-term borrowings - Federal Home Loan Bank advances	6,902			6,902			5,703			5,153			2,603
Long-term borrowings - Other	6,055			5,522			5,475			4,737			5,346
Stockholders' equity	15,512			15,090			14,770			15,777			15,866
Average balances—Consolidated
Loans, net of unearned income	$	83,725		$	81,873		$	81,022		$	79,957		$	79,891
Assets	125,543			123,538			123,526			122,960			123,494
Deposits	94,170			93,159			93,942			95,253			95,428
Long-term borrowings - Federal Home Loan Bank advances	5,876			5,704			5,286			3,711			4,424
Long-term borrowings - Other	5,877			5,478			5,143			5,031			5,107
Stockholders' equity	15,192			14,605			15,401			15,682			15,848

Regions Financial Corporation and Subsidiaries

Financial Supplement to First Quarter 2019 Earnings Release

Selected Ratios and Other Information



	As of and for Quarter Ended
	3/31/2019			12/31/2018			9/30/2018			6/30/2018			3/31/2018
Return on average assets* ⁽¹⁾	1.27		%	1.30		%	1.19		%	1.23		%	1.36		%
Return on average common stockholders' equity*	10.66		%	11.22		%	14.91		%	9.68		%	10.75		%
Return on average common stockholders' equity from continuing operations*	10.66		%	11.23		%	9.62		%	9.77		%	10.75		%
Return on average tangible common stockholders’ equity (non-GAAP)* ⁽²⁾	16.09		%	17.32		%	22.36		%	14.54		%	16.08		%
Return on average tangible common stockholders’ equity from continuing operations (non-GAAP)* ⁽²⁾	16.09		%	17.33		%	14.42		%	14.67		%	16.08		%
Efficiency ratio from continuing operations	58.8		%	58.7		%	62.6		%	62.7		%	61.9		%
Adjusted efficiency ratio from continuing operations (non-GAAP) ⁽²⁾	58.3		%	58.1		%	58.1		%	60.4		%	60.5		%
Common book value per share	$	14.50		$	13.92		$	13.22		$	13.42		$	13.40
Tangible common book value per share (non-GAAP) ⁽²⁾	$	9.72		$	9.19		$	8.62		$	8.97		$	8.98
Tangible common stockholders’ equity to tangible assets (non-GAAP) ⁽²⁾	7.95		%	7.80		%	7.60		%	8.36		%	8.54		%
Basel III common equity ⁽³⁾	$	10,435		$	10,371		$	10,481		$	11,234		$	11,206
Basel III common equity Tier 1 ratio ⁽³⁾	9.8		%	9.9		%	10.2		%	11.0		%	11.1		%
Tier 1 capital ratio ⁽³⁾	10.6		%	10.7		%	11.0		%	11.8		%	11.9		%
Total risk-based capital ratio ⁽³⁾	12.3		%	12.5		%	12.8		%	13.6		%	13.7		%
Leverage ratio ⁽³⁾	9.3		%	9.3		%	9.4		%	10.1		%	10.1		%
Effective tax rate	21.0		%	17.4		%	18.7		%	19.2		%	23.6		%
Allowance for loan losses as a percentage of loans, net of unearned income	1.01		%	1.01		%	1.03		%	1.04		%	1.05		%
Allowance for loan losses to non-performing loans, excluding loans held for sale	163		%	169		%	156		%	141		%	140		%
Net interest margin (FTE)*	3.53		%	3.55		%	3.50		%	3.49		%	3.46		%
Loans, net of unearned income, to total deposits	88.2		%	88.0		%	87.8		%	84.5		%	82.3		%
Net charge-offs as a percentage of average loans*	0.38		%	0.46		%	0.40		%	0.32		%	0.42		%
Adjusted net charge-offs as a percentage of average loans (non-GAAP)* ⁽²⁾	0.38		%	0.46		%	0.40		%	0.32		%	0.40		%
Non-accrual loans, excluding loans held for sale, as a percentage of loans	0.62		%	0.60		%	0.66		%	0.74		%	0.75		%
Non-performing assets (excluding loans 90 days past due) as a percentage of loans, foreclosed properties, non-marketable investments and non-performing loans held for sale	0.71		%	0.68		%	0.76		%	0.83		%	0.85		%
Non-performing assets (including loans 90 days past due) as a percentage of loans, foreclosed properties, non-marketable investments and non-performing loans held for sale ⁽⁴⁾	0.88		%	0.85		%	0.93		%	0.99		%	1.02		%
Associate headcount—full-time equivalent from continuing operations	20,056			19,969			19,869			20,326			20,666
ATMs	1,985			1,952			1,938			1,956			1,919
Branch Statistics
Full service	1,399			1,396			1,394			1,414			1,410
Drive-through/transaction service only	57			58			61			62			63
Total branch outlets	1,456			1,454			1,455			1,476			1,473

*Annualized


(1)	Calculated by dividing income from continuing operations by consolidated average assets.


(2)	See reconciliation of GAAP to non-GAAP Financial Measures on pages 6, 9, 10, 13, 19, and 22.


(3)	Current quarter Basel III common equity as well as the Basel III common equity Tier 1, Tier 1 capital, Total risk-based capital and Leverage ratios are estimated.


(4)	Excludes guaranteed residential first mortgages that are 90+ days past due and still accruing. Refer to the footnotes on page 15 for amounts related to these loans.

Regions Financial Corporation and Subsidiaries

Financial Supplement to First Quarter 2019 Earnings Release

Consolidated Statements of Income (unaudited)



	Quarter Ended
($ amounts in millions, except per share data)	3/31/2019			12/31/2018		9/30/2018		6/30/2018			3/31/2018
Interest income, including other financing income on:
Loans, including fees	$	981		$	962	$	919	$	881		$	851
Debt securities—taxable	165			160		155		156			154
Loans held for sale	3			4		4		4			3
Other earning assets	19			17		17		17			19
Operating lease assets	15			15		17		18			20
Total interest income, including other financing income	1,183			1,158		1,112		1,076			1,047
Interest expense on:
Deposits	108			80		64		57			49
Short-term borrowings	13			15		8		6			1
Long-term borrowings	102			93		84		73			72
Total interest expense	223			188		156		136			122
Depreciation expense on operating lease assets	12			12		14		14			16
Total interest expense and depreciation expense on operating lease assets	235			200		170		150			138
Net interest income and other financing income	948			958		942		926			909
Provision (credit) for loan losses	91			95		84		60			(10		)
Net interest income and other financing income after provision (credit) for loan losses	857			863		858		866			919
Non-interest income:
Service charges on deposit accounts	175			185		179		175			171
Card and ATM fees	109			111		111		112			104
Wealth management income	76			77		77		77			75
Capital markets income	42			50		45		57			50
Mortgage income	27			30		32		37			38
Securities gains (losses), net	(7		)	—		—		1			—
Other	80			28		75		53			69
Total non-interest income	502			481		519		512			507
Non-interest expense:
Salaries and employee benefits	478			468		473		511			495
Net occupancy expense	82			86		82		84			83
Furniture and equipment expense	76			82		81		81			81
Other	224			217		286		235			225
Total non-interest expense	860			853		922		911			884
Income from continuing operations before income taxes	499			491		455		467			542
Income tax expense	105			85		85		89			128
Income from continuing operations	394			406		370		378			414
Discontinued operations ⁽¹⁾:
Income (loss) from discontinued operations before income taxes	—			—		274		(3		)	—
Income tax expense (benefit)	—			—		80		—			—
Income (loss) from discontinued operations, net of tax	—			—		194		(3		)	—
Net income	$	394		$	406	$	564	$	375		$	414
Net income from continuing operations available to common shareholders	$	378		$	390	$	354	$	362		$	398
Net income available to common shareholders	$	378		$	390	$	548	$	359		$	398
Weighted-average shares outstanding—during quarter:
Basic	1,019			1,035		1,086		1,119			1,127
Diluted	1,028			1,043		1,095		1,128			1,141
Actual shares outstanding—end of quarter	1,013			1,025		1,055		1,114			1,123
Earnings per common share from continuing operations:
Basic	$	0.37		$	0.38	$	0.33	$	0.32		$	0.35
Diluted	$	0.37		$	0.37	$	0.32	$	0.32		$	0.35
Earnings (loss) per common share from discontinued operations ⁽¹⁾⁽²⁾:
Basic	$	0.00		$	0.00	$	0.18	$	(0.00	)	$	0.00
Diluted	$	0.00		$	0.00	$	0.18	$	(0.00	)	$	0.00
Earnings per common share:
Basic	$	0.37		$	0.38	$	0.50	$	0.32		$	0.35
Diluted	$	0.37		$	0.37	$	0.50	$	0.32		$	0.35
Taxable-equivalent net interest income and other financing income	$	961		$	971	$	956	$	938		$	922

________

(1)

On April 4, 2018, Regions entered into a stock purchase agreement to sell Regions Insurance Group, Inc to BB&T Insurance Holdings. The transaction closed on July 2, 2018. The transaction generated an after-tax gain of $196 million. On January 11, 2012, Regions entered into a stock purchase agreement to sell Morgan Keegan and Company and related affiliates to Raymond James Financial Inc. The sale closed on April 2, 2012.


(2)	In a period where there is a loss from discontinued operations, basic weighted-average common shares outstanding are used to determine both basic and diluted earnings per share.

Regions Financial Corporation and Subsidiaries

Financial Supplement to First Quarter 2019 Earnings Release

Consolidated Average Daily Balances and Yield/Rate Analysis



	Quarter Ended
	3/31/2019							12/31/2018
($ amounts in millions; yields on taxable-equivalent basis)	Average Balance			Income/ Expense		Yield/ Rate		Average Balance			Income/ Expense		Yield/ Rate
Assets
Earning assets:
Debt securities—taxable	$	24,251		$	165	2.72	%	$	23,891		$	160	2.68	%
Loans held for sale	302			3		3.63		413			4		4.25
Loans, net of unearned income:
Commercial and industrial	39,999			445		4.49		38,111			430		4.46
Commercial real estate mortgage—owner-occupied	5,560			65		4.65		5,847			69		4.64
Commercial real estate construction—owner-occupied	409			5		4.72		349			4		4.73
Commercial investor real estate mortgage	4,729			54		4.58		4,275			48		4.39
Commercial investor real estate construction	1,821			25		5.60		1,815			25		5.31
Residential first mortgage	14,203			144		4.04		14,230			142		4.01
Home equity	9,135			111		4.89		9,335			111		4.75
Indirect—vehicles	2,924			24		3.38		3,109			27		3.40
Indirect—other consumer	2,429			54		8.85		2,287			51		8.77
Consumer credit card	1,304			43		13.41		1,298			43		13.06
Other consumer	1,212			24		8.12		1,217			25		8.12
Total loans, net of unearned income	83,725			994		4.78		81,873			975		4.72
Investment in operating leases, net	364			3		3.41		383			3		3.36
Other earning assets	1,849			19		4.29		2,015			17		3.26
Total earning assets	110,491			1,184		4.31		108,575			1,159		4.24
Allowance for loan losses	(843		)					(839		)
Cash and due from banks	1,893							1,957
Other non-earning assets	14,002							13,845
	$	125,543						$	123,538
Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Savings	$	8,852		4		0.17		$	8,827		3		0.15
Interest-bearing checking	19,309			33		0.69		18,295			24		0.52
Money market	23,989			40		0.68		23,850			31		0.51
Time deposits	8,124			31		1.56		7,018			22		1.24
Total interest-bearing deposits ⁽¹⁾	60,274			108		0.73		57,990			80		0.54
Federal funds purchased and securities sold under agreements to repurchase	343			2		2.41		241			2		2.27
Other short-term borrowings	1,735			11		2.55		2,227			13		2.38
Long-term borrowings	11,753			102		3.47		11,182			93		3.28
Total interest-bearing liabilities	74,105			223		1.22		71,640			188		1.04
Non-interest-bearing deposits ⁽¹⁾	33,896			—		—		35,169			—		—
Total funding sources	108,001			223		0.83		106,809			188		0.69
Net interest spread						3.09							3.20
Other liabilities	2,350							2,124
Stockholders’ equity	15,192							14,605
	$	125,543						$	123,538
Net interest income and other financing income/margin FTE basis				$	961	3.53	%				$	971	3.55	%

_______


(1)	Total deposit costs may be calculated by dividing total interest expense on deposits by the sum of interest-bearing deposits and non-interest bearing deposits. The rates for total deposit costs equal 0.46% and 0.34% for the quarters ended March 31, 2019 and December 31, 2018.

Regions Financial Corporation and Subsidiaries

Financial Supplement to First Quarter 2019 Earnings Release

Consolidated Average Daily Balances and Yield/Rate Analysis (continued)



	Quarter Ended
	9/30/2018							6/30/2018							3/31/2018
($ 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
Earning assets:
Federal funds sold and securities purchased under agreements to resell	$	—		$	—	—	%	$	—		$	—	—	%	$	1		$	—	—	%
Debt securities—taxable	24,198			156		2.56		24,386			156		2.56		24,588			154		2.52
Loans held for sale	386			4		4.14		388			4		4.21		359			3		3.21
Loans, net of unearned income:
Commercial and industrial	37,410			402		4.26		36,874			385		4.17		36,464			368		4.07
Commercial real estate mortgage—owner-occupied	6,000			71		4.61		6,017			71		4.67		6,117			70		4.58
Commercial real estate construction—owner-occupied	311			4		4.84		298			3		4.79		318			4		4.67
Commercial investor real estate mortgage	4,083			44		4.25		3,724			39		4.12		3,883			38		3.92
Commercial investor real estate construction	1,809			24		5.06		1,867			22		4.83		1,837			21		4.49
Residential first mortgage	14,162			141		3.96		13,980			137		3.93		13,977			135		3.86
Home equity	9,543			110		4.61		9,792			109		4.46		10,041			108		4.31
Indirect—vehicles	3,190			27		3.33		3,260			26		3.23		3,309			26		3.18
Indirect—other consumer	2,042			44		8.61		1,743			38		8.68		1,531			33		8.76
Consumer credit card	1,271			41		12.85		1,245			39		12.50		1,257			38		12.33
Other consumer	1,201			24		8.12		1,157			24		8.09		1,157			23		8.16
Total loans, net of unearned income	81,022			932		4.56		79,957			893		4.46		79,891			864		4.35
Investment in operating leases, net	410			3		3.33		439			4		3.59		472			4		2.82
Other earning assets	2,440			17		2.87		2,558			17		2.60		2,853			19		2.71
Total earning assets	108,456			1,112		4.07		107,728			1,074		3.98		108,164			1,044		3.88
Allowance for loan losses	(834		)					(848		)					(933		)
Cash and due from banks	2,036							1,953							1,951
Other non-earning assets	13,868							14,127							14,312
	$	123,526						$	122,960						$	123,494
Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Savings	$	8,928		4		0.15		$	8,981		3		0.15		$	8,615		4		0.18
Interest-bearing checking	18,924			21		0.44		19,534			18		0.38		19,935			16		0.32
Money market	24,046			22		0.37		24,235			19		0.30		24,601			14		0.24
Time deposits	6,630			17		1.06		6,692			17		0.98		6,813			15		0.91
Total interest-bearing deposits ⁽¹⁾	58,528			64		0.44		59,442			57		0.38		59,964			49		0.33
Federal funds purchased and securities sold under agreements to repurchase	154			—		—		41			1		1.83		103			—		—
Other short-term borrowings	1,480			8		2.07		1,161			5		1.90		156			1		1.46
Long-term borrowings	10,429			84		3.14		8,742			73		3.35		9,531			72		3.00
Total interest-bearing liabilities	70,591			156		0.88		69,386			136		0.79		69,754			122		0.71
Non-interest-bearing deposits ⁽¹⁾	35,414			—		—		35,811			—		—		35,464			—		—
Total funding sources	106,005			156		0.58		105,197			136		0.52		105,218			122		0.46
Net interest spread						3.19							3.19							3.17
Other liabilities	2,120							2,081							2,428
Stockholders’ equity	15,401							15,682							15,848
	$	123,526						$	122,960						$	123,494
Net interest income and other financing income/margin FTE basis				$	956	3.50	%				$	938	3.49	%				$	922	3.46	%

_______


(1)	Total deposit costs may be calculated by dividing total interest expense on deposits by the sum of interest-bearing deposits and non-interest bearing deposits. The rates for total deposit costs equal 0.27% for the quarter ended September 30, 2018, 0.24% for the quarter ended June 30, 2018 and 0.21% for the quarter ended March 31, 2018.

Regions Financial Corporation and Subsidiaries

Financial Supplement to First Quarter 2019 Earnings Release

Pre-Tax Pre-Provision Income ("PPI") and Adjusted PPI (non-GAAP)

The Pre-Tax Pre-Provision Income tables below present computations of pre-tax pre-provision income from continuing operations excluding certain adjustments (non-GAAP). Regions believes that the presentation of PPI and the exclusion of certain items from PPI provides a meaningful base for period-to-period comparisons, which management believes will assist investors in analyzing the operating results of the Company and predicting future performance. These non-GAAP financial measures are also used by management to assess the performance of Regions’ business. It is possible that the activities related to the adjustments may recur; however, management does not consider the activities related to the adjustments to be indications of ongoing operations. Regions believes that presentation of these non-GAAP financial measures will permit investors to assess the performance of the Company on the same basis as that applied by management. Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied and are not audited. Although these non-GAAP financial measures are frequently used by stakeholders in the evaluation of a company, they have limitations as analytical tools, and should not be considered in isolation, or as a substitute for analyses of results as reported under GAAP. In particular, a measure of income that excludes certain adjustments does not represent the amount that effectively accrues directly to stockholders.



	Quarter Ended
($ amounts in millions)	3/31/2019				12/31/2018			9/30/2018			6/30/2018			3/31/2018			1Q19 vs. 4Q18					1Q19 vs. 1Q18
Net income from continuing operations available to common shareholders (GAAP)	$	378			$	390		$	354		$	362		$	398		$	(12	)	(3.1	)%	$	(20	)	(5.0	)%
Preferred dividends (GAAP)	16				16			16			16			16			—			—	%	—			—	%
Income tax expense (GAAP)	105				85			85			89			128			20			23.5	%	(23		)	(18.0	)%
Income from continuing operations before income taxes (GAAP)	499				491			455			467			542			8			1.6	%	(43		)	(7.9	)%
Provision (credit) for loan losses (GAAP)	91				95			84			60			(10		)	(4		)	(4.2	)%	101			NM
Pre-tax pre-provision income from continuing operations (non-GAAP)	590				586			539			527			532			4			0.7	%	58			10.9	%
Other adjustments:
Gain on sale of affordable housing residential mortgage loans ⁽¹⁾	(8		)	—	—		—	—			—			—			(8		)	NM		(8		)	NM
Securities (gains) losses, net	7			.	—			—			(1		)	—			7			NM		7			NM
Leveraged lease termination gains	—				—			(4		)	—			(4		)	—			NM		4			(100.0	)%
Salaries and employee benefits—severance charges	2				7			5			34			15			(5		)	(71.4	)%	(13		)	(86.7	)%
Branch consolidation, property and equipment charges	6				3			4			1			3			3			100.0	%	3			100.0	%
Contribution to the Regions Financial Corporation foundation	—				—			60			—			—			—			NM		—			NM
Expenses associated with residential mortgage loan sale	—				—			—			—			4			—			NM		(4		)	(100.0	)%
Total other adjustments	7				10			65			34			18			(3		)	(30.0	)%	(11		)	(61.1	)%
Adjusted pre-tax pre-provision income from continuing operations (non-GAAP)	$	597			$	596		$	604		$	561		$	550		$	1		0.2	%	$	47		8.5	%

______

NM - Not Meaningful

(1) The gain on sale of affordable housing residential mortgage loans in the first quarter of 2019 was the result of the sale of approximately $167 million of loans.

Regions Financial Corporation and Subsidiaries

Financial Supplement to First Quarter 2019 Earnings Release

Non-Interest Income from Continuing Operations



	Quarter Ended
($ amounts in millions)	3/31/2019			12/31/2018			9/30/2018		6/30/2018			3/31/2018			1Q19 vs. 4Q18					1Q19 vs. 1Q18
Service charges on deposit accounts	$	175		$	185		$	179	$	175		$	171		$	(10	)	(5.4	)%	$	4		2.3	%
Card and ATM fees	109			111			111		112			104			(2		)	(1.8	)%	5			4.8	%
Wealth management income	76			77			77		77			75			(1		)	(1.3	)%	1			1.3	%
Capital markets income ⁽¹⁾	42			50			45		57			50			(8		)	(16.0	)%	(8		)	(16.0	)%
Mortgage income	27			30			32		37			38			(3		)	(10.0	)%	(11		)	(28.9	)%
Commercial credit fee income	18			19			18		17			17			(1		)	(5.3	)%	1			5.9	%
Bank-owned life insurance	23			12			18		18			17			11			91.7	%	6			35.3	%
Securities gains (losses), net	(7		)	—			—		1			—			(7		)	NM		(7		)	NM
Market value adjustments on employee benefit assets - defined benefit	5			(7		)	3		(1		)	(1		)	12			(171.4	)%	6			NM
Market value adjustments on employee benefit assets - other ⁽²⁾	(1		)	(8		)	4		(1		)	—			7			(87.5	)%	(1		)	NM
Other	35			12			32		20			36			23			191.7	%	(1		)	(2.8	)%
Total non-interest income from continuing operations	$	502		$	481		$	519	$	512		$	507		$	21		4.4	%	$	(5	)	(1.0	)%

Mortgage Income



	Quarter Ended
($ amounts in millions)	3/1/2019			12/31/2018			9/30/2018			6/30/2018			3/31/2018			1Q19 vs. 4Q18					1Q19 vs. 1Q18
Production and sales	$	19		$	15		$	24		$	23		$	23		$	4		26.7	%	$	(4	)	(17.4	)%
Loan servicing	26			26			23			23			23			—			—	%	3			13.0	%
MSR and related hedge impact:
MSRs fair value increase (decrease) due to change in valuation inputs or assumptions	(28		)	(20		)	6			10			22			(8		)	40.0	%	(50		)	(227.3	)%
MSRs hedge gain (loss)	21			21			(9		)	(6		)	(20		)	—			—	%	41			(205.0	)%
MSRs change due to payment decay	(11		)	(12		)	(12		)	(13		)	(10		)	1			(8.3	)%	(1		)	10.0	%
MSR and related hedge impact	(18		)	(11		)	(15		)	(9		)	(8		)	(7		)	63.6	%	(10		)	125.0	%
Total mortgage income	$	27		$	30		$	32		$	37		$	38		$	(3	)	(10.0	)%	$	(11	)	(28.9	)%

Mortgage production - purchased	$	712		$	813		$	1,012		$	1,179		$	817		$	(101	)	(12.4	)%	$	(105	)	(12.9	)%
Mortgage production - refinanced	209			216			237			249			279			(7		)	(3.2	)%	(70		)	(25.1	)%
Total mortgage production ⁽³⁾	$	921		$	1,029		$	1,249		$	1,428		$	1,096		$	(108	)	(10.5	)%	$	(175	)	(16.0	)%

Wealth Management Income



	Quarter Ended
($ amounts in millions)	3/31/2019		12/31/2018		9/30/2018		6/30/2018		3/31/2018		1Q19 vs. 4Q18					1Q19 vs. 1Q18
Investment management and trust fee income	$	57	$	60	$	59	$	58	$	58	$	(3	)	(5.0	)%	$	(1	)	(1.7	)%
Investment services fee income	19		17		18		19		17		2			11.8	%	2			11.8	%
Total wealth management income ⁽⁴⁾	$	76	$	77	$	77	$	77	$	75	$	(1	)	(1.3	)%	$	1		1.3	%

_________

NM - Not Meaningful


(1)	Capital markets income primarily relates to capital raising activities that includes debt securities underwriting and placement, loan syndication and placement, as well as foreign exchange, derivative and merger and acquisition advisory services.


(2)	These market value adjustments relate to assets held for employee benefits that are offset within salaries and employee benefits expense.


(3)	Total mortgage production represents production during the period, including amounts sold into the secondary market as well as amounts retained in Regions' residential first mortgage loan portfolio.


(4)	Total wealth management income presented above does not include the portion of service charges on deposit accounts and similar smaller dollar amounts that are also attributable to the wealth management segment.

Regions Financial Corporation and Subsidiaries

Financial Supplement to First Quarter 2019 Earnings Release

Non-Interest Expense from Continuing Operations



	Quarter Ended
($ amounts in millions)	3/31/2019			12/31/2018			9/30/2018		6/30/2018			3/31/2018			1Q19 vs. 4Q18					1Q19 vs. 1Q18
Salaries and employee benefits ⁽¹⁾	$	478		$	468		$	473	$	511		$	495		$	10		2.1	%	$	(17	)	(3.4	)%
Net occupancy expense	82			86			82		84			83			(4		)	(4.7	)%	(1		)	(1.2	)%
Furniture and equipment expense	76			82			81		81			81			(6		)	(7.3	)%	(5		)	(6.2	)%
Outside services	45			46			46		48			47			(1		)	(2.2	)%	(2		)	(4.3	)%
Professional, legal and regulatory expenses	20			27			32		33			27			(7		)	(25.9	)%	(7		)	(25.9	)%
Marketing	23			21			20		25			26			2			9.5	%	(3		)	(11.5	)%
FDIC insurance assessments	13			14			22		25			24			(1		)	(7.1	)%	(11		)	(45.8	)%
Credit/checkcard expenses	16			13			18		13			13			3			23.1	%	3			23.1	%
Branch consolidation, property and equipment charges	6			3			4		1			3			3			100.0	%	3			100.0	%
Visa class B shares expense	4			(2		)	—		10			2			6			(300.0	)%	2			100.0	%
Provision (credit) for unfunded credit losses	(1		)	1			2		(1		)	(4		)	(2		)	(200.0	)%	3			(75.0	)%
Other	98			94			142		81			87			4			4.3	%	11			12.6	%
Total non-interest expense from continuing operations	$	860		$	853		$	922	$	911		$	884		$	7		0.8	%	$	(24	)	(2.7	)%

_________


(1)	Salaries and employee benefits expense includes severance charges for each of the quarters. See the amounts for the respective quarters on page 6.

Regions Financial Corporation and Subsidiaries

Financial Supplement to First Quarter 2019 Earnings Release

Reconciliation to GAAP Financial Measures

Adjusted Efficiency Ratios, Adjusted Fee Income Ratios, Adjusted Non-Interest Income/Expense, and Adjusted Operating Leverage Ratios - Continuing Operations

The table below presents computations of the efficiency ratio, which is a measure of productivity, generally calculated as non-interest expense divided by total revenue; and the fee income ratio, generally calculated as non-interest income divided by total revenue. Management uses these ratios to monitor performance and believes these measures provide meaningful information to investors. Non-interest expense (GAAP) is presented excluding certain adjustments to arrive at adjusted non-interest expense (non-GAAP), which is the numerator for the efficiency ratio. Non-interest income (GAAP) is presented excluding certain adjustments to arrive at adjusted non-interest income (non-GAAP), which is the numerator for the fee income ratio. Net interest income and other financing income and non-interest income are added together to arrive at total revenue. Adjustments are made to arrive at adjusted total revenue (non-GAAP). Net interest income 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 fee income and efficiency ratios. 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 below also presents a computation of the operating leverage ratio (non-GAAP) which is the period to period percentage change in adjusted total revenue on a taxable-equivalent basis (non-GAAP) less the percentage change in adjusted non-interest expense (non-GAAP). Regions believes that presentation of these non-GAAP financial measures will permit investors to assess the performance of the Company on the same basis as that applied by management.



		Quarter Ended
($ amounts in millions)		3/31/2019			12/31/2018			9/30/2018			6/30/2018			3/31/2018			1Q19 vs. 4Q18					1Q19 vs. 1Q18
Non-interest expense (GAAP)	A	$	860		$	853		$	922		$	911		$	884		$	7		0.8	%	$	(24	)	(2.7	)%
Adjustments:
Contribution to the Regions Financial Corporation foundation		—			—			(60		)	—			—			—			NM		—			NM
Branch consolidation, property and equipment charges		(6		)	(3		)	(4		)	(1		)	(3		)	(3		)	100.0	%	(3		)	100.0	%
Expenses associated with residential mortgage loan sale		—			—			—			—			(4		)	—			NM		4			NM
Salary and employee benefits—severance charges		(2		)	(7		)	(5		)	(34		)	(15		)	5			(71.4	)%	13			(86.7	)%
Adjusted non-interest expense (non-GAAP)	B	$	852		$	843		$	853		$	876		$	862		$	9		1.1	%	$	(10	)	(1.2	)%
Net interest income and other financing income (GAAP)	C	$	948		$	958		$	942		$	926		$	909		$	(10	)	(1.0	)%	$	39		4.3	%
Taxable-equivalent adjustment		13			13			13			12			13			—			—	%	—			—	%
Net interest income and other financing income, taxable-equivalent basis - continuing operations	D	$	961		$	971		$	955		$	938		$	922		$	(10	)	(1.0	)%	$	39		4.2	%
Non-interest income (GAAP)	E	$	502		$	481		$	519		$	512		$	507		$	21		4.4	%	$	(5	)	(1.0	)%
Adjustments:
Securities (gains) losses, net		7			—			—			(1		)	—			7			NM		7			NM
Leveraged lease termination gains		—			—			(4		)	—			(4		)	—			NM		4			NM
Gain on sale of affordable housing residential mortgage loans ⁽¹⁾		(8		)	—			—			—			—			(8		)	NM		(8		)	NM
Adjusted non-interest income (non-GAAP)	F	$	501		$	481		$	515		$	511		$	503		$	20		4.2	%	$	(2	)	(0.4	)%
Total revenue	C+E=G	$	1,450		$	1,439		$	1,461		$	1,438		$	1,416		$	11		0.8	%	$	34		2.4	%
Adjusted total revenue (non-GAAP)	C+F=H	$	1,449		$	1,439		$	1,457		$	1,437		$	1,412		$	10		0.7	%	$	37		2.6	%
Total revenue, taxable-equivalent basis	D+E=I	$	1,463		$	1,452		$	1,474		$	1,450		$	1,429		$	11		0.8	%	$	34		2.4	%
Adjusted total revenue, taxable-equivalent basis (non-GAAP)	D+F=J	$	1,462		$	1,452		$	1,470		$	1,449		$	1,425		$	10		0.7	%	$	37		2.6	%
Operating leverage ratio (GAAP)	I-A																								5.1	%
Adjusted operating leverage ratio (non-GAAP)	J-B																								3.8	%
Efficiency ratio (GAAP)	A/I	58.8		%	58.7		%	62.6		%	62.7		%	61.9		%
Adjusted efficiency ratio (non-GAAP)	B/J	58.3		%	58.1		%	58.1		%	60.4		%	60.5		%
Fee income ratio (GAAP)	E/I	34.3		%	33.1		%	35.2		%	35.3		%	35.5		%
Adjusted fee income ratio (non-GAAP)	F/J	34.3		%	33.1		%	35.0		%	35.2		%	35.3		%

________

NM - Not Meaningful

(1) See page 6 for more information regarding this adjustment.

Regions Financial Corporation and Subsidiaries

Financial Supplement to First Quarter 2019 Earnings Release

Reconciliation to GAAP Financial Measures

Return Ratios

The tables below provide a calculation of “return on average tangible common stockholders’ equity”. Tangible common stockholders’ equity ratios have become a focus of some investors and management believes they may assist investors in analyzing the capital position of the Company absent the effects of intangible assets and preferred stock. Analysts and banking regulators have assessed Regions’ capital adequacy using the tangible common stockholders’ equity measure. Because tangible common stockholders’ equity is not formally defined by GAAP or prescribed in any amount by federal banking regulations it is currently considered to be a non-GAAP financial measure and other entities may calculate it differently than Regions’ disclosed calculations. Since analysts and banking regulators may assess Regions’ capital adequacy using tangible common stockholders’ equity, management believes that it is useful to provide investors the ability to assess Regions’ capital adequacy on this same basis.



		Quarter Ended
($ amounts in millions)		3/31/2019			12/31/2018			9/30/2018			6/30/2018			3/31/2018
RETURN ON AVERAGE TANGIBLE COMMON STOCKHOLDERS' EQUITY- CONSOLIDATED
Net income available to common shareholders (GAAP)	A	$	378		$	390		$	548		$	359		$	398
Average stockholders' equity (GAAP)		$	15,192		$	14,605		$	15,401		$	15,682		$	15,848
Less:
Average intangible assets (GAAP)		4,940			4,947			4,955			5,066			5,076
Average deferred tax liability related to intangibles (GAAP)		(94		)	(95		)	(97		)	(98		)	(99		)
Average preferred stock (GAAP)		820			820			820			820			820
Average tangible common stockholders' equity (non-GAAP)	B	$	9,526		$	8,933		$	9,723		$	9,894		$	10,051
Return on average tangible common stockholders' equity (non-GAAP)*	A/B	16.09		%	17.32		%	22.36		%	14.54		%	16.08		%



		Quarter Ended
($ amounts in millions)		3/31/2019			12/31/2018			9/30/2018			6/30/2018			3/31/2018
RETURN ON AVERAGE TANGIBLE COMMON STOCKHOLDERS' EQUITY- CONTINUING OPERATIONS
Net income from continuing operations available to common shareholders (GAAP)	C	$	378		$	390		$	354		$	362		$	398
Average stockholders' equity (GAAP)⁽¹⁾		$	15,192		$	14,605		$	15,401		$	15,682		$	15,848
Less:
Average intangible assets (GAAP)⁽¹⁾		4,940			4,947			4,955			5,066			5,076
Average deferred tax liability related to intangibles (GAAP)⁽¹⁾		(94		)	(95		)	(97		)	(98		)	(99		)
Average preferred stock (GAAP)⁽¹⁾		820			820			820			820			820
Average tangible common stockholders' equity (non-GAAP)	D	$	9,526		$	8,933		$	9,723		$	9,894		$	10,051
Return on average tangible common stockholders' equity (non-GAAP)*	C/D	16.09		%	17.33		%	14.42		%	14.67		%	16.08		%

______

*Annualized

(1) Due to the immaterial impact of the discontinued operations, the balance sheet has not been presented on a continuing operations basis.

Regions Financial Corporation and Subsidiaries

Financial Supplement to First Quarter 2019 Earnings Release

Credit Quality



	As of and for Quarter Ended
($ amounts in millions)	3/31/2019			12/31/2018			9/30/2018			6/30/2018			3/31/2018
Components:
Allowance for loan losses (ALL)	$	853		$	840		$	840		$	838		$	840
Reserve for unfunded credit commitments	50			51			50			48			49
Allowance for credit losses (ACL)	$	903		$	891		$	890		$	886		$	889

Provision (credit) for loan losses	$	91		$	95		$	84		$	60		$	(10	)
Provision (credit) for unfunded credit losses	(1		)	1			2			(1		)	(4		)

Loans charged-off:
Commercial and industrial	$	27		$	39		$	37		$	29		$	25
Commercial real estate mortgage—owner-occupied	3			4			4			5			5
Total commercial	30			43			41			34			30
Commercial investor real estate mortgage	—			—			1			—			8
Commercial investor real estate construction	—			—			—			—			—
Total investor real estate	—			—			1			—			8
Residential first mortgage	1			2			3			1			8
Home equity—lines of credit	5			8			6			6			5
Home equity—closed-end	1			2			1			2			1
Indirect—vehicles	9			9			8			9			12
Indirect—other consumer	17			15			11			10			12
Consumer credit card	17			16			14			15			16
Other consumer	22			24			22			18			20
Total consumer	72			76			65			61			74
Total	102			119			107			95			112

Recoveries of loans previously charged-off:
Commercial and industrial	6			9			8			12			8
Commercial real estate mortgage—owner-occupied	3			2			2			2			2
Total commercial	9			11			10			14			10
Commercial investor real estate mortgage	1			1			1			1			2
Commercial investor real estate construction	—			1			1			1			—
Total investor real estate	1			2			2			2			2
Residential first mortgage	1			1			1			3			1
Home equity—lines of credit	3			3			3			4			3
Home equity—closed-end	1			1			1			1			1
Indirect—vehicles	4			3			3			4			5
Indirect—other consumer	—			—			—			—			—
Consumer credit card	2			1			2			2			2
Other consumer	3			2			3			3			4
Total consumer	14			11			13			17			16
Total	24			24			25			33			28

Net loans charged-off:
Commercial and industrial	21			30			29			17			17
Commercial real estate mortgage—owner-occupied	—			2			2			3			3
Total commercial	21			32			31			20			20
Commercial investor real estate mortgage	(1		)	(1		)	—			(1		)	6
Commercial investor real estate construction	—			(1		)	(1		)	(1		)	—
Total investor real estate	(1		)	(2		)	(1		)	(2		)	6
Residential first mortgage	—			1			2			(2		)	7
Home equity—lines of credit	2			5			3			2			2
Home equity—closed-end	—			1			—			1			—
Indirect—vehicles	5			6			5			5			7
Indirect—other consumer	17			15			11			10			12
Consumer credit card	15			15			12			13			14
Other consumer	19			22			19			15			16
Total consumer	58			65			52			44			58
Total	$	78		$	95		$	82		$	62		$	84

Regions Financial Corporation and Subsidiaries

Financial Supplement to First Quarter 2019 Earnings Release



Credit Quality (continued)

	As of and for Quarter Ended
($ amounts in millions)	3/31/2019			12/31/2018			9/30/2018			6/30/2018			3/31/2018
Net loan charge-offs as a % of average loans, annualized:
Commercial and industrial	0.21		%	0.32		%	0.31		%	0.18		%	0.18		%
Commercial real estate mortgage—owner-occupied	0.05		%	0.16		%	0.16		%	0.17		%	0.20		%
Total commercial	0.18		%	0.29		%	0.28		%	0.18		%	0.19		%
Commercial investor real estate mortgage	(0.07		)%	(0.06		)%	(0.04		)%	(0.10		)%	0.65		%
Commercial investor real estate construction	—		%	(0.12		)%	(0.23		)%	(0.25		)%	(0.04		)%
Total investor real estate	(0.05		)%	(0.07		)%	(0.10		)%	(0.15		)%	0.43		%
Residential first mortgage	0.02		%	0.04		%	0.04		%	(0.05		)%	0.21		%
Home equity—lines of credit	0.12		%	0.35		%	0.17		%	0.15		%	0.10		%
Home equity—closed-end	0.09		%	0.10		%	(0.03		)%	0.11		%	0.05		%
Indirect—vehicles	0.69		%	0.71		%	0.62		%	0.66		%	0.83		%
Indirect—other consumer	2.79		%	2.58		%	2.23		%	2.46		%	2.98		%
Consumer credit card	4.66		%	4.16		%	3.97		%	4.22		%	4.49		%
Other consumer	6.13		%	7.23		%	6.26		%	5.08		%	5.86		%
Total consumer	0.75		%	0.80		%	0.65		%	0.58		%	0.75		%
Total	0.38		%	0.46		%	0.40		%	0.32		%	0.42		%
Non-accrual loans, excluding loans held for sale	$	523		$	496		$	539		$	595		$	601
Non-performing loans held for sale	13			10			15			10			8
Non-accrual loans, including loans held for sale	536			506			554			605			609
Foreclosed properties	53			52			58			61			66
Non-marketable investments received in foreclosure	8			8			12			—			—
Non-performing assets (NPAs)	$	597		$	566		$	624		$	666		$	675
Loans past due > 90 days ⁽¹⁾	$	147		$	143		$	137		$	129		$	138
Accruing restructured loans not included in categories above ⁽²⁾	$	479		$	488		$	600		$	590		$	721
Credit Ratios:
ACL/Loans, net	1.07		%	1.07		%	1.09		%	1.10		%	1.11		%
ALL/Loans, net	1.01		%	1.01		%	1.03		%	1.04		%	1.05		%
Allowance for loan losses to non-performing loans, excluding loans held for sale	163		%	169		%	156		%	141		%	140		%
Non-accrual loans, excluding loans held for sale/Loans, net	0.62		%	0.60		%	0.66		%	0.74		%	0.75		%
NPAs (ex. 90+ past due)/Loans, foreclosed properties, non-marketable investments and non-performing loans held for sale	0.71		%	0.68		%	0.76		%	0.83		%	0.85		%
NPAs (inc. 90+ past due)/Loans, foreclosed properties, non-marketable investments and non-performing loans held for sale ⁽¹⁾	0.88		%	0.85		%	0.93		%	0.99		%	1.02		%


(1)	Excludes guaranteed residential first mortgages that are 90+ days past due and still accruing. Refer to the footnotes on page 15 for amounts related to these loans.


(2)	See page 16 for detail of restructured loans.

Regions Financial Corporation and Subsidiaries

Financial Supplement to First Quarter 2019 Earnings Release

Credit Quality (continued)

Adjusted Net Charge-offs and Ratios (non-GAAP)

Select calculations for annualized net charge-offs as a percentage of average loans (GAAP) are presented in the table below. During the first quarter of 2018, Regions made the strategic decision to sell certain primarily performing troubled debt restructured, as well as, certain non-restructured interest-only residential first mortgage loans. These loans were marked down to fair value through net charge-offs. Management believes that excluding the incremental increase to net charge-offs from the affected net charge-off ratios to arrive at an adjusted net charge-off ratio (non-GAAP) will assist investors in analyzing the Company's credit quality performance as well as provide a better basis from which to predict future performance. Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied and are not audited. Although these non-GAAP financial measures are frequently used by stakeholders in the evaluation of a company, they have limitations as analytical tools, and should not be considered in isolation, or as a substitute for analyses of results as reported under GAAP.



		Quarter Ended
($ amounts in millions)		3/31/2019			12/31/2018			9/30/2018			6/30/2018			3/31/2018
Residential first mortgage net charge-offs (GAAP)	A	$	—		$	1		$	2		$	(2	)	$	7
Less: Net charge-offs associated with TDR sale		—			—			—			—			5
Adjusted residential first mortgage net charge-offs (non-GAAP)	B	$	—		$	1		$	2		$	(2	)	$	2
Total consumer net charge-offs (GAAP)	C	$	58		$	65		$	52		$	44		$	58
Less: Net charge-offs associated with TDR sale		—			—			—			—			5
Adjusted total consumer net charge-offs (non-GAAP)	D	$	58		$	65		$	52		$	44		$	53
Total net charge-offs (GAAP)	E	$	78		$	95		$	82		$	62		$	84
Less: Net charge-offs associated with TDR sale		—			—			—			—			5
Adjusted total net charge-offs (non-GAAP)	F	$	78		$	95		$	82		$	62		$	79
Average residential first mortgage loans (GAAP)	G	$	14,203		$	14,230		$	14,162		$	13,980		$	13,977
Add: Average balances of residential first mortgage loans sold		—			—			—			—			90
Average residential first mortgage loans adjusted for residential first mortgage loans sold (non-GAAP)	H	$	14,203		$	14,230		$	14,162		$	13,980		$	14,067
Average total consumer loans (GAAP)	I	$	31,207		$	31,476		$	31,409		$	31,177		$	31,272
Add: Average balances of residential first mortgage loans sold		—			—			—			—			90
Average total consumer loans adjusted for residential first mortgage loans sold (non-GAAP)	J	$	31,207		$	31,476		$	31,409		$	31,177		$	31,362
Average total loans (GAAP)	K	$	83,725		$	81,873		$	81,022		$	79,957		$	79,891
Add: Average balances of residential first mortgage loans sold		—			—			—			—			90
Average total loans adjusted for residential first mortgage loans sold (non-GAAP)	L	$	83,725		$	81,873		$	81,022		$	79,957		$	79,981
Residential first mortgage net charge-off percentage (GAAP)*	A/G	0.02		%	0.04		%	0.04		%	(0.05		)%	0.21		%
Adjusted residential first mortgage net charge-off percentage (non-GAAP)*	B/H	0.02		%	0.04		%	0.04		%	(0.05		)%	0.06		%
Total consumer net charge-off percentage (GAAP)*	C/I	0.75		%	0.80		%	0.65		%	0.58		%	0.75		%
Adjusted total consumer net charge-off percentage (non-GAAP)*	D/J	0.75		%	0.80		%	0.65		%	0.58		%	0.69		%
Total net charge-off percentage (GAAP)*	E/K	0.38		%	0.46		%	0.40		%	0.32		%	0.42		%
Adjusted total net charge-off percentage (non-GAAP)*	F/L	0.38		%	0.46		%	0.40		%	0.32		%	0.40		%

*Annualized

Regions Financial Corporation and Subsidiaries

Financial Supplement to First Quarter 2019 Earnings Release

Non-Accrual Loans (excludes loans held for sale)



	As of
($ amounts in millions)	3/31/2019				12/31/2018				9/30/2018				6/30/2018				3/31/2018
Commercial and industrial	$	336	0.82	%	$	307	0.78	%	$	341	0.90	%	$	384	1.04	%	$	364	0.99	%
Commercial real estate mortgage—owner-occupied	67		1.22	%	67		1.21	%	80		1.36	%	98		1.63	%	102		1.69	%
Commercial real estate construction—owner-occupied	14		3.26	%	8		2.16	%	8		2.41	%	5		1.66	%	5		1.68	%
Total commercial	417		0.89	%	382		0.85	%	429		0.97	%	487		1.12	%	471		1.09	%
Commercial investor real estate mortgage	8		0.16	%	11		0.22	%	2		0.04	%	4		0.10	%	14		0.36	%
Total investor real estate	8		0.12	%	11		0.16	%	2		0.04	%	4		0.06	%	14		0.25	%
Residential first mortgage	34		0.24	%	40		0.28	%	42		0.29	%	38		0.27	%	47		0.34	%
Home equity—lines of credit	53		0.93	%	53		0.90	%	56		0.94	%	55		0.88	%	59		0.93	%
Home equity—closed-end	11		0.32	%	10		0.30	%	10		0.29	%	11		0.32	%	10		0.29	%
Total consumer	98		0.32	%	103		0.33	%	108		0.34	%	104		0.33	%	116		0.37	%
Total non-accrual loans	$	523	0.62	%	$	496	0.60	%	$	539	0.66	%	$	595	0.74	%	$	601	0.75	%

Criticized and Classified Loans—Business Services ⁽¹⁾



	As of
											3/31/2019				3/31/2019
($ amounts in millions)	3/31/2019		12/31/2018		9/30/2018		6/30/2018		3/31/2018		vs. 12/31/2018				vs. 3/31/2018
Accruing classified	$	631	$	590	$	550	$	560	$	813	$	41	6.9	%	$	(182	)	(22.4	)%
Non-accruing classified	425		393		431		491		485		32		8.1	%	(60		)	(12.4	)%
Total classified	1,056		983		981		1,051		1,298		73		7.4	%	(242		)	(18.6	)%

Special mention	1,063		939		1,048		857		925		124		13.2	%	138			14.9	%
Total criticized	$	2,119	$	1,922	$	2,029	$	1,908	$	2,223	$	197	10.2	%	$	(104	)	(4.7	)%


(1)	Business services represents the combined total of commercial and investor real estate loans.

Home Equity Lines of Credit - Future Principal Payment Resets ⁽²⁾



	As of 3/31/2019
($ amounts in millions)	First Lien		% of Total		Second Lien		% of Total		Total
2019	$	45	0.79	%	$	40	0.70	%	$	85
2020	105		1.84	%	74		1.30	%	179
2021	122		2.13	%	106		1.86	%	228
2022	134		2.35	%	125		2.19	%	259
2023	165		2.90	%	151		2.63	%	316
2024-2028	2,314		40.56	%	2,189		38.37	%	4,503
2029-2033	75		1.32	%	58		1.02	%	133
Thereafter	1		0.01	%	1		0.03	%	2
Total	$	2,961	51.90	%	$	2,744	48.10	%	$	5,705

(2)

The balance of Regions' home equity portfolio was $9,014 million at March 31, 2019 consisting of $5,705 million of home equity lines of credit and $3,309 million of closed-end home equity loans. The home equity lines of credit presented in the table above are based on maturity date for lines with a balloon payment and draw period expiration date for lines that convert to a repayment period. The closed-end loans were primarily originated as amortizing loans, and were therefore excluded from the table above.

Regions Financial Corporation and Subsidiaries

Financial Supplement to First Quarter 2019 Earnings Release

Early and Late Stage Delinquencies



Accruing 30-89 Days Past Due Loans	As of
($ amounts in millions)	3/31/2019				12/31/2018				9/30/2018				6/30/2018				3/31/2018
Commercial and industrial	$	35	0.08	%	$	102	0.26	%	$	45	0.12	%	$	18	0.05	%	$	70	0.19	%
Commercial real estate mortgage—owner-occupied	12		0.22	%	19		0.34	%	18		0.31	%	16		0.28	%	28		0.46	%
Commercial real estate construction—owner-occupied	—		—	%	—		—	%	—		—	%	3		0.84	%	—		—	%
Total commercial	47		0.10	%	121		0.27	%	63		0.14	%	37		0.08	%	98		0.23	%
Commercial investor real estate mortgage	1		0.01	%	6		0.12	%	6		0.13	%	6		0.14	%	1		0.02	%
Commercial investor real estate construction	1		0.03	%	—		—	%	—		—	%	—		0.01	%	29		1.61	%
Total investor real estate	2		0.02	%	6		0.09	%	6		0.09	%	6		0.10	%	30		0.54	%
Residential first mortgage—non-guaranteed ⁽¹⁾	88		0.64	%	101		0.73	%	89		0.65	%	82		0.60	%	89		0.66	%
Home equity—lines of credit	50		0.89	%	53		0.90	%	53		0.87	%	55		0.89	%	60		0.95	%
Home equity—closed-end	18		0.55	%	20		0.58	%	24		0.70	%	22		0.62	%	24		0.68	%
Indirect—vehicles	43		1.55	%	51		1.69	%	51		1.64	%	49		1.51	%	49		1.47	%
Indirect—other consumer	20		0.80	%	20		0.85	%	16		0.76	%	11		0.59	%	13		0.78	%
Consumer credit card	19		1.48	%	21		1.58	%	19		1.50	%	16		1.32	%	17		1.33	%
Other consumer	20		1.67	%	20		1.60	%	20		1.62	%	16		1.40	%	15		1.32	%
Total consumer ⁽¹⁾	258		0.85	%	286		0.92	%	272		0.88	%	251		0.82	%	267		0.87	%
Total accruing 30-89 days past due loans ⁽¹⁾	$	307	0.37	%	$	413	0.50	%	$	341	0.42	%	$	294	0.37	%	$	395	0.50	%

Accruing 90+ Days Past Due Loans	As of
($ amounts in millions)	3/31/2019				12/31/2018				9/30/2018				6/30/2018				3/31/2018
Commercial and industrial	$	11	0.03	%	$	8	0.02	%	$	4	0.01	%	$	4	0.01	%	$	5	0.01	%
Commercial real estate mortgage—owner-occupied	1		0.01	%	—		—	%	2		0.02	%	1		0.01	%	1		0.01	%
Total commercial	12		0.02	%	8		0.02	%	6		0.01	%	5		0.01	%	6		0.01	%
Residential first mortgage—non-guaranteed ⁽²⁾	66		0.48	%	66		0.47	%	61		0.44	%	63		0.46	%	69		0.52	%
Home equity—lines of credit	27		0.46	%	24		0.41	%	30		0.50	%	23		0.37	%	23		0.35	%
Home equity—closed-end	10		0.31	%	10		0.29	%	9		0.28	%	8		0.25	%	10		0.29	%
Indirect—vehicles	7		0.26	%	9		0.28	%	9		0.28	%	8		0.24	%	8		0.25	%
Indirect—other consumer	1		0.03	%	1		0.06	%	1		0.03	%	—		—	%	—		—	%
Consumer credit card	20		1.59	%	20		1.48	%	17		1.36	%	17		1.31	%	17		1.40	%
Other consumer	4		0.36	%	5		0.42	%	4		0.32	%	5		0.36	%	5		0.40	%
Total consumer ⁽²⁾	135		0.44	%	135		0.43	%	131		0.42	%	124		0.40	%	132		0.43	%
Total accruing 90+ days past due loans ⁽²⁾	$	147	0.18	%	$	143	0.17	%	$	137	0.17	%	$	129	0.16	%	$	138	0.17	%

Total delinquencies ^{(1) (2)}	$	454	0.54	%	$	556	0.67	%	$	478	0.59	%	$	423	0.53	%	$	533	0.67	%


(1)	Excludes loans that are 100% guaranteed by FHA. Total 30-89 days past due guaranteed loans excluded were $32 million at 3/31/2019, $37 million at 12/31/2018, $36 million at 9/30/2018, $28 million at 6/30/2018, and $31 million at 3/31/2018.


(2)	Excludes loans that are 100% guaranteed by FHA and all guaranteed loans sold to GNMA where Regions has the right but not the obligation to repurchase. Total 90 days or more past due guaranteed loans excluded were $76 million at 3/31/2019, $84 million at 12/31/2018, $83 million at 9/30/2018, $105 million at 6/30/2018, and $127 million at 3/31/2018.

Regions Financial Corporation and Subsidiaries

Financial Supplement to First Quarter 2019 Earnings Release

Troubled Debt Restructurings



	As of
($ amounts in millions)	3/31/2019		12/31/2018		9/30/2018		6/30/2018		3/31/2018
Current:
Commercial	$	103	$	103	$	169	$	157	$	197
Investor real estate	14		13		44		35		54
Residential first mortgage	147		139		143		134		131
Home equity—lines of credit	45		46		47		49		52
Home equity—closed-end	125		133		141		157		169
Consumer credit card	1		1		1		1		1
Other consumer	5		5		6		6		7
Total current	440		440		551		539		611
Accruing 30-89 DPD:
Commercial	3		5		1		1		36
Investor real estate	—		1		5		5		29
Residential first mortgage	26		31		28		31		31
Home equity—lines of credit	1		1		2		2		2
Home equity—closed-end	9		9		13		11		11
Other consumer	—		1		—		1		1
Total accruing 30-89 DPD	39		48		49		51		110
Total accruing and <90 DPD	479		488		600		590		721
Non-accrual or 90+ DPD:
Commercial	220		183		195		178		194
Investor real estate	5		5		—		1		10
Residential first mortgage	37		38		42		44		57
Home equity—lines of credit	4		4		4		5		4
Home equity—closed-end	11		11		11		9		10
Total non-accrual or 90+DPD	277		241		252		237		275
Total TDRs - Loans	$	756	$	729	$	852	$	827	$	996
TDRs - Held For Sale	8		5		6		11		7
Total TDRs	$	764	$	734	$	858	$	838	$	1,003


Total TDRs - Loans by Portfolio
	As of
($ amounts in millions)	3/31/2019		12/31/2018		9/30/2018		6/30/2018		3/31/2018
Total commercial TDRs	$	326	$	291	$	365	$	336	$	427
Total investor real estate TDRs	19		19		49		41		93
Total consumer TDRs	411		419		438		450		476
Total TDRs - Loans	$	756	$	729	$	852	$	827	$	996

Regions Financial Corporation and Subsidiaries

Financial Supplement to First Quarter 2019 Earnings Release

Consolidated Balance Sheets (unaudited)



	As of
($ amounts in millions)	3/31/2019			12/31/2018			9/30/2018			6/30/2018			3/31/2018
Assets:
Cash and due from banks	$	1,666		$	2,018		$	1,911		$	1,844		$	1,766
Interest-bearing deposits in other banks	2,141			1,520			1,584			2,442			1,419
Debt securities held to maturity	1,451			1,482			1,524			1,568			1,611
Debt securities available for sale	23,786			22,729			22,671			22,935			23,085
Loans held for sale	318			304			331			490			452
Loans, net of unearned income	84,430			83,152			81,821			80,478			79,822
Allowance for loan losses	(853		)	(840		)	(840		)	(838		)	(840		)
Net loans	83,577			82,312			80,981			79,640			78,982
Other earning assets	1,617			1,719			1,801			1,672			1,640
Premises and equipment, net	2,026			2,045			2,051			2,050			2,065
Interest receivable	388			375			360			347			328
Goodwill	4,829			4,829			4,829			4,904			4,904
Residential mortgage servicing rights at fair value (MSRs)	386			418			406			362			356
Other identifiable intangible assets, net	108			115			122			156			167
Other assets	6,509			5,822			6,007			6,147			6,138
Total assets	$	128,802		$	125,688		$	124,578		$	124,557		$	122,913
Liabilities and Equity:
Deposits:
Non-interest-bearing	$	34,775		$	35,053		$	35,354		$	36,055		$	36,935
Interest-bearing	60,945			59,438			57,901			59,228			60,055
Total deposits	95,720			94,491			93,255			95,283			96,990
Borrowed funds:
Short-term borrowings:
Other short-term borrowings	1,600			1,600			3,250			1,400			—
Total short-term borrowings	1,600			1,600			3,250			1,400			—
Long-term borrowings	12,957			12,424			11,178			9,890			7,949
Total borrowed funds	14,557			14,024			14,428			11,290			7,949
Other liabilities	3,002			2,083			2,125			2,207			2,108
Total liabilities	113,279			110,598			109,808			108,780			107,047
Equity:
Preferred stock, non-cumulative perpetual	820			820			820			820			820
Common stock	11			11			11			12			12
Additional paid-in capital	13,584			13,766			14,122			15,389			15,639
Retained earnings	3,066			2,828			2,582			2,182			1,923
Treasury stock, at cost	(1,371		)	(1,371		)	(1,371		)	(1,371		)	(1,377		)
Accumulated other comprehensive income (loss), net	(598		)	(964		)	(1,394		)	(1,255		)	(1,151		)
Total stockholders’ equity	15,512			15,090			14,770			15,777			15,866
Noncontrolling interest	11			—			—			—			—
Total equity	15,523			15,090			14,770			15,777			15,886
Total liabilities and equity	$	128,802		$	125,688		$	124,578		$	124,557		$	122,913

Regions Financial Corporation and Subsidiaries

Financial Supplement to First Quarter 2019 Earnings Release

End of Period Loans



	As of
											3/31/2019					3/31/2019
($ amounts in millions)	3/31/2019		12/31/2018		9/30/2018		6/30/2018		3/31/2018		vs 12/31/2018					vs. 3/31/2018
Commercial and industrial ⁽¹⁾	$	40,985	$	39,282	$	38,036	$	37,079	$	36,787	$	1,703		4.3	%	$	4,198		11.4	%
Commercial real estate mortgage—owner-occupied ⁽²⁾	5,522		5,549		5,943		6,006		6,044		(27		)	(0.5	)%	(522		)	(8.6	)%
Commercial real estate construction—owner-occupied	434		384		326		304		306		50			13.0	%	128			41.8	%
Total commercial	46,941		45,215		44,305		43,389		43,137		1,726			3.8	%	3,804			8.8	%
Commercial investor real estate mortgage ⁽²⁾	4,715		4,650		4,205		3,882		3,742		65			1.4	%	973			26.0	%
Commercial investor real estate construction	1,871		1,786		1,838		1,879		1,845		85			4.8	%	26			1.4	%
Total investor real estate	6,586		6,436		6,043		5,761		5,587		150			2.3	%	999			17.9	%
Total business	53,527		51,651		50,348		49,150		48,724		1,876			3.6	%	4,803			9.9	%
Residential first mortgage ⁽³⁾⁽⁴⁾	14,113		14,276		14,220		14,111		13,892		(163		)	(1.1	)%	221			1.6	%
Home equity—lines of credit ⁽⁵⁾	5,705		5,871		5,993		6,165		6,355		(166		)	(2.8	)%	(650		)	(10.2	)%
Home equity—closed-end ⁽⁶⁾	3,309		3,386		3,442		3,514		3,561		(77		)	(2.3	)%	(252		)	(7.1	)%
Indirect—vehicles	2,759		3,053		3,146		3,219		3,310		(294		)	(9.6	)%	(551		)	(16.6	)%
Indirect—other consumer	2,547		2,349		2,179		1,889		1,611		198			8.4	%	936			58.1	%
Consumer credit card	1,274		1,345		1,273		1,264		1,237		(71		)	(5.3	)%	37			3.0	%
Other consumer	1,196		1,221		1,220		1,166		1,132		(25		)	(2.0	)%	64			5.7	%
Total consumer	30,903		31,501		31,473		31,328		31,098		(598		)	(1.9	)%	(195		)	(0.6	)%
Total Loans	$	84,430	$	83,152	$	81,821	$	80,478	$	79,822	$	1,278		1.5	%	$	4,608		5.8	%

_______


(1)	As of December 31, 2018, approximately $263 million of purchasing card balances previously recognized in other assets were reclassified to commercial and industrial loans.


(2)	As of December 31, 2018, approximately $345 million of senior assisted living balances were reclassified from commercial real estate mortgage—owner-occupied to commercial investor real estate mortgage. The reclassification had a negligible impact on fourth quarter 2018 average balances.


(3)	Regions sold $167 million of affordable housing residential mortgage loans during the first quarter of 2019.


(4)	Regions sold $254 million of residential first mortgage loans during the first quarter of 2018. The loans sold consisted primarily of performing troubled debt restructured loans, as well as certain non-restructured interest-only loans.


(5)	The balance of Regions' home equity lines of credit consists of $2,961 million of first lien and $2,744 million of second lien at 3/31/2019.


(6)	The balance of Regions' closed-end home equity loans consists of $3,003 million of first lien and $306 million of second lien at 3/31/2019.



	As of
End of Period Loans by Percentage	3/31/2019		12/31/2018		9/30/2018		6/30/2018		3/31/2018
Commercial and industrial	48.6	%	47.2	%	46.5	%	46.1	%	46.1	%
Commercial real estate mortgage—owner-occupied	6.5	%	6.7	%	7.3	%	7.5	%	7.6	%
Commercial real estate construction—owner-occupied	0.5	%	0.5	%	0.4	%	0.4	%	0.4	%
Total commercial	55.6	%	54.4	%	54.2	%	54.0	%	54.1	%
Commercial investor real estate mortgage	5.6	%	5.6	%	5.1	%	4.8	%	4.7	%
Commercial investor real estate construction	2.2	%	2.1	%	2.2	%	2.3	%	2.3	%
Total investor real estate	7.8	%	7.7	%	7.3	%	7.1	%	7.0	%
Total business	63.4	%	62.1	%	61.5	%	61.1	%	61.1	%
Residential first mortgage	16.7	%	17.2	%	17.4	%	17.5	%	17.4	%
Home equity—lines of credit	6.8	%	7.1	%	7.3	%	7.7	%	8.0	%
Home equity—closed-end	3.9	%	4.1	%	4.2	%	4.4	%	4.5	%
Indirect—vehicles	3.3	%	3.6	%	3.9	%	4.0	%	4.1	%
Indirect—other consumer	3.0	%	2.8	%	2.6	%	2.3	%	2.0	%
Consumer credit card	1.5	%	1.6	%	1.6	%	1.6	%	1.5	%
Other consumer	1.4	%	1.5	%	1.5	%	1.4	%	1.4	%
Total consumer	36.6	%	37.9	%	38.5	%	38.9	%	38.9	%
Total Loans	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%

Regions Financial Corporation and Subsidiaries

Financial Supplement to First Quarter 2019 Earnings Release

Average Balances of Loans



	Average Balances
($ amounts in millions)	1Q19		4Q18		3Q18		2Q18		1Q18		1Q19 vs. 4Q18					1Q19 vs. 1Q18
Commercial and industrial	$	39,999	$	38,111	$	37,410	$	36,874	$	36,464	$	1,888		5.0	%	$	3,535		9.7	%
Commercial real estate mortgage—owner-occupied	5,560		5,847		6,000		6,017		6,117		(287		)	(4.9	)%	(557		)	(9.1	)%
Commercial real estate construction—owner-occupied	409		349		311		298		318		60			17.2	%	91			28.6	%
Total commercial	45,968		44,307		43,721		43,189		42,899		1,661			3.7	%	3,069			7.2	%
Commercial investor real estate mortgage	4,729		4,275		4,083		3,724		3,883		454			10.6	%	846			21.8	%
Commercial investor real estate construction	1,821		1,815		1,809		1,867		1,837		6			0.3	%	(16		)	(0.9	)%
Total investor real estate	6,550		6,090		5,892		5,591		5,720		460			7.6	%	830			14.5	%
Total business	52,518		50,397		49,613		48,780		48,619		2,121			4.2	%	3,899			8.0	%
Residential first mortgage	14,203		14,230		14,162		13,980		13,977		(27		)	(0.2	)%	226			1.6	%
Home equity—lines of credit	5,792		5,924		6,068		6,259		6,465		(132		)	(2.2	)%	(673		)	(10.4	)%
Home equity—closed-end	3,343		3,411		3,475		3,533		3,576		(68		)	(2.0	)%	(233		)	(6.5	)%
Indirect—vehicles	2,924		3,109		3,190		3,260		3,309		(185		)	(6.0	)%	(385		)	(11.6	)%
Indirect—other consumer	2,429		2,287		2,042		1,743		1,531		142			6.2	%	898			58.7	%
Consumer credit card	1,304		1,298		1,271		1,245		1,257		6			0.5	%	47			3.7	%
Other consumer	1,212		1,217		1,201		1,157		1,157		(5		)	(0.4	)%	55			4.8	%
Total consumer	31,207		31,476		31,409		31,177		31,272		(269		)	(0.9	)%	(65		)	(0.2	)%
Total loans	$	83,725	$	81,873	$	81,022	$	79,957	$	79,891	$	1,852		2.3	%	$	3,834		4.8	%

Adjusted Average Balances of Loans (non-GAAP)

Regions believes adjusting total average loans for the impact of the purchasing card reclassification from other assets, the first quarter 2018 residential first mortgage loan sale and the indirect vehicles exit portfolio, provides a meaningful calculation of loan growth rates and presents them on the same basis as that applied by management.



	Average Balances
($ amounts in millions)	1Q19		4Q18		3Q18		2Q18		1Q18		1Q19 vs. 4Q18					1Q19 vs. 1Q18
Commercial and industrial	$	39,999	$	38,111	$	37,410	$	36,874	$	36,464	$	1,888		5.0	%	$	3,535		9.7	%
Add: Purchasing card balances ⁽¹⁾	—		252		239		228		208		(252		)	(100.0	)%	(208		)	(100.0	)%
Adjusted commercial and industrial loans (non-GAAP)	$	39,999	$	38,363	$	37,649	$	37,102	$	36,672	$	1,636		4.3	%	$	3,327		9.1	%
Total commercial loans	$	45,968	$	44,307	$	43,721	$	43,189	$	42,899	$	1,661		3.7	%	$	3,069		7.2	%
Add: Purchasing card balances ⁽¹⁾	—		252		239		228		208		(252		)	(100.0	)%	(208		)	(100.0	)%
Adjusted total commercial loans (non-GAAP)	$	45,968	$	44,559	$	43,960	$	43,417	$	43,107	$	1,409		3.2	%	$	2,861		6.6	%
Total business loans	$	52,518	$	50,397	$	49,613	$	48,780	$	48,619	$	2,121		4.2	%	$	3,899		8.0	%
Add: Purchasing card balances ⁽¹⁾	—		252		239		228		208		(252		)	(100.0	)%	(208		)	(100.0	)%
Adjusted total business loans (non-GAAP)	$	52,518	$	50,649	$	49,852	$	49,008	$	48,827	$	1,869		3.7	%	$	3,691		7.6	%
Total consumer loans	$	31,207	$	31,476	$	31,409	$	31,177	$	31,272	$	(269	)	(0.9	)%	$	(65	)	(0.2	)%
Less: Balances of residential first mortgage loans sold ⁽²⁾	—		—		—		—		164		—			NM		(164		)	(100.0	)%
Less: Indirect—vehicles	2,924		3,109		3,190		3,260		3,309		(185		)	(6.0	)%	(385		)	(11.6	)%
Adjusted total consumer loans (non-GAAP)	$	28,283	$	28,367	$	28,219	$	27,917	$	27,799	$	(84	)	(0.3	)%	$	484		1.7	%
Total loans	$	83,725	$	81,873	$	81,022	$	79,957	$	79,891	$	1,852		2.3	%	$	3,834		4.8	%
Add: Purchasing card balances ⁽¹⁾	—		252		239		228		208		(252		)	(100.0	)%	(208		)	(100.0	)%
Less: Balances of residential first mortgage loans sold ⁽²⁾	—		—		—		—		164		—			NM		(164		)	(100.0	)%
Less: Indirect—vehicles	2,924		3,109		3,190		3,260		3,309		(185		)	(6.0	)%	(385		)	(11.6	)%
Adjusted total loans (non-GAAP)	$	80,801	$	79,016	$	78,071	$	76,925	$	76,626	$	1,785		2.3	%	$	4,175		5.4	%

________


(1)	On December 31, 2018, purchasing cards were reclassified to commercial and industrial loans from other assets.


(2)	Adjustments to average loan balances assume a simple day-weighted average impact for the first quarter of 2018.

Regions Financial Corporation and Subsidiaries

Financial Supplement to First Quarter 2019 Earnings Release

End of Period Deposits



	As of
												3/31/2019					3/31/2019
($ amounts in millions)	3/31/2019		12/31/2018		9/30/2018		6/30/2018		3/31/2018			vs. 12/31/2018					vs. 3/31/2018
Interest-free deposits	$	34,775	$	35,053	$	35,354	$	36,055	$	36,935		$	(278	)	(0.8	)%	$	(2,160	)	(5.8	)%
Interest-bearing checking	19,724		19,175		18,586		19,403		19,916			549			2.9	%	(192		)	(1.0	)%
Savings	9,031		8,788		8,900		8,971		8,983			243			2.8	%	48			0.5	%
Money market—domestic	23,806		24,111		23,896		24,255		24,478			(305		)	(1.3	)%	(672		)	(2.7	)%
Money market—foreign	—		—		—		—		18			—			—	%	(18		)	(100.0	)%
Low-cost deposits	87,336		87,127		86,736		88,684		90,330			209			0.2	%	(2,994		)	(3.3	)%
Time deposits	7,704		7,122		6,499		6,576		6,637			582			8.2	%	1,067			16.1	%
Total Customer Deposits	95,040		94,249		93,235		95,260		96,967			791			0.8	%	(1,927		)	(2.0	)%
Corporate treasury time deposits	680		242		20		23		23			438			181.0	%	657			NM
Total Deposits	$	95,720	$	94,491	$	93,255	$	95,283	$	96,990		$	1,229		1.3	%	$	(1,270	)	(1.3	)%

	As of
												3/31/2019					3/31/2019
($ amounts in millions)	3/31/2019		12/31/2018		9/30/2018		6/30/2018		3/31/2018			vs. 12/31/2018					vs. 3/31/2018
Consumer Bank Segment	$	59,880	$	57,575	$	57,939	$	58,713	$	59,266		$	2,305		4.0	%	$	614		1.0	%
Corporate Bank Segment	26,741		27,748		26,002		26,873		27,569			(1,007		)	(3.6	)%	(828		)	(3.0	)%
Wealth Management Segment	7,994		8,072		8,018		8,334		8,702			(78		)	(1.0	)%	(708		)	(8.1	)%
Other ⁽¹⁾	1,105		1,096		1,296		1,363		1,453			9			0.8	%	(348		)	(24.0	)%
Total Deposits	$	95,720	$	94,491	$	93,255	$	95,283	$	96,990		$	1,229		1.3	%	$	(1,270	)	(1.3	)%

	As of
												3/31/2019					3/31/2019
($ amounts in millions)	3/31/2019		12/31/2018		9/30/2018		6/30/2018		3/31/2018			vs. 12/31/2018					vs. 3/31/2018
Wealth Management - Private Wealth	$	7,089	$	7,204	$	7,035	$	7,248	$	7,581		$	(115	)	(1.6	)%	$	(492	)	(6.5	)%
Wealth Management - Institutional Services	905		868		983		1,086		1,121			37			4.3	%	(216		)	(19.3	)%
Total Wealth Management Segment Deposits	$	7,994	$	8,072	$	8,018	$	8,334	$	8,702		$	(78	)	(1.0	)%	$	(708	)	(8.1	)%

									As of
End of Period Deposits by Percentage									3/31/2019			12/31/2018			9/30/2018		6/30/2018			3/31/2018
Customer Deposits
Interest-free deposits									36.3		%	37.1		%	37.9	%	37.8		%	38.1	%
Interest-bearing checking									20.6		%	20.3		%	19.9	%	20.4		%	20.5	%
Savings									9.4		%	9.3		%	9.6	%	9.4		%	9.3	%
Money market—domestic									24.9		%	25.5		%	25.6	%	25.5		%	25.2	%
Money market—foreign									—		%	—		%	—	%	—		%	—	%
Low-cost deposits									91.2		%	92.2		%	93.0	%	93.1		%	93.1	%
Time deposits									8.1		%	7.5		%	7.0	%	6.9		%	6.9	%
Total Customer Deposits									99.3		%	99.7		%	100.0	%	100.0		%	100.0	%
Corporate treasury time deposits									0.7		%	0.3		%	—	%	—		%	—	%
Total Deposits									100.0		%	100.0		%	100.0	%	100.0		%	100.0	%


(1)	Consists primarily of brokered deposits.

Regions Financial Corporation and Subsidiaries

Financial Supplement to First Quarter 2019 Earnings Release

Average Balances of Deposits



	Average Balances
($ amounts in millions)	1Q19		4Q18		3Q18		2Q18		1Q18		1Q19 vs. 4Q18					1Q19 vs. 1Q18
Interest-free deposits	$	33,896	$	35,169	$	35,414	$	35,811	$	35,464	$	(1,273	)	(3.6	)%	$	(1,568	)	(4.4	)%
Interest-bearing checking	19,309		18,295		18,924		19,534		19,935		1,014			5.5	%	(626		)	(3.1	)%
Savings	8,852		8,827		8,928		8,981		8,615		25			0.3	%	237			2.8	%
Money market—domestic	23,989		23,850		24,046		24,225		24,580		139			0.6	%	(591		)	(2.4	)%
Money market—foreign	—		—		—		10		21		—			—	%	(21		)	(100.0	)%
Low-cost deposits	86,046		86,141		87,312		88,561		88,615		(95		)	(0.1	)%	(2,569		)	(2.9	)%
Time deposits	7,471		6,792		6,501		6,610		6,762		679			10.0	%	709			10.5	%
Total Customer Deposits	93,517		92,933		93,813		95,171		95,377		584			0.6	%	(1,860		)	(2.0	)%
Corporate treasury time deposits	496		87		21		23		25		409			470.1	%	471			NM
Corporate treasury other deposits	157		139		108		59		26		18			12.9	%	131			NM
Total Deposits	$	94,170	$	93,159	$	93,942	$	95,253	$	95,428	$	1,011		1.1	%	$	(1,258	)	(1.3	)%



	Average Balances
($ amounts in millions)	1Q19		4Q18		3Q18		2Q18		1Q18		1Q19 vs. 4Q18					1Q19 vs. 1Q18
Consumer Bank Segment	$	57,952	$	57,366	$	57,684	$	58,152	$	57,146	$	586		1.0	%	$	806		1.4	%
Corporate Bank Segment	26,904		26,323		26,563		27,160		27,672		581			2.2	%	(768		)	(2.8	)%
Wealth Management Segment	7,948		8,027		8,235		8,528		8,942		(79		)	(1.0	)%	(994		)	(11.1	)%
Other ⁽¹⁾	1,366		1,443		1,460		1,413		1,668		(77		)	(5.3	)%	(302		)	(18.1	)%
Total Deposits	$	94,170	$	93,159	$	93,942	$	95,253	$	95,428	$	1,011		1.1	%	$	(1,258	)	(1.3	)%



	Average Balances
($ amounts in millions)	1Q19		4Q18		3Q18		2Q18		1Q18		1Q19 vs. 4Q18					1Q19 vs. 1Q18
Wealth Management - Private Wealth	$	7,111	$	7,084	$	7,250	$	7,430	$	7,765	$	27		0.4	%	$	(654	)	(8.4	)%
Wealth Management - Institutional Services	837		943		985		1,098		1,177		(106		)	(11.2	)%	(340		)	(28.9	)%
Total Wealth Management Segment Deposits	$	7,948	$	8,027	$	8,235	$	8,528	$	8,942	$	(79	)	(1.0	)%	$	(994	)	(11.1	)%


(1)	Consists primarily of brokered deposits.

Regions Financial Corporation and Subsidiaries

Financial Supplement to First Quarter 2019 Earnings Release

Reconciliation to GAAP Financial Measures

Tangible Common Ratios and Capital

The following tables provide the calculation of the end of period “tangible common stockholders’ equity” and "tangible common book value per share" ratios, a reconciliation of stockholders’ equity (GAAP) to tangible common stockholders’ equity (non-GAAP), and the fully phased-in pro-forma of Basel III common equity Tier 1 (non-GAAP).

The calculation of the fully phased-in pro-forma "Common equity Tier 1" (CET1) is based on Regions’ understanding of the Final Basel III requirements. For Regions, the Basel III framework became effective on a phased-in approach starting in 2015 with full implementation extending to 2019. The Basel III rules are now fully phased in, other than with respect to deductions and adjustments whose transitional treatment has been extended until the federal banking agencies' September 2017 proposal to revise and simplify the capital treatment of selected categories of assets is finalized. The calculation provided below includes estimated pro-forma amounts for the ratio on a fully phased-in basis. Regions’ current understanding of the final framework includes certain assumptions, including the Company’s interpretation of the requirements, and informal feedback received through the regulatory process. Regions’ understanding of the framework is evolving and will likely change as analyses and discussions with regulators continue. Because Regions is not currently subject to the fully phased-in capital rules, this pro-forma measure is considered to be a non-GAAP financial measure, and other entities may calculate it differently from Regions’ disclosed calculation.

A company's regulatory capital is often expressed as a percentage of risk-weighted assets. Under the risk-based capital framework, a company’s balance sheet assets and credit equivalent amounts of off-balance sheet items are assigned to broad risk categories. The aggregated dollar amount in each category is then multiplied by the prescribed risk-weighted percentage. The resulting weighted values from each of the categories are added together and this sum is the risk-weighted assets total that, as adjusted, comprises the denominator of certain risk-based capital ratios. Common equity Tier 1 capital is then divided by this denominator (risk-weighted assets) to determine the common equity Tier 1 capital ratio. The amounts disclosed as risk-weighted assets are calculated consistent with banking regulatory requirements on a fully phased-in basis.

Since analysts and banking regulators may assess Regions’ capital adequacy using tangible common stockholders' equity and the fully phased-in Basel III framework, we believe that it is useful to provide investors the ability to assess Regions’ capital adequacy on these same bases.



		As of and for Quarter Ended
($ amounts in millions, except per share data)		3/31/2019			12/31/2018			9/30/2018			6/30/2018			3/31/2018
Tangible Common Ratios—Consolidated
Stockholders’ equity (GAAP)		$	15,512		$	15,090		$	14,770		$	15,777		$	15,866
Less:
Preferred stock (GAAP)		820			820			820			820			820
Intangible assets (GAAP)		4,937			4,944			4,951			5,060			5,071
Deferred tax liability related to intangibles (GAAP)		(94		)	(94		)	(95		)	(97		)	(99		)
Tangible common stockholders’ equity (non-GAAP)	A	$	9,849		$	9,420		$	9,094		$	9,994		$	10,074
Total assets (GAAP)		$	128,802		$	125,688		$	124,578		$	124,557		$	122,913
Less:
Intangible assets (GAAP)		4,937			4,944			4,951			5,060			5,071
Deferred tax liability related to intangibles (GAAP)		(94		)	(94		)	(95		)	(97		)	(99		)
Tangible assets (non-GAAP)	B	$	123,959		$	120,838		$	119,722		$	119,594		$	117,941
Shares outstanding—end of quarter	C	1,013			1,025			1,055			1,114			1,123
Tangible common stockholders’ equity to tangible assets (non-GAAP)	A/B	7.95		%	7.80		%	7.60		%	8.36		%	8.54		%
Tangible common book value per share (non-GAAP)	A/C	$	9.72		$	9.19		$	8.62		$	8.97		$	8.98



		As of and for Quarter Ended
($ amounts in millions)		3/31/2019			12/31/2018			9/30/2018			6/30/2018			3/31/2018
Basel III Common Equity Tier 1 Ratio—Fully Phased-In Pro-Forma ⁽¹⁾
Stockholder's equity (GAAP)		$	15,512		$	15,090		$	14,770		$	15,777		$	15,866
Non-qualifying goodwill and intangibles		(4,832		)	(4,839		)	(4,845		)	(4,953		)	(4,961		)
Adjustments, including all components of accumulated other comprehensive income, disallowed deferred tax assets, threshold deductions and other adjustments		575			940			1,376			1,230			1,121
Preferred stock (GAAP)		(820		)	(820		)	(820		)	(820		)	(820		)
Basel III common equity Tier 1—Fully Phased-In Pro-Forma (non-GAAP)	D	$	10,435		$	10,371		$	10,481		$	11,234		$	11,206
Basel III risk-weighted assets—Fully Phased-In Pro-Forma (non-GAAP) ⁽²⁾	E	$	107,297		$	105,475		$	103,721		$	102,819		$	101,482
Basel III common equity Tier 1 ratio—Fully Phased-In Pro-Forma (non-GAAP)	D/E	9.7		%	9.8		%	10.1		%	10.9		%	11.0		%


(1)	Current quarter amounts and the resulting ratio are estimated.


(2)	Regions has systems and internal controls in place to calculate risk-weighted assets as required by Basel III on a fully phased-in basis. The amounts included above are a reasonable approximation, based on our understanding of the requirements.

Regions Financial Corporation and Subsidiaries

Financial Supplement to First Quarter 2019 Earnings Release

Forward-Looking Statements

This release may include forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, which reflect Regions’ current views with respect to future events and financial performance. 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 possible declines in property values, increases in 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.


•	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, any repricing of assets, or any adjustment of valuation allowances on our deferred tax assets due to changes in law, adverse changes in the economic environment, declining operations of the reporting unit or other factors.


•	The effect of changes in tax laws, including the effect of Tax Reform and any future interpretations of or amendments to Tax Reform, which may impact our earnings, capital ratios and our ability to return capital to stockholders.


•	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.


•	Loss of customer checking and savings account deposits as customers pursue other, higher-yield investments, which could increase our funding costs.


•	Possible changes in consumer and business spending and saving habits and the related effect on our ability to increase assets and to attract deposits, which could adversely affect our net income.


•	Our ability to effectively compete with other traditional and non-traditional financial services companies, some of whom possess greater financial resources than we do or are subject to different regulatory standards than we are.


•	Our inability to develop and gain acceptance from current and prospective customers for new products and services and the enhancement of existing products and services to meet customers’ needs and respond to emerging technological trends in a timely manner could have a negative impact on our revenue.


•	Our inability to keep pace with technological changes could result in losing business to competitors.

•

Changes in laws and regulations affecting our businesses, including legislation and regulations relating to bank products and services, as well as changes in the enforcement and interpretation of such laws and regulations by applicable governmental and self-regulatory agencies, 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 effects of any developments, changes or actions relating to any litigation or regulatory proceedings brought against us or any of our subsidiaries.


•	The costs, including possibly incurring fines, penalties, or other negative effects (including reputational harm) of any adverse judicial, administrative, or arbitral rulings or proceedings, regulatory enforcement actions, or other legal actions to which we or any of our subsidiaries are a party, and which may adversely affect our results.


•	Our ability to manage fluctuations in the value of assets and liabilities and off-balance sheet exposure so as to maintain sufficient capital and liquidity to support our 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 risks and uncertainties related to our acquisition or divestiture of businesses.


•	The success of our marketing efforts in attracting and retaining customers.


•	Our ability to recruit and retain talented and experienced personnel to assist in the development, management and operation of our products and services may be affected by changes in laws and regulations in effect from time to time.


•	Fraud or misconduct by our customers, employees or business partners.


•	Any inaccurate or incomplete information provided to us by our customers or counterparties.

Regions Financial Corporation and Subsidiaries

Financial Supplement to First Quarter 2019 Earnings Release


•	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 or failure to deliver our services effectively.


•	Dependence on key suppliers or vendors to obtain equipment and other supplies for our business on acceptable terms.


•	The inability of our internal 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. The severity and impact of future earthquakes, fires, hurricanes, tornadoes, droughts, floods and other weather-related events are difficult to predict and may be exacerbated by global climate change.

•

Changes in commodity market prices and conditions could adversely affect the cash flows of our borrowers operating in industries that are impacted by changes in commodity prices (including businesses indirectly impacted by commodities prices such as businesses that transport commodities or manufacture equipment used in the production of commodities), which could impair their ability to service any loans outstanding to them and/or reduce demand for loans in those industries.

•

Our ability to identify and address cyber-security risks such as data security breaches, malware, “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.


•	Possible cessation or market replacement of LIBOR and the related effect on our LIBOR-based financial products and contracts, including, but not limited to, hedging products, debt obligations, investments, and loans.


•	Possible downgrades in our credit ratings or outlook could increase the costs of funding from capital markets.


•	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.


•	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 our financial statements and how we report those results, and expectations and preliminary analyses relating to how such changes will affect our financial results could prove incorrect.


•	Other risks identified from time to time in reports that we file with the SEC.


•	Fluctuations in the price of our common stock and inability to complete stock repurchases in the time frame and/or on the terms anticipated.


•	The effects of any damage to our reputation resulting from developments related to any of the items identified above.

The foregoing list of factors is not exhaustive. For discussion of these and other factors that may cause actual results to differ from expectations, look under the captions “Forward-Looking Statements” and “Risk Factors” of Regions’ Annual Report on Form 10-K for the year ended December 31, 2018 as filed with the SEC.

The words "future," “anticipates,” "assumes," “intends,” “plans,” “seeks,” “believes,” "predicts," "potential," "objectives," “estimates,” “expects,” “targets,” “projects,” “outlook,” “forecast,” "would," “will,” “may,” “might,” “could,” “should,” “can,” and similar terms and expressions often signify forward-looking statements. You should not place undue reliance on any forward-looking statements, which speak only as of the date made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible to predict all of them. We assume no obligation and do not intend to update or revise any forward-looking statements that are made from time to time, either as a result of future developments, new information or otherwise, except as may be required by law.

Regions’ Investor Relations contact is Dana Nolan at (205) 264-7040; Regions’ Media contact is Evelyn Mitchell at (205) 264-4551.