Exhibit 99.2
Regions Financial Corporation and Subsidiaries
Financial Supplement
Second Quarter 2021
Regions Financial Corporation and Subsidiaries
Financial Supplement to Second Quarter 2021 Earnings Release
Table of Contents
Page | |
Financial Highlights | |
Selected Ratios and Other Information | |
Consolidated Statements of Operations | |
Consolidated Average Daily Balances and Yield / Rate Analysis | 5 |
Pre-TaxPre-Provision Income ("PPI") and Adjusted PPI | 7 |
Non-Interest Income, Mortgage Income, Wealth Management Income and Capital Markets Income | 8 |
Non-Interest Expense | 10 |
Reconciliation to GAAP Financial Measures | |
Adjusted Efficiency Ratios, Adjusted Fee Income Ratios, Adjusted Non-Interest Income / Expense, Adjusted Operating Leverage | 11 |
Ratios, and Return Ratios | |
Credit Quality | |
Allowance for Credit Losses, Net Charge-Offs and Related Ratios | 14 |
Non-Accrual Loans (excludes loans held for sale), Early and Late Stage Delinquencies | 16 |
Troubled Debt Restructurings | 17 |
Consolidated Balance Sheets | 18 |
Loans | 19 |
Deposits | 24 |
Reconciliation to GAAP Financial Measures | |
Tangible Common Ratios | 26 |
Forward-Looking Statements | 27 |
Regions Financial Corporation and Subsidiaries
Financial Supplement to Second Quarter 2021 Earnings Release
Financial Highlights
Quarter Ended | ||||||||||||||
($ amounts in millions, except per share data) | 6/30/2021 | 3/31/2021 | 12/31/2020 | 9/30/2020 | 6/30/2020 | |||||||||
Earnings Summary | ||||||||||||||
Interest income - taxable equivalent | $ | 1,018 | $ | 1,024 | $ | 1,072 | $ | 1,071 | $ | 1,076 | ||||
Interest expense - taxable equivalent | 43 | 46 | 55 | 71 | 91 | |||||||||
Net interest income - taxable equivalent | 975 | 978 | 1,017 | 1,000 | 985 | |||||||||
Less: Taxable-equivalent adjustment | 12 | 11 | 11 | 12 | 13 | |||||||||
Net interest income | 963 | 967 | 1,006 | 988 | 972 | |||||||||
Provision for (benefit from) credit losses | (337) | (142) | (38) | 113 | 882 | |||||||||
Net interest income after provision for (benefit from) credit losses | 1,300 | 1,109 | 1,044 | 875 | 90 | |||||||||
Non-interest income | 619 | 641 | 680 | 655 | 573 | |||||||||
Non-interest expense | 898 | 928 | 987 | 896 | 924 | |||||||||
Income (loss) before income taxes | 1,021 | 822 | 737 | 634 | (261) | |||||||||
Income tax expense (benefit) | 231 | 180 | 121 | 104 | (47) | |||||||||
Net income (loss) | $ | 790 | $ | 642 | $ | 616 | $ | 530 | $ | (214) | ||||
Net income (loss) available to common shareholders | $ | 748 | $ | 614 | $ | 588 | $ | 501 | $ | (237) | ||||
Earnings (loss) per common share - basic | 0.78 | 0.64 | 0.61 | 0.52 | (0.25) | |||||||||
Earnings (loss) per common share - diluted | 0.77 | 0.63 | 0.61 | 0.52 | (0.25) | |||||||||
Balance Sheet Summary | ||||||||||||||
At quarter-end | ||||||||||||||
Loans, net of unearned income | $ | 84,074 | $ | 84,755 | $ | 85,266 | $ | 88,359 | $ | 90,548 | ||||
Allowance for credit losses | (1,684) | (2,068) | (2,293) | (2,425) | (2,425) | |||||||||
Assets | 155,610 | 153,331 | 147,389 | 145,180 | 144,070 | |||||||||
Deposits | 131,484 | 129,602 | 122,479 | 118,445 | 116,779 | |||||||||
Long-term borrowings - Federal Home Loan Bank advances | - | - | - | - | 401 | |||||||||
Long-term borrowings - Other | 2,870 | 2,916 | 3,569 | 4,919 | 6,007 | |||||||||
Shareholders' equity | 18,252 | 17,862 | 18,111 | 17,904 | 17,602 | |||||||||
Average balances | ||||||||||||||
Loans, net of unearned income | $ | 84,551 | $ | 84,755 | $ | 86,664 | $ | 89,370 | $ | 91,964 | ||||
Assets | 154,678 | 146,554 | 144,819 | 142,845 | 139,820 | |||||||||
Deposits | 131,132 | 122,937 | 119,767 | 116,656 | 110,921 | |||||||||
Long-term borrowings - Federal Home Loan Bank advances | - | - | - | 392 | 1,266 | |||||||||
Long-term borrowings - Other | 2,901 | 3,192 | 4,634 | 5,437 | 6,301 | |||||||||
Shareholders' equity | 18,000 | 18,038 | 17,915 | 17,759 | 17,384 |
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Regions Financial Corporation and Subsidiaries
Financial Supplement to Second Quarter 2021 Earnings Release elected Ratios and Other Information
As of and for Quarter Ended | ||||||||||||||
6/30/2021 | 3/31/2021 | 12/31/2020 | 9/30/2020 | 6/30/2020 | ||||||||||
Return on average assets* (1) | 2.05 % | 1.78 % | 1.69 % | 1.48 % | (0.61)% | |||||||||
Return on average common shareholders' equity* | 18.35 % | 15.20 % | 14.37 % | 12.38 % | (5.96)% | |||||||||
Return on average tangible common shareholders' equity (non-GAAP)*(2) | 26.91 % | 22.28 % | 21.15 % | 18.32 % | (8.90)% | |||||||||
Efficiency ratio | 56.4 % | 57.3 % | 58.1 % | 54.1 % | 59.4 % | |||||||||
Adjusted efficiency ratio (non-GAAP)(2) | 56.9 % | 56.8 % | 55.8 % | 55.3 % | 57.7 % | |||||||||
Common book value per share | $ | 17.38 | $ | 16.87 | $ | 17.13 | $ | 16.92 | $ | 16.61 | ||||
Tangible common book value per share (non-GAAP)(2) | $ | 11.94 | $ | 11.46 | $ | 11.71 | $ | 11.49 | $ | 11.16 | ||||
Tangible common shareholders' equity to tangible assets (non-GAAP)(2) | 7.58 % | 7.43 % | 7.91 % | 7.88 % | 7.72 % | |||||||||
Common equity (3) | $ | 11,190 | $ | 10,952 | $ | 10,525 | $ | 10,092 | $ | 9,716 | ||||
Total risk-weighted assets (3) | $ | 107,947 | $ | 106,261 | $ | 106,943 | $ | 108,285 | $ | 109,539 | ||||
Common equity Tier 1 ratio (3) | 10.4 % | 10.3 % | 9.8 % | 9.3 % | 8.9 % | |||||||||
Tier 1 capital ratio (3) | 11.9 % | 11.9 % | 11.4 % | 10.8 % | 10.4 % | |||||||||
Total risk-based capital ratio (3) | 13.9 % | 14.0 % | 13.6 % | 13.0 % | 12.6 % | |||||||||
Leverage ratio (3) | 8.6 % | 8.9 % | 8.7 % | 8.5 % | 8.4 % | |||||||||
Effective tax rate | 22.6 % | 21.9 % | 16.5 % | 16.5 % | 18.3 % | |||||||||
Allowance for credit losses as a percentage of loans, net of unearned income | 2.00 % | 2.44 % | 2.69 % | 2.74 % | 2.68 % | |||||||||
Allowance for credit losses as a percentage of loans excluding PPP, net of unearned income (non-GAAP)(2) | 2.07 % | 2.57 % | 2.81 % | 2.90 % | 2.82 % | |||||||||
Allowance for credit losses to non-performing loans, excluding loans held for sale | 253 % | 280 % | 308 % | 316 % | 395 % | |||||||||
Net interest margin (FTE)* | 2.81 % | 3.02 % | 3.13 % | 3.13 % | 3.19 % | |||||||||
Adjusted net interest margin (FTE) (non-GAAP)(2) * | 3.31 % | 3.40 % | 3.40 % | 3.41 % | 3.36 % | |||||||||
Loans, net of unearned income, to total deposits | 63.9 % | 65.4 % | 69.6 % | 74.6 % | 77.5 % | |||||||||
Net charge-offs as a percentage of average loans* | 0.23 % | 0.40 % | 0.43 % | 0.50 % | 0.80 % | |||||||||
Non-accrual loans, excluding loans held for sale, as a percentage of loans | 0.79 % | 0.87 % | 0.87 % | 0.87 % | 0.68 % | |||||||||
Non-performing assets (excluding loans 90 days past due) as a percentage of loans, foreclosed properties, | 0.93 % | 0.90 % | 0.91 % | 0.90 % | 0.74 % | |||||||||
non-marketable investments and non-performing loans held for sale | ||||||||||||||
Non-performing assets (including loans 90 days past due) as a percentage of loans, foreclosed properties, non- | 1.09 % | 1.09 % | 1.10 % | 1.08 % | 0.91 % | |||||||||
marketable investments and non-performing loans held for sale (4) | ||||||||||||||
Associate headcount-full-time equivalent (5) | 18,814 | 18,926 | 19,406 | 19,766 | 20,073 | |||||||||
ATMs | 2,051 | 2,101 | 2,083 | 2,058 | 2,038 | |||||||||
Branch Statistics | ||||||||||||||
Full service | 1,280 | 1,332 | 1,333 | 1,334 | 1,340 | |||||||||
Drive-through/transaction service only | 33 | 34 | 36 | 47 | 51 | |||||||||
Total branch outlets | 1,313 | 1,366 | 1,369 | 1,381 | 1,391 | |||||||||
*Annualized
- Calculated by dividing net income by consolidated average assets.
- See reconciliation of GAAP to non-GAAP Financial Measures on pages 6, 7, 11, 12, 13, 15, 19, 21, 22, 23 and 26
- Current quarter Common equity as well as Total risk-weighted assets, Common equity Tier 1, Tier 1 capital, Total risk-based capital and Leverage ratios are estimated.
- Excludes guaranteed residential first mortgages that are 90+ days past due and still accruing. Refer to the footnotes on page 16 for amounts related to these loans.
- Associate headcount for the second quarter of 2020 includes 463 associates from the Ascentium acquisition.
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Regions Financial Corporation and Subsidiaries
Financial Supplement to Second Quarter 2021 Earnings Release
Consolidated Statements of Operations (unaudited)
Quarter Ended | ||||||||||||||
($ amounts in millions, except per share data) | 6/30/2021 | 3/31/2021 | 12/31/2020 | 9/30/2020 | 6/30/2020 | |||||||||
Interest income on: | ||||||||||||||
Loans, including fees | $ | 849 | $ | 854 | $ | 906 | $ | 903 | $ | 898 | ||||
Debt securities | 131 | 133 | 136 | 140 | 148 | |||||||||
Loans held for sale | 12 | 12 | 9 | 8 | 6 | |||||||||
Other earning assets | 14 | 14 | 10 | 8 | 11 | |||||||||
Total interest income | 1,006 | 1,013 | 1,061 | 1,059 | 1,063 | |||||||||
Interest expense on: | ||||||||||||||
Deposits | 17 | 19 | 24 | 32 | 40 | |||||||||
Short-term borrowings | - | - | - | - | 2 | |||||||||
Long-term borrowings | 26 | 27 | 31 | 39 | 49 | |||||||||
Total interest expense | 43 | 46 | 55 | 71 | 91 | |||||||||
Net interest income | 963 | 967 | 1,006 | 988 | 972 | |||||||||
Provision for (benefit from) credit losses | (337) | (142) | (38) | 113 | 882 | |||||||||
Net interest income after provision for (benefit from) credit losses | 1,300 | 1,109 | 1,044 | 875 | 90 | |||||||||
Non-interest income: | ||||||||||||||
Service charges on deposit accounts | 163 | 157 | 160 | 152 | 131 | |||||||||
Card and ATM fees | 128 | 115 | 117 | 115 | 101 | |||||||||
Wealth management income | 96 | 91 | 89 | 85 | 79 | |||||||||
Capital markets income | 61 | 100 | 110 | 61 | 95 | |||||||||
Mortgage income | 53 | 90 | 75 | 108 | 82 | |||||||||
Securities gains (losses), net | 1 | 1 | - | 3 | 1 | |||||||||
Other | 117 | 87 | 129 | 131 | 84 | |||||||||
Total non-interest income | 619 | 641 | 680 | 655 | 573 | |||||||||
Non-interest expense: | ||||||||||||||
Salaries and employee benefits | 532 | 546 | 581 | 525 | 527 | |||||||||
Net occupancy expense | 75 | 77 | 78 | 80 | 76 | |||||||||
Equipment and software expense | 89 | 90 | 90 | 89 | 86 | |||||||||
Other | 202 | 215 | 238 | 202 | 235 | |||||||||
Total non-interest expense | 898 | 928 | 987 | 896 | 924 | |||||||||
Income (loss) before income taxes | 1,021 | 822 | 737 | 634 | (261) | |||||||||
Income tax expense (benefit) | 231 | 180 | 121 | 104 | (47) | |||||||||
Net income (loss) | $ | 790 | $ | 642 | $ | 616 | $ | 530 | $ | (214) | ||||
Net income (loss) available to common shareholders | $ | 748 | $ | 614 | $ | 588 | $ | 501 | $ | (237) | ||||
Weighted-average shares outstanding-during quarter: | ||||||||||||||
Basic | 958 | 961 | 960 | 960 | 960 | |||||||||
Diluted | 965 | 968 | 965 | 962 | 960 | |||||||||
Actual shares outstanding-end of quarter | 955 | 961 | 960 | 960 | 960 | |||||||||
Earnings (loss) per common share: (1) | ||||||||||||||
Basic | $ | 0.78 | $ | 0.64 | $ | 0.61 | $ | 0.52 | $ | (0.25) | ||||
Diluted | $ | 0.77 | $ | 0.63 | $ | 0.61 | $ | 0.52 | $ | (0.25) | ||||
Taxable-equivalent net interest income | $ | 975 | $ | 978 | $ | 1,017 | $ | 1,000 | $ | 985 |
________
- Quarterly amounts may not add to year-to-date amounts due to rounding.
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Regions Financial Corporation published this content on 23 July 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 July 2021 10:07:31 UTC.