Regions Financial : 4Q20 Earnings Supplement - pdf, 827KB, opens in a new window

Exhibit 99.2

Regions Financial Corporation and Subsidiaries

Financial Supplement

Fourth Quarter 2020

Regions Financial Corporation and Subsidiaries

Financial Supplement to Fourth Quarter 2020 Earnings Release

Table of Contents

	Page
Financial Highlights	1
Selected Ratios and Other Information	2
Consolidated Statements of Operations	3
Consolidated Average Daily Balances and Yield / Rate Analysis	5
Pre-TaxPre-Provision Income ("PPI") and Adjusted PPI	8
Non-Interest Income, Mortgage Income, Wealth Management Income and Capital Markets Income	9
Non-Interest Expense	11
Reconciliation to GAAP Financial Measures
Adjusted Efficiency Ratios, Adjusted Fee Income Ratios, Adjusted Non-Interest Income / Expense, Adjusted Operating Leverage	12
Ratios, and Return Ratios
Credit Quality
Allowance for Credit Losses, Net Charge-Offs and Related Ratios	15
Non-Accrual Loans (excludes loans held for sale), Early and Late Stage Delinquencies	17
Troubled Debt Restructurings	18

Consolidated Balance Sheets	19
Loans	20
Deposits	24
Reconciliation to GAAP Financial Measures
Tangible Common Ratios	26
Forward-Looking Statements	27

Regions Financial Corporation and Subsidiaries

Financial Supplement to Fourth Quarter 2020 Earnings Release

Financial Highlights

							Quarter Ended
	($ amounts in millions, except per share data)	12/31/2020	9/30/2020	6/30/2020		3/31/2020	12/31/2019
	Earnings Summary
	Interest income - taxable equivalent	$	1,072	$	1,071	$	1,076		$	1,091	$	1,111
	Interest expense - taxable equivalent		55			71			91			151			180
	Net interest income - taxable equivalent		1,017			1,000			985			940			931
	Less: Taxable-equivalent adjustment		11			12			13			12			13
	Net interest income		1,006			988			972			928			918
	Provision (credit) for credit losses (1)		(38)			113			882			373			96
	Net interest income after provision (credit) for credit losses (1)		1,044			875			90			555			822
	Non-interest income		680			655			573			485			562
	Non-interest expense		987			896			924			836			897
	Income (loss) before income taxes		737			634			(261)			204			487
	Income tax expense (benefit)		121			104			(47)			42			98
	Net income (loss)	$	616		$	530		$	(214)		$	162		$	389
	Net income (loss) available to common shareholders	$	588	$	501	$	(237)		$	139	$	366
	Earnings (loss) per common share - basic		0.61			0.52			(0.25)			0.15			0.38
	Earnings (loss) per common share - diluted		0.61			0.52			(0.25)			0.14			0.38
	Balance Sheet Summary
	At quarter-end
	Loans, net of unearned income	$	85,266	$	88,359	$	90,548		$	88,098	$	82,963
	Allowance for credit losses		(2,293)			(2,425)			(2,425)			(1,665)			(914)
	Assets		147,389			145,180			144,070			133,542			126,240
	Deposits		122,479			118,445			116,779			100,030			97,475
	Long-term borrowings - Federal Home Loan Bank advances		-			-			401			4,651			2,501
	Long-term borrowings - Other		3,569			4,919			6,007			5,454			5,378
	Shareholders' equity		18,111			17,904			17,602			17,332			16,295
	Average balances
	Loans, net of unearned income	$	86,664	$	89,370	$	91,964		$	83,249	$	82,392
	Assets		144,819			142,845			139,820			124,771			124,138
	Deposits		119,767			116,656			110,921			95,672			94,512
	Long-term borrowings - Federal Home Loan Bank advances		-			392			1,266			3,003			2,659
	Long-term borrowings - Other		4,634			5,437			6,301			5,399			5,942
	Shareholders' equity		17,915			17,759			17,384			16,460			16,564
_______

1. Upon adoption of the Current Expected Credit Losses (CECL) accounting guidance on January 1, 2020, the provision for credit losses is the sum of the provision for loan losses and the provision for unfunded credit commitments. Prior to the adoption of CECL, the provision for unfunded commitments was included in other non-interest expense.

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Regions Financial Corporation and Subsidiaries

Financial Supplement to Fourth Quarter 2020 Earnings Release

Selected Ratios and Other Information

					As of and for Quarter Ended
	12/31/2020	9/30/2020	6/30/2020	3/31/2020	12/31/2019
Return on average assets* (1)		1.69 %			1.48 %			(0.61)%			0.52 %			1.24 %
Return on average common shareholders' equity*		14.37 %			12.38 %			(5.96)%			3.69 %			9.51 %
Return on average tangible common shareholders' equity (non-GAAP)*(2)		21.15 %			18.32 %			(8.90)%			5.43 %			13.95 %
Efficiency ratio		58.1 %			54.1 %			59.4 %			58.6 %			60.1 %
Adjusted efficiency ratio (non-GAAP)(2)		55.8 %			55.3 %			57.7 %			57.9 %			58.1 %
Common book value per share	$	17.13	$	16.92	$	16.61	$	16.73	$	15.65
Tangible common book value per share (non-GAAP)(2)	$	11.71	$	11.49	$	11.16	$	11.67	$	10.58
Tangible common shareholders' equity to tangible assets (non-GAAP)(2)		7.91 %			7.88 %			7.72 %			8.68 %			8.34 %
Common equity (3)	$	10,525	$	10,092	$	9,716	$	10,294	$	10,228
Total risk-weighted assets (3)	$	107,020	$	108,048	$	109,539	$	108,985	$	105,705
Common equity Tier 1 ratio (3)		9.8 %			9.3 %			8.9 %			9.4 %			9.7 %
Tier 1 capital ratio (3)		11.4 %			10.8 %			10.4 %			10.6 %			10.9 %
Total risk-based capital ratio (3)		13.6 %			13.0 %			12.6 %			12.5 %			12.7 %
Leverage ratio (3)		8.7 %			8.5 %			8.4 %			9.6 %			9.6 %
Effective tax rate		16.5 %			16.5 %			18.3 %			20.6 %			20.3 %
Allowance for credit losses as a percentage of loans, net of unearned income		2.69 %			2.74 %			2.68 %			1.89 %			1.10 %
Allowance for credit losses as a percentage of loans excluding PPP, net of unearned income (non-GAAP)(2)		2.81 %			2.90 %			2.82 %			1.89 %			1.10 %
Allowance for credit losses to non-performing loans, excluding loans held for sale		308 %			316 %			395 %			261 %			180 %
Net interest margin (FTE)*		3.13 %			3.13 %			3.19 %			3.44 %			3.39 %
Loans, net of unearned income, to total deposits		69.6 %			74.6 %			77.5 %			88.1 %			85.1 %
Net charge-offs as a percentage of average loans*		0.43 %			0.50 %			0.80 %			0.59 %			0.46 %
Non-accrual loans, excluding loans held for sale, as a percentage of loans		0.87 %			0.87 %			0.68 %			0.72 %			0.61 %
Non-performing assets (excluding loans 90 days past due) as a percentage of loans, foreclosed properties,		0.91 %			0.90 %			0.74 %			0.79 %			0.70 %
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-		1.10 %			1.08 %			0.91 %			0.96 %			0.89 %
marketable investments and non-performing loans held for sale (4)
Associate headcount-full-time equivalent (5)		19,406			19,766			20,073			19,743			19,564
ATMs		2,083			2,058			2,038			2,042			2,028
Branch Statistics
Full service		1,333			1,334			1,340			1,374			1,374
Drive-through/transaction service only		36			47			51			53			54
Total branch outlets		1,369			1,381			1,391			1,427			1,428
									Year Ended December 31
								2020						2019
Return on average assets (1)										0.79 %					1.26 %
Return on average common stockholders' equity										6.24 %					10.07 %
Return on average tangible common stockholders' equity (non-GAAP)(2)										9.23 %					14.91 %
Efficiency ratio										57.5 %					59.0 %
Adjusted efficiency ratio (non-GAAP)(2)										56.6 %					58.0 %
Effective tax rate										16.8 %					20.3 %
Net interest margin (FTE)										3.21 %					3.45 %
Net charge-offs as a percentage of average loans										0.58 %					0.43 %

*Annualized

1. Calculated by dividing net income by consolidated average assets.
2. See reconciliation of GAAP to non-GAAP Financial Measures on pages 8, 12, 13, 14, 16, 22, 23, and 26.
3. Current quarter Common equity as well as Total risk-weighted assets, Common equity Tier 1, Tier 1 capital, Total risk-based capital and Leverage ratios are estimated.
4. Excludes guaranteed residential first mortgages that are 90+ days past due and still accruing. Refer to the footnotes on page 16 for amounts related to these loans.
5. Associate headcount for the second quarter of 2020 includes 463 associates from the Ascentium acquisition.

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