Regions Financial : 2Q21 Earnings Presentation - pdf, 3.4MB, opens in a new window

Exhibit 99.3

2nd Quarter Earnings Conference Call

July 23, 2021

Second quarter 2021 overview

$748M	Net Income Available to
Common Shareholders

$0.77	Diluted Earnings Per
Share

$1,563M	Adjusted Total
Revenue(1)

$895M	Adjusted Non-
Interest Expense(1)

$668M	Adjusted Pre-Tax Pre-
Provision Income(1)

(1) Non-GAAP, see appendix for reconciliation.

• Adjusted pre-taxpre-provision income(1) increased 3% YoY
• Adjusted efficiency ratio(1) improved 80bps YoY to 56.9%
• Net charge-offs ratio improved 57bps YoY to 0.23%, matching lowest level in over a decade

2

Poised for growth

Committed to continuous expansion of platforms and capabilities

Innovating through digital investments and enhancing our customer experiences to generate

shareholder return

Digital investments	Business segments	Strong & recovering
generate return	prove resilient	markets
Online and mobile banking	Increased Mortgage Loan	Top 4 deposit states have
enhancements	Originator (MLO) headcount by	unemployment rates significantly
	~150(1)	below national average(2)
Creation of omnichannel	Added ~80 client facing associates	~60% of our top MSAs projected
network	in growth markets across Wealth	to grow faster than national
	Mgt. and Corporate Bank(1)	average(3)
Digitized sales within consumer	Consolidated ~215 branches while	16 of top 25 markets with net
bank- YTD digital sales up 53%	opening ~75 De Novos(1)	migration inflows are within
		footprint(4)
Expanding E-signature	Expanding capabilities with	~80% of top 10 MSAs with highest
capabilities	bolt-on acquisitions:	hotel occupancy and ~65% of top
Leveraging AI in contact	EnerBank USA (pending)	25 MSAs with fastest YoY growth
in apartment rents are within
centers; virtual banker will	Ascentium Capital	footprint(5)
handle over 1M customer calls	Highland Associates
this year
BlackArch Partners
Contact centers ~100% remote;	First Sterling Financial
reducing corporate retail space
		3

1. Since 2017. (2) Source: Bureau of Labor Statistics based on June unemployment data. (3) Source: S&P Global Market Intelligence (4) Source: U.S. Postal Service. (5) Source: CoStar as of June 2021 for hotel occupancy and 2Q21 vs. 2Q20 growth for apartment rents.

Loans picking up momentum

Adjusted loans and leases(1)

(Average, $ in billions)
$85.8			$79.3	$79.2
				26.9
						27.2		26.9
			58.9
						52.1		52.3
				2Q20	1Q21		2Q21
(Ending, $ in billions)
$83.3			$78.9	$79.6
			27.2
						26.9		27.1
56.1
		52.0	52.5
				2Q20	1Q21		2Q21
			Adj. consumer loans(1)				Adj. business loans(1)

(1) Non-GAAP, see appendix for reconciliation.

QoQ highlights & outlook

• Adjusted ending loans increased 1% QoQ, providing momentum for loan growth in 2H21.
• Commercial pipelines have surpassed pre- pandemic levels, production remains strong, and utilization rates appear to have reached an inflection point during the quarter ending June at 39.6%.
• Average PPP loans increased modestly QoQ, while ending PPP loans decreased 32% to $2.9B; includes $1.7B forgiveness in 2Q and $651M in 1Q.
• Through 2Q, ~53% of total PPP loans have been forgiven; expect ~80% to be forgiven by year end.
• Consumer loans reflected another strong quarter of mortgage production accompanied by modest growth in ending credit card.
• • Continue to be impacted by run-off portfolios; expect run-off portfolios to have an average impact of ~$1.2B in FY21 and ~$700M in FY22.
• Expect 2021 adjusted average loans to be down low single digits compared to 2020; adjusted ending loans are expected to grow low single digits.

4

Deposit growth continues

Average deposits by segment

QoQ highlights & outlook

($ in billions)

$131.1

• Pace of deposit growth has slowed,

$122.9

0.4

balances continued to increase to new

9.5

$110.9

0.4

record levels.

9.3

0.4

8.4

43.0

• Average deposits grew across all three

40.3

36.4

business segments QoQ, primarily due to

higher account balances, but also from

strong new account growth.

◦ YTD retail checking account growth

65.7

72.9

78.2

3.2%

• Liquidity is expected to begin to

normalize as the Federal Reserve becomes

less accommodative. Reductions in asset

2Q20

1Q21

2Q21

purchases will mitigate future liquidity

increases and curb further deposit

growth.

Consumer Bank

Corporate Bank

• Based on analysis of deposit inflow

Wealth Mgt

Other(1)

characteristics, we currently believe

~20%-30% of pandemic-related deposit

increases will likely persist on the balance

sheet.

5

1. Other deposits represent non-customer balances primarily consisting of wholesale funding (for example, Eurodollar deposits, selected deposits and brokered time deposits).