Regions Financial : 3Q21 Earnings Presentation - pdf, 2.8MB, opens in a new window

Exhibit 99.3

3rd Quarter Earnings Conference Call

October 22, 2021

Third quarter 2021 overview

$624M	Net Income Available to
Common Shareholders

$0.65	Diluted Earnings Per
Share

$1,611M	Adjusted Total
Revenue(1)

$918M	Adjusted Non-
Interest Expense(1)

$693M	Adjusted Pre-Tax Pre-
Provision Income(1)

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

• Adjusted pre-taxpre-provision income(1) increased 4% QoQ
• Adjusted efficiency ratio(1) improved 30 bps QoQ to 56.6%
• Generated YTD positive operating leverage
• Net charge-offs ratio improved 9 bps QoQ to 0.14%, lowest level on record post the Company's 2006 MOE

2

Strong foundation-positioned 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		Growing highly efficient		Strong & recovering
generate return		business segments		markets
Online and mobile banking		Increased Mortgage Loan Originator		Top 4 deposit states have
enhancements		(MLO) headcount by ~150(1)		unemployment rates below
Omnichannel delivery-providing		Added ~80 client facing associates		national average(2)
advice, guidance and		in growth markets across Wealth		~60% of our top MSAs projected
personalized solutions through		Mgt. and Corporate Bank(1)		to grow faster than national
excellent customer service and				(3)
technology		Consolidated ~215 branches while		average
		opening ~75 De Novos(1)		16 of top 25 markets with net
Digitized sales within consumer
	YTD net new consumer account		migration inflows are within
bank-YTD digital sales up 38%			footprint(4)
	growth has exceeded the
Expanding E-signature		preceding 3 years combined		~65% of top 25 MSAs with fastest
capabilities		~6% YTD small bus. acct. growth;
		YoY growth in apartment rents
		outpacing 2020's record growth
Leveraging AI in contact			and >50% of top 25 MSAs with
centers; virtual banker will		Expanding capabilities with		highest YoY hotel occupancy
handle over 1M customer calls			growth are within footprint(5)
	bolt-on acquisitions:
this year
	Sabal Capital Partners (pending)
			Southeast region expected to
Contact centers ~100% remote;		EnerBank (home improvement
		recover the fastest to pre-
reducing corporate retail space		point-of-sale)
		(6)
		Ascentium Capital		pandemic employment levels
			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. (6) Per VISA Business and Economic Insights - Regional U.S. Economic Outlook, August 2021.

Loan growth momentum

Adjusted loans and leases(1)

(Average, $ in billions)

$82.3			$79.2	$79.8
			27.3
						26.9		27.1
				55.0			52.3		52.7
				3Q20	2Q21		3Q21
(Ending, $ in billions)
$81.4			$79.6	$80.5
				27.5			27.1		27.3
53.9			52.6	53.2
				3Q20	2Q21		3Q21
			Adj. consumer loans(1)				Adj. business loans(1)

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

QoQ highlights & outlook

• Adjusted average and ending loans increased ~1% QoQ; positioning us well for continued momentum for loan growth in 4Q and beyond.
• Commercial pipelines have surpassed pre-pandemic levels, production remains strong, and line of credit commitments increased $2B YTD
• Average PPP loans decreased 45% QoQ to $2.1B, while ending PPP loans decreased 48% to $1.5B; includes $1.4B forgiveness in 3Q.
• Through 3Q, ~76% of total PPP loans have been forgiven; expect 80-85% to be forgiven by year end.
• Consumer loans reflected another strong quarter of mortgage portfolio production accompanied by modest growth in 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.
• Excluding 4Q benefit from EnerBank acquisition, 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

$131.9

• Pace of deposit growth has slowed, balances

0.4

0.4

continued to increase to new record levels.

$116.7

9.5

9.9

0.4

8.7

42.5

• Average deposits QoQ growth primarily due to

43.0

38.8

higher account balances and strong new account

growth.

◦ YTD net new consumer acct. growth has

exceeded acct. growth for the preceding 3

78.2

79.1

years combined.

68.8

◦ ~6% YTD net new small bus. acct. growth.

• Based on analysis of deposit inflow

characteristics, we currently believe ~30% of

3Q20

2Q21

3Q21

pandemic-related deposit increases can be used

to support longer term growth through the rate

cycle. Additional balances may persist, but

Consumer Bank

Corporate Bank

likely more rate sensitive.

Wealth Mgt

Other(1)

• 4Q EnerBank acquisition will include CD funding

that matures over time, and will benefit from

Regions' funding advantage.

5

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