Summary of Regions Financial Conference Call Company Overview - **Company**: Regions Financial (NYSE: RF) - **Assets**: $160 billion - **Branches**: Over 1,200 - **Market Presence**: Strong presence in the South, Midwest, and Texas - **Deposit Growth**: Five-year deposit growth has outpaced the industry with the lowest total and interest-bearing deposit costs among peers [1][5][6] Core Business Strategies - **Market Strategy**: Focus on local bankers supported by industry and product expertise, particularly in the Southeast, which is experiencing population growth at 1.5 times the national average [5][6] - **Business Segments**: Three distinct businesses: commercial banking, corporate institutional banking, and consumer banking [5][6] - **Small Business Focus**: Targeting nearly 12 million potential small business customers, emphasizing treasury management and deposit opportunities [6][12] Financial Performance - **Revenue Growth**: Revenue increased by 5.2% year-to-date, with a linked quarter growth of 5.7% [8][9] - **Client Liquidity**: Total client liquidity exceeded $50 billion, marking five consecutive quarters of growth [11] - **Non-Interest Revenue (NIR)**: Aiming to grow NIR as a percentage of total revenue in the Corporate Banking Group from just under 34% to 38% [10] Investments and Technology - **Investments**: Continued investments in talent, technology, and targeted markets to sustain growth [12][15] - **Talent Acquisition**: Plans to add 90 revenue producers by 2026, with two-thirds targeted for hire by year-end [15] - **Technology Initiatives**: Implementation of new commercial lending and deposit systems, with expectations of improved market responsiveness [41][43] Consumer Banking Insights - **Customer Base**: Serves approximately 4.2 million customers, with a focus on primary checking accounts to drive low-cost deposits [23][24] - **Customer Loyalty**: 60% of consumer deposits are from customers with over ten years of relationship with the bank [26] - **Lending Focus**: Emphasis on mortgage lending and home equity, with double-digit growth in home equity production [27][28] Competitive Landscape - **Market Share**: Holds top five market share in nearly 70% of its markets, with a long-standing presence averaging over 74 years [28][29] - **Response to Disruption**: Established playbooks to manage market disruptions and maintain customer loyalty [50][51] Economic Outlook - **Loan Growth Expectations**: Anticipates sustainable loan growth aligned with GDP growth, focusing on relationship-based growth rather than aggressive lending [76][78] - **Interest Rate Management**: Projecting net interest margin to finish the year in the mid-360s, with potential for further growth in 2026 [55][56] Key Challenges and Considerations - **Technology Costs**: While technology expenses are expected to rise, the goal is to leverage technology to reduce other costs and improve efficiency [43][44] - **Market Competition**: Monitoring deposit pricing competition and adjusting strategies accordingly to maintain competitive rates [53][54] Conclusion Regions Financial is positioned for continued growth through strategic investments in talent and technology, a focus on customer loyalty, and a commitment to sustainable financial performance in a competitive landscape. The company aims to leverage its strong deposit franchise and local market expertise to navigate economic challenges and capitalize on growth opportunities.

BancAnalysts Association of Boston Conference November 7, 2025 Internal Use Brian Willman Head of Corporate Banking Group Corporate Banking Group A diversified engine for growth and long-term performance Emerging Commercial $5M - $20M Middle Market $20M to $500M Large Corporate $500M - $2B Local and Dedicated Relationship Managers + Digital Local and Dedicated Relationship Managers + Industry & Product Specialists Dedicated Coverage Bankers + Industry Specialists & Strategic / Capital Advisory Clients Cover ...

Company Overview - Regions Financial Corporation is a major regional bank based in Birmingham, Alabama, with a market cap of $21.6 billion, offering a range of services including retail and commercial banking, mortgage, and wealth management [1] Stock Performance - Over the past 52 weeks, Regions Financial's shares have increased by 3.3%, underperforming the S&P 500 Index, which gained 18.5% [2] - Year-to-date, the stock is up 2.7%, lagging behind the S&P 500's 15.1% increase [2] - However, RF has outperformed the iShares U.S. Regional Banks ETF, which rose by only 1% over the past 52 weeks and declined by 2.1% year-to-date [3] Recent Developments - On October 20, RF's shares rose by 2% following the launch of enhanced Treasury Management services for healthcare clients, aimed at automating the payments process [4] - The new Healthcare Receivables Services, powered by MediStreams, are designed to streamline remittance workflows and improve financial operations [4] Financial Performance - For the third quarter of fiscal 2025, Regions Financial reported adjusted earnings of $0.63 per share, with a 7% increase in net revenue to $1.9 billion [5] - Record results in fee-based businesses, including wealth management and capital markets, helped to offset pressures on net interest income and a slightly lower net interest margin [5] Analyst Expectations - Analysts project RF's EPS to grow by 10.9% year-over-year to $2.35 for the current fiscal year ending in December [6] - The company has a positive earnings surprise history, exceeding consensus estimates in each of the last four quarters [6] - Among 27 analysts covering the stock, the consensus rating is a "Moderate Buy," with nine "Strong Buy," two "Moderate Buy," 15 "Hold," and one "Strong Sell" rating [6]

Financial Performance - Regions reported net income available to common shareholders of $548 million or $0.61 per diluted share in Q3 2025, up from $446 million or $0.49 per diluted share in Q3 2024, representing a 23% increase in net income [225]. - Non-interest income was $659 million in Q3 2025, up from $572 million in Q3 2024, driven by a decline in securities losses and increases in capital markets income and investment management fees [228]. - Non-interest expense increased to $1.1 billion in Q3 2025, up $34 million from Q3 2024, primarily due to higher salaries and benefits and professional expenses [229]. - Total non-interest expense for the third quarter of 2025 was $1,103 million, reflecting a 3.2% increase from $1,069 million in the third quarter of 2024 [410]. - The company's liquidity policy mandates a minimum cash balance of $500 million, with cash and cash equivalents totaling $1.0 billion as of September 30, 2025 [394]. Interest Income and Expenses - Net interest income totaled $1.3 billion in Q3 2025, an increase of $39 million compared to Q3 2024, with a net interest margin of 3.59%, reflecting a 5 basis point increase year-over-year [226]. - Regions' net interest income for the three months ended September 30, 2025, was $1.269 billion, resulting in a net interest margin of 3.59% [335]. - Total interest-bearing liabilities amounted to $96.3 billion with a net interest spread of 2.87% for the three months ended September 30, 2025 [335]. - Interest-bearing deposits totaled $89,525 million with an interest expense of $1,345 million, resulting in a yield of 2.01% for the nine months ended September 30, 2025 [340]. - The average balance of loans, net of unearned income, was $96,284 million, generating interest income of $4,141 million with a yield of 5.70% [340]. Loan and Credit Quality - The provision for credit losses was $105 million in Q3 2025, down from $113 million in Q3 2024, while net charge-offs increased to $135 million or 0.55% of average loans [227]. - Total non-performing loans decreased by $170 million to $758 million as of September 30, 2025, compared to year-end 2024 levels [301]. - The allowance for loan losses totaled $1.7 billion at both September 30, 2025, and December 31, 2024 [277]. - Total commercial non-performing loans increased to $566 million as of September 30, 2025, from $450 million at December 31, 2024 [299]. - The consumer credit card segment had a non-performing loan rate of 8.41% as of September 30, 2025 [299]. Capital and Equity - Regions' CET1 ratio was estimated at 10.9% as of September 30, 2025, in compliance with regulatory capital requirements [231]. - Shareholders' equity increased to $19.0 billion at September 30, 2025, up from $17.9 billion at December 31, 2024, driven by a net income increase of $1.6 billion [330]. - Common equity Tier 1 capital ratio for Regions Financial Corporation was 10.86% and for Regions Bank was 11.66% as of September 30, 2025, exceeding the minimum requirement of 4.50% [318]. Deposits and Liquidity - Total deposits increased by approximately $2.7 billion to $130.334 billion at September 30, 2025, driven primarily by growth in money market and non-interest-bearing deposits [308]. - Non-interest-bearing deposits accounted for approximately 31% of total deposits at both September 30, 2025, and December 31, 2024 [308]. - Total liquidity sources amount to $68.5 billion, including $26.2 billion in unencumbered investment securities and $23.1 billion in Federal Reserve Bank borrowing availability [386]. - Regions maintains a variety of liquidity sources to fund its obligations, including customer deposits and borrowed funds, ensuring a balanced liquidity base [383]. Economic Outlook - The September baseline forecast anticipates real GDP growth of 1.8 percent for 2025 and 2026, with real private domestic demand expected to rise by 2.2 percent in 2025 [283]. - The unemployment rate is projected to remain around 4.4% throughout the forecast period [290]. - Economic uncertainty and potential disruptions are weighted to the downside in the baseline forecast [288]. Operational Efficiency - Salaries and employee benefits increased by 4.0% to $671 million in the third quarter of 2025 from $645 million in the same period of 2024 [410]. - Operational losses decreased in the nine months ended September 30, 2025, compared to the same period in 2024, primarily due to improvements in check fraud [416]. - Visa class B shares expense decreased to $5 million in Q3 2025 from $14 million in Q3 2024, reflecting a reduction in escrow funding expense related to ongoing litigation [415].

Core Viewpoint - Companies with a strong history of dividend payments and increases are attractive to income-focused investors, with Avista, Regions Financial, and Duke Energy recently announcing dividend hikes and offering yields up to 5% [1] Avista - Avista Corp. has increased its dividends for 22 consecutive years, with the latest hike on Feb. 12 raising the quarterly payout from $0.475 to $0.49 per share, resulting in an annual figure of $1.96 per share [3] - The company maintained the same dividend payout in its announcement on Aug. 6, with a current dividend yield of 5.03% [3] - Avista's annual revenue as of June 30 was $1.96 billion, and Q2 2025 revenues were reported at $411 million with an EPS of $0.17, both missing market expectations [4] Regions Financial - Regions Financial Corp. has raised its dividends for 12 consecutive years, with a recent increase on July 16 of 6% to $0.265 per share, equating to an annual figure of $1.06 per share [5] - The company maintained the same dividend payout in its announcement on Oct. 15, with a current dividend yield of 4.37% [5] - Regions Financial's annual revenue as of June 30 was $7.29 billion, and Q3 2025 revenues were reported at $1.94 billion with an EPS of $0.63, both exceeding market expectations [6] Duke Energy - Duke Energy Corp. has increased its dividends for 18 consecutive years, with the latest hike on July 15 raising the quarterly payout from $1.045 to $1.065 per share, resulting in an annual figure of $4.26 per share [8] - The company maintained the same dividend payout in its announcement on Oct. 14, with a current dividend yield of 3.34% [8]

Core Insights - Howden has appointed Ben Hanback as Executive Vice President (EVP) for Howden US, indicating a strategic move to enhance its leadership team and expand its operations in the US market [1][2] Group 1: Appointment Details - Ben Hanback will be based in Nashville, Tennessee, and will report to Mike Parrish, CEO of Howden US [2] - His role will focus on rapidly expanding Howden's US Health & Benefits team and supporting growth in Tennessee and the broader Mid-South region [2] Group 2: Experience and Background - Hanback brings nearly 35 years of industry experience, having previously worked at Aon for almost 10 years as Managing Director and Market Leader [3] - His prior roles include Senior Vice President of Employee Benefits at Regions Financial Corporation and leadership positions at Hanback, Colonial Life, and Unum [3] Group 3: Strategic Vision - CEO Mike Parrish emphasized that Hanback will help build a new business in the US, contributing to the company's mission of providing clients and carriers with greater choice and flexibility [4] - Hanback expressed enthusiasm for Howden's employee ownership and people-first culture, highlighting the company's ambition to create a brokerage with global capabilities and top-tier talent [5]

Core Insights - Regionals Financial (NYSE: RF) shares have experienced a mixed performance over the past year, with a loss of approximately 3% in value [1] - Following the company's solid results report, shares traded slightly higher, which may help to stabilize investor sentiment [1] Company Performance - The company reported solid results that contributed to a slight increase in share price on Friday [1] - The performance over the past year indicates a need for potential turnaround strategies to enhance shareholder value [1]

Core Insights - Regionals Financial (NYSE: RF) shares have experienced a mixed performance over the past year, with a loss of approximately 3% in value [1] - Following the company's solid results report, shares traded slightly higher, which may help to stabilize investor sentiment [1] Company Performance - The company reported solid results, contributing to a slight increase in share price on the reporting day [1] - The overall performance of the shares over the past year indicates volatility, with a minor decline in value [1]

Core Insights - The article discusses the importance of enabling Javascript and cookies in browsers to ensure proper functionality and access to content [1] Group 1 - The article highlights that users may face access issues if they have an ad-blocker enabled, suggesting the need to disable it for a better experience [1]

Core Insights - Regions Financial Corporation (RF) reported third-quarter 2025 adjusted earnings per share of 63 cents, exceeding the Zacks Consensus Estimate of 60 cents and up from 57 cents in the same quarter last year [1][9] - The stock price of RF increased by 1.8% in early market trading following the earnings announcement [1] Financial Performance - Total quarterly revenues reached $1.92 billion, matching the Zacks Consensus Estimate and reflecting a 7% increase year over year [3][9] - Net interest income (NII) was $1.26 billion, up 3.2% from the previous year, with the net interest margin rising by 5 basis points to 3.59% [3] - Non-interest income increased by 15.2% year over year to $659 million [3] Expenses and Efficiency - Non-interest expenses rose by 3.2% year over year to $1.1 billion, while adjusted non-interest expenses increased by 3.9% to $1.11 billion [4] - The efficiency ratio improved to 57.2% from 59.3% in the prior-year quarter, indicating enhanced profitability [4] Loan and Deposit Trends - Total loans slightly decreased to $96.1 billion, and total deposits were $130.3 billion, showing a marginal decline from the previous quarter [5] Credit Quality - Non-performing assets as a percentage of loans decreased to 0.82% from 0.87% year over year, and non-performing loans as a percentage of net loans fell to 0.79% from 0.85% [6] - A provision for credit losses of $105 million was recorded, down 7.1% from the previous year [6] Capital Ratios - As of September 30, 2025, the Common Equity Tier 1 ratio was 10.8%, and the Tier 1 capital ratio was 11.9%, compared to 10.6% and 12% in the prior year [8] Share Repurchase - In the reported quarter, the company repurchased 10 million shares for $251 million [10] Market Position - Regions Financial's strong presence in key Southeastern and Midwest markets positions the bank to benefit from regional economic growth, supporting future loan expansion [11]