Exhibit 99.3
4th Quarter Earnings Conference Call
January 20, 2023
2022 overview
Continue to generate consistent, sustainable long-term performance
Key Performance Metrics
Net Income Available to Common Shareholders
Diluted Earnings
Per Share
Total Revenue
Non-Interest Expense
Pre-TaxPre-Provision
Income(1)
Efficiency Ratio
Net-Charge Offs
4Q22 FY22
Reported Adjusted(1) Reported Adjusted(1)
$660M | $2.1B | ||
$0.70 | $2.28 | ||
$2.0B | $2.0B | $7.2B | $7.2B |
$1.0B | $1.0B | $4.1B | $3.9B |
$984M | $939M | $3.1B | $3.3B |
50.5% | 51.6% | 56.0% | 53.9% |
0.29% | 0.29% | 0.29% | 0.22% |
Highlights
- Both reported and adjusted FY PPI(1) represent highest level on record
- 4Q NII grew to a record $1.4B
- Reported 4Q NIM increased 46 bps to 3.99%, highest level in last 15 years
- Implemented additional OD policy enhancements benefiting customers
- Asset sensitive profile supports strong QoQ margin expansion
- Produced robust YTD average Commercial and Consumer loan growth
- Continued focus on disciplined capital allocation and risk-adjusted returns
- Top quartile returns on ROATCE and 1 & 3 year TSR(2)
- Non-GAAP,see appendix for reconciliation. (2) Peer banks include: CFG, CMA, FHN, FITB, HBAN, HWC, KEY, MTB, SNV, PNC, TFC, USB, and ZION.
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Investments in our businesses
Investments in talent, technology and strategic acquisitions continue to pay off
CORPORATE
CONSUMER
WEALTH
Treasury Management client base grew 11.5% YoY(1); 2022 Revenue grew 10% achieving new record
Ascentium Capital experienced record 2022 loan production, up 25% YoY
Sabal closed +$730M loans in 2022,
FNMA small balance origination
volume doubled
Migrated iTreasury to modern platform & launched Real-TimePayment send capabilities
Top talent acquisition in key
areas: SBA, Franchise, New Markets
Tax Credits & Equip. Finance
Enhanced origination productivity: BUILT, Blooma, & nCino; Continued expansion of Regions Client IQ (RCLIQ)
Mobile users increased
5.7% YoY
Industry leading Customer Satisfaction and primacy levels
EnerBank generating high quality loans; synergy work ongoing
Significantly improved closing time on home equity products
Completed $13B UPB MSRs bulk purchases & continue to purchase MSRs on a flow basis
Upgraded mortgage contact
relationship management
platform
Record 2022 non-
interest income
reflecting growth of
9.2% vs PY
Growth in revenue per quality
relationship(2) of 14.5%
Better use of data
contributing to strong PWM
retention rate(3) of 93%
Investment Services
average monthly revenue
up 17%, over PY
40% of all PWM Clients have a Wealth Plan, allowing us to help them focus on their unique goals
Strong Client Satisfaction and Associate Engagement scores
- October 2022 vs 2021. (2) Quality Relationships defined as having a cumulative $500K in loans, deposits and IM&T accounts, revenue per Quality Relationship measured over TTM, Nov '22 vs Dec '21. (3) Retention of IM&T revenue vs baseline.
3
Loan growth continues
Loans and leases | 1% | ||
(Average, $ in billions) | |||
$86.6 | $94.6 | $95.8 | |
31.5 | 32.2 | 32.0 | |
55.1 | 62.4 | 63.8 | |
4Q21 | 3Q22 | 4Q22 | |
(Ending, $ in billions) | 2% | ||
$87.7 | $94.7 | $97.0 | |
31.4 | 31.6 | 32.3 | |
56.3 | 63.1 | 64.7 | |
4Q21 | 3Q22 | 4Q22 | |
Consumer loans | Business loans |
QoQ highlights & outlook
- Avg business loans increased 2% reflecting high-quality,broad-based growth across financial services, wholesale durables, information services and multi-family
- Line commitments increased ~$800M and utilization increased to 43.4%
- Expect pace of loan growth to slow over time as capital market conditions become more favorable
- PPP loans ended the quarter at ~$135M
- Avg consumer loans declined 1% but grew 2% on an ending basis; Growth in avg mortgage, EnerBank and credit card offset by consumer loan sale in 3Q and continued run-off of exit portfolios
- Other Consumer includes ~14% growth in avg EnerBank loans
- Expect 2023 reported ending loan balances to grow ~4% compared to 2022
4
Deposits
Normalization occurring as expected
Deposits by Segment
(Average, $ in billions) | |||
$136.7 | $135.5 | $133.0 | |
3.0 | $2.3 | 2.2 | |
10.1 | $9.5 | 9.0 | |
42.7 | $39.0 | 38.2 | |
80.9 | $84.7 | 83.6 | |
4Q21 | 3Q22 | 4Q22 | |
(Ending, $ in billions) | |||
$139.1 | $135.4 | $131.7 | |
2.7 | |||
2.2 | |||
10.9 | 2.0 | ||
9.4 | |||
9.1 | |||
42.7 | 38.3 | 37.1 | |
82.8 | 85.5 | 83.5 | |
4Q21 | 3Q22 | 4Q22 |
QoQ highlights & outlook
- Avg total consumer balances modestly lower, driven by higher-balance customers seeking investment alternatives
- Avg corporate deposits down 2% reflecting more evidence of normalization; Business clients continued to optimize liquidity position, remixing away from NIB to other options both on-balance sheet & those managed through our Treasury Mgt platform off-balance sheet
- Ending deposits declined $7.3B YoY, in line with previous 2022 expectations
-
Total ending deposits expected to decline
$3-5B over 1H23; considers impact of Fed bal. sheet normalization, seasonal trends, & late- cycle rate seeking behavior; 2H23 expected to be stable/modest growth - Deliberate approach to managing liquidity allows for expected deposit normalization & growth in the balance sheet without need for material wholesale borrowings in near-term
Consumer Bank | Corporate Bank |
Wealth Mgt | Other(1) |
- Other deposits represent non-customer balances primarily consisting of EnerBank brokered deposits. (2) See slide 17 for an analysis of surge deposit components.
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Regions Financial Corporation published this content on 20 January 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 January 2023 11:10:09 UTC.