Exhibit 99.2
Regions Financial Corporation and Subsidiaries
Financial Supplement (unaudited)
Fourth Quarter 2022
Regions Financial Corporation and Subsidiaries
Financial Supplement (unaudited) to Fourth Quarter 2022 Earnings Release
Table of Contents
Page | |
Financial Highlights | |
Selected Ratios and Other Information* | |
Consolidated Balance Sheets | |
Loans | 4 |
Deposits | 6 |
Consolidated Statements of Income | 8 |
Consolidated Average Daily Balances and Yield / Rate Analysis | 10 |
Pre-TaxPre-Provision Income ("PPI")* and Adjusted PPI* | 13 |
Non-Interest Income, Mortgage Income, Wealth Management Income and Capital Markets Income | 14 |
Non-Interest Expense | 16 |
Reconciliation of GAAP Financial Measures to non-GAAP Financial Measures* | |
Adjusted Efficiency Ratios, Adjusted Fee Income Ratios, Adjusted Non-Interest Income / Expense, Adjusted Operating Leverage | 17 |
Ratios, Return Ratios, and Tangible Common Ratios | |
Credit Quality | |
Allowance for Credit Losses, Net Charge-Offs and Related Ratios, Adjusted Net Charge-Offs and Related Ratios | 21 |
Non-Accrual Loans (excludes loans held for sale), Early and Late Stage Delinquencies | 23 |
Forward-Looking Statements | 24 |
*Use of non-GAAP financial measures
Regions believes that presentation of non-GAAP financial measures provides a meaningful basis for period to period comparisons, which management believes will assist investors in assessing the performance of the Company on the same basis as that applied by management. Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied and are not audited. Although non-GAAP financial measures are frequently used by stakeholders in the evaluation of a company, they have limitations as analytical tools, and should not be considered in isolation, or as a substitute for analyses of results as reported under GAAP. In particular, a measure of earnings that excludes certain adjustments does not represent the amount that effectively accrues directly to shareholders. Additionally, our non-GAAP financial measures may not be comparable to similar non-GAAP financial measures used by other companies.
Regions Financial Corporation and Subsidiaries
Financial Supplement (unaudited) to Fourth Quarter 2022 Earnings Release
Financial Highlights
Quarter Ended | ||||||||||||||||
($ amounts in millions, except per share data) | 12/31/2022 | 9/30/2022 | 6/30/2022 | 3/31/2022 | 12/31/2021 | |||||||||||
Earnings Summary | ||||||||||||||||
Interest income - taxable equivalent | $ | 1,565 | $ | 1,355 | $ | 1,166 | $ | 1,063 | $ | 1,066 | ||||||
Interest expense - taxable equivalent | 151 | 81 | 47 | 37 | 37 | |||||||||||
Net interest income - taxable equivalent | 1,414 | 1,274 | 1,119 | 1,026 | 1,029 | |||||||||||
Less: Taxable-equivalent adjustment | 13 | 12 | 11 | 11 | 10 | |||||||||||
Net interest income | 1,401 | 1,262 | 1,108 | 1,015 | 1,019 | |||||||||||
Provision for (benefit from) credit losses | 112 | 135 | 60 | (36) | 110 | |||||||||||
Net interest income after provision for (benefit from) credit losses | 1,289 | 1,127 | 1,048 | 1,051 | 909 | |||||||||||
Non-interest income | 600 | 605 | 640 | 584 | 615 | |||||||||||
Non-interest expense | 1,017 | 1,170 | 948 | 933 | 983 | |||||||||||
Income before income taxes | 872 | 562 | 740 | 702 | 541 | |||||||||||
Income tax expense | 187 | 133 | 157 | 154 | 103 | |||||||||||
Net income | $ | 685 | $ | 429 | $ | 583 | $ | 548 | $ | 438 | ||||||
Net income available to common shareholders | ||||||||||||||||
$ | 660 | $ | 404 | $ | 558 | $ | 524 | $ | 414 | |||||||
Weighted-average shares outstanding-during quarter: | ||||||||||||||||
Basic | 934 | 934 | 934 | 938 | 949 | |||||||||||
Diluted | 941 | 940 | 940 | 947 | 958 | |||||||||||
Earnings per common share - basic | $ | 0.71 | $ | 0.43 | $ | 0.60 | $ | 0.56 | $ | 0.44 | ||||||
Earnings per common share - diluted | $ | 0.70 | $ | 0.43 | $ | 0.59 | $ | 0.55 | $ | 0.43 | ||||||
Balance Sheet Summary | ||||||||||||||||
At quarter-end | ||||||||||||||||
Loans, net of unearned income | $ | 97,009 | $ | 94,711 | $ | 93,458 | $ | 89,335 | $ | 87,784 | ||||||
Allowance for credit losses | (1,582) | (1,539) | (1,514) | (1,492) | (1,574) | |||||||||||
Assets | 155,220 | 157,798 | 160,908 | 164,082 | 162,938 | |||||||||||
Deposits | 131,743 | 135,378 | 138,263 | 141,022 | 139,072 | |||||||||||
Long-term borrowings | 2,284 | 2,274 | 2,319 | 2,343 | 2,407 | |||||||||||
Shareholders' equity | 15,947 | 15,173 | 16,507 | 16,982 | 18,326 | |||||||||||
Average balances | ||||||||||||||||
Loans, net of unearned income | $ | 95,752 | $ | 94,684 | $ | 90,764 | $ | 87,814 | $ | 86,548 | ||||||
Assets | 155,668 | 158,422 | 161,826 | 161,728 | 160,051 | |||||||||||
Deposits | 133,007 | 135,518 | 139,592 | 138,734 | 136,682 | |||||||||||
Long-term borrowings | 2,275 | 2,319 | 2,328 | 2,390 | 2,433 | |||||||||||
Shareholders' equity | 15,442 | 16,473 | 16,404 | 17,717 | 18,308 |
1
Regions Financial Corporation and Subsidiaries
Financial Supplement (unaudited) to Fourth Quarter 2022 Earnings Release
Selected Ratios and Other Information
As of and for Quarter Ended | |||||||||||||||||
12/31/2022 | 9/30/2022 | 6/30/2022 | 3/31/2022 | 12/31/2021 | |||||||||||||
Return on average assets* (1) | 1.75 % | 1.07 % | 1.44 % | 1.38 % | 1.09 % | ||||||||||||
Return on average common shareholders' equity* | 19.01 % | 10.82 % | 15.18 % | 13.23 % | 9.86 % | ||||||||||||
Return on average tangible common shareholders' equity (non-GAAP)*(2) | 33.20 % | 18.02 % | 25.40 % | 21.00 % | 15.07 % | ||||||||||||
Return on average tangible common shareholders' equity excluding AOCI (non-GAAP)*(2) | 22.91 % | 14.42 % | 20.85 % | 20.25 % | 15.56 % | ||||||||||||
Efficiency ratio | 50.5 % | 62.3 % | 53.9 % | 57.9 % | 59.8 % | ||||||||||||
Adjusted efficiency ratio (non-GAAP)(2) | 51.6 % | 52.6 % | 54.2 % | 57.9 % | 58.8 % | ||||||||||||
Dividend payout ratio (3) | 28.3 % | 46.2 % | 28.5 % | 30.3 % | 38.8 % | ||||||||||||
Common book value per share | $ | 15.29 | $ | 14.46 | $ | 15.89 | $ | 16.42 | $ | 17.69 | |||||||
Tangible common book value per share (non-GAAP)(2) | $ | 9.00 | $ | 8.15 | $ | 9.55 | $ | 10.06 | $ | 11.38 | |||||||
Total equity to total assets | 10.27 % | 9.62 % | 10.26 % | 10.35 % | 11.25 % | ||||||||||||
Tangible common shareholders' equity to tangible assets (non-GAAP)(2) | 5.63 % | 5.01 % | 5.76 % | 5.93 % | 6.83 % | ||||||||||||
Common equity (4) | $ | 12,066 | $ | 11,554 | $ | 11,298 | $ | 10,912 | $ | 10,844 | |||||||
Total risk-weighted assets (4) | $ | 125,702 | $ | 124,395 | $ | 122,154 | $ | 116,182 | $ | 113,343 | |||||||
Common equity Tier 1 ratio (4) | 9.6 % | 9.3 % | 9.2 % | 9.4 % | 9.6 % | ||||||||||||
Tier 1 capital ratio (4) | 10.9 % | 10.6 % | 10.6 % | 10.8 % | 11.0 % | ||||||||||||
Total risk-based capital ratio (4) | 12.5 % | 12.3 % | 12.3 % | 12.5 % | 12.7 % | ||||||||||||
Leverage ratio (4) | 8.9 % | 8.5 % | 8.2 % | 8.0 % | 8.1 % | ||||||||||||
Effective tax rate | 21.5 % | 23.7 % | 21.2 % | 21.9 % | 18.9 % | ||||||||||||
Allowance for credit losses as a percentage of loans, net of unearned income | 1.63 % | 1.63 % | 1.62 % | 1.67 % | 1.79 % | ||||||||||||
Allowance for credit losses to non-performing loans, excluding loans held for sale | 317 % | 311 % | 410 % | 446 % | 349 % | ||||||||||||
Net interest margin (FTE)* | 3.99 % | 3.53 % | 3.06 % | 2.85 % | 2.83 % | ||||||||||||
Loans, net of unearned income, to total deposits | 73.6 % | 70.0 % | 67.6 % | 63.3 % | 63.1 % | ||||||||||||
Net charge-offs as a percentage of average loans* | 0.29 % | 0.46 % | 0.17 % | 0.21 % | 0.20 % | ||||||||||||
Adjusted net charge-offs as a percentage of average loans (non-GAAP) * (2) | 0.29 % | 0.19 % | 0.17 % | 0.21 % | 0.20 % | ||||||||||||
Non-performing loans, excluding loans held for sale, as a percentage of loans | 0.52 % | 0.52 % | 0.39 % | 0.37 % | 0.51 % | ||||||||||||
Non-performing assets (excluding loans 90 days past due) as a percentage of loans, foreclosed properties, and | 0.53 % | 0.54 % | 0.41 % | 0.39 % | 0.54 % | ||||||||||||
non-performing loans held for sale | |||||||||||||||||
Non-performing assets (including loans 90 days past due) as a percentage of loans, foreclosed properties, and | 0.75 % | 0.65 % | 0.52 % | 0.53 % | 0.70 % | ||||||||||||
non-performing loans held for sale (5) | |||||||||||||||||
Associate headcount-full-time equivalent (6) | 20,073 | 19,950 | 19,673 | 19,723 | 19,626 | ||||||||||||
ATMs | 2,039 | 2,043 | 2,048 | 2,054 | 2,068 | ||||||||||||
Branch Statistics | |||||||||||||||||
Full service | 1,252 | 1,259 | 1,259 | 1,259 | 1,268 | ||||||||||||
Drive-through/transaction service only | 34 | 35 | 35 | 35 | 34 | ||||||||||||
Total branch outlets | 1,286 | 1,294 | 1,294 | 1,294 | 1,302 | ||||||||||||
Year Ended December 31 | |||||||||||||||||
2022 | 2021 | ||||||||||||||||
Return on average assets (1) | 1.41 % | 1.63 % | |||||||||||||||
Return on average common shareholders' equity | 14.46 % | 14.51 % | |||||||||||||||
Return on average tangible common shareholders' equity (non-GAAP)(2) | 24.05 % | 21.42 % | |||||||||||||||
Return on average tangible common shareholders' equity excluding AOCI (non-GAAP)(2) | 19.61 % | 22.85 % | |||||||||||||||
Efficiency ratio | 56.0 % | 57.8 % | |||||||||||||||
Adjusted efficiency ratio (non-GAAP)(2) | 53.9 % | 57.3 % | |||||||||||||||
Dividend payout ratio (3) | 32.2 % | 25.8 % | |||||||||||||||
Effective tax rate | 22.0 % | 21.6 % | |||||||||||||||
Net interest margin (FTE) | 3.36 % | 2.85 % | |||||||||||||||
Net charge-offs as a percentage of average loans | 0.29 % | 0.24 % | |||||||||||||||
Adjusted net charge-offs as a percentage of average loans (non-GAAP)(2) | 0.22 % | 0.24 % |
*Annualized
- Calculated by dividing net income by average assets.
- See reconciliation of GAAP to non-GAAP Financial Measures that begin on pages 13, 17, 18, 19and 21.
- Dividend payout ratio reflects dividends declared within the applicable period.
- 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.
- Excludes guaranteed residential first mortgages that are 90+ days past due and still accruing. Refer to the footnotes on page 23for amounts related to these loans.
- Associate headcount for the fourth quarter of 2021 includes approximately 620 associates from acquisitions closed in the quarter.
2
Regions Financial Corporation and Subsidiaries
Financial Supplement (unaudited) to Fourth Quarter 2022 Earnings Release
Consolidated Balance Sheets
As of | ||||||||||||||
($ amounts in millions) | 12/31/2022 | 9/30/2022 | 6/30/2022 | 3/31/2022 | 12/31/2021 | |||||||||
Assets: | ||||||||||||||
Cash and due from banks | $ | 1,997 | $ | 2,117 | $ | 2,301 | $ | 2,227 | $ | 1,350 | ||||
Interest-bearing deposits in other banks | 9,230 | 13,549 | 18,199 | 25,718 | 28,061 | |||||||||
Debt securities held to maturity | 801 | 817 | 836 | 864 | 899 | |||||||||
Debt securities available for sale | 27,933 | 28,126 | 29,052 | 29,384 | 28,481 | |||||||||
Loans held for sale | 354 | 720 | 612 | 694 | 1,003 | |||||||||
Loans, net of unearned income | 97,009 | 94,711 | 93,458 | 89,335 | 87,784 | |||||||||
Allowance for loan losses | (1,464) | (1,418) | (1,425) | (1,416) | (1,479) | |||||||||
Net loans | 95,545 | 93,293 | 92,033 | 87,919 | 86,305 | |||||||||
Other earning assets | 1,308 | 1,341 | 1,428 | 1,504 | 1,187 | |||||||||
Premises and equipment, net | 1,718 | 1,744 | 1,768 | 1,794 | 1,814 | |||||||||
Interest receivable | 511 | 424 | 365 | 329 | 319 | |||||||||
Goodwill | 5,733 | 5,739 | 5,749 | 5,748 | 5,744 | |||||||||
Residential mortgage servicing rights at fair value (MSRs) | 812 | 809 | 770 | 542 | 418 | |||||||||
Other identifiable intangible assets, net | 249 | 266 | 279 | 292 | 305 | |||||||||
Other assets | 9,029 | 8,853 | 7,516 | 7,067 | 7,052 | |||||||||
Total assets | $ | 155,220 | $ | 157,798 | $ | 160,908 | $ | 164,082 | $ | 162,938 | ||||
Liabilities and Equity: | ||||||||||||||
Deposits: | ||||||||||||||
Non-interest-bearing | $ | 51,348 | $ | 54,996 | $ | 58,510 | $ | 59,590 | $ | 58,369 | ||||
Interest-bearing | 80,395 | 80,382 | 79,753 | 81,432 | 80,703 | |||||||||
Total deposits | 131,743 | 135,378 | 138,263 | 141,022 | 139,072 | |||||||||
Borrowed funds: | ||||||||||||||
Long-term borrowings | 2,284 | 2,274 | 2,319 | 2,343 | 2,407 | |||||||||
Other liabilities | 5,242 | 4,973 | 3,819 | 3,735 | 3,133 | |||||||||
Total liabilities | 139,269 | 142,625 | 144,401 | 147,100 | 144,612 | |||||||||
Equity: | ||||||||||||||
Preferred stock, non-cumulative perpetual | 1,659 | 1,659 | 1,659 | 1,659 | 1,659 | |||||||||
Common stock | 10 | 10 | 10 | 10 | 10 | |||||||||
Additional paid-in capital | 11,988 | 11,976 | 11,962 | 11,983 | 12,189 | |||||||||
Retained earnings | 7,004 | 6,531 | 6,314 | 5,915 | 5,550 | |||||||||
Treasury stock, at cost | (1,371) | (1,371) | (1,371) | (1,371) | (1,371) | |||||||||
Accumulated other comprehensive income, net | (3,343) | (3,632) | (2,067) | (1,214) | 289 | |||||||||
Total shareholders' equity | 15,947 | 15,173 | 16,507 | 16,982 | 18,326 | |||||||||
Noncontrolling interest | 4 | - | - | - | - | |||||||||
Total equity | 15,951 | 15,173 | 16,507 | 16,982 | 18,326 | |||||||||
Total liabilities and equity | $ | 155,220 | $ | 157,798 | $ | 160,908 | $ | 164,082 | $ | 162,938 | ||||
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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.