Adjustments for Non-Cash Items [USD, M]

Stock-Based Compensation [USD, M]

Changes in Working Capital [USD, M]

Capital Expenditures (CapEx) [USD, M]

Proceeds from / Repayments of Debt [USD, M]

Share Repurchases [USD, M]

Dividend Payments [USD, M]

Net Change in Cash [USD, M]

484c21fc2d343c5f10125b4ba2e0714e809cdcc9f4f5478af53c772fd72b1c89

| Metric (Unit) | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|---------------|---------|---------|---------|---------|---------|---------|---------|---------|
| **Consumer Bank** (Non-Interest Income) | **$1,165 million**  **[0001281761-23-000012_rf-20221231.htm:233]**  | **$258 million**  **[0001281761-23-000032_rf-20230331.htm:48]**  | N/A | **47% of fee revenue**  **[0001281761-23-000041_a3q23investormeetingmate.htm:8]**  | **$457 million**  **[0001281761-24-000010_rf-20231231.htm:230]**  | **$257 million**  **[0001281761-24-000032_rf-20240331.htm:49]**  | N/A | **42% of fee revenue**  **[0001281761-24-000099_a4q24investormeetingmate.htm:10]**  |
| **Corporate Bank** (Non-Interest Income) | **$803 million**  **[0001281761-23-000012_rf-20221231.htm:233]**  | **$161 million**  **[0001281761-23-000032_rf-20230331.htm:48]**  | N/A | **33% of fee revenue**  **[0001281761-23-000041_a3q23investormeetingmate.htm:8]**  | **$370 million**  **[0001281761-24-000010_rf-20231231.htm:230]**  | **$218 million**  **[0001281761-24-000032_rf-20240331.htm:49]**  | N/A | **38% of fee revenue**  **[0001281761-24-000099_a4q24investormeetingmate.htm:10]**  |
| **Wealth Management** (Non-Interest Income) | **$426 million**  **[0001281761-23-000012_rf-20221231.htm:233]**  | **$114 million**  **[0001281761-23-000032_rf-20230331.htm:48]**  | N/A | **20% of fee revenue**  **[0001281761-23-000041_a3q23investormeetingmate.htm:8]**  | **$2 million**  **[0001281761-24-000010_rf-20231231.htm:230]**  | **$120 million**  **[0001281761-24-000032_rf-20240331.htm:49]**  | N/A | **20% of fee revenue**  **[0001281761-24-000099_a4q24investormeetingmate.htm:10]**  |
| **Other Segment** (Non-Interest Income) | **$35 million**  **[0001281761-23-000012_rf-20221231.htm:233]**  | N/A | N/A | N/A | **$534 million**  **[0001281761-24-000010_rf-20231231.htm:230]**  | **($32 million)**  **[0001281761-24-000032_rf-20240331.htm:49]**  | N/A | N/A |
| **Total Non-Interest Income** | **$2,429 million**  **[0001281761-23-000012_rf-20221231.htm:233]**  | **$534 million**  **[0001281761-23-000032_rf-20230331.htm:48]**  | **$576 million**  **[0001281761-23-000041_a3q23investormeetingmate.htm:8]**  | **$566 million**  **[0001281761-23-000048_rf-2023930xexhibit991.htm:1]**  | **$580 million**  **[0001281761-24-000003_rf-20231231xexhibit991.htm:1]**  | **$563 million**  **[0001281761-24-000032_rf-20240331.htm:49]**  | **$545 million**  **[0001281761-24-000062_rf-20240630.htm:64]**  | **$572 million**  **[0001281761-24-000099_a4q24investormeetingmate.htm:10]**  |

d1379a7419d19005634d9ab5387cb0d412e093a3d191caed9e7d08fa468976f5

Regions Financial Corporation (RF) is a financial services company that operates through three primary business segments: Corporate Bank, Consumer Bank, and Wealth Management, with additional activities categorized under "Other" **[0001281761-24-000010_rf-20231231.htm:225]** **[0001281761-24-000010_rf-20231231.htm:88]** **[0001281761-24-000032_rf-20240331.htm:49]** **[0001281761-24-000097_rf-20240930.htm:68]**. The company provides a range of financial products and services, including commercial and industrial lending, consumer banking products, and wealth management solutions **[0001281761-24-000010_rf-20231231.htm:225]**. Regions Financial Corporation has a diversified revenue stream, with significant contributions from non-interest income sources such as service charges, card and ATM fees, and investment management **[0001281761-24-000010_rf-20231231.htm:88]** **[0001281761-24-000099_a4q24investormeetingmate.htm:10]**.

1. **Consumer Bank** - Offers consumer banking products and services through its branch network, including residential mortgages, home equity lines and loans, consumer credit cards, and other consumer loans, along with corresponding deposit relationships **[0001281761-24-000010_rf-20231231.htm:225]**.
2. **Corporate Bank** - Provides commercial banking functions such as commercial and industrial lending, commercial real estate, investor real estate lending, equipment lease financing, and capital markets activities, serving corporate, middle market, and commercial real estate developers and investors **[0001281761-24-000010_rf-20231231.htm:225]**.
3. **Wealth Management** - Delivers solutions for individuals, businesses, governmental institutions, and non-profit entities, including credit-related products, trust and investment management, asset management, retirement and savings solutions, and estate planning **[0001281761-24-000010_rf-20231231.htm:225]**.

7956b135f3e41406f52c6b4a4845b7d10b663018c7d8b6d8eac7974f18d64f96

Total Revenue [USD, Millions]

Cost of Goods Sold (COGS) [USD, Millions]

SG&A [USD, Millions]

R&D [USD, Millions]

D&A [USD, Millions]

Interest Expense [USD, Millions]

Operating Income (EBIT) [USD, Millions]

Net Income [USD, Millions]

EPS - Basic [USD, Per Share]

EPS - Diluted [USD, Per Share]

20479f23107762237c0047b8c36d7bdde711f88db0037cac682c91fe927f1ff5

| Metric (Unit) | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|---------------|---------|---------|---------|---------|---------|---------|---------|---------|
| Carrying value of residential MSRs ($ million) | 812  **[0001281761-23-000012_rf-20221231.htm:195]**  | 790  **[0001281761-23-000032_rf-20230331.htm:30]**  | 801  **[0001281761-23-000045_rf-20230630.htm:35]**  | 932  **[0001281761-23-000057_rf-20230930.htm:36]**  | 906  **[0001281761-24-000010_rf-20231231.htm:159]**  | 1,026  **[0001281761-24-000032_rf-20240331.htm:31]**  | 1,020  **[0001281761-24-000062_rf-20240630.htm:34]**  | 971  **[0001281761-24-000097_rf-20240930.htm:38]**  |
| Unpaid principal balance of residential MSRs ($ million) | 54,603  **[0001281761-23-000012_rf-20221231.htm:195]**  | 54,557  **[0001281761-23-000032_rf-20230331.htm:30]**  | 55,277  **[0001281761-23-000045_rf-20230630.htm:35]**  | 61,452  **[0001281761-23-000057_rf-20230930.htm:36]**  | 62,059  **[0001281761-24-000010_rf-20231231.htm:194]**  | 69,708  **[0001281761-24-000032_rf-20240331.htm:31]**  | 69,055  **[0001281761-24-000062_rf-20240630.htm:34]**  | 68,361  **[0001281761-24-000097_rf-20240930.htm:38]**  |
| Weighted-average CPR (%) | 7.4  **[0001281761-23-000012_rf-20221231.htm:195]**  | 7.7  **[0001281761-23-000032_rf-20230331.htm:30]**  | 8.1  **[0001281761-23-000045_rf-20230630.htm:35]**  | 7.7  **[0001281761-23-000057_rf-20230930.htm:36]**  | 8.2  **[0001281761-24-000010_rf-20231231.htm:194]**  | 8.2  **[0001281761-24-000032_rf-20240331.htm:31]**  | 8.2  **[0001281761-24-000062_rf-20240630.htm:34]**  | 9.0  **[0001281761-24-000097_rf-20240930.htm:38]**  |
| Option-adjusted spread (basis points) | 507  **[0001281761-23-000012_rf-20221231.htm:195]**  | 546  **[0001281761-23-000032_rf-20230331.htm:30]**  | 475  **[0001281761-23-000045_rf-20230630.htm:35]**  | 483  **[0001281761-23-000057_rf-20230930.htm:36]**  | 482  **[0001281761-24-000010_rf-20231231.htm:194]**  | 486  **[0001281761-24-000032_rf-20240331.htm:31]**  | 486  **[0001281761-24-000062_rf-20240630.htm:34]**  | 496  **[0001281761-24-000097_rf-20240930.htm:38]**  |
| Weighted-average coupon interest rate (%) | 3.6  **[0001281761-23-000012_rf-20221231.htm:195]**  | 3.6  **[0001281761-23-000032_rf-20230331.htm:30]**  | 3.7  **[0001281761-23-000045_rf-20230630.htm:35]**  | 3.7  **[0001281761-23-000057_rf-20230930.htm:36]**  | 3.8  **[0001281761-24-000010_rf-20231231.htm:194]**  | 3.7  **[0001281761-24-000032_rf-20240331.htm:31]**  | 3.8  **[0001281761-24-000062_rf-20240630.htm:34]**  | 3.8  **[0001281761-24-000097_rf-20240930.htm:38]**  |
| Weighted-average remaining maturity (months) | 308  **[0001281761-23-000012_rf-20221231.htm:195]**  | 306  **[0001281761-23-000032_rf-20230331.htm:30]**  | 306  **[0001281761-23-000045_rf-20230630.htm:35]**  | 303  **[0001281761-23-000057_rf-20230930.htm:36]**  | 302  **[0001281761-24-000010_rf-20231231.htm:194]**  | 302  **[0001281761-24-000032_rf-20240331.htm:31]**  | 300  **[0001281761-24-000062_rf-20240630.htm:34]**  | 298  **[0001281761-24-000097_rf-20240930.htm:38]**  |
| Weighted-average servicing fee (basis points) | 27.1  **[0001281761-23-000012_rf-20221231.htm:195]**  | 27.1  **[0001281761-23-000032_rf-20230331.htm:30]**  | 27.2  **[0001281761-23-000045_rf-20230630.htm:35]**  | 27.3  **[0001281761-23-000057_rf-20230930.htm:36]**  | 27.4  **[0001281761-24-000010_rf-20231231.htm:194]**  | 27.1  **[0001281761-24-000032_rf-20240331.htm:31]**  | 27.2  **[0001281761-24-000062_rf-20240630.htm:34]**  | 27.3  **[0001281761-24-000097_rf-20240930.htm:38]**  |
| Servicing related fees from DUS program ($ million) | 24  **[0001281761-23-000012_rf-20221231.htm:197]**  | 5  **[0001281761-23-000032_rf-20230331.htm:31]**  | 6  **[0001281761-23-000045_rf-20230630.htm:37]**  | 5  **[0001281761-23-000057_rf-20230930.htm:38]**  | 23  **[0001281761-24-000010_rf-20231231.htm:195]**  | 5  **[0001281761-24-000032_rf-20240331.htm:32]**  | 8  **[0001281761-24-000062_rf-20240630.htm:36]**  | 6  **[0001281761-24-000097_rf-20240930.htm:40]**  |
| Net loan charge-offs (recoveries) as a % of average loans, annualized (%) | N/A | N/A | N/A | 0.36  **[0001281761-23-000057_rf-20230930.htm:78]**  | N/A | N/A | N/A | 0.47  **[0001281761-24-000097_rf-20240930.htm:80]**  |
| Unused commitments to extend credit ($ million) | 65,460  **[0001281761-23-000012_rf-20221231.htm:234]**  | 65,097  **[0001281761-23-000032_rf-20230331.htm:49]**  | 64,784  **[0001281761-23-000045_rf-20230630.htm:59]**  | 64,610  **[0001281761-23-000057_rf-20230930.htm:60]**  | 63,631  **[0001281761-24-000010_rf-20231231.htm:227]**  | 63,676  **[0001281761-24-000032_rf-20240331.htm:50]**  | 63,746  **[0001281761-24-000062_rf-20240630.htm:58]**  | 64,642  **[0001281761-24-000097_rf-20240930.htm:63]**  |
| Standby letters of credit ($ million) | 1,962  **[0001281761-23-000012_rf-20221231.htm:234]**  | 1,886  **[0001281761-23-000032_rf-20230331.htm:49]**  | 1,882  **[0001281761-23-000045_rf-20230630.htm:59]**  | 1,934  **[0001281761-23-000057_rf-20230930.htm:60]**  | 1,997  **[0001281761-24-000010_rf-20231231.htm:227]**  | 2,082  **[0001281761-24-000032_rf-20240331.htm:50]**  | 2,109  **[0001281761-24-000062_rf-20240630.htm:58]**  | 2,094  **[0001281761-24-000097_rf-20240930.htm:63]**  |
| Commercial letters of credit ($ million) | 75  **[0001281761-23-000012_rf-20221231.htm:234]**  | 54  **[0001281761-23-000032_rf-20230331.htm:49]**  | 19  **[0001281761-23-000045_rf-20230630.htm:59]**  | 75  **[0001281761-23-000057_rf-20230930.htm:60]**  | 78  **[0001281761-24-000010_rf-20231231.htm:227]**  | 78  **[0001281761-24-000032_rf-20240331.htm:50]**  | 61  **[0001281761-24-000062_rf-20240630.htm:58]**  | 62  **[0001281761-24-000097_rf-20240930.htm:63]**  |
| Liabilities associated with standby letters of credit ($ million) | 35  **[0001281761-23-000012_rf-20221231.htm:234]**  | 32  **[0001281761-23-000032_rf-20230331.htm:49]**  | 23  **[0001281761-23-000045_rf-20230630.htm:59]**  | 27  **[0001281761-23-000057_rf-20230930.htm:60]**  | 32  **[0001281761-24-000010_rf-20231231.htm:227]**  | 31  **[0001281761-24-000032_rf-20240331.htm:50]**  | 32  **[0001281761-24-000062_rf-20240630.htm:58]**  | 33  **[0001281761-24-000097_rf-20240930.htm:63]**  |
| Assets associated with standby letters of credit ($ million) | 37  **[0001281761-23-000012_rf-20221231.htm:234]**  | 33  **[0001281761-23-000032_rf-20230331.htm:49]**  | 26  **[0001281761-23-000045_rf-20230630.htm:59]**  | 29  **[0001281761-23-000057_rf-20230930.htm:60]**  | 34  **[0001281761-24-000010_rf-20231231.htm:227]**  | 33  **[0001281761-24-000032_rf-20240331.htm:50]**  | 34  **[0001281761-24-000062_rf-20240630.htm:58]**  | 34  **[0001281761-24-000097_rf-20240930.htm:63]**  |
| Reserve for unfunded credit commitments ($ million) | 118  **[0001281761-23-000012_rf-20221231.htm:234]**  | 124  **[0001281761-23-000032_rf-20230331.htm:49]**  | 120  **[0001281761-23-000045_rf-20230630.htm:59]**  | 130  **[0001281761-23-000057_rf-20230930.htm:60]**  | 124  **[0001281761-24-000010_rf-20231231.htm:227]**  | 114  **[0001281761-24-000032_rf-20240331.htm:50]**  | 111  **[0001281761-24-000062_rf-20240630.htm:58]**  | 121  **[0001281761-24-000097_rf-20240930.htm:63]**  |

ef4ab2ac31629a0f41f8d7b906acd043fa069a72ed2463a5ee3a5afc9838a7a6

1. Given that your net charge-offs are trending towards the higher end of your expected 40-50 basis point range, do you anticipate this level remaining sticky, or do you foresee a decline in the coming quarters based on current economic conditions?  **[RF_3403064_7]** 

2. With the growth of private credit and banks' potential roles in origination and structuring, are you considering investing more in this area to enhance your capital markets revenue, or are there specific reasons you are not pursuing this opportunity?  **[RF_3403064_14]** 

3. Considering the cautious optimism among corporate customers and lower loan utilization rates, what specific strategies are you implementing to drive loan growth and capitalize on opportunities in your markets over the next year?  **[RF_3403064_5]** 

4. Despite your confidence in expense management and commitment to positive operating leverage, what risks could pressure expenses higher, and how might this influence your ability to achieve positive operating leverage in 2025?  **[RF_3403064_6]** 

5. With the potential risk of debit card interchange reform, how are you planning to grow your fee income in that area, and what contingencies do you have in place should regulatory changes impact this revenue stream?  **[RF_3403064_12]** 

d0a58f5766f32744415df3db0759137fe198afe7c9b5e71c384e92ac4b07da40

Carrying value of residential MSRs ($ million)

Unpaid principal balance of residential MSRs ($ million)

Weighted-average CPR (%)

Option-adjusted spread (basis points)

Weighted-average coupon interest rate (%)

Weighted-average remaining maturity (months)

Weighted-average servicing fee (basis points)

Servicing related fees from DUS program ($ million)

Net loan charge-offs (recoveries) as a % of average loans, annualized (%)

Unused commitments to extend credit ($ million)

Standby letters of credit ($ million)

Commercial letters of credit ($ million)

Liabilities associated with standby letters of credit ($ million)

Assets associated with standby letters of credit ($ million)

Reserve for unfunded credit commitments ($ million)

96084449ea171c5ce019a9b7a9451cd1e1d3327df6b65b92b9cb1e82f6e69558

e51d7ee89f3e942cfbd4f5708a944c691f950ef63be6f1fb185f432ac2315fc2

### Q3 2024 Earnings Call
- **Issued Period:** Q3 2024
- **Guided Period:** FY 2024
- **Guidance:**
  - **Adjusted Noninterest Income:** $2.45 billion to $2.5 billion  **[RF_3403064_2]** .
  - **Adjusted Noninterest Expenses:** Approximately $4.25 billion  **[RF_3403064_2]** .
  - **Net Charge-Offs:** Towards the upper end of the 40 to 50 basis point range  **[RF_3403064_2]** .
  - **Common Equity Tier 1 Ratio:** Maintain at current levels  **[RF_3403064_3]** .
  - **Net Interest Income (NII):** Expected growth in Q4 2024 and into 2025  **[RF_3403064_1]** .
  - **Deposit Costs:** Expected to decline into Q4 2024  **[RF_3403064_8]** .
  - **Positive Operating Leverage:** Committed to achieving in 2025  **[RF_3403064_10]** .
  - **Loan Growth:** Modest growth expected in 2025  **[RF_3403064_5]** .

### Q2 2024 Earnings Call
- **Issued Period:** Q2 2024
- **Guided Period:** FY 2024
- **Guidance:**
  - **Credit Metrics and Charge-offs:** Charge-offs towards the upper end of 40 to 50 basis points  **[RF_3393629_8]** .
  - **Allowance for Credit Loss (ACL) Ratio:** Expected to remain flat to declining  **[RF_3393629_2]** .
  - **Noninterest Income:** Top end of $2.3 billion to $2.4 billion range  **[RF_3393629_2]** .
  - **Noninterest Expenses:** Between $4.15 billion and $4.2 billion  **[RF_3393629_2]** .
  - **Net Interest Income (NII):** Upper end of $4.7 billion to $4.8 billion range  **[RF_3393629_1]** .
  - **Deposit Betas:** Mid-40% peak, mid-30% down rate beta  **[RF_3393629_9]** .
  - **Net Interest Margin (NIM):** 3.75% to 3.80% in a normalized rate environment  **[RF_3393629_22]** .
  - **Common Equity Tier 1 (CET1) Ratio:** Around 10.3% to 10.4%  **[RF_3393629_16]** .

### Q1 2024 Earnings Call
- **Issued Period:** Q1 2024
- **Guided Period:** FY 2024
- **Guidance:**
  - **Net Charge-Off Ratio:** 40 to 50 basis points  **[RF_3380109_17]** **[RF_3380109_3]** .
  - **Adjusted Noninterest Expenses:** Approximately $4.1 billion  **[RF_3380109_3]** **[RF_3380109_11]** .
  - **Net Interest Income (NII):** $4.7 billion to $4.8 billion  **[RF_3380109_2]** .
  - **Adjusted Noninterest Income:** $2.3 billion to $2.4 billion  **[RF_3380109_2]** **[RF_3380109_20]** .
  - **Common Equity Tier 1 Ratio:** Estimated at 10.3%  **[RF_3380109_3]** .
  - **Noninterest-Bearing Deposit Mix:** Decline to low 30% range by midyear  **[RF_3380109_2]** **[RF_3380109_18]** .

### Q4 2023 Earnings Call
- **Issued Period:** Q4 2023
- **Guided Period:** FY 2024
- **Guidance:**
  - **Net Interest Income (NII):** $4.7 billion to $4.8 billion  **[RF_3370496_1]** .
  - **Net Interest Margin (NIM):** Around 3.50%, potentially 3.60% by year-end  **[RF_3370496_11]** .
  - **Adjusted Noninterest Income:** $2.3 billion to $2.4 billion  **[RF_3370496_2]** .
  - **Adjusted Noninterest Expenses:** Approximately $4.1 billion  **[RF_3370496_2]** .
  - **Net Charge-Off Ratio:** 40 to 50 basis points  **[RF_3370496_3]** .
  - **Common Equity Tier 1 (CET1) Ratio:** Around 10%  **[RF_3370496_3]** .
  - **Loan Growth:** Low single digits  **[RF_3370496_1]** .
  - **Deposit Trends:** Incremental remixing of $2 billion to $3 billion, stabilizing by midyear  **[RF_3370496_1]** .

4c7519e2cb03e5ebb5e5bc20bb7b989996eeb9b1451a729eaf95be270d1acb4d

Regions Financial guides 2025 loan growth at ~1%, despite 3%+ C&I gains, as real estate & consumer slow. Net charge-offs to hover near 50 bps in H1. Management targets ~45% dividend payout & measured buybacks, aiming for positive operating leverage.

08a42ae0b6248e2e16dc12bc7c13790e5232913e134f31985281c547e43a9c26

**Annual guidance for FY 2025:**
- **Adjusted Noninterest Income**: 2% to 4% year-over-year  **[RF_3412792_3]**  (raised from $2.45B to $2.50B  **[RF_3403064_2]** )  
- **Adjusted Noninterest Expense**: 1% to 3% year-over-year  **[RF_3412792_3]**  (raised from approximately $4.25B  **[RF_3403064_2]** )  
- **Net Charge-Offs**: Towards the higher end of the 40–50 bps range  **[RF_3412792_3]**  (no change from prior guidance  **[RF_3403064_2]** )  
- **Common Equity Tier 1 (CET1) Ratio**: 9.25% to 9.75%  **[RF_3412792_4]**  (no change from prior guidance  **[RF_3403064_3]** )  
- **Net Interest Income (NII)**: Expected to increase by 2% to 5%  **[RF_3412792_3]**  (no change from prior guidance  **[RF_3403064_1]** )  
- **Positive Operating Leverage**: Committed to achieving positive operating leverage  **[RF_3412792_10]**  (no change from prior guidance  **[RF_3403064_10]** )  
- **Average Loan Growth**: Approximately 1%  **[RF_3412792_2]**  (no change from prior guidance  **[RF_3403064_5]** )  
- **Average Deposits**: Expected to remain relatively stable  **[RF_3412792_2]**  (no prior guidance)  
- **Capital Markets Revenue**: Approximately $80M to $90M, with potential up to $100M  **[RF_3412792_3]**  (no prior guidance)  
- **Technology Investments**: New loan system (late 2025), new deposit system (pilot in 2026, full in 2027)  **[RF_3412792_9]** **[RF_3412792_22]**  (no prior guidance)  
- **Hiring Plans**: Plan to add approximately 140 bankers (10% to 20% increase)  **[RF_3412792_0]** **[RF_3412792_20]**  (no prior guidance)  

7b153699a134d9215bb089b6a9faf8f668612d05ad3b2a109a967b4d70557b44

- Financial institutions located in the states in which they operate and other adjoining states  **[0001281761-24-000010_rf-20231231.htm:29]** 
- Large banks in major financial centers  **[0001281761-24-000010_rf-20231231.htm:29]** 
- Savings and loan associations  **[0001281761-24-000010_rf-20231231.htm:29]** 
- Credit unions  **[0001281761-24-000010_rf-20231231.htm:29]** 
- Fintechs  **[0001281761-24-000010_rf-20231231.htm:29]** 
- Finance companies  **[0001281761-24-000010_rf-20231231.htm:29]** 
- Mutual funds  **[0001281761-24-000010_rf-20231231.htm:29]** 
- Insurance companies  **[0001281761-24-000010_rf-20231231.htm:29]** 
- Brokerage and investment banking firms  **[0001281761-24-000010_rf-20231231.htm:29]** 
- Mortgage companies  **[0001281761-24-000010_rf-20231231.htm:29]** 
- Financial service operations of major commercial and retail corporations  **[0001281761-24-000010_rf-20231231.htm:29]** 
- Internet banks  **[0001281761-24-000010_rf-20231231.htm:51]** 
- Traditional technology companies  **[0001281761-24-000010_rf-20231231.htm:51]** 

52291fba2654db920627ad0b3f3a660a2dc1c9964a6868f0beab11e27f449119

Corporate Bank

- Net Interest Income

- Non-Interest Income

Consumer Bank

Wealth Management

Other

Business Services

Consumer Services

Total Revenue

9d876c2eff7abb3ec5ab78aa6e740cc08259b34bd5d59e82bdb58a5e3a8b5927

| Name                  | Position                                                                 | Start Date          | Short Bio                                                                                                                                                                                                 |
|-----------------------|--------------------------------------------------------------------------|---------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| John M. Turner, Jr.   | Chairman, President, and CEO                                             | July 2018           | John M. Turner, Jr. has been serving as CEO since July 2018 and was named President in December 2017. He joined Regions in 2011 as President of the South Region  **[0001281761-23-000018_rf-20230306.htm:29]** **[0001281761-24-000010_rf-20231231.htm:82]** **[0001281761-24-000016_rf-20240304.htm:29]** **[0001281761-24-000016_rf-20240304.htm:34]** .                             |
| David J. Turner, Jr.  | Senior Executive Vice President and CFO                                  | 2010                | David J. Turner, Jr. has been serving as CFO since 2010  **[0001281761-24-000010_rf-20231231.htm:82]** .                                                                                                                                             |
| Ronald G. Smith       | Senior Executive Vice President and Head of Corporate Banking Group      | 2010                | Ronald G. Smith has been serving in this role since 2010. He announced his intent to retire on or around December 31, 2024  **[0001281761-24-000010_rf-20231231.htm:82]** **[0001281761-24-000066_rf-20240812.htm:1]** .                                                                        |
| David R. Keenan       | Senior Executive Vice President and Chief Administrative and HR Officer  | 2010                | David R. Keenan has been serving in this role since 2010  **[0001281761-24-000010_rf-20231231.htm:82]** .                                                                                                                                            |
| Kate R. Danella       | Senior Executive Vice President and Head of Consumer Banking Group       | 2018                | Kate R. Danella has held this position since 2018. She previously served in various strategic roles at Regions Bank  **[0001281761-24-000010_rf-20231231.htm:82]** .                                                                                 |
| C. Dandridge Massey   | Chief Enterprise Operations and Technology Officer                       | May 9, 2022         | C. Dandridge Massey joined Regions on May 9, 2022, previously serving at Truist Bank  **[0001281761-24-000010_rf-20231231.htm:82]** **[0001281761-23-000012_rf-20221231.htm:79]** **[0001281761-23-000012_rf-20221231xex1012.htm:0]** .                                                                                                          |
| Scott M. Peters       | Senior Executive Vice President and Chief Transformation Officer         | 2010                | Scott M. Peters has been serving as an executive officer since 2010  **[0001281761-24-000010_rf-20231231.htm:82]** .                                                                                                                                 |
| Tara A. Plimpton      | Senior Executive Vice President, Chief Legal Officer, and Corporate Secretary | 2020                | Tara A. Plimpton joined Regions in 2020, having previously served as General Counsel at GE  **[0001281761-24-000010_rf-20231231.htm:82]** .                                                                                                           |
| William D. Ritter     | Senior Executive Vice President and Head of Wealth Management Group      | 2010                | William D. Ritter has been serving in this role since 2010  **[0001281761-24-000010_rf-20231231.htm:82]** .                                                                                                                                          |
| Russell K. Zusi       | Senior Executive Vice President and Chief Risk Officer                   | January 1, 2024     | Russell K. Zusi was appointed CRO on January 1, 2024, after serving in various risk management roles at Bank of America  **[0001281761-24-000016_rf-20240304.htm:13]** **[0001281761-24-000010_rf-20231231.htm:82]** .                                                                           |
| Roger W. Jenkins      | Board Member                                                             | January 1, 2025     | Roger W. Jenkins will join the Boards of Regions Financial Corp. and Regions Bank on January 1, 2025. He is currently the CEO of Murphy Oil Corporation  **[0001281761-24-000103_bod-jenkinsnewsreleasev9.htm:0]** **[0001281761-24-000103_rf-20241210.htm:1]** .                                           |
| Brian Willman         | Senior Executive Vice President, Head of Corporate Banking Group         | December 31, 2024   | Brian Willman will assume this role upon Ronnie Smith's retirement on or around December 31, 2024. He joined Regions in 2009  **[0001281761-24-000066_rf-20240812.htm:1]** **[0001281761-24-000066_rf-20240813ronniesmithreti.htm:1]** .                                                                    |
| Nikki Stephenson      | Head of Commercial Banking                                               | August 13, 2024     | Nikki Stephenson was elevated to this role following the announcement that Brian Willman would succeed Ronnie Smith. She joined Regions in 2008  **[0001281761-24-000066_rf-20240813ronniesmithreti.htm:1]** .                                                     |

b0ddfcfdcdb2ade834352188d27c4e61fbc57c70ee1a66880062a57f65313233

| Program Details          | Program 1       |
|--------------------------|-----------------|
| Approval Date            | April 20, 2022  **[0001281761-24-000097_rf-20240930.htm:108]** **[0001281761-24-000097_rf-20240930.htm:43]**  |
| End Date/Duration        | Q2 2022 - Q4 2024  **[0001281761-24-000097_rf-20240930.htm:108]** **[0001281761-24-000097_rf-20240930.htm:43]**  |
| Total additional amount  | **$2.5 billion**  **[0001281761-24-000097_rf-20240930.htm:108]** **[0001281761-24-000097_rf-20240930.htm:43]**  |
| Remaining authorization  | **$1,946,978,804**  **[0001281761-24-000097_rf-20240930.htm:108]** **[0001281761-24-000097_rf-20240930.htm:43]**  |
| Details                  | Manage capital allocation, maintain CET1 ratio around **10%**  **[RF_3059469_19]** **[RF_3370496_17]**  |

e98a793add236432202da6f39e19db3cc752bbbf6103fdf7921c31dc8132feb7

| Name              | Start Date | End Date | Reason for Change |
|-------------------|------------|----------|-------------------|
| Ernst & Young LLP | 1971  **[0001281761-24-000010_rf-20231231.htm:140]**    | Present  | Current auditor   |

65aba56ef2dc91f1b9f3d962540064b7d56fe33c014e010536b4036ab14fcb32

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

- Total Revenue: $1,815 million (+**60%** YoY)  **[0001281761-25-000003_rf-20241231xexhibit991.htm:1]** **[0001281761-24-000010_rf-20231231.htm:142]**   
- Net Income: $534 million (+37% YoY)  **[0001281761-25-000003_rf-20241231xexhibit991.htm:1]** **[0001281761-24-000010_rf-20231231.htm:142]** **[0001281761-25-000003_rf-20241231xexhibitx992.htm:1]** **[0001281761-25-000003_rf-20241231xexhibitx992.htm:10]**   
- Interest Expense: $572 million (+**1,000%** YoY)  **[0001281761-25-000003_rf-20241231xexhibitx992.htm:1]** **[0001281761-25-000003_rf-20241231xexhibitx992.htm:10]** **[0001281761-24-000010_rf-20231231.htm:142]**   
- EPS (Diluted): $0.56 (+40% YoY)  **[0001281761-25-000003_rf-20241231xexhibit991.htm:1]** **[0001281761-24-000010_rf-20231231.htm:142]** **[0001281761-25-000003_rf-20241231xexhibitx992.htm:1]** **[0001281761-25-000003_rf-20241231xexhibitx992.htm:10]**   

99d43af136ada57d65827f2d6c2ac2936858e5fb6c5054f1eed04a725be216bf

1d16d9c644d709b4aa8b8383ce7ed737d933476b612bbea1162a4d18a686e68f

4844c07794b44ebd04054921d4dae97240fa2da1971e350542270274ddf964f9

Full-time equivalent headcount (headcount (absolute number))

Number of branch outlets (absolute number)

a3f4ab0cdab67d2485821be46010b0e76f6a3466c454df216a101421689128b4

1. **Expense Outlook and Operating Leverage**  
   **Q:** How will you manage expenses to create capacity for investments?  
   **A:** Management is focusing on controlling headcount, reducing occupancy costs, and optimizing vendor spend to create capacity for investments in technology like new deposit and loan systems. They are committed to generating **positive operating leverage** through these efficiency measures.  **[RF_3412792_5]** 

2. **Capital Management and Buybacks**  
   **Q:** How do you plan to manage capital and return capital in 2025?  
   **A:** The priority is to use capital to grow the business, especially loan growth, but without forcing it. Dividends are targeted at **40% to 50%** of earnings. They aim to maintain a CET1 ratio within **9.25% to 9.75%**, considering potential regulatory changes that include AOCI in capital. Buybacks are included in the plan but will depend on actual loan growth.  **[RF_3412792_6]** 

3. **Deposit Pricing and NIM Outlook**  
   **Q:** How do you see deposit pricing evolving and its impact on NII?  
   **A:** Management aims to be competitive in deposit pricing while managing costs. They project a **35%** down beta on deposits. Maturing high-cost CDs will help lower costs. Hedging strategies are in place to protect NII. A steeper yield curve would be beneficial.  **[RF_3412792_7]** 

4. **Loan Growth and Returns**  
   **Q:** What are the expectations for loan growth and factors affecting it?  
   **A:** Overall loan growth is expected to be about **1%** in 2025. C&I loans are projected to grow over **3%**, but investor real estate loans will be challenging, and consumer loans will have mixed results. They are focusing on risk-adjusted returns, exiting relationships that don't meet return expectations, and reallocating capital accordingly.  **[RF_3412792_8]** 

5. **Net Charge-offs and Credit Outlook**  
   **Q:** Will net charge-offs exceed 50 bps in the first half?  
   **A:** Net charge-offs could drift slightly above **50 basis points** in a quarter due to a handful of large credits in office, senior housing, and transportation. They are appropriately reserved for these losses, and coverage ratios may begin to come down absent loan growth and with an improving economy.  **[RF_3412792_11]** 

6. **Fee Income and Non-Interest Revenue**  
   **Q:** Can you explain the outlook for fee income categories?  
   **A:** Capital markets income is expected to be in the range of **$80 million to $90 million**, with possible fluctuations due to M&A activity and the rate environment. Service charges are stable, and wealth management continues to grow at double digits. Card and ATM fees were impacted by adjustments to rewards liabilities, which should not repeat in 2025.  **[RF_3412792_12]** 

7. **Investments in Technology**  
   **Q:** What is the timeline and benefits of your technology investments?  
   **A:** The new loan system will go live in the second to third quarter of this year, and the deposit system is expected to pilot in the second half of 2026 with full implementation by mid-2027. These investments aim to enhance client service and competitiveness through faster product launches and improved capabilities, though immediate expense reductions are not anticipated.  **[RF_3412792_19]** **[RF_3412792_22]** 

8. **Acquisitions Performance**  
   **Q:** How are your acquisitions, EnerBank and Ascentium, performing?  
   **A:** Both acquisitions are performing well. Ascentium, focusing on business-essential equipment financing, has grown but faced recent pressures due to small business challenges. EnerBank is remixing its portfolio; while significant growth isn't expected in 2025, they anticipate growth over time. Both provide a natural hedge in a lower rate environment with higher spreads and appropriate risk compensation.  **[RF_3412792_16]** 

9. **Securities Portfolio and HTM Strategy**  
   **Q:** Will you increase your HTM securities portfolio amid regulatory changes?  
   **A:** They have increased the HTM portfolio from **3% to 14%** and plan to reach about **25%**. This strategy reduces capital volatility due to interest rate changes, especially if AOCI is included in capital calculations. They aim to balance this without hindering liquidity risk management.  **[RF_3412792_17]** 

10. **Deposit Growth and DDA Accounts**  
    **Q:** How can you grow DDA accounts in this rate environment?  
    **A:** They are investing in growing consumer and business checking accounts, emphasizing that expanding customer relationships is crucial. The rate environment isn't the primary driver; it's about proactive efforts to attract and retain customers.  **[RF_3412792_13]** 

11. **Expense Guidance and IT Budget**  
    **Q:** Does the expense guidance include an increase in the IT budget?  
    **A:** Yes, the **1% to 3%** expense growth guidance includes increased investments in technology, such as new deposit and loan systems. While the IT budget may rise over time, they are committed to offsetting this through efficiencies in other areas like salaries, benefits, and vendor spend.  **[RF_3412792_9]** 

12. **Investments in Fee Income Areas**  
    **Q:** What are your priorities for fee income investments in 2025?  
    **A:** They are exploring new products and services customers need, like fixed income sales and trading platforms. They are interested in acquiring RIAs for their wealth group but find current valuations too high. Previous investments like Sabal and Clearsight have been beneficial.  **[RF_3412792_14]** 

13. **Loan Growth in Footprint and Market Share**  
    **Q:** What will it take to achieve mid-single-digit loan growth?  
    **A:** Headwinds include excess liquidity, reduced working capital needs, low line utilization, and challenges in real estate lending due to costs. The consumer loan book is stable but not growing significantly. Increased loan growth will require customers putting cash to work and improved market conditions.  **[RF_3412792_15]** 

14. **Organic Growth Expectations**  
    **Q:** What should be the organic growth rate in a normal environment?  
    **A:** They aim to grow with the economy plus a little extra, leveraging their strong market presence. While acknowledging increased competition, they are confident in protecting and expanding their market share in both core and priority markets.  **[RF_3412792_21]** 

15. **Banker Hiring Plans**  
    **Q:** How does hiring 140 bankers compare to prior years?  
    **A:** The plan to hire **140 bankers** is a multiyear effort over 2-3 years, representing a **10% to 20%** increase in headcount depending on the business line. This investment is included in the expense guidance and aims to drive revenue growth.  **[RF_3412792_20]** 

16. **Expense Management if Revenue Weakens**  
    **Q:** Will you pull back on investments if revenue growth is weaker?  
    **A:** They are committed to positive operating leverage and believe that investments in people and technology will generate revenue growth. Expenses will be managed carefully, and investments will be made in a measured way, expecting returns over time.  **[RF_3412792_10]** 

17. **Loan System Conversion Expense Impact**  
    **Q:** Will the new loan system lead to expense reductions?  
    **A:** Immediate significant expense reductions are not expected upon the loan system going live. The focus is on enhancing client service and competitive advantage rather than immediate cost savings.  **[RF_3412792_19]** 

18. **Fee Income Details**  
    **Q:** What caused declines in service charges, cards, and investment management fees?  
    **A:** Non-interest revenue was distorted by an HR asset adjustment of about **$15 million**. Capital markets revenues are episodic, affected by factors like M&A activity and the rate environment. Card and ATM fees were reduced due to increased usage of rewards liabilities, which should not repeat in 2025.  **[RF_3412792_12]** 

19. **Technology Investments Timeline and Benefits**  
    **Q:** Can you provide specifics on tech progress and expected benefits?  
    **A:** The new loan system will be implemented later this year, with the deposit system piloted in the second half of 2026 and fully implemented by mid-2027. Benefits include faster product launches, bundling capabilities, and cloud-based advantages, enhancing competitiveness and client service.  **[RF_3412792_22]** 

20. **DDA Growth and Deposits Strategy**  
    **Q:** How can you drive deposit growth given current pressures?  
    **A:** They are focused on growing non-interest-bearing deposits by expanding checking accounts and capturing operating accounts from businesses. Success depends on relationship-building efforts rather than the rate environment, and they plan to invest in priority markets to achieve this.  **[RF_3412792_13]** 

21. **Repositioning Securities Portfolio**  
    **Q:** Will you reposition the securities portfolio to reach HTM targets?  
    **A:** Significant repositioning like in 2024 is unlikely in 2025, as opportunities with acceptable payback periods are limited. Any future repositioning will depend on rate changes and the availability of suitable securities.  **[RF_3412792_18]** 

3163628a0f5a48913eea9e4fc83756b04c4387ab51d0630836c4dc9401425e25

451220e38dab93e6c06f178662c7de2b539ac48d3a7832f6ba6e7b7bd436e5aa

| Year  | Amount Due (millions) | Debt Type                  | Interest Rate | % of Total Debt                  |
|-------|-----------------------|----------------------------|---------------|----------------------------------|
| 2024  | $0                    | Subordinated notes         | 7.75%         | 0% = (0 / 7,516) * 100 **[0001281761-24-000097_rf-20240930.htm:84]**  |
| 2025  | $749                  | Senior notes               | 2.25%         | 10.0% = (749 / 7,516) * 100 **[0001281761-24-000097_rf-20240930.htm:84]** |
| 2025  | $151                  | Subordinated debentures    | 6.75%         | 2.0% = (151 / 7,516) * 100 **[0001281761-24-000097_rf-20240930.htm:84]** |
| 2028  | $647                  | Senior notes               | 1.80%         | 8.6% = (647 / 7,516) * 100 **[0001281761-24-000097_rf-20240930.htm:84]** |
| 2030  | $746                  | Senior notes               | 5.722%        | 9.9% = (746 / 7,516) * 100 **[0001281761-24-000097_rf-20240930.htm:84]** |
| 2035  | $994                  | Senior notes               | 5.502%        | 13.2% = (994 / 7,516) * 100 **[0001281761-24-000097_rf-20240930.htm:84]** |
| 2037  | $299                  | Subordinated notes         | 7.375%        | 4.0% = (299 / 7,516) * 100 **[0001281761-24-000097_rf-20240930.htm:84]** |
| 2037  | $496                  | Subordinated notes         | 6.45%         | 6.6% = (496 / 7,516) * 100 **[0001281761-24-000097_rf-20240930.htm:84]** |

fbec4ad4028833578176fb5ec39fe091f71d4025c1d813196c27a0e6cd5e9dc8

1. **Credit Quality and Nonperformers**  
   **Q:** What's causing increases in nonperformers and how are reserves?  
   **A:** Management noted that increases in nonaccrual loans and classified loans are consistent with stress in specific industries like **office, senior housing, transportation, healthcare, and technology**.  **[RF_3380109_10]**  They anticipated this deterioration and have returned to pre-pandemic credit metrics, with **nonaccruals at 105 basis points** and **average charge-offs at 46 basis points**.  **[RF_3380109_10]**  With high visibility into problematic credits—where **21 credits make up 72% of nonaccruals**, and **18 of those 21 credits are in the stressed sectors**—they feel confident about their reserve position.  **[RF_3380109_10]** 

2. **NII and NIM Outlook**  
   **Q:** How does slower loan growth affect NII guidance?  
   **A:** Management maintained their **NII guidance**, despite expecting lower loan growth, because loan growth was anticipated in the back half and wasn't factored into NII projections.  **[RF_3380109_8]**  They feel good about their position with **neutral to short-term rates** and are reinvesting their securities book, picking up over **200 basis points**.  **[RF_3380109_8]**  They also expect **deposit costs to stabilize**, supporting NII.  **[RF_3380109_8]** **[RF_3380109_24]** 

3. **Deposit Costs and Noninterest-Bearing Deposits**  
   **Q:** Are deposit costs stabilizing and how are NIB deposits trending?  
   **A:** Deposit costs have **stabilized from February to March**, giving management confidence in their cumulative beta in the **mid-40s**.  **[RF_3380109_13]**  Promotional rates are coming down, and they are adjusting pricing accordingly.  **[RF_3380109_14]**  They expect noninterest-bearing deposits to decline slightly but remain in the **low 30% range**, as shifts from NIB have mostly occurred.  **[RF_3380109_4]** **[RF_3380109_17]** 

4. **Expense Management and Operational Losses**  
   **Q:** Will expenses decrease after the high Q1 levels?  
   **A:** The first quarter represents the **high watermark on expenses**, with approximately **$75 million** in non-recurring items like operational losses, payroll taxes, and severance costs.  **[RF_3380109_11]** **[RF_3380109_7]**  Management expects these won't repeat and has taken actions to reduce expenses.  **[RF_3380109_11]**  They are confident in their expense guidance.  **[RF_3380109_11]** **[RF_3380109_7]** 

5. **Capital Deployment and Securities Repositioning**  
   **Q:** Any plans for more securities repositioning?  
   **A:** Management is considering opportunities for securities repositioning if paybacks are less than **three years**, ideally closer to **2.5 years**.  **[RF_3380109_5]** **[RF_3380109_9]**  They added some duration with negligible extension—only about **12 basis points per year**—and see it as a good use of capital, especially if rates are expected to remain low.  **[RF_3380109_9]**  While not committing, they'll look for advantageous opportunities.  **[RF_3380109_5]** **[RF_3380109_9]** **[RF_3380109_15]** 

6. **Regulatory Proposals and Capital Impact**  
   **Q:** What's the update on long-term debt proposals?  
   **A:** The **Basel III and long-term debt proposals** are on hold but expected to resume this year.  **[RF_3380109_21]**  The initial proposal requires **6% of RWA**, equating to raising about **$5 billion** after existing debt.  **[RF_3380109_21]**  Management hopes the requirement may be reduced to **2–3%**, which would lessen the impact.  **[RF_3380109_21]**  The potential drag on NII is less than **1%** if fully implemented.  **[RF_3380109_21]** 

7. **Fee Income and Capital Markets**  
   **Q:** How are fee income and capital markets performing?  
   **A:** **Treasury management fees** are up **7%** year-over-year, reflecting fee increases and relationship growth.  **[RF_3380109_19]**  **Wealth management** revenue is up over **6%**, with increases in assets under management.  **[RF_3380109_19]**  **Mortgage activity** increased and is expected to continue.  **[RF_3380109_19]**  Capital markets activity remains strong, with pipelines full and M&A activity picking up, supporting fee income in the **$60–$80 million** range per quarter.  **[RF_3380109_20]** 

8. **Loan Mix and Higher-Yield Portfolios**  
   **Q:** How has loan mix shift impacted charge-offs?  
   **A:** The shift in loan mix, notably with portfolios like **Interbank and Ascentium**, which are higher-yield and higher-loss content, has influenced comparisons to pre-pandemic charge-offs.  **[RF_3380109_23]**  These portfolios are performing in line with expectations, with loss rates around **2–2.5%**.  **[RF_3380109_23]**  The **CECL reserve** adjusted for current portfolio mix implies a reserve of **1.62%**, indicating strong coverage.  **[RF_3380109_23]** 

9. **Inflation Impact on Deposits**  
   **Q:** Has inflation changed corporate deposit behavior?  
   **A:** Management hasn't observed significant changes in corporate deposit behavior due to inflation expectations.  **[RF_3380109_17]**  Most shifts from noninterest-bearing deposits have already occurred, and they expect NIB deposits to remain in the **low 30% range**.  **[RF_3380109_17]**  Customers are maintaining liquidity amid uncertainty.  **[RF_3380109_17]** 

10. **Core Systems Conversion Progress**  
    **Q:** Is the core systems conversion on track?  
    **A:** The core systems conversion project is progressing as expected, staying on **budget and on time**.  **[RF_3380109_12]**  Management feels good about the project's status and continued progress.  **[RF_3380109_12]** 

6a6eaebc462b9e14ff27b9eb66662c29688554fc7e752ac104f6b0baea8c77e5

1. **NII Guidance and NIM Outlook**  
   **Q:** What are the key drivers of the updated NII guidance and medium-term margin outlook?  
   **A:** Management stated that they're neutral to short-term rates, and the benefit they see going forward is controlling deposit costs, with interest-bearing costs up just **3 basis points**. The front book/back book benefit, adding securities and loans at around **175 basis points**, is now outweighing changes in deposit costs, expected to continue for the rest of the year. Balance sheet growth will drive NII growth, and they feel comfortable being at the upper end of their range. A recent repositioning trade will also help them reach the upper end. A little loan growth in the back half sets them up nicely for **2025**.  **[RF_3393629_3]** 

2. **Asset Quality and Credit Trends**  
   **Q:** How does asset quality feel, and what are you watching underneath the surface?  
   **A:** Management indicated that credit metrics likely peaked in the second quarter. They've highlighted concerns in office, senior housing, transportation, manufacturing of commercial nondurables, and information sectors. Specifically, office is still being worked through on a credit-by-credit basis. Nonperforming loans are centered in **20 credits** representing about **72%** of total NPLs, with **five** office-related. They're working with customers and feel adequately reserved, with an allowance of about **9.6%** against the multi-tenant book and **6.4%** against the office book. Charge-offs are guided toward the upper end of a **40 to 50 basis point** range, but overall downgrades and upgrades are stabilizing.  **[RF_3393629_8]** 

3. **Deposit Costs and Betas**  
   **Q:** Can you explain the better-than-expected deposit costs and how you see them going forward?  
   **A:** The cumulative beta is **43%**, within the expected middle **40%** range. Confident due to understanding of the customer base and lack of aggressive competition for deposits due to limited industry loan growth. They've been keeping CDs short to capitalize when rates change. Deposit costs may tick up depending on mix shift, but growing core checking and operating accounts is crucial. Do not expect a major change in deposit costs, maintaining cumulative beta around **45%**.  **[RF_3393629_7]** 

4. **Expense Guidance and Operating Leverage**  
   **Q:** How much of the expense increase is driven by better revenues, and is there a pull forward of expenses?  
   **A:** The increase is attributable to the expected increase in revenue, with both NII and NIR at the upper end of ranges being the primary drivers. There are also about **$20 million** in expenses associated with market value adjustments on HR assets. Modest incremental increases occurred in the first half, with limited opportunities to offset them. Management is firmly committed to generating positive operating leverage over the back half of **2024**.  **[RF_3393629_4]** 

5. **Loan Growth Outlook and Pipelines**  
   **Q:** What is the competitive backdrop for commercial lending, and what would boost loan demand?  
   **A:** The market is competitive, especially in the southeast. Management believes they're competing well due to the quality of their people and execution of their plan. There's growth in commercial middle market, offset by declines in specialized industries and investor real estate. Activity remains muted due to customer caution over inflation, political environment, and uncertainty. However, pipelines are stronger than a year ago and two quarters ago. While not projecting much loan growth this year, they expect economic activity to pick up in **2025**, reflected in increased pipeline activity.  **[RF_3393629_5]** 

6. **Balance Sheet Repositioning Opportunities**  
   **Q:** Will you consider similar balance sheet repositionings in the future, and what would be their size?  
   **A:** They continue to look for such opportunities as a good use of capital. This recent repositioning is about the biggest they would do, in the **10%** range of earnings. They prefer opportunities with a tight payback period, ideally around **3 years**. The first repositioning had a **2.1-year** payback; the recent one was **2.6 years**. If they find opportunities within that timeframe, they may take advantage of them, especially as the curve continues to steepen.  **[RF_3393629_6]** 

7. **Capital Management and CET1 Target**  
   **Q:** Do you have a target for CET1 ratio, and how does that influence capital actions?  
   **A:** The operating range for CET1 is **9.25% to 9.75%**, but they've increased it to about **10.4%** due to economic uncertainty and pending Basel III requirements. They believe they're within striking distance of future Basel III requirements and don't need capital to accrete higher. Future capital generation will be used for paying dividends, repositioning the securities portfolio, loan growth, or share buybacks, aiming to maintain CET1 around **10.3% to 10.4%**.  **[RF_3393629_16]** 

8. **Medium-Term Expense Growth Rate**  
   **Q:** What is a reasonable underlying expense growth rate over the next couple of years?  
   **A:** Management aims for expense growth in the **2.5% to 3%** range, acknowledging labor inflation and rising technology costs. They are committed to generating positive operating leverage, balancing investments in technology and controlling expenses, and strive to keep efficiency ratios low.  **[RF_3393629_14]** 

9. **Core Fee Growth Outlook**  
   **Q:** What can Regions achieve in core fee growth over the next 2 to 3 years?  
   **A:** They continue to look for ways to generate fees by offering valued products and services, including recent acquisitions. They aim to generate positive operating leverage and, if possible, increase the percentage of revenue from fees, aspiring to reach around **40%**. They have overcome declines in consumer fees by investing in treasury management and wealth management, which continues to grow and hit a record quarter.  **[RF_3393629_15]** 

10. **M&A Outlook**  
    **Q:** How do you view potential banking consolidation and Regions' stance on acquisitions?  
    **A:** Management has stated they are not interested in depository acquisitions but have made non-bank acquisitions to add capabilities and diversify revenue. They believe they can generate top quartile returns without bank M&A, as it is disruptive and challenging. They focus on executing their plan but will continue to observe the market.  **[RF_3393629_19]** 

11. **Deposit Behavior in Rate Cuts**  
    **Q:** How should we expect deposit balances and betas to behave during rate cuts?  
    **A:** They expect a mid-**30%** down-rate beta. About **35%** of accounts reprice with the market, with betas between **80% to 100%**. Around **46%** never moved up and likely won't move down, with low betas. They structured the deposit book to take advantage as rates come down, and the guidance factors in a **30%** down-rate beta.  **[RF_3393629_9]** 

12. **Normalized NIM in Normal Rate Environment**  
    **Q:** What is the normalized NIM in a normalized rate environment?  
    **A:** With a normalized fed funds rate of **2.5% to 3%** and a normal yield curve, they expect a margin in the **3.75% to 3.80%** range. As rates start to decline and the yield curve normalizes, net interest margin should increase, climbing above **3.50%** as they go through **2025** and beyond.  **[RF_3393629_22]** 

13. **Drivers to Higher NIM**  
    **Q:** What are the key drivers that take NIM from current levels to normalized levels?   
    **A:** As rates come down, funding costs will decrease, and the front book/back book benefit will continue for a couple of years. The steepening yield curve and repricing of the balance sheet will drive NIM higher. They expect deposit costs to come down with rate cuts, and fixed-rate assets will continue to benefit NII and margin. Growing checking accounts and operating accounts is crucial for lowering input costs on deposits.  **[RF_3393629_23]** 

14. **ACL Ratio and Expectations**  
    **Q:** Where do you see the reserve ratio going from here?  
    **A:** As credit metrics improve and charge-offs, reserved for, come through, the ACL is expected to come down absent loan growth or changes in economic conditions. Historically, the reserve level was around **1.61%**, and over time, it may bleed back down towards more normal levels. The exact timing and level are hard to predict, but if charge-offs occur in the short term, ACL should decrease.  **[RF_3393629_20]** 

15. **Expense Run Rate and Efficiency Ratio**  
    **Q:** Where are you investing that could put expense growth in the 2.5% to 3% range, and what does that mean for the efficiency ratio?  
    **A:** Investments are being made in technology, cyber, and consumer compliance, with significant technology projects underway. Labor inflation is also a factor. They aim to leverage technology better over time to reduce reliance on labor. The goal is to move the efficiency ratio down from current levels to the lower **50s** over time.  **[RF_3393629_21]** 

16. **Pipeline Pull-Through Rates**  
    **Q:** Can you give any opinion on whether pipeline pull-through could be better than in the past?  
    **A:** Management doesn't expect a change from historical experience in pull-through rates. Pipelines are building, especially in specialized businesses like energy and financial services, but they cannot predict any change in pull-through rates.  **[RF_3393629_18]** 

17. **Stock Buybacks**  
    **Q:** Should we expect a meaningful increase in stock buybacks in the third and fourth quarters?  
    **A:** Buybacks will be commensurate with earnings. The recent decrease was due to using capital for the **$50 million** pretax loss on securities repositioning. They aim to maintain CET1 at **10.3% to 10.4%**, and buybacks will solve for that level, depending on capital usage in other areas.  **[RF_3393629_17]** 

18. **Liability Sensitivity**  
    **Q:** Are you liability sensitive or neutral, and how does that affect NIM?  
    **A:** They are neutral to short-term rates. As rates come down, deposit costs will decrease, and fixed-rate assets will benefit NII and margin. With the curve steepening, they will benefit as well.  **[RF_3393629_24]** 

19. **Investments and Hiring**  
    **Q:** Where is the bank investing in terms of hiring and markets?  
    **A:** Investments are being made in markets like Atlanta, Nashville, Houston, Dallas, Orlando, and Tampa. They are focusing on growing in markets where they have a significant presence or see opportunity, both on the consumer and business sides, to get checking accounts and operating accounts.  **[RF_3393629_12]** 

20. **Fee Contribution to Revenue**  
    **Q:** Fees are about 33% of revenues; what could that be in 3 to 5 years?  
    **A:** They aspire to increase fee revenue to around **40%** of total revenue, striving for a 50/50 split between NII and NIR, though that has been challenging. They continue to invest in products and services to grow fee income.  **[RF_3393629_15]** 

2b7c1ee4a9b80387d6a042252ba26da1bb9076fd28144b496ab332e025c741ca

- **Regions Financial expects robust C&I loan growth of over 3%**, driven by investments in growth markets and the hiring of additional bankers to capitalize on these opportunities.  **[RF_3412792_8]**
- **The company is committed to generating positive operating leverage** by carefully managing expenses, including salaries and benefits, occupancy costs, and vendor spend, while investing in technology like a new loan and deposit system to enhance capabilities and efficiency, providing a competitive advantage.  **[RF_3412792_5]** **[RF_3412792_22]** **[RF_3412792_9]**
- **Regions Financial plans to return capital to shareholders through a target dividend payout ratio of approximately 45% of earnings and share buybacks**, depending on loan growth and capital needs, enhancing shareholder value.  **[RF_3412792_6]**

13e760ee75fad3165cdd50b3b395c5fe4c56f430bc0a7f5f82dc5e7d7884889a

- **Credit quality concerns due to increased net charge-offs**: The company reported higher net charge-offs in the first quarter, primarily driven by a large legacy restaurant credit and one commercial manufacturing credit. These two credits accounted for **13 basis points** of net charge-offs, raising the net charge-off ratio to **50 basis points**, which is at the high end of their full-year guidance range of **40 to 50 basis points**. Both credits are still being worked out, indicating potential ongoing pressure on credit quality.  **[RF_3380109_16]** ,  **[RF_3380109_20]**
- **Pressure on Net Interest Margin (NIM) from increased liquidity**: Regions Financial is carrying more cash out of an abundance of caution, which, while not significantly impacting net interest income, is hurting their NIM. The company expects the NIM to be in the **upper 350s to 360 basis points** range, acknowledging that higher cash levels and deposit costs could pressure margins.  **[RF_3380109_25]**
- **Softened loan growth outlook impacting earnings**: The company anticipates that average loans in 2024 will be **stable to down modestly** compared to 2023, citing limited client demand, client selectivity, paydowns, and increased debt capital markets activities moving loans off-balance sheet. This outlook contrasts with some peers who expect loan growth acceleration, suggesting potential challenges for future earnings growth.  **[RF_3380109_3]** ,  **[RF_3380109_6]**

a2b8047b35cb8f61c2237aaebbc0f7a5dcdb7520761f81f6f6ffa3dd62d6b3fc

1. **Net Interest Income Momentum**  
   **Q:** Is the target of a 360 million margin still intact, and what's the outlook for NII growth?  
   **A:** David Turner confirmed that the margin target of **360 million** is still intact and expects to be in the lower part of the **350s** in the fourth quarter. He anticipates NII growth into 2025, driven by the benefit from the front book-back book dynamics, earning asset growth, controlled deposit costs, and natural resetting of derivatives, which had a negative carry of **$110 million** in the past quarter. As rates come down, resetting derivatives will help offset lowering rates, giving confidence to grow margin next year.  **[RF_3403064_4]** 

2. **Expense Expectations and Positive Operating Leverage**  
   **Q:** Can you discuss the confidence in upwardly revised expense expectations and the outlook for positive operating leverage next year?  
   **A:** David Turner expressed confidence in the expense estimates for the year, seeing no significant uncertainties that could alter the outlook. Expenses are closely managed, with continuous efforts to find savings opportunities to reinvest in growth, setting up for growth in 2025. He affirmed that the company will generate positive operating leverage in 2025. John Turner added that salary and benefits are controllable expenses, and investments are being made in a major technology project that is on track and on budget.  **[RF_3403064_6]** 

3. **Credit Quality and Charge-Offs**  
   **Q:** Do you expect charge-offs to remain in the 40–50 basis points range, or could they decline over the coming quarters?  
   **A:** John Turner expects charge-offs to range between **40 and 50 basis points**, aligning with historical performance before the pandemic, which averaged **46 basis points**. There may be quarters with modestly higher or lower charge-offs due to large exposures or better performance, particularly in the consumer portfolio, which is currently performing very well.  **[RF_3403064_7]** 

4. **Deposit Pricing and Costs**  
   **Q:** Can deposit costs be reduced further even without additional Fed rate cuts?  
   **A:** David Turner expects deposit costs to continue declining into the fourth quarter, even without further rate cuts. Maturing CDs with rates of **4.25% to 4.50%** are being replaced with new rates closer to **4%**, and the exit rate for interest-bearing deposits was **2.20%**, down from **2.34%** for the quarter. The company is well-positioned to grow NII in the fourth quarter and into 2025, balancing deposit growth and loan growth to maximize net interest margin.  **[RF_3403064_8]** **[RF_3403064_13]** 

5. **Deposit Repricing Outlook**  
   **Q:** What's the expected cadence of deposit repricing over the next several quarters, and what's the typical deposit spread when the neutral rate is 2.75% to 3%?  
   **A:** David Turner noted that **$3 billion** in deposits will mature in the fourth quarter, with retail CDs maturing from rates of **4.25% to 4.50%** to new rates closer to **4%**, with an average duration of about five months. Money market rates can be adjusted quickly as well. At a **3%** Fed funds rate, total deposit costs would be around **1%**, resulting in a couple of hundred basis points spread between the Fed funds rate and deposit costs.  **[RF_3403064_9]** 

6. **Loan Growth and Demand**  
   **Q:** What is the outlook for loan demand and growth, and what catalysts could drive a material pickup?  
   **A:** John Turner stated that customers are cautiously optimistic, with the economy slowing but still positive. Growth has been seen in middle market commercial, energy portfolio, and asset-based lending, offset by declines in the real estate book as projects mature, particularly in multifamily. Pipelines are softer than last quarter, but modest loan growth is possible in 2025 as political and economic uncertainties diminish. David Turner added that with an expectation of real GDP growth of over **2%** in 2025, the bank is positioned to take advantage of opportunities when uncertainties dissipate.  **[RF_3403064_5]** 

7. **Fee Income Growth – Card and ATM Fees**  
   **Q:** Can you discuss the outlook for growing the card and ATM fee line, given recent declines and the risk of debit card interchange reform?  
   **A:** David Turner attributed recent declines to volume and mix between credit and debit, with no systemic issues preventing future growth. He emphasized the opportunity to grow this line by continuing to grow customers and checking accounts, leading to more cards in customers' hands, especially in their growing markets. John Turner highlighted that Region's customers have been first in Visa's power score for **42 quarters** in a row, reflecting active debit card usage. As they continue to grow households, there's plenty of opportunity to grow fee revenue in this category. The risk of debit interchange rules changing has quieted down, and they are not counting on any changes in 2025.  **[RF_3403064_11]** **[RF_3403064_12]** 

8. **Deposit Growth Outlook**  
   **Q:** What's the implication of deposit rates on deposit growth, and how are you fueling the balance sheet?  
   **A:** David Turner believes that being in markets with migration of people and businesses provides opportunities to grow deposits. The core strategy focuses on growth in checking accounts for consumers and businesses, including small businesses. Deposits are up about **30%** since 2019. The bank manages about **$8 billion** of cash off-balance sheet for corporate banking customers, which could be brought on-balance sheet if needed by adjusting rates. The goal is to balance deposit growth and loan growth to maximize net interest margin.  **[RF_3403064_13]** 

9. **Investments in Capital Markets and Private Credit**  
   **Q:** Are there plans to invest more in capital markets, specifically in private credit, to power growth in that line?  
   **A:** John Turner is monitoring developments in the private credit space but has no specific inclination at this point. Much of the private credit origination seen in their markets involves higher leverage and structures that don't currently interest them. The focus is on optimizing existing investments in Capital Markets, such as Small Business Administration (SBA) real estate originations, M&A advisory platforms like Clearsight and BlackArch, and potentially adding capabilities like fixed income sales and trading over time. The immediate priority is executing well on current investments rather than pursuing new ones.  **[RF_3403064_14]** 

0f529e15fdcb4ef5ebd0b3690b051c78fbb5029fee40f49b26a9c36fd1914233

1. **Net Interest Margin Outlook**  
   **Q:** Where do you foresee the net interest margin settling over time?  
   **A:** Management expects the net interest margin to compress slightly in the first half of the year due to headwinds like a **$3 billion** notional of received fixed swaps becoming effective. They anticipate exiting the year with a net interest margin around **3.6%**, as deposit costs decline and loan and security repricing add **200–250 basis points** towards the back end of the year. Controlling deposit costs is key to achieving this outlook.  **[RF_3370496_11]** **[RF_3370496_22]** 

2. **Deposit Betas and Pricing Strategy**  
   **Q:** How will deposit betas change as rates decline?  
   **A:** Management anticipates a deposit beta of **35%** on the way down, with nearly **60%** of interest-bearing deposits indexed to the Fed funds rate. As rates decrease, costs for these deposits should automatically reduce. They are confident in managing deposit costs without significant competition pressure, leveraging their strong core deposit base and lack of wholesale borrowings.  **[RF_3370496_4]** **[RF_3370496_6]** **[RF_3370496_9]** **[RF_3370496_23]** 

3. **Credit Quality and Non-Performing Loans**  
   **Q:** What drove the increase in non-performing assets this quarter?  
   **A:** The increase resulted from expected migration of loans to nonperforming status, particularly in **senior housing**, **transportation and warehousing**, **office**, and **consumer discretionary manufacturing** sectors. Management views this as a return to traditional nonperforming levels of **80–110 basis points** and has provided for potential losses accordingly.  **[RF_3370496_13]** **[RF_3370496_18]** 

4. **Fee Income Outlook**  
   **Q:** What is the outlook for fee income growth?  
   **A:** Management expects fee income to rebound, especially in capital markets and mortgage servicing rights. They foresee growth in **M&A activities** later in the year, plan to acquire more mortgage servicing rights when economically favorable, and anticipate continued growth in treasury management and wealth management revenues.  **[RF_3370496_6]** **[RF_3370496_8]** 

5. **Capital Management and CET1 Target**  
   **Q:** How are you thinking about uses of capital and CET1 targets?  
   **A:** The bank aims to maintain a **10%** CET1 ratio, using capital to support loan growth, pay dividends at **35–45%** of earnings, and invest in growth opportunities like mortgage servicing rights. Share repurchases are a tool to manage capital levels, but the pace depends on earnings and strategic investments.  **[RF_3370496_10]** **[RF_3370496_17]** 

6. **Loan Growth Outlook**  
   **Q:** How do you expect loan demand to trend this year?  
   **A:** Loan growth is expected to be **muted** in 2024, with modest growth anticipated in the second half as economic activity improves. Growth is expected in core middle market banking, small business banking, and consumer areas like mortgage and EnerBank.  **[RF_3370496_5]** **[RF_3370496_7]** 

7. **Operating Leverage Outlook**  
   **Q:** When do you expect to achieve positive operating leverage?  
   **A:** Positive operating leverage is anticipated in **2025**, with improvements beginning in the latter half of 2024 as net interest income and margins stabilize and grow. The high margins in early 2023 present tough comparisons for 2024, making positive leverage challenging this year.  **[RF_3370496_12]** 

8. **Regulatory Changes Impact**  
   **Q:** What is the potential impact of regulatory changes on interchange and overdraft fees?  
   **A:** Proposed debit interchange fee adjustments could reduce net income by approximately **$45 million** starting mid-year. Overdraft fee regulations remain uncertain, and it's premature to estimate their impact.  **[RF_3370496_24]** 

9. **Technology Investments and Expenses**  
   **Q:** How are technology projects affecting expenses?  
   **A:** Technology investments, including the **[R2] transformation project**, continue as planned, with spending at **9–11%** of revenue. These projects are on schedule and budget, with no delays. Overall expenses are expected to remain flat after adjusting for prior operational losses.  **[RF_3370496_20]** 

10. **Exposure to Senior Housing**  
    **Q:** What is your exposure to senior housing, and what's the outlook?  
    **A:** The bank has approximately **$118 million** in nonperforming loans in the senior housing sector, with reserves of about **3.7%** against these credits. Improvements are seen as occupancy rates increase over time.  **[RF_3370496_13]** **[RF_3370496_21]** 

11. **Competition from Private Credit Markets**  
    **Q:** How are you impacted by competition from private credit markets?  
    **A:** The bank does not see significant competition from private credit in its core middle market customer base and has modest exposure to private equity. They have not lost notable customers to private credit lenders.  **[RF_3370496_19]** 

12. **Fraud and Operational Losses**  
    **Q:** Are you confident that elevated check fraud is under control?  
    **A:** Implemented countermeasures have been effective, and management expects operating losses to normalize to **$20–25 million** per quarter. Associated expenses are included in projections for 2024. Ongoing vigilance is emphasized to stay ahead of potential fraud.  **[RF_3370496_25]** 

7d3b88a2a53bc93326540de722af4d449bc4b2af00eddf844596ea9ade8055d4

- **Loan demand remains soft** as clients **defer long-term investments** due to rising interest rates, rising costs, and economic uncertainty, potentially impacting growth.  **[RF_3370496_8]** **[RF_3370496_14]** **[RF_3370496_5]**
- The company **expects negative operating leverage in 2024** and does not anticipate achieving **positive operating leverage until 2025**, indicating profitability challenges.  **[RF_3370496_12]**
- **Net interest income declined by approximately 4.5%** in the quarter due to **higher deposit costs** and **mix normalization**, with pressure on the **net interest margin** expected to continue in the first half of 2024.  **[RF_3370496_1]** **[RF_3370496_11]**

64d5f055b656b03f2096b86d573bbb5182a5e71bd59f35ba17dc225e76684405

- **Limited loan growth expectations:** Regions Financial projects only **approximately 1% loan growth** for full year 2025, citing headwinds in commercial real estate and consumer lending that will offset C&I growth of **a little over 3%**.  **[RF_3412792_8]**
- **Elevated net charge-offs anticipated:** The company expects full year net charge-offs to be towards the **higher end of their through-the-cycle range** of **40 to 50 basis points**, with **losses more elevated in the first half of the year**, attributable to certain loan portfolios.  **[RF_3412792_3]**
- **Challenges in achieving higher loan growth despite favorable markets:** Despite operating in markets with strong economic and population growth, Regions Financial faces obstacles in achieving robust loan growth due to customers' excess liquidity, low loan utilization rates, competition, and stagnant consumer and real estate lending.  **[RF_3412792_15]**

29fb4c870f16e5ec1ba29c31bfa9d72766eeb63480a60181bd3a396cfa52de3a

- **Regions Financial expects to achieve positive operating leverage in 2025** by focusing on expense management and investing in growth areas such as Treasury Management (relationships up **5%**, revenue up **18%** year-over-year  **[RF_3403064_10]** ), Wealth Management (relationships up **9%**, assets under management up **9%**  **[RF_3403064_10]** ), and Capital Markets, which is continuing to grow.  **[RF_3403064_10]**
- **Strong customer engagement positions Regions to grow fee revenue**, particularly in debit card fees; Regions' customer base has been **first in Visa's power score for 42 quarters in a row**, reflecting active debit card usage, and the bank aims to grow checking accounts to capitalize on this engagement.  **[RF_3403064_12]**
- **Expected net interest income growth in Q4 and into 2025**, driven by declining deposit costs due to maturing CDs rolling over at lower rates, and the bank's presence in markets with strong economic prospects, allowing it to benefit when customer investment resumes.  **[RF_3403064_5]** **[RF_3403064_8]**

70277b0577bfb3cfffd89797190b0a6fd0313175a9559c56ac9c29633e111101

- **Economic activity is expected to pick up in the second half of 2024**, leading to modest growth in core middle market banking, small business banking, mortgage, and EnerBank lending.  **[RF_3370496_5]**
- **Improvement in the senior housing sector** is observed, with occupancy rates increasing, potentially reducing nonperforming loans in that segment.  **[RF_3370496_21]**
- **Net interest margin is anticipated to recover**, potentially exiting the year at **around 3.60%**, with net interest income growth in the second half of 2024.  **[RF_3370496_11]**

68ec29ca7c79e08ebe6df77794e9017037a332806c11726f53145ee7cf47413a

- **Persistent elevated credit charge-offs due to large exposures may continue to pressure earnings, with the possibility of higher charge-offs in some quarters.**  **[RF_3403064_7]**
- **Softer loan demand and weaker pipelines compared to the prior quarter may limit loan growth prospects into 2025, especially amid economic and political uncertainties.**  **[RF_3403064_5]**
- **Competitive pressures on deposit rates may challenge the bank's ability to grow deposits without compressing net interest margins, as they need to balance deposit growth with competitiveness in rates.**  **[RF_3403064_13]**

9bf06a82f9f8ef7e496c6bf974c195c7db00b5b7b25ae4b5886e46001f55abee

- **Increased expenses are eroding profitability, with adjusted noninterest expenses rising due to $20 million in expenses associated with market value adjustments on HR-related assets, and incremental increases that cannot be offset**.  **[RF_3393629_13]** **[RF_3393629_4]**
- **The company incurred a $50 million pretax loss on securities repositioning, which consumed capital that could have been used for share buybacks**.  **[RF_3393629_17]**
- **Significant upcoming investments in large technology projects, such as new deposit systems and loan systems, may further increase expenses and negatively impact the efficiency ratio**.  **[RF_3393629_21]**

9549b147655aa444f5acdeed9ab99fdff965a8689da07a622a745d00f8831de3

- **Regions Financial expects net interest income to grow towards the upper end of the $4.7 billion to $4.8 billion range**, driven by stabilizing deposit trends and benefits from fixed-rate asset turnover, even without further rate cuts.  **[RF_3393629_3]**
- **The company is well-positioned to benefit from a steepening yield curve**, with expectations of net interest margin increasing from the current 3.50% range to **3.75% to 3.80%** in a normalized rate environment.  **[RF_3393629_23]** **[RF_3393629_24]**
- **Regions Financial is committed to generating positive operating leverage in the second half of 2024**, focusing on controlling expenses, investing in technology, and aiming to improve the efficiency ratio to the lower 50% range over time.  **[RF_3393629_21]** **[RF_3393629_13]** **[RF_3393629_4]**

b9b35bd64c18225780a7c2e09b7dcd396971649f00d5e0f66569126477779418

- *• Strong Fee Income Growth:**
- **Treasury management fees increased 7% year-over-year**, reflecting growth in relationships and activities.  **[RF_3380109_19]**
- **Wealth management fees grew over 6% year-over-year**, due to increases in asset valuations and customer assets.  **[RF_3380109_19]**

39190ce955503bb2a8e07d4f369554ca6ede198d51916492729b14a55b8813ed

Regions Financial Corp (RF)

Financials