EX-99.2 3 rf-20201231xexhibitx992.htm EX-99.2 Document

Exhibit 99.2

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Regions Financial Corporation and Subsidiaries
Financial Supplement
Fourth Quarter 2020


Regions Financial Corporation and Subsidiaries                                
Financial Supplement to Fourth Quarter 2020 Earnings Release

Table of Contents
 
   Page
Financial Highlights  
Selected Ratios and Other Information  
Consolidated Statements of Operations  
Consolidated Average Daily Balances and Yield / Rate Analysis  
Pre-Tax Pre-Provision Income ("PPI") and Adjusted PPI  
Non-Interest Income, Mortgage Income, Wealth Management Income and Capital Markets Income  
Non-Interest Expense  
Reconciliation to GAAP Financial Measures  
Adjusted Efficiency Ratios, Adjusted Fee Income Ratios, Adjusted Non-Interest Income / Expense, Adjusted Operating Leverage Ratios, and Return Ratios
Credit Quality  
Allowance for Credit Losses, Net Charge-Offs and Related Ratios  
Non-Accrual Loans (excludes loans held for sale), Early and Late Stage Delinquencies  
Troubled Debt Restructurings  
Consolidated Balance Sheets  
  
Loans   
Deposits  
Reconciliation to GAAP Financial Measures  
Tangible Common Ratios
Forward-Looking Statements



Regions Financial Corporation and Subsidiaries                                
Financial Supplement to Fourth Quarter 2020 Earnings Release
Financial Highlights
Quarter Ended
($ amounts in millions, except per share data)12/31/20209/30/20206/30/20203/31/202012/31/2019
Earnings Summary
Interest income - taxable equivalent$1,072 $1,071 $1,076 $1,091 $1,111 
Interest expense - taxable equivalent55 71 91 151 180 
Net interest income - taxable equivalent1,017 1,000 985 940 931 
Less: Taxable-equivalent adjustment11 12 13 12 13 
Net interest income 1,006 988 972 928 918 
Provision (credit) for credit losses (1)
(38)113 882 373 96 
Net interest income after provision (credit) for credit losses (1)
1,044 875 90 555 822 
Non-interest income680 655 573 485 562 
Non-interest expense987 896 924 836 897 
Income (loss) before income taxes737 634 (261)204 487 
Income tax expense (benefit) 121 104 (47)42 98 
Net income (loss)$616 $530 $(214)$162 $389 
Net income (loss) available to common shareholders$588 $501 $(237)$139 $366 
Earnings (loss) per common share - basic0.61 0.52 (0.25)0.15 0.38 
Earnings (loss) per common share - diluted0.61 0.52 (0.25)0.14 0.38 
Balance Sheet Summary
At quarter-end
Loans, net of unearned income$85,266 $88,359 $90,548 $88,098 $82,963 
Allowance for credit losses(2,293 )(2,425 )(2,425 )(1,665 )(914 )
Assets147,389 145,180 144,070 133,542 126,240 
Deposits122,479 118,445 116,779 100,030 97,475 
Long-term borrowings - Federal Home Loan Bank advances— — 401 4,651 2,501 
Long-term borrowings - Other3,569 4,919 6,007 5,454 5,378 
Shareholders' equity18,111 17,904 17,602 17,332 16,295 
Average balances
Loans, net of unearned income$86,664 $89,370 $91,964 $83,249 $82,392 
Assets144,819 142,845 139,820 124,771 124,138 
Deposits119,767 116,656 110,921 95,672 94,512 
Long-term borrowings - Federal Home Loan Bank advances— 392 1,266 3,003 2,659 
Long-term borrowings - Other4,634 5,437 6,301 5,399 5,942 
Shareholders' equity17,915 17,759 17,384 16,460 16,564 
_______
(1)Upon adoption of the Current Expected Credit Losses (CECL) accounting guidance on January 1, 2020, the provision for credit losses is the sum of the provision for loan losses and the provision for unfunded credit commitments. Prior to the adoption of CECL, the provision for unfunded commitments was included in other non-interest expense.



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Regions Financial Corporation and Subsidiaries                                
Financial Supplement to Fourth Quarter 2020 Earnings Release
Selected Ratios and Other Information
As of and for Quarter Ended
 12/31/20209/30/20206/30/20203/31/202012/31/2019
Return on average assets* (1)
1.69 %1.48 %(0.61)%0.52 %1.24 %
Return on average common shareholders' equity*14.37 %12.38 %(5.96)%3.69 %9.51 %
Return on average tangible common shareholders’ equity (non-GAAP)* (2)
21.15 %18.32 %(8.90)%5.43 %13.95 %
Efficiency ratio58.1 %54.1 %59.4 %58.6 %60.1 %
Adjusted efficiency ratio (non-GAAP) (2)
55.8 %55.3 %57.7 %57.9 %58.1 %
Common book value per share$17.13 $16.92 $16.61 $16.73 $15.65 
Tangible common book value per share (non-GAAP) (2)
$11.71 $11.49 $11.16 $11.67 $10.58 
Tangible common shareholders’ equity to tangible assets (non-GAAP) (2)
7.91 %7.88 %7.72 %8.68 %8.34 %
Common equity (3)
$10,525 $10,092 $9,716 $10,294 $10,228 
Total risk-weighted assets (3)
$107,020 $108,048 $109,539 $108,985 $105,705 
Common equity Tier 1 ratio (3)
9.8 %9.3 %8.9 %9.4 %9.7 %
Tier 1 capital ratio (3)
11.4 %10.8 %10.4 %10.6 %10.9 %
Total risk-based capital ratio (3)
13.6 %13.0 %12.6 %12.5 %12.7 %
Leverage ratio (3)
8.7 %8.5 %8.4 %9.6 %9.6 %
Effective tax rate 16.5 %16.5 %18.3 %20.6 %20.3 %
Allowance for credit losses as a percentage of loans, net of unearned income2.69 %2.74 %2.68 %1.89 %1.10 %
Allowance for credit losses as a percentage of loans excluding PPP, net of unearned income (non-GAAP)(2)
2.81 %2.90 %2.82 %1.89 %1.10 %
Allowance for credit losses to non-performing loans, excluding loans held for sale 308 %316 %395 %261 %180 %
Net interest margin (FTE)* 3.13 %3.13 %3.19 %3.44 %3.39 %
Loans, net of unearned income, to total deposits69.6 %74.6 %77.5 %88.1 %85.1 %
Net charge-offs as a percentage of average loans*0.43 %0.50 %0.80 %0.59 %0.46 %
Non-accrual loans, excluding loans held for sale, as a percentage of loans0.87 %0.87 %0.68 %0.72 %0.61 %
Non-performing assets (excluding loans 90 days past due) as a percentage of loans, foreclosed properties, non-marketable investments and non-performing loans held for sale0.91 %0.90 %0.74 %0.79 %0.70 %
Non-performing assets (including loans 90 days past due) as a percentage of loans, foreclosed properties, non-marketable investments and non-performing loans held for sale (4)
1.10 %1.08 %0.91 %0.96 %0.89 %
Associate headcount—full-time equivalent (5)
19,406 19,766 20,073 19,743 19,564 
ATMs 2,083 2,058 2,038 2,042 2,028 
Branch Statistics
Full service1,333 1,334 1,340 1,374 1,374 
Drive-through/transaction service only36 47 51 53 54 
Total branch outlets1,369 1,381 1,391 1,427 1,428 
Year Ended December 31
20202019
Return on average assets (1)
0.79 %1.26 %
Return on average common stockholders' equity6.24 %10.07 %
Return on average tangible common stockholders’ equity (non-GAAP) (2)
9.23 %14.91 %
Efficiency ratio 57.5 %59.0 %
Adjusted efficiency ratio (non-GAAP) (2)
56.6 %58.0 %
Effective tax rate 16.8 %20.3 %
Net interest margin (FTE) 3.21 %3.45 %
Net charge-offs as a percentage of average loans0.58 %0.43 %
*Annualized
(1)Calculated by dividing net income by consolidated average assets.
(2)See reconciliation of GAAP to non-GAAP Financial Measures on pages 8, 12, 13, 14, 16, 22, 23, and 26.
(3)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.
(4)Excludes guaranteed residential first mortgages that are 90+ days past due and still accruing. Refer to the footnotes on page 16 for amounts related to these loans.
(5)Associate headcount for the second quarter of 2020 includes 463 associates from the Ascentium acquisition.


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Regions Financial Corporation and Subsidiaries                                
Financial Supplement to Fourth Quarter 2020 Earnings Release
Consolidated Statements of Operations (unaudited)
Quarter Ended
($ amounts in millions, except per share data)12/31/20209/30/20206/30/20203/31/202012/31/2019
Interest income on:
Loans, including fees $906 $903 $898 $903 $923 
Debt securities136 140 148 158 155 
Loans held for sale9 8 6 5 5 
Other earning assets 10 8 11 13 15 
Total interest income1,061 1,059 1,063 1,079 1,098 
Interest expense on:
Deposits24 32 40 84 98 
Short-term borrowings— — 2 8 12 
Long-term borrowings31 39 49 59 70 
Total interest expense55 71 91 151 180 
Net interest income 1,006 988 972 928 918 
Provision (credit) for credit losses (1)
(38)113 882 373 96 
Net interest income after provision (credit) for credit losses (1)
1,044 875 90 555 822 
Non-interest income:
Service charges on deposit accounts160 152 131 178 187 
Card and ATM fees117 115 101 105 112 
Wealth management income89 85 79 84 84 
Capital markets income110 61 95 9 61 
Mortgage income75 108 82 68 49 
Securities gains (losses), net— 3 1 — (2)
Other129 131 84 41 71 
Total non-interest income680 655 573 485 562 
Non-interest expense:
Salaries and employee benefits581 525 527 467 488 
Net occupancy expense78 80 76 79 79 
Furniture and equipment expense90 89 86 83 82 
Other238 202 235 207 248 
Total non-interest expense987 896 924 836 897 
Income (loss) before income taxes737 634 (261)204 487 
Income tax expense (benefit)121 104 (47)42 98 
Net income (loss)$616 $530 $(214)$162 $389 
Net income (loss) available to common shareholders$588 $501 $(237)$139 $366 
Weighted-average shares outstanding—during quarter:
Basic960 960 960 957 963 
Diluted965 962 960 961 968 
Actual shares outstanding—end of quarter960 960 960 957 957 
Earnings (loss) per common share: (2)
Basic$0.61 $0.52 $(0.25)$0.15 $0.38 
Diluted$0.61 $0.52 $(0.25)$0.14 $0.38 
Taxable-equivalent net interest income$1,017 $1,000 $985 $940 $931 
________
(1) Upon adoption of CECL on January 1, 2020, the provision for credit losses is the sum of the provision for loan losses and the provision for unfunded credit commitments. Prior to the
adoption of CECL, the provision for unfunded commitments was included in other non-interest expense.
(2) Quarterly amounts may not add to year-to-date amounts due to rounding.





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Regions Financial Corporation and Subsidiaries                                
Financial Supplement to Fourth Quarter 2020 Earnings Release
Consolidated Statements of Operations (continued) (unaudited)
Twelve Months Ended December 31
($ amounts in millions, except per share data)20202019
Interest income on:
Loans, including fees$3,610 $3,866 
Debt securities582 643 
Loans held for sale28 17 
Other earning assets 42 70 
Total interest income4,262 4,596 
Interest expense on:
Deposits180 447 
Short-term borrowings10 53 
Long-term borrowings178 351 
Total interest expense368 851 
Net interest income3,894 3,745 
Provision for credit losses (1)
1,330 387 
Net interest income after provision for credit losses (1)
2,564 3,358 
Non-interest income:
Service charges on deposit accounts621 729 
Card and ATM fees438 455 
Wealth management income 337 322 
Capital markets income275 178 
Mortgage income333 163 
Securities gains (losses), net4 (28)
Other385 297 
Total non-interest income2,393 2,116 
Non-interest expense:
Salaries and employee benefits2,100 1,916 
Net occupancy expense313 321 
Furniture and equipment expense348 325 
Other882 927 
Total non-interest expense3,643 3,489 
Income before income taxes1,314 1,985 
Income tax expense 220 403 
Net income$1,094 $1,582 
Net income available to common shareholders$991 $1,503 
Weighted-average shares outstanding—during year:
Basic959 995 
Diluted962 999 
Actual shares outstanding—end of period960 957 
Earnings per common share:
Basic$1.03 $1.51 
Diluted$1.03 $1.50 
Taxable-equivalent net interest income$3,942 $3,798 
________
(1) Upon adoption of CECL on January 1, 2020, the provision for credit losses is the sum of the provision for loan losses and the provision for unfunded credit commitments. Prior to the
adoption of CECL, the provision for unfunded commitments was included in other non-interest expense.


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Regions Financial Corporation and Subsidiaries                                
Financial Supplement to Fourth Quarter 2020 Earnings Release
Consolidated Average Daily Balances and Yield/Rate Analysis
 Quarter Ended
 12/31/20209/30/2020
($ amounts in millions; yields on taxable-equivalent basis)Average BalanceIncome/ ExpenseYield/ RateAverage BalanceIncome/ ExpenseYield/ Rate
Assets
Earning assets:
Debt securities (1)
$26,779 $136 2.02 %$24,950 $140 2.24 %
Loans held for sale1,253 9 2.62 1,147 8 2.89 
Loans, net of unearned income:
Commercial and industrial 43,889 491 4.44 46,405 474 4.05 
Commercial real estate mortgage—owner-occupied5,405 62 4.49 5,498 63 4.50 
Commercial real estate construction—owner-occupied303 3 3.95 318 3 4.04 
Commercial investor real estate mortgage5,549 32 2.22 5,324 31 2.27 
Commercial investor real estate construction1,899 13 2.82 1,974 15 2.87 
Residential first mortgage16,433 135 3.30 15,786 135 3.41 
Home equity7,411 67 3.61 7,727 70 3.59 
Indirect—vehicles1,023 8 3.22 1,223 10 3.25 
Indirect—other consumer2,514 49 7.74 2,835 57 8.06 
Consumer credit card1,190 37 12.40 1,194 38 12.62 
Other consumer1,048 20 7.47 1,086 19 7.36 
Total loans, net of unearned income86,664 917 4.20 89,370 915 4.06 
Other earning assets14,657 10 0.29 11,695 8 0.30 
Total earning assets 129,353 1,072 3.29 127,162 1,071 3.35 
Unrealized gains/(losses) on debt securities available for sale, net (1)
1,055 1,143 
Allowance for loan losses(2,286)(2,308)
Cash and due from banks2,027 2,174 
Other non-earning assets14,670 14,674 
$144,819 $142,845 
Liabilities and Shareholders’ Equity
Interest-bearing liabilities:
Savings $11,374 3 0.12 $10,935 4 0.14 
Interest-bearing checking22,940 3 0.05 22,098 4 0.07 
Money market 29,312 5 0.06 29,146 8 0.12 
Time deposits5,598 13 0.86 6,150 16 1.08 
Other deposits11 — 1.93 13 — 1.87 
Total interest-bearing deposits (2)
69,235 24 0.13 68,342 32 0.19 
Federal funds purchased and securities sold under agreements to repurchase35 — 0.24 — — — 
Long-term borrowings4,634 31 2.66 5,829 39 2.63 
Total interest-bearing liabilities73,904 55 0.29 74,171 71 0.38 
Non-interest-bearing deposits (2)
50,532 — — 48,314 — — 
Total funding sources124,436 55 0.17 122,485 71 0.23 
Net interest spread (1)
3.00 2.97 
Other liabilities2,468 2,576 
Shareholders’ equity17,915 17,759 
Noncontrolling interest— 25 
$144,819 $142,845 
Net interest income /margin FTE basis (1)
$1,017 3.13 %$1,000 3.13 %
_______
(1) Debt securities are included on an amortized cost basis with yield and net interest margin calculated accordingly.
(2)    Total deposit costs may be calculated by dividing total interest expense on deposits by the sum of interest-bearing deposits and non-interest bearing deposits. The rates for total deposit costs equal 0.08% for the quarter ended December 31, 2020 and 0.11% for the quarter ended September 30, 2020.


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Regions Financial Corporation and Subsidiaries                                
Financial Supplement to Fourth Quarter 2020 Earnings Release
Consolidated Average Daily Balances and Yield/Rate Analysis (continued)
 Quarter Ended
 6/30/20203/31/202012/31/2019
($ amounts in millions; yields on taxable-equivalent basis)Average BalanceIncome/ ExpenseYield/ RateAverage BalanceIncome/ ExpenseYield/ RateAverage BalanceIncome/ ExpenseYield/ Rate
Assets
Earning assets:
Debt securities (1)
$23,828 $148 2.49 %$23,766 $158 2.66 %$23,830 $155 2.61 %
Loans held for sale807 6 3.06 514 5 3.72 540 5 3.58 
Loans, net of unearned income:
Commercial and industrial 49,296 461 3.74 40,519 405 4.00 39,743 416 4.14 
Commercial real estate mortgage—owner-occupied5,492 61 4.41 5,509 63 4.51 5,489 63 4.47 
Commercial real estate construction—owner-occupied312 3 4.20 323 4 4.62 357 4 4.59 
Commercial investor real estate mortgage5,150 33 2.53 4,975 46 3.69 4,841 49 3.97 
Commercial investor real estate construction1,869 15 3.30 1,673 19 4.40 1,544 19 4.80 
Residential first mortgage14,884 130 3.50 14,469 140 3.86 14,416 141 3.92 
Home equity8,042 73 3.65 8,275 89 4.31 8,478 95 4.46 
Indirect—vehicles1,441 11 3.24 1,679 14 3.26 1,948 16 3.29 
Indirect—other consumer3,111 65 8.36 3,263 71 8.74 3,005 67 8.93 
Consumer credit card1,230 36 11.65 1,348 41 12.26 1,337 42 12.35 
Other consumer1,137 23 7.54 1,216 23 7.95 1,234 24 7.96 
Total loans, net of unearned income 91,964 911 3.96 83,249 915 4.40 82,392 936 4.51 
Other earning assets7,541 11 0.53 2,302 13 2.37 2,210 15 2.63 
Total earning assets
124,140 1,076 3.46 109,831 1,091 3.97 108,972 1,111 4.05 
Unrealized gains/(losses) on debt securities available for sale, net (1)
1,031 510 296 
Allowance for loan losses(1,860)(1,315)(872)
Cash and due from banks2,070 1,915 1,939 
Other non-earning assets14,439 13,830 13,803 
$139,820 $124,771 $124,138 
Liabilities and Shareholders’ Equity
Interest-bearing liabilities:
Savings $10,152 3 0.13 $8,822 4 0.17 $8,616 3 0.14 
Interest-bearing checking21,755 6 0.11 19,273 22 0.47 18,668 26 0.57 
Money market 27,870 10 0.13 25,151 28 0.46 25,289 36 0.56 
Time deposits6,690 21 1.26 7,302 26 1.44 7,543 32 1.60 
Other deposits72 — 1.64 919 4 1.57 298 1 1.69 
Total interest-bearing deposits (2)
66,539 40 0.24 61,467 84 0.55 60,414 98 0.64 
Federal funds purchased and securities sold under agreements to repurchase— — — 151 1 1.39 110 1 1.58 
Other short-term borrowings1,558 2 0.53 1,644 7 1.69 2,164 11 2.08 
Long-term borrowings7,567 49 2.56 8,402 59 2.81 8,601 70 3.23 
Total interest-bearing liabilities 75,664 91 0.48 71,664 151 0.85 71,289 180 1.00 
Non-interest-bearing deposits (2)
44,382 — — 34,205 — — 34,098 — — 
Total funding sources120,046 91 0.30 105,869 151 0.57 105,387 180 0.67 
Net interest spread (1)
2.98 3.12 3.05 
Other liabilities2,390 2,442 2,187 
Shareholders’ equity17,384 16,460 16,564 
$139,820 $124,771 $124,138 
Net interest income/margin FTE basis (1)
$985 3.19 %$940 3.44 %$931 3.39 %
_______
(1) Debt securities are included on an amortized cost basis with yield and net interest margin calculated accordingly.
(2) Total deposit costs may be calculated by dividing total interest expense on deposits by the sum of interest-bearing deposits and non-interest bearing deposits. The rates for total deposit costs equal 0.14% for the quarter ended June 30, 2020, 0.35% for the quarter ended March 31, 2020 and 0.41% for the quarter ended December 31, 2019.

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Regions Financial Corporation and Subsidiaries                                
Financial Supplement to Fourth Quarter 2020 Earnings Release
Consolidated Average Daily Balances and Yield/Rate Analysis (continued)
 Year Ended December 31
 20202019
($ amounts in millions; yields on taxable-equivalent basis)Average BalanceIncome/ ExpenseYield/ RateAverage BalanceIncome/ ExpenseYield/ Rate
Assets
Earning assets:
Debt securities—taxable (1)
$24,837 $582 2.34 %$24,274 $643 2.65 %
Loans held for sale932 28 2.95 450 17 3.75 
Loans, net of unearned income:
Commercial and industrial 45,028 1,831 4.05 40,162 1,759 4.36 
Commercial real estate mortgage—owner-occupied5,476 249 4.48 5,495 258 4.63 
Commercial real estate construction—owner-occupied314 13 4.21 401 19 4.69 
Commercial investor real estate mortgage5,251 142 2.66 4,782 211 4.35 
Commercial investor real estate construction1,854 62 3.31 1,672 90 5.29 
Residential first mortgage15,397 540 3.51 14,267 569 3.99 
Home equity7,862 299 3.80 8,799 419 4.76 
Indirect—vehicles1,341 43 3.24 2,421 82 3.40 
Indirect—other consumer2,929 242 8.26 2,713 244 9.00 
Consumer credit card1,240 152 12.23 1,309 170 12.98 
Other consumer1,121 85 7.59 1,227 98 8.03 
Total loans, net of unearned income87,813 3,658 4.15 83,248 3,919 4.69 
Other earning assets 9,070 42 0.47 2,202 70 3.17 
Total earning assets122,652 4,310 3.50 110,174 4,649 4.21 
Unrealized losses on debt securities available for sale, net (1)
935 (5)
Allowance for loan losses(1,944)(857)
Cash and due from banks2,047 1,895 
Other non-earning assets14,405 13,903 
$138,095 $125,110 
Liabilities and Shareholders’ Equity
Interest-bearing liabilities:
Savings $10,325 14 0.14 $8,719 14 0.16 
Interest-bearing checking21,522 35 0.16 18,772 125 0.67 
Money market 27,877 51 0.18 24,637 167 0.68 
Time deposits6,432 76 1.18 7,632 123 1.61 
Other deposits252 4 1.58 784 18 2.26 
Total interest-bearing deposits (2)
66,408 180 0.27 60,544 447 0.74 
Federal funds purchased and securities sold under agreements to repurchase46 1 1.18 227 5 2.28 
Other short-term borrowings797 9 1.13 2,014 48 2.35 
Long-term borrowings6,601 178 2.67 10,126 351 3.43 
Total interest-bearing liabilities73,852 368 0.50 72,911 851 1.17 
Non-interest-bearing deposits (2)
44,386 — — 33,869 — — 
Total funding sources118,238 368 0.31 106,780 851 0.79 
Net interest spread (1)
3.00 3.04 
Other liabilities2,469 2,245 
Shareholders’ equity17,382 16,082 
Noncontrolling interest6 3 
$138,095 $125,110 
Net interest income/margin FTE basis (1)
$3,942 3.21 %$3,798 3.45 %
_______
(1) Debt securities are included on an amortized cost basis with yield and net interest margin calculated accordingly.
(2) Total deposit costs may be calculated by dividing total interest expense on deposits by the sum of interest-bearing deposits and non-interest bearing deposits. The rates for total deposit costs equal 0.16% and 0.47% for the years ended December 31, 2020 and 2019, respectively.


7
Regions Financial Corporation and Subsidiaries                                
Financial Supplement to Fourth Quarter 2020 Earnings Release
Pre-Tax Pre-Provision Income ("PPI") and Adjusted PPI (non-GAAP)
The Pre-Tax Pre-Provision Income tables below present computations of pre-tax pre-provision income excluding certain adjustments (non-GAAP). Regions believes that the presentation of PPI and the exclusion of certain items from PPI provides a meaningful base for period-to-period comparisons, which management believes will assist investors in analyzing the operating results of the Company and predicting future performance. These non-GAAP financial measures are also used by management to assess the performance of Regions’ business. It is possible that the activities related to the adjustments may recur; however, management does not consider the activities related to the adjustments to be indications of ongoing operations. Regions believes that presentation of these non-GAAP financial measures will permit investors to assess 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 these 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 income that excludes certain adjustments does not represent the amount that effectively accrues directly to shareholders.
 Quarter Ended
($ amounts in millions)12/31/20209/30/20206/30/20203/31/202012/31/20194Q20 vs. 3Q204Q20 vs. 4Q19
Net income (loss) available to common shareholders (GAAP)$588 $501 $(237)$139 $366 $87 17.4 %$222 60.7 %
Preferred dividends (GAAP)28 29 23 23 23 (1)(3.4)%5 21.7 %
Income tax expense (benefit) (GAAP)121 104 (47)42 98 17 16.3 %23 23.5 %
Income (loss) before income taxes (GAAP)737 634 (261)204 487 103 16.2 %250 51.3 %
Provision (credit) for credit losses (GAAP) (1)
(38)113 882 373 96 (151)(133.6)%(134)(139.6)%
Pre-tax pre-provision income (non-GAAP)699 747 621 577 583 (48)(6.4)%116 19.9 %
Other adjustments:
Securities (gains) losses, net— (3)(1)— 2 3 100.0 %(2)(100.0)%
Valuation gain on equity investment(6)(44)— — — 38 86.4 %(6)NM
Leveraged lease termination gains, net— — — (2)— — NM— NM
Bank owned life insurance(2)
(25)— — — — (25)NM(25)NM
Salaries and employee benefits—severance charges26 2 2 1 — 24 NM26 NM
Branch consolidation, property and equipment charges7 3 10 11 12 4 133.3 %(5)(41.7)%
Contribution to the Regions Financial Corporation foundation10 — — — — 10 NM10 NM
Loss on early extinguishment of debt14 2 6 — 16 12 NM(2)(12.5)%
Professional, legal and regulatory expenses— — 7 — — — NM— NM
Acquisition expenses— — 1 — — — NM— NM
Total other adjustments26 (40)25 10 30 66 (165.0)%(4)(13.3)%
Adjusted pre-tax pre-provision income (non-GAAP)$725 $707 $646 $587 $613 $18 2.5 %$112 18.3 %
Year Ended
($ amounts in millions)12/31/202012/31/20192020 vs. 2019
Net income available to common shareholders (GAAP)$991 $1,503 $(512)(34.1)%
Preferred dividends (GAAP)103 79 24 30.4 %
Income tax expense (GAAP)220 403 (183)(45.4)%
Income before income taxes (GAAP)1,314 1,985 (671)(33.8)%
Provision for credit losses (GAAP) (1)
1,330 387 943 243.7 %
Pre-tax pre-provision income (non-GAAP)2,644 2,372 272 11.5 %
Other adjustments:
Gain on sale of affordable housing residential mortgage loans— (8)8 100.0 %
Securities (gains) losses, net(4)28 (32)(114.3)%
Valuation gain on equity investment(50)— (50)NM
Leveraged lease termination gains, net(2)(1)(1)(100.0)%
Bank owned life insurance(2)
(25)— (25)NM
Salaries and employee benefits—severance charges31 5 26 NM
Branch consolidation, property and equipment charges31 25 6 24.0 %
Contribution to the Regions Financial Corporation foundation10 — 10 NM
Loss on early extinguishment of debt22 16 6 37.5 
Professional, legal and regulatory expenses7 — 7 NM
Ascentium expenses1 — 1 NM
Total other adjustments21 65 (44)(67.7)%
Adjusted pre-tax pre-provision income (non-GAAP)$2,665 $2,437 $228 9.4 %
______
NM - Not Meaningful
(1) Upon adoption of CECL on January 1, 2020, the provision for credit losses is the sum of the provision for loan losses and the provision for unfunded credit commitments. Prior to the
adoption, the provision for unfunded commitments was included in other non-interest expense.
(2) During the fourth quarter of 2020, the Company recognized a gain on the exchange of BOLI policies.




8
Regions Financial Corporation and Subsidiaries                                
Financial Supplement to Fourth Quarter 2020 Earnings Release
Non-Interest Income
 Quarter Ended
($ amounts in millions)12/31/20209/30/20206/30/20203/31/202012/31/20194Q20 vs. 3Q204Q20 vs. 4Q19
Service charges on deposit accounts$160 $152 $131 $178 $187 $8 5.3 %$(27)(14.4)%
Card and ATM fees117 115 101 105 112 2 1.7 %5 4.5 %
Wealth management income89 85 79 84 84 4 4.7 %5 6.0 %
Capital markets income (1)
110 61 95 9 61 49 80.3 %49 80.3 %
Mortgage income75 108 82 68 49 (33)(30.6)%26 53.1 %
Commercial credit fee income 22 20 17 18 18 2 10.0 %4 22.2 %
Bank-owned life insurance43 17 18 17 18 26 152.9 %25 138.9 %
Securities gains (losses), net— 3 1 — (2)(3)(100.0)%2 100.0 %
Market value adjustments on employee benefit assets (2)
7 14 16 (25)7 (7)(50.0)%— — %
Valuation gain on equity investment6 44 — — — (38)(86.4)%6 NM
Other 51 36 33 31 28 15 41.7 %23 82.1 %
Total non-interest income$680 $655 $573 $485 $562 $25 3.8 %$118 21.0 %
Mortgage Income
Quarter Ended
($ amounts in millions)12/31/20209/30/20206/30/20203/31/202012/31/20194Q20 vs. 3Q204Q20 vs. 4Q19
Production and sales$74 $99 $75 $48 $30 $(25)(25.3)%$44 146.7 %
Loan servicing24 23 23 25 25 1 4.3 %(1)(4.0)%
MSR and related hedge impact:
MSRs fair value increase (decrease) due to change in valuation inputs or assumptions5 — (11)(83)40 5 NM(35)(87.5)%
MSRs hedge gain (loss)(11)— 13 97 (33)(11)NM22 66.7 %
MSRs change due to payment decay (3)
(17)(14)(18)(19)(13)(3)(21.4)%(4)(30.8)%
MSR and related hedge impact (3)
(23)(14)(16)(5)(6)(9)(64.3)%(17)(283.3)%
Total mortgage income$75 $108 $82 $68 $49 $(33)(30.6)%26 53.1 %
Mortgage production - purchased$1,669 $1,776 $1,390 $894 $1,014 $(107)(6.0)%$655 64.6 %
Mortgage production - refinanced1,717 1,712 2,563 576 639 5 0.3 %1,078 168.7 %
Total mortgage production (4)
$3,386 $3,488 $3,953 $1,470 $1,653 $(102)(2.9)%$1,733 104.8 %
 
Wealth Management Income
Quarter Ended
($ amounts in millions)12/31/20209/30/20206/30/20203/31/202012/31/20194Q20 vs. 3Q204Q20 vs. 4Q19
Investment management and trust fee income$67 $62 $62 $62 $64 $5 8.1 %$3 4.7 %
Investment services fee income22 23 17 22 20 (1)(4.3)%2 10.0 %
Total wealth management income (5)
$89 $85 $79 $84 $84 $4 4.7 %$5 6.0 %
Capital Markets Income
Quarter Ended
($ amounts in millions)12/31/20209/30/20206/30/20203/31/202012/31/20194Q20 vs. 3Q204Q20 vs. 4Q19
Capital markets income$110 $61 $95 $9 $61 $49 80.3 %$49 80.3 %
Less: Valuation adjustments on customer derivatives (6)
8 5 34 (34)5 3 60.0 %3 60.0 %
Capital markets income excluding valuation adjustments $102 $56 $61 $43 $56 $46 82.1 %$46 82.1 %
_________
NM - Not Meaningful
(1)Capital markets income primarily relates to capital raising activities that includes debt securities underwriting and placement, loan syndication and placement, as well as foreign exchange, derivative and merger and acquisition advisory services.
(2)These market value adjustments relate to assets held for employee benefits that are offset within salaries and employee benefits expense.
(3)In the first quarter of 2020, Regions revised its MSR decay methodology from a passage of time approach to a discounted net cash flow approach. The change in methodology results in shifts between decay and hedge impacts, but does not impact the overall valuation.
(4)Total mortgage production represents production during the period, including amounts sold into the secondary market as well as amounts retained in Regions' residential first mortgage loan portfolio.
(5)Total wealth management income presented above does not include the portion of service charges on deposit accounts and similar smaller dollar amounts that are also attributable to the wealth management segment.
(6)For the purposes of determining the fair value of customer derivatives, the Company considers the risk of nonperformance by counterparties, as well as the Company's own risk of nonperformance. The valuation adjustments above are reflective of the values associated with these considerations.

9
Regions Financial Corporation and Subsidiaries                                
Financial Supplement to Fourth Quarter 2020 Earnings Release
Non-Interest Income
 Twelve Months EndedYear-to-Date 12/31/2020 vs. 12/31/2019
($ amounts in millions)12/31/202012/31/2019AmountPercent
Service charges on deposit accounts$621 $729 $(108)(14.8)%
Card and ATM fees438 455 (17)(3.7)%
Wealth management income337 322 15 4.7 %
Capital markets income (1)
275 178 97 54.5 %
Mortgage income333 163 170 104.3 %
Commercial credit fee income 77 73 4 5.5 %
Bank-owned life insurance95 78 17 21.8 %
Securities gains (losses), net4 (28)32 114.3 %
Market value adjustments on employee benefit assets - defined benefit (2)
— 5 (5)(100.0)%
Market value adjustments on employee benefit assets - other (3)
12 11 1 9.1 %
Valuation gain on equity investment50 — 50 NM
Other 151 130 21 16.2 %
Total non-interest income$2,393 $2,116 $277 13.1 %
Mortgage Income
Twelve Months EndedYear-to-Date 12/31/2020 vs. 12/31/2019
($ amounts in millions)12/31/202012/31/2019AmountPercent
Production and sales$296 $106 $190 179.2 %
Loan servicing95 102 (7)(6.9)%
MSR and related hedge impact:
MSRs fair value increase (decrease) due to change in valuation inputs or assumptions(89)(62)(27)(43.5)%
MSRs hedge gain (loss)99 70 29 41.4 %
MSRs change due to payment decay (4)
(68)(53)(15)(28.3)%
MSR and related hedge impact (4)
(58)(45)(13)28.9 %
Total mortgage income$333 $163 $170 104.3 %
Mortgage production - purchased$5,729 $4,014 $1,715 42.7 %
Mortgage production - refinanced6,568 1,738 4,830 277.9 %
Total mortgage production (5)
$12,297 $5,752 $6,545 113.8 %
Wealth Management Income
Twelve Months EndedYear-to-Date 12/31/2020 vs. 12/31/2019
($ amounts in millions)12/31/202012/31/2019AmountPercent
Investment management and trust fee income$253 $243 $10 4.1 %
Investment services fee income84 79 5 6.3 %
Total wealth management income (6)
$337 $322 $15 4.7 %
Capital Markets Income
Twelve Months EndedYear-to-Date 12/31/2020 vs. 12/31/2019
($ amounts in millions)12/31/202012/31/2019AmountPercent
Capital markets income$275 $178 $97 54.5 %
Less: Valuation adjustments on customer derivatives (7)
13 (10)23 230.0 %
Capital markets income excluding valuation adjustments $262 $188 $74 39.4 %
_________
NM - Not Meaningful
(1)Capital markets income primarily relates to capital raising activities that includes debt securities underwriting and placement, loan syndication and placement, as well as foreign exchange, derivative and merger and acquisition advisory services.
(2)During the second quarter of 2019, the Company reallocated these employee benefit assets from primarily equity securities to fixed income investments. Market valuation adjustments for fixed income investments are recorded in other comprehensive income, and as such these adjustments have not impacted non-interest income since the first quarter of 2019.
(3)These market value adjustments relate to assets held for employee benefits that are offset within salaries and employee benefits expense.
(4)In the first quarter of 2020, Regions revised its MSR decay methodology from a passage of time approach to a discounted net cash flow approach. The change in methodology results in shifts between decay and hedge impacts, but does not impact the overall valuation.
(5)Total mortgage production represents production during the period, including amounts sold into the secondary market as well as amounts retained in Regions' residential first mortgage loan portfolio.
(6)Total wealth management income presented above does not include the portion of service charges on deposit accounts and similar smaller dollar amounts that are also attributable to the wealth management segment.
(7)For the purposes of determining the fair value of customer derivatives, the Company considers the risk of nonperformance by counterparties, as well as the Company's own risk of nonperformance. The valuation adjustments above are reflective of the values associated with these considerations.

10
Regions Financial Corporation and Subsidiaries                                
Financial Supplement to Fourth Quarter 2020 Earnings Release
Non-Interest Expense
Quarter Ended
($ amounts in millions)12/31/20209/30/20206/30/20203/31/202012/31/20194Q20 vs. 3Q204Q20 vs. 4Q19
Salaries and employee benefits$581 $525 $527 $467 $488 $56 10.7 %$93 19.1 %
Net occupancy expense78 80 76 79 79 (2)(2.5)%(1)(1.3)%
Furniture and equipment expense90 89 86 83 82 1 1.1 %8 9.8 %
Outside services37 44 44 45 44 (7)(15.9)%(7)(15.9)%
Professional, legal and regulatory expenses 21 22 28 18 28 (1)(4.5)%(7)(25.0)%
Marketing26 22 22 24 28 4 18.2 %(2)(7.1)%
FDIC insurance assessments12 10 15 11 11 2 20.0 %1 9.1 %
Credit/checkcard expenses13 12 12 13 15 1 8.3 %(2)(13.3)%
Branch consolidation, property and equipment charges 7 3 10 11 12 4 133.3 %(5)(41.7)%
Visa class B shares expense6 5 9 4 2 1 20.0 %4 200.0 %
Provision (credit) for unfunded credit losses (1)
— — — — (3)— — %3 100.0 %
Loss on early extinguishment of debt14 2 6 — 16 12 NM(2)(12.5)%
Other102 82 89 81 95 20 24.4 %7 7.4 %
Total non-interest expense$987 $896 $924 $836 $897 $91 10.2 %$90 10.0 %
Twelve Months EndedYear-to-Date 12/31/2020 vs. 12/31/2019
($ amounts in millions)12/31/202012/31/2019AmountPercent
Salaries and employee benefits $2,100 $1,916 $184 9.6 %
Net occupancy expense313 321 (8)(2.5)%
Furniture and equipment expense348 325 23 7.1 %
Outside services170 189 (19)(10.1)%
Professional, legal and regulatory expenses 89 95 (6)(6.3)%
Marketing94 97 (3)(3.1)%
FDIC insurance assessments48 48 — — %
Credit/checkcard expenses50 68 (18)(26.5)%
Branch consolidation, property and equipment charges 31 25 6 24.0 %
Visa class B shares expense24 14 10 71.4 %
Provision (credit) for unfunded credit losses (1)
— (6)6 100.0 %
Loss on early extinguishment of debt22 16 6 37.5 %
Other354 381 (27)(7.1)%
Total non-interest expense$3,643 $3,489 $154 4.4 %
_________
NM - Not Meaningful
(1)Upon adoption of CECL on January 1, 2020, the provision for credit losses presented within net interest income after provision for credit losses is the sum of the provision for loan losses and the provision for unfunded credit commitments. Prior to the adoption of CECL, the provision for unfunded commitments was included in other non-interest expense.




11
Regions Financial Corporation and Subsidiaries                                
Financial Supplement to Fourth Quarter 2020 Earnings Release
Reconciliation to GAAP Financial Measures
Adjusted Efficiency Ratios, Adjusted Fee Income Ratios, Adjusted Non-Interest Income/Expense, and Adjusted Operating Leverage Ratios
The table below and on the following page present computations of the efficiency ratio, which is a measure of productivity, generally calculated as non-interest expense divided by total revenue; and the fee income ratio, generally calculated as non-interest income divided by total revenue. Management uses these ratios to monitor performance and believes these measures provide meaningful information to investors. Non-interest expense (GAAP) is presented excluding certain adjustments to arrive at adjusted non-interest expense (non-GAAP), which is the numerator for the efficiency ratio. Non-interest income (GAAP) is presented excluding certain adjustments to arrive at adjusted non-interest income (non-GAAP), which is the numerator for the fee income ratio. Net interest income and non-interest income are added together to arrive at total revenue. Adjustments are made to arrive at adjusted total revenue (non-GAAP). Net interest income on a taxable-equivalent basis and non-interest income are added together to arrive at total revenue on a taxable-equivalent basis. Adjustments are made to arrive at adjusted total revenue on a taxable-equivalent basis (non-GAAP), which is the denominator for the fee income and efficiency ratios. Regions believes that the exclusion of these adjustments provides a meaningful base for period-to-period comparisons, which management believes will assist investors in analyzing the operating results of the Company and predicting future performance. These non-GAAP financial measures are also used by management to assess the performance of Regions’ business. It is possible that the activities related to the adjustments may recur; however, management does not consider the activities related to the adjustments to be indications of ongoing operations. The table on the following page also presents a computation of the operating leverage ratio (non-GAAP) which is the period to period percentage change in adjusted total revenue on a taxable-equivalent basis (non-GAAP) less the percentage change in adjusted non-interest expense (non-GAAP). Regions believes that presentation of these non-GAAP financial measures will permit investors to assess the performance of the Company on the same basis as that applied by management.
 Quarter Ended
($ amounts in millions) 12/31/20209/30/20206/30/20203/31/202012/31/20194Q20 vs. 3Q204Q20 vs. 4Q19
Non-interest expense (GAAP)A$987 $896 $924 $836 $897 $91 10.2 %$90 10.0 %
Adjustments:
Contribution to the Regions Financial Corporation foundation (10)— — — — (10)NM(10)NM
Branch consolidation, property and equipment charges(7)(3)(10)(11)(12)(4)(133.3)%5 41.7 %
Salary and employee benefits—severance charges(26)(2)(2)(1)— (24)NM(26)NM
Loss on early extinguishment of debt(14)(2)(6)— (16)(12)NM2 12.5 %
Professional, legal and regulatory expenses— — (7)— — — NM— NM
Acquisition expenses— — (1)— — — NM— NM
Adjusted non-interest expense (non-GAAP)B$930 $889 $898 $824 $869 $41 4.6 %$61 7.0 %
Net interest income (GAAP)C$1,006 $988 $972 $928 $918 $18 1.8 %889.6 %
Taxable-equivalent adjustment11 12 13 12 13 (1)(8.3)%(2)(15.4)%
Net interest income, taxable-equivalent basisD$1,017 $1,000 $985 $940 $931 $17 1.7 %$86 9.2 %
Non-interest income (GAAP)E680 655 573 485 562 25 3.8 %118 21.0 %
Adjustments:
Securities (gains) losses, net— (3)(1)— 2 3 100.0 %(2)(100.0)%
Valuation gain on equity investment(6)(44)— — — 38 86.4 %(6)NM
Leveraged lease termination gains— — — (2)— — NM— NM
Bank owned life insurance(1)
(25)— — — — (25)NM(25)NM
Adjusted non-interest income (non-GAAP)F$649 $608 $572 $483 $564 416.74 %8515.1 %
Total revenueC+E=G$1,686 $1,643 $1,545 $1,413 $1,480 $43 2.6 %$206 13.9 %
Adjusted total revenue (non-GAAP)C+F=H$1,655 $1,596 $1,544 $1,411 $1,482 $59 3.7 %$173 11.7 %
Total revenue, taxable-equivalent basisD+E=I$1,697 $1,655 $1,558 $1,425 $1,493 $42 2.5 %$204 13.7 %
Adjusted total revenue, taxable-equivalent basis (non-GAAP)D+F=J$1,666 $1,608 $1,557 $1,423 $1,495 $58 3.6 %$171 11.4 %
Efficiency ratio (GAAP)(2)
A/I58.1 %54.1 %59.4 %58.6 %60.1 %
Adjusted efficiency ratio (non-GAAP)(2)
B/J55.8 %55.3 %57.7 %57.9 %58.1 %
Fee income ratio (GAAP)(2)
E/I40.1 %39.6 %36.8 %34.0 %37.6 %
Adjusted fee income ratio (non-GAAP)(2)
F/J38.9 %37.8 %36.8 %34.0 %37.7 %
________
NM - Not Meaningful
(1) During the fourth quarter of 2020, the Company recognized a gain on the exchange of BOLI policies.
(2)Amounts have been calculated using whole dollar values.







12
Regions Financial Corporation and Subsidiaries                                
Financial Supplement to Fourth Quarter 2020 Earnings Release
Reconciliation to GAAP Financial Measures
Adjusted Efficiency Ratios, Adjusted Fee Income Ratios, Adjusted Non-Interest Income/Expense, and Adjusted Operating Leverage Ratios (continued)
Twelve Months Ended December 31
($ amounts in millions)202020192020 vs. 2019
Non-interest expense (GAAP)K$3,643 $3,489 1544.4 %
Adjustments:
Contribution to the Regions Financial Corporation foundation (10)— (10)NM
Branch consolidation, property and equipment charges(31)(25)(6)(24.0)%
Salary and employee benefits—severance charges(31)(5)(26)NM
Loss on early extinguishment of debt(22)(16)(6)37.5 %
Professional, legal and regulatory expenses(7)— (7)NM
Acquisition expenses(1)— (1)NM
Adjusted non-interest expense (non-GAAP)L$3,541 $3,443 $98 2.8 %
Net interest income (GAAP) M$3,894 $3,745 1494.0 %
Taxable-equivalent adjustment48 53 (5)(9.4)%
Net interest income, taxable-equivalent basisN$3,942 $3,798 $144 3.8 %
Non-interest income (GAAP)O$2,393 $2,116 27713.1 %
Adjustments:
Securities (gains) losses, net(4)28 (32)(114.3)%
Valuation gain on equity investment(50)— (50)NM
Leveraged lease termination gains(2)(1)(1)(100.0)%
Bank owned life insurance(1)
(25)— (25)NM
Gain on sale of affordable housing residential mortgage loans (2)
— (8)8100.0 %
Adjusted non-interest income (non-GAAP)P$2,312 $2,135 $177 8.3 %
Total revenueM+O=Q$6,287 $5,861 $426 7.3 %
Adjusted total revenue (non-GAAP)M+P=R$6,206 $5,880 $326 5.5 %
Total revenue, taxable-equivalent basisN+O=S$6,335 $5,914 $421 7.1 %
Adjusted total revenue, taxable-equivalent basis (non-GAAP)N+P=T$6,254 $5,933 $321 5.4 %
Operating leverage ratio (GAAP)(3)
S-K2.7 %
Adjusted operating leverage ratio (non-GAAP)(3)
T-L2.6 %
Efficiency ratio (GAAP)(3)
K/S57.5 %59.0 %
Adjusted efficiency ratio (non-GAAP)(3)
L/T56.6 %58.0 %
Fee income ratio (GAAP)(3)
O/S37.8 %35.8 %
Adjusted fee income ratio (non-GAAP)(3)
P/T37.0 %36.0 %
______
NM - Not Meaningful
(1)During the fourth quarter of 2020, the Company recognized a gain on the exchange of BOLI policies.
(2)The gain on sale of affordable housing residential mortgage loans in the first quarter of 2019 was the result of the sale of approximately $167 million of loans.
(3)Amounts have been calculated using whole dollar values.






13
Regions Financial Corporation and Subsidiaries                                
Financial Supplement to Fourth Quarter 2020 Earnings Release
Reconciliation to GAAP Financial Measure

Return Ratio

The table below provides a calculation of “return on average tangible common shareholders’ equity”. Tangible common shareholders’ equity ratios have become a focus of some investors and management believes they may assist investors in analyzing the capital position of the Company absent the effects of intangible assets and preferred stock. Analysts and banking regulators have assessed Regions’ capital adequacy using the tangible common shareholders’ equity measure. Because tangible common shareholders’ equity is not formally defined by GAAP or prescribed in any amount by federal banking regulations it is currently considered to be a non-GAAP financial measure and other entities may calculate it differently than Regions’ disclosed calculations. Since analysts and banking regulators may assess Regions’ capital adequacy using tangible common shareholders’ equity, management believes that it is useful to provide investors the ability to assess Regions’ capital adequacy on this same basis.
Quarter Ended
($ amounts in millions)12/31/20209/30/20206/30/20203/31/202012/31/2019
RETURN ON AVERAGE TANGIBLE COMMON SHAREHOLDERS' EQUITY
Net income (loss) available to common shareholders (GAAP)A$588 $501 $(237)$139 $366 
Average shareholders' equity (GAAP)$17,915 $17,759 $17,384 $16,460 $16,564 
Less:
Average intangible assets (GAAP)5,313 5,322 5,373 4,947 4,953 
Average deferred tax liability related to intangibles (GAAP) (105)(103)(94)(92)(93)
Average preferred stock (GAAP)1,656 1,656 1,409 1,310 1,310 
Average tangible common shareholders' equity (non-GAAP)B$11,051 $10,884 $10,696 $10,295 $10,394 
Return on average tangible common shareholders' equity (non-GAAP)*(1)
A/B21.15 %18.32 %(8.90)%5.43 %13.95 %
Year Ended
($ amounts in millions)20202019
RETURN ON AVERAGE TANGIBLE COMMON STOCKHOLDERS' EQUITY
Net income available to common shareholders (GAAP)E$991 $1,503 
Average stockholders' equity (GAAP)$17,382 $16,081 
Less:
Average intangible assets (GAAP)5,239 4,944 
Average deferred tax liability related to intangibles (GAAP)(99)(94)
Average preferred stock (GAAP)1,509 1,151 
Average tangible common stockholders' equity (non-GAAP)F$10,733 $10,080 
Return on average tangible common stockholders' equity (non-GAAP)(1)
E/F9.23 %14.91 %
___
*Annualized
(1)Amounts have been calculated using whole dollar values.

14
Regions Financial Corporation and Subsidiaries                                
Financial Supplement to Fourth Quarter 2020 Earnings Release
Credit Quality
As of and for Quarter Ended
($ amounts in millions)12/31/20209/30/20206/30/20203/31/202012/31/2019
Components:
Beginning allowance for loan losses (ALL)$2,276 $2,276 $1,560 $869 $869 
Cumulative change in accounting guidance (1)
— — — 438 — 
Beginning allowance for loan losses (ALL), as adjusted for change in accounting guidance2,276 2,276 1,560 1,307 869 
Loans charged-off:
Commercial and industrial67 84 139 68 33 
Commercial real estate mortgage—owner-occupied2 2 3 3 3 
Commercial real estate construction—owner-occupied— — — — 1 
Total commercial69 86 142 71 37 
Commercial investor real estate mortgage1 — — — 1 
Total investor real estate1 — — — 1 
Residential first mortgage3 1 1 1 — 
Home equity—lines of credit3 2 3 4 8 
Home equity—closed-end1 1 — 1 1 
Indirect—vehicles2 4 6 6 6 
Indirect—other consumer20 17 18 23 23 
Consumer credit card12 13 17 16 16 
Other consumer15 15 17 22 22 
Total consumer56 53 62 73 76 
Total126 139 204 144 114 
Recoveries of loans previously charged-off:
Commercial and industrial14 10 9 5 5 
Commercial real estate mortgage—owner-occupied1 1 1 2 — 
Commercial real estate construction—owner-occupied— — — — — 
Total commercial15 11 10 7 5 
Commercial investor real estate mortgage2 — — 1 2 
Total investor real estate2 — — 1 2 
Residential first mortgage— 1 1 1 — 
Home equity—lines of credit4 3 2 3 3 
Home equity—closed-end1 1 — 1 1 
Indirect—vehicles1 3 3 2 3 
Indirect—other consumer1 1 — — — 
Consumer credit card3 2 3 2 2 
Other consumer5 4 3 4 2 
Total consumer15 15 12 13 11 
Total32 26 22 21 18 
Net loans charged-off:
Commercial and industrial53 74 130 63 28 
Commercial real estate mortgage—owner-occupied1 1 2 1 3 
Commercial real estate construction—owner-occupied— — — — 1 
Total commercial54 75 132 64 32 
Commercial investor real estate mortgage(1)— — (1)(1)
Total investor real estate(1)— — (1)(1)
Residential first mortgage3 — — — — 
Home equity—lines of credit(1)(1)1 1 5 
Home equity—closed-end— — — — — 
Indirect—vehicles1 1 3 4 3 
Indirect—other consumer19 16 18 23 23 
Consumer credit card9 11 14 14 14 
Other consumer10 11 14 18 20 
Total consumer41 38 50 60 65 
Total$94 $113 $182 $123 $96 
Provision (credit) for loan losses$(15)$113 $838 $376 $96 
Initial allowance on acquired purchased credit deteriorated loans$— $— $60 $— $— 
Ending allowance for loan losses (ALL)$2,167 $2,276 $2,276 $1,560 $869 
Beginning reserve for unfunded credit commitments149 149 105 45 48 
Cumulative change in accounting guidance (1)
— — — 63 — 
Beginning reserve for unfunded credit commitments, as adjusted for change in accounting guidance149 149 105 108 48 
Provision (credit) for unfunded credit losses(23)— 44 (3)(3)
Ending reserve for unfunded commitments126 149 149 105 45 
Allowance for credit losses (ACL) at period end$2,293 $2,425 $2,425 $1,665 $914 

15
Regions Financial Corporation and Subsidiaries                                
Financial Supplement to Fourth Quarter 2020 Earnings Release
Credit Quality (continued)
As of and for Quarter Ended
($ amounts in millions)12/31/20209/30/20206/30/20203/31/202012/31/2019
Net loan charge-offs as a % of average loans, annualized(2):
Commercial and industrial0.48 %0.63 %1.06 %0.63 %0.28 %
Commercial real estate mortgage—owner-occupied0.07 %0.05 %0.17 %0.07 %0.19 %
Total commercial0.44 %0.57 %0.96 %0.56 %0.27 %
Commercial investor real estate mortgage(0.04)%(0.01)%(0.03)%(0.06)%(0.03)%
Commercial investor real estate construction(0.01)%— %— %(0.01)%— %
Total investor real estate(0.03)%(0.01)%(0.02)%(0.05)%(0.02)%
Residential first mortgage0.08 %— %— %— %0.01 %
Home equity—lines of credit(0.11)%(0.11)%0.06 %0.10 %0.31 %
Home equity—closed-end0.03 %(0.01)%— %(0.02)%— %
Indirect—vehicles0.26 %0.30 %0.85 %0.94 %0.76 %
Indirect—other consumer2.95 %2.23 %2.35 %2.83 %3.00 %
Consumer credit card3.02 %3.73 %4.41 %4.16 %4.18 %
Other consumer3.69 %4.12 %5.15 %5.73 %6.56 %
Total consumer0.54 %0.51 %0.68 %0.79 %0.85 %
Total0.43 %0.50 %0.80 %0.59 %0.46 %
Non-accrual loans, excluding loans held for sale$745 $767 $614 $638 $507 
Non-performing loans held for sale6 5 10 3 13 
Non-accrual loans, including loans held for sale751 772 624 641 520 
Foreclosed properties25 26 43 54 53 
Non-marketable investments received in foreclosure— — — — 5 
Non-performing assets (NPAs)$776 $798 $667 $695 $578 
Loans past due > 90 days (3)
$164 $158 $245 $209 $224 
Criticized loans- business (4)
$3,800 $3,734 $4,225 $2,524 $2,251 
Credit Ratios(2):
ACL/Loans, net2.69 %2.74 %2.68 %1.89 %1.10 %
ALL/Loans, net2.54 %2.58 %2.51 %1.77 %1.05 %
Allowance for credit losses to non-performing loans, excluding loans held for sale308 %316 %395 %261 %180 %
Allowance for loan losses to non-performing loans, excluding loans held for sale291 %297 %370 %244 %171 %
Non-accrual loans, excluding loans held for sale/Loans, net0.87 %0.87 %0.68 %0.72 %0.61 %
NPAs (ex. 90+ past due)/Loans, foreclosed properties, non-marketable investments and non-performing loans held for sale0.91 %0.90 %0.74 %0.79 %0.70 %
NPAs (inc. 90+ past due)/Loans, foreclosed properties, non-marketable investments and non-performing loans held for sale (2)
1.10 %1.08 %0.91 %0.96 %0.89 %
(1)Regions adopted the CECL accounting guidance on January 1, 2020 and recorded the cumulative effect of the change in accounting guidance as a reduction to retained earnings and an increase to deferred tax assets.
(2)Amounts have been calculated using whole dollar values.
(3)Excludes guaranteed residential first mortgages that are 90+ days past due and still accruing. Refer to the footnotes on page 17 for amounts related to these loans.
(4)Business represents the combined total of commercial and investor real estate loans.

ACL/ Loans excluding PPP, net (non-GAAP)
Regions believes this Allowance for Credit Losses (ACL) ratio provides investors with meaningful additional information about credit loss allowance levels when the SBA's Paycheck Protection Program (PPP) loans, which are fully backed by the U.S. government, are excluded from total loans and the related allowance for credit losses is excluded from the total allowance for credit losses.

As of
($ amounts in millions)12/31/20209/30/20206/30/20203/31/202012/31/2019
Total Loans$85,266 $88,359 $90,548 $88,098 $82,963 
Less: SBA PPP Loans3,624 4,594 4,498 — — 
Loans excluding PPP, net (non-GAAP)$81,642 $83,765 $86,050 $88,098 $82,963 
ACL at period end$2,293 $2,425 $2,425 $1,665 $914 
Less: SBA PPP Loans ACL1 — — — — 
ACL excluding PPP Loans ACL$2,292 $2,425 $2,425 $1,665 $914 
ACL/Loans excluding PPP, net (non-GAAP)2.81 %2.90 %2.82 %1.89 %1.10 %


16
Regions Financial Corporation and Subsidiaries                                
Financial Supplement to Fourth Quarter 2020 Earnings Release
Non-Accrual Loans (excludes loans held for sale)
 As of
($ amounts in millions)12/31/20209/30/20206/30/20203/31/202012/31/2019
Commercial and industrial$418 0.97 %$459 1.02 %$445 0.93 %$496 1.09 %$347 0.87 %
Commercial real estate mortgage—owner-occupied97 1.80 %85 1.56 %74 1.35 %58 1.05 %73 1.31 %
Commercial real estate construction—owner-occupied9 3.01 %12 3.69 %10 3.09 %11 3.49 %11 3.47 %
Total commercial524 1.08 %556 1.09 %529 0.99 %565 1.10 %431 0.94 %
Commercial investor real estate mortgage114 2.11 %114 2.04 %1 0.02 %1 0.03 %2 0.03 %
Commercial investor real estate construction— — %4 0.19 %— — %— — %— — %
Total investor real estate114 1.57 %118 1.56 %1 0.01 %1 0.02 %2 0.03 %
Residential first mortgage53 0.32 %36 0.22 %32 0.21 %27 0.18 %27 0.19 %
Home equity—lines of credit46 1.01 %47 0.98 %46 0.92 %40 0.77 %41 0.78 %
Home equity—closed-end8 0.29 %9 0.31 %6 0.22 %5 0.17 %6 0.19 %
Indirect- vehicles— — %1 0.08 %— — %— — %— — %
Total consumer107 0.36 %93 0.31 %84 0.28 %72 0.24 %74 0.24 %
Total non-accrual loans$745 0.87 %$767 0.87 %$614 0.68 %$638 0.72 %$507 0.61 %

Early and Late Stage Delinquencies
Accruing 30-89 Days Past Due Loans
As of
($ amounts in millions)12/31/20209/30/20206/30/20203/31/202012/31/2019
Commercial and industrial $59 0.14 %$50 0.11 %$81 0.17 %$58 0.13 %$51 0.13 %
Commercial real estate mortgage—owner-occupied5 0.09 %21 0.39 %11 0.20 %12 0.22 %14 0.26 %
Commercial real estate construction—owner-occupied1 0.30 %— 0.01 %1 0.15 %— 0.01 %2 0.65 %
Total commercial65 0.13 %71 0.14 %93 0.17 %70 0.14 %67 0.15 %
Commercial investor real estate mortgage3 0.06 %15 0.26 %1 0.02 %2 0.04 %2 0.03 %
Commercial investor real estate construction— — %— — %— 0.01 %— 0.01 %— — %
Total investor real estate3 0.04 %15 0.19 %1 0.02 %2 0.03 %2 0.02 %
Residential first mortgage—non-guaranteed (1)
80 0.51 %79 0.51 %105 0.71 %88 0.62 %88 0.63 %
Home equity—lines of credit35 0.78 %26 0.53 %32 0.64 %43 0.83 %42 0.79 %
Home equity—closed-end 17 0.60 %17 0.61 %25 0.85 %16 0.53 %18 0.60 %
Indirect—vehicles19 2.08 %22 1.96 %27 2.04 %33 2.15 %41 2.26 %
Indirect—other consumer20 0.82 %19 0.69 %16 0.51 %24 0.75 %25 0.77 %
Consumer credit card14 1.15 %13 1.12 %13 1.09 %18 1.37 %19 1.38 %
Other consumer15 1.43 %14 1.34 %14 1.32 %16 1.34 %18 1.43 %
Total consumer (1)
200 0.70 %190 0.65 %232 0.79 %238 0.81 %251 0.83 %
Total accruing 30-89 days past due loans (1)
$268 0.32 %$276 0.31 %$326 0.36 %$310 0.35 %$320 0.39 %
Accruing 90+ Days Past Due LoansAs of
($ amounts in millions)12/31/20209/30/20206/30/20203/31/202012/31/2019
Commercial and industrial$7 0.02 %$10 0.02 %$11 0.02 %$9 0.02 %$11 0.03 %
Commercial real estate mortgage—owner-occupied1 0.01 %— 0.01 %3 0.05 %1 0.01 %1 0.01 %
Total commercial8 0.02 %10 0.02 %14 0.03 %10 0.02 %12 0.03 %
Commercial investor real estate mortgage— — %1 0.01 %— — %— — %— — %
Total investor real estate— — %1 0.01 %— — %— — %— — %
Residential first mortgage—non-guaranteed (2)
99 0.62 %86 0.56 %75 0.50 %69 0.49 %70 0.50 %
Home equity—lines of credit19 0.41 %25 0.53 %26 0.53 %26 0.50 %32 0.60 %
Home equity—closed-end 13 0.49 %12 0.41 %12 0.42 %11 0.36 %10 0.31 %
Indirect—vehicles4 0.41 %5 0.42 %8 0.55 %6 0.38 %7 0.40 %
Indirect—other consumer5 0.19 %3 0.11 %3 0.10 %4 0.12 %3 0.10 %
Consumer credit card14 1.19 %13 1.08 %17 1.38 %19 1.49 %19 1.38 %
Other consumer2 0.25 %3 0.27 %5 0.49 %5 0.44 %5 0.42 %
Total consumer (2)
156 0.54 %147 0.50 %146 0.49 %140 0.47 %146 0.49 %
Total accruing 90+ days past due loans (2)
$164 0.19 %$158 0.18 %$160 0.18 %$150 0.17 %$158 0.19 %
Total delinquencies (1) (2)
$432 0.51 %$434 0.49 %$486 0.54 %$460 0.52 %$478 0.58 %
(1)Excludes loans that are 100% guaranteed by FHA and guaranteed loans sold to GNMA where Regions has the right but not the obligation to repurchase. Total 30-89 days past due guaranteed loans excluded were $65 million at 12/31/2020, $57 million at 9/30/2020, $56 million at 6/30/2020, $37 million at 3/31/2020, and $42 million at 12/31/2019.
(2)Excludes loans that are 100% guaranteed by FHA and all guaranteed loans sold to GNMA where Regions has the right but not the obligation to repurchase. Total 90 days or more past due guaranteed loans excluded were $57 million at 12/31/2020, $47 million at 9/30/2020, $55 million at 6/30/2020, and $59 million at 3/31/2020 and $66 million at 12/31/2019.

17
Regions Financial Corporation and Subsidiaries                                
Financial Supplement to Fourth Quarter 2020 Earnings Release
Troubled Debt Restructurings
 
 As of
($ amounts in millions)12/31/20209/30/20206/30/20203/31/202012/31/2019
Current:
Commercial $76 $73 $47 $51 $105 
Investor real estate44 45 6 14 32 
Residential first mortgage174 162 158 156 152 
Home equity—lines of credit34 36 37 38 40 
Home equity—closed-end73 79 83 92 103 
Consumer credit card1 1 1 1 1 
Other consumer3 3 3 3 4 
Total current405 399 335 355 437 
Accruing 30-89 DPD:
Commercial 1 1 2 5 1 
Residential first mortgage14 16 20 25 25 
Home equity—lines of credit1 1 1 2 2 
Home equity—closed-end5 4 7 6 6 
Other consumer1 — — 1 — 
Total accruing 30-89 DPD22 22 30 39 34 
Total accruing and <90 DPD427 421 365 394 471 
Non-accrual or 90+ DPD:
Commercial 124 178 214 159 139 
Investor real estate— — — 1 1 
Residential first mortgage42 36 37 37 40 
Home equity—lines of credit2 2 3 2 2 
Home equity—closed-end7 8 7 6 6 
Total non-accrual or 90+DPD175 224 261 205 188 
Total TDRs - Loans$602 $645 $626 $599 $659 
TDRs - Held For Sale1 — — — 1 
Total TDRs$603 $645 $626 $599 $660 
Total TDRs - Loans by Portfolio
As of
($ amounts in millions)12/31/20209/30/20206/30/20203/31/202012/31/2019
Total commercial TDRs$201 $252 $263 $215 $245 
Total investor real estate TDRs44 45 6 15 33 
Total consumer TDRs357 348 357 369 381 
Total TDRs - Loans$602 $645 $626 $599 $659 


18
Regions Financial Corporation and Subsidiaries                                
Financial Supplement to Fourth Quarter 2020 Earnings Release

Consolidated Balance Sheets (unaudited)
As of
($ amounts in millions)12/31/20209/30/20206/30/20203/31/202012/31/2019
Assets:
Cash and due from banks$1,558 $1,972 $1,619 $2,101 $1,598 
Interest-bearing deposits in other banks16,398 11,501 11,579 3,154 2,516 
Debt securities held to maturity1,122 1,190 1,255 1,296 1,332 
Debt securities available for sale27,154 27,007 23,898 23,775 22,606 
Loans held for sale1,905 1,187 1,152 566 637 
Loans, net of unearned income 85,266 88,359 90,548 88,098 82,963 
Allowance for loan losses
(2,167)(2,276)(2,276)(1,560)(869)
Net loans83,099 86,083 88,272 86,538 82,094 
Other earning assets1,217 1,267 1,238 1,722 1,518 
Premises and equipment, net1,897 1,896 1,929 1,935 1,960 
Interest receivable346 347 343 349 362 
Goodwill5,190 5,187 5,193 4,845 4,845 
Residential mortgage servicing rights at fair value (MSRs)296 267 249 254 345 
Other identifiable intangible assets, net122 129 137 98 105 
Other assets7,085 7,147 7,206 6,909 6,322 
Total assets$147,389 $145,180 $144,070 $133,542 $126,240 
Liabilities and Equity:
Deposits:
Non-interest-bearing$51,289 $49,754 $47,964 $37,133 $34,113 
Interest-bearing71,190 68,691 68,815 62,897 63,362 
Total deposits122,479 118,445 116,779 100,030 97,475 
Borrowed funds:
Short-term borrowings— — — 3,150 2,050 
Long-term borrowings3,569 4,919 6,408 10,105 7,879 
Total borrowed funds3,569 4,919 6,408 13,255 9,929 
Other liabilities3,230 3,912 3,255 2,925 2,541 
Total liabilities129,278 127,276 126,442 116,210 109,945 
Equity:
Preferred stock, non-cumulative perpetual1,656 1,656 1,656 1,310 1,310 
Common stock10 10 10 10 10 
Additional paid-in capital12,731 12,714 12,703 12,695 12,685 
Retained earnings3,770 3,330 2,978 3,364 3,751 
Treasury stock, at cost(1,371)(1,371)(1,371)(1,371)(1,371)
Accumulated other comprehensive income, net1,315 1,565 1,626 1,324 (90)
Total shareholders’ equity18,111 17,904 17,602 17,332 16,295 
Noncontrolling interest
— — 26 — — 
Total equity
18,111 17,904 17,628 17,332 16,295 
Total liabilities and equity
$147,389 $145,180 $144,070 $133,542 $126,240 








19
Regions Financial Corporation and Subsidiaries                                
Financial Supplement to Fourth Quarter 2020 Earnings Release
End of Period Loans
As of
    12/31/202012/31/2020
($ amounts in millions)12/31/20209/30/20206/30/20203/31/202012/31/2019 vs. 9/30/2020 vs. 12/31/2019
Commercial and industrial(1)
$42,870 $45,199 $47,670 $45,388 $39,971 $(2,329)(5.2)%$2,899 7.3 %
Commercial real estate mortgage—owner-occupied5,405 5,451 5,491 5,550 5,537 (46)(0.8)%(132)(2.4)%
Commercial real estate construction—owner-occupied300 305 314 309 331 (5)(1.6)%(31)(9.4)%
Total commercial48,575 50,955 53,475 51,247 45,839 (2,380)(4.7)%2,736 6.0 %
Commercial investor real estate mortgage 5,394 5,598 5,221 5,079 4,936 (204)(3.6)%458 9.3 %
Commercial investor real estate construction1,869 1,984 1,908 1,784 1,621 (115)(5.8)%248 15.3 %
Total investor real estate7,263 7,582 7,129 6,863 6,557 (319)(4.2)%706 10.8 %
Total business55,838 58,537 60,604 58,110 52,396 (2,699)(4.6)%3,442 6.6 %
Residential first mortgage16,575 16,195 15,382 14,535 14,485 380 2.3 %2,090 14.4 %
Home equity—lines of credit (2)
4,539 4,753 4,953 5,201 5,300 (214)(4.5)%(761)(14.4)%
Home equity—closed-end (3)
2,713 2,839 2,937 3,000 3,084 (126)(4.4)%(371)(12.0)%
Indirect—vehicles 934 1,120 1,331 1,557 1,812 (186)(16.6)%(878)(48.5)%
Indirect—other consumer 2,431 2,663 3,022 3,202 3,249 (232)(8.7)%(818)(25.2)%
Consumer credit card1,213 1,189 1,213 1,303 1,387 24 2.0 %(174)(12.5)%
Other consumer1,023 1,063 1,106 1,190 1,250 (40)(3.8)%(227)(18.2)%
Total consumer29,428 29,822 29,944 29,988 30,567 (394)(1.3)%(1,139)(3.7)%
Total Loans$85,266 $88,359 $90,548 $88,098 $82,963 $(3,093)(3.5)%$2,303 2.8 %
_______
(1)    Excludes a certain portfolio of $239 million of commercial and industrial loans which Regions decided to sell and were reclassified to held for sale as of December 31, 2020. See page 21 and 22 for details.
(2)     The balance of Regions' home equity lines of credit consists of $2,485 million of first lien and $2,054 million of second lien at 12/31/2020.
(2)    The balance of Regions' closed-end home equity loans consists of $2,486 million of first lien and $227 million of second lien at 12/31/2020.

Adjusted Ending Balances of Loans (non-GAAP)
Regions believes adjusting ending loan balances for the impact of commercial loans transferred to held for sale, SBA PPP loans, the indirect- other consumer exit portfolio and the indirect vehicles exit portfolio, provides a meaningful calculation of loan growth rates and presents them on the same basis as that applied by management.

As of
12/31/202012/31/2020
($ amounts in millions)12/31/20209/30/20206/30/20203/31/202012/31/2019 vs. 9/30/2020 vs. 12/31/2019
Commercial and industrial$42,870 $45,199 $47,670 $45,388 $39,971 $(2,329)(5.2)%$2,899 7.3 %
Less: Commercial loans transferred to held for sale(1)
— 239 239 — — (239)(100.0)%— NM
Less: SBA PPP Loans3,624 4,594 4,498 — — (970)(21.1)%3,624 NM
Adjusted commercial and industrial loans (non-GAAP)$39,246 $40,366 $42,933 $45,388 $39,971 $(1,120)(2.8)%$(725)(1.8)%
Total commercial loans$48,575 $50,955 $53,475 $51,247 $45,839 $(2,380)(4.7)%$2,736 6.0 %
Less: Commercial loans transferred to held for sale(1)
— 239 239 — — (239)(100.0)%— NM
Less: SBA PPP Loans3,624 4,594 4,498 — — (970)(21.1)%3,624 NM
Adjusted total commercial loans (non-GAAP)$44,951 $46,122 $48,738 $51,247 $45,839 $(1,171)(2.5)%$(888)(1.9)%
Total business loans55,838 $58,537 $60,604 $58,110 $52,396 $(2,699)(4.6)%$3,442 6.6 %
Less: Commercial loans transferred to held for sale(1)
— 239 239 — — (239)(100.0)%— NM
Less: SBA PPP Loans3,624 4,594 4,498 — — (970)(21.1)%3,624 NM
Adjusted total business loans (non-GAAP)$52,214 $53,704 $55,867 $58,110 $52,396 $(1,490)(2.8)%$(182)(0.3)%
Total consumer loans$29,428 $29,822 $29,944 $29,988 $30,567 $(394)(1.3)%$(1,139)(3.7)%
Less: Indirect-other consumer exit portfolio (2)
1,101 1,240 1,406 1,591 1,799 (139)(11.2)%(698)(38.8)%
Less: Indirect—vehicles 934 1,120 1,331 1,557 1,812 (186)(16.6)%(878)(48.5)%
Adjusted total consumer loans (non-GAAP)$27,393 $27,462 $27,207 $26,840 $26,956 $(69)(0.3)%$437 1.6 %
Total loans$85,266 $88,359 $90,548 $88,098 $82,963 $(3,093)(3.5)%$2,303 2.8 %
Less: Commercial loans transferred to held for sale(1)
— 239 239 — — (239)(100.0)%— NM
Less: SBA PPP Loans3,624 4,594 4,498 — — (970)(21.1)%3,624 NM
Less: Indirect-other consumer exit portfolio (2)
1,101 1,240 1,406 1,591 1,799 (139)(11.2)%(698)(38.8)%
Less: Indirect—vehicles 934 1,120 1,331 1,557 1,812 (186)(16.6)%(878)(48.5)%
Adjusted ending total loans (non-GAAP)$79,607 $81,166 $83,074 $84,950 $79,352 $(1,559)(1.9)%$255 0.3 %
_______
(1)In the fourth quarter of 2020, Regions made the decision to sell a certain portfolio of $239 million of commercial and industrial loans, which were reclassified to held for sale as of December 31, 2020. Adjustments to ending loan balances for the prior periods are equal to the ending balance of the loans moved to held for sale as of December 31, 2020.
(2)In the fourth quarter of 2019, Regions decided not to renew a third party relationship.


20
Regions Financial Corporation and Subsidiaries                                
Financial Supplement to Fourth Quarter 2020 Earnings Release

End of Period Loans (continued)
As of
End of Period Loans by Percentage12/31/20209/30/20206/30/20203/31/202012/31/2019
Commercial and industrial50.3 %51.2 %52.6 %51.5 %48.2 %
Commercial real estate mortgage—owner-occupied6.3 %6.2 %6.1 %6.3 %6.7 %
Commercial real estate construction—owner-occupied0.4 %0.3 %0.3 %0.4 %0.4 %
Total commercial57.0 %57.7 %59.0 %58.2 %55.3 %
Commercial investor real estate mortgage6.3 %6.3 %5.8 %5.8 %5.9 %
Commercial investor real estate construction2.2 %2.2 %2.1 %2.0 %2.0 %
Total investor real estate8.5 %8.5 %7.9 %7.8 %7.9 %
Total business65.5 %66.2 %66.9 %66.0 %63.2 %
Residential first mortgage19.4 %18.3 %17.0 %16.5 %17.5 %
Home equity—lines of credit 5.3 %5.4 %5.5 %5.9 %6.4 %
Home equity—closed-end 3.2 %3.2 %3.2 %3.4 %3.7 %
Indirect—vehicles 1.1 %1.3 %1.5 %1.8 %2.2 %
Indirect—other consumer 2.9 %3.0 %3.3 %3.6 %3.9 %
Consumer credit card1.4 %1.3 %1.3 %1.5 %1.7 %
Other consumer1.2 %1.3 %1.3 %1.3 %1.4 %
Total consumer34.5 %33.8 %33.1 %34.0 %36.8 %
Total Loans100.0 %100.0 %100.0 %100.0 %100.0 %


21
Regions Financial Corporation and Subsidiaries                                
Financial Supplement to Fourth Quarter 2020 Earnings Release

Average Balances of Loans
 Average Balances
($ amounts in millions)4Q203Q202Q201Q204Q194Q20 vs. 3Q204Q20 vs. 4Q19
Commercial and industrial$43,889 $46,405 $49,296 $40,519 $39,743 $(2,516)(5.4)%$4,146 10.4 %
Commercial real estate mortgage—owner-occupied5,405 5,498 5,492 5,509 5,489 (93)(1.7)%(84)(1.5)%
Commercial real estate construction—owner-occupied303 318 312 323 357 (15)(4.7)%(54)(15.1)%
Total commercial49,597 52,221 55,100 46,351 45,589 (2,624)(5.0)%4,008 8.8 %
Commercial investor real estate mortgage5,549 5,324 5,150 4,975 4,841 225 4.2 %708 14.6 %
Commercial investor real estate construction1,899 1,974 1,869 1,673 1,544 (75)(3.8)%355 23.0 %
Total investor real estate7,448 7,298 7,019 6,648 6,385 150 2.1 %1,063 16.6 %
Total business 57,045 59,519 62,119 52,999 51,974 (2,474)(4.2)%5,071 9.8 %
Residential first mortgage16,433 15,786 14,884 14,469 14,416 647 4.1 %2,017 14.0 %
Home equity—lines of credit4,646 4,842 5,072 5,237 5,357 (196)(4.0)%(711)(13.3)%
Home equity—closed-end2,765 2,885 2,970 3,038 3,121 (120)(4.2)%(356)(11.4)%
Indirect—vehicles1,023 1,223 1,441 1,679 1,948 (200)(16.4)%(925)(47.5)%
Indirect—other consumer 2,514 2,835 3,111 3,263 3,005 (321)(11.3)%(491)(16.3)%
Consumer credit card1,190 1,194 1,230 1,348 1,337 (4)(0.3)%(147)(11.0)%
Other consumer1,048 1,086 1,137 1,216 1,234 (38)(3.5)%(186)(15.1)%
Total consumer29,619 29,851 29,845 30,250 30,418 (232)(0.8)%(799)(2.6)%
Total loans$86,664 $89,370 $91,964 $83,249 $82,392 $(2,706)(3.0)%$4,272 5.2 %

Adjusted Average Balances of Loans (non-GAAP)
Regions believes adjusting total average loans for the impact of commercial loans transferred to held for sale, SBA PPP loans, the indirect- other consumer exit portfolio and the indirect vehicles exit portfolio, provides a meaningful calculation of loan growth rates and presents them on the same basis as that applied by management.
 Average Balances
($ amounts in millions)4Q203Q202Q201Q204Q194Q20 vs. 3Q204Q20 vs. 4Q19
Commercial and industrial$43,889 $46,405 $49,296 $40,519 $39,743 $(2,516)(5.4)%$4,146 10.4 %
Less: Commercial loans transferred to held for sale(1)
237 239 239 — — (2)(0.8)%237 NM
Less: SBA PPP Loans4,143 4,558 3,213 — — (415)(9.1)%4,143 NM
Adjusted commercial and industrial loans (non-GAAP)$39,509 $41,608 $45,844 $40,519 $39,743 $(2,099)(5.0)%$(234)(0.6)%
Total commercial loans$49,597 $52,221 $55,100 $46,351 $45,589 $(2,624)(5.0)%$4,008 8.8 %
Less: Commercial loans transferred to held for sale(1)
237 239 239 — — (2)(0.8)%237 NM
Less: SBA PPP Loans4,143 4,558 3,213 — — (415)(9.1)%4,143 NM
Adjusted total commercial loans (non-GAAP)$45,217 $47,424 $51,648 $46,351 $45,589 $(2,207)(4.7)%$(372)(0.8)%
Total business loans$57,045 $59,519 $62,119 $52,999 $51,974 $(2,474)(4.2)%$5,071 9.8 %
Less: Commercial loans transferred to held for sale(1)
237 239 239 — — (2)(0.8)%237 NM
Less: SBA PPP Loans4,143 4,558 3,213 — — (415)(9.1)%4,143 NM
Adjusted total business loans (non-GAAP)$52,665 $54,722 $58,667 $52,999 $51,974 $(2,057)(3.8)%$691 1.3 %
Total consumer loans$29,619 $29,851 $29,845 $30,250 $30,418 $(232)(0.8)%$(799)(2.6)%
Less: Indirect-other consumer exit portfolio (2)
1,164 1,318 1,493 1,696 1,841 (154)(11.7)%(677)(36.8)%
Less: Indirect—vehicles 1,023 1,223 1,441 1,679 1,948 (200)(16.4)%(925)(47.5)%
Adjusted total consumer loans (non-GAAP)$27,432 $27,310 $26,911 $26,875 $26,629 $122 0.4 %$803 3.0 %
Total loans$86,664 $89,370 $91,964 $83,249 $82,392 $(2,706)(3.0)%$4,272 5.2 %
Less: Commercial loans transferred to held for sale(1)
237 239 239 — — (2)(0.8)%237 NM
Less: SBA PPP Loans4,143 4,558 3,213 — — (415)(9.1)%4,143 NM
Less: Indirect-other consumer exit portfolio (2)
1,164 1,318 1,493 1,696 1,841 (154)(11.7)%(677)(36.8)%
Less: Indirect—vehicles 1,023 1,223 1,441 1,679 1,948 (200)(16.4)%(925)(47.5)%
Adjusted total loans (non-GAAP)$80,097 $82,032 $85,578 $79,874 $78,603 $(1,935)(2.4)%$1,494 1.9 %
(1)In the fourth quarter of 2020, Regions made the decision to sell a certain portfolio of $239 million of commercial and industrial loans, which were reclassified to held for sale as of December 31, 2020. Adjustments to average loan balances assume a simple day-weighted average impact for the fourth quarter of 2020, and are equal to the ending balance of the loans moved to held for sale for the prior periods.
(2)In the fourth quarter of 2019, Regions decided not to renew a third party relationship.






22
Regions Financial Corporation and Subsidiaries                                
Financial Supplement to Fourth Quarter 2020 Earnings Release
Average Balances of Loans (continued)

Average Balances
Twelve Months Ended December 31
($ amounts in millions)202020192020 vs. 2019
Commercial and industrial$45,028 $40,162 $4,866 12.1 %
Commercial real estate mortgage—owner-occupied5,476 5,495 (19)(0.3)%
Commercial real estate construction—owner-occupied314 401 (87)(21.7)%
Total commercial50,818 46,058 4,760 10.3 %
Commercial investor real estate mortgage5,251 4,782 469 9.8 %
Commercial investor real estate construction1,854 1,672 182 10.9 %
Total investor real estate7,105 6,454 651 10.1 %
Total business 57,923 52,512 5,411 10.3 %
Residential first mortgage15,397 14,267 1,130 7.9 %
Home equity—lines of credit4,948 5,565 (617)(11.1)%
Home equity—closed-end2,914 3,234 (320)(9.9)%
Indirect—vehicles1,341 2,421 (1,080)(44.6)%
Indirect—other consumer 2,929 2,713 216 8.0 %
Consumer credit card1,240 1,309 (69)(5.3)%
Other consumer1,121 1,227 (106)(8.6)%
Total consumer29,890 30,736 (846)(2.8)%
Total Loans$87,813 $83,248 $4,565 5.5 %

Adjusted Average Balances of Loans (non-GAAP)
Regions believes adjusting total average loans for the impact of commercial loans transferred to held for sale, SBA PPP loans, the indirect- other consumer exit portfolio and the indirect vehicles exit portfolio, provides a meaningful calculation of loan growth rates and presents them on the same basis as that applied by management.
Average Balances
Twelve Months Ended December 31
($ amounts in millions)202020192020 vs. 2019
Commercial and industrial$45,028 $40,162 $4,866 12.1 %
Less: Commercial loans transferred to held for sale(1)
179 — $179 NM
Less: SBA PPP Loans2,986 — 2,986 NM
Adjusted commercial and industrial loans (non-GAAP)$41,863 $40,162 $1,701 4.2 %
Total commercial loans$50,818 $46,058 $4,760 10.3 %
Less: Commercial loans transferred to held for sale(1)
179 — $179 NM
Less: SBA PPP Loans2,986 — 2,986 NM
Adjusted total commercial loans (non-GAAP)$47,653 $46,058 $1,774 3.9 %
Total business loans$57,923 $52,512 $5,411 10.3 %
Less: Commercial loans transferred to held for sale(1)
179 — $179 NM
Less: SBA PPP Loans2,986 — 2,986 NM
Adjusted total business loans (non-GAAP)$54,758 $52,512 $2,246 4.3 %
Total consumer loans$29,890 $30,736 $(846)(2.8)%
Less: Indirect-other consumer exit portfolio (2)
1,417 1,850 (433)(23.4)%
Less: Indirect—vehicles 1,341 2,421 (1,080)(44.6)%
Adjusted total consumer loans (non-GAAP)$27,132 $26,465 $667 2.5 %
Total Loans$87,813 $83,248 $4,565 5.5 %
Less: Commercial loans transferred to held for sale(1)
179 — $179 NM
Less: SBA PPP Loans2,986 — 2,986 NM
Less: Indirect—other consumer exit portfolio (2)
1,417 1,850 (433)(23.4)%
Less: Indirect—vehicles 1,341 2,421 (1,080)(44.6)%
Adjusted total loans (non-GAAP)$81,890 $78,977 $2,913 3.7 %
(1)In the fourth quarter of 2020, Regions made the decision to sell a certain portfolio of $239 million of commercial and industrial loans, which were reclassified to held for sale as of December 31, 2020. Adjustments to average loan balances assume a simple day-weighted average impact for the year ended December 31, 2020.
(2)In the fourth quarter of 2019, Regions decided not to renew a third party relationship.


23
Regions Financial Corporation and Subsidiaries                                
Financial Supplement to Fourth Quarter 2020 Earnings Release
End of Period Deposits
 As of
     12/31/202012/31/2020
($ amounts in millions)12/31/20209/30/20206/30/20203/31/202012/31/2019 vs. 9/30/2020 vs. 12/31/2019
Interest-free deposits$51,289 $49,754 $47,964 $37,133 $34,113 $1,535 3.1 %$17,176 50.4 %
Interest-bearing checking24,484 22,294 22,407 19,992 20,046 2,190 9.8 %$4,438 22.1 %
Savings11,635 11,159 10,698 9,199 8,640 476 4.3 %$2,995 34.7 %
Money market—domestic29,719 29,387 29,263 26,328 25,326 332 1.1 %$4,393 17.3 %
Low-cost deposits117,127 112,594 110,332 92,652 88,125 4,533 4.0 %$29,002 32.9 %
Time deposits5,341 5,840 6,428 7,122 7,442 (499)(8.5)%$(2,101)(28.2)%
Total Customer Deposits122,468 118,434 116,760 99,774 95,567 4,034 3.4 %26,901 28.1 %
Corporate treasury time deposits11 11 19 256 108 — — %(97)(89.8)%
Corporate treasury other deposits— — — — 1,800 — NM(1,800)(100.0)%
Total Deposits$122,479 $118,445 $116,779 $100,030 $97,475 $4,034 3.4 %$25,004 25.7 %
 As of
   12/31/202012/31/2020
($ amounts in millions)12/31/20209/30/20206/30/20203/31/202012/31/2019 vs. 9/30/2020 vs. 12/31/2019
Consumer Bank Segment$71,652 $69,265 $68,616 $61,238 $59,438 $2,387 3.4 %$12,214 20.5 %
Corporate Bank Segment40,745 39,799 38,848 29,862 27,626 946 2.4 %13,119 47.5 %
Wealth Management Segment9,718 8,982 8,888 8,372 8,162 736 8.2 %1,556 19.1 %
Other (1)
364 399 427 558 2,249 (35)(8.8)%(1,885)(83.8)%
Total Deposits$122,479 $118,445 $116,779 $100,030 $97,475 $4,034 3.4 %$25,004 25.7 %
 As of
    12/31/202012/31/2020
($ amounts in millions)12/31/20209/30/20206/30/20203/31/202012/31/2019 vs. 9/30/2020 vs. 12/31/2019
Wealth Management - Private Wealth$8,462 $7,726 $7,816 $7,168 $7,180 $736 9.5 %$1,282 17.9 %
Wealth Management - Institutional Services1,256 1,256 1,072 1,204 982 — — %27427.9 %
Total Wealth Management Segment Deposits$9,718 $8,982 $8,888 $8,372 $8,162 $736 8.2 %$1,556 19.1 %
As of
End of Period Deposits by Percentage12/31/20209/30/20206/30/20203/31/202012/31/2019
Interest-free deposits41.9 %42.0 %41.1 %37.1 %35.0 %
Interest-bearing checking20.0 %18.8 %19.2 %20.0 %20.6 %
Savings9.5 %9.4 %9.2 %9.2 %8.9 %
Money market—domestic24.3 %24.8 %25.1 %26.3 %26.0 %
Low-cost deposits95.7 %95.0 %94.6 %92.6 %90.5 %
Time deposits4.3 %5.0 %5.5 %7.1 %7.6 %
Total Customer Deposits100.0 %100.0 %100.0 %99.7 %98.1 %
Corporate treasury time deposits— %— %— %0.3 %0.1 %
Corporate treasury other deposits— %— %— %— %1.8 %
Total Deposits100.0 %100.0 %100.0 %100.0 %100.0 %
(1)Other deposits represent non-customer balances primarily consisting of wholesale funding (for example, Eurodollar trade deposits, selected deposits and brokered time deposits).










24
Regions Financial Corporation and Subsidiaries                                
Financial Supplement to Fourth Quarter 2020 Earnings Release
Average Balances of Deposits
Average Balances
($ amounts in millions)4Q203Q202Q201Q204Q194Q20 vs. 3Q204Q20 vs. 4Q19
Interest-free deposits$50,532 $48,314 $44,382 $34,205 $34,098 2,218 4.6 %16,434 48.2 %
Interest-bearing checking22,940 22,098 21,755 19,273 18,668 842 3.8 %4,272 22.9 %
Savings11,374 10,935 10,152 8,822 8,616 439 4.0 %2,758 32.0 %
Money market—domestic29,312 29,146 27,870 25,151 25,289 166 0.6 %4,023 15.9 %
Low-cost deposits114,158 110,493 104,159 87,451 86,671 3,665 3.3 %27,487 31.7 %
Time deposits5,598 6,150 6,690 7,302 7,543 (552)(9.0)%(1,945)(25.8)%
Total Customer Deposits119,756 116,643 110,849 94,753 94,214 3,113 2.7 %25,542 27.1 %
Corporate treasury time deposits11 13 72 280 189 (2)(15.4)%(178)(94.2)%
Corporate treasury other deposits— — — 639 109 — NM(109)(100.0)%
Total Deposits$119,767 $116,656 $110,921 $95,672 $94,512 $3,111 2.7 %25,255 26.7 %
 Average Balances
($ amounts in millions)4Q203Q202Q201Q204Q194Q20 vs. 3Q204Q20 vs. 4Q19
Consumer Bank Segment$69,912 $68,842 $65,722 $59,711 $59,359 1,070 1.6 %10,553 17.8 %
Corporate Bank Segment40,581 38,755 36,409 26,618 26,627 1,826 4.7 %13,954 52.4 %
Wealth Management Segment8,884 8,658 8,382 8,073 7,891 226 2.6 %993 12.6 %
Other (1)
390 401 408 1,270 635 (11)(2.7)%(245)(38.6)%
Total Deposits$119,767 $116,656 $110,921 $95,672 $94,512 $3,111 2.7 %$25,255 26.7 %

 Average Balances
($ amounts in millions)4Q203Q202Q201Q204Q194Q20 vs. 3Q204Q20 vs. 4Q19
Wealth Management - Private Wealth$8,106 $7,723 $7,395 $7,062 $7,040 383 5.0 %1,066 15.1 %
Wealth Management - Institutional Services778 935 987 1,011 851 (157)(16.8)%(73)(8.6)%
Total Wealth Management Segment Deposits$8,884 $8,658 $8,382 $8,073 $7,891 $226 2.6 %$993 12.6 %
Average Balances
Twelve Months Ended December 31
($ amounts in millions)202020192020 vs. 2019
Interest-free deposits$44,386 $33,869 10,517 31.1 %
Interest-bearing checking21,522 18,772 2,750 14.6 %
Savings10,325 8,719 1,606 18.4 %
Money market—domestic27,877 24,637 3,240 13.2 %
Low-cost deposits104,110 85,997 18,113 21.1 %
Time deposits6,432 7,632 (1,200)(15.7)%
Total Customer Deposits110,542 93,629 16,913 18.1 %
Corporate treasury time deposits93 444 (351)(79.1)%
Corporate treasury other deposits159 340 (181)(53.2)%
Total Deposits$110,794 $94,413 $16,381 17.4 %
Average Balances
Twelve Months Ended December 31
($ amounts in millions)202020192020 vs. 2019
Consumer Bank Segment$66,065 $58,956 7,109 12.1 %
Corporate Bank Segment35,613 26,341 9,272 35.2 %
Wealth Management Segment8,501 7,901 600 7.6 %
Other (1)
615 1,215 (600)(49.4)%
Total Deposits$110,794 $94,413 $16,381 17.4 %
Average Balances
Twelve Months Ended December 31
($ amounts in millions)202020192020 vs. 2019
Wealth Management - Private Wealth$7,573 $7,042 531 7.5 %
Wealth Management - Institutional Services928 859 69 8.0 %
Total Wealth Management Segment Deposits$8,501 $7,901 $600 7.6 %
________
(1)Other deposits represent non-customer balances primarily consisting of wholesale funding (for example, Eurodollar trade deposits, selected deposits and brokered time deposits).


25
Regions Financial Corporation and Subsidiaries                                
Financial Supplement to Fourth Quarter 2020 Earnings Release
Reconciliation to GAAP Financial Measures
Tangible Common Ratios
The following tables provide the calculation of the end of period “tangible common shareholders’ equity” and "tangible common book value per share" ratios, and a reconciliation of shareholders’ equity (GAAP) to tangible common shareholders’ equity (non-GAAP). Since analysts and banking regulators may assess Regions’ capital adequacy using tangible common shareholders' equity, we believe that it is useful to provide investors the ability to assess Regions’ capital adequacy on this same basis.

  As of and for Quarter Ended
($ amounts in millions, except per share data) 12/31/20209/30/20206/30/20203/31/202012/31/2019
Tangible Common Ratios
Shareholders’ equity (GAAP)$18,111 $17,904 $17,602 $17,332 $16,295 
Less:
Preferred stock (GAAP)1,656 1,656 1,656 1,310 1,310 
Intangible assets (GAAP)5,312 5,316 5,330 4,943 4,950 
Deferred tax liability related to intangibles (GAAP)(106)(105)(103)(92)(92)
Tangible common shareholders’ equity (non-GAAP)A$11,249 $11,037 $10,719 $11,171 $10,127 
Total assets (GAAP)$147,389 $145,180 $144,070 $133,542 $126,240 
Less:
Intangible assets (GAAP)5,312 5,316 5,330 4,943 4,950 
Deferred tax liability related to intangibles (GAAP)(106)(105)(103)(92)(92)
Tangible assets (non-GAAP)B$142,183 $139,969 $138,843 $128,691 $121,382 
Shares outstanding—end of quarterC960 960 960 957 957 
Tangible common shareholders’ equity to tangible assets (non-GAAP)(1)
A/B7.91 %7.88 %7.72 %8.68 %8.34 %
Tangible common book value per share (non-GAAP)(1)
A/C$11.71 $11.49 $11.16 $11.67 $10.58 
_________
(1)Amounts have been calculated using whole dollar values.


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Regions Financial Corporation and Subsidiaries                                
Financial Supplement to Fourth Quarter 2020 Earnings Release
Forward-Looking Statements
This release may include forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not based on historical information, but rather are related to future operations, strategies, financial results or other developments. Forward-looking statements are based on management’s current expectations as well as certain assumptions and estimates made by, and information available to, management at the time the statements are made. Those statements are based on general assumptions and are subject to various risks, and because they also relate to the future they are likewise subject to inherent uncertainties and other factors that may cause actual results to differ materially from the views, beliefs and projections expressed in such statements. Therefore, we caution you against relying on any of these forward-looking statements. These risks, uncertainties and other factors include, but are not limited to, those described below:
•Current and future economic and market conditions in the United States generally or in the communities we serve (in particular the Southeastern United States), including the effects of possible declines in property values, increases in unemployment rates, financial market disruptions and potential reductions of economic growth, which may adversely affect our lending and other businesses and our financial results and conditions.
•Possible changes in trade, monetary and fiscal policies of, and other activities undertaken by, governments, agencies, central banks and similar organizations, which could have a material adverse effect on our earnings.
•Possible changes in market interest rates or capital markets could adversely affect our revenue and expense, the value of assets and obligations, and the availability and cost of capital and liquidity.
•The impact of pandemics, including the ongoing COVID-19 pandemic, on our businesses and financial results and conditions.The duration and severity of the ongoing COVID-19 pandemic, which has disrupted the global economy, has and could continue to adversely affect our capital and liquidity position, impair the ability of borrowers to repay outstanding loans and increase our allowance for credit losses, impair collateral values, and result in lost revenue or additional expenses. The pandemic could also cause an outflow of deposits, result in goodwill impairment charges and the impairment of other financial and nonfinancial assets, and increase our cost of capital.
•Any impairment of our goodwill or other intangibles, any repricing of assets, or any adjustment of valuation allowances on our deferred tax assets due to changes in law, adverse changes in the economic environment, declining operations of the reporting unit or other factors.
•The effect of changes in tax laws, including the effect of any future interpretations of or amendments to Tax Reform, which may impact our earnings, capital ratios and our ability to return capital to shareholders.
•Possible changes in the creditworthiness of customers and the possible impairment of the collectability of loans and leases, including operating leases.
•Changes in the speed of loan prepayments, loan origination and sale volumes, charge-offs, loan loss provisions or actual loan losses where our allowance for loan losses may not be adequate to cover our eventual losses.
•Possible acceleration of prepayments on mortgage-backed securities due to low interest rates, and the related acceleration of premium amortization on those securities.
•Loss of customer checking and savings account deposits as customers pursue other, higher-yield investments, which could increase our funding costs.
•Possible changes in consumer and business spending and saving habits and the related effect on our ability to increase assets and to attract deposits, which could adversely affect our net income.
•Our ability to effectively compete with other traditional and non-traditional financial services companies, some of whom possess greater financial resources than we do or are subject to different regulatory standards than we are.
•Our inability to develop and gain acceptance from current and prospective customers for new products and services and the enhancement of existing products and services to meet customers’ needs and respond to emerging technological trends in a timely manner could have a negative impact on our revenue.
•Our inability to keep pace with technological changes could result in losing business to competitors.
•Changes in laws and regulations affecting our businesses, including legislation and regulations relating to bank products and services, as well as changes in the enforcement and interpretation of such laws and regulations by applicable governmental and self-regulatory agencies, which could require us to change certain business practices, increase compliance risk, reduce our revenue, impose additional costs on us, or otherwise negatively affect our businesses.
•Our capital actions, including dividend payments, common stock repurchases, or redemptions of preferred stock or other regulatory capital instruments, must not cause us to fall below minimum capital ratio requirements, with applicable buffers taken into account, and must comply with other requirements under law or imposed by our regulators, which may impact our ability to return capital to shareholders.
•Our ability to comply with stress testing and capital planning requirements (as part of the CCAR process or otherwise) may continue to require a significant investment of our managerial resources due to the importance of such tests and requirements.
•Our ability to comply with applicable capital and liquidity requirements (including, among other things, the Basel III capital standards), including our ability to generate capital internally or raise capital on favorable terms, and if we fail to meet requirements, our financial condition and market perceptions of us could be negatively impacted.
•The effects of any developments, changes or actions relating to any litigation or regulatory proceedings brought against us or any of our subsidiaries.
•The costs, including possibly incurring fines, penalties, or other negative effects (including reputational harm) of any adverse judicial, administrative, or arbitral rulings or proceedings, regulatory enforcement actions, or other legal actions to which we or any of our subsidiaries are a party, and which may adversely affect our results.
•Our ability to manage fluctuations in the value of assets and liabilities and off-balance sheet exposure so as to maintain sufficient capital and liquidity to support our business.
•Our ability to execute on our strategic and operational plans, including our ability to fully realize the financial and non-financial benefits relating to our strategic initiatives.
•The risks and uncertainties related to our acquisition or divestiture of businesses.
•The success of our marketing efforts in attracting and retaining customers.

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Regions Financial Corporation and Subsidiaries                                
Financial Supplement to Fourth Quarter 2020 Earnings Release
•Our ability to recruit and retain talented and experienced personnel to assist in the development, management and operation of our products and services may be affected by changes in laws and regulations in effect from time to time.
•Fraud or misconduct by our customers, employees or business partners.
•Any inaccurate or incomplete information provided to us by our customers or counterparties.
•Inability of our framework to manage risks associated with our business such as credit risk and operational risk, including third-party vendors and other service providers, which could, among other things, result in a breach of operating or security systems as a result of a cyber attack or similar act or failure to deliver our services effectively.
•Dependence on key suppliers or vendors to obtain equipment and other supplies for our business on acceptable terms.
•The inability of our internal controls and procedures to prevent, detect or mitigate any material errors or fraudulent acts.
•The effects of geopolitical instability, including wars, conflicts and terrorist attacks and the potential impact, directly or indirectly, on our businesses.
•The effects of man-made and natural disasters, including fires, floods, droughts, tornadoes, hurricanes, and environmental damage (specifically in the Southeastern United States), which may negatively affect our operations and/or our loan portfolios and increase our cost of conducting business. The severity and impact of future earthquakes, fires, hurricanes, tornadoes, droughts, floods and other weather-related events are difficult to predict and may be exacerbated by global climate change.
•Changes in commodity market prices and conditions could adversely affect the cash flows of our borrowers operating in industries that are impacted by changes in commodity prices (including businesses indirectly impacted by commodities prices such as businesses that transport commodities or manufacture equipment used in the production of commodities), which could impair their ability to service any loans outstanding to them and/or reduce demand for loans in those industries.
•Our ability to identify and address cyber-security risks such as data security breaches, malware, “denial of service” attacks, “hacking” and identity theft, including account take-overs, a failure of which could disrupt our business and result in the disclosure of and/or misuse or misappropriation of confidential or proprietary information, disruption or damage to our systems, increased costs, losses, or adverse effects to our reputation.
•Our ability to achieve our expense management initiatives.
•Market replacement of LIBOR and the related effect on our LIBOR-based financial products and contracts, including, but not limited to, derivative products, debt obligations, deposits, investments, and loans.
•Possible downgrades in our credit ratings or outlook could, among other negative impacts, increase the costs of funding from capital markets.
•The effects of a possible downgrade in the U.S. government’s sovereign credit rating or outlook, which could result in risks to us and general economic conditions that we are not able to predict.
•The effects of problems encountered by other financial institutions that adversely affect us or the banking industry generally could require us to change certain business practices, reduce our revenue, impose additional costs on us, or otherwise negatively affect our businesses.
•The effects of the failure of any component of our business infrastructure provided by a third party could disrupt our businesses, result in the disclosure of and/or misuse of confidential information or proprietary information, increase our costs, negatively affect our reputation, and cause losses.
•Our ability to receive dividends from our subsidiaries could affect our liquidity and ability to pay dividends to shareholders.
•Changes in accounting policies or procedures as may be required by the FASB or other regulatory agencies could materially affect our financial statements and how we report those results, and expectations and preliminary analyses relating to how such changes will affect our financial results could prove incorrect.
•Other risks identified from time to time in reports that we file with the SEC.
•Fluctuations in the price of our common stock and inability to complete stock repurchases in the time frame and/or on the terms anticipated.
•The effects of any damage to our reputation resulting from developments related to any of the items identified above.
The foregoing list of factors is not exhaustive. For discussion of these and other factors that may cause actual results to differ from expectations, look under the captions “Forward-Looking Statements” and “Risk Factors” of Regions’ Annual Report on Form 10-K for the year ended December 31, 2019 and the "Risk Factors" of Regions' Quarterly Report on Form 10-Q for the quarter ended September 30, 2020 as filed with the SEC.
Further, statements about the potential effects of the COVID-19 pandemic on our businesses and financial results and conditions may constitute forward-looking statements and are subject to the risk that the actual effects may differ, possibly materially, from what is reflected in those forward-looking statements due to factors and future developments that are uncertain, unpredictable and in many cases beyond our control, including the scope and duration of the pandemic (including any second wave or resurgences), actions taken by governmental authorities in response to the pandemic, and the direct and indirect impact of the pandemic on our customers, third parties and us.
The words "future," “anticipates,” "assumes," “intends,” “plans,” “seeks,” “believes,” "predicts," "potential," "objectives," “estimates,” “expects,” “targets,” “projects,” “outlook,” “forecast,” "would," “will,” “may,” “might,” “could,” “should,” “can,” and similar terms and expressions often signify forward-looking statements. You should not place undue reliance on any forward-looking statements, which speak only as of the date made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible to predict all of them. We assume no obligation and do not intend to update or revise any forward-looking statements that are made from time to time, either as a result of future developments, new information or otherwise, except as may be required by law.
Regions’ Investor Relations contact is Dana Nolan at (205) 264-7040; Regions’ Media contact is Jeremy King at (205) 264-4551.

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