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.



1

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 
Other earning assets 10 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 — 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 61 
Mortgage income75 108 82 68 49 
Securities gains (losses), net — (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.


4

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 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 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 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 0.14 
Interest-bearing checking22,940 3 0.05 22,098 0.07 
Money market 29,312 5 0.06 29,146 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.


5

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 3.06 514 3.72 540 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 4.20 323 4.62 357 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 0.13 $8,822 0.17 $8,616 0.14 
Interest-bearing checking21,755 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 1.57 298 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 1.39 110 1.58 
Other short-term borrowings1,558 0.53 1,644 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.

6

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 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 
$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)%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)— 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 — 24 NM26 NM
Branch consolidation, property and equipment charges7 10 11 12 133.3 %(5)(41.7)%
Contribution to the Regions Financial Corporation foundation10 — — — — 10 NM10 NM
Loss on early extinguishment of debt14 — 16 12 NM(2)(12.5)%
Professional, legal and regulatory expenses — — — — NM— NM
Acquisition expenses — — — — 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)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 26 NM
Branch consolidation, property and equipment charges31 25 24.0 %
Contribution to the Regions Financial Corporation foundation10 — 10 NM
Loss on early extinguishment of debt22 16 37.5 
Professional, legal and regulatory expenses7 — NM
Ascentium expenses1 — 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.




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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 $5.3 %$(27)(14.4)%
Card and ATM fees117 115 101 105 112 1.7 %4.5 %
Wealth management income89 85 79 84 84 4.7 %6.0 %
Capital markets income (1)
110 61 95 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 10.0 %22.2 %
Bank-owned life insurance43 17 18 17 18 26 152.9 %25 138.9 %
Securities gains (losses), net — (2)(3)(100.0)%100.0 %
Market value adjustments on employee benefit assets (2)
7 14 16 (25)(7)(50.0)%— — %
Valuation gain on equity investment6 44 — — — (38)(86.4)%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 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 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 %