EX-99.2 3 rf-20221231xexhibitx992.htm EX-99.2 Document

Exhibit 99.2

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Regions Financial Corporation and Subsidiaries
Financial Supplement (unaudited)
Fourth Quarter 2022





Regions Financial Corporation and Subsidiaries                                
Financial Supplement (unaudited) to Fourth Quarter 2022 Earnings Release

Table of Contents
 
   Page
Financial Highlights  
Selected Ratios and Other Information*  
Consolidated Balance Sheets  
  
Loans   
Deposits  
Consolidated Statements of Income  
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 of GAAP Financial Measures to non-GAAP Financial Measures*  
Adjusted Efficiency Ratios, Adjusted Fee Income Ratios, Adjusted Non-Interest Income / Expense, Adjusted Operating Leverage Ratios, Return Ratios, and Tangible Common Ratios
Credit Quality  
Allowance for Credit Losses, Net Charge-Offs and Related Ratios, Adjusted Net Charge-Offs and Related Ratios  
Non-Accrual Loans (excludes loans held for sale), Early and Late Stage Delinquencies  
Forward-Looking Statements

*Use of non-GAAP financial measures
Regions believes that presentation of non-GAAP financial measures provides a meaningful basis for period to period comparisons, which management believes will assist investors in assessing the performance of the Company on the same basis as that applied by management. Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied and are not audited. Although non-GAAP financial measures are frequently used by stakeholders in the evaluation of a company, they have limitations as analytical tools, and should not be considered in isolation, or as a substitute for analyses of results as reported under GAAP. In particular, a measure of earnings that excludes certain adjustments does not represent the amount that effectively accrues directly to shareholders. Additionally, our non-GAAP financial measures may not be comparable to similar non-GAAP financial measures used by other companies.

Regions Financial Corporation and Subsidiaries                                
Financial Supplement (unaudited) to Fourth Quarter 2022 Earnings Release
Financial Highlights
Quarter Ended
($ amounts in millions, except per share data)12/31/20229/30/20226/30/20223/31/202212/31/2021
Earnings Summary
Interest income - taxable equivalent$1,565 $1,355 $1,166 $1,063 $1,066 
Interest expense - taxable equivalent151 81 47 37 37 
Net interest income - taxable equivalent1,414 1,274 1,119 1,026 1,029 
Less: Taxable-equivalent adjustment13 12 11 11 10 
Net interest income 1,401 1,262 1,108 1,015 1,019 
Provision for (benefit from) credit losses112 135 60 (36)110 
Net interest income after provision for (benefit from) credit losses1,289 1,127 1,048 1,051 909 
Non-interest income600 605 640 584 615 
Non-interest expense1,017 1,170 948 933 983 
Income before income taxes872 562 740 702 541 
Income tax expense187 133 157 154 103 
Net income$685 $429 $583 $548 $438 
Net income available to common shareholders$660 $404 $558 $524 $414 
Weighted-average shares outstanding—during quarter:
Basic934 934 934 938 949 
Diluted941 940 940 947 958 
Earnings per common share - basic$0.71 $0.43 $0.60 $0.56 $0.44 
Earnings per common share - diluted$0.70 $0.43 $0.59 $0.55 $0.43 
Balance Sheet Summary
At quarter-end
Loans, net of unearned income$97,009 $94,711 $93,458 $89,335 $87,784 
Allowance for credit losses(1,582 )(1,539 )(1,514 )(1,492 )(1,574 )
Assets155,220 157,798 160,908 164,082 162,938 
Deposits131,743 135,378 138,263 141,022 139,072 
Long-term borrowings2,284 2,274 2,319 2,343 2,407 
Shareholders' equity15,947 15,173 16,507 16,982 18,326 
Average balances
Loans, net of unearned income$95,752 $94,684 $90,764 $87,814 $86,548 
Assets155,668 158,422 161,826 161,728 160,051 
Deposits133,007 135,518 139,592 138,734 136,682 
Long-term borrowings2,275 2,319 2,328 2,390 2,433 
Shareholders' equity15,442 16,473 16,404 17,717 18,308 




1
Regions Financial Corporation and Subsidiaries                                
Financial Supplement (unaudited) to Fourth Quarter 2022 Earnings Release
Selected Ratios and Other Information
As of and for Quarter Ended
 12/31/20229/30/20226/30/20223/31/202212/31/2021
Return on average assets* (1)
1.75 %1.07 %1.44 %1.38 %1.09 %
Return on average common shareholders' equity*19.01 %10.82 %15.18 %13.23 %9.86 %
Return on average tangible common shareholders’ equity (non-GAAP)* (2)
33.20 %18.02 %25.40 %21.00 %15.07 %
Return on average tangible common shareholders’ equity excluding AOCI (non-GAAP)* (2)
22.91 %14.42 %20.85 %20.25 %15.56 %
Efficiency ratio50.5 %62.3 %53.9 %57.9 %59.8 %
Adjusted efficiency ratio (non-GAAP) (2)
51.6 %52.6 %54.2 %57.9 %58.8 %
Dividend payout ratio (3)
28.3 %46.2 %28.5 %30.3 %38.8 %
Common book value per share$15.29 $14.46 $15.89 $16.42 $17.69 
Tangible common book value per share (non-GAAP) (2)
$9.00 $8.15 $9.55 $10.06 $11.38 
Total equity to total assets10.27 %9.62 %10.26 %10.35 %11.25 %
Tangible common shareholders’ equity to tangible assets (non-GAAP) (2)
5.63 %5.01 %5.76 %5.93 %6.83 %
Common equity (4)
$12,066$11,554 $11,298 $10,912 $10,844 
Total risk-weighted assets (4)
$125,702$124,395 $122,154 $116,182 $113,343 
Common equity Tier 1 ratio (4)
9.6 %9.3 %9.2 %9.4 %9.6 %
Tier 1 capital ratio (4)
10.9 %10.6 %10.6 %10.8 %11.0 %
Total risk-based capital ratio (4)
12.5 %12.3 %12.3 %12.5 %12.7 %
Leverage ratio (4)
8.9 %8.5 %8.2 %8.0 %8.1 %
Effective tax rate 21.5 %23.7 %21.2 %21.9 %18.9 %
Allowance for credit losses as a percentage of loans, net of unearned income1.63 %1.63 %1.62 %1.67 %1.79 %
Allowance for credit losses to non-performing loans, excluding loans held for sale 317 %311 %410 %446 %349 %
Net interest margin (FTE)* 3.99 %3.53 %3.06 %2.85 %2.83 %
Loans, net of unearned income, to total deposits73.6 %70.0 %67.6 %63.3 %63.1 %
Net charge-offs as a percentage of average loans*0.29 %0.46 %0.17 %0.21 %0.20 %
Adjusted net charge-offs as a percentage of average loans (non-GAAP) * (2)
0.29 %0.19 %0.17 %0.21 %0.20 %
Non-performing loans, excluding loans held for sale, as a percentage of loans0.52 %0.52 %0.39 %0.37 %0.51 %
Non-performing assets (excluding loans 90 days past due) as a percentage of loans, foreclosed properties, and non-performing loans held for sale0.53 %0.54 %0.41 %0.39 %0.54 %
Non-performing assets (including loans 90 days past due) as a percentage of loans, foreclosed properties, and non-performing loans held for sale (5)
0.75 %0.65 %0.52 %0.53 %0.70 %
Associate headcount—full-time equivalent (6)
20,073 19,950 19,673 19,723 19,626 
ATMs 2,039 2,043 2,048 2,054 2,068 
Branch Statistics
Full service1,252 1,259 1,259 1,259 1,268 
Drive-through/transaction service only34 35 35 35 34 
Total branch outlets1,286 1,294 1,294 1,294 1,302 
Year Ended December 31
20222021
Return on average assets (1)
1.41 %1.63 %
Return on average common shareholders' equity14.46 %14.51 %
Return on average tangible common shareholders’ equity (non-GAAP) (2)
24.05 %21.42 %
Return on average tangible common shareholders’ equity excluding AOCI (non-GAAP) (2)
19.61 %22.85 %
Efficiency ratio 56.0 %57.8 %
Adjusted efficiency ratio (non-GAAP) (2)
53.9 %57.3 %
Dividend payout ratio (3)
32.2 %25.8 %
Effective tax rate 22.0 %21.6 %
Net interest margin (FTE) 3.36 %2.85 %
Net charge-offs as a percentage of average loans0.29 %0.24 %
Adjusted net charge-offs as a percentage of average loans (non-GAAP) (2)
0.22 %0.24 %
*Annualized
(1)Calculated by dividing net income by average assets.
(2)See reconciliation of GAAP to non-GAAP Financial Measures that begin on pages 13, 17, 18, 19 and 21.
(3)Dividend payout ratio reflects dividends declared within the applicable period.
(4)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.
(5)Excludes guaranteed residential first mortgages that are 90+ days past due and still accruing. Refer to the footnotes on page 23 for amounts related to these loans.
(6)Associate headcount for the fourth quarter of 2021 includes approximately 620 associates from acquisitions closed in the quarter.


2
Regions Financial Corporation and Subsidiaries                                
Financial Supplement (unaudited) to Fourth Quarter 2022 Earnings Release
Consolidated Balance Sheets
As of
($ amounts in millions)12/31/20229/30/20226/30/20223/31/202212/31/2021
Assets:
Cash and due from banks$1,997 $2,117 $2,301 $2,227 $1,350 
Interest-bearing deposits in other banks9,230 13,549 18,199 25,718 28,061 
Debt securities held to maturity801 817 836 864 899 
Debt securities available for sale27,933 28,126 29,052 29,384 28,481 
Loans held for sale354 720 612 694 1,003 
Loans, net of unearned income 97,009 94,711 93,458 89,335 87,784 
Allowance for loan losses
(1,464)(1,418)(1,425)(1,416)(1,479)
Net loans95,545 93,293 92,033 87,919 86,305 
Other earning assets1,308 1,341 1,428 1,504 1,187 
Premises and equipment, net1,718 1,744 1,768 1,794 1,814 
Interest receivable511 424 365 329 319 
Goodwill5,733 5,739 5,749 5,748 5,744 
Residential mortgage servicing rights at fair value (MSRs)812 809 770 542 418 
Other identifiable intangible assets, net249 266 279 292 305 
Other assets9,029 8,853 7,516 7,067 7,052 
Total assets$155,220 $157,798 $160,908 $164,082 $162,938 
Liabilities and Equity:
Deposits:
Non-interest-bearing$51,348 $54,996 $58,510 $59,590 $58,369 
Interest-bearing80,395 80,382 79,753 81,432 80,703 
Total deposits131,743 135,378 138,263 141,022 139,072 
Borrowed funds:
Long-term borrowings2,284 2,274 2,319 2,343 2,407 
Other liabilities5,242 4,973 3,819 3,735 3,133 
Total liabilities139,269 142,625 144,401 147,100 144,612 
Equity:
Preferred stock, non-cumulative perpetual1,659 1,659 1,659 1,659 1,659 
Common stock10 10 10 10 10 
Additional paid-in capital11,988 11,976 11,962 11,983 12,189 
Retained earnings7,004 6,531 6,314 5,915 5,550 
Treasury stock, at cost(1,371)(1,371)(1,371)(1,371)(1,371)
Accumulated other comprehensive income, net(3,343)(3,632)(2,067)(1,214)289 
Total shareholders’ equity15,947 15,173 16,507 16,982 18,326 
Noncontrolling interest
4 — — — — 
Total equity
15,951 15,173 16,507 16,982 18,326 
Total liabilities and equity
$155,220 $157,798 $160,908 $164,082 $162,938 








3
Regions Financial Corporation and Subsidiaries                                
Financial Supplement (unaudited) to Fourth Quarter 2022 Earnings Release
End of Period Loans
As of
    12/31/202212/31/2022
($ amounts in millions)12/31/20229/30/20226/30/20223/31/202212/31/2021 vs. 9/30/2022 vs. 12/31/2021
Commercial and industrial$50,905 $49,591 $48,492 $45,643 $43,758 $1,314 2.6 %$7,147 16.3 %
Commercial real estate mortgage—owner-occupied5,103 5,167 5,218 5,181 5,287 (64)(1.2)%(184)(3.5)%
Commercial real estate construction—owner-occupied298 282 266 273 264 16 5.7 %34 12.9 %
Total commercial56,306 55,040 53,976 51,097 49,309 1,266 2.3 %6,997 14.2 %
Commercial investor real estate mortgage 6,393 6,295 5,892 5,557 5,441 98 1.6 %952 17.5 %
Commercial investor real estate construction1,986 1,824 1,720 1,607 1,586 162 8.9 %400 25.2 %
Total investor real estate8,379 8,119 7,612 7,164 7,027 260 3.2 %1,352 19.2 %
Total business64,685 63,159 61,588 58,261 56,336 1,526 2.4 %8,349 14.8 %
Residential first mortgage18,810 18,399 17,892 17,373 17,512 411 2.2 %1,298 7.4 %
Home equity—lines of credit (1)
3,510 3,521 3,550 3,602 3,744 (11)(0.3)%(234)(6.3)%
Home equity—closed-end (2)
2,489 2,515 2,524 2,500 2,510 (26)(1.0)%(21)(0.8)%
Consumer credit card1,248 1,186 1,172 1,133 1,184 62 5.2 %64 5.4 %
Other consumer—exit portfolios (3)
570 662 775 909 1,071 (92)(13.9)%(501)(46.8)%
Other consumer5,697 5,269 5,957 5,557 5,427 428 8.1 %270 5.0 %
Total consumer32,324 31,552 31,870 31,074 31,448 772 2.4 %876 2.8 %
Total Loans$97,009 $94,711 $93,458 $89,335 $87,784 $2,298 2.4 %$9,225 10.5 %
______
NM - Not meaningful.
(1)     The balance of Regions' home equity lines of credit consists of $1,855 million of first lien and $1,655 million of second lien at 12/31/2022.
(2)    The balance of Regions' closed-end home equity loans consists of $2,244 million of first lien and $245 million of second lien at 12/31/2022.
(3)    Regions ceased originating indirect vehicle loans in the second quarter of 2019 and decided not to renew another third party relationship in the fourth quarter of 2019.
As of
End of Period Loans by Percentage12/31/20229/30/20226/30/20223/31/202212/31/2021
Commercial and industrial52.5 %52.4 %51.9 %51.1 %49.9 %
Commercial real estate mortgage—owner-occupied5.3 %5.5 %5.6 %5.8 %6.0 %
Commercial real estate construction—owner-occupied0.3 %0.3 %0.3 %0.3 %0.3 %
Total commercial58.1 %58.2 %57.8 %57.2 %56.2 %
Commercial investor real estate mortgage6.6 %6.6 %6.3 %6.2 %6.2 %
Commercial investor real estate construction2.0 %1.9 %1.8 %1.8 %1.8 %
Total investor real estate8.6 %8.5 %8.1 %8.0 %8.0 %
Total business66.7 %66.7 %65.9 %65.2 %64.2 %
Residential first mortgage19.4 %19.4 %19.1 %19.4 %19.9 %
Home equity—lines of credit 3.6 %3.7 %3.8 %4.0 %4.3 %
Home equity—closed-end 2.6 %2.7 %2.7 %2.8 %2.9 %
Consumer credit card1.3 %1.3 %1.3 %1.3 %1.3 %
Other consumer—exit portfolios0.6 %0.7 %0.8 %1.0 %1.2 %
Other consumer5.8 %5.5 %6.4 %6.3 %6.2 %
Total consumer33.3 %33.3 %34.1 %34.8 %35.8 %
Total Loans100.0 %100.0 %100.0 %100.0 %100.0 %


4
Regions Financial Corporation and Subsidiaries                                
Financial Supplement (unaudited) to Fourth Quarter 2022 Earnings Release
Average Balances of Loans
 Average Balances
($ amounts in millions)4Q223Q222Q221Q224Q214Q22 vs. 3Q224Q22 vs. 4Q21
Commercial and industrial$50,135 $49,120 $46,538 $43,993 $42,254 $1,015 2.1 %$7,881 18.7 %
Commercial real estate mortgage—owner-occupied5,073 5,167 5,204 5,237 5,386 (94)(1.8)%(313)(5.8)%
Commercial real estate construction—owner-occupied289 274 273 269 263 15 5.5 %26 9.9 %
Total commercial55,497 54,561 52,015 49,499 47,903 936 1.7 %7,594 15.9 %
Commercial investor real estate mortgage6,406 6,115 5,760 5,514 5,531 291 4.8 %875 15.8 %
Commercial investor real estate construction1,884 1,764 1,668 1,568 1,654 120 6.8 %230 13.9 %
Total investor real estate8,290 7,879 7,428 7,082 7,185 411 5.2 %1,105 15.4 %
Total business 63,787 62,440 59,443 56,581 55,088 1,347 2.2 %8,699 15.8 %
Residential first mortgage18,595 18,125 17,569 17,496 17,413 470 2.6 %1,182 6.8 %
Home equity—lines of credit3,520 3,531 3,571 3,667 3,806 (11)(0.3)%(286)(7.5)%
Home equity—closed-end2,497 2,519 2,511 2,496 2,528 (22)(0.9)%(31)(1.2)%
Consumer credit card1,207 1,176 1,145 1,142 1,155 31 2.6 %52 4.5 %
Other consumer—exit portfolios (1)
613 716 836 987 1,160 (103)(14.4)%(547)(47.2)%
Other consumer5,533 6,177 5,689 5,445 5,398 (644)(10.4)%135 2.5 %
Total consumer31,965 32,244 31,321 31,233 31,460 (279)(0.9)%505 1.6 %
Total Loans$95,752 $94,684 $90,764 $87,814 $86,548 $1,068 1.1 %$9,204 10.6 %


Average Balances
Twelve Months Ended December 31
($ amounts in millions)202220212022 vs. 2021
Commercial and industrial$47,468 $42,522 $4,946 11.6 %
Commercial real estate mortgage—owner-occupied5,170 5,389 (219)(4.1)%
Commercial real estate construction—owner-occupied276 272 4 1.5 %
Total commercial52,914 48,183 4,731 9.8 %
Commercial investor real estate mortgage5,952 5,509 443 8.0 %
Commercial investor real estate construction1,722 1,741 (19)(1.1)%
Total investor real estate7,674 7,250 424 5.8 %
Total business 60,588 55,433 5,155 9.3 %
Residential first mortgage17,950 17,006 944 5.6 %
Home equity—lines of credit3,572 4,084 (512)(12.5)%
Home equity—closed-end2,506 2,593 (87)(3.4)%
Consumer credit card1,168 1,136 32 2.8 %
Other consumer—exit portfolios (1)
787 1,499 (712)(47.5)%
Other consumer5,711 3,051 2,660 87.2 %
Total consumer31,694 29,369 2,325 7.9 %
Total Loans$92,282 $84,802 $7,480 8.8 %
_____
NM - Not meaningful.
(1)Regions ceased originating indirect vehicle lending in the second quarter of 2019 and decided not to renew a third party relationship in the fourth quarter of 2019.


.


5
Regions Financial Corporation and Subsidiaries                                
Financial Supplement (unaudited) to Fourth Quarter 2022 Earnings Release
End of Period Deposits
 As of
     12/31/202212/31/2022
($ amounts in millions)12/31/20229/30/20226/30/20223/31/202212/31/2021 vs. 9/30/2022 vs. 12/31/2021
Interest-free deposits$51,348 $54,996 $58,510 $59,590 $58,369 $(3,648)(6.6)%$(7,021)(12.0)%
Interest-bearing checking25,676 26,500 26,989 28,001 28,018 (824)(3.1)%(2,342)(8.4)%
Savings15,662 16,083 16,220 16,101 15,134 (421)(2.6)%5283.5%
Money market—domestic33,285 32,444 31,116 31,677 31,408 8412.6%1,8776.0%
Low-cost deposits125,971 130,023 132,835 135,369 132,929 (4,052)(3.1)%(6,958)(5.2)%
Time deposits5,772 5,355 5,428 5,653 6,143 4177.8%(371)(6.0)%
Total Deposits$131,743 $135,378 $138,263 $141,022 $139,072 $(3,635)(2.7)%$(7,329)(5.3)%
 As of
   12/31/202212/31/2022
($ amounts in millions)12/31/20229/30/20226/30/20223/31/202212/31/2021 vs. 9/30/2022 vs. 12/31/2021
Consumer Bank Segment$83,487 $85,455 $84,987 $85,219 $82,849 $(1,968)(2.3)%$6380.8%
Corporate Bank Segment37,145 38,293 41,456 42,836 42,689 (1,148)(3.0)%(5,544)(13.0)%
Wealth Management Segment9,111 9,400 9,489 10,420 10,853 (289)(3.1)%(1,742)(16.1)%
Other (1)
2,000 2,230 2,331 2,547 2,681 (230)(10.3)%(681)(25.4)%
Total Deposits$131,743 $135,378 $138,263 $141,022 $139,072 $(3,635)(2.7)%$(7,329)(5.3)%
 As of
    12/31/202212/31/2022
($ amounts in millions)12/31/20229/30/20226/30/20223/31/202212/31/2021 vs. 9/30/2022 vs. 12/31/2021
Wealth Management - Private Wealth$8,196 $8,565 $8,771 $9,472 $10,033 $(369)(4.3)%$(1,837)(18.3)%
Wealth Management - Institutional Services915 835 718 948 820 809.6%9511.6%
Total Wealth Management Segment Deposits$9,111 $9,400 $9,489 $10,420 $10,853 $(289)(3.1)%$(1,742)(16.1)%

As of
End of Period Deposits by Percentage12/31/20229/30/20226/30/20223/31/202212/31/2021
Interest-free deposits39.0 %40.6 %42.3 %42.3 %42.0 %
Interest-bearing checking19.5 %19.6 %19.5 %19.9 %20.1 %
Savings11.9 %11.9 %11.7 %11.4 %10.9 %
Money market—domestic25.3 %24.0 %22.5 %22.5 %22.6 %
Low-cost deposits95.7 %96.1 %96.0 %96.1 %95.6 %
Time deposits4.3 %3.9 %4.0 %3.9 %4.4 %
Total Deposits100.0 %100.0 %100.0 %100.0 %100.0 %
NM - Not meaningful.
(1)Other deposits represent non-customer balances primarily consisting of wholesale funding (for example, Eurodollar trade deposits, selected deposits and brokered time deposits).










6
Regions Financial Corporation and Subsidiaries                                
Financial Supplement (unaudited) to Fourth Quarter 2022 Earnings Release
Average Balances of Deposits
Average Balances
($ amounts in millions)4Q223Q222Q221Q224Q214Q22 vs. 3Q224Q22 vs. 4Q21
Interest-free deposits$53,107 $55,806 $58,911 $58,117 $57,840 $(2,699)(4.8)%$(4,733)(8.2)%
Interest-bearing checking25,379 26,665 27,533 27,771 26,000 (1,286)(4.8)%(621)(2.4)%
Savings15,840 16,176 16,200 15,539 14,854 (336)(2.1)%986 6.6 %
Money market—domestic33,218 31,520 31,348 31,402 31,483 1,698 5.4 %1,735 5.5 %
Low-cost deposits127,544 130,167 133,992 132,829 130,177 (2,623)(2.0)%(2,633)(2.0)%
Time deposits5,462 5,351 5,600 5,905 6,505 111 2.1 %(1,043)(16.0)%
Corporate treasury other deposits1 — — — — 1 NM1 NM
Total Deposits$133,007 $135,518 $139,592 $138,734 $136,682 $(2,511)(1.9)%(3,675)(2.7)%
 Average Balances
($ amounts in millions)4Q223Q222Q221Q224Q214Q22 vs. 3Q224Q22 vs. 4Q21
Consumer Bank Segment$83,555 $84,741 $85,224 $83,054 $80,930 $(1,186)(1.4)%$2,625 3.2 %
Corporate Bank Segment38,176 39,058 41,920 42,609 42,659 (882)(2.3)%(4,483)(10.5)%
Wealth Management Segment9,065 9,467 10,020 10,407 10,054 (402)(4.2)%(989)(9.8)%
Other (1)
2,211 2,252 2,428 2,664 3,039 (41)(1.8)%(828)(27.2)%
Total Deposits$133,007 $135,518 $139,592 $138,734 $136,682 $(2,511)(1.9)%$(3,675)(2.7)%
 Average Balances
($ amounts in millions)4Q223Q222Q221Q224Q214Q22 vs. 3Q224Q22 vs. 4Q21
Wealth Management - Private Wealth$8,367 $8,792 $9,266 $9,591 $9,266 $(425)(4.8)%$(899)(9.7)%
Wealth Management - Institutional Services698 675 754 816 788 23 3.4 %(90)(11.4)%
Total Wealth Management Segment Deposits$9,065 $9,467 $10,020 $10,407 $10,054 $(402)(4.2)%$(989)(9.8)%

Average Balances
Twelve Months Ended December 31
($ amounts in millions)202220212022 vs. 2021
Interest-free deposits$56,469 $55,838 $631 1.1 %
Interest-bearing checking26,830 25,128 1,702 6.8 %
Savings15,940 13,867 2,073 14.9 %
Money market—domestic31,875 30,615 1,260 4.1 %
Low-cost deposits131,114 125,448 5,666 4.5 %
Time deposits5,578 5,253 325 6.2 %
Corporate treasury time deposits— 1 (1)(100.0)%
Corporate treasury other deposits1 1 — — %
Total Deposits$136,693 $130,703 $5,990 4.6 %
Average Balances
Twelve Months Ended December 31
($ amounts in millions)202220212022 vs. 2021
Consumer Bank Segment$84,146 $77,820 $6,326 8.1 %
Corporate Bank Segment40,396 42,115 (1,719)(4.1)%
Wealth Management Segment9,764 9,684 80 0.8 %
Other (1)
2,387 1,084 1,303 120.2 %
Total Deposits$136,693 $130,703 $5,990 4.6 %
Average Balances
Twelve Months Ended December 31
($ amounts in millions)202220212022 vs. 2021
Wealth Management - Private Wealth$9,029 $8,857 $172 1.9 %
Wealth Management - Institutional Services735 827 (92)(11.1)%
Total Wealth Management Segment Deposits$9,764 $9,684 $80 0.8 %
________
NM - Not meaningful.
(1)Other deposits represent non-customer balances primarily consisting of wholesale funding (for example, Eurodollar trade deposits, selected deposits and brokered time deposits).

7
Regions Financial Corporation and Subsidiaries                                
Financial Supplement (unaudited) to Fourth Quarter 2022 Earnings Release
Consolidated Statements of Income
Quarter Ended
($ amounts in millions, except per share data)12/31/20229/30/20226/30/20223/31/202212/31/2021
Interest income on:
Loans, including fees $1,208 $1,072 $932 $876 $902 
Debt securities222 171 157 138 134 
Loans held for sale9 8 10 9 6 
Other earning assets 113 92 56 29 14 
Total interest income1,552 1,343 1,155 1,052 1,056 
Interest expense on:
Deposits114 50 20 13 13 
Long-term borrowings37 31 27 24 24 
Total interest expense151 81 47 37 37 
Net interest income 1,401 1,262 1,108 1,015 1,019 
Provision for (benefit from) credit losses112 135 60 (36)110 
Net interest income after provision for (benefit from) credit losses1,289 1,127 1,048 1,051 909 
Non-interest income:
Service charges on deposit accounts152 156 165 168 166 
Card and ATM fees130 126 133 124 127 
Wealth management income108 108 102 101 100 
Capital markets income61 93 112 73 83 
Mortgage income24 37 47 48 49 
Securities gains (losses), net— (1)— — — 
Other125 86 81 70 90 
Total non-interest income600 605 640 584 615 
Non-interest expense:
Salaries and employee benefits604 593 575 546 575 
Equipment and software expense102 98 97 95 96 
Net occupancy expense74 76 75 75 76 
Other237 403 201 217 236 
Total non-interest expense1,017 1,170 948 933 983 
Income before income taxes872 562 740 702 541 
Income tax expense 187 133 157 154 103 
Net income $685 $429 $583 $548 $438 
Net income available to common shareholders$660 $404 $558 $524 $414 
Weighted-average shares outstanding—during quarter:
Basic934 934 934 938 949 
Diluted941 940 940 947 958 
Actual shares outstanding—end of quarter934 934 934 933 942 
Earnings per common share: (1)
Basic$0.71 $0.43 $0.60 $0.56 $0.44 
Diluted$0.70 $0.43 $0.59 $0.55 $0.43 
Taxable-equivalent net interest income$1,414 $1,274 $1,119 $1,026 $1,029 
________
(1) Quarterly amounts may not add to year-to-date amounts due to rounding.





8
Regions Financial Corporation and Subsidiaries                                
Financial Supplement (unaudited) to Fourth Quarter 2022 Earnings Release
Consolidated Statements of Income (continued) (unaudited)
Twelve Months Ended December 31
($ amounts in millions, except per share data)20222021
Interest income on:
Loans, including fees$4,088 $3,452 
Debt securities688 533 
Loans held for sale36 37 
Other earning assets 290 59 
Total interest income5,102 4,081 
Interest expense on:
Deposits197 64 
Long-term borrowings119 103 
Total interest expense316 167 
Net interest income4,786 3,914 
Provision for (benefit from) credit losses271 (524)
Net interest income after provision for (benefit from) credit losses4,515 4,438 
Non-interest income:
Service charges on deposit accounts641 648 
Card and ATM fees513 499 
Wealth management income 419 382 
Capital markets income339 331 
Mortgage income156 242 
Securities gains (losses), net(1)3 
Other362 419 
Total non-interest income2,429 2,524 
Non-interest expense:
Salaries and employee benefits2,318 2,205 
Equipment and software expense392 365 
Net occupancy expense300 303 
Other1,058 874 
Total non-interest expense4,068 3,747 
Income before income taxes2,876 3,215 
Income tax expense 631 694 
Net income $2,245 $2,521 
Net income available to common shareholders$2,146 $2,400 
Weighted-average shares outstanding—during year:
Basic935 956 
Diluted942 963 
Actual shares outstanding—end of period934 942 
Earnings per common share:
Basic$2.29 $2.51 
Diluted$2.28 $2.49 
Taxable-equivalent net interest income$4,833 $3,958 


9
Regions Financial Corporation and Subsidiaries                                
Financial Supplement (unaudited) to Fourth Quarter 2022 Earnings Release
Consolidated Average Daily Balances and Yield/Rate Analysis
 Quarter Ended
 12/31/20229/30/2022
($ amounts in millions; yields on taxable-equivalent basis)Average BalanceIncome/ Expense
Yield/ Rate (1)
Average BalanceIncome/ Expense
Yield/ Rate (1)
Assets
Earning assets:
Federal funds sold and securities purchased under agreements to resell$1 $— 3.56 %$1 $— 2.43 %
Debt securities (2)(3)
32,213 222 2.75 32,101 171 2.12 
Loans held for sale537 9 6.53 539 8 6.09 
Loans, net of unearned income:
Commercial and industrial (4)
50,135 647 5.10 49,120 549 4.42 
Commercial real estate mortgage—owner-occupied (5)
5,073 55 4.27 5,167 56 4.20 
Commercial real estate construction—owner-occupied289 4 4.96 274 3 4.53 
Commercial investor real estate mortgage6,406 89 5.43 6,115 64 4.06 
Commercial investor real estate construction1,884 30 6.24 1,764 22 4.77 
Residential first mortgage18,595 155 3.33 18,125 147 3.24 
Home equity6,017 81 5.31 6,050 68 4.49 
Consumer credit card1,207 44 14.34 1,176 40 13.79 
Other consumer—exit portfolios613 9 6.07 716 10 5.72 
Other consumer5,533 107 7.77 6,177 125 8.03 
Total loans, net of unearned income95,752 1,221 5.05 94,684 1,084 4.53 
Interest bearing deposits in other banks10,600 100 3.74 14,353 81 2.25 
Other earning assets1,380 13 3.76 1,379 11 3.34 
Total earning assets 140,483 1,565 4.42 143,057 1,355 3.76 
Unrealized gains/(losses) on debt securities available for sale, net (2)
(3,582)(2,389)
Allowance for loan losses(1,447)(1,432)
Cash and due from banks2,406 2,291 
Other non-earning assets17,808 16,895 
$155,668 $158,422 
Liabilities and Shareholders’ Equity
Interest-bearing liabilities:
Savings $15,840 4 0.10 $16,176 5 0.11 
Interest-bearing checking25,379 42 0.65 26,665 22 0.33 
Money market 33,218 57 0.69 31,520 17 0.22 
Time deposits5,462 11 0.80 5,351 6 0.45 
Other deposits1 — 5.47 — — — 
Total interest-bearing deposits (6)
79,900 114 0.57 79,712 50 0.25 
Federal funds purchased and securities sold under agreements to repurchase39 — 3.73 — — — 
Other short-term borrowings— — — 30 — 0.23 
Long-term borrowings2,275 37 6.38 2,319 31 5.39 
Total interest-bearing liabilities82,214 151 0.73 82,061 81 0.39 
Non-interest-bearing deposits (6)
53,107 — — 55,806 — — 
Total funding sources135,321 151 0.44 137,867 81 0.23 
Net interest spread (2)
3.69 3.36 
Other liabilities4,904 4,082 
Shareholders’ equity15,442 16,473 
Noncontrolling interest1 — 
$155,668 $158,422 
Net interest income/margin FTE basis (2)
$1,414 3.99 %$1,274 3.53 %
_______
(1) Amounts have been calculated using whole dollar values.
(2) Debt securities are included on an amortized cost basis with yield and net interest margin calculated accordingly.
(3)    Interest income includes hedging income of $40 million for the quarter ended December 31, 2022 and zero for the quarter ended September 30, 2022. Hedging income for the quarter ended December 31, 2022 reflects strategies designed to accelerate hedge notional maturities through the use of pay-fixed swaps. Benefits will migrate from securities to loans in the first quarter of 2023.
(4) Interest income includes hedging expense of $43 million for the quarter ended December 31, 2022 and zero for the quarter ended September 30, 2022.
(5) Interest income includes hedging expense of $5 million for the quarter ended December 31, 2022 and zero for the quarter ended September 30, 2022.
(6) 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 0.34% for the quarter ended December 31, 2022 and 0.15% for the quarter ended September 30, 2022.



10
Regions Financial Corporation and Subsidiaries                                
Financial Supplement (unaudited) to Fourth Quarter 2022 Earnings Release
Consolidated Average Daily Balances and Yield/Rate Analysis (continued)
 Quarter Ended
 6/30/20223/31/202212/31/2021
($ amounts in millions; yields on taxable-equivalent basis)Average BalanceIncome/ Expense
Yield/ Rate (1)
Average BalanceIncome/ Expense
Yield/ Rate (1)
Average BalanceIncome/ Expense
Yield/ Rate (1)
Assets
Earning assets:
Federal funds sold and securities purchased under agreements to resell$— $— — %$2 $— 0.18 %$1 $— 0.18 %
Debt securities (2)
31,429 157 2.00 29,342 138 1.88 29,264 134 1.83 
Loans held for sale704 10 5.39 782 9 4.89 855 6 2.98 
Loans, net of unearned income:
Commercial and industrial (3)
46,538 480 4.12 43,993 447 4.10 42,254 468 4.39 
Commercial real estate mortgage—owner-occupied (4)
5,204 56 4.31 5,237 57 4.35 5,386 60 4.34 
Commercial real estate construction—owner-occupied273 2 3.85 269 3 3.91 263 3 3.95 
Commercial investor real estate mortgage5,760 39 2.69 5,514 30 2.19 5,531 30 2.13 
Commercial investor real estate construction1,668 14 3.34 1,568 11 2.83 1,654 11 2.72 
Residential first mortgage17,569 137 3.12 17,496 135 3.09 17,413 136 3.12 
Home equity6,082 56 3.76 6,163 55 3.55 6,334 55 3.51 
Consumer credit card1,145 36 12.38 1,142 35 12.48 1,155 35 12.16 
Other consumer—exit portfolios836 13 5.93 987 14 5.84 1,160 18 5.71 
Other consumer5,689 110 7.73 5,445 100 7.42 5,398 96 7.13 
Total loans, net of unearned income 90,764 943 4.15 87,814 887 4.07 86,548 912 4.18 
Interest bearing deposits in other banks22,246 45 0.81 26,606 13 0.20 26,121 10 0.15 
Other earning assets1,445 11 2.79 1,306 16 5.02 1,276 4 1.41 
Total earning assets
146,588 1,166 3.18 145,852 1,063 2.93 144,065 1,066 2.94 
Unrealized gains/(losses) on debt securities available for sale, net (2)
(2,107)(549)331 
Allowance for loan losses(1,419)(1,472)(1,572)
Cash and due from banks2,386 2,200 2,143 
Other non-earning assets16,378 15,697 15,084 
$161,826 $161,728 $160,051 
Liabilities and Shareholders’ Equity
Interest-bearing liabilities:
Savings $16,200 5 0.12 $15,539 5 0.13 $14,854 5 0.12 
Interest-bearing checking27,533 6 0.09 27,771 2 0.03 26,000 2 0.03 
Money market 31,348 4 0.05 31,402 2 0.02 31,483 1 0.02 
Time deposits5,600 5 0.34 5,905 4 0.30 6,505 5 0.36 
Total interest-bearing deposits (5)
80,681 20 0.10 80,617 13 0.07 78,842 13 0.07 
Federal funds purchased and securities sold under agreements to repurchase— — — — — — 44 — 0.19 
Other short-term borrowings7 — 1.01 9 — 0.16 — — — 
Long-term borrowings2,328 27 4.53 2,390 24 4.06 2,433 24 3.93 
Total interest-bearing liabilities 83,016 47 0.22 83,016 37 0.18 81,319 37 0.18 
Non-interest-bearing deposits (5)
58,911 — — 58,117 — — 57,840 — — 
Total funding sources141,927 47 0.13 141,133 37 0.11 139,159 37 0.11 
Net interest spread (2)
2.95 2.75 2.76 
Other liabilities3,495 2,878 2,566 
Shareholders’ equity16,404 17,717 18,308 
Noncontrolling interest— — 18 
$161,826 $161,728 $160,051 
Net interest income/margin FTE basis (2)
$1,119 3.06 %$1,026 2.85 %$1,029 2.83 %
_______
(1) Amounts have been calculated using whole dollar values.
(2) Debt securities are included on an amortized cost basis with yield and net interest margin calculated accordingly.
(3) Interest income includes hedging income of $69 million, $98 million, and $100 million for the quarters ended June 30, 2022 , March 31, 2022, and December 31, 2021, respectively.
(4) Interest income includes hedging income of $9 million, $12 million, and $12 million for the quarters ended June 30, 2022, March 31, 2022, and December 31, 2021, respectively.
(5) 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 0.06% for the quarter ended June 30, 2022, 0.04% for the quarter ended March 31, 2022 and 0.04% for the quarter ended December 31, 2021.




11
Regions Financial Corporation and Subsidiaries                                
Financial Supplement (unaudited) to Fourth Quarter 2022 Earnings Release
Consolidated Average Daily Balances and Yield/Rate Analysis (continued)
 Twelve Months Ended December 31
 20222021
($ amounts in millions; yields on taxable-equivalent basis)Average BalanceIncome/ Expense
Yield/ Rate (1)
Average BalanceIncome/ Expense
Yield/ Rate (1)
Assets
Earning assets:
Federal funds sold and securities purchased under agreements to resell$— $— — %$3 $— 0.14 %
Debt securities (2)(3)
31,281 688 2.20 28,604 533 1.86 
Loans held for sale640 36 5.63 1,219 37 3.06 
Loans, net of unearned income:
Commercial and industrial (4)
47,468 2,123 4.45 42,522 1,858 4.35 
Commercial real estate mortgage—owner-occupied (5)
5,170 224 4.28 5,389 240 4.40 
Commercial real estate construction—owner-occupied276 12 4.33 272 11 4.00 
Commercial investor real estate mortgage5,952 222 3.67 5,509 122 2.18 
Commercial investor real estate construction1,722 77 4.40 1,741 48 2.73 
Residential first mortgage17,950 574 3.20 17,006 539 3.17 
Home equity6,078 260 4.27 6,677 235 3.53 
Consumer credit card1,168 155 13.27 1,136 138 12.17 
Other consumer—exit portfolios787 46 5.88 1,499 85 5.65 
Other consumer5,711 442 7.75 3,051 220 7.19 
Total loans, net of unearned income92,282 4,135 4.46 84,802 3,496 4.11 
Interest bearing deposits in other banks18,396 239 1.30 22,810 30 0.13 
Other earning assets 1,379 51 3.69 1,289 29 2.23 
Total earning assets143,978 5,149 3.56 138,727 4,125 2.97 
Unrealized gains/(losses) on debt securities available for sale, net (2)
(2,166)623 
Allowance for loan losses(1,442)(1,795)
Cash and due from banks2,321 2,027 
Other non-earning assets16,701 14,687 
$159,392 $154,269 
Liabilities and Shareholders’ Equity
Interest-bearing liabilities:
Savings $15,940 19 0.12 $13,867 19 0.13 
Interest-bearing checking26,830 72 0.27 25,128 8 0.03 
Money market 31,875 80 0.25 30,615 8 0.03 
Time deposits5,578 26 0.47 5,253 29 0.56 
Other deposits1 — 3.52 2 — 1.20 
Total interest-bearing deposits (6)
80,224 197 0.25 74,865 64 0.09 
Federal funds purchased and securities sold under agreements to repurchase10 — 3.73 12 — 0.19 
Long-term borrowings2,328 119 5.08 2,823 103 3.63 
Total interest-bearing liabilities82,562 316 0.38 77,700 167 0.21 
Non-interest-bearing deposits (6)
56,469 — — 55,838 — — 
Total funding sources139,031 316 0.23 133,538 167 0.12 
Net interest spread (2)
3.18 2.75 
Other liabilities3,858 2,525 
Shareholders’ equity16,503 18,201 
Noncontrolling interest— 5 
$159,392 $154,269 
Net interest income/margin FTE basis (2)
$4,833 3.36 %$3,958 2.85 %
_______
(1) Amounts have been calculated using whole dollar values.
(2) Debt securities are included on an amortized cost basis with yield and net interest margin calculated accordingly.
(3)    Interest income includes hedging income $41 million for the year ended December 31, 2022 and zero for the year ended December 31, 2021. Hedging income for the year ended December 31, 2022 reflects strategies designed to accelerate hedge notional maturities through the use of pay fixed swaps. Benefits will migrate to cash flow hedges from loans in the first quarter of 2023.
(4) Interest income includes hedging income of $125 million and and $379 million for the years ended December 31, 2022 and 2021, respectively.
(5) Interest income includes hedging income of $15 million and and $47 million for the years ended December 31, 2022 and 2021, respectively.
(6) 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% and 0.05% for the years ended December 31, 2022 and 2021, respectively.

12
Regions Financial Corporation and Subsidiaries                                
Financial Supplement (unaudited) to Fourth Quarter 2022 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.
 Quarter Ended
($ amounts in millions)12/31/20229/30/20226/30/20223/31/202212/31/20214Q22 vs. 3Q224Q22 vs. 4Q21
Net income available to common shareholders (GAAP)$660 $404 $558 $524 $414 $256 63.4 %$246 59.4 %
Preferred dividends (GAAP)25 25 25 24 24 — — %1 4.2 %
Income tax expense (GAAP)187 133 157 154 103 54 40.6 %84 81.6 %
Income before income taxes (GAAP)872 562 740 702 541 310 55.2 %331 61.2 %
Provision for (benefit from) credit losses (GAAP)112 135 60 (36)110 (23)(17.0)%2 1.8 %
Pre-tax pre-provision income (non-GAAP)984 697 800 666 651 287 41.2 %333 51.2 %
Other adjustments:
Securities (gains) losses, net— 1 — — — (1)(100.0)%— NM
Leveraged lease termination gains, net— — — (1)— — NM— NM
Insurance proceeds (1)
(50)— — — — (50)NM(50)NM
Salaries and employee benefits—severance charges— — — — 1 — NM(1)(100.0)%
Branch consolidation, property and equipment charges5 3 (6)1 — 2 66.7 %5 NM
Professional, legal and regulatory expenses (1)
— 179 — — 15 (179)(100.0)%(15)(100.0)%
Total other adjustments(45)183 (6)— 16 (228)(124.6)%(61)(381.3)%
Adjusted pre-tax pre-provision income (non-GAAP)$939 $880 $794 $666 $667 $59 6.7 %$272 40.8 %
Year Ended
($ amounts in millions)202220212022 vs. 2021
Net income available to common shareholders (GAAP)$2,146 $2,400 $(254)(10.6)%
Preferred dividends (GAAP) (2)
99 121 (22)(18.2)%
Income tax expense (GAAP)631 694 (63)(9.1)%
Income before income taxes (GAAP)2,876 3,215 (339)(10.5)%
Provision for (benefit from) credit losses (GAAP)271 (524)795 151.7 %
Pre-tax pre-provision income (non-GAAP)3,147 2,691 456 16.9 %
Other adjustments:
Securities (gains) losses, net1 (3)4 133.3 %
Gains on equity investment— (3)3 100.0 %
Leveraged lease termination gains, net(1)(2)1 50.0 %
Bank owned life insurance (3)
— (18)18 100.0 %
Insurance proceeds (1)
(50)— (50)NM
Salaries and employee benefits—severance charges— 6 (6)(100.0)%
Branch consolidation, property and equipment charges3 5 (2)(40.0)%
Contribution to the Regions Financial Corporation foundation— 3 (3)(100.0)%
Loss on early extinguishment of debt— 20 (20)(100.0)%
Professional, legal and regulatory expenses (1)
179 15 164 NM
Total other adjustments132 23 109 473.9 %
Adjusted pre-tax pre-provision income (non-GAAP)$3,279 $2,714 $565 20.8 %
______
NM - Not meaningful
(1) In the third quarter of 2022, the Company settled a previously disclosed matter with the Consumer Financial Protection Bureau. The Company received an insurance reimbursement related to the settlement in the fourth quarter of 2022. The professional, legal and regulatory adjustment for the fourth quarter of 2021 is related to professional and legal expenses for acquisitions.
(2) Year-to-date 2021 amounts include $13 million of Series A preferred stock issuance costs, which reduced net income available to common shareholders when the shares were redeemed during the second quarter of 2021.
(3) The 2021 amount relates to an individual BOLI claim benefit.





13
Regions Financial Corporation and Subsidiaries                                
Financial Supplement (unaudited) to Fourth Quarter 2022 Earnings Release
Non-Interest Income
 Quarter Ended
($ amounts in millions)12/31/20229/30/20226/30/20223/31/202212/31/20214Q22 vs. 3Q224Q22 vs. 4Q21
Service charges on deposit accounts152 156 165 168 166 $(4)(2.6)%$(14)(8.4)%
Card and ATM fees130 126 133 124 127 4 3.2 %3 2.4 %
Wealth management income108 108 102 101 100 — — %8 8.0 %
Capital markets income (1)
61 93 112 73 83 (32)(34.4)%(22)(26.5)%
Mortgage income (2)
24 37 47 48 49 (13)(35.1)%(25)(51.0)%
Commercial credit fee income 25 26 23 22 23 (1)(3.8)%2 8.7 %
Bank-owned life insurance17 15 16 14 14 2 13.3 %3 21.4 %
Market value adjustments on employee benefit assets-other (3)
(9)(5)(17)(14)— (4)(80.0)%(9)NM
Securities gains (losses), net— (1)— — — 1 100.0 %— NM
Insurance proceeds (4)
50 — — — — 50 NM50 NM
Other miscellaneous income42 50 59 48 53 (8)(16.0)%(11)(20.8)%
Total non-interest income$600 $605 $640 $584 $615 $(5)(0.8)%$(15)(2.4)%
Mortgage Income
Quarter Ended
($ amounts in millions)12/31/20229/30/20226/30/20223/31/202212/31/20214Q22 vs. 3Q224Q22 vs. 4Q21
Production and sales$11 $18 $23 $43 $46 $(7)(38.9)%$(35)(76.1)%
Loan servicing42 40 28 27 27 2 5.0 %15 55.6 %
MSR and related hedge impact:
MSRs fair value increase (decrease) due to change in valuation inputs or assumptions— 28 52 47 (6)(28)(100.0)%6 100.0 %
MSRs hedge gain (loss)(6)(26)(41)(52)1 20 76.9 %(7)NM
MSRs change due to payment decay(23)(23)(15)(17)(19)— — %(4)(21.1)%
MSR and related hedge impact(29)(21)(4)(22)(24)(8)(38.1)%(5)(20.8)%
Total mortgage income$24 $37 $47 $48 $49 $(13)(35.1)%$(25)(51.0)%
Mortgage production - portfolio$712 $997 $1,277 $1,021 $1,273 $(285)(28.6)%$(561)(44.1)%
Mortgage production - agency/secondary market314 526 680 819 1,133 (212)(40.3)%(819)(72.3)%
Total mortgage production$1,026 $1,523 $1,957 $1,840 $2,406 $(497)(32.6)%$(1,380)(57.4)%
Mortgage production - purchased87.9 %88.1 %82.9 %65.7 %58.6 %
Mortgage production - refinanced12.1 %11.9 %17.1 %34.3 %41.4 %
 
Wealth Management Income
Quarter Ended
($ amounts in millions)12/31/20229/30/20226/30/20223/31/202212/31/20214Q22 vs. 3Q224Q22 vs. 4Q21
Investment management and trust fee income$76 $74 $72 $75 $74 $2 2.7 %$2 2.7 %
Investment services fee income32 34 30 26 26 (2)(5.9)%6 23.1 %
Total wealth management income (5)
$108 $108 $102 $101 $100 $— — %$8 8.0 %
Capital Markets Income
Quarter Ended
($ amounts in millions)12/31/20229/30/20226/30/20223/31/202212/31/20214Q22 vs. 3Q224Q22 vs. 4Q21
Capital markets income$61 $93 $112 $73 $83 $(32)(34.4)%$(22)(26.5)%
Less: Valuation adjustments on customer derivatives (6)
(11)21 20 6 — (32)(152.4)%(11)NM
Capital markets income excluding valuation adjustments $72 $72 $92 $67 $83 $— — %$(11)(13.3)%
_________
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)Mortgage income in the first quarter of 2022 includes approximately $12 million in gains associated with the re-securitization and sale of approximately $285 million of Ginnie Mae loans that had been previously repurchased from their pools.
(3)These market value adjustments relate to assets held for employee and director benefits that are offset within salaries and employee benefits expense and other non-interest expense.
(4)In the third quarter of 2022, the Company settled a previously disclosed matter with the Consumer Financial Protection Bureau. The Company received an insurance reimbursement related to the settlement in the fourth quarter of 2022.
(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.

14
Regions Financial Corporation and Subsidiaries                                
Financial Supplement (unaudited) to Fourth Quarter 2022 Earnings Release
Non-Interest Income
 Twelve Months EndedYear-to-Date Change 12/31/2022 vs. 12/31/2021
($ amounts in millions)12/31/202212/31/2021AmountPercent
Service charges on deposit accounts$641 $648 $(7)(1.1)%
Card and ATM fees513 499 14 2.8 %
Wealth management income419 382 37 9.7 %
Capital markets income (1)
339 331 8 2.4 %
Mortgage income156 242 (86)(35.5)%
Commercial credit fee income 96 91 5 5.5 %
Bank-owned life insurance62 82 (20)(24.4)%
Market value adjustments on employee benefit assets - other (2)
(45)20 (65)(325.0)%
Gain on equity investment— 3 (3)(100.0)%
Securities gains (losses), net(1)3 (4)(133.3)%
Insurance proceeds (3)
50 — 50 NM
Other miscellaneous income199 223 (24)(10.8)%
Total non-interest income$2,429 $2,524 $(95)(3.8)%
Mortgage Income
Twelve Months EndedYear-to-Date Change 12/31/2022 vs. 12/31/2021
($ amounts in millions)12/31/202212/31/2021AmountPercent
Production and sales$95 $229 $(134)(58.5)%
Loan servicing137 102 35 34.3 %
MSR and related hedge impact:
MSRs fair value increase (decrease) due to change in valuation inputs or assumptions127 43 84 195.3 %
MSRs hedge gain (loss)(125)(62)(63)(101.6)%
MSRs change due to payment decay(78)(70)(8)(11.4)%
MSR and related hedge impact(76)(89)13 14.6 %
Total mortgage income$156 $242 $(86)(35.5)%
Mortgage production - portfolio$4,007 $6,037 $(2,030)(33.6)%
Mortgage production - agency/secondary market2,339 4,970 (2,631)(52.9)%
Total mortgage production $6,346 $11,007 $(4,661)(42.3)%
Mortgage production - purchased80.0 %58.4 %
Mortgage production - refinanced20.0 %41.6 %
Wealth Management Income
Twelve Months EndedYear-to-Date Change 12/31/2022 vs. 12/31/2021
($ amounts in millions)12/31/202212/31/2021AmountPercent
Investment management and trust fee income$297 $278 $19 6.8 %
Investment services fee income122 104 18 17.3 %
Total wealth management income (4)
$419 $382 $37 9.7 %
Capital Markets Income
Twelve Months EndedYear-to-Date Change 12/31/2022 vs. 12/31/2021
($ amounts in millions)12/31/202212/31/2021AmountPercent
Capital markets income$339 $331 $8 2.4 %
Less: Valuation adjustments on customer derivatives (5)
36 8 28 350.0 %
Capital markets income excluding valuation adjustments $303 $323 $(20)(6.2)%
_________
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 and director benefits that are offset within salaries and employee benefits expense and other non-interest expense.
(3)In the third quarter of 2022, the Company settled a previously disclosed matter with the Consumer Financial Protection Bureau. The Company received an insurance reimbursement related to the settlement in the fourth quarter of 2022.
(4)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.
(5)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.

15
Regions Financial Corporation and Subsidiaries                                
Financial Supplement (unaudited) to Fourth Quarter 2022 Earnings Release
Non-Interest Expense
Quarter Ended
($ amounts in millions)12/31/20229/30/20226/30/20223/31/202212/31/20214Q22 vs. 3Q224Q22 vs. 4Q21
Salaries and employee benefits$604 $593 $575 $546 $575 $11 1.9 %$29 5.0 %
Equipment and software expense102 98 97 95 96 4 4.1 %6 6.3 %
Net occupancy expense74 76 75 75 76 (2)(2.6)%(2)(2.6)%
Outside services41 40 38 38 41 1 2.5 %— — %
Marketing27 29 22 24 32 (2)(6.9)%(5)(15.6)%
Professional, legal and regulatory expenses 23 199 24 17 33 (176)(88.4)%(10)(30.3)%
Credit/checkcard expenses14 13 13 26 15 1 7.7 %(1)(6.7)%
FDIC insurance assessments18 16 13 14 13 2 12.5 %5 38.5 %
Visa class B shares expense7 3 9 5 8 4 133.3 %(1)(12.5)%
Branch consolidation, property and equipment charges 5 3 (6)1 — 2 66.7 %5 NM
Other miscellaneous expenses102 100 88 92 94 2 2.0 %8 8.5 %
Total non-interest expense$1,017 $1,170 $948 $933 $983 $(153)(13.1)%$34 3.5 %

Twelve Months EndedYear-to-Date Change 12/31/2022 vs. 12/31/2021
($ amounts in millions)12/31/202212/31/2021AmountPercent
Salaries and employee benefits $2,318 $2,205 $113 5.1 %
Equipment and software expense392 365 27 7.4 %
Net occupancy expense300 303 (3)(1.0)%
Outside services157 156 1 0.6 %
Marketing102 106 (4)(3.8)%
Professional, legal and regulatory expenses 263 98 165 168.4 %
Credit/checkcard expenses66 62 4 6.5 %
FDIC insurance assessments61 45 16 35.6 %
Visa class B shares expense24 22 2 9.1 %
Loss on early extinguishment of debt— 20 (20)(100.0)%
Branch consolidation, property and equipment charges 3 5 (2)(40.0)%
Other miscellaneous expenses382 360 22 6.1 %
Total non-interest expense$4,068 $3,747 $321 8.6 %
_________
NM - Not Meaningful




16
Regions Financial Corporation and Subsidiaries                                
Financial Supplement (unaudited) to Fourth Quarter 2022 Earnings Release
Reconciliation of GAAP Financial Measures to non-GAAP Financial Measures
Adjusted Efficiency Ratios, Adjusted Fee Income Ratios, Adjusted Non-Interest Income/Expense, Adjusted Operating Leverage Ratios, and Adjusted Total Revenue
The table below presents 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 adjusted 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 adjusted 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 adjusted fee income and adjusted efficiency ratios. Also presented is a computation of the adjusted 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).
 Quarter Ended
($ amounts in millions) 12/31/20229/30/20226/30/20223/31/202212/31/20214Q22 vs. 3Q224Q22 vs. 4Q21
Non-interest expense (GAAP)A$1,017 $1,170 $948 $933 $983 $(153)(13.1)%$34 3.5 %
Adjustments:
Branch consolidation, property and equipment charges(5)(3)6 (1)— (2)(66.7)%(5)NM
Salaries and employee benefits—severance charges— — — — (1)— NM1 100.0 %
Professional, legal and regulatory expenses (1)
— (179)— — (15)179 100.0 %15 100.0 %
Adjusted non-interest expense (non-GAAP)B$1,012 $988 $954 $932 $967 $24 2.4 %$45 4.7 %
Net interest income (GAAP)C$1,401 $1,262 $1,108 $1,015 $1,019 $139 11.0 %$382 37.5 %
Taxable-equivalent adjustment13 12 11 11 10 1 8.3 %3 30.0 %
Net interest income, taxable-equivalent basisD$1,414 $1,274 $1,119 $1,026 $1,029 $140 11.0 %$385 37.4 %
Non-interest income (GAAP)E600 605 640 584 615 (5)(0.8)%(15)(2.4)%
Adjustments:
Securities (gains) losses, net— 1 — — — (1)(100.0)%— NM
Leveraged lease termination gains— — — (1)— — NM— NM
Insurance proceeds (1)
$(50)$— $— $— $— (50)NM(50)NM
Adjusted non-interest income (non-GAAP)F$550 $606 $640 $583 $615 (56)(9.2)%$(65)(10.6)%
Total revenueC+E=G$2,001 $1,867 $1,748 $1,599 $1,634 $134 7.2 %$367 22.5 %
Adjusted total revenue (non-GAAP)C+F=H$1,951 $1,868 $1,748 $1,598 $1,634 $83 4.4 %$317 19.4 %
Total revenue, taxable-equivalent basisD+E=I$2,014 $1,879 $1,759 $1,610 $1,644 $135 7.2 %$370 22.5 %
Adjusted total revenue, taxable-equivalent basis (non-GAAP)D+F=J$1,964 $1,880 $1,759 $1,609 $1,644 $84 4.5 %$320 19.5 %
Efficiency ratio (GAAP) (2)
A/I50.5 %62.3 %53.9 %57.9 %59.8 %
Adjusted efficiency ratio (non-GAAP) (2)
B/J51.6 %52.6 %54.2 %57.9 %58.8 %
Fee income ratio (GAAP) (2)
E/I29.8 %32.2 %36.4 %36.3 %37.4 %
Adjusted fee income ratio (non-GAAP) (2)
F/J28.0 %32.2 %36.4 %36.2 %37.4 %
________
NM - Not Meaningful
(1)In the third quarter of 2022, the Company settled a previously disclosed matter with the Consumer Financial Protection Bureau. The Company received an insurance reimbursement related to the settlement in the fourth quarter of 2022. The professional, legal and regulatory adjustment for the fourth quarter of 2021 is related to professional and legal expenses for acquisitions.
(2)Amounts have been calculated using whole dollar values.







17
Regions Financial Corporation and Subsidiaries                                
Financial Supplement (unaudited) to Fourth Quarter 2022 Earnings Release
Reconciliation of GAAP Financial Measures to non-GAAP Financial Measures
Adjusted Efficiency Ratios, Adjusted Fee Income Ratios, Adjusted Non-Interest Income/Expense, Adjusted Operating Leverage Ratios, and Adjusted Total Revenue (continued)
Twelve Months Ended December 31
($ amounts in millions)202220212022 vs. 2021
Non-interest expense (GAAP)A$4,068 $3,747 $321 8.6 %
Adjustments:
Contribution to the Regions Financial Corporation foundation — (3)3 100.0 %
Branch consolidation, property and equipment charges(3)(5)2 40.0 %
Salaries and employee benefits—severance charges— (6)6 100.0 %
Loss on early extinguishment of debt— (20)20 100.0 %
Professional, legal and regulatory expenses (1)
(179)(15)(164)NM
Adjusted non-interest expense (non-GAAP)B$3,886 $3,698 $188 5.1 %
Net interest income (GAAP) C$4,786 $3,914 $872 22.3 %
Taxable-equivalent adjustment47 44 3 6.8 %
Net interest income, taxable-equivalent basisD$4,833 $3,958 $875 22.1 %
Non-interest income (GAAP)E$2,429 $2,524 $(95)(3.8)%
Adjustments:
Securities (gains) losses, net1 (3)4 133.3 %
Gains on equity investment— (3)3 100.0 %
Leveraged lease termination gains(1)(2)1 50.0 %
Bank owned life insurance (2)
— (18)18 100.0 %
Insurance proceeds (1)
(50)— (50)NM
Adjusted non-interest income (non-GAAP)F$2,379 $2,498 $(119)(4.8)%
Total revenueC+E= G$7,215 $6,438 $777 12.1 %
Adjusted total revenue (non-GAAP)C+F=H$7,165 $6,412 $753 11.7 %
Total revenue, taxable-equivalent basisD+E=I$7,262 $6,482 $780 12.0 %
Adjusted total revenue, taxable-equivalent basis (non-GAAP)D+F=J$7,212 $6,456 $756 11.7 %
Operating leverage ratio (GAAP) (3)
I-A3.5 %
Adjusted operating leverage ratio (non-GAAP) (3)
H-B6.6 %
Efficiency ratio (GAAP) (3)
A/I56.0 %57.8 %
Adjusted efficiency ratio (non-GAAP) (3)
B/J53.9 %57.3 %
Fee income ratio (GAAP) (3)
E/I33.5 %38.9 %
Adjusted fee income ratio (non-GAAP) (3)
F/J33.0 %38.7 %
______
NM - Not Meaningful
(1)In the third quarter of 2022, the Company settled a previously disclosed matter with the Consumer Financial Protection Bureau. The Company received an insurance reimbursement related to the settlement in the fourth quarter of 2022. The professional, legal and regulatory adjustment for 2021 is related to professional and legal expenses for acquisitions.
(2)During the second quarter of 2021, the Company recognized an individual BOLI claim benefit.
(3)Amounts have been calculated using whole dollar values.






18
Regions Financial Corporation and Subsidiaries                                
Financial Supplement (unaudited) to Fourth Quarter 2022 Earnings Release
Reconciliation of GAAP Financial Measures to non-GAAP Financial Measures

Return Ratios

The table below provides a calculation of “return on average tangible common shareholders’ equity” (non-GAAP). 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. In calculating return on average tangible common shareholders' equity Regions makes adjustments to shareholders' equity including average intangible assets and related deferred taxes, average preferred stock and average accumulated other comprehensive income (AOCI). 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)12/31/20229/30/20226/30/20223/31/202212/31/2021
RETURN ON AVERAGE TANGIBLE COMMON SHAREHOLDERS' EQUITY
Net income available to common shareholders (GAAP)A$660 $404 $558 $524 $414 
Average shareholders' equity (GAAP)$15,442 $16,473 $16,404 $17,717 $18,308 
Less:
Average intangible assets (GAAP)5,996 6,019 6,034 6,043 5,852 
Average deferred tax liability related to intangibles (GAAP) (105)(104)(101)(100)(98)
Average preferred stock (GAAP)1,659 1,659 1,659 1,659 1,660 
Average tangible common shareholders' equity (non-GAAP)B$7,892 $8,899 $8,812 $10,115 $10,894 
Less: Average AOCI, after tax(3,535)(2,213)(1,921)(379)340 
Average tangible common shareholders' equity excluding AOCI (non-GAAP)C$11,427 $11,112 $10,733 $10,494 $10,554 
Return on average tangible common shareholders' equity (non-GAAP) (1)
A/B33.20 %18.02 %25.40 %21.00 %15.07 %
Return on average tangible common shareholders' equity excluding AOCI (non-GAAP) (1)
A/C22.91 %14.42 %20.85 %20.25 %15.56 %
Year Ended
($ amounts in millions)20222021
RETURN ON AVERAGE TANGIBLE COMMON SHAREHOLDERS' EQUITY
Net income available to common shareholders (GAAP)D$2,146 $2,400 
Average shareholders' equity (GAAP)$16,503 $18,201 
Less:
Average intangible assets (GAAP)6,023 5,435 
Average deferred tax liability related to intangibles (GAAP) (103)(99)
Average preferred stock (GAAP)1,659 1,658 
Average tangible common shareholders' equity (non-GAAP)E$8,924 $11,207 
Less: Average AOCI, after tax(2,021)705 
Average tangible common shareholders' equity excluding AOCI (non-GAAP)F$10,945 $10,502 
Return on average tangible common shareholders' equity (non-GAAP) (1)
D/E24.05 %21.42 %
Return on average tangible common shareholders' equity excluding AOCI (non-GAAP) (1)
D/F19.61 %22.85 %
____
*Annualized
(1)Amounts have been calculated using whole dollar values.

19
Regions Financial Corporation and Subsidiaries                                
Financial Supplement (unaudited) to Fourth Quarter 2022 Earnings Release
Tangible Common Ratios
The following table provides a reconciliation of shareholders’ equity (GAAP) to tangible common shareholders’ equity (non-GAAP) and the calculations of the end of period “tangible common shareholders’ equity to tangible assets” and "tangible common book value per share" ratios (non-GAAP). 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.
As of and for Quarter Ended
($ amounts in millions, except per share data)12/31/20229/30/20226/30/20223/31/202212/31/2021
TANGIBLE COMMON RATIOS
Shareholders’ equity (GAAP)A$15,947 $15,173 $16,507 $16,982 $18,326 
Less:
Preferred stock (GAAP)1,659 1,659 1,659 1,659 1,659 
Intangible assets (GAAP)5,982 6,005 6,028 6,040 6,049 
Deferred tax liability related to intangibles (GAAP)(103)(105)(104)(101)(100)
Tangible common shareholders’ equity (non-GAAP)B$8,409 $7,614 $8,924 $9,384 $10,718 
Total assets (GAAP)C$155,220 $157,798 $160,908 $164,082 $162,938 
Less:
Intangible assets (GAAP)5,982 6,005 6,028 6,040 6,049 
Deferred tax liability related to intangibles (GAAP)(103)(105)(104)(101)(100)
Tangible assets (non-GAAP)D$149,341 $151,898 $154,984 $158,143 $156,989 
Shares outstanding—end of quarterE934 934 934 933 942 
Total equity to total assets (GAAP) (1)
A/C10.27 %9.62 %10.26 %10.35 %11.25 %
Tangible common shareholders’ equity to tangible assets (non-GAAP) (1)
B/D5.63 %5.01 %5.76 %5.93 %6.83 %
Tangible common book value per share (non-GAAP) (1)
B/E$9.00 $8.15 $9.55 $10.06 $11.38 
____
(1)Amounts have been calculated using whole dollar values.

20
Regions Financial Corporation and Subsidiaries                                
Financial Supplement (unaudited) to Fourth Quarter 2022 Earnings Release
Credit Quality
As of and for Quarter Ended
($ amounts in millions)12/31/20229/30/20226/30/20223/31/202212/31/2021
Components:
Beginning allowance for loan losses (ALL)$1,418 $1,425 $1,416 $1,479 $1,428 
Loans charged-off:
Commercial and industrial38 20 21 23 23 
Commercial real estate mortgage—owner-occupied1 — 1 3 — 
Total commercial39 20 22 26 23 
Commercial investor real estate mortgage5 — — — 1 
Total investor real estate5 — — — 1 
Residential first mortgage— 1 — — 1 
Home equity—lines of credit1 2 1 1 1 
Home equity—closed-end— — — 1 — 
Consumer credit card11 9 10 10 10 
Other consumer—exit portfolios4 4 4 6 6 
Other consumer (1)
33 99 33 33 30 
Total consumer49 115 48 51 48 
Total93 135 70 77 72 
Recoveries of loans previously charged-off:
Commercial and industrial10 12 12 13 12 
Commercial real estate mortgage—owner-occupied1 1 1 — — 
Total commercial11 13 13 13 12 
Commercial investor real estate mortgage1 — 1 — — 
Total investor real estate1 — 1 — — 
Residential first mortgage1 1 1 2 2 
Home equity—lines of credit3 2 4 3 3 
Home equity—closed-end— — 1 1 1 
Consumer credit card2 2 2 2 3 
Other consumer—exit portfolios1 — 2 2 — 
Other consumer5 7 8 8 7 
Total consumer12 12 18 18 16 
Total24 25 32 31 28 
Net charge-offs (recoveries):
Commercial and industrial28 8 9 10 11 
Commercial real estate mortgage—owner-occupied— (1)— 3 — 
Total commercial28 7 9 13 11 
Commercial investor real estate mortgage4 — (1)— 1 
Total investor real estate4 — (1)— 1 
Residential first mortgage(1)— (1)(2)(1)
Home equity—lines of credit(2)— (3)(2)(2)
Home equity—closed-end— — (1)— (1)
Consumer credit card9 7 8 8 7 
Other consumer—exit portfolios3 4 2 4 6 
Other consumer28 92 25 25 23 
Total consumer37 103 30 33 32 
Total69 110 38 46 44 
Provision for (benefit from) loan losses (1)
115 103 47 (17)86 
Initial allowance on acquired purchased credit deteriorated loans— — — — 9 
Ending allowance for loan losses (ALL)1,464 1,418 1,425 1,416 1,479 
Beginning reserve for unfunded credit commitments121 89 76 95 71 
Provision for (benefit from) unfunded credit losses(3)32 13 (19)24 
Ending reserve for unfunded commitments118 121 89 76 95 
Allowance for credit losses (ACL) at period end$1,582 $1,539 $1,514 $1,492 $1,574 

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Regions Financial Corporation and Subsidiaries                                
Financial Supplement (unaudited) to Fourth Quarter 2022 Earnings Release
Credit Quality (continued)
As of and for Quarter Ended
($ amounts in millions)12/31/20229/30/20226/30/20223/31/202212/31/2021
Net loan charge-offs as a % of average loans, annualized (2):
Commercial and industrial0.22 %0.07 %0.07 %0.09 %0.11 %
Commercial real estate mortgage—owner-occupied(0.02)%(0.06)%0.05 %0.20 %0.01 %
Commercial real estate construction—owner-occupied(0.02)%(0.08)%(0.01)%(0.03)%0.18 %
Total commercial0.19 %0.06 %0.07 %0.10 %0.10 %
Commercial investor real estate mortgage0.27 %(0.01)%(0.04)%(0.01)%0.01 %
Commercial investor real estate construction(0.01)%— %(0.01)%— %— %
Total investor real estate0.21 %(0.01)%(0.03)%(0.01)%0.01 %
Residential first mortgage(0.03)%(0.01)%(0.01)%(0.05)%(0.02)%
Home equity—lines of credit(0.22)%(0.08)%(0.31)%(0.17)%(0.22)%
Home equity—closed-end(0.02)%(0.09)%(0.04)%(0.07)%(0.16)%
Consumer credit card2.94 %2.39 %2.70 %2.83 %2.42 %
Other consumer—exit portfolios2.46 %2.13 %0.80 %1.83 %1.69 %
Other consumer (1)
2.08 %5.92 %1.72 %1.89 %1.69 %
Total consumer0.48 %1.25 %0.39 %0.44 %0.39 %
Total0.29 %0.46 %0.17 %0.21 %0.20 %
Non-performing loans, excluding loans held for sale$500 $495 $369 $335 $451 
Non-performing loans held for sale3 2 3 7 13 
Non-performing loans, including loans held for sale503 497 372 342 464 
Foreclosed properties13 14 11 9 10 
Non-performing assets (NPAs)$516 $511 $383 $351 $474 
Loans past due > 90 days (3)
$208 $105 $107 $125 $140 
Criticized loans—business (4)
$3,149 $2,771 $2,310 $2,539 $2,905 
Credit Ratios (2):
ACL/Loans, net1.63 %1.63 %1.62 %1.67 %1.79 %
ALL/Loans, net1.51 %1.50 %1.52 %1.59 %1.69 %
Allowance for credit losses to non-performing loans, excluding loans held for sale317 %311 %410 %446 %349 %
Allowance for loan losses to non-performing loans, excluding loans held for sale293 %287 %386 %423 %328 %
Non-performing loans, excluding loans held for sale/Loans, net0.52 %0.52 %0.39 %0.37 %0.51 %
NPAs (ex. 90+ past due)/Loans, foreclosed properties, and non-performing loans held for sale0.53 %0.54 %0.41 %0.39 %0.54 %
NPAs (inc. 90+ past due)/Loans, foreclosed properties, and non-performing loans held for sale (2)
0.75 %0.65 %0.52 %0.53 %0.70 %
(1)At the end of the third quarter of 2022, the Company sold certain unsecured consumer loans with an associated allowance of $94 million at the time of the sale. As shown in the table below, there was a $63 million fair value mark recorded through charge-offs, which resulted in a net provision benefit of $31 million associated with the sale.
(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 23 for amounts related to these loans.
(4)Business represents the combined total of commercial and investor real estate loans.

Allowance for Credit Losses
Year Ended December 31
($ amounts in millions)20222021
Balance at beginning of year$1,574 $2,293 
Net charge-offs263 204 
Provision for (benefit from) loan losses248 (493)
Provision for (benefit from) unfunded credit losses23 (31)
Initial allowance on acquired purchased credit deteriorated loans— 9 
Balance at end of year$1,582 $1,574 

Adjusted Net Charge-offs and Ratio (non-GAAP)

At the end of the third quarter of 2022, the Company made the strategic decision to sell certain unsecured consumer loans. These loans were marked down to fair value through charge-offs as shown below. Management believes that excluding the incremental increase to net charge-offs from the net charge-off ratio (GAAP) to arrive at an adjusted net charge-off ratio (non-GAAP) will assist investors in analyzing the Company's credit quality performance as well as provide a better basis from which to predict future performance.
For the Quarter EndedFor the Year Ended
($ amounts in millions)12/31/20229/30/20226/30/20223/31/202212/31/202120222021
Net loan charge-offs (GAAP)$69 $110 $38 $46 $44 $263 $204 
Less: charge-offs associated with the sale of unsecured consumer loans— 63 — — — 63 — 
Adjusted net loan charge-offs (non-GAAP)$69 $47 $38 $46 $44 $200 $204 
Adjusted net loan charge-offs as a % of average loans, annualized (non-GAAP) (1)
0.29 %0.19 %0.17 %0.21 %0.20 %0.22 %0.24 %
(1)Amounts have been calculated using whole dollar values.

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Regions Financial Corporation and Subsidiaries                                
Financial Supplement (unaudited) to Fourth Quarter 2022 Earnings Release
Non-Performing Loans (excludes loans held for sale)
 As of
($ amounts in millions, %'s calculated using whole dollar values)12/31/20229/30/20226/30/20223/31/202212/31/2021
Commercial and industrial$347 0.68 %$333 0.67 %$257 0.53 %$216 0.47 %$305 0.70 %
Commercial real estate mortgage—owner-occupied29 0.58 %29 0.57 %29 0.55 %32 0.61 %52 0.98 %
Commercial real estate construction—owner-occupied6 1.93 %6 2.22 %10 3.92 %10 3.75 %11 4.11 %
Total commercial382 0.68 %368 0.67 %296 0.55 %258 0.50 %368 0.75 %
Commercial investor real estate mortgage53 0.83 %59 0.93 %3 0.05 %2 0.04 %3 0.06 %
Total investor real estate53 0.63 %59 0.72 %3 0.04 %2 0.03 %3 0.05 %
Residential first mortgage31 0.16 %29 0.16 %27 0.15 %31 0.18 %33 0.19 %
Home equity—lines of credit28 0.79 %32 0.90 %36 1.00 %37 1.02 %40 1.08 %
Home equity—closed-end6 0.24 %7 0.28 %7 0.28 %7 0.28 %7 0.27 %
Total consumer65 0.20 %68 0.22 %70 0.22 %75 0.24 %80 0.25 %
Total non-performing loans$500 0.52 %$495 0.52 %$369 0.39 %$335 0.37 %$451 0.51 %

Early and Late Stage Delinquencies
Accruing 30-89 Days Past Due Loans
As of
($ amounts in millions, %'s calculated using whole dollar values)12/31/20229/30/20226/30/20223/31/202212/31/2021
Commercial and industrial $56 0.11 %$77 0.16 %$37 0.08 %$37 0.08 %$64 0.15 %
Commercial real estate mortgage—owner-occupied9 0.18 %5 0.09 %5 0.10 %6 0.11 %4 0.09 %
Commercial real estate construction—owner-occupied— — %— — %— — %1 0.46 %— 0.07 %
Total commercial65 0.12 %82 0.15 %42 0.08 %44 0.09 %68 0.14 %
Commercial investor real estate mortgage— — %1 — %— — %16 0.29 %— — %
Total investor real estate— — %1 — %— — %16 0.23 %— — %
Residential first mortgage—non-guaranteed (1)
86 0.47 %85 0.47 %71 0.41 %58 0.34 %64 0.38 %
Home equity—lines of credit30 0.85 %20 0.58 %16 0.45 %20 0.55 %21 0.57 %
Home equity—closed-end 11 0.44 %11 0.44 %11 0.43 %12 0.47 %11 0.44 %
Consumer credit card16 1.26 %17 1.39 %13 1.11 %13 1.12 %15 1.23 %
Other consumer—exit portfolios10 1.75 %10 1.49 %10 1.31 %11 1.21 %14 1.30 %
Other consumer67 1.18 %49 0.93 %48 0.81 %45 0.82 %46 0.85 %
Total consumer (1)
220 0.82 %192 0.73 %169 0.66 %159 0.64 %171 0.67 %
Total accruing 30-89 days past due loans (1)
$285 0.29 %$275 0.29 %$211 0.23 %$219 0.25 %$239 0.27 %
Accruing 90+ Days Past Due LoansAs of
($ amounts in millions, %'s calculated using whole dollar values)12/31/20229/30/20226/30/20223/31/202212/31/2021
Commercial and industrial$30 0.06 %$4 0.01 %$4 0.01 %$5 0.01 %$5 0.01 %
Commercial real estate mortgage—owner-occupied1 0.02 %— — %1 0.02 %1 0.01 %1 0.01 %
Total commercial31 0.05 %4 0.01 %5 0.01 %6 0.01 %6 0.01 %
Commercial investor real estate mortgage40 0.63 %— — %— — %— — %— — %
Total investor real estate40 0.48 %— — %— — %— — %— — %
Residential first mortgage—non-guaranteed (2)
47 0.26 %50 0.28 %50 0.29 %61 0.36 %74 0.44 %
Home equity—lines of credit15 0.44 %17 0.47 %16 0.46 %19 0.52 %21 0.56 %
Home equity—closed-end 8 0.33 %8 0.31 %9 0.36 %11 0.45 %12 0.49 %
Consumer credit card15 1.19 %13 1.12 %11 0.97 %12 1.11 %12 1.04 %
Other consumer—exit portfolios1 0.19 %1 0.20 %2 0.19 %2 0.19 %2 0.21 %
Other consumer17 0.29 %12 0.22 %14 0.23 %14 0.25 %13 0.23 %
Total consumer (2)
103 0.42 %101 0.40 %102 0.41 %119 0.50 %134 0.58 %
Total accruing 90+ days past due loans (2)
$174 0.18 %$105 0.11 %$107 0.11 %$125 0.14 %$140 0.16 %
Total delinquencies (1) (2)
$459 0.47 %$380 0.40 %$318 0.34 %$344 0.39 %$379 0.43 %
(1)Excludes loans that are 100% guaranteed by FHA and guaranteed loans sold to Ginnie Mae where Regions has the right but not the obligation to repurchase. Total 30-89 days past due guaranteed loans excluded were $46 million at 12/31/2022, $39 million at 9/30/2022, $42 million at 6/30/2022, $39 million at 3/31/2022, and $40 million at 12/31/2021.
(2)Excludes loans that are 100% guaranteed by FHA and all guaranteed loans sold to Ginnie Mae where Regions has the right but not the obligation to repurchase. Total 90 days or more past due guaranteed loans excluded were $34 million at 12/31/2022, $26 million at 9/30/2022, $28 million at 6/30/2022, $37 million at 3/31/2022, and $49 million at 12/31/2021.

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Regions Financial Corporation and Subsidiaries                                
Financial Supplement (unaudited) to Fourth Quarter 2022 Earnings Release
Forward-Looking Statements
This release may include forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. 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. Forward-looking statements 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. 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 interest rates and unemployment rates, inflation, 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 businesses and our financial results and conditions.
•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, operations, and financial results and conditions. The duration and severity of any pandemic, including the COVID-19 pandemic, could disrupt the global economy, 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.
•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 tax law, adverse changes in the economic environment, declining operations of the reporting unit or other factors.
•The effect of new tax legislation and/or interpretation of existing tax law, 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.
•Volatility and uncertainty related to inflation and the effects of inflation, which may lead to increased costs for businesses and consumers and potentially contribute to poor business and economic conditions generally.
•Changes in the speed of loan prepayments, loan origination and sale volumes, charge-offs, credit loss provisions or actual credit losses where our allowance for credit 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, including fintechs, 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, including those related to the offering of digital banking and financial services, 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, including as a result of the changes in U.S. presidential administration, control of the U.S. Congress, and changes in personnel at the bank 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, must not cause us to fall below minimum capital ratio requirements, with applicable buffers taken into account, and must comply with other requirements and restrictions 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 businesses.
•Our ability to execute on our strategic and operational plans, including our ability to fully realize the financial and nonfinancial benefits relating to our strategic initiatives.
•The risks and uncertainties related to our acquisition or divestiture of businesses and risks related to such acquisitions, including that the expected synergies, cost savings and other financial or other benefits may not be realized within expected timeframes, or might be less than projected; and difficulties in integrating acquired businesses.
•The success of our marketing efforts in attracting and retaining customers.
•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 businesses, 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.
•Our ability to identify and address operational risks associated with the introduction of or changes to products, services, or delivery platforms.

24
Regions Financial Corporation and Subsidiaries                                
Financial Supplement (unaudited) to Fourth Quarter 2022 Earnings Release
•Dependence on key suppliers or vendors to obtain equipment and other supplies for our businesses 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, civil unrest, 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 frequency 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, ransomware, “denial of service” attacks, “hacking” and identity theft, including account take-overs, a failure of which could disrupt our businesses 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 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, in particular Regions Bank, 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.
•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 anti-takeover laws and exclusive forum provision in our certificate of incorporation and bylaws.
•The effects of any damage to our reputation resulting from developments related to any of the items identified above.
•Other risks identified from time to time in reports that we file with the SEC.

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, 2021 and the “Risk Factors” of Regions’ Quarterly Reports on Form 10-Q for the subsequent quarters of 2022, as filed with the SEC.
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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