3rd Quarter 2014 Earnings o Conference Call October 21, 2014 - PowerPoint PPT Presentation

3rd Quarter 2014 Earnings o Conference Call October 21, 2014

Remaining prudent and disciplined • Growing customer base and 3Q14 Highlights deepening relationships Focused on • Net income available to banking • Meeting diverse range of common shareholders of fundamentals customer needs while $305 million and diluted appropriately managing risks EPS of $0.22 • Total revenue increased $20 million or 2% from prior • Continuing to make investments in Emphasis on quarter talent and technology diversifying and • Adjusted efficiency ratio (1) • Increasing efficiency through growing improved 60 basis points to continuous business process revenue 63.6% improvements • Low net charge-off ratio of 0.39% • Recent positive credit rating actions • Estimated Tier 1 Common • Commitment to maintaining prudent ratio (1) of 11.8% at quarter- Continued risk credit underwriting standards end discipline • Well positioned to be fully compliant with final Liquidity Coverage Ratio rule 2 (1) Non-GAAP; see appendix for reconciliation

Loans Ending Loan Balances ($ in millions) • Consumer lending portfolio increased $120 $76,513 $76,607 $75,892 $75,680 $74,609 million from 2Q 28,796 28,916 29,156 28,590 28,641 • Growth led by indirect auto lending 47,717 47,691 47,090 46,736 45,968 • Credit card balances increased 2% from prior quarter as active accounts increased 3Q13 4Q13 1Q14 2Q14 3Q14 • Mortgage balances up modestly as Average Loan Balances production increased 1% ($ in millions) • Business lending portfolio up 4% YTD $76,390 $76,279 $75,843 $75,359 $75,139 • Commercial and industrial loans up 2% 28,687 28,840 29,031 29,147 28,603 from 2Q 47,703 47,439 46,696 46,536 46,328 • Expect ending 2014 loan growth to be at the lower end of the 3% to 5% range 3Q13 4Q13 1Q14 2Q14 3Q14 Business Lending Consumer Lending 3

Deposits and funding costs Ending Deposit Balances Average Deposit Balances ($ in millions) ($ in millions) $93,971 $92,925 $92,989 $92,080 $92,051 $92,321 $92,453 $93,393 $93,822 $94,130 8,856 9,067 9,419 9,888 8,767 10,417 8,951 9,219 9,676 10,066 81,663 82,163 83,506 83,922 85,115 82,255 82,777 84,174 84,871 85,363 3Q13 4Q13 1Q14 2Q14 3Q14 3Q13 4Q13 1Q14 2Q14 3Q14 Low-Cost Deposits Time Deposits + Other Deposit costs Funding costs 35 bps 13 bps 34 bps 12 bps 12 bps 33 bps 11 bps 11 bps 31 bps 30 bps 3Q13 4Q13 1Q14 2Q14 3Q14 3Q13 4Q13 1Q14 2Q14 3Q14 • Continue to expect ending 2014 deposit growth to be in the 1% to 2% range 4

Net interest income and net interest margin • Net interest income (FTE) flat versus Net interest income and net interest margin prior quarter, while net interest ($ in millions) margin declined 6 basis points • Net interest income benefited from $846 $838 an additional day in quarter and $837 $837 $831 modest increase in the securities portfolio • Net interest margin pressured from 3.26% 3.26% 3.24% 3.24% higher levels of cash and additional 3.18% day • Remain asset sensitive and expect net interest income to benefit from rises in short-term or longer term rates • Assuming rates remain at current 3Q13 4Q13 1Q14 2Q14 3Q14 levels, expect modest compression Net Interest Income (FTE) Net Interest Margin to margin of about 1 to 3 basis points in 4Q 5

Non-interest revenue Non-interest revenue ($ in millions) • Non-interest revenue up 5% from 2Q $526 $495 $478 $457 • Service charges increased 4% from 2Q 60 134 $438 83 66 57 • Capital markets income increased $8 111 84 90 90 89 million from 2Q, primarily related to 52 43 39 43 40 increase in real estate capital markets 82 80 85 84 79 activity • Card and ATM fees increased 1% from 190 185 181 173 174 2Q as credit card spending volume increased 2% 3Q13 4Q13 1Q14 2Q14 3Q14 Service charges on deposit accounts Card and ATM fees (1) Mortgage Income Wealth Management Income Other (1) 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 6 attributable to the Wealth Management segment.

Expenses reflect investments in talent and technology Adjusted non-interest expenses (1) • Salaries and benefits increased $13 million 6% Decrease (2) ($ in millions) – primarily driven by increase in headcount and related benefits and incentives $883 $879 • Furniture and equipment related expenses $846 $826 $827 increased – primarily related to investments in technology, including system enhancements and data management solutions • Adjusted efficiency ratio (1) improved 60 basis points to 63.6% • Continue to expect full year 2014 adjusted expenses to be lower than full year 3Q13 4Q13 1Q14 2Q14 3Q14 adjusted 2013 expenses (1) Non-GAAP; see appendix for reconciliation 7 (2) Year-over-year change

Solid asset quality Net charge-offs and ratio NPLs and coverage ratio (3) ($ in millions) 34% Decline (1) ($ in millions) 38% Decline in Total NPLs (1) $1,354 141% 137% $1,082 $1,070 $899 $837 124% 118% 114% 3Q13 4Q13 1Q14 2Q14 3Q14 NPLs Coverage Ratio Criticized and classified loans (4) Troubled debt restructurings ($ in millions) 15% Decline (1) ($ in millions) 47% Decline (1) $3,209 $2,754 $3,512 397 $3,015 $3,051 $2,144 $2,981 $2,985 579 $1,827 $1,694 1,035 1,653 391 386 927 1,067 1,327 1,297 383 376 1,321 1,301 992 2,477 866 2,088 1,914 1,724 1,688 1,159 463 457 452 452 3Q13 4Q13 1Q14 2Q14 3Q14 3Q13 4Q13 1Q14 2Q14 3Q14 (5) Residential First Mortgage All Other Classified Loans Special Mention (1) Year-over-year change Home Equity TDRs Held-For-Sale (2) Non-GAAP; see appendix for reconciliation (3) Excludes loans held for sale (4) Includes commercial and investor real estate loans only (5) The All Other category includes TDRs classified as Held-For-Sale for the following periods : $31M in 3Q13, $38M in 1Q14, $16M in 2Q14 and 8 $13M in 3Q14.

Strong capital and solid liquidity Tier 1 capital ratio (1) • Expect to begin executing $350 million share repurchase program shortly, as 12.7% 12.5% previously planned 11.8% 11.7% • Basel III Common Equity Tier 1 ratio (1)(2) 11.5% estimated to be approximately 11.2%, which is well above minimum threshold • Regions remains well-positioned to be fully compliant with the Liquidity 3Q13 4Q13 1Q14 2Q14 3Q14 Coverage Ratio Tier 1 common ratio (1)(2) Loan to deposit ratio (3) 11.8% 11.6% 82% 82% 11.4% 81% 81% 81% 11.2% 11.0% 3Q13 4Q13 1Q14 2Q14 3Q14 3Q13 4Q13 1Q14 2Q14 3Q14 (1) Current quarter ratios are estimated (2) Non-GAAP; see appendix for reconciliation 9 (3) Based on ending balances

Appendix 10