REGIONS FINANCIAL CORP - FORM 8-K - EX-99.2

Attached files

file	filename
8-K - FORM 8-K - REGIONS FINANCIAL CORP	d569308d8k.htm
EX-99.1 - EX-99.1 - REGIONS FINANCIAL CORP	d569308dex991.htm
EX-99.3 - EX-99.3 - REGIONS FINANCIAL CORP	d569308dex993.htm

Exhibit 99.2

LOGO

Regions Financial Corporation and Subsidiaries

Financial Supplement

Second Quarter 2013

Regions Financial Corporation and Subsidiaries

Financial Supplement to Second Quarter 2013 Earnings Release

Table of Contents


		Page

Consolidated Balance Sheets		1

Consolidated Statements of Income		2

Selected Ratios and Other Information		3

Consolidated Average Daily Balances and Yield / Rate Analysis from Continuing Operations		4-5

Loans		6

Deposits		7

Pre-Tax Pre-Provision Income (“PPI”) and Adjusted PPI		8

Non-Interest Income		9

Non-Interest Expense		10

Credit Quality
Allowance for Credit Losses, Net Charge-Offs and Related Ratios		11
NPL, Foreclosed Property and Held for Sale Migration		12
Non-Accrual Loans (excludes loans held for sale) and Residential Lending Net Charge-Off Analysis		13
Early and Late Stage Delinquencies		14
Troubled Debt Restructurings		15

Reconciliation to GAAP Financial Measures
Efficiency Ratios, Fee Income Ratios, and Adjusted Non-Interest Income / Expense		16
Return Ratios, Tangible Common Ratios and Capital		17

Statement of Discontinued Operations		18

Forward-Looking Statements		19

Regions Financial Corporation and Subsidiaries

Financial Supplement to Second Quarter 2013 Earnings Release

Consolidated Balance Sheets (unaudited)


	As of
($ amounts in millions)	6/30/13			3/31/13			12/31/12			9/30/12			6/30/12
Assets:
Cash and due from banks	$	2,112		$	1,796		$	1,979		$	1,738		$	2,000
Interest-bearing deposits in other banks		2,168			3,137			3,510			2,192			1,766
Trading account assets		102			121			116			114			110
Securities held to maturity		2,425			8			10			12			13
Securities available for sale		22,001			27,089			27,244			27,603			27,232
Loans held for sale		839			1,082			1,383			1,265			1,187
Loans, net of unearned income		74,990			73,936			73,995			75,259			76,202
Allowance for loan losses		(1,636	)		(1,749	)		(1,919	)		(2,062	)		(2,291	)

Net loans		73,354			72,187			72,076			73,197			73,911
Other interest-earning assets		135			102			900			881			901
Premises and equipment, net		2,228			2,252			2,279			2,274			2,300
Interest receivable		326			366			344			362			341
Goodwill		4,816			4,816			4,816			4,816			4,816
Mortgage servicing rights at fair value (MSRs)		276			236			191			176			179
Other identifiable intangible assets		318			331			345			365			391
Other assets		7,607			6,195			6,154			6,803			7,198

Total assets	$	118,707		$	119,718		$	121,347		$	121,798		$	122,345

Liabilities and stockholders’ equity:
Deposits:
Non-interest-bearing	$	29,464		$	29,971		$	29,963		$	30,345		$	29,625
Interest-bearing		62,990			64,162			65,511			64,536			65,473

Total deposits		92,454			94,133			95,474			94,881			95,098
Borrowed funds:
Short-term borrowings:
Federal funds purchased and securities sold under agreements to repurchase		2,877			1,829			1,449			1,866			2,746
Other short-term borrowings		1,000			1			125			70			560

Total short-term borrowings		3,877			1,830			1,574			1,936			3,306
Long-term borrowings		4,856			5,847			5,861			6,224			6,230

Total borrowed funds		8,733			7,677			7,435			8,160			9,536
Other liabilities		2,191			2,168			2,939			3,856			3,256

Total liabilities		103,378			103,978			105,848			106,897			107,890
Stockholders’ equity:
Preferred stock, Series A non-cumulative perpetual		466			474			482			—			—
Common stock		14			15			15			15			15
Additional paid-in capital		19,440			19,643			19,652			19,664			19,666
Retained earnings (deficit)		(2,736	)		(3,003	)		(3,338	)		(3,603	)		(3,904	)
Treasury stock, at cost		(1,377	)		(1,377	)		(1,377	)		(1,377	)		(1,376	)
Accumulated other comprehensive income (loss), net		(478	)		(12	)		65			202			54

Total stockholders’ equity		15,329			15,740			15,499			14,901			14,455

Total liabilities and stockholders’ equity	$	118,707		$	119,718		$	121,347		$	121,798		$	122,345

Page 1

Regions Financial Corporation and Subsidiaries

Financial Supplement to Second Quarter 2013 Earnings Release

Consolidated Statements of Income (unaudited)


	Quarter Ended
($ amounts in millions, except per share data)	6/30/13			3/31/13		12/31/12			9/30/12			6/30/12
Interest income on:
Loans, including fees	$	746		$	743	$	777		$	783		$	806
Securities—taxable		152			156		158			170			179
Loans held for sale		8			9		10			9			7
Trading account assets		—			1		1			—			—
Other interest-earning assets		1			2		2			2			2

Total interest income		907			911		948			964			994
Interest expense on:
Deposits		33			42		53			67			76
Short-term borrowings		1			—		1			1			—
Long-term borrowings		65			71		76			79			80

Total interest expense		99			113		130			147			156

Net interest income		808			798		818			817			838
Provision for loan losses		31			10		37			33			26

Net interest income after provision for loan losses		777			788		781			784			812
Non-interest income:
Service charges on deposit accounts		237			242		254			244			233
Investment fee income		29			27		31			34			17
Mortgage income		69			72		90			106			90
Trust department income		49			49		48			48			50
Securities gains, net		8			15		12			12			12
Other		105			96		101			89			105

Total non-interest income		497			501		536			533			507
Non-interest expense:
Salaries and employee benefits		452			447		438			449			434
Net occupancy expense		92			90		97			99			92
Furniture and equipment expense		69			69		65			65			67
Other		271			236		302			256			249

Total non-interest expense		884			842		902			869			842

Income before income taxes from continuing operations		390			447		415			448			477
Income tax expense		122			114		138			136			126

Income from continuing operations		268			333		277			312			351
Discontinued operations:
Income (loss) from discontinued operations before income taxes		(2	)		4		(19	)		(19	)		4
Income tax expense (benefit)		(1	)		2		(7	)		(8	)		—

Income (loss) from discontinued operations, net of tax		(1	)		2		(12	)		(11	)		4

Net income	$	267		$	335	$	265		$	301		$	355

Income from continuing operations available to common shareholders	$	260		$	325	$	273		$	312		$	280

Net income available to common shareholders	$	259		$	327	$	261		$	301		$	284

Weighted-average shares outstanding—during quarter:
Basic		1,401			1,413		1,413			1,414			1,414
Diluted		1,418			1,423		1,423			1,423			1,418
Actual shares outstanding—end of quarter		1,395			1,413		1,413			1,413			1,413
Earnings per common share from continuing operations:
Basic	$	0.19		$	0.23	$	0.19		$	0.22		$	0.20
Diluted	$	0.18		$	0.23	$	0.19		$	0.22		$	0.20
Earnings per common share:
Basic	$	0.18		$	0.23	$	0.18		$	0.21		$	0.20
Diluted	$	0.18		$	0.23	$	0.18		$	0.21		$	0.20
Cash dividends declared per common share	$	0.03		$	0.01	$	0.01		$	0.01		$	0.01
Taxable-equivalent net interest income from continuing operations	$	821		$	811	$	831		$	830		$	850

Page 2

Regions Financial Corporation and Subsidiaries

Financial Supplement to Second Quarter 2013 Earnings Release

Selected Ratios and Other Information


	As of and for Quarter Ended
	6/30/13			3/31/13			12/31/12			9/30/12			6/30/12
Return on average assets from continuing operations*		0.88	%		1.11	%		0.90	%		1.02	%		0.92	%
Adjusted return on average assets from continuing operations (non-GAAP)* ⁽¹⁾		0.88	%		1.11	%		1.02	%		1.02	%		0.92	%
Return on average tangible common stockholders’ equity (non-GAAP)* ⁽¹⁾		10.15	%		13.12	%		10.42	%		12.39	%		12.40	%
Adjusted return on average tangible common stockholders’ equity (non-GAAP)* ⁽¹⁾		10.15	%		13.12	%		11.93	%		12.39	%		12.40	%
Adjusted efficiency ratio from continuing operations (non-GAAP) ⁽¹⁾		63.1	%		64.9	%		62.7	%		64.3	%		62.8	%
Common book value per share	$	10.65		$	10.80		$	10.63		$	10.55		$	10.23
Tangible common book value per share (non-GAAP) ⁽¹⁾	$	7.11		$	7.29		$	7.11		$	7.02		$	6.69
Tangible common stockholders’ equity to tangible assets (non-GAAP) ⁽¹⁾		8.72	%		8.98	%		8.63	%		8.49	%		8.04	%
Tier 1 Common risk-based ratio (non-GAAP) ⁽¹⁾⁽²⁾		11.2	%		11.2	%		10.8	%		10.5	%		10.0	%
Tier 1 Capital ⁽²⁾		11.7	%		12.4	%		12.0	%		11.5	%		11.0	%
Total Risk-Based Capital ⁽²⁾		14.8	%		15.8	%		15.4	%		15.0	%		14.5	%
Leverage ⁽²⁾		9.7	%		10.1	%		9.6	%		9.1	%		8.7	%
Allowance for loan losses as a percentage of loans, net of unearned income		2.18	%		2.37	%		2.59	%		2.74	%		3.01	%
Allowance for loan losses to non-performing loans, excluding loans held for sale		1.09	x		1.10	x		1.14	x		1.09	x		1.20	x
Net interest margin (FTE) from continuing operations		3.16	%		3.13	%		3.10	%		3.08	%		3.16	%
Loans, net of unearned income, to total deposits		81.1	%		78.5	%		77.5	%		79.3	%		80.1	%
Net charge-offs as a percentage of average loans*		0.77	%		0.99	%		0.96	%		1.38	%		1.39	%
Non-accrual loans, excluding loans held for sale as a percentage of loans		2.01	%		2.15	%		2.27	%		2.50	%		2.51	%
Non-performing assets (excluding loans 90 days past due) as a percentage of loans, foreclosed properties and non-performing loans held for sale		2.25	%		2.41	%		2.59	%		2.93	%		3.04	%
Non-performing assets (including loans 90 days past due) as a percentage of loans, foreclosed properties and non-performing loans held for sale ⁽³⁾		2.68	%		2.88	%		3.07	%		3.37	%		3.49	%
Associate headcount		23,692			23,466			23,427			23,361			23,422
Total branch outlets		1,709			1,709			1,711			1,716			1,719
ATMs		2,038			2,048			2,054			2,061			2,063

*	Annualized

(1)	See reconciliation of GAAP to non-GAAP Financial Measures on pages 16-17.

(2)	Current quarter Tier 1 Common, Tier 1, Total Risk-Based Capital and Leverage ratios are estimated.

(3)	Excludes guaranteed residential first mortgages that are 90+ days past due and still accruing. Refer to the footnotes on page 14 for amounts related to these loans.

Page 3

Regions Financial Corporation and Subsidiaries

Financial Supplement to Second Quarter 2013 Earnings Release

Consolidated Average Daily Balances and Yield/Rate Analysis from Continuing Operations


	Quarter Ended
	6/30/13								3/31/13
	Average			Income/		Yield/			Average			Income/		Yield/
($ amounts in millions; yields on taxable-equivalent basis)	Balance			Expense		Rate			Balance			Expense		Rate
Assets
Interest-earning assets:
Trading account assets	$	122		$	—		0.48	%	$	117		$	1		3.20	%
Securities:
Taxable		26,706			152		2.29			26,893			156		2.35
Tax-exempt		6			—		—			7			—		—
Loans held for sale		880			8		3.42			1,206			9		3.17
Loans, net of unearned income:
Commercial and industrial		28,301			272		3.85			27,058			260		3.90
Commercial real estate mortgage—owner-occupied		9,808			114		4.66			9,974			116		4.70
Commercial real estate construction—owner-occupied		339			5		5.27			303			3		4.41
Commercial investor real estate mortgage		6,124			54		3.58			6,613			59		3.59
Commercial investor real estate construction		1,085			10		3.57			951			9		3.77
Residential first mortgage		12,823			128		4.00			12,900			131		4.12
Home equity		11,475			103		3.62			11,670			105		3.64
Indirect		2,606			26		4.08			2,423			26		4.35
Consumer credit card		851			27		12.33			871			26		12.28
Other consumer		1,137			20		7.25			1,156			21		7.28

Total loans, net of unearned income		74,549			759		4.09			73,919			756		4.14
Other interest-earning assets		1,869			1		0.24			2,821			2		0.26

Total interest-earning assets		104,132			920		3.55			104,963			924		3.57
Allowance for loan losses		(1,706	)							(1,894	)
Cash and due from banks		1,745								1,766
Other non-earning assets		14,077								14,288

	$	118,248							$	119,123

Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Savings accounts	$	6,148			2		0.09		$	5,929			1		0.10
Interest-bearing transaction accounts		19,636			4		0.10			20,440			6		0.11
Money market accounts		25,952			9		0.14			25,477			9		0.14
Time deposits		11,423			18		0.66			12,904			26		0.81

Total interest-bearing deposits ⁽¹⁾		63,159			33		0.21			64,750			42		0.26
Federal funds purchased and securities sold under agreements to repurchase		2,287			—		0.09			1,786			—		0.10
Other short-term borrowings		310			1		0.19			25			—		0.01
Long-term borrowings		5,298			65		4.93			5,857			71		4.89

Total interest-bearing liabilities ⁽²⁾		71,054			99		0.56			72,418			113		0.63

Net interest spread							2.99								2.94

Non-interest-bearing deposits ⁽¹⁾⁽²⁾		29,454								29,114
Other liabilities		2,097								2,047
Stockholders’ equity		15,643								15,544

	$	118,248							$	119,123

Net interest income/margin FTE basis				$	821		3.16	%				$	811		3.13	%

(1)

Total deposit costs from continuing operations 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 from continuing operations equal 0.15% and 0.18% for the quarters ended June 30, 2013 and March 31, 2013, respectively.

(2)

Total funding costs from continuing operations may be calculated by dividing total interest expense on interest-bearing liabilities by the sum of interest-bearing liabilities and non-interest bearing deposits. The rates for total funding costs from continuing operations equal 0.40% and 0.45% for the quarters ended June 30, 2013 and March 31, 2013, respectively.

Page 4

Regions Financial Corporation and Subsidiaries

Financial Supplement to Second Quarter 2013 Earnings Release

Consolidated Average Daily Balances and Yield/Rate Analysis from Continuing Operations


	Quarter Ended
	12/31/12								9/30/12								6/30/12
	Average			Income/		Yield/			Average			Income/		Yield/			Average			Income/		Yield/
($ amounts in millions; yields on taxable-equivalent basis)	Balance			Expense		Rate			Balance			Expense		Rate			Balance			Expense		Rate
Assets
Interest-earning assets:
Trading account assets	$	126		$	1		3.16	%	$	112		$	—		—	%	$	116		$	—		—	%
Securities:
Taxable		27,128			159		2.33			27,028			170		2.50			26,846			179		2.68
Tax-exempt		9			—		—			10			—		—			16			—		—
Loans held for sale		1,232			9		2.91			1,213			9		2.95			1,107			8		2.91
Loans, net of unearned income:
Commercial and industrial		26,414			266		4.01			26,024			262		4.01			25,650			266		4.17
Commercial real estate mortgage—owner-occupied		10,237			123		4.78			10,464			122		4.64			10,805			128		4.76
Commercial real estate construction—owner-occupied		298			3		4.00			274			3		4.36			271			4		5.94
Commercial investor real estate mortgage		7,404			66		3.55			8,374			74		3.52			8,925			81		3.65
Commercial investor real estate construction		901			12		5.30			851			8		3.74			923			8		3.49
Residential first mortgage		13,072			136		4.14			13,300			141		4.22			13,484			144		4.30
Home equity		11,912			108		3.61			12,157			109		3.57			12,479			111		3.58
Indirect		2,295			26		4.51			2,150			26		4.81			2,022			25		4.97
Consumer credit card		886			28		12.57			908			29		12.71			925			28		12.17
Other consumer		1,203			22		7.28			1,195			22		7.32			1,186			22		7.46

Total loans, net of unearned income		74,622			790		4.21			75,697			796		4.18			76,670			817		4.29
Other interest-earning assets		3,540			2		0.22			3,187			2		0.25			3,311			2		0.24

Total interest-earning assets		106,657			961		3.58			107,247			977		3.62			108,066			1,006		3.74
Allowance for loan losses		(2,027	)							(2,232	)							(2,506	)
Cash and due from banks		1,812								1,732								1,814
Other non-earning assets		14,594								14,784								15,052

	$	121,036							$	121,531							$	122,426

Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Savings accounts	$	5,689			1		0.07		$	5,650			1		0.07		$	5,655			1		0.07
Interest-bearing transaction accounts		19,694			6		0.12			18,880			5		0.11			19,447			6		0.12
Money market accounts		24,912			9		0.14			24,891			11		0.18			24,520			11		0.18
Time deposits		14,220			37		1.04			15,536			50		1.28			17,175			58		1.36

Total interest-bearing deposits ⁽¹⁾		64,515			53		0.33			64,957			67		0.41			66,797			76		0.46
Federal funds purchased and securities sold under agreements to repurchase		1,601			1		0.25			2,375			1		0.17			1,856			—		—
Other short-term borrowings		109			—		—			363			—		—			468			—		—
Long-term borrowings		6,109			76		4.95			6,230			79		5.04			6,862			80		4.69

Total interest-bearing liabilities ⁽²⁾		72,334			130		0.71			73,925			147		0.79			75,983			156		0.83

Net interest spread							2.87								2.83								2.91

Non-interest-bearing deposits ⁽¹⁾⁽²⁾		30,290								29,652								29,066
Other liabilities		3,094								3,243								2,996
Stockholders’ equity		15,318								14,711								14,381

	$	121,036							$	121,531							$	122,426

Net interest income/margin FTE basis				$	831		3.10	%				$	830		3.08	%				$	850		3.16	%

(1)

Total deposit costs from continuing operations 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 from continuing operations equal 0.22%, 0.28%, and 0.32% for the quarters ended December 31, 2012, September 30, 2012, and June 30, 2012, respectively.

(2)

Total funding costs from continuing operations may be calculated by dividing total interest expense on interest-bearing liabilities by the sum of interest-bearing liabilities and non-interest bearing deposits. The rates for total funding costs from continuing operations equal 0.50%, 0.56%, and 0.60% for the quarters ended December 31, 2012, September 30, 2012, and June 30, 2012, respectively.

Page 5

Regions Financial Corporation and Subsidiaries

Financial Supplement to Second Quarter 2013 Earnings Release

Loans


	Quarter Ended
											6/30/13					6/30/13
($ amounts in millions)	6/30/13		3/31/13		12/31/12		9/30/12		6/30/12		vs. 3/31/13					vs. 6/30/12
Commercial and industrial	$	28,954	$	27,602	$	26,674	$	26,375	$	25,990	$	1,352		4.9	%	$	2,964		11.4	%
Commercial real estate mortgage—owner-occupied		9,731		9,812		10,095		10,325		10,626		(81	)	-0.8	%		(895	)	-8.4	%
Commercial real estate construction—owner-occupied		345		325		302		292		261		20		6.2	%		84		32.2	%

Total commercial		39,030		37,739		37,071		36,992		36,877		1,291		3.4	%		2,153		5.8	%
Commercial investor real estate mortgage		5,806		6,338		6,808		7,866		8,598		(532	)	-8.4	%		(2,792	)	-32.5	%
Commercial investor real estate construction		1,208		984		914		847		849		224		22.8	%		359		42.3	%

Total investor real estate		7,014		7,322		7,722		8,713		9,447		(308	)	-4.2	%		(2,433	)	-25.8	%
Residential first mortgage		12,839		12,875		12,963		13,225		13,394		(36	)	-0.3	%		(555	)	-4.1	%
Home equity—first lien		5,726		5,625		5,622		5,605		5,663		101		1.8	%		63		1.1	%
Home equity—second lien		5,684		5,921		6,178		6,420		6,658		(237	)	-4.0	%		(974	)	-14.6	%
Indirect		2,693		2,483		2,336		2,220		2,060		210		8.5	%		633		30.7	%
Consumer credit card		866		851		906		901		922		15		1.8	%		(56	)	-6.1	%
Other consumer		1,138		1,120		1,197		1,183		1,181		18		1.6	%		(43	)	-3.6	%

Total consumer		28,946		28,875		29,202		29,554		29,878		71		0.2	%		(932	)	-3.1	%

Total Loans	$	74,990	$	73,936	$	73,995	$	75,259	$	76,202	$	1,054		1.4	%	$	(1,212	)	-1.6	%


	Average Balances
											2Q13					2Q13
($ amounts in millions)	2Q13		1Q13		4Q12		3Q12		2Q12		vs. 1Q13					vs. 2Q12
Commercial and industrial	$	28,301	$	27,058	$	26,414	$	26,024	$	25,650	$	1,243		4.6	%	$	2,651		10.3	%
Commercial real estate mortgage—owner-occupied		9,808		9,974		10,237		10,464		10,805		(166	)	-1.7	%		(997	)	-9.2	%
Commercial real estate construction—owner-occupied		339		303		298		274		271		36		11.9	%		68		25.1	%

Total commercial		38,448		37,335		36,949		36,762		36,726		1,113		3.0	%		1,722		4.7	%
Commercial investor real estate mortgage		6,124		6,613		7,404		8,374		8,925		(489	)	-7.4	%		(2,801	)	-31.4	%
Commercial investor real estate construction		1,085		951		901		851		923		134		14.1	%		162		17.6	%

Total investor real estate		7,209		7,564		8,305		9,225		9,848		(355	)	-4.7	%		(2,639	)	-26.8	%
Residential first mortgage		12,823		12,900		13,072		13,300		13,484		(77	)	-0.6	%		(661	)	-4.9	%
Home equity—first lien		5,697		5,642		5,632		5,636		5,723		55		1.0	%		(26	)	-0.5	%
Home equity—second lien		5,778		6,028		6,280		6,521		6,756		(250	)	-4.1	%		(978	)	-14.5	%
Indirect		2,606		2,423		2,295		2,150		2,022		183		7.6	%		584		28.9	%
Consumer credit card		851		871		886		908		925		(20	)	-2.3	%		(74	)	-8.0	%
Other consumer		1,137		1,156		1,203		1,195		1,186		(19	)	-1.6	%		(49	)	-4.1	%

Total consumer		28,892		29,020		29,368		29,710		30,096		(128	)	-0.4	%		(1,204	)	-4.0	%

Total Loans	$	74,549	$	73,919	$	74,622	$	75,697	$	76,670	$	630		0.9	%	$	(2,121	)	-2.8	%

End of Period Loan Portfolio Balances by Percentage


	Quarter Ended
	6/30/2013			3/31/2013			12/31/2012			9/30/2012			6/30/2012
Commercial and industrial		38.6	%		37.3	%		36.1	%		35.0	%		34.1	%
Commercial real estate mortgage—owner-occupied		13.0	%		13.3	%		13.6	%		13.7	%		13.9	%
Commercial real estate construction—owner-occupied		0.5	%		0.4	%		0.4	%		0.5	%		0.4	%

Total commercial		52.1	%		51.0	%		50.1	%		49.2	%		48.4	%
Commercial investor real estate mortgage		7.7	%		8.6	%		9.2	%		10.5	%		11.3	%
Commercial investor real estate construction		1.6	%		1.3	%		1.2	%		1.1	%		1.1	%

Total investor real estate		9.3	%		9.9	%		10.4	%		11.6	%		12.4	%
Residential first mortgage		17.1	%		17.4	%		17.5	%		17.6	%		17.6	%
Home equity—first lien		7.6	%		7.6	%		7.6	%		7.4	%		7.4	%
Home equity—second lien		7.6	%		8.0	%		8.4	%		8.5	%		8.7	%
Indirect		3.6	%		3.4	%		3.2	%		2.9	%		2.7	%
Consumer credit card		1.2	%		1.2	%		1.2	%		1.2	%		1.2	%
Other consumer		1.5	%		1.5	%		1.6	%		1.6	%		1.6	%

Total consumer		38.6	%		39.1	%		39.5	%		39.2	%		39.2	%

Total Loans		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%

Page 6

Regions Financial Corporation and Subsidiaries

Financial Supplement to Second Quarter 2013 Earnings Release

Deposits


	Quarter Ended
											6/30/13					6/30/13
($ amounts in millions)	6/30/13		3/31/13		12/31/12		9/30/12		6/30/12		vs. 3/31/13					vs. 6/30/12
Customer Deposits
Interest-free deposits	$	29,464	$	29,971	$	29,963	$	30,345	$	29,625	$	(507	)	-1.7	%	$	(161	)	-0.5	%
Interest-bearing checking		19,937		20,004		21,096		19,240		19,311		(67	)	-0.3	%		626		3.2	%
Savings		6,117		6,159		5,760		5,652		5,661		(42	)	-0.7	%		456		8.1	%
Money market—domestic		25,946		25,411		24,901		24,404		23,974		535		2.1	%		1,972		8.2	%
Money market—foreign		193		332		311		327		322		(139	)	-41.9	%		(129	)	-40.1	%

Low-cost deposits		81,657		81,877		82,031		79,968		78,893		(220	)	-0.3	%		2,764		3.5	%
Time deposits		10,797		12,256		13,443		14,911		16,202		(1,459	)	-11.9	%		(5,405	)	-33.4	%

Total customer deposits		92,454		94,133		95,474		94,879		95,095		(1,679	)	-1.8	%		(2,641	)	-2.8	%

Corporate Treasury Deposits
Time deposits		—		—		—		2		3		—		—			(3	)	NM

Total Deposits	$	92,454	$	94,133	$	95,474	$	94,881	$	95,098	$	(1,679	)	-1.8	%	$	(2,644	)	-2.8	%


	Average Balances
											2Q13					2Q13
($ amounts in millions)	2Q13		1Q13		4Q12		3Q12		2Q12		vs. 1Q13					vs. 2Q12
Customer Deposits
Interest-free deposits	$	29,454	$	29,114	$	30,290	$	29,652	$	29,066	$	340		1.2	%	$	388		1.3	%
Interest-bearing checking		19,636		20,440		19,694		18,880		19,447		(804	)	-3.9	%		189		1.0	%
Savings		6,148		5,929		5,689		5,650		5,655		219		3.7	%		493		8.7	%
Money market—domestic		25,722		25,161		24,577		24,563		24,172		561		2.2	%		1,550		6.4	%
Money market—foreign		230		316		335		328		348		(86	)	-27.2	%		(118	)	-33.9	%

Low-cost deposits		81,190		80,960		80,585		79,073		78,688		230		0.3	%		2,502		3.2	%
Time deposits		11,423		12,904		14,218		15,533		17,172		(1,481	)	-11.5	%		(5,749	)	-33.5	%

Total customer deposits		92,613		93,864		94,803		94,606		95,860		(1,251	)	-1.3	%		(3,247	)	-3.4	%

Corporate Treasury Deposits
Time deposits		—		—		2		3		3		—		—			(3	)	NM

Total Deposits	$	92,613	$	93,864	$	94,805	$	94,609	$	95,863	$	(1,251	)	-1.3	%	$	(3,250	)	-3.4	%

End of Period Deposits by Percentage


	Quarter Ended
	6/30/13			3/31/13			12/31/12			9/30/12			6/30/12
Customer Deposits
Interest-free deposits		31.9	%		31.8	%		31.4	%		32.0	%		31.2	%
Interest-bearing checking		21.6	%		21.3	%		22.1	%		20.3	%		20.3	%
Savings		6.6	%		6.5	%		6.0	%		6.0	%		6.0	%
Money market—domestic		28.1	%		27.0	%		26.1	%		25.7	%		25.2	%
Money market—foreign		0.2	%		0.4	%		0.3	%		0.3	%		0.3	%

Low-cost deposits		88.4	%		87.0	%		85.9	%		84.3	%		83.0	%
Time deposits		11.6	%		13.0	%		14.1	%		15.7	%		17.0	%

Total customer deposits		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%

Corporate Treasury Deposits
Time deposits		—			—			—			—			—

Total Deposits		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%

Page 7

Regions Financial Corporation and Subsidiaries

Financial Supplement to Second Quarter 2013 Earnings Release

Pre-Tax Pre-Provision Income (non-GAAP)

The Pre-Tax Pre-Provision Income (PPI) table below presents computations of pre-tax pre-provision income from continuing operations excluding certain adjustments (non-GAAP). Regions believes that the presentation of PPI and the exclusion of certain items to PPI provides a meaningful base for period-to-period comparisons, which management believes will assist investors in analyzing the operating results of the Company and predicting future performance. These non-GAAP financial measures are also used by management to assess the performance of Regions’ business. It is possible that the activities related to the adjustments may recur; however, management does not consider the activities related to the adjustments to be indications of ongoing operations. Regions believes that presentation of these non-GAAP financial measures will permit investors to assess the performance of the Company on the same basis as that applied by management. Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied and are not audited. Although these non-GAAP financial measures are frequently used by stakeholders in the evaluation of a company, they have limitations as analytical tools, and should not be considered in isolation, or as a substitute for analyses of results as reported under GAAP. In particular, a measure of income that excludes certain adjustments does not represent the amount that effectively accrues directly to stockholders.


	Quarter Ended
																2Q13					2Q13
($ amounts in millions)	6/30/13			3/31/13			12/31/12			9/30/12			6/30/12			vs. 1Q13					vs. 2Q12
Income from continuing operations available to common shareholders (GAAP)	$	260		$	325		$	273		$	312		$	280		$	(65	)	-20.0	%	$	(20	)	-7.1	%
Preferred dividends (GAAP)		8			8			4			—			71			—		NM			(63	)	-88.7	%
Income tax expense (GAAP)		122			114			138			136			126			8		7.0	%		(4	)	-3.2	%

Income from continuing operations before income taxes (GAAP)		390			447			415			448			477			(57	)	-12.8	%		(87	)	-18.2	%
Provision for loan losses (GAAP)		31			10			37			33			26			21		210.0	%		5		19.2	%

Pre-tax pre-provision income from continuing operations (non-GAAP)		421			457			452			481			503			(36	)	-7.9	%		(82	)	-16.3	%
Other Adjustments:
Securities gains, net		(8	)		(15	)		(12	)		(12	)		(12	)		7		-46.7	%		4		-33.3	%
Leveraged lease termination gains, net⁽¹⁾		—			—			—			—			(7	)		—		NM			7		-100.0	%
Loss on early extinguishment of debt		56			—			11			—			—			56		NM			56		NM
Securities impairment, net		—			—			—			—			2			—		NM			(2	)	-100.0	%
REIT investment early termination costs		—			—			42			—			—			—		NM			—		NM

Total other adjustments		48			(15	)		41			(12	)		(17	)		63		-420.0	%		65		-382.4	%

Adjusted pre-tax pre-provision income from continuing operations (non-GAAP)	$	469		$	442		$	493		$	469		$	486		$	27		6.1	%	$	(17	)	-3.5	%

(1)	After tax amounts for leveraged lease terminations gains are zero for 6/30/2013, 3/31/2013, 12/31/2012 and 9/30/2012, respectively, and $0.6 million for 6/30/2012.

Page 8

Regions Financial Corporation and Subsidiaries

Financial Supplement to Second Quarter 2013 Earnings Release

Non-Interest Income


	Quarter Ended
																2Q13					2Q13
($ amounts in millions)	6/30/13			3/31/13			12/31/12			9/30/12			6/30/12			vs. 1Q13					vs. 2Q12
Service charges on deposit accounts	$	237		$	242		$	254		$	244		$	233		$	(5	)	-2.1	%	$	4		1.7	%
Investment fee income		29			27			31			34			17			2		7.4	%		12		70.6	%
Mortgage income		69			72			90			106			90			(3	)	-4.2	%		(21	)	-23.3	%
Trust department income		49			49			48			48			50			—		NM			(1	)	-2.0	%
Commercial credit fee income		17			16			16			17			16			1		6.3	%		1		6.3	%
Securities gains, net		8			15			12			12			12			(7	)	-46.7	%		(4	)	-33.3	%
Insurance commissions and fees		29			30			27			28			26			(1	)	-3.3	%		3		11.5	%
Leveraged lease termination gains, net		—						—			—			7			—		NM			(7	)	-100.0	%
Bank-owned life insurance		22			22			20			19			21			—		NM			1		4.8	%
Net revenue (loss) from affordable housing		(15	)		(17	)		(5	)		(17	)		(13	)		2		-11.8	%		(2	)	15.4	%
Credit card/bank card income		19			18			21			18			23			1		5.6	%		(4	)	-17.4	%
Other		33			27			22			24			25			6		22.2	%		8		32.0	%

Total non-interest income from continuing operations	$	497		$	501		$	536		$	533		$	507		$	(4	)	-0.8	%	$	(10	)	-2.0	%

Mortgage Income


	Quarter Ended
																2Q13					2Q13
($ amounts in millions)	6/30/13			3/31/13			12/31/12			9/30/12			6/30/12			vs. 1Q13					vs. 2Q12
Production and sales	$	54		$	59		$	72		$	85		$	69		$	(5	)	-8.5	%	$	(15	)	-21.7	%
Loan servicing		23			19			20			21			21			4		21.1	%		2		9.5	%
MSRs fair value increase (decrease) ⁽¹⁾		24			1			(1	)		(19	)		(34	)		23		NM			58		-170.6	%
MSRs hedge gain (loss)		(32	)		(7	)		(1	)		19			34			(25	)	357.1	%		(66	)	-194.1	%

MSR hedge ineffectiveness		(8	)		(6	)		(2	)		—			—			(2	)	33.3	%		(8	)	NM

Total mortgage income	$	69		$	72		$	90		$	106		$	90		$	(3	)	-4.2	%	$	(21	)	-23.3	%

Mortgage production	$	1,921		$	1,819		$	2,124		$	2,226		$	2,066		$	102		5.6	%	$	(145	)	-7.0	%

(1)	Fair value adjustment includes payment decay and assumptions change impact.

>	Income related to service charges on deposit accounts decreased $5 million or 2.1% quarter over quarter resulting from a $12 million increase in reserves for customer refunds stemming from a change in the NSF policy implemented in the second quarter 2012.

Page 9

Regions Financial Corporation and Subsidiaries

Financial Supplement to Second Quarter 2013 Earnings Release

Non-Interest Expense


	Quarter Ended
																2Q13					2Q13
($ amounts in millions)	6/30/13			3/31/13			12/31/12			9/30/12			6/30/12			vs. 1Q13					vs. 2Q12
Salaries and employee benefits	$	452		$	447		$	438		$	449		$	434		$	5		1.1	%	$	18		4.1	%
Net occupancy expense		92			90			97			99			92			2		2.2	%		—		NM
Furniture and equipment expense		69			69			65			65			67			—		NM			2		3.0	%
Professional and legal expenses		21			31			15			36			36			(10	)	-32.3	%		(15	)	-41.7	%
Amortization of core deposit intangible		7			7			20			20			21			—		NM			(14	)	-66.7	%
Credit/checkcard expenses		10			9			10			15			19			1		11.1	%		(9	)	-47.4	%
Deposit administrative fee		37			33			34			37			44			4		12.1	%		(7	)	-15.9	%
Marketing		24			23			23			27			20			1		4.3	%		4		20.0	%
Loss on early extinguishment of debt		56			—			11			—			—			56		NM			56		NM
REIT investment early termination costs		—			—			42			—			—			—		NM			—		NM
Gain on loans held for sale, net		(11	)		(6	)		(10	)		(17	)		(26	)		(5	)	83.3	%		15		-57.7	%
Provision (credit) for unfunded credit commitments		(15	)		5			7			(15	)		—			(20	)	-400.0	%		(15	)	NM
Outside services		26			22			23			23			18			4		18.2	%		8		44.4	%
Other		116			112			127			130			117			4		3.6	%		(1	)	-0.9	%

Total non-interest expense from continuing operations	$	884		$	842		$	902		$	869		$	842		$	42		5.0	%	$	42		5.0	%

•

Salaries and Benefit related expenses increased by $5 million or 1.1% quarter over quarter primarily driven by headcount increases in revenue generating positions as well as merit and incentive compensation increases. The $18 million or 4.1% year over year increase is attributable to the increase in headcount as well as merit.

•	Professional and Legal expenses decreased by $10 million or 32.3% linked quarter driven by favorable settlements resulting in reversals of legal accruals established in prior quarters.

•	Expenses associated with the amortization of core deposit intangibles decreased $14 million or 66.7% year over year due to a change in estimated life at year-end 2012.

•

The Company incurred $56 million in losses related to the early extinguishment of debt in the second quarter. The loss related to the purchase of certain senior debt securities and preferred stock as well as the redemption of select trust preferred securities. Approximately $24 million of the $56 million loss is non-deductible for tax purposes.

•	Provision expense related to unfunded commitments decreased by $20 million linked quarter due to a large credit that funded and subsequently resolved during the quarter.

Page 10

Regions Financial Corporation and Subsidiaries

Financial Supplement to Second Quarter 2013 Earnings Release

Credit Quality


	As of and for Quarter Ended
($ amounts in millions)	6/30/13			3/31/13			12/31/12			9/30/12			6/30/12
Allowance for credit losses (ACL)	$	1,709		$	1,837		$	2,002		$	2,138		$	2,382
Provision for loan losses		31			10			37			33			26
Provision (credit) for unfunded credit losses		(15	)		5			7			(15	)		—
Net loans charged-off:
Commercial and industrial		30			58			17			31			33
Commercial real estate mortgage—owner-occupied		28			25			44			42			45
Commercial real estate construction—owner-occupied		—			(1	)		1			1			4

Total commercial		58			82			62			74			82

Commercial investor real estate mortgage		16			14			21			64			41
Commercial investor real estate construction		(2	)		—			1			6			11

Total investor real estate		14			14			22			70			52

Residential first mortgage		18			22			26			35			42
Home equity—first lien		7			10			12			14			17
Home equity—second lien		22			27			31			38			47
Indirect		4			6			5			4			2
Consumer credit card		11			9			8			12			11
Other consumer		10			10			14			15			12

Total consumer		72			84			96			118			131

Total	$	144		$	180		$	180		$	262		$	265

Net loan charge-offs as a % of average loans, annualized:
Commercial and industrial		0.43	%		0.87	%		0.27	%		0.47	%		0.51	%
Commercial real estate mortgage—owner-occupied		1.17	%		1.01	%		1.72	%		1.58	%		1.68	%
Commercial real estate construction—owner-occupied		-0.83	%		-1.31	%		1.28	%		2.06	%		5.59	%

Total commercial		0.61	%		0.89	%		0.68	%		0.80	%		0.89	%

Commercial investor real estate mortgage		1.02	%		0.88	%		1.15	%		3.03	%		1.86	%
Commercial investor real estate construction		-0.54	%		0.01	%		0.63	%		3.03	%		4.56	%

Total investor real estate		0.79	%		0.77	%		1.09	%		3.03	%		2.11	%

Residential first mortgage		0.56	%		0.68	%		0.76	%		1.06	%		1.27	%
Home equity—first lien		0.47	%		0.72	%		0.91	%		0.97	%		1.18	%
Home equity—second lien		1.53	%		1.82	%		1.96	%		2.31	%		2.79	%
Indirect		0.56	%		1.03	%		0.86	%		0.65	%		0.52	%
Consumer credit card		4.95	%		4.20	%		3.32	%		5.37	%		4.95	%
Other consumer		3.66	%		3.44	%		4.51	%		4.99	%		4.07	%

Total consumer		0.99	%		1.17	%		1.28	%		1.57	%		1.77	%

Total		0.77	%		0.99	%		0.96	%		1.38	%		1.39	%

Non-accrual loans, excluding loans held for sale	$	1,506		$	1,586		$	1,681		$	1,884		$	1,915
Non-performing loans held for sale		53			66			89			134			202

Non-accrual loans, including loans held for sale		1,559			1,652			1,770			2,018			2,117
Foreclosed properties		136			136			149			197			214

Non-performing assets (NPAs)	$	1,695		$	1,788		$	1,919		$	2,215		$	2,331

Loans past due > 90 days ⁽¹⁾	$	319		$	344		$	363		$	334		$	345
Accruing restructured loans not included in categories above ⁽²⁾	$	2,591		$	2,717		$	2,789		$	2,916		$	2,966
Credit Ratios:
ACL/Loans, net		2.28	%		2.48	%		2.71	%		2.84	%		3.13	%
ALL/Loans, net		2.18	%		2.37	%		2.59	%		2.74	%		3.01	%
Allowance for loan losses to non-performing loans, excluding loans held for sale		1.09	x		1.10	x		1.14	x		1.09	x		1.20	x
Non-accrual loans, excluding loans held for sale/Loans, net		2.01	%		2.15	%		2.27	%		2.50	%		2.51	%
NPAs (ex. 90+ past due)/Loans, foreclosed properties and non-performing loans held for sale		2.25	%		2.41	%		2.59	%		2.93	%		3.04	%
NPAs (inc. 90+ past due)/Loans, foreclosed properties and non-performing loans held for sale ⁽¹⁾		2.68	%		2.88	%		3.07	%		3.37	%		3.49	%

Allowance for Credit Losses


	Quarter Ended
($ amounts in millions)	6/30/13		3/31/13		12/31/12		9/30/12		6/30/12
Components:
Allowance for loan losses	$	1,636	$	1,749	$	1,919	$	2,062	$	2,291
Reserve for unfunded credit commitments		73		88		83		76		91

Allowance for credit losses	$	1,709	$	1,837	$	2,002	$	2,138	$	2,382

(1)	Excludes guaranteed residential first mortgages that are 90+ days past due and still accruing. Refer to the footnotes on page 14 for amounts related to these loans.

(2)	See page 15 for detail of restructured loans.

Page 11

Regions Financial Corporation and Subsidiaries

Financial Supplement to Second Quarter 2013 Earnings Release

Gross and Net NPL Migration


	Quarter Ended
($ in millions)	6/30/13			3/31/13			12/31/12			9/30/12			6/30/12
Beginning Non-Performing Loans ⁽¹⁾	$	1,586		$	1,681		$	1,884		$	1,915		$	2,151
Additions ⁽²⁾:
Land/Single Family/Condo Investor Real Estate		7			8			21			24			45
Income Producing IRE		27			68			85			118			69

Total Investor Real Estate		34			76			106			142			114
Commercial		182			62			104			120			83
Business and Community		129			144			158			190			134
Consumer		(17	)		(5	)		(18	)		11			(16	)

Total Gross NPL Additions		328			277			350			463			315

Resolutions ⁽³⁾		(255	)		(203	)		(340	)		(217	)		(265	)
Charge-Offs ⁽⁴⁾		(95	)		(120	)		(122	)		(159	)		(164	)

Net Additions (Reductions)		(22	)		(46	)		(112	)		87			(114	)

Non-Accrual Loan Sales		(7	)		(5	)		(20	)		(8	)		(24	)
Transfer to HFS		(38	)		(31	)		(51	)		(81	)		(77	)
Transfer to OREO		(13	)		(13	)		(20	)		(29	)		(21	)

Ending Non-Performing Loans ⁽¹⁾	$	1,506		$	1,586		$	1,681		$	1,884		$	1,915

⁽¹⁾	Does not include Loans Held for Sale

⁽²⁾	All net activity within the consumer portfolio other than sales and transfers to held for sale is included as a single net number within the additions line, due to the relative immateriality of consumer non-accrual loans.

⁽³⁾	Includes payments and returned to accruals

⁽⁴⁾	Includes charge-offs on loans on non-accrual status and charge-offs taken upon sale and transfer of non-accrual loans to held for sale

Foreclosed Properties


	Quarter Ended
($ in millions)	6/30/13			3/31/13			12/31/12			9/30/12			6/30/12
Beginning Foreclosed Properties	$	136		$	149		$	197		$	214		$	241
Transfers in		65			60			50			70			80
Sales		(55	)		(59	)		(86	)		(68	)		(87	)
Writedowns / Other Activity		(10	)		(14	)		(12	)		(19	)		(20	)

Ending Foreclosed Properties	$	136		$	136		$	149		$	197		$	214

Non-Performing Loans Held for Sale


	Quarter Ended
($ in millions)	6/30/13			3/31/13			12/31/12			9/30/12			6/30/12
Beginning Non-Performing Loans Held for Sale	$	66		$	89		$	134		$	202		$	249
Transfers in		38			31			51			81			77
Sales		(34	)		(36	)		(84	)		(138	)		(103	)
Writedowns		—			(1	)		—			(1	)		(6	)
Loan moved from HFS / Other Activity		(14	)		(11	)		(10	)		(7	)		(4	)
Transfers to OREO		(3	)		(6	)		(2	)		(3	)		(11	)

Ending Non-Performing Loans Held for Sale	$	53		$	66		$	89		$	134		$	202

Composition of Non-Performing Loans Held for Sale


Timing of Transfer to HFS	Percent
2Q13		71.9	%
1Q13		3.8	%
2012		13.8	%
2011		10.5	%

Total		100.0	%

Page 12

Regions Financial Corporation and Subsidiaries

Financial Supplement to Second Quarter 2013 Earnings Release

Non-Accrual Loans (excludes loans held for sale)


	Quarter Ended
($ millions)	6/30/13				3/31/13				12/31/12				9/30/12				6/30/12
Commercial and Industrial	$	408	1.41	%	$	355	1.29	%	$	409	1.53	%	$	393	1.49	%	$	366	1.41	%
Commercial Real Estate Mortgage—OO		398	4.08	%		420	4.28	%		439	4.35	%		504	4.88	%		504	4.75	%
Commercial Real Estate Construction—OO		15	4.38	%		12	3.70	%		14	4.57	%		15	5.30	%		20	7.61	%

Total Commercial		821	2.10	%		787	2.08	%		862	2.33	%		912	2.47	%		890	2.41	%
Commercial Investor Real Estate Mortgage		352	6.07	%		451	7.12	%		457	6.74	%		560	7.12	%		599	6.97	%
Commercial Investor Real Estate Construction		16	1.30	%		13	1.32	%		20	2.21	%		52	6.15	%		74	8.73	%

Total Investor Real Estate		368	5.25	%		464	6.34	%		477	6.17	%		612	7.03	%		673	7.12	%
Residential First Mortgage		186	1.44	%		201	1.56	%		214	1.65	%		224	1.69	%		229	1.71	%
Home Equity		130	1.14	%		133	1.15	%		128	1.08	%		136	1.12	%		123	1.00	%
Direct		—	0.06	%		—	0.06	%		—	0.00	%		—	0.00	%		—	0.00	%
Indirect		1	0.03	%		1	0.03	%		—	0.00	%		—	0.00	%		—	0.00	%
Consumer Credit Card		—	0.00	%		—	0.00	%		—	0.00	%		—	0.00	%		—	0.00	%
Other Consumer		—	0.00	%		—	0.00	%		—	0.00	%		—	0.00	%		—	0.00	%

Total Consumer		317	1.09	%		335	1.16	%		342	1.17	%		360	1.22	%		352	1.18	%

Total Non-Accrual Loans	$	1,506	2.01	%	$	1,586	2.15	%	$	1,681	2.27	%	$	1,884	2.50	%	$	1,915	2.51	%

OO = Owner Occupied

Criticized and Classified Loans—Commercial and Investor Real Estate


	Quarter Ended
											6/30/13					6/30/13
($ millions)	6/30/13		3/31/13		12/31/12		9/30/12		6/30/12		vs. 3/31/13					vs. 6/30/12
Special Mention	$	1,142	$	1,136	$	1,336	$	1,707	$	1,548	$	6		0.5	%	$	(406	)	-26.2	%
Classified Loans		2,776		2,964		3,156		3,424		3,888	$	(188	)	-6.3	%	$	(1,112	)	-28.6	%

Total Commercial and Investor Real Estate	$	3,918	$	4,100	$	4,492	$	5,131	$	5,436	$	(182	)	-4.4	%	$	(1,518	)	-27.9	%

Residential Lending Net Charge-off Analysis


	Quarter Ended
	6/30/13															3/31/13
	First Liens									Junior Liens			Total⁽¹⁾			First Liens									Junior Liens			Total⁽¹⁾
	Residential			Home						Home						Residential			Home						Home
($ in millions)	Mortgage			Equity			Total			Equity						Mortgage			Equity			Total			Equity
Florida
Net Charge-off %*		0.88	%		0.83	%		0.86	%		2.52	%		1.29	%		1.06	%		1.13	%		1.08	%		2.87	%		1.55	%
$ Losses	$	10.4		$	3.8		$	14.2		$	14.5		$	28.7		$	12.7		$	5.2		$	17.9		$	16.9		$	34.8
Balance	$	4,737.6		$	1,833.0		$	6,570.5		$	2,276.7		$	8,847.2		$	4,840.4		$	1,844.2		$	6,684.6		$	2,354.7		$	9,039.3
Original LTV		72.9	%		65.1	%					75.6	%					73.0	%		65.1	%					75.6	%

All Other States
Net Charge-off %*		0.38	%		0.30	%		0.35	%		0.87	%		0.47	%		0.45	%		0.56	%		0.48	%		1.14	%		0.64	%
$ Losses	$	7.6		$	2.9		$	10.5		$	7.5		$	18.1		$	8.8		$	5.2		$	14.0		$	10.2		$	24.3
Balance	$	8,101.4		$	3,892.4		$	11,993.8		$	3,407.8		$	15,401.5		$	8,034.1		$	3,781.2		$	11,815.4		$	3,566.1		$	15,381.4
Original LTV		74.5	%		65.0	%					79.1	%					74.5	%		65.5	%					79.1	%

Totals
Net Charge-off %*		0.56	%		0.47	%		0.54	%		1.53	%		0.77	%		0.68	%		0.75	%		0.70	%		1.83	%		0.97	%
$ Losses	$	18.0		$	6.7		$	24.8		$	22.0		$	46.8		$	21.5		$	10.4		$	31.9		$	27.1		$	59.0
Balance	$	12,838.9		$	5,725.4		$	18,564.3		$	5,684.4		$	24,248.8		$	12,874.6		$	5,625.4		$	18,500.0		$	5,920.8		$	24,420.8
Original LTV		73.9	%		65.0	%					77.6	%					74.0	%		65.3	%					77.7	%

(1)	Total line item includes first liens on residential first mortgage and home equity, as well as junior liens on home equity

*	20% Florida junior lien concentration driving residential

*	Junior lien, Florida net charge-offs represent 50% of 2Q13 Home Equity net charge-offs but just 20% of Home Equity outstanding balances

*	Net Home Equity charge-offs in Florida more than 2.5 times non-Florida net charge-off rate

*	Home Equity origination quality solid with an average FICO of 777 and an average LTV of 59%; Property value declines driving losses

Page 13

Regions Financial Corporation and Subsidiaries

Financial Supplement to Second Quarter 2013 Earnings Release

Early and Late Stage Delinquencies

Accruing 30-89 Days Past Due Loans


	Quarter Ended
($ millions)	6/30/13				3/31/13				12/31/12				9/30/12				6/30/12
Commercial and Industrial	$	36	0.12	%	$	54	0.20	%	$	50	0.19	%	$	88	0.33	%	$	64	0.25	%
Commercial Real Estate Mortgage—OO		52	0.54	%		49	0.50	%		77	0.76	%		69	0.67	%		90	0.85	%
Commercial Real Estate Construction—OO		1	0.25	%		2	0.62	%		—	0.10	%		2	0.82	%		2	0.47	%

Total Commercial		89	0.23	%		105	0.28	%		127	0.34	%		159	0.43	%		156	0.42	%
Commercial Investor Real Estate Mortgage		60	1.04	%		72	1.13	%		80	1.18	%		80	1.01	%		103	1.20	%
Commercial Investor Real Estate Construction		3	0.21	%		7	0.73	%		2	0.17	%		40	4.73	%		3	0.36	%

Total Investor Real Estate		63	0.90	%		79	1.08	%		82	1.06	%		120	1.37	%		106	1.12	%
Residential First Mortgage—Non-Guaranteed ⁽¹⁾⁽³⁾		183	1.47	%		207	1.65	%		219	1.73	%		236	1.83	%		206	1.57	%
Home Equity		133	1.16	%		127	1.10	%		153	1.30	%		155	1.30	%		153	1.25	%
Direct		9	1.16	%		9	1.12	%		13	1.52	%		13	1.48	%		11	1.31	%
Indirect		38	1.39	%		31	1.26	%		40	1.74	%		36	1.61	%		27	1.33	%
Consumer Credit Card		10	1.18	%		9	1.11	%		14	1.56	%		14	1.64	%		12	1.28	%
Other Consumer		12	3.53	%		9	2.59	%		11	2.95	%		12	3.48	%		12	3.47	%

Total Consumer ⁽¹⁾⁽³⁾		385	1.35	%		392	1.37	%		450	1.56	%		466	1.60	%		421	1.42	%

Total Accruing 30-89 Days Past Due Loans ⁽¹⁾⁽³⁾	$	537	0.72	%	$	576	0.78	%	$	659	0.89	%	$	745	0.99	%	$	683	0.90	%


Accruing 90+ Days Past Due Loans
	Quarter Ended
($ millions)	6/30/13				3/31/13				12/31/12				9/30/12				6/30/12
Commercial & Industrial	$	8	0.03	%	$	8	0.03	%	$	19	0.07	%	$	6	0.02	%	$	5	0.02	%
Commercial Real Estate Mortgage—OO		16	0.16	%		9	0.09	%		6	0.06	%		8	0.07	%		9	0.08	%
Commercial Real Estate Construction—OO		—	0.00	%		—	0.02	%		—	0.03	%		—	0.14	%		—	0.16	%

Total Commercial		24	0.06	%		17	0.05	%		25	0.07	%		14	0.04	%		14	0.04	%
Commercial Investor Real Estate Mortgage		24	0.41	%		25	0.39	%		11	0.16	%		7	0.10	%		16	0.19	%
Commercial Investor Real Estate Construction		—	0.03	%		0	0.02	%		0	0.05	%		1	0.08	%		—	0.00	%

Total Investor Real Estate		24	0.34	%		25	0.34	%		11	0.15	%		8	0.09	%		16	0.17	%
Residential First Mortgage—Non-Guaranteed ⁽²⁾⁽³⁾		178	1.42	%		203	1.62	%		220	1.73	%		226	1.73	%		223	1.67	%
Home Equity		75	0.66	%		79	0.68	%		87	0.74	%		69	0.57	%		74	0.60	%
Direct		1	0.15	%		1	0.15	%		1	0.16	%		1	0.16	%		1	0.14	%
Indirect		3	0.13	%		3	0.13	%		3	0.12	%		2	0.10	%		2	0.11	%
Consumer Credit Card		11	1.27	%		14	1.60	%		14	1.56	%		12	1.26	%		13	1.38	%
Other Consumer		3	0.63	%		2	0.73	%		2	0.51	%		2	0.54	%		2	0.62	%

Total Consumer ⁽²⁾⁽³⁾		271	0.95	%		302	1.06	%		327	1.13	%		312	1.07	%		315	1.06	%

Total Accruing 90+ Days Past Due Loans ⁽²⁾⁽³⁾	$	319	0.43	%	$	344	0.47	%	$	363	0.49	%	$	334	0.45	%	$	345	0.45	%

OO = Owner Occupied

(1)

Excludes loans that are 100% guaranteed by FHA and also those 100% guaranteed by GNMA where Regions has the right but not the obligation to repurchase. Total 30-89 days past due guaranteed loans excluded were $20 million at 6/30/13, $17 million at 3/31/13, $16 million at 12/31/12, $18 million at 9/30/12, and $15 million at 6/30/12.

(2)

Excludes loans that are 100% guaranteed by FHA and also those 100% guaranteed by GNMA where Regions has the right but not the obligation to repurchase. Total 90 days or more past due guaranteed loans excluded were $96 million at 6/30/13, $98 million at 3/31/13, $87 million at 12/31/12, $71 million at 9/30/12, and $58 million at 6/30/12.

(3)	Regions began excluding 100% guaranteed residential first mortgages from all past due metrics as of 3/31/13. All prior periods presented have been restated to conform to this presentation.

Page 14

Regions Financial Corporation and Subsidiaries

Financial Supplement to Second Quarter 2013 Earnings Release

Troubled Debt Restructurings


	Quarter Ended
(in millions)	6/30/13		3/31/13		12/31/12		9/30/12		6/30/12
Current:
Commercial	$	426	$	486	$	462	$	495	$	450
Investor Real Estate		721		763		844		911		991
Residential First Mortgage		898		891		867		847		845
Home Equity		343		354		356		372		381
Consumer Credit Card		1		1		—		—		—
Other Consumer		31		34		37		41		45

Total Current	$	2,420	$	2,529	$	2,566	$	2,666	$	2,712

Accruing 30-89 DPD:
Commercial	$	18	$	25	$	38	$	51	$	71
Investor Real Estate		26		27		29		44		34
Residential First Mortgage		91		105		117		118		113
Home Equity		33		28		35		33		32
Consumer Credit Card		—		—		—		—		—
Other Consumer		3		3		4		4		4

Total Accruing 30-89 DPD	$	171	$	188	$	223	$	250	$	254

Total Accruing and <90 DPD	$	2,591	$	2,717	$	2,789	$	2,916	$	2,966

Non-accrual or 90+ DPD:
Commercial	$	302	$	289	$	291	$	308	$	315
Investor Real Estate		208		278		251		368		474
Residential First Mortgage		177		191		201		209		198
Home Equity		31		34		37		33		30
Consumer Credit Card		—		—		—		—		—
Other Consumer		—		—		—		—		1

Total Non-accrual or 90+DPD	$	718	$	792	$	780	$	918	$	1,018

Total TDRs	$	3,309	$	3,509	$	3,569	$	3,834	$	3,984

Page 15

Regions Financial Corporation and Subsidiaries

Financial Supplement to Second Quarter 2013 Earnings Release

Reconciliation to GAAP Financial Measures—Continuing Operations

Efficiency Ratios and Fee Income Ratios

The table below presents computations of the efficiency ratio (non-GAAP), which is a measure of productivity, generally calculated as non-interest expense divided by total revenue. The table also shows the fee income ratio (non-GAAP), generally calculated as non-interest income divided by total revenue. Management uses these ratios to monitor performance and believes these measures provide meaningful information to investors. Non-interest expense (GAAP) is presented excluding certain adjustments to arrive at adjusted non-interest expense (non-GAAP), which is the numerator for the efficiency ratio. Non-interest income (GAAP) is presented excluding certain adjustments to arrive at adjusted non-interest income (non-GAAP), which is the numerator for the fee income ratio. Net interest income on a taxable-equivalent basis and non-interest income are added together to arrive at total revenue (GAAP). Adjustments are made to arrive at adjusted total revenue (non-GAAP), which is the denominator for the fee income and efficiency ratios. Regions believes that the exclusion of these adjustments provides a meaningful base for period-to-period comparisons, which management believes will assist investors in analyzing the operating results of the Company and predicting future performance. These non-GAAP financial measures are also used by management to assess the performance of Regions’ business. It is possible that the activities related to the adjustments may recur; however, management does not consider the activities related to the adjustments to be indications of ongoing operations. Regions believes that presentation of these non-GAAP financial measures will permit investors to assess the performance of the Company on the same basis as that applied by management.


		Quarter Ended
($ amounts in millions)		6/30/13			3/31/13			12/31/12			9/30/12			6/30/12			2Q13 vs. 1Q13					2Q13 vs. 2Q12
Continuing Operations
Non-interest expense (GAAP)		$	884		$	842		$	902		$	869		$	842		$	42		5.0	%	$	42		5.0	%
Adjustments:
REIT investment early termination costs			—			—			(42	)		—			—			—		NM			—		NM
Loss on early extinguishment of debt			(56	)		—			(11	)		—			—			(56	)	NM			(56	)	NM
Securities impairment, net			—			—			—			—			(2	)		—		NM			2		-100.0	%

Adjusted non-interest expense (non-GAAP)	A	$	828		$	842		$	849		$	869		$	840		$	(14	)	-1.7	%	$	(12	)	-1.4	%

Net interest income (GAAP)		$	808		$	798		$	818		$	817		$	838		$	10		1.3	%	$	(30	)	-3.6	%
Taxable-equivalent adjustment			13			13			13			13			12			—		NM			1		8.3	%

Net interest income, taxable-equivalent basis			821			811			831			830			850			10		1.2	%		(29	)	-3.4	%

Non-interest income (GAAP)			497			501			536			533			507			(4	)	-0.8	%		(10	)	-2.0	%
Adjustments:
Securities gains, net			(8	)		(15	)		(12	)		(12	)		(12	)		7		-46.7	%		4		-33.3	%
Leveraged lease termination gains, net			—			—			—			—			(7	)		—		NM			7		-100.0	%

Adjusted non-interest income (non-GAAP)	B		489			486			524			521			488			3		0.6	%		1		0.2	%

Adjusted total revenue (non-GAAP)	C	$	1,310		$	1,297		$	1,355		$	1,351		$	1,338		$	13		1.0	%	$	(28	)	-2.1	%

Adjusted efficiency ratio (non-GAAP)	A/C		63.1	%		64.9	%		62.7	%		64.3	%		62.8	%
Adjusted fee income ratio (non-GAAP)	B/C		37.3	%		37.5	%		38.7	%		38.6	%		36.5	%

Page 16

Regions Financial Corporation and Subsidiaries

Financial Supplement to Second Quarter 2013 Earnings Release

Reconciliation to GAAP Financial Measures

Return Ratios, Tangible Common Ratios, Capital

The following tables provide calculations of “return on average assets from continuing operations”, “return on average tangible common stockholders’ equity”, end of period “tangible common stockholders’ equity” ratios and a reconciliation of stockholders’ equity (GAAP) to tangible common stockholders’ equity (non-GAAP), Tier 1 capital (regulatory) and “Tier 1 common equity” (non-GAAP). Tangible common stockholders’ 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. Traditionally, the Federal Reserve and other banking regulatory bodies have assessed a bank’s capital adequacy based on Tier 1 capital, the calculation of which is prescribed in amount by federal banking regulations. In connection with the Company’s Comprehensive Capital Analysis and Review (“CCAR”), these regulators are supplementing their assessment of the capital adequacy of a bank based on a variation of Tier 1 capital, known as Tier 1 common equity. While not prescribed in amount by federal banking regulations (under Basel I), analysts and banking regulators have assessed Regions’ capital adequacy using the tangible common stockholders’ equity and/or the Tier 1 common equity measures. Because tangible common stockholders’ and Tier 1 common equity are not formally defined by GAAP or prescribed in any amount by federal banking regulations (under Basel I), these measures are currently considered to be non-GAAP financial measures and other entities may calculate them differently than Regions’ disclosed calculations. Since analysts and banking regulators may assess Regions’ capital adequacy using tangible common stockholders’ equity and Tier 1 common equity, management believes that it is useful to provide investors the ability to assess Regions’ capital adequacy on these same bases.

Tier 1 common equity is often expressed as a percentage of risk-weighted assets. Under the risk-based capital framework, a company’s balance sheet assets and credit equivalent amounts of off-balance sheet items are assigned to one of four broad risk categories. The aggregated dollar amount in each category is then multiplied by the risk-weighted category. The resulting weighted values from each of the four categories are added together and this sum is the risk-weighted assets total that, as adjusted, comprises the denominator of certain risk-based capital ratios. Tier 1 capital is then divided by this denominator (risk-weighted assets) to determine the Tier 1 capital ratio. Adjustments are made to Tier 1 capital to arrive at Tier 1 common equity (non-GAAP). Tier 1 common equity (non-GAAP) is also divided by the risk-weighted assets to determine the Tier 1 common equity ratio (non-GAAP). The amounts disclosed as risk-weighted assets are calculated consistent with banking regulatory requirements.


		As of and for Quarter Ended
($ amounts in millions, except per share data)		6/30/13			3/31/13			12/31/12			9/30/12			6/30/12
Net income available to common shareholders (GAAP)	D	$	259		$	327		$	261		$	301		$	284
REIT investment early termination costs, net of tax⁽¹⁾			—			—			38			—			—

Adjusted income available to common shareholders (non-GAAP)	E	$	259		$	327		$	299		$	301		$	284

Net income available to common shareholders (GAAP)	D	$	259		$	327		$	261		$	301		$	284
Income (loss) from discontinued operations, net of tax (GAAP)			(1	)		2			(12	)		(11	)		4

Income from continuing operations available to common shareholders (GAAP)	F		260			325			273			312			280
REIT investment early termination costs, net of tax from continuing operations ⁽¹⁾			—			—			38			—			—

Adjusted income from continuing operations available to common shareholders (non-GAAP)	G	$	260		$	325		$	311		$	312		$	280

RETURN ON AVERAGE ASSETS FROM CONTINUING OPERATIONS
Average assets (GAAP)—continuing operations	H	$	118,248		$	119,123		$	121,036		$	121,531		$	122,426
Return on average assets from continuing operations (GAAP)⁽²⁾	F/H		0.88	%		1.11	%		0.90	%		1.02	%		0.92	%

Adjusted return on average assets from continuing operations (non-GAAP)⁽²⁾	G/H		0.88	%		1.11	%		1.02	%		1.02	%		0.92	%

RETURN ON AVERAGE TANGIBLE COMMON STOCKHOLDERS’ EQUITY
Average stockholders’ equity (GAAP)		$	15,644		$	15,552		$	15,265		$	14,663		$	14,347
Less: Average intangible assets (GAAP)			5,141			5,154			5,170			5,195			5,221
Average deferred tax liability related to intangibles (GAAP)			(188	)		(190	)		(193	)		(198	)		(198	)
Average preferred equity (GAAP)			468			476			321			—			113

Average tangible common stockholders’ equity (non-GAAP)	I	$	10,223		$	10,112		$	9,967		$	9,666		$	9,211
Return on average tangible common stockholders’ equity (non-GAAP)⁽²⁾	D/I		10.15	%		13.12	%		10.42	%		12.39	%		12.40	%

Adjusted return on average tangible common stockholders’ equity (non-GAAP)⁽²⁾	E/I		10.15	%		13.12	%		11.93	%		12.39	%		12.40	%

TANGIBLE COMMON RATIOS—CONSOLIDATED
Stockholders’ equity (GAAP)		$	15,329			15,740		$	15,499		$	14,901		$	14,455
Less: Preferred equity (GAAP)			466			474			482			—			—
Intangible assets (GAAP)			5,134			5,147			5,161			5,181			5,207
Deferred tax liability related to intangibles (GAAP)			(187	)		(189	)		(191	)		(195	)		(201	)

Tangible common stockholders’ equity (non-GAAP)	J	$	9,916		$	10,308		$	10,047		$	9,915		$	9,449
Total assets (GAAP)		$	118,707		$	119,718		$	121,347		$	121,798		$	122,345
Less: Intangible assets (GAAP)			5,134			5,147			5,161			5,181			5,207
Deferred tax liability related to intangibles (GAAP)			(187	)		(189	)		(191	)		(195	)		(201	)

Tangible assets (non-GAAP)	K	$	113,760		$	114,760		$	116,377		$	116,812		$	117,339
Shares outstanding—end of quarter	L		1,395			1,413			1,413			1,413			1,413
Tangible common stockholders’ equity to tangible assets (non-GAAP)	J/K		8.72	%		8.98	%		8.63	%		8.49	%		8.04	%
Tangible common book value per share (non-GAAP)	J/L	$	7.11		$	7.29		$	7.11		$	7.02		$	6.69
TIER 1 COMMON RISK-BASED RATIO⁽³⁾—CONSOLIDATED
Stockholders’ equity (GAAP)		$	15,329		$	15,740		$	15,499		$	14,901		$	14,455
Accumulated other comprehensive (income) loss			478			12			(65	)		(202	)		(54	)
Non-qualifying goodwill and intangibles			(4,813	)		(4,819	)		(4,826	)		(4,836	)		(4,852	)
Disallowed deferred tax assets			—			—			(35	)		(238	)		(336	)
Disallowed servicing assets			(30	)		(37	)		(33	)		(33	)		(33	)
Qualifying non-controlling interests			—			93			93			93			92
Qualifying trust preferred securities			3			501			501			846			846

Tier 1 capital (regulatory)		$	10,967		$	11,490		$	11,134		$	10,531		$	10,118
Qualifying non-controlling interests			—			(93	)		(93	)		(93	)		(92	)
Qualifying trust preferred securities			(3	)		(501	)		(501	)		(846	)		(846	)
Preferred stock			(466	)		(474	)		(482	)		—			—

Tier 1 common equity (non-GAAP)	M	$	10,498		$	10,422		$	10,058		$	9,592		$	9,180
Risk-weighted assets (regulatory)	N		93,747			92,787			92,811			91,723			91,779
Tier 1 common risk-based ratio (non-GAAP)	M/N		11.2	%		11.2	%		10.8	%		10.5	%		10.0	%

(1)

In the fourth quarter of 2012, Regions entered into an agreement with a third party investor in Regions Asset Management Company, Inc., pursuant to which the investment was fully redeemed. This resulted in extinguishing a $203 million liability, including accrued, unpaid interest, as well as incurring early termination costs of approximately $42 million on a pre-tax basis ($38 million after tax).

(2)	Annualized

(3)	Current quarter amount and the resulting ratio are estimated

Page 17

Regions Financial Corporation and Subsidiaries

Financial Supplement to Second Quarter 2013 Earnings Release

Statements of Discontinued Operations (unaudited)

On January 11, 2012, Regions entered into a stock purchase agreement to sell Morgan Keegan and Company, Inc. and related affiliates to Raymond James Financial Inc. The sale was closed on April 2, 2012. Regions Investment Management, Inc. (formerly known as Morgan Asset Management, Inc.) and Regions Trust were not included in the sale. In connection with the agreement, the results of the entities being sold are reported as discontinued operations. The following table represents the unaudited condensed results of operations for discontinued operations.


	Quarter Ended
($ amounts in millions)	6/30/13			3/31/13			12/31/12			9/30/12			6/30/12
Non-interest income:
Gain on sale	$	—		$	—		$	3		$	1		$	15
Other		—			—			5			—			—

Total non-interest income		—			—			8			1			15
Non-interest expense:
Professional and legal fees		1			(5	)		27			19			10
Other		1			1			—			1			1

Total non-interest expense		2			(4	)		27			20			11
Income (loss) from discontinued operations before income tax		(2	)		4			(19	)		(19	)		4
Income tax expense (benefit)		(1	)		2			(7	)		(8	)		—

Income (loss) from discontinued operations, net of tax	$	(1	)	$	2		$	(12	)	$	(11	)	$	4

Weighted-average shares outstanding—during quarter ⁽¹⁾:
Basic		1,401			1,413			1,413			1,414			1,414
Diluted		1,401			1,423			1,413			1,414			1,418
Earnings (loss) per common share from discontinued operations:
Basic	$	(0.00	)	$	0.00		$	(0.01	)	$	(0.01	)	$	0.00
Diluted	$	(0.00	)	$	0.00		$	(0.01	)	$	(0.01	)	$	0.00

(1)	In a quarter where there is a loss, basic and diluted weighted-average common shares outstanding are the same.

Page 18

Regions Financial Corporation and Subsidiaries

Financial Supplement to Second Quarter 2013 Earnings Release

Forward-Looking Statements

This presentation may include forward-looking statements which reflect Regions’ current views with respect to future events and financial performance. The Private Securities Litigation Reform Act of 1995 (the “Act”) provides a “safe harbor” for forward-looking statements which are identified as such and are accompanied by the identification of important factors that could cause actual results to differ materially from the forward-looking statements. For these statements, we, together with our subsidiaries, unless the context implies otherwise, claim the protection afforded by the safe harbor in the Act. 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 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, uncertainties and other factors that may cause actual results to differ materially from the views, beliefs and projections expressed in such statements. These risks, uncertainties and other factors include, but are not limited to, those described below:

› The Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) became law in July 2010, and a number of legislative, regulatory and tax proposals remain pending. All of the foregoing may have significant effects on Regions and the financial services industry, the exact nature and extent of which cannot be determined at this time.

›Possible additional loan losses, impairment of goodwill and other intangibles, and adjustment of valuation allowances on deferred tax assets and the impact on earnings and capital.

›Possible changes in interest rates may increase funding costs and reduce earning asset yields, thus reducing margins. Increases in benchmark interest rates could also increase debt service requirements for customers whose terms include a variable interest rate, which may negatively impact the ability of borrowers to pay as contractually obligated.

›Possible adverse changes in general economic and business conditions in the United States in general and in the communities Regions serves in particular.

›Possible changes in the creditworthiness of customers and the possible impairment of the collectability of loans.

›Possible changes in trade, monetary and fiscal policies, laws and regulations and other activities of governments, agencies, and similar organizations, may have an adverse effect on business.

›Possible regulations issued by the Consumer Financial Protection Bureau or other regulators which might adversely impact Regions’ business model or products and services.

›Regions’ ability to take certain capital actions, including paying dividends and any plans to increase common stock dividends, repurchase common stock under current or future programs, or issue or redeem preferred stock or other regulatory capital instruments, is subject to the review of such proposed actions by the Federal Reserve as part of Regions’ comprehensive capital plan for the applicable period in connection with the regulators’ Comprehensive Capital Analysis and Review (CCAR) process and to the acceptance of such capital plan and non-objection to such capital actions by the Federal Reserve.

›Possible stresses in the financial and real estate markets, including possible deterioration in property values.

›Regions’ 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 Regions’ business.

›Regions’ ability to expand into new markets and to maintain profit margins in the face of competitive pressures.

›Regions’ ability to develop competitive new products and services in a timely manner and the acceptance of such products and services by Regions’ customers and potential customers.

›Cyber-security risks, including “denial of service,” “hacking” and “identity theft,” that could adversely affect our business and financial performance, or our reputation.

›Regions’ ability to keep pace with technological changes.

›Regions’ ability to effectively identify and manage credit risk, interest rate risk, market risk, operational risk, legal risk, liquidity risk, reputational risk, counterparty risk, international risk, regulatory risk, and compliance risk.

›Regions’ ability to ensure adequate capitalization which is impacted by inherent uncertainties in forecasting credit losses.

›The cost and other effects of material contingencies, including litigation contingencies, and any adverse judicial, administrative or arbitral rulings or proceedings.

›The effects of increased competition from both banks and non-banks.

›The effects of geopolitical instability and risks such as terrorist attacks.

›Regions’ ability to identify and address data security breaches.

›Possible changes in consumer and business spending and saving habits could affect Regions’ ability to increase assets and to attract deposits.

›The effects of weather and natural disasters such as floods, droughts, wind, tornados and hurricanes, and the effects of man-made disasters.

›Possible downgrades in ratings issued by rating agencies.

›Possible changes in the speed of loan prepayments by Regions’ customers and loan origination or sales volumes.

›Possible acceleration of prepayments on mortgage-backed securities due to low interest rates and the related acceleration of premium amortization on those securities.

›The effects of problems encountered by larger or similar financial institutions that adversely affect Regions or the banking industry generally.

›Regions’ ability to receive dividends from its subsidiaries.

›The effects of the failure of any component of Regions’ business infrastructure which is provided by a third party.

›Changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board or other regulatory agencies.

›The effects of any damage to Regions’ reputation resulting from developments related to any of the items identified above.

The foregoing list of factors is not exhaustive. For discussion of these and other factors that may cause actual results to differ from expectations, look under the captions “Forward-Looking Statements” and “Risk Factors” of Regions’ Annual Report on Form 10-K for the year ended December 31, 2012 and the “Foward-Looking Statements” section of Regions’ Quarterly Report on Form 10-Q for the quarter ended March 31, 2013, as filed with the Securities and Exchange Commission.

The words “believe,” “expect,” “anticipate,” “project,” and similar expressions often signify forward-looking statements. You should not place undue reliance on any forward-looking statements, which speak only as of the date made. We assume no obligation to update or revise any forward-looking statements that are made from time to time.

Regions’ Investor Relations contact is List Underwood at (205) 801-0265; Regions’ Media contact is Tim Deighton at (205) 264-4551

Page 19

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