Form 8-K - Current report

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(D) OF

THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): October 20, 2023

REGIONS FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter)

Delaware

001-34034

63-0589368

(State or other jurisdiction
of incorporation)

(Commission
File Number)

(IRS Employer
Identification No.)

1900 Fifth Avenue North

Birmingham, Alabama 35203

(Address, including zip code, of principal executive office)

Registrant’s telephone number, including area code: (800) 734-4667

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:


☐			Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐			Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐			Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐			Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, $.01 par value

New York Stock Exchange

Depositary Shares, each representing a 1/40th Interest in a Share of

6.375% Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series B

RF PRB

New York Stock Exchange

Depositary Shares, each representing a 1/40th Interest in a Share of

5.700% Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series C

RF PRC

New York Stock Exchange

Depositary Shares, each representing a 1/40th Interest in a Share of

4.45% Non-Cumulative Perpetual Preferred Stock, Series E

RF PRE

New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR 230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR 240.12b-2).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Item 2.02 Results of Operations and Financial Condition.

Item 7.01 Regulation FD Disclosure.

On October 20, 2023, Regions Financial Corporation (“Regions”) issued a press release announcing its preliminary results of operations for the quarter ended September 30, 2023. A copy of the press release is attached hereto as Exhibit 99.1. Supplemental financial information for the quarter ended September 30, 2023 is attached as Exhibit 99.2. Executives from Regions will review the results via a live audio webcast at 10:00 a.m. Eastern time on October 20, 2023. A copy of a visual presentation that will be a part of that review is attached as Exhibit 99.3. All of the attached exhibits are incorporated herein by reference and may also be found on Regions’ website at www.regions.com. An archived recording of the webcast will be available for a limited time on the Investor Relations page of that website.

In accordance with general instruction B.2. of Form 8-K, this information is being furnished and shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as may be expressly set forth by specific reference in any such filing.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.


Exhibit Number						Description of Exhibit

99.1						Press Release dated October 20, 2023.
99.2						Supplemental Financial Information for the Quarter Ended September 30, 2023.
99.3						Visual Presentation of October 20, 2023.
104						Cover Page Interactive Data (embedded within the Inline XBRL document).

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.



REGIONS FINANCIAL CORPORATION

By:						/s/ Karin K. Allen
Name:						Karin K. Allen
Title:						Executive Vice President and Assistant Controller (Chief Accounting Officer and Authorized Officer)

Date: October 20, 2023

Exhibit 99.1

Media Contact:

Investor Relations Contact:

Jeremy King

Dana Nolan

(205) 264-4551

(205) 264-7040

Strong balance sheet. Consistent, sustainable performance. Regions reports third quarter 2023 earnings of $465 million, earnings per diluted share of $0.49

BIRMINGHAM, Ala. - (BUSINESS WIRE) - Oct. 20, 2023 - Regions Financial Corp. (NYSE:RF) today reported earnings for the third quarter ended Sept. 30, 2023. The company reported third quarter net income available to common shareholders of $465 million and earnings per diluted share of $0.49. Compared to the third quarter of 2022, net income available to common shareholders increased 15 percent while total revenue remained relatively stable at $1.9 billion on both a reported and adjusted basis(1).

“We are pleased with our third quarter core performance," said John Turner, President and CEO of Regions Financial Corp. “Our results reflect the strength and diversity of our balance sheet, robust liquidity position, and prudent risk management. Our protective hedging strategies position us for success in any rate environment and support our commitment to generating consistent, sustainable long-term performance. While the industry continues to face economic and regulatory uncertainty, we are confident in our ability to adapt to the changing landscape while continuing to deliver top-quartile returns through the cycle. Our confidence comes from having a strategic plan to drive soundness, profitability and growth and a talented team focused on executing it."

SUMMARY OF THIRD QUARTER 2023 RESULTS:


	Quarter Ended
(amounts in millions, except per share data)	9/30/2023		6/30/2023		9/30/2022
Net income	$	490	$	581	$	429
Preferred dividends and other	25		25		25
Net income available to common shareholders	$	465	$	556	$	404

Weighted-average diluted shares outstanding	940		939		940
Actual shares outstanding—end of period	939		939		934

Diluted earnings per common share	$	0.49	$	0.59	$	0.43

Selected items impacting earnings:
Pre-tax adjusted items(1):
Adjustments to non-interest expense(1)	$	(4)	$	(1)	$	(182)
Adjustments to non-interest income(1)	(1)		—		(1)
Net provision benefit from sale of unsecured consumer loans***	—		—		31
Total pre-tax adjusted items(1)	$	(5)	$	(1)	$	(152)




Diluted EPS impact*	$	—	$	—	$	(0.13)

Pre-tax additional selected items**:
Provision in excess of net charge-offs****	$	(44)	$	(37)	$	(36)
Incremental provision for hurricane-related allowance for loan losses	—		—		(20)
Capital markets income (loss) - CVA/DVA	(3)		(9)		21
Residential MSR net hedge performance	4		(4)		2
Pension settlement charges	(7)		—		—
Incremental operational losses related to fraud	(53)		(82)		—

* Based on income taxes at an approximate 25% incremental rate.

** Items impacting results or trends during the period, but are not considered non-GAAP adjustments.

*** The net provision benefit of $31 million in third quarter of 2022 includes a $94 million reserve release offset by a $63 million fair value mark recorded through charge-offs. While reflected as a pre-tax adjusted item, the net provision benefit is not included in a non-GAAP reconciliation as it is not a non-GAAP metric and was not used in the determination of any non-GAAP metrics.

**** The third quarter of 2022 provision in excess of net charge-offs excludes the $31 million net provision benefit from the sale of unsecured consumer loans and the $20 million provision for hurricane-related allowance for loan losses.

Non-GAAP adjusted items(1) impacting the company's earnings are identified to assist investors in analyzing Regions' operating results on the same basis as that applied by management and provide a basis to predict future performance.

Total revenue


	Quarter Ended
($ amounts in millions)	9/30/2023			6/30/2023			9/30/2022			3Q23 vs. 2Q23				3Q23 vs. 3Q22
Net interest income	$	1,291		$	1,381		$	1,262		$	(90)	(6.5)	%	$	29	2.3	%


Taxable equivalent adjustment	13			12			12			1		8.3	%	1		8.3	%
Net interest income, taxable equivalent basis	$	1,304		$	1,393		$	1,274		$	(89)	(6.4)	%	$	30	2.4	%
Net interest margin (FTE)	3.73		%	4.04		%	3.53		%


Non-interest income:
Service charges on deposit accounts	$	142		$	152		$	156		(10)		(6.6)	%	(14)		(9.0)	%
Card and ATM fees	126			130			126			(4)		(3.1)	%	—		—	%
Wealth management income	112			110			108			2		1.8	%	4		3.7	%
Capital markets income	64			68			93			(4)		(5.9)	%	(29)		(31.2)	%
Mortgage income	28			26			37			2		7.7	%	(9)		(24.3)	%
Commercial credit fee income	24			28			26			(4)		(14.3)	%	(2)		(7.7)	%
Bank-owned life insurance	20			19			15			1		5.3	%	5		33.3	%
Securities gains (losses), net	(1)			—			(1)			(1)		NM		—		—	%

Market value adjustments on employee benefit assets*	4			—			(5)			4		NM		9		180.0	%


Other	47			43			50			4		9.3	%	(3)		(6.0)	%
Non-interest income	$	566		$	576		$	605		$	(10)	(1.7)	%	$	(39)	(6.4)	%
Total revenue	$	1,857		$	1,957		$	1,867		$	(100)	(5.1)	%	$	(10)	(0.5)	%

Adjusted total revenue (non-GAAP)(1)	$	1,858		$	1,957		$	1,868		$	(99)	(5.1)	%	$	(10)	(0.5)	%

NM - Not Meaningful

* These market value adjustments relate to assets held for employee and director benefits that are offset within salaries and employee benefits and other non-interest expense.

Total revenue of approximately $1.9 billion decreased 5 percent on both a reported and adjusted basis(1) compared to the second quarter of 2023. Consistent with the company's expectations, net interest income decreased during the quarter to $1.3 billion or 6.5 percent compared to the second quarter attributable to accelerating deposit and funding costs and a portion of the company's forward starting interest rate hedges becoming active, partially offset by the impact of higher market interest rates on asset yields. Total net interest margin decreased 31 basis points to 3.73 percent.

Non-interest income decreased 2 percent on both a reported and adjusted basis(1) compared to the second quarter of 2023 primarily driven by decreases in service charges and capital markets income. Service charges income decreased 7 percent driven primarily by implementation of the no-cost Regions Overdraft Grace feature. The additional financial benefits and flexibility provided to Regions' customers from account features and enhancements over the past three years, has resulted in an approximate 45 percent reduction in both the number of occurrences and fees assessed. Capital markets income decreased 6 percent attributable primarily to lower real estate capital markets income offset partially by growth in merger and acquisitions advisory services. Excluding the impact of CVA/DVA, capital markets income decreased 13 percent. Mortgage income increased during the quarter primarily attributable to higher servicing income associated with a bulk purchase of the rights to service $6.2 billion of residential mortgage loans that closed early in the third quarter.

Non-interest expense


	Quarter Ended
($ amounts in millions)	9/30/2023		6/30/2023		9/30/2022		3Q23 vs. 2Q23				3Q23 vs. 3Q22
Salaries and employee benefits	$	589	$	603	$	593	$	(14)	(2.3)	%	$	(4)	(0.7)	%
Equipment and software expense	107		101		98		6		5.9	%	9		9.2	%
Net occupancy expense	72		73		76		(1)		(1.4)	%	(4)		(5.3)	%
Outside services	39		42		40		(3)		(7.1)	%	(1)		(2.5)	%
Professional, legal and regulatory expenses	27		20		199		7		35.0	%	(172)		(86.4)	%
Marketing	26		26		29		—		—	%	(3)		(10.3)	%
FDIC insurance assessments	27		29		16		(2)		(6.9)	%	11		68.8	%
Credit/checkcard expenses	16		15		13		1		6.7	%	3		23.1	%
Operational losses	75		95		13		(20)		(21.1)	%	62		476.9	%
Branch consolidation, property and equipment charges	1		1		3		—		—	%	(2)		(66.7)	%
Visa class B shares expense	5		9		3		(4)		(44.4)	%	2		66.7	%


Other	109		97		87		12		12.4	%	22		25.3	%
Total non-interest expense	$	1,093	$	1,111	$	1,170	$	(18)	(1.6)	%	$	(77)	(6.6)	%
Total adjusted non-interest expense(1)	$	1,089	$	1,110	$	988	$	(21)	(1.9)	%	$	101	10.2	%

NM - Not Meaningful

Non-interest expense decreased 2 percent on both a reported and adjusted basis(1) compared to the second quarter of 2023. Operational losses decreased 21 percent; however, during the quarter, the company continued to experience elevated fraud losses. Salaries and benefits also decreased 2 percent driven primarily by lower incentive compensation and payroll taxes.

The company's third quarter efficiency ratio was 58.5 percent on a reported and 58.2 percent on an adjusted basis(1). The effective tax rate was 20.9 percent in the third quarter.

Loans and Leases


	Average Balances

($ amounts in millions)	3Q23		2Q23		3Q22		3Q23 vs. 2Q23				3Q23 vs. 3Q22



Commercial and industrial	$	51,721	$	52,039	$	49,120	$	(318)	(0.6)	%	$	2,601	5.3%


Commercial real estate—owner-occupied	5,100		5,197		5,441		(97)		(1.9)	%	(341)		(6.3)%
Investor real estate	8,617		8,482		7,879		135		1.6	%	738		9.4%
Business Lending	65,438		65,718		62,440		(280)		(0.4)	%	2,998		4.8%
Residential first mortgage	19,914		19,427		18,125		487		2.5	%	1,789		9.9%


Home equity	5,688		5,785		6,050		(97)		(1.7)	%	(362)		(6.0)%

Consumer credit card	1,245		1,217		1,176		28		2.3	%	69		5.9%
Other consumer—exit portfolios	384		450		716		(66)		(14.7)	%	(332)		(46.4)%
Other consumer*	6,116		5,984		6,177		132		2.2	%	(61)		(1.0)%
Consumer Lending	33,347		32,863		32,244		484		1.5	%	1,103		3.4%
Total Loans	$	98,785	$	98,581	$	94,684	$	204	0.2	%	$	4,101	4.3%

NM - Not meaningful.

* Other consumer loans includes EnerBank (Regions' point of sale home improvement portfolio).

Average loans and leases remained relatively stable compared to the prior quarter. Average business loans decreased modestly, offset by a 1 percent increase in consumer loans. Commercial loan line utilization levels ended the quarter at approximately 43.3 percent, decreasing 20 basis points over the prior quarter, while line commitments decreased 1 percent. The growth in consumer loans was driven by both residential first mortgage and EnerBank.

Deposits


	Average Balances

($ amounts in millions)	3Q23		2Q23		3Q22		3Q23 vs. 2Q23			3Q23 vs. 3Q22
Total interest-bearing deposits	$	80,472	$	78,361	$	79,712	$	2,111	2.7%	$	760	1.0%
Non-interest-bearing deposits	44,748		47,178		55,806		(2,430)		(5.2)%	(11,058)		(19.8)%




Total Deposits	$	125,220	$	125,539	$	135,518	$	(319)	(0.3)%	$	(10,298)	(7.6)%

($ amounts in millions)	3Q23		2Q23		3Q22		3Q23 vs. 2Q23			3Q23 vs. 3Q22
Consumer Bank Segment	$	80,036	$	80,999	$	84,741	$	(963)	(1.2)%	$	(4,705)	(5.6)%
Corporate Bank Segment	34,924		34,860		39,058		64		0.2%	(4,134)		(10.6)%
Wealth Management Segment	7,451		7,470		9,467		(19)		(0.3)%	(2,016)		(21.3)%
Other	2,809		2,210		2,252		599		27.1%	557		24.7%
Total Deposits	$	125,220	$	125,539	$	135,518	$	(319)	(0.3)%	$	(10,298)	(7.6)%


	Ending Balances as of
							9/30/2023			9/30/2023
($ amounts in millions)	9/30/2023		6/30/2023		9/30/2022		vs. 6/30/2023			vs. 9/30/2022
Consumer Bank Segment	$	80,980	$	81,554	$	85,455	$	(574)	(0.7)%	$	(4,475)	(5.2)%
Corporate Bank Segment	34,650		35,332		38,293		(682)		(1.9)%	(3,643)		(9.5)%
Wealth Management Segment	7,791		7,176		9,400		615		8.6%	(1,609)		(17.1)%
Other	2,778		2,897		2,230		(119)		(4.1)%	548		24.6%
Total Deposits	$	126,199	$	126,959	$	135,378	$	(760)	(0.6)%	$	(9,179)	(6.8)%

The company's deposit base continues to be a source of strength and a differentiator in liquidity and margin performance. Consistent with the company's expectations, total ending and average deposits remained relatively stable during the third quarter of 2023 compared to the second quarter of 2023, while also experiencing continued remixing out of non-interest-bearing products into interest-bearing products. Declines in average Consumer deposits were partially offset by stability or growth in the other segments.

Asset quality


	As of and for the Quarter Ended
($ amounts in millions)	9/30/2023	6/30/2023	9/30/2022
Allowance for credit losses (ACL) at period end	$1,677	$1,633	$1,539
ACL/Loans, net	1.70%	1.65%	1.63%
ALL/Loans, net	1.56%	1.53%	1.50%
Allowance for credit losses to non-performing loans, excluding loans held for sale	261%	332%	311%
Allowance for loan losses to non-performing loans, excluding loans held for sale	241%	308%	287%
Provision for credit losses	$145	$118	$135
Net loans charged-off	$101	$81	$110
Adjusted net loan charge-offs (non-GAAP)(1)	$101	$81	$47
Net loans charged-off as a % of average loans, annualized	0.40%	0.33%	0.46%
Adjusted net loan charge-offs as a % of average loans, annualized (non-GAAP) (1)	0.40%	0.33%	0.19%
Non-performing loans, excluding loans held for sale/Loans, net	0.65%	0.50%	0.52%
NPAs (ex. 90+ past due)/Loans, foreclosed properties, and non-performing loans held for sale	0.67%	0.51%	0.54%
NPAs (inc. 90+ past due)/Loans, foreclosed properties, and non-performing loans held for sale*	0.81%	0.64%	0.65%

Total Criticized Loans—Business Services**	$4,167	$4,039	$2,771

* Excludes guaranteed residential first mortgages that are 90+ days past due and still accruing.

** Business services represents the combined total of commercial and investor real estate loans.

Overall asset quality normalized further during the quarter. Business services criticized loans increased 3 percent, while total delinquencies and non-performing loans as a percentage of total loans increased 15 basis points each. Total net charge-offs for the quarter were $101 million, or 40 basis points of average loans, due to elevated losses associated with a consumer point of sale program the company has previously discontinued, as well as

lower commercial recoveries relative to the second quarter.

The increase to the allowance for credit losses compared to the second quarter was attributable primarily to adverse risk migration and continued credit quality normalization, as well as a build in model or qualitative adjustments for incremental risk in certain portfolios.

The allowance for credit loss ratio increased 5 basis points to 1.70 percent of total loans, while the allowance as a percentage of nonperforming loans decreased to 261 percent.

Capital and liquidity


	As of and for Quarter Ended
	9/30/2023	6/30/2023	9/30/2022

Common Equity Tier 1 ratio(2)	10.3%	10.1%	9.3%
Tier 1 capital ratio(2)	11.6%	11.4%	10.6%
Tangible common stockholders’ equity to tangible assets (non-GAAP)(1)	5.82%	6.09%	5.01%
Tangible common book value per share (non-GAAP)(1)*	$9.16	$9.72	$8.15
Loans, net of unearned income, to total deposits	78.4%	78.1%	70.0%

* Tangible common book value per share includes the impact of quarterly earnings and changes to market value adjustments within accumulated other comprehensive income, as well as continued capital returns.

Regions maintains a solid capital position with estimated capital ratios remaining well above current regulatory requirements. The Common Equity Tier 1(2) and Tier 1(2) ratios were estimated at 10.3 percent and 11.6 percent, respectively, at quarter-end.

During the third quarter, the company declared $225 million in dividends to common shareholders and did not repurchase any shares of Regions' common stock.

The company's liquidity position also remains robust as of Sept. 30, 2023, with total available liquidity of approximately $56.8 billion, which includes cash held at the Federal Reserve, FHLB borrowing capacity, unencumbered securities, borrowing capacity at the Federal Reserve's discount window, and the Federal Reserve's Bank Term Lending Plan facility. The loan-to-deposit ratio totaled 78 percent at the end of the quarter.

(1)Non-GAAP; refer to pages 12, 16, 17, 18 and 20 of the financial supplement to this earnings release for reconciliations.

(2)Current quarter Common Equity Tier 1, and Tier 1 capital ratios are estimated.

Conference Call

In addition to the live audio webcast at 10 a.m. ET on Oct. 20, 2023, an archived recording of the webcast will be available at the Investor Relations page of ir.regions.com following the live event.

About Regions Financial Corporation

Regions Financial Corporation (NYSE:RF), with $154 billion in assets, is a member of the S&P 500 Index and is one of the nation’s largest full-service providers of consumer and commercial banking, wealth management, and mortgage products and services. Regions serves customers across the South, Midwest and Texas, and through its subsidiary, Regions Bank, operates approximately 1,250 banking offices and more than 2,000 ATMs. Regions Bank is an Equal Housing Lender and Member FDIC. Additional information about Regions and its full line of products and services can be found at www.regions.com.

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.

•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.

•The impact of pandemics, including the COVID-19 pandemic, on our businesses, operations, and financial results and conditions. The duration and severity of any 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.

•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 declining 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.

•Rising interest rates could negatively impact the value of our portfolio of investment securities.

•The loss of value of our investment portfolio could negatively impact market perceptions of us.

•The effects of social media on market perceptions of us and banks generally.

•Volatility in the financial services industry (including failures or rumors of failures of other depository institutions), along with actions taken by governmental agencies to address such turmoil, could affect the ability of depository institutions, including us, to attract and retain depositors and to borrow or raise capital.

•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, such as special FDIC assessments, any new long-term debt requirements, 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.

•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.

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” in Regions’ Annual Report on Form 10-K for the year ended December 31, 2022 and in Regions’ subsequent filings 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.

Use of non-GAAP financial measures

Management uses pre-tax pre-provision income (non-GAAP) and adjusted pre-tax pre-provision income (non-GAAP), as well as the adjusted efficiency ratio (non-GAAP) and the adjusted fee income ratio (non-GAAP) 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. Adjusted non-interest income (non-GAAP) and adjusted non-interest expense (non-GAAP) are used to determine adjusted pre-tax pre-provision income (non-GAAP). Net interest income (GAAP) 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. Net loan charge-offs (GAAP) are presented excluding adjustments to arrive at adjusted net loan-charge offs (non-GAAP). Adjusted net loan charge-offs as a percentage of average loans (non-GAAP) are calculated as adjusted net loan charge-offs (non-GAAP) divided by average loans (GAAP) and annualized. Regions believes that the exclusion of these adjustments provides a meaningful basis 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.

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. Analysts and banking regulators have assessed Regions’ capital adequacy using the tangible common stockholders’ equity measure. Because tangible common stockholders’ equity is not formally defined by GAAP or prescribed in any amount by federal banking regulations it is currently considered to be a non-GAAP financial measure and other entities may calculate it differently than Regions’ disclosed calculations. Since analysts and banking regulators may assess Regions’ capital adequacy using tangible common stockholders’ equity, management believes that it is useful to provide investors the ability to assess Regions’ capital adequacy on this same basis.

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 earnings that excludes selected items does not represent the amount that effectively accrues directly to stockholders.

Management and the Board of Directors utilize non-GAAP measures as follows:

•Preparation of Regions' operating budgets

•Monthly financial performance reporting

•Monthly close-out reporting of consolidated results (management only)

•Presentation to investors of company performance

•Metrics for incentive compensation

Regions’ Investor Relations contact is Dana Nolan at (205) 264-7040; Regions’ Media contact is Jeremy King at (205) 264-4551.

Exhibit 99.2

Regions Financial Corporation and Subsidiaries

Financial Supplement (unaudited)

Third Quarter 2023

Regions Financial Corporation and Subsidiaries

Financial Supplement (unaudited) to Third Quarter 2023 Earnings Release

Table of Contents



						Page

Financial Highlights						1

Selected Ratios and Other Information*						2

Consolidated Balance Sheets						3

Loans						4

Deposits						6

Consolidated Statements of Income						8

Consolidated Average Daily Balances and Yield / Rate Analysis						10

Pre-Tax Pre-Provision Income ("PPI")* and Adjusted PPI*						12

Non-Interest Income, Mortgage Income, Wealth Management Income and Capital Markets Income						13

Non-Interest Expense						15

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						16

Credit Quality
Allowance for Credit Losses, Net Charge-Offs and Related Ratios, Adjusted Net Charge-Offs and Related Ratios						19
Non-Accrual Loans (excludes loans held for sale), Early and Late Stage Delinquencies						21

Forward-Looking Statements						22

*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 Third Quarter 2023 Earnings Release

Financial Highlights


	Quarter Ended
($ amounts in millions, except per share data)	9/30/2023			6/30/2023			3/31/2023			12/31/2022			9/30/2022
Earnings Summary
Interest income - taxable equivalent	$	1,779		$	1,751		$	1,654		$	1,565		$	1,355
Interest expense - taxable equivalent	475			358			224			151			81
Net interest income - taxable equivalent	1,304			1,393			1,430			1,414			1,274
Less: Taxable-equivalent adjustment	13			12			13			13			12
Net interest income	1,291			1,381			1,417			1,401			1,262
Provision for credit losses	145			118			135			112			135
Net interest income after provision for credit losses	1,146			1,263			1,282			1,289			1,127
Non-interest income	566			576			534			600			605
Non-interest expense	1,093			1,111			1,027			1,017			1,170
Income before income taxes	619			728			789			872			562
Income tax expense	129			147			177			187			133
Net income	$	490		$	581		$	612		$	685		$	429
Net income available to common shareholders	$	465		$	556		$	588		$	660		$	404



Weighted-average shares outstanding—during quarter:
Basic	939			939			935			934			934
Diluted	940			939			942			941			940

Earnings per common share - basic	$	0.49		$	0.59		$	0.63		$	0.71		$	0.43
Earnings per common share - diluted	$	0.49		$	0.59		$	0.62		$	0.70		$	0.43

Balance Sheet Summary
At quarter-end
Loans, net of unearned income	$	98,942		$	99,191		$	98,057		$	97,009		$	94,711
Allowance for credit losses	(1,677		)	(1,633		)	(1,596		)	(1,582		)	(1,539		)
Assets	153,624			155,656			154,135			155,220			157,798
Deposits	126,199			126,959			128,460			131,743			135,378
Long-term borrowings	4,290			4,293			2,307			2,284			2,274
Shareholders' equity	16,100			16,639			16,883			15,947			15,173
Average balances
Loans, net of unearned income	$	98,785		$	98,581		$	97,277		$	95,752		$	94,684
Assets	153,484			153,774			153,082			155,668			158,422
Deposits	125,220			125,539			129,042			133,007			135,518
Long-term borrowings	4,295			3,517			2,286			2,275			2,319
Shareholders' equity	16,468			16,892			16,457			15,442			16,473

Regions Financial Corporation and Subsidiaries

Financial Supplement (unaudited) to Third Quarter 2023 Earnings Release

Selected Ratios and Other Information


	As of and for Quarter Ended
	9/30/2023			6/30/2023			3/31/2023			12/31/2022			9/30/2022
Return on average assets* (1)	1.26		%	1.52		%	1.62		%	1.75		%	1.07		%
Return on average common shareholders' equity*	12.45		%	14.65		%	16.10		%	19.01		%	10.82		%
Return on average tangible common shareholders’ equity (non-GAAP)* (2)	20.58		%	23.82		%	26.70		%	33.20		%	18.02		%
Return on average tangible common shareholders’ equity excluding AOCI (non-GAAP)* (2)	14.58		%	18.14		%	19.85		%	22.91		%	14.42		%
Efficiency ratio	58.5		%	56.4		%	52.3		%	50.5		%	62.3		%
Adjusted efficiency ratio (non-GAAP) (2)	58.2		%	56.4		%	52.2		%	51.6		%	52.6		%
Dividend payout ratio (3)	48.5		%	33.7		%	31.8		%	28.3		%	46.2		%
Common book value per share	$	15.38		$	15.95		$	16.29		$	15.29		$	14.46
Tangible common book value per share (non-GAAP) (2)	$	9.16		$	9.72		$	10.01		$	9.00		$	8.15
Total equity to total assets	10.48		%	10.69		%	10.95		%	10.27		%	9.62		%
Tangible common shareholders’ equity to tangible assets (non-GAAP) (2)	5.82		%	6.09		%	6.31		%	5.63		%	5.01		%
Common equity (4)	$	13,056		$	12,786		$	12,420		$	12,066		$	11,554
Total risk-weighted assets (4)	$	126,667		$	126,947		$	125,747		$	125,752		$	124,395
Common equity Tier 1 ratio (4)	10.3		%	10.1		%	9.9		%	9.6		%	9.3		%
Tier 1 capital ratio (4)	11.6		%	11.4		%	11.2		%	10.9		%	10.6		%
Total risk-based capital ratio (4)	13.4		%	13.1		%	12.9		%	12.5		%	12.3		%
Leverage ratio (4)	9.7		%	9.5		%	9.3		%	8.9		%	8.5		%
Effective tax rate	20.9		%	20.2		%	22.4		%	21.5		%	23.7		%
Allowance for credit losses as a percentage of loans, net of unearned income	1.70		%	1.65		%	1.63		%	1.63		%	1.63		%
Allowance for credit losses to non-performing loans, excluding loans held for sale	261		%	332		%	288		%	317		%	311		%
Net interest margin (FTE)*	3.73		%	4.04		%	4.22		%	3.99		%	3.53		%

Loans, net of unearned income, to total deposits	78.4		%	78.1		%	76.3		%	73.6		%	70.0		%
Net charge-offs as a percentage of average loans*	0.40		%	0.33		%	0.35		%	0.29		%	0.46		%
Adjusted net charge-offs as a percentage of average loans (non-GAAP) * (2)	0.40		%	0.33		%	0.35		%	0.29		%	0.19		%
Non-performing loans, excluding loans held for sale, as a percentage of loans	0.65		%	0.50		%	0.56		%	0.52		%	0.52		%
Non-performing assets (excluding loans 90 days past due) as a percentage of loans, foreclosed properties, and non-performing loans held for sale	0.67		%	0.51		%	0.58		%	0.53		%	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)	0.81		%	0.64		%	0.71		%	0.75		%	0.65		%
Associate headcount—full-time equivalent	20,257			20,349			20,113			20,073			19,950
ATMs	2,022			2,025			2,034			2,039			2,043
Branch Statistics
Full service	1,243			1,245			1,251			1,252			1,259
Drive-through/transaction service only	29			31			34			34			35
Total branch outlets	1,272			1,276			1,285			1,286			1,294

*Annualized

(1)Calculated by dividing net income by average assets.

(2)See reconciliation of GAAP to non-GAAP Financial Measures that begin on pages 12, 16, 17, 18 and 20.

(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 21 for amounts related to these loans.

Regions Financial Corporation and Subsidiaries

Financial Supplement (unaudited) to Third Quarter 2023 Earnings Release

Consolidated Balance Sheets


	As of
($ amounts in millions)	9/30/2023		6/30/2023		3/31/2023		12/31/2022		9/30/2022
Assets:
Cash and due from banks	$	1,554	$	2,480	$	2,395	$	1,997	$	2,117
Interest-bearing deposits in other banks	7,462		7,406		6,438		9,230		13,549
Debt securities held to maturity	763		777		790		801		817
Debt securities available for sale	26,228		27,296		28,230		27,933		28,126
Loans held for sale	459		554		564		354		720
Loans, net of unearned income	98,942		99,191		98,057		97,009		94,711
Allowance for loan losses	(1,547)		(1,513)		(1,472)		(1,464)		(1,418)
Net loans	97,395		97,678		96,585		95,545		93,293
Other earning assets	1,552		1,563		1,335		1,308		1,341
Premises and equipment, net	1,616		1,622		1,705		1,718		1,744
Interest receivable	625		575		538		511		424
Goodwill	5,733		5,733		5,733		5,733		5,739
Residential mortgage servicing rights at fair value (MSRs)	932		801		790		812		809
Other identifiable intangible assets, net	216		226		238		249		266
Other assets	9,089		8,945		8,794		9,029		8,853
Total assets	$	153,624	$	155,656	$	154,135	$	155,220	$	157,798
Liabilities and Equity:
Deposits:
Non-interest-bearing	$	44,640	$	46,898	$	49,647	$	51,348	$	54,996
Interest-bearing	81,559		80,061		78,813		80,395		80,382
Total deposits	126,199		126,959		128,460		131,743		135,378
Borrowed funds:
Short-term borrowings	2,000		3,000		2,000		—		—
Long-term borrowings	4,290		4,293		2,307		2,284		2,274

Other liabilities	5,010		4,743		4,466		5,242		4,973
Total liabilities	137,499		138,995		137,233		139,269		142,625
Equity:
Preferred stock, non-cumulative perpetual	1,659		1,659		1,659		1,659		1,659

Common stock	10		10		10		10		10
Additional paid-in capital	11,996		11,979		11,996		11,988		11,976
Retained earnings	8,042		7,802		7,433		7,004		6,531
Treasury stock, at cost	(1,371)		(1,371)		(1,371)		(1,371)		(1,371)
Accumulated other comprehensive income (loss), net	(4,236)		(3,440)		(2,844)		(3,343)		(3,632)
Total shareholders’ equity	16,100		16,639		16,883		15,947		15,173
Noncontrolling interest	25		22		19		4		—
Total equity	16,125		16,661		16,902		15,951		15,173
Total liabilities and equity	$	153,624	$	155,656	$	154,135	$	155,220	$	157,798

Regions Financial Corporation and Subsidiaries

Financial Supplement (unaudited) to Third Quarter 2023 Earnings Release

End of Period Loans


	As of
											9/30/2023				9/30/2023
($ amounts in millions)	9/30/2023		6/30/2023		3/31/2023		12/31/2022		9/30/2022		vs. 6/30/2023				vs. 9/30/2022
Commercial and industrial	$	51,604	$	52,300	$	51,811	$	50,905	$	49,591	$	(696)	(1.3)	%	$	2,013	4.1	%
Commercial real estate mortgage—owner-occupied	4,833		4,797		4,938		5,103		5,167		36		0.8	%	(334)		(6.5)	%
Commercial real estate construction—owner-occupied	270		292		306		298		282		(22)		(7.5)	%	(12)		(4.3)	%
Total commercial	56,707		57,389		57,055		56,306		55,040		(682)		(1.2)	%	1,667		3.0	%
Commercial investor real estate mortgage	6,436		6,500		6,392		6,393		6,295		(64)		(1.0)	%	141		2.2	%
Commercial investor real estate construction	2,301		2,132		2,040		1,986		1,824		169		7.9	%	477		26.2	%
Total investor real estate	8,737		8,632		8,432		8,379		8,119		105		1.2	%	618		7.6	%
Total business	65,444		66,021		65,487		64,685		63,159		(577)		(0.9)	%	2,285		3.6	%
Residential first mortgage	20,059		19,755		19,172		18,810		18,399		304		1.5	%	1,660		9.0	%
Home equity—lines of credit (1)	3,240		3,313		3,397		3,510		3,521		(73)		(2.2)	%	(281)		(8.0)	%
Home equity—closed-end (2)	2,428		2,425		2,446		2,489		2,515		3		0.1	%	(87)		(3.5)	%
Consumer credit card	1,261		1,231		1,219		1,248		1,186		30		2.4	%	75		6.3	%
Other consumer—exit portfolios (3)	356		416		488		570		662		(60)		(14.4)	%	(306)		(46.2)	%
Other consumer	6,154		6,030		5,848		5,697		5,269		124		2.1	%	885		16.8	%
Total consumer	33,498		33,170		32,570		32,324		31,552		328		1.0	%	1,946		6.2	%
Total Loans	$	98,942	$	99,191	$	98,057	$	97,009	$	94,711	$	(249)	(0.3)	%	$	4,231	4.5	%

______

(1) The balance of Regions' home equity lines of credit consists of $1,621 million of first lien and $1,619 million of second lien at 9/30/2023.

(2) The balance of Regions' closed-end home equity loans consists of $2,095 million of first lien and $333 million of second lien at 9/30/2023.

(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 Percentage	9/30/2023		6/30/2023		3/31/2023		12/31/2022		9/30/2022
Commercial and industrial	52.2	%	52.7	%	52.8	%	52.5	%	52.4	%
Commercial real estate mortgage—owner-occupied	5.0	%	4.9	%	5.0	%	5.3	%	5.5	%
Commercial real estate construction—owner-occupied	0.3	%	0.3	%	0.3	%	0.3	%	0.3	%
Total commercial	57.5	%	57.9	%	58.1	%	58.1	%	58.2	%
Commercial investor real estate mortgage	6.5	%	6.6	%	6.5	%	6.6	%	6.6	%
Commercial investor real estate construction	2.3	%	2.1	%	2.1	%	2.0	%	1.9	%
Total investor real estate	8.8	%	8.7	%	8.6	%	8.6	%	8.5	%
Total business	66.3	%	66.6	%	66.7	%	66.7	%	66.7	%
Residential first mortgage	20.3	%	19.9	%	19.6	%	19.4	%	19.4	%
Home equity—lines of credit	3.3	%	3.3	%	3.5	%	3.6	%	3.7	%
Home equity—closed-end	2.5	%	2.4	%	2.5	%	2.6	%	2.7	%
Consumer credit card	1.3	%	1.2	%	1.2	%	1.3	%	1.3	%
Other consumer—exit portfolios	0.4	%	0.4	%	0.5	%	0.6	%	0.7	%
Other consumer	5.9	%	6.2	%	6.0	%	5.8	%	5.5	%
Total consumer	33.7	%	33.4	%	33.3	%	33.3	%	33.3	%
Total Loans	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%

Regions Financial Corporation and Subsidiaries

Financial Supplement (unaudited) to Third Quarter 2023 Earnings Release

Average Balances of Loans


	Average Balances
($ amounts in millions)	3Q23		2Q23		1Q23		4Q22		3Q22		3Q23 vs. 2Q23				3Q23 vs. 3Q22
Commercial and industrial	$	51,721	$	52,039	$	51,158	$	50,135	$	49,120	$	(318)	(0.6)	%	$	2,601	5.3	%
Commercial real estate mortgage—owner-occupied	4,824		4,905		5,013		5,073		5,167		(81)		(1.7)	%	(343)		(6.6)	%
Commercial real estate construction—owner-occupied	276		292		292		289		274		(16)		(5.5)	%	2		0.7	%
Total commercial	56,821		57,236		56,463		55,497		54,561		(415)		(0.7)	%	2,260		4.1	%


Commercial investor real estate mortgage	6,333		6,459		6,444		6,406		6,115		(126)		(2.0)	%	218		3.6	%
Commercial investor real estate construction	2,284		2,023		1,960		1,884		1,764		261		12.9	%	520		29.5	%
Total investor real estate	8,617		8,482		8,404		8,290		7,879		135		1.6	%	738		9.4	%
Total business	65,438		65,718		64,867		63,787		62,440		(280)		(0.4)	%	2,998		4.8	%


Residential first mortgage	19,914		19,427		18,957		18,595		18,125		487		2.5	%	1,789		9.9	%
Home equity—lines of credit	3,270		3,354		3,460		3,520		3,531		(84)		(2.5)	%	(261)		(7.4)	%
Home equity—closed-end	2,418		2,431		2,461		2,497		2,519		(13)		(0.5)	%	(101)		(4.0)	%
Consumer credit card	1,245		1,217		1,214		1,207		1,176		28		2.3	%	69		5.9	%
Other consumer—exit portfolios (1)	384		450		527		613		716		(66)		(14.7)	%	(332)		(46.4)	%
Other consumer	6,116		5,984		5,791		5,533		6,177		132		2.2	%	(61)		(1.0)	%
Total consumer	33,347		32,863		32,410		31,965		32,244		484		1.5	%	1,103		3.4	%
Total Loans	$	98,785	$	98,581	$	97,277	$	95,752	$	94,684	$	204	0.2	%	$	4,101	4.3	%


	Average Balances
	Nine Months Ended September 30
($ amounts in millions)	2023		2022		2023 vs. 2022
Commercial and industrial	$	51,641	$	46,569	$	5,072	10.9	%
Commercial real estate mortgage—owner-occupied	4,913		5,202		(289)		(5.6)	%
Commercial real estate construction—owner-occupied	287		272		15		5.5	%
Total commercial	56,841		52,043		4,798		9.2	%
Commercial investor real estate mortgage	6,412		5,799		613		10.6	%
Commercial investor real estate construction	2,090		1,667		423		25.4	%
Total investor real estate	8,502		7,466		1,036		13.9	%
Total business	65,343		59,509		5,834		9.8	%
Residential first mortgage	19,436		17,732		1,704		9.6	%
Home equity—lines of credit	3,360		3,589		(229)		(6.4)	%
Home equity—closed-end	2,437		2,509		(72)		(2.9)	%
Consumer credit card	1,225		1,155		70		6.1	%
Other consumer—exit portfolios (1)	454		845		(391)		(46.3)	%
Other consumer	5,965		5,773		192		3.3	%
Total consumer	32,877		31,603		1,274		4.0	%
Total Loans	$	98,220	$	91,112	$	7,108	7.8	%

_____

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.

Regions Financial Corporation and Subsidiaries

Financial Supplement (unaudited) to Third Quarter 2023 Earnings Release

End of Period Deposits


	As of
											9/30/2023			9/30/2023
($ amounts in millions)	9/30/2023		6/30/2023		3/31/2023		12/31/2022		9/30/2022		vs. 6/30/2023			vs. 9/30/2022

Interest-free deposits	$	44,640	$	46,898	$	49,647	$	51,348	$	54,996	$	(2,258)	(4.8)%	$	(10,356)	(18.8)%
Interest-bearing checking	22,428		22,892		24,066		25,676		26,500		(464)		(2.0)%	(4,072)		(15.4)%
Savings	13,292		14,217		15,286		15,662		16,083		(925)		(6.5)%	(2,791)		(17.4)%
Money market—domestic	32,646		32,230		31,688		33,285		32,444		416		1.3%	202		0.6%

Time deposits	13,193		10,722		7,773		5,772		5,355		2,471		23.0%	7,838		146.4%


Total Deposits	$	126,199	$	126,959	$	128,460	$	131,743	$	135,378	$	(760)	(0.6)%	$	(9,179)	(6.8)%

	As of
											9/30/2023			9/30/2023
($ amounts in millions)	9/30/2023		6/30/2023		3/31/2023		12/31/2022		9/30/2022		vs. 6/30/2023			vs. 9/30/2022
Consumer Bank Segment	$	80,980	$	81,554	$	83,296	$	83,487	$	85,455	$	(574)	(0.7)%	$	(4,475)	(5.2)%
Corporate Bank Segment	34,650		35,332		35,185		37,145		38,293		(682)		(1.9)%	(3,643)		(9.5)%
Wealth Management Segment	7,791		7,176		7,941		9,111		9,400		615		8.6%	(1,609)		(17.1)%
Other (1)(2)	2,778		2,897		2,038		2,000		2,230		(119)		(4.1)%	548		24.6%
Total Deposits	$	126,199	$	126,959	$	128,460	$	131,743	$	135,378	$	(760)	(0.6)%	$	(9,179)	(6.8)%

	As of
											9/30/2023			9/30/2023
($ amounts in millions)	9/30/2023		6/30/2023		3/31/2023		12/31/2022		9/30/2022		vs. 6/30/2023			vs. 9/30/2022
Wealth Management - Private Wealth	$	6,706	$	6,552	$	7,238	$	8,196	$	8,565	$	154	2.4%	$	(1,859)	(21.7)%
Wealth Management - Institutional Services	1,085		624		703		915		835		461		73.9%	250		29.9%
Total Wealth Management Segment Deposits	$	7,791	$	7,176	$	7,941	$	9,111	$	9,400	$	615	8.6%	$	(1,609)	(17.1)%


	As of
End of Period Deposits by Percentage	9/30/2023		6/30/2023		3/31/2023		12/31/2022		9/30/2022
Interest-free deposits	35.4	%	36.9	%	38.6	%	39.0	%	40.6	%
Interest-bearing checking	17.8	%	18.0	%	18.7	%	19.5	%	19.6	%
Savings	10.5	%	11.2	%	11.9	%	11.9	%	11.9	%
Money market—domestic	25.9	%	25.4	%	24.7	%	25.3	%	24.0	%

Time deposits	10.4	%	8.5	%	6.1	%	4.3	%	3.9	%


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

(1)Other deposits represent non-customer balances primarily consisting of wholesale funding (for example, Eurodollar trade deposits, selected deposits and brokered time deposits) and included additional wholesale funding arrangements in the second quarter of 2023.

(2)Includes brokered deposits totaling $1.9 billion at 9/30/2023, $2.0 billion at 6/30/2023, $1.1 billion at 3/31/2023, $1.2 billion at 12/31/2022 and $1.3 billion at 9/30/2022.

Regions Financial Corporation and Subsidiaries

Financial Supplement (unaudited) to Third Quarter 2023 Earnings Release

Average Balances of Deposits


	Average Balances
($ amounts in millions)	3Q23		2Q23		1Q23		4Q22		3Q22		3Q23 vs. 2Q23				3Q23 vs. 3Q22

Interest-free deposits	$	44,748	$	47,178	$	49,592	$	53,107	$	55,806	$	(2,430)	(5.2)	%	$	(11,058)	(19.8)	%
Interest-bearing checking	22,499		22,979		24,697		25,379		26,665		(480)		(2.1)	%	(4,166)		(15.6)	%
Savings	13,715		14,701		15,418		15,840		16,176		(986)		(6.7)	%	(2,461)		(15.2)	%
Money market—domestic	32,146		31,567		32,522		33,219		31,520		579		1.8	%	626		2.0	%


Time deposits	12,112		9,114		6,813		5,462		5,351		2,998		32.9	%	6,761		126.4	%


Total Deposits	$	125,220	$	125,539	$	129,042	$	133,007	$	135,518	$	(319)	(0.3)	%	(10,298)		(7.6)	%


	Average Balances
($ amounts in millions)	3Q23		2Q23		1Q23		4Q22		3Q22		3Q23 vs. 2Q23				3Q23 vs. 3Q22
Consumer Bank Segment	$	80,036	$	80,999	$	82,200	$	83,555	$	84,741	$	(963)	(1.2)	%	$	(4,705)	(5.6)	%
Corporate Bank Segment	34,924		34,860		36,273		38,176		39,058		64		0.2	%	(4,134)		(10.6)	%
Wealth Management Segment	7,451		7,470		8,463		9,065		9,467		(19)		(0.3)	%	(2,016)		(21.3)	%
Other (1)	2,809		2,210		2,106		2,211		2,252		599		27.1	%	557		24.7	%
Total Deposits	$	125,220	$	125,539	$	129,042	$	133,007	$	135,518	$	(319)	(0.3)	%	$	(10,298)	(7.6)	%


	Average Balances
($ amounts in millions)	3Q23		2Q23		1Q23		4Q22		3Q22		3Q23 vs. 2Q23				3Q23 vs. 3Q22
Wealth Management - Private Wealth	$	6,701	$	6,855	$	7,785	$	8,367	$	8,792	$	(154)	(2.2)	%	$	(2,091)	(23.8)	%
Wealth Management - Institutional Services	750		615		678		698		675		135		22.0	%	75		11.1	%
Total Wealth Management Segment Deposits	$	7,451	$	7,470	$	8,463	$	9,065	$	9,467	$	(19)	(0.3)	%	$	(2,016)	(21.3)	%



	Average Balances
	Nine Months Ended September 30
($ amounts in millions)	2023		2022		2023 vs. 2022
Interest-free deposits	$	47,155	$	57,603	$	(10,448)	(18.1)	%
Interest-bearing checking	23,383		27,319		(3,936)		(14.4)	%
Savings	14,605		15,974		(1,369)		(8.6)	%
Money market—domestic	32,077		31,423		654		2.1	%


Time deposits	9,366		5,617		3,749		66.7	%


Total Deposits	$	126,586	$	137,936	$	(11,350)	(8.2)	%



	Average Balances
	Nine Months Ended September 30
($ amounts in millions)	2023		2022		2023 vs. 2022
Consumer Bank Segment	$	81,070	$	84,346	$	(3,276)	(3.9)	%
Corporate Bank Segment	35,348		41,144		(5,796)		(14.1)	%
Wealth Management Segment	7,791		10,000		(2,209)		(22.1)	%
Other (1)	2,377		2,446		(69)		(2.8)	%
Total Deposits	$	126,586	$	137,936	$	(11,350)	(8.2)	%



	Average Balances
	Nine Months Ended September 30
($ amounts in millions)	2023		2022		2023 vs. 2022
Wealth Management - Private Wealth	$	7,110	$	9,252	$	(2,142)	(23.2)	%
Wealth Management - Institutional Services	681		748		(67)		(9.0)	%
Total Wealth Management Segment Deposits	$	7,791	$	10,000	$	(2,209)	(22.1)	%

________

NM - Not meaningful.

Regions Financial Corporation and Subsidiaries

Financial Supplement (unaudited) to Third Quarter 2023 Earnings Release

Consolidated Statements of Income


	Quarter Ended
($ amounts in millions, except per share data)	9/30/2023		6/30/2023		3/31/2023		12/31/2022		9/30/2022
Interest income on:
Loans, including fees	$	1,462	$	1,454	$	1,360	$	1,208	$	1,072
Debt securities	185		185		187		222		171
Loans held for sale	14		10		7		9		8
Other earning assets	105		90		87		113		92
Total interest income	1,766		1,739		1,641		1,552		1,343
Interest expense on:
Deposits	367		260		179		114		50
Short-term borrowings	39		42		5		—		—
Long-term borrowings	69		56		40		37		31
Total interest expense	475		358		224		151		81
Net interest income	1,291		1,381		1,417		1,401		1,262
Provision for credit losses	145		118		135		112		135
Net interest income after provision for credit losses	1,146		1,263		1,282		1,289		1,127
Non-interest income:
Service charges on deposit accounts	142		152		155		152		156
Card and ATM fees	126		130		121		130		126
Wealth management income	112		110		112		108		108
Capital markets income	64		68		42		61		93
Mortgage income	28		26		24		24		37
Securities gains (losses), net	(1)		—		(2)		—		(1)
Other	95		90		82		125		86
Total non-interest income	566		576		534		600		605
Non-interest expense:
Salaries and employee benefits	589		603		616		604		593
Equipment and software expense	107		101		102		102		98
Net occupancy expense	72		73		73		74		76
Other	325		334		236		237		403
Total non-interest expense	1,093		1,111		1,027		1,017		1,170
Income before income taxes	619		728		789		872		562
Income tax expense	129		147		177		187		133
Net income	$	490	$	581	$	612	$	685	$	429
Net income available to common shareholders	$	465	$	556	$	588	$	660	$	404
Weighted-average shares outstanding—during quarter:
Basic	939		939		935		934		934
Diluted	940		939		942		941		940
Actual shares outstanding—end of quarter	939		939		935		934		934



Earnings per common share: (1)
Basic	$	0.49	$	0.59	$	0.63	$	0.71	$	0.43
Diluted	$	0.49	$	0.59	$	0.62	$	0.70	$	0.43
Taxable-equivalent net interest income	$	1,304	$	1,393	$	1,430	$	1,414	$	1,274

________

(1) Quarterly amounts may not add to year-to-date amounts due to rounding.

Regions Financial Corporation and Subsidiaries

Financial Supplement (unaudited) to Third Quarter 2023 Earnings Release

Consolidated Statements of Income (continued) (unaudited)


	Nine Months Ended September 30
($ amounts in millions, except per share data)	2023		2022
Interest income on:
Loans, including fees	$	4,276	$	2,880
Debt securities	557		466
Loans held for sale	31		27
Other earning assets	282		177

Total interest income	5,146		3,550
Interest expense on:
Deposits	806		83
Short-term borrowings	86		—
Long-term borrowings	165		82
Total interest expense	1,057		165


Net interest income	4,089		3,385
Provision for credit losses	398		159
Net interest income after provision for credit losses	3,691		3,226
Non-interest income:
Service charges on deposit accounts	449		489
Card and ATM fees	377		383
Wealth management income	334		311
Capital markets income	174		278
Mortgage income	78		132
Securities gains (losses), net	(3)		(1)
Other	267		237
Total non-interest income	1,676		1,829
Non-interest expense:
Salaries and employee benefits	1,808		1,714
Equipment and software expense	310		290
Net occupancy expense	218		226
Other	895		821
Total non-interest expense	3,231		3,051
Income before income taxes	2,136		2,004
Income tax expense	453		444





Net income	$	1,683	$	1,560

Net income available to common shareholders	$	1,609	$	1,486
Weighted-average shares outstanding—during year:
Basic	938		936
Diluted	940		942
Actual shares outstanding—end of period	939		934






Earnings per common share:
Basic	$	1.72	$	1.59
Diluted	$	1.71	$	1.58
Taxable-equivalent net interest income	$	4,127	$	3,419

Regions Financial Corporation and Subsidiaries

Financial Supplement (unaudited) to Third Quarter 2023 Earnings Release

Consolidated Average Daily Balances and Yield/Rate Analysis


	Quarter Ended
	9/30/2023						6/30/2023
($ amounts in millions; yields on taxable-equivalent basis)	Average Balance		Income/ Expense		Yield/ Rate (1)		Average Balance		Income/ Expense		Yield/ Rate (1)
Assets
Earning assets:
Federal funds sold and securities purchased under agreements to resell	$	1	$	—	5.32	%	$	1	$	—	5.02	%
Debt securities (2)	31,106		185		2.38		31,588		185		2.35
Loans held for sale	910		14		5.99		539		10		7.11
Loans, net of unearned income:
Commercial and industrial (3)	51,721		804		6.14		52,039		820		6.29
Commercial real estate mortgage—owner-occupied (4)	4,824		58		4.72		4,905		64		5.13
Commercial real estate construction—owner-occupied	276		4		5.74		292		4		5.73
Commercial investor real estate mortgage	6,333		113		6.95		6,459		110		6.74
Commercial investor real estate construction	2,284		46		7.84		2,023		38		7.55
Residential first mortgage	19,914		179		3.59		19,427		169		3.48
Home equity	5,688		94		6.63		5,785		90		6.22
Consumer credit card	1,245		48		15.57		1,217		46		15.10
Other consumer—exit portfolios	384		6		6.35		450		7		6.31
Other consumer	6,116		123		7.93		5,984		118		7.91
Total loans, net of unearned income	98,785		1,475		5.91		98,581		1,466		5.94
Interest-bearing deposits in other banks	6,374		90		5.56		6,111		79		5.21
Other earning assets	1,465		15		4.09		1,411		11		3.05
Total earning assets	138,641		1,779		5.08		138,231		1,751		5.06
Unrealized gains/(losses) on debt securities available for sale, net (2)	(3,626)						(3,064)
Allowance for loan losses	(1,526)						(1,497)
Cash and due from banks	2,165						2,320
Other non-earning assets	17,830						17,784
	$	153,484					$	153,774
Liabilities and Shareholders’ Equity
Interest-bearing liabilities:
Savings	$	13,715	4		0.12		$	14,701	5		0.12
Interest-bearing checking	22,499		74		1.31		22,979		63		1.09
Money market	32,146		179		2.20		31,567		130		1.66
Time deposits	12,112		110		3.59		9,114		62		2.74
Total interest-bearing deposits (5)	80,472		367		1.81		78,361		260		1.33
Federal funds purchased and securities sold under agreements to repurchase	8		—		5.46		17		—		5.23
Short-term borrowings	2,794		39		5.48		3,242		42		5.06
Long-term borrowings	4,295		69		6.31		3,517		56		6.42
Total interest-bearing liabilities	87,569		475		2.15		85,137		358		1.69
Non-interest-bearing deposits (5)	44,748		—		—		47,178		—		—
Total funding sources	132,317		475		1.42		132,315		358		1.08
Net interest spread (2)					2.93						3.37
Other liabilities	4,677						4,548
Shareholders’ equity	16,468						16,892
Noncontrolling interest	22						19
	$	153,484					$	153,774
Net interest income/margin FTE basis (2)			$	1,304	3.73	%			$	1,393	4.04	%

_______

(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 expense of $73 million for the quarter ended September 30, 2023 and $29 million for the quarter ended June 30, 2023.

(4) Interest income includes hedging expense of $9 million for the quarter ended September 30, 2023 and $3 million for the quarter ended June 30, 2023.

(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 1.16% for the quarter ended September 30, 2023 and 0.83% for the quarter ended June 30, 2023.

Regions Financial Corporation and Subsidiaries

Financial Supplement (unaudited) to Third Quarter 2023 Earnings Release

Consolidated Average Daily Balances and Yield/Rate Analysis (continued)


	Quarter Ended
	3/31/2023						12/31/2022						9/30/2022
($ amounts in millions; yields on taxable-equivalent basis)	Average Balance		Income/ Expense		Yield/ Rate (1)		Average Balance		Income/ Expense		Yield/ Rate (1)		Average Balance		Income/ 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)	32,044		187		2.33		32,213		222		2.75		32,101		171		2.12
Loans held for sale	389		7		7.23		537		9		6.53		539		8		6.09
Loans, net of unearned income:
Commercial and industrial (4)	51,158		763		6.02		50,135		647		5.10		49,120		549		4.42
Commercial real estate mortgage—owner-occupied (5)	5,013		61		4.88		5,073		55		4.27		5,167		56		4.20
Commercial real estate construction—owner-occupied	292		4		5.26		289		4		4.96		274		3		4.53
Commercial investor real estate mortgage	6,444		100		6.23		6,406		89		5.43		6,115		64		4.06
Commercial investor real estate construction	1,960		35		7.09		1,884		30		6.24		1,764		22		4.77
Residential first mortgage	18,957		161		3.40		18,595		155		3.33		18,125		147		3.24
Home equity	5,921		88		5.93		6,017		81		5.31		6,050		68		4.49


Consumer credit card	1,214		45		14.93		1,207		44		14.34		1,176		40		13.79
Other consumer—exit portfolios	527		8		6.20		613		9		6.07		716		10		5.72
Other consumer	5,791		108		7.56		5,533		107		7.77		6,177		125		8.03
Total loans, net of unearned income	97,277		1,373		5.68		95,752		1,221		5.05		94,684		1,084		4.53
Interest-bearing deposits in other banks	6,508		72		4.49		10,600		100		3.74		14,353		81		2.25
Other earning assets	1,340		15		4.70		1,380		13		3.76		1,379		11		3.34
Total earning assets	137,558		1,654		4.84		140,483		1,565		4.42		143,057		1,355		3.76
Unrealized gains/(losses) on debt securities available for sale, net (2)	(3,081)						(3,582)						(2,389)
Allowance for loan losses	(1,427)						(1,447)						(1,432)
Cash and due from banks	2,360						2,406						2,291
Other non-earning assets	17,672						17,808						16,895
	$	153,082					$	155,668					$	158,422
Liabilities and Shareholders’ Equity
Interest-bearing liabilities:
Savings	$	15,418	4		0.11		$	15,840	4		0.10		$	16,176	5		0.11
Interest-bearing checking	24,697		54		0.89		25,379		42		0.65		26,665		22		0.33
Money market	32,522		91		1.13		33,219		57		0.69		31,520		17		0.22
Time deposits	6,813		30		1.80		5,462		11		0.80		5,351		6		0.45
Total interest-bearing deposits (6)	79,450		179		0.91		79,900		114		0.57		79,712		50		0.25
Federal funds purchased and securities sold under agreements to repurchase	—		—		—		39		—		3.73		—		—		—
Short-term borrowings	400		5		4.92		—		—		—		30		—		0.23
Long-term borrowings	2,286		40		6.91		2,275		37		6.38		2,319		31		5.39
Total interest-bearing liabilities	82,136		224		1.10		82,214		151		0.73		82,061		81		0.39
Non-interest-bearing deposits (6)	49,592		—		—		53,107		—		—		55,806		—		—
Total funding sources	131,728		224		0.69		135,321		151		0.44		137,867		81		0.23
Net interest spread (2)					3.73						3.69						3.36
Other liabilities	4,891						4,904						4,082
Shareholders’ equity	16,457						15,442						16,473
Noncontrolling interest	6						1						—
	$	153,082					$	155,668					$	158,422
Net interest income/margin FTE basis (2)			$	1,430	4.22	%			$	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. 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 migrated from securities to loans in the first quarter of 2023.

(4) Interest income includes hedging expense of $13 million for the quarter ended March 31, 2023, $43 million for the quarter ended December 31, 2022, and none for the quarter ended September 30, 2022.

(5) Interest income includes hedging expense of $2 million for the quarter ended March 31, 2023, $5 million for the quarter ended December 31, 2022, and none 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 0.56% for the quarter ended March 31, 2023, 0.34% for the quarter ended December 31, 2022 and 0.15% for the quarter ended September 30, 2022.

Regions Financial Corporation and Subsidiaries

Financial Supplement (unaudited) to Third Quarter 2023 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)	9/30/2023		6/30/2023		3/31/2023		12/31/2022		9/30/2022		3Q23 vs. 2Q23				3Q23 vs. 3Q22
Net income available to common shareholders (GAAP)	$	465	$	556	$	588	$	660	$	404	$	(91)	(16.4)	%	$	61	15.1	%
Preferred dividends (GAAP)	25		25		24		25		25		—		—	%	—		—	%
Income tax expense (GAAP)	129		147		177		187		133		(18)		(12.2)	%	(4)		(3.0)	%
Income before income taxes (GAAP)	619		728		789		872		562		(109)		(15.0)	%	57		10.1	%
Provision for credit losses (GAAP)	145		118		135		112		135		27		22.9	%	10		7.4	%
Pre-tax pre-provision income (non-GAAP)	764		846		924		984		697		(82)		(9.7)	%	67		9.6	%
Other adjustments:
Securities (gains) losses, net	1		—		2		—		1		1		NM		—		—	%
Leveraged lease termination gains, net	—		—		(1)		—		—		—		NM		—		NM

Insurance proceeds (1)	—		—		—		(50)		—		—		NM		—		NM
Salaries and employee benefits—severance charges	3		—		—		—		—		3		NM		3		NM
Branch consolidation, property and equipment charges	1		1		2		5		3		—		—	%	(2)		(66.7)	%




Professional, legal and regulatory expenses (1)	—		—		—		—		179		—		NM		(179)		(100.0)	%
Total other adjustments	5		1		3		(45)		183		4		400.0	%	(178)		(97.3)	%
Adjusted pre-tax pre-provision income (non-GAAP)	$	769	$	847	$	927	$	939	$	880	$	(78)	(9.2)	%	$	(111)	(12.6)	%

______

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.

Regions Financial Corporation and Subsidiaries

Financial Supplement (unaudited) to Third Quarter 2023 Earnings Release

Non-Interest Income


	Quarter Ended
($ amounts in millions)	9/30/2023		6/30/2023		3/31/2023		12/31/2022		9/30/2022		3Q23 vs. 2Q23				3Q23 vs. 3Q22
Service charges on deposit accounts	$	142	$	152	$	155	$	152	$	156	$	(10)	(6.6)	%	$	(14)	(9.0)	%
Card and ATM fees	126		130		121		130		126		(4)		(3.1)	%	—		—	%
Wealth management income	112		110		112		108		108		2		1.8	%	4		3.7	%
Capital markets income (1)	64		68		42		61		93		(4)		(5.9)	%	(29)		(31.2)	%
Mortgage income	28		26		24		24		37		2		7.7	%	(9)		(24.3)	%
Commercial credit fee income	24		28		26		25		26		(4)		(14.3)	%	(2)		(7.7)	%
Bank-owned life insurance	20		19		17		17		15		1		5.3	%	5		33.3	%
Market value adjustments on employee benefit assets (2)	4		—		(1)		(9)		(5)		4		NM		9		180.0	%

Securities gains (losses), net	(1)		—		(2)		—		(1)		(1)		NM		—		—	%
Insurance proceeds (3)	—		—		—		50		—		—		—	%	—		—	%
Other miscellaneous income	47		43		40		42		50		4		9.3	%	(3)		(6.0)	%
Total non-interest income	$	566	$	576	$	534	$	600	$	605	$	(10)	(1.7)	%	$	(39)	(6.4)	%

Mortgage Income


	Quarter Ended
($ amounts in millions)	9/30/2023			6/30/2023			3/31/2023			12/31/2022			9/30/2022			3Q23 vs. 2Q23				3Q23 vs. 3Q22
Production and sales	$	10		$	18		$	13		$	11		$	18		$	(8)	(44.4)	%	$	(8)	(44.4)	%
Loan servicing	42			39			38			42			40			3		7.7	%	2		5.0	%
MSR and related hedge impact:
MSRs fair value increase (decrease) due to change in valuation inputs or assumptions	45			8			(12)			—			28			37		462.5	%	17		60.7	%
MSRs hedge gain (loss)	(41)			(12)			9			(6)			(26)			(29)		(241.7)	%	(15)		(57.7)	%
MSRs change due to payment decay	(28)			(27)			(24)			(23)			(23)			(1)		(3.7)	%	(5)		(21.7)	%
MSR and related hedge impact	(24)			(31)			(27)			(29)			(21)			7		22.6	%	(3)		(14.3)	%
Total mortgage income	$	28		$	26		$	24		$	24		$	37		$	2	7.7	%	$	(9)	(24.3)	%

Mortgage production - portfolio	$	762		$	970		$	580		$	712		$	997		$	(208)	(21.4)	%	$	(235)	(23.6)	%
Mortgage production - agency/secondary market	408			450			302			314			526			(42)		(9.3)	%	(118)		(22.4)	%
Total mortgage production	$	1,170		$	1,420		$	882		$	1,026		$	1,523		$	(250)	(17.6)	%	$	(353)	(23.2)	%

Mortgage production - purchased	90.7		%	91.3		%	88.3		%	87.9		%	88.1		%
Mortgage production - refinanced	9.3		%	8.7		%	11.7		%	12.1		%	11.9		%

Wealth Management Income


	Quarter Ended
($ amounts in millions)	9/30/2023		6/30/2023		3/31/2023		12/31/2022		9/30/2022		3Q23 vs. 2Q23				3Q23 vs. 3Q22
Investment management and trust fee income	$	79	$	77	$	76	$	76	$	74	$	2	2.6	%	$	5	6.8	%
Investment services fee income	33		33		36		32		34		—		—	%	(1)		(2.9)	%
Total wealth management income (4)	$	112	$	110	$	112	$	108	$	108	$	2	1.8	%	$	4	3.7	%

Capital Markets Income


	Quarter Ended
($ amounts in millions)	9/30/2023		6/30/2023		3/31/2023		12/31/2022		9/30/2022		3Q23 vs. 2Q23				3Q23 vs. 3Q22
Capital markets income	$	64	$	68	$	42	$	61	$	93	$	(4)	(5.9)	%	$	(29)	(31.2)	%
Less: Valuation adjustments on customer derivatives (5)	(3)		(9)		(33)		(11)		21		6		66.7	%	(24)		(114.3)	%
Capital markets income excluding valuation adjustments	$	67	$	77	$	75	$	72	$	72	$	(10)	(13.0)	%	$	(5)	(6.9)	%

_________

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.

Regions Financial Corporation and Subsidiaries

Financial Supplement (unaudited) to Third Quarter 2023 Earnings Release

Non-Interest Income


($ amounts in millions)	Nine Months Ended				Year-to-Date Change 9/30/2023 vs. 9/30/2022
	9/30/2023		9/30/2022		Amount		Percent
Service charges on deposit accounts	$	449	$	489	$	(40)	(8.2)	%
Card and ATM fees	377		383		(6)		(1.6)	%
Wealth management income	334		311		23		7.4	%
Capital markets income (1)	174		278		(104)		(37.4)	%
Mortgage income	78		132		(54)		(40.9)	%
Commercial credit fee income	78		71		7		9.9	%
Bank-owned life insurance	56		45		11		24.4	%
Market value adjustments on employee benefit assets (2)	3		(36)		39		108.3	%
Securities gains (losses), net	(3)		(1)		(2)		(200.0)	%

Other miscellaneous income	130		157		(27)		(17.2)	%
Total non-interest income	$	1,676	$	1,829	$	(153)	(8.4)	%

Mortgage Income


	Nine Months Ended						Year-to-Date Change 9/30/2023 vs. 9/30/2022
($ amounts in millions)	9/30/2023			9/30/2022			Amount		Percent
Production and sales	$	41		$	84		$	(43)	(51.2)	%
Loan servicing	119			95			24		25.3	%
MSR and related hedge impact:
MSRs fair value increase (decrease) due to change in valuation inputs or assumptions	41			127			(86)		(67.7)	%
MSRs hedge gain (loss)	(44)			(119)			75		63.0	%
MSRs change due to payment decay	(79)			(55)			(24)		(43.6)	%
MSR and related hedge impact	(82)			(47)			(35)		(74.5)	%
Total mortgage income	$	78		$	132		$	(54)	(40.9)	%

Mortgage production - portfolio	$	2,312		$	3,295		$	(983)	(29.8)	%
Mortgage production - agency/secondary market	1,160			2,025			(865)		(42.7)	%
Total mortgage production	$	3,472		$	5,320		$	(1,848)	(34.7)	%

Mortgage production - purchased	90.3		%	78.5		%
Mortgage production - refinanced	9.7		%	21.5		%

Wealth Management Income


	Nine Months Ended				Year-to-Date Change 9/30/2023 vs. 9/30/2022
($ amounts in millions)	9/30/2023		9/30/2022		Amount		Percent
Investment management and trust fee income	$	232	$	221	$	11	5.0	%
Investment services fee income	102		90		12		13.3	%
Total wealth management income (3)	$	334	$	311	$	23	7.4	%

Capital Markets Income


	Nine Months Ended				Year-to-Date Change 9/30/2023 vs. 9/30/2022
($ amounts in millions)	9/30/2023		9/30/2022		Amount		Percent
Capital markets income	$	174	$	278	$	(104)	(37.4)	%
Less: Valuation adjustments on customer derivatives (4)	(45)		47		(92)		(195.7)	%
Capital markets income excluding valuation adjustments	$	219	$	231	$	(12)	(5.2)	%

_________

NM - Not Meaningful

(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)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.

(4)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.

Regions Financial Corporation and Subsidiaries

Financial Supplement (unaudited) to Third Quarter 2023 Earnings Release

Non-Interest Expense


	Quarter Ended
($ amounts in millions)	9/30/2023		6/30/2023		3/31/2023		12/31/2022		9/30/2022		3Q23 vs. 2Q23				3Q23 vs. 3Q22
Salaries and employee benefits	$	589	$	603	$	616	$	604	$	593	$	(14)	(2.3)	%	$	(4)	(0.7)	%
Equipment and software expense	107		101		102		102		98		6		5.9	%	9		9.2	%
Net occupancy expense	72		73		73		74		76		(1)		(1.4)	%	(4)		(5.3)	%
Outside services	39		42		39		41		40		(3)		(7.1)	%	(1)		(2.5)	%
Marketing	26		26		27		27		29		—		—	%	(3)		(10.3)	%
Professional, legal and regulatory expenses	27		20		19		23		199		7		35.0	%	(172)		(86.4)	%
Credit/checkcard expenses	16		15		14		14		13		1		6.7	%	3		23.1	%
FDIC insurance assessments	27		29		25		18		16		(2)		(6.9)	%	11		68.8	%
Visa class B shares expense	5		9		8		7		3		(4)		(44.4)	%	2		66.7	%

Operational losses	75		95		13		18		13		(20)		(21.1)	%	62		476.9	%
Branch consolidation, property and equipment charges	1		1		2		5		3		—		—	%	(2)		(66.7)	%
Other miscellaneous expenses	109		97		89		84		87		12		12.4	%	22		25.3	%
Total non-interest expense	$	1,093	$	1,111	$	1,027	$	1,017	$	1,170	$	(18)	(1.6)	%	$	(77)	(6.6)	%



	Nine Months Ended				Year-to-Date Change 9/30/2023 vs. 9/30/2022
($ amounts in millions)	9/30/2023		9/30/2022		Amount		Percent
Salaries and employee benefits	$	1,808	$	1,714	$	94	5.5	%
Equipment and software expense	310		290		20		6.9	%
Net occupancy expense	218		226		(8)		(3.5)	%
Outside services	120		116		4		3.4	%
Marketing	79		75		4		5.3	%
Professional, legal and regulatory expenses	66		240		(174)		(72.5)	%
Credit/checkcard expenses	45		52		(7)		(13.5)	%
FDIC insurance assessments	81		43		38		88.4	%
Visa class B shares expense	22		17		5		29.4	%

Operational losses	183		38		145		381.6	%
Branch consolidation, property and equipment charges	4		(2)		6		300.0	%
Other miscellaneous expenses	295		242		53		21.9	%
Total non-interest expense	$	3,231	$	3,051	$	180	5.9	%

_________

NM - Not Meaningful

Regions Financial Corporation and Subsidiaries

Financial Supplement (unaudited) to Third Quarter 2023 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 tables below present computations of the efficiency ratio, which is a measure of productivity, generally calculated as non-interest expense divided by total revenue; and the fee income ratio, generally calculated as non-interest income divided by total revenue. Management uses these ratios to monitor performance and believes these measures provide meaningful information to investors. Non-interest expense (GAAP) is presented excluding certain adjustments to arrive at adjusted non-interest expense (non-GAAP), which is the numerator for the 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)		9/30/2023			6/30/2023			3/31/2023			12/31/2022			9/30/2022			3Q23 vs. 2Q23				3Q23 vs. 3Q22
Non-interest expense (GAAP)	A	$	1,093		$	1,111		$	1,027		$	1,017		$	1,170		$	(18)	(1.6)	%	$	(77)	(6.6)	%
Adjustments:

Branch consolidation, property and equipment charges		(1)			(1)			(2)			(5)			(3)			—		—	%	2		(66.7)	%
Salaries and employee benefits—severance charges		(3)			—			—			—			—			(3)		NM		(3)		NM

Professional, legal and regulatory expenses (1)		—			—			—			—			(179)			—		NM		179		(100.0)	%


Adjusted non-interest expense (non-GAAP)	B	$	1,089		$	1,110		$	1,025		$	1,012		$	988		$	(21)	(1.9)	%	$	101	10.2	%



Net interest income (GAAP)	C	$	1,291		$	1,381		$	1,417		$	1,401		$	1,262		$	(90)	(6.5)	%	$	29	2.3	%
Taxable-equivalent adjustment		13			12			13			13			12			1		8.3	%	1		8.3	%
Net interest income, taxable-equivalent basis	D	$	1,304		$	1,393		$	1,430		$	1,414		$	1,274		$	(89)	(6.4)	%	$	30	2.4	%





Non-interest income (GAAP)	E	$	566		$	576		$	534		$	600		$	605		$	(10)	(1.7)	%	$	(39)	(6.4)	%
Adjustments:
Securities (gains) losses, net		1			—			2			—			1			1		NM		—		—	%
Leveraged lease termination gains		—			—			(1)			—			—			—		NM		—		NM

Insurance proceeds (1)		—			—			—			(50)			—			—		NM		—		NM
Adjusted non-interest income (non-GAAP)	F	$	567		$	576		$	535		$	550		$	606		$	(9)	(1.6)	%	$	(39)	(6.4)	%
Total revenue	C+E=G	$	1,857		$	1,957		$	1,951		$	2,001		$	1,867		$	(100)	(5.1)	%	$	(10)	(0.5)	%
Adjusted total revenue (non-GAAP)	C+F=H	$	1,858		$	1,957		$	1,952		$	1,951		$	1,868		$	(99)	(5.1)	%	$	(10)	(0.5)	%
Total revenue, taxable-equivalent basis	D+E=I	$	1,870		$	1,969		$	1,964		$	2,014		$	1,879		$	(99)	(5.0)	%	$	(9)	(0.5)	%
Adjusted total revenue, taxable-equivalent basis (non-GAAP)	D+F=J	$	1,871		$	1,969		$	1,965		$	1,964		$	1,880		$	(98)	(5.0)	%	$	(9)	(0.5)	%


Efficiency ratio (GAAP) (2)	A/I	58.5		%	56.4		%	52.3		%	50.5		%	62.3		%
Adjusted efficiency ratio (non-GAAP) (2)	B/J	58.2		%	56.4		%	52.2		%	51.6		%	52.6		%
Fee income ratio (GAAP) (2)	E/I	30.3		%	29.3		%	27.2		%	29.8		%	32.2		%
Adjusted fee income ratio (non-GAAP) (2)	F/J	30.3		%	29.3		%	27.2		%	28.0		%	32.2		%

________

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.

(2)Amounts have been calculated using whole dollar values.

Regions Financial Corporation and Subsidiaries

Financial Supplement (unaudited) to Third Quarter 2023 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)




		Nine Months Ended September 30
($ amounts in millions)		2023			2022			2023 vs. 2022
Non-interest expense (GAAP)	A	$	3,231		$	3,051		$	180	5.9	%
Adjustments:

Branch consolidation, property and equipment charges		(4)			2			(6)		(300.0)	%

Salaries and employee benefits—severance charges		(3)			—			(3)		NM


Professional, legal and regulatory expenses (1)		—			(179)			179		100.0	%
Adjusted non-interest expense (non-GAAP)	B	$	3,224		$	2,874		$	350	12.2	%



Net interest income (GAAP)	C	$	4,089		$	3,385		$	704	20.8	%
Taxable-equivalent adjustment		38			34			4		11.8	%
Net interest income, taxable-equivalent basis	D	$	4,127		$	3,419		$	708	20.7	%




Non-interest income (GAAP)	E	$	1,676		$	1,829		$	(153)	(8.4)	%
Adjustments:
Securities (gains) losses, net		3			1			2		(200.0)	%

Leveraged lease termination gains		(1)			(1)			—		—	%



Adjusted non-interest income (non-GAAP)	F	$	1,678		$	1,829		$	(151)	(8.3)	%
Total revenue	C+E= G	$	5,765		$	5,214		$	551	10.6	%
Adjusted total revenue (non-GAAP)	C+F=H	$	5,767		$	5,214		$	553	10.6	%
Total revenue, taxable-equivalent basis	D+E=I	$	5,803		$	5,248		$	555	10.6	%
Adjusted total revenue, taxable-equivalent basis (non-GAAP)	D+F=J	$	5,805		$	5,248		$	557	10.6	%
Operating leverage ratio (GAAP) (2)	I-A									4.7	%
Adjusted operating leverage ratio (non-GAAP) (2)	J-B									(1.6)	%
Efficiency ratio (GAAP) (2)	A/I	55.7		%	58.1		%
Adjusted efficiency ratio (non-GAAP) (2)	B/J	55.5		%	54.8		%
Fee income ratio (GAAP) (2)	E/I	28.9		%	34.9		%
Adjusted fee income ratio (non-GAAP) (2)	F/J	28.9		%	34.8		%

______

NM - Not Meaningful

(1)This adjustment relates to the settlement of a previously disclosed matter with the Consumer Financial Protection Bureau.

(2)Amounts have been calculated using whole dollar values.

Regions Financial Corporation and Subsidiaries

Financial Supplement (unaudited) to Third Quarter 2023 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)		9/30/2023			6/30/2023			3/31/2023			12/31/2022			9/30/2022
RETURN ON AVERAGE TANGIBLE COMMON SHAREHOLDERS' EQUITY*
Net income available to common shareholders (GAAP)	A	$	465		$	556		$	588		$	660		$	404
Average shareholders' equity (GAAP)		$	16,468		$	16,892		$	16,457		$	15,442		$	16,473
Less:
Average intangible assets (GAAP)		5,955			5,966			5,977			5,996			6,019
Average deferred tax liability related to intangibles (GAAP)		(106)			(104)			(103)			(105)			(104)
Average preferred stock (GAAP)		1,659			1,659			1,659			1,659			1,659
Average tangible common shareholders' equity (non-GAAP)	B	$	8,960		$	9,371		$	8,924		$	7,892		$	8,899
Less: Average AOCI, after tax		(3,684)			(2,936)			(3,081)			(3,535)			(2,213)
Average tangible common shareholders' equity excluding AOCI (non-GAAP)	C	$	12,644		$	12,307		$	12,005		$	11,427		$	11,112
Return on average tangible common shareholders' equity (non-GAAP) (1)	A/B	20.58		%	23.82		%	26.70		%	33.20		%	18.02		%
Return on average tangible common shareholders' equity excluding AOCI (non-GAAP) (1)	A/C	14.58		%	18.14		%	19.85		%	22.91		%	14.42		%

____

*Annualized

(1)Amounts have been calculated using whole dollar values.

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)		9/30/2023			6/30/2023			3/31/2023			12/31/2022			9/30/2022
TANGIBLE COMMON RATIOS
Shareholders’ equity (GAAP)	A	$	16,100		$	16,639		$	16,883		$	15,947		$	15,173
Less:
Preferred stock (GAAP)		1,659			1,659			1,659			1,659			1,659
Intangible assets (GAAP)		5,949			5,959			5,971			5,982			6,005
Deferred tax liability related to intangibles (GAAP)		(108)			(106)			(104)			(103)			(105)
Tangible common shareholders’ equity (non-GAAP)	B	$	8,600		$	9,127		$	9,357		$	8,409		$	7,614
Total assets (GAAP)	C	$	153,624		$	155,656		$	154,135		$	155,220		$	157,798
Less:
Intangible assets (GAAP)		5,949			5,959			5,971			5,982			6,005
Deferred tax liability related to intangibles (GAAP)		(108)			(106)			(104)			(103)			(105)
Tangible assets (non-GAAP)	D	$	147,783		$	149,803		$	148,268		$	149,341		$	151,898
Shares outstanding—end of quarter	E	939			939			935			934			934
Total equity to total assets (GAAP) (1)	A/C	10.48		%	10.69		%	10.95		%	10.27		%	9.62		%
Tangible common shareholders’ equity to tangible assets (non-GAAP) (1)	B/D	5.82		%	6.09		%	6.31		%	5.63		%	5.01		%
Tangible common book value per share (non-GAAP) (1)	B/E	$	9.16		$	9.72		$	10.01		$	9.00		$	8.15

____

(1)Amounts have been calculated using whole dollar values.

Regions Financial Corporation and Subsidiaries

Financial Supplement (unaudited) to Third Quarter 2023 Earnings Release

Credit Quality


	As of and for Quarter Ended
($ amounts in millions)	9/30/2023		6/30/2023		3/31/2023		12/31/2022		9/30/2022
Components:
Beginning allowance for loan losses (ALL)	$	1,513	$	1,472	$	1,464	$	1,418	$	1,425
Cumulative change in accounting guidance (1)	—		—		(38)		—		—
Beginning allowance for loan losses (ALL), as adjusted for change in accounting guidance	$	1,513	$	1,472	$	1,426	$	1,418	$	1,425

Loans charged-off:
Commercial and industrial	53		52		49		38		20
Commercial real estate mortgage—owner-occupied	1		—		—		1		—

Total commercial	54		52		49		39		20
Commercial investor real estate mortgage	—		—		—		5		—

Total investor real estate	—		—		—		5		—
Residential first mortgage	—		1		—		—		1
Home equity—lines of credit	1		1		1		1		2
Home equity—closed-end	1		—		—		—		—
Consumer credit card	14		12		12		11		9
Other consumer—exit portfolios	3		3		5		4		4
Other consumer (2)	51		43		38		33		99
Total consumer	70		60		56		49		115
Total	124		112		105		93		135

Recoveries of loans previously charged-off:
Commercial and industrial	12		21		10		10		12
Commercial real estate mortgage—owner-occupied	1		—		—		1		1

Total commercial	13		21		10		11		13
Commercial investor real estate mortgage	—		—		—		1		—

Total investor real estate	—		—		—		1		—
Residential first mortgage	—		1		—		1		1
Home equity—lines of credit	1		2		3		3		2
Home equity—closed-end	1		—		—		—		—
Consumer credit card	3		1		2		2		2
Other consumer—exit portfolios	—		1		1		1		—
Other consumer	5		5		6		5		7
Total consumer	10		10		12		12		12
Total	23		31		22		24		25

Net charge-offs (recoveries):
Commercial and industrial	41		31		39		28		8
Commercial real estate mortgage—owner-occupied	—		—		—		—		(1)

Total commercial	41		31		39		28		7
Commercial investor real estate mortgage	—		—		—		4		—

Total investor real estate	—		—		—		4		—
Residential first mortgage	—		—		—		(1)		—
Home equity—lines of credit	—		(1)		(2)		(2)		—
Home equity—closed-end	—		—		—		—		—
Consumer credit card	11		11		10		9		7
Other consumer—exit portfolios	3		2		4		3		4
Other consumer	46		38		32		28		92
Total consumer	60		50		44		37		103
Total	101		81		83		69		110

Provision for loan losses (2)	135		122		129		115		103

Ending allowance for loan losses (ALL)	1,547		1,513		1,472		1,464		1,418
Beginning reserve for unfunded credit commitments	120		124		118		121		89
Provision for (benefit from) unfunded credit losses	10		(4)		6		(3)		32
Ending reserve for unfunded commitments	130		120		124		118		121
Allowance for credit losses (ACL) at period end	$	1,677	$	1,633	$	1,596	$	1,582	$	1,539

Regions Financial Corporation and Subsidiaries

Financial Supplement (unaudited) to Third Quarter 2023 Earnings Release


Credit Quality (continued)

	As of and for Quarter Ended
($ amounts in millions)	9/30/2023			6/30/2023			3/31/2023			12/31/2022			9/30/2022
Net loan charge-offs as a % of average loans, annualized (3):
Commercial and industrial	0.31		%	0.24		%	0.31		%	0.22		%	0.07		%
Commercial real estate mortgage—owner-occupied	0.04		%	0.01		%	(0.02)		%	(0.02)		%	(0.06)		%
Commercial real estate construction—owner-occupied	(0.01)		%	(0.27)		%	(0.05)		%	(0.02)		%	(0.08)		%
Total commercial	0.29		%	0.22		%	0.28		%	0.19		%	0.06		%
Commercial investor real estate mortgage	(0.01)		%	—		%	—		%	0.27		%	(0.01)		%
Commercial investor real estate construction	—		%	(0.04)		%	—		%	(0.01)		%	—		%
Total investor real estate	—		%	(0.01)		%	—		%	0.21		%	(0.01)		%
Residential first mortgage	—		%	—		%	—		%	(0.03)		%	(0.01)		%
Home equity—lines of credit	(0.07)		%	(0.08)		%	(0.22)		%	(0.22)		%	(0.08)		%
Home equity—closed-end	(0.02)		%	—		%	(0.03)		%	(0.02)		%	(0.09)		%
Consumer credit card	3.48		%	3.38		%	3.47		%	2.94		%	2.39		%
Other consumer—exit portfolios	3.14		%	2.56		%	2.69		%	2.46		%	2.13		%
Other consumer (2)	2.99		%	2.55		%	2.26		%	2.08		%	5.92		%
Total consumer	0.71		%	0.62		%	0.55		%	0.48		%	1.25		%
Total	0.40		%	0.33		%	0.35		%	0.29		%	0.46		%
Non-performing loans, excluding loans held for sale	$	642		$	492		$	554		$	500		$	495
Non-performing loans held for sale	2			1			1			3			2
Non-performing loans, including loans held for sale	644			493			555			503			497
Foreclosed properties	15			15			15			13			14

Non-performing assets (NPAs)	$	659		$	508		$	570		$	516		$	511
Loans past due > 90 days (4)	$	140		$	131		$	128		$	208		$	105


Criticized loans—business (5)	$	4,167		$	4,039		$	3,725		$	3,149		$	2,771
Credit Ratios (3):
ACL/Loans, net	1.70		%	1.65		%	1.63		%	1.63		%	1.63		%
ALL/Loans, net	1.56		%	1.53		%	1.50		%	1.51		%	1.50		%
Allowance for credit losses to non-performing loans, excluding loans held for sale	261		%	332		%	288		%	317		%	311		%
Allowance for loan losses to non-performing loans, excluding loans held for sale	241		%	308		%	266		%	293		%	287		%
Non-performing loans, excluding loans held for sale/Loans, net	0.65		%	0.50		%	0.56		%	0.52		%	0.52		%
NPAs (ex. 90+ past due)/Loans, foreclosed properties, and non-performing loans held for sale	0.67		%	0.51		%	0.58		%	0.53		%	0.54		%
NPAs (inc. 90+ past due)/Loans, foreclosed properties, and non-performing loans held for sale (4)	0.81		%	0.64		%	0.71		%	0.75		%	0.65		%

(1)Regions adopted accounting guidance on January 1, 2023 that removed the definition of troubled debt restructurings and replaced it with modifications to borrowers experiencing financial difficulty. The Company recorded the cumulative effect of the change in accounting guidance as an increase in retained earnings and a reduction in deferred tax assets.

(2)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.

(3)Amounts have been calculated using whole dollar values.

(4)Excludes guaranteed residential first mortgages that are 90+ days past due and still accruing. Refer to the footnotes on page 21 for amounts related to these loans.

(5)Business represents the combined total of commercial and investor real estate loans.

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 Ended
($ amounts in millions)	9/30/2023			6/30/2023			3/31/2023			12/31/2022			9/30/2022
Net loan charge-offs (GAAP)	$	101		$	81		$	83		$	69		$	110
Less: charge-offs associated with the sale of unsecured consumer loans	—			—			—			—			63
Adjusted net loan charge-offs (non-GAAP)	$	101		$	81		$	83		$	69		$	47
Adjusted net loan charge-offs as a % of average loans, annualized (non-GAAP) (1)	0.40		%	0.33		%	0.35		%	0.29		%	0.19		%

(1)Amounts have been calculated using whole dollar values.

Regions Financial Corporation and Subsidiaries

Financial Supplement (unaudited) to Third Quarter 2023 Earnings Release

Non-Performing Loans (excludes loans held for sale)


	As of
($ amounts in millions, %'s calculated using whole dollar values)	9/30/2023				6/30/2023				3/31/2023				12/31/2022				9/30/2022
Commercial and industrial	$	361	0.70	%	$	297	0.57	%	$	385	0.74	%	$	347	0.68	%	$	333	0.67	%
Commercial real estate mortgage—owner-occupied	43		0.90	%	34		0.72	%	34		0.68	%	29		0.58	%	29		0.57	%
Commercial real estate construction—owner-occupied	10		3.50	%	5		1.60	%	6		1.85	%	6		1.93	%	6		2.22	%
Total commercial	414		0.73	%	336		0.59	%	425		0.74	%	382		0.68	%	368		0.67	%
Commercial investor real estate mortgage	169		2.63	%	98		1.51	%	67		1.06	%	53		0.83	%	59		0.93	%
Total investor real estate	169		1.94	%	98		1.14	%	67		0.80	%	53		0.63	%	59		0.72	%
Residential first mortgage	24		0.12	%	24		0.12	%	26		0.14	%	31		0.16	%	29		0.16	%
Home equity—lines of credit	29		0.91	%	28		0.84	%	30		0.90	%	28		0.79	%	32		0.90	%
Home equity—closed-end	6		0.23	%	6		0.24	%	6		0.23	%	6		0.24	%	7		0.28	%
Total consumer	59		0.18	%	58		0.17	%	62		0.19	%	65		0.20	%	68		0.22	%
Total non-performing loans	$	642	0.65	%	$	492	0.50	%	$	554	0.56	%	$	500	0.52	%	$	495	0.52	%

Early and Late Stage Delinquencies


Accruing 30-89 Days Past Due Loans	As of
($ amounts in millions, %'s calculated using whole dollar values)	9/30/2023				6/30/2023				3/31/2023				12/31/2022				9/30/2022
Commercial and industrial	$	52	0.10	%	$	55	0.10	%	$	47	0.09	%	$	56	0.11	%	$	77	0.16	%
Commercial real estate mortgage—owner-occupied	7		0.14	%	4		0.09	%	7		0.14	%	9		0.18	%	5		0.09	%

Total commercial	59		0.10	%	59		0.10	%	54		0.09	%	65		0.12	%	82		0.15	%
Commercial investor real estate mortgage	115		1.78	%	1		0.01	%	1		0.01	%	—		—	%	1		—	%

Total investor real estate	115		1.31	%	1		0.01	%	1		0.01	%	—		—	%	1		—	%
Residential first mortgage—non-guaranteed (1)	95		0.48	%	83		0.42	%	74		0.39	%	86		0.47	%	85		0.47	%
Home equity—lines of credit	33		1.02	%	28		0.85	%	28		0.83	%	30		0.85	%	20		0.58	%
Home equity—closed-end	11		0.46	%	10		0.43	%	10		0.38	%	11		0.44	%	11		0.44	%
Consumer credit card	18		1.43	%	16		1.28	%	15		1.24	%	16		1.26	%	17		1.39	%
Other consumer—exit portfolios	6		1.71	%	6		1.54	%	7		1.38	%	10		1.75	%	10		1.49	%
Other consumer	80		1.30	%	79		1.32	%	69		1.18	%	67		1.18	%	49		0.93	%
Total consumer (1)	243		0.85	%	222		0.78	%	203		0.74	%	220		0.82	%	192		0.73	%
Total accruing 30-89 days past due loans (1)	$	417	0.42	%	$	282	0.29	%	$	258	0.26	%	$	285	0.29	%	$	275	0.29	%

Accruing 90+ Days Past Due Loans	As of
($ amounts in millions, %'s calculated using whole dollar values)	9/30/2023				6/30/2023				3/31/2023				12/31/2022				9/30/2022
Commercial and industrial	$	13	0.02	%	$	10	0.02	%	$	23	0.04	%	$	30	0.06	%	$	4	0.01	%
Commercial real estate mortgage—owner-occupied	1		0.01	%	1		0.02	%	—		0.01	%	1		0.02	%	—		—	%
Total commercial	14		0.02	%	11		0.02	%	23		0.04	%	31		0.05	%	4		0.01	%
Commercial investor real estate mortgage	—		—	%	—		—	%	—		—	%	40		0.63	%	—		—	%
Total investor real estate	—		—	%	—		—	%	—		—	%	40		0.48	%	—		—	%
Residential first mortgage—non-guaranteed (2)	58		0.30	%	53		0.28	%	47		0.25	%	47		0.26	%	50		0.28	%
Home equity—lines of credit	16		0.49	%	19		0.56	%	17		0.50	%	15		0.44	%	17		0.47	%
Home equity—closed-end	7		0.29	%	8		0.31	%	8		0.36	%	8		0.33	%	8		0.31	%
Consumer credit card	17		1.37	%	15		1.26	%	15		1.20	%	15		1.19	%	13		1.12	%
Other consumer—exit portfolios	1		0.18	%	1		0.18	%	1		0.18	%	1		0.19	%	1		0.20	%
Other consumer	27		0.44	%	24		0.40	%	17		0.30	%	17		0.29	%	12		0.22	%
Total consumer (2)	126		0.45	%	120		0.43	%	105		0.42	%	103		0.42	%	101		0.40	%
Total accruing 90+ days past due loans (2)	$	140	0.14	%	$	131	0.13	%	$	128	0.13	%	$	174	0.18	%	$	105	0.11	%

Total delinquencies (1) (2)	$	557	0.57	%	$	413	0.42	%	$	386	0.39	%	$	459	0.47	%	$	380	0.40	%

(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 $43 million at 9/30/2023, $36 million at 6/30/2023, $37 million at 3/31/2023, $46 million at 12/31/2022, and $39 million at 9/30/2022.

(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 $23 million at 9/30/2023, $24 million at 6/30/2023, $30 million at 3/31/2023, $34 million at 12/31/2022, and $26 million at 9/30/2022.