Strategy. Momentum. Results. Regions reports second quarter 2021 earnings of $748 million, earnings per share of $0.77

Delivers solid revenue and pre-tax pre-provision income(1).

BIRMINGHAM, Ala.–(BUSINESS WIRE)–Regions Financial Corporation (NYSE:RF) today announced earnings for the second quarter ended June 30, 2021. The company reported net income available to common shareholders of $748 million and earnings per diluted share of $0.77. Compared to the second quarter of 2020, total revenue grew 2 percent while pre-tax pre-provision income(1) increased 10 percent. Adjusted revenue(1) increased 1 percent while adjusted pre-tax pre-provision income(1) increased 3 percent. The company also generated year-to-date positive operating leverage of 3.9 percent on a reported basis and 1.8 percent on an adjusted basis(1) versus the comparable prior-year period.


Our teams delivered solid performance throughout the second quarter, and as a result of our strategic planning and key investments, we are well positioned to generate long-term, sustainable growth over time,” said John Turner, President and CEO of Regions Financial Corporation. “Regions operates in highly attractive markets that are benefiting from favorable population trends and strong employment opportunities. In each of these markets, our bankers are serving new and long-term customers through customized financial insights, enhanced technology and a commitment to superior service. We have taken several steps – adding talented bankers, investing in service and delivery channels, and enhancing our capabilities through our bolt-on acquisition strategy – to build on our momentum and create greater value for customers, communities, and shareholders over time.”

Key factors positioning Regions for continued growth include:

 1) Digital investments are generating returns.

  • Consumers are increasingly leveraging Regions’ online and mobile banking enhancements with the bank generating 9% year-over-year growth in active digital banking users and 13% year-over-year growth in active mobile banking users.
  • Digitized sales and capabilities in the consumer bank are delivering greater value for customers and Regions’ operations.
  • Artificial intelligence is creating the bank of tomorrow, enhancing and evolving the ways Regions serves customers representing all segments of the company.

2) Business segments are proving resilient.

  • Key talent hires of client-facing associates, particularly in growth markets, position Regions to grow further amid long-term economic recovery from the COVID-19 pandemic.
  • A consistently modernized branch network, including in growth markets such as metro Houston, Orlando, and Atlanta, combines in-person financial consultation with enhanced technology, supporting further account growth while creating greater efficiencies across Regions’ retail-banking footprint.

3) Strategic decisions are delivering long-term results.

  • Regions has identified high-growth markets in its existing footprint that are benefiting from population and business growth, such as Florida, Texas, and Tennessee, which further position Regions to reach more consumers and businesses with high-value financial services.
  • Regions’ credit quality continues to grow stronger, demonstrating resiliency and prudent risk management amid evolving economic conditions.
  • Regions issued its inaugural Task Force on Climate-related Financial Disclosures (“TCFD”) Report demonstrating how the company is actively working to address risks and opportunities related to climate change through sustainable business practices.

SUMMARY OF SECOND QUARTER 2021 RESULTS:

Quarter Ended

(amounts in millions, except per share data)

6/30/2021

 

3/31/2021

 

6/30/2020

Net income

$

790

 

 

$

642

 

 

$

(214

)

Preferred dividends and other*

42

 

 

28

 

 

23

 

Net income available to common shareholders

$

748

 

 

$

614

 

 

$

(237

)

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average diluted shares outstanding

965

 

 

968

 

 

960

 

Actual shares outstanding—end of period

955

 

 

961

 

 

960

 

 

 

 

 

 

 

Diluted earnings per common share

$

0.77

 

 

$

0.63

 

 

$

(0.25

)

 

 

 

 

 

 

Selected items impacting earnings:

 

 

 

 

 

Pre-tax adjusted items(1):

 

 

 

 

 

Adjustments to non-interest expense(1)

$

(3

)

 

$

(10

)

 

$

(26

)

Adjustments to non-interest income(1)

19

 

 

4

 

 

1

 

Total pre-tax adjusted items(1)

$

16

 

 

$

(6

)

 

$

(25

)

 

 

 

 

 

 

After-tax preferred stock redemption expense(1)*

$

(13

)

 

$

 

 

$

 

 

 

 

 

 

 

Diluted EPS impact**

$

 

 

$

 

 

$

(0.02

)

 

 

 

 

 

 

Pre-tax additional selected items***:

 

 

 

 

 

CECL provision less than (in excess of) net charge-offs

$

384

 

 

$

225

 

 

$

(700

)

Capital markets income – CVA/DVA

(4

)

 

11

 

 

34

 

MSR net hedge performance

(6

)

 

7

 

 

2

 

PPP loan interest income****

43

 

 

40

 

 

18

 

COVID-19 related expenses

 

 

 

 

(19

)

 

 

 

 

 

 

* The second quarter 2021 amount includes $13 million of Series A preferred stock issuance costs, which reduced net income available to common shareholders when the shares were redeemed.

** Based on income taxes at an approximate 25% incremental rate. Second quarter of 2021 bank-owned life insurance claim is tax free.

*** Items impacting results or trends during the quarter, but are not considered non-GAAP adjustments. These items generally include market-related measures, impacts of new accounting guidance, or event driven actions.

**** Interest income for PPP loans includes estimated funding costs.

Highlights for the quarter

Compared to the first quarter of 2021, total revenue decreased approximately 2 percent on a reported basis and 3 percent on an adjusted basis(1), driven primarily by a reduction in non-interest income. Net interest income remained relatively stable, while reported net interest margin decreased 21 basis points. Adjusted net interest margin(1) decreased 9 basis points. Non-interest income decreased 3 percent on a reported basis and 6 percent on an adjusted basis(1) driven primarily by declines in both capital markets and mortgage income. Wealth management income and card and ATM fees, however, increased 5 percent and 11 percent, respectively. Service charges income remained below pre-pandemic levels but increased 4 percent compared to the first quarter. Non-interest expense decreased 3 percent on both a reported and adjusted basis(1), driven by decreases in most categories partially offset by increased marketing expense. The company’s second quarter efficiency ratio improved to 56.4 percent on a reported basis while increasing modestly to 56.9 percent on an adjusted basis(1). Pre-tax pre-provision income(1) increased 1 percent on a reported basis but decreased 3 percent on an adjusted basis(1) compared to the first quarter of 2021.

Compared to the first quarter of 2021, annualized net charge-offs decreased 17 basis points to 0.23 percent of average loans, while total non-performing loans, total delinquencies and business services criticized loans also improved. The allowance for credit losses decreased 44 basis points to 2.00 percent of total loans, representing 253 percent of non-performing loans, excluding loans held for sale. Excluding PPP loans, which are fully government guaranteed, the allowance for credit losses was 2.07 percent(1) of total loans. The impact of charge-offs previously provided for, continued improvements in economic outlook due to vaccine deployment, as well as lower expectations of future credit losses due to the benefit of government stimulus programs led to a reduction in the allowance for credit losses in the quarter. The overall allowance reduction resulted in a net $337 million benefit to the credit loss provision during the quarter.

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. Non-GAAP adjusted items(1) in the current quarter reflect, among other items, an $18 million claim benefit in bank-owned life insurance partially offset by $2 million of severance charges within salaries and benefits. In addition, second quarter adjustments include $13 million of Series A preferred stock redemption expense.

Total revenue

 

 

Quarter Ended

($ amounts in millions)

 

6/30/2021

 

3/31/2021

 

6/30/2020

 

2Q21 vs. 1Q21

 

2Q21 vs. 2Q20

Net interest income

 

$

963

 

 

$

967

 

 

$

972

 

 

$

(4)

 

 

(0.4)

%

 

$

(9)

 

 

(0.9)

%

Taxable equivalent adjustment

 

12

 

 

11

 

 

13

 

 

1

 

 

9.1

%

 

(1)

 

 

(7.7)

%

Net interest income, taxable equivalent basis

 

$

975

 

 

$

978

 

 

$

985

 

 

$

(3)

 

 

(0.3)

%

 

$

(10)

 

 

(1.0)

%

Net interest margin (FTE)

 

2.81

%

 

3.02

%

 

3.19

%

 

 

 

 

 

 

 

 

Adjusted net interest margin (FTE) (non-GAAP)(1)

 

3.31

%

 

3.40

%

 

3.36

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service charges on deposit accounts

 

$

163

 

 

$

157

 

 

$

131

 

 

6

 

 

3.8

%

 

32

 

 

24.4

%

Card and ATM fees

 

128

 

 

115

 

 

101

 

 

13

 

 

11.3

%

 

27

 

 

26.7

%

Wealth management income

 

96

 

 

91

 

 

79

 

 

5

 

 

5.5

%

 

17

 

 

21.5

%

Capital markets income

 

61

 

 

100

 

 

95

 

 

(39)

 

 

(39.0)

%

 

(34)

 

 

(35.8)

%

Mortgage income

 

53

 

 

90

 

 

82

 

 

(37)

 

 

(41.1)

%

 

(29)

 

 

(35.4)

%

Commercial credit fee income

 

23

 

 

22

 

 

17

 

 

1

 

 

4.5

%

 

6

 

 

35.3

%

Bank-owned life insurance

 

33

 

 

17

 

 

18

 

 

16

 

 

94.1

%

 

15

 

 

83.3

%

Securities gains (losses), net

 

1

 

 

1

 

 

1

 

 

 

 

%

 

 

 

%

Market value adjustments on employee benefit assets*

 

8

 

 

7

 

 

16

 

 

1

 

 

14.3

%

 

(8)

 

 

(50.0)

%

Gains on equity investment**

 

 

 

3

 

 

 

 

(3)

 

 

(100.0)

 

 

 

 

NM

Other

 

53

 

 

38

 

 

33

 

 

15

 

 

39.5

%

 

20

 

 

60.6

%

Non-interest income

 

$

619

 

 

$

641

 

 

$

573

 

 

$

(22)

 

 

(3.4)

%

 

$

46

 

 

8.0

%

Total revenue

 

$

1,582

 

 

$

1,608

 

 

$

1,545

 

 

$

(26)

 

 

(1.6)

%

 

$

37

 

 

2.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted total revenue (non-GAAP)(1)

 

$

1,563

 

 

$

1,604

 

 

$

1,544

 

 

$

(41)

 

 

(2.6)

%

 

$

19

 

 

1.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NM – Not Meaningful

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

** The first quarter of 2021 amount reflects a gain on sale of an equity investment.

Total revenue of approximately $1.6 billion decreased 2 percent on a reported basis and 3 percent on an adjusted basis(1) compared to the first quarter of 2021. Net interest income remained relatively stable but was negatively impacted by a lower mix of higher-yielding consumer loans. The company offset pressure on asset yields from the low interest rate environment through its interest rate hedging program, a continued focus on lower deposit costs and active cash management strategies. The company also benefited from the addition of $2 billion of securities purchases during the quarter. These additional securities purchases benefited net interest income and reported net interest margin; however, they reduce adjusted net interest margin. Strong deposit growth trends continued, and cash balances rose to new record levels, also negatively impacting net interest margin. Excluding the impact of PPP interest income and excess cash balances held at the Federal Reserve, the company’s adjusted net interest margin(1) decreased 9 basis points to 3.31 percent.

Non-interest income decreased 3 percent on a reported basis and 6 percent on an adjusted basis(1), compared to the first quarter of 2021. Decreases in mortgage and capital markets income were partially offset by increases in most other categories. Mortgage income decreased 41 percent primarily due to gain on sale compression and hedge performance. Capital markets decreased 39 percent compared to an exceptionally strong first quarter of 2021. Wealth management income increased 5 percent reflecting higher sales volumes and improved market values. Reflecting increased card spend and transaction levels, service charges and card and ATM fees increased 4 percent and 11 percent, respectively. Additionally, bank-owned life insurance increased to $33 million during the quarter and included the benefit of a significant claim.

Non-interest expense

 

 

Quarter Ended

($ amounts in millions)

 

6/30/2021

 

3/31/2021

 

6/30/2020

 

2Q21 vs. 1Q21

 

2Q21 vs. 2Q20

Salaries and employee benefits

 

$

532

 

 

$

546

 

 

$

527

 

 

$

(14)

 

 

(2.6)

%

 

$

5

 

 

0.9

%

Equipment and software expense

 

89

 

 

90

 

 

86

 

 

(1)

 

 

(1.1)

%

 

3

 

 

3.5

%

Net occupancy expense

 

75

 

 

77

 

 

76

 

 

(2)

 

 

(2.6)

%

 

(1)

 

 

(1.3)

%

Outside services

 

39

 

 

38

 

 

44

 

 

1

 

 

2.6

%

 

(5)

 

 

(11.4)

%

Professional, legal and regulatory expenses

 

15

 

 

29

 

 

28

 

 

(14)

 

 

(48.3)

%

 

(13)

 

 

(46.4)

%

Marketing

 

29

 

 

22

 

 

22

 

 

7

 

 

31.8

%

 

7

 

 

31.8

%

FDIC insurance assessments

 

11

 

 

10

 

 

15

 

 

1

 

 

10.0

%

 

(4)

 

 

(26.7)

%

Credit/checkcard expenses

 

17

 

 

14

 

 

12

 

 

3

 

 

21.4

%

 

5

 

 

41.7

%

Branch consolidation, property and equipment charges

 

 

 

5

 

 

10

 

 

(5)

 

 

(100.0)

%

 

(10)

 

 

(100.0)

%

Visa class B shares expense

 

6

 

 

4

 

 

9

 

 

2

 

 

50.0

%

 

(3)

 

 

(33.3)

%

Loss on early extinguishment of debt

 

 

 

 

 

6

 

 

 

 

%

 

(6)

 

 

(100.0)

 

Other

 

85

 

 

93

 

 

89

 

 

(8)

 

 

(8.6)

%

 

(4)

 

 

(4.5)

%

Total non-interest expense

 

$

898

 

 

$

928

 

 

$

924

 

 

$

(30)

 

 

(3.2)

%

 

$

(26)

 

 

(2.8)

%

Total adjusted non-interest expense(1)

 

$

895

 

 

$

918

 

 

$

898

 

 

$

(23)

 

 

(2.5)

%

 

$

(3)

 

 

(0.3)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NM – Not Meaningful

Non-interest expense decreased 3 percent on both a reported and adjusted basis(1) compared to the first quarter of 2021. Salaries and benefits decreased 3 percent driven primarily by a reduction in production-based incentives and payroll taxes partially offset by merit increases that became effective April 1st. Professional fees decreased 48 percent resulting primarily from lower legal costs. Additionally, other expenses and occupancy expense decreased 9 percent and 3 percent, respectively. Partially offsetting these decreases was a 32 percent increase in marketing expense driven by the timing of marketing campaigns.

The company’s second quarter efficiency ratio was 56.4 percent on a reported basis and 56.9 percent on an adjusted basis(1). The effective tax rate was 22.6 percent reflecting improved pre-tax income.

Loans and Leases

 

 

Average Balances

 

 

 

 

 

 

 

 

 

 

 

($ amounts in millions)

 

2Q21

 

1Q21

 

2Q20

 

2Q21 vs. 1Q21

 

2Q21 vs. 2Q20

Commercial and industrial

 

$

43,140

 

 

$

42,816

 

 

$

49,296

 

 

$

324

 

 

0.8

%

 

$

(6,156)

 

 

(12.5)%

Commercial real estate—owner-occupied

 

5,634

 

 

5,678

 

 

5,804

 

 

(44)

 

 

(0.8)

%

 

(170)

 

 

(2.9)%

Investor real estate

 

7,282

 

 

7,222

 

 

7,019

 

 

60

 

 

0.8

%

 

263

 

 

3.7%

Business Lending

 

56,056

 

 

55,716

 

 

62,119

 

 

340

 

 

0.6

%

 

(6,063)

 

 

(9.8)%

Residential first mortgage

 

16,795

 

 

16,606

 

 

14,884

 

 

189

 

 

1.1

%

 

1,911

 

 

12.8%

Home equity

 

6,774

 

 

7,085

 

 

8,042

 

 

(311)

 

 

(4.4)

%

 

(1,268)

 

 

(15.8)%

Indirect—other consumer*

 

2,174

 

 

2,352

 

 

3,111

 

 

(178)

 

 

(7.6)

%

 

(937)

 

 

(30.1)%

Indirect—vehicles**

 

690

 

 

850

 

 

1,441

 

 

(160)

 

 

(18.8)

%

 

(751)

 

 

(52.1)%

Consumer credit card

 

1,108

 

 

1,151

 

 

1,230

 

 

(43)

 

 

(3.7)

%

 

(122)

 

 

(9.9)%

Other consumer

 

954

 

 

995

 

 

1,137

 

 

(41)

 

 

(4.1)

%

 

(183)

 

 

(16.1)%

Consumer Lending

 

28,495

 

 

29,039

 

 

29,845

 

 

(544)

 

 

(1.9)

%

 

(1,350)

 

 

(4.5)%

Total Loans

 

$

84,551

 

 

$

84,755

 

 

$

91,964

 

 

$

(204)

 

 

(0.2)

%

 

$

(7,413)

 

 

(8.1)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Business Lending (non-GAAP)(1)

 

$

52,293

 

 

$

52,149

 

 

$

58,906

 

 

144

 

 

0.3

%

 

$

(6,613)

 

 

(11.2)%

Adjusted Consumer Lending (non-GAAP)(1)

 

26,896

 

 

27,155

 

 

26,911

 

 

(259)

 

 

(1.0)

%

 

(15)

 

 

(0.1)%

Adjusted Total Loans (non-GAAP)(1)

 

$

79,189

 

 

$

79,304

 

 

$

85,817

 

 

$

(115)

 

 

(0.1)

%

 

$

(6,628)

 

 

(7.7)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NM – Not meaningful.

* A portion of indirect other consumer is an exit portfolio due to the company’s decision not to renew a 3rd party relationship in the fourth quarter of 2019.

** Indirect vehicles is an exit portfolio.

Average loans and leases remained stable compared to the prior quarter. Excluding the company’s indirect auto and indirect-other consumer exit portfolios, and outstanding PPP loans, adjusted average loans and leases(1) also remained stable; however, adjusted ending loans and leases increased approximately $740 million or 1 percent. Adjusted average business lending(1) remained stable as growth in corporate lending across asset-based lending, healthcare, transportation, energy, and financial services was offset by declines in middle market lending. While still well below pre-pandemic levels, commercial loan line utilization levels ended the quarter modestly higher at approximately 39.6 percent. Excluding exit portfolios, adjusted average consumer lending(1) decreased 1 percent as growth in residential first mortgage was offset by declines in other categories.

Deposits

 

 

Average Balances

 

 

 

 

 

 

 

 

 

 

 

($ amounts in millions)

 

2Q21

 

1Q21

 

2Q20

 

2Q21 vs. 1Q21

 

2Q21 vs. 2Q20

Customer low-cost deposits

 

$

126,315

 

 

$

117,775

 

 

$

104,159

 

 

$

8,540

 

 

7.3%

 

$

22,156

 

 

21.3%

Customer time deposits

 

4,813

 

 

5,158

 

 

6,690

 

 

(345)

 

 

(6.7)%

 

(1,877)

 

 

(28.1)%

Corporate treasury time deposits

 

1

 

 

4

 

 

72

 

 

(3)

 

 

(75.0)%

 

(71)

 

 

(98.6)%

Corporate treasury other deposits

 

3

 

 

 

 

 

 

3

 

 

NM

 

3

 

 

NM

Total Deposits

 

$

131,132

 

 

$

122,937

 

 

$

110,921

 

 

$

8,195

 

 

6.7%

 

$

20,211

 

 

18.2%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

($ amounts in millions)

 

2Q21

 

1Q21

 

2Q20

 

2Q21 vs. 1Q21

 

2Q21 vs. 2Q20

Consumer Bank Segment

 

$

78,200

 

 

$

72,949

 

 

$

65,722

 

 

$

5,251

 

 

7.2%

 

$

12,478

 

 

19.0%

Corporate Bank Segment

 

42,966

 

 

40,285

 

 

36,409

 

 

2,681

 

 

6.7%

 

6,557

 

 

18.0%

Wealth Management Segment

 

9,519

 

 

9,281

 

 

8,382

 

 

238

 

 

2.6%

 

1,137

 

 

13.6%

Other

 

447

 

 

422

 

 

408

 

 

25

 

 

5.9%

 

39

 

 

9.6%

Total Deposits

 

$

131,132

 

 

$

122,937

 

 

$

110,921

 

 

$

8,195

 

 

6.7%

 

$

20,211

 

 

18.2%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total average deposit balances increased 7 percent to a new record high in the second quarter of 2021. All three business segments experienced deposit growth with the largest contribution within the Consumer segment reflecting the impact of government stimulus payments as well as new account growth.

Asset quality

 

 

As of and for the Quarter Ended

($ amounts in millions)

 

6/30/2021

 

3/31/2021

 

6/30/2020

ACL/Loans, net

 

2.00%

 

2.44%

 

2.68%

ALL/Loans, net

 

1.90%

 

2.33%

 

2.51%

Allowance for credit losses to non-performing loans, excluding loans held for sale

 

253%

 

280%

 

395%

Allowance for loan losses to non-performing loans, excluding loans held for sale

 

240%

 

268%

 

370%

Provision for (benefit from) credit losses

 

$(337)

 

$(142)

 

$882

Net loans charged-off

 

$47

 

$83

 

$182

Net loan charge-offs as a % of average loans, annualized

 

0.23%

 

0.40%

 

0.80%

Non-accrual loans, excluding loans held for sale/Loans, net

 

0.79%

 

0.87%

 

0.68%

NPAs (ex. 90+ past due)/Loans, foreclosed properties, non-marketable investments and non-performing loans held for sale

 

0.93%

 

0.90%

 

0.74%

NPAs (inc. 90+ past due)/Loans, foreclosed properties, non-marketable investments and non-performing loans held for sale*

 

1.09%

 

1.09%

 

0.91%

Total TDRs, excluding loans held for sale

 

$620

 

$577

 

$626

Total Criticized Loans—Business Services**

 

$3,222

 

$3,756

 

$4,225

* 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.

The impact of expected charge-offs previously provided for, continued improvements in the economic outlook due to vaccine deployment, as well as lower expectations of future credit losses due to the benefit of stimulus programs, resulted in a net $337 million benefit from credit losses during the second quarter of 2021. The resulting allowance for credit losses was equal to 2.00 percent of total loans and 253 percent of total non-accrual loans, excluding loans held for sale. Excluding PPP loans, which are fully government guaranteed, the allowance for credit losses amounted to 2.07 percent(1) of total loans. Annualized net charge-offs decreased 17 basis points to 0.23 percent of average loans, matching the company’s lowest level in over a decade. The decrease reflects broad-based improvement across the commercial and consumer loan portfolios, as well as recoveries associated with strong collateral asset values. Total non-accrual loans, excluding loans held for sale, total delinquencies, and total business services criticized loans all improved during the quarter.

Capital and liquidity

 

 

As of and for Quarter Ended

 

 

6/30/2021

 

3/31/2021

 

6/30/2020

Common Equity Tier 1 ratio(2)

 

10.4%

 

10.3%

 

8.9%

Tier 1 capital ratio(2)

 

11.9%

 

11.9%

 

10.4%

Tangible common stockholders’ equity to tangible assets (non-GAAP)(1)

 

7.58%

 

7.43%

 

7.72%

Tangible common book value per share (non-GAAP)(1)*

 

$11.94

 

$11.46

 

$11.16

Loans, net of unearned income, to total deposits

 

63.9%

 

65.4%

 

77.5%

* 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 as estimated capital ratios remain well above current regulatory requirements. The Tier 1(2) and Common Equity Tier 1(2) ratios were estimated at 11.9 percent and 10.4 percent, respectively, at quarter-end.

During the second quarter, the company repurchased 8 million shares of common stock for a total of $179 million and declared $147 million in dividends to common shareholders. Earlier this week, the Board of Directors declared a 10 percent increase to the company’s quarterly common stock dividend to $0.17 per share.

The company voluntarily participated in the Federal Reserve Supervisory Stress Test administered during the first half of 2021 and exceeded all minimum capital levels under the provided scenarios. As a result, Regions’ preliminary Stress Capital Buffer requirement will be 2.5 percent. Regions’ robust capital planning process is designed to ensure the efficient use of capital to support lending activities, business growth opportunities and appropriate shareholder returns.

(1)

 

Non-GAAP; refer to pages 6, 7, 11, 12, 13, 15, 19, 21, 22, 23 and 26  of the financial supplement to this earnings release.

(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 July 23, 2021, an archived recording of the webcast will be available at the Investor Relations page of www.regions.com following the live event. A replay of the earnings call will also be available beginning Friday, July 23, 2021, at 2:30 p.m. ET through Monday, August 23, 2021. To listen by telephone, please dial 855-859-2056, and use access code 9147309.

About Regions Financial Corporation

Regions Financial Corporation (NYSE:RF), with $156 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 more than 1,300 banking offices and approximately 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. 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.

Contacts

Media Contact:
Jeremy King

(205) 264-4551

Investor Relations Contact:
Dana Nolan

(205) 264-7040

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