Page | ||
Financial Highlights | ||
Selected Ratios and Other Information | ||
Consolidated Statements of Income | ||
Consolidated Average Daily Balances and Yield / Rate Analysis from Continuing Operations | ||
Pre-Tax Pre-Provision Income ("PPI") and Adjusted PPI | ||
Non-Interest Income, Mortgage Income and Wealth Management Income | ||
Non-Interest Expense | ||
Reconciliation to GAAP Financial Measures | ||
Adjusted Efficiency Ratios, Adjusted Fee Income Ratios, Adjusted Non-Interest Income / Expense, and Return Ratios | ||
Statement of Discontinued Operations | ||
Credit Quality | ||
Allowance for Credit Losses, Net Charge-Offs and Related Ratios | ||
Allowance for Credit Losses (Continued), Non-Accrual Loans (excludes loans held for sale), Criticized and Classified Loans - Commercial and Investor Real Estate, and Home Equity Lines of Credit - Future Principal Payment Resets | ||
Early and Late Stage Delinquencies | ||
Troubled Debt Restructurings | ||
Consolidated Balance Sheets | ||
Loans and Leases | ||
Deposits | ||
Reconciliation to GAAP Financial Measures | ||
Tangible Common Ratios and Capital | ||
Forward Looking Statements |
Quarter Ended | |||||||||||||||||||
($ amounts in millions, except per share data) | 12/31/2015 | 9/30/2015 | 6/30/2015 | 3/31/2015 | 12/31/2014 | ||||||||||||||
Earnings Summary | |||||||||||||||||||
Interest income and other financing income - taxable equivalent | $ | 953 | $ | 920 | $ | 902 | $ | 903 | $ | 911 | |||||||||
Interest expense - taxable equivalent | 69 | 65 | 63 | 71 | 74 | ||||||||||||||
Depreciation expense on operating lease assets | 28 | — | — | — | — | ||||||||||||||
Net interest income and other financing income - taxable equivalent | 856 | 855 | 839 | 832 | 837 | ||||||||||||||
Less: Taxable-equivalent adjustment | 20 | 19 | 19 | 17 | 17 | ||||||||||||||
Net interest income and other financing income | 836 | 836 | 820 | 815 | 820 | ||||||||||||||
Provision for loan losses | 69 | 60 | 63 | 49 | 8 | ||||||||||||||
Net interest income and other financing income after provision for loan losses | 767 | 776 | 757 | 766 | 812 | ||||||||||||||
Non-interest income | 514 | 497 | 590 | 470 | 474 | ||||||||||||||
Non-interest expense | 873 | 895 | 934 | 905 | 969 | ||||||||||||||
Income from continuing operations before income taxes | 408 | 378 | 413 | 331 | 317 | ||||||||||||||
Income tax expense | 120 | 116 | 124 | 95 | 98 | ||||||||||||||
Income from continuing operations | 288 | 262 | 289 | 236 | 219 | ||||||||||||||
Income (loss) from discontinued operations before income taxes | (6 | ) | (6 | ) | (6 | ) | (4 | ) | (5 | ) | |||||||||
Income tax expense (benefit) | (3 | ) | (2 | ) | (2 | ) | (2 | ) | (2 | ) | |||||||||
Income (loss) from discontinued operations, net of tax | (3 | ) | (4 | ) | (4 | ) | (2 | ) | (3 | ) | |||||||||
Net income | $ | 285 | $ | 258 | $ | 285 | $ | 234 | $ | 216 | |||||||||
Income from continuing operations available to common shareholders | $ | 272 | $ | 246 | $ | 273 | $ | 220 | $ | 203 | |||||||||
Net income available to common shareholders | $ | 269 | $ | 242 | $ | 269 | $ | 218 | $ | 200 | |||||||||
Earnings per common share from continuing operations - basic | $ | 0.21 | $ | 0.19 | $ | 0.20 | $ | 0.16 | $ | 0.15 | |||||||||
Earnings per common share from continuing operations - diluted | 0.21 | 0.19 | 0.20 | 0.16 | 0.15 | ||||||||||||||
Earnings per common share - basic | 0.21 | 0.18 | 0.20 | 0.16 | 0.15 | ||||||||||||||
Earnings per common share - diluted | 0.21 | 0.18 | 0.20 | 0.16 | 0.15 | ||||||||||||||
Balance Sheet Summary | |||||||||||||||||||
At quarter-end—Consolidated | |||||||||||||||||||
Loans, net of unearned income | $ | 81,162 | $ | 81,063 | $ | 80,149 | $ | 78,243 | $ | 77,307 | |||||||||
Allowance for loan losses | (1,106 | ) | (1,115 | ) | (1,115 | ) | (1,098 | ) | (1,103 | ) | |||||||||
Assets | 126,050 | 124,789 | 121,855 | 122,447 | 119,563 | ||||||||||||||
Deposits | 98,430 | 97,178 | 97,075 | 97,477 | 94,200 | ||||||||||||||
Long-term debt (1) | 8,349 | 7,364 | 3,602 | 3,208 | 3,462 | ||||||||||||||
Stockholders' equity | 16,844 | 16,952 | 16,899 | 17,051 | 16,873 | ||||||||||||||
Average balances—Continuing Operations | |||||||||||||||||||
Loans, net of unearned income | $ | 80,760 | $ | 80,615 | $ | 79,175 | $ | 77,942 | $ | 77,182 | |||||||||
Assets | 124,645 | 122,920 | 120,875 | 120,566 | 119,122 | ||||||||||||||
Deposits | 97,488 | 97,166 | 97,100 | 95,783 | 94,024 | ||||||||||||||
Long-term debt (1) | 7,740 | 6,112 | 2,903 | 3,371 | 3,618 | ||||||||||||||
Stockholders' equity | 16,901 | 16,874 | 16,950 | 16,963 | 17,060 |
(1) | The increases in long-term debt in the third and fourth quarters of 2015 were primarily the result of FHLB advances with one to two year maturities. |
As of and for Quarter Ended | |||||||||||||||||||
12/31/2015 | 9/30/2015 | 6/30/2015 | 3/31/2015 | 12/31/2014 | |||||||||||||||
Return on average assets from continuing operations* | 0.87 | % | 0.79 | % | 0.90 | % | 0.74 | % | 0.68 | % | |||||||||
Return on average tangible common stockholders’ equity (non-GAAP)* (1) | 9.61 | % | 8.65 | % | 9.66 | % | 7.91 | % | 7.04 | % | |||||||||
Adjusted efficiency ratio from continuing operations (non-GAAP) (1)(2) | 63.4 | % | 66.8 | % | 64.5 | % | 64.9 | % | 66.1 | % | |||||||||
Common book value per share | $ | 12.35 | $ | 12.36 | $ | 12.06 | $ | 12.05 | $ | 11.81 | |||||||||
Tangible common book value per share (non-GAAP) (1) | $ | 8.52 | $ | 8.58 | $ | 8.37 | $ | 8.39 | $ | 8.18 | |||||||||
Tangible common stockholders’ equity to tangible assets (non-GAAP) (1) | 9.13 | % | 9.34 | % | 9.52 | % | 9.59 | % | 9.66 | % | |||||||||
Basel I Tier 1 common equity risk-based ratio (non-GAAP) (4) | N/A | N/A | N/A | N/A | 11.7 | % | |||||||||||||
Basel III common equity (3) | $ | 11,543 | $ | 11,438 | $ | 11,527 | $ | 11,477 | N/A | ||||||||||
Basel III common equity Tier 1 ratio (3) | 10.9 | % | 11.0 | % | 11.3 | % | 11.4 | % | N/A | ||||||||||
Basel III common equity Tier 1 ratio—Fully Phased-In Pro-Forma (non-GAAP) (1)(3)(4) | 10.7 | % | 10.8 | % | 11.1 | % | 11.2 | % | 11.0 | % | |||||||||
Tier 1 capital ratio (3)(4)(5) | 11.7 | % | 11.7 | % | 12.1 | % | 12.2 | % | 12.5 | % | |||||||||
Total risk-based capital ratio (3)(4)(5) | 13.9 | % | 14.0 | % | 14.4 | % | 14.6 | % | 15.3 | % | |||||||||
Leverage ratio (3)(4)(5) | 10.4 | % | 10.4 | % | 10.6 | % | 10.6 | % | 10.9 | % | |||||||||
Effective tax rate (6) | 29.3 | % | 30.7 | % | 30.1 | % | 28.7 | % | 31.0 | % | |||||||||
Allowance for loan losses as a percentage of loans, net of unearned income | 1.36 | % | 1.38 | % | 1.39 | % | 1.40 | % | 1.43 | % | |||||||||
Allowance for loan losses to non-performing loans, excluding loans held for sale | 1.41x | 1.41x | 1.49x | 1.37x | 1.33x | ||||||||||||||
Net interest margin (FTE) from continuing operations*(9) | 3.08 | % | 3.13 | % | 3.16 | % | 3.18 | % | 3.17 | % | |||||||||
Loans, net of unearned income, to total deposits | 82.5 | % | 83.4 | % | 82.6 | % | 80.3 | % | 82.1 | % | |||||||||
Net charge-offs as a percentage of average loans* | 0.38 | % | 0.30 | % | 0.23 | % | 0.28 | % | 0.42 | % | |||||||||
Non-accrual loans, excluding loans held for sale, as a percentage of loans | 0.96 | % | 0.97 | % | 0.94 | % | 1.02 | % | 1.07 | % | |||||||||
Non-performing assets (excluding loans 90 days past due) as a percentage of loans, foreclosed properties and non-performing loans held for sale | 1.13 | % | 1.14 | % | 1.13 | % | 1.24 | % | 1.28 | % | |||||||||
Non-performing assets (including loans 90 days past due) as a percentage of loans, foreclosed properties and non-performing loans held for sale (7) | 1.39 | % | 1.40 | % | 1.38 | % | 1.51 | % | 1.57 | % | |||||||||
Associate headcount (8) | 23,916 | 23,952 | 23,694 | 23,601 | 23,723 | ||||||||||||||
ATMs | 1,962 | 1,966 | 1,960 | 1,966 | 1,997 | ||||||||||||||
Branch Statistics | |||||||||||||||||||
Full service | 1,548 | 1,549 | 1,549 | 1,551 | 1,584 | ||||||||||||||
Drive-thru/transaction service only | 79 | 81 | 82 | 82 | 82 | ||||||||||||||
Total branch outlets | 1,627 | 1,630 | 1,631 | 1,633 | 1,666 |
(1) | See reconciliation of GAAP to non-GAAP Financial Measures on pages 11 and 22. |
(2) | During the fourth quarter of 2015, Regions corrected the accounting for certain leases, for which Regions is the lessor. These leases had been previously classified as capital leases but were subsequently determined to be operating leases and totaled approximately $834 million at December 31, 2015. The aggregate impact of this adjustment lowered net interest income and other financing income $15 million. Excluding the negative impact of the $15 million, the adjusted efficiency ratio would have been 62.7%. During the third quarter of 2015, approximately $23 million of FDIC insurance assessment adjustments to prior assessments were recorded. Excluding the $23 million, the adjusted efficiency ratio would have been 65.0%. |
(3) | Current quarter Basel III common equity as well as the Basel III common equity Tier 1, Tier 1 capital, Total risk-based capital and Leverage ratios are estimated. |
(4) | Regions' regulatory capital ratios for periods prior to the first quarter of 2015 have not been revised to reflect the retrospective application of new accounting guidance related to investments in qualified affordable housing projects. |
(5) | Beginning in the first quarter of 2015, Regions' regulatory capital ratios are calculated pursuant to the phase-in provisions of the Basel III capital rules. All prior period ratios were calculated pursuant to the Basel I capital rules. |
(6) | The effective tax rate for 2016 is expected to range between 30% and 32%. The fourth quarter of 2015 reflects the impact of higher than expected income tax benefits related to affordable housing investments. The second quarter of 2015 includes an income tax benefit related to the conclusion of certain state and federal examinations. The first quarter of 2015 includes an income tax benefit related to state deferred tax asset adjustments. |
(7) | Excludes guaranteed residential first mortgages that are 90+ days past due and still accruing. Refer to the footnotes on page 16 for amounts related to these loans. |
(8) | Reflects the number of active full-time and part-time associates as of the last pay period of the month. The full-time equivalent number of employees for the quarters ended December 31, 2015, September 30, 2015, June 30, 2015 and March 31, 2015 were 23,393, 23,423, 23,155 and 23,062, respectively. |
(9) | Excluding the negative impact of the $15 million lease adjustment discussed above, net interest margin would have been 3.13% for the fourth quarter of 2015. |
Quarter Ended | |||||||||||||||||||
($ amounts in millions, except per share data) | 12/31/2015 | 9/30/2015 | 6/30/2015 | 3/31/2015 | 12/31/2014 | ||||||||||||||
Interest income, including other financing income on: | |||||||||||||||||||
Loans, including fees (1) | $ | 741 | $ | 748 | $ | 728 | $ | 725 | $ | 736 | |||||||||
Securities—taxable (2) | 140 | 137 | 141 | 145 | 143 | ||||||||||||||
Loans held for sale | 4 | 5 | 4 | 3 | 5 | ||||||||||||||
Trading account securities | 1 | — | 1 | 3 | 1 | ||||||||||||||
Other earning assets (2) | 14 | 11 | 9 | 10 | 9 | ||||||||||||||
Operating lease assets (1) | 33 | — | — | — | — | ||||||||||||||
Total interest income, including other financing income | 933 | 901 | 883 | 886 | 894 | ||||||||||||||
Interest expense on: | |||||||||||||||||||
Deposits | 27 | 27 | 27 | 28 | 27 | ||||||||||||||
Short-term borrowings | — | — | 1 | — | 1 | ||||||||||||||
Long-term borrowings | 42 | 38 | 35 | 43 | 46 | ||||||||||||||
Total interest expense | 69 | 65 | 63 | 71 | 74 | ||||||||||||||
Depreciation expense on operating lease assets (1) | 28 | — | — | — | — | ||||||||||||||
Total interest expense and depreciation expense on operating lease assets | 97 | 65 | 63 | 71 | 74 | ||||||||||||||
Net interest income and other financing income | 836 | 836 | 820 | 815 | 820 | ||||||||||||||
Provision for loan losses | 69 | 60 | 63 | 49 | 8 | ||||||||||||||
Net interest income and other financing income after provision for loan losses | 767 | 776 | 757 | 766 | 812 | ||||||||||||||
Non-interest income: | |||||||||||||||||||
Service charges on deposit accounts | 166 | 167 | 168 | 161 | 167 | ||||||||||||||
Card and ATM fees | 96 | 93 | 90 | 85 | 86 | ||||||||||||||
Mortgage income | 37 | 39 | 46 | 40 | 27 | ||||||||||||||
Securities gains, net | 11 | 7 | 6 | 5 | 12 | ||||||||||||||
Other | 204 | 191 | 280 | 179 | 182 | ||||||||||||||
Total non-interest income | 514 | 497 | 590 | 470 | 474 | ||||||||||||||
Non-interest expense: | |||||||||||||||||||
Salaries and employee benefits | 478 | 470 | 477 | 458 | 456 | ||||||||||||||
Net occupancy expense | 91 | 90 | 89 | 91 | 93 | ||||||||||||||
Furniture and equipment expense | 79 | 77 | 76 | 71 | 74 | ||||||||||||||
Other | 225 | 258 | 292 | 285 | 346 | ||||||||||||||
Total non-interest expense | 873 | 895 | 934 | 905 | 969 | ||||||||||||||
Income from continuing operations before income taxes | 408 | 378 | 413 | 331 | 317 | ||||||||||||||
Income tax expense | 120 | 116 | 124 | 95 | 98 | ||||||||||||||
Income from continuing operations | 288 | 262 | 289 | 236 | 219 | ||||||||||||||
Discontinued operations: | |||||||||||||||||||
Income (loss) from discontinued operations before income taxes | (6 | ) | (6 | ) | (6 | ) | (4 | ) | (5 | ) | |||||||||
Income tax expense (benefit) | (3 | ) | (2 | ) | (2 | ) | (2 | ) | (2 | ) | |||||||||
Income (loss) from discontinued operations, net of tax | (3 | ) | (4 | ) | (4 | ) | (2 | ) | (3 | ) | |||||||||
Net income | $ | 285 | $ | 258 | $ | 285 | $ | 234 | $ | 216 | |||||||||
Net income from continuing operations available to common shareholders | $ | 272 | $ | 246 | $ | 273 | $ | 220 | $ | 203 | |||||||||
Net income available to common shareholders | $ | 269 | $ | 242 | $ | 269 | $ | 218 | $ | 200 | |||||||||
Weighted-average shares outstanding—during quarter: | |||||||||||||||||||
Basic | 1,301 | 1,319 | 1,335 | 1,346 | 1,365 | ||||||||||||||
Diluted | 1,308 | 1,326 | 1,346 | 1,358 | 1,377 | ||||||||||||||
Actual shares outstanding—end of quarter | 1,297 | 1,304 | 1,331 | 1,343 | 1,354 | ||||||||||||||
Earnings per common share from continuing operations: | |||||||||||||||||||
Basic | $ | 0.21 | $ | 0.19 | $ | 0.20 | $ | 0.16 | $ | 0.15 | |||||||||
Diluted | $ | 0.21 | $ | 0.19 | $ | 0.20 | $ | 0.16 | $ | 0.15 | |||||||||
Earnings per common share: | |||||||||||||||||||
Basic | $ | 0.21 | $ | 0.18 | $ | 0.20 | $ | 0.16 | $ | 0.15 | |||||||||
Diluted | $ | 0.21 | $ | 0.18 | $ | 0.20 | $ | 0.16 | $ | 0.15 | |||||||||
Cash dividends declared per common share | $ | 0.06 | $ | 0.06 | $ | 0.06 | $ | 0.05 | $ | 0.05 | |||||||||
Taxable-equivalent net interest income and other financing income from continuing operations | $ | 856 | $ | 855 | $ | 839 | $ | 832 | $ | 837 |
Year Ended December 31 | |||||||
($ amounts in millions, except per share data) | 2015 | 2014 | |||||
Interest income, including other financing income on: | |||||||
Loans, including fees (1) | $ | 2,942 | $ | 2,941 | |||
Securities—taxable (2) | 564 | 584 | |||||
Loans held for sale | 16 | 22 | |||||
Trading account securities | 5 | 3 | |||||
Other earning assets (2) | 43 | 39 | |||||
Operating lease assets (1) | 33 | — | |||||
Total interest income, including other financing income | 3,603 | 3,589 | |||||
Interest expense on: | |||||||
Deposits | 109 | 105 | |||||
Short-term borrowings | 1 | 2 | |||||
Long-term borrowings | 158 | 202 | |||||
Total interest expense | 268 | 309 | |||||
Depreciation expense on operating lease assets (1) | 28 | — | |||||
Total interest expense and depreciation expense on operating lease assets | 296 | 309 | |||||
Net interest income and other financing income | 3,307 | 3,280 | |||||
Provision for loan losses | 241 | 69 | |||||
Net interest income and other financing income after provision for loan losses | 3,066 | 3,211 | |||||
Non-interest income: | |||||||
Service charges on deposit accounts | 662 | 695 | |||||
Card and ATM fees | 364 | 334 | |||||
Mortgage income | 162 | 149 | |||||
Securities gains, net | 29 | 27 | |||||
Other | 854 | 698 | |||||
Total non-interest income | 2,071 | 1,903 | |||||
Non-interest expense: | |||||||
Salaries and employee benefits | 1,883 | 1,810 | |||||
Net occupancy expense | 361 | 368 | |||||
Furniture and equipment expense | 303 | 287 | |||||
Other | 1,060 | 967 | |||||
Total non-interest expense | 3,607 | 3,432 | |||||
Income from continuing operations before income taxes | 1,530 | 1,682 | |||||
Income tax expense | 455 | 548 | |||||
Income from continuing operations | 1,075 | 1,134 | |||||
Discontinued operations: | |||||||
Income (loss) from discontinued operations before income taxes | (22 | ) | 21 | ||||
Income tax expense (benefit) | (9 | ) | 8 | ||||
Income (loss) from discontinued operations, net of tax | (13 | ) | 13 | ||||
Net income | $ | 1,062 | $ | 1,147 | |||
Net income from continuing operations available to common shareholders | $ | 1,011 | $ | 1,082 | |||
Net income available to common shareholders | $ | 998 | $ | 1,095 | |||
Weighted-average shares outstanding—during year: | |||||||
Basic | 1,325 | 1,375 | |||||
Diluted | 1,334 | 1,387 | |||||
Actual shares outstanding—end of period | 1,297 | 1,354 | |||||
Earnings per common share from continuing operations: | |||||||
Basic | $ | 0.76 | $ | 0.79 | |||
Diluted | $ | 0.76 | $ | 0.78 | |||
Earnings per common share: | |||||||
Basic | $ | 0.75 | $ | 0.80 | |||
Diluted | $ | 0.75 | $ | 0.79 | |||
Cash dividends declared per common share | $ | 0.23 | $ | 0.18 | |||
Taxable-equivalent net interest income and other financing income from continuing operations | $ | 3,382 | $ | 3,343 |
Quarter Ended | |||||||||||||||||||||
12/31/2015 | 9/30/2015 | ||||||||||||||||||||
($ amounts in millions; yields on taxable-equivalent basis) | Average Balance | Income/ Expense | Yield/ Rate | Average Balance | Income/ Expense | Yield/ Rate | |||||||||||||||
Assets | |||||||||||||||||||||
Earning assets: | |||||||||||||||||||||
Federal funds sold and securities purchased under agreements to resell | $ | 10 | $ | — | — | % | $ | 3 | $ | — | — | % | |||||||||
Trading account securities | 138 | 1 | 3.71 | 111 | — | — | |||||||||||||||
Securities: | |||||||||||||||||||||
Taxable (1) | 24,325 | 140 | 2.28 | 23,912 | 137 | 2.28 | |||||||||||||||
Tax-exempt | 1 | — | — | 1 | — | — | |||||||||||||||
Loans held for sale | 404 | 4 | 4.18 | 492 | 5 | 3.58 | |||||||||||||||
Loans, net of unearned income: | |||||||||||||||||||||
Commercial and industrial (2) | 35,511 | 290 | 3.24 | 35,647 | 302 | 3.37 | |||||||||||||||
Commercial real estate mortgage—owner-occupied | 7,675 | 97 | 5.04 | 7,768 | 99 | 5.04 | |||||||||||||||
Commercial real estate construction—owner-occupied | 415 | 5 | 4.48 | 443 | 5 | 4.31 | |||||||||||||||
Commercial investor real estate mortgage | 4,332 | 35 | 3.20 | 4,441 | 35 | 3.14 | |||||||||||||||
Commercial investor real estate construction | 2,576 | 19 | 2.97 | 2,455 | 18 | 2.96 | |||||||||||||||
Residential first mortgage | 12,753 | 127 | 3.93 | 12,649 | 123 | 3.86 | |||||||||||||||
Home equity | 10,948 | 96 | 3.48 | 10,902 | 96 | 3.51 | |||||||||||||||
Indirect—vehicles | 3,969 | 32 | 3.22 | 3,863 | 31 | 3.23 | |||||||||||||||
Indirect—other consumer | 523 | 8 | 5.71 | 439 | 6 | 5.44 | |||||||||||||||
Consumer credit card | 1,031 | 30 | 11.52 | 1,004 | 30 | 11.57 | |||||||||||||||
Other consumer | 1,027 | 22 | 8.50 | 1,004 | 22 | 8.61 | |||||||||||||||
Total loans, net of unearned income (2) | 80,760 | 761 | 3.74 | 80,615 | 767 | 3.78 | |||||||||||||||
Investment in operating leases, net (2) | 852 | 5 | 2.60 | — | — | — | |||||||||||||||
Other earning assets (1) | 3,709 | 14 | 1.39 | 3,441 | 11 | 1.21 | |||||||||||||||
Total earning assets | 110,199 | 925 | 3.33 | 108,575 | 920 | 3.36 | |||||||||||||||
Allowance for loan losses | (1,120 | ) | (1,111 | ) | |||||||||||||||||
Cash and due from banks | 1,642 | 1,687 | |||||||||||||||||||
Other non-earning assets | 13,924 | 13,769 | |||||||||||||||||||
$ | 124,645 | $ | 122,920 | ||||||||||||||||||
Liabilities and Stockholders’ Equity | |||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||
Savings | $ | 7,245 | 2 | 0.12 | $ | 7,182 | 2 | 0.13 | |||||||||||||
Interest-bearing checking | 21,052 | 5 | 0.08 | 20,992 | 4 | 0.08 | |||||||||||||||
Money market | 26,627 | 7 | 0.10 | 26,793 | 7 | 0.10 | |||||||||||||||
Time deposits | 7,818 | 13 | 0.67 | 8,110 | 14 | 0.67 | |||||||||||||||
Total interest-bearing deposits (3) | 62,742 | 27 | 0.17 | 63,077 | 27 | 0.17 | |||||||||||||||
Federal funds purchased and securities sold under agreements to repurchase | 10 | — | — | 46 | — | — | |||||||||||||||
Other short-term borrowings | 3 | — | — | 250 | — | — | |||||||||||||||
Long-term borrowings | 7,740 | 42 | 2.19 | 6,112 | 38 | 2.45 | |||||||||||||||
Total interest-bearing liabilities | 70,495 | 69 | 0.39 | 69,485 | 65 | 0.37 | |||||||||||||||
Non-interest-bearing deposits (3) | 34,746 | — | — | 34,089 | — | — | |||||||||||||||
Total funding sources | 105,241 | 69 | 0.26 | 103,574 | 65 | 0.25 | |||||||||||||||
Net interest spread | 2.94 | 2.99 | |||||||||||||||||||
Other liabilities | 2,503 | 2,472 | |||||||||||||||||||
Stockholders’ equity | 16,901 | 16,874 | |||||||||||||||||||
$ | 124,645 | $ | 122,920 | ||||||||||||||||||
Net interest income and other financing income/margin FTE basis (2) | $ | 856 | 3.08 | % | $ | 855 | 3.13 | % |
(3) | Total deposit costs from continuing operations may be calculated by dividing total interest expense on deposits by the sum of interest-bearing deposits and non-interest bearing deposits. The rates for total deposit costs from continuing operations equal 0.11% for both quarters ended December 31, 2015 and September 30, 2015, respectively. |
Quarter Ended | ||||||||||||||||||||||||||||||||
6/30/2015 | 3/31/2015 | 12/31/2014 | ||||||||||||||||||||||||||||||
($ amounts in millions; yields on taxable-equivalent basis) | Average Balance | Income/ Expense | Yield/ Rate | Average Balance | Income/ Expense | Yield/ Rate | Average Balance | Income/ Expense | Yield/ Rate | |||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Earning assets: | ||||||||||||||||||||||||||||||||
Federal funds sold and securities purchased under agreements to resell | $ | 2 | $ | — | — | % | $ | 21 | $ | — | — | % | $ | 20 | $ | — | — | % | ||||||||||||||
Trading account securities | 112 | 1 | 1.06 | 104 | 3 | 12.91 | 103 | 1 | 3.70 | |||||||||||||||||||||||
Securities: | ||||||||||||||||||||||||||||||||
Taxable (1) | 24,114 | 142 | 2.35 | 24,170 | 145 | 2.43 | 24,082 | 143 | 2.37 | |||||||||||||||||||||||
Tax-exempt | 2 | — | — | 2 | — | — | 2 | — | — | |||||||||||||||||||||||
Loans held for sale | 463 | 4 | 3.44 | 406 | 3 | 3.46 | 480 | 5 | 3.74 | |||||||||||||||||||||||
Loans, net of unearned income: | ||||||||||||||||||||||||||||||||
Commercial and industrial | 34,480 | 291 | 3.38 | 33,418 | 287 | 3.48 | 32,484 | 289 | 3.54 | |||||||||||||||||||||||
Commercial real estate mortgage—owner-occupied | 7,921 | 97 | 4.89 | 8,143 | 98 | 4.90 | 8,466 | 104 | 4.89 | |||||||||||||||||||||||
Commercial real estate construction—owner-occupied | 430 | 5 | 4.25 | 422 | 4 | 4.22 | 367 | 4 | 4.23 | |||||||||||||||||||||||
Commercial investor real estate mortgage | 4,549 | 36 | 3.15 | 4,629 | 36 | 3.15 | 4,837 | 37 | 3.05 | |||||||||||||||||||||||
Commercial investor real estate construction | 2,416 | 18 | 3.00 | 2,236 | 17 | 3.04 | 2,032 | 17 | 3.17 | |||||||||||||||||||||||
Residential first mortgage | 12,471 | 121 | 3.91 | 12,330 | 121 | 3.97 | 12,273 | 121 | 3.91 | |||||||||||||||||||||||
Home equity | 10,867 | 96 | 3.55 | 10,885 | 97 | 3.61 | 10,939 | 100 | 3.60 | |||||||||||||||||||||||
Indirect—vehicles | 3,768 | 31 | 3.29 | 3,708 | 31 | 3.37 | 3,627 | 31 | 3.41 | |||||||||||||||||||||||
Indirect—other consumer | 328 | 4 | 4.83 | 237 | 2 | 3.96 | 203 | 2 | 3.54 | |||||||||||||||||||||||
Consumer credit card | 975 | 27 | 11.23 | 977 | 28 | 11.73 | 975 | 28 | 11.23 | |||||||||||||||||||||||
Other consumer | 970 | 21 | 8.63 | 957 | 21 | 8.81 | 979 | 20 | 8.20 | |||||||||||||||||||||||
Total loans, net of unearned income | 79,175 | 747 | 3.78 | 77,942 | 742 | 3.86 | 77,182 | 753 | 3.87 | |||||||||||||||||||||||
Investment in operating leases, net | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||
Other earning assets (1) | 2,659 | 8 | 1.44 | 3,486 | 10 | 1.11 | 2,916 | 9 | 1.27 | |||||||||||||||||||||||
Total earning assets | 106,527 | 902 | 3.40 | 106,131 | 903 | 3.45 | 104,785 | 911 | 3.45 | |||||||||||||||||||||||
Allowance for loan losses | (1,097 | ) | (1,098 | ) | (1,162 | ) | ||||||||||||||||||||||||||
Cash and due from banks | 1,706 | 1,773 | 1,805 | |||||||||||||||||||||||||||||
Other non-earning assets | 13,739 | 13,760 | 13,694 | |||||||||||||||||||||||||||||
$ | 120,875 | $ | 120,566 | $ | 119,122 | |||||||||||||||||||||||||||
Liabilities and Stockholders’ Equity | ||||||||||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||||||||||
Savings | $ | 7,165 | 3 | 0.12 | $ | 6,878 | 2 | 0.14 | $ | 6,635 | 3 | 0.12 | ||||||||||||||||||||
Interest-bearing checking | 21,494 | 4 | 0.08 | 21,769 | 5 | 0.09 | 21,003 | 5 | 0.10 | |||||||||||||||||||||||
Money market | 26,483 | 7 | 0.11 | 26,381 | 7 | 0.11 | 25,752 | 7 | 0.11 | |||||||||||||||||||||||
Time deposits | 8,250 | 13 | 0.67 | 8,500 | 14 | 0.65 | 8,683 | 12 | 0.58 | |||||||||||||||||||||||
Total interest-bearing deposits (2) | 63,392 | 27 | 0.17 | 63,528 | 28 | 0.18 | 62,073 | 27 | 0.17 | |||||||||||||||||||||||
Federal funds purchased and securities sold under agreements to repurchase | 637 | — | — | 1,685 | — | — | 1,872 | 1 | 0.09 | |||||||||||||||||||||||
Other short-term borrowings | 942 | 1 | 0.21 | 161 | — | — | 163 | — | — | |||||||||||||||||||||||
Long-term borrowings | 2,903 | 35 | 4.83 | 3,371 | 43 | 5.20 | 3,618 | 46 | 5.07 | |||||||||||||||||||||||
Total interest-bearing liabilities | 67,874 | 63 | 0.37 | 68,745 | 71 | 0.42 | 67,726 | 74 | 0.43 | |||||||||||||||||||||||
Non-interest-bearing deposits (2) | 33,708 | — | — | 32,255 | — | — | 31,951 | — | — | |||||||||||||||||||||||
Total funding sources | 101,582 | 63 | 0.25 | 101,000 | 71 | 0.29 | 99,677 | 74 | 0.29 | |||||||||||||||||||||||
Net interest spread | 3.03 | 3.03 | 3.02 | |||||||||||||||||||||||||||||
Other liabilities | 2,343 | 2,603 | 2,385 | |||||||||||||||||||||||||||||
Stockholders’ equity | 16,950 | 16,963 | 17,060 | |||||||||||||||||||||||||||||
$ | 120,875 | $ | 120,566 | $ | 119,122 | |||||||||||||||||||||||||||
Net interest income and other financing income/margin FTE basis | $ | 839 | 3.16 | % | $ | 832 | 3.18 | % | $ | 837 | 3.17 | % |
(1) | Investments in Federal Reserve Bank and Federal Home Loan Bank stock were reclassified from securities available for sale to other earning assets during the fourth quarter of 2015. All periods presented have been revised to reflect this presentation. |
(2) | Total deposit costs from continuing operations may be calculated by dividing total interest expense on deposits by the sum of interest-bearing deposits and non-interest bearing deposits. The rates for total deposit costs from continuing operations equal 0.11%, 0.12% and 0.11% for each of the quarters ended June 30, 2015, March 31, 2015, and December 31, 2014, respectively. |
Year Ended December 31 | |||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||
($ amounts in millions; yields on taxable-equivalent basis) | Average Balance | Income/ Expense | Yield/ Rate | Average Balance | Income/ Expense | Yield/ Rate | |||||||||||||||
Assets | |||||||||||||||||||||
Earning assets: | |||||||||||||||||||||
Federal funds sold and securities purchased under agreements to resell | $ | 9 | $ | — | — | % | $ | 12 | $ | — | — | % | |||||||||
Trading account securities | 117 | 5 | 4.49 | 107 | 3 | 2.92 | |||||||||||||||
Securities: | |||||||||||||||||||||
Taxable (1) | 24,130 | 564 | 2.34 | 23,637 | 584 | 2.47 | |||||||||||||||
Tax-exempt | 1 | — | — | 3 | — | — | |||||||||||||||
Loans held for sale | 442 | 16 | 3.65 | 564 | 22 | 3.89 | |||||||||||||||
Loans, net of unearned income: | |||||||||||||||||||||
Commercial and industrial (2) | 34,772 | 1,170 | 3.37 | 31,205 | 1,136 | 3.64 | |||||||||||||||
Commercial real estate mortgage—owner-occupied | 7,875 | 391 | 4.97 | 8,975 | 436 | 4.86 | |||||||||||||||
Commercial real estate construction—owner-occupied | 428 | 19 | 4.32 | 354 | 15 | 4.11 | |||||||||||||||
Commercial investor real estate mortgage | 4,487 | 142 | 3.16 | 5,121 | 163 | 3.19 | |||||||||||||||
Commercial investor real estate construction | 2,421 | 72 | 2.99 | 1,815 | 59 | 3.22 | |||||||||||||||
Residential first mortgage | 12,552 | 492 | 3.92 | 12,188 | 486 | 3.99 | |||||||||||||||
Home equity | 10,901 | 385 | 3.54 | 11,064 | 400 | 3.61 | |||||||||||||||
Indirect—vehicles | 3,828 | 125 | 3.28 | 3,426 | 119 | 3.47 | |||||||||||||||
Indirect—other consumer | 383 | 20 | 5.18 | 201 | 7 | 3.46 | |||||||||||||||
Consumer credit card | 997 | 115 | 11.51 | 945 | 106 | 11.23 | |||||||||||||||
Other consumer | 990 | 86 | 8.63 | 959 | 77 | 8.07 | |||||||||||||||
Total loans, net of unearned income (2) | 79,634 | 3,017 | 3.79 | 76,253 | 3,004 | 3.94 | |||||||||||||||
Investment in operating leases, net (2) | 214 | 5 | 2.60 | — | — | — | |||||||||||||||
Other earning assets (1)(3) | 3,324 | 43 | 1.28 | 3,521 | 39 | 1.11 | |||||||||||||||
Total earning assets | 107,871 | 3,650 | 3.38 | 104,097 | 3,652 | 3.51 | |||||||||||||||
Allowance for loan losses | (1,106 | ) | (1,235 | ) | |||||||||||||||||
Cash and due from banks | 1,702 | 1,793 | |||||||||||||||||||
Other non-earning assets | 13,798 | 13,697 | |||||||||||||||||||
$ | 122,265 | $ | 118,352 | ||||||||||||||||||
Liabilities and Stockholders’ Equity | |||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||
Savings | $ | 7,119 | 9 | 0.13 | $ | 6,596 | 8 | 0.12 | |||||||||||||
Interest-bearing checking | 21,324 | 18 | 0.08 | 20,804 | 19 | 0.09 | |||||||||||||||
Money market | 26,573 | 28 | 0.10 | 26,006 | 29 | 0.11 | |||||||||||||||
Time deposits | 8,167 | 54 | 0.66 | 9,003 | 49 | 0.55 | |||||||||||||||
Total interest-bearing deposits (4) | 63,183 | 109 | 0.17 | 62,409 | 105 | 0.17 | |||||||||||||||
Federal funds purchased and securities sold under agreements to repurchase | 588 | — | — | 1,944 | 2 | 0.08 | |||||||||||||||
Other short-term borrowings | 338 | 1 | 0.20 | 55 | — | — | |||||||||||||||
Long-term borrowings | 5,046 | 158 | 3.14 | 4,057 | 202 | 4.98 | |||||||||||||||
Total interest-bearing liabilities | 69,155 | 268 | 0.39 | 68,465 | 309 | 0.45 | |||||||||||||||
Non-interest-bearing deposits (4) | 33,707 | — | — | 31,072 | — | — | |||||||||||||||
Total funding sources | 102,862 | 268 | 0.26 | 99,537 | 309 | 0.31 | |||||||||||||||
Net interest spread | 2.99 | 3.06 | |||||||||||||||||||
Other liabilities | 2,481 | 2,206 | |||||||||||||||||||
Stockholders’ equity (3) | 16,922 | 16,609 | |||||||||||||||||||
$ | 122,265 | $ | 118,352 | ||||||||||||||||||
Net interest income and other financing income/margin FTE basis | $ | 3,382 | 3.13 | % | $ | 3,343 | 3.21 | % |
(3) | In the first quarter of 2015, the Company adopted new guidance related to the accounting for investments in qualified affordable housing projects. The guidance required retrospective application. All prior period amounts impacted by this guidance have been revised. |
Quarter Ended | |||||||||||||||||||||||||||||||||
($ amounts in millions) | 12/31/2015 | 9/30/2015 | 6/30/2015 | 3/31/2015 | 12/31/2014 | 4Q15 vs. 3Q15 | 4Q15 vs. 4Q14 | ||||||||||||||||||||||||||
Net income from continuing operations available to common shareholders (GAAP) | $ | 272 | $ | 246 | $ | 273 | $ | 220 | $ | 203 | $ | 26 | 10.6 | % | $ | 69 | 34.0 | % | |||||||||||||||
Preferred dividends (GAAP) | 16 | 16 | 16 | 16 | 16 | — | — | % | — | — | % | ||||||||||||||||||||||
Income tax expense (GAAP) | 120 | 116 | 124 | 95 | 98 | 4 | 3.4 | % | 22 | 22.4 | % | ||||||||||||||||||||||
Income from continuing operations before income taxes (GAAP) | 408 | 378 | 413 | 331 | 317 | 30 | 7.9 | % | 91 | 28.7 | % | ||||||||||||||||||||||
Provision for loan losses (GAAP) | 69 | 60 | 63 | 49 | 8 | 9 | 15.0 | % | 61 | NM | |||||||||||||||||||||||
Pre-tax pre-provision income from continuing operations (non-GAAP) | 477 | 438 | 476 | 380 | 325 | 39 | 8.9 | % | 152 | 46.8 | % | ||||||||||||||||||||||
Other adjustments: | |||||||||||||||||||||||||||||||||
Securities gains, net | (11 | ) | (7 | ) | (6 | ) | (5 | ) | (12 | ) | (4 | ) | 57.1 | % | 1 | (8.3 | )% | ||||||||||||||||
Insurance proceeds (1) | (1 | ) | — | (90 | ) | — | — | (1 | ) | NM | (1 | ) | NM | ||||||||||||||||||||
Leveraged lease termination gains, net | — | (6 | ) | — | (2 | ) | — | 6 | (100.0 | )% | — | NM | |||||||||||||||||||||
Salaries and employee benefits—severance charges | 6 | — | — | — | — | 6 | NM | 6 | NM | ||||||||||||||||||||||||
Professional, legal and regulatory expenses (2) | — | — | 48 | — | 100 | — | NM | (100 | ) | (100.0 | )% | ||||||||||||||||||||||
Branch consolidation, property and equipment charges (3) | 6 | 1 | 27 | 22 | 10 | 5 | NM | (4 | ) | (40.0 | )% | ||||||||||||||||||||||
Loss on early extinguishment of debt | — | — | — | 43 | — | — | NM | — | NM | ||||||||||||||||||||||||
Total other adjustments | — | (12 | ) | (21 | ) | 58 | 98 | 12 | (100.0 | )% | (98 | ) | (100.0 | )% | |||||||||||||||||||
Adjusted pre-tax pre-provision income from continuing operations (non-GAAP) | $ | 477 | $ | 426 | $ | 455 | $ | 438 | $ | 423 | $ | 51 | 12.0 | % | $ | 54 | 12.8 | % |
(1) | Insurance proceeds recognized in 2015 are related to the settlement of the previously disclosed 2010 class-action lawsuit. |
(2) | Regions recorded $50 million and $100 million of contingent legal and regulatory accruals during the second quarter of 2015 and the fourth quarter of 2014, respectively, related to previously disclosed matters. The fourth quarter of 2014 accruals were settled in the second quarter of 2015 for $2 million less than originally estimated and a corresponding recovery was recognized. |
(3) | Charges in the second quarter of 2015 resulted from the transfer of land, previously held for future branch expansion, to held for sale based on changes in management's intent. |
Quarter Ended | |||||||||||||||||||||||||||||||||
($ amounts in millions) | 12/31/2015 | 9/30/2015 | 6/30/2015 | 3/31/2015 | 12/31/2014 | 4Q15 vs. 3Q15 | 4Q15 vs. 4Q14 | ||||||||||||||||||||||||||
Service charges on deposit accounts | $ | 166 | $ | 167 | $ | 168 | $ | 161 | $ | 167 | $ | (1 | ) | (0.6 | )% | $ | (1 | ) | (0.6 | )% | |||||||||||||
Card and ATM fees | 96 | 93 | 90 | 85 | 86 | 3 | 3.2 | % | 10 | 11.6 | % | ||||||||||||||||||||||
Investment management and trust fee income | 51 | 49 | 51 | 51 | 50 | 2 | 4.1 | % | 1 | 2.0 | % | ||||||||||||||||||||||
Mortgage income | 37 | 39 | 46 | 40 | 27 | (2 | ) | (5.1 | )% | 10 | 37.0 | % | |||||||||||||||||||||
Insurance commissions and fees | 34 | 38 | 33 | 35 | 31 | (4 | ) | (10.5 | )% | 3 | 9.7 | % | |||||||||||||||||||||
Capital markets fee income and other (1) | 28 | 29 | 27 | 20 | 20 | (1 | ) | (3.4 | )% | 8 | 40.0 | % | |||||||||||||||||||||
Insurance proceeds | 1 | — | 90 | — | — | 1 | NM | 1 | NM | ||||||||||||||||||||||||
Commercial credit fee income | 19 | 20 | 21 | 16 | 15 | (1 | ) | (5.0 | )% | 4 | 26.7 | % | |||||||||||||||||||||
Bank-owned life insurance | 19 | 17 | 18 | 20 | 23 | 2 | 11.8 | % | (4 | ) | (17.4 | )% | |||||||||||||||||||||
Investment services fee income | 15 | 15 | 13 | 12 | 10 | — | — | % | 5 | 50.0 | % | ||||||||||||||||||||||
Securities gains, net | 11 | 7 | 6 | 5 | 12 | 4 | 57.1 | % | (1 | ) | (8.3 | )% | |||||||||||||||||||||
Net revenue from affordable housing | 14 | 2 | 6 | 2 | 14 | 12 | NM | — | — | % | |||||||||||||||||||||||
Other | 23 | 21 | 21 | 23 | 19 | 2 | 9.5 | % | 4 | 21.1 | % | ||||||||||||||||||||||
Total non-interest income from continuing operations | $ | 514 | $ | 497 | $ | 590 | $ | 470 | $ | 474 | $ | 17 | 3.4 | % | $ | 40 | 8.4 | % |
Quarter Ended | |||||||||||||||||||||||||||||||||
($ amounts in millions) | 12/31/2015 | 9/30/2015 | 6/30/2015 | 3/31/2015 | 12/31/2014 | 4Q15 vs. 3Q15 | 4Q15 vs. 4Q14 | ||||||||||||||||||||||||||
Production and sales | $ | 23 | $ | 30 | $ | 31 | $ | 27 | $ | 20 | $ | (7 | ) | (23.3 | )% | $ | 3 | 15.0 | % | ||||||||||||||
Loan servicing | 20 | 20 | 20 | 21 | 21 | — | — | % | (1 | ) | (4.8 | )% | |||||||||||||||||||||
MSR and related hedge impact: | |||||||||||||||||||||||||||||||||
MSRs fair value increase (decrease) due to change in valuation inputs or assumptions | 12 | (25 | ) | 28 | (17 | ) | (28 | ) | 37 | (148.0 | )% | 40 | (142.9 | )% | |||||||||||||||||||
MSRs hedge gain (loss) | (9 | ) | 25 | (22 | ) | 17 | 22 | (34 | ) | (136.0 | )% | (31 | ) | (140.9 | )% | ||||||||||||||||||
MSRs change due to payment decay | (9 | ) | (11 | ) | (11 | ) | (8 | ) | (8 | ) | 2 | (18.2 | )% | (1 | ) | 12.5 | % | ||||||||||||||||
MSR and related hedge impact | (6 | ) | (11 | ) | (5 | ) | (8 | ) | (14 | ) | 5 | (45.5 | )% | 8 | (57.1 | )% | |||||||||||||||||
Total mortgage income | $ | 37 | $ | 39 | $ | 46 | $ | 40 | $ | 27 | $ | (2 | ) | (5.1 | )% | $ | 10 | 37.0 | % | ||||||||||||||
Mortgage production - purchased | $ | 852 | $ | 1,057 | $ | 1,097 | $ | 743 | $ | 817 | $ | (205 | ) | (19.4 | )% | $ | 35 | 4.3 | % | ||||||||||||||
Mortgage production - refinanced | 338 | 364 | 505 | 527 | 351 | (26 | ) | (7.1 | )% | (13 | ) | (3.7 | )% | ||||||||||||||||||||
Total mortgage production (2) | $ | 1,190 | $ | 1,421 | $ | 1,602 | $ | 1,270 | $ | 1,168 | $ | (231 | ) | (16.3 | )% | $ | 22 | 1.9 | % |
Quarter Ended | |||||||||||||||||||||||||||||||||
($ amounts in millions) | 12/31/2015 | 9/30/2015 | 6/30/2015 | 3/31/2015 | 12/31/2014 | 4Q15 vs. 3Q15 | 4Q15 vs. 4Q14 | ||||||||||||||||||||||||||
Investment management and trust fee income | $ | 51 | $ | 49 | $ | 51 | $ | 51 | $ | 50 | $ | 2 | 4.1 | % | $ | 1 | 2.0 | % | |||||||||||||||
Insurance commissions and fees | 34 | 38 | 33 | 35 | 31 | (4 | ) | (10.5 | )% | 3 | 9.7 | % | |||||||||||||||||||||
Investment services fee income | 15 | 15 | 13 | 12 | 10 | — | — | % | 5 | 50.0 | % | ||||||||||||||||||||||
Total wealth management income (3) | $ | 100 | $ | 102 | $ | 97 | $ | 98 | $ | 91 | $ | (2 | ) | (2.0 | )% | $ | 9 | 9.9 | % |
(1) | Capital markets fee income and other primarily relates to capital raising activities that includes securities underwriting and placement, loan syndication and placement, as well as foreign exchange, derivative and advisory services. Beginning in the fourth quarter of 2015, this category also includes revenue derived from the purchase of BlackArch Partners, a private, middle-market mergers and acquisitions advisory firm headquartered in Charlotte, North Carolina. |
(2) | Total mortgage production represents production during the period, including amounts sold into the secondary market as well as amounts retained in Regions' residential first mortgage loan portfolio. |
(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. |
• | Beginning in the second quarter of 2015, unused commitment fees are reported in commercial credit fee income. Prior period amounts remain in interest |
• | Net revenue from affordable housing includes gains resulting from the sale of certain investments. This activity resulted in increased revenue in both of the fourth quarters of 2015 and 2014. |
Quarter Ended | |||||||||||||||||||||||||||||||||
($ amounts in millions) | 12/31/2015 | 9/30/2015 | 6/30/2015 | 3/31/2015 | 12/31/2014 | 4Q15 vs. 3Q15 | 4Q15 vs. 4Q14 | ||||||||||||||||||||||||||
Salaries and employee benefits | $ | 478 | $ | 470 | $ | 477 | $ | 458 | $ | 456 | $ | 8 | 1.7 | % | $ | 22 | 4.8 | % | |||||||||||||||
Net occupancy expense | 91 | 90 | 89 | 91 | 93 | 1 | 1.1 | % | (2 | ) | (2.2 | )% | |||||||||||||||||||||
Furniture and equipment expense | 79 | 77 | 76 | 71 | 74 | 2 | 2.6 | % | 5 | 6.8 | % | ||||||||||||||||||||||
Outside services | 40 | 38 | 40 | 31 | 37 | 2 | 5.3 | % | 3 | 8.1 | % | ||||||||||||||||||||||
Marketing | 23 | 24 | 25 | 26 | 24 | (1 | ) | (4.2 | )% | (1 | ) | (4.2 | )% | ||||||||||||||||||||
Professional, legal and regulatory expenses | 22 | 25 | 71 | 19 | 134 | (3 | ) | (12.0 | )% | (112 | ) | (83.6 | )% | ||||||||||||||||||||
FDIC insurance assessments (1) | 22 | 46 | 15 | 22 | 20 | (24 | ) | (52.2 | )% | 2 | 10.0 | % | |||||||||||||||||||||
Credit/checkcard expenses | 13 | 15 | 13 | 13 | 11 | (2 | ) | (13.3 | )% | 2 | 18.2 | % | |||||||||||||||||||||
Branch consolidation, property and equipment charges | 6 | 1 | 27 | 22 | 10 | 5 | NM | (4 | ) | (40.0 | )% | ||||||||||||||||||||||
Loss on early extinguishment of debt | — | — | — | 43 | — | — | NM | — | NM | ||||||||||||||||||||||||
Other | 99 | 109 | 101 | 109 | 110 | (10 | ) | (9.2 | )% | (11 | ) | (10.0 | )% | ||||||||||||||||||||
Total non-interest expense from continuing operations | $ | 873 | $ | 895 | $ | 934 | $ | 905 | $ | 969 | $ | (22 | ) | (2.5 | )% | $ | (96 | ) | (9.9 | )% |
(1) | Prior to December 31, 2015, this was referred to as "deposit administrative fee". |
• | Salaries and employee benefits increased in the fourth quarter of 2015 compared to the third quarter of 2015 primarily due to $6 million in severance related expenses. |
• | During the second quarter of 2015 and the fourth quarter of 2014, Regions recorded $50 million and $100 million, respectively, of contingent legal and regulatory accruals related to previously disclosed matters. The fourth quarter of 2014 accruals were settled in the second quarter of 2015 for $2 million less than originally estimated and a corresponding recovery was recognized. |
• | FDIC insurance assessments decreased in the fourth quarter of 2015 compared to the third quarter of 2015 due to an assessment expense of $23 million for adjustments related to prior assessments that was recorded in the third quarter. The second quarter of 2015 included a $6 million refund from over payments. |
• | Branch consolidation, property and equipment charges in the first and fourth quarters of 2015 resulted from branch consolidations. The second quarter of 2015 charges resulted from the transfer of land, previously held for future branch expansion, to held for sale based on changes in management's intent. |
• | Other expenses decreased in the fourth quarter of 2015 primarily as a result of a $12 million reduction in the Company's reserves for unfunded credit losses. |
Quarter Ended | ||||||||||||||||||||||||||||||||||
($ amounts in millions) | 12/31/2015 | 9/30/2015 | 6/30/2015 | 3/31/2015 | 12/31/2014 | 4Q15 vs. 3Q15 | 4Q15 vs. 4Q14 | |||||||||||||||||||||||||||
ADJUSTED EFFICIENCY AND FEE INCOME RATIOS, ADJUSTED NON-INTEREST INCOME/EXPENSE- CONTINUING OPERATIONS | ||||||||||||||||||||||||||||||||||
Non-interest expense (GAAP) | $ | 873 | $ | 895 | $ | 934 | $ | 905 | $ | 969 | $ | (22 | ) | (2.5 | )% | $ | (96 | ) | (9.9 | )% | ||||||||||||||
Adjustments: | ||||||||||||||||||||||||||||||||||
Professional, legal and regulatory expenses (1) | — | — | (48 | ) | — | (100 | ) | — | NM | 100 | (100.0 | )% | ||||||||||||||||||||||
Branch consolidation, property and equipment charges (2) | (6 | ) | (1 | ) | (27 | ) | (22 | ) | (10 | ) | (5 | ) | NM | 4 | (40.0 | )% | ||||||||||||||||||
Loss on early extinguishment of debt | — | — | — | (43 | ) | — | — | NM | — | NM | ||||||||||||||||||||||||
Salary and employee benefits—severance charges | (6 | ) | — | — | — | — | (6 | ) | NM | (6 | ) | NM | ||||||||||||||||||||||
Adjusted non-interest expense (non-GAAP) | A | $ | 861 | $ | 894 | $ | 859 | $ | 840 | $ | 859 | $ | (33 | ) | (3.7 | )% | $ | 2 | 0.2 | % | ||||||||||||||
Net interest income and other financing income (GAAP) | $ | 836 | $ | 836 | $ | 820 | $ | 815 | $ | 820 | $ | — | NM | $ | 16 | 2.0 | % | |||||||||||||||||
Taxable-equivalent adjustment | 20 | 19 | 19 | 17 | 17 | 1 | 5.3 | % | 3 | 17.6 | % | |||||||||||||||||||||||
Net interest income and other financing income, taxable-equivalent basis | B | $ | 856 | $ | 855 | $ | 839 | $ | 832 | $ | 837 | $ | 1 | 0.1 | % | $ | 19 | 2.3 | % | |||||||||||||||
Non-interest income (GAAP) | C | $ | 514 | $ | 497 | $ | 590 | $ | 470 | $ | 474 | $ | 17 | 3.4 | % | $ | 40 | 8.4 | % | |||||||||||||||
Adjustments: | ||||||||||||||||||||||||||||||||||
Securities gains, net | (11 | ) | (7 | ) | (6 | ) | (5 | ) | (12 | ) | (4 | ) | 57.1 | % | 1 | (8.3 | )% | |||||||||||||||||
Insurance proceeds (3) | (1 | ) | — | (90 | ) | — | — | (1 | ) | NM | (1 | ) | NM | |||||||||||||||||||||
Leveraged lease termination gains, net | — | (6 | ) | — | (2 | ) | — | 6 | (100.0 | )% | — | NM | ||||||||||||||||||||||
Adjusted non-interest income (non-GAAP) | D | $ | 502 | $ | 484 | $ | 494 | $ | 463 | $ | 462 | $ | 18 | 3.7 | % | $ | 40 | 8.7 | % | |||||||||||||||
Total revenue, taxable-equivalent basis | B+C | $ | 1,370 | $ | 1,352 | $ | 1,429 | $ | 1,302 | $ | 1,311 | $ | 18 | 1.3 | % | $ | 59 | 4.5 | % | |||||||||||||||
Adjusted total revenue, taxable-equivalent basis (non-GAAP) | B+D=E | $ | 1,358 | $ | 1,339 | $ | 1,333 | $ | 1,295 | $ | 1,299 | $ | 19 | 1.4 | % | $ | 59 | 4.5 | % | |||||||||||||||
Adjusted efficiency ratio (non-GAAP) (4)(5) | A/E | 63.4 | % | 66.8 | % | 64.5 | % | 64.9 | % | 66.1 | % | |||||||||||||||||||||||
Adjusted fee income ratio (non-GAAP) | D/E | 37.0 | % | 36.2 | % | 37.0 | % | 35.7 | % | 35.6 | % | |||||||||||||||||||||||
Quarter Ended | ||||||||||||||||||||||||||||||||||
($ amounts in millions) | 12/31/2015 | 9/30/2015 | 6/30/2015 | 3/31/2015 | 12/31/2014 | |||||||||||||||||||||||||||||
RETURN ON AVERAGE TANGIBLE COMMON STOCKHOLDERS' EQUITY- CONSOLIDATED | ||||||||||||||||||||||||||||||||||
Net income available to common shareholders (GAAP) | F | $ | 269 | $ | 242 | $ | 269 | $ | 218 | $ | 200 | |||||||||||||||||||||||
Average stockholders' equity (GAAP) | $ | 16,889 | $ | 16,866 | $ | 16,946 | $ | 16,963 | $ | 17,074 | ||||||||||||||||||||||||
Less: | ||||||||||||||||||||||||||||||||||
Average intangible assets (GAAP) | 5,132 | 5,089 | 5,083 | 5,089 | 5,097 | |||||||||||||||||||||||||||||
Average deferred tax liability related to intangibles (GAAP) | (167 | ) | (169 | ) | (171 | ) | (172 | ) | (176 | ) | ||||||||||||||||||||||||
Average preferred stock (GAAP) | 822 | 838 | 856 | 878 | 886 | |||||||||||||||||||||||||||||
Average tangible common stockholders' equity (non-GAAP) | G | $ | 11,102 | $ | 11,108 | $ | 11,178 | $ | 11,168 | $ | 11,267 | |||||||||||||||||||||||
Return on average tangible common stockholders' equity (non-GAAP)* | F/G | 9.61 | % | 8.65 | % | 9.66 | % | 7.91 | % | 7.04 | % |
Year Ended December 31 | |||||||||||||||
($ amounts in millions) | 2015 | 2014 | 2015 vs. 2014 | ||||||||||||
ADJUSTED EFFICIENCY AND FEE INCOME RATIOS, ADJUSTED NON-INTEREST INCOME/EXPENSE- CONTINUING OPERATIONS | |||||||||||||||
Non-interest expense (GAAP) | $ | 3,607 | $ | 3,432 | $ | 175 | 5.1 | % | |||||||
Adjustments: | |||||||||||||||
Professional, legal and regulatory expenses (1) | (48 | ) | (93 | ) | 45 | (48.4 | )% | ||||||||
Branch consolidation, property and equipment charges (2) | (56 | ) | (16 | ) | (40 | ) | 250.0 | % | |||||||
Loss on early extinguishment of debt | (43 | ) | — | (43 | ) | NM | |||||||||
Salary and employee benefits—severance charges | (6 | ) | — | (6 | ) | NM | |||||||||
Gain on sale of TDRs held for sale, net | — | 35 | (35 | ) | (100.0 | )% | |||||||||
Adjusted non-interest expense (non-GAAP) | H | $ | 3,454 | $ | 3,358 | $ | 96 | 2.9 | % | ||||||
Net interest income and other financing income (GAAP) | $ | 3,307 | $ | 3,280 | $ | 27 | 0.8 | % | |||||||
Taxable-equivalent adjustment | 75 | 63 | 12 | 19.0 | % | ||||||||||
Net interest income and other financing income, taxable-equivalent basis | I | $ | 3,382 | $ | 3,343 | $ | 39 | 1.2 | % | ||||||
Non-interest income (GAAP) | J | $ | 2,071 | $ | 1,903 | $ | 168 | 8.8 | % | ||||||
Adjustments: | |||||||||||||||
Securities gains, net | (29 | ) | (27 | ) | (2 | ) | 7.4 | % | |||||||
Insurance proceeds (3) | (91 | ) | — | (91 | ) | NM | |||||||||
Leveraged lease termination gains, net | (8 | ) | (10 | ) | 2 | (20.0 | )% | ||||||||
Adjusted non-interest income (non-GAAP) | K | $ | 1,943 | $ | 1,866 | $ | 77 | 4.1 | % | ||||||
Total revenue, taxable-equivalent basis | I+J | $ | 5,453 | $ | 5,246 | $ | 207 | 3.9 | % | ||||||
Adjusted total revenue, taxable-equivalent basis (non-GAAP) | I+K=L | $ | 5,325 | $ | 5,209 | $ | 116 | 2.2 | % | ||||||
Adjusted efficiency ratio (non-GAAP) (6) | H/L | 64.9 | % | 64.4 | % | ||||||||||
Adjusted fee income ratio (non-GAAP) | K/L | 36.5 | % | 35.8 | % |
(1) | Regions recorded $50 million and $100 million of contingent legal and regulatory accruals during the second quarter of 2015 and the fourth quarter of 2014, respectively, related to previously disclosed matters. The fourth quarter of 2014 accruals were settled in the second quarter of 2015 for $2 million less than originally estimated and a corresponding recovery was recognized. |
(2) | Branch consolidation, property and equipment charges in the second quarter of 2015 resulted from the transfer of land, previously held for future branch expansion, to held for sale based on changes in management's intent. |
(3) | Insurance proceeds recognized in 2015 are related to the settlement of the previously disclosed 2010 class-action lawsuit. |
(4) | Excluding $23 million of FDIC insurance assessment adjustments to prior assessments recorded in the third quarter of 2015, the adjusted efficiency ratio would have been 65.0%. |
(5) | During the fourth quarter of 2015, Regions corrected the accounting for certain leases, for which Regions is the lessor. These leases had been previously classified as capital leases but were subsequently determined to be operating leases and totaled approximately $834 million at December 31, 2015. The aggregate impact of this adjustment lowered net interest income and other financing income $15 million. Excluding the negative impact of the $15 million, the adjusted efficiency ratio would have been 62.7%. |
(6) | Excluding the $23 million of FDIC insurance assessment adjustments recorded in the third quarter of 2015, and the $15 million negative adjustment to net interest income and other financing income related to the leases adjustment in the fourth quarter of 2015, the adjusted year-to-date efficiency ratio would have been 64.3%. |
Quarter Ended | |||||||||||||||||||
($ amounts in millions, except per share data) | 12/31/2015 | 9/30/2015 | 6/30/2015 | 3/31/2015 | 12/31/2014 | ||||||||||||||
Non-interest expense: | |||||||||||||||||||
Professional and legal expenses | $ | 5 | $ | 7 | $ | 5 | $ | 4 | $ | 5 | |||||||||
Other | 1 | (1 | ) | 1 | — | — | |||||||||||||
Total non-interest expense | 6 | 6 | 6 | 4 | 5 | ||||||||||||||
Income (loss) from discontinued operations before income tax | (6 | ) | (6 | ) | (6 | ) | (4 | ) | (5 | ) | |||||||||
Income tax expense (benefit) | (3 | ) | (2 | ) | (2 | ) | (2 | ) | (2 | ) | |||||||||
Income (loss) from discontinued operations, net of tax | $ | (3 | ) | $ | (4 | ) | $ | (4 | ) | $ | (2 | ) | $ | (3 | ) | ||||
Weighted-average shares outstanding—during quarter (1): | |||||||||||||||||||
Basic | 1,301 | 1,319 | 1,335 | 1,346 | 1,365 | ||||||||||||||
Diluted | 1,301 | 1,319 | 1,335 | 1,346 | 1,365 | ||||||||||||||
Earnings (loss) per common share from discontinued operations: | |||||||||||||||||||
Basic | $ | (0.00 | ) | $ | (0.00 | ) | $ | (0.00 | ) | $ | (0.00 | ) | $ | (0.00 | ) | ||||
Diluted | $ | (0.00 | ) | $ | (0.00 | ) | $ | (0.00 | ) | $ | (0.00 | ) | $ | (0.00 | ) |
Year Ended December 31 | |||||||
($ amounts in millions, except per share data) | 2015 | 2014 | |||||
Non-interest income: | |||||||
Insurance proceeds | $ | — | $ | 19 | |||
Total non-interest income | — | 19 | |||||
Non-interest expense: | |||||||
Professional and legal expenses | 21 | (3 | ) | ||||
Other | 1 | 1 | |||||
Total non-interest expense | 22 | (2 | ) | ||||
Income (loss) from discontinued operations before income tax | (22 | ) | 21 | ||||
Income tax expense (benefit) | (9 | ) | 8 | ||||
Income (loss) from discontinued operations, net of tax | $ | (13 | ) | $ | 13 | ||
Weighted-average shares outstanding—during year (1): | |||||||
Basic | 1,325 | 1,375 | |||||
Diluted | 1,325 | 1,387 | |||||
Earnings (loss) per common share from discontinued operations: | |||||||
Basic | $ | (0.01 | ) | $ | 0.01 | ||
Diluted | $ | (0.01 | ) | $ | 0.01 |
(1) | In a period where there is a loss from discontinued operations, basic and diluted weighted-average common shares outstanding are the same. |
As of and for Quarter Ended | |||||||||||||||||||
($ amounts in millions) | 12/31/2015 | 9/30/2015 | 6/30/2015 | 3/31/2015 | 12/31/2014 | ||||||||||||||
Components: | |||||||||||||||||||
Allowance for loan losses (ALL) | $ | 1,106 | $ | 1,115 | $ | 1,115 | $ | 1,098 | $ | 1,103 | |||||||||
Reserve for unfunded credit commitments | 52 | 64 | 64 | 66 | 65 | ||||||||||||||
Allowance for credit losses (ACL) | $ | 1,158 | $ | 1,179 | $ | 1,179 | $ | 1,164 | $ | 1,168 | |||||||||
Provision for loan losses | $ | 69 | $ | 60 | $ | 63 | $ | 49 | $ | 8 | |||||||||
Provision (credit) for unfunded credit losses | (12 | ) | — | (2 | ) | 1 | — | ||||||||||||
Net loans charged-off: | |||||||||||||||||||
Commercial and industrial | 43 | 16 | 4 | 16 | 23 | ||||||||||||||
Commercial real estate mortgage—owner-occupied | 1 | 3 | 3 | 1 | 11 | ||||||||||||||
Commercial real estate construction—owner-occupied | — | — | — | — | — | ||||||||||||||
Total commercial | 44 | 19 | 7 | 17 | 34 | ||||||||||||||
Commercial investor real estate mortgage | (2 | ) | (2 | ) | 1 | 2 | (2 | ) | |||||||||||
Commercial investor real estate construction | (7 | ) | — | (2 | ) | (2 | ) | (1 | ) | ||||||||||
Total investor real estate | (9 | ) | (2 | ) | (1 | ) | — | (3 | ) | ||||||||||
Residential first mortgage | 5 | 6 | 4 | 3 | 6 | ||||||||||||||
Home equity—first lien | 2 | 4 | 5 | 3 | 5 | ||||||||||||||
Home equity—second lien | 5 | 7 | 7 | 7 | 11 | ||||||||||||||
Indirect—vehicles | 9 | 6 | 5 | 6 | 7 | ||||||||||||||
Consumer credit card | 8 | 7 | 8 | 8 | 8 | ||||||||||||||
Other consumer | 14 | 13 | 11 | 10 | 15 | ||||||||||||||
Total consumer | 43 | 43 | 40 | 37 | 52 | ||||||||||||||
Total | $ | 78 | $ | 60 | $ | 46 | $ | 54 | $ | 83 | |||||||||
Net loan charge-offs as a % of average loans, annualized: | |||||||||||||||||||
Commercial and industrial | 0.48 | % | 0.18 | % | 0.04 | % | 0.20 | % | 0.28 | % | |||||||||
Commercial real estate mortgage—owner-occupied | 0.08 | % | 0.14 | % | 0.14 | % | 0.05 | % | 0.54 | % | |||||||||
Commercial real estate construction—owner-occupied | (0.13 | )% | (0.09 | )% | (0.03 | )% | (0.03 | )% | (0.02 | )% | |||||||||
Total commercial | 0.40 | % | 0.17 | % | 0.06 | % | 0.17 | % | 0.33 | % | |||||||||
Commercial investor real estate mortgage | (0.22 | )% | (0.17 | )% | 0.09 | % | 0.17 | % | (0.11 | )% | |||||||||
Commercial investor real estate construction | (1.00 | )% | (0.15 | )% | (0.23 | )% | (0.40 | )% | (0.32 | )% | |||||||||
Total investor real estate | (0.51 | )% | (0.16 | )% | (0.02 | )% | (0.01 | )% | (0.17 | )% | |||||||||
Residential first mortgage | 0.16 | % | 0.17 | % | 0.15 | % | 0.10 | % | 0.18 | % | |||||||||
Home equity—first lien | 0.11 | % | 0.24 | % | 0.30 | % | 0.19 | % | 0.29 | % | |||||||||
Home equity—second lien | 0.47 | % | 0.62 | % | 0.67 | % | 0.58 | % | 0.93 | % | |||||||||
Indirect—vehicles | 0.83 | % | 0.68 | % | 0.50 | % | 0.69 | % | 0.77 | % | |||||||||
Consumer credit card | 3.14 | % | 3.01 | % | 3.13 | % | 3.43 | % | 3.29 | % | |||||||||
Other consumer | 5.25 | % | 5.37 | % | 4.27 | % | 4.43 | % | 5.92 | % | |||||||||
Total consumer | 0.55 | % | 0.59 | % | 0.54 | % | 0.53 | % | 0.70 | % | |||||||||
Total | 0.38 | % | 0.30 | % | 0.23 | % | 0.28 | % | 0.42 | % | |||||||||
Non-accrual loans, excluding loans held for sale | $ | 782 | $ | 789 | $ | 751 | $ | 800 | $ | 829 | |||||||||
Non-performing loans held for sale | 38 | 26 | 26 | 32 | 38 | ||||||||||||||
Non-accrual loans, including loans held for sale | 820 | 815 | 777 | 832 | 867 | ||||||||||||||
Foreclosed properties | 100 | 111 | 134 | 138 | 124 | ||||||||||||||
Non-performing assets (NPAs) | $ | 920 | $ | 926 | $ | 911 | $ | 970 | $ | 991 | |||||||||
Loans past due > 90 days (1) | $ | 213 | $ | 210 | $ | 197 | $ | 211 | $ | 222 | |||||||||
Accruing restructured loans not included in categories above (2) | $ | 1,039 | $ | 1,046 | $ | 1,150 | $ | 1,220 | $ | 1,260 | |||||||||
Credit Ratios: | |||||||||||||||||||
ACL/Loans, net | 1.43 | % | 1.45 | % | 1.47 | % | 1.49 | % | 1.51 | % | |||||||||
ALL/Loans, net | 1.36 | % | 1.38 | % | 1.39 | % | 1.40 | % | 1.43 | % | |||||||||
Allowance for loan losses to non-performing loans, excluding loans held for sale | 1.41x | 1.41x | 1.49x | 1.37x | 1.33x | ||||||||||||||
Non-accrual loans, excluding loans held for sale/Loans, net | 0.96 | % | 0.97 | % | 0.94 | % | 1.02 | % | 1.07 | % | |||||||||
NPAs (ex. 90+ past due)/Loans, foreclosed properties and non-performing loans held for sale | 1.13 | % | 1.14 | % | 1.13 | % | 1.24 | % | 1.28 | % | |||||||||
NPAs (inc. 90+ past due)/Loans, foreclosed properties and non-performing loans held for sale (1) | 1.39 | % | 1.40 | % | 1.38 | % | 1.51 | % | 1.57 | % |
(1) | Excludes guaranteed residential first mortgages that are 90+ days past due and still accruing. Refer to the footnotes on page 16 for amounts related to these loans. |
(2) | See page 17 for detail of restructured loans. |
Year Ended December 31 | |||||||
($ amounts in millions) | 2015 | 2014 | |||||
Balance at beginning of year | $ | 1,168 | $ | 1,419 | |||
Net loans charged off | (238 | ) | (307 | ) | |||
Provision for loan losses | 241 | 69 | |||||
Provision (credit) for unfunded credit losses | (13 | ) | (13 | ) | |||
Balance at end of year | $ | 1,158 | $ | 1,168 |
As of | ||||||||||||||||||||||||||||||||||
($ amounts in millions) | 12/31/2015 | 9/30/2015 | 6/30/2015 | 3/31/2015 | 12/31/2014 | |||||||||||||||||||||||||||||
Commercial and industrial | $ | 325 | 0.91 | % | $ | 350 | 0.97 | % | $ | 297 | 0.84 | % | $ | 298 | 0.89 | % | $ | 252 | 0.77 | % | ||||||||||||||
Commercial real estate mortgage—owner-occupied | 268 | 3.55 | % | 233 | 3.01 | % | 203 | 2.60 | % | 216 | 2.68 | % | 238 | 2.88 | % | |||||||||||||||||||
Commercial real estate construction—owner-occupied | 2 | 0.50 | % | 3 | 0.81 | % | 4 | 0.96 | % | 3 | 0.63 | % | 3 | 0.64 | % | |||||||||||||||||||
Total commercial | 595 | 1.36 | % | 586 | 1.33 | % | 504 | 1.16 | % | 517 | 1.23 | % | 493 | 1.19 | % | |||||||||||||||||||
Commercial investor real estate mortgage | 31 | 0.73 | % | 39 | 0.89 | % | 63 | 1.38 | % | 85 | 1.89 | % | 123 | 2.64 | % | |||||||||||||||||||
Commercial investor real estate construction | — | — | % | 1 | 0.02 | % | 2 | 0.08 | % | — | 0.01 | % | 2 | 0.09 | % | |||||||||||||||||||
Total investor real estate | 31 | 0.45 | % | 40 | 0.57 | % | 65 | 0.93 | % | 85 | 1.23 | % | 125 | 1.84 | % | |||||||||||||||||||
Residential first mortgage | 63 | 0.49 | % | 67 | 0.53 | % | 86 | 0.68 | % | 101 | 0.81 | % | 109 | 0.88 | % | |||||||||||||||||||
Home equity | 93 | 0.84 | % | 96 | 0.88 | % | 96 | 0.88 | % | 97 | 0.90 | % | 102 | 0.94 | % | |||||||||||||||||||
Total consumer | 156 | 0.51 | % | 163 | 0.54 | % | 182 | 0.61 | % | 198 | 0.68 | % | 211 | 0.72 | % | |||||||||||||||||||
Total non-accrual loans | $ | 782 | 0.96 | % | $ | 789 | 0.97 | % | $ | 751 | 0.94 | % | $ | 800 | 1.02 | % | $ | 829 | 1.07 | % |
As of | |||||||||||||||||||||||||||||||||
12/31/2015 | 12/31/2015 | ||||||||||||||||||||||||||||||||
($ amounts in millions) | 12/31/2015 | 9/30/2015 | 6/30/2015 | 3/31/2015 | 12/31/2014 | vs. 9/30/2015 | vs. 12/31/2014 | ||||||||||||||||||||||||||
Special mention (2) | $ | 1,434 | $ | 1,416 | $ | 1,163 | $ | 1,097 | $ | 1,206 | $ | 18 | 1.3 | % | $ | 228 | 18.9 | % | |||||||||||||||
Accruing classified loans | 1,311 | 1,212 | 1,218 | 1,125 | 875 | 99 | 8.2 | % | 436 | 49.8 | % | ||||||||||||||||||||||
Non-accruing classified loans | 626 | 626 | 569 | 602 | 618 | — | — | % | 8 | 1.3 | % | ||||||||||||||||||||||
Total | $ | 3,371 | $ | 3,254 | $ | 2,950 | $ | 2,824 | $ | 2,699 | $ | 117 | 3.6 | % | $ | 672 | 24.9 | % |
(1) | Business services represents the combined total of commercial and investor real estate loans. |
(2) | The fourth and third quarters of 2015 increases in business services special mention ("criticized") loans were driven by some weakening in a small number of larger loans primarily within the energy portfolio. |
As of 12/31/2015 | |||||||||||||||||
($ amounts in millions) | First Lien | % of Total | Second Lien | % of Total | Total | ||||||||||||
2016 | $ | 27 | 0.34 | % | $ | 54 | 0.69 | % | $ | 81 | |||||||
2017 | 4 | 0.06 | % | 10 | 0.13 | % | 14 | ||||||||||
2018 | 14 | 0.17 | % | 20 | 0.25 | % | 34 | ||||||||||
2019 | 94 | 1.20 | % | 83 | 1.06 | % | 177 | ||||||||||
2020 | 189 | 2.40 | % | 148 | 1.88 | % | 337 | ||||||||||
2021-2025 | 1,591 | 20.27 | % | 1,557 | 19.83 | % | 3,148 | ||||||||||
2026-2030 | 2,009 | 25.59 | % | 2,049 | 26.10 | % | 4,058 | ||||||||||
Thereafter | — | 0.01 | % | 1 | 0.02 | % | 1 | ||||||||||
Total | $ | 3,928 | 50.04 | % | $ | 3,922 | 49.96 | % | $ | 7,850 |
(3) | The balance of Regions' home equity portfolio was $10,978 million at December 31, 2015 consisting of $7,850 million of home equity lines of credit and $3,128 million of closed-end home equity loans. The home equity lines of credit presented in the table above are based on maturity date for lines with a balloon payment and draw period expiration date for lines that convert to a repayment period. The closed-end loans were primarily originated as amortizing loans, and were therefore excluded from the table above. |
Accruing 30-89 Days Past Due Loans | As of | |||||||||||||||||||||||||||||||||
($ amounts in millions) | 12/31/2015 | 9/30/2015 | 6/30/2015 | 3/31/2015 | 12/31/2014 | |||||||||||||||||||||||||||||
Commercial and industrial | $ | 17 | 0.05 | % | $ | 16 | 0.05 | % | $ | 23 | 0.06 | % | $ | 27 | 0.08 | % | $ | 23 | 0.07 | % | ||||||||||||||
Commercial real estate mortgage—owner-occupied | 31 | 0.42 | % | 41 | 0.53 | % | 38 | 0.49 | % | 30 | 0.37 | % | 34 | 0.41 | % | |||||||||||||||||||
Commercial real estate construction—owner-occupied | 1 | 0.29 | % | 1 | 0.18 | % | — | 0.10 | % | — | — | % | 1 | 0.13 | % | |||||||||||||||||||
Total commercial | 49 | 0.11 | % | 58 | 0.13 | % | 61 | 0.14 | % | 57 | 0.13 | % | 58 | 0.14 | % | |||||||||||||||||||
Commercial investor real estate mortgage | 27 | 0.63 | % | 24 | 0.54 | % | 18 | 0.39 | % | 9 | 0.19 | % | 20 | 0.42 | % | |||||||||||||||||||
Commercial investor real estate construction | 2 | 0.06 | % | 1 | 0.02 | % | — | 0.01 | % | 4 | 0.17 | % | — | — | % | |||||||||||||||||||
Total investor real estate | 29 | 0.41 | % | 25 | 0.35 | % | 18 | 0.26 | % | 13 | 0.18 | % | 20 | 0.29 | % | |||||||||||||||||||
Residential first mortgage—non-guaranteed (1) | 122 | 0.98 | % | 116 | 0.94 | % | 124 | 1.02 | % | 109 | 0.91 | % | 139 | 1.17 | % | |||||||||||||||||||
Home equity | 84 | 0.76 | % | 98 | 0.89 | % | 84 | 0.77 | % | 101 | 0.93 | % | 111 | 1.02 | % | |||||||||||||||||||
Indirect—vehicles | 63 | 1.59 | % | 52 | 1.33 | % | 46 | 1.21 | % | 41 | 1.10 | % | 53 | 1.45 | % | |||||||||||||||||||
Indirect—other consumer | 3 | 0.57 | % | 2 | 0.33 | % | 1 | 0.14 | % | — | — | % | — | — | % | |||||||||||||||||||
Consumer credit card | 12 | 1.08 | % | 11 | 1.13 | % | 10 | 1.02 | % | 11 | 1.14 | % | 13 | 1.32 | % | |||||||||||||||||||
Other consumer | 15 | 1.44 | % | 14 | 1.41 | % | 14 | 1.42 | % | 12 | 0.99 | % | 17 | 1.45 | % | |||||||||||||||||||
Total consumer (1) | 299 | 0.99 | % | 293 | 0.99 | % | 279 | 0.95 | % | 274 | 0.95 | % | 333 | 1.16 | % | |||||||||||||||||||
Total accruing 30-89 days past due loans (1) | $ | 377 | 0.47 | % | $ | 376 | 0.47 | % | $ | 358 | 0.45 | % | $ | 344 | 0.44 | % | $ | 411 | 0.53 | % | ||||||||||||||
Accruing 90+ Days Past Due Loans | As of | |||||||||||||||||||||||||||||||||
($ amounts in millions) | 12/31/2015 | 9/30/2015 | 6/30/2015 | 3/31/2015 | 12/31/2014 | |||||||||||||||||||||||||||||
Commercial and industrial | $ | 9 | 0.02 | % | $ | 7 | 0.02 | % | $ | 3 | 0.01 | % | $ | 4 | 0.01 | % | $ | 7 | 0.02 | % | ||||||||||||||
Commercial real estate mortgage—owner-occupied | 3 | 0.03 | % | 6 | 0.08 | % | 2 | 0.02 | % | 7 | 0.09 | % | 5 | 0.06 | % | |||||||||||||||||||
Total commercial | 12 | 0.03 | % | 13 | 0.03 | % | 5 | 0.01 | % | 11 | 0.03 | % | 12 | 0.03 | % | |||||||||||||||||||
Commercial investor real estate mortgage | 4 | 0.10 | % | 2 | 0.05 | % | 1 | 0.01 | % | 2 | 0.05 | % | 3 | 0.06 | % | |||||||||||||||||||
Total investor real estate | 4 | 0.06 | % | 2 | 0.03 | % | 1 | 0.01 | % | 2 | 0.03 | % | 3 | 0.04 | % | |||||||||||||||||||
Residential first mortgage—non-guaranteed (2) | 113 | 0.91 | % | 121 | 0.98 | % | 109 | 0.89 | % | 109 | 0.90 | % | 122 | 1.03 | % | |||||||||||||||||||
Home equity | 59 | 0.54 | % | 51 | 0.47 | % | 61 | 0.55 | % | 67 | 0.62 | % | 63 | 0.57 | % | |||||||||||||||||||
Indirect—vehicles | 9 | 0.22 | % | 8 | 0.20 | % | 6 | 0.18 | % | 6 | 0.16 | % | 7 | 0.20 | % | |||||||||||||||||||
Consumer credit card | 12 | 1.12 | % | 11 | 1.07 | % | 11 | 1.10 | % | 12 | 1.25 | % | 12 | 1.21 | % | |||||||||||||||||||
Other consumer | 4 | 0.37 | % | 4 | 0.40 | % | 4 | 0.37 | % | 4 | 0.31 | % | 3 | 0.22 | % | |||||||||||||||||||
Total consumer (2) | 197 | 0.66 | % | 195 | 0.66 | % | 191 | 0.65 | % | 198 | 0.69 | % | 207 | 0.72 | % | |||||||||||||||||||
Total accruing 90+ days past due loans (2) | $ | 213 | 0.26 | % | $ | 210 | 0.26 | % | $ | 197 | 0.25 | % | $ | 211 | 0.27 | % | $ | 222 | 0.29 | % | ||||||||||||||
Total delinquencies (1) (2) | $ | 590 | 0.73 | % | $ | 586 | 0.73 | % | $ | 555 | 0.70 | % | $ | 555 | 0.71 | % | $ | 633 | 0.82 | % |
(1) | Excludes loans that are 100% guaranteed by FHA. Total 30-89 days past due guaranteed loans excluded were $26 million at 12/31/2015, $23 million at 9/30/2015, $23 million at 6/30/2015, $18 million at 3/31/2015 and $24 million at 12/31/2014. |
(2) | Excludes loans that are 100% guaranteed by FHA and all guaranteed loans sold to GNMA where Regions has the right but not the obligation to repurchase. Total 90 days or more past due guaranteed loans excluded were $107 at 12/31/2015, $110 million at 9/30/2015, $103 million at 6/30/2015, $116 million at 3/31/2015 and $125 million at 12/31/2014. |
As of | |||||||||||||||||||
($ amounts in millions) | 12/31/2015 | 9/30/2015 | 6/30/2015 | 3/31/2015 | 12/31/2014 | ||||||||||||||
Current: | |||||||||||||||||||
Commercial | $ | 135 | $ | 147 | $ | 202 | $ | 244 | $ | 244 | |||||||||
Investor real estate | 149 | 145 | 194 | 227 | 281 | ||||||||||||||
Residential first mortgage | 341 | 334 | 328 | 333 | 301 | ||||||||||||||
Home equity | 306 | 309 | 317 | 316 | 320 | ||||||||||||||
Consumer credit card | 2 | 2 | 2 | 2 | 2 | ||||||||||||||
Other consumer | 12 | 13 | 14 | 15 | 16 | ||||||||||||||
Total current | 945 | 950 | 1,057 | 1,137 | 1,164 | ||||||||||||||
Accruing 30-89 DPD: | |||||||||||||||||||
Commercial | 11 | 12 | 16 | 5 | 7 | ||||||||||||||
Investor real estate | 8 | 6 | 5 | 7 | 9 | ||||||||||||||
Residential first mortgage | 57 | 58 | 53 | 49 | 55 | ||||||||||||||
Home equity | 17 | 19 | 18 | 21 | 23 | ||||||||||||||
Other consumer | 1 | 1 | 1 | 1 | 2 | ||||||||||||||
Total accruing 30-89 DPD | 94 | 96 | 93 | 83 | 96 | ||||||||||||||
Total accruing and <90 DPD | 1,039 | 1,046 | 1,150 | 1,220 | 1,260 | ||||||||||||||
Non-accrual or 90+ DPD: | |||||||||||||||||||
Commercial | 135 | 118 | 93 | 104 | 93 | ||||||||||||||
Investor real estate | 22 | 25 | 31 | 42 | 67 | ||||||||||||||
Residential first mortgage | 81 | 88 | 90 | 96 | 112 | ||||||||||||||
Home equity | 18 | 21 | 22 | 24 | 25 | ||||||||||||||
Total non-accrual or 90+DPD | 256 | 252 | 236 | 266 | 297 | ||||||||||||||
Total TDRs - Loans | $ | 1,295 | $ | 1,298 | $ | 1,386 | $ | 1,486 | $ | 1,557 | |||||||||
TDRs - Held For Sale | 8 | 14 | 18 | 19 | 29 | ||||||||||||||
Total TDRs | $ | 1,303 | $ | 1,312 | $ | 1,404 | $ | 1,505 | $ | 1,586 | |||||||||
Total TDRs - Loans by Portfolio | |||||||||||||||||||
As of | |||||||||||||||||||
($ amounts in millions) | 12/31/2015 | 9/30/2015 | 6/30/2015 | 3/31/2015 | 12/31/2014 | ||||||||||||||
Total commercial TDRs | $ | 281 | $ | 277 | $ | 311 | $ | 353 | $ | 344 | |||||||||
Total investor real estate TDRs | 179 | 176 | 230 | 276 | 357 | ||||||||||||||
Total consumer TDRs | 835 | 845 | 845 | 857 | 856 | ||||||||||||||
Total TDRs - Loans | $ | 1,295 | $ | 1,298 | $ | 1,386 | $ | 1,486 | $ | 1,557 |
As of | |||||||||||||||||||
($ amounts in millions) | 12/31/2015 | 9/30/2015 | 6/30/2015 | 3/31/2015 | 12/31/2014 | ||||||||||||||
Assets: | |||||||||||||||||||
Cash and due from banks | $ | 1,382 | $ | 1,726 | $ | 1,661 | $ | 1,737 | $ | 1,601 | |||||||||
Interest-bearing deposits in other banks | 3,932 | 3,217 | 2,094 | 4,224 | 2,303 | ||||||||||||||
Federal funds sold and securities purchased under agreements to resell | — | 65 | — | 65 | 100 | ||||||||||||||
Trading account securities | 143 | 106 | 110 | 107 | 106 | ||||||||||||||
Securities held to maturity | 1,946 | 2,001 | 2,067 | 2,129 | 2,175 | ||||||||||||||
Securities available for sale (1) | 22,710 | 22,034 | 22,045 | 22,375 | 22,053 | ||||||||||||||
Loans held for sale | 448 | 453 | 511 | 491 | 541 | ||||||||||||||
Loans, net of unearned income (2) | 81,162 | 81,063 | 80,149 | 78,243 | 77,307 | ||||||||||||||
Allowance for loan losses | (1,106 | ) | (1,115 | ) | (1,115 | ) | (1,098 | ) | (1,103 | ) | |||||||||
Net loans | 80,056 | 79,948 | 79,034 | 77,145 | 76,204 | ||||||||||||||
Other earning assets (1)(2) | 1,652 | 773 | 697 | 587 | 616 | ||||||||||||||
Premises and equipment, net | 2,152 | 2,122 | 2,147 | 2,174 | 2,193 | ||||||||||||||
Interest receivable | 319 | 316 | 305 | 313 | 310 | ||||||||||||||
Goodwill | 4,878 | 4,831 | 4,816 | 4,816 | 4,816 | ||||||||||||||
Residential mortgage servicing rights at fair value (MSRs) | 252 | 241 | 268 | 239 | 257 | ||||||||||||||
Other identifiable intangible assets | 259 | 263 | 268 | 272 | 275 | ||||||||||||||
Other assets | 5,921 | 6,693 | 5,832 | 5,773 | 6,013 | ||||||||||||||
Total assets | $ | 126,050 | $ | 124,789 | $ | 121,855 | $ | 122,447 | $ | 119,563 | |||||||||
Liabilities and stockholders’ equity: | |||||||||||||||||||
Deposits: | |||||||||||||||||||
Non-interest-bearing | $ | 34,862 | $ | 34,117 | $ | 33,810 | $ | 33,553 | $ | 31,747 | |||||||||
Interest-bearing | 63,568 | 63,061 | 63,265 | 63,924 | 62,453 | ||||||||||||||
Total deposits | 98,430 | 97,178 | 97,075 | 97,477 | 94,200 | ||||||||||||||
Borrowed funds: | |||||||||||||||||||
Short-term borrowings: | |||||||||||||||||||
Federal funds purchased and securities sold under agreements to repurchase | — | — | 96 | 2,085 | 1,753 | ||||||||||||||
Other short-term borrowings | 10 | — | 1,750 | — | 500 | ||||||||||||||
Total short-term borrowings | 10 | — | 1,846 | 2,085 | 2,253 | ||||||||||||||
Long-term borrowings | 8,349 | 7,364 | 3,602 | 3,208 | 3,462 | ||||||||||||||
Total borrowed funds | 8,359 | 7,364 | 5,448 | 5,293 | 5,715 | ||||||||||||||
Other liabilities | 2,417 | 3,295 | 2,433 | 2,626 | 2,775 | ||||||||||||||
Total liabilities | 109,206 | 107,837 | 104,956 | 105,396 | 102,690 | ||||||||||||||
Stockholders’ equity: | |||||||||||||||||||
Preferred stock, non-cumulative perpetual | 820 | 836 | 852 | 868 | 884 | ||||||||||||||
Common stock | 13 | 13 | 14 | 14 | 14 | ||||||||||||||
Additional paid-in capital | 17,883 | 18,019 | 18,355 | 18,604 | 18,767 | ||||||||||||||
Retained earnings (deficit) | (115 | ) | (400 | ) | (658 | ) | (943 | ) | (1,177 | ) | |||||||||
Treasury stock, at cost | (1,377 | ) | (1,377 | ) | (1,377 | ) | (1,377 | ) | (1,377 | ) | |||||||||
Accumulated other comprehensive income (loss), net | (380 | ) | (139 | ) | (287 | ) | (115 | ) | (238 | ) | |||||||||
Total stockholders’ equity | 16,844 | 16,952 | 16,899 | 17,051 | 16,873 | ||||||||||||||
Total liabilities and stockholders’ equity | $ | 126,050 | $ | 124,789 | $ | 121,855 | $ | 122,447 | $ | 119,563 |
As of | |||||||||||||||||||||||||||||||||
12/31/2015 | 12/31/2015 | ||||||||||||||||||||||||||||||||
($ amounts in millions) | 12/31/2015 | 9/30/2015 | 6/30/2015 | 3/31/2015 | 12/31/2014 | vs. 9/30/2015 | vs. 12/31/2014 | ||||||||||||||||||||||||||
Commercial and industrial | $ | 35,821 | $ | 35,906 | $ | 35,347 | $ | 33,681 | $ | 32,732 | $ | (85 | ) | (0.2 | )% | $ | 3,089 | 9.4 | % | ||||||||||||||
Commercial real estate mortgage—owner-occupied | 7,538 | 7,741 | 7,797 | 8,043 | 8,263 | (203 | ) | (2.6 | )% | (725 | ) | (8.8 | )% | ||||||||||||||||||||
Commercial real estate construction—owner-occupied | 423 | 406 | 448 | 437 | 407 | 17 | 4.2 | % | 16 | 3.9 | % | ||||||||||||||||||||||
Total commercial (1) | 43,782 | 44,053 | 43,592 | 42,161 | 41,402 | (271 | ) | (0.6 | )% | 2,380 | 5.7 | % | |||||||||||||||||||||
Commercial investor real estate mortgage | 4,255 | 4,386 | 4,509 | 4,499 | 4,680 | (131 | ) | (3.0 | )% | (425 | ) | (9.1 | )% | ||||||||||||||||||||
Commercial investor real estate construction | 2,692 | 2,525 | 2,419 | 2,422 | 2,133 | 167 | 6.6 | % | 559 | 26.2 | % | ||||||||||||||||||||||
Total investor real estate | 6,947 | 6,911 | 6,928 | 6,921 | 6,813 | 36 | 0.5 | % | 134 | 2.0 | % | ||||||||||||||||||||||
Total business (1) | 50,729 | 50,964 | 50,520 | 49,082 | 48,215 | (235 | ) | (0.5 | )% | 2,514 | 5.2 | % | |||||||||||||||||||||
Residential first mortgage | 12,811 | 12,730 | 12,589 | 12,418 | 12,315 | 81 | 0.6 | % | 496 | 4.0 | % | ||||||||||||||||||||||
Home equity—first lien | 6,696 | 6,577 | 6,424 | 6,261 | 6,195 | 119 | 1.8 | % | 501 | 8.1 | % | ||||||||||||||||||||||
Home equity—second lien | 4,282 | 4,370 | 4,475 | 4,593 | 4,737 | (88 | ) | (2.0 | )% | (455 | ) | (9.6 | )% | ||||||||||||||||||||
Indirect—vehicles | 3,984 | 3,895 | 3,782 | 3,701 | 3,642 | 89 | 2.3 | % | 342 | 9.4 | % | ||||||||||||||||||||||
Indirect—other consumer | 545 | 490 | 383 | 272 | 206 | 55 | 11.2 | % | 339 | 164.6 | % | ||||||||||||||||||||||
Consumer credit card | 1,075 | 1,016 | 992 | 966 | 1,009 | 59 | 5.8 | % | 66 | 6.5 | % | ||||||||||||||||||||||
Other consumer | 1,040 | 1,021 | 984 | 950 | 988 | 19 | 1.9 | % | 52 | 5.3 | % | ||||||||||||||||||||||
Total consumer | 30,433 | 30,099 | 29,629 | 29,161 | 29,092 | 334 | 1.1 | % | 1,341 | 4.6 | % | ||||||||||||||||||||||
Total Loans | $ | 81,162 | $ | 81,063 | $ | 80,149 | $ | 78,243 | $ | 77,307 | $ | 99 | 0.1 | % | $ | 3,855 | 5.0 | % | |||||||||||||||
Operating leases previously reported as capital leases | 834 | — | — | — | — | 834 | NM | 834 | NM | ||||||||||||||||||||||||
Adjusted Total Loans and Leases (non-GAAP) (1) | $ | 81,996 | $ | 81,063 | $ | 80,149 | $ | 78,243 | $ | 77,307 | $ | 933 | 1.2 | % | $ | 4,689 | 6.1 | % | |||||||||||||||
Average Balances | |||||||||||||||||||||||||||||||||
($ amounts in millions) | 4Q15 | 3Q15 | 2Q15 | 1Q15 | 4Q14 | 4Q15 vs. 3Q15 | 4Q15 vs. 4Q14 | ||||||||||||||||||||||||||
Commercial and industrial | $ | 35,511 | $ | 35,647 | $ | 34,480 | $ | 33,418 | $ | 32,484 | $ | (136 | ) | (0.4 | )% | $ | 3,027 | 9.3 | % | ||||||||||||||
Commercial real estate mortgage—owner-occupied | 7,675 | 7,768 | 7,921 | 8,143 | 8,466 | (93 | ) | (1.2 | )% | (791 | ) | (9.3 | )% | ||||||||||||||||||||
Commercial real estate construction—owner-occupied | 415 | 443 | 430 | 422 | 367 | (28 | ) | (6.3 | )% | 48 | 13.1 | % | |||||||||||||||||||||
Total commercial | 43,601 | 43,858 | 42,831 | 41,983 | 41,317 | (257 | ) | (0.6 | )% | 2,284 | 5.5 | % | |||||||||||||||||||||
Commercial investor real estate mortgage | 4,332 | 4,441 | 4,549 | 4,629 | 4,837 | (109 | ) | (2.5 | )% | (505 | ) | (10.4 | )% | ||||||||||||||||||||
Commercial investor real estate construction | 2,576 | 2,455 | 2,416 | 2,236 | 2,032 | 121 | 4.9 | % | 544 | 26.8 | % | ||||||||||||||||||||||
Total investor real estate | 6,908 | 6,896 | 6,965 | 6,865 | 6,869 | 12 | 0.2 | % | 39 | 0.6 | % | ||||||||||||||||||||||
Total business | 50,509 | 50,754 | 49,796 | 48,848 | 48,186 | (245 | ) | (0.5 | )% | 2,323 | 4.8 | % | |||||||||||||||||||||
Residential first mortgage | 12,753 | 12,649 | 12,471 | 12,330 | 12,273 | 104 | 0.8 | % | 480 | 3.9 | % | ||||||||||||||||||||||
Home equity—first lien | 6,643 | 6,510 | 6,355 | 6,234 | 6,161 | 133 | 2.0 | % | 482 | 7.8 | % | ||||||||||||||||||||||
Home equity—second lien | 4,305 | 4,392 | 4,512 | 4,651 | 4,778 | (87 | ) | (2.0 | )% | (473 | ) | (9.9 | )% | ||||||||||||||||||||
Indirect—vehicles | 3,969 | 3,863 | 3,768 | 3,708 | 3,627 | 106 | 2.7 | % | 342 | 9.4 | % | ||||||||||||||||||||||
Indirect—other consumer | 523 | 439 | 328 | 237 | 203 | 84 | 19.1 | % | 320 | 157.6 | % | ||||||||||||||||||||||
Consumer credit card | 1,031 | 1,004 | 975 | 977 | 975 | 27 | 2.7 | % | 56 | 5.7 | % | ||||||||||||||||||||||
Other consumer | 1,027 | 1,004 | 970 | 957 | 979 | 23 | 2.3 | % | 48 | 4.9 | % | ||||||||||||||||||||||
Total consumer | 30,251 | 29,861 | 29,379 | 29,094 | 28,996 | 390 | 1.3 | % | 1,255 | 4.3 | % | ||||||||||||||||||||||
Total Loans | $ | 80,760 | $ | 80,615 | $ | 79,175 | $ | 77,942 | $ | 77,182 | $ | 145 | 0.2 | % | $ | 3,578 | 4.6 | % | |||||||||||||||
Operating leases previously reported as capital leases | 852 | — | — | — | — | 852 | NM | 852 | NM | ||||||||||||||||||||||||
Adjusted Total Loans and Leases (non-GAAP) (1) | $ | 81,612 | $ | 80,615 | $ | 79,175 | $ | 77,942 | $ | 77,182 | $ | 997 | 1.2 | % | $ | 4,430 | 5.7 | % | |||||||||||||||
_________ | |||||||||||||||||||||||||||||||||
(1) Regions believes including the impact of the operating leases, reported as capital leases prior to the fourth quarter of 2015, provides a meaningful calculation of loan and lease | |||||||||||||||||||||||||||||||||
growth rates and presents them on the same basis as that applied by management. Adjusting the December 31, 2015 ending balances of total commercial and business loan | |||||||||||||||||||||||||||||||||
categories to include the impact of the operating leases, loan and lease growth rates would have been 1.3% and 1.2%, respectively, compared to September 30, 2015, and 7.8% | |||||||||||||||||||||||||||||||||
and 6.9%, respectively, compared to December 31, 2014. | |||||||||||||||||||||||||||||||||
Loans and Leases (Continued) | |||||||||||||||||||||||||||||||||
End of Period Loan Portfolio Balances by Percentage | As of | ||||||||||||||||||||||||||||||||
12/31/2015 | 9/30/2015 | 6/30/2015 | 3/31/2015 | 12/31/2014 | |||||||||||||||||||||||||||||
Commercial and industrial | 44.1 | % | 44.3 | % | 44.1 | % | 43.0 | % | 42.4 | % | |||||||||||||||||||||||
Commercial real estate mortgage—owner-occupied | 9.3 | % | 9.5 | % | 9.7 | % | 10.3 | % | 10.7 | % | |||||||||||||||||||||||
Commercial real estate construction—owner-occupied | 0.5 | % | 0.5 | % | 0.6 | % | 0.6 | % | 0.5 | % | |||||||||||||||||||||||
Total commercial | 53.9 | % | 54.3 | % | 54.4 | % | 53.9 | % | 53.6 | % | |||||||||||||||||||||||
Commercial investor real estate mortgage | 5.3 | % | 5.4 | % | 5.6 | % | 5.7 | % | 6.0 | % | |||||||||||||||||||||||
Commercial investor real estate construction | 3.3 | % | 3.1 | % | 3.0 | % | 3.1 | % | 2.8 | % | |||||||||||||||||||||||
Total investor real estate | 8.6 | % | 8.5 | % | 8.6 | % | 8.8 | % | 8.8 | % | |||||||||||||||||||||||
Total business | 62.5 | % | 62.8 | % | 63.0 | % | 62.7 | % | 62.4 | % | |||||||||||||||||||||||
Residential first mortgage | 15.8 | % | 15.7 | % | 15.7 | % | 15.9 | % | 15.9 | % | |||||||||||||||||||||||
Home equity—first lien | 8.2 | % | 8.1 | % | 8.0 | % | 8.0 | % | 8.0 | % | |||||||||||||||||||||||
Home equity—second lien | 5.3 | % | 5.4 | % | 5.6 | % | 5.9 | % | 6.1 | % | |||||||||||||||||||||||
Indirect—vehicles | 4.9 | % | 4.8 | % | 4.7 | % | 4.7 | % | 4.7 | % | |||||||||||||||||||||||
Indirect—other consumer | 0.7 | % | 0.6 | % | 0.5 | % | 0.4 | % | 0.3 | % | |||||||||||||||||||||||
Consumer credit card | 1.3 | % | 1.3 | % | 1.3 | % | 1.2 | % | 1.3 | % | |||||||||||||||||||||||
Other consumer | 1.3 | % | 1.3 | % | 1.2 | % | 1.2 | % | 1.3 | % | |||||||||||||||||||||||
Total consumer | 37.5 | % | 37.2 | % | 37.0 | % | 37.3 | % | 37.6 | % | |||||||||||||||||||||||
Total Loans | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % |
As of | |||||||||||||||||||||||||||||||||
12/31/2015 | 12/31/2015 | ||||||||||||||||||||||||||||||||
($ amounts in millions) | 12/31/2015 | 9/30/2015 | 6/30/2015 | 3/31/2015 | 12/31/2014 | vs. 9/30/2015 | vs. 12/31/2014 | ||||||||||||||||||||||||||
Customer Deposits | |||||||||||||||||||||||||||||||||
Interest-free deposits | $ | 34,862 | $ | 34,117 | $ | 33,810 | $ | 33,553 | $ | 31,747 | $ | 745 | 2.2 | % | $ | 3,115 | 9.8 | % | |||||||||||||||
Interest-bearing checking | 21,902 | 21,096 | 21,315 | 21,780 | 21,544 | 806 | 3.8 | % | 358 | 1.7 | % | ||||||||||||||||||||||
Savings | 7,287 | 7,184 | 7,157 | 7,146 | 6,653 | 103 | 1.4 | % | 634 | 9.5 | % | ||||||||||||||||||||||
Money market—domestic | 26,468 | 26,541 | 26,417 | 26,371 | 25,396 | (73 | ) | (0.3 | )% | 1,072 | 4.2 | % | |||||||||||||||||||||
Money market—foreign | 243 | 256 | 258 | 238 | 265 | (13 | ) | (5.1 | )% | (22 | ) | (8.3 | )% | ||||||||||||||||||||
Low-cost deposits | 90,762 | 89,194 | 88,957 | 89,088 | 85,605 | 1,568 | 1.8 | % | 5,157 | 6.0 | % | ||||||||||||||||||||||
Time deposits | 7,468 | 7,784 | 8,118 | 8,389 | 8,595 | (316 | ) | (4.1 | )% | (1,127 | ) | (13.1 | )% | ||||||||||||||||||||
Total Customer Deposits | 98,230 | 96,978 | 97,075 | 97,477 | 94,200 | 1,252 | 1.3 | % | 4,030 | 4.3 | % | ||||||||||||||||||||||
Corporate Treasury Deposits | |||||||||||||||||||||||||||||||||
Time deposits | 200 | 200 | — | — | — | — | NM | 200 | NM | ||||||||||||||||||||||||
Total Deposits | $ | 98,430 | $ | 97,178 | $ | 97,075 | $ | 97,477 | $ | 94,200 | $ | 1,252 | 1.3 | % | $ | 4,230 | 4.5 | % | |||||||||||||||
Average Balances | |||||||||||||||||||||||||||||||||
($ amounts in millions) | 4Q15 | 3Q15 | 2Q15 | 1Q15 | 4Q14 | 4Q15 vs. 3Q15 | 4Q15 vs. 4Q14 | ||||||||||||||||||||||||||
Customer Deposits | |||||||||||||||||||||||||||||||||
Interest-free deposits | $ | 34,746 | $ | 34,089 | $ | 33,708 | $ | 32,255 | $ | 31,951 | $ | 657 | 1.9 | % | $ | 2,795 | 8.7 | % | |||||||||||||||
Interest-bearing checking | 21,052 | 20,992 | 21,494 | 21,769 | 21,003 | 60 | 0.3 | % | 49 | 0.2 | % | ||||||||||||||||||||||
Savings | 7,245 | 7,182 | 7,165 | 6,878 | 6,635 | 63 | 0.9 | % | 610 | 9.2 | % | ||||||||||||||||||||||
Money market—domestic | 26,371 | 26,522 | 26,233 | 26,132 | 25,506 | (151 | ) | (0.6 | )% | 865 | 3.4 | % | |||||||||||||||||||||
Money market—foreign | 256 | 271 | 250 | 249 | 246 | (15 | ) | (5.5 | )% | 10 | 4.1 | % | |||||||||||||||||||||
Low-cost deposits | 89,670 | 89,056 | 88,850 | 87,283 | 85,341 | 614 | 0.7 | % | 4,329 | 5.1 | % | ||||||||||||||||||||||
Time deposits | 7,618 | 7,958 | 8,250 | 8,500 | 8,683 | (340 | ) | (4.3 | )% | (1,065 | ) | (12.3 | )% | ||||||||||||||||||||
Total Customer Deposits | 97,288 | 97,014 | 97,100 | 95,783 | 94,024 | 274 | 0.3 | % | 3,264 | 3.5 | % | ||||||||||||||||||||||
Corporate Treasury Deposits | |||||||||||||||||||||||||||||||||
Time deposits | 200 | 152 | — | — | — | 48 | 31.6 | % | 200 | NM | |||||||||||||||||||||||
Total Deposits | $ | 97,488 | $ | 97,166 | $ | 97,100 | $ | 95,783 | $ | 94,024 | $ | 322 | 0.3 | % | $ | 3,464 | 3.7 | % | |||||||||||||||
As of | |||||||||||||||||||||||||||||||||
End of Period Deposits by Percentage | 12/31/2015 | 9/30/2015 | 6/30/2015 | 3/31/2015 | 12/31/2014 | ||||||||||||||||||||||||||||
Customer Deposits | |||||||||||||||||||||||||||||||||
Interest-free deposits | 35.4 | % | 35.1 | % | 34.8 | % | 34.4 | % | 33.7 | % | |||||||||||||||||||||||
Interest-bearing checking | 22.3 | % | 21.7 | % | 22.0 | % | 22.4 | % | 22.9 | % | |||||||||||||||||||||||
Savings | 7.4 | % | 7.4 | % | 7.4 | % | 7.3 | % | 7.0 | % | |||||||||||||||||||||||
Money market—domestic | 26.9 | % | 27.3 | % | 27.2 | % | 27.1 | % | 27.0 | % | |||||||||||||||||||||||
Money market—foreign | 0.2 | % | 0.3 | % | 0.3 | % | 0.2 | % | 0.3 | % | |||||||||||||||||||||||
Low-cost deposits | 92.2 | % | 91.8 | % | 91.7 | % | 91.4 | % | 90.9 | % | |||||||||||||||||||||||
Time deposits | 7.6 | % | 8.0 | % | 8.3 | % | 8.6 | % | 9.1 | % | |||||||||||||||||||||||
Total Customer Deposits | 99.8 | % | 99.8 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||||||||||||||||||||||
Corporate Treasury Deposits | |||||||||||||||||||||||||||||||||
Time deposits | 0.2 | % | 0.2 | % | — | % | — | % | — | % | |||||||||||||||||||||||
Total Deposits | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % |
As of and for Quarter Ended | ||||||||||||||||||||
($ amounts in millions, except per share data) | 12/31/2015 | 9/30/2015 | 6/30/2015 | 3/31/2015 | 12/31/2014 | |||||||||||||||
Tangible Common Ratios—Consolidated | ||||||||||||||||||||
Stockholders’ equity (GAAP) | $ | 16,844 | $ | 16,952 | $ | 16,899 | $ | 17,051 | $ | 16,873 | ||||||||||
Less: | ||||||||||||||||||||
Preferred stock (GAAP) | 820 | 836 | 852 | 868 | 884 | |||||||||||||||
Intangible assets (GAAP) | 5,137 | 5,094 | 5,084 | 5,088 | 5,091 | |||||||||||||||
Deferred tax liability related to intangibles (GAAP) | (165 | ) | (168 | ) | (170 | ) | (173 | ) | (172 | ) | ||||||||||
Tangible common stockholders’ equity (non-GAAP) | A | $ | 11,052 | $ | 11,190 | $ | 11,133 | $ | 11,268 | $ | 11,070 | |||||||||
Total assets (GAAP) | $ | 126,050 | $ | 124,789 | $ | 121,855 | $ | 122,447 | $ | 119,563 | ||||||||||
Less: | ||||||||||||||||||||
Intangible assets (GAAP) | 5,137 | 5,094 | 5,084 | 5,088 | 5,091 | |||||||||||||||
Deferred tax liability related to intangibles (GAAP) | (165 | ) | (168 | ) | (170 | ) | (173 | ) | (172 | ) | ||||||||||
Tangible assets (non-GAAP) | B | $ | 121,078 | $ | 119,863 | $ | 116,941 | $ | 117,532 | $ | 114,644 | |||||||||
Shares outstanding—end of quarter | C | 1,297 | 1,304 | 1,331 | 1,343 | 1,354 | ||||||||||||||
Tangible common stockholders’ equity to tangible assets (non-GAAP) | A/B | 9.13 | % | 9.34 | % | 9.52 | % | 9.59 | % | 9.66 | % | |||||||||
Tangible common book value per share (non-GAAP) | A/C | $ | 8.52 | $ | 8.58 | $ | 8.37 | $ | 8.39 | $ | 8.18 |
($ amounts in millions) | 12/31/2015 | 9/30/2015 | 6/30/2015 | 3/31/2015 | ||||||||||||
Basel III Common Equity Tier 1 Ratio—Fully Phased-In Pro-Forma (1) | ||||||||||||||||
Stockholder's equity (GAAP) | $ | 16,844 | $ | 16,952 | $ | 16,899 | $ | 17,051 | ||||||||
Non-qualifying goodwill and intangibles | (4,958 | ) | (4,913 | ) | (4,902 | ) | (4,910 | ) | ||||||||
Adjustments, including all components of accumulated other comprehensive income, disallowed deferred tax assets, threshold deductions and other adjustments | 286 | 41 | 183 | 1 | ||||||||||||
Preferred stock (GAAP) | (820 | ) | (836 | ) | (852 | ) | (868 | ) | ||||||||
Basel III common equity Tier 1—Fully Phased-In Pro-Forma (non-GAAP) | D | $ | 11,352 | $ | 11,244 | $ | 11,328 | $ | 11,274 | |||||||
Basel III risk-weighted assets—Fully Phased-In Pro-Forma (non-GAAP) (2) | E | $ | 105,938 | $ | 104,645 | $ | 102,479 | $ | 101,027 | |||||||
Basel III common equity Tier 1 ratio—Fully Phased-In Pro-Forma (non-GAAP) | D/E | 10.7 | % | 10.8 | % | 11.1 | % | 11.2 | % |
(1) | Current quarter amounts and the resulting ratio are estimated. Regulatory capital measures for periods prior to the first quarter of 2015 were not revised to reflect the retrospective application of new accounting guidance related to investments in qualified affordable housing projects. As a result, those calculations have been removed from the table. |
(2) | Regions continues to develop systems and internal controls to precisely calculate risk-weighted assets as required by Basel III on a fully phased-in basis. The amounts included above are a reasonable approximation, based on our understanding of the requirements. |
• | Current and future economic and market conditions in the United States generally or in the communities we serve, including the effects of declines in property values, unemployment rates 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 earnings. |
• | The effects of a possible downgrade in the U.S. government’s sovereign credit rating or outlook, which could result in risks to us and general economic conditions that we are not able to predict. |
• | Possible 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. |
• | Any impairment of our goodwill or other intangibles, or any adjustment of valuation allowances on our deferred tax assets due to adverse changes in the economic environment, declining operations of the reporting unit, or other factors. |
• | Possible changes in the creditworthiness of customers and the possible impairment of the collectability of loans. |
• | Changes in the speed of loan prepayments, loan origination and sale volumes, charge-offs, loan loss provisions or actual loan losses where our allowance for loan losses may not be adequate to cover our eventual losses. |
• | Possible acceleration of prepayments on mortgage-backed securities due to low interest rates, and the related acceleration of premium amortization on those securities. |
• | Our ability to effectively compete with other financial services companies, some of whom possess greater financial resources than we do and are subject to different regulatory standards than we are. |
• | Loss of customer checking and savings account deposits as customers pursue other, higher-yield investments, which could increase our funding costs. |
• | Our inability to develop and gain acceptance from current and prospective customers for new products and services in a timely manner could have a negative impact on our revenue. |
• | Changes in laws and regulations affecting our businesses, such as the Dodd-Frank Act and other legislation and regulations relating to bank products and services, as well as changes in the enforcement and interpretation of such laws and regulations by applicable governmental and self-regulatory agencies, 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 ability to obtain no regulatory objection (as part of the comprehensive capital analysis and review ("CCAR") process or otherwise) to take certain capital actions, including paying dividends and any plans to increase common stock dividends, repurchase common stock under current or future programs, or redeem preferred stock or other regulatory capital instruments, may impact our ability to return capital to stockholders and market perceptions of us. |
• | Our ability to comply with applicable capital and liquidity requirements (including 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 could be negatively impacted. |
• | 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 business. |
• | 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. |
• | Any inaccurate or incomplete information provided to us by our customers or counterparties. |
• | Inability of our framework to manage risks associated with our business 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. |
• | The inability of our internal disclosure controls and procedures to prevent, detect or mitigate any material errors or fraudulent acts. |
• | The effects of geopolitical instability, including wars, conflicts 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, which may negatively affect our operations and/or our loan portfolios and increase our cost of conducting business. |
• | Our inability to keep pace with technological changes could result in losing business to competitors. |
• | Our ability to identify and address cyber-security risks such as data security breaches, "denial of service" attacks, "hacking" and identity theft, a failure of which could disrupt our business and result in the disclosure of and/or misuse or misappropriation of confidential or proprietary information; increased costs; losses; or adverse effects to our reputation. |
• | Possible downgrades in our credit ratings or outlook could 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 could affect our liquidity and ability to pay dividends to stockholders. |
• | Changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board or other regulatory agencies could materially affect how we report our financial results. |
• | The effects of any damage to our reputation resulting from developments related to any of the items identified above. |