Regions Financial 8K Consistent, Sustainable Performance. Regions reports second quarter 2023 earnings of $556 million, earnings per diluted share of $0.59 | RF 21 Jul 23

Exhibit 99.2

Regions Financial Corporation and Subsidiaries

Financial Supplement (unaudited)

Second Quarter 2023

Regions Financial Corporation and Subsidiaries

Financial Supplement (unaudited) to Second Quarter 2023 Earnings Release

Table of Contents



						Page

Financial Highlights						1

Selected Ratios and Other Information*						2

Consolidated Balance Sheets						3

Loans						4

Deposits						6

Consolidated Statements of Income						8

Consolidated Average Daily Balances and Yield / Rate Analysis						10

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

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

Non-Interest Expense						15

Reconciliation of GAAP Financial Measures to non-GAAP Financial Measures*
Adjusted Efficiency Ratios, Adjusted Fee Income Ratios, Adjusted Non-Interest Income / Expense, Adjusted Operating Leverage Ratios, Return Ratios, and Tangible Common Ratios						16

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

Forward-Looking Statements						22

*Use of non-GAAP financial measures

Regions believes that presentation of non-GAAP financial measures provides a meaningful basis for period to period comparisons, which management believes will assist investors in assessing the performance of the Company on the same basis as that applied by management. Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied and are not audited. Although non-GAAP financial measures are frequently used by stakeholders in the evaluation of a company, they have limitations as analytical tools, and should not be considered in isolation, or as a substitute for analyses of results as reported under GAAP. In particular, a measure of earnings that excludes certain adjustments does not represent the amount that effectively accrues directly to shareholders. Additionally, our non-GAAP financial measures may not be comparable to similar non-GAAP financial measures used by other companies.

Regions Financial Corporation and Subsidiaries

Financial Supplement (unaudited) to Second Quarter 2023 Earnings Release

Financial Highlights


	Quarter Ended
($ amounts in millions, except per share data)	6/30/2023			3/31/2023			12/31/2022			9/30/2022			6/30/2022
Earnings Summary
Interest income - taxable equivalent	$	1,751		$	1,654		$	1,565		$	1,355		$	1,166
Interest expense - taxable equivalent	358			224			151			81			47
Net interest income - taxable equivalent	1,393			1,430			1,414			1,274			1,119
Less: Taxable-equivalent adjustment	12			13			13			12			11
Net interest income	1,381			1,417			1,401			1,262			1,108
Provision for credit losses	118			135			112			135			60
Net interest income after provision for credit losses	1,263			1,282			1,289			1,127			1,048
Non-interest income	576			534			600			605			640
Non-interest expense	1,111			1,027			1,017			1,170			948
Income before income taxes	728			789			872			562			740
Income tax expense	147			177			187			133			157
Net income	$	581		$	612		$	685		$	429		$	583
Net income available to common shareholders	$	556		$	588		$	660		$	404		$	558



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

Earnings per common share - basic	$	0.59		$	0.63		$	0.71		$	0.43		$	0.60
Earnings per common share - diluted	$	0.59		$	0.62		$	0.70		$	0.43		$	0.59

Balance Sheet Summary
At quarter-end
Loans, net of unearned income	$	99,191		$	98,057		$	97,009		$	94,711		$	93,458
Allowance for credit losses	(1,633		)	(1,596		)	(1,582		)	(1,539		)	(1,514		)
Assets	155,656			154,135			155,220			157,798			160,908
Deposits	126,959			128,460			131,743			135,378			138,263
Long-term borrowings	4,293			2,307			2,284			2,274			2,319
Shareholders' equity	16,639			16,883			15,947			15,173			16,507
Average balances
Loans, net of unearned income	$	98,581		$	97,277		$	95,752		$	94,684		$	90,764
Assets	153,774			153,082			155,668			158,422			161,826
Deposits	125,539			129,042			133,007			135,518			139,592
Long-term borrowings	3,517			2,286			2,275			2,319			2,328
Shareholders' equity	16,892			16,457			15,442			16,473			16,404

Regions Financial Corporation and Subsidiaries

Financial Supplement (unaudited) to Second Quarter 2023 Earnings Release

Selected Ratios and Other Information


	As of and for Quarter Ended
	6/30/2023			3/31/2023			12/31/2022			9/30/2022			6/30/2022
Return on average assets* (1)	1.52		%	1.62		%	1.75		%	1.07		%	1.44		%
Return on average common shareholders' equity*	14.65		%	16.10		%	19.01		%	10.82		%	15.18		%
Return on average tangible common shareholders’ equity (non-GAAP)* (2)	23.82		%	26.70		%	33.20		%	18.02		%	25.40		%
Return on average tangible common shareholders’ equity excluding AOCI (non-GAAP)* (2)	18.14		%	19.85		%	22.91		%	14.42		%	20.85		%
Efficiency ratio	56.4		%	52.3		%	50.5		%	62.3		%	53.9		%
Adjusted efficiency ratio (non-GAAP) (2)	56.4		%	52.2		%	51.6		%	52.6		%	54.2		%
Dividend payout ratio (3)	33.7		%	31.8		%	28.3		%	46.2		%	28.5		%
Common book value per share	$	15.95		$	16.29		$	15.29		$	14.46		$	15.89
Tangible common book value per share (non-GAAP) (2)	$	9.72		$	10.01		$	9.00		$	8.15		$	9.55
Total equity to total assets	10.69		%	10.95		%	10.27		%	9.62		%	10.26		%
Tangible common shareholders’ equity to tangible assets (non-GAAP) (2)	6.09		%	6.31		%	5.63		%	5.01		%	5.76		%
Common equity (4)	$	12,787		$	12,420		$	12,066		$	11,554		$	11,298
Total risk-weighted assets (4)	$	127,143		$	125,747		$	125,752		$	124,395		$	122,154
Common equity Tier 1 ratio (4)	10.1		%	9.9		%	9.6		%	9.3		%	9.2		%
Tier 1 capital ratio (4)	11.4		%	11.2		%	10.9		%	10.6		%	10.6		%
Total risk-based capital ratio (4)	13.1		%	12.9		%	12.5		%	12.3		%	12.3		%
Leverage ratio (4)	9.5		%	9.3		%	8.9		%	8.5		%	8.2		%
Effective tax rate	20.2		%	22.4		%	21.5		%	23.7		%	21.2		%
Allowance for credit losses as a percentage of loans, net of unearned income	1.65		%	1.63		%	1.63		%	1.63		%	1.62		%
Allowance for credit losses to non-performing loans, excluding loans held for sale	332		%	288		%	317		%	311		%	410		%
Net interest margin (FTE)*	4.04		%	4.22		%	3.99		%	3.53		%	3.06		%

Loans, net of unearned income, to total deposits	78.1		%	76.3		%	73.6		%	70.0		%	67.6		%
Net charge-offs as a percentage of average loans*	0.33		%	0.35		%	0.29		%	0.46		%	0.17		%
Adjusted net charge-offs as a percentage of average loans (non-GAAP) * (2)	0.33		%	0.35		%	0.29		%	0.19		%	0.17		%
Non-performing loans, excluding loans held for sale, as a percentage of loans	0.50		%	0.56		%	0.52		%	0.52		%	0.39		%
Non-performing assets (excluding loans 90 days past due) as a percentage of loans, foreclosed properties, and non-performing loans held for sale	0.51		%	0.58		%	0.53		%	0.54		%	0.41		%
Non-performing assets (including loans 90 days past due) as a percentage of loans, foreclosed properties, and non-performing loans held for sale (5)	0.64		%	0.71		%	0.75		%	0.65		%	0.52		%
Associate headcount—full-time equivalent	20,349			20,113			20,073			19,950			19,673
ATMs	2,025			2,034			2,039			2,043			2,048
Branch Statistics
Full service	1,245			1,251			1,252			1,259			1,259
Drive-through/transaction service only	31			34			34			35			35
Total branch outlets	1,276			1,285			1,286			1,294			1,294

*Annualized

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

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

(3)Dividend payout ratio reflects dividends declared within the applicable period.

(4)Current quarter Common equity as well as Total risk-weighted assets, Common equity Tier 1, Tier 1 capital, Total risk-based capital and Leverage ratios are estimated.

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

Regions Financial Corporation and Subsidiaries

Financial Supplement (unaudited) to Second Quarter 2023 Earnings Release

Consolidated Balance Sheets


	As of
($ amounts in millions)	6/30/2023		3/31/2023		12/31/2022		9/30/2022		6/30/2022
Assets:
Cash and due from banks	$	2,480	$	2,395	$	1,997	$	2,117	$	2,301
Interest-bearing deposits in other banks	7,406		6,438		9,230		13,549		18,199
Debt securities held to maturity	777		790		801		817		836
Debt securities available for sale	27,296		28,230		27,933		28,126		29,052
Loans held for sale	554		564		354		720		612
Loans, net of unearned income	99,191		98,057		97,009		94,711		93,458
Allowance for loan losses	(1,513)		(1,472)		(1,464)		(1,418)		(1,425)
Net loans	97,678		96,585		95,545		93,293		92,033
Other earning assets	1,563		1,335		1,308		1,341		1,428
Premises and equipment, net	1,622		1,705		1,718		1,744		1,768
Interest receivable	575		538		511		424		365
Goodwill	5,733		5,733		5,733		5,739		5,749
Residential mortgage servicing rights at fair value (MSRs)	801		790		812		809		770
Other identifiable intangible assets, net	226		238		249		266		279
Other assets	8,945		8,794		9,029		8,853		7,516
Total assets	$	155,656	$	154,135	$	155,220	$	157,798	$	160,908
Liabilities and Equity:
Deposits:
Non-interest-bearing	$	46,898	$	49,647	$	51,348	$	54,996	$	58,510
Interest-bearing	80,061		78,813		80,395		80,382		79,753
Total deposits	126,959		128,460		131,743		135,378		138,263
Borrowed funds:
Short-term borrowings	3,000		2,000		—		—		—
Long-term borrowings	4,293		2,307		2,284		2,274		2,319

Other liabilities	4,743		4,466		5,242		4,973		3,819
Total liabilities	138,995		137,233		139,269		142,625		144,401
Equity:
Preferred stock, non-cumulative perpetual	1,659		1,659		1,659		1,659		1,659

Common stock	10		10		10		10		10
Additional paid-in capital	11,979		11,996		11,988		11,976		11,962
Retained earnings	7,802		7,433		7,004		6,531		6,314
Treasury stock, at cost	(1,371)		(1,371)		(1,371)		(1,371)		(1,371)
Accumulated other comprehensive income (loss), net	(3,440)		(2,844)		(3,343)		(3,632)		(2,067)
Total shareholders’ equity	16,639		16,883		15,947		15,173		16,507
Noncontrolling interest	22		19		4		—		—
Total equity	16,661		16,902		15,951		15,173		16,507
Total liabilities and equity	$	155,656	$	154,135	$	155,220	$	157,798	$	160,908

Regions Financial Corporation and Subsidiaries

Financial Supplement (unaudited) to Second Quarter 2023 Earnings Release

End of Period Loans


	As of
											6/30/2023				6/30/2023
($ amounts in millions)	6/30/2023		3/31/2023		12/31/2022		9/30/2022		6/30/2022		vs. 3/31/2023				vs. 6/30/2022
Commercial and industrial	$	52,300	$	51,811	$	50,905	$	49,591	$	48,492	$	489	0.9	%	$	3,808	7.9	%
Commercial real estate mortgage—owner-occupied	4,797		4,938		5,103		5,167		5,218		(141)		(2.9)	%	(421)		(8.1)	%
Commercial real estate construction—owner-occupied	292		306		298		282		266		(14)		(4.6)	%	26		9.8	%
Total commercial	57,389		57,055		56,306		55,040		53,976		334		0.6	%	3,413		6.3	%
Commercial investor real estate mortgage	6,500		6,392		6,393		6,295		5,892		108		1.7	%	608		10.3	%
Commercial investor real estate construction	2,132		2,040		1,986		1,824		1,720		92		4.5	%	412		24.0	%
Total investor real estate	8,632		8,432		8,379		8,119		7,612		200		2.4	%	1,020		13.4	%
Total business	66,021		65,487		64,685		63,159		61,588		534		0.8	%	4,433		7.2	%
Residential first mortgage	19,755		19,172		18,810		18,399		17,892		583		3.0	%	1,863		10.4	%
Home equity—lines of credit (1)	3,313		3,397		3,510		3,521		3,550		(84)		(2.5)	%	(237)		(6.7)	%
Home equity—closed-end (2)	2,425		2,446		2,489		2,515		2,524		(21)		(0.9)	%	(99)		(3.9)	%
Consumer credit card	1,231		1,219		1,248		1,186		1,172		12		1.0	%	59		5.0	%
Other consumer—exit portfolios (3)	416		488		570		662		775		(72)		(14.8)	%	(359)		(46.3)	%
Other consumer	6,030		5,848		5,697		5,269		5,957		182		3.1	%	73		1.2	%
Total consumer	33,170		32,570		32,324		31,552		31,870		600		1.8	%	1,300		4.1	%
Total Loans	$	99,191	$	98,057	$	97,009	$	94,711	$	93,458	$	1,134	1.2	%	$	5,733	6.1	%

______

(1) The balance of Regions' home equity lines of credit consists of $1,689 million of first lien and $1,624 million of second lien at 6/30/2023.

(2) The balance of Regions' closed-end home equity loans consists of $2,132 million of first lien and $293 million of second lien at 6/30/2023.

(3) Regions ceased originating indirect vehicle loans in the second quarter of 2019 and decided not to renew another third party relationship in the fourth quarter of 2019.


	As of
End of Period Loans by Percentage	6/30/2023		3/31/2023		12/31/2022		9/30/2022		6/30/2022
Commercial and industrial	52.7	%	52.8	%	52.5	%	52.4	%	51.9	%
Commercial real estate mortgage—owner-occupied	4.9	%	5.0	%	5.3	%	5.5	%	5.6	%
Commercial real estate construction—owner-occupied	0.3	%	0.3	%	0.3	%	0.3	%	0.3	%
Total commercial	57.9	%	58.1	%	58.1	%	58.2	%	57.8	%
Commercial investor real estate mortgage	6.6	%	6.5	%	6.6	%	6.6	%	6.3	%
Commercial investor real estate construction	2.1	%	2.1	%	2.0	%	1.9	%	1.8	%
Total investor real estate	8.7	%	8.6	%	8.6	%	8.5	%	8.1	%
Total business	66.6	%	66.7	%	66.7	%	66.7	%	65.9	%
Residential first mortgage	19.9	%	19.6	%	19.4	%	19.4	%	19.1	%
Home equity—lines of credit	3.3	%	3.5	%	3.6	%	3.7	%	3.8	%
Home equity—closed-end	2.4	%	2.5	%	2.6	%	2.7	%	2.7	%
Consumer credit card	1.2	%	1.2	%	1.3	%	1.3	%	1.3	%
Other consumer—exit portfolios	0.4	%	0.5	%	0.6	%	0.7	%	0.8	%
Other consumer	6.2	%	6.0	%	5.8	%	5.5	%	6.4	%
Total consumer	33.4	%	33.3	%	33.3	%	33.3	%	34.1	%
Total Loans	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%

Regions Financial Corporation and Subsidiaries

Financial Supplement (unaudited) to Second Quarter 2023 Earnings Release

Average Balances of Loans


	Average Balances
($ amounts in millions)	2Q23		1Q23		4Q22		3Q22		2Q22		2Q23 vs. 1Q23				2Q23 vs. 2Q22
Commercial and industrial	$	52,039	$	51,158	$	50,135	$	49,120	$	46,538	$	881	1.7	%	$	5,501	11.8	%
Commercial real estate mortgage—owner-occupied	4,905		5,013		5,073		5,167		5,204		(108)		(2.2)	%	(299)		(5.7)	%
Commercial real estate construction—owner-occupied	292		292		289		274		273		—		—	%	19		7.0	%
Total commercial	57,236		56,463		55,497		54,561		52,015		773		1.4	%	5,221		10.0	%


Commercial investor real estate mortgage	6,459		6,444		6,406		6,115		5,760		15		0.2	%	699		12.1	%
Commercial investor real estate construction	2,023		1,960		1,884		1,764		1,668		63		3.2	%	355		21.3	%
Total investor real estate	8,482		8,404		8,290		7,879		7,428		78		0.9	%	1,054		14.2	%
Total business	65,718		64,867		63,787		62,440		59,443		851		1.3	%	6,275		10.6	%


Residential first mortgage	19,427		18,957		18,595		18,125		17,569		470		2.5	%	1,858		10.6	%
Home equity—lines of credit	3,354		3,460		3,520		3,531		3,571		(106)		(3.1)	%	(217)		(6.1)	%
Home equity—closed-end	2,431		2,461		2,497		2,519		2,511		(30)		(1.2)	%	(80)		(3.2)	%
Consumer credit card	1,217		1,214		1,207		1,176		1,145		3		0.2	%	72		6.3	%
Other consumer—exit portfolios (1)	450		527		613		716		836		(77)		(14.6)	%	(386)		(46.2)	%
Other consumer	5,984		5,791		5,533		6,177		5,689		193		3.3	%	295		5.2	%
Total consumer	32,863		32,410		31,965		32,244		31,321		453		1.4	%	1,542		4.9	%
Total Loans	$	98,581	$	97,277	$	95,752	$	94,684	$	90,764	$	1,304	1.3	%	$	7,817	8.6	%


	Average Balances
	Six Months Ended June 30
($ amounts in millions)	2023		2022		2023 vs. 2022
Commercial and industrial	$	51,601	$	45,273	$	6,328	14.0	%
Commercial real estate mortgage—owner-occupied	4,959		5,221		(262)		(5.0)	%
Commercial real estate construction—owner-occupied	292		270		22		8.1	%
Total commercial	56,852		50,764		6,088		12.0	%
Commercial investor real estate mortgage	6,452		5,638		814		14.4	%
Commercial investor real estate construction	1,991		1,618		373		23.1	%
Total investor real estate	8,443		7,256		1,187		16.4	%
Total business	65,295		58,020		7,275		12.5	%
Residential first mortgage	19,193		17,532		1,661		9.5	%
Home equity—lines of credit	3,407		3,619		(212)		(5.9)	%
Home equity—closed-end	2,446		2,504		(58)		(2.3)	%
Consumer credit card	1,216		1,143		73		6.4	%
Other consumer—exit portfolios (1)	488		911		(423)		(46.4)	%
Other consumer	5,888		5,568		320		5.7	%
Total consumer	32,638		31,277		1,361		4.4	%
Total Loans	$	97,933	$	89,297	$	8,636	9.7	%

_____

NM - Not meaningful.

(1)Regions ceased originating indirect vehicle lending in the second quarter of 2019 and decided not to renew a third party relationship in the fourth quarter of 2019.

Regions Financial Corporation and Subsidiaries

Financial Supplement (unaudited) to Second Quarter 2023 Earnings Release

End of Period Deposits


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

Interest-free deposits	$	46,898	$	49,647	$	51,348	$	54,996	$	58,510	$	(2,749)	(5.5)%	$	(11,612)	(19.8)%
Interest-bearing checking	22,892		24,066		25,676		26,500		26,989		(1,174)		(4.9)%	(4,097)		(15.2)%
Savings	14,217		15,286		15,662		16,083		16,220		(1,069)		(7.0)%	(2,003)		(12.3)%
Money market—domestic	32,230		31,688		33,285		32,444		31,116		542		1.7%	1,114		3.6%
Low-cost deposits	116,237		120,687		125,971		130,023		132,835		(4,450)		(3.7)%	(16,598)		(12.5)%
Time deposits	10,722		7,773		5,772		5,355		5,428		2,949		37.9%	5,294		97.5%


Total Deposits	$	126,959	$	128,460	$	131,743	$	135,378	$	138,263	$	(1,501)	(1.2)%	$	(11,304)	(8.2)%

	As of
											6/30/2023			6/30/2023
($ amounts in millions)	6/30/2023		3/31/2023		12/31/2022		9/30/2022		6/30/2022		vs. 3/31/2023			vs. 6/30/2022
Consumer Bank Segment	$	81,554	$	83,296	$	83,487	$	85,455	$	84,987	$	(1,742)	(2.1)%	$	(3,433)	(4.0)%
Corporate Bank Segment	35,332		35,185		37,145		38,293		41,456		147		0.4%	(6,124)		(14.8)%
Wealth Management Segment	7,176		7,941		9,111		9,400		9,489		(765)		(9.6)%	(2,313)		(24.4)%
Other (1)(2)	2,897		2,038		2,000		2,230		2,331		859		42.1%	566		24.3%
Total Deposits	$	126,959	$	128,460	$	131,743	$	135,378	$	138,263	$	(1,501)	(1.2)%	$	(11,304)	(8.2)%

	As of
											6/30/2023			6/30/2023
($ amounts in millions)	6/30/2023		3/31/2023		12/31/2022		9/30/2022		6/30/2022		vs. 3/31/2023			vs. 6/30/2022
Wealth Management - Private Wealth	$	6,552	$	7,238	$	8,196	$	8,565	$	8,771	$	(686)	(9.5)%	$	(2,219)	(25.3)%
Wealth Management - Institutional Services	624		703		915		835		718		(79)		(11.2)%	(94)		(13.1)%
Total Wealth Management Segment Deposits	$	7,176	$	7,941	$	9,111	$	9,400	$	9,489	$	(765)	(9.6)%	$	(2,313)	(24.4)%


	As of
End of Period Deposits by Percentage	6/30/2023		3/31/2023		12/31/2022		9/30/2022		6/30/2022
Interest-free deposits	36.9	%	38.6	%	39.0	%	40.6	%	42.3	%
Interest-bearing checking	18.0	%	18.7	%	19.5	%	19.6	%	19.5	%
Savings	11.2	%	11.9	%	11.9	%	11.9	%	11.7	%
Money market—domestic	25.4	%	24.7	%	25.3	%	24.0	%	22.5	%
Low-cost deposits	91.5	%	93.9	%	95.7	%	96.1	%	96.0	%
Time deposits	8.5	%	6.1	%	4.3	%	3.9	%	4.0	%


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

NM - Not meaningful.

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

(2)Includes brokered deposits totaling $2.0 billion at 6/30/2023, $1.1 billion at 3/31/2023, $1.2 billion at 12/31/2022, $1.3 billion at 9/30/2022 and $1.5 billion at 6/30/2022.

Regions Financial Corporation and Subsidiaries

Financial Supplement (unaudited) to Second Quarter 2023 Earnings Release

Average Balances of Deposits


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

Interest-free deposits	$	47,178	$	49,592	$	53,107	$	55,806	$	58,911	$	(2,414)	(4.9)	%	$	(11,733)	(19.9)	%
Interest-bearing checking	22,979		24,697		25,379		26,665		27,533		(1,718)		(7.0)	%	(4,554)		(16.5)	%
Savings	14,701		15,418		15,840		16,176		16,200		(717)		(4.7)	%	(1,499)		(9.3)	%
Money market—domestic	31,567		32,522		33,219		31,520		31,348		(955)		(2.9)	%	219		0.7	%

Low-cost deposits	116,425		122,229		127,545		130,167		133,992		(5,804)		(4.7)	%	(17,567)		(13.1)	%
Time deposits	9,114		6,813		5,462		5,351		5,600		2,301		33.8	%	3,514		62.8	%


Total Deposits	$	125,539	$	129,042	$	133,007	$	135,518	$	139,592	$	(3,503)	(2.7)	%	(14,053)		(10.1)	%


	Average Balances
($ amounts in millions)	2Q23		1Q23		4Q22		3Q22		2Q22		2Q23 vs. 1Q23				2Q23 vs. 2Q22
Consumer Bank Segment	$	80,999	$	82,200	$	83,555	$	84,741	$	85,224	$	(1,201)	(1.5)	%	$	(4,225)	(5.0)	%
Corporate Bank Segment	34,860		36,273		38,176		39,058		41,920		(1,413)		(3.9)	%	(7,060)		(16.8)	%
Wealth Management Segment	7,470		8,463		9,065		9,467		10,020		(993)		(11.7)	%	(2,550)		(25.4)	%
Other (1)	2,210		2,106		2,211		2,252		2,428		104		4.9	%	(218)		(9.0)	%
Total Deposits	$	125,539	$	129,042	$	133,007	$	135,518	$	139,592	$	(3,503)	(2.7)	%	$	(14,053)	(10.1)	%


	Average Balances
($ amounts in millions)	2Q23		1Q23		4Q22		3Q22		2Q22		2Q23 vs. 1Q23				2Q23 vs. 2Q22
Wealth Management - Private Wealth	$	6,855	$	7,785	$	8,367	$	8,792	$	9,266	$	(930)	(11.9)	%	$	(2,411)	(26.0)	%
Wealth Management - Institutional Services	615		678		698		675		754		(63)		(9.3)	%	(139)		(18.4)	%
Total Wealth Management Segment Deposits	$	7,470	$	8,463	$	9,065	$	9,467	$	10,020	$	(993)	(11.7)	%	$	(2,550)	(25.4)	%



	Average Balances
	Six Months Ended June 30
($ amounts in millions)	2023		2022		2023 vs. 2022
Interest-free deposits	$	48,378	$	58,516	$	(10,138)	(17.3)	%
Interest-bearing checking	23,833		27,651		(3,818)		(13.8)	%
Savings	15,058		15,871		(813)		(5.1)	%
Money market—domestic	32,042		31,375		667		2.1	%

Low-cost deposits	119,311		133,413		(14,102)		(10.6)	%
Time deposits	7,970		5,752		2,218		38.6	%


Total Deposits	$	127,281	$	139,165	$	(11,884)	(8.5)	%



	Average Balances
	Six Months Ended June 30
($ amounts in millions)	2023		2022		2023 vs. 2022
Consumer Bank Segment	$	81,596	$	84,145	$	(2,549)	(3.0)	%
Corporate Bank Segment	35,563		42,204		(6,641)		(15.7)	%
Wealth Management Segment	7,964		10,270		(2,306)		(22.5)	%
Other (1)	2,158		2,546		(388)		(15.2)	%
Total Deposits	$	127,281	$	139,165	$	(11,884)	(8.5)	%



	Average Balances
	Six Months Ended June 30
($ amounts in millions)	2023		2022		2023 vs. 2022
Wealth Management - Private Wealth	$	7,318	$	9,485	$	(2,167)	(22.8)	%
Wealth Management - Institutional Services	646		785		(139)		(17.7)	%
Total Wealth Management Segment Deposits	$	7,964	$	10,270	$	(2,306)	(22.5)	%

________

NM - Not meaningful.

Regions Financial Corporation and Subsidiaries

Financial Supplement (unaudited) to Second Quarter 2023 Earnings Release

Consolidated Statements of Income


	Quarter Ended
($ amounts in millions, except per share data)	6/30/2023		3/31/2023		12/31/2022		9/30/2022		6/30/2022
Interest income on:
Loans, including fees	$	1,454	$	1,360	$	1,208	$	1,072	$	932
Debt securities	185		187		222		171		157
Loans held for sale	10		7		9		8		10
Other earning assets	90		87		113		92		56
Total interest income	1,739		1,641		1,552		1,343		1,155
Interest expense on:
Deposits	260		179		114		50		20
Short-term borrowings	42		5		—		—		—
Long-term borrowings	56		40		37		31		27
Total interest expense	358		224		151		81		47
Net interest income	1,381		1,417		1,401		1,262		1,108
Provision for credit losses	118		135		112		135		60
Net interest income after provision for credit losses	1,263		1,282		1,289		1,127		1,048
Non-interest income:
Service charges on deposit accounts	152		155		152		156		165
Card and ATM fees	130		121		130		126		133
Wealth management income	110		112		108		108		102
Capital markets income	68		42		61		93		112
Mortgage income	26		24		24		37		47
Securities gains (losses), net	—		(2)		—		(1)		—
Other	90		82		125		86		81
Total non-interest income	576		534		600		605		640
Non-interest expense:
Salaries and employee benefits	603		616		604		593		575
Equipment and software expense	101		102		102		98		97
Net occupancy expense	73		73		74		76		75
Other	334		236		237		403		201
Total non-interest expense	1,111		1,027		1,017		1,170		948
Income before income taxes	728		789		872		562		740
Income tax expense	147		177		187		133		157
Net income	$	581	$	612	$	685	$	429	$	583
Net income available to common shareholders	$	556	$	588	$	660	$	404	$	558
Weighted-average shares outstanding—during quarter:
Basic	939		935		934		934		934
Diluted	939		942		941		940		940
Actual shares outstanding—end of quarter	939		935		934		934		934



Earnings per common share: (1)
Basic	$	0.59	$	0.63	$	0.71	$	0.43	$	0.60
Diluted	$	0.59	$	0.62	$	0.70	$	0.43	$	0.59
Taxable-equivalent net interest income	$	1,393	$	1,430	$	1,414	$	1,274	$	1,119

________

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

Regions Financial Corporation and Subsidiaries

Financial Supplement (unaudited) to Second Quarter 2023 Earnings Release

Consolidated Statements of Income (continued) (unaudited)


	Six Months Ended June 30
($ amounts in millions, except per share data)	2023		2022
Interest income on:
Loans, including fees	$	2,814	$	1,808
Debt securities	372		295
Loans held for sale	17		19
Other earning assets	177		85

Total interest income	3,380		2,207
Interest expense on:
Deposits	439		33
Short-term borrowings	47		—
Long-term borrowings	96		51
Total interest expense	582		84


Net interest income	2,798		2,123
Provision for credit losses	253		24
Net interest income after provision for credit losses	2,545		2,099
Non-interest income:
Service charges on deposit accounts	307		333
Card and ATM fees	251		257
Wealth management income	222		203
Capital markets income	110		185
Mortgage income	50		95
Securities gains (losses), net	(2)		—
Other	172		151
Total non-interest income	1,110		1,224
Non-interest expense:
Salaries and employee benefits	1,219		1,121
Equipment and software expense	203		192
Net occupancy expense	146		150
Other	570		418
Total non-interest expense	2,138		1,881
Income before income taxes	1,517		1,442
Income tax expense	324		311





Net income	$	1,193	$	1,131

Net income available to common shareholders	$	1,144	$	1,082
Weighted-average shares outstanding—during year:
Basic	938		936
Diluted	941		943
Actual shares outstanding—end of period	939		934






Earnings per common share:
Basic	$	1.22	$	1.16
Diluted	$	1.22	$	1.15
Taxable-equivalent net interest income	$	2,823	$	2,145

Regions Financial Corporation and Subsidiaries

Financial Supplement (unaudited) to Second Quarter 2023 Earnings Release

Consolidated Average Daily Balances and Yield/Rate Analysis


	Quarter Ended
	6/30/2023						3/31/2023
($ amounts in millions; yields on taxable-equivalent basis)	Average Balance		Income/ Expense		Yield/ Rate (1)		Average Balance		Income/ Expense		Yield/ Rate (1)
Assets
Earning assets:
Federal funds sold and securities purchased under agreements to resell	$	1	$	—	5.02	%	$	—	$	—	—	%
Debt securities (2)	31,588		185		2.35		32,044		187		2.33
Loans held for sale	539		10		7.11		389		7		7.23
Loans, net of unearned income:
Commercial and industrial (3)	52,039		820		6.29		51,158		763		6.02
Commercial real estate mortgage—owner-occupied (4)	4,905		64		5.13		5,013		61		4.88
Commercial real estate construction—owner-occupied	292		4		5.73		292		4		5.26
Commercial investor real estate mortgage	6,459		110		6.74		6,444		100		6.23
Commercial investor real estate construction	2,023		38		7.55		1,960		35		7.09
Residential first mortgage	19,427		169		3.48		18,957		161		3.40
Home equity	5,785		90		6.22		5,921		88		5.93
Consumer credit card	1,217		46		15.10		1,214		45		14.93
Other consumer—exit portfolios	450		7		6.31		527		8		6.20
Other consumer	5,984		118		7.91		5,791		108		7.56
Total loans, net of unearned income	98,581		1,466		5.94		97,277		1,373		5.68
Interest-bearing deposits in other banks	6,111		79		5.21		6,508		72		4.49
Other earning assets	1,411		11		3.05		1,340		15		4.70
Total earning assets	138,231		1,751		5.06		137,558		1,654		4.84
Unrealized gains/(losses) on debt securities available for sale, net (2)	(3,064)						(3,081)
Allowance for loan losses	(1,497)						(1,427)
Cash and due from banks	2,320						2,360
Other non-earning assets	17,784						17,672
	$	153,774					$	153,082
Liabilities and Shareholders’ Equity
Interest-bearing liabilities:
Savings	$	14,701	5		0.12		$	15,418	4		0.11
Interest-bearing checking	22,979		63		1.09		24,697		54		0.89
Money market	31,567		130		1.66		32,522		91		1.13
Time deposits	9,114		62		2.74		6,813		30		1.80
Total interest-bearing deposits (6)	78,361		260		1.33		79,450		179		0.91
Federal funds purchased and securities sold under agreements to repurchase	17		—		5.23		—		—		—
Short-term borrowings	3,242		42		5.06		400		5		4.92
Long-term borrowings	3,517		56		6.42		2,286		40		6.91
Total interest-bearing liabilities	85,137		358		1.69		82,136		224		1.10
Non-interest-bearing deposits (5)	47,178		—		—		49,592		—		—
Total funding sources	132,315		358		1.08		131,728		224		0.69
Net interest spread (2)					3.37						3.73
Other liabilities	4,548						4,891
Shareholders’ equity	16,892						16,457
Noncontrolling interest	19						6
	$	153,774					$	153,082
Net interest income/margin FTE basis (2)			$	1,393	4.04	%			$	1,430	4.22	%

_______

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

(2) Debt securities are included on an amortized cost basis with yield and net interest margin calculated accordingly.

(3) Interest income includes hedging expense of $29 million for the quarter ended June 30, 2023 and $13 million for the quarter ended March 31, 2023.

(4) Interest income includes hedging expense of $3 million for the quarter ended June 30, 2023 and $2 million for the quarter ended March 31, 2023.

(5) Total deposit costs may be calculated by dividing total interest expense on deposits by the sum of interest-bearing deposits and non-interest bearing deposits. The rates for total deposit costs equal 0.83% for the quarter ended June 30, 2023 and 0.56% for the quarter ended March 31, 2023.

Regions Financial Corporation and Subsidiaries

Financial Supplement (unaudited) to Second Quarter 2023 Earnings Release

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


	Quarter Ended
	12/31/2022						9/30/2022						6/30/2022
($ amounts in millions; yields on taxable-equivalent basis)	Average Balance		Income/ Expense		Yield/ Rate (1)		Average Balance		Income/ Expense		Yield/ Rate (1)		Average Balance		Income/ Expense		Yield/ Rate (1)
Assets
Earning assets:
Federal funds sold and securities purchased under agreements to resell	$	1	$	—	3.56	%	$	1	$	—	2.43	%	$	—	$	—	—	%
Debt securities (2)(3)	32,213		222		2.75		32,101		171		2.12		31,429		157		2.00
Loans held for sale	537		9		6.53		539		8		6.09		704		10		5.39
Loans, net of unearned income:
Commercial and industrial (4)	50,135		647		5.10		49,120		549		4.42		46,538		480		4.12
Commercial real estate mortgage—owner-occupied (5)	5,073		55		4.27		5,167		56		4.20		5,204		56		4.31
Commercial real estate construction—owner-occupied	289		4		4.96		274		3		4.53		273		2		3.85
Commercial investor real estate mortgage	6,406		89		5.43		6,115		64		4.06		5,760		39		2.69
Commercial investor real estate construction	1,884		30		6.24		1,764		22		4.77		1,668		14		3.34
Residential first mortgage	18,595		155		3.33		18,125		147		3.24		17,569		137		3.12
Home equity	6,017		81		5.31		6,050		68		4.49		6,082		56		3.76


Consumer credit card	1,207		44		14.34		1,176		40		13.79		1,145		36		12.38
Other consumer—exit portfolios	613		9		6.07		716		10		5.72		836		13		5.93
Other consumer	5,533		107		7.77		6,177		125		8.03		5,689		110		7.73
Total loans, net of unearned income	95,752		1,221		5.05		94,684		1,084		4.53		90,764		943		4.15
Interest-bearing deposits in other banks	10,600		100		3.74		14,353		81		2.25		22,246		45		0.81
Other earning assets	1,380		13		3.76		1,379		11		3.34		1,445		11		2.79
Total earning assets	140,483		1,565		4.42		143,057		1,355		3.76		146,588		1,166		3.18
Unrealized gains/(losses) on debt securities available for sale, net (2)	(3,582)						(2,389)						(2,107)
Allowance for loan losses	(1,447)						(1,432)						(1,419)
Cash and due from banks	2,406						2,291						2,386
Other non-earning assets	17,808						16,895						16,378
	$	155,668					$	158,422					$	161,826
Liabilities and Shareholders’ Equity
Interest-bearing liabilities:
Savings	$	15,840	4		0.10		$	16,176	5		0.11		$	16,200	5		0.12
Interest-bearing checking	25,379		42		0.65		26,665		22		0.33		27,533		6		0.09
Money market	33,219		57		0.69		31,520		17		0.22		31,348		4		0.05
Time deposits	5,462		11		0.80		5,351		6		0.45		5,600		5		0.34
Total interest-bearing deposits (6)	79,900		114		0.57		79,712		50		0.25		80,681		20		0.10
Federal funds purchased and securities sold under agreements to repurchase	39		—		3.73		—		—		—		—		—		—
Short-term borrowings	—		—		—		30		—		0.23		7		—		1.01
Long-term borrowings	2,275		37		6.38		2,319		31		5.39		2,328		27		4.53
Total interest-bearing liabilities	82,214		151		0.73		82,061		81		0.39		83,016		47		0.22
Non-interest-bearing deposits (6)	53,107		—		—		55,806		—		—		58,911		—		—
Total funding sources	135,321		151		0.44		137,867		81		0.23		141,927		47		0.13
Net interest spread (2)					3.69						3.36						2.95
Other liabilities	4,904						4,082						3,495
Shareholders’ equity	15,442						16,473						16,404
Noncontrolling interest	1						—						—
	$	155,668					$	158,422					$	161,826
Net interest income/margin FTE basis (2)			$	1,414	3.99	%			$	1,274	3.53	%			$	1,119	3.06	%

_______

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

(2) Debt securities are included on an amortized cost basis with yield and net interest margin calculated accordingly.

(3) Interest income includes hedging income of $40 million for the quarter ended December 31, 2022 and none for the quarters ended September 30, 2022 and June 30, 2022. Hedging income for the quarter ended December 31, 2022 reflects strategies designed to accelerate hedge notional maturities through the use of pay-fixed swaps. Benefits migrated from securities to loans in the first quarter of 2023.

(4) Interest income includes hedging expense of $43 million for the quarter ended December 31, 2022, none for the quarter ended September 30, 2022, and hedge income of $69 million for the quarter ended June 30, 2022.

(5) Interest income includes hedging expense of $5 million for the quarter ended December 31, 2022, none for the quarter ended September 30, 2022, and hedging income of $9 million for the quarter ended June 30, 2022.

(6) Total deposit costs may be calculated by dividing total interest expense on deposits by the sum of interest-bearing deposits and non-interest bearing deposits. The rates for total deposit costs equal 0.34% for the quarter ended December 31, 2022, 0.15% for the quarter ended September 30, 2022 and 0.06% for the quarter ended June 30, 2022.

Regions Financial Corporation and Subsidiaries

Financial Supplement (unaudited) to Second Quarter 2023 Earnings Release

Pre-Tax Pre-Provision Income ("PPI") and Adjusted PPI (non-GAAP)

The Pre-Tax Pre-Provision Income tables below present computations of pre-tax pre-provision income excluding certain adjustments (non-GAAP). Regions believes that the presentation of PPI and the exclusion of certain items from PPI provides a meaningful base for period-to-period comparisons, which management believes will assist investors in analyzing the operating results of the Company and predicting future performance. These non-GAAP financial measures are also used by management to assess the performance of Regions’ business. It is possible that the activities related to the adjustments may recur; however, management does not consider the activities related to the adjustments to be indications of ongoing operations.


	Quarter Ended
($ amounts in millions)	6/30/2023		3/31/2023		12/31/2022		9/30/2022		6/30/2022		2Q23 vs. 1Q23				2Q23 vs. 2Q22
Net income available to common shareholders (GAAP)	$	556	$	588	$	660	$	404	$	558	$	(32)	(5.4)	%	$	(2)	(0.4)	%
Preferred dividends (GAAP)	25		24		25		25		25		1		4.2	%	—		NM
Income tax expense (GAAP)	147		177		187		133		157		(30)		(16.9)	%	(10)		(6.4)	%
Income before income taxes (GAAP)	728		789		872		562		740		(61)		(7.7)	%	(12)		(1.6)	%
Provision for credit losses (GAAP)	118		135		112		135		60		(17)		(12.6)	%	58		96.7	%
Pre-tax pre-provision income (non-GAAP)	846		924		984		697		800		(78)		(8.4)	%	46		5.8	%
Other adjustments:
Securities (gains) losses, net	—		2		—		1		—		(2)		(100.0)	%	—		NM
Leveraged lease termination gains, net	—		(1)		—		—		—		1		100.0	%	—		NM

Insurance proceeds (1)	—		—		(50)		—		—		—		NM		—		NM

Branch consolidation, property and equipment charges	1		2		5		3		(6)		(1)		(50.0)	%	7		116.7	%




Professional, legal and regulatory expenses (1)	—		—		—		179		—		—		NM		—		NM
Total other adjustments	1		3		(45)		183		(6)		(2)		(66.7)	%	7		116.7	%
Adjusted pre-tax pre-provision income (non-GAAP)	$	847	$	927	$	939	$	880	$	794	$	(80)	(8.6)	%	$	53	6.7	%

______

NM - Not meaningful

(1) In the third quarter of 2022, the Company settled a previously disclosed matter with the Consumer Financial Protection Bureau. The Company received an insurance reimbursement

related to the settlement in the fourth quarter of 2022.

Regions Financial Corporation and Subsidiaries

Financial Supplement (unaudited) to Second Quarter 2023 Earnings Release

Non-Interest Income


	Quarter Ended
($ amounts in millions)	6/30/2023		3/31/2023		12/31/2022		9/30/2022		6/30/2022		2Q23 vs. 1Q23				2Q23 vs. 2Q22
Service charges on deposit accounts	$	152	$	155	$	152	$	156	$	165	$	(3)	(1.9)	%	$	(13)	(7.9)	%
Card and ATM fees	130		121		130		126		133		9		7.4	%	(3)		(2.3)	%
Wealth management income	110		112		108		108		102		(2)		(1.8)	%	8		7.8	%
Capital markets income (1)	68		42		61		93		112		26		61.9	%	(44)		(39.3)	%
Mortgage income	26		24		24		37		47		2		8.3	%	(21)		(44.7)	%
Commercial credit fee income	28		26		25		26		23		2		7.7	%	5		21.7	%
Bank-owned life insurance	19		17		17		15		16		2		11.8	%	3		18.8	%
Market value adjustments on employee benefit assets-other (2)	—		(1)		(9)		(5)		(17)		1		100.0	%	17		100.0	%

Securities gains (losses), net	—		(2)		—		(1)		—		2		100.0	%	—		NM
Insurance proceeds (3)	—		—		50		—		—		—		NM		—		NM
Other miscellaneous income	43		40		42		50		59		3		7.5	%	(16)		(27.1)	%
Total non-interest income	$	576	$	534	$	600	$	605	$	640	$	42	7.9	%	$	(64)	(10.0)	%

Mortgage Income


	Quarter Ended
($ amounts in millions)	6/30/2023			3/31/2023			12/31/2022			9/30/2022			6/30/2022			2Q23 vs. 1Q23				2Q23 vs. 2Q22
Production and sales	$	18		$	13		$	11		$	18		$	23		$	5	38.5	%	$	(5)	(21.7)	%
Loan servicing	39			38			42			40			28			1		2.6	%	11		39.3	%
MSR and related hedge impact:
MSRs fair value increase (decrease) due to change in valuation inputs or assumptions	8			(12)			—			28			52			20		166.7	%	(44)		(84.6)	%
MSRs hedge gain (loss)	(12)			9			(6)			(26)			(41)			(21)		(233.3)	%	29		70.7	%
MSRs change due to payment decay	(27)			(24)			(23)			(23)			(15)			(3)		(12.5)	%	(12)		(80.0)	%
MSR and related hedge impact	(31)			(27)			(29)			(21)			(4)			(4)		(14.8)	%	(27)		NM
Total mortgage income	$	26		$	24		$	24		$	37		$	47		$	2	8.3	%	$	(21)	(44.7)	%

Mortgage production - portfolio	$	970		$	580		$	712		$	997		$	1,277		$	390	67.2	%	$	(307)	(24.0)	%
Mortgage production - agency/secondary market	450			302			314			526			680			148		49.0	%	(230)		(33.8)	%
Total mortgage production	$	1,420		$	882		$	1,026		$	1,523		$	1,957		$	538	61.0	%	$	(537)	(27.4)	%

Mortgage production - purchased	91.3		%	88.3		%	87.9		%	88.1		%	82.9		%
Mortgage production - refinanced	8.7		%	11.7		%	12.1		%	11.9		%	17.1		%

Wealth Management Income


	Quarter Ended
($ amounts in millions)	6/30/2023		3/31/2023		12/31/2022		9/30/2022		6/30/2022		2Q23 vs. 1Q23				2Q23 vs. 2Q22
Investment management and trust fee income	$	77	$	76	$	76	$	74	$	72	$	1	1.3	%	$	5	6.9	%
Investment services fee income	33		36		32		34		30		(3)		(8.3)	%	3		10.0	%
Total wealth management income (4)	$	110	$	112	$	108	$	108	$	102	$	(2)	(1.8)	%	$	8	7.8	%

Capital Markets Income


	Quarter Ended
($ amounts in millions)	6/30/2023		3/31/2023		12/31/2022		9/30/2022		6/30/2022		2Q23 vs. 1Q23				2Q23 vs. 2Q22
Capital markets income	$	68	$	42	$	61	$	93	$	112	$	26	61.9	%	$	(44)	(39.3)	%
Less: Valuation adjustments on customer derivatives (5)	(9)		(33)		(11)		21		20		24		72.7	%	(29)		(145.0)	%
Capital markets income excluding valuation adjustments	$	77	$	75	$	72	$	72	$	92	$	2	2.7	%	$	(15)	(16.3)	%

_________

NM - Not Meaningful

(1)Capital markets income primarily relates to capital raising activities that includes debt securities underwriting and placement, loan syndication and placement, as well as foreign exchange, derivative and merger and acquisition advisory services.

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

(3)In the third quarter of 2022, the Company settled a previously disclosed matter with the Consumer Financial Protection Bureau. The Company received an insurance reimbursement related to the settlement in the fourth quarter of 2022.

(4)Total wealth management income presented above does not include the portion of service charges on deposit accounts and similar smaller dollar amounts that are also attributable to the wealth management segment.

(5)For the purposes of determining the fair value of customer derivatives, the Company considers the risk of nonperformance by counterparties, as well as the Company's own risk of nonperformance. The valuation adjustments above are reflective of the values associated with these considerations.

Regions Financial Corporation and Subsidiaries

Financial Supplement (unaudited) to Second Quarter 2023 Earnings Release

Non-Interest Income


($ amounts in millions)	Six Months Ended				Year-to-Date Change 6/30/2023 vs. 6/30/2022
	6/30/2023		6/30/2022		Amount		Percent
Service charges on deposit accounts	$	307	$	333	$	(26)	(7.8)	%
Card and ATM fees	251		257		(6)		(2.3)	%
Wealth management income	222		203		19		9.4	%
Capital markets income (1)	110		185		(75)		(40.5)	%
Mortgage income	50		95		(45)		(47.4)	%
Commercial credit fee income	54		45		9		20.0	%
Bank-owned life insurance	36		30		6		20.0	%
Market value adjustments on employee benefit assets - other (2)	(1)		(31)		30		96.8	%
Securities gains (losses), net	(2)		—		(2)		NM

Other miscellaneous income	83		107		(24)		(22.4)	%
Total non-interest income	$	1,110	$	1,224	$	(114)	(9.3)	%

Mortgage Income


	Six Months Ended						Year-to-Date Change 6/30/2023 vs. 6/30/2022
($ amounts in millions)	6/30/2023			6/30/2022			Amount		Percent
Production and sales	$	31		$	66		$	(35)	(53.0)	%
Loan servicing	77			55			22		40.0	%
MSR and related hedge impact:
MSRs fair value increase (decrease) due to change in valuation inputs or assumptions	(4)			99			(103)		(104.0)	%
MSRs hedge gain (loss)	(3)			(93)			90		96.8	%
MSRs change due to payment decay	(51)			(32)			(19)		(59.4)	%
MSR and related hedge impact	(58)			(26)			(32)		(123.1)	%
Total mortgage income	$	50		$	95		$	(45)	(47.4)	%

Mortgage production - portfolio	$	1,550		$	2,298		$	(748)	(32.6)	%
Mortgage production - agency/secondary market	752			1,499			(747)		(49.8)	%
Total mortgage production	$	2,302		$	3,797		$	(1,495)	(39.4)	%

Mortgage production - purchased	90.1		%	74.6		%
Mortgage production - refinanced	9.9		%	25.4		%

Wealth Management Income


	Six Months Ended				Year-to-Date Change 6/30/2023 vs. 6/30/2022
($ amounts in millions)	6/30/2023		6/30/2022		Amount		Percent
Investment management and trust fee income	$	153	$	147	$	6	4.1	%
Investment services fee income	69		56		13		23.2	%
Total wealth management income (3)	$	222	$	203	$	19	9.4	%

Capital Markets Income


	Six Months Ended				Year-to-Date Change 6/30/2023 vs. 6/30/2022
($ amounts in millions)	6/30/2023		6/30/2022		Amount		Percent
Capital markets income	$	110	$	185	$	(75)	(40.5)	%
Less: Valuation adjustments on customer derivatives (4)	(42)		26		(68)		(261.5)	%
Capital markets income excluding valuation adjustments	$	152	$	159	$	(7)	(4.4)	%

_________

NM - Not Meaningful

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

(3)Total wealth management income presented above does not include the portion of service charges on deposit accounts and similar smaller dollar amounts that are also attributable to the wealth management segment.

(4)For the purposes of determining the fair value of customer derivatives, the Company considers the risk of nonperformance by counterparties, as well as the Company's own risk of nonperformance. The valuation adjustments above are reflective of the values associated with these considerations.

Regions Financial Corporation and Subsidiaries

Financial Supplement (unaudited) to Second Quarter 2023 Earnings Release

Non-Interest Expense


	Quarter Ended
($ amounts in millions)	6/30/2023		3/31/2023		12/31/2022		9/30/2022		6/30/2022		2Q23 vs. 1Q23				2Q23 vs. 2Q22
Salaries and employee benefits	$	603	$	616	$	604	$	593	$	575	$	(13)	(2.1)	%	$	28	4.9	%
Equipment and software expense	101		102		102		98		97		(1)		(1.0)	%	4		4.1	%
Net occupancy expense	73		73		74		76		75		—		—	%	(2)		(2.7)	%
Outside services	42		39		41		40		38		3		7.7	%	4		10.5	%
Marketing	26		27		27		29		22		(1)		(3.7)	%	4		18.2	%
Professional, legal and regulatory expenses	20		19		23		199		24		1		5.3	%	(4)		(16.7)	%
Credit/checkcard expenses	15		14		14		13		13		1		7.1	%	2		15.4	%
FDIC insurance assessments	29		25		18		16		13		4		16.0	%	16		123.1	%
Visa class B shares expense	9		8		7		3		9		1		12.5	%	—		—	%

Operational losses	95		13		18		13		13		82		NM		82		NM
Branch consolidation, property and equipment charges	1		2		5		3		(6)		(1)		(50.0)	%	7		116.7	%
Other miscellaneous expenses	97		89		84		87		75		8		9.0	%	22		29.3	%
Total non-interest expense	$	1,111	$	1,027	$	1,017	$	1,170	$	948	$	84	8.2	%	$	163	17.2	%



	Six Months Ended				Year-to-Date Change 6/30/2023 vs. 6/30/2022
($ amounts in millions)	6/30/2023		6/30/2022		Amount		Percent
Salaries and employee benefits	$	1,219	$	1,121	$	98	8.7	%
Equipment and software expense	203		192		11		5.7	%
Net occupancy expense	146		150		(4)		(2.7)	%
Outside services	81		76		5		6.6	%
Marketing	53		46		7		15.2	%
Professional, legal and regulatory expenses	39		41		(2)		(4.9)	%
Credit/checkcard expenses	29		39		(10)		(25.6)	%
FDIC insurance assessments	54		27		27		100.0	%
Visa class B shares expense	17		14		3		21.4	%

Operational losses	108		25		83		332.0	%
Branch consolidation, property and equipment charges	3		(5)		8		160.0	%
Other miscellaneous expenses	186		155		31		20.0	%
Total non-interest expense	$	2,138	$	1,881	$	257	13.7	%

_________

NM - Not Meaningful

Regions Financial Corporation and Subsidiaries

Financial Supplement (unaudited) to Second Quarter 2023 Earnings Release

Reconciliation of GAAP Financial Measures to non-GAAP Financial Measures

Adjusted Efficiency Ratios, Adjusted Fee Income Ratios, Adjusted Non-Interest Income/Expense, Adjusted Operating Leverage Ratios, and Adjusted Total Revenue

The tables below presents computations of the efficiency ratio, which is a measure of productivity, generally calculated as non-interest expense divided by total revenue; and the fee income ratio, generally calculated as non-interest income divided by total revenue. Management uses these ratios to monitor performance and believes these measures provide meaningful information to investors. Non-interest expense (GAAP) is presented excluding certain adjustments to arrive at adjusted non-interest expense (non-GAAP), which is the numerator for the adjusted efficiency ratio. Non-interest income (GAAP) is presented excluding certain adjustments to arrive at adjusted non-interest income (non-GAAP), which is the numerator for the adjusted fee income ratio. Net interest income and non-interest income are added together to arrive at total revenue. Adjustments are made to arrive at adjusted total revenue (non-GAAP). Net interest income on a taxable-equivalent basis and non-interest income are added together to arrive at total revenue on a taxable-equivalent basis. Adjustments are made to arrive at adjusted total revenue on a taxable-equivalent basis (non-GAAP), which is the denominator for the adjusted fee income and adjusted efficiency ratios. Also presented is a computation of the adjusted operating leverage ratio (non-GAAP) which is the period to period percentage change in adjusted total revenue on a taxable-equivalent basis (non-GAAP) less the percentage change in adjusted non-interest expense (non-GAAP).


		Quarter Ended
($ amounts in millions)		6/30/2023			3/31/2023			12/31/2022			9/30/2022			6/30/2022			2Q23 vs. 1Q23				2Q23 vs. 2Q22
Non-interest expense (GAAP)	A	$	1,111		$	1,027		$	1,017		$	1,170		$	948		$	84	8.2	%	$	163	17.2	%
Adjustments:

Branch consolidation, property and equipment charges		(1)			(2)			(5)			(3)			6			1		50.0	%	(7)		(116.7)	%



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


Adjusted non-interest expense (non-GAAP)	B	$	1,110		$	1,025		$	1,012		$	988		$	954		$	85	8.3	%	$	156	16.4	%



Net interest income (GAAP)	C	$	1,381		$	1,417		$	1,401		$	1,262		$	1,108		$	(36)	(2.5)	%	$	273	24.6	%
Taxable-equivalent adjustment		12			13			13			12			11			(1)		(7.7)	%	1		9.1	%
Net interest income, taxable-equivalent basis	D	$	1,393		$	1,430		$	1,414		$	1,274		$	1,119		$	(37)	(2.6)	%	$	274	24.5	%





Non-interest income (GAAP)	E	$	576		$	534		$	600		$	605		$	640		$	42	7.9	%	$	(64)	(10.0)	%
Adjustments:
Securities (gains) losses, net		—			2			—			1			—			(2)		(100.0)	%	—		NM
Leveraged lease termination gains		—			(1)			—			—			—			1		100.0	%	—		NM

Insurance proceeds (1)		—			—			(50)			—			—			—		NM		—		NM
Adjusted non-interest income (non-GAAP)	F	$	576		$	535		$	550		$	606		$	640		$	41	7.7	%	$	(64)	(10.0)	%
Total revenue	C+E=G	$	1,957		$	1,951		$	2,001		$	1,867		$	1,748		$	6	0.3	%	$	209	12.0	%
Adjusted total revenue (non-GAAP)	C+F=H	$	1,957		$	1,952		$	1,951		$	1,868		$	1,748		$	5	0.3	%	$	209	12.0	%
Total revenue, taxable-equivalent basis	D+E=I	$	1,969		$	1,964		$	2,014		$	1,879		$	1,759		$	5	0.3	%	$	210	11.9	%
Adjusted total revenue, taxable-equivalent basis (non-GAAP)	D+F=J	$	1,969		$	1,965		$	1,964		$	1,880		$	1,759		$	4	0.2	%	$	210	11.9	%


Efficiency ratio (GAAP) (2)	A/I	56.4		%	52.3		%	50.5		%	62.3		%	53.9		%
Adjusted efficiency ratio (non-GAAP) (2)	B/J	56.4		%	52.2		%	51.6		%	52.6		%	54.2		%
Fee income ratio (GAAP) (2)	E/I	29.3		%	27.2		%	29.8		%	32.2		%	36.4		%
Adjusted fee income ratio (non-GAAP) (2)	F/J	29.3		%	27.2		%	28.0		%	32.2		%	36.4		%

________

NM - Not Meaningful

(1)In the third quarter of 2022, the Company settled a previously disclosed matter with the Consumer Financial Protection Bureau. The Company received an insurance reimbursement related to the settlement in the fourth quarter of 2022.

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

Regions Financial Corporation and Subsidiaries

Financial Supplement (unaudited) to Second Quarter 2023 Earnings Release

Reconciliation of GAAP Financial Measures to non-GAAP Financial Measures

Adjusted Efficiency Ratios, Adjusted Fee Income Ratios, Adjusted Non-Interest Income/Expense, Adjusted Operating Leverage Ratios, and Adjusted Total Revenue (continued)




		Six Months Ended June 30
($ amounts in millions)		2023			2022			2023 vs. 2022
Non-interest expense (GAAP)	A	$	2,138		$	1,881		$	257	13.7	%
Adjustments:

Branch consolidation, property and equipment charges		(3)			5			(8)		(160.0)	%





Adjusted non-interest expense (non-GAAP)	B	$	2,135		$	1,886		$	249	13.2	%



Net interest income (GAAP)	C	$	2,798		$	2,123		$	675	31.8	%
Taxable-equivalent adjustment		25			22			3		13.6	%
Net interest income, taxable-equivalent basis	D	$	2,823		$	2,145		$	678	31.6	%




Non-interest income (GAAP)	E	$	1,110		$	1,224		$	(114)	(9.3)	%
Adjustments:
Securities (gains) losses, net		2			—			2		NM

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



Adjusted non-interest income (non-GAAP)	F	$	1,111		$	1,223		$	(112)	(9.2)	%
Total revenue	C+E= G	$	3,908		$	3,347		$	561	16.8	%
Adjusted total revenue (non-GAAP)	C+F=H	$	3,909		$	3,346		$	563	16.8	%
Total revenue, taxable-equivalent basis	D+E=I	$	3,933		$	3,369		$	564	16.7	%
Adjusted total revenue, taxable-equivalent basis (non-GAAP)	D+F=J	$	3,934		$	3,368		$	566	16.8	%
Operating leverage ratio (GAAP) (1)	I-A									3.1	%
Adjusted operating leverage ratio (non-GAAP) (1)	J-B									3.6	%
Efficiency ratio (GAAP) (1)	A/I	54.4		%	55.9		%
Adjusted efficiency ratio (non-GAAP) (1)	B/J	54.3		%	56.0		%
Fee income ratio (GAAP) (1)	E/I	28.2		%	36.3		%
Adjusted fee income ratio (non-GAAP) (1)	F/J	28.2		%	36.3		%

______

NM - Not Meaningful

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

Regions Financial Corporation and Subsidiaries

Financial Supplement (unaudited) to Second Quarter 2023 Earnings Release

Reconciliation of GAAP Financial Measures to non-GAAP Financial Measures

Return Ratios

The table below provides a calculation of “return on average tangible common shareholders’ equity” (non-GAAP). Tangible common shareholders’ equity ratios have become a focus of some investors and management believes they may assist investors in analyzing the capital position of the Company absent the effects of intangible assets and preferred stock. Analysts and banking regulators have assessed Regions’ capital adequacy using the tangible common shareholders’ equity measure. Because tangible common shareholders’ equity is not formally defined by GAAP or prescribed in any amount by federal banking regulations it is currently considered to be a non-GAAP financial measure and other entities may calculate it differently than Regions’ disclosed calculations. In calculating return on average tangible common shareholders' equity Regions makes adjustments to shareholders' equity including average intangible assets and related deferred taxes, average preferred stock and average accumulated other comprehensive income (AOCI). Since analysts and banking regulators may assess Regions’ capital adequacy using tangible common shareholders’ equity, management believes that it is useful to provide investors the ability to assess Regions’ capital adequacy on this same basis.


		Quarter Ended
($ amounts in millions)		6/30/2023			3/31/2023			12/31/2022			9/30/2022			6/30/2022
RETURN ON AVERAGE TANGIBLE COMMON SHAREHOLDERS' EQUITY*
Net income available to common shareholders (GAAP)	A	$	556		$	588		$	660		$	404		$	558
Average shareholders' equity (GAAP)		$	16,892		$	16,457		$	15,442		$	16,473		$	16,404
Less:
Average intangible assets (GAAP)		5,966			5,977			5,996			6,019			6,034
Average deferred tax liability related to intangibles (GAAP)		(104)			(103)			(105)			(104)			(101)
Average preferred stock (GAAP)		1,659			1,659			1,659			1,659			1,659
Average tangible common shareholders' equity (non-GAAP)	B	$	9,371		$	8,924		$	7,892		$	8,899		$	8,812
Less: Average AOCI, after tax		(2,936)			(3,081)			(3,535)			(2,213)			(1,921)
Average tangible common shareholders' equity excluding AOCI (non-GAAP)	C	$	12,307		$	12,005		$	11,427		$	11,112		$	10,733
Return on average tangible common shareholders' equity (non-GAAP) (1)	A/B	23.82		%	26.70		%	33.20		%	18.02		%	25.40		%
Return on average tangible common shareholders' equity excluding AOCI (non-GAAP) (1)	A/C	18.14		%	19.85		%	22.91		%	14.42		%	20.85		%

____

*Annualized

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

Tangible Common Ratios

The following table provides a reconciliation of shareholders’ equity (GAAP) to tangible common shareholders’ equity (non-GAAP) and the calculations of the end of period “tangible common shareholders’ equity to tangible assets” and "tangible common book value per share" ratios (non-GAAP). Since analysts and banking regulators may assess Regions’ capital adequacy using tangible common shareholders' equity, management believes that it is useful to provide investors the ability to assess Regions’ capital adequacy on this same basis.


		As of and for Quarter Ended
($ amounts in millions, except per share data)		6/30/2023			3/31/2023			12/31/2022			9/30/2022			6/30/2022
TANGIBLE COMMON RATIOS
Shareholders’ equity (GAAP)	A	$	16,639		$	16,883		$	15,947		$	15,173		$	16,507
Less:
Preferred stock (GAAP)		1,659			1,659			1,659			1,659			1,659
Intangible assets (GAAP)		5,959			5,971			5,982			6,005			6,028
Deferred tax liability related to intangibles (GAAP)		(106)			(104)			(103)			(105)			(104)
Tangible common shareholders’ equity (non-GAAP)	B	$	9,127		$	9,357		$	8,409		$	7,614		$	8,924
Total assets (GAAP)	C	$	155,656		$	154,135		$	155,220		$	157,798		$	160,908
Less:
Intangible assets (GAAP)		5,959			5,971			5,982			6,005			6,028
Deferred tax liability related to intangibles (GAAP)		(106)			(104)			(103)			(105)			(104)
Tangible assets (non-GAAP)	D	$	149,803		$	148,268		$	149,341		$	151,898		$	154,984
Shares outstanding—end of quarter	E	939			935			934			934			934
Total equity to total assets (GAAP) (1)	A/C	10.69		%	10.95		%	10.27		%	9.62		%	10.26		%
Tangible common shareholders’ equity to tangible assets (non-GAAP) (1)	B/D	6.09		%	6.31		%	5.63		%	5.01		%	5.76		%
Tangible common book value per share (non-GAAP) (1)	B/E	$	9.72		$	10.01		$	9.00		$	8.15		$	9.55

____

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

Regions Financial Corporation and Subsidiaries

Financial Supplement (unaudited) to Second Quarter 2023 Earnings Release

Credit Quality


	As of and for Quarter Ended
($ amounts in millions)	6/30/2023		3/31/2023		12/31/2022		9/30/2022		6/30/2022
Components:
Beginning allowance for loan losses (ALL)	$	1,472	$	1,464	$	1,418	$	1,425	$	1,416
Cumulative change in accounting guidance (1)	—		(38)		—		—		—
Beginning allowance for loan losses (ALL), as adjusted for change in accounting guidance	$	1,472	$	1,426	$	1,418	$	1,425	$	1,416

Loans charged-off:
Commercial and industrial	52		49		38		20		21
Commercial real estate mortgage—owner-occupied	—		—		1		—		1

Total commercial	52		49		39		20		22
Commercial investor real estate mortgage	—		—		5		—		—

Total investor real estate	—		—		5		—		—
Residential first mortgage	1		—		—		1		—
Home equity—lines of credit	1		1		1		2		1
Home equity—closed-end	—		—		—		—		—
Consumer credit card	12		12		11		9		10
Other consumer—exit portfolios	3		5		4		4		4
Other consumer (2)	43		38		33		99		33
Total consumer	60		56		49		115		48
Total	112		105		93		135		70

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

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

Total investor real estate	—		—		1		—		1
Residential first mortgage	1		—		1		1		1
Home equity—lines of credit	2		3		3		2		4
Home equity—closed-end	—		—		—		—		1
Consumer credit card	1		2		2		2		2
Other consumer—exit portfolios	1		1		1		—		2
Other consumer	5		6		5		7		8
Total consumer	10		12		12		12		18
Total	31		22		24		25		32

Net charge-offs (recoveries):
Commercial and industrial	31		39		28		8		9
Commercial real estate mortgage—owner-occupied	—		—		—		(1)		—

Total commercial	31		39		28		7		9
Commercial investor real estate mortgage	—		—		4		—		(1)

Total investor real estate	—		—		4		—		(1)
Residential first mortgage	—		—		(1)		—		(1)
Home equity—lines of credit	(1)		(2)		(2)		—		(3)
Home equity—closed-end	—		—		—		—		(1)
Consumer credit card	11		10		9		7		8
Other consumer—exit portfolios	2		4		3		4		2
Other consumer	38		32		28		92		25
Total consumer	50		44		37		103		30
Total	81		83		69		110		38

Provision for loan losses (2)	122		129		115		103		47

Ending allowance for loan losses (ALL)	1,513		1,472		1,464		1,418		1,425
Beginning reserve for unfunded credit commitments	124		118		121		89		76
Provision for (benefit from) unfunded credit losses	(4)		6		(3)		32		13
Ending reserve for unfunded commitments	120		124		118		121		89
Allowance for credit losses (ACL) at period end	$	1,633	$	1,596	$	1,582	$	1,539	$	1,514

Regions Financial Corporation and Subsidiaries

Financial Supplement (unaudited) to Second Quarter 2023 Earnings Release


Credit Quality (continued)

	As of and for Quarter Ended
($ amounts in millions)	6/30/2023			3/31/2023			12/31/2022			9/30/2022			6/30/2022
Net loan charge-offs as a % of average loans, annualized (3):
Commercial and industrial	0.24		%	0.31		%	0.22		%	0.07		%	0.07		%
Commercial real estate mortgage—owner-occupied	0.01		%	(0.02)		%	(0.02)		%	(0.06)		%	0.05		%
Commercial real estate construction—owner-occupied	(0.27)		%	(0.05)		%	(0.02)		%	(0.08)		%	(0.01)		%
Total commercial	0.22		%	0.28		%	0.19		%	0.06		%	0.07		%
Commercial investor real estate mortgage	—		%	—		%	0.27		%	(0.01)		%	(0.04)		%
Commercial investor real estate construction	(0.04)		%	—		%	(0.01)		%	—		%	(0.01)		%
Total investor real estate	(0.01)		%	—		%	0.21		%	(0.01)		%	(0.03)		%
Residential first mortgage	—		%	—		%	(0.03)		%	(0.01)		%	(0.01)		%
Home equity—lines of credit	(0.08)		%	(0.22)		%	(0.22)		%	(0.08)		%	(0.31)		%
Home equity—closed-end	—		%	(0.03)		%	(0.02)		%	(0.09)		%	(0.04)		%
Consumer credit card	3.38		%	3.47		%	2.94		%	2.39		%	2.70		%
Other consumer—exit portfolios	2.56		%	2.69		%	2.46		%	2.13		%	0.80		%
Other consumer (2)	2.55		%	2.26		%	2.08		%	5.92		%	1.72		%
Total consumer	0.62		%	0.55		%	0.48		%	1.25		%	0.39		%
Total	0.33		%	0.35		%	0.29		%	0.46		%	0.17		%
Non-performing loans, excluding loans held for sale	$	492		$	554		$	500		$	495		$	369
Non-performing loans held for sale	1			1			3			2			3
Non-performing loans, including loans held for sale	493			555			503			497			372
Foreclosed properties	15			15			13			14			11

Non-performing assets (NPAs)	$	508		$	570		$	516		$	511		$	383
Loans past due > 90 days (4)	$	131		$	128		$	208		$	105		$	107


Criticized loans—business (5)	$	4,039		$	3,725		$	3,149		$	2,771		$	2,310
Credit Ratios (3):
ACL/Loans, net	1.65		%	1.63		%	1.63		%	1.63		%	1.62		%
ALL/Loans, net	1.53		%	1.50		%	1.51		%	1.50		%	1.52		%
Allowance for credit losses to non-performing loans, excluding loans held for sale	332		%	288		%	317		%	311		%	410		%
Allowance for loan losses to non-performing loans, excluding loans held for sale	308		%	266		%	293		%	287		%	386		%
Non-performing loans, excluding loans held for sale/Loans, net	0.50		%	0.56		%	0.52		%	0.52		%	0.39		%
NPAs (ex. 90+ past due)/Loans, foreclosed properties, and non-performing loans held for sale	0.51		%	0.58		%	0.53		%	0.54		%	0.41		%
NPAs (inc. 90+ past due)/Loans, foreclosed properties, and non-performing loans held for sale (4)	0.64		%	0.71		%	0.75		%	0.65		%	0.52		%

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

(2)At the end of the third quarter of 2022, the Company sold certain unsecured consumer loans with an associated allowance of $94 million at the time of the sale. As shown in the table below, there was a $63 million fair value mark recorded through charge-offs, which resulted in a net provision benefit of $31 million associated with the sale.

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

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

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

Adjusted Net Charge-offs and Ratio (non-GAAP)

At the end of the third quarter of 2022, the Company made the strategic decision to sell certain unsecured consumer loans. These loans were marked down to fair value through charge-offs as shown below. Management believes that excluding the incremental increase to net charge-offs from the net charge-off ratio (GAAP) to arrive at an adjusted net charge-off ratio (non-GAAP) will assist investors in analyzing the Company's credit quality performance as well as provide a better basis from which to predict future performance.


	For the Quarter Ended
($ amounts in millions)	6/30/2023			3/31/2023			12/31/2022			9/30/2022			6/30/2022
Net loan charge-offs (GAAP)	$	81		$	83		$	69		$	110		$	38
Less: charge-offs associated with the sale of unsecured consumer loans	—			—			—			63			—
Adjusted net loan charge-offs (non-GAAP)	$	81		$	83		$	69		$	47		$	38
Adjusted net loan charge-offs as a % of average loans, annualized (non-GAAP) (1)	0.33		%	0.35		%	0.29		%	0.19		%	0.17		%

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

Regions Financial Corporation and Subsidiaries

Financial Supplement (unaudited) to Second Quarter 2023 Earnings Release

Non-Performing Loans (excludes loans held for sale)


	As of
($ amounts in millions, %'s calculated using whole dollar values)	6/30/2023				3/31/2023				12/31/2022				9/30/2022				6/30/2022
Commercial and industrial	$	297	0.57	%	$	385	0.74	%	$	347	0.68	%	$	333	0.67	%	$	257	0.53	%
Commercial real estate mortgage��owner-occupied	34		0.72	%	34		0.68	%	29		0.58	%	29		0.57	%	29		0.55	%
Commercial real estate construction—owner-occupied	5		1.60	%	6		1.85	%	6		1.93	%	6		2.22	%	10		3.92	%
Total commercial	336		0.59	%	425		0.74	%	382		0.68	%	368		0.67	%	296		0.55	%
Commercial investor real estate mortgage	98		1.51	%	67		1.06	%	53		0.83	%	59		0.93	%	3		0.05	%
Total investor real estate	98		1.14	%	67		0.80	%	53		0.63	%	59		0.72	%	3		0.04	%
Residential first mortgage	24		0.12	%	26		0.14	%	31		0.16	%	29		0.16	%	27		0.15	%
Home equity—lines of credit	28		0.84	%	30		0.90	%	28		0.79	%	32		0.90	%	36		1.00	%
Home equity—closed-end	6		0.24	%	6		0.23	%	6		0.24	%	7		0.28	%	7		0.28	%
Total consumer	58		0.17	%	62		0.19	%	65		0.20	%	68		0.22	%	70		0.22	%
Total non-performing loans	$	492	0.50	%	$	554	0.56	%	$	500	0.52	%	$	495	0.52	%	$	369	0.39	%

Early and Late Stage Delinquencies


Accruing 30-89 Days Past Due Loans	As of
($ amounts in millions, %'s calculated using whole dollar values)	6/30/2023				3/31/2023				12/31/2022				9/30/2022				6/30/2022
Commercial and industrial	$	55	0.10	%	$	47	0.09	%	$	56	0.11	%	$	77	0.16	%	$	37	0.08	%
Commercial real estate mortgage—owner-occupied	4		0.09	%	7		0.14	%	9		0.18	%	5		0.09	%	5		0.10	%

Total commercial	59		0.10	%	54		0.09	%	65		0.12	%	82		0.15	%	42		0.08	%
Commercial investor real estate mortgage	1		0.01	%	1		0.01	%	—		—	%	1		—	%	—		—	%

Total investor real estate	1		0.01	%	1		0.01	%	—		—	%	1		—	%	—		—	%
Residential first mortgage—non-guaranteed (1)	83		0.42	%	74		0.39	%	86		0.47	%	85		0.47	%	71		0.41	%
Home equity—lines of credit	28		0.85	%	28		0.83	%	30		0.85	%	20		0.58	%	16		0.45	%
Home equity—closed-end	10		0.43	%	10		0.38	%	11		0.44	%	11		0.44	%	11		0.43	%
Consumer credit card	16		1.28	%	15		1.24	%	16		1.26	%	17		1.39	%	13		1.11	%
Other consumer—exit portfolios	6		1.54	%	7		1.38	%	10		1.75	%	10		1.49	%	10		1.31	%
Other consumer	79		1.32	%	69		1.18	%	67		1.18	%	49		0.93	%	48		0.81	%
Total consumer (1)	222		0.78	%	203		0.74	%	220		0.82	%	192		0.73	%	169		0.66	%
Total accruing 30-89 days past due loans (1)	$	282	0.29	%	$	258	0.26	%	$	285	0.29	%	$	275	0.29	%	$	211	0.23	%

Accruing 90+ Days Past Due Loans	As of
($ amounts in millions, %'s calculated using whole dollar values)	6/30/2023				3/31/2023				12/31/2022				9/30/2022				6/30/2022
Commercial and industrial	$	10	0.02	%	$	23	0.04	%	$	30	0.06	%	$	4	0.01	%	$	4	0.01	%
Commercial real estate mortgage—owner-occupied	1		0.02	%	—		0.01	%	1		0.02	%	—		—	%	1		0.02	%
Total commercial	11		0.02	%	23		0.04	%	31		0.05	%	4		0.01	%	5		0.01	%
Commercial investor real estate mortgage	—		—	%	—		—	%	40		0.63	%	—		—	%	—		—	%
Total investor real estate	—		—	%	—		—	%	40		0.48	%	—		—	%	—		—	%
Residential first mortgage—non-guaranteed (2)	53		0.28	%	47		0.25	%	47		0.26	%	50		0.28	%	50		0.29	%
Home equity—lines of credit	19		0.56	%	17		0.50	%	15		0.44	%	17		0.47	%	16		0.46	%
Home equity—closed-end	8		0.31	%	8		0.36	%	8		0.33	%	8		0.31	%	9		0.36	%
Consumer credit card	15		1.26	%	15		1.20	%	15		1.19	%	13		1.12	%	11		0.97	%
Other consumer—exit portfolios	1		0.18	%	1		0.18	%	1		0.19	%	1		0.20	%	2		0.19	%
Other consumer	24		0.40	%	17		0.30	%	17		0.29	%	12		0.22	%	14		0.23	%
Total consumer (2)	120		0.43	%	105		0.42	%	103		0.42	%	101		0.40	%	102		0.41	%
Total accruing 90+ days past due loans (2)	$	131	0.13	%	$	128	0.13	%	$	174	0.18	%	$	105	0.11	%	$	107	0.11	%

Total delinquencies (1) (2)	$	413	0.42	%	$	386	0.39	%	$	459	0.47	%	$	380	0.40	%	$	318	0.34	%

(1)Excludes loans that are 100% guaranteed by FHA and guaranteed loans sold to Ginnie Mae where Regions has the right but not the obligation to repurchase. Total 30-89 days past due guaranteed loans excluded were $36 million at 6/30/2023, $37 million at 3/31/2023, $46 million at 12/31/2022, $39 million at 9/30/2022, and $42 million at 6/30/2022.

(2)Excludes loans that are 100% guaranteed by FHA and all guaranteed loans sold to Ginnie Mae where Regions has the right but not the obligation to repurchase. Total 90 days or more past due guaranteed loans excluded were $24 million at 6/30/2023, $30 million at 3/31/2023, $34 million at 12/31/2022, $26 million at 9/30/2022, and $28 million at 6/30/2022.

Regions Financial Corporation and Subsidiaries

Financial Supplement (unaudited) to Second Quarter 2023 Earnings Release

Forward-Looking Statements

This release may include forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. The words “future,” “anticipates,” “assumes,” “intends,” “plans,” “seeks,” “believes,” “predicts,” “potential,” “objectives,” “estimates,” “expects,” “targets,” “projects,” “outlook,” “forecast,” “would,” “will,” “may,” “might,” “could,” “should,” “can,” and similar terms and expressions often signify forward-looking statements. Forward-looking statements are subject to the risk that the actual effects may differ, possibly materially, from what is reflected in those forward-looking statements due to factors and future developments that are uncertain, unpredictable and in many cases beyond our control. Forward-looking statements are not based on historical information, but rather are related to future operations, strategies, financial results or other developments. Forward-looking statements are based on management’s current expectations as well as certain assumptions and estimates made by, and information available to, management at the time the statements are made. Those statements are based on general assumptions and are subject to various risks, and because they also relate to the future they are likewise subject to inherent uncertainties and other factors that may cause actual results to differ materially from the views, beliefs and projections expressed in such statements. Therefore, we caution you against relying on any of these forward-looking statements. These risks, uncertainties and other factors include, but are not limited to, those described below:

•Current and future economic and market conditions in the United States generally or in the communities we serve (in particular the Southeastern United States), including the effects of possible declines in property values, increases in interest rates and unemployment rates, inflation, financial market disruptions and potential reductions of economic growth, which may adversely affect our lending and other businesses and our financial results and conditions.

•Possible changes in trade, monetary and fiscal policies of, and other activities undertaken by, governments, agencies, central banks and similar organizations, which could have a material adverse effect on our businesses and our financial results and conditions.

•Changes in market interest rates or capital markets could adversely affect our revenue and expense, the value of assets and obligations, and the availability and cost of capital and liquidity.

•Volatility and uncertainty related to inflation and the effects of inflation, which may lead to increased costs for businesses and consumers and potentially contribute to poor business and economic conditions generally.

•The impact of pandemics, including the COVID-19 pandemic, on our businesses, operations, and financial results and conditions. The duration and severity of any pandemic could disrupt the global economy, adversely affect our capital and liquidity position, impair the ability of borrowers to repay outstanding loans and increase our allowance for credit losses, impair collateral values, and result in lost revenue or additional expenses.

•Any impairment of our goodwill or other intangibles, any repricing of assets, or any adjustment of valuation allowances on our deferred tax assets due to changes in tax law, adverse changes in the economic environment, declining operations of the reporting unit or other factors.

•The effect of new tax legislation and/or interpretation of existing tax law, which may impact our earnings, capital ratios, and our ability to return capital to shareholders.

•Possible changes in the creditworthiness of customers and the possible impairment of the collectability of loans and leases, including operating leases.

•Changes in the speed of loan prepayments, loan origination and sale volumes, charge-offs, credit loss provisions or actual credit losses where our allowance for credit losses may not be adequate to cover our eventual losses.

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

•Loss of customer checking and savings account deposits as customers pursue other, higher-yield investments, which could increase our funding costs.

•Possible changes in consumer and business spending and saving habits and the related effect on our ability to increase assets and to attract deposits, which could adversely affect our net income.

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

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

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

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

•Our ability to effectively compete with other traditional and non-traditional financial services companies, including fintechs, some of whom possess greater financial resources than we do or are subject to different regulatory standards than we are.

•Our inability to develop and gain acceptance from current and prospective customers for new products and services and the enhancement of existing products and services to meet customers’ needs and respond to emerging technological trends in a timely manner could have a negative impact on our revenue.

•Our inability to keep pace with technological changes, including those related to the offering of digital banking and financial services, could result in losing business to competitors.

•Changes in laws and regulations affecting our businesses, including legislation and regulations relating to bank products and services, such as special FDIC assessments, any new long-term debt requirements, as well as changes in the enforcement and interpretation of such laws and regulations by applicable governmental and self-regulatory agencies, including as a result of the changes in U.S. presidential administration, control of the U.S. Congress, and changes in personnel at the bank regulatory agencies, which could require us to change certain business practices, increase compliance risk, reduce our revenue, impose additional costs on us, or otherwise negatively affect our businesses.

•Our capital actions, including dividend payments, common stock repurchases, or redemptions of preferred stock, must not cause us to fall below minimum capital ratio requirements, with applicable buffers taken into account, and must comply with other requirements and restrictions under law or imposed by our regulators, which may impact our ability to return capital to shareholders.

•Our ability to comply with stress testing and capital planning requirements (as part of the CCAR process or otherwise) may continue to require a significant investment of our managerial resources due to the importance of such tests and requirements.

•Our ability to comply with applicable capital and liquidity requirements (including, among other things, the Basel III capital standards), including our ability to generate capital internally or raise capital on favorable terms, and if we fail to meet requirements, our financial condition and market perceptions of us could be negatively impacted.

•The effects of any developments, changes or actions relating to any litigation or regulatory proceedings brought against us or any of our subsidiaries.

•The costs, including possibly incurring fines, penalties, or other negative effects (including reputational harm) of any adverse judicial, administrative, or arbitral rulings or proceedings, regulatory enforcement actions, or other legal actions to which we or any of our subsidiaries are a party, and which may adversely affect our results.

•Our ability to manage fluctuations in the value of assets and liabilities and off-balance sheet exposure so as to maintain sufficient capital and liquidity to support our businesses.

•Our ability to execute on our strategic and operational plans, including our ability to fully realize the financial and nonfinancial benefits relating to our strategic initiatives.

•The risks and uncertainties related to our acquisition or divestiture of businesses and risks related to such acquisitions, including that the expected synergies, cost savings and other financial or other benefits may not be realized within expected timeframes, or might be less than projected; and difficulties in integrating acquired businesses.

•The success of our marketing efforts in attracting and retaining customers.

•Our ability to recruit and retain talented and experienced personnel to assist in the development, management and operation of our products and services may be affected by changes in laws and regulations in effect from time to time.

Regions Financial Corporation and Subsidiaries

Financial Supplement (unaudited) to Second Quarter 2023 Earnings Release

•Fraud or misconduct by our customers, employees or business partners.

•Any inaccurate or incomplete information provided to us by our customers or counterparties.

•Inability of our framework to manage risks associated with our businesses, such as credit risk and operational risk, including third-party vendors and other service providers, which could, among other things, result in a breach of operating or security systems as a result of a cyber attack or similar act or failure to deliver our services effectively.

•Our ability to identify and address operational risks associated with the introduction of or changes to products, services, or delivery platforms.

•Dependence on key suppliers or vendors to obtain equipment and other supplies for our businesses on acceptable terms.

•The inability of our internal controls and procedures to prevent, detect or mitigate any material errors or fraudulent acts.

•The effects of geopolitical instability, including wars, conflicts, civil unrest, and terrorist attacks and the potential impact, directly or indirectly, on our businesses.

•The effects of man-made and natural disasters, including fires, floods, droughts, tornadoes, hurricanes, and environmental damage (specifically in the Southeastern United States), which may negatively affect our operations and/or our loan portfolios and increase our cost of conducting business. The severity and frequency of future earthquakes, fires, hurricanes, tornadoes, droughts, floods and other weather-related events are difficult to predict and may be exacerbated by global climate change.

•Changes in commodity market prices and conditions could adversely affect the cash flows of our borrowers operating in industries that are impacted by changes in commodity prices (including businesses indirectly impacted by commodities prices such as businesses that transport commodities or manufacture equipment used in the production of commodities), which could impair their ability to service any loans outstanding to them and/or reduce demand for loans in those industries.

•Our ability to identify and address cyber-security risks such as data security breaches, malware, ransomware, “denial of service” attacks, “hacking” and identity theft, including account take-overs, a failure of which could disrupt our businesses and result in the disclosure of and/or misuse or misappropriation of confidential or proprietary information, disruption or damage to our systems, increased costs, losses, or adverse effects to our reputation.

•Our ability to achieve our expense management initiatives.

•Market replacement of LIBOR and the related effect on our LIBOR-based financial products and contracts, including, but not limited to, derivative products, debt obligations, deposits, investments, and loans.

•Possible downgrades in our credit ratings or outlook could, among other negative impacts, increase the costs of funding from capital markets.

��The effects of problems encountered by other financial institutions that adversely affect us or the banking industry generally could require us to change certain business practices, reduce our revenue, impose additional costs on us, or otherwise negatively affect our businesses.

•The effects of the failure of any component of our business infrastructure provided by a third party could disrupt our businesses, result in the disclosure of and/or misuse of confidential information or proprietary information, increase our costs, negatively affect our reputation, and cause losses.

•Our ability to receive dividends from our subsidiaries, in particular Regions Bank, could affect our liquidity and ability to pay dividends to shareholders.

•Changes in accounting policies or procedures as may be required by the FASB or other regulatory agencies could materially affect our financial statements and how we report those results, and expectations and preliminary analyses relating to how such changes will affect our financial results could prove incorrect.

•Fluctuations in the price of our common stock and inability to complete stock repurchases in the time frame and/or on the terms anticipated.

•The effects of anti-takeover laws and exclusive forum provision in our certificate of incorporation and bylaws.

•The effects of any damage to our reputation resulting from developments related to any of the items identified above.

•Other risks identified from time to time in reports that we file with the SEC.

The foregoing list of factors is not exhaustive. For discussion of these and other factors that may cause actual results to differ from expectations, look under the captions “Forward-Looking Statements” and “Risk Factors” in Regions’ Annual Report on Form 10-K for the year ended December 31, 2022 and in Regions’ subsequent filings with the SEC.

You should not place undue reliance on any forward-looking statements, which speak only as of the date made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible to predict all of them. We assume no obligation and do not intend to update or revise any forward-looking statements that are made from time to time, either as a result of future developments, new information or otherwise, except as may be required by law.

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

Regions Financial (RF) 8-KConsistent, Sustainable Performance. Regions reports second quarter 2023 earnings of $556 million, earnings per diluted share of $0.59