EX-99.2 3 rf-20230930xexhibitx992.htm EX-99.2
Exhibit 99.2
Regions Financial Corporation and Subsidiaries
Financial Supplement (unaudited)
Third Quarter 2023

Regions Financial Corporation and Subsidiaries
Financial Supplement (unaudited) to Third Quarter 2023 Earnings Release
Table of Contents

|  | Page
Financial Highlights |  | 1
Selected Ratios and Other Information* |  | 2
Consolidated Balance Sheets |  | 3
Loans |  | 4
Deposits |  | 6
Consolidated Statements of Income |  | 8
Consolidated Average Daily Balances and Yield / Rate Analysis |  | 10
Pre-Tax Pre-Provision Income ("PPI")* and Adjusted PPI* |  | 12
Non-Interest Income, Mortgage Income, Wealth Management Income and Capital Markets Income |  | 13
Non-Interest Expense |  | 15
Reconciliation of GAAP Financial Measures to non-GAAP Financial Measures* |  |
Adjusted Efficiency Ratios, Adjusted Fee Income Ratios, Adjusted Non-Interest Income / Expense, Adjusted Operating Leverage Ratios, Return Ratios, and Tangible Common Ratios |  | 16
Credit Quality |  |
Allowance for Credit Losses, Net Charge-Offs and Related Ratios, Adjusted Net Charge-Offs and Related Ratios |  | 19
Non-Accrual Loans (excludes loans held for sale), Early and Late Stage Delinquencies |  | 21
Forward-Looking Statements |  | 22

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

Regions Financial Corporation and Subsidiaries
Financial Supplement (unaudited) to Third Quarter 2023 Earnings Release
Financial Highlights

| Quarter Ended
($ amounts in millions, except per share data) | 9/30/2023 |  | 6/30/2023 |  | 3/31/2023 |  | 12/31/2022 |  | 9/30/2022
Earnings Summary |  |  |  |  |  |  |  |  |
Interest income - taxable equivalent | $ | 1,779 |  |  | $ | 1,751 |  |  | $ | 1,654 |  |  | $ | 1,565 |  |  | $ | 1,355 |
Interest expense - taxable equivalent | 475 |  |  | 358 |  |  | 224 |  |  | 151 |  |  | 81 |
Net interest income - taxable equivalent | 1,304 |  |  | 1,393 |  |  | 1,430 |  |  | 1,414 |  |  | 1,274 |
Less: Taxable-equivalent adjustment | 13 |  |  | 12 |  |  | 13 |  |  | 13 |  |  | 12 |
Net interest income | 1,291 |  |  | 1,381 |  |  | 1,417 |  |  | 1,401 |  |  | 1,262 |
Provision for credit losses | 145 |  |  | 118 |  |  | 135 |  |  | 112 |  |  | 135 |
Net interest income after provision for credit losses | 1,146 |  |  | 1,263 |  |  | 1,282 |  |  | 1,289 |  |  | 1,127 |
Non-interest income | 566 |  |  | 576 |  |  | 534 |  |  | 600 |  |  | 605 |
Non-interest expense | 1,093 |  |  | 1,111 |  |  | 1,027 |  |  | 1,017 |  |  | 1,170 |
Income before income taxes | 619 |  |  | 728 |  |  | 789 |  |  | 872 |  |  | 562 |
Income tax expense | 129 |  |  | 147 |  |  | 177 |  |  | 187 |  |  | 133 |
Net income | $ | 490 |  |  | $ | 581 |  |  | $ | 612 |  |  | $ | 685 |  |  | $ | 429 |
Net income available to common shareholders | $ | 465 |  |  | $ | 556 |  |  | $ | 588 |  |  | $ | 660 |  |  | $ | 404 |
Weighted-average shares outstanding—during quarter: |  |  |  |  |  |  |  |  |
Basic | 939 |  |  | 939 |  |  | 935 |  |  | 934 |  |  | 934 |
Diluted | 940 |  |  | 939 |  |  | 942 |  |  | 941 |  |  | 940 |
Earnings per common share - basic | $ | 0.49 |  |  | $ | 0.59 |  |  | $ | 0.63 |  |  | $ | 0.71 |  |  | $ | 0.43 |
Earnings per common share - diluted | $ | 0.49 |  |  | $ | 0.59 |  |  | $ | 0.62 |  |  | $ | 0.70 |  |  | $ | 0.43 |
Balance Sheet Summary |  |  |  |  |  |  |  |  |
At quarter-end |  |  |  |  |  |  |  |  |
Loans, net of unearned income | $ | 98,942 |  |  | $ | 99,191 |  |  | $ | 98,057 |  |  | $ | 97,009 |  |  | $ | 94,711 |
Allowance for credit losses | (1,677 | ) |  | (1,633 | ) |  | (1,596 | ) |  | (1,582 | ) |  | (1,539 | )
Assets | 153,624 |  |  | 155,656 |  |  | 154,135 |  |  | 155,220 |  |  | 157,798 |
Deposits | 126,199 |  |  | 126,959 |  |  | 128,460 |  |  | 131,743 |  |  | 135,378 |
Long-term borrowings | 4,290 |  |  | 4,293 |  |  | 2,307 |  |  | 2,284 |  |  | 2,274 |
Shareholders' equity | 16,100 |  |  | 16,639 |  |  | 16,883 |  |  | 15,947 |  |  | 15,173 |
Average balances |  |  |  |  |  |  |  |  |
Loans, net of unearned income | $ | 98,785 |  |  | $ | 98,581 |  |  | $ | 97,277 |  |  | $ | 95,752 |  |  | $ | 94,684 |
Assets | 153,484 |  |  | 153,774 |  |  | 153,082 |  |  | 155,668 |  |  | 158,422 |
Deposits | 125,220 |  |  | 125,539 |  |  | 129,042 |  |  | 133,007 |  |  | 135,518 |
Long-term borrowings | 4,295 |  |  | 3,517 |  |  | 2,286 |  |  | 2,275 |  |  | 2,319 |
Shareholders' equity | 16,468 |  |  | 16,892 |  |  | 16,457 |  |  | 15,442 |  |  | 16,473 |

1

Regions Financial Corporation and Subsidiaries
Financial Supplement (unaudited) to Third Quarter 2023 Earnings Release
Selected Ratios and Other Information

| As of and for Quarter Ended
| 9/30/2023 |  | 6/30/2023 |  | 3/31/2023 |  | 12/31/2022 |  | 9/30/2022
Return on average assets* (1) | 1.26 | % |  | 1.52 | % |  | 1.62 | % |  | 1.75 | % |  | 1.07 | %
Return on average common shareholders' equity* | 12.45 | % |  | 14.65 | % |  | 16.10 | % |  | 19.01 | % |  | 10.82 | %
Return on average tangible common shareholders’ equity (non-GAAP)* (2) | 20.58 | % |  | 23.82 | % |  | 26.70 | % |  | 33.20 | % |  | 18.02 | %
Return on average tangible common shareholders’ equity excluding AOCI (non-GAAP)* (2) | 14.58 | % |  | 18.14 | % |  | 19.85 | % |  | 22.91 | % |  | 14.42 | %
Efficiency ratio | 58.5 | % |  | 56.4 | % |  | 52.3 | % |  | 50.5 | % |  | 62.3 | %
Adjusted efficiency ratio (non-GAAP) (2) | 58.2 | % |  | 56.4 | % |  | 52.2 | % |  | 51.6 | % |  | 52.6 | %
Dividend payout ratio (3) | 48.5 | % |  | 33.7 | % |  | 31.8 | % |  | 28.3 | % |  | 46.2 | %
Common book value per share | $ | 15.38 |  |  | $ | 15.95 |  |  | $ | 16.29 |  |  | $ | 15.29 |  |  | $ | 14.46 |
Tangible common book value per share (non-GAAP) (2) | $ | 9.16 |  |  | $ | 9.72 |  |  | $ | 10.01 |  |  | $ | 9.00 |  |  | $ | 8.15 |
Total equity to total assets | 10.48 | % |  | 10.69 | % |  | 10.95 | % |  | 10.27 | % |  | 9.62 | %
Tangible common shareholders’ equity to tangible assets (non-GAAP) (2) | 5.82 | % |  | 6.09 | % |  | 6.31 | % |  | 5.63 | % |  | 5.01 | %
Common equity (4) | $ | 13,056 |  | $ | 12,786 |  |  | $ | 12,420 |  |  | $ | 12,066 |  |  | $ | 11,554 |
Total risk-weighted assets (4) | $ | 126,667 |  | $ | 126,947 |  |  | $ | 125,747 |  |  | $ | 125,752 |  |  | $ | 124,395 |
Common equity Tier 1 ratio (4) | 10.3 | % |  | 10.1 | % |  | 9.9 | % |  | 9.6 | % |  | 9.3 | %
Tier 1 capital ratio (4) | 11.6 | % |  | 11.4 | % |  | 11.2 | % |  | 10.9 | % |  | 10.6 | %
Total risk-based capital ratio (4) | 13.4 | % |  | 13.1 | % |  | 12.9 | % |  | 12.5 | % |  | 12.3 | %
Leverage ratio (4) | 9.7 | % |  | 9.5 | % |  | 9.3 | % |  | 8.9 | % |  | 8.5 | %
Effective tax rate | 20.9 | % |  | 20.2 | % |  | 22.4 | % |  | 21.5 | % |  | 23.7 | %
Allowance for credit losses as a percentage of loans, net of unearned income | 1.70 | % |  | 1.65 | % |  | 1.63 | % |  | 1.63 | % |  | 1.63 | %
Allowance for credit losses to non-performing loans, excluding loans held for sale | 261 | % |  | 332 | % |  | 288 | % |  | 317 | % |  | 311 | %
Net interest margin (FTE)* | 3.73 | % |  | 4.04 | % |  | 4.22 | % |  | 3.99 | % |  | 3.53 | %
Loans, net of unearned income, to total deposits | 78.4 | % |  | 78.1 | % |  | 76.3 | % |  | 73.6 | % |  | 70.0 | %
Net charge-offs as a percentage of average loans* | 0.40 | % |  | 0.33 | % |  | 0.35 | % |  | 0.29 | % |  | 0.46 | %
Adjusted net charge-offs as a percentage of average loans (non-GAAP) * (2) | 0.40 | % |  | 0.33 | % |  | 0.35 | % |  | 0.29 | % |  | 0.19 | %
Non-performing loans, excluding loans held for sale, as a percentage of loans | 0.65 | % |  | 0.50 | % |  | 0.56 | % |  | 0.52 | % |  | 0.52 | %
Non-performing assets (excluding loans 90 days past due) as a percentage of loans, foreclosed properties, and non-performing loans held for sale | 0.67 | % |  | 0.51 | % |  | 0.58 | % |  | 0.53 | % |  | 0.54 | %
Non-performing assets (including loans 90 days past due) as a percentage of loans, foreclosed properties, and non-performing loans held for sale (5) | 0.81 | % |  | 0.64 | % |  | 0.71 | % |  | 0.75 | % |  | 0.65 | %
Associate headcount—full-time equivalent | 20,257 |  |  | 20,349 |  |  | 20,113 |  |  | 20,073 |  |  | 19,950 |
ATMs | 2,022 |  |  | 2,025 |  |  | 2,034 |  |  | 2,039 |  |  | 2,043 |
Branch Statistics |  |  |  |  |  |  |  |  |
Full service | 1,243 |  |  | 1,245 |  |  | 1,251 |  |  | 1,252 |  |  | 1,259 |
Drive-through/transaction service only | 29 |  |  | 31 |  |  | 34 |  |  | 34 |  |  | 35 |
Total branch outlets | 1,272 |  |  | 1,276 |  |  | 1,285 |  |  | 1,286 |  |  | 1,294 |

*Annualized
(1)Calculated by dividing net income by average assets.
(2)See reconciliation of GAAP to non-GAAP Financial Measures that begin on pages 12, 16, 17, 18 and 20.
(3)Dividend payout ratio reflects dividends declared within the applicable period.
(4)Current quarter Common equity as well as Total risk-weighted assets, Common equity Tier 1, Tier 1 capital, Total risk-based capital and Leverage ratios are estimated.
(5)Excludes guaranteed residential first mortgages that are 90+ days past due and still accruing. Refer to the footnotes on page 21 for amounts related to these loans.
2

Regions Financial Corporation and Subsidiaries
Financial Supplement (unaudited) to Third Quarter 2023 Earnings Release
Consolidated Balance Sheets

| As of |  |
($ amounts in millions) | 9/30/2023 |  | 6/30/2023 |  | 3/31/2023 |  | 12/31/2022 |  | 9/30/2022 |  |
Assets: |  |  |  |  |  |  |  |  |  |  |
Cash and due from banks | $ | 1,554 |  |  | $ | 2,480 |  |  | $ | 2,395 |  |  | $ | 1,997 |  |  | $ | 2,117 |  |  |
Interest-bearing deposits in other banks | 7,462 |  |  | 7,406 |  |  | 6,438 |  |  | 9,230 |  |  | 13,549 |  |  |
Debt securities held to maturity | 763 |  |  | 777 |  |  | 790 |  |  | 801 |  |  | 817 |  |  |
Debt securities available for sale | 26,228 |  |  | 27,296 |  |  | 28,230 |  |  | 27,933 |  |  | 28,126 |  |  |
Loans held for sale | 459 |  |  | 554 |  |  | 564 |  |  | 354 |  |  | 720 |  |  |
Loans, net of unearned income | 98,942 |  |  | 99,191 |  |  | 98,057 |  |  | 97,009 |  |  | 94,711 |  |  |
Allowance for loan losses | (1,547) |  |  | (1,513) |  |  | (1,472) |  |  | (1,464) |  |  | (1,418) |  |  |
Net loans | 97,395 |  |  | 97,678 |  |  | 96,585 |  |  | 95,545 |  |  | 93,293 |  |  |
Other earning assets | 1,552 |  |  | 1,563 |  |  | 1,335 |  |  | 1,308 |  |  | 1,341 |  |  |
Premises and equipment, net | 1,616 |  |  | 1,622 |  |  | 1,705 |  |  | 1,718 |  |  | 1,744 |  |  |
Interest receivable | 625 |  |  | 575 |  |  | 538 |  |  | 511 |  |  | 424 |  |  |
Goodwill | 5,733 |  |  | 5,733 |  |  | 5,733 |  |  | 5,733 |  |  | 5,739 |  |  |
Residential mortgage servicing rights at fair value (MSRs) | 932 |  |  | 801 |  |  | 790 |  |  | 812 |  |  | 809 |  |  |
Other identifiable intangible assets, net | 216 |  |  | 226 |  |  | 238 |  |  | 249 |  |  | 266 |  |  |
Other assets | 9,089 |  |  | 8,945 |  |  | 8,794 |  |  | 9,029 |  |  | 8,853 |  |  |
Total assets | $ | 153,624 |  |  | $ | 155,656 |  |  | $ | 154,135 |  |  | $ | 155,220 |  |  | $ | 157,798 |  |  |
Liabilities and Equity: |  |  |  |  |  |  |  |  |  |  |
Deposits: |  |  |  |  |  |  |  |  |  |  |
Non-interest-bearing | $ | 44,640 |  |  | $ | 46,898 |  |  | $ | 49,647 |  |  | $ | 51,348 |  |  | $ | 54,996 |  |  |
Interest-bearing | 81,559 |  |  | 80,061 |  |  | 78,813 |  |  | 80,395 |  |  | 80,382 |  |  |
Total deposits | 126,199 |  |  | 126,959 |  |  | 128,460 |  |  | 131,743 |  |  | 135,378 |  |  |
Borrowed funds: |  |  |  |  |  |  |  |  |  |  |
Short-term borrowings | 2,000 |  |  | 3,000 |  |  | 2,000 |  |  | — |  |  | — |  |  |
Long-term borrowings | 4,290 |  |  | 4,293 |  |  | 2,307 |  |  | 2,284 |  |  | 2,274 |  |  |
Other liabilities | 5,010 |  |  | 4,743 |  |  | 4,466 |  |  | 5,242 |  |  | 4,973 |  |  |
Total liabilities | 137,499 |  |  | 138,995 |  |  | 137,233 |  |  | 139,269 |  |  | 142,625 |  |  |
Equity: |  |  |  |  |  |  |  |  |  |  |
Preferred stock, non-cumulative perpetual | 1,659 |  |  | 1,659 |  |  | 1,659 |  |  | 1,659 |  |  | 1,659 |  |  |
Common stock | 10 |  |  | 10 |  |  | 10 |  |  | 10 |  |  | 10 |  |  |
Additional paid-in capital | 11,996 |  |  | 11,979 |  |  | 11,996 |  |  | 11,988 |  |  | 11,976 |  |  |
Retained earnings | 8,042 |  |  | 7,802 |  |  | 7,433 |  |  | 7,004 |  |  | 6,531 |  |  |
Treasury stock, at cost | (1,371) |  |  | (1,371) |  |  | (1,371) |  |  | (1,371) |  |  | (1,371) |  |  |
Accumulated other comprehensive income (loss), net | (4,236) |  |  | (3,440) |  |  | (2,844) |  |  | (3,343) |  |  | (3,632) |  |  |
Total shareholders’ equity | 16,100 |  |  | 16,639 |  |  | 16,883 |  |  | 15,947 |  |  | 15,173 |  |  |
Noncontrolling interest | 25 |  |  | 22 |  |  | 19 |  |  | 4 |  |  | — |  |  |
Total equity | 16,125 |  |  | 16,661 |  |  | 16,902 |  |  | 15,951 |  |  | 15,173 |  |  |
Total liabilities and equity | $ | 153,624 |  |  | $ | 155,656 |  |  | $ | 154,135 |  |  | $ | 155,220 |  |  | $ | 157,798 |  |  |

3

Regions Financial Corporation and Subsidiaries
Financial Supplement (unaudited) to Third Quarter 2023 Earnings Release
End of Period Loans

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

______
(1) The balance of Regions' home equity lines of credit consists of $1,621 million of first lien and $1,619 million of second lien at 9/30/2023.
(2) The balance of Regions' closed-end home equity loans consists of $2,095 million of first lien and $333 million of second lien at 9/30/2023.
(3) Regions ceased originating indirect vehicle loans in the second quarter of 2019 and decided not to renew another third party relationship in the fourth quarter of 2019.

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

4

Regions Financial Corporation and Subsidiaries
Financial Supplement (unaudited) to Third Quarter 2023 Earnings Release
Average Balances of Loans

| Average Balances
($ amounts in millions) | 3Q23 |  | 2Q23 |  | 1Q23 |  | 4Q22 |  | 3Q22 |  | 3Q23 vs. 2Q23 |  | 3Q23 vs. 3Q22
Commercial and industrial | $ | 51,721 |  |  | $ | 52,039 |  |  | $ | 51,158 |  |  | $ | 50,135 |  |  | $ | 49,120 |  |  | $ | (318) |  |  | (0.6) | % |  | $ | 2,601 |  |  | 5.3 | %
Commercial real estate mortgage—owner-occupied | 4,824 |  |  | 4,905 |  |  | 5,013 |  |  | 5,073 |  |  | 5,167 |  |  | (81) |  |  | (1.7) | % |  | (343) |  |  | (6.6) | %
Commercial real estate construction—owner-occupied | 276 |  |  | 292 |  |  | 292 |  |  | 289 |  |  | 274 |  |  | (16) |  |  | (5.5) | % |  | 2 |  |  | 0.7 | %
Total commercial | 56,821 |  |  | 57,236 |  |  | 56,463 |  |  | 55,497 |  |  | 54,561 |  |  | (415) |  |  | (0.7) | % |  | 2,260 |  |  | 4.1 | %
Commercial investor real estate mortgage | 6,333 |  |  | 6,459 |  |  | 6,444 |  |  | 6,406 |  |  | 6,115 |  |  | (126) |  |  | (2.0) | % |  | 218 |  |  | 3.6 | %
Commercial investor real estate construction | 2,284 |  |  | 2,023 |  |  | 1,960 |  |  | 1,884 |  |  | 1,764 |  |  | 261 |  |  | 12.9 | % |  | 520 |  |  | 29.5 | %
Total investor real estate | 8,617 |  |  | 8,482 |  |  | 8,404 |  |  | 8,290 |  |  | 7,879 |  |  | 135 |  |  | 1.6 | % |  | 738 |  |  | 9.4 | %
Total business | 65,438 |  |  | 65,718 |  |  | 64,867 |  |  | 63,787 |  |  | 62,440 |  |  | (280) |  |  | (0.4) | % |  | 2,998 |  |  | 4.8 | %
Residential first mortgage | 19,914 |  |  | 19,427 |  |  | 18,957 |  |  | 18,595 |  |  | 18,125 |  |  | 487 |  |  | 2.5 | % |  | 1,789 |  |  | 9.9 | %
Home equity—lines of credit | 3,270 |  |  | 3,354 |  |  | 3,460 |  |  | 3,520 |  |  | 3,531 |  |  | (84) |  |  | (2.5) | % |  | (261) |  |  | (7.4) | %
Home equity—closed-end | 2,418 |  |  | 2,431 |  |  | 2,461 |  |  | 2,497 |  |  | 2,519 |  |  | (13) |  |  | (0.5) | % |  | (101) |  |  | (4.0) | %
Consumer credit card | 1,245 |  |  | 1,217 |  |  | 1,214 |  |  | 1,207 |  |  | 1,176 |  |  | 28 |  |  | 2.3 | % |  | 69 |  |  | 5.9 | %
Other consumer—exit portfolios (1) | 384 |  |  | 450 |  |  | 527 |  |  | 613 |  |  | 716 |  |  | (66) |  |  | (14.7) | % |  | (332) |  |  | (46.4) | %
Other consumer | 6,116 |  |  | 5,984 |  |  | 5,791 |  |  | 5,533 |  |  | 6,177 |  |  | 132 |  |  | 2.2 | % |  | (61) |  |  | (1.0) | %
Total consumer | 33,347 |  |  | 32,863 |  |  | 32,410 |  |  | 31,965 |  |  | 32,244 |  |  | 484 |  |  | 1.5 | % |  | 1,103 |  |  | 3.4 | %
Total Loans | $ | 98,785 |  |  | $ | 98,581 |  |  | $ | 97,277 |  |  | $ | 95,752 |  |  | $ | 94,684 |  |  | $ | 204 |  |  | 0.2 | % |  | $ | 4,101 |  |  | 4.3 | %

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

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

.

5

Regions Financial Corporation and Subsidiaries
Financial Supplement (unaudited) to Third Quarter 2023 Earnings Release
End of Period Deposits

| As of
|  |  |  |  |  |  |  |  |  |  | 9/30/2023 |  | 9/30/2023
($ amounts in millions) | 9/30/2023 |  | 6/30/2023 |  | 3/31/2023 |  | 12/31/2022 |  | 9/30/2022 |  | vs. 6/30/2023 |  | vs. 9/30/2022
Interest-free deposits | $ | 44,640 |  |  | $ | 46,898 |  |  | $ | 49,647 |  |  | $ | 51,348 |  |  | $ | 54,996 |  |  | $ | (2,258) |  | (4.8)% |  | $ | (10,356) |  | (18.8)%
Interest-bearing checking | 22,428 |  |  | 22,892 |  |  | 24,066 |  |  | 25,676 |  |  | 26,500 |  |  | (464) |  | (2.0)% |  | (4,072) |  | (15.4)%
Savings | 13,292 |  |  | 14,217 |  |  | 15,286 |  |  | 15,662 |  |  | 16,083 |  |  | (925) |  | (6.5)% |  | (2,791) |  | (17.4)%
Money market—domestic | 32,646 |  |  | 32,230 |  |  | 31,688 |  |  | 33,285 |  |  | 32,444 |  |  | 416 |  | 1.3% |  | 202 |  | 0.6%
Time deposits | 13,193 |  |  | 10,722 |  |  | 7,773 |  |  | 5,772 |  |  | 5,355 |  |  | 2,471 |  | 23.0% |  | 7,838 |  | 146.4%
Total Deposits | $ | 126,199 |  |  | $ | 126,959 |  |  | $ | 128,460 |  |  | $ | 131,743 |  |  | $ | 135,378 |  |  | $ | (760) |  | (0.6)% |  | $ | (9,179) |  | (6.8)%
| As of
|  |  |  |  |  |  |  |  |  |  | 9/30/2023 |  | 9/30/2023
($ amounts in millions) | 9/30/2023 |  | 6/30/2023 |  | 3/31/2023 |  | 12/31/2022 |  | 9/30/2022 |  | vs. 6/30/2023 |  | vs. 9/30/2022
Consumer Bank Segment | $ | 80,980 |  |  | $ | 81,554 |  |  | $ | 83,296 |  |  | $ | 83,487 |  |  | $ | 85,455 |  |  | $ | (574) |  | (0.7)% |  | $ | (4,475) |  | (5.2)%
Corporate Bank Segment | 34,650 |  |  | 35,332 |  |  | 35,185 |  |  | 37,145 |  |  | 38,293 |  |  | (682) |  | (1.9)% |  | (3,643) |  | (9.5)%
Wealth Management Segment | 7,791 |  |  | 7,176 |  |  | 7,941 |  |  | 9,111 |  |  | 9,400 |  |  | 615 |  | 8.6% |  | (1,609) |  | (17.1)%
Other (1)(2) | 2,778 |  |  | 2,897 |  |  | 2,038 |  |  | 2,000 |  |  | 2,230 |  |  | (119) |  | (4.1)% |  | 548 |  | 24.6%
Total Deposits | $ | 126,199 |  |  | $ | 126,959 |  |  | $ | 128,460 |  |  | $ | 131,743 |  |  | $ | 135,378 |  |  | $ | (760) |  | (0.6)% |  | $ | (9,179) |  | (6.8)%
| As of
|  |  |  |  |  |  |  |  |  |  | 9/30/2023 |  | 9/30/2023
($ amounts in millions) | 9/30/2023 |  | 6/30/2023 |  | 3/31/2023 |  | 12/31/2022 |  | 9/30/2022 |  | vs. 6/30/2023 |  | vs. 9/30/2022
Wealth Management - Private Wealth | $ | 6,706 |  |  | $ | 6,552 |  |  | $ | 7,238 |  |  | $ | 8,196 |  |  | $ | 8,565 |  |  | $ | 154 |  | 2.4% |  | $ | (1,859) |  | (21.7)%
Wealth Management - Institutional Services | 1,085 |  |  | 624 |  |  | 703 |  |  | 915 |  |  | 835 |  |  | 461 |  | 73.9% |  | 250 |  | 29.9%
Total Wealth Management Segment Deposits | $ | 7,791 |  |  | $ | 7,176 |  |  | $ | 7,941 |  |  | $ | 9,111 |  |  | $ | 9,400 |  |  | $ | 615 |  | 8.6% |  | $ | (1,609) |  | (17.1)%

| As of
End of Period Deposits by Percentage | 9/30/2023 |  | 6/30/2023 |  | 3/31/2023 |  | 12/31/2022 |  | 9/30/2022
Interest-free deposits | 35.4 | % |  | 36.9 | % |  | 38.6 | % |  | 39.0 | % |  | 40.6 | %
Interest-bearing checking | 17.8 | % |  | 18.0 | % |  | 18.7 | % |  | 19.5 | % |  | 19.6 | %
Savings | 10.5 | % |  | 11.2 | % |  | 11.9 | % |  | 11.9 | % |  | 11.9 | %
Money market—domestic | 25.9 | % |  | 25.4 | % |  | 24.7 | % |  | 25.3 | % |  | 24.0 | %
Time deposits | 10.4 | % |  | 8.5 | % |  | 6.1 | % |  | 4.3 | % |  | 3.9 | %
Total Deposits | 100.0 | % |  | 100.0 | % |  | 100.0 | % |  | 100.0 | % |  | 100.0 | %

(1)Other deposits represent non-customer balances primarily consisting of wholesale funding (for example, Eurodollar trade deposits, selected deposits and brokered time deposits) and included additional wholesale funding arrangements in the second quarter of 2023.
(2)Includes brokered deposits totaling $1.9 billion at 9/30/2023, $2.0 billion at 6/30/2023, $1.1 billion at 3/31/2023, $1.2 billion at 12/31/2022 and $1.3 billion at 9/30/2022.
6

Regions Financial Corporation and Subsidiaries
Financial Supplement (unaudited) to Third Quarter 2023 Earnings Release
Average Balances of Deposits

| Average Balances
($ amounts in millions) | 3Q23 |  | 2Q23 |  | 1Q23 |  | 4Q22 |  | 3Q22 |  | 3Q23 vs. 2Q23 |  | 3Q23 vs. 3Q22
Interest-free deposits | $ | 44,748 |  |  | $ | 47,178 |  |  | $ | 49,592 |  |  | $ | 53,107 |  |  | $ | 55,806 |  |  | $ | (2,430) |  |  | (5.2) | % |  | $ | (11,058) |  |  | (19.8) | %
Interest-bearing checking | 22,499 |  |  | 22,979 |  |  | 24,697 |  |  | 25,379 |  |  | 26,665 |  |  | (480) |  |  | (2.1) | % |  | (4,166) |  |  | (15.6) | %
Savings | 13,715 |  |  | 14,701 |  |  | 15,418 |  |  | 15,840 |  |  | 16,176 |  |  | (986) |  |  | (6.7) | % |  | (2,461) |  |  | (15.2) | %
Money market—domestic | 32,146 |  |  | 31,567 |  |  | 32,522 |  |  | 33,219 |  |  | 31,520 |  |  | 579 |  |  | 1.8 | % |  | 626 |  |  | 2.0 | %
Time deposits | 12,112 |  |  | 9,114 |  |  | 6,813 |  |  | 5,462 |  |  | 5,351 |  |  | 2,998 |  |  | 32.9 | % |  | 6,761 |  |  | 126.4 | %
Total Deposits | $ | 125,220 |  |  | $ | 125,539 |  |  | $ | 129,042 |  |  | $ | 133,007 |  |  | $ | 135,518 |  |  | $ | (319) |  |  | (0.3) | % |  | (10,298) |  |  | (7.6) | %

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

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

| Average Balances
| Nine Months Ended September 30
($ amounts in millions) | 2023 |  | 2022 |  | 2023 vs. 2022
Interest-free deposits | $ | 47,155 |  |  | $ | 57,603 |  |  | $ | (10,448) |  |  | (18.1) | %
Interest-bearing checking | 23,383 |  |  | 27,319 |  |  | (3,936) |  |  | (14.4) | %
Savings | 14,605 |  |  | 15,974 |  |  | (1,369) |  |  | (8.6) | %
Money market—domestic | 32,077 |  |  | 31,423 |  |  | 654 |  |  | 2.1 | %
Time deposits | 9,366 |  |  | 5,617 |  |  | 3,749 |  |  | 66.7 | %
Total Deposits | $ | 126,586 |  |  | $ | 137,936 |  |  | $ | (11,350) |  |  | (8.2) | %

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

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

________
NM - Not meaningful.
(1)Other deposits represent non-customer balances primarily consisting of wholesale funding (for example, Eurodollar trade deposits, selected deposits and brokered time deposits) and included additional wholesale funding arrangements in the second quarter of 2023.
7

Regions Financial Corporation and Subsidiaries
Financial Supplement (unaudited) to Third Quarter 2023 Earnings Release
Consolidated Statements of Income

| Quarter Ended
($ amounts in millions, except per share data) | 9/30/2023 |  | 6/30/2023 |  | 3/31/2023 |  | 12/31/2022 |  | 9/30/2022
Interest income on: |  |  |  |  |  |  |  |  |
Loans, including fees | $ | 1,462 |  |  | $ | 1,454 |  |  | $ | 1,360 |  |  | $ | 1,208 |  |  | $ | 1,072 |
Debt securities | 185 |  |  | 185 |  |  | 187 |  |  | 222 |  |  | 171 |
Loans held for sale | 14 |  |  | 10 |  |  | 7 |  |  | 9 |  |  | 8 |
Other earning assets | 105 |  |  | 90 |  |  | 87 |  |  | 113 |  |  | 92 |
Total interest income | 1,766 |  |  | 1,739 |  |  | 1,641 |  |  | 1,552 |  |  | 1,343 |
Interest expense on: |  |  |  |  |  |  |  |  |
Deposits | 367 |  |  | 260 |  |  | 179 |  |  | 114 |  |  | 50 |
Short-term borrowings | 39 |  |  | 42 |  |  | 5 |  |  | — |  |  | — |
Long-term borrowings | 69 |  |  | 56 |  |  | 40 |  |  | 37 |  |  | 31 |
Total interest expense | 475 |  |  | 358 |  |  | 224 |  |  | 151 |  |  | 81 |
Net interest income | 1,291 |  |  | 1,381 |  |  | 1,417 |  |  | 1,401 |  |  | 1,262 |
Provision for credit losses | 145 |  |  | 118 |  |  | 135 |  |  | 112 |  |  | 135 |
Net interest income after provision for credit losses | 1,146 |  |  | 1,263 |  |  | 1,282 |  |  | 1,289 |  |  | 1,127 |
Non-interest income: |  |  |  |  |  |  |  |  |
Service charges on deposit accounts | 142 |  |  | 152 |  |  | 155 |  |  | 152 |  |  | 156 |
Card and ATM fees | 126 |  |  | 130 |  |  | 121 |  |  | 130 |  |  | 126 |
Wealth management income | 112 |  |  | 110 |  |  | 112 |  |  | 108 |  |  | 108 |
Capital markets income | 64 |  |  | 68 |  |  | 42 |  |  | 61 |  |  | 93 |
Mortgage income | 28 |  |  | 26 |  |  | 24 |  |  | 24 |  |  | 37 |
Securities gains (losses), net | (1) |  |  | — |  |  | (2) |  |  | — |  |  | (1) |
Other | 95 |  |  | 90 |  |  | 82 |  |  | 125 |  |  | 86 |
Total non-interest income | 566 |  |  | 576 |  |  | 534 |  |  | 600 |  |  | 605 |
Non-interest expense: |  |  |  |  |  |  |  |  |
Salaries and employee benefits | 589 |  |  | 603 |  |  | 616 |  |  | 604 |  |  | 593 |
Equipment and software expense | 107 |  |  | 101 |  |  | 102 |  |  | 102 |  |  | 98 |
Net occupancy expense | 72 |  |  | 73 |  |  | 73 |  |  | 74 |  |  | 76 |
Other | 325 |  |  | 334 |  |  | 236 |  |  | 237 |  |  | 403 |
Total non-interest expense | 1,093 |  |  | 1,111 |  |  | 1,027 |  |  | 1,017 |  |  | 1,170 |
Income before income taxes | 619 |  |  | 728 |  |  | 789 |  |  | 872 |  |  | 562 |
Income tax expense | 129 |  |  | 147 |  |  | 177 |  |  | 187 |  |  | 133 |
Net income | $ | 490 |  |  | $ | 581 |  |  | $ | 612 |  |  | $ | 685 |  |  | $ | 429 |
Net income available to common shareholders | $ | 465 |  |  | $ | 556 |  |  | $ | 588 |  |  | $ | 660 |  |  | $ | 404 |
Weighted-average shares outstanding—during quarter: |  |  |  |  |  |  |  |  |
Basic | 939 |  |  | 939 |  |  | 935 |  |  | 934 |  |  | 934 |
Diluted | 940 |  |  | 939 |  |  | 942 |  |  | 941 |  |  | 940 |
Actual shares outstanding—end of quarter | 939 |  |  | 939 |  |  | 935 |  |  | 934 |  |  | 934 |
Earnings per common share: (1) |  |  |  |  |  |  |  |  |
Basic | $ | 0.49 |  |  | $ | 0.59 |  |  | $ | 0.63 |  |  | $ | 0.71 |  |  | $ | 0.43 |
Diluted | $ | 0.49 |  |  | $ | 0.59 |  |  | $ | 0.62 |  |  | $ | 0.70 |  |  | $ | 0.43 |
Taxable-equivalent net interest income | $ | 1,304 |  |  | $ | 1,393 |  |  | $ | 1,430 |  |  | $ | 1,414 |  |  | $ | 1,274 |

________
(1) Quarterly amounts may not add to year-to-date amounts due to rounding.
8

Regions Financial Corporation and Subsidiaries
Financial Supplement (unaudited) to Third Quarter 2023 Earnings Release
Consolidated Statements of Income (continued) (unaudited)

| Nine Months Ended September 30
($ amounts in millions, except per share data) | 2023 |  | 2022
Interest income on: |  |  |
Loans, including fees | $ | 4,276 |  |  | $ | 2,880 |
Debt securities | 557 |  |  | 466 |
Loans held for sale | 31 |  |  | 27 |
Other earning assets | 282 |  |  | 177 |
Total interest income | 5,146 |  |  | 3,550 |
Interest expense on: |  |  |
Deposits | 806 |  |  | 83 |
Short-term borrowings | 86 |  |  | — |
Long-term borrowings | 165 |  |  | 82 |
Total interest expense | 1,057 |  |  | 165 |
Net interest income | 4,089 |  |  | 3,385 |
Provision for credit losses | 398 |  |  | 159 |
Net interest income after provision for credit losses | 3,691 |  |  | 3,226 |
Non-interest income: |  |  |
Service charges on deposit accounts | 449 |  |  | 489 |
Card and ATM fees | 377 |  |  | 383 |
Wealth management income | 334 |  |  | 311 |
Capital markets income | 174 |  |  | 278 |
Mortgage income | 78 |  |  | 132 |
Securities gains (losses), net | (3) |  |  | (1) |
Other | 267 |  |  | 237 |
Total non-interest income | 1,676 |  |  | 1,829 |
Non-interest expense: |  |  |
Salaries and employee benefits | 1,808 |  |  | 1,714 |
Equipment and software expense | 310 |  |  | 290 |
Net occupancy expense | 218 |  |  | 226 |
Other | 895 |  |  | 821 |
Total non-interest expense | 3,231 |  |  | 3,051 |
Income before income taxes | 2,136 |  |  | 2,004 |
Income tax expense | 453 |  |  | 444 |
Net income | $ | 1,683 |  |  | $ | 1,560 |
Net income available to common shareholders | $ | 1,609 |  |  | $ | 1,486 |
Weighted-average shares outstanding—during year: |  |  |
Basic | 938 |  |  | 936 |
Diluted | 940 |  |  | 942 |
Actual shares outstanding—end of period | 939 |  |  | 934 |
Earnings per common share: |  |  |
Basic | $ | 1.72 |  |  | $ | 1.59 |
Diluted | $ | 1.71 |  |  | $ | 1.58 |
Taxable-equivalent net interest income | $ | 4,127 |  |  | $ | 3,419 |

9

Regions Financial Corporation and Subsidiaries
Financial Supplement (unaudited) to Third Quarter 2023 Earnings Release
Consolidated Average Daily Balances and Yield/Rate Analysis

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

_______
(1) Amounts have been calculated using whole dollar values.
(2) Debt securities are included on an amortized cost basis with yield and net interest margin calculated accordingly.
(3) Interest income includes hedging expense of $73 million for the quarter ended September 30, 2023 and $29 million for the quarter ended June 30, 2023.
(4) Interest income includes hedging expense of $9 million for the quarter ended September 30, 2023 and $3 million for the quarter ended June 30, 2023.
(5) Total deposit costs may be calculated by dividing total interest expense on deposits by the sum of interest-bearing deposits and non-interest bearing deposits. The rates for total deposit costs equal 1.16% for the quarter ended September 30, 2023 and 0.83% for the quarter ended June 30, 2023.

10

Regions Financial Corporation and Subsidiaries
Financial Supplement (unaudited) to Third Quarter 2023 Earnings Release
Consolidated Average Daily Balances and Yield/Rate Analysis (continued)

| Quarter Ended
| 3/31/2023 |  | 12/31/2022 |  | 9/30/2022
($ amounts in millions; yields on taxable-equivalent basis) | Average Balance |  | Income/ Expense |  | Yield/ Rate (1) |  | Average Balance |  | Income/ Expense |  | Yield/ Rate (1) |  | Average Balance |  | Income/ Expense |  | Yield/ Rate (1)
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Earning assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Federal funds sold and securities purchased under agreements to resell | $ | — |  |  | $ | — |  |  | — | % |  | $ | 1 |  |  | $ | — |  |  | 3.56 | % |  | $ | 1 |  |  | $ | — |  |  | 2.43 | %
Debt securities (2)(3) | 32,044 |  |  | 187 |  |  | 2.33 |  |  | 32,213 |  |  | 222 |  |  | 2.75 |  |  | 32,101 |  |  | 171 |  |  | 2.12 |
Loans held for sale | 389 |  |  | 7 |  |  | 7.23 |  |  | 537 |  |  | 9 |  |  | 6.53 |  |  | 539 |  |  | 8 |  |  | 6.09 |
Loans, net of unearned income: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial (4) | 51,158 |  |  | 763 |  |  | 6.02 |  |  | 50,135 |  |  | 647 |  |  | 5.10 |  |  | 49,120 |  |  | 549 |  |  | 4.42 |
Commercial real estate mortgage—owner-occupied (5) | 5,013 |  |  | 61 |  |  | 4.88 |  |  | 5,073 |  |  | 55 |  |  | 4.27 |  |  | 5,167 |  |  | 56 |  |  | 4.20 |
Commercial real estate construction—owner-occupied | 292 |  |  | 4 |  |  | 5.26 |  |  | 289 |  |  | 4 |  |  | 4.96 |  |  | 274 |  |  | 3 |  |  | 4.53 |
Commercial investor real estate mortgage | 6,444 |  |  | 100 |  |  | 6.23 |  |  | 6,406 |  |  | 89 |  |  | 5.43 |  |  | 6,115 |  |  | 64 |  |  | 4.06 |
Commercial investor real estate construction | 1,960 |  |  | 35 |  |  | 7.09 |  |  | 1,884 |  |  | 30 |  |  | 6.24 |  |  | 1,764 |  |  | 22 |  |  | 4.77 |
Residential first mortgage | 18,957 |  |  | 161 |  |  | 3.40 |  |  | 18,595 |  |  | 155 |  |  | 3.33 |  |  | 18,125 |  |  | 147 |  |  | 3.24 |
Home equity | 5,921 |  |  | 88 |  |  | 5.93 |  |  | 6,017 |  |  | 81 |  |  | 5.31 |  |  | 6,050 |  |  | 68 |  |  | 4.49 |
Consumer credit card | 1,214 |  |  | 45 |  |  | 14.93 |  |  | 1,207 |  |  | 44 |  |  | 14.34 |  |  | 1,176 |  |  | 40 |  |  | 13.79 |
Other consumer—exit portfolios | 527 |  |  | 8 |  |  | 6.20 |  |  | 613 |  |  | 9 |  |  | 6.07 |  |  | 716 |  |  | 10 |  |  | 5.72 |
Other consumer | 5,791 |  |  | 108 |  |  | 7.56 |  |  | 5,533 |  |  | 107 |  |  | 7.77 |  |  | 6,177 |  |  | 125 |  |  | 8.03 |
Total loans, net of unearned income | 97,277 |  |  | 1,373 |  |  | 5.68 |  |  | 95,752 |  |  | 1,221 |  |  | 5.05 |  |  | 94,684 |  |  | 1,084 |  |  | 4.53 |
Interest-bearing deposits in other banks | 6,508 |  |  | 72 |  |  | 4.49 |  |  | 10,600 |  |  | 100 |  |  | 3.74 |  |  | 14,353 |  |  | 81 |  |  | 2.25 |
Other earning assets | 1,340 |  |  | 15 |  |  | 4.70 |  |  | 1,380 |  |  | 13 |  |  | 3.76 |  |  | 1,379 |  |  | 11 |  |  | 3.34 |
Total earning assets | 137,558 |  |  | 1,654 |  |  | 4.84 |  |  | 140,483 |  |  | 1,565 |  |  | 4.42 |  |  | 143,057 |  |  | 1,355 |  |  | 3.76 |
Unrealized gains/(losses) on debt securities available for sale, net (2) | (3,081) |  |  |  |  |  |  | (3,582) |  |  |  |  |  |  | (2,389) |  |  |  |  |
Allowance for loan losses | (1,427) |  |  |  |  |  |  | (1,447) |  |  |  |  |  |  | (1,432) |  |  |  |  |
Cash and due from banks | 2,360 |  |  |  |  |  |  | 2,406 |  |  |  |  |  |  | 2,291 |  |  |  |  |
Other non-earning assets | 17,672 |  |  |  |  |  |  | 17,808 |  |  |  |  |  |  | 16,895 |  |  |  |  |
| $ | 153,082 |  |  |  |  |  |  | $ | 155,668 |  |  |  |  |  |  | $ | 158,422 |  |  |  |  |
Liabilities and Shareholders’ Equity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest-bearing liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Savings | $ | 15,418 |  |  | 4 |  |  | 0.11 |  |  | $ | 15,840 |  |  | 4 |  |  | 0.10 |  |  | $ | 16,176 |  |  | 5 |  |  | 0.11 |
Interest-bearing checking | 24,697 |  |  | 54 |  |  | 0.89 |  |  | 25,379 |  |  | 42 |  |  | 0.65 |  |  | 26,665 |  |  | 22 |  |  | 0.33 |
Money market | 32,522 |  |  | 91 |  |  | 1.13 |  |  | 33,219 |  |  | 57 |  |  | 0.69 |  |  | 31,520 |  |  | 17 |  |  | 0.22 |
Time deposits | 6,813 |  |  | 30 |  |  | 1.80 |  |  | 5,462 |  |  | 11 |  |  | 0.80 |  |  | 5,351 |  |  | 6 |  |  | 0.45 |
Total interest-bearing deposits (6) | 79,450 |  |  | 179 |  |  | 0.91 |  |  | 79,900 |  |  | 114 |  |  | 0.57 |  |  | 79,712 |  |  | 50 |  |  | 0.25 |
Federal funds purchased and securities sold under agreements to repurchase | — |  |  | — |  |  | — |  |  | 39 |  |  | — |  |  | 3.73 |  |  | — |  |  | — |  |  | — |
Short-term borrowings | 400 |  |  | 5 |  |  | 4.92 |  |  | — |  |  | — |  |  | — |  |  | 30 |  |  | — |  |  | 0.23 |
Long-term borrowings | 2,286 |  |  | 40 |  |  | 6.91 |  |  | 2,275 |  |  | 37 |  |  | 6.38 |  |  | 2,319 |  |  | 31 |  |  | 5.39 |
Total interest-bearing liabilities | 82,136 |  |  | 224 |  |  | 1.10 |  |  | 82,214 |  |  | 151 |  |  | 0.73 |  |  | 82,061 |  |  | 81 |  |  | 0.39 |
Non-interest-bearing deposits (6) | 49,592 |  |  | — |  |  | — |  |  | 53,107 |  |  | — |  |  | — |  |  | 55,806 |  |  | — |  |  | — |
Total funding sources | 131,728 |  |  | 224 |  |  | 0.69 |  |  | 135,321 |  |  | 151 |  |  | 0.44 |  |  | 137,867 |  |  | 81 |  |  | 0.23 |
Net interest spread (2) |  |  |  |  | 3.73 |  |  |  |  |  |  | 3.69 |  |  |  |  |  |  | 3.36 |
Other liabilities | 4,891 |  |  |  |  |  |  | 4,904 |  |  |  |  |  |  | 4,082 |  |  |  |  |
Shareholders’ equity | 16,457 |  |  |  |  |  |  | 15,442 |  |  |  |  |  |  | 16,473 |  |  |  |  |
Noncontrolling interest | 6 |  |  |  |  |  |  | 1 |  |  |  |  |  |  | — |  |  |  |  |
| $ | 153,082 |  |  |  |  |  |  | $ | 155,668 |  |  |  |  |  |  | $ | 158,422 |  |  |  |  |
Net interest income/margin FTE basis (2) |  |  | $ | 1,430 |  |  | 4.22 | % |  |  |  | $ | 1,414 |  |  | 3.99 | % |  |  |  | $ | 1,274 |  |  | 3.53 | %

_______
(1) Amounts have been calculated using whole dollar values.
(2) Debt securities are included on an amortized cost basis with yield and net interest margin calculated accordingly.
(3) Interest income includes hedging income of $40 million for the quarter ended December 31, 2022. Hedging income for the quarter ended December 31, 2022 reflects strategies designed to accelerate hedge notional maturities through the use of pay-fixed swaps. Benefits migrated from securities to loans in the first quarter of 2023.
(4) Interest income includes hedging expense of $13 million for the quarter ended March 31, 2023, $43 million for the quarter ended December 31, 2022, and none for the quarter ended September 30, 2022.
(5) Interest income includes hedging expense of $2 million for the quarter ended March 31, 2023, $5 million for the quarter ended December 31, 2022, and none for the quarter ended September 30, 2022.
(6) Total deposit costs may be calculated by dividing total interest expense on deposits by the sum of interest-bearing deposits and non-interest bearing deposits. The rates for total deposit costs equal 0.56% for the quarter ended March 31, 2023, 0.34% for the quarter ended December 31, 2022 and 0.15% for the quarter ended September 30, 2022.

11

Regions Financial Corporation and Subsidiaries
Financial Supplement (unaudited) to Third Quarter 2023 Earnings Release
Pre-Tax Pre-Provision Income ("PPI") and Adjusted PPI (non-GAAP)
The Pre-Tax Pre-Provision Income tables below present computations of pre-tax pre-provision income excluding certain adjustments (non-GAAP). Regions believes that the presentation of PPI and the exclusion of certain items from PPI provides a meaningful base for period-to-period comparisons, which management believes will assist investors in analyzing the operating results of the Company and predicting future performance. These non-GAAP financial measures are also used by management to assess the performance of Regions’ business. It is possible that the activities related to the adjustments may recur; however, management does not consider the activities related to the adjustments to be indications of ongoing operations.

| Quarter Ended
($ amounts in millions) | 9/30/2023 |  | 6/30/2023 |  | 3/31/2023 |  | 12/31/2022 |  | 9/30/2022 |  | 3Q23 vs. 2Q23 |  | 3Q23 vs. 3Q22
Net income available to common shareholders (GAAP) | $ | 465 |  |  | $ | 556 |  |  | $ | 588 |  |  | $ | 660 |  |  | $ | 404 |  |  | $ | (91) |  |  | (16.4) | % |  | $ | 61 |  |  | 15.1 | %
Preferred dividends (GAAP) | 25 |  |  | 25 |  |  | 24 |  |  | 25 |  |  | 25 |  |  | — |  |  | — | % |  | — |  |  | — | %
Income tax expense (GAAP) | 129 |  |  | 147 |  |  | 177 |  |  | 187 |  |  | 133 |  |  | (18) |  |  | (12.2) | % |  | (4) |  |  | (3.0) | %
Income before income taxes (GAAP) | 619 |  |  | 728 |  |  | 789 |  |  | 872 |  |  | 562 |  |  | (109) |  |  | (15.0) | % |  | 57 |  |  | 10.1 | %
Provision for credit losses (GAAP) | 145 |  |  | 118 |  |  | 135 |  |  | 112 |  |  | 135 |  |  | 27 |  |  | 22.9 | % |  | 10 |  |  | 7.4 | %
Pre-tax pre-provision income (non-GAAP) | 764 |  |  | 846 |  |  | 924 |  |  | 984 |  |  | 697 |  |  | (82) |  |  | (9.7) | % |  | 67 |  |  | 9.6 | %
Other adjustments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Securities (gains) losses, net | 1 |  |  | — |  |  | 2 |  |  | — |  |  | 1 |  |  | 1 |  |  | NM |  | — |  |  | — | %
Leveraged lease termination gains, net | — |  |  | — |  |  | (1) |  |  | — |  |  | — |  |  | — |  |  | NM |  | — |  |  | NM
Insurance proceeds (1) | — |  |  | — |  |  | — |  |  | (50) |  |  | — |  |  | — |  |  | NM |  | — |  |  | NM
Salaries and employee benefits—severance charges | 3 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 3 |  |  | NM |  | 3 |  |  | NM
Branch consolidation, property and equipment charges | 1 |  |  | 1 |  |  | 2 |  |  | 5 |  |  | 3 |  |  | — |  |  | — | % |  | (2) |  |  | (66.7) | %
Professional, legal and regulatory expenses (1) | — |  |  | — |  |  | — |  |  | — |  |  | 179 |  |  | — |  |  | NM |  | (179) |  |  | (100.0) | %
Total other adjustments | 5 |  |  | 1 |  |  | 3 |  |  | (45) |  |  | 183 |  |  | 4 |  |  | 400.0 | % |  | (178) |  |  | (97.3) | %
Adjusted pre-tax pre-provision income (non-GAAP) | $ | 769 |  |  | $ | 847 |  |  | $ | 927 |  |  | $ | 939 |  |  | $ | 880 |  |  | $ | (78) |  |  | (9.2) | % |  | $ | (111) |  |  | (12.6) | %

______
NM - Not meaningful
(1) In the third quarter of 2022, the Company settled a previously disclosed matter with the Consumer Financial Protection Bureau. The Company received an insurance reimbursement
related to the settlement in the fourth quarter of 2022.
12

Regions Financial Corporation and Subsidiaries
Financial Supplement (unaudited) to Third Quarter 2023 Earnings Release
Non-Interest Income

| Quarter Ended
($ amounts in millions) | 9/30/2023 |  | 6/30/2023 |  | 3/31/2023 |  | 12/31/2022 |  | 9/30/2022 |  | 3Q23 vs. 2Q23 |  | 3Q23 vs. 3Q22
Service charges on deposit accounts | $ | 142 |  |  | $ | 152 |  |  | $ | 155 |  |  | $ | 152 |  |  | $ | 156 |  |  | $ | (10) |  |  | (6.6) | % |  | $ | (14) |  |  | (9.0) | %
Card and ATM fees | 126 |  |  | 130 |  |  | 121 |  |  | 130 |  |  | 126 |  |  | (4) |  |  | (3.1) | % |  | — |  |  | — | %
Wealth management income | 112 |  |  | 110 |  |  | 112 |  |  | 108 |  |  | 108 |  |  | 2 |  |  | 1.8 | % |  | 4 |  |  | 3.7 | %
Capital markets income (1) | 64 |  |  | 68 |  |  | 42 |  |  | 61 |  |  | 93 |  |  | (4) |  |  | (5.9) | % |  | (29) |  |  | (31.2) | %
Mortgage income | 28 |  |  | 26 |  |  | 24 |  |  | 24 |  |  | 37 |  |  | 2 |  |  | 7.7 | % |  | (9) |  |  | (24.3) | %
Commercial credit fee income | 24 |  |  | 28 |  |  | 26 |  |  | 25 |  |  | 26 |  |  | (4) |  |  | (14.3) | % |  | (2) |  |  | (7.7) | %
Bank-owned life insurance | 20 |  |  | 19 |  |  | 17 |  |  | 17 |  |  | 15 |  |  | 1 |  |  | 5.3 | % |  | 5 |  |  | 33.3 | %
Market value adjustments on employee benefit assets (2) | 4 |  |  | — |  |  | (1) |  |  | (9) |  |  | (5) |  |  | 4 |  |  | NM |  | 9 |  |  | 180.0 | %
Securities gains (losses), net | (1) |  |  | — |  |  | (2) |  |  | — |  |  | (1) |  |  | (1) |  |  | NM |  | — |  |  | — | %
Insurance proceeds (3) | — |  |  | — |  |  | — |  |  | 50 |  |  | — |  |  | — |  |  | — | % |  | — |  |  | — | %
Other miscellaneous income | 47 |  |  | 43 |  |  | 40 |  |  | 42 |  |  | 50 |  |  | 4 |  |  | 9.3 | % |  | (3) |  |  | (6.0) | %
Total non-interest income | $ | 566 |  |  | $ | 576 |  |  | $ | 534 |  |  | $ | 600 |  |  | $ | 605 |  |  | $ | (10) |  |  | (1.7) | % |  | $ | (39) |  |  | (6.4) | %

Mortgage Income

| Quarter Ended
($ amounts in millions) | 9/30/2023 |  | 6/30/2023 |  | 3/31/2023 |  | 12/31/2022 |  | 9/30/2022 |  | 3Q23 vs. 2Q23 |  | 3Q23 vs. 3Q22
Production and sales | $ | 10 |  |  | $ | 18 |  |  | $ | 13 |  |  | $ | 11 |  |  | $ | 18 |  |  | $ | (8) |  |  | (44.4) | % |  | $ | (8) |  |  | (44.4) | %
Loan servicing | 42 |  |  | 39 |  |  | 38 |  |  | 42 |  |  | 40 |  |  | 3 |  |  | 7.7 | % |  | 2 |  |  | 5.0 | %
MSR and related hedge impact: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
MSRs fair value increase (decrease) due to change in valuation inputs or assumptions | 45 |  |  | 8 |  |  | (12) |  |  | — |  |  | 28 |  |  | 37 |  |  | 462.5 | % |  | 17 |  |  | 60.7 | %
MSRs hedge gain (loss) | (41) |  |  | (12) |  |  | 9 |  |  | (6) |  |  | (26) |  |  | (29) |  |  | (241.7) | % |  | (15) |  |  | (57.7) | %
MSRs change due to payment decay | (28) |  |  | (27) |  |  | (24) |  |  | (23) |  |  | (23) |  |  | (1) |  |  | (3.7) | % |  | (5) |  |  | (21.7) | %
MSR and related hedge impact | (24) |  |  | (31) |  |  | (27) |  |  | (29) |  |  | (21) |  |  | 7 |  |  | 22.6 | % |  | (3) |  |  | (14.3) | %
Total mortgage income | $ | 28 |  |  | $ | 26 |  |  | $ | 24 |  |  | $ | 24 |  |  | $ | 37 |  |  | $ | 2 |  |  | 7.7 | % |  | $ | (9) |  |  | (24.3) | %
Mortgage production - portfolio | $ | 762 |  |  | $ | 970 |  |  | $ | 580 |  |  | $ | 712 |  |  | $ | 997 |  |  | $ | (208) |  |  | (21.4) | % |  | $ | (235) |  |  | (23.6) | %
Mortgage production - agency/secondary market | 408 |  |  | 450 |  |  | 302 |  |  | 314 |  |  | 526 |  |  | (42) |  |  | (9.3) | % |  | (118) |  |  | (22.4) | %
Total mortgage production | $ | 1,170 |  |  | $ | 1,420 |  |  | $ | 882 |  |  | $ | 1,026 |  |  | $ | 1,523 |  |  | $ | (250) |  |  | (17.6) | % |  | $ | (353) |  |  | (23.2) | %
Mortgage production - purchased | 90.7 | % |  | 91.3 | % |  | 88.3 | % |  | 87.9 | % |  | 88.1 | % |  |  |  |  |  |  |  |
Mortgage production - refinanced | 9.3 | % |  | 8.7 | % |  | 11.7 | % |  | 12.1 | % |  | 11.9 | % |  |  |  |  |  |  |  |

Wealth Management Income

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

Capital Markets Income

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

_________
NM - Not Meaningful
(1)Capital markets income primarily relates to capital raising activities that includes debt securities underwriting and placement, loan syndication and placement, as well as foreign exchange, derivative and merger and acquisition advisory services.
(2)These market value adjustments relate to assets held for employee and director benefits that are offset within salaries and employee benefits expense and other non-interest expense.
(3)In the third quarter of 2022, the Company settled a previously disclosed matter with the Consumer Financial Protection Bureau. The Company received an insurance reimbursement related to the settlement in the fourth quarter of 2022.
(4)Total wealth management income presented above does not include the portion of service charges on deposit accounts and similar smaller dollar amounts that are also attributable to the wealth management segment.
(5)For the purposes of determining the fair value of customer derivatives, the Company considers the risk of nonperformance by counterparties, as well as the Company's own risk of nonperformance. The valuation adjustments above are reflective of the values associated with these considerations.
13

Regions Financial Corporation and Subsidiaries
Financial Supplement (unaudited) to Third Quarter 2023 Earnings Release
Non-Interest Income

($ amounts in millions) | Nine Months Ended |  | Year-to-Date Change 9/30/2023 vs. 9/30/2022
| 9/30/2023 |  | 9/30/2022 |  | Amount |  | Percent
Service charges on deposit accounts | $ | 449 |  |  | $ | 489 |  |  | $ | (40) |  |  | (8.2) | %
Card and ATM fees | 377 |  |  | 383 |  |  | (6) |  |  | (1.6) | %
Wealth management income | 334 |  |  | 311 |  |  | 23 |  |  | 7.4 | %
Capital markets income (1) | 174 |  |  | 278 |  |  | (104) |  |  | (37.4) | %
Mortgage income | 78 |  |  | 132 |  |  | (54) |  |  | (40.9) | %
Commercial credit fee income | 78 |  |  | 71 |  |  | 7 |  |  | 9.9 | %
Bank-owned life insurance | 56 |  |  | 45 |  |  | 11 |  |  | 24.4 | %
Market value adjustments on employee benefit assets (2) | 3 |  |  | (36) |  |  | 39 |  |  | 108.3 | %
Securities gains (losses), net | (3) |  |  | (1) |  |  | (2) |  |  | (200.0) | %
Other miscellaneous income | 130 |  |  | 157 |  |  | (27) |  |  | (17.2) | %
Total non-interest income | $ | 1,676 |  |  | $ | 1,829 |  |  | $ | (153) |  |  | (8.4) | %

Mortgage Income

| Nine Months Ended |  | Year-to-Date Change 9/30/2023 vs. 9/30/2022
($ amounts in millions) | 9/30/2023 |  | 9/30/2022 |  | Amount |  | Percent
Production and sales | $ | 41 |  |  | $ | 84 |  |  | $ | (43) |  |  | (51.2) | %
Loan servicing | 119 |  |  | 95 |  |  | 24 |  |  | 25.3 | %
MSR and related hedge impact: |  |  |  |  |  |  |
MSRs fair value increase (decrease) due to change in valuation inputs or assumptions | 41 |  |  | 127 |  |  | (86) |  |  | (67.7) | %
MSRs hedge gain (loss) | (44) |  |  | (119) |  |  | 75 |  |  | 63.0 | %
MSRs change due to payment decay | (79) |  |  | (55) |  |  | (24) |  |  | (43.6) | %
MSR and related hedge impact | (82) |  |  | (47) |  |  | (35) |  |  | (74.5) | %
Total mortgage income | $ | 78 |  |  | $ | 132 |  |  | $ | (54) |  |  | (40.9) | %
Mortgage production - portfolio | $ | 2,312 |  |  | $ | 3,295 |  |  | $ | (983) |  |  | (29.8) | %
Mortgage production - agency/secondary market | 1,160 |  |  | 2,025 |  |  | (865) |  |  | (42.7) | %
Total mortgage production | $ | 3,472 |  |  | $ | 5,320 |  |  | $ | (1,848) |  |  | (34.7) | %
Mortgage production - purchased | 90.3 | % |  | 78.5 | % |  |  |  |
Mortgage production - refinanced | 9.7 | % |  | 21.5 | % |  |  |  |

Wealth Management Income

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

Capital Markets Income

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

_________
NM - Not Meaningful
(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)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.
14

Regions Financial Corporation and Subsidiaries
Financial Supplement (unaudited) to Third Quarter 2023 Earnings Release
Non-Interest Expense

| Quarter Ended
($ amounts in millions) | 9/30/2023 |  | 6/30/2023 |  | 3/31/2023 |  | 12/31/2022 |  | 9/30/2022 |  | 3Q23 vs. 2Q23 |  | 3Q23 vs. 3Q22
Salaries and employee benefits | $ | 589 |  |  | $ | 603 |  |  | $ | 616 |  |  | $ | 604 |  |  | $ | 593 |  |  | $ | (14) |  |  | (2.3) | % |  | $ | (4) |  |  | (0.7) | %
Equipment and software expense | 107 |  |  | 101 |  |  | 102 |  |  | 102 |  |  | 98 |  |  | 6 |  |  | 5.9 | % |  | 9 |  |  | 9.2 | %
Net occupancy expense | 72 |  |  | 73 |  |  | 73 |  |  | 74 |  |  | 76 |  |  | (1) |  |  | (1.4) | % |  | (4) |  |  | (5.3) | %
Outside services | 39 |  |  | 42 |  |  | 39 |  |  | 41 |  |  | 40 |  |  | (3) |  |  | (7.1) | % |  | (1) |  |  | (2.5) | %
Marketing | 26 |  |  | 26 |  |  | 27 |  |  | 27 |  |  | 29 |  |  | — |  |  | — | % |  | (3) |  |  | (10.3) | %
Professional, legal and regulatory expenses | 27 |  |  | 20 |  |  | 19 |  |  | 23 |  |  | 199 |  |  | 7 |  |  | 35.0 | % |  | (172) |  |  | (86.4) | %
Credit/checkcard expenses | 16 |  |  | 15 |  |  | 14 |  |  | 14 |  |  | 13 |  |  | 1 |  |  | 6.7 | % |  | 3 |  |  | 23.1 | %
FDIC insurance assessments | 27 |  |  | 29 |  |  | 25 |  |  | 18 |  |  | 16 |  |  | (2) |  |  | (6.9) | % |  | 11 |  |  | 68.8 | %
Visa class B shares expense | 5 |  |  | 9 |  |  | 8 |  |  | 7 |  |  | 3 |  |  | (4) |  |  | (44.4) | % |  | 2 |  |  | 66.7 | %
Operational losses | 75 |  |  | 95 |  |  | 13 |  |  | 18 |  |  | 13 |  |  | (20) |  |  | (21.1) | % |  | 62 |  |  | 476.9 | %
Branch consolidation, property and equipment charges | 1 |  |  | 1 |  |  | 2 |  |  | 5 |  |  | 3 |  |  | — |  |  | — | % |  | (2) |  |  | (66.7) | %
Other miscellaneous expenses | 109 |  |  | 97 |  |  | 89 |  |  | 84 |  |  | 87 |  |  | 12 |  |  | 12.4 | % |  | 22 |  |  | 25.3 | %
Total non-interest expense | $ | 1,093 |  |  | $ | 1,111 |  |  | $ | 1,027 |  |  | $ | 1,017 |  |  | $ | 1,170 |  |  | $ | (18) |  |  | (1.6) | % |  | $ | (77) |  |  | (6.6) | %

| Nine Months Ended |  | Year-to-Date Change 9/30/2023 vs. 9/30/2022
($ amounts in millions) | 9/30/2023 |  | 9/30/2022 |  | Amount |  | Percent
Salaries and employee benefits | $ | 1,808 |  |  | $ | 1,714 |  |  | $ | 94 |  |  | 5.5 | %
Equipment and software expense | 310 |  |  | 290 |  |  | 20 |  |  | 6.9 | %
Net occupancy expense | 218 |  |  | 226 |  |  | (8) |  |  | (3.5) | %
Outside services | 120 |  |  | 116 |  |  | 4 |  |  | 3.4 | %
Marketing | 79 |  |  | 75 |  |  | 4 |  |  | 5.3 | %
Professional, legal and regulatory expenses | 66 |  |  | 240 |  |  | (174) |  |  | (72.5) | %
Credit/checkcard expenses | 45 |  |  | 52 |  |  | (7) |  |  | (13.5) | %
FDIC insurance assessments | 81 |  |  | 43 |  |  | 38 |  |  | 88.4 | %
Visa class B shares expense | 22 |  |  | 17 |  |  | 5 |  |  | 29.4 | %
Operational losses | 183 |  |  | 38 |  |  | 145 |  |  | 381.6 | %
Branch consolidation, property and equipment charges | 4 |  |  | (2) |  |  | 6 |  |  | 300.0 | %
Other miscellaneous expenses | 295 |  |  | 242 |  |  | 53 |  |  | 21.9 | %
Total non-interest expense | $ | 3,231 |  |  | $ | 3,051 |  |  | $ | 180 |  |  | 5.9 | %

_________
NM - Not Meaningful
15

Regions Financial Corporation and Subsidiaries
Financial Supplement (unaudited) to Third Quarter 2023 Earnings Release
Reconciliation of GAAP Financial Measures to non-GAAP Financial Measures
Adjusted Efficiency Ratios, Adjusted Fee Income Ratios, Adjusted Non-Interest Income/Expense, Adjusted Operating Leverage Ratios, and Adjusted Total Revenue
The tables below present computations of the efficiency ratio, which is a measure of productivity, generally calculated as non-interest expense divided by total revenue; and the fee income ratio, generally calculated as non-interest income divided by total revenue. Management uses these ratios to monitor performance and believes these measures provide meaningful information to investors. Non-interest expense (GAAP) is presented excluding certain adjustments to arrive at adjusted non-interest expense (non-GAAP), which is the numerator for the adjusted efficiency ratio. Non-interest income (GAAP) is presented excluding certain adjustments to arrive at adjusted non-interest income (non-GAAP), which is the numerator for the adjusted fee income ratio. Net interest income and non-interest income are added together to arrive at total revenue. Adjustments are made to arrive at adjusted total revenue (non-GAAP). Net interest income on a taxable-equivalent basis and non-interest income are added together to arrive at total revenue on a taxable-equivalent basis. Adjustments are made to arrive at adjusted total revenue on a taxable-equivalent basis (non-GAAP), which is the denominator for the adjusted fee income and adjusted efficiency ratios. Also presented is a computation of the adjusted operating leverage ratio (non-GAAP) which is the period to period percentage change in adjusted total revenue on a taxable-equivalent basis (non-GAAP) less the percentage change in adjusted non-interest expense (non-GAAP).

|  | Quarter Ended |  |  |
($ amounts in millions) |  | 9/30/2023 |  | 6/30/2023 |  | 3/31/2023 |  | 12/31/2022 |  | 9/30/2022 |  | 3Q23 vs. 2Q23 |  | 3Q23 vs. 3Q22 |  |  |
Non-interest expense (GAAP) | A | $ | 1,093 |  |  | $ | 1,111 |  |  | $ | 1,027 |  |  | $ | 1,017 |  |  | $ | 1,170 |  |  | $ | (18) |  |  | (1.6) | % |  | $ | (77) |  |  | (6.6) | % |  |  |
Adjustments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Branch consolidation, property and equipment charges |  | (1) |  |  | (1) |  |  | (2) |  |  | (5) |  |  | (3) |  |  | — |  |  | — | % |  | 2 |  |  | (66.7) | % |  |  |
Salaries and employee benefits—severance charges |  | (3) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (3) |  |  | NM |  | (3) |  |  | NM |  |  |
Professional, legal and regulatory expenses (1) |  | — |  |  | — |  |  | — |  |  | — |  |  | (179) |  |  | — |  |  | NM |  | 179 |  |  | (100.0) | % |  |  |
Adjusted non-interest expense (non-GAAP) | B | $ | 1,089 |  |  | $ | 1,110 |  |  | $ | 1,025 |  |  | $ | 1,012 |  |  | $ | 988 |  |  | $ | (21) |  |  | (1.9) | % |  | $ | 101 |  |  | 10.2 | % |  |  |
Net interest income (GAAP) | C | $ | 1,291 |  |  | $ | 1,381 |  |  | $ | 1,417 |  |  | $ | 1,401 |  |  | $ | 1,262 |  |  | $ | (90) |  |  | (6.5) | % |  | $ | 29 |  |  | 2.3 | % |  |  |
Taxable-equivalent adjustment |  | 13 |  |  | 12 |  |  | 13 |  |  | 13 |  |  | 12 |  |  | 1 |  |  | 8.3 | % |  | 1 |  |  | 8.3 | % |  |  |
Net interest income, taxable-equivalent basis | D | $ | 1,304 |  |  | $ | 1,393 |  |  | $ | 1,430 |  |  | $ | 1,414 |  |  | $ | 1,274 |  |  | $ | (89) |  |  | (6.4) | % |  | $ | 30 |  |  | 2.4 | % |  |  |
Non-interest income (GAAP) | E | $ | 566 |  |  | $ | 576 |  |  | $ | 534 |  |  | $ | 600 |  |  | $ | 605 |  |  | $ | (10) |  |  | (1.7) | % |  | $ | (39) |  |  | (6.4) | % |  |  |
Adjustments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Securities (gains) losses, net |  | 1 |  |  | — |  |  | 2 |  |  | — |  |  | 1 |  |  | 1 |  |  | NM |  | — |  |  | — | % |  |  |
Leveraged lease termination gains |  | — |  |  | — |  |  | (1) |  |  | — |  |  | — |  |  | — |  |  | NM |  | — |  |  | NM |  |  |
Insurance proceeds (1) |  | — |  |  | — |  |  | — |  |  | (50) |  |  | — |  |  | — |  |  | NM |  | — |  |  | NM |  |  |
Adjusted non-interest income (non-GAAP) | F | $ | 567 |  |  | $ | 576 |  |  | $ | 535 |  |  | $ | 550 |  |  | $ | 606 |  |  | $ | (9) |  |  | (1.6) | % |  | $ | (39) |  |  | (6.4) | % |  |  |
Total revenue | C+E=G | $ | 1,857 |  |  | $ | 1,957 |  |  | $ | 1,951 |  |  | $ | 2,001 |  |  | $ | 1,867 |  |  | $ | (100) |  |  | (5.1) | % |  | $ | (10) |  |  | (0.5) | % |  |  |
Adjusted total revenue (non-GAAP) | C+F=H | $ | 1,858 |  |  | $ | 1,957 |  |  | $ | 1,952 |  |  | $ | 1,951 |  |  | $ | 1,868 |  |  | $ | (99) |  |  | (5.1) | % |  | $ | (10) |  |  | (0.5) | % |  |  |
Total revenue, taxable-equivalent basis | D+E=I | $ | 1,870 |  |  | $ | 1,969 |  |  | $ | 1,964 |  |  | $ | 2,014 |  |  | $ | 1,879 |  |  | $ | (99) |  |  | (5.0) | % |  | $ | (9) |  |  | (0.5) | % |  |  |
Adjusted total revenue, taxable-equivalent basis (non-GAAP) | D+F=J | $ | 1,871 |  |  | $ | 1,969 |  |  | $ | 1,965 |  |  | $ | 1,964 |  |  | $ | 1,880 |  |  | $ | (98) |  |  | (5.0) | % |  | $ | (9) |  |  | (0.5) | % |  |  |
Efficiency ratio (GAAP) (2) | A/I | 58.5 | % |  | 56.4 | % |  | 52.3 | % |  | 50.5 | % |  | 62.3 | % |  |  |  |  |  |  |  |  |  |  |
Adjusted efficiency ratio (non-GAAP) (2) | B/J | 58.2 | % |  | 56.4 | % |  | 52.2 | % |  | 51.6 | % |  | 52.6 | % |  |  |  |  |  |  |  |  |  |  |
Fee income ratio (GAAP) (2) | E/I | 30.3 | % |  | 29.3 | % |  | 27.2 | % |  | 29.8 | % |  | 32.2 | % |  |  |  |  |  |  |  |  |  |  |
Adjusted fee income ratio (non-GAAP) (2) | F/J | 30.3 | % |  | 29.3 | % |  | 27.2 | % |  | 28.0 | % |  | 32.2 | % |  |  |  |  |  |  |  |  |  |  |

________
NM - Not Meaningful
(1)In the third quarter of 2022, the Company settled a previously disclosed matter with the Consumer Financial Protection Bureau. The Company received an insurance reimbursement related to the settlement in the fourth quarter of 2022.
(2)Amounts have been calculated using whole dollar values.
16

Regions Financial Corporation and Subsidiaries
Financial Supplement (unaudited) to Third Quarter 2023 Earnings Release
Reconciliation of GAAP Financial Measures to non-GAAP Financial Measures
Adjusted Efficiency Ratios, Adjusted Fee Income Ratios, Adjusted Non-Interest Income/Expense, Adjusted Operating Leverage Ratios, and Adjusted Total Revenue (continued)

|  | Nine Months Ended September 30
($ amounts in millions) |  | 2023 |  | 2022 |  | 2023 vs. 2022
Non-interest expense (GAAP) | A | $ | 3,231 |  |  | $ | 3,051 |  |  | $ | 180 |  |  | 5.9 | %
Adjustments: |  |  |  |  |  |  |  |
Branch consolidation, property and equipment charges |  | (4) |  |  | 2 |  |  | (6) |  |  | (300.0) | %
Salaries and employee benefits—severance charges |  | (3) |  |  | — |  |  | (3) |  |  | NM
Professional, legal and regulatory expenses (1) |  | — |  |  | (179) |  |  | 179 |  |  | 100.0 | %
Adjusted non-interest expense (non-GAAP) | B | $ | 3,224 |  |  | $ | 2,874 |  |  | $ | 350 |  |  | 12.2 | %
Net interest income (GAAP) | C | $ | 4,089 |  |  | $ | 3,385 |  |  | $ | 704 |  |  | 20.8 | %
Taxable-equivalent adjustment |  | 38 |  |  | 34 |  |  | 4 |  |  | 11.8 | %
Net interest income, taxable-equivalent basis | D | $ | 4,127 |  |  | $ | 3,419 |  |  | $ | 708 |  |  | 20.7 | %
Non-interest income (GAAP) | E | $ | 1,676 |  |  | $ | 1,829 |  |  | $ | (153) |  |  | (8.4) | %
Adjustments: |  |  |  |  |  |  |  |
Securities (gains) losses, net |  | 3 |  |  | 1 |  |  | 2 |  |  | (200.0) | %
Leveraged lease termination gains |  | (1) |  |  | (1) |  |  | — |  |  | — | %
Adjusted non-interest income (non-GAAP) | F | $ | 1,678 |  |  | $ | 1,829 |  |  | $ | (151) |  |  | (8.3) | %
Total revenue | C+E= G | $ | 5,765 |  |  | $ | 5,214 |  |  | $ | 551 |  |  | 10.6 | %
Adjusted total revenue (non-GAAP) | C+F=H | $ | 5,767 |  |  | $ | 5,214 |  |  | $ | 553 |  |  | 10.6 | %
Total revenue, taxable-equivalent basis | D+E=I | $ | 5,803 |  |  | $ | 5,248 |  |  | $ | 555 |  |  | 10.6 | %
Adjusted total revenue, taxable-equivalent basis (non-GAAP) | D+F=J | $ | 5,805 |  |  | $ | 5,248 |  |  | $ | 557 |  |  | 10.6 | %
Operating leverage ratio (GAAP) (2) | I-A |  |  |  |  |  |  | 4.7 | %
Adjusted operating leverage ratio (non-GAAP) (2) | J-B |  |  |  |  |  |  | (1.6) | %
Efficiency ratio (GAAP) (2) | A/I | 55.7 | % |  | 58.1 | % |  |  |  |
Adjusted efficiency ratio (non-GAAP) (2) | B/J | 55.5 | % |  | 54.8 | % |  |  |  |
Fee income ratio (GAAP) (2) | E/I | 28.9 | % |  | 34.9 | % |  |  |  |
Adjusted fee income ratio (non-GAAP) (2) | F/J | 28.9 | % |  | 34.8 | % |  |  |  |

______
NM - Not Meaningful
(1)This adjustment relates to the settlement of a previously disclosed matter with the Consumer Financial Protection Bureau.
(2)Amounts have been calculated using whole dollar values.
17

Regions Financial Corporation and Subsidiaries
Financial Supplement (unaudited) to Third Quarter 2023 Earnings Release
Reconciliation of GAAP Financial Measures to non-GAAP Financial Measures
Return Ratios
The table below provides a calculation of “return on average tangible common shareholders’ equity” (non-GAAP). Tangible common shareholders’ equity ratios have become a focus of some investors and management believes they may assist investors in analyzing the capital position of the Company absent the effects of intangible assets and preferred stock. Analysts and banking regulators have assessed Regions’ capital adequacy using the tangible common shareholders’ equity measure. Because tangible common shareholders’ equity is not formally defined by GAAP or prescribed in any amount by federal banking regulations it is currently considered to be a non-GAAP financial measure and other entities may calculate it differently than Regions’ disclosed calculations. In calculating return on average tangible common shareholders' equity Regions makes adjustments to shareholders' equity including average intangible assets and related deferred taxes, average preferred stock and average accumulated other comprehensive income (AOCI). Since analysts and banking regulators may assess Regions’ capital adequacy using tangible common shareholders’ equity, management believes that it is useful to provide investors the ability to assess Regions’ capital adequacy on this same basis.

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

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

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

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

____
(1)Amounts have been calculated using whole dollar values.
18

Regions Financial Corporation and Subsidiaries
Financial Supplement (unaudited) to Third Quarter 2023 Earnings Release
Credit Quality

| As of and for Quarter Ended
($ amounts in millions) | 9/30/2023 |  | 6/30/2023 |  | 3/31/2023 |  | 12/31/2022 |  | 9/30/2022
Components: |  |  |  |  |  |  |  |  |
Beginning allowance for loan losses (ALL) | $ | 1,513 |  |  | $ | 1,472 |  |  | $ | 1,464 |  |  | $ | 1,418 |  |  | $ | 1,425 |
Cumulative change in accounting guidance (1) | — |  |  | — |  |  | (38) |  |  | — |  |  | — |
Beginning allowance for loan losses (ALL), as adjusted for change in accounting guidance | $ | 1,513 |  |  | $ | 1,472 |  |  | $ | 1,426 |  |  | $ | 1,418 |  |  | $ | 1,425 |
Loans charged-off: |  |  |  |  |  |  |  |  |
Commercial and industrial | 53 |  |  | 52 |  |  | 49 |  |  | 38 |  |  | 20 |
Commercial real estate mortgage—owner-occupied | 1 |  |  | — |  |  | — |  |  | 1 |  |  | — |
Total commercial | 54 |  |  | 52 |  |  | 49 |  |  | 39 |  |  | 20 |
Commercial investor real estate mortgage | — |  |  | — |  |  | — |  |  | 5 |  |  | — |
Total investor real estate | — |  |  | — |  |  | — |  |  | 5 |  |  | — |
Residential first mortgage | — |  |  | 1 |  |  | — |  |  | — |  |  | 1 |
Home equity—lines of credit | 1 |  |  | 1 |  |  | 1 |  |  | 1 |  |  | 2 |
Home equity—closed-end | 1 |  |  | — |  |  | — |  |  | — |  |  | — |
Consumer credit card | 14 |  |  | 12 |  |  | 12 |  |  | 11 |  |  | 9 |
Other consumer—exit portfolios | 3 |  |  | 3 |  |  | 5 |  |  | 4 |  |  | 4 |
Other consumer (2) | 51 |  |  | 43 |  |  | 38 |  |  | 33 |  |  | 99 |
Total consumer | 70 |  |  | 60 |  |  | 56 |  |  | 49 |  |  | 115 |
Total | 124 |  |  | 112 |  |  | 105 |  |  | 93 |  |  | 135 |
Recoveries of loans previously charged-off: |  |  |  |  |  |  |  |  |
Commercial and industrial | 12 |  |  | 21 |  |  | 10 |  |  | 10 |  |  | 12 |
Commercial real estate mortgage—owner-occupied | 1 |  |  | — |  |  | — |  |  | 1 |  |  | 1 |
Total commercial | 13 |  |  | 21 |  |  | 10 |  |  | 11 |  |  | 13 |
Commercial investor real estate mortgage | — |  |  | — |  |  | — |  |  | 1 |  |  | — |
Total investor real estate | — |  |  | — |  |  | — |  |  | 1 |  |  | — |
Residential first mortgage | — |  |  | 1 |  |  | — |  |  | 1 |  |  | 1 |
Home equity—lines of credit | 1 |  |  | 2 |  |  | 3 |  |  | 3 |  |  | 2 |
Home equity—closed-end | 1 |  |  | — |  |  | — |  |  | — |  |  | — |
Consumer credit card | 3 |  |  | 1 |  |  | 2 |  |  | 2 |  |  | 2 |
Other consumer—exit portfolios | — |  |  | 1 |  |  | 1 |  |  | 1 |  |  | — |
Other consumer | 5 |  |  | 5 |  |  | 6 |  |  | 5 |  |  | 7 |
Total consumer | 10 |  |  | 10 |  |  | 12 |  |  | 12 |  |  | 12 |
Total | 23 |  |  | 31 |  |  | 22 |  |  | 24 |  |  | 25 |
Net charge-offs (recoveries): |  |  |  |  |  |  |  |  |
Commercial and industrial | 41 |  |  | 31 |  |  | 39 |  |  | 28 |  |  | 8 |
Commercial real estate mortgage—owner-occupied | — |  |  | — |  |  | — |  |  | — |  |  | (1) |
Total commercial | 41 |  |  | 31 |  |  | 39 |  |  | 28 |  |  | 7 |
Commercial investor real estate mortgage | — |  |  | — |  |  | — |  |  | 4 |  |  | — |
Total investor real estate | — |  |  | — |  |  | — |  |  | 4 |  |  | — |
Residential first mortgage | — |  |  | — |  |  | — |  |  | (1) |  |  | — |
Home equity—lines of credit | — |  |  | (1) |  |  | (2) |  |  | (2) |  |  | — |
Home equity—closed-end | — |  |  | — |  |  | — |  |  | — |  |  | — |
Consumer credit card | 11 |  |  | 11 |  |  | 10 |  |  | 9 |  |  | 7 |
Other consumer—exit portfolios | 3 |  |  | 2 |  |  | 4 |  |  | 3 |  |  | 4 |
Other consumer | 46 |  |  | 38 |  |  | 32 |  |  | 28 |  |  | 92 |
Total consumer | 60 |  |  | 50 |  |  | 44 |  |  | 37 |  |  | 103 |
Total | 101 |  |  | 81 |  |  | 83 |  |  | 69 |  |  | 110 |
Provision for loan losses (2) | 135 |  |  | 122 |  |  | 129 |  |  | 115 |  |  | 103 |
Ending allowance for loan losses (ALL) | 1,547 |  |  | 1,513 |  |  | 1,472 |  |  | 1,464 |  |  | 1,418 |
Beginning reserve for unfunded credit commitments | 120 |  |  | 124 |  |  | 118 |  |  | 121 |  |  | 89 |
Provision for (benefit from) unfunded credit losses | 10 |  |  | (4) |  |  | 6 |  |  | (3) |  |  | 32 |
Ending reserve for unfunded commitments | 130 |  |  | 120 |  |  | 124 |  |  | 118 |  |  | 121 |
Allowance for credit losses (ACL) at period end | $ | 1,677 |  |  | $ | 1,633 |  |  | $ | 1,596 |  |  | $ | 1,582 |  |  | $ | 1,539 |

19

Regions Financial Corporation and Subsidiaries
Financial Supplement (unaudited) to Third Quarter 2023 Earnings Release

Credit Quality (continued) |  |  |  |  |  |  |  |  |
| As of and for Quarter Ended
($ amounts in millions) | 9/30/2023 |  | 6/30/2023 |  | 3/31/2023 |  | 12/31/2022 |  | 9/30/2022
Net loan charge-offs as a % of average loans, annualized (3): |  |  |  |  |  |  |  |  |
Commercial and industrial | 0.31 | % |  | 0.24 | % |  | 0.31 | % |  | 0.22 | % |  | 0.07 | %
Commercial real estate mortgage—owner-occupied | 0.04 | % |  | 0.01 | % |  | (0.02) | % |  | (0.02) | % |  | (0.06) | %
Commercial real estate construction—owner-occupied | (0.01) | % |  | (0.27) | % |  | (0.05) | % |  | (0.02) | % |  | (0.08) | %
Total commercial | 0.29 | % |  | 0.22 | % |  | 0.28 | % |  | 0.19 | % |  | 0.06 | %
Commercial investor real estate mortgage | (0.01) | % |  | — | % |  | — | % |  | 0.27 | % |  | (0.01) | %
Commercial investor real estate construction | — | % |  | (0.04) | % |  | — | % |  | (0.01) | % |  | — | %
Total investor real estate | — | % |  | (0.01) | % |  | — | % |  | 0.21 | % |  | (0.01) | %
Residential first mortgage | — | % |  | — | % |  | — | % |  | (0.03) | % |  | (0.01) | %
Home equity—lines of credit | (0.07) | % |  | (0.08) | % |  | (0.22) | % |  | (0.22) | % |  | (0.08) | %
Home equity—closed-end | (0.02) | % |  | — | % |  | (0.03) | % |  | (0.02) | % |  | (0.09) | %
Consumer credit card | 3.48 | % |  | 3.38 | % |  | 3.47 | % |  | 2.94 | % |  | 2.39 | %
Other consumer—exit portfolios | 3.14 | % |  | 2.56 | % |  | 2.69 | % |  | 2.46 | % |  | 2.13 | %
Other consumer (2) | 2.99 | % |  | 2.55 | % |  | 2.26 | % |  | 2.08 | % |  | 5.92 | %
Total consumer | 0.71 | % |  | 0.62 | % |  | 0.55 | % |  | 0.48 | % |  | 1.25 | %
Total | 0.40 | % |  | 0.33 | % |  | 0.35 | % |  | 0.29 | % |  | 0.46 | %
Non-performing loans, excluding loans held for sale | $ | 642 |  |  | $ | 492 |  |  | $ | 554 |  |  | $ | 500 |  |  | $ | 495 |
Non-performing loans held for sale | 2 |  |  | 1 |  |  | 1 |  |  | 3 |  |  | 2 |
Non-performing loans, including loans held for sale | 644 |  |  | 493 |  |  | 555 |  |  | 503 |  |  | 497 |
Foreclosed properties | 15 |  |  | 15 |  |  | 15 |  |  | 13 |  |  | 14 |
Non-performing assets (NPAs) | $ | 659 |  |  | $ | 508 |  |  | $ | 570 |  |  | $ | 516 |  |  | $ | 511 |
Loans past due > 90 days (4) | $ | 140 |  |  | $ | 131 |  |  | $ | 128 |  |  | $ | 208 |  |  | $ | 105 |
Criticized loans—business (5) | $ | 4,167 |  |  | $ | 4,039 |  |  | $ | 3,725 |  |  | $ | 3,149 |  |  | $ | 2,771 |
Credit Ratios (3): |  |  |  |  |  |  |  |  |
ACL/Loans, net | 1.70 | % |  | 1.65 | % |  | 1.63 | % |  | 1.63 | % |  | 1.63 | %
ALL/Loans, net | 1.56 | % |  | 1.53 | % |  | 1.50 | % |  | 1.51 | % |  | 1.50 | %
Allowance for credit losses to non-performing loans, excluding loans held for sale | 261 | % |  | 332 | % |  | 288 | % |  | 317 | % |  | 311 | %
Allowance for loan losses to non-performing loans, excluding loans held for sale | 241 | % |  | 308 | % |  | 266 | % |  | 293 | % |  | 287 | %
Non-performing loans, excluding loans held for sale/Loans, net | 0.65 | % |  | 0.50 | % |  | 0.56 | % |  | 0.52 | % |  | 0.52 | %
NPAs (ex. 90+ past due)/Loans, foreclosed properties, and non-performing loans held for sale | 0.67 | % |  | 0.51 | % |  | 0.58 | % |  | 0.53 | % |  | 0.54 | %
NPAs (inc. 90+ past due)/Loans, foreclosed properties, and non-performing loans held for sale (4) | 0.81 | % |  | 0.64 | % |  | 0.71 | % |  | 0.75 | % |  | 0.65 | %

(1)Regions adopted accounting guidance on January 1, 2023 that removed the definition of troubled debt restructurings and replaced it with modifications to borrowers experiencing financial difficulty. The Company recorded the cumulative effect of the change in accounting guidance as an increase in retained earnings and a reduction in deferred tax assets.
(2)At the end of the third quarter of 2022, the Company sold certain unsecured consumer loans with an associated allowance of $94 million at the time of the sale. As shown in the table below, there was a $63 million fair value mark recorded through charge-offs, which resulted in a net provision benefit of $31 million associated with the sale.
(3)Amounts have been calculated using whole dollar values.
(4)Excludes guaranteed residential first mortgages that are 90+ days past due and still accruing. Refer to the footnotes on page 21 for amounts related to these loans.
(5)Business represents the combined total of commercial and investor real estate loans.

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

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

(1)Amounts have been calculated using whole dollar values.
20

Regions Financial Corporation and Subsidiaries
Financial Supplement (unaudited) to Third Quarter 2023 Earnings Release
Non-Performing Loans (excludes loans held for sale)

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

Early and Late Stage Delinquencies

Accruing 30-89 Days Past Due Loans | As of |
($ amounts in millions, %'s calculated using whole dollar values) | 9/30/2023 |  | 6/30/2023 |  | 3/31/2023 |  | 12/31/2022 |  | 9/30/2022 |
Commercial and industrial | $ | 52 |  |  | 0.10 | % |  | $ | 55 |  |  | 0.10 | % |  | $ | 47 |  |  | 0.09 | % |  | $ | 56 |  |  | 0.11 | % |  | $ | 77 |  |  | 0.16 | % |
Commercial real estate mortgage—owner-occupied | 7 |  |  | 0.14 | % |  | 4 |  |  | 0.09 | % |  | 7 |  |  | 0.14 | % |  | 9 |  |  | 0.18 | % |  | 5 |  |  | 0.09 | % |
Total commercial | 59 |  |  | 0.10 | % |  | 59 |  |  | 0.10 | % |  | 54 |  |  | 0.09 | % |  | 65 |  |  | 0.12 | % |  | 82 |  |  | 0.15 | % |
Commercial investor real estate mortgage | 115 |  |  | 1.78 | % |  | 1 |  |  | 0.01 | % |  | 1 |  |  | 0.01 | % |  | — |  |  | — | % |  | 1 |  |  | — | % |
Total investor real estate | 115 |  |  | 1.31 | % |  | 1 |  |  | 0.01 | % |  | 1 |  |  | 0.01 | % |  | — |  |  | — | % |  | 1 |  |  | — | % |
Residential first mortgage—non-guaranteed (1) | 95 |  |  | 0.48 | % |  | 83 |  |  | 0.42 | % |  | 74 |  |  | 0.39 | % |  | 86 |  |  | 0.47 | % |  | 85 |  |  | 0.47 | % |
Home equity—lines of credit | 33 |  |  | 1.02 | % |  | 28 |  |  | 0.85 | % |  | 28 |  |  | 0.83 | % |  | 30 |  |  | 0.85 | % |  | 20 |  |  | 0.58 | % |
Home equity—closed-end | 11 |  |  | 0.46 | % |  | 10 |  |  | 0.43 | % |  | 10 |  |  | 0.38 | % |  | 11 |  |  | 0.44 | % |  | 11 |  |  | 0.44 | % |
Consumer credit card | 18 |  |  | 1.43 | % |  | 16 |  |  | 1.28 | % |  | 15 |  |  | 1.24 | % |  | 16 |  |  | 1.26 | % |  | 17 |  |  | 1.39 | % |
Other consumer—exit portfolios | 6 |  |  | 1.71 | % |  | 6 |  |  | 1.54 | % |  | 7 |  |  | 1.38 | % |  | 10 |  |  | 1.75 | % |  | 10 |  |  | 1.49 | % |
Other consumer | 80 |  |  | 1.30 | % |  | 79 |  |  | 1.32 | % |  | 69 |  |  | 1.18 | % |  | 67 |  |  | 1.18 | % |  | 49 |  |  | 0.93 | % |
Total consumer (1) | 243 |  |  | 0.85 | % |  | 222 |  |  | 0.78 | % |  | 203 |  |  | 0.74 | % |  | 220 |  |  | 0.82 | % |  | 192 |  |  | 0.73 | % |
Total accruing 30-89 days past due loans (1) | $ | 417 |  |  | 0.42 | % |  | $ | 282 |  |  | 0.29 | % |  | $ | 258 |  |  | 0.26 | % |  | $ | 285 |  |  | 0.29 | % |  | $ | 275 |  |  | 0.29 | % |
Accruing 90+ Days Past Due Loans | As of |
($ amounts in millions, %'s calculated using whole dollar values) | 9/30/2023 |  | 6/30/2023 |  | 3/31/2023 |  | 12/31/2022 |  | 9/30/2022 |
Commercial and industrial | $ | 13 |  |  | 0.02 | % |  | $ | 10 |  |  | 0.02 | % |  | $ | 23 |  |  | 0.04 | % |  | $ | 30 |  |  | 0.06 | % |  | $ | 4 |  |  | 0.01 | % |
Commercial real estate mortgage—owner-occupied | 1 |  |  | 0.01 | % |  | 1 |  |  | 0.02 | % |  | — |  |  | 0.01 | % |  | 1 |  |  | 0.02 | % |  | — |  |  | — | % |
Total commercial | 14 |  |  | 0.02 | % |  | 11 |  |  | 0.02 | % |  | 23 |  |  | 0.04 | % |  | 31 |  |  | 0.05 | % |  | 4 |  |  | 0.01 | % |
Commercial investor real estate mortgage | — |  |  | — | % |  | — |  |  | — | % |  | — |  |  | — | % |  | 40 |  |  | 0.63 | % |  | — |  |  | — | % |
Total investor real estate | — |  |  | — | % |  | — |  |  | — | % |  | — |  |  | — | % |  | 40 |  |  | 0.48 | % |  | — |  |  | — | % |
Residential first mortgage—non-guaranteed (2) | 58 |  |  | 0.30 | % |  | 53 |  |  | 0.28 | % |  | 47 |  |  | 0.25 | % |  | 47 |  |  | 0.26 | % |  | 50 |  |  | 0.28 | % |
Home equity—lines of credit | 16 |  |  | 0.49 | % |  | 19 |  |  | 0.56 | % |  | 17 |  |  | 0.50 | % |  | 15 |  |  | 0.44 | % |  | 17 |  |  | 0.47 | % |
Home equity—closed-end | 7 |  |  | 0.29 | % |  | 8 |  |  | 0.31 | % |  | 8 |  |  | 0.36 | % |  | 8 |  |  | 0.33 | % |  | 8 |  |  | 0.31 | % |
Consumer credit card | 17 |  |  | 1.37 | % |  | 15 |  |  | 1.26 | % |  | 15 |  |  | 1.20 | % |  | 15 |  |  | 1.19 | % |  | 13 |  |  | 1.12 | % |
Other consumer—exit portfolios | 1 |  |  | 0.18 | % |  | 1 |  |  | 0.18 | % |  | 1 |  |  | 0.18 | % |  | 1 |  |  | 0.19 | % |  | 1 |  |  | 0.20 | % |
Other consumer | 27 |  |  | 0.44 | % |  | 24 |  |  | 0.40 | % |  | 17 |  |  | 0.30 | % |  | 17 |  |  | 0.29 | % |  | 12 |  |  | 0.22 | % |
Total consumer (2) | 126 |  |  | 0.45 | % |  | 120 |  |  | 0.43 | % |  | 105 |  |  | 0.42 | % |  | 103 |  |  | 0.42 | % |  | 101 |  |  | 0.40 | % |
Total accruing 90+ days past due loans (2) | $ | 140 |  |  | 0.14 | % |  | $ | 131 |  |  | 0.13 | % |  | $ | 128 |  |  | 0.13 | % |  | $ | 174 |  |  | 0.18 | % |  | $ | 105 |  |  | 0.11 | % |
Total delinquencies (1) (2) | $ | 557 |  |  | 0.57 | % |  | $ | 413 |  |  | 0.42 | % |  | $ | 386 |  |  | 0.39 | % |  | $ | 459 |  |  | 0.47 | % |  | $ | 380 |  |  | 0.40 | % |

(1)Excludes loans that are 100% guaranteed by FHA and guaranteed loans sold to Ginnie Mae where Regions has the right but not the obligation to repurchase. Total 30-89 days past due guaranteed loans excluded were $43 million at 9/30/2023, $36 million at 6/30/2023, $37 million at 3/31/2023, $46 million at 12/31/2022, and $39 million at 9/30/2022.
(2)Excludes loans that are 100% guaranteed by FHA and all guaranteed loans sold to Ginnie Mae where Regions has the right but not the obligation to repurchase. Total 90 days or more past due guaranteed loans excluded were $23 million at 9/30/2023, $24 million at 6/30/2023, $30 million at 3/31/2023, $34 million at 12/31/2022, and $26 million at 9/30/2022.
21

Regions Financial Corporation and Subsidiaries
Financial Supplement (unaudited) to Third 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.
22

Regions Financial Corporation and Subsidiaries
Financial Supplement (unaudited) to Third 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.
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