rf-20230120

Exhibit 99.1

Media Contact:

Investor Relations Contact:

Jeremy King

Dana Nolan

(205) 264-4551

(205) 264-7040

Record Performance. A Firm Foundation for 2023. Regions reports 2022 earnings of $2.1 billion, earnings per diluted share of $2.28

$7.2 billion in total revenue reflects 12 percent year-over-year growth.

BIRMINGHAM, Ala. - (BUSINESS WIRE) - January 20, 2023 - Regions Financial Corp. (NYSE:RF) today reported earnings for the fourth quarter and full-year ended December 31, 2022. The company reported fourth quarter net income available to common shareholders of $660 million and earnings per diluted share of $0.70. For the full-year 2022, the company reported net income available to common shareholders of $2.1 billion and record pre-tax pre-provision income(1) of $3.1 billion. Compared to full-year 2021, total revenue increased 12 percent to a record $7.2 billion on both a reported and adjusted basis(1) driven by growth in net interest income. Strong revenue growth contributed to a 17 percent increase in pre-tax pre-provision income(1) on a reported basis and a 21 percent increase on an adjusted basis(1) compared to the prior year. The company generated full-year positive operating leverage of 3.5 percent on a reported basis and 6.6 percent on an adjusted basis(1).

"I want to congratulate and thank our 20,000 associates for their hard work and dedication throughout the year," said John Turner, President and CEO of Regions Financial Corp. "We have built a strong, diverse and inclusive team, and Regions' associates do a great job serving our customers and communities. Our associates volunteered over 62,000 hours in the communities we serve during 2022, and we, along with the Regions Foundation, continued to foster inclusive prosperity through more than $20 million in combined community giving."

Turner added, "Regions continued its focus on delivering consistent, sustainable financial performance, generating record pre-tax pre-provision income(1) for 2022. During the year, we continued to make banking easier for our customers and our associates through innovations and account enhancements that improve the customer experience and better enable our teams to deliver tailored financial solutions. Our strategic investments continue to provide opportunities to broaden and deepen relationships with our customers. Additionally, our attractive footprint, combined with our innovative and comprehensive product set, has supported continued customer acquisition and revenue growth while delivering benefits for all stakeholders. While uncertainty remains, we have deliberately positioned the company to withstand an array of economic conditions, and our strong performance in 2022 provides a solid foundation as we enter 2023."

SUMMARY OF FULL-YEAR AND FOURTH QUARTER 2022 RESULTS:


	Quarter Ended						Year Ended
(amounts in millions, except per share data)	12/31/2022		9/30/2022		12/31/2021		2022		2021
Net income	$	685	$	429	$	438	2,245		2,521
Preferred dividends and other	25		25		24		99		121
Net income available to common shareholders	$	660	$	404	$	414	$	2,146	$	2,400

Weighted-average diluted shares outstanding	941		940		958		942		963
Actual shares outstanding—end of period	934		934		942		934		942

Diluted earnings per common share	$	0.70	$	0.43	$	0.43	$	2.28	$	2.49

Selected items impacting earnings:
Pre-tax adjusted items(1):
Adjustments to non-interest expense(1)	$	(5)	$	(182)	$	(16)	$	(182)	$	(49)
Adjustments to non-interest income(1)	50		(1)		—		50		26
Net provision benefit from sale of unsecured consumer loans***	$	—	$	31	$	—	$	31	$	—
Total pre-tax adjusted items(1)	$	45	$	(152)	$	(16)	$	(101)	$	(23)




Diluted EPS impact*	$	0.03	$	(0.13)	$	(0.01)	$	(0.09)	$	(0.03)

Pre-tax additional selected items**:
CECL provision (in excess of) less than net charge-offs****	$	(62)	$	(36)	$	(66)	$	(38)	$	728
(Incremental provision) for and release of hurricane-related allowance for loan losses	20		(20)		—		—		—
Capital markets income - CVA/DVA	(11)		21		—		36		8
Residential MSR net hedge performance	(6)		2		(5)		2		(19)
PPP loan interest income*****	1		4		39		24		153



Pension settlement charges	(6)		—		(3)		(6)		(11)
Ginnie Mae re-securitization gains	—		—		—		12		—

* Based on income taxes at an approximate 25% incremental rate. The third quarter of 2022 adjustments to non-interest expense included $179 million associated with a regulatory settlement. A civil monetary penalty of $50 million was included in the settlement amount that was not tax deductible.

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

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

**** The third quarter of 2022 CECL provision (in excess of) less than net charge-offs excludes the $31 million net provision benefit from the sale of unsecured consumer loans and both the third and fourth quarters of 2022 also exclude the $20 million provision for and subsequent release of hurricane-related allowance for loan losses.

***** Interest income for the Small Business Administration's Paycheck Protection Program (PPP) loans includes estimated funding costs.

Non-GAAP adjusted items(1) impacting the company's earnings are identified to assist investors in analyzing Regions' operating results on the same basis as that applied by management and provide a basis to predict future performance. Non-GAAP adjusted items(1) for full-year 2022 include $179 million in professional, legal and regulatory fees associated with a third quarter settlement with the Consumer Financial Protection Bureau regarding one type of overdraft fee the company discontinued in 2021. The third quarter settlement was partially mitigated by a $50 million insurance reimbursement received and included in non-interest income in the fourth quarter. Full-year adjusted items also include a $31 million net provision benefit from the sale of certain unsecured consumer loans in the third quarter.

Total revenue


	Quarter Ended
($ amounts in millions)	12/31/2022			9/30/2022			12/31/2021			4Q22 vs. 3Q22				4Q22 vs. 4Q21
Net interest income	$	1,401		$	1,262		$	1,019		$	139	11.0	%	$	382	37.5	%


Taxable equivalent adjustment	13			12			10			1		8.3	%	3		30.0	%
Net interest income, taxable equivalent basis	$	1,414		$	1,274		$	1,029		$	140	11.0	%	$	385	37.4	%
Net interest margin (FTE)	3.99		%	3.53		%	2.83		%


Non-interest income:
Service charges on deposit accounts	$	152		$	156		$	166		(4)		(2.6)	%	(14)		(8.4)	%
Card and ATM fees	130			126			127			4		3.2	%	3		2.4	%
Wealth management income	108			108			100			—		—	%	8		8.0	%
Capital markets income	61			93			83			(32)		(34.4)	%	(22)		(26.5)	%
Mortgage income	24			37			49			(13)		(35.1)	%	(25)		(51.0)	%
Commercial credit fee income	25			26			23			(1)		(3.8)	%	2		8.7	%
Bank-owned life insurance	17			15			14			2		13.3	%	3		21.4	%
Securities gains (losses), net	—			(1)			—			1		100.0	%	—		NM

Market value adjustments on employee benefit assets*	(9)			(5)			—			(4)		(80.0)	%	(9)		NM

Insurance proceeds	50			—			—			50		NM		50		NM
Other	42			50			53			(8)		(16.0)	%	(11)		(20.8)	%
Non-interest income	$	600		$	605		$	615		$	(5)	(0.8)	%	$	(15)	(2.4)	%
Total revenue	$	2,001		$	1,867		$	1,634		$	134	7.2	%	$	367	22.5	%

Adjusted total revenue (non-GAAP)(1)	$	1,951		$	1,868		$	1,634		$	83	4.4	%	$	317	19.4	%

NM - Not Meaningful

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

Total revenue of approximately $2 billion represented an increase of 7 percent on a reported basis and 4 percent on an adjusted basis(1) compared to the third quarter of 2022. Representing a record, net interest income increased to $1.4 billion during the quarter. The 11 percent increase compared to the third quarter was driven primarily by higher interest rates, continued strong average loan growth and lower than anticipated deposit costs. Lower cash balances also supported the net interest margin, which increased 46 basis points to 3.99 percent.

Non-interest income decreased 1 percent on a reported basis and 9 percent on an adjusted basis(1) compared to the third quarter of 2022. Capital markets income decreased 34 percent. Excluding the impact of CVA/DVA, capital markets income remained relatively stable as growth in advisory transactions was offset by declines in customer hedging, syndications and real estate capital markets. Mortgage income decreased 35 percent as higher interest rates led to lower production volumes partially offset by higher mortgage servicing income. Card & ATM fees increased 3 percent driven primarily by seasonally higher interchange as well as a card rewards liability adjustment in the previous quarter that did not repeat. Service charges decreased 2 percent attributable to 3 fewer business days in the quarter. Despite volatile market conditions, wealth management income remained stable compared to the prior quarter. Market value adjustments on employee benefit assets (which are offset in salaries and benefits and other non-interest expense) decreased further during the quarter.

Non-interest expense


	Quarter Ended
($ amounts in millions)	12/31/2022		9/30/2022		12/31/2021		4Q22 vs. 3Q22				4Q22 vs. 4Q21
Salaries and employee benefits	$	604	$	593	$	575	$	11	1.9	%	$	29	5.0	%
Equipment and software expense	102		98		96		4		4.1	%	6		6.3	%
Net occupancy expense	74		76		76		(2)		(2.6)	%	(2)		(2.6)	%
Outside services	41		40		41		1		2.5	%	—		—	%
Professional, legal and regulatory expenses	23		199		33		(176)		(88.4)	%	(10)		(30.3)	%
Marketing	27		29		32		(2)		(6.9)	%	(5)		(15.6)	%
FDIC insurance assessments	18		16		13		2		12.5	%	5		38.5	%
Credit/checkcard expenses	14		13		15		1		7.7	%	(1)		(6.7)	%
Branch consolidation, property and equipment charges	5		3		—		2		66.7	%	5		NM
Visa class B shares expense	7		3		8		4		133.3	%	(1)		(12.5)	%


Other	102		100		94		2		2.0	%	8		8.5	%
Total non-interest expense	$	1,017	$	1,170	$	983	$	(153)	(13.1)	%	$	34	3.5	%
Total adjusted non-interest expense(1)	$	1,012	$	988	$	967	$	24	2.4	%	$	45	4.7	%

NM - Not Meaningful

Non-interest expense decreased 13 percent on a reported basis but increased 2 percent on an adjusted basis(1) compared to the third quarter of 2022. Reported professional, legal and regulatory expenses decreased $176 million attributable primarily to the previously disclosed regulatory matter that was settled during the prior quarter. Salaries and benefits increased 2 percent due primarily to an increase in associate headcount and higher benefits expense.

The company's fourth quarter efficiency ratio was 50.5 percent on a reported basis and 51.6 percent on an adjusted basis(1). The effective tax rate was 21.5 percent in the fourth quarter.

Loans and Leases


	Average Balances

($ amounts in millions)	4Q22		3Q22		4Q21		4Q22 vs. 3Q22				4Q22 vs. 4Q21



Commercial and industrial	$	50,135	$	49,120	$	42,254	$	1,015	2.1	%	$	7,881	18.7%


Commercial real estate—owner-occupied	5,362		5,441		5,649		(79)		(1.5)	%	(287)		(5.1)%
Investor real estate	8,290		7,879		7,185		411		5.2	%	1,105		15.4%
Business Lending	63,787		62,440		55,088		1,347		2.2	%	8,699		15.8%
Residential first mortgage	18,595		18,125		17,413		470		2.6	%	1,182		6.8%


Home equity	6,017		6,050		6,334		(33)		(0.5)	%	(317)		(5.0)%

Consumer credit card	1,207		1,176		1,155		31		2.6	%	52		4.5%
Other consumer—exit portfolios	613		716		1,160		(103)		(14.4)	%	(547)		(47.2)%
Other consumer*	5,533		6,177		5,398		(644)		(10.4)	%	135		2.5%
Consumer Lending	31,965		32,244		31,460		(279)		(0.9)	%	505		1.6%
Total Loans	$	95,752	$	94,684	$	86,548	$	1,068	1.1	%	$	9,204	10.6%

NM - Not meaningful.

* Other consumer loans includes EnerBank.

Average loans and leases increased 1 percent compared to the prior quarter driven primarily by growth in commercial and industrial lending, investor real estate, residential first mortgages and EnerBank. Average business lending increased 2 percent reflecting broad-based growth in financial services, wholesale durables, information services, and multi-family. Commercial loan line utilization levels ended the quarter at approximately 43.4 percent, increasing 30 basis points over the prior quarter, while line commitments grew approximately $800 million during the quarter. Total average consumer lending decreased 1 percent driven primarily by a $1.2 billion unsecured consumer loan sale executed at the end of the third quarter.

Deposits


	Average Balances

($ amounts in millions)	4Q22		3Q22		4Q21		4Q22 vs. 3Q22			4Q22 vs. 4Q21
Customer low-cost deposits	$	127,544	$	130,167	$	130,177	$	(2,623)	(2.0)%	$	(2,633)	(2.0)%
Customer time deposits	5,462		5,351		6,505		111		2.1%	(1,043)		(16.0)%

Corporate treasury other deposits	1		—		—		1		NM	1		NM
Total Deposits	$	133,007	$	135,518	$	136,682	$	(2,511)	(1.9)%	$	(3,675)	(2.7)%

($ amounts in millions)	4Q22		3Q22		4Q21		4Q22 vs. 3Q22			4Q22 vs. 4Q21
Consumer Bank Segment	$	83,555	$	84,741	$	80,930	$	(1,186)	(1.4)%	$	2,625	3.2%
Corporate Bank Segment	38,176		39,058		42,659		(882)		(2.3)%	(4,483)		(10.5)%
Wealth Management Segment	9,065		9,467		10,054		(402)		(4.2)%	(989)		(9.8)%
Other	2,211		2,252		3,039		(41)		(1.8)%	(828)		(27.2)%
Total Deposits	$	133,007	$	135,518	$	136,682	$	(2,511)	(1.9)%	$	(3,675)	(2.7)%

In line with expectations, total average deposit balances decreased 2 percent in the fourth quarter of 2022. Average Consumer deposits declined 1 percent. Corporate and Wealth Management deposits experienced declines of 2 and 4 percent, respectively, as expected attrition continued in the quarter.

Asset quality


	As of and for the Quarter Ended
($ amounts in millions)	12/31/2022	9/30/2022	12/31/2021
ACL/Loans, net	1.63%	1.63%	1.79%
ALL/Loans, net	1.51%	1.50%	1.69%
Allowance for credit losses to non-performing loans, excluding loans held for sale	317%	311%	349%
Allowance for loan losses to non-performing loans, excluding loans held for sale	293%	287%	328%
Provision for credit losses	$112	$135	$110
Net loans charged-off	$69	$110	$44
Adjusted net loan charge-offs (non-GAAP)(1)	$69	$47	$44
Net loans charged-off as a % of average loans, annualized	0.29%	0.46%	0.20%
Adjusted net loan charge-offs as a % of average loans, annualized (non-GAAP) (1)	0.29%	0.19%	0.20%
Non-performing loans, excluding loans held for sale/Loans, net	0.52%	0.52%	0.51%
NPAs (ex. 90+ past due)/Loans, foreclosed properties, and non-performing loans held for sale	0.53%	0.54%	0.54%
NPAs (inc. 90+ past due)/Loans, foreclosed properties, and non-performing loans held for sale*	0.75%	0.65%	0.70%

Total Criticized Loans—Business Services**	$3,149	$2,771	$2,905

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

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

Despite continued normalization in certain credit metrics, overall asset quality remained broadly stable during the quarter. Non-performing loans remained stable at 0.52 percent of total loans, while total delinquencies and criticized loans increased modestly. Total net charge-offs for the quarter were $69 million, or 29 basis points of average loans. Excluding the impact of the third quarter consumer loan sale, full-year adjusted net charge-offs(1) were 22 basis points.

Provision expense totaled $112 million for the quarter. The increase to the allowance for credit losses compared to the third quarter was attributable primarily to economic conditions, normalizing credit quality from historically low levels, and loan growth. These increases were partially offset by the elimination of the $20 million of hurricane-related reserves established in the prior quarter. The unique factors related to this event are not expected to result in significant losses.

The allowance for credit loss ratio remains strong at 1.63 percent of total loans, while the allowance as a percentage of nonperforming loans remains strong at 317 percent.

Capital and liquidity


	As of and for Quarter Ended
	12/31/2022	9/30/2022	12/31/2021

Common Equity Tier 1 ratio(2)	9.6%	9.3%	9.6%
Tier 1 capital ratio(2)	10.9%	10.6%	11.0%
Tangible common stockholders’ equity to tangible assets (non-GAAP)(1)	5.63%	5.01%	6.83%
Tangible common book value per share (non-GAAP)(1)*	$9.00	$8.15	$11.38
Loans, net of unearned income, to total deposits	73.6%	70.0%	63.1%

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

Regions maintains a solid capital position with estimated capital ratios remaining well above current regulatory requirements. The Tier 1(2) and Common Equity Tier 1(2) ratios were estimated at 10.9 percent and 9.6 percent, respectively, at quarter-end. The company's liquidity position also remains robust including cash held at the Federal Reserve totaling $9.2 billion and a loan to deposit ratio of 74 percent at quarter-end. Relative to pre-pandemic conditions, Regions currently has limited need for wholesale funding.

During the fourth quarter, the company declared $187 million in dividends to common shareholders and did not repurchase any shares of Regions' common stock.

(1)Non-GAAP; refer to pages 13, 17, 18, 19 and 22 of the financial supplement to this earnings release for reconciliations.

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

Conference Call

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

About Regions Financial Corporation

Regions Financial Corporation (NYSE:RF), with $155 billion in assets, is a member of the S&P 500 Index and is one of the nation’s largest full-service providers of consumer and commercial banking, wealth management, and mortgage products and services. Regions serves customers across the South, Midwest and Texas, and through its subsidiary, Regions Bank, operates more than 1,250 banking offices and more than 2,000 ATMs. Regions Bank is an Equal Housing Lender and Member FDIC. Additional information about Regions and its full line of products and services can be found at www.regions.com.

About Regions Foundation

Regions Foundation supports community investments that positively impact the communities served by Regions Bank. The Foundation engages in a grantmaking program focused on priorities including economic and community development; education and workforce readiness; and financial wellness. The Foundation is a nonprofit 501(c)(3) corporation funded primarily through contributions from Regions Bank.

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.

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

•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.

•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 low 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.

•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, as well as changes in the enforcement and interpretation of such laws and regulations by applicable governmental and self-regulatory agencies, including as a result of the changes in U.S. presidential administration, control of the U.S. Congress, and changes in personnel at the bank regulatory agencies, which could require us to change certain business practices, increase compliance risk, reduce our revenue, impose additional costs on us, or otherwise negatively affect our businesses.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

•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” of Regions’ Annual Report on Form 10-K for the year ended December 31, 2021 and the “Risk Factors” of Regions’ Quarterly Reports on Form 10-Q for the subsequent quarters of 2022, as filed with the SEC.

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

Use of non-GAAP financial measures

Management uses pre-tax pre-provision income (non-GAAP) and adjusted pre-tax pre-provision income (non-GAAP), as well as the adjusted efficiency ratio (non-GAAP) and the adjusted fee income ratio (non-GAAP) to monitor performance and believes these measures provide meaningful information to investors. Non-interest expense (GAAP) is presented excluding certain adjustments to arrive at adjusted non-interest expense (non-GAAP), which is the numerator for the adjusted efficiency ratio. Non-interest income (GAAP) is presented excluding certain adjustments to arrive at adjusted non-interest income (non-GAAP), which is the numerator for the adjusted fee income ratio. Adjusted non-interest income (non-GAAP) and adjusted non-interest expense (non-GAAP) are used to determine adjusted pre-tax pre-provision income (non-GAAP). Net interest income (GAAP) on a taxable-equivalent basis and non-interest income are added together to arrive at total revenue on a taxable-equivalent basis. Adjustments are made to arrive at adjusted total revenue on a taxable-equivalent basis (non-GAAP), which is the denominator for the adjusted fee income and adjusted efficiency ratios. Net loan charge-offs (GAAP) are presented excluding adjustments to arrive at adjusted net loan-charge offs (non-GAAP). Adjusted net loan charge-offs as a percentage of average loans (non-GAAP) are calculated as adjusted net loan charge-offs (non-GAAP) divided by average loans (GAAP) and annualized. Regions believes that the exclusion of these adjustments provides a meaningful basis for period-to-period comparisons, which management believes will assist investors in analyzing the operating results of the Company and predicting future performance. These non-GAAP financial measures are also used by management to assess the performance of Regions’ business. It is possible that the activities related to the adjustments may recur; however, management does not consider the activities related to the adjustments to be indications of ongoing operations. Regions believes that presentation of these non-GAAP financial measures will permit investors to assess the performance of the Company on the same basis as that applied by management.

Tangible common stockholders’ equity ratios have become a focus of some investors and management believes they may assist investors in analyzing the capital position of the Company absent the effects of intangible assets and preferred stock. Analysts and banking regulators have assessed Regions’ capital adequacy using the tangible common stockholders’ equity measure. Because tangible common stockholders’ equity is not formally defined by GAAP or prescribed in any amount by federal banking regulations it is currently considered to be a non-GAAP financial measure and other entities may calculate it differently than Regions’ disclosed calculations. Since analysts and banking regulators may assess Regions’ capital adequacy using tangible common stockholders’ equity, management believes that it is useful to provide investors the ability to assess Regions’ capital adequacy on this same basis.

Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied and are not audited. Although these non-GAAP financial measures are frequently used by stakeholders in the evaluation of a company, they have limitations as analytical tools, and should not be considered in isolation, or as a substitute for analyses of results as reported under GAAP. In particular, a measure of earnings that excludes selected items does not represent the amount that effectively accrues directly to stockholders.

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

•Preparation of Regions' operating budgets

•Monthly financial performance reporting

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

•Presentation to investors of company performance

•Metrics for incentive compensation

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

Exhibit 99.2

Regions Financial Corporation and Subsidiaries

Financial Supplement (unaudited)

Fourth Quarter 2022

Regions Financial Corporation and Subsidiaries

Financial Supplement (unaudited) to Fourth Quarter 2022 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*						13

Non-Interest Income, Mortgage Income, Wealth Management Income and Capital Markets Income						14

Non-Interest Expense						16

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						17

Credit Quality
Allowance for Credit Losses, Net Charge-Offs and Related Ratios, Adjusted Net Charge-Offs and Related Ratios						21
Non-Accrual Loans (excludes loans held for sale), Early and Late Stage Delinquencies						23

Forward-Looking Statements						24

*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 Fourth Quarter 2022 Earnings Release

Financial Highlights


	Quarter Ended
($ amounts in millions, except per share data)	12/31/2022			9/30/2022			6/30/2022			3/31/2022			12/31/2021
Earnings Summary
Interest income - taxable equivalent	$	1,565		$	1,355		$	1,166		$	1,063		$	1,066
Interest expense - taxable equivalent	151			81			47			37			37
Net interest income - taxable equivalent	1,414			1,274			1,119			1,026			1,029
Less: Taxable-equivalent adjustment	13			12			11			11			10
Net interest income	1,401			1,262			1,108			1,015			1,019
Provision for (benefit from) credit losses	112			135			60			(36)			110
Net interest income after provision for (benefit from) credit losses	1,289			1,127			1,048			1,051			909
Non-interest income	600			605			640			584			615
Non-interest expense	1,017			1,170			948			933			983
Income before income taxes	872			562			740			702			541
Income tax expense	187			133			157			154			103
Net income	$	685		$	429		$	583		$	548		$	438
Net income available to common shareholders	$	660		$	404		$	558		$	524		$	414



Weighted-average shares outstanding—during quarter:
Basic	934			934			934			938			949
Diluted	941			940			940			947			958

Earnings per common share - basic	$	0.71		$	0.43		$	0.60		$	0.56		$	0.44
Earnings per common share - diluted	$	0.70		$	0.43		$	0.59		$	0.55		$	0.43

Balance Sheet Summary
At quarter-end
Loans, net of unearned income	$	97,009		$	94,711		$	93,458		$	89,335		$	87,784
Allowance for credit losses	(1,582		)	(1,539		)	(1,514		)	(1,492		)	(1,574		)
Assets	155,220			157,798			160,908			164,082			162,938
Deposits	131,743			135,378			138,263			141,022			139,072
Long-term borrowings	2,284			2,274			2,319			2,343			2,407
Shareholders' equity	15,947			15,173			16,507			16,982			18,326
Average balances
Loans, net of unearned income	$	95,752		$	94,684		$	90,764		$	87,814		$	86,548
Assets	155,668			158,422			161,826			161,728			160,051
Deposits	133,007			135,518			139,592			138,734			136,682
Long-term borrowings	2,275			2,319			2,328			2,390			2,433
Shareholders' equity	15,442			16,473			16,404			17,717			18,308

Regions Financial Corporation and Subsidiaries

Financial Supplement (unaudited) to Fourth Quarter 2022 Earnings Release

Selected Ratios and Other Information


	As of and for Quarter Ended
	12/31/2022			9/30/2022			6/30/2022			3/31/2022			12/31/2021
Return on average assets* (1)	1.75		%	1.07		%	1.44		%	1.38		%	1.09		%
Return on average common shareholders' equity*	19.01		%	10.82		%	15.18		%	13.23		%	9.86		%
Return on average tangible common shareholders’ equity (non-GAAP)* (2)	33.20		%	18.02		%	25.40		%	21.00		%	15.07		%
Return on average tangible common shareholders’ equity excluding AOCI (non-GAAP)* (2)	22.91		%	14.42		%	20.85		%	20.25		%	15.56		%
Efficiency ratio	50.5		%	62.3		%	53.9		%	57.9		%	59.8		%
Adjusted efficiency ratio (non-GAAP) (2)	51.6		%	52.6		%	54.2		%	57.9		%	58.8		%
Dividend payout ratio (3)	28.3		%	46.2		%	28.5		%	30.3		%	38.8		%
Common book value per share	$	15.29		$	14.46		$	15.89		$	16.42		$	17.69
Tangible common book value per share (non-GAAP) (2)	$	9.00		$	8.15		$	9.55		$	10.06		$	11.38
Total equity to total assets	10.27		%	9.62		%	10.26		%	10.35		%	11.25		%
Tangible common shareholders’ equity to tangible assets (non-GAAP) (2)	5.63		%	5.01		%	5.76		%	5.93		%	6.83		%
Common equity (4)	$	12,066		$	11,554		$	11,298		$	10,912		$	10,844
Total risk-weighted assets (4)	$	125,702		$	124,395		$	122,154		$	116,182		$	113,343
Common equity Tier 1 ratio (4)	9.6		%	9.3		%	9.2		%	9.4		%	9.6		%
Tier 1 capital ratio (4)	10.9		%	10.6		%	10.6		%	10.8		%	11.0		%
Total risk-based capital ratio (4)	12.5		%	12.3		%	12.3		%	12.5		%	12.7		%
Leverage ratio (4)	8.9		%	8.5		%	8.2		%	8.0		%	8.1		%
Effective tax rate	21.5		%	23.7		%	21.2		%	21.9		%	18.9		%
Allowance for credit losses as a percentage of loans, net of unearned income	1.63		%	1.63		%	1.62		%	1.67		%	1.79		%
Allowance for credit losses to non-performing loans, excluding loans held for sale	317		%	311		%	410		%	446		%	349		%
Net interest margin (FTE)*	3.99		%	3.53		%	3.06		%	2.85		%	2.83		%

Loans, net of unearned income, to total deposits	73.6		%	70.0		%	67.6		%	63.3		%	63.1		%
Net charge-offs as a percentage of average loans*	0.29		%	0.46		%	0.17		%	0.21		%	0.20		%
Adjusted net charge-offs as a percentage of average loans (non-GAAP) * (2)	0.29		%	0.19		%	0.17		%	0.21		%	0.20		%
Non-performing loans, excluding loans held for sale, as a percentage of loans	0.52		%	0.52		%	0.39		%	0.37		%	0.51		%
Non-performing assets (excluding loans 90 days past due) as a percentage of loans, foreclosed properties, and non-performing loans held for sale	0.53		%	0.54		%	0.41		%	0.39		%	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)	0.75		%	0.65		%	0.52		%	0.53		%	0.70		%
Associate headcount—full-time equivalent (6)	20,073			19,950			19,673			19,723			19,626
ATMs	2,039			2,043			2,048			2,054			2,068
Branch Statistics
Full service	1,252			1,259			1,259			1,259			1,268
Drive-through/transaction service only	34			35			35			35			34
Total branch outlets	1,286			1,294			1,294			1,294			1,302



	Year Ended December 31
	2022		2021
Return on average assets (1)	1.41	%	1.63	%
Return on average common shareholders' equity	14.46	%	14.51	%

Return on average tangible common shareholders’ equity (non-GAAP) (2)	24.05	%	21.42	%

Return on average tangible common shareholders’ equity excluding AOCI (non-GAAP) (2)	19.61	%	22.85	%
Efficiency ratio	56.0	%	57.8	%
Adjusted efficiency ratio (non-GAAP) (2)	53.9	%	57.3	%
Dividend payout ratio (3)	32.2	%	25.8	%
Effective tax rate	22.0	%	21.6	%
Net interest margin (FTE)	3.36	%	2.85	%
Net charge-offs as a percentage of average loans	0.29	%	0.24	%
Adjusted net charge-offs as a percentage of average loans (non-GAAP) (2)	0.22	%	0.24	%

*Annualized

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

(2)See reconciliation of GAAP to non-GAAP Financial Measures that begin on pages 13, 17, 18, 19 and 21.

(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 23 for amounts related to these loans.

(6)Associate headcount for the fourth quarter of 2021 includes approximately 620 associates from acquisitions closed in the quarter.

Regions Financial Corporation and Subsidiaries

Financial Supplement (unaudited) to Fourth Quarter 2022 Earnings Release

Consolidated Balance Sheets


	As of
($ amounts in millions)	12/31/2022		9/30/2022		6/30/2022		3/31/2022		12/31/2021
Assets:
Cash and due from banks	$	1,997	$	2,117	$	2,301	$	2,227	$	1,350
Interest-bearing deposits in other banks	9,230		13,549		18,199		25,718		28,061
Debt securities held to maturity	801		817		836		864		899
Debt securities available for sale	27,933		28,126		29,052		29,384		28,481
Loans held for sale	354		720		612		694		1,003
Loans, net of unearned income	97,009		94,711		93,458		89,335		87,784
Allowance for loan losses	(1,464)		(1,418)		(1,425)		(1,416)		(1,479)
Net loans	95,545		93,293		92,033		87,919		86,305
Other earning assets	1,308		1,341		1,428		1,504		1,187
Premises and equipment, net	1,718		1,744		1,768		1,794		1,814
Interest receivable	511		424		365		329		319
Goodwill	5,733		5,739		5,749		5,748		5,744
Residential mortgage servicing rights at fair value (MSRs)	812		809		770		542		418
Other identifiable intangible assets, net	249		266		279		292		305
Other assets	9,029		8,853		7,516		7,067		7,052
Total assets	$	155,220	$	157,798	$	160,908	$	164,082	$	162,938
Liabilities and Equity:
Deposits:
Non-interest-bearing	$	51,348	$	54,996	$	58,510	$	59,590	$	58,369
Interest-bearing	80,395		80,382		79,753		81,432		80,703
Total deposits	131,743		135,378		138,263		141,022		139,072
Borrowed funds:




Long-term borrowings	2,284		2,274		2,319		2,343		2,407

Other liabilities	5,242		4,973		3,819		3,735		3,133
Total liabilities	139,269		142,625		144,401		147,100		144,612
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	11,988		11,976		11,962		11,983		12,189
Retained earnings	7,004		6,531		6,314		5,915		5,550
Treasury stock, at cost	(1,371)		(1,371)		(1,371)		(1,371)		(1,371)
Accumulated other comprehensive income, net	(3,343)		(3,632)		(2,067)		(1,214)		289
Total shareholders’ equity	15,947		15,173		16,507		16,982		18,326
Noncontrolling interest	4		—		—		—		—
Total equity	15,951		15,173		16,507		16,982		18,326
Total liabilities and equity	$	155,220	$	157,798	$	160,908	$	164,082	$	162,938

Regions Financial Corporation and Subsidiaries

Financial Supplement (unaudited) to Fourth Quarter 2022 Earnings Release

End of Period Loans


	As of
											12/31/2022				12/31/2022
($ amounts in millions)	12/31/2022		9/30/2022		6/30/2022		3/31/2022		12/31/2021		vs. 9/30/2022				vs. 12/31/2021
Commercial and industrial	$	50,905	$	49,591	$	48,492	$	45,643	$	43,758	$	1,314	2.6	%	$	7,147	16.3	%
Commercial real estate mortgage—owner-occupied	5,103		5,167		5,218		5,181		5,287		(64)		(1.2)	%	(184)		(3.5)	%
Commercial real estate construction—owner-occupied	298		282		266		273		264		16		5.7	%	34		12.9	%
Total commercial	56,306		55,040		53,976		51,097		49,309		1,266		2.3	%	6,997		14.2	%
Commercial investor real estate mortgage	6,393		6,295		5,892		5,557		5,441		98		1.6	%	952		17.5	%
Commercial investor real estate construction	1,986		1,824		1,720		1,607		1,586		162		8.9	%	400		25.2	%
Total investor real estate	8,379		8,119		7,612		7,164		7,027		260		3.2	%	1,352		19.2	%
Total business	64,685		63,159		61,588		58,261		56,336		1,526		2.4	%	8,349		14.8	%
Residential first mortgage	18,810		18,399		17,892		17,373		17,512		411		2.2	%	1,298		7.4	%
Home equity—lines of credit (1)	3,510		3,521		3,550		3,602		3,744		(11)		(0.3)	%	(234)		(6.3)	%
Home equity—closed-end (2)	2,489		2,515		2,524		2,500		2,510		(26)		(1.0)	%	(21)		(0.8)	%
Consumer credit card	1,248		1,186		1,172		1,133		1,184		62		5.2	%	64		5.4	%
Other consumer—exit portfolios (3)	570		662		775		909		1,071		(92)		(13.9)	%	(501)		(46.8)	%
Other consumer	5,697		5,269		5,957		5,557		5,427		428		8.1	%	270		5.0	%
Total consumer	32,324		31,552		31,870		31,074		31,448		772		2.4	%	876		2.8	%
Total Loans	$	97,009	$	94,711	$	93,458	$	89,335	$	87,784	$	2,298	2.4	%	$	9,225	10.5	%

______

NM - Not meaningful.

(1) The balance of Regions' home equity lines of credit consists of $1,855 million of first lien and $1,655 million of second lien at 12/31/2022.

(2) The balance of Regions' closed-end home equity loans consists of $2,244 million of first lien and $245 million of second lien at 12/31/2022.

(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	12/31/2022		9/30/2022		6/30/2022		3/31/2022		12/31/2021
Commercial and industrial	52.5	%	52.4	%	51.9	%	51.1	%	49.9	%
Commercial real estate mortgage—owner-occupied	5.3	%	5.5	%	5.6	%	5.8	%	6.0	%
Commercial real estate construction—owner-occupied	0.3	%	0.3	%	0.3	%	0.3	%	0.3	%
Total commercial	58.1	%	58.2	%	57.8	%	57.2	%	56.2	%
Commercial investor real estate mortgage	6.6	%	6.6	%	6.3	%	6.2	%	6.2	%
Commercial investor real estate construction	2.0	%	1.9	%	1.8	%	1.8	%	1.8	%
Total investor real estate	8.6	%	8.5	%	8.1	%	8.0	%	8.0	%
Total business	66.7	%	66.7	%	65.9	%	65.2	%	64.2	%
Residential first mortgage	19.4	%	19.4	%	19.1	%	19.4	%	19.9	%
Home equity—lines of credit	3.6	%	3.7	%	3.8	%	4.0	%	4.3	%
Home equity—closed-end	2.6	%	2.7	%	2.7	%	2.8	%	2.9	%
Consumer credit card	1.3	%	1.3	%	1.3	%	1.3	%	1.3	%
Other consumer—exit portfolios	0.6	%	0.7	%	0.8	%	1.0	%	1.2	%
Other consumer	5.8	%	5.5	%	6.4	%	6.3	%	6.2	%
Total consumer	33.3	%	33.3	%	34.1	%	34.8	%	35.8	%
Total Loans	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%

Regions Financial Corporation and Subsidiaries

Financial Supplement (unaudited) to Fourth Quarter 2022 Earnings Release

Average Balances of Loans


	Average Balances
($ amounts in millions)	4Q22		3Q22		2Q22		1Q22		4Q21		4Q22 vs. 3Q22				4Q22 vs. 4Q21
Commercial and industrial	$	50,135	$	49,120	$	46,538	$	43,993	$	42,254	$	1,015	2.1	%	$	7,881	18.7	%
Commercial real estate mortgage—owner-occupied	5,073		5,167		5,204		5,237		5,386		(94)		(1.8)	%	(313)		(5.8)	%
Commercial real estate construction—owner-occupied	289		274		273		269		263		15		5.5	%	26		9.9	%
Total commercial	55,497		54,561		52,015		49,499		47,903		936		1.7	%	7,594		15.9	%


Commercial investor real estate mortgage	6,406		6,115		5,760		5,514		5,531		291		4.8	%	875		15.8	%
Commercial investor real estate construction	1,884		1,764		1,668		1,568		1,654		120		6.8	%	230		13.9	%
Total investor real estate	8,290		7,879		7,428		7,082		7,185		411		5.2	%	1,105		15.4	%
Total business	63,787		62,440		59,443		56,581		55,088		1,347		2.2	%	8,699		15.8	%


Residential first mortgage	18,595		18,125		17,569		17,496		17,413		470		2.6	%	1,182		6.8	%
Home equity—lines of credit	3,520		3,531		3,571		3,667		3,806		(11)		(0.3)	%	(286)		(7.5)	%
Home equity—closed-end	2,497		2,519		2,511		2,496		2,528		(22)		(0.9)	%	(31)		(1.2)	%
Consumer credit card	1,207		1,176		1,145		1,142		1,155		31		2.6	%	52		4.5	%
Other consumer—exit portfolios (1)	613		716		836		987		1,160		(103)		(14.4)	%	(547)		(47.2)	%
Other consumer	5,533		6,177		5,689		5,445		5,398		(644)		(10.4)	%	135		2.5	%
Total consumer	31,965		32,244		31,321		31,233		31,460		(279)		(0.9)	%	505		1.6	%
Total Loans	$	95,752	$	94,684	$	90,764	$	87,814	$	86,548	$	1,068	1.1	%	$	9,204	10.6	%


	Average Balances
	Twelve Months Ended December 31
($ amounts in millions)	2022		2021		2022 vs. 2021
Commercial and industrial	$	47,468	$	42,522	$	4,946	11.6	%
Commercial real estate mortgage—owner-occupied	5,170		5,389		(219)		(4.1)	%
Commercial real estate construction—owner-occupied	276		272		4		1.5	%
Total commercial	52,914		48,183		4,731		9.8	%
Commercial investor real estate mortgage	5,952		5,509		443		8.0	%
Commercial investor real estate construction	1,722		1,741		(19)		(1.1)	%
Total investor real estate	7,674		7,250		424		5.8	%
Total business	60,588		55,433		5,155		9.3	%
Residential first mortgage	17,950		17,006		944		5.6	%
Home equity—lines of credit	3,572		4,084		(512)		(12.5)	%
Home equity—closed-end	2,506		2,593		(87)		(3.4)	%


Consumer credit card	1,168		1,136		32		2.8	%
Other consumer—exit portfolios (1)	787		1,499		(712)		(47.5)	%
Other consumer	5,711		3,051		2,660		87.2	%
Total consumer	31,694		29,369		2,325		7.9	%
Total Loans	$	92,282	$	84,802	$	7,480	8.8	%

_____

NM - Not meaningful.

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

Regions Financial Corporation and Subsidiaries

Financial Supplement (unaudited) to Fourth Quarter 2022 Earnings Release

End of Period Deposits


	As of
											12/31/2022			12/31/2022
($ amounts in millions)	12/31/2022		9/30/2022		6/30/2022		3/31/2022		12/31/2021		vs. 9/30/2022			vs. 12/31/2021

Interest-free deposits	$	51,348	$	54,996	$	58,510	$	59,590	$	58,369	$	(3,648)	(6.6)%	$	(7,021)	(12.0)%
Interest-bearing checking	25,676		26,500		26,989		28,001		28,018		(824)		(3.1)%	(2,342)		(8.4)%
Savings	15,662		16,083		16,220		16,101		15,134		(421)		(2.6)%	528		3.5%
Money market—domestic	33,285		32,444		31,116		31,677		31,408		841		2.6%	1,877		6.0%
Low-cost deposits	125,971		130,023		132,835		135,369		132,929		(4,052)		(3.1)%	(6,958)		(5.2)%
Time deposits	5,772		5,355		5,428		5,653		6,143		417		7.8%	(371)		(6.0)%


Total Deposits	$	131,743	$	135,378	$	138,263	$	141,022	$	139,072	$	(3,635)	(2.7)%	$	(7,329)	(5.3)%

	As of
											12/31/2022			12/31/2022
($ amounts in millions)	12/31/2022		9/30/2022		6/30/2022		3/31/2022		12/31/2021		vs. 9/30/2022			vs. 12/31/2021
Consumer Bank Segment	$	83,487	$	85,455	$	84,987	$	85,219	$	82,849	$	(1,968)	(2.3)%	$	638	0.8%
Corporate Bank Segment	37,145		38,293		41,456		42,836		42,689		(1,148)		(3.0)%	(5,544)		(13.0)%
Wealth Management Segment	9,111		9,400		9,489		10,420		10,853		(289)		(3.1)%	(1,742)		(16.1)%
Other (1)	2,000		2,230		2,331		2,547		2,681		(230)		(10.3)%	(681)		(25.4)%
Total Deposits	$	131,743	$	135,378	$	138,263	$	141,022	$	139,072	$	(3,635)	(2.7)%	$	(7,329)	(5.3)%

	As of
											12/31/2022			12/31/2022
($ amounts in millions)	12/31/2022		9/30/2022		6/30/2022		3/31/2022		12/31/2021		vs. 9/30/2022			vs. 12/31/2021
Wealth Management - Private Wealth	$	8,196	$	8,565	$	8,771	$	9,472	$	10,033	$	(369)	(4.3)%	$	(1,837)	(18.3)%
Wealth Management - Institutional Services	915		835		718		948		820		80		9.6%	95		11.6%
Total Wealth Management Segment Deposits	$	9,111	$	9,400	$	9,489	$	10,420	$	10,853	$	(289)	(3.1)%	$	(1,742)	(16.1)%


	As of
End of Period Deposits by Percentage	12/31/2022		9/30/2022		6/30/2022		3/31/2022		12/31/2021
Interest-free deposits	39.0	%	40.6	%	42.3	%	42.3	%	42.0	%
Interest-bearing checking	19.5	%	19.6	%	19.5	%	19.9	%	20.1	%
Savings	11.9	%	11.9	%	11.7	%	11.4	%	10.9	%
Money market—domestic	25.3	%	24.0	%	22.5	%	22.5	%	22.6	%
Low-cost deposits	95.7	%	96.1	%	96.0	%	96.1	%	95.6	%
Time deposits	4.3	%	3.9	%	4.0	%	3.9	%	4.4	%

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

NM - Not meaningful.

(1)Other deposits represent non-customer balances primarily consisting of wholesale funding (for example, Eurodollar trade deposits, selected deposits and brokered time deposits).

Regions Financial Corporation and Subsidiaries

Financial Supplement (unaudited) to Fourth Quarter 2022 Earnings Release

Average Balances of Deposits


	Average Balances
($ amounts in millions)	4Q22		3Q22		2Q22		1Q22		4Q21		4Q22 vs. 3Q22				4Q22 vs. 4Q21

Interest-free deposits	$	53,107	$	55,806	$	58,911	$	58,117	$	57,840	$	(2,699)	(4.8)	%	$	(4,733)	(8.2)	%
Interest-bearing checking	25,379		26,665		27,533		27,771		26,000		(1,286)		(4.8)	%	(621)		(2.4)	%
Savings	15,840		16,176		16,200		15,539		14,854		(336)		(2.1)	%	986		6.6	%
Money market—domestic	33,218		31,520		31,348		31,402		31,483		1,698		5.4	%	1,735		5.5	%

Low-cost deposits	127,544		130,167		133,992		132,829		130,177		(2,623)		(2.0)	%	(2,633)		(2.0)	%
Time deposits	5,462		5,351		5,600		5,905		6,505		111		2.1	%	(1,043)		(16.0)	%

Corporate treasury other deposits	1		—		—		—		—		1		NM		1		NM

Total Deposits	$	133,007	$	135,518	$	139,592	$	138,734	$	136,682	$	(2,511)	(1.9)	%	(3,675)		(2.7)	%


	Average Balances
($ amounts in millions)	4Q22		3Q22		2Q22		1Q22		4Q21		4Q22 vs. 3Q22				4Q22 vs. 4Q21
Consumer Bank Segment	$	83,555	$	84,741	$	85,224	$	83,054	$	80,930	$	(1,186)	(1.4)	%	$	2,625	3.2	%
Corporate Bank Segment	38,176		39,058		41,920		42,609		42,659		(882)		(2.3)	%	(4,483)		(10.5)	%
Wealth Management Segment	9,065		9,467		10,020		10,407		10,054		(402)		(4.2)	%	(989)		(9.8)	%
Other (1)	2,211		2,252		2,428		2,664		3,039		(41)		(1.8)	%	(828)		(27.2)	%
Total Deposits	$	133,007	$	135,518	$	139,592	$	138,734	$	136,682	$	(2,511)	(1.9)	%	$	(3,675)	(2.7)	%


	Average Balances
($ amounts in millions)	4Q22		3Q22		2Q22		1Q22		4Q21		4Q22 vs. 3Q22				4Q22 vs. 4Q21
Wealth Management - Private Wealth	$	8,367	$	8,792	$	9,266	$	9,591	$	9,266	$	(425)	(4.8)	%	$	(899)	(9.7)	%
Wealth Management - Institutional Services	698		675		754		816		788		23		3.4	%	(90)		(11.4)	%
Total Wealth Management Segment Deposits	$	9,065	$	9,467	$	10,020	$	10,407	$	10,054	$	(402)	(4.2)	%	$	(989)	(9.8)	%



	Average Balances
	Twelve Months Ended December 31
($ amounts in millions)	2022		2021		2022 vs. 2021
Interest-free deposits	$	56,469	$	55,838	$	631	1.1	%
Interest-bearing checking	26,830		25,128		1,702		6.8	%
Savings	15,940		13,867		2,073		14.9	%
Money market—domestic	31,875		30,615		1,260		4.1	%

Low-cost deposits	131,114		125,448		5,666		4.5	%
Time deposits	5,578		5,253		325		6.2	%

Corporate treasury time deposits	—		1		(1)		(100.0)	%
Corporate treasury other deposits	1		1		—		—	%
Total Deposits	$	136,693	$	130,703	$	5,990	4.6	%



	Average Balances
	Twelve Months Ended December 31
($ amounts in millions)	2022		2021		2022 vs. 2021
Consumer Bank Segment	$	84,146	$	77,820	$	6,326	8.1	%
Corporate Bank Segment	40,396		42,115		(1,719)		(4.1)	%
Wealth Management Segment	9,764		9,684		80		0.8	%
Other (1)	2,387		1,084		1,303		120.2	%
Total Deposits	$	136,693	$	130,703	$	5,990	4.6	%



	Average Balances
	Twelve Months Ended December 31
($ amounts in millions)	2022		2021		2022 vs. 2021
Wealth Management - Private Wealth	$	9,029	$	8,857	$	172	1.9	%
Wealth Management - Institutional Services	735		827		(92)		(11.1)	%
Total Wealth Management Segment Deposits	$	9,764	$	9,684	$	80	0.8	%

________

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).

Regions Financial Corporation and Subsidiaries

Financial Supplement (unaudited) to Fourth Quarter 2022 Earnings Release

Consolidated Statements of Income


	Quarter Ended
($ amounts in millions, except per share data)	12/31/2022		9/30/2022		6/30/2022		3/31/2022		12/31/2021
Interest income on:
Loans, including fees	$	1,208	$	1,072	$	932	$	876	$	902
Debt securities	222		171		157		138		134
Loans held for sale	9		8		10		9		6
Other earning assets	113		92		56		29		14
Total interest income	1,552		1,343		1,155		1,052		1,056
Interest expense on:
Deposits	114		50		20		13		13

Long-term borrowings	37		31		27		24		24
Total interest expense	151		81		47		37		37
Net interest income	1,401		1,262		1,108		1,015		1,019
Provision for (benefit from) credit losses	112		135		60		(36)		110
Net interest income after provision for (benefit from) credit losses	1,289		1,127		1,048		1,051		909
Non-interest income:
Service charges on deposit accounts	152		156		165		168		166
Card and ATM fees	130		126		133		124		127
Wealth management income	108		108		102		101		100
Capital markets income	61		93		112		73		83
Mortgage income	24		37		47		48		49
Securities gains (losses), net	—		(1)		—		—		—
Other	125		86		81		70		90
Total non-interest income	600		605		640		584		615
Non-interest expense:
Salaries and employee benefits	604		593		575		546		575
Equipment and software expense	102		98		97		95		96
Net occupancy expense	74		76		75		75		76
Other	237		403		201		217		236
Total non-interest expense	1,017		1,170		948		933		983
Income before income taxes	872		562		740		702		541
Income tax expense	187		133		157		154		103
Net income	$	685	$	429	$	583	$	548	$	438
Net income available to common shareholders	$	660	$	404	$	558	$	524	$	414
Weighted-average shares outstanding—during quarter:
Basic	934		934		934		938		949
Diluted	941		940		940		947		958
Actual shares outstanding—end of quarter	934		934		934		933		942



Earnings per common share: (1)
Basic	$	0.71	$	0.43	$	0.60	$	0.56	$	0.44
Diluted	$	0.70	$	0.43	$	0.59	$	0.55	$	0.43
Taxable-equivalent net interest income	$	1,414	$	1,274	$	1,119	$	1,026	$	1,029

________

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

Regions Financial Corporation and Subsidiaries

Financial Supplement (unaudited) to Fourth Quarter 2022 Earnings Release

Consolidated Statements of Income (continued) (unaudited)


	Twelve Months Ended December 31
($ amounts in millions, except per share data)	2022		2021
Interest income on:
Loans, including fees	$	4,088	$	3,452
Debt securities	688		533
Loans held for sale	36		37
Other earning assets	290		59

Total interest income	5,102		4,081
Interest expense on:
Deposits	197		64

Long-term borrowings	119		103
Total interest expense	316		167


Net interest income	4,786		3,914
Provision for (benefit from) credit losses	271		(524)
Net interest income after provision for (benefit from) credit losses	4,515		4,438
Non-interest income:
Service charges on deposit accounts	641		648
Card and ATM fees	513		499
Wealth management income	419		382
Capital markets income	339		331
Mortgage income	156		242
Securities gains (losses), net	(1)		3
Other	362		419
Total non-interest income	2,429		2,524
Non-interest expense:
Salaries and employee benefits	2,318		2,205
Equipment and software expense	392		365
Net occupancy expense	300		303
Other	1,058		874
Total non-interest expense	4,068		3,747
Income before income taxes	2,876		3,215
Income tax expense	631		694





Net income	$	2,245	$	2,521

Net income available to common shareholders	$	2,146	$	2,400
Weighted-average shares outstanding—during year:
Basic	935		956
Diluted	942		963
Actual shares outstanding—end of period	934		942






Earnings per common share:
Basic	$	2.29	$	2.51
Diluted	$	2.28	$	2.49
Taxable-equivalent net interest income	$	4,833	$	3,958

Regions Financial Corporation and Subsidiaries

Financial Supplement (unaudited) to Fourth Quarter 2022 Earnings Release

Consolidated Average Daily Balances and Yield/Rate Analysis


	Quarter Ended
	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)
Assets
Earning assets:
Federal funds sold and securities purchased under agreements to resell	$	1	$	—	3.56	%	$	1	$	—	2.43	%
Debt securities (2)(3)	32,213		222		2.75		32,101		171		2.12
Loans held for sale	537		9		6.53		539		8		6.09
Loans, net of unearned income:
Commercial and industrial (4)	50,135		647		5.10		49,120		549		4.42
Commercial real estate mortgage—owner-occupied (5)	5,073		55		4.27		5,167		56		4.20
Commercial real estate construction—owner-occupied	289		4		4.96		274		3		4.53
Commercial investor real estate mortgage	6,406		89		5.43		6,115		64		4.06
Commercial investor real estate construction	1,884		30		6.24		1,764		22		4.77
Residential first mortgage	18,595		155		3.33		18,125		147		3.24
Home equity	6,017		81		5.31		6,050		68		4.49
Consumer credit card	1,207		44		14.34		1,176		40		13.79
Other consumer—exit portfolios	613		9		6.07		716		10		5.72
Other consumer	5,533		107		7.77		6,177		125		8.03
Total loans, net of unearned income	95,752		1,221		5.05		94,684		1,084		4.53
Interest bearing deposits in other banks	10,600		100		3.74		14,353		81		2.25
Other earning assets	1,380		13		3.76		1,379		11		3.34
Total earning assets	140,483		1,565		4.42		143,057		1,355		3.76
Unrealized gains/(losses) on debt securities available for sale, net (2)	(3,582)						(2,389)
Allowance for loan losses	(1,447)						(1,432)
Cash and due from banks	2,406						2,291
Other non-earning assets	17,808						16,895
	$	155,668					$	158,422
Liabilities and Shareholders’ Equity
Interest-bearing liabilities:
Savings	$	15,840	4		0.10		$	16,176	5		0.11
Interest-bearing checking	25,379		42		0.65		26,665		22		0.33
Money market	33,218		57		0.69		31,520		17		0.22
Time deposits	5,462		11		0.80		5,351		6		0.45
Other deposits	1		—		5.47		—		—		—
Total interest-bearing deposits (6)	79,900		114		0.57		79,712		50		0.25
Federal funds purchased and securities sold under agreements to repurchase	39		—		3.73		—		—		—
Other short-term borrowings	—		—		—		30		—		0.23
Long-term borrowings	2,275		37		6.38		2,319		31		5.39
Total interest-bearing liabilities	82,214		151		0.73		82,061		81		0.39
Non-interest-bearing deposits (6)	53,107		—		—		55,806		—		—
Total funding sources	135,321		151		0.44		137,867		81		0.23
Net interest spread (2)					3.69						3.36
Other liabilities	4,904						4,082
Shareholders’ equity	15,442						16,473
Noncontrolling interest	1						—
	$	155,668					$	158,422
Net interest income/margin FTE basis (2)			$	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 and zero for the quarter ended September 30, 2022. Hedging income for the quarter ended December 31, 2022 reflects strategies designed to accelerate hedge notional maturities through the use of pay-fixed swaps. Benefits will migrate from securities to loans in the first quarter of 2023.

(4) Interest income includes hedging expense of $43 million for the quarter ended December 31, 2022 and zero for the quarter ended September 30, 2022.

(5) Interest income includes hedging expense of $5 million for the quarter ended December 31, 2022 and zero 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 0.34% for the quarter ended December 31, 2022 and 0.15% for the quarter ended September 30, 2022.

Regions Financial Corporation and Subsidiaries

Financial Supplement (unaudited) to Fourth Quarter 2022 Earnings Release

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


	Quarter Ended
	6/30/2022						3/31/2022						12/31/2021
($ 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	$	—	$	—	—	%	$	2	$	—	0.18	%	$	1	$	—	0.18	%
Debt securities (2)	31,429		157		2.00		29,342		138		1.88		29,264		134		1.83
Loans held for sale	704		10		5.39		782		9		4.89		855		6		2.98
Loans, net of unearned income:
Commercial and industrial (3)	46,538		480		4.12		43,993		447		4.10		42,254		468		4.39
Commercial real estate mortgage—owner-occupied (4)	5,204		56		4.31		5,237		57		4.35		5,386		60		4.34
Commercial real estate construction—owner-occupied	273		2		3.85		269		3		3.91		263		3		3.95
Commercial investor real estate mortgage	5,760		39		2.69		5,514		30		2.19		5,531		30		2.13
Commercial investor real estate construction	1,668		14		3.34		1,568		11		2.83		1,654		11		2.72
Residential first mortgage	17,569		137		3.12		17,496		135		3.09		17,413		136		3.12
Home equity	6,082		56		3.76		6,163		55		3.55		6,334		55		3.51


Consumer credit card	1,145		36		12.38		1,142		35		12.48		1,155		35		12.16
Other consumer—exit portfolios	836		13		5.93		987		14		5.84		1,160		18		5.71
Other consumer	5,689		110		7.73		5,445		100		7.42		5,398		96		7.13
Total loans, net of unearned income	90,764		943		4.15		87,814		887		4.07		86,548		912		4.18
Interest bearing deposits in other banks	22,246		45		0.81		26,606		13		0.20		26,121		10		0.15
Other earning assets	1,445		11		2.79		1,306		16		5.02		1,276		4		1.41
Total earning assets	146,588		1,166		3.18		145,852		1,063		2.93		144,065		1,066		2.94
Unrealized gains/(losses) on debt securities available for sale, net (2)	(2,107)						(549)						331
Allowance for loan losses	(1,419)						(1,472)						(1,572)
Cash and due from banks	2,386						2,200						2,143
Other non-earning assets	16,378						15,697						15,084
	$	161,826					$	161,728					$	160,051
Liabilities and Shareholders’ Equity
Interest-bearing liabilities:
Savings	$	16,200	5		0.12		$	15,539	5		0.13		$	14,854	5		0.12
Interest-bearing checking	27,533		6		0.09		27,771		2		0.03		26,000		2		0.03
Money market	31,348		4		0.05		31,402		2		0.02		31,483		1		0.02
Time deposits	5,600		5		0.34		5,905		4		0.30		6,505		5		0.36

Total interest-bearing deposits (5)	80,681		20		0.10		80,617		13		0.07		78,842		13		0.07
Federal funds purchased and securities sold under agreements to repurchase	—		—		—		—		—		—		44		—		0.19
Other short-term borrowings	7		—		1.01		9		—		0.16		—		—		—
Long-term borrowings	2,328		27		4.53		2,390		24		4.06		2,433		24		3.93
Total interest-bearing liabilities	83,016		47		0.22		83,016		37		0.18		81,319		37		0.18
Non-interest-bearing deposits (5)	58,911		—		—		58,117		—		—		57,840		—		—
Total funding sources	141,927		47		0.13		141,133		37		0.11		139,159		37		0.11
Net interest spread (2)					2.95						2.75						2.76
Other liabilities	3,495						2,878						2,566
Shareholders’ equity	16,404						17,717						18,308
Noncontrolling interest	—						—						18
	$	161,826					$	161,728					$	160,051
Net interest income/margin FTE basis (2)			$	1,119	3.06	%			$	1,026	2.85	%			$	1,029	2.83	%

_______

(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 $69 million, $98 million, and $100 million for the quarters ended June 30, 2022 , March 31, 2022, and December 31, 2021, respectively.

(4) Interest income includes hedging income of $9 million, $12 million, and $12 million for the quarters ended June 30, 2022, March 31, 2022, and December 31, 2021, respectively.

(5) Total deposit costs may be calculated by dividing total interest expense on deposits by the sum of interest-bearing deposits and non-interest bearing deposits. The rates for total deposit costs equal 0.06% for the quarter ended June 30, 2022, 0.04% for the quarter ended March 31, 2022 and 0.04% for the quarter ended December 31, 2021.

Regions Financial Corporation and Subsidiaries

Financial Supplement (unaudited) to Fourth Quarter 2022 Earnings Release

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


	Twelve Months Ended December 31
	2022						2021
($ 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	$	—	$	—	—	%	$	3	$	—	0.14	%
Debt securities (2)(3)	31,281		688		2.20		28,604		533		1.86
Loans held for sale	640		36		5.63		1,219		37		3.06
Loans, net of unearned income:
Commercial and industrial (4)	47,468		2,123		4.45		42,522		1,858		4.35
Commercial real estate mortgage—owner-occupied (5)	5,170		224		4.28		5,389		240		4.40
Commercial real estate construction—owner-occupied	276		12		4.33		272		11		4.00
Commercial investor real estate mortgage	5,952		222		3.67		5,509		122		2.18
Commercial investor real estate construction	1,722		77		4.40		1,741		48		2.73
Residential first mortgage	17,950		574		3.20		17,006		539		3.17
Home equity	6,078		260		4.27		6,677		235		3.53
Consumer credit card	1,168		155		13.27		1,136		138		12.17
Other consumer—exit portfolios	787		46		5.88		1,499		85		5.65
Other consumer	5,711		442		7.75		3,051		220		7.19
Total loans, net of unearned income	92,282		4,135		4.46		84,802		3,496		4.11
Interest bearing deposits in other banks	18,396		239		1.30		22,810		30		0.13
Other earning assets	1,379		51		3.69		1,289		29		2.23
Total earning assets	143,978		5,149		3.56		138,727		4,125		2.97
Unrealized gains/(losses) on debt securities available for sale, net (2)	(2,166)						623
Allowance for loan losses	(1,442)						(1,795)
Cash and due from banks	2,321						2,027
Other non-earning assets	16,701						14,687
	$	159,392					$	154,269
Liabilities and Shareholders’ Equity
Interest-bearing liabilities:
Savings	$	15,940	19		0.12		$	13,867	19		0.13
Interest-bearing checking	26,830		72		0.27		25,128		8		0.03
Money market	31,875		80		0.25		30,615		8		0.03
Time deposits	5,578		26		0.47		5,253		29		0.56
Other deposits	1		—		3.52		2		—		1.20
Total interest-bearing deposits (6)	80,224		197		0.25		74,865		64		0.09
Federal funds purchased and securities sold under agreements to repurchase	10		—		3.73		12		—		0.19

Long-term borrowings	2,328		119		5.08		2,823		103		3.63
Total interest-bearing liabilities	82,562		316		0.38		77,700		167		0.21
Non-interest-bearing deposits (6)	56,469		—		—		55,838		—		—
Total funding sources	139,031		316		0.23		133,538		167		0.12
Net interest spread (2)					3.18						2.75
Other liabilities	3,858						2,525
Shareholders’ equity	16,503						18,201
Noncontrolling interest	—						5
	$	159,392					$	154,269
Net interest income/margin FTE basis (2)			$	4,833	3.36	%			$	3,958	2.85	%

_______

(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 $41 million for the year ended December 31, 2022 and zero for the year ended December 31, 2021. Hedging income for the year ended December 31, 2022 reflects strategies designed to accelerate hedge notional maturities through the use of pay fixed swaps. Benefits will migrate to cash flow hedges from loans in the first quarter of 2023.

(4) Interest income includes hedging income of $125 million and and $379 million for the years ended December 31, 2022 and 2021, respectively.

(5) Interest income includes hedging income of $15 million and and $47 million for the years ended December 31, 2022 and 2021, respectively.

(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 0.14% and 0.05% for the years ended December 31, 2022 and 2021, respectively.

Regions Financial Corporation and Subsidiaries

Financial Supplement (unaudited) to Fourth Quarter 2022 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)	12/31/2022		9/30/2022		6/30/2022		3/31/2022		12/31/2021		4Q22 vs. 3Q22				4Q22 vs. 4Q21
Net income available to common shareholders (GAAP)	$	660	$	404	$	558	$	524	$	414	$	256	63.4	%	$	246	59.4	%
Preferred dividends (GAAP)	25		25		25		24		24		—		—	%	1		4.2	%
Income tax expense (GAAP)	187		133		157		154		103		54		40.6	%	84		81.6	%
Income before income taxes (GAAP)	872		562		740		702		541		310		55.2	%	331		61.2	%
Provision for (benefit from) credit losses (GAAP)	112		135		60		(36)		110		(23)		(17.0)	%	2		1.8	%
Pre-tax pre-provision income (non-GAAP)	984		697		800		666		651		287		41.2	%	333		51.2	%
Other adjustments:
Securities (gains) losses, net	—		1		—		—		—		(1)		(100.0)	%	—		NM
Leveraged lease termination gains, net	—		—		—		(1)		—		—		NM		—		NM

Insurance proceeds (1)	(50)		—		—		—		—		(50)		NM		(50)		NM
Salaries and employee benefits—severance charges	—		—		—		—		1		—		NM		(1)		(100.0)	%
Branch consolidation, property and equipment charges	5		3		(6)		1		—		2		66.7	%	5		NM




Professional, legal and regulatory expenses (1)	—		179		—		—		15		(179)		(100.0)	%	(15)		(100.0)	%
Total other adjustments	(45)		183		(6)		—		16		(228)		(124.6)	%	(61)		(381.3)	%
Adjusted pre-tax pre-provision income (non-GAAP)	$	939	$	880	$	794	$	666	$	667	$	59	6.7	%	$	272	40.8	%



	Year Ended
($ amounts in millions)	2022		2021		2022 vs. 2021
Net income available to common shareholders (GAAP)	$	2,146	$	2,400	$	(254)	(10.6)	%
Preferred dividends (GAAP) (2)	99		121		(22)		(18.2)	%
Income tax expense (GAAP)	631		694		(63)		(9.1)	%
Income before income taxes (GAAP)	2,876		3,215		(339)		(10.5)	%
Provision for (benefit from) credit losses (GAAP)	271		(524)		795		151.7	%
Pre-tax pre-provision income (non-GAAP)	3,147		2,691		456		16.9	%
Other adjustments:
Securities (gains) losses, net	1		(3)		4		133.3	%
Gains on equity investment	—		(3)		3		100.0	%
Leveraged lease termination gains, net	(1)		(2)		1		50.0	%
Bank owned life insurance (3)	—		(18)		18		100.0	%
Insurance proceeds (1)	(50)		—		(50)		NM
Salaries and employee benefits—severance charges	—		6		(6)		(100.0)	%
Branch consolidation, property and equipment charges	3		5		(2)		(40.0)	%
Contribution to the Regions Financial Corporation foundation	—		3		(3)		(100.0)	%
Loss on early extinguishment of debt	—		20		(20)		(100.0)	%
Professional, legal and regulatory expenses (1)	179		15		164		NM

Total other adjustments	132		23		109		473.9	%
Adjusted pre-tax pre-provision income (non-GAAP)	$	3,279	$	2,714	$	565	20.8	%

______

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. The professional, legal and regulatory adjustment for the fourth quarter of 2021 is related to professional and legal expenses for acquisitions.

(2) Year-to-date 2021 amounts include $13 million of Series A preferred stock issuance costs, which reduced net income available to common shareholders when the shares were redeemed during the second quarter of 2021.

(3) The 2021 amount relates to an individual BOLI claim benefit.

Regions Financial Corporation and Subsidiaries

Financial Supplement (unaudited) to Fourth Quarter 2022 Earnings Release

Non-Interest Income


	Quarter Ended
($ amounts in millions)	12/31/2022		9/30/2022		6/30/2022		3/31/2022		12/31/2021		4Q22 vs. 3Q22				4Q22 vs. 4Q21
Service charges on deposit accounts	152		156		165		168		166		$	(4)	(2.6)	%	$	(14)	(8.4)	%
Card and ATM fees	130		126		133		124		127		4		3.2	%	3		2.4	%
Wealth management income	108		108		102		101		100		—		—	%	8		8.0	%
Capital markets income (1)	61		93		112		73		83		(32)		(34.4)	%	(22)		(26.5)	%
Mortgage income (2)	24		37		47		48		49		(13)		(35.1)	%	(25)		(51.0)	%
Commercial credit fee income	25		26		23		22		23		(1)		(3.8)	%	2		8.7	%
Bank-owned life insurance	17		15		16		14		14		2		13.3	%	3		21.4	%
Market value adjustments on employee benefit assets-other (3)	(9)		(5)		(17)		(14)		—		(4)		(80.0)	%	(9)		NM

Securities gains (losses), net	—		(1)		—		—		—		1		100.0	%	—		NM
Insurance proceeds (4)	50		—		—		—		—		50		NM		50		NM
Other miscellaneous income	42		50		59		48		53		(8)		(16.0)	%	(11)		(20.8)	%
Total non-interest income	$	600	$	605	$	640	$	584	$	615	$	(5)	(0.8)	%	$	(15)	(2.4)	%

Mortgage Income


	Quarter Ended
($ amounts in millions)	12/31/2022			9/30/2022			6/30/2022			3/31/2022			12/31/2021			4Q22 vs. 3Q22				4Q22 vs. 4Q21
Production and sales	$	11		$	18		$	23		$	43		$	46		$	(7)	(38.9)	%	$	(35)	(76.1)	%
Loan servicing	42			40			28			27			27			2		5.0	%	15		55.6	%
MSR and related hedge impact:
MSRs fair value increase (decrease) due to change in valuation inputs or assumptions	—			28			52			47			(6)			(28)		(100.0)	%	6		100.0	%
MSRs hedge gain (loss)	(6)			(26)			(41)			(52)			1			20		76.9	%	(7)		NM
MSRs change due to payment decay	(23)			(23)			(15)			(17)			(19)			—		—	%	(4)		(21.1)	%
MSR and related hedge impact	(29)			(21)			(4)			(22)			(24)			(8)		(38.1)	%	(5)		(20.8)	%
Total mortgage income	$	24		$	37		$	47		$	48		$	49		$	(13)	(35.1)	%	$	(25)	(51.0)	%

Mortgage production - portfolio	$	712		$	997		$	1,277		$	1,021		$	1,273		$	(285)	(28.6)	%	$	(561)	(44.1)	%
Mortgage production - agency/secondary market	314			526			680			819			1,133			(212)		(40.3)	%	(819)		(72.3)	%
Total mortgage production	$	1,026		$	1,523		$	1,957		$	1,840		$	2,406		$	(497)	(32.6)	%	$	(1,380)	(57.4)	%

Mortgage production - purchased	87.9		%	88.1		%	82.9		%	65.7		%	58.6		%
Mortgage production - refinanced	12.1		%	11.9		%	17.1		%	34.3		%	41.4		%

Wealth Management Income


	Quarter Ended
($ amounts in millions)	12/31/2022		9/30/2022		6/30/2022		3/31/2022		12/31/2021		4Q22 vs. 3Q22				4Q22 vs. 4Q21
Investment management and trust fee income	$	76	$	74	$	72	$	75	$	74	$	2	2.7	%	$	2	2.7	%
Investment services fee income	32		34		30		26		26		(2)		(5.9)	%	6		23.1	%
Total wealth management income (5)	$	108	$	108	$	102	$	101	$	100	$	—	—	%	$	8	8.0	%

Capital Markets Income


	Quarter Ended
($ amounts in millions)	12/31/2022		9/30/2022		6/30/2022		3/31/2022		12/31/2021		4Q22 vs. 3Q22				4Q22 vs. 4Q21
Capital markets income	$	61	$	93	$	112	$	73	$	83	$	(32)	(34.4)	%	$	(22)	(26.5)	%
Less: Valuation adjustments on customer derivatives (6)	(11)		21		20		6		—		(32)		(152.4)	%	(11)		NM
Capital markets income excluding valuation adjustments	$	72	$	72	$	92	$	67	$	83	$	—	—	%	$	(11)	(13.3)	%

_________

NM - Not Meaningful

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

(2)Mortgage income in the first quarter of 2022 includes approximately $12 million in gains associated with the re-securitization and sale of approximately $285 million of Ginnie Mae loans that had been previously repurchased from their pools.

(3)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.

(4)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.

(5)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.

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

Regions Financial Corporation and Subsidiaries

Financial Supplement (unaudited) to Fourth Quarter 2022 Earnings Release

Non-Interest Income


	Twelve Months Ended				Year-to-Date Change 12/31/2022 vs. 12/31/2021
($ amounts in millions)	12/31/2022		12/31/2021		Amount		Percent
Service charges on deposit accounts	$	641	$	648	$	(7)	(1.1)	%
Card and ATM fees	513		499		14		2.8	%
Wealth management income	419		382		37		9.7	%
Capital markets income (1)	339		331		8		2.4	%
Mortgage income	156		242		(86)		(35.5)	%
Commercial credit fee income	96		91		5		5.5	%
Bank-owned life insurance	62		82		(20)		(24.4)	%
Market value adjustments on employee benefit assets - other (2)	(45)		20		(65)		(325.0)	%
Gain on equity investment	—		3		(3)		(100.0)	%
Securities gains (losses), net	(1)		3		(4)		(133.3)	%
Insurance proceeds (3)	50		—		50		NM
Other miscellaneous income	199		223		(24)		(10.8)	%
Total non-interest income	$	2,429	$	2,524	$	(95)	(3.8)	%

Mortgage Income


	Twelve Months Ended						Year-to-Date Change 12/31/2022 vs. 12/31/2021
($ amounts in millions)	12/31/2022			12/31/2021			Amount		Percent
Production and sales	$	95		$	229		$	(134)	(58.5)	%
Loan servicing	137			102			35		34.3	%
MSR and related hedge impact:
MSRs fair value increase (decrease) due to change in valuation inputs or assumptions	127			43			84		195.3	%
MSRs hedge gain (loss)	(125)			(62)			(63)		(101.6)	%
MSRs change due to payment decay	(78)			(70)			(8)		(11.4)	%
MSR and related hedge impact	(76)			(89)			13		14.6	%
Total mortgage income	$	156		$	242		$	(86)	(35.5)	%

Mortgage production - portfolio	$	4,007		$	6,037		$	(2,030)	(33.6)	%
Mortgage production - agency/secondary market	2,339			4,970			(2,631)		(52.9)	%
Total mortgage production	$	6,346		$	11,007		$	(4,661)	(42.3)	%

Mortgage production - purchased	80.0		%	58.4		%
Mortgage production - refinanced	20.0		%	41.6		%

Wealth Management Income


	Twelve Months Ended				Year-to-Date Change 12/31/2022 vs. 12/31/2021
($ amounts in millions)	12/31/2022		12/31/2021		Amount		Percent
Investment management and trust fee income	$	297	$	278	$	19	6.8	%
Investment services fee income	122		104		18		17.3	%
Total wealth management income (4)	$	419	$	382	$	37	9.7	%

Capital Markets Income


	Twelve Months Ended				Year-to-Date Change 12/31/2022 vs. 12/31/2021
($ amounts in millions)	12/31/2022		12/31/2021		Amount		Percent
Capital markets income	$	339	$	331	$	8	2.4	%
Less: Valuation adjustments on customer derivatives (5)	36		8		28		350.0	%
Capital markets income excluding valuation adjustments	$	303	$	323	$	(20)	(6.2)	%

_________

NM - Not Meaningful

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

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

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

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

Regions Financial Corporation and Subsidiaries

Financial Supplement (unaudited) to Fourth Quarter 2022 Earnings Release

Non-Interest Expense


	Quarter Ended
($ amounts in millions)	12/31/2022		9/30/2022		6/30/2022		3/31/2022		12/31/2021		4Q22 vs. 3Q22				4Q22 vs. 4Q21
Salaries and employee benefits	$	604	$	593	$	575	$	546	$	575	$	11	1.9	%	$	29	5.0	%
Equipment and software expense	102		98		97		95		96		4		4.1	%	6		6.3	%
Net occupancy expense	74		76		75		75		76		(2)		(2.6)	%	(2)		(2.6)	%
Outside services	41		40		38		38		41		1		2.5	%	—		—	%
Marketing	27		29		22		24		32		(2)		(6.9)	%	(5)		(15.6)	%
Professional, legal and regulatory expenses	23		199		24		17		33		(176)		(88.4)	%	(10)		(30.3)	%
Credit/checkcard expenses	14		13		13		26		15		1		7.7	%	(1)		(6.7)	%
FDIC insurance assessments	18		16		13		14		13		2		12.5	%	5		38.5	%
Visa class B shares expense	7		3		9		5		8		4		133.3	%	(1)		(12.5)	%

Branch consolidation, property and equipment charges	5		3		(6)		1		—		2		66.7	%	5		NM
Other miscellaneous expenses	102		100		88		92		94		2		2.0	%	8		8.5	%
Total non-interest expense	$	1,017	$	1,170	$	948	$	933	$	983	$	(153)	(13.1)	%	$	34	3.5	%



	Twelve Months Ended				Year-to-Date Change 12/31/2022 vs. 12/31/2021
($ amounts in millions)	12/31/2022		12/31/2021		Amount		Percent
Salaries and employee benefits	$	2,318	$	2,205	$	113	5.1	%
Equipment and software expense	392		365		27		7.4	%
Net occupancy expense	300		303		(3)		(1.0)	%
Outside services	157		156		1		0.6	%
Marketing	102		106		(4)		(3.8)	%
Professional, legal and regulatory expenses	263		98		165		168.4	%
Credit/checkcard expenses	66		62		4		6.5	%
FDIC insurance assessments	61		45		16		35.6	%
Visa class B shares expense	24		22		2		9.1	%
Loss on early extinguishment of debt	—		20		(20)		(100.0)	%
Branch consolidation, property and equipment charges	3		5		(2)		(40.0)	%
Other miscellaneous expenses	382		360		22		6.1	%
Total non-interest expense	$	4,068	$	3,747	$	321	8.6	%

_________

NM - Not Meaningful

Regions Financial Corporation and Subsidiaries

Financial Supplement (unaudited) to Fourth Quarter 2022 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 table below presents computations of the efficiency ratio, which is a measure of productivity, generally calculated as non-interest expense divided by total revenue; and the fee income ratio, generally calculated as non-interest income divided by total revenue. Management uses these ratios to monitor performance and believes these measures provide meaningful information to investors. Non-interest expense (GAAP) is presented excluding certain adjustments to arrive at adjusted non-interest expense (non-GAAP), which is the numerator for the adjusted efficiency ratio. Non-interest income (GAAP) is presented excluding certain adjustments to arrive at adjusted non-interest income (non-GAAP), which is the numerator for the adjusted fee income ratio. Net interest income and non-interest income are added together to arrive at total revenue. Adjustments are made to arrive at adjusted total revenue (non-GAAP). Net interest income on a taxable-equivalent basis and non-interest income are added together to arrive at total revenue on a taxable-equivalent basis. Adjustments are made to arrive at adjusted total revenue on a taxable-equivalent basis (non-GAAP), which is the denominator for the adjusted fee income and adjusted efficiency ratios. Also presented is a computation of the adjusted operating leverage ratio (non-GAAP) which is the period to period percentage change in adjusted total revenue on a taxable-equivalent basis (non-GAAP) less the percentage change in adjusted non-interest expense (non-GAAP).


		Quarter Ended
($ amounts in millions)		12/31/2022			9/30/2022			6/30/2022			3/31/2022			12/31/2021			4Q22 vs. 3Q22				4Q22 vs. 4Q21
Non-interest expense (GAAP)	A	$	1,017		$	1,170		$	948		$	933		$	983		$	(153)	(13.1)	%	$	34	3.5	%
Adjustments:

Branch consolidation, property and equipment charges		(5)			(3)			6			(1)			—			(2)		(66.7)	%	(5)		NM

Salaries and employee benefits—severance charges		—			—			—			—			(1)			—		NM		1		100.0	%

Professional, legal and regulatory expenses (1)		—			(179)			—			—			(15)			179		100.0	%	15		100.0	%


Adjusted non-interest expense (non-GAAP)	B	$	1,012		$	988		$	954		$	932		$	967		$	24	2.4	%	$	45	4.7	%



Net interest income (GAAP)	C	$	1,401		$	1,262		$	1,108		$	1,015		$	1,019		$	139	11.0	%	$	382	37.5	%
Taxable-equivalent adjustment		13			12			11			11			10			1		8.3	%	3		30.0	%
Net interest income, taxable-equivalent basis	D	$	1,414		$	1,274		$	1,119		$	1,026		$	1,029		$	140	11.0	%	$	385	37.4	%





Non-interest income (GAAP)	E	600			605			640			584			615			(5)		(0.8)	%	(15)		(2.4)	%
Adjustments:
Securities (gains) losses, net		—			1			—			—			—			(1)		(100.0)	%	—		NM
Leveraged lease termination gains		—			—			—			(1)			—			—		NM		—		NM

Insurance proceeds (1)		$	(50)		$	—		$	—		$	—		$	—		(50)		NM		(50)		NM
Adjusted non-interest income (non-GAAP)	F	$	550		$	606		$	640		$	583		$	615		(56)		(9.2)	%	$	(65)	(10.6)	%
Total revenue	C+E=G	$	2,001		$	1,867		$	1,748		$	1,599		$	1,634		$	134	7.2	%	$	367	22.5	%
Adjusted total revenue (non-GAAP)	C+F=H	$	1,951		$	1,868		$	1,748		$	1,598		$	1,634		$	83	4.4	%	$	317	19.4	%
Total revenue, taxable-equivalent basis	D+E=I	$	2,014		$	1,879		$	1,759		$	1,610		$	1,644		$	135	7.2	%	$	370	22.5	%
Adjusted total revenue, taxable-equivalent basis (non-GAAP)	D+F=J	$	1,964		$	1,880		$	1,759		$	1,609		$	1,644		$	84	4.5	%	$	320	19.5	%


Efficiency ratio (GAAP) (2)	A/I	50.5		%	62.3		%	53.9		%	57.9		%	59.8		%
Adjusted efficiency ratio (non-GAAP) (2)	B/J	51.6		%	52.6		%	54.2		%	57.9		%	58.8		%
Fee income ratio (GAAP) (2)	E/I	29.8		%	32.2		%	36.4		%	36.3		%	37.4		%
Adjusted fee income ratio (non-GAAP) (2)	F/J	28.0		%	32.2		%	36.4		%	36.2		%	37.4		%

________

NM - Not Meaningful

(1)In the third quarter of 2022, the Company settled a previously disclosed matter with the Consumer Financial Protection Bureau. The Company received an insurance reimbursement related to the settlement in the fourth quarter of 2022. The professional, legal and regulatory adjustment for the fourth quarter of 2021 is related to professional and legal expenses for acquisitions.

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

Regions Financial Corporation and Subsidiaries

Financial Supplement (unaudited) to Fourth Quarter 2022 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)




		Twelve Months Ended December 31
($ amounts in millions)		2022			2021			2022 vs. 2021
Non-interest expense (GAAP)	A	$	4,068		$	3,747		$	321	8.6	%
Adjustments:
Contribution to the Regions Financial Corporation foundation		—			(3)			3		100.0	%
Branch consolidation, property and equipment charges		(3)			(5)			2		40.0	%

Salaries and employee benefits—severance charges		—			(6)			6		100.0	%
Loss on early extinguishment of debt		—			(20)			20		100.0	%

Professional, legal and regulatory expenses (1)		(179)			(15)			(164)		NM
Adjusted non-interest expense (non-GAAP)	B	$	3,886		$	3,698		$	188	5.1	%



Net interest income (GAAP)	C	$	4,786		$	3,914		$	872	22.3	%
Taxable-equivalent adjustment		47			44			3		6.8	%
Net interest income, taxable-equivalent basis	D	$	4,833		$	3,958		$	875	22.1	%




Non-interest income (GAAP)	E	$	2,429		$	2,524		$	(95)	(3.8)	%
Adjustments:
Securities (gains) losses, net		1			(3)			4		133.3	%
Gains on equity investment		—			(3)			3		100.0	%
Leveraged lease termination gains		(1)			(2)			1		50.0	%
Bank owned life insurance (2)		—			(18)			18		100.0	%

Insurance proceeds (1)		(50)			—			(50)		NM
Adjusted non-interest income (non-GAAP)	F	$	2,379		$	2,498		$	(119)	(4.8)	%
Total revenue	C+E= G	$	7,215		$	6,438		$	777	12.1	%
Adjusted total revenue (non-GAAP)	C+F=H	$	7,165		$	6,412		$	753	11.7	%
Total revenue, taxable-equivalent basis	D+E=I	$	7,262		$	6,482		$	780	12.0	%
Adjusted total revenue, taxable-equivalent basis (non-GAAP)	D+F=J	$	7,212		$	6,456		$	756	11.7	%
Operating leverage ratio (GAAP) (3)	I-A									3.5	%
Adjusted operating leverage ratio (non-GAAP) (3)	H-B									6.6	%
Efficiency ratio (GAAP) (3)	A/I	56.0		%	57.8		%
Adjusted efficiency ratio (non-GAAP) (3)	B/J	53.9		%	57.3		%
Fee income ratio (GAAP) (3)	E/I	33.5		%	38.9		%
Adjusted fee income ratio (non-GAAP) (3)	F/J	33.0		%	38.7		%

______

NM - Not Meaningful

(1)In the third quarter of 2022, the Company settled a previously disclosed matter with the Consumer Financial Protection Bureau. The Company received an insurance reimbursement related to the settlement in the fourth quarter of 2022. The professional, legal and regulatory adjustment for 2021 is related to professional and legal expenses for acquisitions.

(2)During the second quarter of 2021, the Company recognized an individual BOLI claim benefit.

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

Regions Financial Corporation and Subsidiaries

Financial Supplement (unaudited) to Fourth Quarter 2022 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)		12/31/2022			9/30/2022			6/30/2022			3/31/2022			12/31/2021
RETURN ON AVERAGE TANGIBLE COMMON SHAREHOLDERS' EQUITY
Net income available to common shareholders (GAAP)	A	$	660		$	404		$	558		$	524		$	414
Average shareholders' equity (GAAP)		$	15,442		$	16,473		$	16,404		$	17,717		$	18,308
Less:
Average intangible assets (GAAP)		5,996			6,019			6,034			6,043			5,852
Average deferred tax liability related to intangibles (GAAP)		(105)			(104)			(101)			(100)			(98)
Average preferred stock (GAAP)		1,659			1,659			1,659			1,659			1,660
Average tangible common shareholders' equity (non-GAAP)	B	$	7,892		$	8,899		$	8,812		$	10,115		$	10,894
Less: Average AOCI, after tax		(3,535)			(2,213)			(1,921)			(379)			340
Average tangible common shareholders' equity excluding AOCI (non-GAAP)	C	$	11,427		$	11,112		$	10,733		$	10,494		$	10,554
Return on average tangible common shareholders' equity (non-GAAP) (1)	A/B	33.20		%	18.02		%	25.40		%	21.00		%	15.07		%
Return on average tangible common shareholders' equity excluding AOCI (non-GAAP) (1)	A/C	22.91		%	14.42		%	20.85		%	20.25		%	15.56		%


		Year Ended
($ amounts in millions)		2022			2021
RETURN ON AVERAGE TANGIBLE COMMON SHAREHOLDERS' EQUITY
Net income available to common shareholders (GAAP)	D	$	2,146		$	2,400
Average shareholders' equity (GAAP)		$	16,503		$	18,201
Less:
Average intangible assets (GAAP)		6,023			5,435
Average deferred tax liability related to intangibles (GAAP)		(103)			(99)
Average preferred stock (GAAP)		1,659			1,658
Average tangible common shareholders' equity (non-GAAP)	E	$	8,924		$	11,207
Less: Average AOCI, after tax		(2,021)			705
Average tangible common shareholders' equity excluding AOCI (non-GAAP)	F	$	10,945		$	10,502
Return on average tangible common shareholders' equity (non-GAAP) (1)	D/E	24.05		%	21.42		%
Return on average tangible common shareholders' equity excluding AOCI (non-GAAP) (1)	D/F	19.61		%	22.85		%

____

*Annualized

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

Regions Financial Corporation and Subsidiaries

Financial Supplement (unaudited) to Fourth Quarter 2022 Earnings Release

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)		12/31/2022			9/30/2022			6/30/2022			3/31/2022			12/31/2021
TANGIBLE COMMON RATIOS
Shareholders’ equity (GAAP)	A	$	15,947		$	15,173		$	16,507		$	16,982		$	18,326
Less:
Preferred stock (GAAP)		1,659			1,659			1,659			1,659			1,659
Intangible assets (GAAP)		5,982			6,005			6,028			6,040			6,049
Deferred tax liability related to intangibles (GAAP)		(103)			(105)			(104)			(101)			(100)
Tangible common shareholders’ equity (non-GAAP)	B	$	8,409		$	7,614		$	8,924		$	9,384		$	10,718
Total assets (GAAP)	C	$	155,220		$	157,798		$	160,908		$	164,082		$	162,938
Less:
Intangible assets (GAAP)		5,982			6,005			6,028			6,040			6,049
Deferred tax liability related to intangibles (GAAP)		(103)			(105)			(104)			(101)			(100)
Tangible assets (non-GAAP)	D	$	149,341		$	151,898		$	154,984		$	158,143		$	156,989
Shares outstanding—end of quarter	E	934			934			934			933			942
Total equity to total assets (GAAP) (1)	A/C	10.27		%	9.62		%	10.26		%	10.35		%	11.25		%
Tangible common shareholders’ equity to tangible assets (non-GAAP) (1)	B/D	5.63		%	5.01		%	5.76		%	5.93		%	6.83		%
Tangible common book value per share (non-GAAP) (1)	B/E	$	9.00		$	8.15		$	9.55		$	10.06		$	11.38

____

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

Regions Financial Corporation and Subsidiaries

Financial Supplement (unaudited) to Fourth Quarter 2022 Earnings Release

Credit Quality


	As of and for Quarter Ended
($ amounts in millions)	12/31/2022		9/30/2022		6/30/2022		3/31/2022		12/31/2021
Components:
Beginning allowance for loan losses (ALL)	$	1,418	$	1,425	$	1,416	$	1,479	$	1,428



Loans charged-off:
Commercial and industrial	38		20		21		23		23
Commercial real estate mortgage—owner-occupied	1		—		1		3		—

Total commercial	39		20		22		26		23
Commercial investor real estate mortgage	5		—		—		—		1

Total investor real estate	5		—		—		—		1
Residential first mortgage	—		1		—		—		1
Home equity—lines of credit	1		2		1		1		1
Home equity—closed-end	—		—		—		1		—
Consumer credit card	11		9		10		10		10
Other consumer—exit portfolios	4		4		4		6		6
Other consumer (1)	33		99		33		33		30
Total consumer	49		115		48		51		48
Total	93		135		70		77		72

Recoveries of loans previously charged-off:
Commercial and industrial	10		12		12		13		12
Commercial real estate mortgage—owner-occupied	1		1		1		—		—

Total commercial	11		13		13		13		12
Commercial investor real estate mortgage	1		—		1		—		—

Total investor real estate	1		—		1		—		—
Residential first mortgage	1		1		1		2		2
Home equity—lines of credit	3		2		4		3		3
Home equity—closed-end	—		—		1		1		1
Consumer credit card	2		2		2		2		3
Other consumer—exit portfolios	1		—		2		2		—
Other consumer	5		7		8		8		7
Total consumer	12		12		18		18		16
Total	24		25		32		31		28

Net charge-offs (recoveries):
Commercial and industrial	28		8		9		10		11
Commercial real estate mortgage—owner-occupied	—		(1)		—		3		—

Total commercial	28		7		9		13		11
Commercial investor real estate mortgage	4		—		(1)		—		1

Total investor real estate	4		—		(1)		—		1
Residential first mortgage	(1)		—		(1)		(2)		(1)
Home equity—lines of credit	(2)		—		(3)		(2)		(2)
Home equity—closed-end	—		—		(1)		—		(1)
Consumer credit card	9		7		8		8		7
Other consumer—exit portfolios	3		4		2		4		6
Other consumer	28		92		25		25		23
Total consumer	37		103		30		33		32
Total	69		110		38		46		44

Provision for (benefit from) loan losses (1)	115		103		47		(17)		86
Initial allowance on acquired purchased credit deteriorated loans	—		—		—		—		9
Ending allowance for loan losses (ALL)	1,464		1,418		1,425		1,416		1,479
Beginning reserve for unfunded credit commitments	121		89		76		95		71
Provision for (benefit from) unfunded credit losses	(3)		32		13		(19)		24
Ending reserve for unfunded commitments	118		121		89		76		95
Allowance for credit losses (ACL) at period end	$	1,582	$	1,539	$	1,514	$	1,492	$	1,574

Regions Financial Corporation and Subsidiaries

Financial Supplement (unaudited) to Fourth Quarter 2022 Earnings Release


Credit Quality (continued)

	As of and for Quarter Ended
($ amounts in millions)	12/31/2022			9/30/2022			6/30/2022			3/31/2022			12/31/2021
Net loan charge-offs as a % of average loans, annualized (2):
Commercial and industrial	0.22		%	0.07		%	0.07		%	0.09		%	0.11		%
Commercial real estate mortgage—owner-occupied	(0.02)		%	(0.06)		%	0.05		%	0.20		%	0.01		%
Commercial real estate construction—owner-occupied	(0.02)		%	(0.08)		%	(0.01)		%	(0.03)		%	0.18		%
Total commercial	0.19		%	0.06		%	0.07		%	0.10		%	0.10		%
Commercial investor real estate mortgage	0.27		%	(0.01)		%	(0.04)		%	(0.01)		%	0.01		%
Commercial investor real estate construction	(0.01)		%	—		%	(0.01)		%	—		%	—		%
Total investor real estate	0.21		%	(0.01)		%	(0.03)		%	(0.01)		%	0.01		%
Residential first mortgage	(0.03)		%	(0.01)		%	(0.01)		%	(0.05)		%	(0.02)		%
Home equity—lines of credit	(0.22)		%	(0.08)		%	(0.31)		%	(0.17)		%	(0.22)		%
Home equity—closed-end	(0.02)		%	(0.09)		%	(0.04)		%	(0.07)		%	(0.16)		%
Consumer credit card	2.94		%	2.39		%	2.70		%	2.83		%	2.42		%
Other consumer—exit portfolios	2.46		%	2.13		%	0.80		%	1.83		%	1.69		%
Other consumer (1)	2.08		%	5.92		%	1.72		%	1.89		%	1.69		%
Total consumer	0.48		%	1.25		%	0.39		%	0.44		%	0.39		%
Total	0.29		%	0.46		%	0.17		%	0.21		%	0.20		%
Non-performing loans, excluding loans held for sale	$	500		$	495		$	369		$	335		$	451
Non-performing loans held for sale	3			2			3			7			13
Non-performing loans, including loans held for sale	503			497			372			342			464
Foreclosed properties	13			14			11			9			10

Non-performing assets (NPAs)	$	516		$	511		$	383		$	351		$	474
Loans past due > 90 days (3)	$	208		$	105		$	107		$	125		$	140


Criticized loans—business (4)	$	3,149		$	2,771		$	2,310		$	2,539		$	2,905
Credit Ratios (2):
ACL/Loans, net	1.63		%	1.63		%	1.62		%	1.67		%	1.79		%
ALL/Loans, net	1.51		%	1.50		%	1.52		%	1.59		%	1.69		%
Allowance for credit losses to non-performing loans, excluding loans held for sale	317		%	311		%	410		%	446		%	349		%
Allowance for loan losses to non-performing loans, excluding loans held for sale	293		%	287		%	386		%	423		%	328		%
Non-performing loans, excluding loans held for sale/Loans, net	0.52		%	0.52		%	0.39		%	0.37		%	0.51		%
NPAs (ex. 90+ past due)/Loans, foreclosed properties, and non-performing loans held for sale	0.53		%	0.54		%	0.41		%	0.39		%	0.54		%
NPAs (inc. 90+ past due)/Loans, foreclosed properties, and non-performing loans held for sale (2)	0.75		%	0.65		%	0.52		%	0.53		%	0.70		%

(1)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.

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

(3)Excludes guaranteed residential first mortgages that are 90+ days past due and still accruing. Refer to the footnotes on page 23 for amounts related to these loans.

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



Allowance for Credit Losses
	Year Ended December 31
($ amounts in millions)	2022		2021
Balance at beginning of year	$	1,574	$	2,293
Net charge-offs	263		204
Provision for (benefit from) loan losses	248		(493)
Provision for (benefit from) unfunded credit losses	23		(31)
Initial allowance on acquired purchased credit deteriorated loans	—		9
Balance at end of year	$	1,582	$	1,574

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															For the Year Ended
($ amounts in millions)	12/31/2022			9/30/2022			6/30/2022			3/31/2022			12/31/2021			2022			2021
Net loan charge-offs (GAAP)	$	69		$	110		$	38		$	46		$	44		$	263		$	204
Less: charge-offs associated with the sale of unsecured consumer loans	—			63			—			—			—			63			—
Adjusted net loan charge-offs (non-GAAP)	$	69		$	47		$	38		$	46		$	44		$	200		$	204
Adjusted net loan charge-offs as a % of average loans, annualized (non-GAAP) (1)	0.29		%	0.19		%	0.17		%	0.21		%	0.20		%	0.22		%	0.24		%

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

Regions Financial Corporation and Subsidiaries

Financial Supplement (unaudited) to Fourth Quarter 2022 Earnings Release

Non-Performing Loans (excludes loans held for sale)


	As of
($ amounts in millions, %'s calculated using whole dollar values)	12/31/2022				9/30/2022				6/30/2022				3/31/2022				12/31/2021
Commercial and industrial	$	347	0.68	%	$	333	0.67	%	$	257	0.53	%	$	216	0.47	%	$	305	0.70	%
Commercial real estate mortgage—owner-occupied	29		0.58	%	29		0.57	%	29		0.55	%	32		0.61	%	52		0.98	%
Commercial real estate construction—owner-occupied	6		1.93	%	6		2.22	%	10		3.92	%	10		3.75	%	11		4.11	%
Total commercial	382		0.68	%	368		0.67	%	296		0.55	%	258		0.50	%	368		0.75	%
Commercial investor real estate mortgage	53		0.83	%	59		0.93	%	3		0.05	%	2		0.04	%	3		0.06	%
Total investor real estate	53		0.63	%	59		0.72	%	3		0.04	%	2		0.03	%	3		0.05	%
Residential first mortgage	31		0.16	%	29		0.16	%	27		0.15	%	31		0.18	%	33		0.19	%
Home equity—lines of credit	28		0.79	%	32		0.90	%	36		1.00	%	37		1.02	%	40		1.08	%
Home equity—closed-end	6		0.24	%	7		0.28	%	7		0.28	%	7		0.28	%	7		0.27	%
Total consumer	65		0.20	%	68		0.22	%	70		0.22	%	75		0.24	%	80		0.25	%
Total non-performing loans	$	500	0.52	%	$	495	0.52	%	$	369	0.39	%	$	335	0.37	%	$	451	0.51	%

Early and Late Stage Delinquencies


Accruing 30-89 Days Past Due Loans	As of
($ amounts in millions, %'s calculated using whole dollar values)	12/31/2022				9/30/2022				6/30/2022				3/31/2022				12/31/2021
Commercial and industrial	$	56	0.11	%	$	77	0.16	%	$	37	0.08	%	$	37	0.08	%	$	64	0.15	%
Commercial real estate mortgage—owner-occupied	9		0.18	%	5		0.09	%	5		0.10	%	6		0.11	%	4		0.09	%
Commercial real estate construction—owner-occupied	—		—	%	—		—	%	—		—	%	1		0.46	%	—		0.07	%
Total commercial	65		0.12	%	82		0.15	%	42		0.08	%	44		0.09	%	68		0.14	%
Commercial investor real estate mortgage	—		—	%	1		—	%	—		—	%	16		0.29	%	—		—	%

Total investor real estate	—		—	%	1		—	%	—		—	%	16		0.23	%	—		—	%
Residential first mortgage—non-guaranteed (1)	86		0.47	%	85		0.47	%	71		0.41	%	58		0.34	%	64		0.38	%
Home equity—lines of credit	30		0.85	%	20		0.58	%	16		0.45	%	20		0.55	%	21		0.57	%
Home equity—closed-end	11		0.44	%	11		0.44	%	11		0.43	%	12		0.47	%	11		0.44	%
Consumer credit card	16		1.26	%	17		1.39	%	13		1.11	%	13		1.12	%	15		1.23	%
Other consumer—exit portfolios	10		1.75	%	10		1.49	%	10		1.31	%	11		1.21	%	14		1.30	%
Other consumer	67		1.18	%	49		0.93	%	48		0.81	%	45		0.82	%	46		0.85	%
Total consumer (1)	220		0.82	%	192		0.73	%	169		0.66	%	159		0.64	%	171		0.67	%
Total accruing 30-89 days past due loans (1)	$	285	0.29	%	$	275	0.29	%	$	211	0.23	%	$	219	0.25	%	$	239	0.27	%

Accruing 90+ Days Past Due Loans	As of
($ amounts in millions, %'s calculated using whole dollar values)	12/31/2022				9/30/2022				6/30/2022				3/31/2022				12/31/2021
Commercial and industrial	$	30	0.06	%	$	4	0.01	%	$	4	0.01	%	$	5	0.01	%	$	5	0.01	%
Commercial real estate mortgage—owner-occupied	1		0.02	%	—		—	%	1		0.02	%	1		0.01	%	1		0.01	%
Total commercial	31		0.05	%	4		0.01	%	5		0.01	%	6		0.01	%	6		0.01	%
Commercial investor real estate mortgage	40		0.63	%	—		—	%	—		—	%	—		—	%	—		—	%
Total investor real estate	40		0.48	%	—		—	%	—		—	%	—		—	%	—		—	%
Residential first mortgage—non-guaranteed (2)	47		0.26	%	50		0.28	%	50		0.29	%	61		0.36	%	74		0.44	%
Home equity—lines of credit	15		0.44	%	17		0.47	%	16		0.46	%	19		0.52	%	21		0.56	%
Home equity—closed-end	8		0.33	%	8		0.31	%	9		0.36	%	11		0.45	%	12		0.49	%
Consumer credit card	15		1.19	%	13		1.12	%	11		0.97	%	12		1.11	%	12		1.04	%
Other consumer—exit portfolios	1		0.19	%	1		0.20	%	2		0.19	%	2		0.19	%	2		0.21	%
Other consumer	17		0.29	%	12		0.22	%	14		0.23	%	14		0.25	%	13		0.23	%
Total consumer (2)	103		0.42	%	101		0.40	%	102		0.41	%	119		0.50	%	134		0.58	%
Total accruing 90+ days past due loans (2)	$	174	0.18	%	$	105	0.11	%	$	107	0.11	%	$	125	0.14	%	$	140	0.16	%

Total delinquencies (1) (2)	$	459	0.47	%	$	380	0.40	%	$	318	0.34	%	$	344	0.39	%	$	379	0.43	%

(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 $46 million at 12/31/2022, $39 million at 9/30/2022, $42 million at 6/30/2022, $39 million at 3/31/2022, and $40 million at 12/31/2021.

(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 $34 million at 12/31/2022, $26 million at 9/30/2022, $28 million at 6/30/2022, $37 million at 3/31/2022, and $49 million at 12/31/2021.