Regions Financial Corporation (RF)

Get RF Alerts
*Delayed - data as of Nov. 24, 2015  -  Find a broker to begin trading RF now
Exchange: NYSE
Industry: Finance
Community Rating:
Symbol List Views
FlashQuotes InfoQuotes
Stock Details
Summary Quote Real-Time Quote After Hours Quote Pre-market Quote Historical Quote Option Chain
Basic Chart Interactive Chart
Company Headlines Press Releases Market Stream
Analyst Research Guru Analysis Stock Report Competitors Stock Consultant Stock Comparison
Call Transcripts Annual Report Income Statement Revenue/EPS SEC Filings Short Interest Dividend History
Ownership Summary Institutional Holdings Insiders
(SEC Form 4)
 Save Stocks

Regions Financial Corporation (RF)

Q2 2009 Earnings Call

July 21, 2009; 11:00 am ET


Dowd Ritter - Chairman & Chief Executive Officer

Irene Esteves - Chief Financial Officer

Bill Wells - Chief Risk Officer

Mike Willoughby - Chief Credit Officer

Barb Guidon - Head of Consumer Credit

List Underwood - Investor Relations


Craig Siegenthaler - Credit Suisse

Matthew O’Connor - Deutsche Bank

Kevin Fitzsimmons - Sandler O’Neill.

Kenneth Usdin - Banc of America

Brian Foran - Goldman Sachs

Chris Mutascio - Stifel Nicolaus

Jason Goldberg - Barclays Capital



Good morning and welcome to the Regions Financial Corporation’s quarterly earnings call. My name is Jennifer and I will be your operator for today’s call. I would like to remind everyone that all participant phone lines have been placed on listen-only. At the end of the call, there will be a question-and-answer session. (Operator instructions)

I will now turn the call over to Mr. List Underwood, before Mr. Ritter begins the conference call.

List Underwood

Thank you, operator and good morning everyone. We appreciate very much your participation. Our presenters today are Chairman and Chief Executive Officer Dowd Ritter; and our Chief Financial Officer; Irene Esteves. Also joining us and available to answer questions are Bill Wells, our Chief Risk Officer; Mike Willoughby, our Chief Credit Officer; and Barb Guidon, our Head of Consumer Credit.

Let me quickly touch on our presentation format. We have prepared a short slide presentation to accompany Irene’s comments. It’s available under the IR section of For those of you in the investment community that dialed in by phone, once you are on the Investor Relations section of our website, just click on via phone player and the slides will automatically advance in sync with the audio of Irene’s presentation. A copy of the slides will be available on our website shortly after the call.

Our presentation this morning will discuss Regions business outlook and includes forward-looking statements. These statements may include descriptions of management’s plans, objectives, or goals for future operations, products and services, forecasts of financial or other performance measures, statements about the expected quality, performance or collect ability of loans and statements about Regions general outlook for economic and business conditions.

We also may make other forward-looking statements in the question-and-answer period following the discussion. These forward-looking statements are subject to a number of risks and uncertainties, and actual results may differ materially. Information on the risk factors that could cause actual results to differ is available from today’s earnings press release, in today’s Form 8-K, our 10-Q for the quarter ended March 31, 2009 and in our Form 10-K for the year ended December 31, 2008.

As a reminder, forward-looking statements are effective only as of the date they are made and we assume no obligation to update information concerning our expectations. Let me also mention that our discussions may include the use of non-GAAP financial measures. A reconciliation of these to the same measures on a GAAP basis can be found in our earnings release and related supplemental financial schedules.

Now, let me turn it over to Dowd.

Dowd Ritter

Thank you, List and thank all of you for joining us this morning for our second quarter earnings conference call. Earlier this morning, we reported the second quarter loss of $0.28 per fully diluted share, reflecting our actions to realize and provide for losses in Regions loan portfolio. Although, I certainly don’t want to downplay the second quarter’s sizable credit cost and their bottom line effect. I do want to take for a minute about the fact that those costs are masking favorable progress on several fronts.

Our net interest income increased, our deposit growth remains strong. Our new account openings were at record level for the second consecutive quarter and our brokerage income rebounded. At the same time, we significantly strengthened our balance sheet, meeting the requirement to increase our capital buffer by $2.5 billion including adding approximately $2.1 billion of Tier 1 common equity and successfully fulfilling the regulatory stress test requirements.

In fact with our total risk based capital ratio and an estimated 16.2%, our Tier 1 capital ratio with 12.2% and our Tier 1 common ration with 8.1% as of June 30, we would compare very favorably with our peers, and further strengthening our balance sheet are allows for credit losses was increased as of June 30 to 2.43% of loans.

Irene will provide more detail on second quarter results, but first I did want to spend a few minutes talking about some of the initiatives that are enhancing Regions earnings power as we continue to proactively de-risk the balance sheet. Providing excellent customer service and a broad range of quality products is at the core of our focus on building profitable client relationships and we’re experiencing very positive results.

In the second quarter, our average customer deposits were up 3% from the preceding quarter. Year-to-date June, 30 new retail and business checking account openings are higher about 29% and were a record 491,000 new accounts putting us well on track to achieve a goal that was set at the start of year of over one million new checking accounts, further confirmation of our efforts in this recent national recognition that we’ve received, the most important of which relates to our relationships with customers.

A recent J.D. Power associate survey measuring customer satisfaction with their primary bank, Regions rates as the most improved retail buying passing 29 other banks in the ranking process. Also, in a recent Gallup poll, Regions ranked second highest among banks that were tested, when it comes to customer confidence and trust in your primary bank.

Read the rest of this transcript for free on