Regions Financial (RF) investor relations material

Macroeconomic and business environment

• Business sentiment remains positive with strong balance sheets and ongoing investments, especially in the Southeast and Texas markets.

• Consumer spending is robust, with debit and credit card transactions and spending up 4–8%.

• Unemployment rates are low, and job growth is evident through new investments and project expansions.

• Wholesale sector stability is observed, supporting overall economic health.

Loan growth and credit quality

• Loan growth in Q1 was driven equally by increased line utilization and new originations, with strength in energy, utilities, healthcare, asset-based lending, and REITs.

• Loan pipelines and utilization remain stable, with momentum holding up post-quarter.

• Loan spreads tightened, reflecting better credit quality but lower yields; spreads expected to remain tight for several months.

• Profitability remains strong despite competitive pressures.

Deposit base and competition

• Operating at a 74% loan-to-deposit ratio, with a stable, mass-market deposit base and strong treasury management relationships.

• Average consumer deposit is $5,400, with a median of $900, indicating a blue-collar customer base with limited investable assets.

• Competition in the Southeast is intense, but proactive customer engagement and platform investments are key to defending and growing market share.

• AI-driven yield-seeking behavior is not expected to impact the core customer base soon due to limited excess liquidity.