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| 8-K - FORM 8-K - REGIONS FINANCIAL CORP | d251105d8k.htm |
 2011 BancAnalysts Association of Boston
Conference
November 3, 2011
David Turner
Chief Financial Officer
Exhibit 99.1 |
 Why
Regions? •
Strong Southeastern franchise with comprehensive line
of product offerings
•
Leading brand favorability and exceptional service
quality
•
Solid core business performance
•
Aggressively identifying and disposing of problem assets
•
Capital and liquidity remain solid
2 |
 Regional Bank Focused in the Southeast
3
Ranked 4 or Better in Market Share
Targeted Growth Areas
Associates: 26,881
Assets: $130B
Loans: $79B
Deposits: $96B
Branches: 1,767
Morgan Keegan Offices: 303
Insurance Offices: 30
ATMs: 2,130
Market Cap: $5.3B*
* As of October 27, 2011
th |
 4
($ in billions)
National Average: 3.9%
Regions’
Footprint is Characterized by Either High
Market Shares, High Growth Markets or Both
Source: SNL Financial
Note: Core Markets include AL, FL, LA, MS, AR, TN
Weighted Average Deposit Market Share
in Regions’
Core Markets
Rank
Name
Market Share
1
Bank of America
11.5%
2
Regions
9.8%
3
Wells Fargo
9.4%
4
SunTrust
6.9%
5
JPMorgan Chase
3.3%
6
BB&T
2.5%
7
Capital One
2.3%
8
First Horizon
2.0%
9
Hancock
1.9%
10
PNC
1.4%
Top 10 MSAs
Deposits
Market
Share
Market
Rank
’10-’15 Population
Growth
Birmingham, AL
$11.0
37.6%
1
Nashville, TN
$6.6
17.3%
1
Miami, FL
$4.8
3.1%
7
Tampa, FL
$4.4
8.7%
4
Memphis, TN
$3.8
16.8%
2
Atlanta, GA
$3.4
3.0%
6
St. Louis, MO
$3.0
4.7%
4
Jackson, MS
$2.8
25.5%
2
New Orleans, LA
$2.4
8.3%
4
Mobile, AL
$2.3
38.2%
1
3.4%
9.6%
1.4%
3.7%
4.3%
10.1%
2.0%
4.4%
8.8%
1.0% |
 Comprehensive and Diversified Line of
Product Offerings
Business Services
–
Small and mid-
sized C&I lending
–
Commercial Real
Estate
–
Equipment
5
Consumer Services
–
Mortgage
–
Home Equity
–
Credit Card
–
Direct Lending
–
Indirect Auto
Wealth Management
–
Private Banking
–
Insurance
–
Trust Services
Finance |
 Competitive Advantage Driven by Customer
Loyalty
Regions continues to
perform in the top 10%
in customer loyalty and
top 20% for branch
service quality
(1)
(1)
Based on Gallup survey
(2)
Based on Prime Performance study
(3)
2010 Greenwich Excellence Award
#1 in Customer Service and
“Friendliest”
Bank
(2)
Regions received
Excellence Award
for Small Business
and Middle Market
Banking
(3)
6
Top Bank in
Customer
Service Study
Ranked 2 in Satisfaction for
Mortgage Servicing
J.D.
Power
AND ASSOCIATES
nd |
 Excellent Service Quality and Brand Strength
Being Recognized
(1)
Based on 4 Quarter Rolling Average from TNS Consumer Banking Market Effectiveness
Study as of June 30, 2011 Note:
Banks in study include: Bank of America, BB&T, BBVA Compass, Citigroup, Capital
One, J.P. Morgan Chase, SunTrust, U.S. Bank, Wachovia/Wells Fargo
Regions
Ranks
Highest
in
Brand
Favorability
(1)
7
Regions
Bank #2
Bank #3
Bank #4
Bank #5
Bank #6
Bank #7
Bank #8
Bank #9
Bank #10 |
 Quality Loans Key to Profitable Growth
61%
39%
Portfolio Mix*
Consumer Services
›
Growing consumer loans to achieve a
more balanced portfolio
›
Consumer loan growth will be fueled by
new businesses as well as growth in
existing businesses
›
Loan production in mortgage
grew 9% over prior quarter
›
Acquired $1.2 billion Regions-
branded credit portfolio
›
Indirect auto lending grew 4%
linked quarter
Business Services
›
Focused on middle market & small
business
›
Represents over 80% of
Business Services Revenue
›
Broad based middle-market
commercial loan growth across
footprint and industries
›
55% of area regions
experienced growth in 3Q11
*Ending Balances
8 |
 Regions has Continued to Grow C&I Loans
9
Loan Growth Quarter to Quarter
•
Our Commercial & Industrial
loan growth has significantly
outpaced peers over the past
year
•
Momentum has continued in
2011, as Commercial &
Industrial loans have grown
another 7.8%
•
Commercial & Industrial
commitments increased 7%
year-to-date and line utilization
remained stable
1.9%
4.8%
2.7%
2.1%
2.7%
3Q10
4Q10
1Q11
2Q11
3Q11 |
 Low Cost
Deposits
74%
Time
Deposits
26%
Low Cost
Deposits
77%
Time
Deposits
23%
Low Cost
Deposits
78%
Time
Deposits
22%
27 bps Improvement
10
7 bps Improvement
24 bps Improvement
We have made great strides in improving deposit mix
and cost and funding costs
Q3 2010
Q2 2011
Q3 2011
Total
Funding
Cost
102 bps
Total
Funding
Cost
80 bps
Total
Funding
Cost
75 bps
Deposit Cost
70 bps
Deposit Cost
53 bps
Deposit Cost
46 bps |
 Balance Sheet Opportunities Remain
11
Deposit Cost Opportunity Gap
•
Regions has additional room to reduce
deposit costs even further
•
Opportunity to reduce deposit costs,
most significantly through profitably re-
pricing maturing CDs
•
Higher cost CDs maturing
•
4Q11 -
$2.4 B at 1.32%
•
2012 -
$10.7 B at 1.59%
•
$6 billion of cash in Fed Funds at
September 30
Note: Peer banks include BAC, BBT, CMA, FITB, KEY, MTB, PNC, STI, USB,
WFC 12
8
40
38
Peer Median
Regions Opportunity Gap
2Q11
3Q11 |
 Net
Interest Margin Impacted by Cash Reserves and Non-Accrual Loans
Impact of Excess Liquidity &
Non-Accruals on NIM
12
Regions has closed a portion of its
gap vs. the peers in the last 5 quarters
Note: Peer banks include BAC, BBT, CMA, FITB, KEY, MTB, PNC, STI, USB,
WFC 2.96%
3.00%
3.07%
3.05%
3.02%
0.13%
0.16%
0.16%
0.16%
0.16%
0.15%
0.14%
3.20%
3.27%
3.33%
3.33%
3.32%
3Q10
4Q10
1Q11
2Q11
3Q11
0.08%
0.11%
0.10%
2.0%
2.2%
2.4%
2.6%
2.8%
3.0%
3.2%
3.4%
Reported Net Interest Margin
Impact of Excess Liquidity
Impact of Non
Accruals
2.50%
2.70%
2.90%
3.10%
3.30%
3.50%
3.70%
3.90%
2Q10
3Q10
4Q10
1Q11
2Q11
3Q11
Peer Group Average
Regions
3.67%
3.65%
3.63%
3.60%
3.55%
3.49%
2.87%
2.96%
3.00%
3.07%
3.05%
3.02%
80 bps
47 bps |
 Service Charge Income Remains Strong
13
Offsetting Durbin
•
Ongoing restructuring of our
accounts to fee-eligible
•
Increasing hurdle obtaining free
checking
•
Shift debit cards to credit cards
to increase interchange fees
•
Cross-sell new revenue
initiatives
Service Charge Growth
2.4%
5.4%
YTD Growth
Year-
Over-
Year Growth |
 Expense control continues to be a focus
14
* On an adjusted basis, refer to appendix for non-GAAP reconciliation
Source:
SNL
Financial
–
excludes
nonrecurring
expenses
Note: Peer banks include BAC, BBT, CMA, FITB, KEY, MTB, PNC, STI, USB,
WFC Year-Over-Year % Change
NIE Per FTE
•
Year-over-year
Regions’
expenses*
have declined 8%
while many peers
continue to grow
expenses
•
While many peers
grew expenses in the
third quarter, Regions
decreased expenses*
by 5%
•
Expenses per FTE
are among the lowest
of all peers |
 * Refer to appendix for reconciliation to GAAP
** Net income available to common shareholders
15
Strong Net Income and Adjusted Pre-tax
Pre-Provision Income Growth
($ in
millions)
Net
Interest
Income
Adjusted
Non-
Interest
Revenue*
Adjusted
Non-
Interest
Expense*
Adjusted
Pre-tax
Pre-
provision
Income*
Net
Income**
3Q11
858
+
748
-
1,066
=
540
$101
2Q11
864
+
757
-
1,121
=
500
$55
1Q11
863
+
764
-
1,167
=
460
$17
4Q10
877
+
795
-
1,211
=
461
$36
3Q10
868
+
748
-
1,162
=
454
($209)
+19%
+19%
+148
+148% |
 16
Significant Reduction in Highest Risk Portfolio
Segments
Reduced Investor Real Estate $13.9 B
or
54%
over 4 years
Reduced High Risk Segments $11.5 B
or
85%
over 4 years
Total Investor Real Estate
Higher Risk Investor Real Estate Segments |
 17
Credit Quality Metrics Linked Quarter
Net charge-offs declined 7%
Provided
less
than
net
charge-offs
for
2
straight
quarter
Non-performing loans declined 3%
Non-performing assets declined 6%
Business Services criticized loans declined 8%
Loan loss allowance to net loans declined 11bps to 3.73%
Delinquencies
improved
for
the
6
straight
quarter
nd
th |
 18
Non-Performing Assets Decline 6%
NPL and NPA to Loans
Non-Performing Assets
(1) NPAs (inc. 90+ past due) / Loans, foreclosed properties and non-performing
loans held for sale |
 Substantial Improvement in Loan Loss Provision;
Allowance Well Above Peers
(1) Loan charge-offs related to Sales and Transfer to Held for Sale
Note: Peer banks include BAC, BBT, CMA, FITB, KEY, MTB, PNC, STI, USB,
WFC 19
Loan Charge-Offs
Allowance versus Peers
Sales/
HFS
(1) |
 Strong Capital
20
*
See appendix for non-GAAP reconciliation
**
Non-GAAP
-
Subject
to
change
as
interpretation
of
Basel
III
rules
is
ongoing
and
dependent
on
guidance
from
Basel
and
regulators;
see
appendix for reconciliation
7.6%
7.9%
7.9%
7.9%
8.2%
7.7%
12.1%
12.4%
12.5%
12.6%
12.8%
11.3%
3Q10
4Q10
1Q11
2Q11
3Q11
3Q11
Basel III**
Tier 1 Common*
Tier 1 |
 Loans / Deposits
Core Deposits as a % of Total Funding
Solid Liquidity
Note: Peer banks include BAC, BBT, CMA, FITB, KEY, MTB, PNC, STI, USB,
WFC 89%
89%
88%
86%
85%
85%
84%
81%
81%
78%
56%
Bank
#1
Bank
#2
RF
Bank
#4
Bank
#5
Bank
#6
Bank
#7
Bank
#8
Bank
#9
Bank
#10
Bank
#11
3Q10
4Q10
1Q11
2Q11
3Q11
89%
88%
84%
84%
83%
21 |
 Regions’
Business Plan
is for all associates to
Focus on customers, build
relationships customers value
and manage risks.
Executing this
plan with excellence will result in a
high-performing financial institution.
Focus on the Customer
Build Sustainable Performance
Enhance Risk Management
Risk management will be built on our solid
foundation of trust and integrity. We will
clearly understand the risk we take, be paid
appropriately for that risk and prudently
manage our capital and
liquidity. Business
Plan 22
We will ensure sustainable
profitability by diversifying
and expanding our revenue
streams while exercising
disciplined pricing and
expense management.
We will focus on our
customers to build
relationships they value and
enhance our industry-
leading customer service. |
 Stronger Company Today
4Q07
3Q11
Change
Investor Real Estate
$23B
$12B
48% Reduction
Allowance for Loan Losses
$1.3B
$3.0
More than
doubled
Tier 1 Common Ratio*
6.6%
8.2%
160 bps
improvement
Low Cost Deposits
$60.3B
$75.5B
25% Growth
Loan to Deposit
100%
83%
Strong Liquidity
23
*
See appendix for non-GAAP reconciliation |
 Forward-Looking Statements
24
This presentation may include forward-looking statements which reflect Regions’ current views
with respect to future events and financial performance. The Private Securities Litigation Reform
Act of 1995 (“the Act”) provides a “safe harbor” for forward-looking
statements which are identified as such and are accompanied by the identification of important factors that could cause actual
results to differ materially from the forward-looking statements. For these statements, we,
together with our subsidiaries, claim the protection afforded by the safe harbor in the Act. 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 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, uncertainties and other factors that
may cause actual results to differ materially from the views, beliefs and projections expressed
in such statements. These risks, uncertainties and other factors include, but are not limited
to, those described below: ›
The Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Dodd-Frank Act")
became law on July 21, 2010, and a number of legislative, regulatory and tax proposals remain
pending. Additionally, the U.S. Treasury and federal banking regulators continue to implement, but are
also beginning to wind down, a number of programs to address capital and liquidity in the
banking system. Proposed rules, including those that are part of the Basel III process, could require banking institutions to increase levels of capital. All of the foregoing may have
significant effects on Regions and the financial services industry, the exact nature of which cannot
be determined at this time. ›
Regions' ability to mitigate the impact of the Dodd-Frank Act on debit interchange fees through
revenue enhancements and other revenue measures, which will depend on various factors including
the acceptance by our customers of modified fee structures for Regions' products and services.
›
The impact of compensation and other restrictions imposed under the Troubled Asset Relief Program
(“TARP”) until Regions repays the outstanding preferred stock and warrant issued
under the TARP, including restrictions on Regions’ ability to attract and retain talented
executives and associates. ›
Possible additional loan losses, impairment of goodwill and other intangibles, and adjustment of
valuation allowances on deferred tax assets and the impact on earnings and capital. ›
Possible changes in interest rates may increase funding costs and reduce earning asset yields,
thus reducing margins. Increases in benchmark interest rates would also increase debt service
requirements for customers whose terms include a variable interest rate, which may negatively impact the ability of borrowers to pay as contractually obligated.
›
Possible changes in general economic and business conditions in the United States in general and in
the communities Regions serves in particular, including any prolonging or worsening of the
current unfavorable economic conditions including unemployment levels. ›
Possible changes in the creditworthiness of customers and the possible impairment of the
collectability of loans. ›
Possible changes in trade, monetary and fiscal policies, laws and regulations and other activities of
governments, agencies, and similar organizations, may have an adverse effect on business.
›
The current stresses in the financial and real estate markets, including possible continued
deterioration in property values. ›
Regions' 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 Regions' business.
›
Regions' ability to expand into new markets and to maintain profit margins in the face of competitive
pressures. ›
Regions' ability to develop competitive new products and services in a timely manner and the
acceptance of such products and services by Regions' customers and potential customers. ›
Regions' ability to keep pace with technological changes.
›
Regions' ability to effectively manage credit risk, interest rate risk, market risk, operational risk,
legal risk, liquidity risk, and regulatory and compliance risk. ›
Regions’ ability to ensure adequate capitalization which is impacted by inherent uncertainties in
forecasting credit losses. ›
The cost and other effects of material contingencies, including litigation contingencies, and any
adverse judicial, administrative or arbitral rulings or proceedings. ›
The effects of increased competition from both banks and non-banks.
›
The effects of geopolitical instability and risks such as terrorist attacks.
›
Possible changes in consumer and business spending and saving habits could affect Regions' ability to
increase assets and to attract deposits. ›
The effects of weather and natural disasters such as floods, droughts, wind, tornados and hurricanes,
and the effects of man-made disasters. ›
Possible downgrades in ratings issued by rating agencies.
›
Potential dilution of holders of shares of Regions’ common stock resulting from the U.S.
Treasury’s investment in TARP. ›
Possible changes in the speed of loan prepayments by Regions’ customers and loan origination or
sales volumes. ›
Possible acceleration of prepayments on mortgage-backed securities due to low interest rates and
the related acceleration of premium amortization on those securities. ›
The effects of problems encountered by larger or similar financial institutions that adversely affect
Regions or the banking industry generally. ›
Regions’ ability to receive dividends from its subsidiaries.
›
The effects of the failure of any component of Regions’ business infrastructure which is provided
by a third party. ›
Changes in accounting policies or procedures as may be required by the Financial Accounting Standards
Board or other regulatory agencies. ›
The effects of any damage to Regions’ reputation resulting from developments related to any of
the items identified above. The foregoing list of factors is not exhaustive. For discussion of
these and other factors that may cause actual results to differ from expectations, look under the captions “Forward-Looking
Statements” and “Risk Factors” in Regions’ Annual Report on Form 10-K for the
year ended December 31, 2010 and quarterly report on Forms 10-Q for the quarters ended September 30, 2011,
June 30, 2011 and March 31, 2011, as on file with the Securities and Exchange Commission.
The words "believe," "expect," "anticipate," "project," and similar
expressions often signify forward-looking statements. You should not place undue reliance on any forward-looking statements,
which speak only as of the date made. We assume no obligation to update or revise any
forward-looking statements that are made from time to time. |
 Non-GAAP Reconciliation
25
($ in millions)
3Q10
4Q10
1Q11
2Q11
3Q11
Net interest income (GAAP)
868
$
877
$
863
$
864
$
858
$
Non-interest income (GAAP)
750
1,213
843
781
745
Adjustments:
Securities (gains) losses, net
(2)
(333)
(82)
(24)
1
Leveraged lease termination (gains) / losses
-
(59)
-
-
2
Loss (gain) on sale of mortgage loans
-
(26)
3
-
-
Adjusted non-interest income (non-GAAP)
748
795
764
757
748
Adjusted total revenue (non-GAAP)
1,616
$
1,672
$
1,627
$
1,621
$
1,606
$
Non-interest expense (GAAP)
1,163
$
1,266
$
1,167
$
1,198
$
1,066
$
Adjustments:
Loss on extinguishment of debt
-
(55)
-
-
-
Securities impairment, net
(1)
-
-
-
-
Branch consolidation and property and equipment charges
-
-
-
(77)
-
Adjusted non-interest expense (non-GAAP)
1,162
$
1,211
$
1,167
$
1,121
$
1,066
$
Adjusted pre-tax pre-provision income
454
$
461
$
460
$
500
$
540
$ |
 Non-GAAP Reconciliation: Capital
26
($ amounts in millions, except per share data)
9/30/11
6/30/11
3/31/11
12/31/10
9/30/10
TIER 1 COMMON RISK-BASED RATIO
Stockholders' equity (GAAP)
17,263
$
16,888
$
16,619
$
16,734
$
17,163
$
Accumulated other comprehensive (income) loss
(93)
177
387
260
(208)
Non-qualifying goodwill and intangibles
(5,649)
(5,668)
(5,686)
(5,706)
(5,729)
Disallowed deferred tax assets
(506)
(498)
(463)
(424)
(427)
Disallowed servicing assets
(36)
(35)
(28)
(27)
(20)
Qualifying non-controlling interests
92
92
92
92
92
Qualifying trust preferred securities
846
846
846
846
846
Tier 1 capital (regulatory)
11,917
$
11,802
$
11,767
$
11,775
$
11,717
$
Qualifying non-controlling interests
(92)
(92)
(92)
(92)
(92)
Qualifying trust preferred securities
(846)
(846)
(846)
(846)
(846)
Preferred stock
(3,409)
(3,399)
(3,389)
(3,380)
(3,370)
Tier 1 common equity (non-GAAP)
K
7,570
$
7,465
$
7,440
$
7,457
$
7,409
$
Risk-weighted assets (regulatory)
L
92,786
93,865
93,929
94,966
97,088
Tier 1 common risk-based ratio (non-GAAP)
K/L
8.2%
7.9%
7.9%
7.9%
7.6%
As of and for Quarter Ended |
 27
Non-GAAP Reconciliation: Capital Basel III
($ amounts in millions)
9/30/11
Stockholders' equity (GAAP)
17,262
Non-qualifying
goodwill
and
intangibles
(1)
(5,820)
Adjustments, including other comprehensive income related to cash flow hedges,
disallowed deferred tax assets, threshold deductions and other
adjustments (809)
10,633
Qualifying non-controlling interests
4
Basel III Tier 1 Capital (non-GAAP)
10,637
Basel III Tier 1 Capital (non-GAAP)
10,637
Preferred Stock
(3,409)
Qualifying non-controlling interests
(4)
Basel III Tier 1 Common (non-GAAP)
7,224
Basel I risk-weighted assets
92,786
Basel
III
risk-weighted
assets
(2)
94,384
Minimum
Basel III Tier 1 Capital Ratio
11.3%
8.5%
Basel III Tier 1 Common Ratio
7.7%
7.0%
(1)
Under Basel III, regulatory capital must be reduced by purchased credit card relationship intangible
assets. These assets are partially allowed in Basel I capital.
(2)
Regions continues to develop systems and internal controls to precisely calculate risk-weighted
assets as required by Basel III. The amount included above is a reasonable approximation, based
on our understanding of the requirements. |
 Continued Improvement in Early Stage Credit
Metrics
28
90+ Day Delinquencies
30-59 Day Delinquencies
Business Services Criticized Loans *
Business Services Classified Loans
*Includes classified loans and special mention loans
3Q10
4Q10
1Q11
2Q11
3Q11
3Q10
4Q10
1Q11
2Q11
3Q11
3Q10
4Q10
1Q11
2Q11
3Q11
3Q11
2Q11
1Q11
4Q10
3Q10
$7,929
$7,337
$6,688
$5,824
$5,408
$10,593
$9,804
$9,142
$7,900
$7,305
$766
$642
$676
$566
$518
$593
$585
$527
$483
$412 |
 Credit Quality Metrics
29
Total NPLs (excluding HFS)
Total NPAs (including HFS)
NPLs Gross Migration
Investor Real Estate Gross NPA Migration
* Previous presentation showed 2Q11 on a pro-forma basis to include completed
bulk sale after quarter-end. Current presentation shows actual 2Q11 and
3Q11 numbers as reported. $1,340
$947
$730
$555
$755
3Q10
4Q10
1Q11
2Q11
3Q11
$3,372
$3,160
$3,087
$2,784
$2,710
3Q10
4Q10
1Q11
2Q11
3Q11
516
270
224
134
273
480
335
179
137
245
$996
$605
$403
$271
$518
3Q10
4Q10
1Q11
2Q11
3Q11
Land/Single
Family/Condo
Income
Producing CRE
$4,226
$3,918
$3,933
$3,602
$3,391
3Q10
4Q10
1Q11
2Q11*
3Q11 |
 30
Credit Fundamentals
NCO’s Avg Loans
NPAs + 90 day Delinquencies
NPAs
+
90
Day
Delinquencies/Loans
+
OREO
+ HFS
NPL Balances Paying
Current and as Agreed
* Previous presentation showed 2Q11 on a pro-forma basis to include completed
bulk sale after quarter-end. Current presentation shows actual 2Q11 and
3Q11 numbers as reported. 3Q10
4Q10
1Q11
2Q11
3Q11
3Q10
4Q10
1Q11
3Q11
3Q10
4Q10
1Q11
3Q11
3Q10
4Q10
1Q11
2Q11
3Q11
3.52%
3.22%
2.37%
2.71%
2.52%
5.65%
5.38%
5.42%
4.98%
4.75%
$4,819
$4,503
$4,460
$4,085
$3,803
36%
37%
38%
42%
45%
2Q11*
2Q11* |
 Allowance Coverage Remains Strong
31
Allowance for Loan Losses to NPLs (excl HFS)
Allowance for Loan Losses to Total Loans
94%
101%
103%
112%
109%
3Q10
4Q10
1Q11
2Q11
3Q11
3.77%
3.84%
3.92%
3.84%
3.73%
3Q10
4Q10
1Q11
2Q11
3Q11 |
 32
Conservative Marks and Reserves
Already Taken on Impaired Loans
Impaired Loans as of September 30, 2011
A
B
C= (A -
B)
D
E = (B + D) / A
($ millions)
Unpaid
Principal
Balance
Charge-Offs
and Pmts
Applied
Total Impaired
Loan Book
Value
Related
Allowance for
Loan Loss
Coverage %
Total Commercial and Industrial
812
$
86
$
726
$
197
$
34.8%
Total Commercial Real Estate Mortgage -
OO
960
108
852
216
33.7%
Total Commercial Real Estate Construction -
OO
43
15
28
8
54.2%
Total Commercial
1,815
208
1,606
421
34.7%
Total Commercial Investor Real Estate Mortgage
1,847
172
1,675
439
33.1%
Total Commercial Investor Real Estate Construction
552
111
441
171
51.2%
Total Commercial Investor Real Estate
2,399
284
2,116
610
37.3%
Residential First Mortgage
1,168
66
1,102
158
19.1%
Home Equity
447
14
433
61
16.8%
Indirect
2
-
2
0
0.9%
Consumer Credit Card
-
-
-
Other Consumer
59
0
59
1
1.4%
Total Consumer
1,676
80
1,596
220
17.9%
Total
5,890
$
572
$
5,318
$
1,251
$
30.9%
Note1: Impaired loans include non-accrual commercial and investor real estate loans, excluding
leasing, and all TDRs (including accruing commercial, investor real estate, and consumer TDRs) Note 2: Book value
represents the unpaid principal balance less charge-offs and payments applied; it is shown before any allowance for loan losses.
Note 3: Unpaid principal balance represents the contractual obligation due from the customer and
includes the net book value plus charge-offs and payments applied. |
 33
Adequately Reserved for Troubled Debt
Restructurings
Consumer loans make up 50% of accruing troubled debt restructurings
Foreclosure rate less than half of the industry average
September 30, 2011
($ millions)
Loan
Allowance for
Allowance as a %
Balance
Credit Losses
of Loan Balance
Accruing:
Commercial
477
83
17%
Investor Real Estate
991
252
25%
Residential First Mortgage
888
127
14%
Home Equity
403
57
14%
Other Consumer
60
1
1%
Total Accruing
2,819
520
18%
Non-accrual or 90+ DPD:
Commercial
372
93
25%
Investor Real Estate
474
145
31%
Residential First Mortgage
214
31
14%
Home Equity
30
4
14%
Other Consumer
1
0
1%
Total Non-accrual or 90+DPD
1,091
273
25%
Total Troubled Debt Restructurings
3,910
793
20% |