Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - REGIONS FINANCIAL CORP | d577634d8k.htm |
 Growth in Consumer Lending
Evercore Financials Forum
August 6, 2013
Logan Pichel
Head of Consumer Lending
Exhibit 99.1 |
 2
Overview
Total loan portfolio*
Consumer portfolio*
*Ending balances as of June 30, 2013
Industrial
management
39%
61%
39%
44%
9%
3%
5%
Business
Services
Consumer
Services
Residential
1st Mortgage
Home equity
Indirect
Credit card
Other
Consumer Services
Consumer Lending
Other
Mortgage
Corporate Marketing
Home Equity
Cards and Payments
Credit Card
eBusiness
Indirect
Delivery and branch
Direct
support
Business Services
Business capital
Capital markets
Commercial &
Equipment Finance
Real Estate banking
Treasury
Wealth Management
Institutional services
Private wealth management
Investment services
Insurance |
 3
($ in billions)
Consumer lending –
loan production
2013 production has returned to pre-crisis levels and is becoming more
balanced $11.3
$10.1
$9.2
$11.2
$5.7
2009
2010
2011
2012
June 2013 YTD
Mortgage
Home Equity
Indirect Auto
Credit Card
Direct |
 4
Consumer lending –
balance change
Increased production is resulting in balance sheet improvement
($ in billions)
$(2.4)
$(2.1)
$(2.5)
$(1.6)
$(0.3)
2009
2010
2011
2012
June 2013 YTD |
 5
Indirect auto lending
Industry growth and growth in number of dealers
($ in billions)
OPPORTUNITIES
•
Industry growth
•
Expand dealer network
•
Increase loans per
dealer
•
Automated approvals
CHALLENGES
•
Compliance
$0.2
$1.1
$0.2
$1.5
$0.5
$0.9
$0.3
$(0.9)
2010
2011
2012
June 2013 YTD
Production
Balance Change |
 6
Direct lending
and expanded delivery channels will grow production
($ in billions)
OPPORTUNITIES
•
•
10% of Regions
households have
a direct loan
•
Point-of-sale pre-
approvals
•
Direct to consumers
sales initiatives
CHALLENGES
•
Reductions in average
loan size
$0.5
$0.5
$0.5
$0.5
$0.2
$0.00
$0.05
$0.02
$(0.03)
$(0.06)
2009
2010
2011
2012
June 2013
YTD
Production
Balance Change |
 7
($ in billions)
OPPORTUNITIES
•
•
Increased
consumer
household
penetration
•
Expansion of account
activation / utilization
•
Loyalty programs
CHALLENGES
•
Elevated payment
rates
First year of Regions operating platform
Credit Card
$0.4
$0.4
$0.2
$0.02
$0.00
$(0.08)
2011
2012
June 2013 YTD
Production
Balance Change |
 8
Home equity lending
Balanced production HELOANs (60%) and HELOCs (40%)
($ in billions)
OPPORTUNITIES
•
Improvements in the
economy and real
estate values
•
Slower run-off as
mortgage refinances
decline
•
Approved not booked
CHALLENGES
•
Portfolio is still declining
$1.2
$1.2
$0.9
$0.8
$0.6
$(0.7)
$(1.1)
$(1.2)
$(1.2)
$(0.4)
2009
2010
2011
2012
June 2013
YTD
Production
Balance Change |
 9
Mortgage lending
($ in billions)
OPPORTUNITIES
•
Purchase business
•
53% in 2Q
•
Expand sales force
•
HARP refinance
•
•
Mortgage Loan
Originator branding
•
Branch referrals
•
Servicing rights acquisitions
CHALLENGES
•
Reduced refinance volume
•
Margin pressure
•
Compliance
Retaining the 15 year fixed-rate product in the portfolio
$9.6
$8.2
$6.3
$8.0
$3.7
($0.3)
$(0.2)
$(1.6)
$(0.8)
$(0.2)
2009
2010
2011
2012
June 2013
YTD
Production
Balance Change |
 10
•
Strong
Customer
Satisfaction
Scores
–
Originations
&
Servicing
•
Low Cost Originator and Servicer
•
Low risk model
•
Retail production in footprint
•
Servicing retained
•
Servicing rights acquisitions are in footprint agency loans
•
Fully integrated with the bank
•
30% of Mortgage Production results from Bank referrals
•
32% of Mortgage only customers become Bank deposit customers
•
Capacity to grow
•
$40b in annual home financing needs from Bank customers
•
Servicing
Business
has
capacity
-
$42b
Servicing
Portfolio
Regions mortgage
Well-positioned for the shift to purchase volume |
 11
Mortgage
85%
Home
Equity
11%
Direct
4%
Mortgage
66%
Home
Equity
10%
Indirect
Auto
16%
Direct
4%
Credit
Card
4%
2009
2013
Balanced production
means more balanced production. Understanding and meeting customer
needs
and
in
turn
building
long-lasting
relationships
is
the
way
we
bring
to
life. |
 |