3rd quarter earnings conference call/media/files/r/regions-ir/... · 3rd quarter earnings...
TRANSCRIPT
3rd
Qua
rter
Earn
ings
Con
fere
nce
Cal
lO
ctob
er 1
8, 2
016
3rd
quar
ter
2016
resu
lts
•G
rew
che
ckin
g ac
coun
ts, h
ouse
hold
s, c
redi
t car
ds
and
wea
lth m
anag
emen
t rel
atio
nshi
ps
•To
tal a
djus
ted
reve
nue
(FTE
) inc
reas
ed 5
%(2
) ove
r th
e
prio
r ye
ar
•Re
cent
ly a
nnou
nced
the
acqu
isiti
on o
f the
low
inco
me
hous
ing
tax
cred
it co
rpor
ate
fund
synd
icat
ion
and
asse
t man
agem
ent b
usin
esse
s of
Firs
t Ste
rlin
g Fi
nanc
ial
•G
ener
ated
3%
pos
itive
ope
ratin
g le
vera
ge Y
TD o
n an
adju
sted
bas
is(2
)
•In
crea
se $
300
mill
ion
expe
nse
elim
inat
ion
by $
100
mill
ion
thro
ugh
2019
, tot
alin
g 11
.5%
(3) o
f adj
uste
d
expe
nses
; will
acc
eler
ate
savi
ngs
whe
re p
ossi
ble
•W
e co
ntin
ue to
exe
rcis
e ca
utio
n an
d re
mai
n fo
cuse
d
on p
rude
nt a
nd q
ualit
y lo
an g
row
th w
ith a
n
emph
asis
on
dive
rsifi
catio
n an
d ap
prop
riat
e ri
sk-
adju
sted
retu
rns
($ in
mill
ions
, exc
ept p
er s
hare
dat
a)
3Q16
3Q15
Chan
ge
Net
Inco
me(1
)$3
04$2
4226
%
Dilu
ted
EPS
- Con
tinui
ngO
pera
tions
$0.2
4$0
.19
26%
Aver
age
Loan
s an
d Le
ases
81,2
8380
,615
1%
Aver
age
Dep
osits
97,9
3697
,166
1%
Tota
l Adj
uste
dRe
venu
e (F
TE)(2
)$1
,400
$1,3
395%
Net
Cha
rge-
Off
s$5
4$7
2(2
5)%
YTD
'16
YTD
'15
Chan
ge
Adj
uste
d ef
ficie
ncy
ratio
(2)
63.3
%65
.4%
210
bps
(1)
Avai
labl
e to
com
mon
sha
reho
lder
s(2
)N
on-G
AA
P; s
ee a
ppen
dix
for
reco
ncili
atio
n(3
)$4
00 m
illio
n of
exp
ense
elim
inat
ions
repr
esen
t 11.
5% o
f the
full
year
201
5 ad
just
ed e
xpen
se b
ase
Dem
onst
rate
s w
e ar
e su
cces
sful
ly e
xecu
ting
on o
ur s
trat
egic
pla
n
2
Prud
ently
man
agin
g lo
ans
Busi
ness
Lend
ing
Cons
umer
Lend
ing
3Q15
4Q15
1Q16
2Q16
3Q16
50.8
50.5
51.0
51.1
50.2
29.8
30.3
30.5
30.9
31.1
($ in
bill
ions
)
Qua
rter
-ove
r-Q
uart
er:
•Lo
an a
nd le
ase
bala
nces
dow
n 1%
•Co
nsum
er le
ndin
g ex
peri
ence
d an
othe
rso
lid q
uart
er w
ith b
alan
ces
up 1
%
◦M
ortg
age
lend
ing
bala
nces
incr
ease
d$2
59 m
illio
n or
2%
◦O
ther
indi
rect
lend
ing
incr
ease
d $9
3m
illio
n or
14%
◦Co
nsum
er c
redi
t car
d ba
lanc
esin
crea
sed
$44
mill
ion
or 4
%
•D
ecre
ase
in b
usin
ess
serv
ices
loan
s dr
iven
by ~
$300
mill
ion
decr
ease
in a
vera
ge d
irect
ener
gy lo
ans
◦A
lso
impa
cted
by
cont
inue
d so
ftne
ssin
dem
and
for
mid
dle
mar
ket
com
mer
cial
and
sm
all b
usin
ess
loan
s,m
anag
emen
t of c
once
ntra
tion
risk
limits
and
con
tinue
d fo
cus
onac
hiev
ing
appr
opri
ate
risk
-adj
uste
dre
turn
s
3
$80.
6$8
0.8
$81.
5$8
2.0
$81.
3
Aver
age
loan
s an
d le
ases
Prud
ently
gro
win
g de
posi
ts
Low
-cos
tde
posi
ts
Tim
ede
posi
ts+
Oth
er
3Q15
4Q15
1Q16
2Q16
3Q16
89.1
89.7
90.4
90.2
90.5
8.1
$97.
27.
8$9
7.5
7.4
$97.
87.
3$9
7.5
7.4
$97.
9
($ in
bill
ions
)
4
Cons
umer
Bank
Corp
orat
eBa
nk
Wea
lthM
anag
emen
t
Oth
er
3Q15
4Q15
1Q16
2Q16
3Q16
52.9
53.0
53.5
54.7
55.2
27.5
27.6
27.6
27.6
28.3
12.3
12.5
12.3
11.3
10.6
4.5
4.4
4.4
3.9
3.8
($ in
bill
ions
)
Qua
rter
-ove
r-Q
uart
er:
•D
epos
its in
crea
sed
$439
mill
ion
•Lo
w-c
ost d
epos
its u
p $3
30 m
illio
n
•Co
nsum
er d
epos
its in
crea
sed
1%
•Co
rpor
ate
depo
sits
incr
ease
d 2%
•W
ealth
man
agem
ent d
epos
its d
ecre
ased
6%
as a
resu
lt of
ong
oing
str
ateg
ic re
duct
ions
of
cert
ain
colla
tera
lized
dep
osits
•D
epos
it co
sts
rem
aine
d ne
ar h
isto
rica
lly lo
w
leve
ls a
t 12
basi
s po
ints
•Fu
ndin
g co
sts
rem
aine
d lo
w a
t 30
basi
s po
ints
Aver
age
depo
sits
by
type
$97.
2$9
7.5
$97.
8$9
7.5
$97.
9
Aver
age
depo
sits
by
segm
ent
Net
inte
rest
inco
me
and
othe
r fin
anci
ng in
com
ean
d ne
t int
eres
t mar
gin
Net
Inte
rest
Inco
me
and
Oth
erFi
nanc
ing
Inco
me
(FTE
)
Net
Inte
rest
Mar
gin
3Q15
4Q15
1Q16
2Q16
3Q16
$855
$856
$883
$869
$856
3.13
%3.
08%
3.19
%3.
15%
3.06
%
Qua
rter
-ove
r-Q
uart
er:
•N
et in
tere
st in
com
e an
d ot
her
finan
cing
inco
me
(FTE
)do
wn
$13
mill
ion
or 1
%◦
Impa
cted
by
a $7
mill
ion
leve
rage
d le
ase
resi
dual
valu
e ad
just
men
t tha
t low
ered
net
inte
rest
mar
gin
3 bp
s◦
His
tori
cally
low
mar
ket i
nter
est r
ates
in 2
Q16
and
3Q16
cau
sed
prep
aym
ents
to in
crea
se, r
esul
ting
inhi
gher
pre
miu
m a
mor
tizat
ion
of ~
$13
mill
ion
▪G
iven
the
rece
nt m
oves
to m
odes
tly h
ighe
rlo
ng-t
erm
rate
s, w
e ex
pect
$4-
$6 m
illio
n of
impr
ovem
ent i
n pr
emiu
m a
mor
tizat
ion
duri
ng th
e fo
urth
qua
rter
◦Re
duct
ions
par
tially
off
set b
y hi
gher
sho
rt-t
erm
inte
rest
rate
s an
d on
e ad
ditio
nal d
ay in
the
quar
ter
•Ex
clud
ing
impa
ct o
f the
leve
rage
d le
ase
adju
stm
ent,
expe
ct m
odes
t im
prov
emen
t in
net i
nter
est i
ncom
ean
d ot
her
finan
cing
inco
me
in th
e fo
urth
qua
rter
and
for
mar
gin
to b
e re
lativ
ely
stab
le
(1)
Dur
ing
the
four
th q
uart
er o
f 201
5, R
egio
ns c
orre
cted
the
acco
untin
g fo
r ce
rtai
n le
ases
whi
ch h
ad p
revi
ousl
y be
en in
clud
ed in
loan
s. T
he c
umul
ativ
e ef
fect
on
pre-
tax
inco
me
low
ered
net
inte
rest
inco
me
and
othe
r fin
anci
ng in
com
e $1
5 m
illio
n, th
eref
ore
net i
nter
est i
ncom
e an
d ot
her
finan
cing
inco
me
wou
ld h
ave
been
$87
1m
illio
n. T
he c
orre
ctio
n al
so re
duce
d th
e ne
t int
eres
t mar
gin
by 5
bas
is p
oint
s an
d w
ould
hav
e be
en 3
.13%
. Th
e co
mpa
ny d
oes
not e
xpec
t thi
s ad
just
men
t to
have
am
ater
ial i
mpa
ct to
net
inte
rest
inco
me
and
othe
r fin
anci
ng in
com
e or
net
inte
rest
mar
gin
in a
ny fu
ture
repo
rtin
g pe
riod
.
($ in
mill
ions
)
5
(1)
Non
-inte
rest
inco
me
grow
th d
rive
n by
reve
nue
dive
rsifi
catio
n in
itiat
ives 3Q
154Q
151Q
162Q
163Q
16
4138
4239
3738
4646
5475
6968
78
102
100
106
103
107
9396
9599
105
167
166
159
166
166
1312
497
989
514
506
1,00
0
526
599
1,03
01,
060
(1)
Non
-GA
AP;
see
app
endi
x fo
r re
conc
iliat
ion
(2)
Tota
l Wea
lth M
anag
emen
t inc
ome
pres
ente
d ab
ove
does
not
incl
ude
the
port
ion
of s
ervi
ce c
harg
es o
n de
posi
t acc
ount
s an
d si
mila
r sm
alle
r do
llar
amou
nts
that
are
als
oat
trib
utab
le to
the
Wea
lth M
anag
emen
t seg
men
t.(3
)O
ther
inco
me
incl
udes
mar
ket v
alue
adj
ustm
ents
ass
ocia
ted
with
cer
tain
em
ploy
ee b
enef
its w
hich
are
off
set i
n sa
lari
es a
nd b
enef
its.
Qua
rter
-ove
r-Q
uart
er:
•N
on-in
tere
st in
com
e in
crea
sed
$73
mill
ion
or 1
4%
◦In
clud
ed $
47 m
illio
n of
insu
ranc
e pr
ocee
ds
◦Re
cogn
ized
$8
mill
ion
leve
rage
d le
ase
term
inat
ion
gain
•A
djus
ted
non-
inte
rest
inco
me
incr
ease
d $2
4
mill
ion
or 5
%(1
)
◦Ca
pita
l mar
kets
inco
me
grew
11%
, dri
ven
by m
erge
rs a
nd a
cqui
sitio
n ad
viso
ry
serv
ices
gro
up
◦Ca
rd a
nd A
TM in
com
e in
crea
sed
6%
◦W
ealth
man
agem
ent i
ncom
e in
crea
sed
4%
◦In
clud
ed re
cove
ry o
f $10
mill
ion
rela
ted
to
the
2010
Gul
f of M
exic
o oi
l spi
ll
$497
$514
Sele
cted
Item
s(1)
Oth
er(3
)
Capi
tal
Mar
kets
Wea
lthM
anag
emen
tIn
com
e(2)
Mor
tgag
eIn
com
e
Card
and
ATM
fees
Serv
ice
char
ges
onde
posi
tac
coun
ts
($ in
mill
ions
)
$506
6
(2)
2928
$526 6
$599 55
Expe
nses
: Fo
cuse
d on
wha
t we
can
cont
rol i
n an
unce
rtai
n en
viro
nmen
t
3Q15
4Q15
1Q16
2Q16
3Q16
894
861
843
889
912
2626
22
Qua
rter
-ove
r-Q
uart
er:
•Ex
pens
es in
crea
sed
$19
mill
ion
or 2
%
◦In
clud
es a
$14
mill
ion
char
ge fo
r ea
rly
extin
guis
hmen
t of d
ebt a
nd a
$5
mill
ion
char
ge
asso
ciat
ed w
ith b
ranc
h cl
osur
es
•A
djus
ted
expe
nses
incr
ease
d $2
3 m
illio
n or
3%
(1)
◦To
tal s
alar
ies
and
bene
fits
incr
ease
d $6
mill
ion
▪Pr
imar
ily d
ue to
one
add
ition
al w
eekd
ay,
whi
ch a
ccou
nts
for
~$5
mill
ion,
as
wel
l as
incr
ease
d pr
oduc
tion
base
d in
cent
ives
▪YT
D s
taff
ing
leve
ls h
ave
decl
ined
5%
◦FD
IC in
sura
nce
asse
ssm
ents
incr
ease
d $1
2 m
illio
n,
incl
udin
g $5
mill
ion
rela
ted
to th
e im
plem
enta
tion
of
the
FDIC
ass
essm
ent s
urch
arge
◦In
curr
ed $
11 m
illio
n re
late
d to
Vis
a cl
ass
B sh
ares
sold
in a
pri
or y
ear
whi
ch is
not
exp
ecte
d to
repe
at a
t
this
leve
l and
$8
mill
ion
rela
ted
to u
nfun
ded
com
mitm
ents
(1)
Non
-GA
AP;
see
app
endi
x fo
r re
conc
iliat
ion
($ in
mill
ions
)
Sele
cted
Item
s(1)
Adj
uste
d N
on-In
tere
stEx
pens
e(1)
$895
$873
$869
7
$915
$934
112
Net
Char
ge-O
ffs
Net
Char
ge-O
ffs
ratio
3Q15
4Q15
1Q16
2Q16
3Q16
$60
$78
$68
$72
$54
0.30
%0.
38%
0.34
%0.
35%
0.26
%
NPL
sCo
vera
geRa
tio
3Q15
4Q15
1Q16
2Q16
3Q16
$789
$782
$993
$1,0
25$1
,078
141%
141%
116%
112%
104%
Clas
sifie
dLo
ans
Spec
ialM
entio
n
3Q15
4Q15
1Q16
2Q16
3Q16
1,83
81,
937
2,64
02,
468
2,41
3
1,41
6
$3,2
54
1,43
4
$3,3
7198
5
$3,6
251,
196
$3,6
641,
329
$3,7
42N
PLs
and
cove
rage
ratio
(1)
(1)
Excl
udes
loan
s he
ld fo
r sa
le(2
)In
clud
es c
omm
erci
al a
nd in
vest
or re
al e
stat
e lo
ans
only
($ in
mill
ions
)
($ in
mill
ions
)($
in m
illio
ns)
8
Net
cha
rge-
offs
and
ratio
•Pr
ovis
ion
for
loan
loss
es $
25 m
illio
n le
ss th
an n
et c
harg
e-of
fs p
rim
arily
att
ribu
tabl
e to
redu
ctio
n in
loan
sou
tsta
ndin
g an
d ov
eral
l net
impr
ovem
ent i
n en
ergy
port
folio
•N
on-a
ccru
al lo
ans
incr
ease
d pr
imar
ily d
ue to
five
larg
een
ergy
and
ene
rgy-
rela
ted
loan
s◦
Incr
ease
d pr
ovis
ion
asso
ciat
ed w
ith th
ese
loan
s w
asm
ore
than
off
set b
y cr
edit
qual
ity im
prov
emen
t in
ener
gy p
ortf
olio
◦
Dri
ven
by c
ontin
ued
ener
gy p
rice
sta
biliz
atio
n, a
sw
ell a
s de
clin
es in
loan
s ou
tsta
ndin
g•
Incr
ease
in c
ritic
ized
loan
s dr
iven
by
a sm
all n
umbe
r of
mul
ti-fa
mily
con
stru
ctio
n an
d tr
ansp
orta
tion
loan
s th
atw
ere
dow
ngra
ded
from
Pas
s to
Spe
cial
Men
tion
Ass
et q
ualit
y
Criti
cize
d an
d cl
assi
fied
loan
s(2)
Indu
stry
lead
ing
capi
tal a
nd li
quid
ity ra
tios
3Q15
4Q15
1Q16
2Q16
3Q16
11.7
%11
.7%
11.6
%11
.7%
11.9
%
3Q15
4Q15
1Q16
2Q16
3Q16
10.8
%10
.7%
10.7
%10
.8%
11.0
%
3Q15
4Q15
1Q16
2Q16
3Q16
83%
83%
83%
84%
81%
•Re
turn
ed $
296
mill
ion
to s
hare
hold
ers,
or
97%
of
3Q e
arni
ngs,
incl
udin
g th
e re
purc
hase
of $
215
mill
ion
of c
omm
on s
tock
and
$81
mill
ion
indi
vide
nds
•Tr
ansi
tiona
l bas
is B
asel
III C
omm
on E
quity
Tie
r 1
ratio
est
imat
ed a
t 11.
1%(1
) , wel
l abo
ve c
urre
ntre
gula
tory
min
imum
s
•At
per
iod
end,
Reg
ions
was
fully
com
plia
nt w
ith th
efin
al L
iqui
dity
Cov
erag
e Ra
tio r
ule
(1)
Curr
ent q
uart
er ra
tios
are
estim
ated
(2)
Non
-GA
AP;
see
app
endi
x fo
r re
conc
iliat
ion
(3)
Base
d on
end
ing
bala
nces
9
Tier
1 c
apita
l rat
io(1
)
Com
mon
equ
ity T
ier
1 ra
tio –
Fully
pha
sed-
in p
ro-f
orm
a(1)(
2)
Loan
-to-
depo
sit r
atio
(3)
2016
Exp
ecta
tions
•Av
erag
e lo
an g
row
th re
lativ
ely
stab
le(1
)(2)
•Av
erag
e de
posi
ts re
lativ
ely
stab
le(1
)(3)
•N
et in
tere
st in
com
e an
d ot
her
finan
cing
inco
me
up 2
% -
4%
•A
djus
ted
non-
inte
rest
inco
me
grow
th m
ore
than
6%
(4)
•A
djus
ted
expe
nses
flat
to u
p m
odes
tly;
full
year
eff
icie
ncy
ratio
~63
%
•A
djus
ted
oper
atin
g le
vera
ge o
f 2%
- 4%
•N
et c
harg
e-of
fs o
f 25
- 35
bps
Not
e: T
he re
conc
iliat
ion
with
resp
ect t
o th
ese
forw
ard-
look
ing
non-
GA
AP
mea
sure
s is
exp
ecte
d to
be
cons
iste
nt w
ith th
e ac
tual
non
-GA
AP
reco
ncili
atio
ns in
clud
ed in
the
atta
ched
app
endi
x.
10
(1)
4Q16
ave
rage
bal
ance
s re
lativ
e to
4Q
15 a
vera
ge b
alan
ces
(2)
This
repr
esen
ts a
cha
nge
from
pre
viou
s lo
an g
row
th g
uida
nce
of le
ss th
an 3
%.
(3)
Acc
eler
ated
pla
nned
redu
ctio
n of
cer
tain
dep
osits
with
in W
ealth
Man
agem
ent a
nd C
orpo
rate
seg
men
ts le
d to
the
chan
ge fr
om p
revi
ous
guid
ance
of 2
%-4
%.
With
inW
ealth
Man
agem
ent,
cer
tain
cus
tom
er tr
ust d
epos
its, c
olla
tera
lized
by
secu
ritie
s, w
ere
mov
ed in
to o
ther
fee
inco
me
prod
ucin
g cu
stom
er in
vest
men
ts.
(4)
Fee
base
d re
venu
e st
rate
gic
initi
ativ
es h
ave
exce
eded
exp
ecta
tions
.
App
endi
x
11
•To
tal o
utst
andi
ngs
and
com
mitm
ents
dec
lined
pri
mar
ilydu
e to
pay
dow
ns a
nd p
ayof
fs
•A
llow
ance
for
loan
and
leas
elo
sses
was
7.9
% o
f dire
ct e
nerg
yba
lanc
es a
t 9/3
0/16
vs
9.4%
at
6/30
/16
•N
o se
cond
lien
exp
osur
eou
tsta
ndin
g w
ithin
the
ener
gypo
rtfo
lio
•Le
vera
ged
loan
s ac
coun
t for
14%
of e
nerg
y re
late
d ba
lanc
es; t
hem
ajor
ity a
re M
idst
ream
•Ch
arge
-off
s re
late
d to
the
ener
gypo
rtfo
lio to
tale
d $6
mill
ion
in 3
Q
•Ex
pect
atio
ns fo
r en
ergy
rela
ted
char
ge-o
ffs
are
$50-
$75
mill
ion
thro
ugh
the
end
of 2
017;
incl
usiv
eof
$23
mill
ion
of c
harg
e-of
fsin
curr
ed y
ear-
to-d
ate
•Sh
ould
oil
pric
es fa
ll to
and
rem
ain
belo
w $
25 a
bar
rel t
hrou
gh th
een
d of
201
7, R
egio
ns c
ould
expe
rien
ce a
dditi
onal
loss
es o
f$1
00 m
illio
n
•U
tiliz
atio
n ra
te h
as re
mai
ned
betw
een
40-6
0% s
ince
1Q
15
Ener
gy le
ndin
g ov
ervi
ewTo
tal e
nerg
yA
s of
9/3
0/16
As
of 6
/30/
16
($ in
mill
ions
)
Loan
/Le
ase
Bala
nces
Bala
nces
Incl
udin
gRe
late
dCo
mm
itm
ents
%U
tiliz
atio
n$
Crit
iciz
ed%
Crit
iciz
ed
Loan
/Le
ase
Bala
nces
Bala
nces
Incl
udin
gRe
late
dCo
mm
itm
ents
%U
tiliz
atio
n$
Crit
iciz
ed%
Crit
iciz
ed
Oilf
ield
ser
vice
san
d su
pply
(OFS
)$8
11$1
,268
64%
$451
56%
$863
$1,3
3265
%$4
2249
%
Expl
orat
ion
and
prod
uctio
n (E
&P)
757
1,32
657
%52
269
%80
51,
434
56%
581
72%
Mid
stre
am45
91,
082
42%
307%
519
1,08
248
%33
6%
Dow
nstr
eam
8030
926
%17
2176
347
22%
1824
Oth
er13
028
446
%4
3%12
928
545
%24
19%
Tota
l dire
ct2,
237
4,26
952
%1,
024
46%
2,39
24,
480
53%
1,07
845
%
Indi
rect
514
946
54%
124
24%
531
996
53%
9618
%
Dire
ct a
ndin
dire
ct2,
751
5,21
553
%1,
148
42%
2,92
35,
476
53%
1,17
440
%
Ope
ratin
g le
ases
145
145
—83
57%
153
153
—70
46%
Tota
l ene
rgy
$2,8
96$5
,360
54%
$1,2
3143
%$3
,076
$5,6
2955
%$1
,244
40%
Not
e: S
ecur
ities
por
tfol
io c
onta
ined
~$1
2MM
of h
igh
qual
ity, i
nves
tmen
t gra
de c
orpo
rate
bon
ds th
at a
re e
nerg
y re
late
d at
9/3
0/16
, dow
n fr
om ~
$66M
M a
t 6/
30/1
6. A
leve
rage
d re
latio
nshi
p is
def
ined
as
seni
or c
ash
flow
leve
rage
of 3
x or
tota
l cas
h flo
w le
vera
ge o
f 4x
exce
pt fo
r M
idst
ream
Ene
rgy
whi
ch is
6x
tota
l cas
h flo
wle
vera
ge.
12
Ener
gy le
ndin
g - O
il Fi
eld
Serv
ices
and
Exp
lora
tion
& P
rodu
ctio
n de
tail
Type
As
of9/
30/1
6#
ofCl
ient
s*Co
mm
enta
ry
Mar
ine
$453
959
% o
f exp
osur
e is
con
trac
t pro
tect
edth
roug
h en
d of
201
6. E
xpec
t som
ead
ditio
nal s
tres
s in
to 2
017
as c
ontr
acts
mat
ure
and
E&P
com
pani
es fo
cus
onsh
orte
r cy
cle
onsh
ore
proj
ects
Inte
grat
ed O
FS15
710
Aver
age
utili
zatio
n is
37%
indi
catin
g cl
ient
sha
ve li
quid
ity to
wea
ther
cyc
le.
Com
pres
sion
115
4Li
nked
to m
ovem
ent o
f nat
ural
gas
; sec
tor
is m
ore
stab
le a
nd lo
wer
ris
k th
an o
ther
sect
ors.
Flui
d M
anag
emen
t36
2Re
mai
ns a
hig
h ri
sk s
ecto
r.
Pre-
drill
ing
/ D
rilli
ng44
2Re
duce
d ca
pex
spen
ding
of m
any
E&P
com
pani
es im
pact
ed c
urre
nt a
nd fu
ture
cash
flow
s; h
owev
er, R
egio
ns' l
arge
rbo
rrow
ers
rem
ain
liqui
d.Sa
nd6
1Re
mai
ns a
hig
h ri
sk s
ecto
r; h
owev
er,
expo
sure
is m
inim
al.
Tota
l Oil
Fiel
dSe
rvic
es (O
FS)
811
28
Expl
orat
ion
and
prod
uctio
n (E
&P)
757
28**
Tota
l OFS
and
E&
P$1
,568
•49
% s
hare
d na
tiona
l cre
dit (
SNC)
loan
s
•64
% u
tiliz
atio
n ra
te c
ompa
red
to 6
5%in
2Q
16
•91
% N
on-p
ass
rate
d (c
ritic
ized
) loa
nspa
ying
as
agre
ed
E&P
Port
folio
*Rep
rese
nts
the
num
ber
of c
lient
s th
at c
ompr
ise
75%
of t
he lo
an b
alan
ces
outs
tand
ing.
**Re
pres
ents
the
num
ber
of c
lient
s th
at c
ompr
ise
90%
of t
he lo
an b
alan
ces
outs
tand
ing.
OFS
Por
tfol
io
13
•M
ajor
ity o
f bor
row
ing
is s
enio
rse
cure
d
•94
% s
hare
d na
tiona
l cre
dit (
SNC)
loan
s
•57
% u
tiliz
atio
n ra
te c
ompa
red
to 5
6%in
2Q
16
•Es
sent
ially
all
non-
pass
rate
d(c
ritic
ized
) loa
ns p
ayin
g as
agr
eed
Loan
bal
ance
s by
sel
ect s
tate
sTe
xas
Loui
sian
a
Not
e: In
telli
genc
e fr
om o
ur c
usto
mer
ass
ista
nce
prog
ram
(CA
P) re
veal
s no
not
icea
ble
incr
ease
in a
ssis
tanc
e re
ques
ts in
thes
e m
arke
ts to
dat
e.
Com
mer
cial
-Non
-En
ergy
,$4,
325
Inve
stor
Real
Esta
te,$
1,31
8
Cons
umer
Real
Esta
teSe
cure
d,$9
70
Cons
umer
Non
-Rea
lEst
ate
Secu
red,
$912
Com
mer
cial
-Ene
rgy
(Dire
ct),
$1,1
55
Inve
stor
Rea
l Est
ate
Bala
nces
by
City
($ in
mill
ions
)
Off
ice
Reta
ilM
ulti-
Fam
ilySi
ngle
Fam
ilyO
ther
Tota
l
Hou
ston
$23
$67
$304
$80
$18
$492
Dal
las
110
3218
448
6243
6
San
Ant
onio
—26
7441
4518
6
Oth
er16
6210
54
1720
4
Tota
l$1
49$1
87$6
67$1
73$1
42$1
,318
Inve
stor
Rea
l Est
ate
Bala
nces
by
City
($ in
mill
ions
)
Off
ice
Reta
ilM
ulti-
Fam
ilySi
ngle
Fam
ilyO
ther
Tota
l
Bato
nRo
uge
$41
$7$2
9$4
6$1
9$1
42
New
Orl
eans
59
12
1532
Oth
er3
424
217
68
Tota
l$4
9$5
8$3
4$5
0$5
1$2
42
Com
mer
cial
-N
on-E
nerg
y,$2
,298
Inve
stor
Real
Esta
te,$
242
Cons
umer
Real
Esta
teSe
cure
d,$1
,125
Cons
umer
Non
-Rea
lEst
ate
Secu
red,
$289
Com
mer
cial
-Ene
rgy
(Dire
ct),
$507
14
$4.5
B$8
.7B
Loan
bal
ance
s by
sel
ect s
tate
s A
laba
ma
Mis
siss
ippi
Com
mer
cial
-Non
-En
ergy
,$5,
127
Inve
stor
Real
Esta
te,
$342
Cons
umer
Real
Esta
teSe
cure
d,$3
,599
Cons
umer
Non
-Rea
lEst
ate
Secu
red,
$871
Com
mer
cial
-Ene
rgy
(Dire
ct),
$31
Com
mer
cial
-N
on-E
nerg
y,$1
,602
Inve
stor
Real
Esta
te,$
178
Cons
umer
Real
Esta
teSe
cure
d,$9
55
Cons
umer
Non
-Rea
lEst
ate
Secu
red,
$337
Com
mer
cial
-En
ergy
(Dire
ct),
$56
15
$3.1
B$1
0.0B
Inve
stor
Rea
l Est
ate
Bala
nces
by
City
($ in
mill
ions
)O
ffic
eRe
tail
Mul
ti-Fa
mily
Sing
leFa
mily
Oth
erTo
tal
Birm
ingh
am$1
6$2
5$3
1$1
6$2
5$1
13
Hun
tsvi
lle82
177
82
116
Mob
ile /
Bald
win
Cou
nty
216
33
1438
Oth
er8
2019
1315
75
Tota
l$1
08$7
8$6
0$4
0$5
6$3
42
Inve
stor
Rea
l Est
ate
Bala
nces
by
City
($ in
mill
ions
)
Off
ice
Reta
ilM
ulti-
Fam
ilySi
ngle
Fam
ilyO
ther
Tota
l
Nor
thM
issi
ssip
pi—
——
—$9
7$9
7
Gul
fpor
t /Bi
loxi
/Pa
scag
oula
——
18—
1129
Jack
son
/ O
ther
53
391
452
Tota
l$5
$3$5
7$1
$112
$178
Non
-GA
AP
reco
ncili
atio
n: N
on-in
tere
st in
com
e,no
n-in
tere
st e
xpen
se a
nd e
ffic
ienc
y ra
tio
NM
- N
ot M
eani
ngfu
l(1
)Se
e pa
ge 7
of t
he 3
Q16
Fin
anci
al S
uppl
emen
t for
add
ition
al in
form
atio
n re
gard
ing
thes
e ad
just
men
ts.
(2)
Excl
udin
g $2
3 m
illio
n of
FD
IC in
sura
nce
asse
ssm
ent a
djus
tmen
ts to
pri
or a
sses
smen
ts re
cord
ed in
the
third
qua
rter
of 2
015,
the
adju
sted
eff
icie
ncy
ratio
wou
ld h
ave
been
65.
0%.
(3)
Dur
ing
the
four
th q
uart
er o
f 201
5, R
egio
ns c
orre
cted
the
acco
untin
g fo
r ce
rtai
n le
ases
, for
whi
ch R
egio
ns is
the
less
or. T
hese
leas
es h
ad b
een
prev
ious
ly c
lass
ified
as
capi
tal l
ease
s bu
t wer
e su
bseq
uent
lyde
term
ined
to b
e op
erat
ing
leas
es.
The
aggr
egat
e im
pact
of t
his
adju
stm
ent l
ower
ed n
et in
tere
st in
com
e an
d ot
her
finan
cing
inco
me
$15
mill
ion.
Exc
ludi
ng th
e ne
gativ
e im
pact
of t
he $
15 m
illio
n, th
ead
just
ed e
ffic
ienc
y ra
tio w
ould
hav
e be
en 6
2.7%
.
16
The
tabl
e be
low
pre
sent
s com
puta
tions
of t
he e
ffici
ency
ratio
(non
-GA
AP)
, whi
ch is
a m
easu
re o
f pro
duct
ivity
, gen
eral
ly c
alcu
late
d as
non
-inte
rest
exp
ense
div
ided
by
tota
l rev
enue
. Man
agem
ent u
ses t
his r
atio
tom
onito
r per
form
ance
and
bel
ieve
s thi
s mea
sure
pro
vide
s mea
ning
ful i
nfor
mat
ion
to in
vest
ors.
Non
-inte
rest
exp
ense
(GA
AP)
is p
rese
nted
exc
ludi
ng c
erta
in a
djus
tmen
ts to
arr
ive
at a
djus
ted
non-
inte
rest
exp
ense
(non
-G
AA
P), w
hich
is th
e nu
mer
ator
for t
he e
ffici
ency
ratio
. Non
-inte
rest
inco
me
(GA
AP)
is p
rese
nted
exc
ludi
ng c
erta
in a
djus
tmen
ts to
arr
ive
at a
djus
ted
non-
inte
rest
inco
me
(non
-GA
AP)
, whi
ch is
the
num
erat
or fo
r the
fee
inco
me
ratio
. Net
inte
rest
inco
me
and
othe
r fin
anci
ng in
com
e on
a ta
xabl
e-eq
uiva
lent
bas
is a
nd n
on-in
tere
st in
com
e ar
e ad
ded
toge
ther
to a
rriv
e at
tota
l rev
enue
on
a ta
xabl
e-eq
uiva
lent
bas
is. A
djus
tmen
ts a
re m
ade
to a
rriv
e at
adj
uste
d to
tal r
even
ue o
n a
taxa
ble-
equi
vale
nt b
asis
(non
-GA
AP)
, whi
ch is
the
deno
min
ator
for t
he e
ffici
ency
ratio
. Reg
ions
bel
ieve
s tha
t the
exc
lusi
on o
f the
se a
djus
tmen
ts p
rovi
des a
mea
ning
ful b
ase
for
perio
d-to
-per
iod
com
paris
ons,
whi
ch m
anag
emen
t bel
ieve
s will
ass
ist i
nves
tors
in a
naly
zing
the
oper
atin
g re
sults
of t
he C
ompa
ny a
nd p
redi
ctin
g fu
ture
per
form
ance
. The
se n
on-G
AA
P fin
anci
al m
easu
res a
re a
lso
used
by m
anag
emen
t to
asse
ss th
e pe
rfor
man
ce o
f Reg
ions
’ bus
ines
s. It
is p
ossi
ble
that
the
activ
ities
rela
ted
to th
e ad
just
men
ts m
ay re
cur;
how
ever
, man
agem
ent d
oes n
ot c
onsi
der t
he a
ctiv
ities
rela
ted
to th
e ad
just
men
ts to
be in
dica
tions
of o
ngoi
ng o
pera
tions
. The
tabl
e on
the
follo
win
g pa
ge p
rese
nts a
com
puta
tion
of th
e op
erat
ing
leve
rage
ratio
(non
-GA
AP)
whi
ch is
the
perio
d to
per
iod
perc
enta
ge c
hang
e in
adj
uste
d to
tal r
even
ue o
n a
taxa
ble-
equi
vale
nt b
asis
(non
-GA
AP)
less
the
perc
enta
ge c
hang
e in
adj
uste
d no
n-in
tere
st e
xpen
se (n
on-G
AA
P). R
egio
ns b
elie
ves t
hat p
rese
ntat
ion
of th
ese
non-
GA
AP
finan
cial
mea
sure
s will
per
mit
inve
stor
s to
asse
ss th
e pe
rfor
man
ce o
f the
Com
pany
on
the
sam
e ba
sis a
s tha
t app
lied
by m
anag
emen
t.Q
uart
er E
nded
($ a
mou
nts i
n m
illio
ns)
9/30
/201
66/
30/2
016
3/31
/201
612
/31/
2015
9/30
/201
53Q
16 v
s. 2Q
163Q
16 v
s. 3Q
15
AD
JUST
ED
EFF
ICIE
NC
Y A
ND
FE
E IN
CO
ME
RAT
IOS,
AD
JUST
ED
NO
N-I
NT
ER
EST
INC
OM
E/E
XPE
NSE
- CO
NT
INU
ING
OPE
RAT
ION
SN
on-in
tere
st e
xpen
se (G
AA
P)A
$93
4$
915
$86
9$
873
$89
5$
192.
1%
$39
4.4
%A
djus
tmen
ts:
Prof
essi
onal
, leg
al a
nd re
gula
tory
exp
ense
s (1)
—(3
)—
——
3(1
00.0
)%—
NM
Bra
nch
cons
olid
atio
n, p
rope
rty a
nd e
quip
men
t cha
rges
(5)
(22)
(14)
(6)
(1)
17(7
7.3)
%(4
)40
0.0
%Lo
ss o
n ea
rly e
xtin
guis
hmen
t of d
ebt
(14)
——
——
(14)
NM
(14)
NM
Sala
ry a
nd e
mpl
oyee
ben
efits
—se
vera
nce
char
ges
(3)
(1)
(12)
(6)
—(2
)20
0.0
%(3
)N
MA
djus
ted
non-
inte
rest
exp
ense
(non
-GA
AP)
B$
912
$88
9$
843
$86
1$
894
$23
2.6
%$
182.
0%
Net
inte
rest
inco
me
and
othe
r fin
anci
ng in
com
e (G
AA
P)$
835
$84
8$
862
$83
6$
836
$(1
3)(1
.5)%
$(1
)(0
.1)%
Taxa
ble-
equi
vale
nt a
djus
tmen
t21
2121
2019
——
%2
10.5
%N
et in
tere
st in
com
e an
d ot
her f
inan
cing
inco
me,
taxa
ble-
equi
vale
ntba
sis
C$
856
$86
9$
883
$85
6$
855
$(1
3 )(1
.5)%
$1
0.1
%N
on-in
tere
st in
com
e (G
AA
P)D
$59
9$
526
$50
6$
514
$49
7$
7313
.9%
$10
220
.5%
Adj
ustm
ents
:Se
curit
ies (
gain
s) lo
sses
, net
—(6
)5
(11)
(7)
6(1
00.0
)%7
(100
.0)%
Insu
ranc
e pr
ocee
ds (1
)(4
7)—
(3)
(1)
—(4
7)N
M(4
7)N
MLe
vera
ged
leas
e te
rmin
atio
n ga
ins,
net (1
)(8
)—
——
(6)
(8)
NM
(2)
33.3
%A
djus
ted
non-
inte
rest
inco
me
(non
-GA
AP)
E$
544
$52
0$
508
$50
2$
484
$24
4.6
%$
6012
.4%
Tota
l rev
enue
, tax
able
-equ
ival
ent b
asis
C+D
=F$
1,45
5$
1,39
5$
1,38
9$
1,37
0$
1,35
2$
604.
3%
$10
37.
6%
Adj
uste
d to
tal r
even
ue, t
axab
le-e
quiv
alen
t bas
is (n
on-G
AA
P)C
+E=G
$1,
400
$1,
389
$1,
391
$1,
358
$1,
339
$11
0.8
%$
614.
6%
Effic
ienc
y ra
tio (G
AA
P)A
/F64
.2%
65.6
%62
.5%
63.7
%66
.2%
Adj
uste
d ef
ficie
ncy
ratio
(non
-GA
AP)
(2)(
3)B
/G65
.3%
64.0
%60
.6%
63.4
%66
.8%
Non
-GA
AP
reco
ncili
atio
n co
ntin
ued:
YTD
Non
-in
tere
st in
com
e, n
on-in
tere
st e
xpen
se, e
ffic
ienc
yra
tio a
nd o
pera
ting
leve
rage
(1)
See
page
7 o
f the
3Q
16 F
inan
cial
Sup
plem
ent f
or a
dditi
onal
info
rmat
ion
rega
rdin
g th
ese
adju
stm
ents
.
17
Nin
e M
onth
s End
ed S
epte
mbe
r 30
($ a
mou
nts i
n m
illio
ns)
2016
2015
2016
vs.
2015
AD
JUST
ED
EFF
ICIE
NC
Y, F
EE
INC
OM
E A
ND
OPE
RAT
ING
LE
VE
RA
GE
RAT
IOS,
AD
JUST
ED
NO
N-I
NT
ER
EST
INC
OM
E/
EX
PEN
SE- C
ON
TIN
UIN
G O
PER
ATIO
NS
Non
-inte
rest
exp
ense
(GA
AP)
A$
2,71
8$
2,73
4$
(16 )
(0.6
)%
Adj
ustm
ents
:
Prof
essi
onal
, leg
al a
nd re
gula
tory
exp
ense
s (1)
(3)
(48 )
45(9
3.8 )
%
Bra
nch
cons
olid
atio
n, p
rope
rty a
nd e
quip
men
t cha
rges
(1)
(41 )
(50 )
9(1
8.0 )
%
Loss
on
early
ext
ingu
ishm
ent o
f deb
t(1
4 )(4
3 )29
(67.
4 )%
Sala
ry a
nd e
mpl
oyee
ben
efits
—se
vera
nce
char
ges
(16 )
—(1
6 )N
M
Adj
uste
d no
n-in
tere
st e
xpen
se (n
on-G
AA
P)B
$2,
644
$2,
593
$51
2.0
%
Net
inte
rest
inco
me
and
othe
r fin
anci
ng in
com
e (G
AA
P)$
2,54
5$
2,47
1$
743.
0%
Taxa
ble-
equi
vale
nt a
djus
tmen
t63
558
14.5
%
Net
inte
rest
inco
me
and
othe
r fin
anci
ng in
com
e, ta
xabl
e-eq
uiva
lent
bas
isC
$2,
608
$2,
526
$82
3.2
%
Non
-inte
rest
inco
me
(GA
AP)
D$
1,63
1$
1,55
7$
744.
8%
Adj
ustm
ents
:
Secu
ritie
s gai
ns, n
et(1
)(1
8 )17
(94.
4 )%
Insu
ranc
e pr
ocee
ds (1
)(5
0 )(9
0 )40
(44.
4 )%
Leve
rage
d le
ase
term
inat
ion
gain
s, ne
t(8
)(8
)—
NM
Adj
uste
d no
n-in
tere
st in
com
e (n
on-G
AA
P)E
$1,
572
$1,
441
$13
19.
1%
Tota
l rev
enue
, tax
able
-equ
ival
ent b
asis
C+D
=F$
4,23
9$
4,08
3$
156
3.8
%
Adj
uste
d to
tal r
even
ue, t
axab
le-e
quiv
alen
t bas
is (n
on-G
AA
P)C
+E=G
$4,
180
$3,
967
$21
35.
4%
Ope
ratin
g le
vera
ge ra
tio (G
AA
P)F-
A4.
4%
Adj
uste
d op
erat
ing
leve
rage
ratio
(non
-GA
AP)
G-B
3.4
%
Effic
ienc
y ra
tio (G
AA
P)A
/F64
.1%
67.0
%
Adj
uste
d ef
ficie
ncy
ratio
(non
-GA
AP)
B/G
63.3
%65
.4%
Non
-GA
AP
reco
ncili
atio
n: B
asel
III c
omm
on e
quity
Tier
1 ra
tio –
fully
pha
sed-
in p
ro-f
orm
a
(1)
Curr
ent q
uart
er a
mou
nts
and
the
resu
lting
ratio
are
est
imat
ed.
(2)
Regi
ons
cont
inue
s to
dev
elop
sys
tem
s an
d in
tern
al c
ontr
ols
to p
reci
sely
cal
cula
te r
isk-
wei
ghte
d as
sets
as
requ
ired
by B
asel
III o
n a
fully
pha
sed-
in b
asis
. The
amou
nt in
clud
ed a
bove
is a
reas
onab
le a
ppro
xim
atio
n, b
ased
on
our
unde
rsta
ndin
g of
the
requ
irem
ents
.
As o
f and
for
Qua
rter
End
ed
18
The
calc
ulat
ion
of th
e fu
lly p
hase
d-in
pro
-for
ma
"Com
mon
equ
ity T
ier
1" (C
ET1)
is b
ased
on
Regi
ons’
und
erst
andi
ng o
f the
Fin
al B
asel
III r
equi
rem
ents
. For
Reg
ions
, the
Bas
el II
I fra
mew
ork
beca
me
effe
ctiv
e on
a p
hase
d-in
appr
oach
sta
rtin
g in
201
5 w
ith fu
ll im
plem
enta
tion
begi
nnin
g in
201
9. T
he c
alcu
latio
n pr
ovid
ed b
elow
incl
udes
est
imat
ed p
ro-f
orm
a am
ount
s fo
r th
e ra
tio o
n a
fully
pha
sed-
in b
asis
. Reg
ions
’ cur
rent
und
erst
andi
ng o
f the
fina
lfr
amew
ork
incl
udes
cer
tain
ass
umpt
ions
, inc
ludi
ng th
e Co
mpa
ny’s
inte
rpre
tatio
n of
the
requ
irem
ents
, and
info
rmal
feed
back
rece
ived
thro
ugh
the
regu
lato
ry p
roce
ss. R
egio
ns’ u
nder
stan
ding
of t
he fr
amew
ork
is e
volv
ing
and
will
like
ly c
hang
e as
ana
lysi
s an
d di
scus
sion
s w
ith re
gula
tors
con
tinue
. Bec
ause
Reg
ions
is n
ot c
urre
ntly
sub
ject
to th
e fu
lly-p
hase
d in
cap
ital r
ules
, thi
s pr
o-fo
rma
mea
sure
is c
onsi
dere
d to
be
a no
n-G
AA
P fin
anci
al m
easu
re, a
ndot
her
entit
ies
may
cal
cula
te it
diff
eren
tly fr
om R
egio
ns’ d
iscl
osed
cal
cula
tion.
A c
ompa
ny's
regu
lato
ry c
apita
l is
ofte
n ex
pres
sed
as a
per
cent
age
of r
isk-
wei
ghte
d as
sets
. Und
er th
e ri
sk-b
ased
cap
ital f
ram
ewor
k, a
com
pany
’s b
alan
ce s
heet
ass
ets
and
cred
it eq
uiva
lent
am
ount
s of
off
-bal
ance
she
et it
ems
are
assi
gned
to b
road
ris
k ca
tego
ries
. The
agg
rega
ted
dolla
r am
ount
in e
ach
cate
gory
is th
en m
ultip
lied
by th
e pr
escr
ibed
ris
k-w
eigh
ted
perc
enta
ge. T
he re
sulti
ng w
eigh
ted
valu
es fr
om e
ach
of th
e ca
tego
ries
are
add
edto
geth
er a
nd th
is s
um is
the
risk
-wei
ghte
d as
sets
tota
l tha
t, a
s ad
just
ed, c
ompr
ises
the
deno
min
ator
of c
erta
in r
isk-
base
d ca
pita
l rat
ios.
Com
mon
equ
ity T
ier
1 ca
pita
l is
then
div
ided
by
this
den
omin
ator
(ris
k-w
eigh
ted
asse
ts)
to d
eter
min
e th
e co
mm
on e
quity
Tie
r 1
capi
tal r
atio
. The
am
ount
s di
sclo
sed
as r
isk-
wei
ghte
d as
sets
are
cal
cula
ted
cons
iste
nt w
ith b
anki
ng re
gula
tory
requ
irem
ents
on
a fu
lly p
hase
d-in
bas
is.
Sinc
e an
alys
ts a
nd b
anki
ng re
gula
tors
may
ass
ess
Regi
ons’
cap
ital a
dequ
acy
usin
g th
e fu
lly p
hase
d-in
Bas
el II
I fra
mew
ork,
we
belie
ve th
at it
is u
sefu
l to
prov
ide
inve
stor
s th
e ab
ility
to a
sses
s Re
gion
s’ c
apita
l ade
quac
y on
this
sam
e ba
sis.
($ a
mou
nts i
n m
illio
ns)
9/30
/201
66/
30/2
016
3/31
/201
612
/31/
2015
9/30
/201
5
Bas
el II
I Com
mon
Equ
ity T
ier
1 R
atio
—Fu
lly P
hase
d-In
Pro
-For
ma
(1)
Stoc
khol
der's
equ
ity (G
AA
P)$
17,3
65$
17,3
85$
17,2
11$
16,8
44$
16,9
52
Non
-qua
lifyi
ng g
oodw
ill a
nd in
tang
ible
s (4
,936
)(4
,946
)(4
,947
)(4
,958
)(4
,913
)
Adj
ustm
ents
, inc
ludi
ng a
ll co
mpo
nent
s of a
ccum
ulat
ed o
ther
com
preh
ensi
ve in
com
e, d
isal
low
ed d
efer
red
tax
asse
ts, t
hres
hold
dedu
ctio
ns a
nd o
ther
adj
ustm
ents
(185
)(2
27)
(64 )
286
41
Pref
erre
d st
ock
(GA
AP)
(820
)(8
20)
(820
)(8
20)
(836
)
Bas
el II
I com
mon
equ
ity T
ier 1
—Fu
lly P
hase
d-In
Pro
-For
ma
(non
-GA
AP)
A$
11,4
24$
11,3
92$
11,3
80$
11,3
52$
11,2
44
Bas
el II
I ris
k-w
eigh
ted
asse
ts—
Fully
Pha
sed-
In P
ro-F
orm
a (n
on-G
AA
P) (2
)B
$10
3,97
2$
105,
199
$10
6,22
7$
106,
188
$10
4,64
5
Bas
el II
I com
mon
equ
ity T
ier 1
ratio
—Fu
lly P
hase
d-In
Pro
-For
ma
(non
-GA
AP)
A/B
11.0
%10
.8%
10.7
%10
.7%
10.8
%
Forw
ard-
look
ing
stat
emen
tsTh
is p
rese
ntat
ion
may
incl
ude
forw
ard-
look
ing
stat
emen
ts, a
s de
fined
in th
e Pr
ivat
e Se
curi
ties
Litig
atio
n Re
form
Act
of 1
995,
whi
ch re
flect
Reg
ions
’ cur
rent
vie
ws
with
resp
ect t
o fu
ture
eve
nts
and
finan
cial
per
form
ance
. For
war
d-lo
okin
g st
atem
ents
are
not
bas
ed o
n hi
stor
ical
info
rmat
ion,
but
rath
er a
re re
late
d to
futu
re o
pera
tions
, str
ateg
ies,
fina
ncia
l res
ults
or
othe
r de
velo
pmen
ts.
Forw
ard-
look
ing
stat
emen
ts a
re b
ased
on
man
agem
ent’
s ex
pect
atio
ns a
s w
ell a
s ce
rtai
n as
sum
ptio
ns a
nd e
stim
ates
mad
e by
, and
info
rmat
ion
avai
labl
e to
, man
agem
ent a
t the
tim
e th
est
atem
ents
are
mad
e. T
hose
sta
tem
ents
are
bas
ed o
n ge
nera
l ass
umpt
ions
and
are
sub
ject
to v
ario
us r
isks
, unc
erta
intie
s an
d ot
her
fact
ors
that
may
cau
se a
ctua
l res
ults
to d
iffer
mat
eria
llyfr
om th
e vi
ews,
bel
iefs
and
pro
ject
ions
exp
ress
ed in
suc
h st
atem
ents
. The
se r
isks
, unc
erta
intie
s an
d ot
her
fact
ors
incl
ude,
but
are
not
lim
ited
to, t
hose
des
crib
ed b
elow
:
19
• Cur
rent
and
futu
re e
cono
mic
and
mar
ket c
ondi
tions
in th
e U
nite
d St
ates
gen
eral
ly o
r in
the
com
mun
ities
we
serv
e, in
clud
ing
the
effe
cts
of d
eclin
es in
pro
pert
y va
lues
, une
mpl
oym
ent r
ates
and
pote
ntia
l red
uctio
ns o
f eco
nom
ic g
row
th, w
hich
may
adv
erse
ly a
ffec
t our
lend
ing
and
othe
r bu
sine
sses
and
our
fina
ncia
l res
ults
and
con
ditio
ns.
• Po
ssib
le c
hang
es in
trad
e, m
onet
ary
and
fisca
l pol
icie
s of
, and
oth
er a
ctiv
ities
und
erta
ken
by, g
over
nmen
ts, a
genc
ies,
cen
tral
ban
ks a
nd s
imila
r or
gani
zatio
ns, w
hich
cou
ld h
ave
a m
ater
ial a
dver
se e
ffec
ton
our
ear
ning
s.•
The
effe
cts
of a
pos
sibl
e do
wng
rade
in th
e U
.S. g
over
nmen
t’s
sove
reig
n cr
edit
ratin
g or
out
look
, whi
ch c
ould
resu
lt in
ris
ks to
us
and
gene
ral e
cono
mic
con
ditio
ns th
at w
e ar
e no
t abl
e to
pre
dict
.•
Poss
ible
cha
nges
in m
arke
t int
eres
t rat
es o
r ca
pita
l mar
kets
cou
ld a
dver
sely
aff
ect o
ur re
venu
e an
d ex
pens
e, th
e va
lue
of a
sset
s an
d ob
ligat
ions
, and
the
avai
labi
lity
and
cost
of c
apita
l and
liqu
idity
.•
Any
impa
irm
ent o
f our
goo
dwill
or
othe
r in
tang
ible
s, o
r an
y ad
just
men
t of v
alua
tion
allo
wan
ces
on o
ur d
efer
red
tax
asse
ts d
ue to
adv
erse
cha
nges
in th
e ec
onom
ic e
nviro
nmen
t, d
eclin
ing
oper
atio
ns o
fth
e re
port
ing
unit,
or
othe
r fa
ctor
s.•
Poss
ible
cha
nges
in th
e cr
editw
orth
ines
s of
cus
tom
ers
and
the
poss
ible
impa
irm
ent o
f the
col
lect
abili
ty o
f loa
ns.
• Ch
ange
s in
the
spee
d of
loan
pre
paym
ents
, loa
n or
igin
atio
n an
d sa
le v
olum
es, c
harg
e-of
fs, l
oan
loss
pro
visi
ons
or a
ctua
l loa
n lo
sses
whe
re o
ur a
llow
ance
for
loan
loss
es m
ay n
ot b
e ad
equa
te to
cov
erou
r ev
entu
al lo
sses
.•
Poss
ible
acc
eler
atio
n of
pre
paym
ents
on
mor
tgag
e-ba
cked
sec
uriti
es d
ue to
low
inte
rest
rate
s, a
nd th
e re
late
d ac
cele
ratio
n of
pre
miu
m a
mor
tizat
ion
on th
ose
secu
ritie
s.•
Our
abi
lity
to e
ffec
tivel
y co
mpe
te w
ith o
ther
fina
ncia
l ser
vice
s co
mpa
nies
, som
e of
who
m p
osse
ss g
reat
er fi
nanc
ial r
esou
rces
than
we
do a
nd a
re s
ubje
ct to
diff
eren
t reg
ulat
ory
stan
dard
s th
an w
e ar
e.•
Loss
of c
usto
mer
che
ckin
g an
d sa
ving
s ac
coun
t dep
osits
as
cust
omer
s pu
rsue
oth
er, h
ighe
r-yi
eld
inve
stm
ents
, whi
ch c
ould
incr
ease
our
fund
ing
cost
s.•
Our
inab
ility
to d
evel
op a
nd g
ain
acce
ptan
ce fr
om c
urre
nt a
nd p
rosp
ectiv
e cu
stom
ers
for
new
pro
duct
s an
d se
rvic
es in
a ti
mel
y m
anne
r co
uld
have
a n
egat
ive
impa
ct o
n ou
r re
venu
e.•
The
effe
cts
of a
ny d
evel
opm
ents
, cha
nges
or
actio
ns re
latin
g to
any
litig
atio
n or
regu
lato
ry p
roce
edin
gs b
roug
ht a
gain
st u
s or
any
of o
ur s
ubsi
diar
ies.
• Ch
ange
s in
law
s an
d re
gula
tions
aff
ectin
g ou
r bu
sine
sses
, suc
h as
the
Dod
d-Fr
ank
Act
and
oth
er le
gisl
atio
n an
d re
gula
tions
rela
ting
to b
ank
prod
ucts
and
ser
vice
s, a
s w
ell a
s ch
ange
s in
the
enfo
rcem
ent
and
inte
rpre
tatio
n of
suc
h la
ws
and
regu
latio
ns b
y ap
plic
able
gov
ernm
enta
l and
sel
f-re
gula
tory
age
ncie
s, w
hich
cou
ld re
quire
us
to c
hang
e ce
rtai
n bu
sine
ss p
ract
ices
, inc
reas
e co
mpl
ianc
e ri
sk, r
educ
e ou
rre
venu
e, im
pose
add
ition
al c
osts
on
us, o
r ot
herw
ise
nega
tivel
y af
fect
our
bus
ines
ses.
• O
ur a
bilit
y to
obt
ain
a re
gula
tory
non
-obj
ectio
n (a
s pa
rt o
f the
CCA
R pr
oces
s or
oth
erw
ise)
to ta
ke c
erta
in c
apita
l act
ions
, inc
ludi
ng p
ayin
g di
vide
nds
and
any
plan
s to
incr
ease
com
mon
sto
ck d
ivid
ends
,re
purc
hase
com
mon
sto
ck u
nder
cur
rent
or
futu
re p
rogr
ams,
or
rede
em p
refe
rred
sto
ck o
r ot
her
regu
lato
ry c
apita
l ins
trum
ents
, may
impa
ct o
ur a
bilit
y to
retu
rn c
apita
l to
stoc
khol
ders
and
mar
ket
perc
eptio
ns o
f us.
•
Our
abi
lity
to c
ompl
y w
ith s
tres
s te
stin
g an
d ca
pita
l pla
nnin
g re
quire
men
ts (a
s pa
rt o
f the
CCA
R pr
oces
s or
oth
erw
ise)
may
con
tinue
to re
quire
a s
igni
fican
t inv
estm
ent o
f our
man
ager
ial r
esou
rces
due
to th
e im
port
ance
and
inte
nsity
of s
uch
test
s an
d re
quire
men
ts.
• O
ur a
bilit
y to
com
ply
with
app
licab
le c
apita
l and
liqu
idity
requ
irem
ents
(inc
ludi
ng, a
mon
g ot
her
thin
gs, t
he B
asel
III c
apita
l sta
ndar
ds a
nd th
e LC
R ru
le),
incl
udin
g ou
r ab
ility
to g
ener
ate
capi
tal i
nter
nally
or ra
ise
capi
tal o
n fa
vora
ble
term
s, a
nd if
we
fail
to m
eet r
equi
rem
ents
, our
fina
ncia
l con
ditio
n co
uld
be n
egat
ivel
y im
pact
ed.
• Th
e Ba
sel I
II fr
amew
ork
calls
for
addi
tiona
l ris
k-ba
sed
capi
tal s
urch
arge
s fo
r gl
obal
ly s
yste
mic
ally
impo
rtan
t ban
ks.
Alth
ough
we
are
not s
ubje
ct to
suc
h su
rcha
rges
, it i
s po
ssib
le th
at in
the
futu
re w
em
ay b
ecom
e su
bjec
t to
sim
ilar
surc
harg
es.
• Th
e co
sts,
incl
udin
g po
ssib
ly in
curr
ing
fines
, pen
altie
s, o
r ot
her
nega
tive
effe
cts
(incl
udin
g re
puta
tiona
l har
m) o
f any
adv
erse
judi
cial
, adm
inis
trat
ive,
or
arbi
tral
rul
ings
or
proc
eedi
ngs,
regu
lato
ryen
forc
emen
t act
ions
, or
othe
r le
gal a
ctio
ns to
whi
ch w
e or
any
of o
ur s
ubsi
diar
ies
are
a pa
rty,
and
whi
ch m
ay a
dver
sely
aff
ect o
ur re
sults
. •
Our
abi
lity
to m
anag
e flu
ctua
tions
in th
e va
lue
of a
sset
s an
d lia
bilit
ies
and
off-
bala
nce
shee
t exp
osur
e so
as
to m
aint
ain
suff
icie
nt c
apita
l and
liqu
idity
to s
uppo
rt o
ur b
usin
ess.
• O
ur a
bilit
y to
exe
cute
on
our
stra
tegi
c an
d op
erat
iona
l pla
ns, i
nclu
ding
our
abi
lity
to fu
lly re
aliz
e th
e fin
anci
al a
nd n
on-f
inan
cial
ben
efits
rela
ting
to o
ur s
trat
egic
initi
ativ
es.
• Th
e su
cces
s of
our
mar
ketin
g ef
fort
s in
att
ract
ing
and
reta
inin
g cu
stom
ers.
• Po
ssib
le c
hang
es in
con
sum
er a
nd b
usin
ess
spen
ding
and
sav
ing
habi
ts a
nd th
e re
late
d ef
fect
on
our
abili
ty to
incr
ease
ass
ets
and
to a
ttra
ct d
epos
its, w
hich
cou
ld a
dver
sely
aff
ect o
ur n
et in
com
e.•
Our
abi
lity
to re
crui
t and
reta
in ta
lent
ed a
nd e
xper
ienc
ed p
erso
nnel
to a
ssis
t in
the
deve
lopm
ent,
man
agem
ent a
nd o
pera
tion
of o
ur p
rodu
cts
and
serv
ices
may
be
affe
cted
by
chan
ges
in la
ws
and
regu
latio
ns in
eff
ect f
rom
tim
e to
tim
e.•
Frau
d or
mis
cond
uct b
y ou
r cu
stom
ers,
em
ploy
ees
or b
usin
ess
part
ners
.
Forw
ard-
look
ing
stat
emen
ts c
ontin
ued
The
fore
goin
g lis
t of f
acto
rs is
not
exh
aust
ive.
For
dis
cuss
ion
of th
ese
and
othe
r fac
tors
that
may
cau
se a
ctua
l res
ults
to d
iffer
from
exp
ecta
tions
, loo
k un
der t
he c
aptio
ns “
Forw
ard-
Look
ing
Stat
emen
ts”
and
“Ris
kFa
ctor
s" o
f Reg
ions
' Ann
ual R
epor
t on
Form
10-
K fo
r th
e ye
ar e
nded
Dec
embe
r 31
, 201
5, a
s fil
ed w
ith th
e Se
curi
ties
and
Exch
ange
Com
mis
sion
.
The
wor
ds “
antic
ipat
es,”
“in
tend
s,”
“pla
ns,”
“se
eks,
” “b
elie
ves,
” “e
stim
ates
,” “
expe
cts,
” “t
arge
ts,”
“pr
ojec
ts,”
“ou
tlook
,” “
fore
cast
,” “
will
,” “
may
,” “
coul
d,”
“sho
uld,
” “c
an,”
and
sim
ilar
expr
essi
ons
ofte
n si
gnify
forw
ard-
look
ing
stat
emen
ts. Y
ou s
houl
d no
t pla
ce u
ndue
relia
nce
on a
ny fo
rwar
d-lo
okin
g st
atem
ents
, whi
ch s
peak
onl
y as
of t
he d
ate
mad
e. W
e as
sum
e no
obl
igat
ion
to u
pdat
e or
revi
se a
ny fo
rwar
d-lo
okin
gst
atem
ents
that
are
mad
e fr
om ti
me
to ti
me.
20
• A
ny in
accu
rate
or
inco
mpl
ete
info
rmat
ion
prov
ided
to u
s by
our
cus
tom
ers
or c
ount
erpa
rtie
s.•
The
risk
s an
d un
cert
aint
ies
rela
ted
to o
ur a
cqui
sitio
n an
d in
tegr
atio
n of
oth
er c
ompa
nies
.•
Inab
ility
of o
ur fr
amew
ork
to m
anag
e ri
sks
asso
ciat
ed w
ith o
ur b
usin
ess
such
as
cred
it ri
sk a
nd o
pera
tiona
l ris
k, in
clud
ing
third
-par
ty v
endo
rs a
nd o
ther
ser
vice
pro
vide
rs, w
hich
cou
ld, a
mon
g ot
her
thin
gs, r
esul
t in
a br
each
of o
pera
ting
or s
ecur
ity s
yste
ms
as a
resu
lt of
a c
yber
att
ack
or s
imila
r ac
t.
• Th
e in
abili
ty o
f our
inte
rnal
dis
clos
ure
cont
rols
and
pro
cedu
res
to p
reve
nt, d
etec
t or
miti
gate
any
mat
eria
l err
ors
or fr
audu
lent
act
s.•
The
effe
cts
of g
eopo
litic
al in
stab
ility
, inc
ludi
ng w
ars,
con
flict
s an
d te
rror
ist a
ttac
ks a
nd th
e po
tent
ial i
mpa
ct, d
irect
ly o
r in
dire
ctly
, on
our
busi
ness
es.
• Th
e ef
fect
s of
man
-mad
e an
d na
tura
l dis
aste
rs, i
nclu
ding
fire
s, fl
oods
, dro
ught
s, to
rnad
oes,
hur
rica
nes,
and
env
ironm
enta
l dam
age,
whi
ch m
ay n
egat
ivel
y af
fect
our
ope
ratio
ns a
nd/o
r ou
r lo
an p
ortf
olio
san
d in
crea
se o
ur c
ost o
f con
duct
ing
busi
ness
.•
Chan
ges
in c
omm
odity
mar
ket p
rice
s an
d co
nditi
ons
coul
d ad
vers
ely
affe
ct th
e ca
sh fl
ows
of o
ur b
orro
wer
s op
erat
ing
in in
dust
ries
that
are
impa
cted
by
chan
ges
in c
omm
odity
pri
ces
(incl
udin
g bu
sine
sses
indi
rect
ly im
pact
ed b
y co
mm
oditi
es p
rice
s su
ch a
s bu
sine
sses
that
tran
spor
t com
mod
ities
or
man
ufac
ture
equ
ipm
ent u
sed
in th
e pr
oduc
tion
of c
omm
oditi
es),
whi
ch c
ould
impa
ir th
eir
abili
ty to
ser
vice
any
loan
s ou
tsta
ndin
g to
them
and
/or
redu
ce d
eman
d fo
r lo
ans
in th
ose
indu
stri
es.
• O
ur in
abili
ty to
kee
p pa
ce w
ith te
chno
logi
cal c
hang
es c
ould
resu
lt in
losi
ng b
usin
ess
to c
ompe
titor
s.•
Our
abi
lity
to id
entif
y an
d ad
dres
s cy
ber-
secu
rity
ris
ks s
uch
as d
ata
secu
rity
bre
ache
s, “
deni
al o
f ser
vice
” at
tack
s, “
hack
ing”
and
iden
tity
thef
t, a
failu
re o
f whi
ch c
ould
dis
rupt
our
bus
ines
s an
d re
sult
inth
e di
sclo
sure
of a
nd/o
r m
isus
e or
mis
appr
opri
atio
n of
con
fiden
tial o
r pr
opri
etar
y in
form
atio
n; in
crea
sed
cost
s; lo
sses
; or
adve
rse
effe
cts
to o
ur re
puta
tion.
•
Our
abi
lity
to re
aliz
e ou
r ef
ficie
ncy
ratio
targ
et a
s pa
rt o
f our
exp
ense
man
agem
ent i
nitia
tives
.•
Sign
ifica
nt d
isru
ptio
n of
, or
loss
of p
ublic
con
fiden
ce in
, the
Inte
rnet
and
ser
vice
s an
d de
vice
s us
ed to
acc
ess
the
Inte
rnet
cou
ld a
ffec
t the
abi
lity
of o
ur c
usto
mer
s to
acc
ess
thei
r ac
coun
ts a
nd c
ondu
ctba
nkin
g tr
ansa
ctio
ns.
• Po
ssib
le d
owng
rade
s in
our
cre
dit r
atin
gs o
r ou
tlook
cou
ld in
crea
se th
e co
sts
of fu
ndin
g fr
om c
apita
l mar
kets
. •
The
effe
cts
of p
robl
ems
enco
unte
red
by o
ther
fina
ncia
l ins
titut
ions
that
adv
erse
ly a
ffec
t us
or th
e ba
nkin
g in
dust
ry g
ener
ally
cou
ld re
quire
us
to c
hang
e ce
rtai
n bu
sine
ss p
ract
ices
, red
uce
our
reve
nue,
impo
se a
dditi
onal
cos
ts o
n us
, or
othe
rwis
e ne
gativ
ely
affe
ct o
ur b
usin
esse
s.•
The
effe
cts
of th
e fa
ilure
of a
ny c
ompo
nent
of o
ur b
usin
ess
infr
astr
uctu
re p
rovi
ded
by a
third
par
ty c
ould
dis
rupt
our
bus
ines
ses;
resu
lt in
the
disc
losu
re o
f and
/or
mis
use
of c
onfid
entia
l inf
orm
atio
n or
prop
riet
ary
info
rmat
ion;
incr
ease
our
cos
ts; n
egat
ivel
y af
fect
our
repu
tatio
n; a
nd c
ause
loss
es.
• O
ur a
bilit
y to
rece
ive
divi
dend
s fr
om o
ur s
ubsi
diar
ies
coul
d af
fect
our
liqu
idity
and
abi
lity
to p
ay d
ivid
ends
to s
tock
hold
ers.
• Ch
ange
s in
acc
ount
ing
polic
ies
or p
roce
dure
s as
may
be
requ
ired
by th
e FA
SB o
r ot
her
regu
lato
ry a
genc
ies
coul
d m
ater
ially
aff
ect h
ow w
e re
port
our
fina
ncia
l res
ults
.•
Oth
er r
isks
iden
tifie
d fr
om ti
me
to ti
me
in re
port
s th
at w
e fil
e w
ith th
e SE
C.•
The
effe
cts
of a
ny d
amag
e to
our
repu
tatio
n re
sulti
ng fr
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