Regions Financial Corporation (NYSE:RF) Q4 2014 Earnings Conference Call - Final Transcript

Jan 20, 2015 • 11:00 am ET


Regions Financial Corporation (NYSE:RF) Q4 2014 Earnings Conference Call - Final Transcript


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Good morning and welcome to the Regions Financial Corporation's Quarterly Earnings Call. My name is Paula and I'll 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 to begin.

List Underwood

Thank you, operator and good morning, everyone. We appreciate your participation on our call this morning. Our presenters today are Grayson Hall, our Chief Executive Officer and David Turner, our Chief Financial Officer. Other members of our executive management team are present and available to answer questions as appropriate.

Also, as part of our earnings call, we will be referencing a slide presentation that is available under the investor relations section at Finally, let me remind you that in this call, and potentially in the Q&A that follows, we may make forward looking statements, which reflect our current views with respect to future events and financial performance.

For further details, please reference our forward looking statement that is located in the appendix section of the presentation. Grayson?

Grayson Hall

Thank you, List, and good morning, everyone. We're pleased you could join us for this morning as we reveal our fourth quarter and our full year 2014 results. This quarter, we reported $195 million of net income available to common shareholders bringing our full year results to $1.1 billion of net income available to common shareholders and earnings per diluted share of $0.80, an increase of 4% over 2013.

Included in the earnings are some new unusual items which David will address in his remarks. Overall, these results reflect steady progress in 2014 as we continue to focus on the fundamentals of banking, and meeting customer needs through service and innovation, while maintaining a prudent and discipline risk culture.

In 2014, we grew loans and deposits, we expanded our customer base, we prudently managed expenses, we improved asset quality, and improved our capital ratio. Loans increased a total of $3 billion, or 4% here in 2014. Importantly, this growth was broad base, with both business and consumer loan portfolios increasing. In 2014, deposits increased $2 billion, or 2% while deposit costs reached historic lows. Through the successful execution of Regions360, which is our prescriptive approach to relationship banking, the number of quality households increased and we grew the number of checking, savings, credit card and wealth management counts. We believe this growth positions us well as we head into 2015.

We remain focused on achieving operational efficiencies and reduce full year expenses on an adjusted basis by 2% than previous year. An example of our efforts during the fourth quarter we made a decision to consolidate 50 branch offices are approximately 3% of our network in locations across our markets.

Over time, we expect to add branches and higher opportunity markets, such as St. Louis, Atlanta, Houston and New Orleans, through improved technology,