Regions Bank 2015 Annual Report Download - page 5

(1)
See table 2 in Form 10-K for GAAP to non-GAAP reconciliations.
Regions 2015 Annual Review
5 Perspective Regions
growth along with returning an appropriate amount
of capital to our shareholders. Additionally, we will
use capital to invest strategically in initiatives to
increase revenue or reduce on-going expenses.
Increased Efficiency to Drive Growth
In the fourth quarter of 2015 the Federal Reserve
implemented its first rate increase in nearly a
decade, and while this is a positive for our business,
rates remain low by historical standards. We expect
the pace of future interest rate increases to be slow
and measured. Given that backdrop, we have renewed
our focus on an area which is clearly within our
control – expense management – and have adopted a
plan to eliminate $300 million in core expenses over
the next three years to reinvest in our business. This
target translates to approximately 9 percent of our
adjusted expense(1) base.
Over the past several years we have taken meaningful
steps to reduce expenses, including consolidating
more than 20 percent of our branches since the
financial crisis. Today we see additional opportu-
nities to operate more efficiently – by leveraging
technology to reduce manual processes, rationalizing
staffing levels, especially in non-customer-facing
areas, implementing additional branch consolidations
where appropriate, and reducing third-party and discre-
tionary expenditures.
Our objective goes beyond expense control; it also
encompasses growth through innovation. As we
operate more efficiently we will reallocate much
of those savings to initiatives designed to grow and
diversify revenue, with a particular emphasis on areas
such as capital markets, treasury management, Wealth
Management and insurance services, where we see
compelling growth opportunities. We will also continue
to explore new innovative initiatives such as point-of-
sale lending in collaboration with GreenSky® which
offers convenience while meeting consumer needs in
I am proud that we have some of the best bankers in our industry working every
day to provide the advice, guidance and education our customers need to make
wise decisions that improve their nancial wellbeing.”
“
the home improvement space, and online lending solu-
tions for small businesses through FundationTM. Over
the long term we seek to realize a compound annual
growth rate of earnings per share of 12-15 percent
and adjusted return on tangible common equity of 12-14
percent. Our expense control and growth initiatives will
play a central role in achieving this objective.
A Strong Cultural Foundation Underpins
Our Growth Agenda
We will also continue to build a strong culture, which
is fostered by more than 23,000 associates with a
passion for serving customers. Our effort to create
a more engaged workplace was recognized last year
when Regions received Gallup’s Great Workplace
Award, one of only 40 companies worldwide to be
honored for success in creating an engaged culture.
I am proud that we have some of the best bankers in
our industry working every day to provide the advice,
guidance and education our customers need to make
wise decisions that improve their financial wellbeing.
Despite the many changes underway in the financial
services industry, we continue to strongly believe that
there is a tremendous need in our communities for a
bank centered on relationships and people. Because
of the expertise and passion of our associates, we are
uniquely positioned to be that provider.
I am grateful to each of our associates for their hard
work and commitment, and to our Board of Directors,
our customers and shareholders for their continued
support.
Sincerely,
Grayson Hall
Chairman, President and Chief Executive Officer