Regions Bank 2014 Annual Report Download - page 4

3 REGIONS 2014 ANNUAL REVIEW
While the branch remains vital, its role is steadily evolving. We see
the branch channel transitioning from its current function as a vehicle
to conduct transactions to that of a facilitator of customer service,
community engagement, financial education and advice and
guidance, all while offering financial products that customers
want to acquire at a branch office. Today we are experimenting with
different formats, different staffing models and different types of
technology to make our branches more efficient. As we do so, we
carefully evaluate customer response to ensure we are aligned with
the needs and expectations of customers in each individual market.
We are also taking steps to rationalize our branch network. This
means consolidating branches where warranted, as well as adding
new ones in target markets such as St. Louis, Atlanta, Houston and
New Orleans.
Driving Further Progress: A Strong Team with a Strong Culture
We look ahead to 2015 with confidence in our ability to sustain our
steady progress and create increased value for all our stakehold-
ers. We are well-positioned in a number of ways. First, from a
domestic economy perspective, we expect the overall recovery
to continue at a reasonable pace. And, as noted previously, the
markets in our service area offer the opportunity to recover and
grow at rates above the national average. We will continue to
increase our resource and capital investments in markets with
particularly attractive growth profiles.
We anticipate that the current low interest rate environment is likely
to persist for most of 2015. With that in mind, we are mitigating
the risk of a modest growth, low rate environment by focusing on
the diversification of our revenues and with very rigorous expense
management activities. We enter 2015 with confidence that we
have solid business plans and a team committed to executing
those plans.
In particular, we see a terrific opportunity to provide additional
products that customers need and value. Many customers today
have financial services needs that we have not yet met. We want to
broaden and deepen those relationships, and we have the tools
and strategies in place to be successful in that effort.
The health of the communities we serve, both their economic and
social well-being, is also vital to our continued success. For Regions
to prosper, we must be thoughtful in our work to create value for
communities. We are committed to continuing to build community
success through business and philanthropic investments and
engagement initiatives that address important needs like financial
literacy and investor education, and through the time and leadership
talents of thousands of Regions associates who support philan-
thropic endeavors in their hometowns.
We are committed to sustaining growth and creating value, and we
believe we can achieve these goals by leveraging the passion for
service among our more than 23,000 Regions associates. Our
continued success in delivering for customers rests with each of
them. New initiatives are underway to maximize their contributions
by refining and strengthening our organizational culture so that it is
more open and transparent, values every opinion and every per-
spective and encourages and enables even higher performance.
We believe we are building the best team in the industry to lead the
way to deliver on our plans.
I am grateful to our associates, our Board of Directors, our customers
and shareholders, for their continuing support and confidence.
Sincerely,
Grayson Hall
Chairman, President and Chief Executive Officer
3%Decrease
Lower Adjusted
Non-Interest Expense*
$3,471
$3,358
2012
2013
2014
$3,432
($ in millions)
* See Table 2 in Form 10-K for GAAP to non-GAAP reconciliations.
27
bps Improvement
Lower Total Funding Costs
0.58%
0.31%
2012
2013
2014
0.38%