Regions Bank 2015 Annual Report Download - page 3

(1)
Adjusted for the reclassication of $834 million
of certain leases out of loans into other earning
assets at year-end. For further detail see page 19
in the fourth quarter 2015 supplement.
Adjusted
Ending Loans(1)
($ in billions)
2013 2014 2015
$74.6
$77.3
$82.0
Two-Year
Increase
10%
Ending Deposits
($ in billions)
2013 2014 2015
$92.5
$94.2
$98.4
Two-Year
Increase
6%
Regions 2015 Annual Review3 Perspective Regions
Historically, services offered by banks have included
providing financing, holding investments and deposits
and facilitating payments. Customer relationships are
paramount in achieving success in each of these
services. In our current operating environment, it is
crucial that we have a focused strategy and a clear
perspective about what products, services and mar-
kets are the best ones for Regions and our stakehold-
ers. For that reason, even as we embrace innovation
and explore new channels and opportunities to reach
customers, we remain committed to certain core
beliefs about how to run our business.
Building Sustainable Franchise Value
We believe that, fundamentally, banking remains a
people business. When it comes time for customers
to make their most important financial decisions – like
buying a home, planning for retirement, launching
a new business or funding a child’s college education
– they want to work with a trusted financial expert
who understands their needs and cares about their
financial future. Providing that personalized expertise
remains as relevant today as ever.
Further, we succeed when we put customer needs
at the center of our work every day. Our needs-
based approach to relationship banking, which
we call Regions360SM, allows us to build trust,
expand relationships with existing customers and
earn the business of new ones. When we talk to
Regions customers – whether it is a young family or
a large business customer – we often hear about the
many instances where our associates exceed their
expectations. However, the evidence is more than
anecdotal; there are many empirical measures of
Regions’ success on this front. Last year Regions ranked
highest for customer satisfaction among all retail banks
in the 2015 American Customer Satisfaction Index
(ACSI) Report, and was also recognized as a top decile
performer in the Temkin Group’s customer experience
rankings of U.S. businesses. Moreover, the performance
of our bankers earned Regions the designation of
Most Reputable Bank in a 2015 research study by the
Reputation Institute and American Banker magazine.
Being selective about the markets we operate in, and
understanding those markets thoroughly, is another
focal point of our operating philosophy. We believe our
geographic footprint is one of our greatest advantages.
Spanning the South, Midwest and Texas, we serve
some of the highest growth markets in the country.
Our service area features many positive trends in
categories such as job growth, trade volumes and
manufacturing expansion. In fact, nearly 40 percent of
U.S. Gross Domestic Product (GDP) is generated within
our footprint. And, most important, in each of these
markets our bankers are deeply engaged in community
and philanthropic initiatives and closely connected
to business and civic leadership.
A strong commitment to diversification is also
core to how we operate our business responsibly.
Diversification by market, by product, by industry
segment and by customer segment helps manage
risk and strengthen our performance throughout
the economic cycle. Revenue diversification is also
an important part of our growth strategy and will
be fundamental to our future success. Investing in
initiatives that grow revenue sources from a variety
of product offerings will provide our company a
broader and more stable source of income.
Most important, and at our company’s foundation,
is our belief that in order to build a high-performing,
sustainable business we must create shared value for
all our stakeholders: customers, associates, communities
and shareholders. The success of each stakeholder group
is essential to achieving our organizational objectives.
That is why all of the decisions we make are guided by
our commitment to creating shared value, a process
which, in turn, helps build a strong, winning culture
within our organization.
Many Positives in a Challenging Environment
Throughout 2015 we remained focused on executing
our strategic initiatives, and Regions performed well
despite market conditions that were challenging in
several ways – most notably a persistently low interest
rate environment. While the U.S. economy is slowly