FDIC - Statistics on Depository Institutions Report
	Regions Bank	Peer Group	Regions Bank	Peer Group
	12/31/2017	12/31/2017	12/31/2016	12/31/2016
Performance Ratios (%, annualized)
Yield on earning assets	3.40%	3.88%	3.35%	3.78%
Cost of funding earning assets	0.23%	0.37%	0.20%	0.32%
Net interest margin	3.17%	3.50%	3.15%	3.45%
Noninterest income to assets	1.63%	1.73%	1.49%	1.80%
Noninterest expense to assets	2.69%	2.80%	2.74%	2.84%
Loan and lease loss provision to assets	0.21%	0.42%	0.20%	0.32%
Net operating income to assets	1.03%	1.15%	0.90%	1.20%
Return on assets (ROA)	1.03%	1.14%	0.91%	1.19%
Pretax return on assets	1.49%	1.63%	1.32%	1.71%
Return on equity (ROE)	7.86%	10.04%	6.90%	10.56%
Retained earnings to average equity (YTD only)	0.62%	3.51%	1.58%	4.04%
Net charge-offs to loans and leases	0.34%	0.56%	0.30%	0.48%
Loan and lease loss provision to net charge-offs	94.44%	112.55%	101.26%	101.58%
Earnings coverage of net loan charge-offs (x)	7.63	5.48	7.64	6.39
Efficiency ratio*	60.68%	56.72%	63.98%	57.37%
Assets per employee ($ millions)	5.86	7.09	5.55	7.04
Cash dividends to net income (YTD only)	92.14%	65.03%	77.05%	61.72%
Condition Ratios (%)
Earning assets to total assets	86.79%	89.45%	87.23%	89.28%
Loss allowance to loans and leases	1.35%	1.41%	1.36%	1.43%
Loss allowance to noncurrent loans and leases	84.50%	101.12%	97.06%	100.37%
Noncurrent assets plus other real estate owned to assets	1.16%	0.98%	1.01%	1.02%
Noncurrent loans to loans	1.60%	1.39%	1.49%	1.42%
Net loans and leases to assets	63.76%	66.10%	64.34%	66.04%
Net loans and leases to deposits	79.40%	86.57%	80.92%	87.74%
Net loans and leases to core deposits	83.42%	98.15%	85.38%	98.65%
Domestic deposits to total assets	80.15%	74.43%	79.32%	73.04%
Equity capital to assets	12.87%	11.25%	12.89%	11.30%
Core capital (leverage) ratio	10.34%	9.25%	10.28%	9.33%
Tier 1 risk-based capital ratio	12.14%	10.96%	11.68%	10.92%
Total risk-based capital ratio	14.00%	13.01%	13.59%	12.95%
Common equity tier 1 capital ratio	12.14%	10.71%	11.68%	10.69%
*Efficiency ratio: Noninterest expense less amortization of intangible assets as a percent of net interest income plus noninterest income

1. Based on the information above, which of the following statements about Regions Banks profitability is accurate?

a. Regions Bank has been more profitable than its peers because it has achieved a larger spread between its yield on earning assets and its cost of funds.

b. Regions Bank has been less profitable than its peers because of its higher operating expenses.

c. Regions Bank has been less profitable than its peers because of its lower yield on earning assets, which is the reason for its lower net interest margin.

d. Regions Bank has been less profitable than its peers because it has a higher cost of funds.

2. Which of the following statements about Regions Banks asset quality is accurate?

a. Regions Bank has better asset quality than its peers.

b. Regions Bank is better positioned than its peers to cover future losses from its lending activities.

c. Regions Bank has incurred more losses in its loan portfolio than its peers have.

d. Regions Bank has more problem loans in its balance sheet than its peers, which could adversely affect future profitability.

3. Which of the following is not an accurate assessment of Regions Banks performance?

a. Regions Bank has more room to grow its loan portfolio from its deposit base than its peers.

b. Regions Bank meets all the requirements of a well-capitalized bank.

c. Regions Bank derives a larger proportion of its income from non-traditional banking activities (e.g. investment banking services and other fee income-generating activities) than its peers.

d. Regions Bank has been consistently less profitable than its peers over the past two years.