Provided By Business Wire
Last update: Jul 18, 2025
Regions Financial Corp. (NYSE:RF) today reported earnings for the second quarter ended June 30, 2025. The company reported second quarter net income available to common shareholders of $534 million and diluted earnings per common share of $0.59. Adjusted net income available to common shareholders(1) was $538 million, and adjusted diluted earnings per common share(1) was $0.60. Compared to the second quarter of 2024, reported and adjusted net income available to common shareholders(1) increased 12 percent and 10 percent, respectively. The company reported $1.9 billion in total revenue during the second quarter, including $832 million in pre-tax pre-provision income(1).
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20250718177868/en/
"Our second quarter results demonstrate continued momentum across our franchise and the benefits of the strategic investments we've made in talent, technology, and capabilities," said John Turner, Chairman, President and CEO of Regions Financial Corp.
Turner added, "We are experiencing solid deposit growth, disciplined loan production, and strong performance across fee-based businesses, including Treasury Management and Wealth Management. As we modernize our platforms and expand further in key growth areas across our footprint, we remain committed to executing our plan while generating top-quartile returns and long-term value for our shareholders. Our strong performance is the result of remaining focused on the financial needs and opportunities of our clients and operating in a responsible manner for the benefit of the people we serve."
SUMMARY OF SECOND QUARTER RESULTS: |
||||||||||
|
|
Quarter Ended |
|
|||||||
(amounts in millions, except per share data) |
|
6/30/2025 |
|
3/31/2025 |
|
6/30/2024 |
|
|||
Net income |
|
$ |
563 |
|
$ |
490 |
|
$ |
501 |
|
Preferred dividends and other* |
|
|
29 |
|
|
25 |
|
|
24 |
|
Net income available to common shareholders |
|
$ |
534 |
|
$ |
465 |
|
$ |
477 |
|
Adjusted net income available to common shareholders (non-GAAP)(1) |
|
$ |
538 |
|
$ |
487 |
|
$ |
488 |
|
|
|
|
|
|
|
|
|
|||
Weighted-average diluted shares outstanding |
|
|
900 |
|
|
910 |
|
|
918 |
|
Actual shares outstanding—end of period |
|
|
894 |
|
|
899 |
|
|
915 |
|
|
|
|
|
|
|
|
|
|||
Diluted earnings per common share |
|
$ |
0.59 |
|
$ |
0.51 |
|
$ |
0.52 |
|
Adjusted diluted earnings per common share (non-GAAP)(1) |
|
$ |
0.60 |
|
$ |
0.54 |
|
$ |
0.53 |
|
|
|
|
|
|
|
|
|
|||
* The second quarter 2025 amount includes $4 million of Series D preferred stock issuance costs, which reduced net income available to common shareholders when the shares were redeemed. |
Non-GAAP adjusted items(1) impacting the company's earnings are identified to assist investors in analyzing Regions' operating results on the same basis as that applied by management and provide a basis to predict future performance. See "Use of Non-GAAP Financial Measures" below for more information.
Total revenue |
||||||||||||||||||||||||||
|
|
Quarter Ended |
||||||||||||||||||||||||
($ amounts in millions) |
|
6/30/2025 |
|
3/31/2025 |
|
6/30/2024 |
|
2Q25 vs. 1Q25 |
|
2Q25 vs. 2Q24 |
||||||||||||||||
Net interest income |
|
$ |
1,259 |
|
|
$ |
1,194 |
|
|
$ |
1,186 |
|
|
$ |
65 |
|
|
5.4 |
% |
|
$ |
73 |
|
|
6.2 |
% |
Taxable equivalent adjustment |
|
|
12 |
|
|
|
12 |
|
|
|
12 |
|
|
|
— |
|
|
— |
% |
|
|
— |
|
|
— |
% |
Net interest income, taxable equivalent basis |
|
$ |
1,271 |
|
|
$ |
1,206 |
|
|
$ |
1,198 |
|
|
$ |
65 |
|
|
5.4 |
% |
|
$ |
73 |
|
|
6.1 |
% |
Net interest margin (FTE) |
|
|
3.65 |
% |
|
|
3.52 |
% |
|
|
3.51 |
% |
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Non-interest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Service charges on deposit accounts |
|
$ |
151 |
|
|
$ |
161 |
|
|
$ |
151 |
|
|
$ |
(10 |
) |
|
(6.2 |
)% |
|
$ |
— |
|
|
— |
% |
Card and ATM fees |
|
|
125 |
|
|
|
117 |
|
|
|
120 |
|
|
|
8 |
|
|
6.8 |
% |
|
|
5 |
|
|
4.2 |
% |
Wealth management income |
|
|
133 |
|
|
|
129 |
|
|
|
122 |
|
|
|
4 |
|
|
3.1 |
% |
|
|
11 |
|
|
9.0 |
% |
Capital markets income |
|
|
83 |
|
|
|
80 |
|
|
|
68 |
|
|
|
3 |
|
|
3.8 |
% |
|
|
15 |
|
|
22.1 |
% |
Mortgage income |
|
|
48 |
|
|
|
40 |
|
|
|
34 |
|
|
|
8 |
|
|
20.0 |
% |
|
|
14 |
|
|
41.2 |
% |
Commercial credit fee income |
|
|
29 |
|
|
|
27 |
|
|
|
28 |
|
|
|
2 |
|
|
7.4 |
% |
|
|
1 |
|
|
3.6 |
% |
Bank-owned life insurance |
|
|
24 |
|
|
|
23 |
|
|
|
30 |
|
|
|
1 |
|
|
4.3 |
% |
|
|
(6 |
) |
|
(20.0 |
)% |
Market value adjustments on employee benefit assets* |
|
|
16 |
|
|
|
(3 |
) |
|
|
2 |
|
|
|
19 |
|
|
NM |
|
|
|
14 |
|
|
NM |
|
Securities gains (losses), net |
|
|
(1 |
) |
|
|
(25 |
) |
|
|
(50 |
) |
|
|
24 |
|
|
96.0 |
% |
|
|
49 |
|
|
98.0 |
% |
Other miscellaneous income |
|
|
38 |
|
|
|
41 |
|
|
|
40 |
|
|
|
(3 |
) |
|
(7.3 |
)% |
|
|
(2 |
) |
|
(5.0 |
)% |
Non-interest income |
|
$ |
646 |
|
|
$ |
590 |
|
|
$ |
545 |
|
|
$ |
56 |
|
|
9.5 |
% |
|
$ |
101 |
|
|
18.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Adjusted non-interest income (non-GAAP)(1) |
|
$ |
646 |
|
|
$ |
615 |
|
|
$ |
595 |
|
|
$ |
31 |
|
|
5.0 |
% |
|
$ |
51 |
|
|
8.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total revenue |
|
$ |
1,905 |
|
|
$ |
1,784 |
|
|
$ |
1,731 |
|
|
$ |
121 |
|
|
6.8 |
% |
|
$ |
174 |
|
|
10.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Adjusted total revenue (non-GAAP)(1) |
|
$ |
1,905 |
|
|
$ |
1,809 |
|
|
$ |
1,781 |
|
|
$ |
96 |
|
|
5.3 |
% |
|
$ |
124 |
|
|
7.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
NM - Not Meaningful |
||||||||||||||||||||||||||
* These market value adjustments relate to assets held for employee and director benefits that are offset within salaries and employee benefits and other non-interest expense. |
Total revenue increased 7 percent on a reported basis and 5 percent on an adjusted basis(1) compared to the first quarter of 2025. The benefits of fixed-rate asset turnover, better funding costs and mix, credit-related recoveries, an additional day, and nonrecurring items that reduced the prior quarter increased net interest income by 5 percent. Total net interest margin increased 13 basis points to 3.65 percent.
Non-interest income increased 9 percent on a reported basis and 5 percent on an adjusted basis(1) compared to the first quarter of 2025. Card and ATM fees increased 7 percent driven by seasonally higher transaction volumes. Mortgage income increased 20 percent attributable to a $13 million favorable mortgage servicing rights valuation adjustment. Wealth management income increased 3 percent and represented another record quarter. Capital markets income increased 4 percent due primarily to higher merger and acquisition advisory services and real estate related income. Additionally, market value adjustments on employee benefit assets increased $19 million during the quarter. Changes in these market value adjustments are offset in salaries and benefits and other non-interest expense. Offsetting these gains, service charges decreased 6 percent primarily due to a seasonal decline in treasury management income.
Non-interest expense |
|||||||||||||||||||||||
|
|
Quarter Ended |
|||||||||||||||||||||
($ amounts in millions) |
|
6/30/2025 |
|
3/31/2025 |
|
6/30/2024 |
|
2Q25 vs. 1Q25 |
|
2Q25 vs. 2Q24 |
|||||||||||||
Salaries and employee benefits |
|
$ |
658 |
|
$ |
625 |
|
$ |
609 |
|
$ |
33 |
|
|
5.3 |
% |
|
$ |
49 |
|
|
8.0 |
% |
Equipment and software expense |
|
|
104 |
|
|
99 |
|
|
100 |
|
|
5 |
|
|
5.1 |
% |
|
|
4 |
|
|
4.0 |
% |
Net occupancy expense |
|
|
72 |
|
|
70 |
|
|
68 |
|
|
2 |
|
|
2.9 |
% |
|
|
4 |
|
|
5.9 |
% |
Outside services |
|
|
39 |
|
|
40 |
|
|
40 |
|
|
(1 |
) |
|
(2.5 |
)% |
|
|
(1 |
) |
|
(2.5 |
)% |
Marketing |
|
|
26 |
|
|
30 |
|
|
27 |
|
|
(4 |
) |
|
(13.3 |
)% |
|
|
(1 |
) |
|
(3.7 |
)% |
Professional, legal and regulatory expenses |
|
|
28 |
|
|
23 |
|
|
25 |
|
|
5 |
|
|
21.7 |
% |
|
|
3 |
|
|
12.0 |
% |
Credit/checkcard expenses |
|
|
16 |
|
|
15 |
|
|
15 |
|
|
1 |
|
|
6.7 |
% |
|
|
1 |
|
|
6.7 |
% |
FDIC insurance assessments |
|
|
20 |
|
|
20 |
|
|
29 |
|
|
— |
|
|
— |
% |
|
|
(9 |
) |
|
(31.0 |
)% |
Visa class B shares expense |
|
|
4 |
|
|
7 |
|
|
5 |
|
|
(3 |
) |
|
(42.9 |
)% |
|
|
(1 |
) |
|
(20.0 |
)% |
Operational losses |
|
|
13 |
|
|
13 |
|
|
18 |
|
|
— |
|
|
— |
% |
|
|
(5 |
) |
|
(27.8 |
)% |
Branch consolidation, property and equipment charges |
|
|
— |
|
|
— |
|
|
1 |
|
|
— |
|
|
— |
% |
|
|
(1 |
) |
|
(100.0 |
)% |
Other miscellaneous expenses |
|
|
93 |
|
|
97 |
|
|
67 |
|
|
(4 |
) |
|
(4.1 |
)% |
|
|
26 |
|
|
38.8 |
% |
Non-interest expense |
|
$ |
1,073 |
|
$ |
1,039 |
|
$ |
1,004 |
|
$ |
34 |
|
|
3.3 |
% |
|
$ |
69 |
|
|
6.9 |
% |
Adjusted non-interest expense (non-GAAP)(1) |
|
$ |
1,073 |
|
$ |
1,035 |
|
$ |
1,032 |
|
$ |
38 |
|
|
3.7 |
% |
|
$ |
41 |
|
|
4.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and Benefits Expense |
||||||||||||||||||||||
|
Quarter Ended |
|||||||||||||||||||||
($ amounts in millions) |
|
6/30/2025 |
|
3/31/2025 |
|
6/30/2024 |
|
2Q25 vs. 1Q25 |
|
2Q25 vs. 2Q24 |
||||||||||||
Salaries and employee benefits |
|
$ |
658 |
|
$ |
625 |
|
|
$ |
609 |
|
$ |
33 |
|
5.3 |
% |
|
$ |
49 |
|
8.0 |
% |
Less: Market value adjustments on 401(k) liabilities* |
|
|
16 |
|
|
(1 |
) |
|
|
4 |
|
|
17 |
|
NM |
|
|
|
12 |
|
300.0 |
% |
Salaries and employee benefits less market value adjustments on employee benefit liabilities |
|
$ |
642 |
|
$ |
626 |
|
|
$ |
605 |
|
$ |
16 |
|
2.6 |
% |
|
$ |
37 |
|
6.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
NM - Not Meaningful |
||||||||||||||||||||||
* The Company holds assets in order to offset the market value adjustments on 401(k) liabilities and the market value adjustments on those assets are recorded in non-interest income. |
Non-interest expense increased 3 percent on a reported basis and 4 percent on an adjusted basis(1) compared to the first quarter of 2025. As expected, salaries and benefits increased 5 percent driven primarily by one additional work day in the quarter, a full quarter's impact of the company's March 1st merit increases, higher revenue-based incentives, and the offset to market value adjustments on employee benefit assets recorded in non-interest income. Equipment and software expense increased 5 percent attributable primarily to the timing of projects and the related depreciation expense. Professional, legal and regulatory expenses increased 22 percent due primarily to the timing of third-party engagements and changes to legal expenses.
The company's second quarter efficiency ratio was 56.0 percent and the effective tax rate was 20.3 percent.
Loans and Leases |
|||||||||||||||||||||||
|
|
Average Balances |
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
($ amounts in millions) |
|
|
2Q25 |
|
|
1Q25 |
|
|
2Q24 |
|
2Q25 vs. 1Q25 |
|
2Q25 vs. 2Q24 |
||||||||||
Commercial and industrial |
|
$ |
49,033 |
|
$ |
49,209 |
|
$ |
50,046 |
|
$ |
(176 |
) |
|
(0.4 |
)% |
|
$ |
(1,013 |
) |
|
(2.0 |
)% |
Commercial real estate—owner-occupied |
|
|
5,170 |
|
|
5,180 |
|
|
5,115 |
|
|
(10 |
) |
|
(0.2 |
)% |
|
|
55 |
|
|
1.1 |
% |
Investor real estate |
|
|
9,009 |
|
|
8,751 |
|
|
8,839 |
|
|
258 |
|
|
2.9 |
% |
|
|
170 |
|
|
1.9 |
% |
Business Lending |
|
|
63,212 |
|
|
63,140 |
|
|
64,000 |
|
|
72 |
|
|
0.1 |
% |
|
|
(788 |
) |
|
(1.2 |
)% |
Residential first mortgage |
|
|
19,992 |
|
|
20,037 |
|
|
20,191 |
|
|
(45 |
) |
|
(0.2 |
)% |
|
|
(199 |
) |
|
(1.0 |
)% |
Home equity |
|
|
5,525 |
|
|
5,509 |
|
|
5,557 |
|
|
16 |
|
|
0.3 |
% |
|
|
(32 |
) |
|
(0.6 |
)% |
Consumer credit card |
|
|
1,397 |
|
|
1,394 |
|
|
1,331 |
|
|
3 |
|
|
0.2 |
% |
|
|
66 |
|
|
5.0 |
% |
Other consumer* |
|
|
5,951 |
|
|
6,042 |
|
|
6,202 |
|
|
(91 |
) |
|
(1.5 |
)% |
|
|
(251 |
) |
|
(4.0 |
)% |
Consumer Lending |
|
|
32,865 |
|
|
32,982 |
|
|
33,281 |
|
|
(117 |
) |
|
(0.4 |
)% |
|
|
(416 |
) |
|
(1.2 |
)% |
Total Loans |
|
$ |
96,077 |
|
$ |
96,122 |
|
$ |
97,281 |
|
$ |
(45 |
) |
|
— |
% |
|
$ |
(1,204 |
) |
|
(1.2 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending Balances |
|||||||||||||||||||||
|
|
|
|
|
|
|
|
6/30/2025 |
|
6/30/2025 |
|||||||||||||
($ amounts in millions) |
|
6/30/2025 |
|
3/31/2025 |
|
6/30/2024 |
|
vs. 3/31/2025 |
|
vs. 6/30/2024 |
|||||||||||||
Commercial and industrial |
|
$ |
49,586 |
|
$ |
48,879 |
|
$ |
50,222 |
|
$ |
707 |
|
|
1.4 |
% |
|
$ |
(636 |
) |
|
(1.3 |
)% |
Commercial real estate—owner-occupied |
|
|
5,165 |
|
|
5,165 |
|
|
5,151 |
|
|
— |
|
|
— |
% |
|
|
14 |
|
|
0.3 |
% |
Investor real estate |
|
|
9,098 |
|
|
8,833 |
|
|
8,837 |
|
|
265 |
|
|
3.0 |
% |
|
|
261 |
|
|
3.0 |
% |
Business Lending |
|
|
63,849 |
|
|
62,877 |
|
|
64,210 |
|
|
972 |
|
|
1.5 |
% |
|
|
(361 |
) |
|
(0.6 |
)% |
Residential first mortgage |
|
|
20,020 |
|
|
20,000 |
|
|
20,206 |
|
|
20 |
|
|
0.1 |
% |
|
|
(186 |
) |
|
(0.9 |
)% |
Home equity |
|
|
5,536 |
|
|
5,501 |
|
|
5,552 |
|
|
35 |
|
|
0.6 |
% |
|
|
(16 |
) |
|
(0.3 |
)% |
Consumer credit card |
|
|
1,415 |
|
|
1,384 |
|
|
1,349 |
|
|
31 |
|
|
2.2 |
% |
|
|
66 |
|
|
4.9 |
% |
Other consumer* |
|
|
5,903 |
|
|
5,971 |
|
|
6,191 |
|
|
(68 |
) |
|
(1.1 |
)% |
|
|
(288 |
) |
|
(4.7 |
)% |
Consumer Lending |
|
|
32,874 |
|
|
32,856 |
|
|
33,298 |
|
|
18 |
|
|
0.1 |
% |
|
|
(424 |
) |
|
(1.3 |
)% |
Total Loans |
|
$ |
96,723 |
|
$ |
95,733 |
|
$ |
97,508 |
|
$ |
990 |
|
|
1.0 |
% |
|
$ |
(785 |
) |
|
(0.8 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
NM - Not meaningful. |
|||||||||||||||||||||||
* Other consumer loans includes Regions' Home Improvement Financing portfolio. |
Average loans and leases remained stable compared to the prior quarter, while total ending loans increased 1 percent. Average business loans remained stable during the quarter, while average consumer loans decreased slightly. Growth in ending loans was attributable primarily to commercial and industrial loans within structured products and manufacturing.
Deposits |
|||||||||||||||||||||||
|
|
Average Balances |
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
($ amounts in millions) |
|
2Q25 |
|
1Q25 |
|
2Q24 |
|
2Q25 vs. 1Q25 |
|
2Q25 vs. 2Q24 |
|||||||||||||
Total interest-bearing deposits |
|
$ |
89,888 |
|
$ |
88,634 |
|
$ |
86,385 |
|
$ |
1,254 |
|
|
1.4 |
% |
|
$ |
3,503 |
|
|
4.1 |
% |
Non-interest-bearing deposits |
|
|
39,556 |
|
|
39,053 |
|
|
40,516 |
|
|
503 |
|
|
1.3 |
% |
|
|
(960 |
) |
|
(2.4 |
)% |
Total Deposits |
|
$ |
129,444 |
|
$ |
127,687 |
|
$ |
126,901 |
|
$ |
1,757 |
|
|
1.4 |
% |
|
$ |
2,543 |
|
|
2.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
($ amounts in millions) |
|
2Q25 |
|
1Q25 |
|
2Q24 |
|
2Q25 vs. 1Q25 |
|
2Q25 vs. 2Q24 |
|||||||||||||
Consumer Bank Segment |
|
$ |
79,912 |
|
$ |
78,712 |
|
$ |
79,809 |
|
$ |
1,200 |
|
|
1.5 |
% |
|
$ |
103 |
|
|
0.1 |
% |
Corporate Bank Segment |
|
|
39,234 |
|
|
38,312 |
|
|
36,669 |
|
|
922 |
|
|
2.4 |
% |
|
|
2,565 |
|
|
7.0 |
% |
Wealth Management Segment |
|
|
7,324 |
|
|
7,600 |
|
|
7,534 |
|
|
(276 |
) |
|
(3.6 |
)% |
|
|
(210 |
) |
|
(2.8 |
)% |
Other |
|
|
2,974 |
|
|
3,063 |
|
|
2,889 |
|
|
(89 |
) |
|
(2.9 |
)% |
|
|
85 |
|
|
2.9 |
% |
Total Deposits |
|
$ |
129,444 |
|
$ |
127,687 |
|
$ |
126,901 |
|
$ |
1,757 |
|
|
1.4 |
% |
|
$ |
2,543 |
|
|
2.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
End of Period Deposits |
|||||||||||||||||||||
|
|
|
|
|
|
|
|
6/30/2025 |
|
6/30/2025 |
|||||||||||||
($ amounts in millions) |
|
6/30/2025 |
|
3/31/2025 |
|
6/30/2024 |
|
vs. 3/31/2025 |
|
vs. 6/30/2024 |
|||||||||||||
Consumer Bank Segment |
|
$ |
79,953 |
|
$ |
80,627 |
|
$ |
80,126 |
|
$ |
(674 |
) |
|
(0.8 |
)% |
|
$ |
(173 |
) |
|
(0.2 |
)% |
Corporate Bank Segment |
|
|
40,101 |
|
|
39,696 |
|
|
36,529 |
|
|
405 |
|
|
1.0 |
% |
|
|
3,572 |
|
|
9.8 |
% |
Wealth Management Segment |
|
|
7,352 |
|
|
7,798 |
|
|
7,383 |
|
|
(446 |
) |
|
(5.7 |
)% |
|
|
(31 |
) |
|
(0.4 |
)% |
Other |
|
|
3,513 |
|
|
2,850 |
|
|
2,578 |
|
|
663 |
|
|
23.3 |
% |
|
|
935 |
|
|
36.3 |
% |
Total Deposits |
|
$ |
130,919 |
|
$ |
130,971 |
|
$ |
126,616 |
|
$ |
(52 |
) |
|
— |
% |
|
$ |
4,303 |
|
|
3.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
NM - Not meaningful. |
The company's deposit base continues to be a source of strength and an industry differentiator in liquidity and margin performance. Ending deposits were relatively stable during the quarter while average deposits increased 1 percent, benefiting from normal seasonal patterns and promotional activity.
Asset quality |
||||||||||||
|
|
As of and for the Quarter Ended |
||||||||||
($ amounts in millions) |
|
6/30/2025 |
|
3/31/2025 |
|
6/30/2024 |
||||||
Allowance for credit losses (ACL) at period end |
|
$ |
1,743 |
|
|
$ |
1,730 |
|
|
$ |
1,732 |
|
ACL/Loans, net |
|
|
1.80 |
% |
|
|
1.81 |
% |
|
|
1.78 |
% |
Allowance for credit losses to non-performing loans, excluding loans held for sale |
|
|
225 |
% |
|
|
205 |
% |
|
|
204 |
% |
Provision for credit losses |
|
$ |
126 |
|
|
$ |
124 |
|
|
$ |
102 |
|
Net loans charged-off |
|
$ |
113 |
|
|
$ |
123 |
|
|
$ |
101 |
|
Net loans charged-off as a % of average loans, annualized |
|
|
0.47 |
% |
|
|
0.52 |
% |
|
|
0.42 |
% |
Non-performing loans, excluding loans held for sale/Loans, net |
|
|
0.80 |
% |
|
|
0.88 |
% |
|
|
0.87 |
% |
NPAs (ex. 90+ past due)/Loans, foreclosed properties, and non-performing loans held for sale |
|
|
0.84 |
% |
|
|
0.92 |
% |
|
|
0.88 |
% |
NPAs (inc. 90+ past due)/Loans, foreclosed properties, and non-performing loans held for sale* |
|
|
1.01 |
% |
|
|
1.11 |
% |
|
|
1.06 |
% |
Total Criticized Loans—Business Services** |
|
$ |
4,608 |
|
|
$ |
4,918 |
|
|
$ |
4,863 |
|
* Excludes guaranteed residential first mortgages that are 90+ days past due and still accruing. |
||||||||||||
** Business services represents the combined total of commercial and investor real estate loans. |
Client resilience remained strong throughout the quarter, as underlying asset quality metrics exhibited signs of improvement. Net charge-offs were $113 million or an annualized 47 basis points of average loans during the quarter, representing a 5 basis point decrease from the prior quarter. Non-performing loans as a percentage of total loans decreased 8 basis points to 80 basis points, and business services criticized loans decreased 6 percent compared to the prior quarter.
The allowance for credit losses ratio decreased 1 basis point to 1.80 percent, while the allowance for credit losses as a percentage of non-performing loans increased to 225 percent. The company's allowance for credit losses increased $13 million over the prior quarter, attributable primarily to loan growth and some deterioration in the economic forecast partially offset by improvements in credit metrics.
Capital and liquidity |
||||||||||||
|
|
As of and for Quarter Ended |
||||||||||
|
|
6/30/2025 |
|
3/31/2025 |
|
6/30/2024 |
||||||
Common Equity Tier 1 ratio(2) |
|
|
10.7 |
% |
|
|
10.8 |
% |
|
|
10.4 |
% |
Tier 1 capital ratio(2) |
|
|
11.8 |
% |
|
|
12.2 |
% |
|
|
11.7 |
% |
Total shareholders' equity to total assets |
|
|
11.72 |
% |
|
|
11.59 |
% |
|
|
11.14 |
% |
Tangible common shareholders’ equity to tangible assets (non-GAAP)(1) |
|
|
7.52 |
% |
|
|
7.17 |
% |
|
|
6.55 |
% |
Common book value per share |
|
$ |
19.35 |
|
|
$ |
18.70 |
|
|
$ |
16.94 |
|
Tangible common book value per share (non-GAAP)(1)* |
|
$ |
12.91 |
|
|
$ |
12.29 |
|
|
$ |
10.61 |
|
Loans, net of unearned income, to total deposits |
|
|
73.9 |
% |
|
|
73.1 |
% |
|
|
77.0 |
% |
* Tangible common book value per share includes the impact of quarterly earnings and changes to market value adjustments within accumulated other comprehensive income, as well as continued capital returns. |
Regions maintained a solid capital position in the second quarter, with estimated capital ratios remaining well above current regulatory requirements. At quarter-end, the Common Equity Tier 1(2) and Tier 1 capital(2) ratios were estimated at 10.7 percent and 11.8 percent, respectively.
Tangible common book value per share(1) ended the quarter at $12.91, a 5 percent increase quarter-over-quarter and a 22 percent increase year-over-year.
During the second quarter, the company repurchased approximately 7 million shares of common stock for a total of $144 million through open market purchases and declared $224 million in dividends to common shareholders. Earlier this week, the Board of Directors declared a quarterly common stock dividend of $0.265 per share, representing a 6 percent increase over the second quarter and a continuation of Regions' history of strong dividend growth. Over the past 10 years, Regions has increased its common stock dividend just over 10 percent on a compound annual growth rate basis, the highest level across the company's peer group.
The company's liquidity position also remained robust with total available liquidity as of June 30, 2025, of approximately $65 billion, which includes cash held at the Federal Reserve, FHLB borrowing capacity, unencumbered securities, and capacity at the Federal Reserve's facilities such as the Discount Window or Standing Repo Facility. These sources are sufficient to cover uninsured deposits at a ratio of approximately 185 percent as of quarter-end (excluding intercompany and secured deposits).
(1) |
Non-GAAP; refer to reconciliations on pages 12, 16, 17, 18 and 19 of the financial supplement to this earnings release included as Exhibit 99.2 to the company's Current Report on Form 8-K that was furnished to the Securities and Exchange Commission on July 18, 2025. |
(2) |
Current quarter Common Equity Tier 1 and Tier 1 capital ratios are estimated. |
Conference Call
In addition to the live audio webcast at 10 a.m. ET on Jul. 18, 2025, an archived recording of the webcast will be available at the Investor Relations page at ir.regions.com following the live event.
About Regions Financial Corporation
Regions Financial Corporation (NYSE:RF), with $159 billion in assets, is a member of the S&P 500 Index and is one of the nation’s largest full-service providers of consumer and commercial banking, wealth management, and mortgage products and services. Regions serves customers across the South, Midwest and Texas, and through its subsidiary, Regions Bank, operates approximately 1,250 banking offices and more than 2,000 ATMs. Regions Bank is an Equal Housing Lender and Member FDIC. Additional information about Regions and its full line of products and services can be found at www.regions.com.
Forward-Looking Statements
This release and the accompanying earnings call may include forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. In addition, the company, through its senior management, may from time to time make forward-looking public statements concerning the matters described herein. The words “future,” “anticipates,” “assumes,” “intends,” “plans,” “seeks,” “believes,” “predicts,” “potential,” “objectives,” “estimates,” “expects,” “targets,” “projects,” “outlook,” “forecast,” “would,” “will,” “may,” “might,” “could,” “should,” “can,” and similar terms and expressions often signify forward-looking statements. Forward-looking statements are subject to the risk that the actual effects may differ, possibly materially, from what is reflected in those forward-looking statements due to factors and future developments that are uncertain, unpredictable and in many cases beyond our control. Forward-looking statements are not based on historical information, but rather are related to future operations, strategies, financial results or other developments. Forward-looking statements are based on management’s current expectations as well as certain assumptions and estimates made by, and information available to, management at the time the statements are made. Those statements are based on general assumptions and are subject to various risks, and because they also relate to the future they are likewise subject to inherent uncertainties and other factors that may cause actual results to differ materially from the views, beliefs and projections expressed in such statements. Therefore, we caution you against relying on any of these forward-looking statements. These risks, uncertainties and other factors include, but are not limited to, those described below:
The foregoing list of factors is not exhaustive. For discussion of these and other factors that may cause actual results to differ from expectations, look under the captions “Forward-Looking Statements” and “Risk Factors” in Regions’ Annual Report on Form 10-K for the year ended December 31, 2024 and in Regions’ subsequent filings with the SEC.
You should not place undue reliance on any forward-looking statements, which speak only as of the date made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible to predict all of them. We assume no obligation and do not intend to update or revise any forward-looking statements that are made from time to time, either as a result of future developments, new information or otherwise, except as may be required by law.
Use of Non-GAAP Financial Measures
Management uses pre-tax pre-provision income (non-GAAP), adjusted pre-tax pre-provision income (non-GAAP), the adjusted efficiency ratio (non-GAAP), the adjusted fee income ratio (non-GAAP), as well as adjusted net income available to common shareholders (non-GAAP) and adjusted diluted EPS (non-GAAP) to monitor performance and believes these measures provide meaningful information to investors. Non-interest expense (GAAP) is presented excluding certain adjustments to arrive at adjusted non-interest expense (non-GAAP), which is the numerator for the adjusted efficiency ratio. Non-interest income (GAAP) is presented excluding certain adjustments to arrive at adjusted non-interest income (non-GAAP), which is the numerator for the adjusted fee income ratio. Adjusted non-interest income (non-GAAP) and adjusted non-interest expense (non-GAAP) are used to determine adjusted pre-tax pre-provision income (non-GAAP). Net interest income (GAAP) on a taxable-equivalent basis and non-interest income are added together to arrive at total revenue on a taxable-equivalent basis. Adjustments are made to arrive at adjusted total revenue on a taxable-equivalent basis (non-GAAP), which is the denominator for the adjusted fee income and adjusted efficiency ratios. Net income available to common shareholders (GAAP) is presented excluding certain adjustments, net of tax, to arrive at adjusted net income available to common shareholders (non-GAAP), which is the numerator for adjusted diluted EPS (non-GAAP). Regions believes that the exclusion of these adjustments provides a meaningful basis for period-to-period comparisons, which management believes will assist investors in analyzing the operating results of the company and predicting future performance. These non-GAAP financial measures are also used by management to assess the performance of Regions’ business. It is possible that the activities related to the adjustments may recur; however, management does not consider the activities related to the adjustments to be indications of ongoing operations. Regions believes that presentation of these non-GAAP financial measures will permit investors to assess the performance of the company on the same basis as that applied by management. Tangible common book value per share is calculated by dividing tangible common shareholders' equity (non·GAAP) by tangible assets (non-GAAP). The numerator for tangible book value per share (non·GAAP), tangible common shareholders' equity (non·GAAP), is calculated by excluding intangible assets and the deferred tax liability related to intangible assets from common shareholders' equity (GAAP). The denominator for tangible book value per share (non-GAAP), tangible assets (non-GAAP), is calculated by excluding intangible assets and the deferred tax liability related to intangible assets from total assets (non-GAAP).
Tangible common shareholders’ equity ratios have become a focus of some investors and management believes they may assist investors in analyzing the capital position of the company absent the effects of intangible assets and preferred stock. Analysts and banking regulators have assessed Regions’ capital adequacy using the tangible common shareholders’ equity measure. Because tangible common shareholders’ equity is not formally defined by GAAP or prescribed in any amount by federal banking regulations it is currently considered to be a non-GAAP financial measure and other entities may calculate it differently than Regions’ disclosed calculations. Since analysts and banking regulators may assess Regions’ capital adequacy using tangible common shareholders’ equity to tangible assets, management believes that it is useful to provide investors the ability to assess Regions’ capital adequacy on this same basis.
Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied and are not audited. Although these non-GAAP financial measures are frequently used by stakeholders in the evaluation of a company, they have limitations as analytical tools, and should not be considered in isolation, or as a substitute for analyses of results as reported under GAAP. In particular, a measure of earnings that excludes selected items does not represent the amount that effectively accrues directly to stockholders. Additionally, our non-GAAP financial measures may not be comparable to similar non-GAAP financial measures used by other companies and there is no certainty that we will not incur expenses in the future that are similar to those excluded in the calculations of non-GAAP financial measures presented herein.
Management and the Board of Directors utilize non-GAAP measures as follows:
See the company's Financial Supplement, included as Exhibit 99.2 to the company's Current Report on Form 8-K furnished to the Securities and Exchange Commission on July 18, 2025, for reconciliations of and additional information regarding the company's non-GAAP financial measures.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250718177868/en/
NYSE:RF (7/24/2025, 1:25:07 PM)
26.545
+0.18 (+0.66%)
Find more stocks in the Stock Screener