01—Abstract
Summary
Summary of the 10-Q filed August 5, 2025. Cited figures are marked; the original filing is the authoritative source.
Regions Financial Corporation's Form 10-Q for the quarter ended June 30, 2025 reports second-quarter 2025 net income of $563 milliona, or $534 million available to common shareholders, equal to $0.59 per diluted share, compared with $501 million net income and $0.52 per diluted share in the second quarter of 2024.
For the first six months, net income was $1.05 billionb versus $869 million a year earlier. Net interest income rose to $1.26 billion in the quarter from $1.19 billion, the net interest margin was 3.65 percent (taxable-equivalent) versus 3.51 percent, and non-interest income increased to $646 million from $545 million, while non-interest expense rose to $1.07 billion from $1.00 billion. Credit metrics were mixed but improved in several areas.
The provision for credit losses was $126 millionc in the quarter versus $102 million a year earlier, and net charge-offs were $113 million, or 0.47 percent of average loans. Non-performing loans, excluding loans held for sale, fell to $776 million from $928 million at year-end 2024, and the allowance for credit losses totaled $1.74 billion, or 1.80 percent of loans. Total loans, net of unearned income, were flat at $96.7 billion, while total deposits grew to $130.9 billion from $127.6 billion.
On the balance sheet and capital side, total assets were $159.2 billiond and shareholders' equity was $18.7 billion at June 30, 2025. The company redeemed all Series D preferred stock for $350 million during the quarter, reclassified $2.0 billion of available-for-sale debt securities to held-to-maturity, and repurchased common stock for $386 million year to date. The CET1 ratio for Regions Financial Corporation was 10.76 percent, and the board declared a quarterly common dividend increase to $0.265 per share, payable October 1, 2025.
02—Key points
Key Highlights
- Second-quarter 2025 net income of $563 million; EPS of $0.59 diluted, up from $0.52 a year earlier
- Net interest income of $1.26 billion, up from $1.19 billion; net interest margin of 3.65 percent versus 3.51 percent
- Non-interest income of $646 million, up from $545 million, led by capital markets income ($83 million) and mortgage income ($48 million)
- Net charge-offs of $113 million, or 0.47 percent of average loans; non-performing loans fell to $776 million from $928 million at year-end 2024
- Total deposits rose to $130.9 billion from $127.6 billion, while total loans were flat at $96.7 billion
- Redeemed all $350 million of Series D preferred stock in the second quarter and repurchased $386 million of common stock year to date
- CET1 ratio of 10.76 percent for Regions Financial Corporation; board declared a quarterly dividend increase to $0.265 per share
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2025filed August 5, 2025Financial Statements
Q2 FY2025 against Q2 FY2024
| Line item | Q2 FY2025Q2 FY2024 | Change |
|---|---|---|
| Net Income | $563.00M$501.00M | +12.4% |
| EPS (Basic) | $0.59$0.52 | +13.5% |
| EPS (Diluted) | $0.59$0.52 | +13.5% |
| Shares Outstanding (Basic) | 898.00M917.00M | −2.1% |
| Shares Outstanding (Diluted) | 900.00M918.00M | −2.0% |
05—Questions
Frequently Asked Questions
How did Regions' profitability change in the second quarter of 2025?
Net income rose to $563 million from $501 million, and net income available to common shareholders rose to $534 million from $477 million. Diluted EPS was $0.59 compared with $0.52. Growth came from higher net interest income and non-interest income, partly offset by higher non-interest expense.
What drove the increase in net interest income and margin?
The filing attributes the increase to the replacement of fixed-rate loans and debt securities in a higher interest rate environment and to lower funding costs as short-term interest rates declined. Net interest margin on a taxable-equivalent basis was 3.65 percent, a 14 basis point increase from the second quarter of 2024.
How is credit quality trending?
Overall asset quality improved in the second quarter, with commercial and investor real estate criticized balances down about $310 million from the first quarter. Non-performing loans, excluding held for sale, were $776 million at June 30, 2025, down from $928 million at December 31, 2024. The provision for credit losses was $126 million, above net charge-offs of $113 million.
What did Regions do with its capital and shareholder returns?
Regions redeemed all 3,500 shares of Series D preferred stock for $350 million and repurchased common stock for $386 million in the first six months of 2025. Common dividends were $0.25 per share in each of the first two quarters, and on July 16, 2025 the board declared an increase to $0.265 per share, payable October 1, 2025. The filing states that the CET1 ratio was 10.76 percent.
Did the company change how it classifies its securities?
Yes. Regions reclassified debt securities with an amortized cost of $2.0 billion, $1.0 billion in each of the first and second quarters of 2025, from available for sale to held to maturity. The company said the transfer was intended to reduce volatility in accumulated other comprehensive income, and the transfer is non-cash and has no future net income impact because the offsetting OCI amounts are amortized into net interest income.
06—Continue