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Regions Financial 8-K Report, Regulation FD Disclosure (Feb 6, 2024)

Reports
Regulation FD·Exhibits & Filings
Filing Date
Filed February 6, 2024
Period End
February 6, 2024
In the record · 2016–202610-K1210-Q328-K207

RF filed 12 annual reports (10-K), 32 quarterly reports (10-Q) and 207 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Aug ’18Aug ’18
  2. Leadership change8-K · Jun ’22Jun ’22
  3. Leadership change8-K · Aug ’26Aug ’26

01—Abstract

Summary

Summary of the 8-K filed February 6, 2024. Cited figures are marked; the original filing is the authoritative source.

Regions Financial Corporation filed this Form 8-K under Item 7.01 (Regulation FD Disclosure) to furnish presentation materials that executives will use with institutional investors at various meetings and events during February and March 2024.

The materials, attached as Exhibit 99.1, are furnished rather than filed for purposes of Section 18 of the Exchange Act. The investor presentation reports fourth-quarter 2023 results and full-year 2023 performance. Full-year 2023 reported net income available to common shareholders was $2.0 billiona and diluted EPS was $2.11 on an adjusted basis, with record full-year pre-tax pre-provision income of $3.2 billion and a top-ranked ROATCE of 21.9% among peers (15.9% excluding AOCI).

Fourth-quarter reported diluted EPS was $0.39b, with the reported efficiency ratio at 65.0% and adjusted at 56.9%. The company cited a $119 million FDIC special assessment and $28 million in severance costs as items affecting fourth-quarter results. For 2024, management expects net interest income of $4.7 to $4.8 billion, adjusted non-interest income of $2.3 to $2.4 billion, adjusted non-interest expense of about $4.1 billion, and net charge-offs of 40 to 50 basis points of average loans.

The Common Equity Tier 1 ratio was 10.3%c at year-end 2023, and management expects to manage it around 10% in the near term. The presentation also notes a planned 1Q24 net interest income decline of 3% to 5% from 4Q23.

02—Key points

Key Highlights

  1. Full-year 2023 reported net income available to common shareholders of $2.0 billion and adjusted diluted EPS of $2.11; record full-year pre-tax pre-provision income of $3.2 billion.
  2. Fourth-quarter 2023 reported diluted EPS of $0.39, including a $119 million FDIC special assessment and $28 million of severance-related costs.
  3. Full-year 2023 ROATCE of 21.9% (15.9% excluding AOCI), ranked first among the peer group named in the presentation.
  4. 2024 guidance: net interest income of $4.7 to $4.8 billion, net interest margin of about 3.50%, adjusted non-interest income of $2.3 to $2.4 billion, and adjusted non-interest expense of about $4.1 billion.
  5. Net charge-offs expected at 40 to 50 basis points of average loans in 2024; fourth-quarter 2023 net charge-offs were 0.54% reported and 0.39% adjusted.
  6. CET1 ratio of 10.3% at December 31, 2023, with tangible common book value per share of $10.77, up 18% from the prior quarter.
  7. Interest rate positioning described as mostly neutral, with hedges added in 2023 and 1Q24 to reduce net interest income sensitivity to rate changes.

03—Questions

Frequently Asked Questions

  1. Why did Regions file this 8-K?

    The filing furnishes the investor presentation materials that Regions executives will use at institutional investor meetings and events in February and March 2024. The information is furnished under Item 7.01 and is not deemed filed for Exchange Act Section 18 purposes.

  2. What is Regions' 2024 net interest income outlook?

    Management expects 2024 net interest income of $4.7 to $4.8 billion and a net interest margin of about 3.50%. It expects net interest income to decline 3% to 5% in 1Q24 compared with 4Q23, stabilize over the first half, and grow in the second half.

  3. What drove fourth-quarter 2023 results?

    Reported fourth-quarter diluted EPS was $0.39, with net interest income down 4.6% from the prior quarter. Non-interest expense included a $119 million FDIC special assessment and $28 million of severance costs, and the provision for credit losses was $155 million.

  4. How is Regions positioning its credit and capital?

    Fourth-quarter net charge-offs were 0.54% of average loans, or 0.39% adjusted. The allowance for credit losses was $1.7 billion, or 1.73% of loans. The CET1 ratio was 10.3%, and management plans to manage it around 10% in the near term.

04—Continue

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