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Regions Financial 8-K Report, Regulation FD Disclosure (Nov 7, 2024)

Reports
Regulation FD·Exhibits & Filings
Filing Date
Filed November 7, 2024
Period End
November 7, 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 November 7, 2024. Cited figures are marked; the original filing is the authoritative source.

Regions Financial Corporation's Form 8-K filed November 7, 2024 furnishes, under Item 7.01 (Regulation FD Disclosure), an investor presentation (Exhibit 99.1) that executives will use at institutional investor meetings during November and December 2024.

The information is furnished rather than filed for purposes of Section 18 of the Exchange Act. The presentation is an investor information deck covering the company's profile, asset/liability management, fees and expenses, loans and deposits, capital and liquidity, credit, and near-term expectations. The presentation reports third-quarter 2024 results: net income available to common shareholders of $446 milliona, diluted EPS of $0.49, reported pre-tax pre-provision income of $721 million (adjusted $799 million), a reported efficiency ratio of 59.3% (adjusted 56.9%), and net charge-offs of 0.48% of average loans.

As of September 30, 2024, total assets were $157 billionb, with Common Equity Tier 1 of 10.6% and an adjusted CET1 inclusive of AOCI of 9.1%. The company also disclosed that it sold $1.3 billion of securities at a $75 million pre-tax loss in 3Q24 and reclassified $2.5 billion of AFS securities into HTM.

For the full year 2024, management expects net interest income of about $4.8 billionc (at the upper end of the original range), adjusted non-interest income of $2.45 to $2.5 billion, adjusted non-interest expense of about $4.25 billion, and net charge-offs of 40 to 50 basis points, toward the upper end. Management also expects the 2024 net interest margin to be in the low 3.50% range, and the presentation notes that the company increased its dividend payout target to 40% to 50% of earnings.

02—Key points

Key Highlights

  1. Q3 2024 net income available to common shareholders of $446 million; diluted EPS of $0.49, including an $0.08 EPS impact from pre-tax adjusted items
  2. Reported pre-tax pre-provision income of $721 million, or $799 million adjusted; reported efficiency ratio of 59.3% versus 56.9% adjusted
  3. Net interest income of $1,218 million in Q3 2024, with NIM up 3 bps to 3.54%; 2024 NII expected at about $4.8 billion, the upper end of the original range
  4. Sold $1.3 billion of AFS securities at a $75 million pre-tax loss and reinvested proceeds at higher yields; reclassified $2.5 billion of AFS securities into HTM
  5. Full-year 2024 guidance: adjusted non-interest income of $2.45 to $2.5 billion, adjusted non-interest expense of about $4.25 billion, and net charge-offs of 40 to 50 bps toward the upper end
  6. Capital: CET1 of 10.6%; CET1 adjusted to include AOCI of 9.1% at 9/30/2024, with an operating range of 9.25% to 9.75% targeted in one to two quarters if rates are stable; tangible common book value per share of $12.26
  7. Increased dividend payout target to 40% to 50% of earnings; declared Q3 common dividends of $229 million and executed $101 million in share repurchases

03—Questions

Frequently Asked Questions

  1. Why is this 8-K being filed?

    Regions is furnishing its investor presentation (Exhibit 99.1) under Item 7.01 because executives will present it to institutional investors at various meetings in November and December 2024. The materials are also available on the company's website, and the information is furnished rather than filed under Section 18 of the Exchange Act.

  2. How did Regions perform in the third quarter of 2024?

    The presentation reports net income available to common shareholders of $446 million and diluted EPS of $0.49. Reported pre-tax pre-provision income was $721 million, or $799 million adjusted. Net charge-offs were 0.48% of average loans, and the reported efficiency ratio was 59.3%.

  3. What did the company say about its securities portfolio and the 3Q24 loss?

    Regions sold about $1.3 billion of AFS securities, realizing a $75 million pre-tax loss, and reinvested the proceeds at higher market yields. It also transferred $2.5 billion of AFS securities into HTM to reduce capital volatility, locking in about -$435 million of pre-tax AOCI.

  4. What are the company's full-year 2024 expectations?

    Management expects 2024 net interest income of about $4.8 billion at the upper end of the original range, adjusted non-interest income of $2.45 to $2.5 billion, and adjusted non-interest expense of about $4.25 billion. Net charge-offs are expected at 40 to 50 bps, toward the upper end, and the NIM is expected to be in the low 3.50% range.

  5. How is the company managing its capital position?

    Regions reported a CET1 ratio of 10.6% and an adjusted CET1 ratio inclusive of AOCI of 9.1% as of September 30, 2024. Management expects to reach its 9.25% to 9.75% operating range in one to two quarters if rates are stable. The company also raised its dividend payout target to 40% to 50% of earnings and executed $101 million in share repurchases in Q3.

04—Continue

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