01—Abstract
Summary
Summary of the 8-K filed January 17, 2025. Cited figures are marked; the original filing is the authoritative source.
Regions Financial Corporation reported preliminary results for the quarter and year ended December 31, 2024 in an 8-K furnished on January 17, 2025.
For the fourth quarter, net income available to common shareholders was $508 milliona and diluted earnings per common share were $0.56. For full-year 2024, net income available to common shareholders was $1.8 billion and diluted earnings per common share were $1.93, compared with $2.11 in 2023. Reported total revenue for the quarter was $1.82 billion, and reported pre-tax pre-provision income was $777 million, or $816 million on an adjusted basis.
Fourth-quarter results included a $30 millionb securities repositioning loss and $10 million in severance costs. Credit quality metrics moved modestly higher. Net charge-offs were $119 million, or 49 basis points of average loans, and non-performing loans rose 11 basis points to 96 basis points, driven mainly by previously identified portfolios of interest (office, healthcare, transportation and multifamily).
The allowance for credit losses ratio was unchanged at 1.79 percent. The Common Equity Tier 1 ratio was estimated at 10.8 percent at quarter-end, up from 10.6 percent in the prior quarter, and tangible common book value per share rose to $11.42c. Management also guided to 2025 net interest income growth of 2 to 5 percent, adjusted non-interest income growth of 2 to 4 percent, and adjusted non-interest expense growth of 1 to 3 percent.
The filing furnishes three exhibits: the earnings press release, a supplemental financial package, and a visual presentation used for a live audio webcast on January 17, 2025 at 10 a.m. ET.
02—Key points
Key Highlights
- Fourth-quarter net income available to common shareholders of $508 million and diluted EPS of $0.56, versus $0.49 in the third quarter and $0.39 a year earlier.
- Full-year 2024 net income available to common shareholders of $1.8 billion and diluted EPS of $1.93, versus $2.11 in 2023.
- Reported fourth-quarter pre-tax pre-provision income of $777 million, or $816 million adjusted; net interest margin rose 1 basis point to 3.55 percent.
- Net charge-offs of $119 million (49 basis points of average loans); non-performing loans rose to 96 basis points, and the ACL ratio held at 1.79 percent.
- Common Equity Tier 1 ratio estimated at 10.8 percent, and tangible common book value per share of $11.42, up 6 percent year over year.
- 2025 outlook: net interest income up 2 to 5 percent, adjusted non-interest income up 2 to 4 percent, adjusted non-interest expense up 1 to 3 percent, and net charge-offs of 40 to 50 basis points toward the upper end.
- Management cited record Capital Markets, Wealth Management and Treasury Management revenue for 2024.
03—Questions
Frequently Asked Questions
How did Regions perform in the fourth quarter of 2024?
Regions reported fourth-quarter net income available to common shareholders of $508 million and diluted EPS of $0.56, up from $0.49 in the third quarter and $0.39 in the fourth quarter of 2023. Reported total revenue was $1.82 billion, and adjusted non-interest expense fell 3.7 percent from the prior quarter.
What was the full-year 2024 earnings result?
Full-year 2024 net income available to common shareholders was $1.8 billion, and diluted EPS was $1.93, compared with $2.11 in 2023. Full-year net interest margin was 3.54 percent on a fully taxable-equivalent basis.
How is credit quality trending?
Net charge-offs were $119 million, or 49 basis points of average loans, slightly above the prior quarter. Non-performing loans rose to 96 basis points of total loans, driven by previously identified portfolios of interest, while the allowance for credit losses ratio held at 1.79 percent.
What did management guide for 2025?
Management expects 2025 net interest income to grow 2 to 5 percent, adjusted non-interest income to grow 2 to 4 percent, and adjusted non-interest expense to grow 1 to 3 percent. Average loans are expected to rise about 1 percent, and net charge-offs are expected at 40 to 50 basis points, toward the upper end.
What do the furnished exhibits contain?
Exhibit 99.1 is the earnings press release, Exhibit 99.2 is the supplemental financial information for the quarter and year ended December 31, 2024, and Exhibit 99.3 is the visual presentation for the January 17, 2025 webcast. The information is furnished under Items 2.02 and 7.01 and is not deemed filed for Section 18 purposes.
04—Continue