How did Regions perform in the first quarter of 2025?

Regions reported net income available to common shareholders of $465 million, or $0.51 per diluted share, compared with $343 million, or $0.37 per diluted share, in the first quarter of 2024. Adjusted net income available to common shareholders was $487 million, or $0.54 per diluted share. Reported results included $25 million of pre-tax realized securities losses from a strategic securities repositioning.

What drove the change in net interest income and margin?

Net interest income was $1.19 billion, down 2.9 percent from the fourth quarter of 2024. The filing attributes the decline to lower loan balances, loan spread compression tied to a mix shift toward higher-rated credits, and fewer days in the quarter, partly offset by lower deposit costs and hedging benefits. Net interest margin decreased 3 basis points to 3.52 percent.

How is the company's credit quality trending?

Net charge-offs were $123 million, or 52 basis points of average loans, a 3 basis point increase from the prior quarter, which management said reflects losses in previously identified portfolios that were already reserved for. Non-performing loans decreased 8 basis points to 88 basis points of total loans, and the allowance for credit losses was 1.81 percent of loans.

What is the outlook for 2025?

Management expects 2025 net interest income to grow 1 to 4 percent versus 2024, adjusted non-interest income to grow 1 to 3 percent, and adjusted non-interest expense to be flat to up about 2 percent. It expects average loans to be relatively stable, average deposits stable to modestly higher, and net charge-offs of 40 to 50 basis points, toward the upper end of that range.

How much capital did Regions return to shareholders this quarter?

During the first quarter, Regions repurchased approximately 10.4 million shares of common stock for $242 million through open market purchases and declared $226 million in common dividends. Its estimated Common Equity Tier 1 ratio was 10.8 percent at quarter-end.

RF 8-K: Earnings & Results & Regulation FD

01—Abstract

Summary

Summary of the 8-K filed April 17, 2025. Cited figures are marked; the original filing is the authoritative source.

Regions Financial Corporation reported first quarter 2025 net income available to common shareholders of $465 million^a, or $0.51 per diluted share, compared with $343 million and $0.37 per diluted share in the first quarter of 2024.

On an adjusted basis (non-GAAP), net income available to common shareholders was $487 million^b, or $0.54 per diluted share. Total revenue was $1.78 billion, and reported results were affected by $25 million of pre-tax realized securities losses tied to an additional strategic securities repositioning. Net interest margin declined 3 basis points from the prior quarter to 3.52 percent, while ending deposits rose to $130.97 billion.

Credit metrics were stable. Net charge-offs were $123 million^c, or 52 basis points of average loans, up 3 basis points from the prior quarter. The allowance for credit losses was $1.73 billion, or 1.81 percent of loans, and non-performing loans declined to 88 basis points of total loans.

Capital remained solid, with the Common Equity Tier 1 ratio estimated at 10.8 percent and the Tier 1 capital ratio at 12.2 percent. Tangible common book value per share rose to $12.29^d. The company repurchased about 10.4 million shares for $242 million and declared $226 million in common dividends.

Management's 2025 outlook calls for net interest income to grow between 1 and 4 percent versus 2024, adjusted non-interest income to grow 1 to 3 percent, adjusted non-interest expense to be flat to up roughly 2 percent, and net charge-offs of 40 to 50 basis points of average loans, toward the upper end of that range. The filing furnishes these results and the accompanying presentation under Items 2.02 and 7.01 rather than filing them for purposes of Section 18 of the Exchange Act.

02—Key points

Key Highlights

Reported net income available to common shareholders of $465 million, or $0.51 per diluted share, up from $343 million and $0.37 in the first quarter of 2024; adjusted diluted EPS was $0.54.
Total revenue of $1.78 billion, with net interest income of $1.19 billion and non-interest income of $590 million; net interest margin was 3.52 percent, down 3 basis points from the prior quarter.
Reported non-interest expense was $1.04 billion and the efficiency ratio was 57.9 percent (56.8 percent adjusted).
Ending deposits rose to $130.97 billion, up 2.6 percent from year-end 2024, driven by customers building cash ahead of tax payments and cautiousness amid economic uncertainty.
Net charge-offs were $123 million (0.52 percent of average loans); non-performing loans fell to 0.88 percent of loans, and the allowance for credit losses reached 1.81 percent of loans.
Common Equity Tier 1 ratio was an estimated 10.8 percent and Tier 1 capital ratio an estimated 12.2 percent; the company repurchased $242 million of stock and declared $226 million in common dividends.
2025 outlook: net interest income up 1 to 4 percent, adjusted non-interest income up 1 to 3 percent, adjusted non-interest expense flat to up about 2 percent, and net charge-offs of 40 to 50 basis points.

03—Questions

Frequently Asked Questions

How did Regions perform in the first quarter of 2025?
Regions reported net income available to common shareholders of $465 million, or $0.51 per diluted share, compared with $343 million, or $0.37 per diluted share, in the first quarter of 2024. Adjusted net income available to common shareholders was $487 million, or $0.54 per diluted share. Reported results included $25 million of pre-tax realized securities losses from a strategic securities repositioning.
What drove the change in net interest income and margin?
Net interest income was $1.19 billion, down 2.9 percent from the fourth quarter of 2024. The filing attributes the decline to lower loan balances, loan spread compression tied to a mix shift toward higher-rated credits, and fewer days in the quarter, partly offset by lower deposit costs and hedging benefits. Net interest margin decreased 3 basis points to 3.52 percent.
How is the company's credit quality trending?
Net charge-offs were $123 million, or 52 basis points of average loans, a 3 basis point increase from the prior quarter, which management said reflects losses in previously identified portfolios that were already reserved for. Non-performing loans decreased 8 basis points to 88 basis points of total loans, and the allowance for credit losses was 1.81 percent of loans.
What is the outlook for 2025?
Management expects 2025 net interest income to grow 1 to 4 percent versus 2024, adjusted non-interest income to grow 1 to 3 percent, and adjusted non-interest expense to be flat to up about 2 percent. It expects average loans to be relatively stable, average deposits stable to modestly higher, and net charge-offs of 40 to 50 basis points, toward the upper end of that range.
How much capital did Regions return to shareholders this quarter?
During the first quarter, Regions repurchased approximately 10.4 million shares of common stock for $242 million through open market purchases and declared $226 million in common dividends. Its estimated Common Equity Tier 1 ratio was 10.8 percent at quarter-end.

04—Continue

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