01—Abstract
Summary
Summary of the 8-K filed July 18, 2025. Cited figures are marked; the original filing is the authoritative source.
Regions Financial Corporation (NYSE: RF) reported second-quarter 2025 net income of $563 milliona, with net income available to common shareholders of $534 million and diluted earnings per common share of $0.59.
Adjusted net income available to common shareholders was $538 millionb, and adjusted diluted EPS was $0.60. Compared with the second quarter of 2024, reported and adjusted net income available to common shareholders increased 12 percent and 10 percent, respectively. Total revenue was $1.9 billion, up 10 percent year over year, and pre-tax pre-provision income was $832 million.
Net interest margin rose 13 basis points from the prior quarter to 3.65 percent, and the efficiency ratio was 56.0 percent. Credit and balance sheet metrics improved modestly. Net charge-offs were $113 millionc, or 0.47 percent of average loans, down 5 basis points from the first quarter.
Non-performing loans fell to 0.80 percent of loans, and the allowance for credit losses was $1.74 billiond, or 1.80 percent of loans. Ending loans rose 1 percent to $96.7 billion, and ending deposits were $130.9 billion. The Common Equity Tier 1 ratio was an estimated 10.7 percent, and tangible common book value per share reached $12.91, a 22 percent increase year over year.
During the quarter the company repurchased approximately 7 million shares for $144 million. The company's Board declared a quarterly common dividend of $0.265 per share, a 6 percent increase over the second quarter. The accompanying presentation projects 2025 net interest income growth of 3 to 5 percent, adjusted non-interest income growth of 2.5 to 3.5 percent, and adjusted non-interest expense growth of 1 to 2 percent, with net charge-offs expected toward the upper end of a 40 to 50 basis point range.
02—Key points
Key Highlights
- Second-quarter net income of $563 million; net income available to common shareholders of $534 million, or $0.59 per diluted share, versus $0.52 a year earlier
- Adjusted diluted EPS of $0.60; reported and adjusted net income available to common shareholders up 12 percent and 10 percent year over year
- Total revenue of $1.9 billion, up 10 percent year over year; net interest margin of 3.65 percent, up 13 basis points from the first quarter
- Non-interest income of $646 million, up 9 percent from the first quarter on a reported basis, with mortgage income up 20 percent and wealth management income at a record
- Net charge-offs of $113 million (0.47 percent of average loans); non-performing loans declined to 0.80 percent of loans; allowance for credit losses of $1.74 billion
- Common Equity Tier 1 ratio estimated at 10.7 percent; tangible common book value per share of $12.91, up 22 percent year over year
- Quarterly common dividend of $0.265 per share declared, a 6 percent increase over the second quarter; 2025 net interest income guidance of up 3 to 5 percent
03—Questions
Frequently Asked Questions
How did Regions' second-quarter 2025 earnings compare with the prior year?
Net income available to common shareholders was $534 million, up 12 percent from the second quarter of 2024, and adjusted net income available to common shareholders was $538 million, up 10 percent. Diluted EPS was $0.59 versus $0.52 a year earlier, and adjusted diluted EPS was $0.60 versus $0.53.
What is management's 2025 outlook?
The accompanying visual presentation expects 2025 net interest income to grow 3 to 5 percent versus 2024, adjusted non-interest income to grow 2.5 to 3.5 percent, and adjusted non-interest expense to grow 1 to 2 percent. Average loans are expected to be stable to up modestly, average deposits up modestly, and net charge-offs toward the upper end of 40 to 50 basis points. The effective tax rate is expected at 20 to 21 percent.
Is the common dividend changing?
The Board declared a quarterly common stock dividend of $0.265 per share, a 6 percent increase over the second quarter. The filing states the company declared $224 million in common dividends during the second quarter and that the dividend payout ratio was 42.0 percent.
How strong are Regions' capital and liquidity positions?
The Common Equity Tier 1 ratio was an estimated 10.7 percent and the Tier 1 capital ratio an estimated 11.8 percent at quarter-end. Total available liquidity was approximately $65 billion as of June 30, 2025, and liquidity sources cover uninsured deposits at a ratio of approximately 185 percent, excluding intercompany and secured deposits.
What are the trends in credit quality?
Net charge-offs were $113 million, or 0.47 percent of average loans, down 5 basis points from the first quarter. Non-performing loans fell 8 basis points to 0.80 percent of loans, and criticized business loans declined 6 percent from the prior quarter. The provision for credit losses was $126 million, $13 million above net charge-offs, which the company attributed primarily to loan growth.
04—Continue