Regions Financial Stock Earnings Reports

Regions reported strong Q3 results: GAAP EPS $0.61 ($0.63 adjusted) and adjusted pretax pre-provision income of $830M, with a 19% return on tangible common equity. Deposit growth was top-quartile per recent FDIC data, driven by consumer checking, small business and wealth, while deposit costs remain the lowest among peers. Loans were modestly up on average, with corporate pipelines nearly doubled year-over-year and ~$2B increase in year-to-date loan commitments; however, loan growth was partially offset by portfolio-shaping exits (~$900M exited YTD with ~ $300M remaining) and ~$700M refinanced into the debt capital markets. Asset quality remains near historic lows, though annualized net charge-offs rose to 55 bps and management expects full-year NCOs around 50 bps with elevated fourth-quarter losses as remaining stressed credits are resolved (management says reserves cover anticipated losses). Non-interest income was strong — wealth management and capital markets (ex-CBA) hit record levels — and adjusted non-interest income is expected to grow 4–5% for 2025. NII guidance was raised: full-year 2025 net interest income expected up 3–4% with NIM targeted to rebound to mid-3.60% range in Q4. Adjusted non-interest expense guidance was modestly increased; full-year adjusted non-interest expense now expected to be up ~2%, with positive operating leverage at the lower end of the 150–250 bps range. Capital remained solid (estimated CET1 10.8%; CET1 incl. AOCI ~9.5%), and the bank executed $250M in buybacks and $235M in dividends in the quarter. Management reiterated focus on strategic investments (tech/core modernization, cloud migration, banker hiring in priority markets) and a continued preference for organic growth over M&A.