Regions Financial Stock Earnings Reports

Regions reported a strong Q3 with GAAP earnings of $548M ($0.61/share) and adjusted earnings of $561M ($0.63). Adjusted pretax pre-provision income grew 4% YoY and return on tangible common equity was ~19%. Deposit growth was top-quartile per FDIC data while maintaining the lowest deposit cost among peers; average deposits and accounts grew across consumer checking, small business and wealth. Average loans were roughly flat for the year with modest quarter growth; management noted portfolio shaping (targeted exits of higher-risk leveraged loans) reduced targeted loan balances by ~$900M YTD with another ~$300M expected to be worked through in Q4. Consumer credit remains healthy and asset quality metrics are near historic lows, though net charge-offs are expected to remain elevated in Q4 as remaining stressed exposures are resolved; full-year NCOs are guided to ~50 bps. Fee income was strong (wealth and capital markets records), adjusted non-interest income now expected to grow 4-5% for 2025. Management reiterated ongoing technology investments (cloud commercial loan system in 2026, deposit system pilots in late 2026 and full conversion in 2027) and targeted banker hires in priority markets. On margin and NII, management expects NIM to rebound to the mid-360s in Q4 and now guides full-year 2025 net interest income growth of 3-4%, supported by CD maturities, front/back-book turnover, securities repositioning and deposit cost actions. Adjusted non-interest expense is now expected to be up ~2% for 2025, and operating leverage is expected to be positive at the low end of the 150–250 bps range. CET1 was ~10.8% (estimated) and ~9.5% inclusive of AOCI; the firm executed $250M of buybacks and $235M of dividends in the quarter and plans to manage capital at current levels to preserve flexibility.