$1.8 billion in total revenue reflects 2
percent year-over-year growth.
Regions Financial Corp. (NYSE:RF) today reported earnings for
the first quarter ended March 31, 2025. The company reported first
quarter net income available to common shareholders of $465 million
and diluted earnings per common share of $0.51. Adjusted net income
available to common shareholders(1) was $487 million and adjusted
diluted earnings per common share(1) was $0.54. Compared to the
first quarter of 2024, reported and adjusted net income available
to common shareholders increased 36 percent and 20 percent,
respectively. The company reported $1.8 billion in total revenue
during the first quarter, including $745 million in reported
pre-tax pre-provision income(1) and $774 million in adjusted
pre-tax pre-provision income(1). First quarter reported results
were impacted primarily by $25 million of pre-tax realized
securities losses associated with an additional strategic
securities repositioning.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20250417496754/en/
"First quarter results reflect our unwavering commitment to our
longstanding priorities of soundness, profitability and growth and
our continued focus on successfully executing our strategic plan.
We believe our de-risking efforts and best-in-class hedging program
coupled with our investments in talent, technology, products and
services position us well to perform across a wide array of
economic conditions while allowing us to continue capitalizing on
opportunities," said John Turner, Chairman, President and CEO of
Regions Financial Corp.
Turner added, "We are a relationship bank, and we are proud to
serve as a source of strength and stability for our customers in
times of economic uncertainty. Evidence of this is reflected in our
first quarter deposit growth, driven in part by deepening
relationships and account growth. Regions is distinguished by a
long-term, ongoing presence in many of the nation's most stable and
vibrant markets, including the Southeast and Texas. That puts us in
a stronger position to generate sustainable performance even amid
economic uncertainty, and it gives us a steady foundation for
future growth."
SUMMARY OF FIRST QUARTER
RESULTS:
Quarter Ended
(amounts in millions, except per share
data)
3/31/2025
12/31/2024
3/31/2024
Net income
$
490
$
534
$
368
Preferred dividends
25
26
25
Net income available to common
shareholders
$
465
$
508
$
343
Adjusted net income available to common
shareholders (non-GAAP)(1)
$
487
$
538
$
406
Weighted-average diluted shares
outstanding
910
915
923
Actual shares outstanding—end of
period
899
909
918
Diluted earnings per common share
$
0.51
$
0.56
$
0.37
Adjusted diluted earnings per common share
(non-GAAP)(1)
$
0.54
$
0.59
$
0.44
Additional selected items also
impacting earnings:
Pre-tax additional selected items*:
Incremental operational losses related to
check warranty claims
$
—
$
—
$
(22
)
* Items impacting results or trends
during the applicable period, but are not considered non-GAAP
adjustments.
Non-GAAP adjusted items(1) impacting the company's earnings are
identified to assist investors in analyzing Regions' operating
results on the same basis as that applied by management and provide
a basis to predict future performance. See "Use of Non-GAAP
Financial Measures" below for more information.
Total
revenue
Quarter Ended
($ amounts in millions)
3/31/2025
12/31/2024
3/31/2024
1Q25 vs. 4Q24
1Q25 vs. 1Q24
Net interest income
$
1,194
$
1,230
$
1,184
$
(36
)
(2.9
)%
$
10
0.8
%
Taxable equivalent adjustment
12
13
13
(1
)
(7.7
)%
(1
)
(7.7
)%
Net interest income, taxable equivalent
basis
$
1,206
$
1,243
$
1,197
$
(37
)
(3.0
)%
$
9
0.8
%
Net interest margin (FTE)
3.52
%
3.55
%
3.55
%
Non-interest income:
Service charges on deposit accounts
$
161
$
155
$
148
$
6
3.9
%
$
13
8.8
%
Card and ATM fees
117
113
116
4
3.5
%
1
0.9
%
Wealth management income
129
126
119
3
2.4
%
10
8.4
%
Capital markets income
80
97
91
(17
)
(17.5
)%
(11
)
(12.1
)%
Mortgage income
40
35
41
5
14.3
%
(1
)
(2.4
)%
Commercial credit fee income
27
28
27
(1
)
(3.6
)%
—
—
%
Bank-owned life insurance
23
21
23
2
9.5
%
—
—
%
Market value adjustments on employee
benefit assets*
(3
)
(5
)
15
2
40.0
%
(18
)
(120.0
)%
Securities gains (losses), net
(25
)
(30
)
(50
)
5
16.7
%
25
50.0
%
Other miscellaneous income
41
45
33
(4
)
(8.9
)%
8
24.2
%
Non-interest income
$
590
$
585
$
563
$
5
0.9
%
$
27
4.8
%
Adjusted non-interest income
(non-GAAP)(1)
$
615
$
615
$
613
$
—
—
%
$
2
0.3
%
Total revenue
$
1,784
$
1,815
$
1,747
$
(31
)
(1.7
)%
$
37
2.1
%
Adjusted total revenue
(non-GAAP)(1)
$
1,809
$
1,845
$
1,797
$
(36
)
(2.0
)%
$
12
0.7
%
NM - Not Meaningful
* These market value adjustments relate to
assets held for employee and director benefits that are offset
within salaries and employee benefits and other non-interest
expense.
Total revenue decreased modestly on both a reported and adjusted
basis(1) compared to the fourth quarter of 2024. The benefits from
lower deposit costs, hedging, and fixed rate asset turnover
substantially offset the impacts of lower interest rates; however,
lower levels of lending activity and loan spread compression, as
well as the negative impacts from nonrecurring items and fewer
days, reduced net interest income by 3 percent. Total net interest
margin decreased 3 basis points to 3.52 percent.
Non-interest income increased modestly on a reported basis and
remained stable on an adjusted basis(1) compared to the fourth
quarter of 2024. With respect to adjusted items, the company
incurred $25 million in securities losses in the first quarter
compared to $30 million in the fourth quarter, attributable to the
execution of securities repositioning transactions. Most
non-interest income categories increased quarter-over-quarter, but
were partially offset by an 18 percent decrease in capital markets
income driven primarily by lower M&A advisory income, real
estate related income and syndication revenue.
Non-interest
expense
Quarter Ended
($ amounts in millions)
3/31/2025
12/31/2024
3/31/2024
1Q25 vs. 4Q24
1Q25 vs. 1Q24
Salaries and employee benefits
$
625
$
617
$
658
$
8
1.3
%
$
(33
)
(5.0
)%
Equipment and software expense
99
104
101
(5
)
(4.8
)%
(2
)
(2.0
)%
Net occupancy expense
70
67
74
3
4.5
%
(4
)
(5.4
)%
Outside services
40
42
39
(2
)
(4.8
)%
1
2.6
%
Marketing
30
28
27
2
7.1
%
3
11.1
%
Professional, legal and regulatory
expenses
23
20
28
3
15.0
%
(5
)
(17.9
)%
Credit/checkcard expenses
15
16
14
(1
)
(6.3
)%
1
7.1
%
FDIC insurance assessments
20
20
43
—
—
%
(23
)
(53.5
)%
Visa class B shares expense
7
6
4
1
16.7
%
3
75.0
%
Operational losses
13
16
42
(3
)
(18.8
)%
(29
)
(69.0
)%
Branch consolidation, property and
equipment charges
—
1
1
(1
)
(100.0
)%
(1
)
(100.0
)%
Other miscellaneous expenses
97
101
100
(4
)
(4.0
)%
(3
)
(3.0
)%
Total non-interest expense
$
1,039
$
1,038
$
1,131
$
1
0.1
%
$
(92
)
(8.1
)%
Total adjusted non-interest
expense(1)
$
1,035
$
1,029
$
1,097
$
6
0.6
%
$
(62
)
(5.7
)%
NM - Not Meaningful
Non-interest expense remained relatively stable on both a
reported and adjusted basis(1) compared to the fourth quarter of
2024. Salaries and benefits increased 1 percent driven primarily by
the annual reset of certain employee benefits and taxes.
The company's first quarter efficiency ratio was 57.9 percent on
a reported basis and 56.8 percent on an adjusted basis(1). The
effective tax rate was 21 percent in the first quarter.
Loans and
Leases
Average Balances
($ amounts in millions)
1Q25
4Q24
1Q24
1Q25 vs. 4Q24
1Q25 vs. 1Q24
Commercial and industrial
$
49,209
$
49,357
$
50,090
$
(148
)
(0.3
)%
$
(881
)
(1.8
)%
Commercial real estate—owner-occupied
5,180
5,212
5,131
(32
)
(0.6
)%
49
1.0
%
Investor real estate
8,751
8,656
8,833
95
1.1
%
(82
)
(0.9
)%
Business Lending
63,140
63,225
64,054
(85
)
(0.1
)%
(914
)
(1.4
)%
Residential first mortgage
20,037
20,107
20,188
(70
)
(0.3
)%
(151
)
(0.7
)%
Home equity
5,509
5,527
5,605
(18
)
(0.3
)%
(96
)
(1.7
)%
Consumer credit card
1,394
1,398
1,315
(4
)
(0.3
)%
79
6.0
%
Other consumer*
6,042
6,151
6,258
(109
)
(1.8
)%
(216
)
(3.5
)%
Consumer Lending
32,982
33,183
33,366
(201
)
(0.6
)%
(384
)
(1.2
)%
Total Loans
$
96,122
$
96,408
$
97,420
$
(286
)
(0.3
)%
$
(1,298
)
(1.3
)%
NM - Not meaningful.
* Other consumer loans includes Regions'
Home Improvement Financing portfolio.
Average loans and leases remained relatively stable compared to
the prior quarter, while total ending loans decreased modestly.
Average business loans remained stable during the quarter, while
average consumer loans decreased slightly.
Deposits
Average Balances
($ amounts in millions)
1Q25
4Q24
1Q24
1Q25 vs. 4Q24
1Q25 vs. 1Q24
Total interest-bearing deposits
$
88,634
$
87,069
$
86,200
$
1,565
1.8
%
$
2,434
2.8
%
Non-interest-bearing deposits
39,053
39,424
40,926
(371
)
(0.9
)%
(1,873
)
(4.6
)%
Total Deposits
$
127,687
$
126,493
$
127,126
$
1,194
0.9
%
$
561
0.4
%
($ amounts in millions)
1Q25
4Q24
1Q24
1Q25 vs. 4Q24
1Q25 vs. 1Q24
Consumer Bank Segment
$
78,712
$
78,476
$
79,150
$
236
0.3
%
$
(438
)
(0.6
)%
Corporate Bank Segment
38,312
37,426
37,064
886
2.4
%
1,248
3.4
%
Wealth Management Segment
7,600
7,492
7,766
108
1.4
%
(166
)
(2.1
)%
Other
3,063
3,099
3,146
(36
)
(1.2
)%
(83
)
(2.6
)%
Total Deposits
$
127,687
$
126,493
$
127,126
$
1,194
0.9
%
$
561
0.4
%
End of Period Deposits
3/31/2025
3/31/2025
($ amounts in millions)
3/31/2025
12/31/2024
3/31/2024
vs. 12/31/2024
vs. 3/31/2024
Consumer Bank Segment
$
80,627
$
78,637
$
81,129
$
1,990
2.5
%
$
(502
)
(0.6
)%
Corporate Bank Segment
39,696
38,361
37,043
1,335
3.5
%
2,653
7.2
%
Wealth Management Segment
7,798
7,736
7,792
62
0.8
%
6
0.1
%
Other
2,850
2,869
3,018
(19
)
(0.7
)%
(168
)
(5.6
)%
Total Deposits
$
130,971
$
127,603
$
128,982
$
3,368
2.6
%
$
1,989
1.5
%
The company's deposit base has continued to be a source of
strength and an industry differentiator in liquidity and margin
performance. Ending deposits increased approximately 3 percent
during the quarter while average deposits increased slightly,
consistent with normal seasonal patterns. Growth in the quarter was
driven primarily by customers building cash in advance of tax
payments, as well as cautiousness associated with the uncertain
economic environment.
Asset
quality
As of and for the Quarter
Ended
($ amounts in millions)
3/31/2025
12/31/2024
3/31/2024
Allowance for credit losses (ACL) at
period end
$1,730
$1,729
$1,731
ACL/Loans, net
1.81%
1.79%
1.79%
Allowance for credit losses to
non-performing loans, excluding loans held for sale
205%
186%
191%
Provision for credit losses
$124
$120
$152
Net loans charged-off
$123
$119
$121
Net loans charged-off as a % of average
loans, annualized
0.52%
0.49%
0.50%
Non-performing loans, excluding loans held
for sale/Loans, net
0.88%
0.96%
0.94%
NPAs (ex. 90+ past due)/Loans, foreclosed
properties, and non-performing loans held for sale
0.92%
0.97%
0.95%
NPAs (inc. 90+ past due)/Loans, foreclosed
properties, and non-performing loans held for sale*
1.11%
1.15%
1.10%
Total Criticized Loans—Business
Services**
$4,918
$4,716
$4,978
* Excludes guaranteed residential first
mortgages that are 90+ days past due and still accruing.
** Business services represents the
combined total of commercial and investor real estate
loans.
Net charge-offs were $123 million or 52 basis points of average
loans during the quarter. This represents a 3 basis point increase
from the prior quarter, reflecting expected losses primarily from
previously identified portfolios of interest already reserved for.
Underlying asset quality metrics continue to perform within the
company's expectations, and clients have remained resilient.
Non-performing loans as a percentage of total loans decreased 8
basis points to 88 basis points, and remain modestly below the
company's historical range. Business services criticized loans
increased compared to the prior quarter, driven primarily by loans
in previously identified portfolios of interest, specifically
transportation and multi-family.
The allowance for credit losses ratio increased 2 basis points
compared to the prior quarter to 1.81 percent, while the allowance
for credit losses as a percentage of nonperforming loans increased
to 205 percent. The company's allowance for credit losses remained
flat from the prior quarter, attributable to declines in specific
reserves, as well as a reduction in overall loan balances, offset
by model increases associated with current economic uncertainty as
well as incremental qualitative overlays.
Capital and
liquidity
As of and for Quarter
Ended
3/31/2025
12/31/2024
3/31/2024
Common Equity Tier 1 ratio(2)
10.8%
10.8%
10.3%
Tier 1 capital ratio(2)
12.2%
12.2%
11.6%
Total shareholders' equity to total
assets
11.59%
11.37%
11.00%
Tangible common stockholders’ equity to
tangible assets (non-GAAP)(1)
7.17%
6.86%
6.42%
Common book value per share
$18.70
$17.77
$16.76
Tangible common book value per share
(non-GAAP)(1)*
$12.29
$11.42
$10.42
Loans, net of unearned income, to total
deposits
73.1%
75.8%
75.1%
* Tangible common book value per share
includes the impact of quarterly earnings and changes to market
value adjustments within accumulated other comprehensive income, as
well as continued capital returns.
Regions maintained a solid capital position in the first
quarter, with estimated capital ratios remaining well above current
regulatory requirements. The Common Equity Tier 1(2) and Tier 1
capital(2) ratios were estimated at 10.8 percent and 12.2 percent,
respectively, at quarter-end.
Tangible common book value per share(1) ended the quarter at
$12.29, an 8 percent increase quarter-over-quarter and an 18
percent increase year-over-year.
During the first quarter, the company repurchased approximately
10.4 million shares of common stock for a total of $242 million
through open market purchases and declared $226 million in
dividends to common shareholders.
The company's liquidity position also remained robust with total
available liquidity as of March 31, 2025 of approximately $68
billion, which includes cash held at the Federal Reserve, FHLB
borrowing capacity, unencumbered securities, and capacity at the
Federal Reserve's facilities such as the Discount Window or
Standing Repo Facility. These sources are sufficient to cover
uninsured deposits at a ratio of approximately 190 percent as of
quarter-end (excluding intercompany and secured deposits).
(1)
Non-GAAP; refer to reconciliations on pages 11, 14, 15, and 16
of the financial supplement to this earnings release included as
Exhibit 99.2 to the company's Current Report on Form 8-K that was
furnished to the Securities and Exchange Commission on April 17,
2025.
(2)
Current quarter Common Equity Tier 1 and Tier 1 capital ratios
are estimated.
Conference Call In addition to the live audio webcast at
10 a.m. ET on Apr. 17, 2025, an archived recording of the webcast
will be available at the Investor Relations page of ir.regions.com
following the live event.
About Regions Financial Corporation Regions Financial
Corporation (NYSE:RF), with $160 billion in assets, is a member of
the S&P 500 Index and is one of the nation’s largest
full-service providers of consumer and commercial banking, wealth
management, and mortgage products and services. Regions serves
customers across the South, Midwest and Texas, and through its
subsidiary, Regions Bank, operates approximately 1,250 banking
offices and more than 2,000 ATMs. Regions Bank is an Equal Housing
Lender and Member FDIC. Additional information about Regions and
its full line of products and services can be found at
www.regions.com.
Forward-Looking Statements This release and the
accompanying earnings call may include forward-looking statements
as defined in the Private Securities Litigation Reform Act of 1995.
In addition, the company, through its senior management, may from
time to time make forward-looking public statements concerning the
matters described herein. The words “future,” “anticipates,”
“assumes,” “intends,” “plans,” “seeks,” “believes,” “predicts,”
“potential,” “objectives,” “estimates,” “expects,” “targets,”
“projects,” “outlook,” “forecast,” “would,” “will,” “may,” “might,”
“could,” “should,” “can,” and similar terms and expressions often
signify forward-looking statements. Forward-looking statements are
subject to the risk that the actual effects may differ, possibly
materially, from what is reflected in those forward-looking
statements due to factors and future developments that are
uncertain, unpredictable and in many cases beyond our control.
Forward-looking statements are not based on historical information,
but rather are related to future operations, strategies, financial
results or other developments. Forward-looking statements are based
on management’s current expectations as well as certain assumptions
and estimates made by, and information available to, management at
the time the statements are made. Those statements are based on
general assumptions and are subject to various risks, and because
they also relate to the future they are likewise subject to
inherent uncertainties and other factors that may cause actual
results to differ materially from the views, beliefs and
projections expressed in such statements. Therefore, we caution you
against relying on any of these forward-looking statements. These
risks, uncertainties and other factors include, but are not limited
to, those described below:
- Current and future economic and market conditions in the United
States generally or in the communities we serve (in particular the
Southeastern United States), including the effects of possible
declines in property values, increases in interest rates and
unemployment rates, inflation, financial market disruptions and
potential reductions of economic growth, which may adversely affect
our lending and other businesses and our financial results and
conditions.
- Possible changes in trade, monetary and fiscal policies of, and
other activities undertaken by, governments, agencies, central
banks and similar organizations, including tariffs, which could
have a material adverse effect on our businesses and our financial
results and conditions.
- Changes in market interest rates or capital markets could
adversely affect our revenue and expense, the value of assets (such
as our portfolio of investment securities) and obligations, as well
as the availability and cost of capital and liquidity.
- Volatility and uncertainty about the direction of interest
rates and the timing of any changes, which may lead to increased
costs for businesses and consumers and potentially contribute to
poor business and economic conditions generally.
- Possible changes in the creditworthiness of customers and the
possible impairment of the collectability of loans and leases,
including operating leases.
- Changes in the speed of loan prepayments, loan origination and
sale volumes, charge-offs, credit loss provisions or actual credit
losses where our allowance for credit losses may not be adequate to
cover our eventual losses.
- Possible acceleration of prepayments on mortgage-backed
securities due to declining interest rates, and the related
acceleration of premium amortization on those securities.
- Possible changes in consumer and business spending and saving
habits and the related effect on our ability to increase assets and
to attract deposits, which could adversely affect our net
income.
- Loss of customer checking and savings account deposits as
customers pursue other, higher-yield investments, or the need to
price interest-bearing deposits higher due to competitive forces.
Either of these activities could increase our funding costs.
- Possible downgrades in our credit ratings or outlook could,
among other negative impacts, increase the costs of funding from
capital markets.
- The loss of value of our investment portfolio could negatively
impact market perceptions of us.
- Our ability to manage fluctuations in the value of assets and
liabilities and off-balance sheet exposure so as to maintain
sufficient capital and liquidity to support our businesses.
- The effects of social media on market perceptions of us and
banks generally.
- The effects of problems encountered by other financial
institutions that adversely affect us or the banking industry
generally could require us to change certain business practices,
reduce our revenue, impose additional costs on us, or otherwise
negatively affect our businesses.
- Volatility in the financial services industry (including
failures or rumors of failures of other depository institutions),
along with actions taken by governmental agencies to address such
turmoil, could affect the ability of depository institutions,
including us, to attract and retain depositors and to borrow or
raise capital.
- Our ability to effectively compete with other traditional and
non-traditional financial services companies, including fintechs,
some of which possess greater financial resources than we do or are
subject to different regulatory standards than we are.
- Our inability to develop and gain acceptance from current and
prospective customers for new products and services and the
enhancement of existing products and services to meet customers’
needs and respond to emerging technological trends in a timely
manner could have a negative impact on our revenue.
- Our inability to keep pace with technological changes,
including those related to the offering of digital banking and
financial services, could result in losing business to
competitors.
- The development and use of AI presents risks and challenges
that may impact our business.
- Our ability to execute on our strategic and operational plans,
including our ability to fully realize the financial and
nonfinancial benefits relating to our strategic initiatives.
- The risks and uncertainties related to our acquisition or
divestiture of businesses and risks related to such acquisitions,
including that the expected synergies, cost savings and other
financial or other benefits may not be realized within expected
timeframes, or might be less than projected; and difficulties in
integrating acquired businesses.
- The success of our marketing efforts in attracting and
retaining customers.
- Our ability to achieve our expense management initiatives.
- Changes in commodity market prices and conditions could
adversely affect the cash flows of our borrowers operating in
industries that are impacted by changes in commodity prices
(including businesses indirectly impacted by commodities prices
such as businesses that transport commodities or manufacture
equipment used in the production of commodities), which could
impair the ability of those borrowers to service any loans
outstanding to them and/or reduce demand for loans in those
industries.
- The effects of geopolitical instability, including wars,
conflicts, civil unrest, and terrorist attacks and the potential
impact, directly or indirectly, on our businesses.
- Fraud, theft or other misconduct conducted by external parties,
including our customers and business partners, or by our
employees.
- Any inaccurate or incomplete information provided to us by our
customers or counterparties.
- Inability of our framework to manage risks associated with our
businesses, such as credit risk and operational risk, including
third-party vendors and other service providers, which inability
could, among other things, result in a breach of operating or
security systems as a result of a cyber-attack or similar act or
failure to deliver our services effectively.
- Our ability to identify and address operational risks
associated with the introduction of or changes to products,
services, or delivery platforms.
- Dependence on key suppliers or vendors to obtain equipment and
other supplies for our businesses on acceptable terms.
- The inability of our internal controls and procedures to
prevent, detect or mitigate any material errors or fraudulent
acts.
- Our ability to identify and address cyber-security risks such
as data security breaches, malware, ransomware, “denial of service”
attacks, “hacking” and identity theft, including account
take-overs, a failure of which could disrupt our businesses and
result in the disclosure of and/or misuse or misappropriation of
confidential or proprietary information, disruption or damage to
our systems, increased costs, losses, or adverse effects to our
reputation.
- The effects of the failure of any component of our business
infrastructure provided by a third party could disrupt our
businesses, result in the disclosure of and/or misuse of
confidential information or proprietary information, increase our
costs, negatively affect our reputation, and cause losses.
- The effects of any developments, changes or actions relating to
any litigation or regulatory proceedings brought against us or any
of our subsidiaries.
- The costs, including possibly incurring fines, penalties, or
other negative effects (including reputational harm) of any adverse
judicial, administrative, or arbitral rulings or proceedings,
regulatory enforcement actions or other legal actions to which we
or any of our subsidiaries are a party, and which may adversely
affect our results.
- Changes in laws and regulations affecting our businesses,
including legislation and regulations relating to bank products and
services, such as changes to debit card interchange fees, special
FDIC assessments, any new long-term debt requirements, as well as
changes in the enforcement and interpretation of such laws and
regulations by applicable governmental and self-regulatory
agencies, including as a result of the changes in U.S. presidential
administration, control of the U.S. Congress, and changes in
personnel at the bank regulatory agencies, which could require us
to change certain business practices, increase compliance risk,
reduce our revenue, impose additional costs on us, or otherwise
negatively affect our businesses.
- Our capital actions, including dividend payments, common stock
repurchases, or redemptions of preferred stock, must not cause us
to fall below minimum capital ratio requirements, with applicable
buffers taken into account, and must comply with other requirements
and restrictions under law or imposed by our regulators, which may
impact our ability to return capital to shareholders.
- Our ability to comply with stress testing and capital planning
requirements (as part of the CCAR process or otherwise) may
continue to require a significant investment of our managerial
resources due to the importance of such tests and
requirements.
- Our ability to comply with applicable capital and liquidity
requirements (including, among other things, the Basel III Rules),
including our ability to generate capital internally or raise
capital on favorable terms, and if we fail to meet requirements,
our financial condition and market perceptions of us could be
negatively impacted.
- Our ability to recruit and retain talented and experienced
personnel to assist in the development, management and operation of
our products and services may be affected by changes in laws and
regulations in effect from time to time.
- Our ability to receive dividends from our subsidiaries, in
particular Regions Bank, could affect our liquidity and ability to
pay dividends to shareholders.
- Fluctuations in the price of our common stock and inability to
complete stock repurchases in the time frame and/or on the terms
anticipated.
- The effects of anti-takeover laws and exclusive forum provision
in our certificate of incorporation and bylaws.
- The effect of new tax legislation and/or interpretation of
existing tax law, which may impact our earnings, capital ratios and
our ability to return capital to shareholders.
- Changes in accounting policies or procedures as may be required
by the FASB or other regulatory agencies could materially affect
our financial statements and how we report those results, and
expectations and preliminary analyses relating to how such changes
will affect our financial results could prove incorrect.
- Any impairment of our goodwill or other intangibles, any
repricing of assets or any adjustment of valuation allowances on
our deferred tax assets due to changes in tax law, adverse changes
in the economic environment declining operations of the reporting
unit or other factors.
- The effects of man-made and natural disasters, including fires,
floods, droughts, tornadoes, hurricanes and environmental damage
(especially in the Southeastern United States), which may
negatively affect our operations and/or our loan portfolios and
increase our cost of conducting business. The severity and
frequency of future earthquakes, fires, hurricanes, tornadoes,
droughts, floods and other weather-related events are difficult to
predict and may be exacerbated by global climate change.
- The impact of pandemics on our businesses, operations and
financial results and conditions. The duration and severity of any
pandemic as well as government actions or other restrictions in
connection with such events could disrupt the global economy,
adversely affect our capital and liquidity position, impair the
ability of borrowers to repay outstanding loans and increase our
allowance for credit losses, impair collateral values and result in
lost revenue or additional expenses.
- The effects of any damage to our reputation resulting from
developments related to any of the items identified above.
- Other risks identified from time to time in reports that we
file with the SEC.
The foregoing list of factors is not exhaustive. For discussion
of these and other factors that may cause actual results to differ
from expectations, look under the captions “Forward-Looking
Statements” and “Risk Factors” in Regions’ Annual Report on Form
10-K for the year ended December 31, 2024 and in Regions’
subsequent filings with the SEC.
You should not place undue reliance on any forward-looking
statements, which speak only as of the date made. Factors or events
that could cause our actual results to differ may emerge from time
to time, and it is not possible to predict all of them. We assume
no obligation and do not intend to update or revise any
forward-looking statements that are made from time to time, either
as a result of future developments, new information or otherwise,
except as may be required by law.
Use of Non-GAAP Financial Measures Management uses
pre-tax pre-provision income (non-GAAP) and adjusted pre-tax
pre-provision income (non-GAAP), the adjusted efficiency ratio
(non-GAAP), the adjusted fee income ratio (non-GAAP), as well as
adjusted net income available to common shareholders (non-GAAP) and
adjusted diluted EPS (non-GAAP) to monitor performance and believes
these measures provide meaningful information to investors.
Non-interest expense (GAAP) is presented excluding certain
adjustments to arrive at adjusted non-interest expense (non-GAAP),
which is the numerator for the adjusted efficiency ratio.
Non-interest income (GAAP) is presented excluding certain
adjustments to arrive at adjusted non-interest income (non-GAAP),
which is the numerator for the adjusted fee income ratio. Adjusted
non-interest income (non-GAAP) and adjusted non-interest expense
(non-GAAP) are used to determine adjusted pre-tax pre-provision
income (non-GAAP). Net interest income (GAAP) on a
taxable-equivalent basis and non-interest income are added together
to arrive at total revenue on a taxable-equivalent basis.
Adjustments are made to arrive at adjusted total revenue on a
taxable-equivalent basis (non-GAAP), which is the denominator for
the adjusted fee income and adjusted efficiency ratios. Net income
available to common shareholders (GAAP) is presented excluding
certain adjustments, net of tax, to arrive at adjusted net income
available to common shareholders (non-GAAP), which is the numerator
for adjusted diluted EPS (non-GAAP). Regions believes that the
exclusion of these adjustments provides a meaningful basis for
period-to-period comparisons, which management believes will assist
investors in analyzing the operating results of the company and
predicting future performance. These non-GAAP financial measures
are also used by management to assess the performance of Regions’
business. It is possible that the activities related to the
adjustments may recur; however, management does not consider the
activities related to the adjustments to be indications of ongoing
operations. Regions believes that presentation of these non-GAAP
financial measures will permit investors to assess the performance
of the company on the same basis as that applied by management.
Tangible common stockholders’ equity ratios have become a focus
of some investors and management believes they may assist investors
in analyzing the capital position of the company absent the effects
of intangible assets and preferred stock. Analysts and banking
regulators have assessed Regions’ capital adequacy using the
tangible common stockholders’ equity measure. Because tangible
common stockholders’ equity is not formally defined by GAAP or
prescribed in any amount by federal banking regulations it is
currently considered to be a non-GAAP financial measure and other
entities may calculate it differently than Regions’ disclosed
calculations. Since analysts and banking regulators may assess
Regions’ capital adequacy using tangible common stockholders’
equity to tangible assets, management believes that it is useful to
provide investors the ability to assess Regions’ capital adequacy
on this same basis.
Non-GAAP financial measures have inherent limitations, are not
required to be uniformly applied and are not audited. Although
these non-GAAP financial measures are frequently used by
stakeholders in the evaluation of a company, they have limitations
as analytical tools, and should not be considered in isolation, or
as a substitute for analyses of results as reported under GAAP. In
particular, a measure of earnings that excludes selected items does
not represent the amount that effectively accrues directly to
stockholders.
Management and the Board of Directors utilize non-GAAP measures
as follows:
- Preparation of Regions' operating budgets
- Monthly financial performance reporting
- Monthly close-out reporting of consolidated results (management
only)
- Presentation to investors of company performance
- Metrics for incentive compensation
See the company's Financial Supplement, included as Exhibit 99.2
to the company's Current Report on Form 8-K furnished to the
Securities and Exchange Commission on April 17, 2025, for
reconciliations of and additional information regarding the
company's non-GAAP financial measures.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250417496754/en/
Media: Jeremy King (205) 264-4551
Investor Relations: Dana Nolan (205) 264-7040
Regions Financial (NYSE:RF)
Historical Stock Chart
From May 2025 to Jun 2025
Regions Financial (NYSE:RF)
Historical Stock Chart
From Jun 2024 to Jun 2025
