$1.9 billion in total revenue reflects 7 percent year-over-year growth.
BIRMINGHAM, Ala.–(BUSINESS WIRE)–Regions Financial Corp. (NYSE:RF) today reported third quarter 2025 earnings of $548 million and diluted EPS of $0.61. Adjusted earnings were $561 million, an 8 percent increase year-over-year, and adjusted EPS of $0.63, up 11 percent.
|
Financial Highlights |
|
Soundness |
|||||||||||
|
|
Quarter Ended |
|
|
||||||||||
|
($ amounts in millions, except per share data) |
9/30/2025 |
|
6/30/2025 |
|
9/30/2024 |
|
|||||||
|
Earnings Summary |
|
|
|
|
|
|
|||||||
|
Net income |
$ |
569 |
|
|
$ |
563 |
|
|
$ |
490 |
|
|
|
|
Net income available to common shareholders |
|
548 |
|
|
|
534 |
|
|
|
446 |
|
|
|
|
Adj. net income avail. to common shareholders(1) |
|
561 |
|
|
|
538 |
|
|
|
520 |
|
|
|
|
Diluted earnings per common share |
|
0.61 |
|
|
|
0.59 |
|
|
|
0.49 |
|
|
|
|
Adj. diluted earnings per common share(1) |
|
0.63 |
|
|
|
0.60 |
|
|
|
0.57 |
|
|
Profitability |
|
Balance Sheet Summary |
|
|
|
|
|
|
|
||||||
|
Average loans |
$ |
96,647 |
|
|
$ |
96,077 |
|
|
$ |
97,040 |
|
|
|
|
Average deposits |
|
129,575 |
|
|
|
129,444 |
|
|
|
125,950 |
|
|
|
|
Credit Quality |
|
|
|
|
|
|
|||||||
|
Allowance for credit losses ratio |
|
1.78 |
% |
|
|
1.80 |
% |
|
|
1.79 |
% |
|
|
|
Net charge-offs / average loans* |
|
0.55 |
|
|
|
0.47 |
|
|
|
0.48 |
|
|
|
|
Selected Ratios |
|
|
|
|
|
|
|||||||
|
Return on average assets* |
|
1.42 |
% |
|
|
1.43 |
% |
|
|
1.26 |
% |
|
Growth |
|
Return on average common equity* |
|
12.56 |
|
|
|
12.72 |
|
|
|
10.88 |
|
|
|
|
Return on avg. tangible common equity*(1) |
|
18.81 |
|
|
|
19.34 |
|
|
|
16.87 |
|
|
|
|
Adj. return on avg. tangible common equity*(1) |
|
19.24 |
|
|
|
19.48 |
|
|
|
19.68 |
|
|
|
|
Net interest margin (FTE)* |
|
3.59 |
|
|
|
3.65 |
|
|
|
3.54 |
|
|
|
|
Efficiency ratio |
|
57.2 |
|
|
|
56.0 |
|
|
|
59.3 |
|
|
|
|
Adjusted efficiency ratio(1) |
|
56.9 |
|
|
|
56.0 |
|
|
|
56.9 |
|
|
|
|
Common equity Tier 1 ratio |
|
10.8 |
|
|
|
10.8 |
|
|
|
10.6 |
|
|
|
|
Adj. common equity Tier 1 ratio(1) |
|
9.5 |
|
|
|
9.3 |
|
|
|
9.1 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
*Annualized (1) Non-GAAP; refer to reconciliations in 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 SEC on Oct. 17, 2025. |
|
|
|||||||||||
|
John Turner, Chairman, President and CEO of Regions Financial Corp. |
|
“Our third quarter results highlight the strength of our franchise and the impact of disciplined execution across our businesses. We grew average deposits, expanded client relationships, and delivered another record quarter in Wealth Management and Capital Markets, while Treasury Management remains strong. The Regions brand remains a steady, growing presence across dynamic markets in the Southeast, Texas and the Midwest, backed by experienced teams, investments in technology, and a long-standing commitment to our communities. These strengths position us to compete and win, with momentum building into 2026 as we continue delivering long-term value for our shareholders.” |
|
Total revenue |
||||||||||||||||||||||||||
|
|
|
Quarter Ended |
||||||||||||||||||||||||
|
($ amounts in millions) |
|
9/30/2025 |
|
6/30/2025 |
|
9/30/2024 |
|
3Q25 vs. 2Q25 |
|
3Q25 vs. 3Q24 |
||||||||||||||||
|
Net interest income |
|
$ |
1,257 |
|
|
$ |
1,259 |
|
|
$ |
1,218 |
|
|
$ |
(2 |
) |
|
(0.2 |
)% |
|
$ |
39 |
|
|
3.2 |
% |
|
Taxable equivalent adjustment |
|
|
12 |
|
|
|
12 |
|
|
|
12 |
|
|
|
— |
|
|
— |
% |
|
|
— |
|
|
— |
% |
|
Net interest income, taxable equivalent basis |
|
$ |
1,269 |
|
|
$ |
1,271 |
|
|
$ |
1,230 |
|
|
$ |
(2 |
) |
|
(0.2 |
)% |
|
$ |
39 |
|
|
3.2 |
% |
|
Net interest margin (FTE)* |
|
|
3.59 |
% |
|
|
3.65 |
% |
|
|
3.54 |
% |
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Non-interest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Service charges on deposit accounts |
|
$ |
160 |
|
|
$ |
151 |
|
|
$ |
158 |
|
|
$ |
9 |
|
|
6.0 |
% |
|
$ |
2 |
|
|
1.3 |
% |
|
Card and ATM fees |
|
|
122 |
|
|
|
125 |
|
|
|
118 |
|
|
|
(3 |
) |
|
(2.4 |
)% |
|
|
4 |
|
|
3.4 |
% |
|
Wealth management income |
|
|
139 |
|
|
|
133 |
|
|
|
128 |
|
|
|
6 |
|
|
4.5 |
% |
|
|
11 |
|
|
8.6 |
% |
|
Capital markets income |
|
|
104 |
|
|
|
83 |
|
|
|
92 |
|
|
|
21 |
|
|
25.3 |
% |
|
|
12 |
|
|
13.0 |
% |
|
Mortgage income |
|
|
38 |
|
|
|
48 |
|
|
|
36 |
|
|
|
(10 |
) |
|
(20.8 |
)% |
|
|
2 |
|
|
5.6 |
% |
|
Commercial credit fee income |
|
|
28 |
|
|
|
29 |
|
|
|
28 |
|
|
|
(1 |
) |
|
(3.4 |
)% |
|
|
— |
|
|
— |
% |
|
Bank-owned life insurance |
|
|
25 |
|
|
|
24 |
|
|
|
28 |
|
|
|
1 |
|
|
4.2 |
% |
|
|
(3 |
) |
|
(10.7 |
)% |
|
Market value adjustments on employee benefit assets** |
|
|
12 |
|
|
|
16 |
|
|
|
13 |
|
|
|
(4 |
) |
|
(25.0 |
)% |
|
|
(1 |
) |
|
(7.7 |
)% |
|
Securities gains (losses), net |
|
|
(27 |
) |
|
|
(1 |
) |
|
|
(78 |
) |
|
|
(26 |
) |
|
NM |
|
|
|
51 |
|
|
65.4 |
% |
|
Other miscellaneous income |
|
|
58 |
|
|
|
38 |
|
|
|
49 |
|
|
|
20 |
|
|
52.6 |
% |
|
|
9 |
|
|
18.4 |
% |
|
Non-interest income |
|
$ |
659 |
|
|
$ |
646 |
|
|
$ |
572 |
|
|
$ |
13 |
|
|
2.0 |
% |
|
$ |
87 |
|
|
15.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Adjusted non-interest income (non-GAAP)(1) |
|
$ |
684 |
|
|
$ |
646 |
|
|
$ |
650 |
|
|
$ |
38 |
|
|
5.9 |
% |
|
$ |
34 |
|
|
5.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Total revenue |
|
$ |
1,916 |
|
|
$ |
1,905 |
|
|
$ |
1,790 |
|
|
$ |
11 |
|
|
0.6 |
% |
|
$ |
126 |
|
|
7.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Adjusted total revenue (non-GAAP)(1) |
|
$ |
1,941 |
|
|
$ |
1,905 |
|
|
$ |
1,868 |
|
|
$ |
36 |
|
|
1.9 |
% |
|
$ |
73 |
|
|
3.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
NM – Not Meaningful |
||||||||||||||||||||||||||
|
* Annualized |
||||||||||||||||||||||||||
|
** 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 increased 1 percent on a reported basis and increased 2 percent on an adjusted basis(1) compared to the second quarter of 2025. Net interest income remained stable as the benefits of new fixed-rate asset originations and reinvestments, as well as one additional day in the quarter, were offset by nonrecurring beneficial items that occurred in the prior quarter that did not repeat. Total net interest margin was also negatively impacted by the additional day and cash balances that remained elevated during the quarter, ultimately contributing to an 6 basis point decline to 3.59 percent.
Non-interest income increased 2 percent on a reported basis and 6 percent on an adjusted basis(1) compared to the second quarter of 2025. Capital markets income excluding valuation adjustments on customer derivatives increased 22 percent, representing a new quarterly record. The linked-quarter increase was attributable to higher merger and acquisition advisory services, commercial swaps sales, loan syndications, and securities underwriting income. Service charges increased 6 percent due primarily to increased account openings, seasonally higher activity, and one additional business day in the quarter. Wealth management income increased 5 percent and represented another record quarter, driven primarily by elevated sales activity and favorable market conditions. Other miscellaneous income also increased during the quarter attributable primarily to gains from the sale of certain low income housing tax credit investments, small business investment company income and a gain on the sale of certain commercial leasing equipment. Partially offsetting these gains were reductions in mortgage income and card and ATM fees. Adjusted items during the quarter include the company’s execution of a strategic securities repositioning resulting in a $25 million loss.
|
Non-interest expense |
||||||||||||||||||||||||
|
|
|
Quarter Ended |
||||||||||||||||||||||
|
($ amounts in millions) |
|
9/30/2025 |
|
6/30/2025 |
|
9/30/2024 |
|
3Q25 vs. 2Q25 |
|
3Q25 vs. 3Q24 |
||||||||||||||
|
Salaries and employee benefits |
|
$ |
671 |
|
|
$ |
658 |
|
$ |
645 |
|
$ |
13 |
|
|
2.0 |
% |
|
$ |
26 |
|
|
4.0 |
% |
|
Equipment and software expense |
|
|
106 |
|
|
|
104 |
|
|
101 |
|
|
2 |
|
|
1.9 |
% |
|
|
5 |
|
|
5.0 |
% |
|
Net occupancy expense |
|
|
72 |
|
|
|
72 |
|
|
69 |
|
|
— |
|
|
— |
% |
|
|
3 |
|
|
4.3 |
% |
|
Outside services |
|
|
42 |
|
|
|
39 |
|
|
41 |
|
|
3 |
|
|
7.7 |
% |
|
|
1 |
|
|
2.4 |
% |
|
Marketing |
|
|
28 |
|
|
|
26 |
|
|
28 |
|
|
2 |
|
|
7.7 |
% |
|
|
— |
|
|
— |
% |
|
Professional, legal and regulatory expenses |
|
|
30 |
|
|
|
28 |
|
|
21 |
|
|
2 |
|
|
7.1 |
% |
|
|
9 |
|
|
42.9 |
% |
|
Credit/checkcard expenses |
|
|
15 |
|
|
|
16 |
|
|
14 |
|
|
(1 |
) |
|
(6.3 |
)% |
|
|
1 |
|
|
7.1 |
% |
|
FDIC insurance assessments |
|
|
15 |
|
|
|
20 |
|
|
17 |
|
|
(5 |
) |
|
(25.0 |
)% |
|
|
(2 |
) |
|
(11.8 |
)% |
|
Visa class B shares expense |
|
|
8 |
|
|
|
4 |
|
|
17 |
|
|
4 |
|
|
100.0 |
% |
|
|
(9 |
) |
|
(52.9 |
)% |
|
Operational losses |
|
|
18 |
|
|
|
13 |
|
|
19 |
|
|
5 |
|
|
38.5 |
% |
|
|
(1 |
) |
|
(5.3 |
)% |
|
Branch consolidation, property and equipment charges |
|
|
(5 |
) |
|
|
— |
|
|
— |
|
|
(5 |
) |
|
NM |
|
|
|
(5 |
) |
|
NM |
|
|
Other miscellaneous expenses |
|
|
103 |
|
|
|
93 |
|
|
97 |
|
|
10 |
|
|
10.8 |
% |
|
|
6 |
|
|
6.2 |
% |
|
Non-interest expense |
|
$ |
1,103 |
|
|
$ |
1,073 |
|
$ |
1,069 |
|
$ |
30 |
|
|
2.8 |
% |
|
$ |
34 |
|
|
3.2 |
% |
|
Adjusted non-interest expense (non-GAAP)(1) |
|
$ |
1,111 |
|
|
$ |
1,073 |
|
$ |
1,069 |
|
$ |
38 |
|
|
3.5 |
% |
|
$ |
42 |
|
|
3.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Salaries and Benefits Expense |
||||||||||||||||||||||
|
|
Quarter Ended |
|||||||||||||||||||||
|
($ amounts in millions) |
|
9/30/2025 |
|
6/30/2025 |
|
9/30/2024 |
|
3Q25 vs. 2Q25 |
|
3Q25 vs. 3Q24 |
||||||||||||
|
Salaries and employee benefits |
|
$ |
671 |
|
$ |
658 |
|
$ |
645 |
|
$ |
13 |
|
|
2.0 |
% |
|
$ |
26 |
|
4.0 |
% |
|
Less: Market value adjustments on 401(k) liabilities* |
|
|
13 |
|
|
16 |
|
|
12 |
|
|
(3 |
) |
|
(18.8 |
)% |
|
|
1 |
|
8.3 |
% |
|
Salaries and employee benefits less market value adjustments on employee benefit liabilities |
|
$ |
658 |
|
$ |
642 |
|
$ |
633 |
|
$ |
16 |
|
|
2.5 |
% |
|
$ |
25 |
|
3.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
NM – Not Meaningful |
||||||||||||||||||||||
|
* The company holds assets in order to offset the market value adjustments on 401(k) liabilities and the market value adjustments on those assets are recorded in non-interest income. |
||||||||||||||||||||||
Non-interest expense increased 3 percent on a reported basis and 4 percent on an adjusted basis(1) compared to the second quarter of 2025. As expected, salaries and benefits increased 2 percent, driven primarily by one additional work day in the quarter, increased revenue-based incentive compensation associated with elevated capital markets revenue, and further progress on growth initiative-related hires. Visa class B shares expense also increased during the quarter reflecting the company’s proportional share of Visa’s recent escrow funding announcement.
The company’s third quarter efficiency ratio was 57.2 percent on a reported basis and 56.9 percent on an adjusted basis(1), and the effective tax rate was 19.7 percent.
|
Loans |
|||||||||||||||||||||||
|
|
|
Average Balances |
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
($ amounts in millions) |
|
3Q25 |
|
2Q25 |
|
3Q24 |
|
3Q25 vs. 2Q25 |
|
3Q25 vs. 3Q24 |
|||||||||||||
|
Commercial and industrial |
|
$ |
49,588 |
|
$ |
49,033 |
|
$ |
49,847 |
|
$ |
555 |
|
|
1.1 |
% |
|
$ |
(259 |
) |
|
(0.5 |
)% |
|
Commercial real estate—owner-occupied |
|
|
5,134 |
|
|
5,170 |
|
|
5,212 |
|
|
(36 |
) |
|
(0.7 |
)% |
|
|
(78 |
) |
|
(1.5 |
)% |
|
Investor real estate |
|
|
9,138 |
|
|
9,009 |
|
|
8,759 |
|
|
129 |
|
|
1.4 |
% |
|
|
379 |
|
|
4.3 |
% |
|
Business Lending |
|
|
63,860 |
|
|
63,212 |
|
|
63,818 |
|
|
648 |
|
|
1.0 |
% |
|
|
42 |
|
|
0.1 |
% |
|
Residential first mortgage |
|
|
19,944 |
|
|
19,992 |
|
|
20,147 |
|
|
(48 |
) |
|
(0.2 |
)% |
|
|
(203 |
) |
|
(1.0 |
)% |
|
Home equity |
|
|
5,538 |
|
|
5,525 |
|
|
5,530 |
|
|
13 |
|
|
0.2 |
% |
|
|
8 |
|
|
0.1 |
% |
|
Consumer credit card |
|
|
1,420 |
|
|
1,397 |
|
|
1,359 |
|
|
23 |
|
|
1.6 |
% |
|
|
61 |
|
|
4.5 |
% |
|
Other consumer* |
|
|
5,885 |
|
|
5,951 |
|
|
6,186 |
|
|
(66 |
) |
|
(1.1 |
)% |
|
|
(301 |
) |
|
(4.9 |
)% |
|
Consumer Lending |
|
|
32,787 |
|
|
32,865 |
|
|
33,222 |
|
|
(78 |
) |
|
(0.2 |
)% |
|
|
(435 |
) |
|
(1.3 |
)% |
|
Total Loans |
|
$ |
96,647 |
|
$ |
96,077 |
|
$ |
97,040 |
|
$ |
570 |
|
|
0.6 |
% |
|
$ |
(393 |
) |
|
(0.4 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
Ending Balances |
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
9/30/2025 |
|
9/30/2025 |
|||||||||||||
|
($ amounts in millions) |
|
9/30/2025 |
|
6/30/2025 |
|
9/30/2024 |
|
vs. 6/30/2025 |
|
vs. 9/30/2024 |
|||||||||||||
|
Commercial and industrial |
|
$ |
49,234 |
|
$ |
49,586 |
|
$ |
49,565 |
|
$ |
(352 |
) |
|
(0.7 |
)% |
|
$ |
(331 |
) |
|
(0.7 |
)% |
|
Commercial real estate—owner-occupied |
|
|
5,120 |
|
|
5,165 |
|
|
5,214 |
|
|
(45 |
) |
|
(0.9 |
)% |
|
|
(94 |
) |
|
(1.8 |
)% |
|
Investor real estate |
|
|
9,070 |
|
|
9,098 |
|
|
8,812 |
|
|
(28 |
) |
|
(0.3 |
)% |
|
|
258 |
|
|
2.9 |
% |
|
Business Lending |
|
|
63,424 |
|
|
63,849 |
|
|
63,591 |
|
|
(425 |
) |
|
(0.7 |
)% |
|
|
(167 |
) |
|
(0.3 |
)% |
|
Residential first mortgage |
|
|
19,881 |
|
|
20,020 |
|
|
20,125 |
|
|
(139 |
) |
|
(0.7 |
)% |
|
|
(244 |
) |
|
(1.2 |
)% |
|
Home equity |
|
|
5,549 |
|
|
5,536 |
|
|
5,534 |
|
|
13 |
|
|
0.2 |
% |
|
|
15 |
|
|
0.3 |
% |
|
Consumer credit card |
|
|
1,437 |
|
|
1,415 |
|
|
1,372 |
|
|
22 |
|
|
1.6 |
% |
|
|
65 |
|
|
4.7 |
% |
|
Other consumer* |
|
|
5,834 |
|
|
5,903 |
|
|
6,167 |
|
|
(69 |
) |
|
(1.2 |
)% |
|
|
(333 |
) |
|
(5.4 |
)% |
|
Consumer Lending |
|
|
32,701 |
|
|
32,874 |
|
|
33,198 |
|
|
(173 |
) |
|
(0.5 |
)% |
|
|
(497 |
) |
|
(1.5 |
)% |
|
Total Loans |
|
$ |
96,125 |
|
$ |
96,723 |
|
$ |
96,789 |
|
$ |
(598 |
) |
|
(0.6 |
)% |
|
$ |
(664 |
) |
|
(0.7 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
NM – Not meaningful. |
|||||||||||||||||||||||
|
* Other consumer loans includes Regions’ Home Improvement Financing portfolio. |
|||||||||||||||||||||||
Average loans increased approximately 1 percent compared to the prior quarter, while total ending loans decreased approximately 1 percent. Average business loans grew 1 percent during the quarter, while average consumer loans decreased slightly. Growth in average business lending was attributable primarily to sequential growth in financial services, government and public sectors, commercial durable goods manufacturing, and utilities within commercial and industrial loans, along with a modest increase in commercial real estate loans.
|
Deposits |
|||||||||||||||||||||||
|
|
|
Average Balances |
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
($ amounts in millions) |
|
3Q25 |
|
2Q25 |
|
3Q24 |
|
3Q25 vs. 2Q25 |
|
3Q25 vs. 3Q24 |
|||||||||||||
|
Total interest-bearing deposits |
|
$ |
90,037 |
|
$ |
89,888 |
|
$ |
86,260 |
|
$ |
149 |
|
|
0.2 |
% |
|
$ |
3,777 |
|
|
4.4 |
% |
|
Non-interest-bearing deposits |
|
|
39,538 |
|
|
39,556 |
|
|
39,690 |
|
|
(18 |
) |
|
— |
% |
|
|
(152 |
) |
|
(0.4 |
)% |
|
Total Deposits |
|
$ |
129,575 |
|
$ |
129,444 |
|
$ |
125,950 |
|
$ |
131 |
|
|
0.1 |
% |
|
$ |
3,625 |
|
|
2.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
($ amounts in millions) |
|
3Q25 |
|
2Q25 |
|
3Q24 |
|
3Q25 vs. 2Q25 |
|
3Q25 vs. 3Q24 |
|||||||||||||
|
Consumer Bank Segment |
|
$ |
79,698 |
|
$ |
79,912 |
|
$ |
78,904 |
|
$ |
(214 |
) |
|
(0.3 |
)% |
|
$ |
794 |
|
|
1.0 |
% |
|
Corporate Bank Segment |
|
|
39,733 |
|
|
39,234 |
|
|
36,867 |
|
|
499 |
|
|
1.3 |
% |
|
|
2,866 |
|
|
7.8 |
% |
|
Wealth Management Segment |
|
|
7,262 |
|
|
7,324 |
|
|
7,374 |
|
|
(62 |
) |
|
(0.8 |
)% |
|
|
(112 |
) |
|
(1.5 |
)% |
|
Other |
|
|
2,882 |
|
|
2,974 |
|
|
2,805 |
|
|
(92 |
) |
|
(3.1 |
)% |
|
|
77 |
|
|
2.7 |
% |
|
Total Deposits |
|
$ |
129,575 |
|
$ |
129,444 |
|
$ |
125,950 |
|
$ |
131 |
|
|
0.1 |
% |
|
$ |
3,625 |
|
|
2.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
End of Period Deposits |
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
9/30/2025 |
|
9/30/2025 |
|||||||||||||
|
($ amounts in millions) |
|
9/30/2025 |
|
6/30/2025 |
|
9/30/2024 |
|
vs. 6/30/2025 |
|
vs. 9/30/2024 |
|||||||||||||
|
Consumer Bank Segment |
|
$ |
79,689 |
|
$ |
79,953 |
|
$ |
78,858 |
|
$ |
(264 |
) |
|
(0.3 |
)% |
|
$ |
831 |
|
|
1.1 |
% |
|
Corporate Bank Segment |
|
|
40,415 |
|
|
40,101 |
|
|
36,955 |
|
|
314 |
|
|
0.8 |
% |
|
|
3,460 |
|
|
9.4 |
% |
|
Wealth Management Segment |
|
|
7,654 |
|
|
7,352 |
|
|
7,520 |
|
|
302 |
|
|
4.1 |
% |
|
|
134 |
|
|
1.8 |
% |
|
Other |
|
|
2,576 |
|
|
3,513 |
|
|
3,043 |
|
|
(937 |
) |
|
(26.7 |
)% |
|
|
(467 |
) |
|
(15.3 |
)% |
|
Total Deposits |
|
$ |
130,334 |
|
$ |
130,919 |
|
$ |
126,376 |
|
$ |
(585 |
) |
|
(0.4 |
)% |
|
$ |
3,958 |
|
|
3.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
NM – Not meaningful. |
|||||||||||||||||||||||
The company believes its deposit base continues to be a source of strength and an industry differentiator in liquidity and margin performance. Ending and average deposits remained relatively stable during the quarter as average consumer deposits remained roughly flat, which is slightly ahead of typical seasonal trends, while average commercial deposits continued to exhibit strength primarily across money market and interest-bearing checking.
|
Asset quality |
||||||
|
|
|
As of and for the Quarter Ended |
||||
|
($ amounts in millions) |
|
9/30/2025 |
|
6/30/2025 |
|
9/30/2024 |
|
Allowance for credit losses (ACL) at period end |
|
$1,713 |
|
$1,743 |
|
$1,728 |
|
ACL/Loans, net |
|
1.78% |
|
1.80% |
|
1.79% |
|
Allowance for credit losses to non-performing loans, excluding loans held for sale |
|
226% |
|
225% |
|
210% |
|
Provision for credit losses |
|
$105 |
|
$126 |
|
$113 |
|
Net loans charged-off |
|
$135 |
|
$113 |
|
$117 |
|
Net loans charged-off as a % of average loans, annualized |
|
0.55% |
|
0.47% |
|
0.48% |
|
Non-performing loans, excluding loans held for sale/Loans, net |
|
0.79% |
|
0.80% |
|
0.85% |
|
NPAs (ex. 90+ past due)/Loans, foreclosed properties, and non-performing loans held for sale |
|
0.82% |
|
0.84% |
|
0.87% |
|
NPAs (inc. 90+ past due)/Loans, foreclosed properties, and non-performing loans held for sale* |
|
0.98% |
|
1.01% |
|
1.06% |
|
Total Criticized Loans—Business Services** |
|
$3,682 |
|
$4,608 |
|
$4,692 |
|
|
||||||
|
* 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. |
||||||
Overall asset quality metrics remained stable to improving during the most recent quarter. Net charge-offs were $135 million or an annualized 55 basis points of average loans during the third quarter, representing an 8 basis point increase compared to the second quarter. The majority of business services charges came from previously identified portfolios of interest which were already reserved for. Business services criticized loans improved significantly during the quarter, decreasing almost $1 billion, or 20 percent, while non-performing loans decreased 2 percent with the ratio of non-performing loans as a percentage of total loans declining 1 basis point to 79 basis points.
As a result of the significant improvement in business services criticized loans and the overall decline in non-performing loans, as well as solid progress made on resolutions within certain previously identified portfolios of interest, the company’s allowance for credit losses decreased $30 million over the prior quarter. The allowance for credit losses ratio decreased 2 basis points to 1.78 percent, while the allowance for credit losses as a percentage of non-performing loans increased to 226 percent compared to the second quarter.
|
Capital and liquidity |
||||||
|
|
|
As of and for Quarter Ended |
||||
|
|
|
9/30/2025 |
|
6/30/2025 |
|
9/30/2024 |
|
Common Equity Tier 1 ratio(2) |
|
10.8% |
|
10.8% |
|
10.6% |
|
Tier 1 capital ratio(2) |
|
11.9% |
|
11.9% |
|
12.0% |
|
Total shareholders’ equity to total assets |
|
11.91% |
|
11.72% |
|
11.86% |
|
Tangible common shareholders’ equity to tangible assets (non-GAAP)(1) |
|
7.74% |
|
7.52% |
|
7.37% |
|
Common book value per share |
|
$19.98 |
|
$19.35 |
|
$18.62 |
|
Tangible common book value per share (non-GAAP)(1) |
|
$13.49 |
|
$12.91 |
|
$12.26 |
|
Loans, net of unearned income, to total deposits |
|
73.8% |
|
73.9% |
|
76.6% |
Regions maintained a solid capital position in the third quarter with estimated capital ratios remaining well above current regulatory requirements. At quarter-end, the Common Equity Tier 1(2) and Tier 1 capital(2) ratios were estimated at 10.8 percent and 11.9 percent respectively.
Tangible common book value per share(1) ended the quarter at $13.49, a 4 percent increase quarter-over-quarter and a 10 percent increase year-over-year.
During the third quarter, the company repurchased approximately 10 million shares of common stock for a total of $251 million through open-market purchases and declared $235 million in dividends to common shareholders.
The company’s liquidity position also remained robust with total available liquidity as of Sept. 30, 2025, of approximately $69 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 181 percent as of quarter-end (excluding intercompany and secured deposits).
| (1) |
Non-GAAP; refer to reconciliations on pages 13, 17, 18, 19 and 20 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 Oct. 17, 2025. |
| (2) |
Current quarter Common Equity Tier 1 and Tier 1 capital ratios are estimated. |
Conference Call
The company will hold a live audio webcast to discuss third quarter 2025 results on Oct. 17, 2025 at 10 a.m. ET. To access this live audio webcast, visit the the Investor Relations page at ir.regions.com. An archived recording of the webcast will be available at the Investor Relations page at 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 1,850 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.
- 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.
Contacts
Investor Relations Contact: Dana Nolan (205) 264-7040 | Media Contact: Jeremy King (205) 264-4551
