A Strong Foundation for 2025. Regions reports 2024 earnings of $1.8 billion, earnings per diluted share of $1.93
Regions Financial Corp. (NYSE:RF) reported strong financial results for 2024, with full-year net income of $1.8 billion and diluted earnings per share of $1.93. The fourth quarter delivered net income of $508 million with diluted EPS of $0.56.
The company achieved record performance across several business segments, including Capital Markets, Wealth Management, and Treasury Management services. Total revenue in Q4 2024 reached $1.8 billion, with net interest margin increasing to 3.55%. The company maintained a solid capital position with a Common Equity Tier 1 ratio of 10.8%.
Notable Q4 metrics include relatively stable average deposits at $126.5 billion and average loans at $96.4 billion. Asset quality remained within expectations, with net charge-offs at $119 million or 0.49% of average loans. The company continued its capital return to shareholders through share repurchases and dividends, while maintaining strong liquidity with approximately $62.6 billion in available funds.
Regions Financial Corp. (NYSE:RF) ha riportato risultati finanziari solidi per il 2024, con un utile netto annuo di 1,8 miliardi di dollari e utili per azione diluiti di 1,93 dollari. Nel quarto trimestre, l'utile netto è stato di 508 milioni di dollari con un EPS diluito di 0,56 dollari.
L'azienda ha ottenuto performance record in diversi segmenti di business, tra cui Mercati Capitali, Gestione Patrimoniale e servizi di Gestione del Tesoro. Nel quarto trimestre del 2024, il fatturato totale ha raggiunto 1,8 miliardi di dollari, con un margine di interesse netto aumentato al 3,55%. L'azienda ha mantenuto una solida posizione di capitale con un rapporto Common Equity Tier 1 del 10,8%.
Le metriche notevoli del Q4 includono depositi medi relativamente stabili a 126,5 miliardi di dollari e prestiti medi a 96,4 miliardi di dollari. La qualità degli attivi è rimasta entro le aspettative, con gli azzeramenti netti a 119 milioni di dollari, ovvero lo 0,49% dei prestiti medi. L'azienda ha continuato a restituire capitale agli azionisti attraverso riacquisti di azioni e dividendi, mantenendo al contempo una forte liquidità con circa 62,6 miliardi di dollari di fondi disponibili.
Regions Financial Corp. (NYSE:RF) reportó resultados financieros sólidos para 2024, con un ingreso neto anual de 1.8 mil millones de dólares y ganancias por acción diluidas de 1.93 dólares. En el cuarto trimestre, el ingreso neto fue de 508 millones de dólares con un EPS diluido de 0.56 dólares.
La compañía logró un rendimiento récord en varios segmentos de negocio, incluidos Mercados de Capital, Gestión de Patrimonio y servicios de Gestión del Tesoro. Los ingresos totales en el cuarto trimestre de 2024 alcanzaron 1.8 mil millones de dólares, con un margen de interés neto que aumentó al 3.55%. La compañía mantuvo una sólida posición de capital con un índice de Capital Común de Nivel 1 del 10.8%.
Las métricas notables del Q4 incluyen depósitos promedio relativamente estables de 126.5 mil millones de dólares y préstamos promedio de 96.4 mil millones de dólares. La calidad de los activos se mantuvo dentro de las expectativas, con cancelaciones netas de 119 millones de dólares o el 0.49% de los préstamos promedio. La compañía continuó devolviendo capital a los accionistas a través de recompras de acciones y dividendos, mientras mantenía una fuerte liquidez con aproximadamente 62.6 mil millones de dólares en fondos disponibles.
Regions Financial Corp. (NYSE:RF)는 2024년 동안 18억 달러의 순이익과 희석 주당순이익(EPS) 1.93달러를 기록하며 강력한 재무 실적을 발표했습니다. 4분기에는 5억 800만 달러의 순이익과 희석 EPS 0.56달러를 기록했습니다.
회사는 자본 시장, 자산 관리 및 재무 관리 서비스를 포함한 여러 사업 분야에서 기록적인 성과를 달성했습니다. 2024년 4분기 전체 수익은 18억 달러에 도달했으며, 순이자 마진은 3.55%로 증가했습니다. 회사는 10.8%의 기본 자본 비율을 유지하며 탄탄한 자본 위치를 확보했습니다.
4분기 주요 지표로는 평균 예금이 1,265억 달러로 비교적 안정적이었으며, 평균 대출은 964억 달러였습니다. 자산 품질은 기대치 내에서 유지되었으며, 순 차손은 1억 1,900만 달러로 평균 대출의 0.49%에 해당합니다. 회사는 주식 매입 및 배당금을 통해 주주에게 자본을 환원하는 동시에 약 626억 달러의 가용 자금을 확보하며 강력한 유동성을 유지했습니다.
Regions Financial Corp. (NYSE:RF) a annoncé des résultats financiers solides pour 2024, avec un revenu net annuel de 1,8 milliard de dollars et un bénéfice par action (BPA) dilué de 1,93 dollar. Au cours du quatrième trimestre, le revenu net s'est élevé à 508 millions de dollars avec un BPA dilué de 0,56 dollar.
La société a réalisé des performances record dans plusieurs segments d'activité, y compris les Marchés de Capitaux, la Gestion de Patrimoine et les services de Gestion de Trésorerie. Le chiffre d'affaires total du T4 2024 a atteint 1,8 milliard de dollars, avec un écart de taux d'intérêt net augmenté à 3,55%. La société a maintenu une position de capital solide avec un ratio de Capital Commun de Niveau 1 de 10,8%.
Les indicateurs notables du T4 incluent des dépôts moyens relativement stables de 126,5 milliards de dollars et des prêts moyens de 96,4 milliards de dollars. La qualité des actifs est restée conforme aux attentes, avec des pertes nettes de 119 millions de dollars, soit 0,49% des prêts moyens. La société a poursuivi son retour de capital aux actionnaires par le biais de rachats d'actions et de dividendes, tout en maintenant une forte liquidité avec environ 62,6 milliards de dollars de fonds disponibles.
Regions Financial Corp. (NYSE:RF) hat für 2024 starke Finanzergebnisse gemeldet, mit einem Nettoergebnis von 1,8 Milliarden Dollar und einem verwässerten Gewinn pro Aktie von 1,93 Dollar. Im vierten Quartal lag das Nettoergebnis bei 508 Millionen Dollar mit einem verwässerten EPS von 0,56 Dollar.
Das Unternehmen erzielte Rekordleistungen in mehreren Geschäftsbereichen, darunter Kapitalmärkte, Vermögensverwaltung und Treasury-Management-Services. Der Gesamtumsatz im Q4 2024 betrug 1,8 Milliarden Dollar, wobei die Nettozinsspanne auf 3,55 % anstieg. Das Unternehmen wies eine solide Kapitalbasis aus mit einer Common Equity Tier 1 Quote von 10,8 %.
Bemerkenswerte Kennzahlen für das 4. Quartal umfassen relativ stabile durchschnittliche Einlagen in Höhe von 126,5 Milliarden Dollar und durchschnittliche Kredite von 96,4 Milliarden Dollar. Die Qualität der Vermögenswerte blieb im Rahmen der Erwartungen, mit Nettoausfällen von 119 Millionen Dollar oder 0,49 % der durchschnittlichen Kredite. Das Unternehmen setzte seine Kapitalrückführung an die Aktionäre durch Aktienrückkäufe und Dividenden fort und hielt gleichzeitig eine starke Liquidität mit etwa 62,6 Milliarden Dollar an verfügbaren Mitteln aufrecht.
- Record revenue performance in Capital Markets, Wealth Management, and Treasury Management
- Net interest margin increased to 3.55%
- Strong capital position with 10.8% Common Equity Tier 1 ratio
- Robust liquidity position of $62.6 billion
- Full-year EPS declined from $2.11 in 2023 to $1.93 in 2024
- Non-performing loans increased 11 basis points to 0.96% of total loans
- Average loans decreased 1.9% year-over-year
- Non-interest bearing deposits declined 8.7% year-over-year
Insights
Regions Financial's Q4 2024 results demonstrate solid performance with
- Net interest margin improved to
3.55% , up 1 basis point quarter-over-quarter despite rate pressures - Capital markets income surged
102.1% year-over-year to$97 million - Strong capital position with CET1 ratio at
10.8%
However, there are some concerns: total loans decreased
The asset quality metrics reveal important risk trends. While the
Regions' market positioning remains robust in its core territories. Record performances in Capital Markets, Wealth Management and Treasury Management services indicate successful business diversification beyond traditional banking. The deposit franchise shows stability with
Strategic execution of Regions' long-term plan leads to record performance across certain businesses.
"This was a year of records at Regions, with our performance driven by a consistent focus on superior service as well as soundness, profitability, and growth. Our Capital Markets and Wealth Management businesses, as well as our Treasury Management products and services, all generated record revenue," said John Turner, Chairman, President and CEO of Regions Financial Corp.
Turner added, "We are excited about the momentum we have going into 2025 and remain focused on a solid growth plan, aided by the continued strength of the markets where we do business and leaders who inspire outstanding performance. Importantly, we have a team of 20,000 associates who consider the needs of our customers in every decision we make, taking the extra steps to turn ordinary experiences into something extraordinary. Our focus on providing best-in-class customer service is evident by our receipt of the Forbes Best Customer Service award. I'm proud to be part of the Regions team and of the way we take care of our customers and communities, and I look forward to what we will achieve together in 2025 and beyond."
SUMMARY OF FOURTH QUARTER and FULL-YEAR 2024 RESULTS:
|
|
Quarter Ended |
|
Year Ended |
||||||||||||||||
(amounts in millions, except per share data) |
|
12/31/2024 |
|
9/30/2024 |
|
12/31/2023 |
|
|
2024 |
|
|
|
2023 |
|
||||||
Net income |
|
$ |
534 |
|
|
$ |
490 |
|
|
$ |
391 |
|
|
|
1,893 |
|
|
|
2,074 |
|
Preferred dividends and other* |
|
|
26 |
|
|
|
44 |
|
|
|
24 |
|
|
|
119 |
|
|
|
98 |
|
Net income available to common shareholders |
|
$ |
508 |
|
|
$ |
446 |
|
|
$ |
367 |
|
|
$ |
1,774 |
|
|
$ |
1,976 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Weighted-average diluted shares outstanding |
|
|
915 |
|
|
|
918 |
|
|
|
931 |
|
|
|
918 |
|
|
|
938 |
|
Actual shares outstanding—end of period |
|
|
909 |
|
|
|
911 |
|
|
|
924 |
|
|
|
909 |
|
|
|
924 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Diluted earnings per common share |
|
$ |
0.56 |
|
|
$ |
0.49 |
|
|
$ |
0.39 |
|
|
$ |
1.93 |
|
|
$ |
2.11 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Selected items impacting earnings: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Pre-tax adjusted items(1): |
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjustments to non-interest expense(1) |
|
$ |
(9 |
) |
|
$ |
— |
|
|
$ |
(147 |
) |
|
$ |
(16 |
) |
|
$ |
(154 |
) |
Adjustments to non-interest income(1) |
|
|
(30 |
) |
|
|
(78 |
) |
|
|
(1 |
) |
|
|
(208 |
) |
|
|
(3 |
) |
Net provision benefit/(expense) from sale of unsecured consumer loans |
|
|
— |
|
|
|
— |
|
|
|
(8 |
) |
|
|
— |
|
|
|
(8 |
) |
Total pre-tax adjusted items(1) |
|
$ |
(39 |
) |
|
$ |
(78 |
) |
|
$ |
(156 |
) |
|
$ |
(224 |
) |
|
$ |
(165 |
) |
After-tax preferred stock redemption expense* |
|
$ |
— |
|
|
$ |
(15 |
) |
|
$ |
— |
|
|
$ |
(15 |
) |
|
$ |
— |
|
Diluted EPS impact** |
|
$ |
(0.03 |
) |
|
$ |
(0.08 |
) |
|
$ |
(0.13 |
) |
|
$ |
(0.19 |
) |
|
$ |
(0.13 |
) |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Pre-tax additional selected items***: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Incremental operational losses related to check warranty claims |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(22 |
) |
|
$ |
(135 |
) |
Visa Class B litigation escrow funding |
|
|
— |
|
|
|
14 |
|
|
|
— |
|
|
|
14 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
| * |
The third quarter 2024 amount includes |
|
| ** |
Based on income taxes at an approximate |
|
| *** | Items impacting results or trends during the 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.
Total revenue
|
|
Quarter Ended |
||||||||||||||||||||||||
($ amounts in millions) |
|
12/31/2024 |
|
9/30/2024 |
|
12/31/2023 |
|
4Q24 vs. 3Q24 |
|
4Q24 vs. 4Q23 |
||||||||||||||||
Net interest income |
|
$ |
1,230 |
|
|
$ |
1,218 |
|
|
$ |
1,231 |
|
|
$ |
12 |
|
|
1.0 |
% |
|
$ |
(1 |
) |
|
(0.1 |
)% |
Taxable equivalent adjustment |
|
|
13 |
|
|
|
12 |
|
|
|
13 |
|
|
|
1 |
|
|
8.3 |
% |
|
|
— |
|
|
— |
% |
Net interest income, taxable equivalent basis |
|
$ |
1,243 |
|
|
$ |
1,230 |
|
|
$ |
1,244 |
|
|
$ |
13 |
|
|
1.1 |
% |
|
$ |
(1 |
) |
|
(0.1 |
)% |
Net interest margin (FTE) |
|
|
3.55 |
% |
|
|
3.54 |
% |
|
|
3.60 |
% |
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Non-interest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Service charges on deposit accounts |
|
$ |
155 |
|
|
$ |
158 |
|
|
$ |
143 |
|
|
$ |
(3 |
) |
|
(1.9 |
)% |
|
$ |
12 |
|
|
8.4 |
% |
Card and ATM fees |
|
|
113 |
|
|
|
118 |
|
|
|
127 |
|
|
|
(5 |
) |
|
(4.2 |
)% |
|
|
(14 |
) |
|
(11.0 |
)% |
Wealth management income |
|
|
126 |
|
|
|
128 |
|
|
|
117 |
|
|
|
(2 |
) |
|
(1.6 |
)% |
|
|
9 |
|
|
7.7 |
% |
Capital markets income |
|
|
97 |
|
|
|
92 |
|
|
|
48 |
|
|
|
5 |
|
|
5.4 |
% |
|
|
49 |
|
|
102.1 |
% |
Mortgage income |
|
|
35 |
|
|
|
36 |
|
|
|
31 |
|
|
|
(1 |
) |
|
(2.8 |
)% |
|
|
4 |
|
|
12.9 |
% |
Commercial credit fee income |
|
|
28 |
|
|
|
28 |
|
|
|
27 |
|
|
|
— |
|
|
— |
% |
|
|
1 |
|
|
3.7 |
% |
Bank-owned life insurance |
|
|
21 |
|
|
|
28 |
|
|
|
22 |
|
|
|
(7 |
) |
|
(25.0 |
)% |
|
|
(1 |
) |
|
(4.5 |
)% |
Market value adjustments on employee benefit assets* |
|
|
(5 |
) |
|
|
13 |
|
|
|
12 |
|
|
|
(18 |
) |
|
(138.5 |
)% |
|
|
(17 |
) |
|
(141.7 |
)% |
Securities gains (losses), net** |
|
|
(30 |
) |
|
|
(78 |
) |
|
|
(2 |
) |
|
|
48 |
|
|
61.5 |
% |
|
|
(28 |
) |
|
NM |
|
Other miscellaneous income |
|
|
45 |
|
|
|
49 |
|
|
|
55 |
|
|
|
(4 |
) |
|
(8.2 |
)% |
|
|
(10 |
) |
|
(18.2 |
)% |
Non-interest income |
|
$ |
585 |
|
|
$ |
572 |
|
|
$ |
580 |
|
|
$ |
13 |
|
|
2.3 |
% |
|
$ |
5 |
|
|
0.9 |
% |
Adjusted non-interest income (non-GAAP)(1) |
|
$ |
615 |
|
|
$ |
650 |
|
|
$ |
581 |
|
|
$ |
(35 |
) |
|
(5.4 |
)% |
|
$ |
34 |
|
|
5.9 |
% |
Total revenue |
|
$ |
1,815 |
|
|
$ |
1,790 |
|
|
$ |
1,811 |
|
|
$ |
25 |
|
|
1.4 |
% |
|
$ |
4 |
|
|
0.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Adjusted total revenue (non-GAAP)(1) |
|
$ |
1,845 |
|
|
$ |
1,868 |
|
|
$ |
1,812 |
|
|
$ |
(23 |
) |
|
(1.2 |
)% |
|
$ |
33 |
|
|
1.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
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.
** The fourth and third quarters of 2024 include |
||||||||||||||||||||||||||
Total revenue increased 1 percent to approximately
Non-interest income increased 2 percent on a reported basis but decreased 5 percent on an adjusted basis(1) compared to the third quarter of 2024. With respect to adjusted items, the company incurred
Non-interest expense
|
|
Quarter Ended |
||||||||||||||||||||||
($ amounts in millions) |
|
12/31/2024 |
|
9/30/2024 |
|
12/31/2023 |
|
4Q24 vs. 3Q24 |
|
4Q24 vs. 4Q23 |
||||||||||||||
Salaries and employee benefits |
|
$ |
617 |
|
$ |
645 |
|
$ |
608 |
|
|
$ |
(28 |
) |
|
(4.3 |
)% |
|
$ |
9 |
|
|
1.5 |
% |
Equipment and software expense |
|
|
104 |
|
|
101 |
|
|
102 |
|
|
|
3 |
|
|
3.0 |
% |
|
|
2 |
|
|
2.0 |
% |
Net occupancy expense |
|
|
67 |
|
|
69 |
|
|
71 |
|
|
|
(2 |
) |
|
(2.9 |
)% |
|
|
(4 |
) |
|
(5.6 |
)% |
Outside services |
|
|
42 |
|
|
41 |
|
|
43 |
|
|
|
1 |
|
|
2.4 |
% |
|
|
(1 |
) |
|
(2.3 |
)% |
Marketing |
|
|
28 |
|
|
28 |
|
|
31 |
|
|
|
— |
|
|
— |
% |
|
|
(3 |
) |
|
(9.7 |
)% |
Professional, legal and regulatory expenses |
|
|
20 |
|
|
21 |
|
|
19 |
|
|
|
(1 |
) |
|
(4.8 |
)% |
|
|
1 |
|
|
5.3 |
% |
Credit/checkcard expenses |
|
|
16 |
|
|
14 |
|
|
15 |
|
|
|
2 |
|
|
14.3 |
% |
|
|
1 |
|
|
6.7 |
% |
FDIC insurance assessments |
|
|
20 |
|
|
17 |
|
|
147 |
|
|
|
3 |
|
|
17.6 |
% |
|
|
(127 |
) |
|
(86.4 |
)% |
Visa class B shares expense |
|
|
6 |
|
|
17 |
|
|
6 |
|
|
|
(11 |
) |
|
(64.7 |
)% |
|
|
— |
|
|
— |
% |
Early extinguishment of debt |
|
|
— |
|
|
— |
|
|
(4 |
) |
|
|
— |
|
|
NM |
|
|
|
4 |
|
|
100.0 |
% |
Operational losses |
|
|
16 |
|
|
19 |
|
|
29 |
|
|
|
(3 |
) |
|
(15.8 |
)% |
|
|
(13 |
) |
|
(44.8 |
)% |
Branch consolidation, property and equipment charges |
|
|
1 |
|
|
— |
|
|
3 |
|
|
|
1 |
|
|
NM |
|
|
|
(2 |
) |
|
(66.7 |
)% |
Other miscellaneous expenses |
|
|
101 |
|
|
97 |
|
|
115 |
|
|
|
4 |
|
|
4.1 |
% |
|
|
(14 |
) |
|
(12.2 |
)% |
Total non-interest expense |
|
$ |
1,038 |
|
$ |
1,069 |
|
$ |
1,185 |
|
|
$ |
(31 |
) |
|
(2.9 |
)% |
|
$ |
(147 |
) |
|
(12.4 |
)% |
Total adjusted non-interest expense(1) |
|
$ |
1,029 |
|
$ |
1,069 |
|
$ |
1,038 |
|
|
$ |
(40 |
) |
|
(3.7 |
)% |
|
$ |
(9 |
) |
|
(0.9 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
NM - Not Meaningful |
||||||||||||||||||||||||
Non-interest expense decreased 3 percent on a reported basis and 4 percent on a adjusted basis(1) compared to the third quarter of 2024. Fourth quarter adjusted items included
The company's fourth quarter efficiency ratio was 56.8 percent on a reported basis and 55.4 percent on an adjusted basis(1). The effective tax rate was 19 percent in the fourth quarter.
Loans and Leases
|
|
Average Balances |
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
($ amounts in millions) |
|
|
4Q24 |
|
|
3Q24 |
|
|
4Q23 |
|
4Q24 vs. 3Q24 |
|
4Q24 vs. 4Q23 |
||||||||||
Commercial and industrial |
|
$ |
49,357 |
|
$ |
49,847 |
|
$ |
50,939 |
|
$ |
(490 |
) |
|
(1.0 |
)% |
|
$ |
(1,582 |
) |
|
(3.1 |
)% |
Commercial real estate—owner-occupied |
|
|
5,212 |
|
|
5,212 |
|
|
5,136 |
|
|
— |
|
|
— |
% |
|
|
76 |
|
|
1.5 |
% |
Investor real estate |
|
|
8,656 |
|
|
8,759 |
|
|
8,772 |
|
|
(103 |
) |
|
(1.2 |
)% |
|
|
(116 |
) |
|
(1.3 |
)% |
Business Lending |
|
|
63,225 |
|
|
63,818 |
|
|
64,847 |
|
|
(593 |
) |
|
(0.9 |
)% |
|
|
(1,622 |
) |
|
(2.5 |
)% |
Residential first mortgage |
|
|
20,107 |
|
|
20,147 |
|
|
20,132 |
|
|
(40 |
) |
|
(0.2 |
)% |
|
|
(25 |
) |
|
(0.1 |
)% |
Home equity |
|
|
5,527 |
|
|
5,530 |
|
|
5,663 |
|
|
(3 |
) |
|
(0.1 |
)% |
|
|
(136 |
) |
|
(2.4 |
)% |
Consumer credit card |
|
|
1,398 |
|
|
1,359 |
|
|
1,295 |
|
|
39 |
|
|
2.9 |
% |
|
|
103 |
|
|
8.0 |
% |
Other consumer—exit portfolios |
|
|
6 |
|
|
13 |
|
|
110 |
|
|
(7 |
) |
|
(53.8 |
)% |
|
|
(104 |
) |
|
(94.5 |
)% |
Other consumer* |
|
|
6,145 |
|
|
6,173 |
|
|
6,246 |
|
|
(28 |
) |
|
(0.5 |
)% |
|
|
(101 |
) |
|
(1.6 |
)% |
Consumer Lending |
|
|
33,183 |
|
|
33,222 |
|
|
33,446 |
|
|
(39 |
) |
|
(0.1 |
)% |
|
|
(263 |
) |
|
(0.8 |
)% |
Total Loans |
|
$ |
96,408 |
|
$ |
97,040 |
|
$ |
98,293 |
|
$ |
(632 |
) |
|
(0.7 |
)% |
|
$ |
(1,885 |
) |
|
(1.9 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
NM - Not meaningful. * Other consumer loans includes Regions' Home Improvement Financing portfolio (formerly EnerBank). |
|||||||||||||||||||||||
As expected, average loans and leases remained relatively stable compared to the prior quarter. Within the business portfolio, average loans decreased modestly while ending loans remained relatively stable. Within the consumer portfolio, average and ending loans remained relatively stable as modest growth in consumer credit card lending was offset by declines in other categories.
Deposits
|
|
Average Balances |
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
($ amounts in millions) |
|
|
4Q24 |
|
|
3Q24 |
|
|
4Q23 |
|
4Q24 vs. 3Q24 |
|
4Q24 vs. 4Q23 |
||||||||||
Total interest-bearing deposits |
|
$ |
87,069 |
|
$ |
86,260 |
|
$ |
83,247 |
|
$ |
809 |
|
|
0.9 |
% |
|
$ |
3,822 |
|
|
4.6 |
% |
Non-interest-bearing deposits |
|
|
39,424 |
|
|
39,690 |
|
|
43,167 |
|
|
(266 |
) |
|
(0.7 |
)% |
|
|
(3,743 |
) |
|
(8.7 |
)% |
Total Deposits |
|
$ |
126,493 |
|
$ |
125,950 |
|
$ |
126,414 |
|
$ |
543 |
|
|
0.4 |
% |
|
$ |
79 |
|
|
0.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
($ amounts in millions) |
|
|
4Q24 |
|
|
3Q24 |
|
|
4Q23 |
|
4Q24 vs. 3Q24 |
|
4Q24 vs. 4Q23 |
||||||||||
Consumer Bank Segment |
|
$ |
78,476 |
|
$ |
78,904 |
|
$ |
79,384 |
|
$ |
(428 |
) |
|
(0.5 |
)% |
|
$ |
(908 |
) |
|
(1.1 |
)% |
Corporate Bank Segment |
|
|
37,426 |
|
|
36,867 |
|
|
36,291 |
|
|
559 |
|
|
1.5 |
% |
|
|
1,135 |
|
|
3.1 |
% |
Wealth Management Segment |
|
|
7,492 |
|
|
7,374 |
|
|
7,690 |
|
|
118 |
|
|
1.6 |
% |
|
|
(198 |
) |
|
(2.6 |
)% |
Other |
|
|
3,099 |
|
|
2,805 |
|
|
3,049 |
|
|
294 |
|
|
10.5 |
% |
|
|
50 |
|
|
1.6 |
% |
Total Deposits |
|
$ |
126,493 |
|
$ |
125,950 |
|
$ |
126,414 |
|
$ |
543 |
|
|
0.4 |
% |
|
$ |
79 |
|
|
0.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
Ending Balances as of |
|||||||||||||||||||||
|
|
|
|
|
|
|
|
12/31/2024 |
|
12/31/2024 |
|||||||||||||
($ amounts in millions) |
|
12/31/2024 |
|
9/30/2024 |
|
12/31/2023 |
|
vs. 9/30/2024 |
|
vs. 12/31/2023 |
|||||||||||||
Consumer Bank Segment |
|
$ |
78,637 |
|
$ |
78,858 |
|
$ |
80,031 |
|
$ |
(221 |
) |
|
(0.3 |
)% |
|
$ |
(1,394 |
) |
|
(1.7 |
)% |
Corporate Bank Segment |
|
|
38,361 |
|
|
36,955 |
|
|
36,883 |
|
|
1,406 |
|
|
3.8 |
% |
|
|
1,478 |
|
|
4.0 |
% |
Wealth Management Segment |
|
|
7,736 |
|
|
7,520 |
|
|
7,694 |
|
|
216 |
|
|
2.9 |
% |
|
|
42 |
|
|
0.5 |
% |
Other |
|
|
2,869 |
|
|
3,043 |
|
|
3,180 |
|
|
(174 |
) |
|
(5.7 |
)% |
|
|
(311 |
) |
|
(9.8 |
)% |
Total Deposits |
|
$ |
127,603 |
|
$ |
126,376 |
|
$ |
127,788 |
|
$ |
1,227 |
|
|
1.0 |
% |
|
$ |
(185 |
) |
|
(0.1 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
The company's deposit base continues to be a source of strength and an industry differentiator in liquidity and margin performance. Ending deposits increased approximately 1 percent while average deposits remained relatively stable, consistent with normal year-end seasonal patterns. Growth in the quarter was driven primarily by year-end tax inflows to state, county and municipal customers within the Corporate Bank Segment.
Asset quality
|
|
As of and for the Quarter Ended |
||||
($ amounts in millions) |
|
12/31/2024 |
|
9/30/2024 |
|
12/31/2023 |
Allowance for credit losses (ACL) at period end |
|
|
|
|
|
|
ACL/Loans, net |
|
|
|
|
|
|
ALL/Loans, net |
|
|
|
|
|
|
Allowance for credit losses to non-performing loans, excluding loans held for sale |
|
|
|
|
|
|
Allowance for loan losses to non-performing loans, excluding loans held for sale |
|
|
|
|
|
|
Provision for credit losses |
|
|
|
|
|
|
Net loans charged-off |
|
|
|
|
|
|
Adjusted net loan charge-offs (non-GAAP)(1) |
|
|
|
|
|
|
Net loans charged-off as a % of average loans, annualized |
|
|
|
|
|
|
Adjusted net loan charge-offs as a % of average loans, annualized (non-GAAP) (1) |
|
|
|
|
|
|
Non-performing loans, excluding loans held for sale/Loans, net |
|
|
|
|
|
|
NPAs (ex. 90+ past due)/Loans, foreclosed properties, and non-performing loans held for sale |
|
|
|
|
|
|
NPAs (inc. 90+ past due)/Loans, foreclosed properties, and non-performing loans held for sale* |
|
|
|
|
|
|
Total Criticized Loans—Business Services** |
|
|
|
|
|
|
| * | 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
The allowance for credit losses ratio remained unchanged at 1.79 percent while the allowance for credit losses as a percentage of nonperforming loans decreased to 186 percent.
Capital and liquidity
|
|
As of and for Quarter Ended |
||||
|
|
12/31/2024 |
|
9/30/2024 |
|
12/31/2023 |
Common Equity Tier 1 ratio(2) |
|
|
|
|
|
|
Tier 1 capital ratio(2) |
|
|
|
|
|
|
Total shareholders' equity to total assets |
|
|
|
|
|
|
Tangible common stockholders’ equity to tangible assets (non-GAAP)(1) |
|
|
|
|
|
|
Common book value per share |
|
|
|
|
|
|
Tangible common book value per share (non-GAAP)(1)* |
|
|
|
|
|
|
Loans, net of unearned income, to total deposits |
|
|
|
|
|
|
* 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 maintains a solid capital position with estimated capital ratios remaining well above current regulatory requirements. The Common Equity Tier 1(2) and Tier 1(2) capital ratios were estimated at 10.8 percent and 12.2 percent, respectively, at quarter-end.
Tangible common book value per share ended the quarter at
During the fourth quarter, the company repurchased approximately 3 million shares of common stock for a total of
The company's liquidity position also remains robust as of Dec. 31, 2024, with total available liquidity of approximately
(1) |
Non-GAAP; refer to reconciliations on pages 13, 17, 18, 19, and 21 of the financial supplement to this earnings release. |
|
(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 Jan. 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
Forward-Looking Statements
This release may include forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. 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 theSoutheastern 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, 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 theU.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 capital standards), 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, 2023 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), as well as the adjusted efficiency ratio (non-GAAP) and the adjusted fee income ratio (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 loan charge-offs (GAAP) are presented excluding adjustments to arrive at adjusted net loan-charge offs (non-GAAP). Adjusted net loan charge-offs as a percentage of average loans (non-GAAP) are calculated as adjusted net loan charge-offs (non-GAAP) divided by average loans (GAAP) and annualized. 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, 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
Regions’ Investor Relations contact is Dana Nolan at (205) 264-7040; Regions’ Media contact is Jeremy King at (205) 264-4551.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250117316963/en/
Media Contact:
Jeremy King
(205) 264-4551
Investor Relations Contact:
Dana Nolan
(205) 264-7040
Source: Regions Financial Corporation
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