Regions reports third quarter 2024 earnings of $446 million, earnings per diluted share of $0.49
Regions Financial Corp. (NYSE:RF) reported third quarter 2024 earnings of $446 million, with earnings per diluted share of $0.49. The company's total revenue reached $1.8 billion, including $721 million in reported pre-tax pre-provision income and $799 million in adjusted pre-tax pre-provision income. Notable items impacted earnings, reducing reported EPS by $0.08.
Key highlights include:
- Net interest income increased 3% to over $1.2 billion
- Non-interest income grew 5% on a reported basis and 9% on an adjusted basis
- Net interest margin expanded by 3 basis points to 3.54%
- Efficiency ratio was 59.3% on a reported basis and 56.9% on an adjusted basis
- Average loans and leases remained relatively stable
- Deposits showed stability with a slight 0.2% decrease in ending balances
- Net charge-offs were $117 million or 48 basis points of average loans
- Common Equity Tier 1 ratio improved to 10.6%
Regions Financial Corp. (NYSE:RF) ha riportato utili per il terzo trimestre 2024 pari a 446 milioni di dollari, con utili per azione diluiti di $0.49. Il fatturato totale dell'azienda ha raggiunto $1.8 miliardi, inclusi 721 milioni di dollari in reddito ante imposte e ante accantonamenti riportati e 799 milioni di dollari in reddito ante imposte e ante accantonamenti rettificati. Elementi significativi hanno influenzato gli utili, riducendo l'EPS riportato di $0.08.
I fatti salienti includono:
- Il reddito netto da interessi è aumentato del 3% superando 1.2 miliardi di dollari
- Il reddito non da interessi è cresciuto del 5% su base riportata e del 9% su base rettificata
- Il margine netto d'interesse è aumentato di 3 punti base, raggiungendo il 3.54%
- Il rapporto di efficienza è stato del 59.3% su base riportata e del 56.9% su base rettificata
- I prestiti e i leasing medi sono rimasti relativamente stabili
- I depositi hanno mostrato stabilità con una lieve diminuzione dello 0.2% nei saldi finali
- Le cancellazioni nette sono state pari a 117 milioni di dollari, ovvero 48 punti base dei prestiti medi
- Il rapporto di Common Equity Tier 1 è migliorato raggiungendo il 10.6%
Regions Financial Corp. (NYSE:RF) reportó ingresos del tercer trimestre de 2024 de $446 millones, con ganancias por acción diluida de $0.49. Los ingresos totales de la compañía alcanzaron $1.8 mil millones, incluyendo $721 millones en ingresos reportados antes de impuestos y antes de provisiones, y $799 millones en ingresos ajustados antes de impuestos y antes de provisiones. Elementos notables impactaron las ganancias, reduciendo el EPS reportado en $0.08.
Los puntos clave incluyen:
- Los ingresos netos por intereses aumentaron un 3% superando los $1.2 mil millones
- Los ingresos no por intereses crecieron un 5% en base reportada y un 9% en base ajustada
- El margen neto por intereses se expandió en 3 puntos básicos a 3.54%
- El ratio de eficiencia fue del 59.3% en base reportada y del 56.9% en base ajustada
- Los préstamos y arrendamientos promedio permanecieron relativamente estables
- Los depósitos mostraron estabilidad con una ligera disminución del 0.2% en los saldos finales
- Las cancelaciones netas fueron de $117 millones o 48 puntos básicos de los préstamos promedio
- El ratio de Common Equity Tier 1 mejoró al 10.6%
Regions Financial Corp. (NYSE:RF)는 2024년 3분기 실적으로 4억 4,600만 달러를 보고하였으며, 희석 주당순이익은 $0.49였습니다. 회사의 총 수익은 $18억에 달하며, 이 중 7억 2,100만 달러는 세전 계상 전 수익으로, 7억 9,900만 달러는 조정 세전 계상 전 수익입니다. 주요 항목들은 수익에 영향을 미쳐 보고된 EPS를 $0.08만큼 감소시켰습니다.
주요 하이라이트는 다음과 같습니다:
- 순이자 수익은 3% 증가하여 12억 달러를 초과했습니다.
- 비이자 수익은 보고 기준으로 5%, 조정 기준으로 9% 증가했습니다.
- 순이자 마진은 3베이시스 포인트 확장되어 3.54%에 도달했습니다.
- 효율성 비율은 보고 기준으로 59.3%, 조정 기준으로 56.9%였습니다.
- 평균 대출 및 리스는 상대적으로 안정적인 상태를 유지했습니다.
- 예금은 종료 잔액이 0.2% 감소하며 안정세를 보였습니다.
- 순 상각 비용은 1억 1,700만 달러 또는 평균 대출의 48베이시스 포인트였습니다.
- Common Equity Tier 1 비율은 10.6%로 개선되었습니다.
Regions Financial Corp. (NYSE:RF) a rapporté des chiffres du troisième trimestre 2024 de 446 millions de dollars, avec un bénéfice par action diluée de 0,49 dollar. Le chiffre d'affaires total de l'entreprise a atteint 1,8 milliard de dollars, comprenant 721 millions de dollars de revenus avant impôts et provisions, et 799 millions de dollars de revenus ajustés avant impôts et provisions. Des éléments notables ont eu un impact sur les bénéfices, réduisant le BPA rapporté de 0,08 dollar.
Les faits marquants comprennent :
- Les revenus nets d'intérêts ont augmenté de 3 % pour dépasser 1,2 milliard de dollars
- Les revenus non d'intérêts ont augmenté de 5 % sur une base reportée et de 9 % sur une base ajustée
- La marge nette d'intérêts s'est élargie de 3 points de base à 3,54 %
- Le ratio d'efficacité était de 59,3 % sur une base reportée et de 56,9 % sur une base ajustée
- Les prêts et les baux moyens sont restés relativement stables
- Les dépôts ont montré de la stabilité avec une légère diminution de 0,2 % des soldes de fin de période
- Les provisions nettes étaient de 117 millions de dollars, soit 48 points de base des prêts moyens
- Le ratio de Common Equity Tier 1 s'est amélioré à 10,6 %.
Regions Financial Corp. (NYSE:RF) berichtete für das dritte Quartal 2024 einen Gewinn von 446 Millionen Dollar, mit Gewinn pro verwässerter Aktie von 0,49 Dollar. Der Gesamtumsatz des Unternehmens erreichte 1,8 Milliarden Dollar, einschließlich 721 Millionen Dollar an berichteten Vorsteuer- und Vorabermittlungsgewinnen sowie 799 Millionen Dollar an adjustierten Vorsteuer- und Vorabermittlungsgewinnen. Wesentliche Posten beeinflussten den Gewinn und reduzierten den berichteten EPS um 0,08 Dollar.
Wichtige Highlights sind:
- Nettzinsüberschuss stieg um 3 % auf über 1,2 Milliarden Dollar
- Nichtzinsüberschuss wuchs um 5 % auf Basis der Berichterstattung und um 9 % auf adjustierter Basis
- Nettzinsmarge erweiterte sich um 3 Basispunkte auf 3,54 %
- Effizienzverhältnis betrug 59,3 % auf Basis der Berichterstattung und 56,9 % auf adjustierter Basis
- Durchschnittliche Kredite und Leasingverträge blieben relativ stabil
- Einlagen zeigten Stabilität mit einem leichten Rückgang von 0,2 % bei den Endbeständen
- Nettobelastungen beliefen sich auf 117 Millionen Dollar oder 48 Basispunkte der durchschnittlichen Kredite
- Common Equity Tier 1 Ratio verbesserte sich auf 10,6 %.
- Total revenue increased 3% to $1.8 billion on a reported basis
- Net interest income grew 3% to over $1.2 billion
- Net interest margin expanded by 3 basis points to 3.54%
- Non-interest income increased 5% on a reported basis and 9% on an adjusted basis
- Capital markets income rose 35% to $92 million
- Common Equity Tier 1 ratio improved to 10.6%
- Tangible common book value per share increased 16% quarter-over-quarter to $12.26
- Earnings per diluted share decreased from $0.52 in Q2 2024 to $0.49 in Q3 2024
- Net charge-offs increased to $117 million or 48 basis points of average loans
- Non-performing loans as a percentage of total loans remained elevated at 85 basis points
- Average deposits decreased approximately 1%
- Non-interest expense increased 6% on a reported basis and 4% on an adjusted basis
Insights
Regions Financial reported solid Q3 2024 results, with
Key highlights:
- Net interest income rose
3% to$1.2 billion with net interest margin expanding 3 bps to3.54% - Non-interest income grew
5% reported and9% adjusted, driven by strong wealth management and capital markets performance - Efficiency ratio improved to
56.9% on an adjusted basis - Credit quality remains stable with net charge-offs at 48 bps of average loans
- Capital position strengthened with CET1 ratio at
10.6%
The bank's strategic execution is yielding results, particularly in high-growth areas like wealth management and capital markets. However, the challenging lending environment and interest rate pressures continue to impact overall performance. The stable deposit base and improved liquidity position are positives in the current banking climate.
Regions' Q3 results demonstrate resilience in a challenging environment. The
The bank's deposit base remains a key strength, with total deposits up slightly year-over-year to
Investors should note the
While net charge-offs increased as expected, the overall credit quality appears manageable, with non-performing loans and criticized loans showing signs of stabilization. This suggests Regions is navigating the current economic uncertainties effectively.
Strategic execution of Regions' long-term plan leads to solid core performance, quarterly revenue growth.
“During the third quarter, Regions continued its focus on delivering consistent, sustainable, long-term performance as evidenced by our solid quarterly revenue growth, including another record within wealth management, and margin expansion despite a challenging lending and interest rate environment. We have a great strategic plan and a leadership team with a proven track record of successful execution. The investments we are making in talent, technology, products and services, along with our fast-growing markets, position us well to continue generating top-quartile returns," said John Turner, Chairman, President and CEO of Regions Financial Corp.
Turner added, "To that end, I am proud of how our teams have responded to serve and support communities impacted by the recent hurricanes. Our branch network fared well, with minimal impacts from the storms, and we immediately launched disaster-recovery financial services to help customers and associates with storm-related needs."
SUMMARY OF THIRD QUARTER 2024 RESULTS:
|
|
Quarter Ended |
||||||||||
(amounts in millions, except per share data) |
|
9/30/2024 |
|
6/30/2024 |
|
9/30/2023 |
||||||
Net income |
|
$ |
490 |
|
|
$ |
501 |
|
|
$ |
490 |
|
Preferred dividends and other* |
|
|
44 |
|
|
|
24 |
|
|
|
25 |
|
Net income available to common shareholders |
|
$ |
446 |
|
|
$ |
477 |
|
|
$ |
465 |
|
|
|
|
|
|
|
|
||||||
Weighted-average diluted shares outstanding |
|
|
918 |
|
|
|
918 |
|
|
|
940 |
|
Actual shares outstanding—end of period |
|
|
911 |
|
|
|
915 |
|
|
|
939 |
|
|
|
|
|
|
|
|
||||||
Diluted earnings per common share |
|
$ |
0.49 |
|
|
$ |
0.52 |
|
|
$ |
0.49 |
|
|
|
|
|
|
|
|
||||||
Selected items impacting earnings: |
|
|
|
|
|
|
||||||
Pre-tax adjusted items(1): |
|
|
|
|
|
|
||||||
Adjustments to non-interest expense(1) |
|
$ |
— |
|
|
$ |
28 |
|
|
$ |
(4 |
) |
Adjustments to non-interest income(1) |
|
|
(78 |
) |
|
|
(50 |
) |
|
|
(1 |
) |
Total pre-tax adjusted items(1) |
|
$ |
(78 |
) |
|
$ |
(22 |
) |
|
$ |
(5 |
) |
After-tax preferred stock redemption expense* |
|
$ |
(15 |
) |
|
$ |
— |
|
|
$ |
— |
|
Diluted EPS impact** |
|
$ |
(0.08 |
) |
|
$ |
(0.01 |
) |
|
$ |
— |
|
|
|
|
|
|
|
|
||||||
Pre-tax additional selected items***: |
|
|
|
|
|
|
||||||
Incremental operational losses related to check warranty claims |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(53 |
) |
Visa Class B litigation escrow funding |
|
|
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) |
|
9/30/2024 |
|
6/30/2024 |
|
9/30/2023 |
|
3Q24 vs. 2Q24 |
|
3Q24 vs. 3Q23 |
||||||||||||||||
Net interest income |
|
$ |
1,218 |
|
|
$ |
1,186 |
|
|
$ |
1,291 |
|
|
$ |
32 |
|
|
2.7 |
% |
|
$ |
(73 |
) |
|
(5.7 |
)% |
Taxable equivalent adjustment |
|
|
12 |
|
|
|
12 |
|
|
|
13 |
|
|
|
— |
|
|
— |
% |
|
|
(1 |
) |
|
(7.7 |
)% |
Net interest income, taxable equivalent basis |
|
$ |
1,230 |
|
|
$ |
1,198 |
|
|
$ |
1,304 |
|
|
$ |
32 |
|
|
2.7 |
% |
|
$ |
(74 |
) |
|
(5.7 |
)% |
Net interest margin (FTE) |
|
|
3.54 |
% |
|
|
3.51 |
% |
|
|
3.73 |
% |
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Non-interest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Service charges on deposit accounts |
|
$ |
158 |
|
|
$ |
151 |
|
|
$ |
142 |
|
|
$ |
7 |
|
|
4.6 |
% |
|
$ |
16 |
|
|
11.3 |
% |
Card and ATM fees |
|
|
118 |
|
|
|
120 |
|
|
|
126 |
|
|
|
(2 |
) |
|
(1.7 |
)% |
|
|
(8 |
) |
|
(6.3 |
)% |
Wealth management income |
|
|
128 |
|
|
|
122 |
|
|
|
112 |
|
|
|
6 |
|
|
4.9 |
% |
|
|
16 |
|
|
14.3 |
% |
Capital markets income |
|
|
92 |
|
|
|
68 |
|
|
|
64 |
|
|
|
24 |
|
|
35.3 |
% |
|
|
28 |
|
|
43.8 |
% |
Mortgage income |
|
|
36 |
|
|
|
34 |
|
|
|
28 |
|
|
|
2 |
|
|
5.9 |
% |
|
|
8 |
|
|
28.6 |
% |
Commercial credit fee income |
|
|
28 |
|
|
|
28 |
|
|
|
24 |
|
|
|
— |
|
|
— |
% |
|
|
4 |
|
|
16.7 |
% |
Bank-owned life insurance |
|
|
28 |
|
|
|
30 |
|
|
|
20 |
|
|
|
(2 |
) |
|
(6.7 |
)% |
|
|
8 |
|
|
40.0 |
% |
Market value adjustments on employee benefit assets* |
|
|
13 |
|
|
|
2 |
|
|
|
4 |
|
|
|
11 |
|
|
NM |
|
|
|
9 |
|
|
225.0 |
% |
Securities gains (losses), net** |
|
|
(78 |
) |
|
|
(50 |
) |
|
|
(1 |
) |
|
|
(28 |
) |
|
(56.0 |
)% |
|
|
(77 |
) |
|
NM |
|
Other miscellaneous income |
|
|
49 |
|
|
|
40 |
|
|
|
47 |
|
|
|
9 |
|
|
22.5 |
% |
|
|
2 |
|
|
4.3 |
% |
Non-interest income |
|
$ |
572 |
|
|
$ |
545 |
|
|
$ |
566 |
|
|
$ |
27 |
|
|
5.0 |
% |
|
$ |
6 |
|
|
1.1 |
% |
Adjusted non-interest income (non-GAAP) |
|
$ |
650 |
|
|
$ |
595 |
|
|
$ |
567 |
|
|
$ |
55 |
|
|
9.2 |
% |
|
$ |
83 |
|
|
14.6 |
% |
Total revenue |
|
$ |
1,790 |
|
|
$ |
1,731 |
|
|
$ |
1,857 |
|
|
$ |
59 |
|
|
3.4 |
% |
|
$ |
(67 |
) |
|
(3.6 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Adjusted total revenue (non-GAAP)(1) |
|
$ |
1,868 |
|
|
$ |
1,781 |
|
|
$ |
1,858 |
|
|
$ |
87 |
|
|
4.9 |
% |
|
$ |
10 |
|
|
0.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
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 third quarter 2024 includes |
||||||||||||||||||||||||||
Total revenue increased 3 percent to approximately
Non-interest income increased 5 percent on a reported basis and 9 percent on an adjusted basis(1) compared to the second quarter of 2024. With respect to adjusted items, the company incurred
Non-interest expense
|
|
Quarter Ended |
|||||||||||||||||||||
($ amounts in millions) |
|
9/30/2024 |
|
6/30/2024 |
|
9/30/2023 |
|
3Q24 vs. 2Q24 |
|
3Q24 vs. 3Q23 |
|||||||||||||
Salaries and employee benefits |
|
$ |
645 |
|
$ |
609 |
|
$ |
589 |
|
$ |
36 |
|
|
5.9 |
% |
|
$ |
56 |
|
|
9.5 |
% |
Equipment and software expense |
|
|
101 |
|
|
100 |
|
|
107 |
|
|
1 |
|
|
1.0 |
% |
|
|
(6 |
) |
|
(5.6 |
)% |
Net occupancy expense |
|
|
69 |
|
|
68 |
|
|
72 |
|
|
1 |
|
|
1.5 |
% |
|
|
(3 |
) |
|
(4.2 |
)% |
Outside services |
|
|
41 |
|
|
40 |
|
|
39 |
|
|
1 |
|
|
2.5 |
% |
|
|
2 |
|
|
5.1 |
% |
Marketing |
|
|
28 |
|
|
27 |
|
|
26 |
|
|
1 |
|
|
3.7 |
% |
|
|
2 |
|
|
7.7 |
% |
Professional, legal and regulatory expenses |
|
|
21 |
|
|
25 |
|
|
27 |
|
|
(4 |
) |
|
(16.0 |
)% |
|
|
(6 |
) |
|
(22.2 |
)% |
Credit/checkcard expenses |
|
|
14 |
|
|
15 |
|
|
16 |
|
|
(1 |
) |
|
(6.7 |
)% |
|
|
(2 |
) |
|
(12.5 |
)% |
FDIC insurance assessments |
|
|
17 |
|
|
29 |
|
|
27 |
|
|
(12 |
) |
|
(41.4 |
)% |
|
|
(10 |
) |
|
(37.0 |
)% |
Visa class B shares expense |
|
|
17 |
|
|
5 |
|
|
5 |
|
|
12 |
|
|
240.0 |
% |
|
|
12 |
|
|
240.0 |
% |
Operational losses |
|
|
19 |
|
|
18 |
|
|
75 |
|
|
1 |
|
|
5.6 |
% |
|
|
(56 |
) |
|
(74.7 |
)% |
Branch consolidation, property and equipment charges |
|
|
— |
|
|
1 |
|
|
1 |
|
|
(1 |
) |
|
(100.0 |
)% |
|
|
(1 |
) |
|
(100.0 |
)% |
Other |
|
|
97 |
|
|
67 |
|
|
109 |
|
|
30 |
|
|
44.8 |
% |
|
|
(12 |
) |
|
(11.0 |
)% |
Total non-interest expense |
|
$ |
1,069 |
|
$ |
1,004 |
|
$ |
1,093 |
|
$ |
65 |
|
|
6.5 |
% |
|
$ |
(24 |
) |
|
(2.2 |
)% |
Total adjusted non-interest expense(1) |
|
$ |
1,069 |
|
$ |
1,032 |
|
$ |
1,089 |
|
$ |
37 |
|
|
3.6 |
% |
|
$ |
(20 |
) |
|
(1.8 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
NM - Not Meaningful |
|||||||||||||||||||||||
Non-interest expense increased 6 percent and 4 percent on a reported and adjusted basis(1), respectively, compared to the second quarter of 2024. Third quarter adjusted items offset each other, while the second quarter included a
The company's third quarter efficiency ratio was 59.3 percent on a reported and 56.9 percent on an adjusted basis(1). The effective tax rate was 19.4 percent in the third quarter.
Loans and Leases
|
|
Average Balances |
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
($ amounts in millions) |
|
3Q24 |
|
2Q24 |
|
3Q23 |
|
3Q24 vs. 2Q24 |
|
3Q24 vs. 3Q23 |
|||||||||||||
Commercial and industrial |
|
$ |
49,847 |
|
$ |
50,046 |
|
$ |
51,721 |
|
$ |
(199 |
) |
|
(0.4 |
)% |
|
$ |
(1,874 |
) |
|
(3.6 |
)% |
Commercial real estate—owner-occupied |
|
|
5,212 |
|
|
5,115 |
|
|
5,100 |
|
|
97 |
|
|
1.9 |
% |
|
|
112 |
|
|
2.2 |
% |
Investor real estate |
|
|
8,759 |
|
|
8,839 |
|
|
8,617 |
|
|
(80 |
) |
|
(0.9 |
)% |
|
|
142 |
|
|
1.6 |
% |
Business Lending |
|
|
63,818 |
|
|
64,000 |
|
|
65,438 |
|
|
(182 |
) |
|
(0.3 |
)% |
|
|
(1,620 |
) |
|
(2.5 |
)% |
Residential first mortgage |
|
|
20,147 |
|
|
20,191 |
|
|
19,914 |
|
|
(44 |
) |
|
(0.2 |
)% |
|
|
233 |
|
|
1.2 |
% |
Home equity |
|
|
5,530 |
|
|
5,557 |
|
|
5,688 |
|
|
(27 |
) |
|
(0.5 |
)% |
|
|
(158 |
) |
|
(2.8 |
)% |
Consumer credit card |
|
|
1,359 |
|
|
1,331 |
|
|
1,245 |
|
|
28 |
|
|
2.1 |
% |
|
|
114 |
|
|
9.2 |
% |
Other consumer—exit portfolios |
|
|
13 |
|
|
22 |
|
|
384 |
|
|
(9 |
) |
|
(40.9 |
)% |
|
|
(371 |
) |
|
(96.6 |
)% |
Other consumer* |
|
|
6,173 |
|
|
6,180 |
|
|
6,116 |
|
|
(7 |
) |
|
(0.1 |
)% |
|
|
57 |
|
|
0.9 |
% |
Consumer Lending |
|
|
33,222 |
|
|
33,281 |
|
|
33,347 |
|
|
(59 |
) |
|
(0.2 |
)% |
|
|
(125 |
) |
|
(0.4 |
)% |
Total Loans |
|
$ |
97,040 |
|
$ |
97,281 |
|
$ |
98,785 |
|
$ |
(241 |
) |
|
(0.2 |
)% |
|
$ |
(1,745 |
) |
|
(1.8 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
NM - Not meaningful. |
|||||||||||||||||||||||
* Other consumer loans includes Regions' Home Improvement Financing portfolio (formerly EnerBank). |
|||||||||||||||||||||||
Average loans and leases remained relatively stable compared to the prior quarter. Within the business portfolio, average loans remained relatively stable, while ending loans decreased 1 percent. Within the consumer portfolio, average loans remained relatively stable as modest growth in consumer credit card was offset by modest declines in other categories.
Deposits
|
|
Average Balances |
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
($ amounts in millions) |
|
3Q24 |
|
2Q24 |
|
3Q23 |
|
3Q24 vs. 2Q24 |
|
3Q24 vs. 3Q23 |
|||||||||||||
Total interest-bearing deposits |
|
$ |
86,260 |
|
$ |
86,385 |
|
$ |
80,472 |
|
$ |
(125 |
) |
|
(0.1 |
)% |
|
$ |
5,788 |
|
|
7.2 |
% |
Non-interest-bearing deposits |
|
|
39,690 |
|
|
40,516 |
|
|
44,748 |
|
|
(826 |
) |
|
(2.0 |
)% |
|
|
(5,058 |
) |
|
(11.3 |
)% |
Total Deposits |
|
$ |
125,950 |
|
$ |
126,901 |
|
$ |
125,220 |
|
$ |
(951 |
) |
|
(0.7 |
)% |
|
$ |
730 |
|
|
0.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
($ amounts in millions) |
|
3Q24 |
|
2Q24 |
|
3Q23 |
|
3Q24 vs. 2Q24 |
|
3Q24 vs. 3Q23 |
|||||||||||||
Consumer Bank Segment |
|
$ |
78,904 |
|
$ |
79,809 |
|
$ |
80,036 |
|
$ |
(905 |
) |
|
(1.1 |
)% |
|
$ |
(1,132 |
) |
|
(1.4 |
)% |
Corporate Bank Segment |
|
|
36,867 |
|
|
36,669 |
|
|
34,924 |
|
|
198 |
|
|
0.5 |
% |
|
|
1,943 |
|
|
5.6 |
% |
Wealth Management Segment |
|
|
7,374 |
|
|
7,534 |
|
|
7,451 |
|
|
(160 |
) |
|
(2.1 |
)% |
|
|
(77 |
) |
|
(1.0 |
)% |
Other |
|
|
2,805 |
|
|
2,889 |
|
|
2,809 |
|
|
(84 |
) |
|
(2.9 |
)% |
|
|
(4 |
) |
|
(0.1 |
)% |
Total Deposits |
|
$ |
125,950 |
|
$ |
126,901 |
|
$ |
125,220 |
|
$ |
(951 |
) |
|
(0.7 |
)% |
|
$ |
730 |
|
|
0.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
Ending Balances as of |
|||||||||||||||||||||
|
|
|
|
|
|
|
|
9/30/2024 |
|
9/30/2024 |
|||||||||||||
($ amounts in millions) |
|
9/30/2024 |
|
6/30/2024 |
|
9/30/2023 |
|
vs. 6/30/2024 |
|
vs. 9/30/2023 |
|||||||||||||
Consumer Bank Segment |
|
$ |
78,858 |
|
$ |
80,126 |
|
$ |
80,980 |
|
$ |
(1,268 |
) |
|
(1.6 |
)% |
|
$ |
(2,122 |
) |
|
(2.6 |
)% |
Corporate Bank Segment |
|
|
36,955 |
|
|
36,529 |
|
|
34,650 |
|
|
426 |
|
|
1.2 |
% |
|
|
2,305 |
|
|
6.7 |
% |
Wealth Management Segment |
|
|
7,520 |
|
|
7,383 |
|
|
7,791 |
|
|
137 |
|
|
1.9 |
% |
|
|
(271 |
) |
|
(3.5 |
)% |
Other |
|
|
3,043 |
|
|
2,578 |
|
|
2,778 |
|
|
465 |
|
|
18.0 |
% |
|
|
265 |
|
|
9.5 |
% |
Total Deposits |
|
$ |
126,376 |
|
$ |
126,616 |
|
$ |
126,199 |
|
$ |
(240 |
) |
|
(0.2 |
)% |
|
$ |
177 |
|
|
0.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
The company's deposit base continues to be a source of strength and a differentiator in liquidity and margin performance. Total deposits continued to follow expected patterns in the third quarter. Ending deposits remained relatively stable with the second quarter, while average deposits decreased approximately 1 percent, consistent with normal summer spending patterns primarily among consumers.
Asset quality
|
|
As of and for the Quarter Ended |
||||
($ amounts in millions) |
|
9/30/2024 |
|
6/30/2024 |
|
9/30/2023 |
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 |
|
|
|
|
|
|
Net loans charged-off as a % of average loans, annualized |
|
|
|
|
|
|
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 loss ratio increased 1 basis point to 1.79 percent, while the allowance as a percentage of nonperforming loans increased 6 percentage points to 210 percent.
Capital and liquidity
|
|
As of and for Quarter Ended |
||||
|
|
9/30/2024 |
|
6/30/2024 |
|
9/30/2023 |
Common Equity Tier 1 ratio(2) |
|
|
|
|
|
|
Tier 1 capital ratio(2) |
|
|
|
|
|
|
Tangible common stockholders’ equity to tangible assets (non-GAAP)(1) |
|
|
|
|
|
|
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) ratios were estimated at 10.6 percent and 11.9 percent, respectively, at quarter-end.
Tangible common book value per share ended the quarter at
During the third quarter, the company repurchased approximately 4 million shares of common stock for a total of
On July 29, 2024, the company issued
The company's liquidity position also remains robust as of September 30, 2024, with total available liquidity of approximately
| (1) | Non-GAAP; refer to pages 12, 16, 17 and 18 of the financial supplement to this earnings release for reconciliations. |
|
| (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 Oct. 18, 2024, 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.
- Market replacement of LIBOR and the related effect on our legacy LIBOR-based financial products and contracts, including, but not limited to, derivative products, debt obligations, deposits, investments, and loans.
- 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.
- 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.
-
Political uncertainty in
the United States , including uncertainty around elections, could directly or indirectly impact 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/20241018488720/en/
Media Contact:
Jeremy King
(205) 264-4551
Investor Relations Contact:
Dana Nolan
(205) 264-7040
Source: Regions Financial Corporation
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