For the quarter ended December 2024, Regions Financial (RF) reported revenue of $1.82 billion, up 0.2% over the same period last year. EPS came in at $0.59, compared to $0.52 in the year-ago quarter.The reported revenue represents a surprise of -2.14% over the Zacks Consensus Estimate of $1.85 billion. With the consensus EPS estimate being $0.55, the EPS surprise was +7.27%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street ...

Financial Performance - Net income available to common shareholders was $508 million for 4Q24 and $1774 million for FY24[3] - Total revenue reached $1815 million in 4Q24 and $7083 million for the full year 2024, with adjusted revenues of $1845 million and $7291 million respectively[3] - Non-interest expense was $1038 million for 4Q24 and $4242 million for FY24, with adjusted figures of $1029 million and $4227 million respectively[3] - Pre-tax pre-provision income was $777 million in 4Q24 and $2841 million in FY24, with adjusted figures of $816 million and $3064 million respectively[3] - The efficiency ratio was 568% for 4Q24 and 595% for FY24, with adjusted ratios of 554% and 576% respectively[3] - Net charge-offs as a percentage of average loans were 049% for both 4Q24 and FY24[3] Loan and Deposit Trends - Average loans and leases stood at $964 billion in 4Q24, slightly down from $970 billion in 3Q24[19] - Ending loans and leases were $967 billion in 4Q24, a slight decrease from $968 billion in 3Q24[21] - Average deposits increased to $1276 billion in 4Q24 from $1264 billion in 3Q24[26] - Ending deposits increased to $1265 billion in 4Q24 from $1260 billion in 3Q24[26] Net Interest Income (NII) and Margin - Net interest income (NII) was $1243 million in 4Q24, compared to $1230 million in 3Q24[30] - Net interest margin (NIM) increased by 1 basis point to 355% in 4Q24[30] - The company sold approximately $700 million of securities at a $30 million pre-tax loss and reinvested the proceeds at higher market yields[36] 2025 Expectations - Net interest income is expected to increase by 2-5% in 2025[38] - Adjusted non-interest income is projected to grow by 2-4% in FY25[44] - Adjusted non-interest expense is expected to increase by 1-3% in FY25, inclusive of investments[48] - Average loan balances are expected to increase by approximately 1% in 2025[23]

Regions Financial (RF) came out with quarterly earnings of $0.59 per share, beating the Zacks Consensus Estimate of $0.55 per share. This compares to earnings of $0.52 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 7.27%. A quarter ago, it was expected that this holding company for Regions Bank would post earnings of $0.53 per share when it actually produced earnings of $0.57, delivering a surprise of 7.55%.Over the last four ...

[Financial Highlights](index=3&type=section&id=Financial%20Highlights) [Earnings Summary](index=3&type=section&id=Earnings%20Summary) Regions Financial Corporation reported increased net income and diluted EPS in Q4 2024 compared to prior periods Quarterly Earnings Summary (Q4 2024 vs. Q3 2024 vs. Q4 2023) | Metric | 12/31/2024 | 9/30/2024 | 12/31/2023 | | :--------------------------------- | :--------- | :-------- | :--------- | | Net income ($ millions) | $534 | $490 | $391 | | Net income available to common shareholders ($ millions) | $508 | $446 | $367 | | Diluted EPS | $0.56 | $0.49 | $0.39 | - Net interest income remained relatively stable at **$1,230 million** in Q4 2024, compared to **$1,218 million** in Q3 2024 and **$1,231 million** in Q4 2023[4](index=4&type=chunk) - Provision for credit losses increased slightly to **$120 million** in Q4 2024 from **$113 million** in Q3 2024, but decreased from **$155 million** in Q4 2023[4](index=4&type=chunk) [Balance Sheet Summary](index=3&type=section&id=Balance%20Sheet%20Summary) Total assets remained stable in Q4 2024, with a slight QoQ decrease and YoY increase, while deposits grew modestly Quarterly Balance Sheet Summary (Q4 2024 vs. Q3 2024 vs. Q4 2023) | Metric | 12/31/2024 | 9/30/2024 | 12/31/2023 | | :--------------------------------- | :--------- | :-------- | :--------- | | Loans, net of unearned income ($ millions) | $96,727 | $96,789 | $98,379 | | Assets ($ millions) | $157,302 | $157,426 | $152,194 | | Deposits ($ millions) | $127,603 | $126,376 | $127,788 | | Shareholders' equity ($ millions) | $17,879 | $18,676 | $17,429 | - Loans, net of unearned income, remained relatively stable quarter-over-quarter at **$96,727 million**, but decreased by **1.7%** year-over-year from **$98,379 million**[4](index=4&type=chunk) - Deposits increased by **1.0%** from **$126,376 million** in Q3 2024 to **$127,603 million** in Q4 2024, but were slightly down from **$127,788 million** in Q4 2023[4](index=4&type=chunk) [Selected Ratios and Other Information](index=4&type=section&id=Selected%20Ratios%20and%20Other%20Information) [Key Performance Ratios (Quarterly)](index=4&type=section&id=Key%20Performance%20Ratios%20(Quarterly)) Profitability and efficiency ratios improved in Q4 2024, with return on average assets at **1.36%** and strong CET1 Selected Quarterly Ratios (Q4 2024 vs. Q3 2024 vs. Q4 2023) | Metric | 12/31/2024 | 9/30/2024 | 12/31/2023 | | :------------------------------------------------ | :--------- | :-------- | :--------- | | Return on average assets* (%) | 1.36 % | 1.26 % | 1.02 % | | Return on average common shareholders' equity* (%) | 12.39 % | 10.88 % | 9.95 % | | Efficiency ratio (%) | 56.8 % | 59.3 % | 65.0 % | | Common equity Tier 1 ratio (estimated) (%) | 10.8 % | 10.6 % | 10.3 % | | Net interest margin (FTE)* (%) | 3.55 % | 3.54 % | 3.60 % | | Net charge-offs as a percentage of average loans* (%) | 0.49 % | 0.48 % | 0.54 % | - The allowance for credit losses as a percentage of loans, net of unearned income, remained stable at **1.79%** in Q4 2024, consistent with Q3 2024[5](index=5&type=chunk) - Non-performing loans, excluding loans held for sale, increased to **0.96%** of loans in Q4 2024 from **0.85%** in Q3 2024[5](index=5&type=chunk) [Key Performance Ratios (Annual)](index=4&type=section&id=Key%20Performance%20Ratios%20(Annual)) Annual performance for 2024 showed a return on average assets of **1.23%** and a net interest margin of **3.54%** Selected Annual Ratios (2024 vs. 2023) | Metric | 2024 | 2023 | | :------------------------------------------------ | :----- | :----- | | Return on average assets (%) | 1.23 % | 1.36 % | | Return on average common shareholders' equity (%) | 11.24 %| 13.29 %| | Efficiency ratio (%) | 59.5 % | 57.9 % | | Net interest margin (FTE) (%) | 3.54 % | 3.90 % | | Net charge-offs as a percentage of average loans (%) | 0.47 % | 0.40 % | - The dividend payout ratio for 2024 increased to **50.5%** from **41.6%** in 2023[5](index=5&type=chunk) [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) [Assets, Liabilities and Equity](index=5&type=section&id=Assets%2C%20Liabilities%20and%20Equity) Total assets remained stable in Q4 2024, with increased deposits and a significant rise in long-term borrowings Consolidated Balance Sheet Highlights (Q4 2024 vs. Q3 2024 vs. Q4 2023) | Metric | 12/31/2024 | 9/30/2024 | 12/31/2023 | | :--------------------------------- | :--------- | :-------- | :--------- | | Total assets ($ millions) | $157,302 | $157,426 | $152,194 | | Net loans ($ millions) | $95,114 | $95,182 | $96,803 | | Total deposits ($ millions) | $127,603 | $126,376 | $127,788 | | Long-term borrowings ($ millions) | $5,993 | $6,016 | $2,330 | | Total shareholders' equity ($ millions) | $17,879 | $18,676 | $17,429 | - Debt securities held to maturity significantly increased to **$4,427 million** in Q4 2024 from **$2,787 million** in Q3 2024 and **$754 million** in Q4 2023[7](index=7&type=chunk) - Non-interest-bearing deposits decreased by **1.4%** QoQ and **7.6%** YoY, while interest-bearing deposits increased by **2.0%** QoQ and **3.6%** YoY[7](index=7&type=chunk) [Loans](index=6&type=section&id=Loans) [End of Period Loans](index=6&type=section&id=End%20of%20Period%20Loans) Total loan portfolio remained stable at **$96,727 million** in Q4 2024, with slight QoQ and YoY decreases End of Period Loans by Category ($ millions) | Loan Category | 12/31/2024 | 9/30/2024 | 12/31/2023 | 4Q24 vs. 3Q24 (%) | 4Q24 vs. 4Q23 (%) | | :------------------------------------ | :--------- | :-------- | :--------- | :---------------- | :---------------- | | Commercial and industrial ($ millions) | $49,671 | $49,565 | $50,865 | 0.2 | (2.3) | | Total business ($ millions) | $63,555 | $63,591 | $64,883 | (0.1) | (2.0) | | Residential first mortgage ($ millions) | $20,094 | $20,125 | $20,207 | (0.2) | (0.6) | | Consumer credit card ($ millions) | $1,445 | $1,372 | $1,341 | 5.3 | 7.8 | | Total consumer ($ millions) | $33,172 | $33,198 | $33,496 | (0.1) | (1.0) | | **Total Loans ($ millions)** | **$96,727**| **$96,789**| **$98,379**| **(0.1)** | **(1.7)** | End of Period Loans by Percentage | Loan Category | 12/31/2024 (%) | 9/30/2024 (%) | 12/31/2023 (%) | | :------------------------------------ | :--------- | :-------- | :--------- | | Commercial and industrial | 51.4 % | 51.2 % | 51.7 % | | Total business | 65.7 % | 65.7 % | 66.0 % | | Total consumer | 34.3 % | 34.3 % | 34.0 % | - Consumer credit card loans showed strong growth, increasing by **5.3%** QoQ and **7.8%** YoY[9](index=9&type=chunk) [Average Balances of Loans](index=7&type=section&id=Average%20Balances%20of%20Loans) Average total loans decreased to **$96,408 million** in Q4 2024, with commercial and industrial loans declining Average Balances of Loans by Category ($ millions) | Loan Category | 4Q24 ($ millions) | 3Q24 ($ millions) | 4Q23 ($ millions) | 4Q24 vs. 3Q24 (%) | 4Q24 vs. 4Q23 (%) | | :------------------------------------ | :--- | :--- | :--- | :---------------- | :---------------- | | Commercial and industrial | $49,357 | $49,847 | $50,939 | (1.0) | (3.1) | | Total business | $63,225 | $63,818 | $64,847 | (0.9) | (2.5) | | Total consumer | $33,183 | $33,222 | $33,446 | (0.1) | (0.8) | | **Total Loans** | **$96,408**| **$97,040**| **$98,293**| **(0.7)** | **(1.9)** | Annual Average Balances of Loans by Category ($ millions) | Loan Category | 2024 ($ millions) | 2023 ($ millions) | 2024 vs. 2023 (%) | | :------------------------------------ | :--- | :--- | :---------------- | | Commercial and industrial | $49,834 | $51,465 | (3.2) | | Total business | $63,773 | $65,218 | (2.2) | | Total consumer | $33,263 | $33,021 | 0.7 | | **Total Loans** | **$97,036**| **$98,239**| **(1.2)** | - For the full year 2024, average total loans decreased by **1.2%** compared to 2023, primarily driven by a **3.2%** decline in commercial and industrial loans[13](index=13&type=chunk) [Deposits](index=8&type=section&id=Deposits) [End of Period Deposits](index=8&type=section&id=End%20of%20Period%20Deposits) Total deposits increased by **1.0%** QoQ to **$127,603 million** in Q4 2024, with interest-free deposits declining End of Period Deposits by Type ($ millions) | Deposit Type | 12/31/2024 | 9/30/2024 | 12/31/2023 | 4Q24 vs. 3Q24 (%) | 4Q24 vs. 4Q23 (%) | | :-------------------------- | :--------- | :-------- | :--------- | :---------------- | :---------------- | | Interest-free deposits ($ millions) | $39,138 | $39,698 | $42,368 | (1.4) | (7.6) | | Interest-bearing checking ($ millions) | $25,079 | $23,704 | $24,480 | 5.8 | 2.4 | | Money market—domestic ($ millions) | $35,644 | $35,205 | $33,364 | 1.2 | 6.8 | | Time deposits ($ millions) | $15,720 | $15,684 | $14,972 | 0.2 | 5.0 | | **Total Deposits ($ millions)** | **$127,603**| **$126,376**| **$127,788**| **1.0** | **(0.1)** | End of Period Deposits by Segment ($ millions) | Segment | 12/31/2024 | 9/30/2024 | 12/31/2023 | 4Q24 vs. 3Q24 (%) | 4Q24 vs. 4Q23 (%) | | :-------------------- | :--------- | :-------- | :--------- | :---------------- | :---------------- | | Consumer Bank Segment ($ millions) | $78,637 | $78,858 | $80,031 | (0.3) | (1.7) | | Corporate Bank Segment ($ millions)| $38,361 | $36,955 | $36,883 | 3.8 | 4.0 | | Wealth Management Segment ($ millions) | $7,736 | $7,520 | $7,694 | 2.9 | 0.5 | - Corporate Bank Segment deposits increased by **3.8%** QoQ and **4.0%** YoY, indicating strong growth in this area[15](index=15&type=chunk) [Average Balances of Deposits](index=9&type=section&id=Average%20Balances%20of%20Deposits) Average total deposits increased by **0.4%** QoQ to **$126,493 million** in Q4 2024, with time deposits growing Average Balances of Deposits by Type ($ millions) | Deposit Type | 4Q24 ($ millions) | 3Q24 ($ millions) | 4Q23 ($ millions) | 4Q24 vs. 3Q24 (%) | 4Q24 vs. 4Q23 (%) | | :-------------------------- | :--- | :--- | :--- | :---------------- | :---------------- | | Interest-free deposits | $39,424 | $39,690 | $43,167 | (0.7) | (8.7) | | Interest-bearing checking | $24,060 | $23,599 | $23,128 | 2.0 | 4.0 | | Money market—domestic | $35,264 | $35,051 | $33,216 | 0.6 | 6.2 | | Time deposits | $15,725 | $15,427 | $14,045 | 1.9 | 12.0 | | **Total Deposits** | **$126,493**| **$125,950**| **$126,414**| **0.4** | **0.1** | Annual Average Balances of Deposits by Type ($ millions) | Deposit Type | 2024 ($ millions) | 2023 ($ millions) | 2024 vs. 2023 (%) | | :-------------------------- | :--- | :--- | :---------------- | | Interest-free deposits | $40,136 | $46,150 | (13.0) | | Time deposits | $15,471 | $10,545 | 46.7 | | **Total Deposits** | **$126,615**| **$126,543**| **0.1** | - For the full year 2024, average time deposits surged by **46.7%** compared to 2023, reflecting a shift towards higher-yielding deposit products[17](index=17&type=chunk) [Consolidated Statements of Income](index=10&type=section&id=Consolidated%20Statements%20of%20Income) [Quarterly Statements of Income](index=10&type=section&id=Quarterly%20Statements%20of%20Income) Net income increased to **$534 million** in Q4 2024, driven by lower interest and non-interest expenses Quarterly Income Statement Highlights ($ millions) | Metric | 12/31/2024 | 9/30/2024 | 12/31/2023 | | :--------------------------------- | :--------- | :-------- | :--------- | | Total interest income ($ millions) | $1,802 | $1,820 | $1,751 | | Total interest expense ($ millions) | $572 | $602 | $520 | | Net interest income ($ millions) | $1,230 | $1,218 | $1,231 | | Provision for credit losses ($ millions) | $120 | $113 | $155 | | Total non-interest income ($ millions) | $585 | $572 | $580 | | Total non-interest expense ($ millions) | $1,038 | $1,069 | $1,185 | | Net income ($ millions) | $534 | $490 | $391 | | Diluted EPS | $0.56 | $0.49 | $0.39 | - Interest expense on deposits decreased to **$467 million** in Q4 2024 from **$507 million** in Q3 2024, contributing to the net interest income stability[18](index=18&type=chunk) - Non-interest expense decreased by **2.9%** QoQ and **12.4%** YoY, primarily due to lower salaries and employee benefits and other miscellaneous expenses[18](index=18&type=chunk) [Annual Statements of Income](index=11&type=section&id=Annual%20Statements%20of%20Income) Annual net income for 2024 decreased to **$1,893 million**, primarily due to a decline in net interest income Annual Income Statement Highlights ($ millions) | Metric | 2024 | 2023 | | :--------------------------------- | :--- | :--- | | Total interest income ($ millions) | $7,108 | $6,897 | | Total interest expense ($ millions) | $2,290 | $1,577 | | Net interest income ($ millions) | $4,818 | $5,320 | | Provision for credit losses ($ millions) | $487 | $553 | | Total non-interest income ($ millions) | $2,265 | $2,256 | | Total non-interest expense ($ millions) | $4,242 | $4,416 | | Net income ($ millions) | $1,893 | $2,074 | | Diluted EPS | $1.93 | $2.11 | - Net interest income decreased by **9.4%** year-over-year, primarily due to a significant increase in interest expense on deposits (up **57.1%**)[21](index=21&type=chunk) - Total non-interest expense decreased by **3.9%** year-over-year, driven by lower operational losses and FDIC insurance assessments[21](index=21&type=chunk) [Consolidated Average Daily Balances and Yield/Rate Analysis](index=12&type=section&id=Consolidated%20Average%20Daily%20Balances%20and%20Yield%2FRate%20Analysis) [Quarterly Yield/Rate Analysis](index=12&type=section&id=Quarterly%20Yield%2FRate%20Analysis) Net interest margin (FTE) slightly increased to **3.55%** in Q4 2024, with an improved net interest spread Quarterly Yield/Rate Analysis Highlights (Q4 2024 vs. Q3 2024) | Metric | 12/31/2024 (%) | 9/30/2024 (%) | | :------------------------------------ | :--------- | :-------- | | Yield on Total earning assets | 5.17 % | 5.26 % | | Rate on Total interest-bearing liabilities | 2.41 % | 2.59 % | | Net interest spread | 2.76 % | 2.67 % | | Net interest income/margin FTE basis | 3.55 % | 3.54 % | - The yield on loans, net of unearned income, decreased to **5.87%** in Q4 2024 from **6.02%** in Q3 2024[23](index=23&type=chunk) - The rate for total deposit costs decreased to **1.47%** in Q4 2024 from **1.60%** in Q3 2024[25](index=25&type=chunk) [Annual Yield/Rate Analysis](index=14&type=section&id=Annual%20Yield%2FRate%20Analysis) Annual net interest margin (FTE) for 2024 was **3.54%**, a decrease from 2023 due to higher liability rates Annual Yield/Rate Analysis Highlights (2024 vs. 2023) | Metric | 2024 (%) | 2023 (%) | | :------------------------------------ | :--- | :--- | | Yield on Total earning assets | 5.18 % | 5.02 % | | Rate on Total interest-bearing liabilities | 2.50 % | 1.84 % | | Net interest spread | 2.68 % | 3.18 % | | Net interest income/margin FTE basis | 3.54 % | 3.90 % | - The rate for total deposit costs increased significantly to **1.56%** in 2024 from **0.99%** in 2023[33](index=33&type=chunk) - The yield on total loans, net of unearned income, increased to **5.93%** in 2024 from **5.86%** in 2023[30](index=30&type=chunk) [Pre-Tax Pre-Provision Income ("PPI") and Adjusted PPI (non-GAAP)](index=15&type=section&id=Pre-Tax%20Pre-Provision%20Income%20(%22PPI%22)%20and%20Adjusted%20PPI%20(non-GAAP)) [Quarterly PPI and Adjusted PPI](index=15&type=section&id=Quarterly%20PPI%20and%20Adjusted%20PPI) Pre-tax pre-provision income (non-GAAP) increased to **$777 million** in Q4 2024, showing strong QoQ and YoY growth Quarterly PPI and Adjusted PPI ($ millions) | Metric | 12/31/2024 | 9/30/2024 | 12/31/2023 | 4Q24 vs. 3Q24 (%) | 4Q24 vs. 4Q23 (%) | | :------------------------------------ | :--------- | :-------- | :--------- | :---------------- | :---------------- | | Pre-tax pre-provision income (non-GAAP) ($ millions) | $777 | $721 | $626 | 7.8 | 24.1 | | Adjusted pre-tax pre-provision income (non-GAAP) ($ millions) | $816 | $799 | $774 | 2.1 | 5.4 | - Key adjustments to PPI included a **$30 million** securities loss (net) in Q4 2024, a significant improvement from a **$78 million** loss in Q3 2024[35](index=35&type=chunk) - The FDIC insurance special assessment reflected a reduction to the accrual in Q4 2024 and Q3 2024, contrasting with a large expense in Q4 2023[35](index=35&type=chunk)[36](index=36&type=chunk) [Annual PPI and Adjusted PPI](index=15&type=section&id=Annual%20PPI%20and%20Adjusted%20PPI) Annual pre-tax pre-provision income (non-GAAP) decreased by **10.1%** to **$2,841 million** in 2024 Annual PPI and Adjusted PPI ($ millions) | Metric | 2024 | 2023 | 2024 vs. 2023 (%) | | :------------------------------------ | :--- | :--- | :---------------- | | Pre-tax pre-provision income (non-GAAP) ($ millions) | $2,841 | $3,160 | (10.1) | | Adjusted pre-tax pre-provision income (non-GAAP) ($ millions) | $3,064 | $3,317 | (7.6) | - The annual decline was largely influenced by a **$208 million** securities loss (net) in 2024, compared to a **$5 million** loss in 2023[35](index=35&type=chunk) - FDIC insurance special assessment adjustments significantly impacted the year-over-year comparison, with a **$103 million** reduction in 2024 compared to 2023[35](index=35&type=chunk) [Non-Interest Income, Mortgage Income, Wealth Management Income and Capital Markets Income](index=16&type=section&id=Non-Interest%20Income%2C%20Mortgage%20Income%2C%20Wealth%20Management%20Income%20and%20Capital%20Markets%20Income) [Quarterly Non-Interest Income Breakdown](index=16&type=section&id=Quarterly%20Non-Interest%20Income%20Breakdown) Total non-interest income increased by **2.3%** QoQ to **$585 million** in Q4 2024, driven by capital markets and MSR impact Quarterly Non-Interest Income ($ millions) | Income Category | 12/31/2024 | 9/30/2024 | 12/31/2023 | 4Q24 vs. 3Q24 (%) | 4Q24 vs. 4Q23 (%) | | :------------------------------------ | :--------- | :-------- | :--------- | :---------------- | :---------------- | | Service charges on deposit accounts ($ millions) | $155 | $158 | $143 | (1.9) | 8.4 | | Card and ATM fees ($ millions) | $113 | $118 | $127 | (4.2) | (11.0) | | Wealth management income ($ millions) | $126 | $128 | $117 | (1.6) | 7.7 | | Capital markets income ($ millions) | $97 | $92 | $48 | 5.4 | 102.1 | | Mortgage income ($ millions) | $35 | $36 | $31 | (2.8) | 12.9 | | Securities gains (losses), net ($ millions) | $(30) | $(78) | $(2) | 61.5 | NM | | **Total non-interest income ($ millions)** | **$585** | **$572** | **$580** | **2.3** | **0.9** | - Capital markets income surged by **102.1%** year-over-year, reaching **$97 million** in Q4 2024[37](index=37&type=chunk) - Mortgage income increased by **12.9%** YoY, primarily due to a significant fair value increase in MSRs (Mortgage Servicing Rights) offsetting hedge losses[37](index=37&type=chunk)[38](index=38&type=chunk) [Annual Non-Interest Income Breakdown](index=17&type=section&id=Annual%20Non-Interest%20Income%20Breakdown) Total non-interest income remained flat at **$2,265 million** in 2024, with capital markets and mortgage income growth offset by securities losses Annual Non-Interest Income ($ millions) | Income Category | 2024 | 2023 | 2024 vs. 2023 (%) | | :------------------------------------ | :--- | :--- | :---------------- | | Service charges on deposit accounts ($ millions) | $612 | $592 | 3.4 | | Card and ATM fees ($ millions) | $467 | $504 | (7.3) | | Wealth management income ($ millions) | $495 | $451 | 9.8 | | Capital markets income ($ millions) | $348 | $222 | 56.8 | | Mortgage income ($ millions) | $146 | $109 | 33.9 | | Securities gains (losses), net ($ millions) | $(208)| $(5) | NM | | **Total non-interest income ($ millions)** | **$2,265**| **$2,256**| **0.4** | - Capital markets income increased by **56.8%** year-over-year, contributing significantly to non-interest income[44](index=44&type=chunk) - Mortgage income grew by **33.9%** year-over-year, driven by increases in production and sales, and loan servicing income[44](index=44&type=chunk)[45](index=45&type=chunk) [Non-Interest Expense](index=18&type=section&id=Non-Interest%20Expense) [Quarterly Non-Interest Expense Breakdown](index=18&type=section&id=Quarterly%20Non-Interest%20Expense%20Breakdown) Total non-interest expense decreased by **2.9%** QoQ to **$1,038 million** in Q4 2024, driven by lower salaries and FDIC assessments Quarterly Non-Interest Expense ($ millions) | Expense Category | 12/31/2024 | 9/30/2024 | 12/31/2023 | 4Q24 vs. 3Q24 (%) | 4Q24 vs. 4Q23 (%) | | :------------------------------------ | :--------- | :-------- | :--------- | :---------------- | :---------------- | | Salaries and employee benefits ($ millions) | $617 | $645 | $608 | (4.3) | 1.5 | | Equipment and software expense ($ millions) | $104 | $101 | $102 | 3.0 | 2.0 | | Net occupancy expense ($ millions) | $67 | $69 | $71 | (2.9) | (5.6) | | FDIC insurance assessments ($ millions) | $20 | $17 | $147 | 17.6 | (86.4) | | Operational losses ($ millions) | $16 | $19 | $29 | (15.8) | (44.8) | | **Total non-interest expense ($ millions)** | **$1,038** | **$1,069**| **$1,185** | **(2.9)** | **(12.4)** | - FDIC insurance assessments decreased significantly by **86.4%** YoY, reflecting a reduction to the Company's FDIC special assessment accrual[50](index=50&type=chunk) - Salaries and employee benefits decreased by **4.3%** QoQ, contributing to the overall expense reduction[50](index=50&type=chunk) [Annual Non-Interest Expense Breakdown](index=18&type=section&id=Annual%20Non-Interest%20Expense%20Breakdown) Total non-interest expense decreased by **3.9%** to **$4,242 million** in 2024, primarily due to reduced FDIC assessments and operational losses Annual Non-Interest Expense ($ millions) | Expense Category | 2024 | 2023 | 2024 vs. 2023 (%) | | :------------------------------------ | :--- | :--- | :---------------- | | Salaries and employee benefits ($ millions) | $2,529 | $2,416 | 4.7 | | FDIC insurance assessments ($ millions) | $109 | $228 | (52.2) | | Operational losses ($ millions) | $95 | $212 | (55.2) | | **Total non-interest expense ($ millions)** | **$4,242**| **$4,416**| **(3.9)** | - FDIC insurance assessments decreased by **52.2%** year-over-year, reflecting accrual reductions[50](index=50&type=chunk) - Operational losses decreased by **55.2%** year-over-year, contributing significantly to the overall expense reduction[50](index=50&type=chunk) [Reconciliation of GAAP Financial Measures to non-GAAP Financial Measures](index=19&type=section&id=Reconciliation%20of%20GAAP%20Financial%20Measures%20to%20non-GAAP%20Financial%20Measures) [Adjusted Efficiency Ratios, Adjusted Fee Income Ratios, Adjusted Non-Interest Income/Expense, Adjusted Operating Leverage Ratios, and Adjusted Total Revenue](index=19&type=section&id=Adjusted%20Efficiency%20Ratios%2C%20Adjusted%20Fee%20Income%20Ratios%2C%20Adjusted%20Non-Interest%20Income%2FExpense%2C%20Adjusted%20Operating%20Leverage%20Ratios%2C%20and%20Adjusted%20Total%20Revenue) Adjusted efficiency ratio (non-GAAP) improved to **55.4%** in Q4 2024, indicating better operational efficiency and decreased expenses Quarterly Adjusted Ratios (Q4 2024 vs. Q3 2024 vs. Q4 2023) | Metric | 12/31/2024 | 9/30/2024 | 12/31/2023 | | :------------------------------------------------ | :--------- | :-------- | :--------- | | Adjusted non-interest expense (non-GAAP) ($ millions) | $1,029 | $1,069 | $1,038 | | Adjusted total revenue, taxable equivalent basis (non-GAAP) ($ millions) | $1,858 | $1,880 | $1,825 | | Adjusted efficiency ratio (non-GAAP) (%) | 55.4 % | 56.9 % | 56.9 % | | Adjusted fee income ratio (non-GAAP) (%) | 33.1 % | 34.6 % | 31.8 % | - Adjustments to non-interest expense included a **$2 million** reduction in FDIC insurance special assessment accrual in Q4 2024[54](index=54&type=chunk) - For the full year 2024, the adjusted efficiency ratio (non-GAAP) was **57.6%**, an increase from **55.9%** in 2023, while adjusted total revenue (non-GAAP) decreased by **3.8%**[57](index=57&type=chunk) [Return Ratios](index=21&type=section&id=Return%20Ratios) Return on average tangible common shareholders' equity (non-GAAP) increased to **19.19%** in Q4 2024, showing improved profitability Quarterly Return Ratios (Q4 2024 vs. Q3 2024 vs. Q4 2023) | Metric | 12/31/2024 | 9/30/2024 | 12/31/2023 | | :------------------------------------------------ | :--------- | :-------- | :--------- | | Return on average common shareholders' equity (GAAP)* (%) | 12.39 % | 10.88 % | 9.95 % | | Return on average tangible common shareholders' equity (non-GAAP)* (%) | 19.19 % | 16.87 % | 16.57 % | | Return on average tangible common shareholders' equity excluding AOCI (non-GAAP)* (%) | 15.46 % | 13.69 % | 11.45 % | - For the full year 2024, return on average tangible common shareholders' equity (non-GAAP) was **17.77%**, down from **21.93%** in 2023[61](index=61&type=chunk) [Tangible Common Ratios](index=22&type=section&id=Tangible%20Common%20Ratios) Tangible common shareholders' equity to tangible assets (non-GAAP) was **6.86%** in Q4 2024, a decrease from Q3 2024 Quarterly Tangible Common Ratios (Q4 2024 vs. Q3 2024 vs. Q4 2023) | Metric | 12/31/2024 | 9/30/2024 | 12/31/2023 | | :------------------------------------------------ | :--------- | :-------- | :--------- | | Tangible common shareholders' equity (non-GAAP) ($ millions) | $10,388 | $11,172 | $9,944 | | Tangible common shareholders' equity to tangible assets (non-GAAP) (%) | 6.86 % | 7.37 % | 6.79 % | | Tangible common book value per share (non-GAAP) | $11.42 | $12.26 | $10.77 | - The decrease in tangible common shareholders' equity to tangible assets was primarily due to a decrease in tangible common shareholders' equity[64](index=64&type=chunk) [Common Equity Tier 1 (CET1) Ratios](index=22&type=section&id=Common%20Equity%20Tier%201%20(CET1)%20Ratios) Estimated Common Equity Tier 1 (CET1) ratio increased to **10.8%** in Q4 2024, while the adjusted ratio was **8.8%** Quarterly CET1 Ratios (Q4 2024 vs. Q3 2024 vs. Q4 2023) | Metric | 12/31/2024 | 9/30/2024 | 12/31/2023 | | :------------------------------------------------ | :--------- | :-------- | :--------- | | Common equity Tier 1 (estimated) ($ millions) | $13,434 | $13,185 | $12,976 | | Total risk-weighted assets (estimated) ($ millions) | $124,493 | $124,645 | $126,475 | | Common equity Tier 1 ratio (estimated) (%) | 10.8 % | 10.6 % | 10.3 % | | Adjusted common equity Tier 1 ratio (non-GAAP) (estimated) (%) | 8.8 % | 9.1 % | 8.3 % | - The adjusted CET1 ratio decreased QoQ due to a larger AOCI loss on securities in Q4 2024[66](index=66&type=chunk) [Credit Quality](index=23&type=section&id=Credit%20Quality) [Allowance for Credit Losses, Net Charge-Offs and Related Ratios](index=23&type=section&id=Allowance%20for%20Credit%20Losses%2C%20Net%20Charge-Offs%20and%20Related%20Ratios) Allowance for Credit Losses remained stable at **$1,729 million** in Q4 2024, with net charge-offs increasing slightly QoQ Quarterly Net Charge-Offs by Loan Category ($ millions) | Loan Category | 12/31/2024 | 9/30/2024 | 12/31/2023 | | :------------------------------------ | :--------- | :-------- | :--------- | | Commercial and industrial ($ millions) | $39 | $55 | $34 | | Total business ($ millions) | $64 | $68 | $34 | | Total consumer ($ millions) | $55 | $49 | $98 | | **Total Net charge-offs ($ millions)** | **$119** | **$117** | **$132** | Key Credit Ratios (Q4 2024 vs. Q3 2024 vs. Q4 2023) | Metric | 12/31/2024 | 9/30/2024 | 12/31/2023 | | :------------------------------------------------ | :--------- | :-------- | :--------- | | ACL/Loans, net (%) | 1.79 % | 1.79 % | 1.73 % | | Allowance for credit losses to non-performing loans, excluding loans held for sale (%) | 186 % | 210 % | 211 % | | Net charge-offs as a % of average loans, annualized (%) | 0.49 % | 0.48 % | 0.54 % | - For the full year 2024, net charge-offs were **$458 million**, up from **$397 million** in 2023, with the net loan charge-offs as a % of average loans increasing to **0.47%** from **0.40%**[72](index=72&type=chunk) [Adjusted Net Charge-offs and Ratio (non-GAAP)](index=25&type=section&id=Adjusted%20Net%20Charge-offs%20and%20Ratio%20(non-GAAP)) Adjusted net loan charge-offs (non-GAAP) for Q4 2024 were **$119 million**, consistent with GAAP figures due to no loan sale adjustments Adjusted Net Charge-offs ($ millions) and Ratio (Q4 2024 vs. Q4 2023) | Metric | 12/31/2024 | 12/31/2023 | | :------------------------------------------------ | :--------- | :--------- | | Net loan charge-offs (GAAP) ($ millions) | $119 | $132 | | Less: charge-offs associated with the sale of loans ($ millions) | — | $35 | | Adjusted net loan charge-offs (non-GAAP) ($ millions) | $119 | $97 | | Adjusted net loan charge-offs as a % of average loans, annualized (non-GAAP) (%) | 0.49 % | 0.39 % | - In Q4 2023, **$35 million** in charge-offs were associated with the sale of a loan portfolio, which is excluded from the adjusted non-GAAP measure[73](index=73&type=chunk)[74](index=74&type=chunk) - For the full year 2024, adjusted net loan charge-offs were **$458 million**, with an adjusted ratio of **0.47%**, compared to **$362 million** and **0.37%** in 2023[74](index=74&type=chunk) [Non-Accrual Loans, Early and Late Stage Delinquencies](index=26&type=section&id=Non-Accrual%20Loans%2C%20Early%20and%20Late%20Stage%20Delinquencies) Non-performing loans increased to **$928 million** in Q4 2024, representing **0.96%** of total loans, with commercial real estate rising Non-Performing Loans (Excludes Loans Held for Sale) ($ millions) | Loan Category | 12/31/2024 | 9/30/2024 | 12/31/2023 | | :------------------------------------ | :--------- | :-------- | :--------- | | Commercial and industrial ($ millions) | $408 | $430 | $471 | | Commercial investor real estate mortgage ($ millions) | $423 | $287 | $233 | | Total non-performing loans ($ millions) | $928 | $821 | $805 | | Non-performing loans as % of loans (%) | 0.96 % | 0.85 % | 0.82 % | Total Delinquencies ($ millions) | Delinquency Stage | 12/31/2024 | 9/30/2024 | 12/31/2023 | | :------------------------------------ | :--------- | :-------- | :--------- | | Accruing 30-89 Days Past Due Loans ($ millions) | $367 | $369 | $330 | | Accruing 90+ Days Past Due Loans ($ millions) | $166 | $183 | $171 | | **Total delinquencies ($ millions)** | **$533** | **$552** | **$501** | - Commercial investor real estate mortgage non-performing loans increased significantly to **$423 million** in Q4 2024 from **$287 million** in Q3 2024[75](index=75&type=chunk) [Forward-Looking Statements](index=27&type=section&id=Forward-Looking%20Statements) [Risks and Uncertainties](index=27&type=section&id=Risks%20and%20Uncertainties) Key risks include economic conditions, interest rate volatility, regulatory changes, technological advancements, and operational risks like cybersecurity - Current and future economic and market conditions, including property values, interest rates, unemployment, and inflation, may adversely affect lending and financial results[80](index=80&type=chunk) - Changes in market interest rates or capital markets could impact revenue, expenses, asset values, and the availability and cost of capital and liquidity[80](index=80&type=chunk) - The ability to effectively compete with traditional and non-traditional financial services companies, including fintechs, and to keep pace with technological changes, including AI, is crucial for future success[80](index=80&type=chunk) - Operational risks, such as data security breaches, malware, ransomware, and failures of third-party infrastructure, could disrupt businesses and lead to financial losses or reputational harm[80](index=80&type=chunk)[85](index=85&type=chunk)

Regions Financial Corporation (RF) is scheduled to report fourth-quarter 2024 results on Jan. 17, before the opening bell. Quarterly earnings and revenues are expected to have registered year-over-year growth in the to-be-reported quarter.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.This Birmingham, AL-based player’s third-quarter 2024 earnings beat the Zacks Consensus Estimate, driven by a decline in expenses and an increase in non-interest income. However, a decrease in net int ...

Wall Street analysts expect Regions Financial (RF) to post quarterly earnings of $0.55 per share in its upcoming report, which indicates a year-over-year increase of 5.8%. Revenues are expected to be $1.85 billion, up 2.4% from the year-ago quarter.The consensus EPS estimate for the quarter has been revised 0.4% higher over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.Prior to a company's ...

Core Viewpoint - Regions Financial (RF) is positioned well to potentially beat earnings estimates in its upcoming quarterly report, supported by a solid history of exceeding expectations [1]. Earnings Performance - Regions Financial has a strong track record of surpassing earnings estimates, with an average surprise of 6.83% over the last two quarters [2]. - In the last reported quarter, the company achieved earnings of $0.57 per share, exceeding the Zacks Consensus Estimate of $0.53 per share, resulting in a surprise of 7.55% [3]. - For the previous quarter, Regions Financial was expected to report earnings of $0.49 per share but delivered $0.52 per share, yielding a surprise of 6.12% [3]. Earnings Estimates and Predictions - Recent estimates for Regions Financial have been trending upward, with a positive Zacks Earnings ESP (Expected Surprise Prediction) indicating a strong likelihood of an earnings beat [5]. - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests that stocks with this profile have a nearly 70% chance of producing a positive surprise [6]. - Regions Financial currently has an Earnings ESP of +0.25%, reflecting increased analyst optimism regarding the company's earnings prospects [8]. Upcoming Earnings Report - The next earnings report for Regions Financial is anticipated to be released on January 17, 2025 [8].

Regions Financial (RF) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.The power ...

Core Viewpoint - Regions Financial Corporation (RF) has shown significant stock performance, with an 81.8% increase over the past year, outperforming its industry and peers [1][4]. Price Performance - RF shares reached a 52-week high of $27.32 before closing at $27.28 [1]. Factors Driving RF Stock - Regulatory changes following the recent U.S. presidential elections are expected to ease restrictions on banks, potentially increasing Regions Financial's fee income [4][5]. - The Federal Reserve's interest rate cuts are anticipated to stabilize funding costs, supporting net interest income (NII) growth, which has seen a CAGR of 7.3% over the past five years [6]. - Management projects modest NII growth from $1.23 billion in Q3 2024 [6]. Liquidity and Capital Distribution - As of September 30, 2024, Regions Financial reported total debt of $7.52 billion and liquidity sources of $62 billion, indicating a strong liquidity profile [7]. - The bank has increased its quarterly common stock dividend by 4% to 25 cents per share and has a share repurchase program of up to $2.5 billion, with $193 million repurchased in the first nine months of 2024 [8][9]. Loan Growth - Regions Financial has experienced a CAGR of 3.4% in loan balances over the past five years, with expectations for future growth driven by its strategic market presence [10]. Valuation Perspective - Despite the stock's recent rally, RF is considered inexpensive relative to the industry, with a forward P/E multiple of 12.05X compared to the industry's 13.44X [11]. - The stock is viewed as undervalued, with positive estimate revisions for the current and next year [15][17].

Table of Contents or UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form10-Q ☒ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended September 30, 2024 ☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission File Number: 001-34034 | --- | --- | --- | |-----------------------------------------------------------------------------------------| ...