Financial Data and Key Metrics Changes - Regions Financial Corporation reported strong full-year earnings of $1.8 billion, resulting in earnings per share of $1.93 and a return on average tangible common equity of 18% [5][6] - Net interest income grew 1% in the fourth quarter, with net interest margin increasing by 1 basis point to 3.55% [22][24] - Adjusted non-interest income declined 5% from the previous quarter but increased 9% for the full year [27][29] Business Line Data and Key Metrics Changes - Capital Markets, Wealth Management, and Treasury Management businesses generated record revenue in 2024 [5][6] - Average loans declined modestly on a sequential quarter and full-year basis, with expectations of approximately 1% average loan growth for 2025 [16][19] - Average consumer loans remained stable in the fourth quarter, with modest growth in credit cards offset by declines in other categories [19] Market Data and Key Metrics Changes - Regions operates in core markets with population growth expected to exceed the national average by more than three times [8][9] - The company has grown deposits by $12.5 billion since 2019, outpacing the market [9] Company Strategy and Development Direction - The company plans to invest in talent, technology, and markets over the next several years to drive growth and generate efficiencies [10][11] - Regions aims to add approximately 140 bankers across various segments, focusing on priority growth markets [11][12] - The company is committed to judicious expense management while investing in growth opportunities [11][29] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth, particularly in C&I lending, while acknowledging challenges in commercial real estate origination [19][120] - The company expects net charge-offs to be elevated in the first half of the year but believes they are adequately reserved for [90][91] - Management anticipates a notable pickup in lending activity in the second half of the year as economic clarity improves [17][19] Other Important Information - The company ended the quarter with an estimated common equity Tier 1 ratio of 10.8% and executed $58 million in share repurchases [34] - Adjusted non-interest expense declined 4% compared to the prior quarter, with a full-year decrease of 4% on a reported basis [29] Q&A Session Summary Question: Outlook on expenses and efficiencies - Management highlighted that 60% of expenses are salaries and benefits, and they are focused on managing headcount and vendor costs to create capacity for investments [41][43] Question: Capital management and growth - Management aims to use capital for business growth, particularly in loans, while targeting a dividend payout ratio of 40% to 50% of earnings [47][49] Question: Deposit pricing evolution - Management emphasized the importance of competitive deposit pricing and plans to lower deposit costs while growing deposits [58][60] Question: Loan growth expectations - Management indicated that loan growth is expected to be modest at around 1%, with different dynamics across loan types [19][70] Question: Fee income investments - Management is focused on identifying products and services that customers need and values, with plans to invest in mortgage servicing rights and other areas [110][111] Question: Acquisitions performance - Management expressed satisfaction with the performance of recent acquisitions, noting that while growth has been slower than expected, integration into existing operations has been positive [125][127]

Regions Financial Corporation’s (RF) fourth-quarter 2024 adjusted earnings per share of 59 cents beat the Zacks Consensus Estimate of 55 cents per share. This compares favorably with earnings of 52 cents per share in the year-ago quarter.Find the latest earnings estimates and surprises on the Zacks Earnings Calendar.A decrease in non-interest expenses and an increase in non-interest income supported RF’s results. Also, Regions Financial’s strong capital position indicates its availability of adequate capita ...

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 ...