Regions Financial(RF) - 2025 Q1 - Quarterly Results

Financial Performance - Net interest income for Q1 2025 was $1,194 million, a decrease from$1,230 million in Q4 2024, reflecting a 2.9% decline[4] - Non-interest income increased to $590 million in Q1 2025, compared to$585 million in Q4 2024, marking a 0.9% growth[4] - Net income available to common shareholders was $465 million for Q1 2025, down from$508 million in Q4 2024, representing an 8.5% decrease[4] - The provision for credit losses was $124 million in Q1 2025, slightly up from$120 million in Q4 2024, indicating a 3.3% increase[4] - Return on average assets for Q1 2025 was 1.27%, down from 1.36% in Q4 2024[6] - The efficiency ratio for Q1 2025 was 57.9%, compared to 56.8% in Q4 2024, indicating a decline in operational efficiency[6] - Total assets increased to $159,846 million at the end of Q1 2025, up from$157,302 million at the end of Q4 2024, reflecting a 1.6% growth[4] - Total shareholders' equity increased to $18,530 million, up from$17,879 million at December 31, 2024, reflecting a growth of 3.6%[9] - Net income for Q1 2025 was $490 million, down from$534 million in Q4 2024, but up from $368 million in Q1 2024[19] - Basic earnings per share for Q1 2025 was$0.51, down from $0.56 in Q4 2024 but up from$0.37 in Q1 2024[19] Loan and Deposit Trends - Loans, net of unearned income, decreased to $95,733 million in Q1 2025 from$96,727 million in Q4 2024, a decline of 1.0%[4] - Total deposits rose to $130,971 million, an increase of$3,368 million or 2.6% from $127,603 million at December 31, 2024[9] - Total loans decreased to$95,733 million, down by $994 million or 1.0$96,727 million at December 31, 2024[10] - The allowance for loan losses remained stable at $1,613 million as of March 31, 2025, unchanged from December 31, 2024[9] - Total deposits increased to$127,687 million in Q1 2025, up 0.9% from $126,493 million in Q4 2024 and 0.4$127,126 million in Q1 2024[17] - Non-interest-bearing deposits increased by $1.305 billion (3.3$1.381 billion (3.3%) from Q1 2024[16] Credit Quality and Losses - The provision for loan losses was $123 million for the quarter, a decrease from$125 million in the previous quarter[58] - Non-performing loans, excluding loans held for sale, decreased to $843 million, down from$928 million at December 31, 2024, indicating improved asset quality[61] - Total net charge-offs for the quarter were $123 million, compared to$119 million in the previous quarter, reflecting an increase in loan losses[58] - The net loan charge-offs as a percentage of average loans, annualized, was 0.52% for the quarter, compared to 0.49% in the previous quarter[58] - Total accruing 30-89 days past due loans amounted to $333 million, representing 0.35$367 million (0.38%) at December 31, 2024[62] Operational Efficiency - Total non-interest expense remained stable at $1,039 million in Q1 2025, compared to$1,038 million in Q4 2024[19] - The efficiency ratio (GAAP) for Q1 2025 was 57.9%, compared to 56.8% in Q4 2024 and 64.3% in Q1 2024[44] - Adjusted efficiency ratio (non-GAAP) improved to 56.8% in Q1 2025 from 55.4% in Q4 2024[44] - Salaries and employee benefits increased to $625 million in Q1 2025, up 1.3$617 million in Q4 2024, but down 5.0% from $658 million in Q1 2024[40] Strategic Initiatives and Risks - The company anticipates potential impacts from economic conditions, including interest rate fluctuations and property value declines, which may affect lending and financial results[64] - The company is focused on enhancing its digital banking services to meet customer needs and respond to technological trends[64] - The company faces risks related to competition from fintechs and traditional financial institutions, which may affect its market position[64] - Changes in laws and regulations, including those affecting bank products and services, may require the company to alter business practices and could negatively impact revenue[68] - The company must invest significant managerial resources to comply with stress testing and capital planning requirements[68]