Regions Financial(US:RF)2026-01-16 11:01Financial Performance - For Q4 2025, Regions Financial reported net interest income of $1,281 million, an increase from $1,257 million in Q3 2025[4] - Non-interest income for Q4 2025 was $640 million, slightly down from $659 million in Q3 2025[4] - Net income available to common shareholders for Q4 2025 was $514 million, a decrease from $548 million in Q3 2025[4] - The diluted earnings per share for Q4 2025 was $0.58, down from $0.61 in Q3 2025[4] - The company reported an adjusted net income available to common shareholders of $504 million for Q4 2025, down from $561 million in Q3 2025[4] - Net income for Q4 2025 was $534 million, a decrease from $569 million in Q3 2025 but equal to Q4 2024[21] - Net income available to common shareholders for the year ended December 31, 2025, was $2,061 million, representing a 16.2% increase from $1,774 million in 2024[38] - Net income for 2025 was $2,156 million, representing a 13.9% increase from $1,893 million in 2024[24] - Earnings per common share increased to $2.31 in 2025, up from $1.94 in 2024, reflecting a growth of 19.0%[24] Asset and Deposit Trends - Total assets at the end of Q4 2025 were $159,553 million, a slight decrease from $159,940 million in Q3 2025[4] - Total deposits increased to $131,128 million in Q4 2025, up from $130,334 million in Q3 2025[4] - Total deposits for Regions Financial Corporation increased to $129,850 million in Q4 2025, up 0.2% from Q3 2025 and 2.7% from Q4 2024[19] - Total deposits increased by $794 million (0.6%) from Q3 2025 to $131,128 million in Q4 2025, and increased by $3,525 million (2.8%) year-over-year from Q4 2024[18] - Wealth Management Segment deposits increased by $690 million (9.0%) from Q3 2025 to $8,344 million in Q4 2025, and increased by $608 million (7.9%) year-over-year from Q4 2024[18] Loan Performance - Total loans decreased by $996 million (1.0%) from Q3 2025 to $95,651 million in Q4 2025, and decreased by $757 million (0.8%) year-over-year from Q4 2024[16] - Net loans stood at $94.081 billion as of December 31, 2025, compared to $95.114 billion in 2024[10] - Total loans, net of unearned income, amounted to $96.077 billion, generating interest income of $1.389 billion at a yield of 5.75%[29] - Total business loans decreased to $63,004 million, a decline of $420 million or 0.7% from the previous quarter and down $551 million or 0.9% year-over-year[12] - Commercial and industrial loans amounted to $48,790 million, down $444 million or 0.9% from the previous quarter and down $881 million or 1.8% year-over-year[12] Credit Quality - The provision for credit losses was $115 million in Q4 2025, compared to $105 million in Q3 2025[4] - The allowance for credit losses stood at $1,686 million at the end of Q4 2025, down from $1,713 million in Q3 2025[4] - Non-performing loans as a percentage of total loans decreased to 0.73% in Q4 2025 from 0.96% in Q4 2024[10] - Total non-performing loans decreased to $698 million (0.73%) as of December 31, 2025, down from $758 million (0.79%) in the previous quarter[80] - Total commercial net charge-offs were $82 million for the quarter, up from $47 million in the previous quarter[76] Efficiency and Expenses - Efficiency ratio improved to 56.9% in 2025 from 59.5% in 2024[10] - Total non-interest expense for 2025 was $4,313 million, slightly higher than $4,242 million in 2024, indicating a 1.7% increase[24] - The adjusted efficiency ratio, a measure of productivity, is calculated as non-interest expense divided by total revenue, providing insights into the company's performance[59] - Total non-interest expense for the fourth quarter of 2025 was $1,098 million, a decrease of $5 million or 0.5% from $1,103 million in the previous quarter[56] Strategic Focus and Risks - The company anticipates potential declines in property values and increases in interest rates, which may adversely affect lending and financial results[1] - The company reported a significant risk related to changes in market interest rates, which could impact revenue and expenses[1] - The company highlighted the importance of managing credit risk and the potential impairment of loan collectability[1] - The company faces challenges in attracting and retaining deposits due to competitive pressures and changing consumer behaviors[1] - The company is committed to executing its strategic and operational plans to realize financial benefits from its initiatives[1]