Regions Financial Q1 Earnings Beat, Non-Interest Income & NII Rise Y/Y (Revised)

Core Viewpoint - Regions Financial Corporation's first-quarter 2025 adjusted earnings per share of 54 cents exceeded the Zacks Consensus Estimate of 51 cents, showing an improvement from 44 cents in the same quarter last year [1] Financial Performance - Total quarterly revenues were $1.78 billion, missing the Zacks Consensus Estimate by 2.2%, but increased by 2.1% year over year [3] - Net interest income (NII) was $1.19 billion, up 0.8% year over year, while the net interest margin declined by 3 basis points to 3.52% [3] - Non-interest income rose by 4.8% year over year to $590 million [3] - Non-interest expenses decreased by 8.1% year over year to $1.04 billion, with adjusted non-interest expenses down 5.7% to $1.03 billion [4] Loan and Deposit Trends - Total loans decreased by 0.3% sequentially to $96.1 billion, while total deposits increased by 0.9% to $127.7 billion [5] Credit Quality - Non-performing assets as a percentage of loans decreased to 0.92% from 0.95% year over year, and non-performing loans as a percentage of net loans fell to 0.88% from 0.94% [6] - A provision for credit losses of $124 million was recorded, down 18.4% from the previous year [6] Capital Ratios - As of March 31, 2025, the Common Equity Tier 1 ratio was 10.8%, and the Tier 1 capital ratio was 12.2%, both showing improvement from the previous year [8] Share Repurchase Activity - The company repurchased 10.4 million shares for $242 million during the reported quarter [9] Future Outlook - The company's core business and revenue-diversification strategies are expected to yield strong earnings in the future, although declining loans present a concern [11]