Regions Financial(US:RF) ZACKSยท2025-10-17 16:51Core Insights - Regions Financial Corporation (RF) reported third-quarter 2025 adjusted earnings per share of 63 cents, exceeding the Zacks Consensus Estimate of 60 cents and up from 57 cents in the same quarter last year [1][9] - The stock price of RF increased by 1.8% in early market trading following the earnings announcement [1] Financial Performance - Total quarterly revenues reached $1.92 billion, matching the Zacks Consensus Estimate and reflecting a 7% increase year over year [3][9] - Net interest income (NII) was $1.26 billion, up 3.2% from the previous year, with the net interest margin rising by 5 basis points to 3.59% [3] - Non-interest income increased by 15.2% year over year to $659 million [3] Expenses and Efficiency - Non-interest expenses rose by 3.2% year over year to $1.1 billion, while adjusted non-interest expenses increased by 3.9% to $1.11 billion [4] - The efficiency ratio improved to 57.2% from 59.3% in the prior-year quarter, indicating enhanced profitability [4] Loan and Deposit Trends - Total loans slightly decreased to $96.1 billion, and total deposits were $130.3 billion, showing a marginal decline from the previous quarter [5] Credit Quality - Non-performing assets as a percentage of loans decreased to 0.82% from 0.87% year over year, and non-performing loans as a percentage of net loans fell to 0.79% from 0.85% [6] - A provision for credit losses of $105 million was recorded, down 7.1% from the previous year [6] Capital Ratios - As of September 30, 2025, the Common Equity Tier 1 ratio was 10.8%, and the Tier 1 capital ratio was 11.9%, compared to 10.6% and 12% in the prior year [8] Share Repurchase - In the reported quarter, the company repurchased 10 million shares for $251 million [10] Market Position - Regions Financial's strong presence in key Southeastern and Midwest markets positions the bank to benefit from regional economic growth, supporting future loan expansion [11]