Regions Financial Q4 Earnings Miss on Higher Expenses, Stock Down

Core Viewpoint - Regions Financial Corporation's fourth-quarter 2025 adjusted earnings per share of 57 cents missed the Zacks Consensus Estimate of 61 cents and decreased from 59 cents per share in the year-ago quarter [1][8] Financial Performance - Total quarterly revenues were $1.92 billion, missing the Zacks Consensus Estimate of $1.93 billion, but rose 5.8% year over year [4] - For the full year 2025, total revenues were $7.53 billion, which also missed the Zacks Consensus Estimate of $7.54 billion, yet increased by 6.2% year over year [4] - Quarterly net interest income (NII) was $1.28 billion, up 4.1% year over year, with the net interest margin rising 15 basis points to 3.70% [4] - Non-interest income increased 9.4% year over year to $640 million, while non-interest expenses rose 5.8% year over year to $1.1 billion [5] Credit Quality and Loan Performance - Total loans decreased slightly to $95.6 billion as of December 31, 2025, while total deposits increased marginally to $131.1 billion [6] - Non-performing assets as a percentage of loans decreased to 0.75% from 0.97% in the prior-year quarter, indicating improved credit quality [7] - A provision for credit losses of $115 million was recorded, down 4.2% from the year-ago quarter [7] Capital Ratios and Share Repurchase - As of December 31, 2025, the Common Equity Tier 1 ratio remained stable at 10.8%, while the Tier 1 capital ratio fell to 11.9% from 12.2% in the prior-year quarter [10] - The company repurchased 17 million shares for $430 million during the reported quarter [11] Strategic Outlook - Regions Financial's strong presence in key Southeastern and Midwest markets positions the bank to benefit from regional economic growth, supporting future loan expansion [12] - The company's solid liquidity and lower deposit costs are expected to aid its financials, although elevated expenses and subdued mortgage income present challenges [12]