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

Regions Financial Corporation’s RF first-quarter 2025 adjusted earnings per share of 54 cents beat the Zacks Consensus Estimate of 51 cents per share. This compares favorably with earnings of 44 cents per share in the year-ago quarter.A decrease in non-interest expenses, an increases in non-interest income and net interest income (NII) supported RF’s results. Also, Regions Financial’s strong capital position indicates its availability of adequate capital to use to deal with any unexpected losses. However, a lower loan balance and a rise in provisions were spoilsports.Net income (GAAP basis) available to common shareholders was $465 million, up 35.6% year over year.Regions Financial’s Revenues Rise, Expenses Dip Y/YTotal quarterly revenues were $1.78 billion, which missed the Zacks Consensus Estimate by 2.2%. The top line rose 2.1% from the year-ago quarter.Quarterly NII was $1.19 billion, up 0.8% year over year. However, the net interest margin declined 3 basis points to 3.52%.Non-interest income increased 4.8% year over year to $590 million.Non-interest expenses fell 8.1% year over year to $1.04 billion. Adjusted non-interest expenses moved down 5.7% year over year to $1.03 billion.The efficiency ratio was 57.9% in the first quarter compared with 64.3% in the prior-year quarter. A rise in this ratio indicates lower profitability.RF’s Loans Decline, Deposit Balance Rises SequentiallyAs of March 31, 2025, total loans decreased 0.3% on a sequential basis to $96.1 billion. Total deposits were $127.7 billion, which increased 0.9% from the previous quarter.Regions Financial’s Credit Quality MixedNon-performing assets (excluding more than 90 past due), as a percentage of loans, foreclosed properties and non-performing loans held for sale, decreased to 0.92% from the prior-year quarter’s 0.95%. Non-performing loans, excluding loans held for sale as a percentage of net loans, were 0.88%, down from 0.94% in the prior-year quarter.A provision for credit losses of $124 million was recorded in the quarter, up 18.4% from the year-ago quarter.Adjusted net charge-offs, as a percentage of average loans, were 0.52% compared with 0.50% in the prior-year period.RF’s Capital Ratios Improve Y/YAs of March 31, 2025, the Common Equity Tier 1 ratio and the Tier 1 capital ratio were 10.8% and 12.2%, respectively, compared with 10.3% and 11.6% in the year-earlier quarter.Regions Financial’s Share Repurchase UpdateIn the reported quarter, the company repurchased 10.4 million shares for $242 million.Our Viewpoint on RFRegions Financial’s attractive core business and revenue-diversification strategies will likely yield stellar earnings in the upcoming period. The company’s robust capital planning process is intended to ensure the efficient use of capital to support lending activities and business growth opportunities and offer suitable shareholder returns. However, declining loans, along with a rise in provisions, are concerning.Regions Financial Corporation Price, Consensus and EPS Surprise  Regions Financial Corporation price-consensus-eps-surprise-chart | Regions Financial Corporation QuoteCurrently, Regions Financial carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Performance of Other BanksCitizens Financial Group CFG reported first-quarter 2025 adjusted earnings per share of 77 cents, which surpassed the Zacks Consensus Estimate of 75 cents. The metric rose 18.4% from the year-ago quarter.  (Find the latest earnings estimates and surprises on Zacks Earnings Calendar.)CFG’s results benefited from a rise in non-interest income, along with reduced expenses. A strong capital position was another positive. However, lower net interest income and declining loan balances were major headwinds.Hancock Whitney Corp.’s HWC first-quarter 2025 earnings per share of $1.38 exceeded the Zacks Consensus Estimate and the year-ago figure of $1.28. HWC’s results benefited from an increase in non-interest income and NII. Lower provisions were other positives. However, higher adjusted expenses and lower loan and deposit balances were headwinds.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Regions Financial Corporation (RF): Free Stock Analysis Report Citizens Financial Group, Inc. (CFG): Free Stock Analysis Report Hancock Whitney Corporation (HWC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks