Regions Financial Q1 Earnings Top Estimates on Higher NII & Fee Income

Regions Financial Corporation RF has posted first-quarter of 2026 earnings of 62 cents per share, beating the Zacks Consensus Estimate of 61 cents. Also, this compares favorably with earnings of 54 cents per share in the year-ago quarter.Increases in non-interest income, net interest income (NII) and higher deposit balances, along with lower provisions, supported RF’s results. However, higher non-interest expenses played spoilsport.Net income (GAAP basis) available to common shareholders was $539 million, up 15.9% year over year.Regions Financial’s Revenues & Expenses RiseTotal quarterly revenues were $1.87 billion, which missed the Zacks Consensus Estimate of $1.91 billion. The top line rose 5% from the year-ago quarter.NII was $1.25 billion, up 4.5% year over year, supported by balance-sheet expansion and solid repricing dynamics. The net interest margin improved 15 basis points year over year to 3.67%, reflecting a mix of higher earning-asset yields and ongoing funding-cost management.Non-interest income rose 5.9% year over year to $625 million, with strength in service charges, wealth management income and capital markets income helping offset pressure in certain consumer-driven and other miscellaneous lines.Non-interest expenses increased 2.8% year over year to $1.07 billion. Adjusted non-interest expenses moved up 3.2% year over year to $1.07 billion. The increase was mainly due to higher salaries and employee benefits, equipment and software expenses, net occupancy expense, outside services, and professional, legal and regulatory expenses.The efficiency ratio strengthened to 56.6% from 57.9% a year ago. A lower efficiency ratio indicates improved profitability.RF Balance Sheet Expands as Business Lending Drives GrowthAs of March 31, 2026, total loans increased 2.4% on a sequential basis to $97.9 billion, supported by commercial and industrial activity, and broader business lending momentum. Total deposits were $131.9 billion, which increased marginally from the previous quarter.Regions Financial’s Credit Quality ImprovesNon-performing assets (excluding more than 90 days past due), as a percentage of loans, foreclosed properties and non-performing loans held for sale, decreased to 0.73% from the year-ago quarter’s 0.92%. Non-performing loans, excluding loans held for sale as a percentage of net loans, were 0.71%, down from 0.88% in the prior-year quarter.A provision for credit losses of $91 million was recorded in the quarter, down 26.6% from the year-ago quarter.Annualized net charge-offs, as a percentage of average loans, were 0.54% compared with 0.52% in the prior-year period.RF’s Capital Ratios DeclineAs of March 31, 2026, the Common Equity Tier 1 ratio was 10.7%, down from 10.8% as of March 31, 2025, whereas the Tier 1 capital ratio fell to 11.7% from 12.2% in the year-ago quarter.Regions Financial’s Share Repurchase UpdateIn the reported quarter, the company repurchased approximately 14 million shares for $401 million.Our Viewpoint on RFRegions Financial’s loan growth, solid deposit franchise and improving credit quality should continue supporting its financials. The company’s solid liquidity and lower deposit costs will continue to aid its financials. However, elevated expenses are expected to remain headwinds.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.Earnings Release Dates of Other BanksHuntington Bancshares Inc. HBAN is slated to report first-quarter 2026 results on April 23.Over the past seven days, the Zacks Consensus Estimate for HBAN’s quarterly earnings has been unchanged at 36 cents per share. This implies a 5.9% rise from the prior-year reported number.Hancock Whitney Corporation HWC is scheduled to release first-quarter 2026 earnings on April 21.The Zacks Consensus Estimate for HWC’s quarterly earnings has been unchanged at $1.48 per share over the past seven days. This implies a 7.3% rise from the prior-year reported number.#1 Semiconductor Stock to Buy (Not NVDA)The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.See This Stock Now for Free >>This article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks