Regions Financial Q3 Earnings Top on High NII & Fee Income, Stock Up

Regions Financial Corporation’s RF third-quarter 2025 adjusted earnings per share of 63 cents beat the Zacks Consensus Estimate of 60 cents. This compares favorably with earnings of 57 cents per share in the year-ago quarter.Shares of RF are trending 1.8% higher in the early market trading session today.An increase in non-interest income and net interest income (NII) alongside lower provisions supported RF’s results. However, a lower loan and deposit balance, along with higher non-interest expenses, played spoilsport.Net income (GAAP basis) available to common shareholders was $548 million, up 22.9% year over year.Regions Financial’s Revenues & Expenses Rise Y/YTotal quarterly revenues were $1.92 billion, which matched the Zacks Consensus Estimate. The top line rose 7% from the year-ago quarter.Quarterly NII was $1.26 billion, up 3.2% year over year. Further, the net interest margin rose 5 basis points to 3.59%.Non-interest income increased 15.2% year over year to $659 million.Non-interest expenses increased 3.2% year over year to $1.1 billion. Adjusted non-interest expenses moved up 3.9% year over year to $1.11 billion.The efficiency ratio was 57.2% in the third quarter compared with 59.3% in the prior-year quarter. A decline in the efficiency ratio indicates an increase in profitability.RF’s Loans & Deposits Decline SequentiallyAs of Sept. 30, 2025, total loans decreased slightly on a sequential basis to $96.1 billion. Total deposits were $130.3 billion, which decreased 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 0.82% from the prior-year quarter’s 0.87%. Non-performing loans, excluding loans held for sale as a percentage of net loans, were 0.79%, down from 0.85% in the prior-year quarter.A provision for credit losses of $105 million was recorded in the quarter, down 7.1% from the year-ago quarter.Annualized net charge-offs, as a percentage of average loans, were 0.55% compared with 0.48% in the prior-year period.RF’s Capital Ratios: Mixed BagAs of Sept. 30, 2025, the Common Equity Tier 1 ratio and the Tier 1 capital ratio were 10.8% and 11.9%, respectively, compared with 10.6% and 12% in the year-earlier quarter.Regions Financial’s Share Repurchase UpdateIn the reported quarter, the company repurchased 10 million shares for $251 million.Our Viewpoint on RFRegions Financial’s strong presence in key Southeastern and Midwest markets positions the bank to benefit from regional economic growth, supporting future loan expansion. The company’s solid liquidity and lower deposit costs will continue to aid its financials. However, elevated expenses and subdued mortgage income are challenges. 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 BanksKeyCorp’s KEY third-quarter 2025 adjusted earnings per share (EPS) from continuing operations of 41 cents surpassed the Zacks Consensus Estimate of 38 cents. The bottom line reflected a 36.7% jump from the prior-year quarter.KEY’s results primarily benefited from higher NII and a substantial rise in non-interest income. The average loan balance increased sequentially, which was another positive. However, higher expenses and a rise in provisions were the undermining factors.Hancock Whitney Corp.’s HWC third-quarter 2025 EPS of $1.49 exceeded the Zacks Consensus Estimate of $1.41. Further, the bottom line rose 12% from the prior year quarter.Results benefited from an increase in non-interest income and NII alongside lower provisions. Also, higher loans were another positive. However, higher expenses alongside lower deposit balances were headwinds.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>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 KeyCorp (KEY): 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