Regions Financial Q4 Earnings Miss on Higher Expenses, Stock Down

Regions Financial Corporation’s RF fourth-quarter 2025 adjusted earnings per share of 57 cents missed the Zacks Consensus Estimate of 61 cents. Also, this compares unfavorably with earnings of 59 cents per share in the year-ago quarter.

An increase in non-interest income, net interest income (NII) and higher deposit balances, along with lower provisions, supported RF’s results. However, a lower loan balance, along with higher non-interest expenses, played spoilsport. Given the concern, RF shares lost nearly 3% in the early trading session. A full day’s trading session will depict a clearer picture.

The results include selected items that had a net negative impact of 4 cents per share. After considering these items, net income (GAAP basis) available to common shareholders was $514 million, up 1.2% year over year.

For the full-year 2025, earnings of $2.30 per share missed the Zacks Consensus Estimate of $2.36. This compares favorably with $2.12 reported in the year-ago quarter. The company reported net income available to common shareholders was $2.1 billion, up 16.1% from the prior year.

Regions Financial’s Revenues & Expenses Rise Y/Y

Total quarterly revenues were $1.92 billion, which missed the Zacks Consensus Estimate of $1.93 billion. The top line rose 5.8% from the year-ago quarter.

For 2025, total revenues were $7.53 billion, which missed the Zacks Consensus Estimate of $7.54 billion. Nevertheless, the top line rose 6.2% year over year.

Quarterly NII was $1.28 billion, up 4.1% year over year. Further, the net interest margin rose 15 basis points to 3.70%.

Non-interest income increased 9.4% year over year to $640 million.

Non-interest expenses increased 5.8% year over year to $1.1 billion. Adjusted non-interest expenses moved up 8.1% year over year to $1.1 billion.

The efficiency ratio remained unchanged at 56.8% in the fourth quarter compared with the prior-year quarter. A lower efficiency ratio indicates improved profitability.

RF’s Loans Decline, Deposit Balance Rises Sequentially

As of Dec. 31, 2025, total loans decreased slightly on a sequential basis to $95.6 billion. Total deposits were $131.1 billion, which increased marginally from the previous quarter.

Regions Financial’s Credit Quality Improves

Non-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 0.75% from the prior-year quarter’s 0.97%. Non-performing loans, excluding loans held for sale as a percentage of net loans, were 0.73%, down from 0.96% in the prior-year quarter.

A provision for credit losses of $115 million was recorded in the quarter, down 4.2% from the year-ago quarter.

Annualized net charge-offs, as a percentage of average loans, were 0.59% compared with 0.49% in the prior-year period.

RF’s Capital Ratios: Mixed Bag

As of Dec. 31, 2025, the Common Equity Tier 1 ratio remained stable at 10.8%, whereas the Tier 1 capital ratio fell to 11.9% from 12.2% in the year-ago quarter.

Regions Financial’s Share Repurchase Update

In the reported quarter, the company repurchased 17 million shares for $430 million.

Our Viewpoint on RF

Regions 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 Quote

Currently, Regions Financial carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Earnings Release Dates of Other Banks

Citizens Financial Group, Inc. CFG is slated to report fourth-quarter 2025 results on Jan. 21. Over the past seven days, the Zacks Consensus Estimate for CFG’s quarterly earnings per share has been unchanged at $1.11. This indicates a 30.6% rise from the prior-year reported number.

Hancock Whitney Corporation HWC is scheduled to release fourth-quarter 2025 earnings on Jan. 20. 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 5.71% rise from the prior-year reported number.

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This article originally published on Zacks Investment Research (zacks.com).

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