Strategic execution of Regions' long-term plan
leads to record performance across certain businesses.
Regions Financial Corp. (NYSE:RF) today reported earnings for
the fourth quarter and full-year ended Dec. 31, 2024. The company
reported fourth quarter net income available to common shareholders
of $508 million and diluted earnings per common share of $0.56. For
the full-year 2024, the company reported net income available to
common shareholders of $1.8 billion and diluted earnings per common
share of $1.93. The company reported $1.8 billion in total revenue
during the fourth quarter, including $777 million in reported
pre-tax pre-provision income(1) and $816 million in adjusted
pre-tax pre-provision income(1). Fourth quarter results were
impacted by additional strategic securities repositioning and
severance charges.
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"This was a year of records at Regions, with our performance
driven by a consistent focus on superior service as well as
soundness, profitability, and growth. Our Capital Markets and
Wealth Management businesses, as well as our Treasury Management
products and services, all generated record revenue," said John
Turner, Chairman, President and CEO of Regions Financial Corp.
Turner added, "We are excited about the momentum we have going
into 2025 and remain focused on a solid growth plan, aided by the
continued strength of the markets where we do business and leaders
who inspire outstanding performance. Importantly, we have a team of
20,000 associates who consider the needs of our customers in every
decision we make, taking the extra steps to turn ordinary
experiences into something extraordinary. Our focus on providing
best-in-class customer service is evident by our receipt of the
Forbes Best Customer Service award. I'm proud to be part of the
Regions team and of the way we take care of our customers and
communities, and I look forward to what we will achieve together in
2025 and beyond."
SUMMARY OF FOURTH QUARTER and FULL-YEAR 2024 RESULTS:
Quarter Ended
Year Ended
(amounts in millions, except per share
data)
12/31/2024
9/30/2024
12/31/2023
2024
2023
Net income
$
534
$
490
$
391
1,893
2,074
Preferred dividends and other*
26
44
24
119
98
Net income available to common
shareholders
$
508
$
446
$
367
$
1,774
$
1,976
Weighted-average diluted shares
outstanding
915
918
931
918
938
Actual shares outstanding—end of
period
909
911
924
909
924
Diluted earnings per common share
$
0.56
$
0.49
$
0.39
$
1.93
$
2.11
Selected items impacting
earnings:
Pre-tax adjusted items(1):
Adjustments to non-interest expense(1)
$
(9
)
$
—
$
(147
)
$
(16
)
$
(154
)
Adjustments to non-interest income(1)
(30
)
(78
)
(1
)
(208
)
(3
)
Net provision benefit/(expense) from sale
of unsecured consumer loans
—
—
(8
)
—
(8
)
Total pre-tax adjusted items(1)
$
(39
)
$
(78
)
$
(156
)
$
(224
)
$
(165
)
After-tax preferred stock redemption
expense*
$
—
$
(15
)
$
—
$
(15
)
$
—
Diluted EPS impact**
$
(0.03
)
$
(0.08
)
$
(0.13
)
$
(0.19
)
$
(0.13
)
Pre-tax additional selected items***:
Incremental operational losses related to
check warranty claims
$
—
$
—
$
—
$
(22
)
$
(135
)
Visa Class B litigation escrow funding
—
14
—
14
—
*
The third quarter 2024 amount includes $15
million of deferred issuance costs recognized upon the redemption
of Series B preferred stock. Excluding the preceding adjusted item,
total third quarter 2024 preferred dividends also includes $4
million representing a partial dividend payment on the newly issued
Series F preferred stock.
**
Based on income taxes at an approximate
25% incremental rate. A second quarter 2024 adjustment to
non-interest expense for a contingent reserve release related to a
prior acquisition included a non-taxable component.
***
Items impacting results or trends during
the period, but are not considered non-GAAP adjustments.
Non-GAAP adjusted items(1) impacting the company's earnings are
identified to assist investors in analyzing Regions' operating
results on the same basis as that applied by management and provide
a basis to predict future performance.
Total revenue
Quarter Ended
($ amounts in millions)
12/31/2024
9/30/2024
12/31/2023
4Q24 vs. 3Q24
4Q24 vs. 4Q23
Net interest income
$
1,230
$
1,218
$
1,231
$
12
1.0
%
$
(1
)
(0.1
)%
Taxable equivalent adjustment
13
12
13
1
8.3
%
—
—
%
Net interest income, taxable equivalent
basis
$
1,243
$
1,230
$
1,244
$
13
1.1
%
$
(1
)
(0.1
)%
Net interest margin (FTE)
3.55
%
3.54
%
3.60
%
Non-interest income:
Service charges on deposit accounts
$
155
$
158
$
143
$
(3
)
(1.9
)%
$
12
8.4
%
Card and ATM fees
113
118
127
(5
)
(4.2
)%
(14
)
(11.0
)%
Wealth management income
126
128
117
(2
)
(1.6
)%
9
7.7
%
Capital markets income
97
92
48
5
5.4
%
49
102.1
%
Mortgage income
35
36
31
(1
)
(2.8
)%
4
12.9
%
Commercial credit fee income
28
28
27
—
—
%
1
3.7
%
Bank-owned life insurance
21
28
22
(7
)
(25.0
)%
(1
)
(4.5
)%
Market value adjustments on employee
benefit assets*
(5
)
13
12
(18
)
(138.5
)%
(17
)
(141.7
)%
Securities gains (losses), net**
(30
)
(78
)
(2
)
48
61.5
%
(28
)
NM
Other miscellaneous income
45
49
55
(4
)
(8.2
)%
(10
)
(18.2
)%
Non-interest income
$
585
$
572
$
580
$
13
2.3
%
$
5
0.9
%
Adjusted non-interest income
(non-GAAP)(1)
$
615
$
650
$
581
$
(35
)
(5.4
)%
$
34
5.9
%
Total revenue
$
1,815
$
1,790
$
1,811
$
25
1.4
%
$
4
0.2
%
Adjusted total revenue
(non-GAAP)(1)
$
1,845
$
1,868
$
1,812
$
(23
)
(1.2
)%
$
33
1.8
%
NM - Not Meaningful
* These market value adjustments relate to
assets held for employee and director benefits that are offset
within salaries and employee benefits and other non-interest
expense.
** The fourth and third quarters of 2024
include $30 million and $75 million, respectively, of securities
losses associated with additional securities repositioning
transactions. The third quarter of 2024 includes an additional $3
million associated with the sale of certain employee benefit
assets.
Total revenue increased 1 percent to approximately $1.82 billion
on a reported basis but decreased 1 percent to approximately $1.85
billion on an adjusted basis(1) compared to the third quarter of
2024. Net interest income increased 1 percent compared to the third
quarter as favorable deposit cost management offset lower asset
yields as the Fed began lowering interest rates. Total net interest
margin increased 1 basis point to 3.55 percent.
Non-interest income increased 2 percent on a reported basis but
decreased 5 percent on an adjusted basis(1) compared to the third
quarter of 2024. With respect to adjusted items, the company
incurred $30 million in securities losses in the fourth quarter
compared to $78 million in the third quarter, largely attributable
to the execution of additional securities repositioning trades.
Unfavorable market value adjustments on assets held for employee
and director benefits contributed to the fourth quarter decrease.
Capital markets income increased 5 percent to $97 million,
attributable primarily to the timing of merger and acquisition
advisory transactions and real estate capital markets growth,
partially offset by lower debt capital markets activity.
Non-interest expense
Quarter Ended
($ amounts in millions)
12/31/2024
9/30/2024
12/31/2023
4Q24 vs. 3Q24
4Q24 vs. 4Q23
Salaries and employee benefits
$
617
$
645
$
608
$
(28
)
(4.3
)%
$
9
1.5
%
Equipment and software expense
104
101
102
3
3.0
%
2
2.0
%
Net occupancy expense
67
69
71
(2
)
(2.9
)%
(4
)
(5.6
)%
Outside services
42
41
43
1
2.4
%
(1
)
(2.3
)%
Marketing
28
28
31
—
—
%
(3
)
(9.7
)%
Professional, legal and regulatory
expenses
20
21
19
(1
)
(4.8
)%
1
5.3
%
Credit/checkcard expenses
16
14
15
2
14.3
%
1
6.7
%
FDIC insurance assessments
20
17
147
3
17.6
%
(127
)
(86.4
)%
Visa class B shares expense
6
17
6
(11
)
(64.7
)%
—
—
%
Early extinguishment of debt
—
—
(4
)
—
NM
4
100.0
%
Operational losses
16
19
29
(3
)
(15.8
)%
(13
)
(44.8
)%
Branch consolidation, property and
equipment charges
1
—
3
1
NM
(2
)
(66.7
)%
Other miscellaneous expenses
101
97
115
4
4.1
%
(14
)
(12.2
)%
Total non-interest expense
$
1,038
$
1,069
$
1,185
$
(31
)
(2.9
)%
$
(147
)
(12.4
)%
Total adjusted non-interest expense(1)
$
1,029
$
1,069
$
1,038
$
(40
)
(3.7
)%
$
(9
)
(0.9
)%
NM - Not Meaningful
Non-interest expense decreased 3 percent on a reported basis and
4 percent on a adjusted basis(1) compared to the third quarter of
2024. Fourth quarter adjusted items included $10 million in
severance costs, while the third quarter adjusted items mostly
offset. Salaries and benefits decreased 4 percent driven primarily
by lower incentive compensation and lower market value adjustments
on assets held for employee and director benefits that are offset
in non-interest income. The company also benefited from a decrease
in Visa class B shares expense associated with its proportionate
share of Visa litigation escrow funding in the third quarter.
The company's fourth quarter efficiency ratio was 56.8 percent
on a reported basis and 55.4 percent on an adjusted basis(1). The
effective tax rate was 19 percent in the fourth quarter.
Loans and Leases
Average Balances
($ amounts in millions)
4Q24
3Q24
4Q23
4Q24 vs. 3Q24
4Q24 vs. 4Q23
Commercial and industrial
$
49,357
$
49,847
$
50,939
$
(490
)
(1.0
)%
$
(1,582
)
(3.1
)%
Commercial real estate—owner-occupied
5,212
5,212
5,136
—
—
%
76
1.5
%
Investor real estate
8,656
8,759
8,772
(103
)
(1.2
)%
(116
)
(1.3
)%
Business Lending
63,225
63,818
64,847
(593
)
(0.9
)%
(1,622
)
(2.5
)%
Residential first mortgage
20,107
20,147
20,132
(40
)
(0.2
)%
(25
)
(0.1
)%
Home equity
5,527
5,530
5,663
(3
)
(0.1
)%
(136
)
(2.4
)%
Consumer credit card
1,398
1,359
1,295
39
2.9
%
103
8.0
%
Other consumer—exit portfolios
6
13
110
(7
)
(53.8
)%
(104
)
(94.5
)%
Other consumer*
6,145
6,173
6,246
(28
)
(0.5
)%
(101
)
(1.6
)%
Consumer Lending
33,183
33,222
33,446
(39
)
(0.1
)%
(263
)
(0.8
)%
Total Loans
$
96,408
$
97,040
$
98,293
$
(632
)
(0.7
)%
$
(1,885
)
(1.9
)%
NM - Not meaningful.
* Other consumer loans includes Regions'
Home Improvement Financing portfolio (formerly EnerBank).
As expected, average loans and leases remained relatively stable
compared to the prior quarter. Within the business portfolio,
average loans decreased modestly while ending loans remained
relatively stable. Within the consumer portfolio, average and
ending loans remained relatively stable as modest growth in
consumer credit card lending was offset by declines in other
categories.
Deposits
Average Balances
($ amounts in millions)
4Q24
3Q24
4Q23
4Q24 vs. 3Q24
4Q24 vs. 4Q23
Total interest-bearing deposits
$
87,069
$
86,260
$
83,247
$
809
0.9
%
$
3,822
4.6
%
Non-interest-bearing deposits
39,424
39,690
43,167
(266
)
(0.7
)%
(3,743
)
(8.7
)%
Total Deposits
$
126,493
$
125,950
$
126,414
$
543
0.4
%
$
79
0.1
%
($ amounts in millions)
4Q24
3Q24
4Q23
4Q24 vs. 3Q24
4Q24 vs. 4Q23
Consumer Bank Segment
$
78,476
$
78,904
$
79,384
$
(428
)
(0.5
)%
$
(908
)
(1.1
)%
Corporate Bank Segment
37,426
36,867
36,291
559
1.5
%
1,135
3.1
%
Wealth Management Segment
7,492
7,374
7,690
118
1.6
%
(198
)
(2.6
)%
Other
3,099
2,805
3,049
294
10.5
%
50
1.6
%
Total Deposits
$
126,493
$
125,950
$
126,414
$
543
0.4
%
$
79
0.1
%
Ending Balances as of
12/31/2024
12/31/2024
($ amounts in millions)
12/31/2024
9/30/2024
12/31/2023
vs. 9/30/2024
vs. 12/31/2023
Consumer Bank Segment
$
78,637
$
78,858
$
80,031
$
(221
)
(0.3
)%
$
(1,394
)
(1.7
)%
Corporate Bank Segment
38,361
36,955
36,883
1,406
3.8
%
1,478
4.0
%
Wealth Management Segment
7,736
7,520
7,694
216
2.9
%
42
0.5
%
Other
2,869
3,043
3,180
(174
)
(5.7
)%
(311
)
(9.8
)%
Total Deposits
$
127,603
$
126,376
$
127,788
$
1,227
1.0
%
$
(185
)
(0.1
)%
The company's deposit base continues to be a source of strength
and an industry differentiator in liquidity and margin performance.
Ending deposits increased approximately 1 percent while average
deposits remained relatively stable, consistent with normal
year-end seasonal patterns. Growth in the quarter was driven
primarily by year-end tax inflows to state, county and municipal
customers within the Corporate Bank Segment.
Asset quality
As of and for the Quarter
Ended
($ amounts in millions)
12/31/2024
9/30/2024
12/31/2023
Allowance for credit losses (ACL) at
period end
$1,729
$1,728
$1,700
ACL/Loans, net
1.79%
1.79%
1.73%
ALL/Loans, net
1.67%
1.66%
1.60%
Allowance for credit losses to
non-performing loans, excluding loans held for sale
186%
210%
211%
Allowance for loan losses to
non-performing loans, excluding loans held for sale
174%
196%
196%
Provision for credit losses
$120
$113
$155
Net loans charged-off
$119
$117
$132
Adjusted net loan charge-offs
(non-GAAP)(1)
$119
$117
$97
Net loans charged-off as a % of average
loans, annualized
0.49%
0.48%
0.54%
Adjusted net loan charge-offs as a % of
average loans, annualized (non-GAAP) (1)
0.49%
0.48%
0.39%
Non-performing loans, excluding loans held
for sale/Loans, net
0.96%
0.85%
0.82%
NPAs (ex. 90+ past due)/Loans, foreclosed
properties, and non-performing loans held for sale
0.97%
0.87%
0.84%
NPAs (inc. 90+ past due)/Loans, foreclosed
properties, and non-performing loans held for sale*
1.15%
1.06%
1.01%
Total Criticized Loans—Business
Services**
$4,716
$4,692
$4,659
*
Excludes guaranteed residential first
mortgages that are 90+ days past due and still accruing.
**
Business services represents the combined
total of commercial and investor real estate loans.
Net charge-offs were $119 million or 49 basis points of average
loans during the quarter. This represents a 1 basis point increase
from the prior quarter reflecting losses primarily from previously
identified portfolios of interest. Underlying asset quality metrics
continue to perform within the company's expectations.
Non-performing loans as a percentage of total loans increased 11
basis points to 96 basis points, due primarily to loans in
previously identified portfolios of interest specifically: office,
healthcare, transportation, and multi-family. Non-performing loans
remained modestly below the company's historical range, while
business services criticized loans remained relatively stable
compared to the prior quarter.
The allowance for credit losses ratio remained unchanged at 1.79
percent while the allowance for credit losses as a percentage of
nonperforming loans decreased to 186 percent.
Capital and liquidity
As of and for Quarter
Ended
12/31/2024
9/30/2024
12/31/2023
Common Equity Tier 1 ratio(2)
10.8%
10.6%
10.3%
Tier 1 capital ratio(2)
12.2%
12.0%
11.6%
Total shareholders' equity to total
assets
11.37%
11.86%
11.45%
Tangible common stockholders’ equity to
tangible assets (non-GAAP)(1)
6.86%
7.37%
6.79%
Common book value per share
$17.77
$18.62
$17.07
Tangible common book value per share
(non-GAAP)(1)*
$11.42
$12.26
$10.77
Loans, net of unearned income, to total
deposits
75.8%
76.6%
77.0%
* Tangible common book value per share
includes the impact of quarterly earnings and changes to market
value adjustments within accumulated other comprehensive income, as
well as continued capital returns.
Regions maintains a solid capital position with estimated
capital ratios remaining well above current regulatory
requirements. The Common Equity Tier 1(2) and Tier 1(2) capital
ratios were estimated at 10.8 percent and 12.2 percent,
respectively, at quarter-end.
Tangible common book value per share ended the quarter at
$11.42, a 6 percent increase year over year.
During the fourth quarter, the company repurchased approximately
3 million shares of common stock for a total of $58 million through
open market purchases and declared $226 million in dividends to
common shareholders.
The company's liquidity position also remains robust as of Dec.
31, 2024, with total available liquidity of approximately $62.6
billion, which includes cash held at the Federal Reserve, FHLB
borrowing capacity, unencumbered securities, and capacity at the
Federal Reserve's facilities such as the Discount window or
Standing Repo Facility. These sources are sufficient to cover
uninsured deposits at a ratio of approximately 180 percent as of
quarter end (this ratio excludes intercompany and secured
deposits).
(1)
Non-GAAP; refer to reconciliations on
pages 13, 17, 18, 19, and 21 of the financial supplement to this
earnings release.
(2)
Current quarter Common Equity Tier 1 and
Tier 1 capital ratios are estimated.
Conference Call
In addition to the live audio webcast at 10 a.m. ET on Jan. 17,
2025, an archived recording of the webcast will be available at the
Investor Relations page of ir.regions.com following the live
event.
About Regions Financial Corporation
Regions Financial Corporation (NYSE:RF), with $157 billion in
assets, is a member of the S&P 500 Index and is one of the
nation’s largest full-service providers of consumer and commercial
banking, wealth management, and mortgage products and services.
Regions serves customers across the South, Midwest and Texas, and
through its subsidiary, Regions Bank, operates approximately 1,250
banking offices and more than 2,000 ATMs. Regions Bank is an Equal
Housing Lender and Member FDIC. Additional information about
Regions and its full line of products and services can be found at
www.regions.com.
Forward-Looking Statements
This release may include forward-looking statements as defined
in the Private Securities Litigation Reform Act of 1995. The words
“future,” “anticipates,” “assumes,” “intends,” “plans,” “seeks,”
“believes,” “predicts,” “potential,” “objectives,” “estimates,”
“expects,” “targets,” “projects,” “outlook,” “forecast,” “would,”
“will,” “may,” “might,” “could,” “should,” “can,” and similar terms
and expressions often signify forward-looking statements.
Forward-looking statements are subject to the risk that the actual
effects may differ, possibly materially, from what is reflected in
those forward-looking statements due to factors and future
developments that are uncertain, unpredictable and in many cases
beyond our control. Forward-looking statements are not based on
historical information, but rather are related to future
operations, strategies, financial results or other developments.
Forward-looking statements are based on management’s current
expectations as well as certain assumptions and estimates made by,
and information available to, management at the time the statements
are made. Those statements are based on general assumptions and are
subject to various risks, and because they also relate to the
future they are likewise subject to inherent uncertainties and
other factors that may cause actual results to differ materially
from the views, beliefs and projections expressed in such
statements. Therefore, we caution you against relying on any of
these forward-looking statements. These risks, uncertainties and
other factors include, but are not limited to, those described
below:
- Current and future economic and market conditions in the United
States generally or in the communities we serve (in particular the
Southeastern United States), including the effects of possible
declines in property values, increases in interest rates and
unemployment rates, inflation, financial market disruptions and
potential reductions of economic growth, which may adversely affect
our lending and other businesses and our financial results and
conditions.
- Possible changes in trade, monetary and fiscal policies of, and
other activities undertaken by, governments, agencies, central
banks and similar organizations, which could have a material
adverse effect on our businesses and our financial results and
conditions.
- Changes in market interest rates or capital markets could
adversely affect our revenue and expense, the value of assets (such
as our portfolio of investment securities) and obligations, as well
as the availability and cost of capital and liquidity.
- Volatility and uncertainty about the direction of interest
rates and the timing of any changes, which may lead to increased
costs for businesses and consumers and potentially contribute to
poor business and economic conditions generally.
- Possible changes in the creditworthiness of customers and the
possible impairment of the collectability of loans and leases,
including operating leases.
- Changes in the speed of loan prepayments, loan origination and
sale volumes, charge-offs, credit loss provisions or actual credit
losses where our allowance for credit losses may not be adequate to
cover our eventual losses.
- Possible acceleration of prepayments on mortgage-backed
securities due to declining interest rates, and the related
acceleration of premium amortization on those securities.
- Possible changes in consumer and business spending and saving
habits and the related effect on our ability to increase assets and
to attract deposits, which could adversely affect our net
income.
- Loss of customer checking and savings account deposits as
customers pursue other, higher-yield investments, or the need to
price interest-bearing deposits higher due to competitive forces.
Either of these activities could increase our funding costs.
- Possible downgrades in our credit ratings or outlook could,
among other negative impacts, increase the costs of funding from
capital markets.
- The loss of value of our investment portfolio could negatively
impact market perceptions of us.
- Our ability to manage fluctuations in the value of assets and
liabilities and off-balance sheet exposure so as to maintain
sufficient capital and liquidity to support our businesses.
- The effects of social media on market perceptions of us and
banks generally.
- The effects of problems encountered by other financial
institutions that adversely affect us or the banking industry
generally could require us to change certain business practices,
reduce our revenue, impose additional costs on us, or otherwise
negatively affect our businesses.
- Volatility in the financial services industry (including
failures or rumors of failures of other depository institutions),
along with actions taken by governmental agencies to address such
turmoil, could affect the ability of depository institutions,
including us, to attract and retain depositors and to borrow or
raise capital.
- Our ability to effectively compete with other traditional and
non-traditional financial services companies, including fintechs,
some of which possess greater financial resources than we do or are
subject to different regulatory standards than we are.
- Our inability to develop and gain acceptance from current and
prospective customers for new products and services and the
enhancement of existing products and services to meet customers’
needs and respond to emerging technological trends in a timely
manner could have a negative impact on our revenue.
- Our inability to keep pace with technological changes,
including those related to the offering of digital banking and
financial services, could result in losing business to
competitors.
- The development and use of AI presents risks and challenges
that may impact our business.
- Our ability to execute on our strategic and operational plans,
including our ability to fully realize the financial and
nonfinancial benefits relating to our strategic initiatives.
- The risks and uncertainties related to our acquisition or
divestiture of businesses and risks related to such acquisitions,
including that the expected synergies, cost savings and other
financial or other benefits may not be realized within expected
timeframes, or might be less than projected; and difficulties in
integrating acquired businesses.
- The success of our marketing efforts in attracting and
retaining customers.
- Our ability to achieve our expense management initiatives.
- Changes in commodity market prices and conditions could
adversely affect the cash flows of our borrowers operating in
industries that are impacted by changes in commodity prices
(including businesses indirectly impacted by commodities prices
such as businesses that transport commodities or manufacture
equipment used in the production of commodities), which could
impair the ability of those borrowers to service any loans
outstanding to them and/or reduce demand for loans in those
industries.
- The effects of geopolitical instability, including wars,
conflicts, civil unrest, and terrorist attacks and the potential
impact, directly or indirectly, on our businesses.
- Fraud, theft or other misconduct conducted by external parties,
including our customers and business partners, or by our
employees.
- Any inaccurate or incomplete information provided to us by our
customers or counterparties.
- Inability of our framework to manage risks associated with our
businesses, such as credit risk and operational risk, including
third-party vendors and other service providers, which inability
could, among other things, result in a breach of operating or
security systems as a result of a cyber-attack or similar act or
failure to deliver our services effectively.
- Our ability to identify and address operational risks
associated with the introduction of or changes to products,
services, or delivery platforms.
- Dependence on key suppliers or vendors to obtain equipment and
other supplies for our businesses on acceptable terms.
- The inability of our internal controls and procedures to
prevent, detect or mitigate any material errors or fraudulent
acts.
- Our ability to identify and address cyber-security risks such
as data security breaches, malware, ransomware, “denial of service”
attacks, “hacking” and identity theft, including account
take-overs, a failure of which could disrupt our businesses and
result in the disclosure of and/or misuse or misappropriation of
confidential or proprietary information, disruption or damage to
our systems, increased costs, losses, or adverse effects to our
reputation.
- The effects of the failure of any component of our business
infrastructure provided by a third party could disrupt our
businesses, result in the disclosure of and/or misuse of
confidential information or proprietary information, increase our
costs, negatively affect our reputation, and cause losses.
- The effects of any developments, changes or actions relating to
any litigation or regulatory proceedings brought against us or any
of our subsidiaries.
- The costs, including possibly incurring fines, penalties, or
other negative effects (including reputational harm) of any adverse
judicial, administrative, or arbitral rulings or proceedings,
regulatory enforcement actions or other legal actions to which we
or any of our subsidiaries are a party, and which may adversely
affect our results.
- Changes in laws and regulations affecting our businesses,
including legislation and regulations relating to bank products and
services, such as changes to debit card interchange fees, special
FDIC assessments, any new long-term debt requirements, as well as
changes in the enforcement and interpretation of such laws and
regulations by applicable governmental and self-regulatory
agencies, including as a result of the changes in U.S. presidential
administration, control of the U.S. Congress, and changes in
personnel at the bank regulatory agencies, which could require us
to change certain business practices, increase compliance risk,
reduce our revenue, impose additional costs on us, or otherwise
negatively affect our businesses.
- Our capital actions, including dividend payments, common stock
repurchases, or redemptions of preferred stock, must not cause us
to fall below minimum capital ratio requirements, with applicable
buffers taken into account, and must comply with other requirements
and restrictions under law or imposed by our regulators, which may
impact our ability to return capital to shareholders.
- Our ability to comply with stress testing and capital planning
requirements (as part of the CCAR process or otherwise) may
continue to require a significant investment of our managerial
resources due to the importance of such tests and
requirements.
- Our ability to comply with applicable capital and liquidity
requirements (including, among other things, the Basel III capital
standards), including our ability to generate capital internally or
raise capital on favorable terms, and if we fail to meet
requirements, our financial condition and market perceptions of us
could be negatively impacted.
- Our ability to recruit and retain talented and experienced
personnel to assist in the development, management and operation of
our products and services may be affected by changes in laws and
regulations in effect from time to time.
- Our ability to receive dividends from our subsidiaries, in
particular Regions Bank, could affect our liquidity and ability to
pay dividends to shareholders.
- Fluctuations in the price of our common stock and inability to
complete stock repurchases in the time frame and/or on the terms
anticipated.
- The effects of anti-takeover laws and exclusive forum provision
in our certificate of incorporation and bylaws.
- The effect of new tax legislation and/or interpretation of
existing tax law, which may impact our earnings, capital ratios and
our ability to return capital to shareholders.
- Changes in accounting policies or procedures as may be required
by the FASB or other regulatory agencies could materially affect
our financial statements and how we report those results, and
expectations and preliminary analyses relating to how such changes
will affect our financial results could prove incorrect.
- Any impairment of our goodwill or other intangibles, any
repricing of assets or any adjustment of valuation allowances on
our deferred tax assets due to changes in tax law, adverse changes
in the economic environment declining operations of the reporting
unit or other factors.
- The effects of man-made and natural disasters, including fires,
floods, droughts, tornadoes, hurricanes and environmental damage
(especially in the Southeastern United States), which may
negatively affect our operations and/or our loan portfolios and
increase our cost of conducting business. The severity and
frequency of future earthquakes, fires, hurricanes, tornadoes,
droughts, floods and other weather-related events are difficult to
predict and may be exacerbated by global climate change.
- The impact of pandemics on our businesses, operations and
financial results and conditions. The duration and severity of any
pandemic as well as government actions or other restrictions in
connection with such events could disrupt the global economy,
adversely affect our capital and liquidity position, impair the
ability of borrowers to repay outstanding loans and increase our
allowance for credit losses, impair collateral values and result in
lost revenue or additional expenses.
- The effects of any damage to our reputation resulting from
developments related to any of the items identified above.
- Other risks identified from time to time in reports that we
file with the SEC.
The foregoing list of factors is not exhaustive. For discussion
of these and other factors that may cause actual results to differ
from expectations, look under the captions “Forward-Looking
Statements” and “Risk Factors” in Regions’ Annual Report on Form
10-K for the year ended December 31, 2023 and in Regions’
subsequent filings with the SEC.
You should not place undue reliance on any forward-looking
statements, which speak only as of the date made. Factors or events
that could cause our actual results to differ may emerge from time
to time, and it is not possible to predict all of them. We assume
no obligation and do not intend to update or revise any
forward-looking statements that are made from time to time, either
as a result of future developments, new information or otherwise,
except as may be required by law.
Use of non-GAAP financial measures
Management uses pre-tax pre-provision income (non-GAAP) and
adjusted pre-tax pre-provision income (non-GAAP), as well as the
adjusted efficiency ratio (non-GAAP) and the adjusted fee income
ratio (non-GAAP) to monitor performance and believes these measures
provide meaningful information to investors. Non-interest expense
(GAAP) is presented excluding certain adjustments to arrive at
adjusted non-interest expense (non-GAAP), which is the numerator
for the adjusted efficiency ratio. Non-interest income (GAAP) is
presented excluding certain adjustments to arrive at adjusted
non-interest income (non-GAAP), which is the numerator for the
adjusted fee income ratio. Adjusted non-interest income (non-GAAP)
and adjusted non-interest expense (non-GAAP) are used to determine
adjusted pre-tax pre-provision income (non-GAAP). Net interest
income (GAAP) on a taxable-equivalent basis and non-interest income
are added together to arrive at total revenue on a
taxable-equivalent basis. Adjustments are made to arrive at
adjusted total revenue on a taxable-equivalent basis (non-GAAP),
which is the denominator for the adjusted fee income and adjusted
efficiency ratios. Net loan charge-offs (GAAP) are presented
excluding adjustments to arrive at adjusted net loan-charge offs
(non-GAAP). Adjusted net loan charge-offs as a percentage of
average loans (non-GAAP) are calculated as adjusted net loan
charge-offs (non-GAAP) divided by average loans (GAAP) and
annualized. Regions believes that the exclusion of these
adjustments provides a meaningful basis for period-to-period
comparisons, which management believes will assist investors in
analyzing the operating results of the company and predicting
future performance. These non-GAAP financial measures are also used
by management to assess the performance of Regions’ business. It is
possible that the activities related to the adjustments may recur;
however, management does not consider the activities related to the
adjustments to be indications of ongoing operations. Regions
believes that presentation of these non-GAAP financial measures
will permit investors to assess the performance of the company on
the same basis as that applied by management.
Tangible common stockholders’ equity ratios have become a focus
of some investors and management believes they may assist investors
in analyzing the capital position of the company absent the effects
of intangible assets and preferred stock. Analysts and banking
regulators have assessed Regions’ capital adequacy using the
tangible common stockholders’ equity measure. Because tangible
common stockholders’ equity is not formally defined by GAAP or
prescribed in any amount by federal banking regulations it is
currently considered to be a non-GAAP financial measure and other
entities may calculate it differently than Regions’ disclosed
calculations. Since analysts and banking regulators may assess
Regions’ capital adequacy using tangible common stockholders’
equity, management believes that it is useful to provide investors
the ability to assess Regions’ capital adequacy on this same
basis.
Non-GAAP financial measures have inherent limitations, are not
required to be uniformly applied and are not audited. Although
these non-GAAP financial measures are frequently used by
stakeholders in the evaluation of a company, they have limitations
as analytical tools, and should not be considered in isolation, or
as a substitute for analyses of results as reported under GAAP. In
particular, a measure of earnings that excludes selected items does
not represent the amount that effectively accrues directly to
stockholders.
Management and the Board of Directors utilize non-GAAP measures
as follows:
- Preparation of Regions' operating budgets
- Monthly financial performance reporting
- Monthly close-out reporting of consolidated results (management
only)
- Presentation to investors of company performance
- Metrics for incentive compensation
Regions’ Investor Relations contact is Dana Nolan at (205)
264-7040; Regions’ Media contact is Jeremy King at (205)
264-4551.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250117316963/en/
Media Contact: Jeremy King (205) 264-4551
Investor Relations Contact: Dana Nolan (205) 264-7040
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