Regions Financial beats earnings despite revenue miss

Investing.com -- On Friday, Regions Financial Corp. (NYSE: RF) reported third quarter adjusted earnings per share of $0.73, beating analyst estimates of $0.66.

Shares of the bank rose 2.27% in pre-market trading following the results.

Revenue came in at $1.97 billion, short of the $1.99 billion consensus. Revenue increased 3.0% compared to the same quarter last year.

The bank’s adjusted earnings were $622 million, up 11% from the third quarter of 2025. Net interest income rose 3.3% YoY to $1.30 billion, driven by fixed-rate asset turnover, average loan growth, and higher hedging income. The net interest margin expanded to 3.68%, up from 3.59% a year earlier.

Non-interest income increased 2.4% YoY to $675 million on a reported basis. Capital markets income reached a record $107 million, up 2.9% from last year, driven by higher mergers and acquisitions advisory revenue and securities underwriting fees. Service charges on deposit accounts grew 6.9% YoY to $171 million, supported by record Treasury Management income.

"By remaining disciplined in our approach to risk management and staying committed to soundness, profitability, and growth, we are delivering strong results built on solid fundamentals and a competitive strategy," said John Turner, Chairman, President and CEO.

Credit quality improved during the quarter, with annualized net charge-offs declining to 0.29% of average loans from 0.42% in the prior quarter. Business services criticized loans decreased to 4.71% of total business loans from 5.01% in the second quarter.

Average loans increased 0.5% to $99.2 billion, driven primarily by commercial and industrial lending growth. Average deposits declined 1.2% to $129.1 billion.

The company maintained a strong capital position with an estimated Common Equity Tier 1 ratio of 10.8%. During the quarter, Regions repurchased approximately 3 million shares for $95 million and declared $255 million in dividends to common shareholders.

Original Article

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