Regions Financial Corporation Q3 2024 Earnings Report

Regions Financial Corporation (NYSE: RF) reported strong third-quarter earnings for 2024, with a net income of $446 million and earnings per share of $0.49. The company experienced growth in net interest income and fee revenue, although there is cautious optimism among corporate customers due to economic uncertainties.

Key Takeaways:

• Total revenue increased thanks to growth in net interest income and fee revenue.
• Average loans remained stable; ending loans slightly declined.
• Average deposits saw a slight decline, but ending deposits stabilized.
• The company executed $101 million in share repurchases.

Company Outlook

• Expects stable to modestly declining average loans for 2024.
• Potential for growth in 2025 as uncertainties diminish.
• Net interest income trajectory remains on track for a target of 3.60.
• Anticipates modest loan growth in 2025 driven by improving economic clarity.

Bearish Highlights

• Cautious optimism among corporate customers, hesitant to invest.
• Slight decline in average deposits.
• Decline in card and ATM fees in six of the last seven quarters.

Bullish Highlights

• 3% increase in net interest income linked quarter.
• Adjusted noninterest income rose 9%.
• Common equity Tier 1 ratio of 10.6%.
• 30% increase in deposits since 2019.

Misses

• Slight decline in ending loans.
• Increase in salary and benefit costs due to performance incentives.

Q&A Highlights

• Charge-offs expected to remain between 40 and 50 basis points.
• Deposit costs likely to decline into the fourth quarter.
• Focus on optimizing existing investments in M&A advisory and real estate originations.

Regions Financial Corporation's results highlight its strategic positioning in managing economic challenges while pursuing growth opportunities. The company aims to balance deposit and loan growth effectively to optimize net interest margins and maintain its commitment to shareholders.

Full transcript – Regions Financial Corporation Q3 2024

Operator

Good morning, and welcome to Regions Financial Corporation's Quarterly Earnings Call.

Dana Nolan

Thank you, Christine. Welcome to Regions' Third Quarter 2024 Earnings Call. Let's now turn to John for high-level commentary regarding our results.

John Turner

We reported strong third-quarter earnings of $446 million, leading to an EPS of $0.49. Total revenue showed quarter-over-quarter growth.
The corporate customer sentiment remains cautious; however, we are committed to understanding evolving customer needs.

David Turner

Ending loans declined slightly while maintaining decent performance. Our net interest income trajectory is set for 3.60. We expect to grow moderately in 2025.

Q&A

Several analysts asked about loan growth and expense management, showing confidence in steady financial strategies moving forward.
Operator: Thank you, everyone, for your participation.