Regions Financial Corporation (RF) Stock: Rises as Q1 Earnings Hit $539M with Strong Loan Growth

TLDR

• RF stock rises as Q1 earnings reach $539M with strong loan growth

• Regions posts solid EPS growth as credit quality improves further

  

• Loan expansion and stable deposits drive RF’s steady performance

• RF gains as strong capital and margins support Q1 results

• Regions Financial climbs on improved earnings and lower charge-offs

Regions Financial Corporation (RF) rose after the bank posted stronger earnings and loan growth. The stock closed at $27.92, up 0.25%, and reached $28.23, up 1.13%, in pre-market trading. The move followed higher profit, improving credit trends, and stable deposits across the franchise.

Earnings Growth Supports Shares

Regions reported net income available to common shareholders of $539 million, with diluted earnings per share of $0.62. That compared with $514 million and $0.58 in the prior quarter. From a year earlier, net income rose 16%, and diluted earnings per share increased 22%.

Total revenue reached $1.873 billion, up 5% from the same quarter last year. Adjusted total revenue increased 4%, while pre-tax pre-provision income rose 8%. The efficiency ratio held at 56.6%, showing expense control.

Net interest income fell from the prior quarter because the period had fewer days. However, net interest margin stayed at 3.67%, supporting profitability. Return on average tangible common equity reached 18.26%, and return on average assets hit 1.42%.

Loan Growth and Credit Improvement

Average loans increased 1% from the prior quarter, while ending loans rose 2% to $97.9 billion. Business lending drove the increase, led by commercial and industrial loans. Regions said most growth came from high-quality credits and existing client relationships.

Deposits remained stable and supported the bank’s low-cost funding base. Average deposits reached $130.2 billion, while ending deposits climbed to $131.9 billion. Interest-bearing deposit costs stayed low at 1.72%, helping protect spreads.

Credit quality improved again during the quarter, adding support to the earnings report. Non-performing loans declined to 0.71% of total loans, while criticized business loans fell to 5.15%. Net charge-offs eased to 0.54% of average loans, and allowance coverage remained strong at 238%.

Capital Strength and Operating Context

Regions ended the quarter with an estimated Common Equity Tier 1 ratio of 10.7%. Its CET1 ratio including accumulated other comprehensive income stood at 9.4%. That capital position remained above regulatory requirements and supported shareholder returns.

During the quarter, the bank repurchased 14 million shares for $401 million. It declared $227 million in common dividends and lifted book value from last year. Tangible common book value per share reached $13.69, up 11% year over year.

The quarter also reflected work in technology, hiring, and efficiency across markets. That backdrop accompanied record Treasury Management fees and loan growth. As a result, RF extended its rebound as the market responded to stronger earnings and credit trends.

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