Regions Financial Reports Q1 2024 Results – Net Income $343M

By Tamara Parker • Friday, April 19 15:23 • Permanent Link

Regions Financial Corp. (NYSE:RF) has reported its first-quarter results for 2024, revealing net income available to common shareholders of $343 million and earnings per diluted share of $0.37. The company's total revenue for the quarter was reported at $1.7 billion, including $616 million in reported pre-tax pre-provision income and $700 million in adjusted pre-tax pre-provision income. Notable items impacting the quarter included an increase to the industry-wide FDIC special assessment accrual, severance-related charges, and the impact of certain securities repositioning.

Net interest income decreased by 3.8% to $1.184 billion compared to the fourth quarter of 2023, and by 16.4% compared to the first quarter of 2023. Non-interest income decreased by 2.9% on a reported basis but increased by 5.4% on an adjusted basis compared to the fourth quarter of 2023.

Total non-interest expense decreased by 4.6% on a reported basis but increased by 5.7% on an adjusted basis compared to the fourth quarter of 2023. The company's first quarter efficiency ratio was 64.3% on a reported basis and 60.6% on an adjusted basis. The effective tax rate was reported at 20.7% for the first quarter.

Average loans and leases declined by 1% compared to the prior quarter, with average business loans decreasing by 1% and average consumer loans remaining relatively stable. Total ending and average deposits increased modestly during the first quarter.

The allowance for credit losses (ACL) at period-end increased to $1.731 billion from $1.7 billion in the previous quarter, with ACL to loans, net increasing to 1.79% from 1.73% in the prior quarter.

The company's common equity tier 1 ratio remained at 10.3%, and the tier 1 capital ratio was reported at 11.6%. Regions Financial Corp. repurchased 5.5 million shares of common stock for a total of $102 million during the first quarter and declared $220 million in dividends to common shareholders.

Following these announcements, the company's shares moved -1.3%, and are now trading at a price of $18.75. For more information, read the company's full 8-K submission here.

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