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

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.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.