Regions Earns $611 Million, $0.71 A Share, As Deposits Slip And Charge-Offs Fall
The Birmingham bank's average deposits fell 1.2% from the second quarter while net charge-offs dropped to $72 million.
Regions Financial reported third-quarter earnings available to common shareholders of $611 million, or $0.71 per diluted share, up 11% in earnings and 16% in per-share profit from the third quarter of 2025, according to its 8-K. Average deposits slipped even as loan losses shrank.
What the results show
On an adjusted basis, earnings were $622 million, or $0.73 per share. Total revenue was $1,973 million as reported and $1,988 million adjusted, against $1,907 million and $1,947 million in the second quarter.
The company said capital markets income rose 27% from the second quarter to $107 million, which it called a record, on higher merger advisory, underwriting and placement fees, commercial swap income and syndication revenue. It also reported record treasury management income.
Net charge-offs, loans written off as uncollectible, were $72 million, or an annualized 29 basis points of average loans, down from 42 basis points in the second quarter. The ratio of business criticized loans to total business loans fell to 4.71% from 5.01%.
CEO John Turner credited "strong credit quality, continued momentum in fee-based businesses, and economically vibrant markets throughout our footprint."
The deposit decline
Average deposits fell 1.2% from the second quarter to $129,140 million. Regions said the corporate decline came mainly from a limited number of large commercial clients that moved interest-bearing balances into off-balance-sheet products through its institutional investment services group.
The company said non-interest-bearing balances rose on both an average and ending basis. Separately, it said it continues to manage approximately $16 billion of excess commercial client balances in highly liquid off-balance-sheet investment solutions.
Net interest margin rose 2 basis points to 3.68%. Regions repurchased about 3 million shares for $95 million and declared $255 million in dividends. The estimated common equity Tier 1 ratio was 10.8%.
What to watch
Management was scheduled to discuss the results on a webcast at 10 a.m. ET Friday. Regions' stock closed at $27.31 on Thursday, up 1.56% on the session, before the 6:01 a.m. ET Friday release.
Regions' filing lists the next hard marker as the Friday webcast; the company expects fourth-quarter net interest income to rise 1% to 2% from the third quarter.
