Regions Financial Corp. (NYSE:RF) reported first-quarter results on Friday, delivering earnings that exceeded expectations while revenue came in below forecasts.
The bank posted earnings per share of $0.62, ahead of the $0.60 consensus estimate, but revenue totaled $1.87 billion, missing analyst expectations of $1.92 billion.
Shares were little changed in premarket trading following the announcement.
Net income for the quarter rose to $539 million, marking a 16% increase year-on-year, while total revenue grew 5% compared with the same period in 2025.
The increase in revenue was primarily driven by net interest income, which climbed 4.6% year-on-year to $1.26 billion on a taxable-equivalent basis. However, the net interest margin edged down by 3 basis points to 3.67% from the previous quarter.
“Our results reflect the strength of our franchise, the continued momentum of our markets, and our consistent focus on solid execution amid an evolving macroeconomic backdrop,” said John Turner, Chairman, President and CEO. “Growth in loans and deposits accelerated during the first quarter, credit metrics continued to improve, and client sentiment remained generally optimistic across our footprint.”
Average loans increased 1% to $96.4 billion, while ending loan balances were up 2% from the fourth quarter, supported mainly by broad-based growth in commercial and industrial lending. Average deposits rose modestly to $130.2 billion, representing a 2% year-on-year increase.
Credit quality continued to strengthen, with net charge-offs declining to 0.54% of average loans from 0.59% in the previous quarter. Non-performing loans as a share of total loans also improved, falling 2 basis points to 0.71%.
Non-interest expenses decreased 3% from the prior quarter to $1.07 billion, resulting in an efficiency ratio of 56.6%. The bank maintained solid capital levels, with an estimated Common Equity Tier 1 ratio of 10.7%.
During the quarter, Regions repurchased around 14 million shares for $401 million and returned $227 million to shareholders through dividends.