Regions Financial : 1Q 2025 Earnings Conf Call 1Q 2025 Earnings Supplement

Published: 2025-04-17 11:26:10 ET RF

Exhibit 99.2

Regions Financial Corporation and Subsidiaries

Financial Supplement (unaudited)

First Quarter 2025

Regions Financial Corporation and Subsidiaries

Financial Supplement (unaudited) to First Quarter 2025 Earnings Release

Table of Contents

Page

Financial Highlights

Selected Ratios and Other Information*

Consolidated Balance Sheets

Loans

Deposits

Consolidated Statements of Income

Consolidated Average Daily Balances and Yield / Rate Analysis

Pre-Tax Pre-Provision Income ("PPI")* and Adjusted PPI*

Non-Interest Income, Mortgage Income, Wealth Management Income and Capital Markets Income

Non-Interest Expense

Reconciliation of GAAP Financial Measures to non-GAAP Financial Measures*

Adjusted Efficiency Ratios, Adjusted Fee Income Ratios, Adjusted Non-Interest Income / Expense, Adjusted Operating Leverage

Ratios, Adjusted Total Revenue, Adjusted Net Income Available to Common Shareholders, Adjusted Diluted EPS, Return Ratios,

Tangible Common Ratios, and Common Equity Tier 1 (CET1) Ratios

Asset Quality

Allowance for Credit Losses, Net Charge-Offs and Related Ratios, Adjusted Net Charge-Offs and Related Ratios

Non-Accrual Loans (excludes loans held for sale), Early and Late Stage Delinquencies

Forward-Looking Statements

*Use of non-GAAP financial measures

Regions believes that the presentation of non-GAAP financial measures provides a meaningful basis for period to period comparisons, which management believes will assist investors in assessing the performance of the Company on the same basis as that applied by management. Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied and are not audited. Although non-GAAP financial measures are frequently used by stakeholders in the evaluation of a company, they have limitations as analytical tools, and should not be considered in isolation, or as a substitute for analyses of results as reported under GAAP. In particular, a measure of earnings that excludes certain adjustments does not represent the amount that effectively accrues directly to shareholders. Additionally, our non-GAAP financial measures may not be comparable to similar non-GAAP financial measures used by other companies.

Regions Financial Corporation and Subsidiaries

Financial Supplement (unaudited) to First Quarter 2025 Earnings Release

Financial Highlights

Quarter Ended

($ amounts in millions, except per share data)

3/31/2025

12/31/2024

9/30/2024

6/30/2024

3/31/2024

Earnings Summary

Interest income - taxable equivalent

1,737

1,815

1,832

1,774

1,737

Interest expense - taxable equivalent

531

572

602

576

540

Net interest income - taxable equivalent

1,206

1,243

1,230

1,198

1,197

Less: Taxable-equivalent adjustment

Net interest income

1,194

1,230

1,218

1,186

1,184

Provision for credit losses

124

120

113

102

152

Net interest income after provision for credit losses

1,070

1,110

1,105

1,084

1,032

Non-interest income

590

585

572

545

563

Non-interest expense

1,039

1,038

1,069

1,004

1,131

Income before income taxes

621

657

608

625

464

Income tax expense

131

123

118

124

Net income

490

534

490

501

368

Net income available to common shareholders

465

508

446

477

343

Adjusted net income available to common shareholders (non-GAAP) (1)

487

538

520

488

406

Weighted-average shares outstanding-during quarter:

Basic

906

911

914

917

921

Diluted

910

915

918

923

Basic earnings per common share

0.51

0.56

0.49

0.52

0.37

Diluted earnings per common share

0.51

0.56

0.49

0.52

0.37

Adjusted diluted earnings per common share (non-GAAP) (1)

0.54

0.59

0.57

0.53

0.44

Balance Sheet Summary

At quarter-end

Loans, net of unearned income

95,733

96,727

96,789

97,508

96,862

Allowance for credit losses

(1,730)

(1,729)

(1,728)

(1,732)

(1,731)

Assets

159,846

157,302

157,426

154,052

154,909

Deposits

130,971

127,603

126,376

126,616

128,982

Long-term borrowings

6,019

5,993

6,016

5,083

3,327

Shareholders' equity

18,530

17,879

18,676

17,169

17,044

Average balances

Loans, net of unearned income

96,122

96,408

97,040

97,281

97,420

Assets

156,876

156,508

154,667

152,867

151,444

Deposits

127,687

126,493

125,950

126,901

127,126

Long-term borrowings

6,001

6,025

5,351

3,595

2,405

Shareholders' equity

18,127

18,042

18,047

16,713

17,121

_____

(1) See reconciliation of these non-GAAP measures to the most directly comparable GAAP measures on page 15.

Regions Financial Corporation and Subsidiaries

Financial Supplement (unaudited) to First Quarter 2025 Earnings Release

Selected Ratios and Other Information

As of and for Quarter Ended

3/31/2025

12/31/2024

9/30/2024

6/30/2024

3/31/2024

Return on average assets* (1)

1.27 %

1.36 %

1.26 %

1.32 %

0.98 %

Return on average common shareholders' equity*

11.49 %

12.39 %

10.88 %

12.74 %

8.92 %

Return on average tangible common shareholders' equity (non-GAAP)* (2)

17.72 %

19.19 %

16.87 %

20.75 %

14.31 %

Adjusted return on average tangible common shareholders' equity (non-GAAP) *(2)

18.58 %

20.30 %

19.68 %

21.23 %

16.96 %

Efficiency ratio

57.9 %

56.8 %

59.3 %

57.6 %

64.3 %

Adjusted efficiency ratio (non-GAAP) (2)

56.8 %

55.4 %

56.9 %

57.6 %

60.6 %

Dividend payout ratio (3)

48.6 %

44.7 %

51.3 %

46.1 %

64.2 %

Common book value per share

18.70

17.77

18.62

16.94

16.76

Tangible common book value per share (non-GAAP) (2)

12.29

11.42

12.26

10.61

10.42

Total shareholders' equity to total assets

11.59 %

11.37 %

11.86 %

11.14 %

11.00 %

Tangible common shareholders' equity to tangible assets (non-GAAP) (2)

7.17 %

6.86 %

7.37 %

6.55 %

6.42 %

Common equity Tier 1 (4)

13,355

13,434

13,185

13,093

12,913

Total risk-weighted assets (4)

124,005

124,440

124,645

125,682

125,167

Common equity Tier 1 ratio (4)

10.8 %

10.6 %

10.4 %

10.3 %

Adjusted common equity Tier 1 ratio (non-GAAP) (2)(4)

9.1 %

8.8 %

9.1 %

8.2 %

Tier 1 capital ratio (4)

12.2 %

12.0 %

11.7 %

11.6 %

Total risk-based capital ratio (4)

14.0 %

14.1 %

13.9 %

13.6 %

Leverage ratio (4)

9.8 %

9.9 %

9.8 %

Effective tax rate

21.1 %

18.9 %

19.4 %

19.8 %

20.7 %

Allowance for credit losses as a percentage of loans, net of unearned income

1.81 %

1.79 %

1.78 %

1.79 %

Allowance for credit losses to non-performing loans, excluding loans held for sale

205 %

186 %

210 %

204 %

191 %

Net interest margin (FTE)*

3.52 %

3.55 %

3.54 %

3.51 %

3.55 %

Loans, net of unearned income, to total deposits

73.1 %

75.8 %

76.6 %

77.0 %

75.1 %

Net charge-offs as a percentage of average loans*

0.52 %

0.49 %

0.48 %

0.42 %

0.50 %

Non-performing loans, excluding loans held for sale, as a percentage of loans

0.88 %

0.96 %

0.85 %

0.87 %

0.94 %

Non-performing assets (excluding loans 90 days past due) as a percentage of loans, foreclosed properties, and

0.92 %

0.97 %

0.87 %

0.88 %

0.95 %

non-performing loans held for sale

Non-performing assets (including loans 90 days past due) as a percentage of loans, foreclosed properties, and

1.11 %

1.15 %

1.06 %

1.10 %

non-performing loans held for sale (5)

Associate headcount-full-time equivalent

19,541

19,644

19,560

19,595

19,641

ATMs

2,008

2,011

2,019

2,022

2,019

Branch Statistics

Full service

1,224

1,227

1,235

1,236

Drive-through/transaction service only

Total branch outlets

1,249

1,253

1,261

1,262

1,263

*Annualized

Regions Financial Corporation and Subsidiaries

Financial Supplement (unaudited) to First Quarter 2025 Earnings Release

Consolidated Balance Sheets

As of

($ amounts in millions)

3/31/2025

12/31/2024

9/30/2024

6/30/2024

3/31/2024

Assets:

Cash and due from banks

3,287

2,893

2,665

2,955

2,527

Interest-bearing deposits in other banks

11,029

7,819

7,856

5,524

8,723

Debt securities held to maturity

5,195

4,427

2,787

733

743

Debt securities available for sale

25,942

26,224

28,698

28,537

27,881

Loans held for sale

345

594

522

552

417

Loans, net of unearned income

95,733

96,727

96,789

97,508

96,862

Allowance for loan losses

(1,613)

(1,607)

(1,621)

(1,617)

Net loans

94,120

95,114

95,182

95,887

95,245

Other earning assets

1,412

1,616

1,625

1,844

1,478

Premises and equipment, net

1,726

1,673

1,648

1,630

1,635

Interest receivable

583

572

596

608

588

Goodwill

5,733

Residential mortgage servicing rights at fair value (MSRs)

979

1,007

971

1,020

1,026

Other identifiable intangible assets, net

161

169

178

187

196

Other assets

9,334

9,461

8,965

8,842

8,717

Total assets

159,846

157,302

157,426

154,052

154,909

Liabilities and Equity:

Deposits:

Non-interest-bearing

40,443

39,138

39,698

40,927

41,824

Interest-bearing

90,528

88,465

86,678

85,689

87,158

Total deposits

130,971

127,603

126,376

126,616

128,982

Borrowed funds:

Short-term borrowings

500

1,500

513

1,000

Long-term borrowings

6,019

5,993

6,016

5,083

3,327

Other liabilities

4,289

5,296

4,807

4,638

4,522

Total liabilities

141,279

139,392

138,699

136,850

137,831

Equity:

Preferred stock, non-cumulative perpetual

1,715

1,659

Common stock

Additional paid-in capital

11,161

11,394

11,438

11,575

11,666

Retained earnings

9,299

9,060

8,778

8,561

8,304

Treasury stock, at cost

(1,371)

Accumulated other comprehensive income (loss), net

(2,283)

(2,928)

(1,894)

(3,265)

(3,224)

Total shareholders' equity

18,530

17,879

18,676

17,169

17,044

Noncontrolling interest

Total equity

18,567

17,910

18,727

17,202

17,078

Total liabilities and equity

159,846

157,302

157,426

154,052

154,909

Regions Financial Corporation and Subsidiaries

Financial Supplement (unaudited) to First Quarter 2025 Earnings Release

End of Period Loans

As of

3/31/2025

($ amounts in millions)

3/31/2025

12/31/2024

9/30/2024

6/30/2024

3/31/2024

vs. 12/31/2024

vs. 3/31/2024

Commercial and industrial

48,879

49,671

49,565

50,222

49,701

(792)

(1.6)%

(822)

(1.7)%

Commercial real estate mortgage-owner-occupied

4,849

4,841

4,873

4,781

4,788

0.2 %

1.3 %

Commercial real estate construction-owner-occupied

316

333

341

370

306

(17)

(5.1)%

3.3 %

Total commercial

54,044

54,845

54,779

55,373

54,795

(801)

(1.5)%

(751)

(1.4)%

Commercial investor real estate mortgage

6,376

6,567

6,562

6,536

6,422

(191)

(2.9)%

(46)

(0.7)%

Commercial investor real estate construction

2,457

2,143

2,250

2,301

2,341

314

14.7 %

116

5.0 %

Total investor real estate

8,833

8,710

8,812

8,837

8,763

123

1.4 %

0.8 %

Total business

62,877

63,555

63,591

64,210

63,558

(678)

(1.1)%

(681)

(1.1)%

Residential first mortgage

20,000

20,094

20,125

20,206

20,199

(94)

(0.5)%

(199)

(1.0)%

Home equity-lines of credit (1)

3,130

3,150

3,130

3,142

3,155

(20)

(0.6)%

(25)

(0.8)%

Home equity-closed-end (2)

2,371

2,390

2,404

2,410

2,415

(19)

(0.8)%

(44)

(1.8)%

Consumer credit card

1,384

1,445

1,372

1,349

1,314

(61)

(4.2)%

5.3 %

Other consumer (3)

5,971

6,093

6,167

6,191

6,221

(122)

(2.0)%

(250)

(4.0)%

Total consumer

32,856

33,172

33,198

33,298

33,304

(316)

(1.0)%

(448)

(1.3)%

Total Loans

95,733

96,727

96,789

97,508

96,862

(994)

(1.0)%

(1,129)

(1.2)%

______

As of

End of Period Loans by Percentage(1)

3/31/2025

12/31/2024

9/30/2024

6/30/2024

3/31/2024

Commercial and industrial

51.1 %

51.4 %

51.2 %

51.5 %

51.3 %

Commercial real estate mortgage-owner-occupied

5.1 %

5.0 %

4.9 %

Commercial real estate construction-owner-occupied

0.3 %

0.4 %

0.3 %

Total commercial

56.5 %

56.7 %

56.6 %

56.8 %

56.6 %

Commercial investor real estate mortgage

6.7 %

6.8 %

6.7 %

6.6 %

Commercial investor real estate construction

2.6 %

2.2 %

2.3 %

2.4 %

Total investor real estate

9.2 %

9.0 %

9.1 %

9.0 %

Total business

65.7 %

65.9 %

65.6 %

Residential first mortgage

20.9 %

20.8 %

20.7 %

20.9 %

Home equity-lines of credit

3.3 %

3.2 %

3.3 %

Home equity-closed-end

2.5 %

Consumer credit card

1.4 %

1.5 %

1.4 %

Other consumer

6.2 %

6.3 %

6.4 %

6.3 %

6.4 %

Total consumer

34.3 %

34.1 %

34.4 %

Total Loans

100.0 %

Regions Financial Corporation and Subsidiaries

Financial Supplement (unaudited) to First Quarter 2025 Earnings Release

Average Balances of Loans

Average Balances

($ amounts in millions)

1Q25

4Q24

3Q24

2Q24

1Q24

1Q25 vs. 4Q24

1Q25 vs. 1Q24

Commercial and industrial

49,209

49,357

49,847

50,046

50,090

(148)

(0.3)%

(881)

(1.8)%

Commercial real estate mortgage-owner-occupied

4,863

4,869

4,877

4,765

4,833

(6)

(0.1)%

0.6 %

Commercial real estate construction-owner-occupied

317

343

335

350

298

(26)

(7.6)%

6.4 %

Total commercial

54,389

54,569

55,059

55,161

55,221

(180)

(0.3)%

(832)

(1.5)%

Commercial investor real estate mortgage

6,484

6,491

6,495

6,610

6,558

(7)

(0.1)%

(74)

(1.1)%

Commercial investor real estate construction

2,267

2,165

2,264

2,229

2,275

102

4.7 %

(8)

(0.4)%

Total investor real estate

8,751

8,656

8,759

8,839

8,833

1.1 %

(82)

(0.9)%

Total business

63,140

63,225

63,818

64,000

64,054

(85)

(0.1)%

(914)

(1.4)%

Residential first mortgage

20,037

20,107

20,147

20,191

20,188

(70)

(0.3)%

(151)

(0.7)%

Home equity-lines of credit

3,135

3,128

3,145

3,182

- %

(47)

(1.5)%

Home equity-closed-end

2,374

2,392

2,402

2,412

2,423

(18)

(0.8)%

(49)

(2.0)%

Consumer credit card

1,394

1,398

1,359

1,331

1,315

(4)

(0.3)%

6.0 %

Other consumer (1)

6,042

6,151

6,186

6,202

6,258

(109)

(1.8)%

(216)

(3.5)%

Total consumer

32,982

33,183

33,222

33,281

33,366

(201)

(0.6)%

(384)

(1.2)%

Total Loans

96,122

96,408

97,040

97,281

97,420

(286)

(0.3)%

(1,298)

(1.3)%

_____

Regions Financial Corporation and Subsidiaries

Financial Supplement (unaudited) to First Quarter 2025 Earnings Release

End of Period Deposits

($ amounts in millions) Non-interest-bearingdeposits Interest-bearingchecking Savings

Money market-domestic Time deposits

Total Deposits

($ amounts in millions)Consumer Bank Segment Corporate Bank Segment Wealth Management Segment Other (1)

Total Deposits

($ amounts in millions)

Wealth Management - Private Wealth Wealth Management - Institutional Services

Total Wealth Management Segment Deposits

As of

3/31/2025

12/31/2024

9/30/2024

6/30/2024

3/31/2024

vs. 12/31/2024

vs. 3/31/2024

40,443

39,138

39,698

40,927

41,824

1,305

3.3%

(1,381)

(3.3)%

25,281

25,079

23,704

23,631

24,668

202

0.8%

613

2.5%

12,466

12,022

12,085

12,386

12,786

444

3.7%

(320)

(2.5)%

37,289

35,644

35,205

34,438

34,251

1,645

4.6%

3,038

8.9%

15,492

15,720

15,684

15,234

15,453

(228)

(1.5)%

0.3%

130,971

127,603

126,376

126,616

128,982

3,368

2.6%

1,989

1.5%

As of

3/31/2025

12/31/2024

9/30/2024

6/30/2024

3/31/2024

vs. 12/31/2024

vs. 3/31/2024

80,627

78,637

78,858

80,126

81,129

1,990

2.5%

(502)

(0.6)%

39,696

38,361

36,955

36,529

37,043

1,335

3.5%

2,653

7.2%

7,798

7,736

7,520

7,383

7,792

0.8%

0.1%

2,850

2,869

3,043

2,578

3,018

(19)

(0.7)%

(168)

(5.6)%

130,971

127,603

126,376

126,616

128,982

3,368

2.6%

1,989

1.5%

As of

3/31/2025

12/31/2024

9/30/2024

6/30/2024

3/31/2024

vs. 12/31/2024

vs. 3/31/2024

6,931

6,998

6,676

6,430

6,664

(67)

(1.0)%

267

4.0%

867

738

844

953

1,128

129

17.5%

(261)

(23.1)%

7,798

7,736

7,520

7,383

7,792

0.8%

0.1%

As of

End of Period Deposits by Percentage

3/31/2025

12/31/2024

9/30/2024

6/30/2024

3/31/2024

Non-interest-bearing deposits

30.9 %

30.7 %

31.4 %

32.3 %

32.4 %

Interest-bearing checking

19.3 %

19.7 %

18.8 %

18.7 %

19.1 %

Savings

9.5 %

9.4 %

9.6 %

9.8 %

9.9 %

Money market-domestic

28.5 %

27.9 %

27.2 %

26.6 %

Time deposits

11.8 %

12.3 %

12.0 %

Total Deposits

100.0 %

Regions Financial Corporation and Subsidiaries

Financial Supplement (unaudited) to First Quarter 2025 Earnings Release

Average Balances of Deposits

Average Balances

($ amounts in millions)

1Q25

4Q24

3Q24

2Q24

1Q24

1Q25 vs. 4Q24

1Q25 vs. 1Q24

Non-interest-bearing deposits

39,053

39,424

39,690

40,516

40,926

(371)

(0.9)%

(1,873)

(4.6)%

Interest-bearing checking

25,033

24,060

23,599

24,026

24,682

973

4.0 %

351

1.4 %

Savings

12,177

12,020

12,183

12,536

12,594

157

1.3 %

(417)

(3.3)%

Money market-domestic

35,625

35,264

35,051

34,368

33,646

361

1.0 %

1,979

5.9 %

Time deposits

15,799

15,725

15,427

15,455

15,278

0.5 %

521

3.4 %

Total Deposits

127,687

126,493

125,950

126,901

127,126

1,194

0.9 %

561

0.4 %

Average Balances

($ amounts in millions)

1Q25

4Q24

3Q24

2Q24

1Q24

1Q25 vs. 4Q24

1Q25 vs. 1Q24

Consumer Bank Segment

78,712

78,476

78,904

79,809

79,150

236

0.3 %

(438)

(0.6)%

Corporate Bank Segment

38,312

37,426

36,867

36,669

37,064

886

2.4 %

1,248

3.4 %

Wealth Management Segment

7,600

7,492

7,374

7,534

7,766

108

1.4 %

(166)

(2.1)%

Other (1)

3,063

3,099

2,805

2,889

3,146

(36)

(1.2)%

(83)

(2.6)%

Total Deposits

127,687

126,493

125,950

126,901

127,126

1,194

0.9 %

561

0.4 %

Average Balances

($ amounts in millions)

1Q25

4Q24

3Q24

2Q24

1Q24

1Q25 vs. 4Q24

1Q25 vs. 1Q24

Wealth Management - Private Wealth

6,897

6,700

6,557

6,577

6,720

197

2.9 %

177

2.6 %

Wealth Management - Institutional Services

703

792

817

957

1,046

(89)

(11.2)%

(343)

(32.8)%

Total Wealth Management Segment Deposits

7,600

7,492

7,374

7,534

7,766

108

1.4 %

(166)

(2.1)%

Regions Financial Corporation and Subsidiaries

Financial Supplement (unaudited) to First Quarter 2025 Earnings Release

Consolidated Statements of Income

Quarter Ended

($ amounts in millions, except per share data)

3/31/2025

12/31/2024

9/30/2024

6/30/2024

3/31/2024

Interest income on:

Loans, including fees

1,342

1,416

1,463

1,432

1,421

Debt securities

266

256

241

219

209

Loans held for sale

Other earning assets

109

119

105

102

Total interest income

1,725

1,802

1,820

1,762

1,724

Interest expense on:

Deposits

442

467

507

502

495

Short-term borrowings

Long-term borrowings

Total interest expense

531

572

602

576

540

Net interest income

1,194

1,230

1,218

1,186

1,184

Provision for credit losses

124

120

113

102

152

Net interest income after provision for credit losses

1,070

1,110

1,105

1,084

1,032

Non-interest income:

Service charges on deposit accounts

161

155

158

151

148

Card and ATM fees

117

113

118

120

116

Wealth management income

129

126

128

122

119

Capital markets income

Mortgage income

Securities gains (losses), net

(25)

(30)

(78)

(50)

Other

118

100

Total non-interest income

590

585

572

545

563

Non-interest expense:

Salaries and employee benefits

625

617

645

609

658

Equipment and software expense

104

101

100

101

Net occupancy expense

Other

245

250

254

227

298

Total non-interest expense

1,039

1,038

1,069

1,004

1,131

Income before income taxes

621

657

608

625

464

Income tax expense

131

123

118

124

Net income

490

534

490

501

368

Net income available to common shareholders

465

508

446

477

343

Weighted-average shares outstanding-during quarter:

906

Basic

911

914

917

921

Diluted

910

915

918

923

Actual shares outstanding-end of quarter

899

909

911

915

918

Earnings per common share: (1)

Basic

0.51

0.56

0.49

0.52

0.37

Diluted

0.51

0.56

0.49

0.52

0.37

Taxable-equivalent net interest income

1,206

1,243

1,230

1,198

1,197

________

Disclaimer

Regions Financial Corporation published this content on April 17, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 17, 2025 at 15:25 UTC.