BIRMINGHAM, Ala. - Regions Financial Corp. (NYSE:RF) announced its second-quarter financial results, surpassing analyst expectations with an EPS of $0.53, which was $0.04 higher than the consensus estimate of $0.49.
The company's revenue for the quarter also exceeded forecasts, reaching $1.8 billion against the anticipated $1.76 billion. Despite these positive results, the company's stock experienced a slight decline of 1.5% following the earnings release.
The financial institution reported net income available to common shareholders at $477 million with earnings per diluted share of $0.52 for the second quarter ended June 30, 2024. This performance marks a decrease from the same period last year, where the company recorded a net income of $556 million and earnings per diluted share of $0.59. Total revenue for the quarter was reported at $1.7 billion, a 11.5% decrease from the $1.957 billion reported in the second quarter of the previous year.
John Turner, Chairman, President, and CEO of Regions Financial Corp., attributed the solid second-quarter results to the successful execution of the company's business strategies. Turner highlighted the company's strong and diverse balance sheet, solid capital and liquidity levels, and prudent risk management strategies as foundational elements for generating consistent, sustainable, long-term performance and top-quartile returns.
The bank's net interest income saw a slight increase from the first quarter of 2024, rising to $1.186 billion, while the total net interest margin decreased by 4 basis points to 3.51%. Non-interest income for the quarter was $545 million, a 3.2% decrease from the first quarter of 2024. Adjusted non-interest expense saw a decrease of 5.9% compared to the first quarter of 2024, coming in at $1.032 billion.
Asset quality showed improvement, with non-performing and business services criticized loans decreasing compared to the prior quarter. Net charge-offs also improved, totaling $101 million, or 42 basis points of average loans. The allowance for credit loss ratio decreased slightly to 1.78% of total loans.
Regions Financial maintains a solid capital position, with the Common Equity Tier 1 and Tier 1 capital ratios estimated at 10.4% and 11.7%, respectively. The company also declared a quarterly common stock dividend of $0.25 per share, a 4% increase over the second quarter, in addition to a 20% increase last year.
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