Regions Financial (NYSE:RF) posted a rise in full-year earnings for 2025, driven by a surge in non-interest income and disciplined expense management that offset broader industry pressures on loan demand.
The bank reported net income for the fourth quarter of $514 million, or $0.58 per diluted share.
For the full year, net income reached $2.1 billion.
On an adjusted basis, annual earnings grew 7% compared to 2024, with adjusted earnings per share rising 9% to $2.33, reflecting the impact of the bank’s ongoing share repurchase efforts.
Non-interest income emerged as a primary growth engine, with the bank noting annual records in wealth management and treasury management fees.
This diversification helped insulate the lender as it navigated a complex interest rate environment.
The bank's net interest margin (NIM) remained a standout in the regional peer group, ending the fourth quarter at 3.70%, supported by a "best-in-class" hedging program and a low-cost deposit base.
Credit quality remained stable despite the higher-for-longer rate backdrop.
Regions also reported that business services criticized loans fell 9% during the quarter, while non-performing loan balances declined by 8%.
The bank’s allowance for credit losses (ACL) relative to non-performing loans increased to 242%, providing a significant buffer against potential economic volatility.
Capital levels also remained a point of strength for the lender.
Regions reported a Common Equity Tier 1 (CET1) ratio of 10.8%, well above regulatory requirements.
This capital strength recently prompted the board to authorize a new $3 billion share repurchase program through 2027, signaling management's confidence in the bank’s organic capital generation.