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Regions Financial: Regions Financial Corporation Posts Strong Full-Year Earnings

Regions Financial Corporation reported strong full-year earnings of $2.1 billion, resulting in earnings per share of $2.33 on an adjusted basis, and a return on tangible common equity of over 18%. The company also reported solid fourth-quarter earnings of $514 million, resulting in earnings per share of $0.57 on an adjusted basis, slightly below estimates of $0.611. Net interest income grew by 2% linked quarter, and the net interest margin rebounded to 3.7%. Adjusted noninterest income increased 5% in 2025, driven by record fee income in wealth management and corporate bank businesses.

RF

USD 27.77

-2.63%

A-Score: 6.5/10

Publication date: January 16, 2026

Full Report

Author: Analystock.ai

📋 Highlights
  • 2025 Full-Year Earnings Generated $2.1 billion in earnings, translating to $2.33 adjusted EPS with >18% return on tangible common equity.
  • Fourth-Quarter Performance Reported $514 million in earnings ($0.58 adjusted EPS) with net interest margin rebounding to 3.7%.
  • Capital Return Returned $2 billion to shareholders via dividends and buybacks, maintaining a 10.8% common equity Tier 1 ratio.
  • 2026 Loan Growth Outlook Projects low single-digit loan growth, with net interest income rising 2.5–4% and noninterest income growing 3–5%.

Loan Growth Expectations

Loan growth was challenged in 2025 due to large corporate customers taking advantage of financing opportunities in the capital markets and paying down debt, but the company expects loan growth to return to normal levels in 2026, with average loans expected to be up low single digits versus 2025. The company has $2.6 billion of loans that were refinanced through capital markets in 2025, mainly in investment-grade credits. The attraction for customers is lower cost of capital, better terms, and easier access to funding.

Capital Management and Shareholder Returns

Regions Financial Corporation returned $2 billion to shareholders through dividends and share buybacks and ended the quarter with an estimated common equity Tier 1 ratio of 10.8%. The company expects to manage common equity Tier 1 inclusive of AOCI around this level, providing flexibility to meet regulatory changes, support strategic growth, and continue increasing the dividend and repurchasing shares. The current dividend yield is 3.71%, which is an attractive return for income-seeking investors.

Valuation and Outlook

At the current price, the stock trades at a Price-to-Tangible Book Value (P/TBV) of approximately 1.28, which is slightly above the industry average. The Net Interest Margin (NIM) of 3.7% is a positive indicator of the company's ability to generate income from its lending activities. With expectations of low single-digit loan growth in 2026 and a continued focus on capital allocation and risk-adjusted returns, the company is well-positioned for future growth. Analysts estimate next year's revenue growth at 3.8%, which is a moderate growth rate.

Regions Financial's A-Score