Following the announcement of its second-quarter financial results last Friday, Regions Financial Corporation (NYSE: RF) had a notable market reaction, with its shares closing at $26.01 after rising 6.12%. The bank reported $534 million in net income available to common shareholders for the quarter that ended on June 30, 2025, or $0.59 per diluted share. Net income was $538 million on an adjusted basis, and adjusted profits per share came to $0.60.
Growth in Deposits, Lending, and Revenue
Both reported and adjusted net income increased by 12% and 10%, respectively, over the same time in 2024. $1.9 billion in total sales showed that Regions’ franchise was still growing. The pre-provision, pre-tax income was $832 million. Disciplined loan creation, strong deposit growth, and strong fee-based business performance—particularly in Treasury and Wealth Management—all contributed to the outcomes.
Total sales increased 7% on a reported basis and 5% on an adjusted basis as compared to the first quarter of 2025. A positive fixed-rate asset turnover, improved financing mix, and credit recoveries all contributed to the 5% rise in net interest income. The net interest margin rose 13 basis points to 3.65%.
Increased Asset Quality and Consistent Lending Activity
Average loans and leases remained stable quarter-over-quarter, with a 1% increase in total ending loans, mainly from commercial and industrial segments. Average business loans remained consistent, while consumer loans dipped slightly. Deposits remained a strength, with ending balances stable and average deposits up 1% due to seasonal and promotional factors.
Asset quality showed resilience, as net charge-offs declined to $113 million (47 basis points of average loans), a 5 basis point improvement. Non-performing loans dropped 8 basis points to 0.80%, and criticized business services loans fell 6%.
Capital Strength and Shareholder Returns
With an expected CET1 of 10.7% and Tier 1 capital of 11.8%, capital ratios were strong. During the quarter, Regions announced $224 million in dividends and paid out $144 million to repurchase almost 7 million shares. In keeping with a ten-year pattern of double-digit dividend increases, the corporation recently increased its quarterly dividend by 6% to $0.265 per share.
