Sector: Financials|Industry: Banks - Regional|Market Cap: $21.47B|Employees: 20.1K
Regions Financial Corporation is a bank holding company that provides a range of financial services, including retail and mortgage banking, commercial banking, and wealth management. The company operates primarily in the South, Midwest, and Texas, with a focus on serving a wide range of clients. Regions' competitive advantages include its established market presence and diversified service offerings.
Net interest income decreased by $233 million year-over-year to $1.2 billion, driven by increased deposit and funding costs due to market interest rates and deposit remixing. The net interest margin decreased 67 basis points to 3.55%.
The provision for credit losses increased to $152 million compared to $135 million in the prior year, reflecting continued normalization of asset quality and adverse risk migration. Net charge-offs also increased to 0.50% of average loans.
Non-interest income increased to $563 million, driven by capital markets income, mortgage income, and positive market valuation adjustments on employee benefit assets. This was partially offset by securities losses from portfolio repositioning.