Regions Financial Corporation reported its financial results for the third quarter of 2025, revealing a net income of $569 million, or $0.61 per diluted share, compared to $490 million, or $0.49 per diluted share, in the same period last year. The company's net interest income for the quarter was $1.3 billion, reflecting a $39 million increase from the previous year, driven by a higher net interest margin of 3.59%, up from 3.54%. This improvement was attributed to the replacement of fixed-rate loans and debt securities in a higher interest rate environment, alongside lower funding costs and enhanced hedge performance.
In terms of credit quality, the provision for credit losses was $105 million, slightly down from $113 million in the third quarter of 2024. Net charge-offs increased to $135 million, or 0.55% of average loans, compared to $117 million, or 0.48%, in the prior year. The allowance for loan losses decreased to $1.58 billion, representing 1.78% of total loans, down from 1.79% at the end of 2024. The company noted improvements in asset quality, with non-performing loans decreasing to $758 million from $928 million at year-end 2024.
Regions Financial also reported a significant increase in total deposits, which rose to $130.3 billion as of September 30, 2025, up from $127.6 billion at the end of 2024. This growth was primarily driven by increases in money market and non-interest-bearing deposits, reflecting customer preferences for liquidity amid economic uncertainty. The bank's total assets increased to $159.9 billion, compared to $157.3 billion at the end of the previous year.
Strategically, Regions has continued to focus on optimizing its balance sheet and managing interest rate risk. The company reclassified $2 billion of debt securities from available for sale to held to maturity to reduce volatility in accumulated other comprehensive income (AOCI). Additionally, Regions has been active in its stock repurchase program, having repurchased approximately 61 million shares for $1.3 billion under a plan authorized by the Board.
Looking ahead, Regions Financial remains cautious about the economic environment, particularly regarding inflation and interest rate fluctuations. The company anticipates that these factors will continue to influence its credit metrics and overall financial performance. Regions' management is committed to maintaining a strong capital position, with a Common Equity Tier 1 (CET1) ratio of 10.9% as of September 30, 2025, and plans to continue monitoring regulatory developments that may impact its operations.
About REGIONS FINANCIAL CORP
Regions Financial Corporation is a diversified financial services company providing retail, commercial, and mortgage banking, wealth management, and investment services. Operating primarily through Regions Bank in the U.S. South, Midwest, and Texas, it offers a broad range of banking products, specialty financial solutions, and digital services to individual, business, and institutional clients. Its core value lies in customer-centric financial solutions backed by extensive regulatory compliance and risk management.
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