Net income available to common shareholders grew 4%
year-over-year to $374 million. Diluted EPS rose 16% to $0.37. Adjusted EPS totaled
$0.39, in line with analysts’ estimates.
Net interest income and other
financing income increased 2%, helped by higher loan and securities yields and consumer
loans balances. Net interest margin dropped by 4 basis points. Non-interest
income fell 4% on a reported basis, but increased modestly on an adjusted basis.
Non-interest expense fell by 5% on a reported basis and 2% on an adjusted
basis.
Average loans and leases rose 5% on
a reported basis and 6% on an adjusted basis. Total average deposit balances
decreased less than 1% from the year-ago period as reductions in low-cost
deposits were partially offset by growth in time and corporate treasury
deposits.
Annualized net charge-offs
increased 12 basis points from last year, while the allowance for loan and
lease losses as a percent of total loans fell 2 basis points. Total non-accrual
loans, excluding loans held for sale, were down by 10 basis points as a percent
of loans outstanding.
During the quarter, the company repurchased 12.8 million shares of common stock for a total of $190 million and declared $141 million in dividends to common shareholders. Regions Financial’s stock has gained 10% so far this year.
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