Regions Financial Corporation reported fourth‑quarter 2025 results on January 16, 2026, with total revenue of $1.92 billion, a 3.4% year‑over‑year increase that fell short of the $1.93 billion consensus estimate. The quarter’s revenue grew modestly from $1.90 billion in Q3 2025, but the miss was largely driven by a $26 million incremental tax expense related to state income tax reserve adjustments and a $14 million one‑time expense for severance, pension settlement, and Visa Class B litigation escrow funding. These charges reduced fee‑income momentum, offsetting the gains from stronger loan growth in the commercial banking segment.
The company posted a reported net income of $514 million and a reported diluted earnings per share of $0.58. Adjusted figures were $504 million and $0.57, respectively, both falling short of the consensus estimate of $0.61. The earnings miss was attributable to the same tax and one‑time expenses that weighed on net income, as well as a slight decline in fee‑income from the wealth‑management division, which saw advisory fees dip while fee‑income from other services rose.
Net interest margin expanded to 3.70% from 3.66% in the prior quarter, reflecting the bank’s best‑in‑class hedging program and continued low deposit costs. Return on average tangible common equity for the full year was 18.25%, underscoring the bank’s ability to generate strong equity returns despite the quarterly headwinds. Commercial banking revenue grew 4% driven by loan growth, while consumer banking revenue remained flat; wealth‑management fee income increased 6% but was partially offset by a decline in advisory fees.
For 2026, Regions Financial guided a normalized effective tax rate of 20.5% to 21.5%, low single‑digit loan growth, and net interest income growth of 2.5% to 4%. Management emphasized a focus on capital allocation and maintaining profitability, with CEO John Turner stating the company is “strengthening our foundation for solid performance in 2026.” CFO David Turner is retiring, and Anil Chadha will assume the role, signaling continuity in financial stewardship.
The earnings miss and revenue shortfall disappointed investors, who had expected stronger results based on the consensus estimates. The company’s guidance indicates confidence in sustaining profitability while navigating the tax and one‑time expense headwinds identified in the quarter.
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