Regions Financial Q1 net interest income declines as asset spreads tighten

Regions Financial

17/04/2026 11:11

Overview

U.S. regional bank's Q1 adjusted revenue grew 4% yr/yr but missed analyst expectations

Adjusted EPS for Q1 was $0.62

Company repurchased $401 mln in shares during the quarter

Outlook

Company says client sentiment remains generally optimistic across its footprint

Company sees stable to modestly positive consumer spending trends and sound consumer fundamentals

Regions says it is confident in delivering on strategic priorities throughout the year

Result Drivers

LOAN GROWTH - Q1 loan growth was driven by broad-based commercial and industrial lending, higher line utilization, and new loans to existing clients, with a focus on high-quality credits

NET INTEREST INCOME PRESSURE - Net interest income decreased 3% sequentially, mainly due to fewer days in the quarter, the absence of prior quarter non-recurring items, and tighter asset spreads

EXPENSE CONTROL - Non-interest expenses declined from the prior quarter, reflecting broad-based improvement across most expense categories

Company press release: ID:nBws2NJsa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
$1.87 bln
Q1 Adjusted Revenue
Miss
$1.87 bln
$1.92 bln (15 Analysts)
Q1 Adjusted EPS
$0.62
Q1 EPS
$0.62
Q1 Net Income
$559 mln
Q1 Net Interest Income
Miss
$1.25 bln
$1.27 bln (11 Analysts)
Q1 Credit Loss Provision
$91 mln
Q1 Net Interest Margin
3.67%


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 8 "strong buy" or "buy", 11 "hold" and 3 "sell" or "strong sell"

The average consensus recommendation for the banks peer group is "buy."

Wall Street's median 12-month price target for Regions Financial Corp is $29.50, about 5.7% above its April 16 closing price of $27.92

The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 10 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)