RF - Regions Financial Corporation (RF) Q1 2024 Earnings Call Transcript

2024-04-19 13:18:07 ET

Regions Financial Corporation (RF)

Q1 2024 Earnings Conference Call

April 19, 2024, 10:00 ET

Company Participants

Dana Nolan - EVP & Head, IR

John Turner - President, CEO & Director

David Turner - Senior EVP & CFO

Conference Call Participants

Ebrahim Poonawala - Bank of America Merrill Lynch

Robert Siefers - Piper Sandler & Co.

Betsy Graseck - Morgan Stanley

Christopher Spahr - Wells Fargo Securities

Peter Winter - D.A. Davidson & Co.

Kenneth Usdin - Jefferies

David Rochester - Compass Point

John Pancari - Evercore ISI

Gerard Cassidy - RBC Capital Markets

Matthew O'Connor - Deutsche Bank

Presentation

Operator

Good morning, and welcome to the Regions Financial Corporation's quarterly earnings call. My name is Christine, and I will be your operator for today's call. [Operator Instructions]. I will now turn the call over to Dana Nolan to begin.

Dana Nolan

Thank you, Christine. Welcome to Regions First Quarter 2024 Earnings Call. John and David will provide high-level commentary regarding our results. The earning documents include a forward-looking statement disclaimer and non-GAAP information are available in the Investor Relations section of our website. These disclosures cover our presentation materials, prepared comments and Q&A.

I will now turn the call over to John.

John Turner

Thank you, Dana, and good morning, everyone. We appreciate you joining our call today. This morning, we reported first quarter earnings of $343 million, resulting in earnings per share of $0.37. However, adjusted items reconciled within our earnings supplement and press release, representing an approximate $0.07 negative impact on our reported results.

For the first quarter, total revenue was $1.7 billion on a reported basis and $1.8 billion on an adjusted basis as both net interest income and fee revenue demonstrated resiliency in the face of lingering macroeconomic and political uncertainty. Adjusted noninterest expenses increased quarter-over-quarter and is expected to represent the high watermark for the year as seasonal impacts offset our ongoing expense management actions.

Average loans were lower quarter-over-quarter, reflecting limited client demand, client selectivity, paydowns and an increase in debt capital markets activities. Average in ending deposits continued to grow during the quarter, consistent with seasonal patterns. Credit continues to perform in line with our expectations. While pressure remains within pockets of business lending, our consumers remain strong and healthy. We anticipate overall asset quality will perform consistent with historical levels experienced prior to the pandemic. ...

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