Regions Financial Corp., headquartered in Birmingham, has reported a total revenue increase of 12% year-over-year to a record $7.2 billion on both a reported and adjusted basis, driven by growth in net interest income, for 2022.
The company reported fourth quarter net income available to common shareholders of $660 million and earnings per diluted share of $0.70. For the full year 2022, the company reported net income of $2.1 billion and record pre-tax pre-provision income of $3.1 billion.
“I want to congratulate and thank our 20,000 associates for their hard work and dedication throughout the year,” said John Turner, president and CEO of Regions Financial Corp. “During the year, we continued to make banking easier for our customers and our associates through innovations and account enhancements that improve the customer experience and better enable our teams to deliver tailored financial solutions.
“Our strategic investments continue to provide opportunities to broaden and deepen relationships with our customers,” Turner added. “Additionally, our attractive footprint, combined with our innovative and comprehensive product set, has supported continued customer acquisition and revenue growth while delivering benefits for all stakeholders.”
For total revenue in third quarter 2022, Regions noted in its release that while capital markets income decreased 34% and mortgage income decreased 35%, card and ATM fees increased 3% and wealth management income remained stable compared to the prior quarter.
Average loans and leases increased 1% during the fourth quarter 2022 compared to the prior quarter, driven primarily by growth in commercial and industrial lending, investor real estate, residential first mortgages and EnerBank. EnerBank is a lender program aimed at residential construction remodelers that have been in business at least three years. Average business lending increased 2%, reflecting broad-based growth in financial services, wholesale durables, information services and multi-family. Commercial loan line utilization levels ended the quarter at approximately 43.4%, increasing 30 basis points over the prior quarter, while line commitments grew approximately $800 million during the quarter.
Regions notes that it maintains a solid capital position with estimated capital ratios remaining well above current regulatory requirements. The Tier 1 and Common Equity Tier 1 ratios were estimated at 10.9% and 9.6%, respectively, at fourth quarter end 2022. The company’s liquidity position also remains robust including cash held at the Federal Reserve totaling $9.2 billion and a loan to deposit ratio of 74% at fourth quarter-end.