Regional banking company Regions Financial (NYSE: RF) missed Wall Street’s revenue expectations in Q4 CY2025 as sales rose 3.4% year on year to $1.92 billion. Its non-GAAP profit of $0.57 per share was 6.8% below analysts’ consensus estimates.
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Regions Financial (RF) Q4 CY2025 Highlights:
- Net Interest Income: $1.28 billion vs analyst estimates of $1.28 billion (4.1% year-on-year growth, in line)
- Net Interest Margin: 3.7% vs analyst estimates of 3.6% (6.3 basis point beat)
- Revenue: $1.92 billion vs analyst estimates of $1.94 billion (3.4% year-on-year growth, 0.7% miss)
- Efficiency Ratio: 56.8% vs analyst estimates of 56.7% (9.8 basis point miss)
- Adjusted EPS: $0.57 vs analyst expectations of $0.61 (6.8% miss)
- Tangible Book Value per Share: $13.75 vs analyst estimates of $13.68 (21.7% year-on-year growth, 0.5% beat)
- Market Capitalization: $25.01 billion
Company Overview
Tracing its roots back to 1971 and operating in a region known as the "heart of Dixie," Regions Financial (NYSE: RF) is a financial holding company that provides banking services, wealth management, and specialty financial solutions across the South, Midwest, and Texas.
Sales Growth
In general, banks make money from two primary sources. The first is net interest income, which is interest earned on loans, mortgages, and investments in securities minus interest paid out on deposits. The second source is non-interest income, which can come from bank account, credit card, wealth management, investing banking, and trading fees. Over the last five years, Regions Financial grew its revenue at a sluggish 4% compounded annual growth rate. This was below our standard for the banking sector and is a rough starting point for our analysis.
We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. Regions Financial’s recent performance shows its demand has slowed as its revenue was flat over the last two years. 
Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.
This quarter, Regions Financial’s revenue grew by 3.4% year on year to $1.92 billion, falling short of Wall Street’s estimates.
Net interest income made up 65.6% of the company’s total revenue during the last five years, meaning lending operations are Regions Financial’s largest source of revenue.
Our experience and research show the market cares primarily about a bank’s net interest income growth as non-interest income is considered a lower-quality and non-recurring revenue source.
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Tangible Book Value Per Share (TBVPS)
Banks are balance sheet-driven businesses because they generate earnings primarily through borrowing and lending. They’re also valued based on their balance sheet strength and ability to compound book value (another name for shareholders’ equity) over time.
This explains why tangible book value per share (TBVPS) stands as the premier banking metric. TBVPS strips away questionable intangible assets, revealing concrete per-share net worth that investors can trust. Traditional metrics like EPS are helpful but face distortion from M&A activity and loan loss accounting rules.
Regions Financial’s TBVPS grew at a tepid 3.5% annual clip over the last five years. However, TBVPS growth has accelerated recently, growing by 13.6% annually over the last two years from $10.66 to $13.75 per share.
Over the next 12 months, Consensus estimates call for Regions Financial’s TBVPS to grow by 9.6% to $15.07, paltry growth rate.
Key Takeaways from Regions Financial’s Q4 Results
It was good to see Regions Financial narrowly top analysts’ tangible book value per share expectations this quarter. On the other hand, its EPS missed and its revenue fell slightly short of Wall Street’s estimates. Overall, this quarter was weak. The stock remained flat at $28.64 immediately following the results.
Big picture, is Regions Financial a buy here and now? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).
