Regions Financial Corporation

Good morning and welcome to the Region's Financial Corporation's quarterly earnings call. My name is Christine and I will be your operator for today's call. I would like to remind everyone that all participant phone lines have been placed on listen only. At the end of the call, there will be a question and answer session. If you wish to ask a question, please press star 1 on your telephone keypad. I will now turn the call over to Dana Nolan to begin.

Thank you, Christine. Welcome to Regents first quarter 2024 earnings call. John and David will provide high level commentary regarding our results. Earning documents which include our 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.

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 37 cents. However, adjusted items reconciled with our earnings supplement and press release represented an approximate 7-cent 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 non-interest expenses increased quarter over quarter and is expected to represent the high-water mark 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 and 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. In closing, we feel good about the successful execution of our strategic plan as evidenced by our solid top-line revenue, which allows us to continue delivering consistent, sustainable long-term performance while focused on soundness, profitability, and growth.