Regions Financial Corporation (RF Quick QuoteRF - Free Report) is scheduled to report third-quarter 2025 results on Oct. 17, before the opening bell. Quarterly earnings and revenues are expected to register year-over-year growth in the to-be-reported quarter.

This Birmingham, AL-based player’s second-quarter 2025 earnings beat the Zacks Consensus Estimate, driven by an increase in non-interest income and net interest income ("NII"). However, a lower loan balance and higher non-interest expenses are concerning.

Regions Financial has an impressive earnings surprise history. Its earnings have surpassed estimates in each of the trailing four quarters, with an average surprise of 6.96%.

Regions Financial Corporation Price and EPS Surprise

Regions Financial Corporation price-eps-surprise | Regions Financial Corporation Quote

The Zacks Consensus Estimate for third-quarter earnings of 60 cents per share has remained unchanged over the past seven days. The figure indicates a 5.3% rise from the year-ago reported number.

The consensus estimate for revenues is pegged at $1.92 billion, indicating a 7.1% increase from the prior-year reported figure.

Key Factors & Estimates for RF's Q3

NII & Loans: In September, the Federal Reserve lowered interest rates by 25 basis points to 4-4.25%. As rates were relatively stable for most of the quarter, funding/deposit costs are likely to have stabilized. As such, RF’s NII is likely to have witnessed some improvement in the third quarter.

Management expects the third-quarter 2025 NII to be stable to modestly higher than the second-quarter 2025 reported level. The Zacks Consensus Estimate is pegged at $1.27 billion, indicating a 1% increase on a sequential basis.

In the third quarter, the loan demand was impressive. Per the Fed’s latest data, the demand for commercial and industrial loans and consumer loans was solid during the quarter.

Given this, the company is likely to have witnessed improvement in average interest-earning assets in the third quarter of 2025. The Zacks Consensus Estimate of $1.41 billion for average earning assets indicates a 1.1% increase on a sequential basis.

Non-Interest Income: Global mergers and acquisitions (M&As) rebounded impressively in the third quarter of 2025 from the lows witnessed in April and May following President Trump’s announcement of ‘Liberation Day’ tariff plans. As corporates adapted to the rapidly evolving geopolitical and macroeconomic scenarios, larger M&A deals kicked in. This might have supported the company’s capital markets revenues.

Regions Financial expects capital markets revenues to be in the range of $85 million to $95 million. The Zacks Consensus Estimate for capital markets income is pegged at $90.6 million, indicating a 9.2% increase from the prior quarter.

Mortgage rates declined notably during the third quarter compared with levels seen at the start of the year. Although rates fluctuated throughout the quarter, they remained within a range-bound, limiting any significant improvement in refinancing activity and origination volumes. As a result, Regions Financial’s mortgage banking fees are expected to have been negatively affected. 

The consensus estimate for mortgage income is pegged at $44.6 million, indicating a 7.1% decline from the prior quarter’s reported figure.

The Zacks Consensus Estimate for card and ATM fees of $125.8 million implies a marginal rise on a sequential basis.

The consensus estimate for revenues from service charges on deposit accounts of $151.9 million indicates a marginal sequential increase.

The Zacks Consensus Estimate for wealth management income is pegged at $134.3 million, indicating a 1% increase from the prior quarter’s reported number.

Overall, the consensus estimate for total non-interest income is pinned at $645.7 million, indicating a slight sequential fall.

Expenses: RF’s expenses are expected to have been high in the quarter under discussion due to increases in salaries, employee benefit expenses and other expenses. Although the company has been implementing expense management actions, its ongoing investment in technology advancement and franchise strengthening is likely to have kept the expense base elevated.

Asset Quality: The company is likely to have set aside a substantial amount of money for potential bad loans, given the expectations of a higher interest rate backdrop for longer and tariff-related uncertainty.

The Zacks Consensus Estimate for non-performing assets is pegged at $853.9 million, indicating a 5.7% rise from the prior quarter's reported figure.

What Our Quantitative Model Predicts for RF

Our proven model predicts an earnings beat for Regions Financial this time. The combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat. This is exactly the case here. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Earnings ESP: Regions Financial has an Earnings ESP of +0.32%.

Zacks Rank: The company currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here. 

Other Bank Stocks to Consider

Here are some other bank stocks, which, according to our model, also have the right combination of elements to post an earnings beat this time around.

First Horizon Corporation (FHN Quick QuoteFHN - Free Report) has an Earnings ESP of +1.20% and a Zacks Rank of 2 at present. FHN is expected to release its third-quarter 2025 earnings on Oct. 15.

Quarterly earnings estimates for First Horizon have remained unchanged in the past seven days, indicating an increase of 7.1% from the year-ago reported figure.

Northern Trust Corporation (NTRS Quick QuoteNTRS - Free Report) is scheduled to announce third-quarter 2025 results on October 22. The company has a Zacks Rank #3 at present and an Earnings ESP of +0.55%. 

Quarterly earnings estimates for NTRS have been revised upward over the past week, indicating an increase of 14.3% from the year-ago reported figure.