Regions Financial Corp shares slipped 11% to $14.73 in midday trading on Friday after the US regional bank reported third-quarter 2023 financial results that fell short of analyst expectations, as its total loans increased but deposits dropped.
The company saw its 3Q earnings per share (EPS) improve 15% to $0.49, while its total revenue eased 0.5% to $1.858 billion.
Analysts surveyed by FactSet anticipated EPS of $0.58 on $1.887 billion in revenue.
The bank’s total deposits fell 6.8% during the period to $126.2 billion even as its total loans grew 4.3% to $98.79 billion.
The company also boosted its allowance for credit losses by 9% to $1.68 billion.
Shares of Regions Financial have lost about a third of their value year to date as the regional banking industry has faced "economic and regulatory uncertainty," according to the company.
Contact Sean at sean@proactiveinvestors.com