-- Fifth Third Bancorp (FITB) reported a surprise first-quarter profit on Friday, while Regions Financial's (RF) revenue fell short of market estimates.
Fifth Third posted net income of $0.15 a share for the March quarter, down from $0.71 the year before, but defied the consensus on FactSet for a per-share loss of $0.10. The result included a negative impact of $0.68 a share on the bottom line related to the company's acquisition of regional lender Comerica.
"We closed the acquisition of Comerica on Feb. 1, and early financial benefits are already showing up, including strong net interest margin expansion and tangible book value per share growth," Chief Executive Tim Spence said in a statement. "We are also seeing early revenue synergies across both commercial and consumer businesses."
Adjusted revenue rose to $2.86 billion from $2.16 billion in the prior-year quarter, just ahead of the Street's view for $2.85 billion. The stock was up 0.7% in the most recent premarket activity.
On a fully taxable-equivalent basis, net interest income jumped 34% to $1.94 billion, buoyed by the addition of Comerica earning assets and lower funding costs, according to the lender. Noninterest income climbed 29% to $895 million.
For 2026, the bank now anticipates net interest income to come in between $8.7 billion and $8.8 billion, according to an earnings presentation, reflecting a higher bottom end versus its previous outlook of $8.6 billion issued in January. For the ongoing quarter, it expects the metric to be at $2.2 billion to $2.25 billion.
Separately, Regions Financial's adjusted EPS increased to $0.62 for the first quarter from $0.54 a year earlier, topping the average analyst estimate on FactSet of $0.60. Adjusted revenue improved 3.5% to $1.87 billion, but missed the Street's forecast of $1.91 billion. Regions' stock slipped 0.2% before the opening bell.
"Our results reflect the strength of our franchise, the continued momentum of our markets, and our consistent focus on solid execution amid an evolving macroeconomic backdrop," CEO John Turner said. "Growth in loans and deposits accelerated during the first quarter, credit metrics continued to improve, and client sentiment remained generally optimistic across our footprint."
Net interest income came in at $1.26 billion on a taxable-equivalent basis, up from $1.21 billion in the 2025 quarter, but was down 2.6% from the previous three-month period. Noninterest income inclined 5.9% to $625 million.
The lender continues to project net interest income to grow by 2.5% to 4% for the current full year, it said in an earnings presentation. The metric is expected to increase by about 2% sequentially in the second quarter.