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BIRMINGHAM, Ala.--(BUSINESS WIRE)--Regions Financial Corp. (NYSE:RF) today reported second quarter 2026 earnings of $549 million and diluted EPS of $0.64. On an adjusted basis, earnings(1) were $583 million, with diluted EPS(1) of $0.68. Total revenue remained relatively stable while diluted EPS increased 8 percent compared to second quarter of 2025. Adjusted total revenue(1) increased 2 percent, and adjusted diluted EPS(1) increased 13 percent compared to second quarter of 2025.



Financial Highlights | Soundness | ||||||||
| Quarter Ended |
|
| ||||||
($ amounts in millions, except per share data) |
| 2Q26 |
|
|
| 1Q26 |
|
| |
Earnings Summary |
|
|
|
| |||||
Net income | $ | 570 |
|
| $ | 559 |
|
| |
Net income available to common shareholders |
| 549 |
|
|
| 539 |
|
| |
Adj. net income avail. to common shareholders(1) |
| 583 |
|
|
| 539 |
|
| |
Diluted earnings per common share |
| 0.64 |
|
|
| 0.62 |
|
| |
Adj. diluted earnings per common share(1) |
| 0.68 |
|
|
| 0.62 |
|
| Profitability |
Balance Sheet Summary |
|
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|
|
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Average loans, net of unearned income | $ | 98,722 |
|
| $ | 96,423 |
|
| |
Average deposits |
| 130,691 |
|
|
| 130,234 |
|
| |
Credit Quality |
|
|
|
| |||||
Allowance for credit losses ratio |
| 1.63 | % |
|
| 1.68 | % |
| |
Net charge-offs / average loans* |
| 0.42 |
|
|
| 0.54 |
|
| |
Selected Ratios |
|
|
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Return on average assets* |
| 1.42 | % |
|
| 1.42 | % |
| Growth |
Return on average common equity* |
| 12.73 |
|
|
| 12.35 |
|
|
|
Return on avg. tangible common equity*(1) |
| 19.01 |
|
|
| 18.26 |
|
| |
Adj. return on avg. tangible common equity*(1) |
| 20.18 |
|
|
| 18.26 |
|
| |
Net interest margin (FTE)* |
| 3.66 |
|
|
| 3.67 |
|
| |
Efficiency ratio |
| 58.3 |
|
|
| 56.6 |
|
| |
Adjusted efficiency ratio(1) |
| 56.9 |
|
|
| 56.6 |
|
| |
Common equity Tier 1 ratio(2) |
| 10.7 |
|
|
| 10.7 |
|
| |
Common equity Tier 1 ratio (incl. AOCI)(1)(2) |
| 9.5 |
|
|
| 9.4 |
|
| |
Effective Tax Rate |
| 20.7 |
|
|
| 21.6 |
|
| |
|
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*Annualized (1) Non-GAAP; refer to reconciliations in the financial supplement to this earnings release included as Exhibit 99.2 to the company's Current Report on Form 8-K that was furnished to the Securities and Exchange Commission ("SEC") on Jul. 17, 2026. (2) Current quarter is estimated. |
| ||||||||
John Turner, Chairman, President and CEO of Regions Financial Corp. |
"Strategic execution and solid delivery define our results for the second quarter. And, together, they're giving Regions clear momentum going into the second half of the year. As our markets grow, Regions Bank is focused on leveraging every opportunity to illustrate the Regions difference to more consumers, businesses, Wealth Management clients, and homeowners. We have a solid value proposition. We know the needs and opportunities in our markets based on the depth of our local experience. And we have not only the historical commitment, but also the forward-leaning investments in technology and innovation that we believe position us to compete and grow effectively. The foundation for our growth - including focusing on what we can control, operating to the highest standards, and keeping the customer first - hasn't changed. As we expand our capabilities and grow our talented group of bankers, that foundation is stronger than ever before and will serve us well in the years to come." |
Total revenue | ||||||||||||||||||||||||||
|
| Quarter Ended | ||||||||||||||||||||||||
($ amounts in millions) |
| 6/30/2026 |
| 3/31/2026 |
| 6/30/2025 |
| 2Q26 vs. 1Q26 |
| 2Q26 vs. 2Q25 | ||||||||||||||||
Net interest income |
| $ | 1,277 |
|
| $ | 1,248 |
|
| $ | 1,259 |
|
| $ | 29 |
|
| 2.3 | % |
| $ | 18 |
|
| 1.4 | % |
Taxable equivalent adjustment |
|
| 14 |
|
|
| 13 |
|
|
| 12 |
|
|
| 1 |
|
| 7.7 | % |
|
| 2 |
|
| 16.7 | % |
Net interest income, taxable equivalent basis |
| $ | 1,291 |
|
| $ | 1,261 |
|
| $ | 1,271 |
|
| $ | 30 |
|
| 2.4 | % |
| $ | 20 |
|
| 1.6 | % |
Net interest margin (FTE)* |
|
| 3.66 | % |
|
| 3.67 | % |
|
| 3.65 | % |
|
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|
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Non-interest income: |
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Service charges on deposit accounts |
| $ | 167 |
|
| $ | 163 |
|
| $ | 151 |
|
| $ | 4 |
|
| 2.5 | % |
| $ | 16 |
|
| 10.6 | % |
Card and ATM fees |
|
| 126 |
|
|
| 117 |
|
|
| 125 |
|
|
| 9 |
|
| 7.7 | % |
|
| 1 |
|
| 0.8 | % |
Wealth management income |
|
| 150 |
|
|
| 141 |
|
|
| 133 |
|
|
| 9 |
|
| 6.4 | % |
|
| 17 |
|
| 12.8 | % |
Capital markets income |
|
| 84 |
|
|
| 84 |
|
|
| 83 |
|
|
| — |
|
| — | % |
|
| 1 |
|
| 1.2 | % |
Mortgage income |
|
| 33 |
|
|
| 32 |
|
|
| 48 |
|
|
| 1 |
|
| 3.1 | % |
|
| (15 | ) |
| (31.3 | )% |
Commercial credit fee income |
|
| 28 |
|
|
| 30 |
|
|
| 29 |
|
|
| (2 | ) |
| (6.7 | )% |
|
| (1 | ) |
| (3.4 | )% |
BOLI income |
|
| 24 |
|
|
| 30 |
|
|
| 24 |
|
|
| (6 | ) |
| (20.0 | )% |
|
| — |
|
| — | % |
Market value adjustments on employee benefit assets** |
|
| 24 |
|
|
| (5 | ) |
|
| 16 |
|
|
| 29 |
|
| NM |
|
|
| 8 |
|
| 50.0 | % |
Securities gains (losses), net |
|
| (41 | ) |
|
| (3 | ) |
|
| (1 | ) |
|
| (38 | ) |
| NM |
|
|
| (40 | ) |
| NM |
|
Other miscellaneous income |
|
| 35 |
|
|
| 36 |
|
|
| 38 |
|
|
| (1 | ) |
| (2.8 | )% |
|
| (3 | ) |
| (7.9 | )% |
Non-interest income |
| $ | 630 |
|
| $ | 625 |
|
| $ | 646 |
|
| $ | 5 |
|
| 0.8 | % |
| $ | (16 | ) |
| (2.5 | )% |
|
|
|
|
|
|
|
|
|
|
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|
|
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Adjusted non-interest income (non-GAAP)(1) |
| $ | 670 |
|
| $ | 625 |
|
| $ | 646 |
|
| $ | 45 |
|
| 7.2 | % |
| $ | 24 |
|
| 3.7 | % |
|
|
|
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Total revenue |
| $ | 1,907 |
|
| $ | 1,873 |
|
| $ | 1,905 |
|
| $ | 34 |
|
| 1.8 | % |
| $ | 2 |
|
| 0.1 | % |
|
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Adjusted total revenue (non-GAAP)(1) |
| $ | 1,947 |
|
| $ | 1,873 |
|
| $ | 1,905 |
|
| $ | 74 |
|
| 4.0 | % |
| $ | 42 |
|
| 2.2 | % |
|
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NM - Not Meaningful | ||||||||||||||||||||||||||
* Annualized | ||||||||||||||||||||||||||
** These market value adjustments relate to assets held for employee and director benefits that are effectively offset within salaries and employee benefits and other non-interest expense. | ||||||||||||||||||||||||||
Total revenue increased 2 percent on a reported basis and 4 percent on an adjusted basis(1) compared to the first quarter of 2026. Net interest income increased 2 percent driven primarily by average loan growth, fixed-rate asset turnover, one additional day in the quarter and continued prudent management of deposit costs. Net interest margin decreased 1 basis point to 3.66 percent. While loan growth and one additional day benefit net interest income, they reduce the net interest margin.
Non-interest income increased 1 percent on a reported basis and 7 percent on an adjusted basis(1) during the second quarter, with the variance attributable to a $40 million securities repositioning loss. Wealth management income increased 6 percent in the second quarter to a new record level attributable primarily to higher production and favorable market conditions. Card and ATM fees increased 8 percent due primarily to seasonally higher transaction volumes. Service charges and mortgage income increased 2 percent and 3 percent, respectively. Market value adjustments for employee benefit assets increased $29 million during the quarter but are effectively offset in non-interest expense.
Non-interest expense | |||||||||||||||||||||||
|
| Quarter Ended | |||||||||||||||||||||
($ amounts in millions) |
| 6/30/2026 |
| 3/31/2026 |
| 6/30/2025 |
| 2Q26 vs. 1Q26 |
| 2Q26 vs. 2Q25 | |||||||||||||
Salaries and employee benefits |
| $ | 697 |
| $ | 659 |
| $ | 658 |
| $ | 38 |
|
| 5.8 | % |
| $ | 39 |
|
| 5.9 | % |
Equipment and software expense |
|
| 107 |
|
| 108 |
|
| 104 |
|
| (1 | ) |
| (0.9 | )% |
|
| 3 |
|
| 2.9 | % |
Net occupancy expense |
|
| 73 |
|
| 72 |
|
| 72 |
|
| 1 |
|
| 1.4 | % |
|
| 1 |
|
| 1.4 | % |
Outside services |
|
| 47 |
|
| 42 |
|
| 39 |
|
| 5 |
|
| 11.9 | % |
|
| 8 |
|
| 20.5 | % |
Marketing |
|
| 28 |
|
| 29 |
|
| 26 |
|
| (1 | ) |
| (3.4 | )% |
|
| 2 |
|
| 7.7 | % |
Professional, legal and regulatory expenses |
|
| 28 |
|
| 28 |
|
| 28 |
|
| — |
|
| — | % |
|
| — |
|
| — | % |
Credit/checkcard expenses |
|
| 16 |
|
| 14 |
|
| 16 |
|
| 2 |
|
| 14.3 | % |
|
| — |
|
| — | % |
FDIC insurance assessments |
|
| 17 |
|
| 19 |
|
| 20 |
|
| (2 | ) |
| (10.5 | )% |
|
| (3 | ) |
| (15.0 | )% |
Visa class B shares expense |
|
| 2 |
|
| 1 |
|
| 4 |
|
| 1 |
|
| 100.0 | % |
|
| (2 | ) |
| (50.0 | )% |
Operational losses |
|
| 8 |
|
| 10 |
|
| 13 |
|
| (2 | ) |
| (20.0 | )% |
|
| (5 | ) |
| (38.5 | )% |
Branch consolidation, property and equipment charges |
|
| 5 |
|
| — |
|
| — |
|
| 5 |
|
| NM |
|
|
| 5 |
|
| NM |
|
Other miscellaneous expenses |
|
| 93 |
|
| 86 |
|
| 93 |
|
| 7 |
|
| 8.1 | % |
|
| — |
|
| — | % |
Non-interest expense |
| $ | 1,121 |
| $ | 1,068 |
| $ | 1,073 |
| $ | 53 |
|
| 5.0 | % |
| $ | 48 |
|
| 4.5 | % |
Adjusted non-interest expense (non-GAAP)(1) |
| $ | 1,116 |
| $ | 1,068 |
| $ | 1,073 |
| $ | 48 |
|
| 4.5 | % |
| $ | 43 |
|
| 4.0 | % |
|
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|
|
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|
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Salaries and Employee Benefits Expense | ||||||||||||||||||||||
|
| Quarter Ended | ||||||||||||||||||||
($ amounts in millions) |
| 6/30/2026 |
| 3/31/2026 |
| 6/30/2025 |
| 2Q26 vs. 1Q26 |
| 2Q26 vs. 2Q25 | ||||||||||||
Salaries and employee benefits |
| $ | 697 |
| $ | 659 |
|
| $ | 658 |
| $ | 38 |
| 5.8 | % |
| $ | 39 |
| 5.9 | % |
Less: Market value adjustments on supplemental 401(k) liabilities* |
|
| 24 |
|
| (4 | ) |
|
| 16 |
|
| 28 |
| NM |
|
|
| 8 |
| 50.0 | % |
Salaries and employee benefits less market value adjustments on employee benefit liabilities |
| $ | 673 |
| $ | 663 |
|
| $ | 642 |
| $ | 10 |
| 1.5 | % |
| $ | 31 |
| 4.8 | % |
|
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|
|
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|
|
|
|
|
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NM - Not Meaningful | ||||||||||||||||||||||
* The company holds assets in order to effectively offset the market value adjustments on supplemental 401(k) liabilities and the market value adjustments on those assets are recorded in non-interest income. | ||||||||||||||||||||||
Non-interest expenses increased 5 percent on a reported and 4 percent on an adjusted basis(1) compared to the first quarter of 2026. Salaries and benefits increased 6 percent as elevated market value adjustments for supplemental employee benefit liabilities, higher revenue-based incentives, two additional months' impact of associate merit increases, and one additional day were partially offset by seasonal decreases in payroll taxes and 401(k) contributions. Outside services increased 12 percent primarily attributable to the timing and volume of services performed. FDIC insurance assessments decreased 11 percent attributable to the unsecured debt adjustment tied to the company's debt issuance during the quarter. The company's second quarter efficiency ratio was 58.3 percent on a reported basis and 56.9 percent on an adjusted basis(1).
Loans | |||||||||||||||||||||||
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| Average Balances | |||||||||||||||||||||
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($ amounts in millions, net of unearned income) |
| 2Q26 |
| 1Q26 |
| 2Q25 |
| 2Q26 vs. 1Q26 |
| 2Q26 vs. 2Q25 | |||||||||||||
Commercial and industrial |
| $ | 51,504 |
| $ | 49,572 |
| $ | 49,033 |
| $ | 1,932 |
|
| 3.9 | % |
| $ | 2,471 |
|
| 5.0 | % |
Commercial real estate—owner-occupied |
|
| 5,342 |
|
| 5,146 |
|
| 5,170 |
|
| 196 |
|
| 3.8 | % |
|
| 172 |
|
| 3.3 | % |
Investor real estate |
|
| 9,789 |
|
| 9,327 |
|
| 9,009 |
|
| 462 |
|
| 5.0 | % |
|
| 780 |
|
| 8.7 | % |
Business Lending |
|
| 66,635 |
|
| 64,045 |
|
| 63,212 |
|
| 2,590 |
|
| 4.0 | % |
|
| 3,423 |
|
| 5.4 | % |
Residential first mortgage |
|
| 19,551 |
|
| 19,674 |
|
| 19,992 |
|
| (123 | ) |
| (0.6 | )% |
|
| (441 | ) |
| (2.2 | )% |
Home equity |
|
| 5,496 |
|
| 5,514 |
|
| 5,525 |
|
| (18 | ) |
| (0.3 | )% |
|
| (29 | ) |
| (0.5 | )% |
Consumer credit card |
|
| 1,474 |
|
| 1,473 |
|
| 1,397 |
|
| 1 |
|
| 0.1 | % |
|
| 77 |
|
| 5.5 | % |
Other consumer* |
|
| 5,566 |
|
| 5,717 |
|
| 5,951 |
|
| (151 | ) |
| (2.6 | )% |
|
| (385 | ) |
| (6.5 | )% |
Consumer Lending |
|
| 32,087 |
|
| 32,378 |
|
| 32,865 |
|
| (291 | ) |
| (0.9 | )% |
|
| (778 | ) |
| (2.4 | )% |
Total Loans |
| $ | 98,722 |
| $ | 96,423 |
| $ | 96,077 |
| $ | 2,299 |
|
| 2.4 | % |
| $ | 2,645 |
|
| 2.8 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
| Ending Balances | |||||||||||||||||||||
|
|
|
|
|
|
|
| 6/30/2026 |
| 6/30/2026 | |||||||||||||
($ amounts in millions, net of unearned income) |
| 6/30/2026 |
| 3/31/2026 |
| 6/30/2025 |
| vs. 3/31/2026 |
| vs. 6/30/2025 | |||||||||||||
Commercial and industrial |
| $ | 51,841 |
| $ | 50,824 |
| $ | 49,586 |
| $ | 1,017 |
|
| 2.0 | % |
| $ | 2,255 |
|
| 4.5 | % |
Commercial real estate—owner-occupied |
|
| 5,394 |
|
| 5,265 |
|
| 5,165 |
|
| 129 |
|
| 2.5 | % |
|
| 229 |
|
| 4.4 | % |
Investor real estate |
|
| 9,969 |
|
| 9,644 |
|
| 9,098 |
|
| 325 |
|
| 3.4 | % |
|
| 871 |
|
| 9.6 | % |
Business Lending |
|
| 67,204 |
|
| 65,733 |
|
| 63,849 |
|
| 1,471 |
|
| 2.2 | % |
|
| 3,355 |
|
| 5.3 | % |
Residential first mortgage |
|
| 19,498 |
|
| 19,621 |
|
| 20,020 |
|
| (123 | ) |
| (0.6 | )% |
|
| (522 | ) |
| (2.6 | )% |
Home equity |
|
| 5,504 |
|
| 5,497 |
|
| 5,536 |
|
| 7 |
|
| 0.1 | % |
|
| (32 | ) |
| (0.6 | )% |
Consumer credit card |
|
| 1,498 |
|
| 1,472 |
|
| 1,415 |
|
| 26 |
|
| 1.8 | % |
|
| 83 |
|
| 5.9 | % |
Other consumer* |
|
| 5,496 |
|
| 5,603 |
|
| 5,903 |
|
| (107 | ) |
| (1.9 | )% |
|
| (407 | ) |
| (6.9 | )% |
Consumer Lending |
|
| 31,996 |
|
| 32,193 |
|
| 32,874 |
|
| (197 | ) |
| (0.6 | )% |
|
| (878 | ) |
| (2.7 | )% |
Total Loans |
| $ | 99,200 |
| $ | 97,926 |
| $ | 96,723 |
| $ | 1,274 |
|
| 1.3 | % |
| $ | 2,477 |
|
| 2.6 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
NM - Not meaningful. | |||||||||||||||||||||||
* Other consumer loans includes Regions' Home Improvement Financing portfolio. | |||||||||||||||||||||||
Average loans increased 2 percent while ending loans increased 1 percent compared to the prior quarter. Average business loans increased 4 percent during the quarter while average consumer loans decreased 1 percent. Growth was driven by broad-based C&I lending categories including power and utilities, manufacturing, government and public sector and retail trade. Investor real estate delivered solid growth during the quarter, driven by strong production and increased bridge-financing activity within the multifamily sector, as elevated long-term interest rates have slowed permanent financing. Loan growth remained high quality, with investment grade credits representing more than half of new balances.
Deposits | |||||||||||||||||||||||
| |||||||||||||||||||||||
|
| Average Balances | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
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($ amounts in millions) |
| 2Q26 |
| 1Q26 |
| 2Q25 |
| 2Q26 vs. 1Q26 |
| 2Q26 vs. 2Q25 | |||||||||||||
Total interest-bearing deposits |
| $ | 90,953 |
| $ | 91,074 |
| $ | 89,888 |
| $ | (121 | ) |
| (0.1 | )% |
| $ | 1,065 |
|
| 1.2 | % |
Non-interest-bearing deposits |
|
| 39,738 |
|
| 39,160 |
|
| 39,556 |
|
| 578 |
|
| 1.5 | % |
|
| 182 |
|
| 0.5 | % |
Total Deposits |
| $ | 130,691 |
| $ | 130,234 |
| $ | 129,444 |
| $ | 457 |
|
| 0.4 | % |
| $ | 1,247 |
|
| 1.0 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
($ amounts in millions) |
| 2Q26 |
| 1Q26 |
| 2Q25 |
| 2Q26 vs. 1Q26 |
| 2Q26 vs. 2Q25 | |||||||||||||
Consumer Bank Segment |
| $ | 80,624 |
| $ | 79,599 |
| $ | 79,912 |
| $ | 1,025 |
|
| 1.3 | % |
| $ | 712 |
|
| 0.9 | % |
Corporate Bank Segment |
|
| 40,106 |
|
| 40,707 |
|
| 39,234 |
|
| (601 | ) |
| (1.5 | )% |
|
| 872 |
|
| 2.2 | % |
Wealth Management Segment |
|
| 7,594 |
|
| 7,777 |
|
| 7,324 |
|
| (183 | ) |
| (2.4 | )% |
|
| 270 |
|
| 3.7 | % |
Other* |
|
| 2,367 |
|
| 2,151 |
|
| 2,974 |
|
| 216 |
|
| 10.0 | % |
|
| (607 | ) |
| (20.4 | )% |
Total Deposits |
| $ | 130,691 |
| $ | 130,234 |
| $ | 129,444 |
| $ | 457 |
|
| 0.4 | % |
| $ | 1,247 |
|
| 1.0 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
|
| End of Period Deposits | |||||||||||||||||||||
|
|
|
|
|
|
|
| 6/30/2026 |
| 6/30/2026 | |||||||||||||
($ amounts in millions) |
| 6/30/2026 |
| 3/31/2026 |
| 6/30/2025 |
| vs. 3/31/2026 |
| vs. 6/30/2025 | |||||||||||||
Consumer Bank Segment |
| $ | 80,972 |
| $ | 81,271 |
| $ | 79,953 |
| $ | (299 | ) |
| (0.4 | )% |
| $ | 1,019 |
|
| 1.3 | % |
Corporate Bank Segment |
|
| 39,952 |
|
| 40,574 |
|
| 40,101 |
|
| (622 | ) |
| (1.5 | )% |
|
| (149 | ) |
| (0.4 | )% |
Wealth Management Segment |
|
| 7,466 |
|
| 7,750 |
|
| 7,352 |
|
| (284 | ) |
| (3.7 | )% |
|
| 114 |
|
| 1.6 | % |
Other* |
|
| 2,320 |
|
| 2,285 |
|
| 3,513 |
|
| 35 |
|
| 1.5 | % |
|
| (1,193 | ) |
| (34.0 | )% |
Total Deposits |
| $ | 130,710 |
| $ | 131,880 |
| $ | 130,919 |
| $ | (1,170 | ) |
| (0.9 | )% |
| $ | (209 | ) |
| (0.2 | )% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
NM - Not meaningful. | |||||||||||||||||||||||
*Other deposits represent non-customer balances primarily consisting of wholesale funding (for example, selected deposits and brokered time deposits) and additional wholesale funding arrangements. | |||||||||||||||||||||||
The company's deposit base continues to be a source of strength and an industry differentiator in liquidity and margin performance. Average deposits grew modestly while ending deposits decreased 1 percent during the quarter. Average consumer deposits increased 1 percent, while average corporate and wealth deposits declined 1 percent and 2 percent, respectively.
Asset quality | ||||||
|
| As of and for the Quarter Ended | ||||
($ amounts in millions) |
| 6/30/2026 |
| 3/31/2026 |
| 6/30/2025 |
Allowance for credit losses (ACL) at period end |
| $1,613 |
| $1,647 |
| $1,743 |
ACL/Loans, net |
| 1.63% |
| 1.68% |
| 1.80% |
Business criticized loans to total business loans |
| 5.01% |
| 5.15% |
| 7.22% |
Allowance for credit losses to non-performing loans, excluding loans held for sale |
| 241% |
| 238% |
| 225% |
Provision for credit losses |
| $68 |
| $91 |
| $126 |
Net loans charged-off |
| $102 |
| $130 |
| $113 |
Net loans charged-off as a % of average loans, annualized |
| 0.42% |
| 0.54% |
| 0.47% |
Non-performing loans, excluding loans held for sale/Loans, net |
| 0.67% |
| 0.71% |
| 0.80% |
NPAs (ex. 90+ past due)/Loans, foreclosed properties, and non-performing loans held for sale |
| 0.69% |
| 0.73% |
| 0.84% |
NPAs (inc. 90+ past due)/Loans, foreclosed properties, and non-performing loans held for sale* |
| 0.85% |
| 0.90% |
| 1.01% |
Total Criticized Loans—Business Services** |
| $3,370 |
| $3,384 |
| $4,608 |
* Excludes fully guaranteed residential first mortgages that are 90+ days past due and still accruing. | ||||||
** Business services represents the combined total of commercial and investor real estate loans. | ||||||
Asset quality trends continued to improve during the quarter, with credit performance reflecting increasing stability across the portfolio. Feedback from commercial customers and ongoing engagement by relationship managers indicates business sentiment remains constructive, while consumer credit fundamentals remain healthy. Consumer spending patterns across Regions' customer base were generally consistent with recent trends, and employment conditions remain supportive. While these trends remain favorable, the company continues to closely monitor economic uncertainty and portfolios with heightened risk or interest rate sensitivity.
Net charge-offs were $102 million or an annualized 42 basis points of average loans, representing a 12 basis point decrease compared to the first quarter of 2026. Business services criticized and total non-performing loans both declined during the quarter. The ratio of non-performing loans as a percentage of total loans declined 4 basis points to 0.67 percent, and the ratio of business services criticized loans as a percentage of total business loans declined 14 basis points to 5.01 percent.
High-quality loan growth modestly increased the allowance, but that increase was offset by progress in resolving loans within previously identified portfolios of interest and continued improvement in underlying credit metrics. As a result, the allowance for credit losses declined $34 million driving a 5 basis point reduction in the allowance ratio to 1.63 percent, while coverage of non-performing loans increased to 241 percent.
Capital and liquidity | ||||||
|
| As of and for Quarter Ended | ||||
|
| 6/30/2026 |
| 3/31/2026 |
| 6/30/2025 |
Common Equity Tier 1 ratio(2) |
| 10.7% |
| 10.7% |
| 10.8% |
Common equity Tier 1 ratio (incl. AOCI) (non-GAAP)(1)(2) |
| 9.5% |
| 9.4% |
| 9.3% |
Tier 1 capital ratio(2) |
| 11.8% |
| 11.8% |
| 11.9% |
Total shareholders' equity to total assets |
| 11.68% |
| 11.68% |
| 11.72% |
Tangible common shareholders’ equity to tangible assets (non-GAAP)(1) |
| 7.55% |
| 7.54% |
| 7.52% |
Common book value per share |
| $20.48 |
| $20.39 |
| $19.35 |
Tangible common book value per share (non-GAAP)(1) |
| $13.78 |
| $13.69 |
| $12.91 |
Loans, net of unearned income, to total deposits |
| 75.9% |
| 74.3% |
| 73.9% |
Regions maintained a strong capital position in the second quarter with estimated capital ratios remaining well above current regulatory requirements. At quarter-end, the Common Equity Tier 1 (CET1)(2) and Tier 1 capital(2) ratios were estimated at 10.7 percent and 11.8 percent respectively. Including the impacts of accumulated other comprehensive income, CET1(1)(2) was estimated at 9.5 percent.
During the second quarter, the company repurchased approximately 2.1 million shares of common stock for a total of $59 million through open-market purchases and declared $226 million in dividends to common shareholders. Earlier this week, the Board of Directors declared a quarterly common stock dividend of $0.30 per share, representing a 13 percent increase over the previous quarter and a continuation of Regions' history of strong dividend growth. Over the past 10 years, Regions has increased its common stock dividend 16 percent on a compound annual growth rate basis, ranking within the top quartile among the company's peer group.
Tangible common book value per share(1) ended the quarter at $13.78, a 7 percent increase year-over-year.
The company's liquidity position also remained robust with total available liquidity as of June 30, 2026, of approximately $69 billion, which includes cash held at the Federal Reserve, FHLB borrowing capacity, unencumbered securities, and capacity at the Federal Reserve's facilities such as the Discount Window or Standing Repo Operations. These sources are sufficient to cover uninsured deposits at a ratio of approximately 181 percent as of quarter-end (excluding intercompany and secured deposits).
(1) Non-GAAP; refer to reconciliations on pages 13 17, 18, 19 and 20 of the financial supplement to this earnings release included as Exhibit 99.2 to the company's Current Report on Form 8-K that was furnished to the SEC on Jul. 17, 2026. |
(2) Current quarter Common Equity Tier 1 and Tier 1 capital ratios are estimated. |
Conference Call
The company will hold a live audio webcast to discuss second quarter 2026 results on July 17, 2026 at 10 a.m. ET. To access this live audio webcast, visit the Investor Relations page at ir.regions.com. An archived recording of the webcast will be available at the Investor Relations page at ir.regions.com following the live event.
About Regions Financial Corporation
Regions Financial Corporation (NYSE:RF), with $161 billion in assets, is a member of the S&P 500 Index and is one of the nation’s largest full-service providers of consumer and commercial banking, wealth management, and mortgage products and services. Regions serves customers across the South, Midwest and Texas, and through its subsidiary, Regions Bank, operates more than 1,200 banking offices and more than 1,750 ATMs. Regions Bank is an Equal Housing Lender and Member FDIC. Additional information about Regions and its full line of products and services can be found at www.regions.com.
Forward-Looking Statements
This release and the accompanying earnings call may include forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. In addition, the company, through its senior management, may from time to time make forward-looking public statements concerning the matters described herein. The words “future,” “anticipates,” “assumes,” “intends,” “plans,” “seeks,” “believes,” “predicts,” “potential,” “objectives,” “estimates,” “expects,” “targets,” “projects,” “outlook,” “forecast,” “would,” “will,” “may,” “might,” “could,” “should,” “can,” and similar terms, expressions, and graphics often signify forward-looking statements. Forward-looking statements are subject to the risk that the actual effects may differ, possibly materially, from what is reflected in those forward-looking statements due to factors and future developments that are uncertain, unpredictable and in many cases beyond our control. Forward-looking statements are not based on historical information, but rather are related to future operations, strategies, financial results or other developments. Forward-looking statements are based on management’s current expectations as well as certain assumptions and estimates made by, and information available to, management at the time the statements are made. Those statements are based on general assumptions and are subject to various risks, and because they also relate to the future, they are likewise subject to inherent uncertainties and other factors that may cause actual results to differ materially from the views, beliefs and projections expressed in such statements. Therefore, we caution you against relying on any of these forward-looking statements. These risks, uncertainties and other factors include, but are not limited to, those described below:
Investor Relations:
Tom Speir, (205) 264-7040
Media:
Jeremy King, (205) 264-4551
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