Regions Reports Earnings of $611 Million and EPS of $0.71 in 3Q 2026
BIRMINGHAM, Ala.--(BUSINESS WIRE)--Regions Financial Corp. (NYSE:RF) today reported third quarter 2026 earnings of $611 million and diluted earnings per share (EPS) of $0.71. On an adjusted basis, earnings(1) were $622 million and diluted EPS(1) was $0.73. On both a reported and adjusted basis(1), earnings increased 11 percent and diluted EPS increased 16 percent compared to the third quarter of 2025.
Financial Highlights | Soundness | ||||||||
| Quarter Ended |
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($ amounts in millions, except per share data) |
| 3Q26 |
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| 2Q26 |
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| |
Earnings Summary |
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Net income | $ | 631 |
|
| $ | 570 |
|
| |
Net income available to common shareholders |
| 611 |
|
|
| 549 |
|
| |
Adj. net income avail. to common shareholders(1) |
| 622 |
|
|
| 583 |
|
| |
Diluted earnings per common share |
| 0.71 |
|
|
| 0.64 |
|
| |
Adj. diluted earnings per common share(1) |
| 0.73 |
|
|
| 0.68 |
|
| Profitability |
Balance Sheet Summary |
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Average loans, net of unearned income | $ | 99,183 |
|
| $ | 98,722 |
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| |
Average deposits |
| 129,140 |
|
|
| 130,691 |
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| |
Credit Quality |
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Allowance for credit losses ratio |
| 1.61 | % |
|
| 1.63 | % |
| |
Net charge-offs / average loans* |
| 0.29 |
|
|
| 0.42 |
|
| |
Selected Ratios |
|
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| |||||
Return on average assets* |
| 1.55 | % |
|
| 1.42 | % |
| Growth |
Return on average common equity* |
| 14.16 |
|
|
| 12.73 |
|
|
|
Return on avg. tangible common equity*(1) |
| 21.27 |
|
|
| 19.01 |
|
| |
Adj. return on avg. tangible common equity*(1) |
| 21.66 |
|
|
| 20.18 |
|
| |
Net interest margin (FTE)* |
| 3.68 |
|
|
| 3.66 |
|
| |
Efficiency ratio |
| 56.2 |
|
|
| 58.3 |
|
| |
Adjusted efficiency ratio(1) |
| 55.8 |
|
|
| 56.9 |
|
| |
Common equity Tier 1 ratio(2) |
| 10.8 |
|
|
| 10.7 |
|
| |
Effective Tax Rate |
| 19.8 |
|
|
| 20.7 |
|
| |
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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 Oct. 16, 2026. (2) Current quarter is estimated. | |||||||||
CEO Perspective: John Turner, Chairman, President and CEO of Regions Financial Corp. |
"At Regions Bank, we're seeing the benefits of the investments we're making in talent, technology and strategic growth. By remaining disciplined in our approach to risk management and staying committed to soundness, profitability, and growth, we are delivering strong results built on solid fundamentals and a competitive strategy. Strong credit quality, continued momentum in fee-based businesses, and economically vibrant markets throughout our footprint all contributed to our third quarter results. As we continue to modernize the franchise and expand our capabilities, Regions Bank is well positioned to meet the evolving needs of our customers and drive more sustainable growth over time." |
Total revenue | ||||||||||||||||||||||||||
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| Quarter Ended | ||||||||||||||||||||||||
($ amounts in millions) |
| 9/30/2026 |
| 6/30/2026 |
| 9/30/2025 |
| 3Q26 vs. 2Q26 |
| 3Q26 vs. 3Q25 | ||||||||||||||||
Net interest income |
| $ | 1,298 |
|
| $ | 1,277 |
|
| $ | 1,257 |
|
| $ | 21 |
|
| 1.6 | % |
| $ | 41 |
|
| 3.3 | % |
Taxable equivalent adjustment |
|
| 16 |
|
|
| 14 |
|
|
| 12 |
|
|
| 2 |
|
| 14.3 | % |
|
| 4 |
|
| 33.3 | % |
Net interest income, taxable equivalent basis |
| $ | 1,314 |
|
| $ | 1,291 |
|
| $ | 1,269 |
|
| $ | 23 |
|
| 1.8 | % |
| $ | 45 |
|
| 3.5 | % |
Net interest margin (FTE)* |
|
| 3.68 | % |
|
| 3.66 | % |
|
| 3.59 | % |
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Non-interest income: |
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Service charges on deposit accounts |
| $ | 171 |
|
| $ | 167 |
|
| $ | 160 |
|
| $ | 4 |
|
| 2.4 | % |
| $ | 11 |
|
| 6.9 | % |
Card and ATM fees |
|
| 126 |
|
|
| 126 |
|
|
| 122 |
|
|
| — |
|
| — | % |
|
| 4 |
|
| 3.3 | % |
Wealth management income |
|
| 146 |
|
|
| 150 |
|
|
| 139 |
|
|
| (4 | ) |
| (2.7 | )% |
|
| 7 |
|
| 5.0 | % |
Capital markets income |
|
| 107 |
|
|
| 84 |
|
|
| 104 |
|
|
| 23 |
|
| 27.4 | % |
|
| 3 |
|
| 2.9 | % |
Mortgage income |
|
| 32 |
|
|
| 33 |
|
|
| 38 |
|
|
| (1 | ) |
| (3.0 | )% |
|
| (6 | ) |
| (15.8 | )% |
Commercial credit fee income |
|
| 35 |
|
|
| 28 |
|
|
| 28 |
|
|
| 7 |
|
| 25.0 | % |
|
| 7 |
|
| 25.0 | % |
BOLI income |
|
| 32 |
|
|
| 24 |
|
|
| 25 |
|
|
| 8 |
|
| 33.3 | % |
|
| 7 |
|
| 28.0 | % |
Market value adjustments on employee benefit assets** |
|
| (4 | ) |
|
| 24 |
|
|
| 12 |
|
|
| (28 | ) |
| (116.7 | )% |
|
| (16 | ) |
| (133.3 | )% |
Securities gains (losses), net |
|
| (15 | ) |
|
| (41 | ) |
|
| (27 | ) |
|
| 26 |
|
| 63.4 | % |
|
| 12 |
|
| 44.4 | % |
Other miscellaneous income |
|
| 45 |
|
|
| 35 |
|
|
| 58 |
|
|
| 10 |
|
| 28.6 | % |
|
| (13 | ) |
| (22.4 | )% |
Non-interest income |
| $ | 675 |
|
| $ | 630 |
|
| $ | 659 |
|
| $ | 45 |
|
| 7.1 | % |
| $ | 16 |
|
| 2.4 | % |
|
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Adjusted non-interest income (non-GAAP)(1) |
| $ | 690 |
|
| $ | 670 |
|
| $ | 684 |
|
| $ | 20 |
|
| 3.0 | % |
| $ | 6 |
|
| 0.9 | % |
|
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Total revenue |
| $ | 1,973 |
|
| $ | 1,907 |
|
| $ | 1,916 |
|
| $ | 66 |
|
| 3.5 | % |
| $ | 57 |
|
| 3.0 | % |
|
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Adjusted total revenue (non-GAAP)(1) |
| $ | 1,988 |
|
| $ | 1,947 |
|
| $ | 1,941 |
|
| $ | 41 |
|
| 2.1 | % |
| $ | 47 |
|
| 2.4 | % |
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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 3 percent on a reported basis and 2 percent on an adjusted basis(1) compared to the second quarter of 2026. Net interest income increased 2 percent driven primarily by fixed-rate asset turnover, average loan growth, higher hedging income, credit interest recoveries, one additional day in the quarter and continued prudent management of deposit costs, partially offset by an increase in non-deposit funding costs. Net interest margin increased 2 basis points to 3.68 percent.
Non-interest income increased 7 percent on a reported basis and 3 percent on an adjusted basis(1) during the third quarter. With respect to adjusted items, the company incurred $15 million in securities losses in the third quarter compared to $40 million in the second quarter, attributable to the execution of additional securities repositioning trades. Record capital markets income increased 27 percent driven by higher mergers and acquisitions advisory revenue, securities underwriting and placement fees, commercial swap income and syndication revenue. Service charges increased 2 percent reflecting record Treasury Management income, one additional business day in the quarter, and seasonally higher consumer-related activity. Commercial credit fee income increased 25 percent driven by higher standby letter of credit income and commercial unused fees. Bank-owned life insurance increased 33 percent due to higher death benefit proceeds recognized during the quarter. Wealth management income decreased 3 percent following a record second quarter, primarily reflecting lower production volumes. Market value adjustments associated with employee benefit assets declined $28 million during the quarter and were largely offset by corresponding changes in non-interest expense.
Non-interest expense | ||||||||||||||||||||||||
|
| Quarter Ended | ||||||||||||||||||||||
($ amounts in millions) |
| 9/30/2026 |
| 6/30/2026 |
| 9/30/2025 |
| 3Q26 vs. 2Q26 |
| 3Q26 vs. 3Q25 | ||||||||||||||
Salaries and employee benefits |
| $ | 694 |
| $ | 697 |
| $ | 671 |
|
| $ | (3 | ) |
| (0.4 | )% |
| $ | 23 |
|
| 3.4 | % |
Equipment and software expense |
|
| 113 |
|
| 107 |
|
| 106 |
|
|
| 6 |
|
| 5.6 | % |
|
| 7 |
|
| 6.6 | % |
Net occupancy expense |
|
| 74 |
|
| 73 |
|
| 72 |
|
|
| 1 |
|
| 1.4 | % |
|
| 2 |
|
| 2.8 | % |
Outside services |
|
| 45 |
|
| 47 |
|
| 42 |
|
|
| (2 | ) |
| (4.3 | )% |
|
| 3 |
|
| 7.1 | % |
Marketing |
|
| 29 |
|
| 28 |
|
| 28 |
|
|
| 1 |
|
| 3.6 | % |
|
| 1 |
|
| 3.6 | % |
Professional, legal and regulatory expenses |
|
| 35 |
|
| 28 |
|
| 30 |
|
|
| 7 |
|
| 25.0 | % |
|
| 5 |
|
| 16.7 | % |
Credit/checkcard expenses |
|
| 18 |
|
| 16 |
|
| 15 |
|
|
| 2 |
|
| 12.5 | % |
|
| 3 |
|
| 20.0 | % |
FDIC insurance assessments |
|
| 16 |
|
| 17 |
|
| 15 |
|
|
| (1 | ) |
| (5.9 | )% |
|
| 1 |
|
| 6.7 | % |
Visa class B shares expense |
|
| 4 |
|
| 2 |
|
| 8 |
|
|
| 2 |
|
| 100.0 | % |
|
| (4 | ) |
| (50.0 | )% |
Operational losses |
|
| 7 |
|
| 8 |
|
| 18 |
|
|
| (1 | ) |
| (12.5 | )% |
|
| (11 | ) |
| (61.1 | )% |
Branch consolidation, property and equipment charges |
|
| — |
|
| 5 |
|
| (5 | ) |
|
| (5 | ) |
| (100.0 | )% |
|
| 5 |
|
| 100.0 | % |
Other miscellaneous expenses |
|
| 83 |
|
| 93 |
|
| 103 |
|
|
| (10 | ) |
| (10.8 | )% |
|
| (20 | ) |
| (19.4 | )% |
Non-interest expense |
| $ | 1,118 |
| $ | 1,121 |
| $ | 1,103 |
|
| $ | (3 | ) |
| (0.3 | )% |
| $ | 15 |
|
| 1.4 | % |
Adjusted non-interest expense (non-GAAP)(1) |
| $ | 1,118 |
| $ | 1,116 |
| $ | 1,111 |
|
| $ | 2 |
|
| 0.2 | % |
| $ | 7 |
|
| 0.6 | % |
|
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|
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Salaries and Employee Benefits Expense | ||||||||||||||||||||||||
|
| Quarter Ended | ||||||||||||||||||||||
($ amounts in millions) |
| 9/30/2026 |
| 6/30/2026 |
| 9/30/2025 |
| 3Q26 vs. 2Q26 |
| 3Q26 vs. 3Q25 | ||||||||||||||
Salaries and employee benefits |
| $ | 694 |
|
| $ | 697 |
| $ | 671 |
| $ | (3 | ) |
| (0.4 | )% |
| $ | 23 |
|
| 3.4 | % |
Less: Market value adjustments on supplemental 401(k) liabilities* |
|
| (2 | ) |
|
| 24 |
|
| 13 |
|
| (26 | ) |
| (108.3 | )% |
|
| (15 | ) |
| (115.4 | )% |
Salaries and employee benefits less market value adjustments on employee benefit liabilities |
| $ | 696 |
|
| $ | 673 |
| $ | 658 |
| $ | 23 |
|
| 3.4 | % |
| $ | 38 |
|
| 5.8 | % |
|
|
|
|
|
|
|
|
|
|
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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 remained relatively stable on both a reported and adjusted basis(1) compared to the second quarter of 2026. Professional, legal, and regulatory expense increase driven primarily by higher legal settlement costs. Equipment and software expense increased 6 percent primarily reflecting software as a service charges associated with ongoing technology and infrastructure investments. Salaries and benefits were relatively stable as increases in base salaries and revenue-based incentives were largely offset by lower market value adjustments for supplemental employee benefit liabilities. The company's efficiency ratio was 56.2 percent on a reported basis and 55.8 percent on an adjusted basis(1) for the third quarter.
Loans | |||||||||||||||||||||||
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| Average Balances | |||||||||||||||||||||
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($ amounts in millions, net of unearned income) |
| 3Q26 |
| 2Q26 |
| 3Q25 |
| 3Q26 vs. 2Q26 |
| 3Q26 vs. 3Q25 | |||||||||||||
Commercial and industrial |
| $ | 51,910 |
| $ | 51,504 |
| $ | 49,588 |
| $ | 406 |
|
| 0.8 | % |
| $ | 2,322 |
|
| 4.7 | % |
Commercial real estate—owner-occupied |
|
| 5,360 |
|
| 5,342 |
|
| 5,134 |
|
| 18 |
|
| 0.3 | % |
|
| 226 |
|
| 4.4 | % |
Investor real estate |
|
| 9,992 |
|
| 9,789 |
|
| 9,138 |
|
| 203 |
|
| 2.1 | % |
|
| 854 |
|
| 9.3 | % |
Business Lending |
|
| 67,262 |
|
| 66,635 |
|
| 63,860 |
|
| 627 |
|
| 0.9 | % |
|
| 3,402 |
|
| 5.3 | % |
Residential first mortgage |
|
| 19,423 |
|
| 19,551 |
|
| 19,944 |
|
| (128 | ) |
| (0.7 | )% |
|
| (521 | ) |
| (2.6 | )% |
Home equity |
|
| 5,511 |
|
| 5,496 |
|
| 5,538 |
|
| 15 |
|
| 0.3 | % |
|
| (27 | ) |
| (0.5 | )% |
Consumer credit card |
|
| 1,492 |
|
| 1,474 |
|
| 1,420 |
|
| 18 |
|
| 1.2 | % |
|
| 72 |
|
| 5.1 | % |
Other consumer* |
|
| 5,495 |
|
| 5,566 |
|
| 5,885 |
|
| (71 | ) |
| (1.3 | )% |
|
| (390 | ) |
| (6.6 | )% |
Consumer Lending |
|
| 31,921 |
|
| 32,087 |
|
| 32,787 |
|
| (166 | ) |
| (0.5 | )% |
|
| (866 | ) |
| (2.6 | )% |
Total Loans |
| $ | 99,183 |
| $ | 98,722 |
| $ | 96,647 |
| $ | 461 |
|
| 0.5 | % |
| $ | 2,536 |
|
| 2.6 | % |
|
|
|
|
|
|
|
|
|
|
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| Ending Balances | |||||||||||||||||||||
|
|
|
|
|
|
|
| 9/30/2026 |
| 9/30/2026 | |||||||||||||
($ amounts in millions, net of unearned income) |
| 9/30/2026 |
| 6/30/2026 |
| 9/30/2025 |
| vs. 6/30/2026 |
| vs. 9/30/2025 | |||||||||||||
Commercial and industrial |
| $ | 52,409 |
| $ | 51,841 |
| $ | 49,234 |
| $ | 568 |
|
| 1.1 | % |
| $ | 3,175 |
|
| 6.4 | % |
Commercial real estate—owner-occupied |
|
| 5,368 |
|
| 5,394 |
|
| 5,120 |
|
| (26 | ) |
| (0.5 | )% |
|
| 248 |
|
| 4.8 | % |
Investor real estate |
|
| 10,211 |
|
| 9,969 |
|
| 9,070 |
|
| 242 |
|
| 2.4 | % |
|
| 1,141 |
|
| 12.6 | % |
Business Lending |
|
| 67,988 |
|
| 67,204 |
|
| 63,424 |
|
| 784 |
|
| 1.2 | % |
|
| 4,564 |
|
| 7.2 | % |
Residential first mortgage |
|
| 19,376 |
|
| 19,498 |
|
| 19,881 |
|
| (122 | ) |
| (0.6 | )% |
|
| (505 | ) |
| (2.5 | )% |
Home equity |
|
| 5,537 |
|
| 5,504 |
|
| 5,549 |
|
| 33 |
|
| 0.6 | % |
|
| (12 | ) |
| (0.2 | )% |
Consumer credit card |
|
| 1,512 |
|
| 1,498 |
|
| 1,437 |
|
| 14 |
|
| 0.9 | % |
|
| 75 |
|
| 5.2 | % |
Other consumer* |
|
| 5,414 |
|
| 5,496 |
|
| 5,834 |
|
| (82 | ) |
| (1.5 | )% |
|
| (420 | ) |
| (7.2 | )% |
Consumer Lending |
|
| 31,839 |
|
| 31,996 |
|
| 32,701 |
|
| (157 | ) |
| (0.5 | )% |
|
| (862 | ) |
| (2.6 | )% |
Total Loans |
| $ | 99,827 |
| $ | 99,200 |
| $ | 96,125 |
| $ | 627 |
|
| 0.6 | % |
| $ | 3,702 |
|
| 3.9 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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NM - Not meaningful. | |||||||||||||||||||||||
* Other consumer loans includes Regions' Home Improvement Financing portfolio. | |||||||||||||||||||||||
Average and ending loans increased modestly compared to the prior quarter. Average business loans increased 1 percent during the quarter while average consumer loans decreased slightly. Growth was driven by broad-based C&I lending categories including government and public sector, wholesale and financial services. Investor real estate delivered another solid quarter of growth, 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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|
|
|
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($ amounts in millions) |
| 3Q26 |
| 2Q26 |
| 3Q25 |
| 3Q26 vs. 2Q26 |
| 3Q26 vs. 3Q25 | |||||||||||||
Total interest-bearing deposits |
| $ | 89,364 |
| $ | 90,953 |
| $ | 90,037 |
| $ | (1,589 | ) |
| (1.7 | )% |
| $ | (673 | ) |
| (0.7 | )% |
Non-interest-bearing deposits |
|
| 39,776 |
|
| 39,738 |
|
| 39,538 |
|
| 38 |
|
| 0.1 | % |
|
| 238 |
|
| 0.6 | % |
Total Deposits |
| $ | 129,140 |
| $ | 130,691 |
| $ | 129,575 |
| $ | (1,551 | ) |
| (1.2 | )% |
| $ | (435 | ) |
| (0.3 | )% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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($ amounts in millions) |
| 3Q26 |
| 2Q26 |
| 3Q25 |
| 3Q26 vs. 2Q26 |
| 3Q26 vs. 3Q25 | |||||||||||||
Consumer Bank Segment |
| $ | 80,116 |
| $ | 80,624 |
| $ | 79,698 |
| $ | (508 | ) |
| (0.6 | )% |
| $ | 418 |
|
| 0.5 | % |
Corporate Bank Segment |
|
| 39,505 |
|
| 40,106 |
|
| 39,733 |
|
| (601 | ) |
| (1.5 | )% |
|
| (228 | ) |
| (0.6 | )% |
Wealth Management Segment |
|
| 7,484 |
|
| 7,594 |
|
| 7,262 |
|
| (110 | ) |
| (1.4 | )% |
|
| 222 |
|
| 3.1 | % |
Other* |
|
| 2,035 |
|
| 2,367 |
|
| 2,882 |
|
| (332 | ) |
| (14.0 | )% |
|
| (847 | ) |
| (29.4 | )% |
Total Deposits |
| $ | 129,140 |
| $ | 130,691 |
| $ | 129,575 |
| $ | (1,551 | ) |
| (1.2 | )% |
| $ | (435 | ) |
| (0.3 | )% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
|
| End of Period Deposits | |||||||||||||||||||||
|
|
|
|
|
|
|
| 9/30/2026 |
| 9/30/2026 | |||||||||||||
($ amounts in millions) |
| 9/30/2026 |
| 6/30/2026 |
| 9/30/2025 |
| vs. 6/30/2026 |
| vs. 9/30/2025 | |||||||||||||
Consumer Bank Segment |
| $ | 80,975 |
| $ | 80,972 |
| $ | 79,689 |
| $ | 3 |
|
| — | % |
| $ | 1,286 |
|
| 1.6 | % |
Corporate Bank Segment |
|
| 39,270 |
|
| 39,952 |
|
| 40,415 |
|
| (682 | ) |
| (1.7 | )% |
|
| (1,145 | ) |
| (2.8 | )% |
Wealth Management Segment |
|
| 7,437 |
|
| 7,466 |
|
| 7,654 |
|
| (29 | ) |
| (0.4 | )% |
|
| (217 | ) |
| (2.8 | )% |
Other* |
|
| 1,828 |
|
| 2,320 |
|
| 2,576 |
|
| (492 | ) |
| (21.2 | )% |
|
| (748 | ) |
| (29.0 | )% |
Total Deposits |
| $ | 129,510 |
| $ | 130,710 |
| $ | 130,334 |
| $ | (1,200 | ) |
| (0.9 | )% |
| $ | (824 | ) |
| (0.6 | )% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
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 has continued to be a source of strength and an industry differentiator in liquidity and margin performance. Average and ending deposits declined modestly during the quarter.
The decline in corporate deposits was driven primarily by a limited number of large commercial clients that strategically reallocated interest-bearing balances to off-balance sheet products through the bank's institutional investment services group. Importantly, underlying deposit trends remained healthy during the quarter, supported by continued growth in new accounts and increases in both average and ending non-interest bearing balances. In addition, the company continued to manage substantial excess client balances for commercial clients totaling approximately $16 billion through highly-liquid off-balance sheet investment solutions.
Asset quality | ||||||||||||
|
| As of and for the Quarter Ended | ||||||||||
($ amounts in millions) |
| 9/30/2026 |
| 6/30/2026 |
| 9/30/2025 | ||||||
Allowance for credit losses (ACL) at period end |
| $ | 1,609 |
|
| $ | 1,613 |
|
| $ | 1,713 |
|
ACL/Loans, net |
|
| 1.61 | % |
|
| 1.63 | % |
|
| 1.78 | % |
Business criticized loans to total business loans |
|
| 4.71 | % |
|
| 5.01 | % |
|
| 5.81 | % |
Allowance for credit losses to non-performing loans, excluding loans held for sale |
|
| 275 | % |
|
| 241 | % |
|
| 226 | % |
Provision for credit losses |
| $ | 68 |
|
| $ | 68 |
|
| $ | 105 |
|
Net loans charged-off |
| $ | 72 |
|
| $ | 102 |
|
| $ | 135 |
|
Net loans charged-off as a % of average loans, annualized |
|
| 0.29 | % |
|
| 0.42 | % |
|
| 0.55 | % |
Non-performing loans, excluding loans held for sale/Loans, net |
|
| 0.59 | % |
|
| 0.67 | % |
|
| 0.79 | % |
NPAs (ex. 90+ past due)/Loans, foreclosed properties, and non-performing loans held for sale |
|
| 0.62 | % |
|
| 0.69 | % |
|
| 0.82 | % |
NPAs (inc. 90+ past due)/Loans, foreclosed properties, and non-performing loans held for sale* |
|
| 0.78 | % |
|
| 0.85 | % |
|
| 0.98 | % |
Total Criticized Loans—Business Services** |
| $ | 3,203 |
|
| $ | 3,370 |
|
| $ | 3,682 |
|
* 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 improved during the quarter, reflecting the strength and resiliency of the company's customer base and continued disciplined risk management practices. 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 $72 million or an annualized 29 basis points of average loans, representing a 13 basis point decrease compared to the second 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 8 basis points to 0.59 percent, and the ratio of business services criticized loans as a percentage of total business loans declined 30 basis points to 4.71 percent.
Changes in portfolio composition, including growth in higher-quality loans and runoff in certain higher-risk portfolios, drove a modest reduction in the allowance during the quarter. That impact was partially offset by the recent increases in interest rates and ongoing macroeconomic uncertainty. As a result, the allowance for credit losses remained relatively stable, the allowance ratio decreased 2 basis points to 1.61 percent, and coverage of non-performing loans increased to 275 percent.
Capital and liquidity | ||||||||||||
|
| As of and for Quarter Ended | ||||||||||
|
| 9/30/2026 |
| 6/30/2026 |
| 9/30/2025 | ||||||
Common Equity Tier 1 ratio(2) |
|
| 10.8 | % |
|
| 10.7 | % |
|
| 10.9 | % |
Tier 1 capital ratio(2) |
|
| 11.9 | % |
|
| 11.8 | % |
|
| 12.0 | % |
Total shareholders' equity to total assets |
|
| 10.93 | % |
|
| 11.68 | % |
|
| 11.91 | % |
Tangible common shareholders’ equity to tangible assets (non-GAAP)(1) |
|
| 6.83 | % |
|
| 7.55 | % |
|
| 7.74 | % |
Common book value per share |
| $ | 19.38 |
|
| $ | 20.48 |
|
| $ | 19.98 |
|
Tangible common book value per share (non-GAAP)(1) |
| $ | 12.65 |
|
| $ | 13.78 |
|
| $ | 13.49 |
|
Loans, net of unearned income, to total deposits |
|
| 77.1 | % |
|
| 75.9 | % |
|
| 73.8 | % |
Regions maintained a strong capital position in the third 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 10.8 percent and 11.9 percent respectively.
During the third quarter, the company repurchased approximately 3 million shares of common stock for a total of $95 million through open-market purchases and declared $255 million in dividends to common shareholders.
The company's liquidity position also remained robust with total available liquidity as of Sept. 30, 2026, of approximately $64 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 170 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 Oct. 16, 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 third quarter 2026 results on Oct. 16, 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 $163 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:
- Our businesses have been, and may continue to be, adversely affected by conditions in the financial markets and economic conditions generally.
- Fluctuations in market interest rates, including the level and shape of the yield curve, may adversely affect our performance.
- If we experience greater credit losses in our loan portfolios than anticipated, our earnings may be materially adversely affected.
- Any future reductions in our credit ratings may increase our funding costs and place limitations on business activities.
- Changes in the soundness of other financial institutions could adversely affect us.
- We may suffer losses if the value of collateral declines in stressed market conditions.
- Ineffective liquidity management could adversely affect our financial results and condition.
Contacts
Investor Relations:
Chris Best
(205) 264-7040
Media:
Jeremy King
(205) 264-4551
Read full story here
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