REGIONS FINANCIAL CORP
For the period ended Sep 30, 2025. Filed Nov 4, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 4, 2025
RF$28.31-0.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-08-05.
0001281761-25-000063
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-04.
0001281761-25-000080
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 272 previous paragraphs and 290 current paragraphs.
192 unchanged; 70 reworded; 25 added; 10 removed; 0 previous and 3 current paragraphs rearranged.
Tables are not compared: 28 previous and 29 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (25)
Current report
THIRD QUARTER OVERVIEW
Current report
Third Quarter Results
Current report
The September baseline forecast anticipates real GDP growth of 1.8 percent for 2025 and 2026, with real private domestic demand expected to rise by 2.2 percent in 2025. The quarterly growth pattern over the coming quarters is expected to be somewhat less volatile compared to the first half of 2025. Recent upward revisions to GDP growth and real private domestic demand reflect stronger business investment and consumer spending.
Current report
Corporate profits show moderate gains and, despite a slight narrowing of profit margins, they remain well above historical averages, indicating that most firms have been able to absorb higher tariff costs without immediately passing them on to consumers. While profit margins are currently elevated, as margins compress companies may face tougher decisions regarding pricing and cost management. However, recent tax code changes could provide some buffer against higher tariff costs.
Current report
Job growth has clearly slowed, but the extent and drivers remain somewhat uncertain as challenges persist with data collection and measurement from monthly employment reports. However, labor supply, particularly among the foreign-born workforce, appears to be a significant factor. While a slower pace of economic growth, combined with heightened attention to operational efficiency and cost control, have contributed to the demand for labor, the reduction in labor supply may be having an equally significant, if not greater, effect on overall job growth.
Current report
Inflation data at the retail level has revealed uneven tariff pass-through into final goods prices, with August CPI data showing the largest year-over-year increase in core goods prices since May 2023 and the largest increase in prices for motor vehicles since December 2024. As expected, the FOMC cut the Fed funds rate by 25 basis points during the third quarter of 2025, and by another 25 basis points subsequent to quarter-end on October 29, 2025. Additional incoming labor market and inflation data will determine the extent of further cuts in 2025.
Current report
Subsequent to the end of the third quarter of 2025, Congress had not reached an agreement on government funding, resulting in a shutdown of Federal Government operations. While the shutdown did not impact Regions’ September 2025 baseline forecast, the remaining uncertainty of its duration and resolution creates challenges for any future forecast.
Current report
Based upon the factors discussed above, the September 30, 2025 allowance decreased $30 million compared to the second quarter of 2025 due primarily to improvement in commercial and investor real estate criticized loans, a decline in non-performing loans, and continued resolutions of loans within previously identified portfolios of interest, partially offset by a decline in the economic forecast.
Current report
RATINGS
Current report
Table 16 "Credit Ratings" reflects the debt ratings information of Regions Financial Corporation and Regions Bank by S&P, Moody’s, Fitch and DBRS.
Current report
Table 16—Credit Ratings
Current report
(1) As of March 31, 2024, DBRS withdrew their rating on Regions Financial Corporation's subordinated debt.
Current report
On September 8, 2025, DBRS affirmed the Company's senior unsecured debt rating and revised its outlook to positive from stable citing Regions strong deposit franchise and market share in the Southeastern region.
Current report
In general, ratings agencies base their ratings on many quantitative and qualitative factors, including capital adequacy, liquidity, asset quality, business mix, probability of government support, and level and quality of earnings. Any downgrade in credit ratings by one or more ratings agencies may impact Regions in several ways, including, but not limited to, Regions’ access to the capital markets or short-term funding, borrowing cost and capacity, collateral requirements, and acceptability of its letters of credit, thereby potentially adversely impacting Regions’ financial condition and liquidity. See “Risk Factors” for more information.
Current report
A security rating is not a recommendation to buy, sell or hold securities, and the ratings are subject to revision or withdrawal at any time by the assigning rating agency. Each rating should be evaluated independently of any other rating. Additional information on the credit rating ranking within the overall classification system is located on the website of each credit rating agency.
Current report
Bank-owned Life Insurance
Current report
Bank-owned life insurance income primarily represents income earned from the appreciation of the cash surrender value of insurance contracts held and the proceeds of insurance benefits. Bank-owned life insurance income decreased during the nine months ended September 30, 2025 compared to the same period in 2024 driven primarily by decreased insurance claim income.
Current report
Other Miscellaneous Income
Current report
Other miscellaneous income includes net revenue from affordable housing, valuation adjustments to equity investments, fees from safe deposit boxes, check fees and other miscellaneous income. Net revenue from affordable housing includes actual gains and losses resulting from the sale of affordable housing investments, cash distributions from the investments and any related impairment charges. Other miscellaneous income increased in the third quarter and nine months ended September 30, 2025 compared to the same periods in 2024 primarily due to increases in commercial leasing income. Other miscellaneous income for the nine months ended September 30, 2025 also benefitted from improvements in valuation adjustments on certain equity investments.
Current report
Professional, legal and regulatory expenses
Current report
Professional, legal, and regulatory expenses consist of amounts related to legal, consulting, other professional fees and regulatory charges. Professional, legal, and regulatory expenses increased in the third quarter and nine months ended September 30, 2025 compared to the same periods in 2024 primarily due to an increase in professional fees associated with core systems modernization.
Current report
Visa Class B shares Expense
Current report
Visa class B shares expense is associated with previously sold shares. The Visa class B shares have restrictions tied to finalization of certain covered litigation. Visa class B shares expense decreased in the third quarter and nine months ended September 30, 2025 compared to the same periods in 2024 due to a lower escrow funding expense for the Company's proportionate share related to the ongoing covered litigation which totaled $5 million in the third quarter of 2025 compared to $14 million in the third quarter of 2024.
Current report
Branch consolidation, property and equipment charges
Current report
Branch consolidation, property and equipment charges include valuation adjustments related to owned branches when the decision to close them is made. Accelerated depreciation and lease write-off charges are recorded for leased branches through and at the actual branch close date. Branch consolidation, property and equipment charges also include costs related to occupancy optimization initiatives. Branch consolidation, property and equipment charges in the third quarter and nine months ended September 30, 2025 include a gain recognized on the disposition of a property in the third quarter of 2025.
Removed paragraphs (10)
Previous report
SECOND QUARTER OVERVIEW
Previous report
Second Quarter Results
Previous report
The June 2025 baseline forecast anticipates real GDP growth of 1.5 percent in 2025 and 2026. While the quarterly growth profile is expected to remain somewhat uneven over the next few quarters, it is anticipated that the economy will be back at its longer-term trend growth rate by year-end 2026.
Previous report
As job and wage growth are slowing, spending growth is becoming realigned with income growth. In the early months of 2025, businesses and households reacted strongly to anticipated increases in tariffs, which sets up payback over the coming months and quarters. The baseline forecast anticipates the unemployment rate averaging 4.3 percent for 2025 and 2026, and reflects further deceleration in the trend of job rate growth due to a falling rate of hiring as opposed to a rising rate of layoffs.
Previous report
Through the first half of the year there has been mixed evidence of tariff pass-throughs on goods prices. While it is anticipated that pass-through effects will become more impactful and more broadly based over coming months, it is also anticipated that moderating services price inflation will act as a counter. This would limit the net effects on overall inflation.
Previous report
While the FOMC is taking a cautious approach and is still more focused on the upside risks to inflation, we cannot rule out a resumption of Federal Funds rate hikes by year-end 2025.
Previous report
In the second quarter of 2025, the loan portfolio balance grew, which, combined with the results from credit/specific reserve changes and other portfolio changes, resulted in a net increase to the allowance.
Previous report
Based upon the factors discussed above, the June 30, 2025 allowance remained stable compared to the first quarter of 2025 due to portfolio changes and slight deterioration in the economic forecast, offset by declines in qualitative adjustments.
Previous report
Subsequent to June 30, 2025, $2.0 billion in forward-starting receive-fixed interest rate swaps (floating rate loan hedges) beginning in January 2028 and maturing in January 2033 were added at an average receive rate of 3.7 percent.
Previous report
NM - Not Meaningful
Reworded paragraphs (70)
Previous wording
The following discussion and analysis is part of Regions Financial Corporation’s (“Regions” or the “Company”) Quarterly Report on Form 10-Q filed with the SEC and should be read in conjunction with the consolidated financial statements and the related notes that appear in Part I, Item 1 of this report. In addition, this discussion and analysis updates Regions’ Annual Report on Form 10-K for the year ended December 31, 2024, which was previously filed with the SEC. This financial information is presented to aid in understanding Regions’ financial position and results of operations and should be read together with the financial information contained in Regions’ Annual Report on Form 10-K. See Note 1 "Basis of Presentation" and Note 13 "Recent Accounting Pronouncements" to those consolidated financial statements for further detail. The emphasis of this discussion will be on the three and six months ended June 30, 2025 compared to the three and six months ended June 30, 2024 for the consolidated statements of income. For the consolidated balance sheets, the emphasis of this discussion will be on the balances as of June 30, 2025 compared to December 31, 2024.
Current wording
The following discussion and analysis is part of Regions Financial Corporation’s (“Regions” or the “Company”) Quarterly Report on Form 10-Q filed with the SEC and should be read in conjunction with the consolidated financial statements and the related notes that appear in Part I, Item 1 of this report. In addition, this discussion and analysis updates Regions’ Annual Report on Form 10-K for the year ended December 31, 2024, which was previously filed with the SEC. This financial information is presented to aid in understanding Regions’ financial position and results of operations and should be read together with the financial information contained in Regions’ Annual Report on Form 10-K. See Note 1 "Basis of Presentation" and Note 13 "Recent Accounting Pronouncements" to those consolidated financial statements for further detail. The emphasis of this discussion will be on the three and nine months ended September 30, 2025 compared to the three and nine months ended September 30, 2024 for the consolidated statements of income. For the consolidated balance sheets, the emphasis of this discussion will be on the balances as of September 30, 2025 compared to December 31, 2024.
Previous wording
Regions conducts its banking operations through Regions Bank, an Alabama state-chartered commercial bank that is a member of the Federal Reserve System. At June 30, 2025, Regions operated 1,250 total branch outlets. Regions carries out its strategies and derives its profitability from three reportable business segments: Corporate Bank, Consumer Bank, and Wealth Management, with the remainder in Other. See Note 11 "Business Segment Information" to the consolidated financial statements for more information regarding Regions’ segment reporting structure.
Current wording
Regions conducts its banking operations through Regions Bank, an Alabama state-chartered commercial bank that is a member of the Federal Reserve System. At September 30, 2025, Regions operated 1,248 total branch outlets. Regions carries out its strategies and derives its profitability from three reportable business segments: Corporate Bank, Consumer Bank, and Wealth Management, with the remainder in Other. See Note 11 "Business Segment Information" to the consolidated financial statements for more information regarding Regions’ segment reporting structure.
Previous wording
Regions reported net income available to common shareholders of $534 million or $0.59 per diluted share in the second quarter of 2025 compared to net income available to common shareholders of $477 million or $0.52 per diluted share in the second quarter of 2024.
Current wording
Regions reported net income available to common shareholders of $548 million or $0.61 per diluted share in the third quarter of 2025 compared to net income available to common shareholders of $446 million or $0.49 per diluted share in the third quarter of 2024.
Previous wording
Net interest income (taxable-equivalent basis) totaled $1.3 billion in the second quarter of 2025, which increased $73 million compared to the second quarter of 2024. The net interest margin (taxable-equivalent basis) was 3.65 percent in the second quarter of 2025, reflecting a 14 basis point increase from the same period in 2024. The increase in net interest income and margin was driven by the replacement of fixed-rate loans and debt securities in a higher interest rate environment and lower funding costs as short-term interest rates declined. Refer to the related discussion below Table 16 "Consolidated Average Daily Balances and Yield/Rate Analysis" for further detail.
Current wording
Net interest income (taxable-equivalent basis) totaled $1.3 billion in the third quarter of 2025, which increased $39 million compared to the third quarter of 2024. The net interest margin (taxable-equivalent basis) was 3.59 percent in the third quarter of 2025, reflecting a 5 basis point increase from the same period in 2024. The increases in net interest income and margin were driven by the replacement of fixed-rate loans and debt securities in a higher interest rate environment, lower funding costs and hedge performance improvements as short-term interest rates declined. Refer to the related discussion below Table 17 "Consolidated Average Daily Balances and Yield/Rate Analysis" for further detail.
Previous wording
The provision for credit losses totaled $126 million in the second quarter of 2025 compared to $102 million in the second quarter of 2024. Net charge-offs totaled $113 million, or 0.47 percent of average loans, in the second quarter of 2025, compared to $101 million , or 0.42 percent in the second quarter of 2024. This slight increase reflected charge-offs in previously identified portfolios of interest. The allowance as a percent of total loans, net, increased slightly to 1.80 percent at June 30, 2025, compared to 1.79 percent at December 31, 2024. Refer to the "Allowance for Credit Losses" section for further detail.
Current wording
The provision for credit losses totaled $105 million in the third quarter of 2025 compared to $113 million in the third quarter of 2024. Net charge-offs totaled $135 million, or 0.55 percent of average loans, in the third quarter of 2025, compared to $117 million, or 0.48 percent in the third quarter of 2024. This increase reflected charge-offs that were already reserved for related to previously identified portfolios of interest. The allowance as a percent of total loans, net, decreased slightly to 1.78 percent at September 30, 2025, compared to 1.79 percent at December 31, 2024. Refer to the "Allowance for Credit Losses" section for further detail.
Previous wording
Non-interest income was $646 million in the second quarter of 2025 compared to $545 million in the second quarter of 2024. Most categories of non-interest income increased, primarily driven by an increase in capital markets income, mortgage income, and favorable market valuation adjustments on employee benefit assets. Additionally, in the second quarter of 2024, the Company incurred securities losses due to a repositioning. See Table 21 "Non-Interest Income" for further details.
Current wording
Non-interest income was $659 million in the third quarter of 2025 compared to $572 million in the third quarter of 2024 primarily driven by a decline in securities losses associated with less repositioning activity in the third quarter of 2025 compared to 2024. Additionally, most categories of non-interest income increased, including capital markets income, other miscellaneous income, investment management and trust fee income, and investment services income. See Table 22 "Non-Interest Income" for further details.
Previous wording
Non-interest expense was $1.1 billion in the second quarter of 2025 which increased $69 million compared to the second quarter of 2024. The increase was primarily driven by a increase in salaries and benefits and other miscellaneous expenses. See Table 22 "Non-Interest Expense" for further details.
Current wording
Non-interest expense was $1.1 billion in the third quarter of 2025 which increased $34 million compared to the third quarter of 2024. The increase was primarily driven by an increase in salaries and benefits, professional, legal and regulatory expenses, and other miscellaneous expenses. These were partially offset by a decline in Visa class B shares expense. See Table 23 "Non-Interest Expense" for further details.
Previous wording
Regions' effective tax rate was 20.3 percent in the second quarter of 2025 compared to 19.8 percent in the second quarter of 2024. See the "Income Taxes" section for further details.
Current wording
Regions' effective tax rate was 19.7 percent in the third quarter of 2025 compared to 19.4 percent in the third quarter of 2024. See the "Income Taxes" section for further details.
Previous wording
Regions and Regions Bank are required to comply with regulatory capital requirements established by Federal and State banking agencies, which include quantitative requirements including the CET1 ratio. At June 30, 2025, Regions’ CET1 ratio was estimated to be 10.8 percent. For additional information on Regions' regulatory capital requirements see the "Regulatory Requirements" section.
Current wording
Regions and Regions Bank are required to comply with regulatory capital requirements established by Federal and State banking agencies, which include quantitative requirements including the CET1 ratio. At September 30, 2025, Regions’ CET1 ratio was estimated to be 10.9 percent. For additional information on Regions' regulatory capital requirements see the "Regulatory Requirements" section.
Previous wording
Cash and cash equivalents increased approximately $463 million from year-end 2024 to June 30, 2025 primarily due to an increase in deposits, partially offset by securities purchases, a decline in borrowings and the redemption of Series D preferred stock. See the "Deposits", "Debt Securities", "Liquidity", and "Borrowings" sections for more information.
Current wording
Cash and cash equivalents increased approximately $1.4 billion from December 31, 2024 to September 30, 2025 primarily due to an increase in deposits and, to a lesser degree, a decrease in loans. These changes were partially offset by securities purchases, a decline in borrowings and the redemption of Series D preferred stock. See the "Debt Securities", "Loans" "Deposits", "Borrowings", and "Liquidity" sections for more information.
Previous wording
Debt securities held to maturity constituted approximately 18 percent of the debt securities portfolio at June 30, 2025. The Company reclassified debt securities with an amortized cost, excluding items recognized in OCI, of $2.0 billion in the first half of 2025, from available for sale into held to maturity to reduce the volatility in AOCI in preparation for expected, upcoming changes to regulatory guidance as discussed in the "Regulatory Requirements" section.
Current wording
Debt securities held to maturity constituted approximately 18 percent of the debt securities portfolio at September 30, 2025. In the first half of 2025, the Company reclassified debt securities with an amortized cost, excluding items recognized in OCI, of $2.0 billion from available for sale into held to maturity to reduce the volatility in AOCI in preparation for expected, upcoming changes to regulatory guidance as discussed in the "Regulatory Requirements" section.
Previous wording
Debt securities increased $1.7 billion from December 31, 2024 to June 30, 2025 due to the purchase of approximately $1.0 billion of residential agency MBS debt securities in the second quarter of 2025, lower market interest rates and tighter spreads resulting in lower unrealized holding losses, and AOCI amortization. Of note, the Company executed a debt securities repositioning in the first quarter of 2025 involving the sale of shorter-duration commercial and residential agency MBS and replacement with residential agency MBS with favorable prepayment profiles. The intent was to maintain the debt securities portfolio duration that would otherwise shorten naturally while efficiently deploying capital. Proceeds from the sales were reinvested at higher market yields. The Company sold approximately $478 million of debt securities available for sale and realized approximately $25 million in pre-tax losses.
Current wording
Debt securities increased $2.0 billion from December 31, 2024 to September 30, 2025 due to the purchase of approximately $1.0 billion of residential agency MBS debt securities in the second quarter of 2025, lower market interest rates and tighter spreads resulting in lower unrealized holding losses, and AOCI amortization. Of note, the Company executed debt securities repositionings in the first and third quarters of 2025 involving the sale of shorter-duration commercial and residential agency MBS and replacement with residential agency MBS with favorable prepayment profiles. In total, the Company sold approximately $1.0 billion of debt securities available for sale and realized approximately $50 million in pre-tax losses. The intent was to maintain the debt securities portfolio duration that would otherwise shorten naturally while efficiently deploying capital. Proceeds from the sales were reinvested at higher market yields.
Previous wording
The average life of the debt securities portfolio at June 30, 2025 was estimated to be 6.0 years, with a duration of approximately 4.1 years, inclusive of fair value hedges (see Table 18). These metrics compare with an estimated average life of 6.1 years and a duration of approximately 4.5 years for the portfolio at December 31, 2024.
Current wording
The average life of the debt securities portfolio at September 30, 2025 was estimated to be 5.9 years, with a duration of approximately 4.0 years, inclusive of fair value hedges (see Table 19). These metrics compare with an estimated average life of 6.1 years and a duration of approximately 4.5 years for the portfolio at December 31, 2024.
Previous wording
Loans, net of unearned income, remained flat from year-end 2024 due to a decline in commercial loans as a result of low utilization rates and declines across most consumer loans, partially offset by an increase in investor real estate loans. Regions manages loan growth with a focus on risk management and risk-adjusted return on capital.
Current wording
Loans, net of unearned income, decreased $602 million from year-end 2024 due to a decline in commercial loans and declines across most consumer loans as discussed below. These declines were partially offset by an increase in investor real estate loans. Regions manages loan growth with a focus on risk management and risk-adjusted return on capital.
Previous wording
Commercial and industrial loans decreased $85 million since year-end 2024 due primarily to credit utilization rates remaining below historic levels. In the first six months of 2025, the decline in commercial and industrial loans was broad-based as shown in Table 4.
Current wording
Commercial and industrial loans decreased $437 million since year-end 2024 due to loans refinanced off the Company's balance sheet through the debt capital markets and loan utilization rates remaining below historic levels. In the nine months ended September 30, 2025, the decline in commercial and industrial loans was broad-based as shown in Table 4.
Previous wording
Loans for real estate development are repaid through cash flows related to the operation, sale or refinance of the property. This portfolio segment includes extensions of credit to real estate developers or investors where repayment is dependent on the sale of real estate or income generated from the real estate collateral. A portion of Regions’ IRE portfolio segment consists of loans secured by residential product types (land, single-family and condominium loans) within Regions’ markets. Additionally, this category includes loans made to finance income-producing properties such as apartment buildings, office and industrial buildings, and retail shopping centers. Total IRE loans increased $388 million in comparison to year-end 2024 balances due to increases in fundings to previously approved projects and new term loans for apartments and data centers.
Current wording
Loans for real estate development are repaid through cash flows related to the operation, sale or refinance of the property. This portfolio segment includes extensions of credit to real estate developers or investors where repayment is dependent on the sale of real estate or income generated from the real estate collateral. A portion of Regions’ IRE portfolio segment consists of loans secured by residential product types (land, single-family and condominium loans) within Regions’ markets. Additionally, this category includes loans made to finance income-producing properties such as apartment buildings, office and industrial buildings, and retail shopping centers. Total IRE loans increased $360 million in comparison to year-end 2024 balances due to increases in fundings to previously approved projects and new term loans for apartments, data centers and industrial properties.
Previous wording
The business offices portfolio remains a portfolio of interest due to rising vacancies and reductions in net effective rents. The office portfolio totaled $1.3 billion and represented 1.4 percent of total loans at June 30, 2025. The office portfolio included non-performing loans of $213 million and had associated charge-offs of $20 million in the six months ended June 30, 2025. Approximately 90 percent of the office portfolio was secured, with approximately 59 percent of secured balances located in the South region of the U.S, of which 86 percent were Class A properties. Over 50 percent of the office portfolio will mature in the next 12 months. Additionally, the IRE office portfolio had a weighted-average LTV of approximately 70 percent at June 30, 2025, based upon appraisal at origination or most recent received, and a stressed weighted-average LTV of approximately 86 percent as of July 7, 2025, based upon GreenStreet's Commercial Property Price Index. No new loan originations are being contemplated in this portfolio.
Current wording
The business offices portfolio remains a portfolio of interest due to low occupancy rates and reductions in net effective rents. The office portfolio totaled $1.1 billion and represented 1.2 percent of total loans at September 30, 2025. The office portfolio included non-performing loans of $113 million and had associated charge-offs of $51 million in the nine months ended September 30, 2025. Approximately 91 percent of the office portfolio was secured, with approximately 62 percent of secured balances located in the South region of the U.S, of which 80 percent were Class A properties. Approximately 55 percent of the office portfolio will mature in the next 12 months. Additionally, the IRE office portfolio had a weighted-average LTV of approximately 67 percent at September 30, 2025, based upon appraisal at origination or most recent received, and a stressed weighted-average LTV of approximately 88 percent as of October 6, 2025, based upon GreenStreet's Commercial Property Price Index. No new loan originations are being contemplated in this portfolio.
Previous wording
The trucking portfolio, included within transportation and warehousing, remains a portfolio of interest as trucking companies have been working through one of the most prolonged downturns in the U.S. domestic freight market. The industry has experienced marginal improvement in 2025; however, recent tariff policies have lead to inconsistent volumes which combined with rising operating costs make profitability more challenging. The trucking portfolio totaled $1.4 billion and represented 1.5 percent of total loans at June 30, 2025. The trucking portfolio included non-performing loans of $114 million and had associated charge-offs of $42 million in the six months ended June 30, 2025.
Current wording
The trucking portfolio remains a portfolio of interest as trucking companies have been working through one of the most prolonged downturns in the U.S. domestic freight market. The industry has experienced marginal improvement in 2025; however, freight demand remains soft and tariff policies may reduce demand further. The trucking portfolio totaled $1.3 billion and represented 1.3 percent of total loans at September 30, 2025. The trucking portfolio included non-performing loans of $117 million and had associated charge-offs of $52 million in the nine months ended September 30, 2025. New originations in the sector have been curtailed and those that occur are secured.
Previous wording
Residential first mortgage loans represent loans to consumers to finance a residence. These loans are typically financed over a 15 to 30 year term and, in most cases, are extended to borrowers to finance their primary residence. Total residential first mortgage loans decreased $74 million in comparison to year-end 2024 balances.
Current wording
Residential first mortgage loans represent loans to consumers to finance a residence. These loans are typically financed over a 15 to 30 year term and, in most cases, are extended to borrowers to finance their primary residence. Total residential first mortgage loans decreased $213 million in comparison to year-end 2024 balances as payoffs and paydowns outpaced production.
Previous wording
Other consumer loans primarily include indirect and direct consumer loans, overdrafts and other revolving loans. Other consumer loans decreased $190 million from year-end 2024 driven by a decline in consumer home improvement lending production.
Current wording
Other consumer loans primarily include indirect and direct consumer loans, overdrafts and other revolving loans. Other consumer loans decreased $259 million from year-end 2024 driven by a decline in consumer home improvement lending production.
Previous wording
Details regarding the allowance and net charge-offs, including an analysis of activity from previous year's totals, are included below:
Current wording
Details regarding the allowance and net charge-offs, including an analysis of activity in the three and nine months ended September 30, 2025 and 2024, are included below:
Previous wording
Net charge-offs increased $14 million year-over-year. As noted, economic trends such as interest rates, unemployment, volatility in commodity prices, collateral valuations and inflationary pressure will impact the future levels of net charge-offs and may result in volatility of certain credit metrics in 2025 and beyond.
Current wording
Net charge-offs increased $18 million and $32 million for the three and nine months ended September 30, 2025, compared to the same periods in 2024, respectively. Economic trends such as interest rates, unemployment, volatility in commodity prices, collateral valuations and inflationary pressure will impact the future levels of net charge-offs and may result in volatility of certain credit metrics for the remainder of 2025 and beyond.
Previous wording
In deriving any forecast, Regions benchmarks its internal forecast with external forecasts and external data available. Regions' June 2025 baseline forecast reflected deterioration across most key variables as compared to the March baseline forecast, which resulted in an increase in the allowance. Management noted that there is still uncertainty around the scope and timing of changes to trade policy and the effects of immigration policy to the labor market may pose some downside risks to growth. However, recently enacted fiscal policy changes are expected to be supportive of business investment spending, and an anticipated more favorable regulatory climate should also be supportive of growth.
Current wording
In deriving any forecast, Regions benchmarks its internal forecast with external forecasts and external data available. Regions' September 2025 baseline forecast reflected deterioration across some key variables as compared to the June baseline forecast, which resulted in an increase in the allowance.
Previous wording
The risks to the baseline forecast are considered to be weighted to the downside. Current economic uncertainty, including the impact of developments on trade policy, likely will influence future levels of the allowance.
Current wording
The risks to the baseline forecast are weighted to the downside. Current prevailing economic uncertainty and the potential for further disruption could likely influence future levels of the allowance.
Previous wording
Credit metrics are monitored throughout each quarter and are a key consideration in the allowance process. In the second quarter of 2025, overall asset quality improved. Commercial and investor real estate criticized balances decreased approximately $310 million compared to the first quarter of 2025. Non-performing loans, excluding held for sale, decreased approximately $67 million compared to the first quarter of 2025. The decrease in non-performing loans was primarily due to charge-offs and payoffs in previously identified portfolios of interest which led to a decline in specific reserves. See Table 11 for more details regarding non-performing assets. While overall credit quality improved in the quarter, the portfolio experienced some risk rating migration, mostly within pass ratings. These increases were offset by other portfolio changes.
Current wording
Credit metrics are monitored throughout each quarter and are a key consideration in the allowance process. In the third quarter of 2025, overall asset quality improved. Commercial and investor real estate criticized balances decreased approximately $926 million from $4.6 billion in the second quarter to $3.7 billion in the third quarter of 2025. The decrease was due primarily to upgrades and significant payoffs during the quarter, which were fairly widespread across numerous industry portfolios. Non-performing loans, excluding held for sale, decreased approximately $18 million from $776 million in the second quarter to $758 million in the third quarter of 2025. See Table 11 for more details regarding non-performing assets. While the ratio of net charge-offs to average loans increased 8 basis points for the third quarter of 2025 compared to the second quarter of 2025, the majority of business services charge-offs related to previously identified portfolios of interest for which specific reserves had already been established. The combination of credit quality improvements and specific reserve changes drove a net decrease in the allowance during the third quarter.
Previous wording
While it is the intent of Regions' quantitative allowance methodologies to reflect all risk factors, including incremental risk in portfolios identified as under stress, any estimate involves assumptions and uncertainties resulting in some level of imprecision. Regions' qualitative framework has a general imprecision component which is meant to acknowledge that model and forecast errors are inherent in any modeling estimate. In the second quarter of 2025, the general imprecision component decreased due to less downside risk to the economic forecast.
Current wording
While it is the intent of Regions' quantitative allowance methodologies to reflect all risk factors, including incremental risk in portfolios identified as under stress, any estimate involves assumptions and uncertainties resulting in some level of imprecision. Regions' qualitative framework has a general imprecision component which is meant to acknowledge that model and forecast errors are inherent in any modeling estimate. In the third quarter of 2025, the general imprecision component increased due to uncertainty related to the government shutdown and continued elevated economic uncertainty partially offset by general model imprecision improvements.
Previous wording
The qualitative framework also has specific adjustment components which are reserves meant to capture specific issues or events that management believes are not adequately captured in the model outcomes. Qualitative adjustments for the second quarter of 2025 were reduced from the first quarter of 2025 levels due to reduced risk in certain portfolios of interest and more of the remaining risk being captured in the loss forecasting models and specific reserve estimates, as well as additional portfolio stability.
Current wording
The qualitative framework also has specific adjustment components which are reserves meant to capture specific issues or events that management believes are not adequately captured in the model outcomes. Qualitative adjustments for the third quarter of 2025 were reduced slightly from the second quarter of 2025 levels due to improvements in previously identified portfolios of interest.
Previous wording
The combined results from general imprecision and specific qualitative adjustments was a net decrease to the allowance.
Current wording
The combined results from general imprecision and specific qualitative adjustments slightly increased the allowance during the third quarter.
Previous wording
(2)Excludes residential first mortgage loans that are 100% guaranteed by the FHA and all guaranteed loans sold to Ginnie Mae where Regions has the right but not the obligation to repurchase. Total 90+ days or more past due guaranteed loans excluded were $44 million at June 30, 2025 and $55 million at December 31, 2024.
Current wording
(2)Excludes residential first mortgage loans that are 100% guaranteed by the FHA and all guaranteed loans sold to Ginnie Mae where Regions has the right but not the obligation to repurchase. Total 90+ days or more past due guaranteed loans excluded were $48 million at September 30, 2025 and $55 million at December 31, 2024.
Previous wording
Non-performing loans at June 30, 2025 decreased $136 million as compared to year-end 2024 levels primarily due to reductions in the industries or property types of information, healthcare, apartments and office, partially offset by an increase in energy. The same economic trends that impact net charge-offs, as discussed above, will impact the future level of non-performing loans. Circumstances related to individually large credits could also result in volatility.
Current wording
Non-performing loans (excluding loans held for sale) at September 30, 2025 decreased $170 million as compared to year-end 2024 levels primarily due to reductions in the business offices, healthcare and apartments portfolios, which were partially offset by an increase in the manufacturing portfolio. The same economic trends that impact net charge-offs, as discussed above, will impact the future level of non-performing loans. Circumstances related to individually large credits could also result in volatility.
Previous wording
Goodwill totaled $5.7 billion at both June 30, 2025 and December 31, 2024. Refer to Note 1 "Summary of Significant Accounting Policies" and Note 9 "Intangible Assets" to the consolidated financial statements included in the Annual Report on Form 10-K for the year ended December 31, 2024 for the methodologies and assumptions used in the goodwill impairment analysis.
Current wording
Goodwill totaled $5.7 billion at both September 30, 2025 and December 31, 2024. Refer to Note 1 "Summary of Significant Accounting Policies" and Note 9 "Goodwill and Other Intangible Assets" to the consolidated financial statements included in the Annual Report on Form 10-K for the year ended December 31, 2024 for the methodologies and assumptions used in the goodwill impairment analysis.
Previous wording
(1) Other deposits represent non-customer balances primarily consisting of wholesale funding (for example, selected deposits and brokered time deposits). Other deposits include brokered deposits totaling $2.8 billion at June 30, 2025 and $2.2 at December 31, 2024.
Current wording
(1) Other deposits represent non-customer balances primarily consisting of wholesale funding (for example, selected deposits and brokered time deposits). Other deposits include brokered deposits totaling $1.8 billion at September 30, 2025 and $2.2 billion at December 31, 2024.
Previous wording
Total deposits at June 30, 2025 increased approximately $3.3 billion across most segments and categories compared to year-end 2024 levels. The increase in deposits reflects customer growth and preference for liquidity as there remains some uncertainty in the economic environment. The mix of non-interest-bearing deposits remained stable at approximately 31 percent of total deposits at both June 30, 2025 and December 31, 2024. Regions' deposits are granular and diversified including insured and collateralized deposits, with consumer deposits making up more than 60 percent of the total deposit base at both June 30, 2025 and December 31, 2024.
Current wording
Total deposits at September 30, 2025 increased approximately $2.7 billion compared to year-end 2024 levels driven primarily by growth in money market and, to a lesser degree, non-interest-bearing deposits from growth in corporate and consumer deposits. The increase in deposits reflects customer growth and preference for liquidity as there remains some uncertainty in the economic environment. The mix of non-interest-bearing deposits remained stable at approximately 31 percent of total deposits at both September 30, 2025 and December 31, 2024. Regions' deposits are granular and diversified including insured and collateralized deposits, with consumer deposits making up more than 60 percent of the total deposit base at both September 30, 2025 and December 31, 2024.
Previous wording
Short-term borrowings, which primarily consist of FHLB advances, were zero at June 30, 2025 and $500 million at December 31, 2024. The levels of these borrowings can fluctuate depending on the Company's funding needs and the sources utilized.
Current wording
Short-term borrowings, which primarily consist of FHLB advances, were $1.3 billion at September 30, 2025 and $500 million at December 31, 2024. The levels of these borrowings can fluctuate depending on the Company's funding needs and the sources utilized.
Previous wording
Long-term borrowings decreased by approximately $714 million from year-end 2024 primarily due to the maturity of the Company's 2.25% senior notes in the second quarter of 2025.
Current wording
Long-term borrowings decreased by approximately $1.2 billion from year-end 2024 due to the maturity of the Company's 2.25% senior notes in the second quarter of 2025 and a $500 million decrease in FHLB advances in the third quarter of 2025.
Previous wording
Funding from the FHLB and Federal Reserve Bank is secured by pledged assets, primarily certain loan portfolios which are also subject to blanket lien arrangements with the FHLB and Federal Reserve Bank. As of June 30, 2025, Regions' blanket lien arrangements with these entities covered a total loan balance of approximately $93.8 billion and included loans from various loan portfolios. However, borrowing capacity with the FHLB and Federal Reserve Bank is contingent on a subset of the blanket lien portfolios which are eligible and pledged according to the parameters for each counterparty.
Current wording
Funding from the FHLB and Federal Reserve Bank is secured by pledged assets, primarily certain loan portfolios which are also subject to blanket lien arrangements with the FHLB and Federal Reserve Bank. As of September 30, 2025, Regions' blanket lien arrangements with these entities covered a total loan balance of approximately $93.4 billion and included loans from various loan portfolios. However, borrowing capacity with the FHLB and Federal Reserve Bank is contingent on a subset of the blanket lien portfolios which are eligible and pledged according to the parameters for each counterparty.
Previous wording
In the third quarter of 2023, proposals were issued by the U.S federal banking regulators that, if adopted, would impact the Company related to long-term debt requirements and U.S. implementation of capital requirements under Basel IV rules, more recently referred to as the Basel III "Endgame". The Company is studying the proposals and evaluating their impacts. Additional discussion of the Basel III Rules, their applicability to Regions, recent proposals and final rules issued by the federal banking agencies and recent laws enacted that impact regulatory requirements is included in the "Supervision and Regulation" subsection of the "Business" section in Regions’ Annual Report on Form 10-K for the year ended December 31, 2024.
Current wording
In the third quarter of 2023, proposals were issued by the U.S federal banking regulators that, if adopted, would impact the Company related to long-term debt requirements and U.S. implementation of capital requirements under Basel IV rules, more recently referred to as the Basel III "Endgame". The Company continues to monitor developments around the proposals and evaluate their potential impact. Additional discussion of the Basel III Rules, their applicability to Regions, recent proposals and final rules issued by the federal banking agencies and recent laws enacted that impact regulatory requirements is included in the "Supervision and Regulation" subsection of the "Business" section in Regions’ Annual Report on Form 10-K for the year ended December 31, 2024.
Previous wording
Shareholders’ equity was $18.7 billion at June 30, 2025 as compared to $17.9 billion at December 31, 2024. During the first six months of 2025, net income increased shareholders' equity by $1.1 billion, cash dividends on common stock reduced shareholders' equity by $450 million, and cash dividends on preferred stock reduced shareholders' equity by $50 million. Changes in OCI increased shareholders' equity by $952 million, primarily due to available for sale securities and derivative instruments as a result of changes in market interest rates during the six months ended June 30, 2025. During the second quarter of 2025, the Company redeemed all of the outstanding shares of its Series D preferred stock, which decreased shareholders' equity by $350 million. Common stock repurchased during the first six months of 2025 decreased shareholders' equity by $386 million. These shares were immediately retired upon repurchase and therefore were not included in treasury stock.
Current wording
Shareholders’ equity was $19.0 billion at September 30, 2025 as compared to $17.9 billion at December 31, 2024. During the nine months ended September 30, 2025, net income increased shareholders' equity by $1.6 billion, cash dividends on common stock reduced shareholders' equity by $685 million, and cash dividends on preferred stock reduced shareholders' equity by $71 million. Changes in OCI increased shareholders' equity by $1.3 billion, primarily due to available for sale securities and derivative instruments as a result of changes in market interest rates during the nine months ended September 30, 2025. During the second quarter of 2025, the Company redeemed all of the outstanding shares of its Series D preferred stock, which decreased shareholders' equity by $350 million. Common stock repurchased during the nine months ended September 30, 2025 decreased shareholders' equity by $637 million. These shares were immediately retired upon repurchase and therefore were not included in treasury stock.
Previous wording
Total equity included noncontrolling interest of $40 million and $31 million at June 30, 2025 and December 31, 2024, respectively. The noncontrolling interest represents the unowned portion of a low income housing tax credit fund syndication, of which Regions held the majority interest at June 30, 2025 and December 31, 2024.
Current wording
Total equity included noncontrolling interest of $46 million and $31 million at September 30, 2025 and December 31, 2024, respectively. The noncontrolling interest represents the unowned portion of a low income housing tax credit fund syndication, of which Regions held the majority interest at September 30, 2025 and December 31, 2024.
Previous wording
Subsequent to June 30, 2025, the Company purchased 1.4 million shares for approximately $37 million through August 4, 2025. These shares were immediately retired upon repurchase and therefore were not included in treasury stock.
Current wording
Subsequent to September 30, 2025, the Company purchased 8.0 million shares for approximately $195 million through November 3, 2025. These shares were immediately retired upon repurchase and therefore were not included in treasury stock.
Showing the first 40 of 70 pairs. Open the source sections for the rest.
Rearranged current paragraphs (3)
Current report — wording carried from elsewhere
In the third quarter of 2025, the Company added $2.5 billion in forward-starting receive fixed swaps with a receive rate of 3.7 percent, which will become active in January 2028 and mature in January 2033, to reduce net interest margin volatility associated with floating rate loans.
Current report — wording carried from elsewhere
Additionally, the Company added approximately $710 million in primarily forward-starting pay fixed interest rate swaps (hedges of debt securities available for sale) with an average pay rate of 3.7 percent, which have an average start date in 2028 and an average maturity in 2032, to reduce AOCI volatility associated with securities reinvestment.
Current report — wording carried from elsewhere
Board through its Risk Appetite Statement and Liquidity Policy. The Company's Board, LROC and ALCO regularly review compliance with the established limits.