REGIONS FINANCIAL CORP
For the period ended Sep 30, 2026. Filed Nov 9, 2026.
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, 2026 · Filed Nov 9, 2026
RF$28.93+2.2%Stored close · as of Nov 9, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-08-06.
0001281761-26-000055
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-09.
0001281761-26-000073
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 263 previous paragraphs and 270 current paragraphs.
180 unchanged; 74 reworded; 15 added; 7 removed; 2 previous and 1 current paragraphs rearranged.
Tables are not compared: 29 previous and 30 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 (15)
Current report
THIRD QUARTER OVERVIEW
Current report
Third Quarter Results
Current report
The updates to the baseline forecast resulted in a modest decrease in modeled allowance results related to economic changes for the three months ended September 30, 2026 which were more than outweighed by increases to qualitative adjustments for general imprecision reflecting interest rate considerations and broader economic uncertainty.
Current report
On August 27, 2026, DBRS upgraded the Company's issuer rating from A to AH and changed the outlook from Positive to Stable. DBRS also upgraded ratings for Regions Bank including the long-term bank deposits rating from AH to AAL, issuer rating from AH to AAL, and subordinated debt rating from A to AH and affirmed the short-term rating of R-1M. The upgrades reflect Regions highly granular, low-cost deposit base and leading market positions across the Southeast.
Current report
STATEMENT OF INCOME ANALYSIS
Current report
Net interest income on a taxable-equivalent basis increased in both the three and nine months ended September 30, 2026 compared to the same periods in 2025 driven by balance sheet growth and net interest margin expansion. Net interest margin was favorably impacted by lower funding costs, which declined more rapidly than earning asset yields in the lower short-term interest rate environment, and were attributable to disciplined deposit pricing management. Earning asset yields were supported by hedging activities and also benefited from fixed-rate asset turnover and a series of strategic securities repositioning transactions.
Current report
During the three months ended September 30, 2026, in continued preparation for the finalization of the Basel III Endgame capital requirements, the Company’s derivatives hedging activity focused on the reduction of AOCI exposure from debt securities available for sale, through the addition of $1.6 billion in pay fixed, fair value swaps with a pay rate of 4.7 percent, a weighted-average start date in 2030, and a weighted-average maturity date in 2035. As an offset, to limit the interest rate risk on the consolidated balance sheet, the Company also added $1.6 billion in receive fixed, cash flow swaps intended to hedge floating rate loans, with a receive rate of 4.6 percent, a weighted-average start date in 2030, and a weighted average maturity date in 2035.
Current report
Subsequent to quarter-end, the Company increased pay fixed, fair value swap notional by $2.8 billion with a similar intent, focused on the reduction of AOCI exposure from debt securities available for sale. Interest rate risk for the consolidated balance sheet was offset through a combination of receive fixed, cash flow swaps hedging floating-rate loans, as well as receive fixed fair value swaps hedging, previously unhedged, fixed-rate borrowings.
Current report
Commercial Credit Fee Income
Current report
Commercial credit fee income includes letters of credit fees and unused commercial commitment fees. In the three and nine months ended September 30, 2026 commercial credit fee income increased compared to the same periods in 2025 driven by higher standby letter of credit income and commercial unused fees.
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 three and nine months ended September 30, 2026 compared to the same periods in 2025 due to higher legal fees and legal settlement costs.
Current report
FDIC insurance assessments consist of insurance premiums and special assessment expenses paid to the FDIC to maintain insurance coverage on eligible customer deposits.
Current report
Other miscellaneous expenses
Current report
Other miscellaneous expenses include expenses related to communications, postage, supplies, certain credit-related costs, foreclosed property expenses, mortgage repurchase costs, operational losses and other costs (benefits) related to employee benefit plans. Other miscellaneous expenses decreased in the three and nine months ended September 30, 2026 compared to the same periods in 2025 primarily due to a decline in other costs related to employee benefit plans.
Removed paragraphs (7)
Previous report
SECOND QUARTER OVERVIEW
Previous report
Second Quarter Results
Previous report
On July 15, 2026, the Board declared a $0.035 increase, or 13 percent, to the quarterly common stock dividend to $0.30 which will be payable on October 1, 2026, to shareholders of record at close of business on September 1, 2026.
Previous report
Net interest income (taxable-equivalent basis) and net interest margin increased in both the three and six months ended June 30, 2026 compared to the same periods in 2025 due primarily to lower funding costs, which includes deposits and wholesale borrowings. Funding costs declined 18 basis points and 22 basis points in three and six months ended June 30, 2026, respectively, driven by a decline in deposit costs through prudent cost management in a lower rate environment. Deposit balance remixing, with certain time deposits maturing and being replaced with lower cost product types, also created a more optimal funding mix. Additionally, loan yields only decreased modestly in the lower rate environment, reflecting the rate protection provided by the Company’s hedging program. Turnover of fixed-rate loans and securities, combined with debt securities repositioning transactions in prior periods as well as during the second quarter of 2026, resulted in new loans and securities at higher rates that benefitted net interest income and net interest margin.
Previous report
NM - Not Meaningful
Previous report
NM - Not Meaningful
Previous report
FDIC insurance assessments decreased in the three and six months ended June 30, 2026 compared to the same periods in 2025.
Reworded paragraphs (74)
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 the Annual Report on Form 10-K for the year ended December 31, 2025, 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, 2026 compared to the three and six months ended June 30, 2025 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, 2026 compared to December 31, 2025.
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 the Annual Report on Form 10-K for the year ended December 31, 2025, 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, 2026 compared to the three and nine months ended September 30, 2025 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, 2026 compared to December 31, 2025.
Previous wording
Regions reported net income available to common shareholders of $549 million or $0.64 per diluted share in the second quarter of 2026 compared to net income available to common shareholders of $534 million or $0.59 per diluted share in the second quarter of 2025.
Current wording
Regions reported net income available to common shareholders of $611 million or $0.71 per diluted share in the third quarter of 2026 compared to net income available to common shareholders of $548 million or $0.61 per diluted share in the third quarter of 2025.
Previous wording
Net interest income (taxable-equivalent basis) totaled $1.3 billion in the second quarter of 2026, which increased $20 million compared to the second quarter of 2025. The net interest margin (taxable-equivalent basis) was 3.66 percent in the second quarter of 2026, reflecting a 1 basis point increase from the same period in 2025. The increases in net interest income and margin were driven primarily by lower total funding costs that overcame a modest decline in loan yields, which were also protected by the Company's hedging program. Additionally, net interest income and margin benefitted from fixed-rate asset turnover and securities repositionings executed in 2025 and 2026. Refer to the related discussion below Table 18 "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 2026, which increased $45 million compared to the third quarter of 2025. The net interest margin (taxable-equivalent basis) was 3.68 percent in the third quarter of 2026, reflecting a 9 basis point increase from the same period in 2025. The increases in net interest income and margin were driven primarily by lower total funding costs that overcame a modest decline in loan yields, which were also protected by the Company's hedging program. Additionally, net interest income and margin benefited from fixed-rate asset turnover and securities repositionings executed in 2025 and 2026. Refer to the related discussion below Table 18 "Consolidated Average Daily Balances and Yield/Rate Analysis" for further detail.
Previous wording
The provision for credit losses totaled $68 million in the second quarter of 2026 compared to $126 million in the second quarter of 2025. Net charge-offs totaled $102 million, or 0.42 percent of average loans, in the second quarter of 2026, compared to $113 million, or 0.47 percent of average loans, in the second quarter of 2025. This decrease reflected continued progress on previously identified portfolios of interest that were already reserved for. The allowance as a percent of total loans, net, decreased to 1.63 percent at June 30, 2026, compared to 1.76 percent at December 31, 2025 due to asset quality improvement and resolutions of previously reserved for credits. Refer to the "Allowance" section for further detail.
Current wording
The provision for credit losses totaled $68 million in the third quarter of 2026 compared to $105 million in the third quarter of 2025. Net charge-offs totaled $72 million, or 0.29 percent of average loans, in the third quarter of 2026, compared to $135 million, or 0.55 percent of average loans, in the third quarter of 2025. The allowance as a percent of total loans, net, decreased to 1.61 percent at September 30, 2026, compared to 1.76 percent at December 31, 2025. The decrease in provision reflects continued improvement in credit metrics, runoff of certain higher-risk loan portfolios and high-quality loan growth. Refer to the "Allowance" section for further detail.
Previous wording
Non-interest income was $630 million in the second quarter of 2026 compared to $646 million in the second quarter of 2025 primarily driven by securities losses associated with repositioning transactions in the second quarter of 2026 and a decline in mortgage income. Partially offsetting the losses were increases in service charges, investment management and trust fee income, investment services fee income, and higher market valuations on employee benefit assets. See Table 23 "Non-Interest Income" for further details.
Current wording
Non-interest income was $675 million in the third quarter of 2026, which increased $16 million compared to the third quarter of 2025. The increase was primarily driven by increases in service charges on deposit accounts, commercial credit fee income and BOLI income, and partially offset by decreases in mortgage income, other miscellaneous income, and lower market valuations on employee benefit assets. Also contributing to the increase in non-interest income was a decline in securities losses associated with repositioning transactions. See Table 23 "Non-Interest Income" for further details.
Previous wording
Non-interest expense was $1.1 billion in the second quarter of 2026 which increased $48 million compared to the second quarter of 2025. The increase was primarily driven by an increase in salaries and benefits and outside services expenses. These increases were partially offset by a decline in FDIC insurance expense, operational losses, and Visa class B shares expense. See Table 24 "Non-Interest Expense" for further details.
Current wording
Non-interest expense was $1.1 billion in the third quarter of 2026, which increased $15 million compared to the third quarter of 2025. The increase was primarily driven by an increase in salaries and benefits, equipment and software expense, and professional, legal and regulatory expenses. These increases were partially offset by a decline in operational losses, Visa class B shares expense, and other miscellaneous expenses. See Table 24 "Non-Interest Expense" for further details.
Previous wording
Regions' effective tax rate was 20.7 percent in the second quarter of 2026 compared to 20.3 percent in the second quarter of 2025. See the "Income Taxes" section for further details.
Current wording
Regions' effective tax rate was 19.8 percent in the third quarter of 2026 compared to 19.7 percent in the third quarter of 2025. 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, 2026, Regions’ CET1 ratio was estimated to be 10.7 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, 2026, Regions’ CET1 ratio was estimated to be 10.8 percent. For additional information on Regions' regulatory capital requirements see the "Regulatory Requirements" section.
Previous wording
Cash and cash equivalents decreased approximately $981 million from year-end 2025 to June 30, 2026 primarily due to an increase in loans and a decrease in deposits which was partially offset by an increase in borrowed funds. See the "Loans", "Deposits, "Borrowed Funds" and "Liquidity" sections for more information.
Current wording
Cash and cash equivalents decreased approximately $578 million from December 31, 2025 to September 30, 2026 primarily due to an increase in loans coupled with a decrease in deposits. These changes were partially offset by an increase in borrowed funds. See the "Loans", "Deposits, "Borrowed Funds" and "Liquidity" sections for more information.
Previous wording
Debt securities, which comprise approximately 23 percent of earning assets, are an important tool used to manage interest rate sensitivity and provide a primary source of liquidity for the Company, as much of the portfolio is highly liquid. Additionally, some of the debt securities portfolio is eligible to be used as collateral for funding of various types of borrowings. See the "Liquidity" and "Market Risk-Interest Rate Risk" sections for more information on these arrangements. See also Note 3 "Debt Securities" to the consolidated financial statements for additional information.
Current wording
Debt securities, which comprise approximately 22 percent of earning assets, are an important tool used to manage interest rate sensitivity and provide a primary source of liquidity for the Company, as much of the portfolio is highly liquid. Additionally, some of the debt securities portfolio is eligible to be used as collateral for funding of various types of borrowings. See the "Liquidity" and "Market Risk-Interest Rate Risk" sections for more information on these arrangements. See also Note 3 "Debt Securities" to the consolidated financial statements for additional information.
Previous wording
Debt securities decreased $507 million from December 31, 2025 to June 30, 2026 due to the timing of securities purchases and less favorable market valuation adjustments resulting from changes in interest rates. During the second quarter of 2026, the Company executed a debt securities repositioning involving the sale of shorter-duration commercial agency MBS and U.S. Treasuries, which were replaced with longer-duration commercial and residential agency MBS and U.S. Treasuries with higher market yields. In total the Company sold approximately $900 million of debt securities available for sale and realized approximately $40 million in pre-tax losses.
Current wording
Debt securities decreased $1.7 billion from December 31, 2025 to September 30, 2026 due to the timing of securities purchases and less favorable market valuation adjustments resulting from changes in interest rates. Of note, the Company executed securities repositionings in the second and third quarters of 2026 involving the sale of shorter-duration commercial and residential agency MBS and U.S. Treasuries, which were replaced with longer-duration commercial and residential agency MBS and U.S. Treasuries with higher market yields. In total, the Company sold approximately $1.7 billion of debt securities available for sale and realized approximately $55 million in pre-tax losses in the first nine months of 2026.
Previous wording
The average life of the debt securities portfolio at both June 30, 2026 and December 31, 2025 was estimated to be 5.9 years, with a duration of approximately 3.9 years, inclusive of fair value hedges (see Table 20).
Current wording
The average life of the debt securities portfolio at September 30, 2026 and December 31, 2025 was estimated to be 6.1 and 5.9 years, respectively, with a duration of approximately 3.8 and 3.9 years, respectively, inclusive of fair value hedges (see Table 20).
Previous wording
Loans, net of unearned income, represented approximately 70 percent of interest-earning assets as of June 30, 2026. The following table presents the distribution of Regions' loan portfolio by segment and class, net of unearned income:
Current wording
Loans, net of unearned income, represented approximately 71 percent of interest-earning assets as of September 30, 2026. The following table presents the distribution of Regions' loan portfolio by segment and class, net of unearned income:
Previous wording
Loans, net of unearned income, increased $3.6 billion from year-end 2025 due to an increase across all commercial and investor real estate loan classes as discussed below. These increases were partially offset by a slight decline in consumer loans. Regions manages loan growth with a focus on risk management and risk-adjusted return on capital.
Current wording
Loans, net of unearned income, increased $4.2 billion from year-end 2025 due to an increase across all commercial and investor real estate loan classes as discussed below. These increases were partially offset by a slight decline in consumer loans. Regions manages loan growth with a focus on risk management and risk-adjusted return on capital.
Previous wording
The following sections describe the composition of the portfolio segments and classes disclosed in Table 3, explain changes in balances from year-end 2025 and highlight the related risk characteristics. Regions believes that its loan portfolio is well diversified by product, client, and geography throughout its footprint. However, the loan portfolio may be exposed to certain concentrations of credit risk which exist in relation to individual borrowers or groups of borrowers, certain types of collateral, certain types of industries, and certain loan products. See Note 4 "Loans and the Allowance for Credit Losses" to the consolidated financial statements for additional discussion.
Current wording
The following sections describe the composition of the portfolio segments and classes disclosed in Table 3, explain changes in balances from year-end 2025 and highlight the related risk characteristics. Regions believes that its loan portfolio is well diversified by product, client, and geography throughout its footprint. However, the loan portfolio may be exposed to certain concentrations of credit risk which exist in relation to individual borrowers or groups of borrowers, certain types of collateral, certain types of industries, and certain loan products. See Note 4 "Loans and the Allowance for Credit Losses" to the consolidated financial statements for additional discussion. See the "Portfolio Characteristics" section in Regions' Annual Report on Form 10-K for the year ended December 31, 2025 for more information on details surrounding the commercial and IRE portfolio segments and underwriting criteria, underwriting for owner-occupied real estate and real estate construction and real estate appraisals for commercial and IRE loans.
Previous wording
Over half of the Company’s total loans are included in the commercial portfolio segment. These balances are spread across numerous industries, as noted in Table 4. The Company manages the related risks to this portfolio by setting certain lending limits for each significant industry. The commercial portfolio segment includes commercial and industrial loans for use in customers' normal business operations to finance working capital needs, equipment purchases, expansion projects and acquisitions. See the "Portfolio Characteristics" section in Regions' Annual Report on Form 10-K for the year ended December 31, 2025 for more information on details surrounding the commercial portfolio segment and underwriting criteria, underwriting for owner-occupied real estate and real estate construction and real estate appraisals for commercial and IRE loans.
Current wording
The commercial portfolio segment includes commercial and industrial loans for use in customers' normal business operations to finance working capital needs, equipment purchases, expansion projects and acquisitions. Over half of the Company’s total loans are included in the commercial portfolio segment. These balances are spread across numerous industries, as noted in Table 4. The Company manages the related risks to this portfolio by setting certain lending limits for each significant industry.
Previous wording
Commercial and industrial loans increased $3.1 billion since year-end 2025 driven primarily by increases in energy and utilities, manufacturing, real estate, and healthcare. Growth was driven by higher line utilization rates and new loan production. In the first six months of 2026, the increase in commercial and industrial loans was broad-based as shown in Table 4.
Current wording
Commercial and industrial loans increased $3.6 billion since year-end 2025 driven primarily by increases in government and public sector, financial services, energy and utilities, manufacturing, real estate, and healthcare. In the first nine months of 2026, the increase in commercial and industrial loans was broad-based as shown in Table 4.
Previous wording
The commercial portfolio also includes owner-occupied commercial real estate mortgage loans to operating businesses, which are loans for long-term financing on real estate assets, and are repaid by cash generated by business operations. Owner-occupied commercial real estate construction loans are made to commercial businesses for the development of land or construction of a building where the repayment is derived from revenues generated from the business of the borrower. These owner-occupied real estate and real estate construction loans generally mature within a 10 year period and with amortization periods reflecting the longer life of the underlying collateral. Typical structure is an amortizing term loan, though construction loans are short-term, monitored, non-revolving draw facilities. These loans frequently have a covenant package combination consistent with the underwriting of commercial loans, inclusive of applicable debt service coverage, leverage, and liquidity measurements.
Current wording
The commercial portfolio also includes owner-occupied commercial real estate mortgage loans to operating businesses, which are loans for long-term financing on real estate assets, and are repaid by cash generated by business operations. Owner-occupied commercial real estate construction loans are made to commercial businesses for the development of land or construction of a building where the repayment is derived from revenues generated from the business of the borrower.
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 $863 million in comparison to year-end 2025 balances due to increases in fundings to previously approved projects and new term loans for apartments and medical office buildings. See the "Investor Real Estate" section in Regions' Annual Report on Form 10-K for the year ended December 31, 2025 for more information on details surrounding the investor real estate portfolio segment and underwriting criteria.
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 $1.1 billion in comparison to year-end 2025 balances due to increases in fundings to previously approved projects and new term loans for apartments and medical office buildings.
Previous wording
While the business offices portfolio remains a portfolio of interest, credit quality is improving. The office portfolio totaled $858 million and represented 0.9 percent of total loans at June 30, 2026, declining from $1.0 billion and 1.1 percent of loans at December 31, 2025. The office portfolio included non-performing loans of $121 million and had associated charge-offs of $1 million in the six months ended June 30, 2026. Approximately 99 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 87 percent were Class A properties. Approximately 60 percent of the office portfolio will mature in the next 12 months. Additionally, the IRE office portfolio had a weighted-average LTV of approximately 64 percent at June 30, 2026, based upon appraisal at origination or most recent received, and a stressed weighted-average LTV of approximately 84 percent as of April 7, 2026, based upon GreenStreet's Commercial Property Price Index. While the office portfolio remains stressed, well-located, highly amenitized properties are observing improvements to property fundamentals. No new loan originations are being contemplated in this portfolio.
Current wording
While the business offices portfolio remains a portfolio of interest, credit quality is improving. The office portfolio totaled $773 million and represented 0.8 percent of total loans at September 30, 2026, declining from $1.0 billion and 1.1 percent of loans at December 31, 2025. The office portfolio included non-performing loans of $134 million and had associated charge-offs of $1 million in the nine months ended September 30, 2026. Approximately 99 percent of the office portfolio was secured, with approximately 66 percent of secured balances located in the South region of the U.S, of which 86 percent were Class A properties. Approximately 66 percent of the office portfolio will mature in the next 12 months. Additionally, the IRE office portfolio had a weighted-average LTV of approximately 68 percent at September 30, 2026, based upon appraisal at origination or most recent received, and a stressed weighted-average LTV of approximately 85 percent as of October 6, 2026, based upon GreenStreet's Commercial Property Price Index. While the office portfolio remains stressed, well-located, highly amenitized properties are observing improvements to property fundamentals. No new loan originations are being contemplated in this portfolio.
Previous 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. While the freight cycle has improved and spot-market fundamentals are strong, the industry remains vulnerable to economic uncertainty. The trucking portfolio totaled $1.1 billion and represented 1.1 percent of total loans at June 30, 2026, declining from $1.2 billion and 1.3 percent of loans at December 31, 2025. The trucking portfolio included non-performing loans of $45 million and had associated charge-offs of $29 million in the six months ended June 30, 2026. New originations in the sector have been curtailed and those that occur are either secured or targeted towards larger companies.
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. While the freight cycle has improved and spot-market fundamentals remain strong, the industry remains vulnerable to economic uncertainty and potential freight-demand slowdowns. The trucking portfolio totaled $1.0 billion and represented 1.0 percent of total loans at September 30, 2026, declining from $1.2 billion and 1.3 percent of loans at December 31, 2025. The trucking portfolio included non-performing loans of $43 million and had associated charge-offs of $33 million in the nine months ended September 30, 2026. New originations in the sector have been curtailed and those that occur are either secured or targeted towards larger companies.
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 $267 million in comparison to year-end 2025 balances as payoffs and paydowns outpaced production.
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 $389 million in comparison to year-end 2025 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 $297 million from year-end 2025 driven by a decline in consumer home improvement lending.
Current wording
Other consumer loans primarily include indirect and direct consumer loans, overdrafts and other revolving loans. Other consumer loans decreased $379 million from year-end 2025 driven by a decline in consumer home improvement lending.
Previous wording
Regions' allowance estimation process utilizes loss forecasting models for pooled loans, specific reserves for significant individually evaluated non-performing loans, and qualitative adjustments for items not captured by the models including specific adjustments and general imprecision. Key inputs to Regions' loss forecasting models include, but are not limited to, loan risk ratings (commercial and investor real estate loans), maturity date, days past due and FICO scores (consumer loans), collateral values securing loans, and Regions' internally prepared baseline economic forecast. Changes in any of these factors, assumptions, or the availability of new information, could require the allowance to be adjusted in future periods, perhaps materially. Outputs from the loss forecasting models, in combination with Regions' qualitative framework and other analyses, inform management in its estimation of Regions' expected credit losses to ensure the overall allowance estimate is appropriate from both a bottom-up and top-down perspective. Current prevailing economic uncertainty and the potential for further disruption could influence future levels of the allowance. Actual losses could vary, perhaps materially, from management’s estimates. See Note 1 "Summary of Significant Accounting Policies" in the Annual Report on Form 10-K for the year ended December 31, 2025 for more information.
Current wording
Regions' allowance estimation process utilizes loss forecasting models for pooled loans, specific reserves for significant individually evaluated non-performing loans, and qualitative adjustments for items not captured by the models including specific adjustments and general imprecision. Key inputs to Regions' loss forecasting models include, but are not limited to, loan risk ratings (commercial and investor real estate loans), maturity date, DPD and FICO scores (consumer loans), collateral values securing loans, and Regions' internally prepared baseline economic forecast. Changes in any of these factors, assumptions, or the availability of new information, could require the allowance to be adjusted in future periods, perhaps materially. Outputs from the loss forecasting models, in combination with Regions' qualitative framework and other analyses, inform management in its estimation of Regions' expected credit losses to ensure the overall allowance estimate is appropriate from both a bottom-up and top-down perspective. Current prevailing economic uncertainty and the potential for further disruption could influence future levels of the allowance. Actual losses could vary, perhaps materially, from management’s estimates. See Note 1 "Summary of Significant Accounting Policies" in the Annual Report on Form 10-K for the year ended December 31, 2025 for more information.
Previous wording
Management reviews the allowance on a quarterly basis using updated information, including changes to economic conditions, the loan portfolio and credit information. The following table provides an analysis of the changes in the allowance for the three and six months ended June 30, 2026:
Current wording
Management reviews the allowance on a quarterly basis using updated information, including changes to economic conditions, the loan portfolio and credit information. The following table provides an analysis of the changes in the allowance for the three and nine months ended September 30, 2026:
Previous wording
Regions' internally-developed June 2026 baseline forecast, which was similar to the March 2026 baseline forecast, reflects slightly lower real GDP which is expected to grow 2.0 percent in 2026. While consumer spending was supported by tax legislation enacted in 2025, it is expected to be partially offset by higher prices. Corporate profit margins remain healthy and are supportive of growth in business investment, which is expected to support real GDP growth. Inflation as measured by CPI is expected to remain above the FOMC's 2.0 percent target rate into 2027. The longer the conflict in the Middle East persists, the greater the risk that core inflation could increase. Labor markets have firmed slightly in 2026 and the current baseline forecast anticipates a moderate pace of job growth resulting in a modest decrease in the allowance for the three months ended June 30, 2026.
Current wording
Regions' internally-developed September 2026 baseline forecast, which was relatively consistent with the June 2026 baseline forecast, reflects slightly higher real GDP which is expected to grow 2.1 percent in 2026. While consumer spending has been supported by tax legislation enacted in 2025, the boost to after-tax personal income has largely been depleted. Also, ongoing tensions in the Middle East have put upward pressure on energy prices and present a greater risk of financial stress on certain households. However, corporate profit margins remain healthy and are supportive of growth in business investment, which is expected to support real GDP growth into 2027. Labor markets have firmed slightly during 2026 and the current baseline forecast anticipates a moderate pace of job growth that will keep the unemployment rate steady to slightly lower. Inflation, as measured by CPI, is expected to remain above the FOMC's 2.0 percent target rate into 2027.
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. The general imprecision component remained stable for the three months ended June 30, 2026.
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. The qualitative framework also has specific adjustment components which capture specific issues or events that management believes are not adequately captured in the model outcomes.
Previous wording
Overall credit metrics continued to improve through the three months ended June 30, 2026. The ratio of net charge-offs to average loans decreased 12 basis points in the three months ended June 30, 2026 compared to the first three months of 2026, reflecting continued progress on previously identified portfolios of interest for which specific reserves had already been established. Therefore, specific reserve releases due to charge-offs resulted in a decrease in the allowance. Commercial and investor real estate criticized balances as a percent of total related loans, and non-performing loan balances decreased in the three months ended June 30, 2026. See Table 10 for more details on net charge-offs, non-performing loans and criticized loans. The combination of credit quality improvements and specific reserve releases due to charge-offs resulted in a decrease in the allowance in the three months ended June 30, 2026. Regarding impacts to the allowance as a result of portfolio changes, high quality loan portfolio growth and other credit quality considerations resulted in an increase in the modeled allowance results for the three months ended June 30, 2026.
Current wording
Overall credit metrics continued to improve through the three months ended September 30, 2026. The ratio of net charge-offs to average loans decreased 13 basis points in the three months ended September 30, 2026 compared to the three months ended June 30, 2026. Commercial and investor real estate criticized balances as a percent of total related loans, and non-performing loan balances decreased in the three months ended September 30, 2026. See Table 10 for more details on net charge-offs, non-performing loans and criticized loans. Specific reserve changes in the three months ended September 30, 2026 were relatively flat, with increases related to new non-performing loans largely offset by payoffs. Portfolio changes contributing to the decrease in the modeled allowance results for the three months ended September 30, 2026 were the net effect of runoff in certain higher risk portfolios outweighing high-quality loan growth.
Previous wording
Based upon the factors discussed above, the June 30, 2026 allowance decreased $34 million in the three months ended June 30, 2026. The allowance reduction resulted from overall credit quality improvement in the portfolio and continued progress resolving loans within previously identified portfolios of interest, partially offset by an increase for high quality loan growth.
Current wording
Based upon the factors discussed above, the September 30, 2026 allowance decreased $4 million in the three months ended September 30, 2026. The allowance reduction resulted from changes in portfolio composition, including the net effect of runoff in certain higher-risk portfolios outweighing growth in higher-quality loans, partially offset by considerations for recent increases in interest rates and ongoing macroeconomic uncertainty.
Previous wording
Furthermore, in the six months ended June 30, 2026, the allowance decreased $73 million driven primarily by overall credit quality improvement in the portfolio, including declines in criticized loans as a percent of loan balances and non-performing loan balances, and continued resolutions of loans within previously identified portfolios of interest.
Current wording
Furthermore, in the nine months ended September 30, 2026, the allowance decreased $77 million driven primarily by overall credit quality improvement in the portfolio, including declines in criticized loans as a percent of loan balances and non-performing loan balances, and continued resolutions of loans within previously identified portfolios of interest outweighing high-quality loan growth.
Previous wording
Net charge-offs decreased $4 million for the six months ended June 30, 2026 compared to the same period in 2025. Economic and qualitative 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 2026 and beyond.
Current wording
Net charge-offs decreased $67 million for the nine months ended September 30, 2026 compared to the same period in 2025 driven primarily by declines in investor real estate losses reflecting progress on higher-risk portfolios. Economic and qualitative 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 2026 and beyond.
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; however, includes Ginnie Mae repurchased loans with partial guarantees. Total 90+ days or more past due guaranteed loans excluded were $100 million at June 30, 2026 and $79 million at December 31, 2025.
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; however, includes Ginnie Mae repurchased loans with partial guarantees. Total 90+ days or more past due guaranteed loans excluded were $105 million at September 30, 2026 and $79 million at December 31, 2025.
Previous wording
Non-performing loans, excluding loans held for sale, decreased $30 million at June 30, 2026 as compared to year-end 2025. 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, decreased $113 million at September 30, 2026 as compared to year-end 2025 driven by declines in administrative, support, waste and repair, manufacturing, and transportation and warehousing. 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
(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 $1.6 billion at June 30, 2026 and $1.3 billion at December 31, 2025.
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 $1.0 billion at September 30, 2026 and $1.3 billion at December 31, 2025.
Previous wording
Total deposits at June 30, 2026 decreased approximately $418 million compared to year-end 2025 levels reflecting normal seasonal patterns associated with tax refunds and payments. The decline was driven by a decrease in interest-bearing checking, money market, and time deposits. Deliberate product management resulted in a shift from time deposits into other products. The mix of non-interest-bearing deposits was approximately 31 percent of total deposits at June 30, 2026, which remained stable in comparison to December 31, 2025.
Current wording
Total deposits at September 30, 2026 decreased approximately $1.6 billion compared to year-end 2025. Throughout 2026, deliberate product management has resulted in a shift from time deposits into other products. Also contributing to the decrease in interest-bearing balances, in the third quarter of 2026, a limited number of large commercial clients strategically reallocated into off-balance sheet products through the Company’s institutional investment services group. The mix of non-interest-bearing deposits was approximately 31 percent of total deposits at September 30, 2026, which remained stable in comparison to December 31, 2025.
Previous wording
Short-term borrowings totaled $3.0 billion at June 30, 2026, consisting of federal funds purchased of $200 million and FHLB advances of $2.8 billion. At December 31, 2025, short-term borrowings totaled $750 million comprised entirely of FHLB advances. The levels of these borrowings can fluctuate depending on the Company's funding needs and the sources utilized. See the "Liquidity" section for further discussion and detail of Regions' borrowing capacity with the FHLB.
Current wording
Short-term borrowings totaled $4.5 billion at September 30, 2026, consisting of federal funds purchased of $500 million and FHLB advances of $4.0 billion. At December 31, 2025, short-term borrowings totaled $750 million comprised entirely of FHLB advances. The levels of these borrowings can fluctuate depending on the Company's funding needs and the sources utilized. See the "Liquidity" section for further discussion and detail of Regions' borrowing capacity with the FHLB.
Previous wording
Long-term borrowings increased by approximately $494 million from year-end 2025 reflecting the issuance of senior notes partially offset by the repayment of FHLB advances. In the second quarter, Regions Bank issued $1.5 billion of 4.755% fixed rate to floating rate senior notes due July 2029. The notes will initially bear interest at 4.755% per annum and, commencing on July 27, 2028, in conjunction with the call date, the notes will bear interest at a floating rate per annum equal to Compounded SOFR plus 0.807%.
Current wording
Long-term borrowings increased by approximately $1.8 billion from year-end 2025 reflecting the issuance of senior notes and additional FHLB advances. In the second quarter of 2026, Regions Bank issued $1.5 billion of 4.755% fixed rate to floating rate senior notes due July 2029. The notes will initially bear interest at 4.755% per annum and, commencing on July 27, 2028, in conjunction with the call date, the notes will bear interest at a floating rate per annum equal to Compounded SOFR plus 0.807%.
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, 2026, Regions' blanket lien arrangements with these entities covered a total loan balance of approximately $95.9 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, 2026, Regions' blanket lien arrangements with these entities covered a total loan balance of approximately $96.5 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
Regions is subject to supervisory stress testing conducted by the Federal Reserve and its SCB is currently floored at 2.5 percent. See Note 6 "Shareholders' Equity and Accumulated Other Comprehensive Income (Loss)" to the consolidated financial statements for further details regarding CCAR results.
Current wording
Regions is subject to supervisory stress testing conducted by the Federal Reserve and its SCB is currently floored at 2.5 percent. On September 30, the Federal Reserve finalized its rules supporting the stress testing framework aimed at enhancing transparency and public accountability while reducing volatility in stress test-related capital requirements. The rules require the Federal Reserve to solicit public comment on stress test scenarios and material changes to supervisory stress testing models. The rule also revises the stress testing timeline, with proposed scenarios released for public comment and finalized within the first quarter of each year. Additionally, the Federal Reserve is implementing a mechanism designed to reduce volatility in SCB requirements by averaging results for institutions that participate in two consecutive stress test cycles. As a Category IV bank, Regions will only benefit from the averaging approach if electing to participate during an off-cycle year. See Note 6 "Shareholders' Equity and Accumulated Other Comprehensive Income (Loss)" to the consolidated financial statements for further details regarding CCAR results.
Previous wording
On May 12, 2026, Fitch upgraded the Company's long-term bank deposits rating from A to A+ and affirmed the short-term rating of F1 reflecting reduced probability of default for deposits due to depositor preference in the United States.
Current wording
On May 12, 2026, Fitch upgraded the Company's long-term bank deposits rating from A to A+ and affirmed the short-term rating of F1 reflecting reduced probability of default for deposits due to depositor preference in the U.S.
Showing the first 40 of 74 pairs. Open the source sections for the rest.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
The following sections provide expanded discussion of significant changes in certain line items in income and expense categories.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
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. Specific qualitative adjustments declined in the three months ended June 30, 2026.
Previous report — wording carried elsewhere
Additionally, investment in FHLB stock is required in relation to the level of outstanding borrowings. The FHLB has been and is expected to continue to be a reliable and economical source of funding.