01—Abstract
Summary
Summary of the 10-Q filed May 7, 2026. Cited figures are marked; the original filing is the authoritative source.
Regions Financial Corporation's Form 10-Q for the quarter ended March 31, 2026 reports net income of $559 milliona, or $0.62 diluted earnings per common share on net income available to common shareholders of $539 million, compared with $490 million net income and $0.51 diluted EPS in the first quarter of 2025.
Net interest income rose to $1.248 billionb from $1.194 billion, and the net interest margin (taxable-equivalent) was 3.67 percent, up 15 basis points year over year. Non-interest income increased to $625 million from $590 million, while non-interest expense rose to $1.068 billion from $1.039 billion. The provision for credit losses fell to $91 million from $124 million, and net charge-offs were $130 million, or 0.54 percent of average loans.
Total assets grew to $160.7 billionc at March 31, 2026 from $158.8 billion at December 31, 2025, driven by loan growth: net loans rose to $97.9 billion from $95.6 billion, with commercial and industrial loans up $2.0 billion. Deposits increased to $131.9 billion, and short-term borrowings rose to $3.2 billion while long-term borrowings fell to $3.1 billion after the repayment of $1.0 billion in FHLB advances. Shareholders' equity declined to $18.8 billion from $19.0 billion, reflecting $401 million of common stock repurchases and $183 million of other comprehensive loss.
The company reported a CET1 ratio estimated at 10.7 percent and non-performing loans of $692 milliond, excluding held-for-sale loans, which decreased $6 million from year-end 2025. The allowance for credit losses was $1.6 billion, or 1.68 percent of loans.
Subsequent to quarter-end, the company sold approximately $900 million of available-for-sale debt securities, realizing approximately $40 million in pre-tax losses, and had repurchased 1.4 million shares for approximately $40 million through May 6, 2026. The Board has authorized up to $3.0 billion of common stock repurchases through December 31, 2027, of which $2.6 billion remained available at March 31, 2026.
02—Key points
Key Highlights
- Net income of $559 million in Q1 2026 versus $490 million in Q1 2025; diluted EPS of $0.62 versus $0.51.
- Net interest income of $1.248 billion, up from $1.194 billion, with net interest margin of 3.67 percent, a 15 basis point increase, driven by lower funding costs.
- Provision for credit losses fell to $91 million from $124 million; net charge-offs were $130 million, or 0.54 percent of average loans.
- Loans, net of unearned income, rose to $97.9 billion from $95.6 billion at year-end 2025, led by commercial and industrial loans, which increased $2.0 billion.
- Non-performing loans excluding held for sale were $692 million, a decrease of $6 million from December 31, 2025; the allowance for credit losses was 1.68 percent of loans.
- Common stock repurchases of $401 million in the quarter under the $3.0 billion authorization; shareholders' equity declined to $18.8 billion, and the CET1 ratio was estimated at 10.7 percent.
- Subsequent to quarter-end, the company sold about $900 million of available-for-sale debt securities, realizing approximately $40 million in pre-tax losses.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed May 7, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Net Income | $559.00M$490.00M | +14.1% |
| EPS (Basic) | $0.63$0.51 | +23.5% |
| EPS (Diluted) | $0.62$0.51 | +21.6% |
| Shares Outstanding (Basic) | 863.00M906.00M | −4.7% |
| Shares Outstanding (Diluted) | 868.00M910.00M | −4.6% |
05—Questions
Frequently Asked Questions
How did Regions' earnings change in the first quarter of 2026?
Net income rose to $559 million from $490 million, and net income available to common shareholders rose to $539 million from $465 million. Diluted EPS was $0.62 compared with $0.51. Higher net interest income, lower provision for credit losses and higher non-interest income more than offset higher non-interest expense.
What drove the increase in net interest income?
The filing attributes the increase primarily to lower total funding costs, which more than offset modest loan yield declines supported by hedges. Funding costs fell to 1.35 percent from 1.60 percent, and fixed-rate asset turnover and prior securities repositioning also contributed.
How is credit quality trending?
Provision for credit losses decreased to $91 million from $124 million. Non-performing loans excluding held for sale were $692 million, down $6 million from year-end 2025, and the allowance for credit losses was $1.647 billion, or 1.68 percent of loans, compared with 1.76 percent at December 31, 2025. Net charge-offs of $130 million were 0.54 percent of average loans, up from $123 million, or 0.52 percent, a year earlier.
What capital actions did Regions take?
Regions repurchased about 14 million common shares for $401 million in the first quarter under a $3.0 billion authorization running through December 31, 2027. It declared $0.265 per common share in cash dividends and $20 million on preferred stock. The CET1 ratio was estimated at 10.7 percent at March 31, 2026, and the stress capital buffer remains floored at 2.5 percent.
What notable events occurred after the quarter ended?
After March 31, 2026, the company executed a debt securities repositioning, selling approximately $900 million of available-for-sale securities and realizing approximately $40 million in pre-tax losses. It also purchased 1.4 million shares for approximately $40 million through May 6, 2026.
06—Continue