01—Abstract
Summary
Summary of the 10-Q filed August 6, 2026. Cited figures are marked; the original filing is the authoritative source.
Regions Financial Corporation's Form 10-Q for the quarter ended June 30, 2026 reports second-quarter net income of $570 milliona, or $0.64 per diluted share on net income available to common shareholders of $549 million, compared with $534 million, or $0.59 per diluted share, in the second quarter of 2025.
Net interest income rose to $1.277 billionb from $1.259 billion, and the net interest margin (taxable-equivalent) was 3.66 percent, up 1 basis point year over year. The provision for credit losses fell to $68 million from $126 million, while net charge-offs were $102 million, or 0.42 percent of average loans, versus $113 million, or 0.47 percent, a year earlier. Non-interest income declined to $630 million from $646 million, reflecting securities losses tied to a second-quarter repositioning, while non-interest expense rose to $1.121 billion from $1.073 billion.
On the balance sheet, total assets were $161.3 billionc at June 30, 2026, up from $158.8 billion at December 31, 2025, driven by loans, net of unearned income, which grew to $99.2 billion from $95.6 billion. Total deposits edged down to $130.7 billion, while short-term borrowings rose to $3.0 billion and long-term borrowings to $4.6 billion. Shareholders' equity was $18.8 billion, and the filing reports an estimated Common Equity Tier 1 ratio of 10.7 percent for the holding company.
The company repurchased $460 milliond of common stock in the first six months of 2026 under a $3.0 billion authorization covering 2026 and 2027, and on July 15, 2026 its board declared an increase in the quarterly common dividend to $0.30 per share. The filing notes that the Delaware derivative litigation tied to the 2022 CFPB Consent Order is stayed through November 2, 2026 while a Special Litigation Committee investigates, and that there are no material changes to risk factors from the 2025 Form 10-K. Credit metrics improved, with non-performing loans excluding loans held for sale at $668 million, or 0.67 percent of loans, versus $698 million at year-end 2025.
02—Key points
Key Highlights
- Net income of $570 million for Q2 2026 versus $563 million in Q2 2025; diluted EPS of $0.64 versus $0.59.
- Net interest income of $1.277 billion, up from $1.259 billion; net interest margin of 3.66 percent, up 1 basis point year over year.
- Provision for credit losses fell to $68 million from $126 million; net charge-offs were $102 million, or 0.42 percent of average loans.
- Non-interest income of $630 million versus $646 million, reflecting $41 million of Q2 securities losses from a debt securities repositioning that sold about $900 million of available-for-sale securities.
- Loans, net of unearned income, rose to $99.2 billion from $95.6 billion at year-end 2025, led by commercial and industrial growth of $3.1 billion.
- Total deposits were $130.7 billion, down slightly from $131.1 billion, while short-term borrowings rose to $3.0 billion and long-term borrowings to $4.6 billion, including $1.5 billion of new senior notes.
- Board declared a quarterly common dividend increase to $0.30 per share (from $0.265) on July 15, 2026, and $460 million of shares were repurchased in the first half of 2026 under a $3.0 billion program.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2026filed August 6, 2026Financial Statements
Q2 FY2026 against Q2 FY2025
| Line item | Q2 FY2026Q2 FY2025 | Change |
|---|---|---|
| Net Income | $570.00M$563.00M | +1.2% |
| EPS (Basic) | $0.64$0.59 | +8.5% |
| EPS (Diluted) | $0.64$0.59 | +8.5% |
| Shares Outstanding (Basic) | 854.00M898.00M | −4.9% |
| Shares Outstanding (Diluted) | 857.00M900.00M | −4.8% |
05—Questions
Frequently Asked Questions
How did Regions perform in the second quarter of 2026 compared with the second quarter of 2025?
Net income rose to $570 million from $563 million, and net income available to common shareholders rose to $549 million from $534 million. Diluted earnings per share were $0.64, up from $0.59. Growth came from lower funding costs and a lower provision for credit losses, partly offset by higher non-interest expense and securities losses.
Is credit quality improving?
The filing reports improvement. Net charge-offs were $102 million, or 0.42 percent of average loans, down from $113 million, or 0.47 percent, a year earlier. Non-performing loans excluding loans held for sale declined to $668 million from $698 million at December 31, 2025, and business criticized loans fell to 5.01 percent of total business loans from 5.31 percent at year-end 2025.
What are the company's capital return plans?
Regions repurchased $460 million of common stock in the first six months of 2026 under a $3.0 billion authorization covering 2026 through 2027, with about $2.5 billion remaining at June 30, 2026. Common dividends of $0.265 per share were declared in each of the first two quarters of 2026, and on July 15, 2026 the board raised the quarterly dividend to $0.30, payable October 1, 2026.
What is the status of the shareholder derivative litigation?
The Brewer v. Turner derivative complaint in the Delaware Court of Chancery, which relates to the 2022 CFPB Consent Order, remains stayed. On July 17, 2026 the court extended the stay through November 2, 2026 while a Special Litigation Committee investigates the claims. The filing states that management believes the outcomes of pending matters will not have a material effect on the company as a whole.
What drove the increase in borrowings and the change in liquidity?
Short-term borrowings increased to $3.0 billion, including $2.8 billion of FHLB advances, from $750 million at year-end 2025. Long-term borrowings rose to $4.6 billion after Regions Bank issued $1.5 billion of 4.755% fixed-to-floating senior notes due July 2029, partly offset by $1.0 billion of FHLB advances repaid. Total liquidity sources were $68.4 billion at June 30, 2026.
06—Continue