Why did fourth-quarter earnings decline from the third quarter?

Net income available to common shareholders fell to $514 million from $548 million, and diluted EPS fell to $0.58 from $0.61. Non-interest income decreased 2.9% on a reported basis, driven by a 23.1% drop in capital markets income from postponed M&A transactions and lower loan syndication and underwriting activity. The income tax expense rose to $174 million, including a $26 million increase in state income tax reserves that raised the effective tax rate to 24.5%.

What is Regions' outlook for 2026?

The company expects full-year 2026 net interest income to rise 2.5% to 4% from 2025's $4,991 million, and adjusted non-interest income to rise 3% to 5%. Adjusted non-interest expense is expected to rise 1.5% to 3.5%, and net charge-offs are expected to be 40 to 50 basis points of average loans. The effective tax rate is expected to return to 20.5% to 21.5%. For 1Q26, net interest income is expected to decline 1% to 2% versus 4Q25.

How strong is Regions' capital position?

At quarter-end, the estimated CET1 ratio was 10.8% and the Tier 1 capital ratio was an estimated 11.9%. Including AOCI, CET1 was an estimated 9.6%. Regions repurchased about 17 million shares for $430 million and declared $231 million in common dividends in the quarter. Management said it expects to manage CET1 including AOCI around the midpoint of its 9.25% to 9.75% operating range.

How are credit quality trends developing?

Business services criticized loans decreased 9 percent and non-performing loans decreased 8 percent during the quarter. Non-performing loans as a share of total loans declined to 0.73%. Net charge-offs were $142 million, or 0.59% of average loans, up from 0.55% in the third quarter, and the company attributed most of the charge-offs to previously identified portfolios of interest with established reserves. The allowance for credit losses declined $27 million to $1,686 million.

RF 8-K: Earnings & Results & Regulation FD

01—Abstract

Summary

Summary of the 8-K filed January 16, 2026. Cited figures are marked; the original filing is the authoritative source.

Regions Financial Corporation (NYSE: RF) reported preliminary fourth-quarter and full-year 2025 results in an 8-K furnished on January 16, 2026.

For the fourth quarter, net income was $534 million^a, net income available to common shareholders was $514 million, and diluted EPS was $0.58, compared with $0.61 in the third quarter. For full-year 2025, net income was $2.16 billion and diluted EPS was $2.30. Adjusted diluted EPS was $2.33 for the year, which management described as up 9 percent year-over-year.

Total revenue was $1.9 billion^b, up 6 percent year-over-year, and the company said 2025 set annual records in Wealth Management and Treasury Management income. Credit quality and funding were the main positives. Business services criticized loans declined 9 percent and non-performing loans declined 8 percent in the quarter.

Net charge-offs rose to 0.59%^c of average loans from 0.55% in the prior quarter, and the allowance for credit losses to non-performing loans increased to 242%. The interest-bearing deposit cost was 1.85% in 4Q25, and the net interest margin was 3.70%. Common equity Tier 1 was an estimated 10.8% (9.6% including AOCI).

Regions repurchased about 17 million shares for $430 million^d and declared $231 million in common dividends during the quarter. The filing also gives 2026 guidance: net interest income up 2.5% to 4%, adjusted non-interest income up 3% to 5%, adjusted non-interest expense up 1.5% to 3.5%, net charge-offs of 40 to 50 basis points, and an effective tax rate of 20.5% to 21.5%. Fourth-quarter results included $14 million of pre-tax selected items and a $26 million after-tax increase in state income tax reserves, which lifted the quarterly effective tax rate to 24.5%.

02—Key points

Key Highlights

Fourth-quarter 2025 net income available to common shareholders of $514 million and diluted EPS of $0.58 (adjusted diluted EPS $0.57), versus $0.61 in 3Q25.
Full-year 2025 net income of $2.16 billion and diluted EPS of $2.30; adjusted diluted EPS of $2.33, up 9 percent year-over-year.
Total revenue of $1.9 billion in 4Q25, up 6 percent year-over-year; 2025 set annual records in Wealth Management and Treasury Management income.
Net interest margin of 3.70% in 4Q25, with interest-bearing deposit costs of 1.85%, and a full-year 2025 return on average tangible common equity of 18.25%.
Estimated CET1 ratio of 10.8% (9.6% including AOCI); tangible common book value per share of $13.75, up 20 percent year-over-year.
Credit metrics: net charge-offs of 0.59% of average loans, non-performing loans down 8 percent, and allowance for credit losses to non-performing loans of 242%.
2026 guidance: net interest income up 2.5% to 4%, adjusted non-interest income up 3% to 5%, adjusted non-interest expense up 1.5% to 3.5%, and net charge-offs of 40 to 50 basis points.

03—Questions

Frequently Asked Questions

Why did fourth-quarter earnings decline from the third quarter?
Net income available to common shareholders fell to $514 million from $548 million, and diluted EPS fell to $0.58 from $0.61. Non-interest income decreased 2.9% on a reported basis, driven by a 23.1% drop in capital markets income from postponed M&A transactions and lower loan syndication and underwriting activity. The income tax expense rose to $174 million, including a $26 million increase in state income tax reserves that raised the effective tax rate to 24.5%.
What is Regions' outlook for 2026?
The company expects full-year 2026 net interest income to rise 2.5% to 4% from 2025's $4,991 million, and adjusted non-interest income to rise 3% to 5%. Adjusted non-interest expense is expected to rise 1.5% to 3.5%, and net charge-offs are expected to be 40 to 50 basis points of average loans. The effective tax rate is expected to return to 20.5% to 21.5%. For 1Q26, net interest income is expected to decline 1% to 2% versus 4Q25.
How strong is Regions' capital position?
At quarter-end, the estimated CET1 ratio was 10.8% and the Tier 1 capital ratio was an estimated 11.9%. Including AOCI, CET1 was an estimated 9.6%. Regions repurchased about 17 million shares for $430 million and declared $231 million in common dividends in the quarter. Management said it expects to manage CET1 including AOCI around the midpoint of its 9.25% to 9.75% operating range.
How are credit quality trends developing?
Business services criticized loans decreased 9 percent and non-performing loans decreased 8 percent during the quarter. Non-performing loans as a share of total loans declined to 0.73%. Net charge-offs were $142 million, or 0.59% of average loans, up from 0.55% in the third quarter, and the company attributed most of the charge-offs to previously identified portfolios of interest with established reserves. The allowance for credit losses declined $27 million to $1,686 million.

04—Continue

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