01—Abstract
Summary
Summary of the 8-K filed April 17, 2026. Cited figures are marked; the original filing is the authoritative source.
Regions Financial Corporation (NYSE: RF) reported first quarter 2026 net income of $559 milliona and net income available to common shareholders of $539 million, or diluted EPS of $0.62, compared with $534 million and $0.58 in the fourth quarter of 2025.
Total revenue was $1.873 billionb, up 5 percent year-over-year but down 2 percent from the prior quarter. Pre-tax pre-provision income rose 8 percent year-over-year. Net interest margin was 3.67 percent, down 3 basis points from the prior quarter, and the efficiency ratio was 56.6 percent.
Average loans increased 1 percent and ending loans increased 2 percent versus the fourth quarter, driven mainly by broad-based commercial and industrial lending. Credit quality improved during the quarter. Net charge-offs were $130 millionc, or 0.54 percent of average loans, and the allowance for credit losses declined $39 million to $1.647 billion, with the allowance ratio falling to 1.68 percent.
Non-performing loans were 0.71 percent of loans. Capital remained solid, with an estimated CET1 ratio of 10.7 percent and 9.4 percent including AOCI. Regions repurchased about 14 million shares for $401 milliond and declared $227 million in common dividends during the quarter.
The company also outlined its 2026 expectations in the accompanying visual presentation (Exhibit 99.3). These include full-year net interest income growth of 2.5 to 4 percent, adjusted non-interest income growth of 3 to 5 percent, adjusted non-interest expense growth of 1.5 to 3.5 percent, and full-year net charge-offs of 40 to 50 basis points of average loans.
02—Key points
Key Highlights
- Net income of $559 million and diluted EPS of $0.62 for 1Q26, up 16% and 22% year-over-year respectively; net income available to common shareholders was $539 million.
- Total revenue of $1.873 billion rose 5% year-over-year but fell 2.5% from 4Q25, with net interest income down 2.6% sequentially on fewer days and non-recurring items.
- Net interest margin was 3.67%, down 3 basis points from 3.70% in 4Q25; interest-bearing deposit costs fell to 1.72%.
- Average loans increased 1% and ending loans increased 2% versus 4Q25, led by broad-based C&I growth, with business criticized loans falling to 5.15% of business loans.
- Net charge-offs were $130 million (0.54% of average loans), and the allowance for credit losses declined $39 million to $1.647 billion, with an allowance ratio of 1.68%.
- Estimated CET1 ratio of 10.7% (9.4% including AOCI); the company repurchased $401 million of common stock and declared $227 million in common dividends in the quarter.
- 2026 outlook includes net interest income growth of 2.5% to 4%, adjusted non-interest expense growth of 1.5% to 3.5%, and net charge-offs of 40 to 50 basis points of average loans.
03—Questions
Frequently Asked Questions
How did Regions perform in the first quarter of 2026?
Regions reported net income of $559 million and diluted EPS of $0.62 for 1Q26, compared with $534 million and $0.58 in 4Q25. Year-over-year, net income rose 16% and diluted EPS rose 22%. Total revenue was $1.873 billion, up 5% from 1Q25.
Was revenue growth sustained from the prior quarter?
No. Total revenue decreased 2.5% from 4Q25 to $1.873 billion, driven mainly by a $33 million decline in net interest income that the company attributed to fewer days in the quarter and non-recurring items in 4Q25. Non-interest income decreased 2.3% sequentially.
How is credit quality trending?
Credit metrics improved. The allowance for credit losses fell $39 million to $1.647 billion, net charge-offs declined to 0.54% of average loans from 0.59%, and the non-performing loan ratio fell to 0.71% from 0.73%. Business criticized loans fell to 5.15% of business loans from 5.31%.
What did management say about 2026 expectations?
Management expects full-year 2026 net interest income to grow 2.5% to 4%, adjusted non-interest income to grow 3% to 5%, and adjusted non-interest expense to grow 1.5% to 3.5%. It also expects net charge-offs of 40 to 50 basis points of average loans and an effective tax rate of 20.5% to 21.5%.
How strong is Regions' capital position?
The estimated CET1 ratio was 10.7%, or 9.4% including AOCI, at March 31, 2026, down from 10.9% and 9.7% at year-end 2025. Regions repurchased about 14 million shares for $401 million and declared $227 million in common dividends during the quarter.
04—Continue