How did Regions perform in the third quarter of 2026?

Regions reported net income of $631 million and net income available to common shareholders of $611 million, or $0.71 per diluted share, compared with $0.64 in the second quarter. Adjusted diluted EPS was $0.73. Reported ROATCE was 21.27%, and adjusted ROATCE was 21.66%.

What drove the increase in revenue?

Total revenue increased 3.5% QoQ to $1.97 billion. Net interest income rose 1.6%, driven mainly by fixed-rate asset turnover, average loan growth, and higher hedging income. Non-interest income rose 7.1%, led by a 27.4% increase in capital markets income to a record $107 million, reflecting higher M&A advisory revenue, securities underwriting fees, and swap income.

How is credit quality trending?

Credit quality improved. Net charge-offs were $72 million, or 0.29% of average loans annualized, down from 0.42% in the second quarter. The provision for credit losses was $68 million, flat QoQ. Business services criticized loans fell to 4.71% of business loans from 5.01%, and the allowance for credit losses to non-performing loans rose to 275% from 241%.

What is the outlook for the remainder of 2026?

The filing's supplemental materials expect 4Q26 net interest income to increase 1% to 2% versus 3Q26, with a net interest margin of about 3.70%. For FY26, the company expects net interest income to rise 2.5% to 4% versus 2025, adjusted non-interest income to rise 3% to 5% (toward the lower end), adjusted non-interest expense to rise 1.5% to 3.5%, and net charge-offs of 40 to 50 basis points of average loans (toward the lower end).

Why did deposits decline, and how strong is the capital position?

Average deposits fell 1.2% QoQ to $129.14 billion, primarily because a limited number of large commercial clients moved interest-bearing balances to off-balance sheet products. Management stated that underlying trends remained healthy, with growth in new accounts and higher non-interest-bearing balances. The estimated CET1 ratio was 10.8% and the Tier 1 capital ratio was 11.9%, and total available liquidity was approximately $64 billion.

RF 8-K: Earnings & Results & Regulation FD

01—Abstract

Summary

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

Regions Financial Corporation reported preliminary third-quarter 2026 results, furnished under Items 2.02 and 7.01 of this Form 8-K.

The company reported net income of $631 million^a and net income available to common shareholders of $611 million, or diluted EPS of $0.71, versus $570 million and $0.64 in the second quarter. On an adjusted basis, earnings were $622 million and diluted EPS was $0.73. Reported ROATCE was 21.27% and adjusted ROATCE was 21.66%, with a net interest margin of 3.68% and an efficiency ratio of 56.2%.

Revenue growth and credit quality were the main drivers. Total revenue rose 3.5% QoQ to $1.97 billion^b, led by record capital markets income of $107 million and net interest income up 1.6% QoQ. Annualized net charge-offs fell to 0.29% from 0.42%, and the allowance for credit losses covered non-performing loans at 275%.

Average loans grew 0.5%^c QoQ, while average deposits declined 1.2% QoQ, which management attributed primarily to a limited number of large commercial clients moving balances off balance sheet. The estimated CET1 ratio was 10.8%. The filing's supplemental materials include management's outlook for the fourth quarter and full year 2026.

For 4Q26, the company expects net interest income to rise 1%^d to 2% versus 3Q26 and a net interest margin of about 3.70%. For FY26, it expects net interest income to grow 2.5% to 4% versus 2025, adjusted non-interest expense to rise 1.5% to 3.5%, and net charge-offs of 40 to 50 basis points of average loans.

02—Key points

Key Highlights

Reported net income available to common shareholders of $611 million and diluted EPS of $0.71 for 3Q26, up from $549 million and $0.64 in 2Q26; adjusted diluted EPS was $0.73.
Total revenue of $1.97 billion rose 3.5% QoQ, with record capital markets income of $107 million (up 27.4% QoQ) and non-interest income up 7.1% QoQ.
Net interest margin rose 2 basis points to 3.68%, and net interest income increased 1.6% QoQ to $1.30 billion.
Annualized net charge-offs decreased to 0.29% from 0.42%, and non-performing loans fell to 0.59% of loans, with allowance coverage of non-performing loans at 275%.
Average deposits declined 1.2% QoQ to $129.14 billion, primarily reflecting a limited number of large commercial clients moving balances to off-balance sheet products.
Estimated CET1 ratio was 10.8%; the company repurchased approximately 3 million shares for $95 million and declared $255 million in common dividends during the quarter.
Management expects 4Q26 net interest income to rise 1% to 2% versus 3Q26, and FY26 adjusted non-interest expense to grow 1.5% to 3.5% versus FY25.

03—Questions

Frequently Asked Questions

How did Regions perform in the third quarter of 2026?
Regions reported net income of $631 million and net income available to common shareholders of $611 million, or $0.71 per diluted share, compared with $0.64 in the second quarter. Adjusted diluted EPS was $0.73. Reported ROATCE was 21.27%, and adjusted ROATCE was 21.66%.
What drove the increase in revenue?
Total revenue increased 3.5% QoQ to $1.97 billion. Net interest income rose 1.6%, driven mainly by fixed-rate asset turnover, average loan growth, and higher hedging income. Non-interest income rose 7.1%, led by a 27.4% increase in capital markets income to a record $107 million, reflecting higher M&A advisory revenue, securities underwriting fees, and swap income.
How is credit quality trending?
Credit quality improved. Net charge-offs were $72 million, or 0.29% of average loans annualized, down from 0.42% in the second quarter. The provision for credit losses was $68 million, flat QoQ. Business services criticized loans fell to 4.71% of business loans from 5.01%, and the allowance for credit losses to non-performing loans rose to 275% from 241%.
What is the outlook for the remainder of 2026?
The filing's supplemental materials expect 4Q26 net interest income to increase 1% to 2% versus 3Q26, with a net interest margin of about 3.70%. For FY26, the company expects net interest income to rise 2.5% to 4% versus 2025, adjusted non-interest income to rise 3% to 5% (toward the lower end), adjusted non-interest expense to rise 1.5% to 3.5%, and net charge-offs of 40 to 50 basis points of average loans (toward the lower end).
Why did deposits decline, and how strong is the capital position?
Average deposits fell 1.2% QoQ to $129.14 billion, primarily because a limited number of large commercial clients moved interest-bearing balances to off-balance sheet products. Management stated that underlying trends remained healthy, with growth in new accounts and higher non-interest-bearing balances. The estimated CET1 ratio was 10.8% and the Tier 1 capital ratio was 11.9%, and total available liquidity was approximately $64 billion.

04—Continue

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