Total loans grew $3.6 billion to $99.2 billion, with C&I up $3.1 billion (energy/utilities, manufacturing, real estate, healthcare) and investor real estate up $863 million (apartments, medical office buildings). Business offices ($858M, 0.9% of loans; $121M NPLs; no new originations contemplated) and trucking ($1.1B, 1.1% of loans; $45M NPLs; $29M H1 charge-offs; originations curtailed) remain portfolios of interest, both showing balance declines from year-end.
Credit quality continued to improve: Q2 net charge-offs were $102 million (0.42% of average loans vs. 0.47% a year earlier), non-performing loans fell to $668 million (0.67% of loans) from $698 million at year-end, and the allowance for credit losses decreased to $1.6 billion (1.63% of loans) from $1.7 billion (1.76%) at year-end, driven by continued resolutions of previously reserved credits and releases of specific reserves.
In Q2 2026 the Company executed a securities repositioning, selling approximately $900 million of shorter-duration commercial agency MBS and U.S. Treasuries and reinvesting in longer-duration agency MBS and Treasuries at higher yields, realizing roughly $40 million in pre-tax losses. The Company also added $1.5 billion in forward-starting receive-fixed swaps (receive 3.7%, weighted-average start 2028, maturity 2031) and $1.0 billion in interest rate options (WA cap 4.8%, floor 3.3%) to hedge future short-term rate exposure, and terminated $1.5 billion of fixed-rate loan turnover hedges as the underlying production was completed.
Regions Bank issued $1.5 billion of 4.755% fixed-to-floating senior notes due July 2029 during the quarter; short-term borrowings rose to $3.0 billion from $750 million at year-end (primarily FHLB advances plus $200 million federal funds purchased); total deposits declined $418 million from year-end to $130.7 billion, with time deposits shifting into lower-cost products.
CET1 ratio was estimated at 10.7% at June 30, 2026. The FRB will not update the SCB based on the 2026 stress test cycle due to outstanding regulatory proposals, so the SCB remains floored at 2.5% through Q3 2027. The Board declared a 13% increase to the quarterly common dividend to $0.30 per share on July 15, 2026 (subsequent to quarter-end, payable October 1). Approximately 16 million shares were repurchased at a total cost of $460 million under the $3.0 billion authorization through June 30. Fitch upgraded the Company's long-term bank deposits rating from A to A+ on May 12, 2026.
Net interest income (taxable-equivalent) was $1.3 billion, up $20 million year over year, with NIM of 3.66% (+1 bp YoY), driven by funding costs declining 18 bps and fixed-rate asset turnover and securities repositionings offsetting a modest decline in loan yields protected by the hedging program. Non-interest expense rose $48 million YoY to $1.1 billion, primarily from salaries and benefits (+$39M; FTE headcount increased to 20,003 from 19,642) and outside services (+$8M); $5 million in branch consolidation, property and equipment charges appeared in the quarter. In Q1 2026 the Company changed its segment provision allocation methodology from expected losses to net charge-offs.
(Filed on May 7, 2026)
+5.0%
—
$3.4B
Total loans increased $2.3 billion from year-end 2025 to $97.9 billion, driven by a $2.0 billion increase in commercial and industrial loans (power/utilities, manufacturing, healthcare, asset-based lending; roughly half from higher line utilization, remainder from new loans primarily to existing clients) and a $538 million increase in investor real estate loans (apartments and data centers). Consumer loans declined modestly as residential first mortgage payoffs outpaced production and home improvement lending showed seasonal softness.
Net interest income (taxable-equivalent) rose $55 million year-over-year to $1.26 billion, with net interest margin up 15 basis points to 3.67%. The improvement was attributed primarily to lower total funding costs (deposit costs fell from 1.40% to 1.20% on a total-deposit basis) and deposit remixing as time deposits migrated to money market accounts, partially offset by modest loan yield declines cushioned by the hedging program. Fixed-rate asset turnover and prior-period securities repositionings also contributed.
Net charge-offs totaled $130 million (0.54% of average loans, up from 0.52% a year earlier), with the increase reflecting charge-offs in previously identified portfolios of interest for which specific reserves had already been established. The allowance for credit losses declined to $1.647 billion (1.68% of loans) from $1.686 billion (1.76%) at year-end, and non-performing loans decreased to $692 million. Business criticized loans were $3.38 billion (5.15% of business loans, down from 5.31%). Business offices ($907 million, 0.9% of total loans, $98 million non-performing) and trucking ($1.1 billion, 1.2% of total loans, $51 million non-performing, $22 million charge-offs) remained designated portfolios of interest; no new office loan originations were being contemplated, and trucking new originations were curtailed to secured or larger-company credits.
Under the $3.0 billion share repurchase authorization approved December 10, 2025 (running through December 31, 2027), Regions repurchased approximately 14.3 million shares for $401 million during Q1 2026 (average price $27.76); an additional 1.4 million shares (~$40 million) were purchased between quarter-end and May 6, 2026. All repurchased shares were immediately retired. In February 2026, the Federal Reserve voted to maintain stress capital buffer requirements at current levels through Q3 2027, keeping Regions' SCB floored at 2.5 percent.
Subsequent to March 31, 2026, the Company executed a debt securities repositioning, selling approximately $900 million of shorter-duration commercial agency MBS and U.S. Treasuries and reinvesting in longer-duration commercial and residential agency MBS and U.S. Treasuries at higher market yields, realizing approximately $40 million in pre-tax losses. This was a post-quarter event and not reflected in Q1 results.
In Q1 2026, the Company changed its segment-level provision for credit losses allocation methodology from expected losses to net charge-offs, with any difference between provision and net charge-offs reported in the 'Other' segment. Additionally, the Basel III Endgame capital rulemaking saw an updated proposal issued on March 19, 2026, which now offers Regions the option (rather than a mandate) to adopt the expanded risk-based approach, and the Company stated it would continue to monitor and evaluate potential impact.
(Filed on February 24, 2026)
+5.8%
—
$3.1B
In Q4 2025, Regions repurchased 17.2 million shares at an average price of $24.70 (total Q4 cost ~$425 million). On December 10, 2025, the Board authorized a new $3.0 billion share repurchase program effective January 1, 2026 through December 31, 2027, superseding the prior $2.5 billion program (under which ~78 million shares totaling $1.7 billion had been repurchased since 2022) that expired December 31, 2025.
Q4 2025 credit metrics improved: non-performing loans (excl. held for sale) declined ~$60 million to $698 million (0.73% of loans), commercial and investor real estate criticized balances fell ~$340 million to $3.3 billion, and the allowance for credit losses decreased $27 million to $1,686 million (1.76% of loans). The decline was driven by upgrades and payoffs across numerous industry portfolios and charge-offs within previously reserved portfolios of interest, partially offset by modest economic forecast deterioration and qualitative adjustments.
In Q4 2025, the Company added $3.5 billion in forward-starting receive-fixed swaps (3.4% receive rate, 5-year maturities, activating throughout 2026) to hedge expected 2026 fixed-rate loan turnover, and ~$550 million in forward-starting pay-fixed swaps (3.9% average pay rate, 2029–2031 start dates, 3–5-year maturities) to reduce AOCI volatility from reinvestment of available-for-sale securities. The 12-month net interest income sensitivity at year-end was mostly neutral: +$39 million / −$40 million for gradual ±100 bp shifts.
The FOMC cut the federal funds rate by 50 basis points at its December 2025 meeting, ending the year in a 3.50%–3.75% range (after 75 bps of cuts across September, October, and December). In December 2025, the FDIC issued an interim final rule reducing the eighth-quarter bank-failure special assessment from 3.36 to 2.97 basis points and no longer projected a ninth or tenth collection quarter, capping the total special assessment period at eight quarters.
Two portfolios remained designated as portfolios of interest at December 31, 2025: business offices ($1.0 billion, 1.1% of total loans) with $117 million non-performing and $54 million in annual charge-offs, a stressed weighted-average LTV of ~85%, and no new originations being contemplated; and trucking/transportation ($1.2 billion, 1.3% of total loans) with $78 million non-performing and $91 million in annual charge-offs, where new originations have been curtailed to secured or larger-company credits. The office portfolio's weighted-average LTV was ~65% at origination; approximately 59% of office loans mature within 12 months.
On December 15, 2025, the Delaware Supreme Court denied the defendants' appeal in the Brewer v. Turner shareholder derivative suit (filed December 2023, related to the 2022 CFPB consent order), leaving in place the September 2025 order that had granted in part the plaintiffs' claims. A 180-day stay was granted on February 5, 2026 pending investigation by the Board's Special Litigation Committee. Separately, on October 24, 2025, the Federal Reserve proposed revisions to its supervisory stress-testing framework, including enhanced public transparency of scenarios and models; Regions' SCB remained floored at 2.5% from Q4 2025, with the Fed voting in February 2026 to extend that floor through Q3 2027.
(Filed on November 4, 2025)
+7.0%
—
$3.1B
In Q3 2025, Regions added several new interest rate hedging programs: $2.5 billion in forward-starting receive-fixed swaps (active January 2028, maturing January 2033) to reduce net interest margin volatility on floating-rate loans; $670 million in pay-fixed fair-value hedges on the AFS securities portfolio (active Q3 2025, maturing 2032) to reduce AOCI volatility, offset by $670 million in receive-fixed cash-flow hedges on floating-rate loans; and approximately $710 million in forward-starting pay-fixed swaps (average start 2028, average maturity 2032) to manage AOCI volatility from securities reinvestment. These complemented $2.0 billion in AFS-to-HTM reclassifications completed in H1 2025, which were undertaken to reduce AOCI volatility ahead of anticipated regulatory capital rule changes.
Overall asset quality improved in Q3 2025: commercial and investor real estate criticized balances fell approximately $926 million from $4.6 billion at the end of Q2 to $3.7 billion, driven by upgrades and significant payoffs across numerous industry portfolios. Non-performing loans (excluding held for sale) declined to $758 million from $776 million in Q2 and $928 million at year-end 2024. The business offices portfolio ($1.1 billion, 1.2% of total loans) carried $113 million in non-performing loans and $51 million in nine-month charge-offs, with ~55% of the portfolio maturing within 12 months and no new originations contemplated. The trucking portfolio ($1.3 billion, 1.3% of total loans) carried $117 million in non-performing loans and $52 million in nine-month charge-offs, with new originations curtailed and limited to secured deals.
Investor real estate loans increased $360 million to $9.1 billion from year-end 2024, driven by fundings to previously approved projects and new term loans for apartments, data centers, and industrial properties. Conversely, commercial and industrial loans decreased $437 million to $49.2 billion due to loans refinanced off-balance-sheet through debt capital markets and revolving utilization remaining below historic levels. Total loans, net of unearned income, declined $602 million to $96.1 billion from December 31, 2024.
Regions declared a Q3 2025 common stock dividend of $0.265 per share, a $0.015 increase from the $0.25 paid in Q1 and Q2 2025. The company repurchased 9.4 million shares at an average price of $26.37 during Q3 under its $2.5 billion buyback authorization (extended through Q4 2025), leaving approximately $1.26 billion of remaining authorization. Subsequent to quarter-end, Regions purchased an additional 8.0 million shares for approximately $195 million through November 3, 2025.
On September 8, 2025, DBRS affirmed Regions' senior unsecured debt rating and revised its outlook to positive from stable, citing the company's strong deposit franchise and market share in the Southeastern region. Separately, the company assessed the One Big Beautiful Bill Act (enacted July 4, 2025) and determined its impact on consolidated financial statements would be immaterial. The Federal Government shutdown that began after quarter-end did not impact the September 2025 baseline economic forecast but introduced uncertainty into future forecasting, with the FOMC having cut the federal funds rate by 25 basis points in Q3 and another 25 basis points on October 29, 2025.
