Regions Financial (RF) investor relations material

Customer and market trends

• Commercial sentiment remained strong through the year, with higher line commitments, loan pipelines and customer readiness to put loans on balance sheet.

• Consumer deposits per household remained stable at a $5,200 average and $900 median; debit and credit card spending grew strongly in Q3.

• The footprint’s growth rates were described as roughly 1 percentage point above national rates; 70% of deposits came from customers with relationships exceeding 10 years.

• Small business account growth was the strongest in over 10 years; lending production was up almost 50%, while mass affluent customers grew almost 10% YoY.

Branch and customer strategy

• Plans call for 135–150 branch openings and a similar number of closures, leaving the total count relatively flat; 1,000 branches will be renovated.

• Branch optimization targets faster-growing neighborhoods and is expected to expand household coverage by 5%–6%; a successful branch typically has a three-year payback.

• Market-entry strategies will vary by location and business line; San Antonio used a commercial-first approach before adding retail and wealth opportunities.

• Customer acquisition rates YTD were 120 bps for small business and 40 bps for consumer, both above peers based on third-party data.

• Branch teams use Copilot, AI action planning and training simulations to support customer conversations and productivity.

Net interest income and deposits

• Fixed-rate assets of about $3B reprice each quarter, providing an estimated 100 bps, plus or minus depending on rates, of NII benefit; the tailwind continues into 2027 at a declining rate.

• Q4 margin is expected to be around 3.70%, with some NII tailwinds expected to persist into 2027.

• About 30% of customers’ deposits are non-interest-bearing; beta projections are built from historical behavior across three customer segments.

• A relatively low loan-to-deposit ratio and lower debt outstanding provide funding flexibility if loan growth exceeds deposit growth.

• Consumer average balances remained stable near $5,200; deposit pricing is targeted to funding needs, with continued focus on low- or no-cost deposits.