Regions Financial (RF) investor relations material

Executive summary

• Reported Q2 2026 net income of $549M ($0.64 EPS); adjusted net income $583M ($0.68 EPS), up 13% year-over-year.

• Achieved record Wealth Management income, driven by digital and technology investments and strong core business momentum.

• Expanded capital markets capabilities through the acquisition of The Frazer Lanier Company.

• Loan growth strengthened, supported by new originations, expanded client relationships, and high-quality C&I lending.

• Credit performance improved with lower net charge-offs and reductions in criticized and non-performing loans.

Financial highlights

• Net income available to common shareholders was $549M ($583M adjusted); diluted EPS $0.64 ($0.68 adjusted).

• Net interest income rose 2% sequentially to $1,291M; net interest margin at 3.66%.

• Adjusted non-interest income increased 7% quarter-over-quarter, led by record wealth management and higher card/ATM fees.

• Adjusted non-interest expense increased 4-5% sequentially, mainly due to higher salaries and benefits.

• Efficiency ratio was 58.3% (56.9% adjusted); return on average tangible common equity was 20.18% (adjusted).

Outlook and guidance

• FY26 net interest income expected to grow 2.5%-4%; non-interest income 3%-5%, trending to the lower end.

• Adjusted non-interest expense expected to rise 1.5%-3.5% for 2026.

• Net interest margin expected to exit 2026 at ~3.7%.

• Full-year average loan and deposit growth projected in low single digits versus 2025.

• Net charge-offs expected between 40-50 basis points for 2026.