Regions Financial (RF) investor relations material

Operating environment and market trends

• Commercial and consumer customers remain optimistic, with increased spending and strong deposit balances across 15-state footprint.

• Competitive pressures are rising, especially in the Southeast and Texas, prompting investments in technology, branch expansion, and banker recruitment.

• Data analytics and a strong non-interest-bearing deposit base help manage deposit costs amid competition and rate changes.

Financial outlook and performance

• Loan growth is moderating in the second half of the year, with continued strength in C&I and CRE, especially in investment-grade credits.

• Net interest income (NII) is expected to rise 2% quarter-over-quarter, with full-year guidance at 2.5%-4%.

• Non-interest revenue and expenses are tracking as expected, with fee growth at the lower end of the 3%-5% range due to slower capital markets and mortgage activity.

Deposit and margin management

• Non-interest-bearing deposits are growing faster than peers, providing stable funding; interest-bearing deposit costs are expected to remain flat in Q3.

• Margin is projected to exit the year in the 3.70s, with drivers including loan growth, asset repricing, and swap benefits.

• Tight credit spreads and a shift toward investment-grade lending have slightly reduced margin guidance.