Regions Financial (RF) investor relations material

Executive summary

• Reported first-quarter 2026 net income of $539 million and diluted EPS of $0.62, with total revenue of $1.9 billion, up 5% year-over-year and pre-tax pre-provision income up 8% compared to 1Q25.

• Maintained top-quartile returns in peer group, with strong loan and deposit growth and improved credit metrics.

• Strategic investments in technology, including AI and digital platforms, are enhancing efficiency and customer experience.

• Continued investments in talent, technology, and strategic product offerings across all business lines.

Financial highlights

• Net interest margin was 3.67%; net interest income increased 4.6% year-over-year but declined 2.6% sequentially.

• Pre-tax pre-provision income was $805 million; efficiency ratio at 56.6%.

• Adjusted non-interest revenue declined 2% linked-quarter, with capital markets income up 5% and wealth management revenue up 9% year-over-year.

• Adjusted non-interest expense declined 4% sequentially, with stable salaries and benefits.

• Annualized net charge-offs/average loans at 0.54%; allowance for credit losses at 1.68%.

Outlook and guidance

• Full-year 2026 net interest income expected to grow 2.5%-4%, with net interest margin exiting in the low 3.70s.

• Adjusted non-interest income projected to grow 3%-5% versus 2025; adjusted non-interest expense expected to rise 1.5%-3.5%.

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

• CET1 ratio (inclusive of AOCI) to be managed around 9.25%-9.75%, with pro forma Basel III CET1 at ~10.4%.

• Average loans and deposits projected to rise low single digits year-over-year.