Regions Financial (RF) Q2 2026 earnings summary

Executive summary

• Reported Q2 2026 net income of $549M ($0.64 EPS); adjusted net income $583M ($0.68 EPS), up 13% year-over-year, driven by higher net interest income and lower provision for credit losses.

• Performance supported by disciplined execution, investments in digital and technology, and strong core business momentum, including record Wealth Management results.

• Benefited from healthy business activity, stable consumer financial conditions, and successful technology modernization.

• 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 interest income rose 2% sequentially to $1.3B, with net interest margin at 3.66%.

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

• Non-interest expenses increased 4-5% sequentially, mainly due to higher salaries and benefits.

• Average loans increased ~2% during the quarter; ending loans up 1%; average business loans up 4% sequentially.

• Average deposits grew modestly; non-interest-bearing deposits up over 1%, with deposit mix stable at 31%.

Outlook and guidance

• Full-year 2026 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.