Regions Financial (RF) Q3 2026 earnings summary

Executive summary

• Q3 net income available to common shareholders was $611M reported and $622M adjusted; diluted EPS was $0.71 reported and $0.73 adjusted. Earnings rose 11% YoY and diluted EPS rose 16%.

• NIM reached 3.68%, credit quality improved, and fee-based businesses contributed to results; adjusted ROTCE was 21.66%.

• Lower funding costs, higher NII and improving credit metrics supported earnings; loan growth was modest.

Financial highlights

• Total revenue was $1,973M reported and $1,988M adjusted; adjusted revenue rose 2.4% YoY on a taxable-equivalent basis.

• GAAP NII was $1,298M, up 1.6% QoQ and 3.3% YoY; FTE NII was $1,314M, up 1.8% QoQ and 3.5% YoY.

• Non-interest income was $675M reported and $690M adjusted; adjusted income rose 3% QoQ, led by Capital Markets and service charges.

• Non-interest expense was $1,118M, broadly stable QoQ; adjusted efficiency ratio improved to 55.8% from 56.9% a year earlier.

• Pre-tax, pre-provision income was $855M reported and $870M adjusted; adjusted PTPP rose 4.8% YoY.

Outlook and guidance

• FY26 NII is expected to rise 2.5%-4% versus FY25; average loans and deposits are each expected to grow at a low-single-digit rate.

• FY26 adjusted non-interest income is expected to rise 3%-5%, tracking toward the lower end; adjusted non-interest expense is expected to rise 1.5%-3.5%.

• FY26 adjusted positive operating leverage is expected; net charge-offs are forecast at 40-50 bps, trending toward the low end, and the effective tax rate guidance is 20.5%-21.5%.

• Q4 NII is expected to increase 1%-2% QoQ and NIM to reach ~3.70%, assuming a December Fed rate hike and stable long-term rates.

• Q4 Capital Markets revenue is expected at $90M-$105M; new fixed-rate asset repricing advantage is expected at 100-125 bps versus maturities.