RF-PC · Regions Financial Corporation

Regions delivered strong Q1 2026 results, with $539M net income available to common shareholders (+16% YoY) and $0.62 diluted EPS (+22% YoY), beating prior quarters and exceeding recent analyst misses. Total revenue rose 5% YoY to $1.873B, though declined 2.5% QoQ due to lower net interest income (down 3% QoQ to $1.248B), driven by two fewer days in the quarter, loan spread compression from high-quality asset growth, and non-recurring items that did not repeat from Q4 2025. Non-interest income dipped 2% QoQ to $625M, offsetting gains in capital markets (+5%) and bank-owned life insurance (+30%) with declines in card/ATM fees (-5%) and other miscellaneous income (-29%). Expense discipline held firm: non-interest expense fell 3% QoQ to $1.068B, yielding an efficiency ratio of 56.6%, the lowest since Q2 2025. Loan growth accelerated meaningfully—ending loans up 2.4% YoY to $97.9B—with C&I lending leading across power & utilities, manufacturing, and healthcare; ~80% of new originations were to existing clients, and nearly two-thirds were investment-grade credits. Asset quality strengthened further: NPL ratio fell to 0.71%, business criticized loans dropped to 5.15%, and ACL coverage of NPLs remained robust at 238%. Management highlighted sustained client optimism, record Treasury Management fees, and progress on core transformation—including commercial lending system deployment and small business digital origination—while guiding for full-year 2026 NII growth of 2.5–4%, adjusted NIE up 1.5–3.5%, and NCOs of 40–50 bps. Capital flexibility remains strong, with CET1 at 10.7% (9.4% inclusive of AOCI), supporting continued shareholder returns and strategic investments.