RF · Q2 2026 Earnings

Cautious

Regions Financial Corporation

Reported July 17, 2026

30-second summary

Regions printed $0.68 adjusted EPS ($0.64 GAAP) on a 3.66% NIM — one basis point below Q1's 3.67% and holding the low end of the "low 370s exit" trajectory, though the day-count tailwind has now reversed. Revenue of $1.907B grew +0.1% YoY and +1.8% QoQ; NII of $1,277M grew +2.3% QoQ, meeting the "approximately 2%" Q2 NII guide. Efficiency ratio came in at 58.3% (adjusted 56.9%). Capital markets printed $84M for a second consecutive quarter, keeping the +3-5% FY26 non-interest income guide on watch.

Headline numbers

EPS

Q2 FY2026

$0.68

+7.9% vs est.

Revenue

Q2 FY2026

$1.91B

+1.5% YoY

-2.2% vs est.

Key financials

Q2 FY2026

Metric	Q2 FY2026	Q2 FY2025	YoY	Q1 FY2026	QoQ
Revenue	$1.91B	—	+1.5%	$1.87B	+1.8%
EPS	$0.68	$0.60	+13.3%	$0.62	+9.7%

Guidance

Bank reaffirmed all full-year 2026 guidance; Q2 revenue missed consensus, but EPS beat driven by expense management.

Guidance is issued for the full year only, refreshed each quarter. Prior and new below are the same FY updated this quarter.

Actuals vs prior guidance

Metric	Period	Prior guide	Actual	Δ	Result
Net Interest Income Growth	Q2 FY2026	approximately 2%	1.5%	below the low end of qualitative expectation but directionally in-line	Met
Capital Markets Revenue	Q2 FY2026	$90 to $105 million quarterly, trending near lower end in Q2	$0.084 billion	in-line with lower end of range	Met

Reaffirmed unchanged this quarter: Net Interest Income Growth (2.5% to 4%), Net Interest Margin Exit Level (low 370s basis points), Average Loans Growth (low single digits vs 2025), Average Deposits Growth (below single digits vs prior year), Adjusted Non-Interest Income Growth (3% to 5% vs 2025), Adjusted Non-Interest Expense Growth (1.5% to 3.5%), Net Charge-Offs Ratio (40 to 50 basis points)

Segment performance

Q2 FY2026

Segment	Q2 FY2026	YoY
Commercial and Industrial	$0.697B	+5.0%
Commercial Real Estate Mortgage	$0.066B	+3.9%
Commercial Investor Real Estate	$0.143B	+14.6%
Residential Mortgage	$0.201B	-2.2%
Home Equity	$0.089B	-1.6%
Consumer Credit Card	$0.05B	+5.5%
Wealth Management Income	$0.15B	+12.8%
Capital Markets Income	$0.084B	+1.2%

Capital & returns

Q2 FY2026

Segment	Q2 FY2026	Q2 FY2025	YoY
Common Equity Tier 1 Ratio	10.7%	10.7%	—

Other KPIs

Q2 FY2026

Segment	Q2 FY2026	Q2 FY2025	YoY
Net Interest Margin (FTE)	3.66%	3.65%	—
Efficiency Ratio	58.3%	56.0%	—
Adjusted Efficiency Ratio	56.9%	—	—
Return on Average Assets	1.42%	1.43%	—
Return on Average Common Equity	12.73%	—	—
Total Deposits	$130.7bn	$130.9 billion	—
Allowance for Credit Losses to Loans	1.63%	—	—

Answers to last quarter's watch list

Whether Q2 NIM holds at or above 3.67% as the day-count tailwind reverses — Printed 3.66%, one basis point below Q1's 3.67%, so management held the line almost exactly as the day-count benefit rolled off. This is the cleanest positive data point in the print: the fixed asset repricing and deposit cost management appear to be genuinely offsetting spread pressure. The "low 370s exit" trajectory is still live but requires a Q3 print at or above 3.66% to remain credible. Status: Continue monitoring.

Deposit balance trajectory vs. the "below single digits vs prior year" FY guide — Total deposits at $130.7B declined -0.9% QoQ from $131.9B — the first sequential decline in this cycle. The prior FY26 average deposits guide of "below single digits vs prior year" is a wide band that technically accommodates modest declines, but the QoQ direction is compressing the loans/deposits ratio thesis and warrants explicit challenge. Status: Resolved negatively.

Capital markets Q2 print against the $90-105M low-end framing — Came in at $84M, matching Q1 exactly and below the low end for a second consecutive quarter. With real estate capital markets now soft for 5-6 quarters and no forward Q3 color offered, the +3-5% FY26 non-interest income guide is on a Q3 cut path unless a step-function rebound arrives. Wealth Management (+12.8% YoY) is doing more of the fee-revenue work than the FY guide originally assumed. Status: Resolved negatively.

Whether the effective tax rate withdrawal gets reinstated or stays absent — Not addressed on the print. The 20.5-21.5% range remains withdrawn with no replacement disclosure. Second consecutive quarter of absence implies management sees a plausibly wider band than they want to commit to. Status: Continue monitoring.

Q3 NIM exit trajectory against the "low 370s" guide — Q2 at 3.66% is on the trajectory but not accelerating; the "low 370s" exit requires roughly +4-8bps of margin expansion in H2. The path is narrower than a quarter ago. Status: Continue monitoring.

What to watch into next quarter

Whether Q3 NIM prints at or above 3.68% to preserve the "low 370s" Q4 exit — Q1 3.67% → Q2 3.66% is a decline, not an ascent. A Q3 print flat or lower would force a downgrade of the exit guide before the year is over.

Deposit balance stabilization — the $1.2B QoQ decline in Q2 is small in percentage terms. A second consecutive QoQ decline in Q3 combined with continued commercial loan growth would put loans/deposits above 76% and force paying up for funding, directly threatening the FY NII trajectory.

Capital markets Q3 print against the implicit $90-105M range — two consecutive quarters at $84M has already put the FY non-interest income guide (+3-5%) on watch. A third print below $90M would essentially force a mid-year cut. A print at $95M+ would signal the real estate rebound is finally arriving.

Adjusted efficiency ratio direction — deteriorated +30 bps from 56.6% in Q1 to 56.9% in Q2. The FY26 adjusted expense growth guide of +1.5-3.5% and non-interest income guide of +3-5% embed continued operating leverage. A Q3 print above 57% would signal expense growth is running ahead of revenue and put the operating leverage commitment at risk.

Whether the effective tax rate range is reinstated — second consecutive quarter without it. Continued absence has direct EPS modeling implications and represents an unresolved disclosure step-back from Q4-25.

Sources

Regions Financial Corporation Q2 2026 Earnings Press Release (Exhibit 99.2), filed with SEC on July 17, 2026. https://www.sec.gov/Archives/edgar/data/1281761/000128176126000050/rf-2026630xexhibitx992.htm

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