Regions Financial (RF) Q1 2026 earnings summary

Executive summary

• Reported net income available to common shareholders of $539 million ($0.62 per diluted share) for Q1 2026, up from $465 million ($0.51 per diluted share) in Q1 2025, with total revenue of $1.9 billion and pre-tax pre-provision income of $805 million.

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

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

• Continued investments in talent and strategic product offerings across all business lines, with progress in hiring and reskilling bankers.

Financial highlights

• Net interest margin was 3.67% in Q1 2026, up 15 basis points year-over-year but down 3bps sequentially; net interest income increased 4.6% year-over-year but declined 2.6% sequentially.

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

• Non-interest expense decreased 2.7% sequentially but increased 2.8% year-over-year; efficiency ratio was 56.6%.

• Allowance for credit losses ratio was 1.68%, with net charge-offs at 0.54% of average loans; non-performing loans to total loans at 0.71%.

• Total assets reached $160.7 billion, with loans at $97.9 billion and deposits at $131.9 billion as of March 31, 2026.

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% and adjusted non-interest expense to rise 1.5%-3.5%.

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

• CET1 ratio to be managed around 9.25%-9.75% operating range, with pro forma Basel III CET1 at ~10.4%.

• Internal forecasts anticipate 2026 GDP growth of 2.5%, inflation above FOMC's 2% target into 2027, and unemployment averaging 4.4%.