3Q 2026
Filed Oct 16, 2026Regions Reports Earnings of $611 Million and EPS of $0.71 in 3Q 2026
Reported earnings available to common shareholders increased 11 percent year over year and 11 percent sequentially, while total revenue rose 3.0% year over year and 3.5% sequentially. Net interest margin expanded, fee income reached records in Capital Markets and Treasury Management, expenses were controlled, and credit-quality measures improved.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net income, 3Q26GAAP | $631M | – | – |
| Net income available to common shareholders, 3Q26GAAP | 611M | 11% | 11 percent |
| Adjusted net income available to common shareholders, 3Q26non-GAAP | $622M | 7% | 11 percent |
| Diluted earnings per common share, 3Q26GAAP | $0.71 | 11% | 16 percent |
| Adjusted diluted earnings per common share, 3Q26non-GAAP | $0.73 | 7% | 16 percent |
| Net interest income, 3Q26GAAP | $1.30B | 1.6 % | 3.3 % |
| Taxable equivalent adjustment, 3Q26other | 16 | 14.3 % | 33.3 % |
| Net interest income, taxable equivalent basis, 3Q26other | $1.31B | 1.8 % | 3.5 % |
| Net interest margin (FTE), 3Q26other | 3.68 % | – | – |
| Service charges on deposit accounts, 3Q26GAAP | $171M | 2.4 % | 6.9 % |
| Card and ATM fees, 3Q26GAAP | 126 | — % | 3.3 % |
| Wealth management income, 3Q26GAAP | 146 | (2.7) % | 5.0 % |
| Capital markets income, 3Q26GAAP | 107 | 27.4 % | 2.9 % |
| Mortgage income, 3Q26GAAP | 32 | (3.0) % | (15.8) % |
| Commercial credit fee income, 3Q26GAAP | 35 | 25.0 % | 25.0 % |
| BOLI income, 3Q26GAAP | 32 | 33.3 % | 28.0 % |
| Market value adjustments on employee benefit assets, 3Q26GAAP | (4) | (116.7) % | (133.3) % |
| Securities gains (losses), net, 3Q26GAAP | (15) | 63.4 % | 44.4 % |
| Other miscellaneous income, 3Q26GAAP | 45 | 28.6 % | (22.4) % |
| Non-interest income, 3Q26GAAP | $675M | 7.1 % | 2.4 % |
| Adjusted non-interest income, 3Q26non-GAAP | $690M | 3.0 % | 0.9 % |
| Total revenue, 3Q26GAAP | $1.97B | 3.5 % | 3.0 % |
| Adjusted total revenue, 3Q26non-GAAP | $1.99B | 2.1 % | 2.4 % |
| Non-interest expense, 3Q26GAAP | $1.12B | (0.3) % | 1.4 % |
| Adjusted non-interest expense, 3Q26non-GAAP | $1.12B | 0.2 % | 0.6 % |
| Salaries and employee benefits, 3Q26GAAP | $694M | (0.4) % | 3.4 % |
| Equipment and software expense, 3Q26GAAP | 113 | 5.6 % | 6.6 % |
| Net occupancy expense, 3Q26GAAP | 74 | 1.4 % | 2.8 % |
| Outside services, 3Q26GAAP | 45 | (4.3) % | 7.1 % |
| Marketing, 3Q26GAAP | 29 | 3.6 % | 3.6 % |
| Professional, legal and regulatory expenses, 3Q26GAAP | 35 | 25.0 % | 16.7 % |
| Credit/checkcard expenses, 3Q26GAAP | 18 | 12.5 % | 20.0 % |
| FDIC insurance assessments, 3Q26GAAP | 16 | (5.9) % | 6.7 % |
| Visa class B shares expense, 3Q26GAAP | 4 | 100.0 % | (50.0) % |
| Operational losses, 3Q26GAAP | 7 | (12.5) % | (61.1) % |
| Branch consolidation, property and equipment charges, 3Q26GAAP | — | (100.0) % | 100.0 % |
| Other miscellaneous expenses, 3Q26GAAP | 83 | (10.8) % | (19.4) % |
| Efficiency ratio, 3Q26GAAP | 56.2 | – | – |
| Adjusted efficiency ratio, 3Q26non-GAAP | 55.8 | – | – |
| Average loans, net of unearned income, 3Q26other | $99.18B | 0.5 % | 2.6% |
| Average Business Lending, 3Q26other | 67,262 | 0.9 % | 5.3% |
| Average Consumer Lending, 3Q26other | 31,921 | (0.5) % | (2.6)% |
| Ending total loans, net of unearned income, 9/30/2026other | $99.83B | 0.6 % | 3.9% |
| Average deposits, 3Q26other | $129.1B | (1.2)% | (0.3)% |
| Average interest-bearing deposits, 3Q26other | $89.36B | (1.7)% | (0.7)% |
| Average non-interest-bearing deposits, 3Q26other | 39,776 | 0.1% | 0.6% |
| End of period total deposits, 9/30/2026other | $129.5B | (0.9)% | (0.6)% |
| Allowance for credit losses at period end, 9/30/2026GAAP | $1.61B | – | – |
| Allowance for credit losses to loans, net, 9/30/2026other | 1.61% | – | – |
| Provision for credit losses, 3Q26GAAP | $68 | – | – |
| Net loans charged-off, 3Q26GAAP | $72 | – | – |
| Net loans charged-off as a % of average loans, annualized, 3Q26other | 0.29% | – | – |
| Non-performing loans, excluding loans held for sale/Loans, net, 9/30/2026other | 0.59% | – | – |
| Business criticized loans to total business loans, 9/30/2026other | 4.71% | – | – |
| Allowance for credit losses to non-performing loans, excluding loans held for sale, 9/30/2026other | 275% | – | – |
| Common Equity Tier 1 ratio, 9/30/2026other | 10.8% | – | – |
| Tier 1 capital ratio, 9/30/2026other | 11.9% | – | – |
| Return on average assets, 3Q26GAAP | 1.55 % | – | – |
| Return on average common equity, 3Q26GAAP | 14.16 | – | – |
| Return on average tangible common equity, 3Q26non-GAAP | 21.27 | – | – |
| Adjusted return on average tangible common equity, 3Q26non-GAAP | 21.66 | – | – |
| Effective Tax Rate, 3Q26GAAP | 19.8 | – | – |
Amounts quoted below without a unit are in millions, as in the filing’s tables. Per-share figures are as printed.
Capital returns
- Repurchased approximately 3 million shares of common stock for a total of $95 million through open-market purchases during the third quarter.
- Declared $255 million in dividends to common shareholders during the third quarter.
What drove it
- Net interest income increased primarily due to fixed-rate asset turnover, average loan growth, higher hedging income, credit interest recoveries, one additional day in the quarter and continued prudent management of deposit costs.
- Record Capital Markets income increased 27 percent sequentially, driven by higher mergers and acquisitions advisory revenue, securities underwriting and placement fees, commercial swap income and syndication revenue.
- Service charges increased 2 percent sequentially, reflecting record Treasury Management income, one additional business day and seasonally higher consumer-related activity.
- Average business loans increased 0.9 % sequentially, led by commercial and industrial and investor real estate lending.
- Credit quality improved, with annualized net charge-offs decreasing to 0.29%, criticized business loans declining to 4.71%, and non-performing loans declining to 0.59% of loans.
Concerns
- Average deposits declined $ 1,551 sequentially and end-of-period total deposits declined $ (1,200), with the company citing large commercial clients reallocating interest-bearing balances to off-balance-sheet products.
- Mortgage income declined (15.8) % year over year and (3.0) % sequentially.
- Professional, legal and regulatory expenses increased 25.0 % sequentially, driven primarily by higher legal settlement costs.
- Equipment and software expense increased 5.6 % sequentially, reflecting software as a service charges associated with technology and infrastructure investments.
- The company continues to monitor economic uncertainty and portfolios with heightened risk or interest rate sensitivity.
What to watch
- Whether business-loan growth, including commercial and industrial and investor real estate lending, continues while consumer lending remains lower.
- Deposit trends, including the effect of commercial-client reallocations into off-balance-sheet investment products.
- The sustainability of the 3.68 % net interest margin amid non-deposit funding costs and interest-rate changes.
- Capital Markets and Treasury Management income following record third-quarter results.
- Credit-quality performance, allowance coverage and the effect of macroeconomic uncertainty and higher interest rates.
Balance sheet and cash flow
- Total available liquidity as of Sept. 30, 2026, was approximately $64 billion.
- Available liquidity sources were sufficient to cover uninsured deposits at a ratio of approximately 170 percent as of quarter-end, excluding intercompany and secured deposits.
- Loans, net of unearned income, to total deposits was 77.1% at 9/30/2026, compared with 75.9% at 6/30/2026 and 73.8% at 9/30/2025.
- Common book value per share was $19.38 at 9/30/2026, compared with $20.48 at 6/30/2026 and $19.98 at 9/30/2025.
- Tangible common book value per share was $12.65 at 9/30/2026, compared with $13.78 at 6/30/2026 and $13.49 at 9/30/2025.
Analysis
Regions delivered a stronger third quarter, reporting earnings available to common shareholders of $611 million and diluted EPS of $0.71. Reported and adjusted earnings each increased 11 percent from the third quarter of 2025, while reported and adjusted diluted EPS increased 16 percent. Sequentially, net income available to common shareholders increased from 549 to 611 and adjusted net income available to common shareholders increased from $ 583 to $ 622. The improvement was accompanied by higher reported returns, including return on average assets of 1.55 % and reported return on average tangible common equity of 21.27.
Revenue momentum was broad but led by net interest income and selected fee businesses. Total revenue was $ 1,973, up 3.5 % sequentially and 3.0 % year over year, while adjusted total revenue was $ 1,988. Net interest income was $ 1,298, supported by fixed-rate asset turnover, average loan growth, higher hedging income, credit interest recoveries, one additional day and deposit-cost management. Net interest margin increased to 3.68 % from 3.66 %. Non-interest income rose 7.1 % sequentially to $ 675, with Capital Markets income up 27.4 % to 107 and commercial credit fee income up 25.0 % to 35. The release identified record Capital Markets income and another record quarter in Treasury Management income.
Loan growth remained concentrated in business lending. Average total loans were $ 99,183, up 0.5 % sequentially and 2.6% year over year, while ending loans were $ 99,827, up 0.6 % sequentially and 3.9% year over year. Average Business Lending increased 0.9 %, including commercial and industrial growth of 0.8 % and investor real estate growth of 2.1 %. Average Consumer Lending declined 0.5 %. Deposits moderated, with average deposits down (1.2)% sequentially and end-of-period deposits down (0.9)%. Management attributed the corporate-deposit decline primarily to a limited number of large commercial clients reallocating interest-bearing balances to off-balance-sheet products.
Expense discipline supported operating leverage. Reported non-interest expense was $ 1,118, down (0.3) % sequentially, and adjusted non-interest expense was $ 1,118, up 0.2 %. The reported efficiency ratio improved to 56.2 from 58.3 and the adjusted efficiency ratio improved to 55.8 from 56.9. Costs increased in equipment and software and professional, legal and regulatory expenses, but these were more than offset at the reported expense level by lower other miscellaneous expenses and lower salaries and employee benefits.
Credit trends improved during the quarter. Net loans charged-off were $72, or 0.29% of average loans annualized, compared with $102 and 0.42% in the prior quarter. Non-performing loans excluding loans held for sale declined to 0.59% of net loans from 0.67%, while business criticized loans to total business loans declined to 4.71% from 5.01%. The allowance for credit losses was $1,609 and the allowance ratio was 1.61%, while allowance coverage of non-performing loans increased to 275%. Capital remained above current regulatory requirements, with estimated CET1 of 10.8%, and the company returned capital through $95 million of share repurchases and $255 million of common dividends. The release provided no forward earnings outlook or financial guidance.
Management, verbatim
At Regions Bank, we're seeing the benefits of the investments we're making in talent, technology and strategic growth.
John Turner, Chairman, President and CEO of Regions Financial Corp.
Strong credit quality, continued momentum in fee-based businesses, and economically vibrant markets throughout our footprint all contributed to our third quarter results.
John Turner, Chairman, President and CEO of Regions Financial Corp.
Not in the filing
stated, not guessed- Forward financial guidance
- Previous-release outlook for comparison
- Operating cash flow
- Free cash flow
- Cash balance
- Debt balance
- Gross margin
- Operating income
- Revenue by operating segment
- Prior-year values for net income available to common shareholders, diluted EPS, adjusted net income available to common shareholders and adjusted diluted EPS
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.