UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒	Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
	For the quarterly period ended	June 30, 2026

or

☐	Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
	For the transition period from	to

Commission File Number: 001-34034

Regions Financial Corporation

(Exact name of registrant as specified in its charter)

Delaware	63-0589368
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
1900 Fifth Avenue North
Birmingham
Alabama	35203
(Address of principal executive offices)	(Zip Code)

(800) 734-4667

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $.01 par value	RF	New York Stock Exchange
Depositary Shares, each representing a 1/40th Interest in a Share of
5.700% Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series C	RF PRC	New York Stock Exchange
Depositary Shares, each representing a 1/40th Interest in a Share of
4.45% Non-Cumulative Perpetual Preferred Stock, Series E	RF PRE	New York Stock Exchange
Depositary Shares, each representing a 1/40th Interest in a Share of
Non-Cumulative Perpetual Preferred Stock, Series F	RF PRF	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.   ☒  Yes    ☐ No

1

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).   ☒  Yes  ☐  No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. ☒ Large accelerated filer ☐ Accelerated filer ☐ Non-accelerated filer ☐ Smaller reporting company  ☐  Emerging growth company  

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    ☐  Yes   ☒  No

As of August 5, 2026 there were 851,929,506 shares of the issuer's common stock, par value $.01 per share, outstanding.

2

REGIONS FINANCIAL CORPORATION

FORM 10-Q

INDEX

		Page
Forward-Looking Statements
Part I. Financial Information
Item 1.	Financial Statements (Unaudited)	9
	Consolidated Balance Sheets	9
	Consolidated Statements of Income	10
	Consolidated Statements of Comprehensive Income	11
	Consolidated Statements of Changes in Shareholders' Equity	12
	Consolidated Statements of Cash Flows	13
	Notes to Consolidated Financial Statements	14
	Note 1 "Basis of Presentation"	14
	Note 2 "Variable Interest Entities"	14
	Note 3 "Debt Securities"	15
	Note 4 "Loans and the Allowance for Credit Losses"	17
	Note 5 "Servicing of Financial Assets"	29
	Note 6 "Shareholders' Equity and Accumulated Other Comprehensive Income (Loss)"	31
	Note 7 "Earnings per Common Share"	36
	Note 8 "Pension and Other Postretirement Benefits"	36
	Note 9 "Derivative Financial Instruments and Hedging Activities"	37
	Note 10 "Fair Value Measurements"	41
	Note 11 "Business Segment Information"	43
	Note 12 "Commitments, Contingencies and Guarantees"	46
	Note 13 "Recent Accounting Pronouncements"	48
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	50
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	76
Item 4.	Controls and Procedures	76
Part II. Other Information
Item 1.	Legal Proceedings	77
Item 1A.	Risk Factors	77
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	77
Item 5.	Other Information	77
Item 6.	Exhibits	78
Signatures		79

3

Glossary of Defined Terms

Agencies - collectively, FNMA and GNMA.

ACL - Allowance for credit losses.

ALCO - Asset/Liability Management Committee.

Allowance - Allowance for credit losses.

AOCI - Accumulated other comprehensive income.

ASU - Accounting Standards Update.

ATM - Automated teller machine.

Bank - Regions Bank.

Basel III - Basel Committee's 2010 Regulatory Capital Framework (Third Accord).

Basel III Rules - Final capital rules adopting the Basel III capital framework approved by U.S. federal regulators in 2013.

Board - The Company’s Board of Directors.

BOLI - Bank-owned life insurance.

CCAR - Comprehensive Capital Analysis and Review.

CET1 - Common Equity Tier 1.

CFPB - Consumer Financial Protection Bureau.

CME Term SOFR - Chicago Mercantile Exchange published term Secured Overnight Financing Rate.

Company - Regions Financial Corporation and its subsidiaries.

CPI - Consumer price index.

CPR - Constant (or Conditional) prepayment rate.

DPD - Days past due.

DUS - Fannie Mae Delegated Underwriting & Servicing.

EVE - Economic Value of Equity.

Exchange Act - Securities Exchange Act of 1934.

FDIC - The Federal Deposit Insurance Corporation.

Federal Reserve - The Board of Governors of the Federal Reserve System.

FHA - Federal Housing Administration.

FHLB - Federal Home Loan Bank.

FICO - Fair Isaac Corporation.

FICO scores - Personal credit scores based on the model introduced by the Fair Isaac Corporation.

FOMC - Federal Open Market Committee.

GAAP - Generally Accepted Accounting Principles in the US.

GDP - Gross domestic product.

GNMA - Government National Mortgage Association.

HPI - Housing price index.

IRS - Internal Revenue Service.

IRE - Investor Real Estate.

ISDA - International Swaps and Derivatives Association.

LROC - Liquidity Risk Oversight Committee.

LTV - Loan to value.

MBS - Mortgage-backed securities.

MSAs - Metropolitan Statistical Areas.

4

MSR - Mortgage servicing right.

OAS - Option-adjusted spread.

OCI - Other comprehensive income.

PCD – Purchased credit deteriorated.

R&S - Reasonable and supportable.

REITs - Real estate investment trust.

SCB - Stress Capital Buffer.

SEC - U.S. Securities and Exchange Commission.

SERP - Supplemental Executive Retirement Plan.

SOFR - Secured Overnight Financing Rate.

U.S. - United States.

U.S. Treasury - The United States Department of the Treasury.

UTB - Unrecognized tax benefits.

VIE - Variable interest entity.

Visa - The Visa, U.S.A. Inc. card association or its affiliates, collectively.

5

PART I

Cautionary Note Regarding Forward-Looking Statements and Risk Factor Summary

This Quarterly Report on Form 10-Q, other periodic reports filed by Regions Financial Corporation under the Securities Exchange Act of 1934, as amended, and any other written or oral statements made by us or on our behalf to analysts, investors, the media and others, may include forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. The terms “Regions,” the “Company,” “we,” “us” and “our” as used herein mean collectively Regions Financial Corporation, a Delaware corporation, together with its subsidiaries when or where appropriate. The words “future,” “anticipates,” “assumes,” “intends,” “plans,” “seeks,” “believes,” “predicts,” “potential,” “objectives,” “estimates,” “expects,” “targets,” “projects,” “outlook,” “forecast,” “would,” “will,” “may,” “might,” “could,” “should,” “can,” and similar terms and expressions, and graphics often signify forward-looking statements. Forward-looking statements are subject to the risk that the actual effects may differ, possibly materially, from what is reflected in those forward-looking statements due to factors and future developments that are uncertain, unpredictable and in many cases beyond our control. Forward-looking statements are not based on historical information, but rather are related to future operations, strategies, financial results or other developments. Forward-looking statements are based on management’s current expectations as well as certain assumptions and estimates made by, and information available to, management at the time the statements are made. Those statements are based on general assumptions and are subject to various risks, and because they also relate to the future, they are likewise subject to inherent uncertainties and other factors that may cause actual results to differ materially from the views, beliefs and projections expressed in such statements. Therefore, we caution you against relying on any of these forward-looking statements. We assume no obligation and do not intend to update or revise any forward-looking statements that are made from time to time, either as a result of future developments, new information or otherwise, except as may be required by law. These risks, uncertainties, and other factors include, but are not limited to, those described below:

•Our businesses have been, and may continue to be, adversely affected by conditions in the financial markets and economic conditions generally.

•Fluctuations in market interest rates, including the level and shape of the yield curve, may adversely affect our performance.

•If we experience greater credit losses in our loan portfolios than anticipated, our earnings may be materially adversely affected.

•Any future reductions in our credit ratings may increase our funding costs and place limitations on business activities.

•Changes in the soundness of other financial institutions could adversely affect us.

•We may suffer losses if the value of collateral declines in stressed market conditions.

•Ineffective liquidity management could adversely affect our financial results and condition.

•Loss of deposits or a change in deposit mix could increase our funding costs.

•We rely on the mortgage secondary market to manage various risks.

•We are at risk of a variety of systems failures or errors and cyber-attacks or other similar incidents that could adversely affect customer experience and our business and financial performance.

•We are subject to complex and evolving laws, regulations, rules, standards and contractual obligations regarding privacy and cybersecurity, which could increase the cost of doing business, compliance risks and potential liability.

•We will continually encounter technological change and must effectively anticipate, develop and implement new technology.

•The development and use of AI presents risks and challenges that may adversely impact our business.

•Industry competition, including competition from decentralized finance platforms, cryptocurrencies and blockchain technologies could disrupt our business model and adversely affect our revenues, market share or liquidity.

•Our operations are concentrated primarily in the South, Midwest and Texas, and adverse changes in the economic conditions in this region can adversely affect our financial results and condition.

•Weakness in the residential real estate markets could adversely affect our performance.

•Weakness in the commercial real estate markets could adversely affect our performance.

•Risks associated with home equity products where we are in a second lien position could adversely affect our performance.

•Weakness in commodity businesses could adversely affect our performance.

•An outbreak or escalation of hostilities between countries or within a country or region could have a material adverse effect on the U.S. economy and on our businesses.

•We are subject to a variety of operational risks, including the risk of fraud or theft by internal or external parties, which may adversely affect our business and results of operations.

6

•We rely on other companies to provide key components of our business infrastructure.

•We depend on the accuracy and completeness of information about clients and counterparties.

•We are exposed to risk of environmental liability when we take title to property.

•We can be negatively affected if we fail to identify and address operational risks associated with the introduction of or changes to products, services and delivery platforms.

•Enhanced regulatory and other standards for the oversight of vendors and other service providers can result in higher costs and other potential exposures.

•We are, and may in the future be, subject to claims and litigation calling into question our right to use the intellectual property underlying certain technology in our business.

•Weather-related events, pandemics and other natural or man-made disasters could cause a disruption in our operations or lead to other consequences that could adversely impact our financial results and condition. These impacts could be intensified by climate change. Heightening focus on climate change may also carry transition risks that could negatively impact our results of operations and financial condition.

•We are subject to sociopolitical risks that could adversely affect our business, reputation and the trading price of our common stock.

•Damage to our reputation could significantly harm our businesses.

•We are, and may in the future be, subject to litigation, investigations and governmental proceedings that may result in liabilities adversely affecting our financial condition, business or results of operations or in reputational harm.

•We are subject to extensive governmental regulation, which could have an adverse impact on our operations and our business model.

•We are subject to a variety of risks in connection with any sale of loans we may conduct.

•We may be subject to more stringent capital and liquidity requirements.

•Rulemaking changes and regulatory initiatives implemented by the CFPB may result in higher regulatory and compliance costs that may adversely affect our results of operations.

•We are subject to numerous laws designed to protect consumers, including the Community Reinvestment Act and fair lending laws, and a failure to comply with these laws could lead to a wide variety of penalties and other sanctions.

•We may not be able to complete future acquisitions, may not be successful in realizing the benefits of any future acquisitions that are completed or may choose not to pursue acquisition opportunities we might find beneficial.

•Increases in FDIC insurance assessments may adversely affect our earnings.

•Unfavorable results from ongoing stress analyses may adversely affect our ability to retain customers or compete for new business opportunities.

•We are a holding company and depend on our subsidiaries for dividends, distributions and other payments.

•We may not pay dividends on shares of our capital stock.

•Anti-takeover and banking laws and certain agreements and charter provisions may adversely affect share value.

•Our amended and restated by-laws designate (i) the Court of Chancery of the State of Delaware as the sole and exclusive forum for certain types of actions and proceedings that may be initiated by our shareholders and (ii) the federal district courts of the United States as the sole and exclusive forum for any action asserting a cause of action arising under the Securities Act, which could limit our shareholders’ ability to obtain a favorable judicial forum for disputes with our company or our company’s directors, officers or other employees.

•We face substantial legal and operational risks in our safeguarding and other processing of personal information.

•Differences in regulation can affect our ability to compete effectively.

•Our businesses may be adversely affected if we are unable to hire and retain qualified employees.

•Our operations rely on our ability, and the ability of key external parties, to maintain appropriately staffed workforces, and on the competence, trustworthiness, health and safety of employees.

•Our reported financial results depend on management’s selection of accounting methods and certain assumptions and estimates.

•If the models that we use in our business perform poorly or provide inadequate information, our business or results of operations may be adversely affected.

7

•Changes in our accounting policies or in accounting standards could materially affect how we report our financial results and condition.

You should not place undue reliance on any forward-looking statements, which speak only as of the date made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible to predict all of them.

See also the reports filed with the SEC, including the discussion under the “Risk Factors” section of Regions’ Annual Report on Form 10-K for the year ended December 31, 2025, and in Regions’ subsequent filings with the SEC.

8

PART I

FINANCIAL INFORMATION

Item 1. Financial Statements

REGIONS FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS (Unaudited)

	June 30, 2026		December 31, 2025
	(In millions, except per share data)
Assets
Cash and due from banks	$	3,177	$	3,112
Interest-bearing deposits in other banks	6,749		7,795
Debt securities held to maturity (estimated fair value of $5,180 and $5,584, respectively)	5,271		5,606
Debt securities available for sale (amortized cost of $28,167 and $28,134, respectively)	27,388		27,560
Loans held for sale (includes $300 and $290 measured at fair value, respectively)	591		511
Loans, net of unearned income	99,200		95,637
Allowance for loan losses	(1,489)		(1,556)
Net loans	97,711		94,081
Other earning assets	1,574		1,703
Premises, equipment and software, net	1,704		1,659
Interest receivable	495		571
Goodwill	5,733		5,733
Residential mortgage servicing rights at fair value	958		970
Other identifiable intangible assets, net	126		140
Other assets	9,822		9,373
Total assets	$	161,299	$	158,814
Liabilities and Equity
Deposits:
Non-interest-bearing	$	40,538	$	39,530
Interest-bearing	90,172		91,598
Total deposits	130,710		131,128
Borrowed funds:
Short-term borrowings:
Federal funds purchased and securities sold under agreements to repurchase	200		—
Other short-term borrowings	2,800		750
Short-term borrowings	3,000		750
Long-term borrowings	4,628		4,134
Total borrowed funds	7,628		4,884
Other liabilities	4,050		3,699
Total liabilities	142,388		139,711
Equity:
Preferred stock, authorized 10 million shares, par value $1.00 per share:
Non-cumulative perpetual, including related surplus, net of issuance costs; issued—1,400,000 shares	1,369		1,369
Common stock, authorized 3 billion shares, par value $0.01 per share:
Issued including treasury stock—893,757,394 and 908,045,826 shares, respectively	9		9
Additional paid-in capital	9,915		10,366
Retained earnings	10,840		10,205
Treasury stock, at cost— 41,032,676 shares	(1,371)		(1,371)
Accumulated other comprehensive income (loss), net	(1,922)		(1,535)
Total shareholders’ equity	18,840		19,043
Noncontrolling interest	71		60
Total equity	18,911		19,103
Total liabilities and equity	$	161,299	$	158,814

See notes to consolidated financial statements.

9

REGIONS FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

	Three Months Ended June 30				Six Months Ended June 30
	2026		2025		2026		2025
	(In millions, except per share data)
Interest income on:
Loans, including fees	$	1,351	$	1,377	$	2,664	$	2,719
Debt securities	305		286		603		552
Loans held for sale	8		9		16		17
Other earning assets	84		112		167		221
Total interest income	1,748		1,784		3,450		3,509
Interest expense on:
Deposits	385		447		770		889
Short-term borrowings	34		1		51		5
Long-term borrowings	52		77		104		162
Total interest expense	471		525		925		1,056
Net interest income	1,277		1,259		2,525		2,453
Provision for credit losses	68		126		159		250
Net interest income after provision for credit losses	1,209		1,133		2,366		2,203
Non-interest income:
Service charges on deposit accounts	167		151		330		312
Card and ATM fees	126		125		243		242
Investment management and trust fee income	97		90		189		176
Capital markets income	84		83		168		163
Mortgage income	33		48		65		88
Securities gains (losses), net	(41)		(1)		(44)		(26)
Other	164		150		304		281
Total non-interest income	630		646		1,255		1,236
Non-interest expense:
Salaries and employee benefits	697		658		1,356		1,283
Equipment and software expense	107		104		215		203
Net occupancy expense	73		72		145		142
Other	244		239		473		484
Total non-interest expense	1,121		1,073		2,189		2,112
Income before income taxes	718		706		1,432		1,327
Income tax expense	148		143		303		274
Net income	$	570	$	563	$	1,129	$	1,053
Net income available to common shareholders	$	549	$	534	$	1,088	$	999
Weighted-average number of shares outstanding:
Basic	854		898		858		902
Diluted	857		900		862		905
Earnings per common share:
Basic	$	0.64	$	0.59	$	1.27	$	1.11
Diluted	0.64		0.59		1.26		1.10

See notes to consolidated financial statements.

10

REGIONS FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)

	Three Months Ended June 30
	2026		2025
	(In millions)
Net income	$	570	$	563
Other comprehensive income (loss), net of tax:
Unrealized losses on securities transferred to held to maturity:
Unrealized losses on securities transferred from available for sale during the period (net of zero and ($19) tax effect, respectively)	—		(55)
Less: reclassification adjustments for amortization of unrealized losses on securities transferred to held to maturity (net of ($7) and ($11) tax effect, respectively)	(19)		(32)
Net change in unrealized losses on securities transferred to held to maturity, net of tax	19		(23)
Unrealized gains (losses) on securities available for sale:
Unrealized losses on securities transferred to held to maturity during the period (net of zero and $19 tax effect, respectively)	—		55
Unrealized holding gains (losses) arising during the period (net of ($24) and $43 tax effect, respectively)	(70)		127
Less: reclassification adjustments for securities gains (losses) realized in net income (net of ($10) and zero tax effect, respectively)	(31)		(1)
Net change in unrealized gains (losses) on securities available for sale, net of tax	(39)		183
Unrealized gains (losses) on derivative instruments designated as cash flow hedges:
Unrealized holding gains (losses) on derivative instruments arising during the period (net of ($72) and $36 tax effect, respectively)	(212)		106
Less: reclassification adjustments for gains (losses) on derivative instruments realized in net income (net of ($9) and ($15) tax effect, respectively)	(25)		(45)
Net change in unrealized gains (losses) on derivative instruments, net of tax	(187)		151
Defined benefit pension plans and other post employment benefits:
Net actuarial gains (losses) arising during the period (net of zero and zero tax effect, respectively)	—		—
Less: reclassification adjustments for amortization of actuarial loss and settlements realized in net income (net of ($2) and ($1) tax effect, respectively)	(3)		(5)
Net change from defined benefit pension plans and other post employment benefits, net of tax	3		5
Other comprehensive income (loss), net of tax	(204)		316
Comprehensive income	$	366	$	879
	Six Months Ended June 30
	2026		2025
	(In millions)
Net income	$	1,129	$	1,053
Other comprehensive income (loss), net of tax:
Unrealized losses on securities transferred to held to maturity:
Unrealized losses on securities transferred from available for sale during the period (net of zero and ($57) tax effect, respectively)	—		(170)
Less: reclassification adjustments for amortization of unrealized losses on securities transferred to held to maturity (net of ($13) and ($18) tax effect, respectively)	(37)		(47)
Net change in unrealized losses on securities transferred to held to maturity, net of tax	37		(123)
Unrealized gains (losses) on securities available for sale:
Unrealized losses on securities transferred to held to maturity during the period (net of zero and $57 tax effect, respectively)	—		170
Unrealized holding gains (losses) arising during the period (net of ($63) and $156 tax effect, respectively)	(186)		472
Less: reclassification adjustments for securities gains (losses) realized in net income (net of ($11) and ($6) respectively)	(33)		(20)
Net change in unrealized gains (losses) on securities available for sale, net of tax	(153)		662
Unrealized gains (losses) on derivative instruments designated as cash flow hedges:
Unrealized holding gains (losses) on derivative instruments arising during the period (net of ($112) and $105 tax effect, respectively)	(330)		309
Less: reclassification adjustments for gains (losses) on derivative instruments realized in net income (net of ($18) and ($32) tax effect, respectively)	(52)		(95)
Net change in unrealized gains (losses) on derivative instruments, net of tax	(278)		404
Defined benefit pension plans and other post employment benefits:
Net actuarial gains (losses) arising during the period (net of zero and zero tax effect, respectively)	—		—
Less: reclassification adjustments for amortization of actuarial loss and settlements realized in net income (net of ($3) and ($3) tax effect, respectively)	(7)		(9)
Net change from defined benefit pension plans and other post employment benefits, net of tax	7		9
Other comprehensive income (loss), net of tax	(387)		952
Comprehensive income	$	742	$	2,005

See notes to consolidated financial statements.

11

REGIONS FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (Unaudited)

	Shareholders' Equity
	Preferred Stock			Common Stock			Additional Paid-In Capital		Retained Earnings		Treasury Stock, At Cost		Accumulated Other Comprehensive Income (Loss), Net		Total		Non- controlling Interest
	Shares	Amount		Shares	Amount
	(In millions, except per share data)
BALANCE AT JANUARY 1, 2025	2	$	1,715	909	$	9	$	11,394	$	9,060	$	(1,371)	$	(2,928)	$	17,879	$	31
Net income	—	—		—	—		—		490		—		—		490		—
Other comprehensive income, net of tax	—	—		—	—		—		—		—		636		636		—
Cash dividends declared	—	—		—	—		—		(226)		—		—		(226)		—
Preferred stock dividends	—	—		—	—		—		(25)		—		—		(25)		—
Impact of common stock share repurchases	—	—		(10)	—		(242)		—		—		—		(242)		—
Impact of common stock transactions under compensation plans, net	—	—		—	—		9		—		—		—		9		—
Other	—	—		—	—		—		—		—		9		9		6
BALANCE AT MARCH 31, 2025	2	$	1,715	899	$	9	$	11,161	$	9,299	$	(1,371)	$	(2,283)	$	18,530	$	37
BALANCE AT APRIL 1, 2025	2	$	1,715	899	$	9	$	11,161	$	9,299	$	(1,371)	$	(2,283)	$	18,530	$	37
Net income	—	—		—	—		—		563		—		—		563		—
Other comprehensive income, net of tax	—	—		—	—		—		—		—		316		316		—
Cash dividends declared	—	—		—	—		—		(224)		—		—		(224)		—
Preferred stock dividends	—	—		—	—		—		(25)		—		—		(25)		—
Redemption of Series D preferred stock	(1)	(346)		—	—		—		(4)		—		—		(350)		—
Impact of common stock share repurchases	—	—		(7)	—		(144)		—		—		—		(144)		—
Impact of common stock transactions under compensation plans, net	—	—		2	—		—		—		—		—		—		—
Other	—	—		—	—		—		—		—		—		—		$	3
BALANCE AT JUNE 30, 2025	1	$	1,369	894	$	9	$	11,017	$	9,609	$	(1,371)	$	(1,967)	$	18,666	$	40
BALANCE AT JANUARY 1, 2026	1	$	1,369	868	$	9	$	10,366	$	10,205	$	(1,371)	$	(1,535)	$	19,043	$	60
Net income	—	—		—	—		—		559		—		—		559		—
Other comprehensive income (loss), net of tax	—	—		—	—		—		—		—		(183)		(183)		—
Cash dividends declared	—	—		—	—		—		(227)		—		—		(227)		—
Preferred stock dividends	—	—		—	—		—		(20)		—		—		(20)		—
Impact of common stock share repurchases	—	—		(14)	—		(401)		—		—		—		(401)		—
Impact of common stock transactions under compensation plans, net	—	—		—	—		8		—		—		—		8		—
Other	—	—		—	—		—		—		—		—		—		5
BALANCE AT MARCH 31, 2026	1	$	1,369	854	$	9	$	9,973	$	10,517	$	(1,371)	$	(1,718)	$	18,779	$	65
BALANCE AT APRIL 1, 2026	1	$	1,369	854	$	9	$	9,973	$	10,517	$	(1,371)	$	(1,718)	$	18,779	$	65
Net income	—	—		—	—		—		570		—		—		570		—
Other comprehensive income (loss), net of tax	—	—		—	—		—		—		—		(204)		(204)		—
Cash dividends declared	—	—		—	—		—		(226)		—		—		(226)		—
Preferred stock dividends	—	—		—	—		—		(21)		—		—		(21)		—
Impact of common stock share repurchases	—	—		(2)	—		(59)		—		—		—		(59)		—
Impact of common stock transactions under compensation plans, net	—	—		1	—		1		—		—		—		1		—
Other	—	—		—	—		—		—		—		—		—		6
BALANCE AT JUNE 30, 2026	1	$	1,369	853	$	9	$	9,915	$	10,840	$	(1,371)	$	(1,922)	$	18,840	$	71

See notes to consolidated financial statements.

12

REGIONS FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

	Six Months Ended June 30
	2026		2025
	(In millions)
Operating activities:
Net income	$	1,129	$	1,053
Adjustments to reconcile net income to net cash from operating activities:
Provision for credit losses	159		250
Depreciation, amortization and accretion, net	47		41
Securities (gains) losses, net	44		26
Deferred income tax expense (benefit)	142		17
Originations and purchases of loans held for sale	(3,307)		(2,491)
Proceeds from sales of loans held for sale	3,268		2,585
(Gain) loss on sale of loans, net	(18)		(23)
Net change in operating assets and liabilities:
Other earning assets	129		(66)
Interest receivable and other assets	(713)		611
Other liabilities	268		(353)
Other	88		(11)
Net cash from operating activities	1,236		1,639
Investing activities:
Proceeds from maturities of debt securities held to maturity	379		288
Proceeds from sales of debt securities available for sale	1,212		615
Proceeds from maturities of debt securities available for sale	1,654		1,558
Purchases of debt securities available for sale	(2,911)		(3,987)
Net (payments for) proceeds from bank-owned life insurance	7		3
Proceeds from sales of loans	110		190
Purchases of loans	(137)		(187)
Net change in loans	(3,733)		(274)
Purchases of mortgage servicing rights	(17)		(19)
Net purchases of other assets	(124)		(169)
Net cash from investing activities	(3,560)		(1,982)
Financing activities:
Net change in deposits	(418)		3,316
Net change in short-term borrowings	2,250		(500)
Proceeds from long-term borrowings	1,499		—
Payments on long-term borrowings	(1,000)		(750)
Cash dividends on common stock	(458)		(453)
Cash dividends on preferred stock	(41)		(50)
Payment for redemption of preferred stock	—		(350)
Repurchases of common stock	(460)		(386)
Taxes paid related to net share settlement of equity awards	(25)		(21)
Other	(4)		—
Net cash from financing activities	1,343		806
Net change in cash and cash equivalents	(981)		463
Cash and cash equivalents at beginning of year	10,907		10,712
Cash and cash equivalents at end of period	$	9,926	$	11,175

See notes to consolidated financial statements.

13

REGIONS FINANCIAL CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 1. BASIS OF PRESENTATION

Regions Financial Corporation (“Regions” or the "Company”) provides a full range of banking and bank-related services to individual and corporate customers through its subsidiaries and branch offices located across the South, Midwest and Texas as well as delivering specialty capabilities nationwide. Regions is subject to the regulations of certain government agencies and undergoes periodic examinations by certain regulatory authorities.

The accounting and reporting policies of Regions and the methods of applying those policies that materially affect the consolidated financial statements conform with GAAP and with general financial services industry practices. The accompanying interim financial statements have been prepared in accordance with the instructions for Form 10-Q and, therefore, do not include all information and notes to the consolidated financial statements necessary for a complete presentation of financial position, results of operations, comprehensive income and cash flows in conformity with GAAP. These interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto in Regions’ Annual Report on Form 10-K for the year ended December 31, 2025. Regions has evaluated all subsequent events for potential recognition and disclosure through the filing date of this Form 10-Q.

During 2026, the Company adopted new accounting guidance. See Note 13 for related disclosures.

NOTE 2. VARIABLE INTEREST ENTITIES

Regions is involved in various entities that are considered to be VIEs, as defined by authoritative accounting literature. Generally, a VIE is a corporation, partnership, trust or other legal structure that either does not have equity investors with substantive voting rights or has equity investors that do not provide sufficient financial resources for the entity to support its activities. The following discusses the VIEs in which Regions has a significant interest.

Regions periodically invests in various limited partnerships that sponsor affordable housing projects and economic development projects, which then provide tax credits to Regions. These investments are funded through a combination of debt and equity. These partnerships meet the definition of a VIE and are collectively referred to as tax credit investments in the table below. Due to the nature of the management activities of the general partner, Regions is not the primary beneficiary of these partnerships. Refer to Note 1 "Summary of Significant Accounting Policies" in the Annual Report on Form 10-K for the year ended December 31, 2025 for additional details. Additionally, Regions has loans or letters of credit commitments with certain limited partnerships. The funded portion of the loans and letters of credit are classified as commercial and industrial loans or investor real estate loans as applicable in Note 4 .

A summary of Regions’ tax credit investments and related loans and letters of credit, representing Regions’ maximum exposure to loss, is as follows: 

	June 30, 2026		December 31, 2025
	(In millions)
Tax credit investments included in other assets	$	1,772	$	1,608
Unfunded tax credit commitments included in other liabilities	629		567
Loans and letters of credit commitments	734		643
Funded portion of loans and letters of credit commitments	409		328

	Three Months Ended June 30				Six Months Ended June 30
	2026		2025		2026		2025
	(In millions)
Tax credits and other tax benefits recognized (1)	$	66	$	58	$	128	$	112
Tax credit amortization expense included in income tax expense (1)	54		48		105		95

____

(1) Included within income tax expense on the consolidated statements of income and within operating activities on the consolidated statements of cash flows.

14

NOTE 3. DEBT SECURITIES

The amortized cost basis, gross unrealized gains and losses, and estimated fair value of debt securities held to maturity and debt securities available for sale are as follows:

	June 30, 2026
			Recognized in OCI (1)						Not recognized in OCI
	Amortized Cost Basis		Gross Unrealized Gains		Gross Unrealized Losses		Carrying Value		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
	(In millions)
Debt securities held to maturity:
Mortgage-backed securities:
Residential agency	$	5,822	$	—	$	(817)	$	5,005	$	1	$	(87)	$	4,919
Commercial agency	266		—		—		266		—		(5)		261
	$	6,088	$	—	$	(817)	$	5,271	$	1	$	(92)	$	5,180
Debt securities available for sale:
U.S. Treasury securities	$	2,057	$	12	$	(30)	$	2,039					$	2,039
Federal agency securities	539		3		(10)		532						532
Obligations of states and political subdivisions	2		—		—		2						2
Mortgage-backed securities:
Residential agency	18,288		156		(750)		17,694						17,694
Commercial agency	6,684		21		(171)		6,534						6,534
Commercial non-agency	165		—		(8)		157						157
Corporate and other debt securities	432		2		(4)		430						430
	$	28,167	$	194	$	(973)	$	27,388					$	27,388

 

	December 31, 2025
			Recognized in OCI (1)						Not recognized in OCI
	Amortized Cost Basis		Gross Unrealized Gains		Gross Unrealized Losses		Carrying Value		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
	(In millions)
Debt securities held to maturity:
Mortgage-backed securities:
Residential agency	$	6,103	$	—	$	(866)	$	5,237	$	37	$	(53)	$	5,221
Commercial agency	370		—		(1)		369		—		(6)		363
	$	6,473	$	—	$	(867)	$	5,606	$	37	$	(59)	$	5,584
Debt securities available for sale:
U.S. Treasury securities	$	2,313	$	10	$	(47)	$	2,276					$	2,276
Federal agency securities	544		6		(7)		543						543
Obligations of states and political subdivisions	2		—		—		2						2
Mortgage-backed securities:
Residential agency	18,820		244		(677)		18,387						18,387
Commercial agency	5,925		34		(130)		5,829						5,829
Commercial non-agency	91		—		(9)		82						82
Corporate and other debt securities	439		5		(3)		441						441
	$	28,134	$	299	$	(873)	$	27,560					$	27,560

_________

(1)Debt securities held to maturity gross unrealized losses recognized in OCI resulted from transfers of securities available for sale.

The Company utilizes interest rate swap agreements to manage interest rate exposure on certain of the Company's fixed-rate prepayable and non-prepayable debt securities available for sale. See Note 9 for additional information.

Debt securities with carrying values of $21.1 billion at June 30, 2026 and $20.9 billion at December 31, 2025, respectively, were pledged to secure public funds, trust deposits and other borrowing arrangements.

15

The amortized cost basis and estimated fair value of debt securities held to maturity and debt securities available for sale at June 30, 2026, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

	Amortized Cost Basis		Estimated Fair Value
	(In millions)
Debt securities held to maturity:
Mortgage-backed securities:
Residential agency	$	5,822	$	4,919
Commercial agency	266		261
	$	6,088	$	5,180
Debt securities available for sale:
Due in one year or less	$	393	$	391
Due after one year through five years	1,279		1,272
Due after five years through ten years	1,292		1,276
Due after ten years	66		64
Mortgage-backed securities:
Residential agency	18,288		17,694
Commercial agency	6,684		6,534
Commercial non-agency	165		157
	$	28,167	$	27,388

The following tables present gross unrealized losses and the related estimated fair value of debt securities available for sale at June 30, 2026 and December 31, 2025. All debt securities in an unrealized position are segregated between investments that have been in a continuous unrealized loss position for less than twelve months and for twelve months or more.

	June 30, 2026
	Less Than Twelve Months				Twelve Months or More				Total
	Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses
	(In millions)
Debt securities available for sale:
U.S Treasury securities	$	1,152	$	(13)	$	537	$	(17)	$	1,689	$	(30)
Federal agency securities	283		(3)		53		(7)		336		(10)
Mortgage-backed securities:
Residential agency	3,494		(40)		7,009		(710)		10,503		(750)
Commercial agency	3,708		(42)		1,807		(129)		5,515		(171)
Commercial non-agency	—		—		81		(8)		81		(8)
Corporate and other debt securities	161		(2)		73		(2)		234		(4)
	$	8,798	$	(100)	$	9,560	$	(873)	$	18,358	$	(973)

 

	December 31, 2025
	Less Than Twelve Months				Twelve Months or More				Total
	Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses
	(In millions)
Debt securities available for sale:
U.S. Treasury securities	$	203	$	(1)	$	1,197	$	(46)	$	1,400	$	(47)
Federal agency securities	—		—		57		(7)		57		(7)
Mortgage-backed securities:
Residential agency	—		—		8,498		(677)		8,498		(677)
Commercial agency	754		(3)		2,430		(127)		3,184		(130)
Commercial non-agency	—		—		82		(9)		82		(9)
Corporate and other debt securities	—		—		169		(3)		169		(3)
	$	957	$	(4)	$	12,433	$	(869)	$	13,390	$	(873)

The number of individual debt security positions in an unrealized loss position in the tables above increased to 1,193 at June 30, 2026 from 1,058 at December 31, 2025. The increase in the total amount of unrealized losses was impacted by changes in market interest rates. In instances where an unrealized loss existed, there was no indication of an adverse change in credit on

16

the underlying positions in the tables above. As it relates to these positions, management believes no individual unrealized loss represented credit impairment as of those dates. At June 30, 2026, the Company does not intend to sell, and it is not more likely than not that the Company will be required to sell, the positions before the recovery of their amortized cost bases, which may be at maturity.

The following table presents gross realized gains and gross realized losses on sales of debt securities available for sale:

	Three Months Ended June 30				Six Months Ended June 30
	2026		2025		2026		2025
	(In millions)
Gross realized gains	$	—	$	—	$	2	$	1
Gross realized losses	(41)		(1)		(46)		(27)
Securities gains (losses), net	$	(41)	$	(1)	$	(44)	$	(26)

The cost of debt securities sold is based on the specific identification method. As part of the Company's normal process for evaluating impairment, including credit-related impairment, impairment identified by management was immaterial for the three and six months ended June 30, 2026 and 2025.

NOTE 4. LOANS AND THE ALLOWANCE FOR CREDIT LOSSES

LOANS

The following table presents the distribution of Regions' loan portfolio by segment and class, net of unearned income:

	June 30, 2026		December 31, 2025
	(In millions)
Commercial and industrial	$	51,841	$	48,790
Commercial real estate mortgage—owner-occupied	5,127		4,845
Commercial real estate construction—owner-occupied	267		263
Total commercial	57,235		53,898
Commercial investor real estate mortgage	7,896		7,172
Commercial investor real estate construction	2,073		1,934
Total investor real estate	9,969		9,106
Residential first mortgage	19,498		19,765
Home equity lines	3,241		3,232
Home equity loans	2,263		2,324
Consumer credit card	1,498		1,519
Other consumer	5,496		5,793
Total consumer	31,996		32,633
Total loans, net of unearned income	$	99,200	$	95,637

17

ALLOWANCE FOR CREDIT LOSSES

Regions determines the appropriate level of the allowance on a quarterly basis. Refer to Note 1 "Summary of Significant Accounting Policies" in the Annual Report on Form 10-K for the year ended December 31, 2025 for a description of the methodology.

ROLLFORWARD OF ALLOWANCE FOR CREDIT LOSSES

The following tables present analyses of the allowance for credit losses by portfolio segment for the three and six months ended June 30, 2026 and 2025.

	Three Months Ended June 30, 2026
	Commercial		Investor Real Estate		Consumer		Total
	(In millions)
Allowance for loan losses, April 1, 2026	$	781	$	108	$	638	$	1,527
Provision for loan losses	17		2		45		64
Loan losses:
Charge-offs	(67)		—		(56)		(123)
Recoveries	9		—		12		21
Net loan losses	(58)		—		(44)		(102)
Allowance for loan losses, June 30, 2026	740		110		639		1,489
Reserve for unfunded credit commitments, April 1, 2026	87		14		19		120
Provision for unfunded credit commitments	1		1		2		4
Reserve for unfunded credit commitments, June 30, 2026	88		15		21		124
Allowance for credit losses, June 30, 2026	$	828	$	125	$	660	$	1,613

	Three Months Ended June 30, 2025
	Commercial		Investor Real Estate		Consumer		Total
	(In millions)
Allowance for loan losses, April 1, 2025	$	745	$	236	$	632	$	1,613
Provision for loan losses	62		—		50		112
Loan losses:
Charge-offs	(70)		(2)		(61)		(133)
Recoveries	10		—		10		20
Net loan losses	(60)		(2)		(51)		(113)
Allowance for loan losses, June 30, 2025	747		234		631		1,612
Reserve for unfunded credit commitments April 1, 2025	91		8		18		117
Provision for unfunded credit commitments	8		5		1		14
Reserve for unfunded credit commitments, June 30, 2025	99		13		19		131
Allowance for credit losses, June 30, 2025	$	846	$	247	$	650	$	1,743

	Six Months Ended June 30, 2026
	Commercial		Investor Real Estate		Consumer		Total
	(In millions)
Allowance for loan losses, January 1, 2026	$	755	$	120	$	681	$	1,556
Provision for (benefit from) loan losses	122		(10)		53		165
Loan losses:
Charge-offs	(155)		—		(119)		(274)
Recoveries	18		—		24		42
Net loan losses	(137)		—		(95)		(232)
Allowance for loan losses, June 30, 2026	740		110		639		1,489
Reserve for unfunded credit commitments, January 1, 2026	95		15		20		130
Provision for (benefit from) unfunded credit losses	(7)		—		1		(6)
Reserve for unfunded credit commitments, June 30, 2026	88		15		21		124
Allowance for credit losses, June 30, 2026	$	828	$	125	$	660	$	1,613

18

	Six Months Ended June 30, 2025
	Commercial		Investor Real Estate		Consumer		Total
	(In millions)
Allowance for loan losses, January 1, 2025	$	743	$	240	$	630	$	1,613
Provision for loan losses	111		18		106		235
Loan losses:
Charge-offs	(129)		(24)		(125)		(278)
Recoveries	22		—		20		42
Net loan losses	(107)		(24)		(105)		(236)
Allowance for loan losses, June 30, 2025	747		234		631		1,612
Reserve for unfunded credit commitments, January 1, 2025	91		7		18		116
Provision for unfunded credit losses	8		6		1		15
Reserve for unfunded credit commitments, June 30, 2025	99		13		19		131
Allowance for credit losses, June 30, 2025	$	846	$	247	$	650	$	1,743

PORTFOLIO SEGMENT RISK FACTORS

Regions' portfolio segments are commercial, investor real estate, and consumer. Classes within each segment present unique credit risks. Refer to Note 5 "Allowance for Credit Losses" in the Annual Report on Form 10-K for the year ended December 31, 2025 for information regarding Regions' portfolio segments and related classes, as well as the risks specific to each.

CREDIT QUALITY INDICATORS

The commercial and investor real estate portfolio segments' primary credit quality indicator is internal risk ratings which are detailed by categories related to underlying credit quality and probability of default. Regions assigns these risk ratings at loan origination and reviews the relationship utilizing a risk-based approach on, at minimum, an annual basis or at any time management becomes aware of information affecting the borrowers' ability to fulfill their obligations. Both quantitative and qualitative factors are considered in this review process. Refer to Note 5 "Allowance for Credit Losses" in the Annual Report on Form 10-K for the year ended December 31, 2025 for information regarding commercial risk ratings.

Regions' consumer portfolio segment has various classes that present unique credit risks. Regions considers factors such as periodic updates of FICO scores, accrual status, days past due status, unemployment rates, home prices, and geography as credit quality indicators for the consumer loan portfolio. FICO scores are obtained at origination as part of Regions' formal underwriting process. Refreshed FICO scores are obtained by the Company quarterly for most consumer loans, including residential first mortgage loans. Current FICO data is not available for certain loans in the portfolio for various reasons; for example, if customers do not use sufficient credit, an updated score may not be available. These categories are utilized to develop the associated allowance for credit losses. The higher the FICO score the less probability of default and vice versa.

The following tables present applicable credit quality indicators for the loan portfolio segments and classes, excluding loans held for sale, by vintage year as of June 30, 2026 and December 31, 2025 and gross charge-offs by vintage year for the year to date periods ended June 30, 2026 and 2025. Regions defines the vintage date for the purposes of disclosure as the date of the most recent credit decision. In general, renewals that are categorized as new credit decisions reflect the renewal date as the vintage date. Classes in the commercial and investor real estate portfolio segments are disclosed by risk rating. Classes in the consumer portfolio segment are disclosed by current FICO scores. Refer to Note 5 "Allowance for Credit Losses" in the Annual Report on Form 10-K for the year ended December 31, 2025 for more information regarding Regions' credit quality indicators.

	June 30, 2026
	Term Loans												Revolving Loans		Revolving Loans Converted to Amortizing		Other (1)		Total
	2026		2025		2024		2023		2022		Prior
	(In millions)
Commercial and industrial:
Risk rating:
Pass	$	5,459	$	8,837	$	4,646	$	2,068	$	2,662	$	4,667	$	21,935	$	—	$	(189)	$	50,085
Special Mention	18		43		49		73		122		18		220		—		—		543
Substandard Accrual	51		169		17		166		65		9		324		—		—		801
Non-accrual	62		45		42		70		20		34		139		—		—		412
Total commercial and industrial	$	5,590	$	9,094	$	4,754	$	2,377	$	2,869	$	4,728	$	22,618	$	—	$	(189)	$	51,841

19

	June 30, 2026
	Term Loans												Revolving Loans		Revolving Loans Converted to Amortizing		Other (1)		Total
	2026		2025		2024		2023		2022		Prior
	(In millions)
Commercial real estate mortgage—owner-occupied:
Risk rating:
Pass	$	508	$	762	$	665	$	505	$	665	$	1,438	$	178	$	—	$	(6)	$	4,715
Special Mention	17		22		18		23		32		76		1		—		—		189
Substandard Accrual	4		52		15		13		29		45		4		—		—		162
Non-accrual	8		—		8		10		8		25		2		—		—		61
Total commercial real estate mortgage—owner-occupied:	$	537	$	836	$	706	$	551	$	734	$	1,584	$	185	$	—	$	(6)	$	5,127
Commercial real estate construction—owner-occupied:
Risk rating:
Pass	$	31	$	70	$	27	$	6	$	28	$	56	$	13	$	—	$	—	$	231
Special Mention	—		—		7		6		5		5		—		—		—		23
Substandard Accrual	—		6		—		5		—		—		—		—		—		11
Non-accrual	—		—		—		2		—		—		—		—		—		2
Total commercial real estate construction—owner-occupied:	$	31	$	76	$	34	$	19	$	33	$	61	$	13	$	—	$	—	$	267
Total commercial	$	6,158	$	10,006	$	5,494	$	2,947	$	3,636	$	6,373	$	22,816	$	—	$	(195)	$	57,235
Commercial investor real estate mortgage:
Risk rating:
Pass	$	1,917	$	2,112	$	910	$	535	$	577	$	229	$	611	$	—	$	(8)	$	6,883
Special Mention	54		43		32		47		55		1		6		—		—		238
Substandard Accrual	164		84		—		35		315		39		11		—		—		648
Non-accrual	31		41		25		—		24		1		5		—		—		127
Total commercial investor real estate mortgage	$	2,166	$	2,280	$	967	$	617	$	971	$	270	$	633	$	—	$	(8)	$	7,896
Commercial investor real estate construction:
Risk rating:
Pass	$	220	$	511	$	313	$	151	$	—	$	1	$	735	$	—	$	(11)	$	1,920
Special Mention	1		2		15		24		71		—		13		—		—		126
Substandard Accrual	—		—		—		16		—		—		11		—		—		27
Non-accrual	—		—		—		—		—		—		—		—		—		—
Total commercial investor real estate construction	$	221	$	513	$	328	$	191	$	71	$	1	$	759	$	—	$	(11)	$	2,073
Total investor real estate	$	2,387	$	2,793	$	1,295	$	808	$	1,042	$	271	$	1,392	$	—	$	(19)	$	9,969
Residential first mortgage:
FICO scores:
Above 720	$	736	$	1,328	$	1,014	$	1,567	$	2,374	$	9,077	$	—	$	—	$	—	$	16,096
681-720	48		86		76		122		188		659		—		—		—		1,179
620-680	15		48		39		75		108		484		—		—		—		769
Below 620	1		27		60		102		170		695		—		—		—		1,055
Data not available	25		42		26		13		10		115		3		—		165		399
Total residential first mortgage	$	825	$	1,531	$	1,215	$	1,879	$	2,850	$	11,030	$	3	$	—	$	165	$	19,498
Home equity lines:
FICO scores:
Above 720	$	—	$	—	$	—	$	—	$	—	$	—	$	2,464	$	60	—		$	2,524
681-720	—		—		—		—		—		—		342		14		—		356
620-680	—		—		—		—		—		—		192		14		—		206
Below 620	—		—		—		—		—		—		113		10		—		123
Data not available	—		—		—		—		—		—		—		—		32		32
Total home equity lines	$	—	$	—	$	—	$	—	$	—	$	—	$	3,111	$	98	$	32	$	3,241

20

	June 30, 2026
	Term Loans												Revolving Loans		Revolving Loans Converted to Amortizing		Other (1)		Total
	2026		2025		2024		2023		2022		Prior
	(In millions)
Home equity loans:
FICO scores:
Above 720	$	156	$	294	$	219	$	177	$	234	$	667	$	—	$	—	$	—	$	1,747
681-720	28		47		40		28		31		75		—		—		—		249
620-680	10		21		20		18		19		64		—		—		—		152
Below 620	1		6		11		14		16		53		—		—		—		101
Data not available	—		—		—		—		—		—		—		—		14		14
Total home equity loans	$	195	$	368	$	290	$	237	$	300	$	859	$	—	$	—	$	14	$	2,263
Consumer credit card:
FICO scores:
Above 720	$	—	$	—	$	—	$	—	$	—	$	—	$	855	$	—	$	—	$	855
681-720	—		—		—		—		—		—		286		—		—		286
620-680	—		—		—		—		—		—		251		—		—		251
Below 620	—		—		—		—		—		—		124		—		—		124
Data not available	—		—		—		—		—		—		5		—		(23)		(18)
Total consumer credit card	$	—	$	—	$	—	$	—	$	—	$	—	$	1,521	$	—	$	(23)	$	1,498
Other consumer(2):
FICO scores:
Above 720	$	318	$	571	$	515	$	717	$	1,058	$	616	$	111	$	—	$	—	$	3,906
681-720	51		106		87		115		185		106		60		—		—		710
620-680	25		59		50		69		138		78		49		—		—		468
Below 620	5		20		25		40		90		50		29		—		—		259
Data not available	62		4		3		4		11		134		—		—		(65)		153
Total other consumer	$	461	$	760	$	680	$	945	$	1,482	$	984	$	249	$	—	$	(65)	$	5,496
Total consumer loans	$	1,481	$	2,659	$	2,185	$	3,061	$	4,632	$	12,873	$	4,884	$	98	$	123	$	31,996
Total Loans	$	10,026	$	15,458	$	8,974	$	6,816	$	9,310	$	19,517	$	29,092	$	98	$	(91)	$	99,200

	December 31, 2025
	Term Loans												Revolving Loans		Revolving Loans Converted to Amortizing		Other (1)		Total
	2025		2024		2023		2022		2021		Prior
	(In millions)
Commercial and industrial:
Risk rating:
Pass	$	9,993	$	5,700	$	2,683	$	3,593	$	1,866	$	3,540	$	19,167	$	—	$	254	$	46,796
Special Mention	70		29		107		133		40		9		190		—		—		578
Substandard Accrual	159		30		184		137		5		13		414		—		—		942
Non-accrual	49		88		118		36		17		27		139		—		—		474
Total commercial and industrial	$	10,271	$	5,847	$	3,092	$	3,899	$	1,928	$	3,589	$	19,910	$	—	$	254	$	48,790
Commercial real estate mortgage—owner-occupied:
Risk rating:
Pass	$	756	$	706	$	589	$	735	$	662	$	1,000	$	112	$	—	$	(5)	$	4,555
Special Mention	4		18		7		28		29		18		1		—		—		105
Substandard Accrual	39		13		14		15		30		27		2		—		—		140
Non-accrual	1		4		2		10		12		16		—		—		—		45
Total commercial real estate mortgage—owner-occupied:	$	800	$	741	$	612	$	788	$	733	$	1,061	$	115	$	—	$	(5)	$	4,845

21

	December 31, 2025
	Term Loans												Revolving Loans		Revolving Loans Converted to Amortizing		Other (1)		Total
	2025		2024		2023		2022		2021		Prior
Commercial real estate construction—owner-occupied:
Risk rating:
Pass	$	75	$	24	$	29	$	29	$	23	$	45	$	14	$	—	$	—	$	239
Special Mention	—		7		—		7		—		2		—		—		—		16
Substandard Accrual	6		—		—		—		—		—		—		—		—		6
Non-accrual	—		1		—		—		—		1		—		—		—		2
Total commercial real estate construction—owner-occupied:	$	81	$	32	$	29	$	36	$	23	$	48	$	14	$	—	$	—	$	263
Total commercial	$	11,152	$	6,620	$	3,733	$	4,723	$	2,684	$	4,698	$	20,039	$	—	$	249	$	53,898
Commercial investor real estate mortgage:
Risk rating:
Pass	$	2,802	$	806	$	637	$	960	$	309	$	180	$	531	$	—	$	(6)	$	6,219
Special Mention	144		—		59		135		1		1		—		—		—		340
Substandard Accrual	251		—		22		109		93		—		17		—		—		492
Non-accrual	—		49		—		27		—		4		41		—		—		121
Total commercial investor real estate mortgage	$	3,197	$	855	$	718	$	1,231	$	403	$	185	$	589	$	—	$	(6)	$	7,172
Commercial investor real estate construction:
Risk rating:
Pass	$	321	$	446	$	276	$	162	$	—	$	1	$	660	$	—	$	(13)	$	1,853
Special Mention	2		4		—		—		—		—		18		—		—		24
Substandard Accrual	—		—		—		42		—		—		15		—		—		57
Non-accrual	—		—		—		—		—		—		—		—		—		—
Total commercial investor real estate construction	$	323	$	450	$	276	$	204	$	—	$	1	$	693	$	—	$	(13)	$	1,934
Total investor real estate	$	3,520	$	1,305	$	994	$	1,435	$	403	$	186	$	1,282	$	—	$	(19)	$	9,106
Residential first mortgage:
FICO scores:
Above 720	$	1,270	$	1,161	$	1,734	$	2,507	$	3,690	$	5,934	$	—	$	—	$	—	$	16,296
681-720	94		85		147		203		243		469		—		—		—		1,241
620-680	44		47		74		122		149		359		—		—		—		795
Below 620	13		46		104		164		163		545		—		—		—		1,035
Data not available	49		26		15		13		33		92		2		—		168		398
Total residential first mortgage	$	1,470	$	1,365	$	2,074	$	3,009	$	4,278	$	7,399	$	2	$	—	$	168	$	19,765
Home equity lines:
FICO scores:
Above 720	$	—	$	—	$	—	$	—	$	—	$	—	$	2,443	$	61	—		$	2,504
681-720	—		—		—		—		—		—		346		14		—		360
620-680	—		—		—		—		—		—		198		12		—		210
Below 620	—		—		—		—		—		—		117		9		—		126
Data not available	—		—		—		—		—		—		—		—		32		32
Total home equity lines	$	—	$	—	$	—	$	—	$	—	$	—	$	3,104	$	96	$	32	$	3,232
Home equity loans:
FICO scores:
Above 720	$	326	$	254	$	204	$	255	$	272	$	488	$	—	$	—	$	—	$	1,799
681-720	53		46		32		39		31		57		—		—		—		258
620-680	19		22		18		21		21		50		—		—		—		151
Below 620	3		9		14		16		16		43		—		—		—		101
Data not available	—		—		—		—		—		—		—		—		15		15
Total home equity loans	$	401	$	331	$	268	$	331	$	340	$	638	$	—	$	—	$	15	$	2,324

22

	December 31, 2025
	Term Loans												Revolving Loans		Revolving Loans Converted to Amortizing		Other (1)		Total
	2025		2024		2023		2022		2021		Prior
Consumer credit card:
FICO scores:
Above 720	$	—	$	—	$	—	$	—	$	—	$	—	$	874	$	—	$	—	$	874
681-720	—		—		—		—		—		—		286		—		—		286
620-680	—		—		—		—		—		—		246		—		—		246
Below 620	—		—		—		—		—		—		125		—		—		125
Data not available	—		—		—		—		—		—		6		—		(18)		(12)
Total consumer credit card	$	—	$	—	$	—	$	—	$	—	$	—	$	1,537	$	—	$	(18)	$	1,519
Other consumer(2):
FICO scores:
Above 720	$	717	$	611	$	802	$	1,133	$	340	$	346	$	113	$	—	$	—	$	4,062
681-720	123		103		133		210		66		57		62		—		—		754
620-680	65		61		79		152		50		40		49		—		—		496
Below 620	16		27		46		104		33		26		31		—		—		283
Data not available	112		2		4		11		6		138		—		—		(75)		198
Total other consumer	$	1,033	$	804	$	1,064	$	1,610	$	495	$	607	$	255	$	—	$	(75)	$	5,793
Total consumer loans	$	2,904	$	2,500	$	3,406	$	4,950	$	5,113	$	8,644	$	4,898	$	96	$	122	$	32,633
Total Loans	$	17,576	$	10,425	$	8,133	$	11,108	$	8,200	$	13,528	$	26,219	$	96	$	352	$	95,637

________

(1)Other consists of amounts that are not accounted for at the loan level.

(2)Other consumer class includes overdrafts which are included in the current vintage year.

The following tables present gross charge-offs by vintage year for the six months ended June 30, 2026 and 2025.

	June 30, 2026
	Term Loans												Revolving Loans		Total
	2026		2025		2024		2023		2022		Prior
	(In millions)
Commercial and industrial	$	11	$	31	$	20	$	39	$	13	$	7	$	33	$	154
Commercial real estate mortgage—owner-occupied	—		—		—		—		—		1		—		$	1
Total commercial	11		31		20		39		13		8		33		155
Residential first mortgage	—		—		—		—		1		—		—		1
Home equity lines	—		—		—		—		—		—		2		2
Consumer credit card	—		—		—		—		—		—		36		36
Other consumer(1)	15		13		7		9		18		12		6		80
Total consumer	15		13		7		9		19		12		44		119
Total gross charge-offs	$	26	$	44	$	27	$	48	$	32	$	20	$	77	$	274

	June 30, 2025
	Term Loans												Revolving Loans		Total
	2025		2024		2023		2022		2021		Prior
	(In millions)
Commercial and industrial	$	—	$	16	$	19	$	38	$	5	$	2	$	47	$	127
Commercial real estate mortgage—owner-occupied	—		—		—		—		1		1		—		2
Total commercial	—		16		19		38		6		3		47		129
Commercial investor real estate mortgage	—		8		12		—		—		4		—		24
Total investor real estate	—		8		12		—		—		4		—		24
Residential first mortgage	—		—		—		1		—		—		—		1
Home equity lines	—		—		—		—		—		—		1		1
Consumer credit card	—		—		—		—		—		—		34		34
Other consumer(1)	14		15		14		23		9		9		5		89
Total consumer	14		15		14		24		9		9		40		125
Total gross charge-offs	$	14	$	39	$	45	$	62	$	15	$	16	$	87	$	278

______

(1)Other consumer class includes overdraft gross charge-offs. The majority of overdraft gross charge-offs for the six months ended June 30, 2026 and 2025 are included in the current vintage year.

23

AGING AND NON-ACCRUAL ANALYSIS

The following tables include an aging analysis of DPD and loans on non-accrual status for each portfolio segment and class as of June 30, 2026 and December 31, 2025. Loans on non-accrual status with no related allowance totaled $114 million at June 30, 2026 and were comprised of commercial and investor real estate loans, and totaled $109 million at December 31, 2025 and were comprised of commercial loans. Non–accrual loans with no related allowance typically include loans where the underlying collateral is deemed sufficient to recover all remaining principal. Loans that have been fully charged-off do not appear in the tables below.

	June 30, 2026
	Accrual Loans
	30-59 DPD		60-89 DPD		90+ DPD		Total 30+ DPD		Total Accrual		Non-accrual		Total
	(In millions)
Commercial and industrial	$	45	$	16	$	4	$	65	$	51,429	$	412	$	51,841
Commercial real estate mortgage—owner-occupied	12		3		1		16		5,066		61		5,127
Commercial real estate construction—owner-occupied	—		—		—		—		265		2		267
Total commercial	57		19		5		81		56,760		475		57,235
Commercial investor real estate mortgage	38		—		—		38		7,769		127		7,896
Commercial investor real estate construction	—		—		—		—		2,073		—		2,073
Total investor real estate	38		—		—		38		9,842		127		9,969
Residential first mortgage	113		68		191		372		19,465		33		19,498
Home equity lines	15		7		13		35		3,216		25		3,241
Home equity loans	9		5		8		22		2,255		8		2,263
Consumer credit card	12		8		21		41		1,498		—		1,498
Other consumer	43		21		20		84		5,496		—		5,496
Total consumer	192		109		253		554		31,930		66		31,996
	$	287	$	128	$	258	$	673	$	98,532	$	668	$	99,200

 

	December 31, 2025
	Accrual Loans
	30-59 DPD		60-89 DPD		90+ DPD		Total 30+ DPD		Total Accrual		Non-accrual		Total
	(In millions)
Commercial and industrial	$	39	$	16	$	6	$	61	$	48,316	$	474	$	48,790
Commercial real estate mortgage—owner-occupied	4		2		—		6		4,800		45		4,845
Commercial real estate construction—owner-occupied	—		—		—		—		261		2		263
Total commercial	43		18		6		67		53,377		521		53,898
Commercial investor real estate mortgage	—		—		—		—		7,051		121		7,172
Commercial investor real estate construction	—		—		—		—		1,934		—		1,934
Total investor real estate	—		—		—		—		8,985		121		9,106
Residential first mortgage	128		82		184		394		19,740		25		19,765
Home equity lines	19		6		15		40		3,208		24		3,232
Home equity loans	11		4		8		23		2,317		7		2,324
Consumer credit card	12		10		22		44		1,519		—		1,519
Other consumer	51		24		24		99		5,793		—		5,793
Total consumer	221		126		253		600		32,577		56		32,633
	$	264	$	144	$	259	$	667	$	94,939	$	698	$	95,637

At June 30, 2026 and December 31, 2025, the Company had collateral-dependent commercial loans of $249 million and $337 million, respectively. At June 30, 2026 and December 31, 2025, the Company had collateral-dependent investor real estate loans of $122 million and $121 million, respectively. The collateral for commercial and investor real estate loans generally consists of all business assets including real estate, receivables and equipment. At June 30, 2026 and December 31, 2025, the Company had collateral-dependent residential mortgage and home equity loans and lines totaling $149 million and $127 million, respectively. The collateral for these loans consists of residential real estate. Refer to Note 1 "Summary of Significant Accounting Policies" in the Annual Report on Form 10-K for the year ended December 31, 2025 for additional details for the criteria of collateral-dependent loans.

24

MODIFICATIONS TO BORROWERS EXPERIENCING FINANCIAL DIFFICULTY

Modifications to troubled borrowers are loans where the borrower is experiencing financial difficulty at the time of modification and are undertaken in order to improve the likelihood of repayment. Refer to Note 1 "Summary of Significant Accounting Policies" in the Annual Report on Form 10-K for the year ended December 31, 2025 for additional information.

For each portfolio segment and class, the following tables present the end of period balances of new modifications to troubled borrowers and the related percentage of the loan portfolio period-end balance by the type of modification in the three and six months ended June 30, 2026 and 2025.

	Three Months Ended June 30, 2026
		Term Extension				Payment Deferral				Term Extension and Interest Rate Modification				Total
		$		%(1)		$		%(1)		$		%(1)		$		%(1)
	(Dollars in millions)
Commercial and industrial		$	10	0.02	%	$	—	—	%	$	—	—	%	$	10	0.02	%
Commercial real estate mortgage—owner-occupied		3		0.07	%	—		—	%	—		—	%	3		0.07	%
Total commercial		13		0.02	%	—		—	%	—		—	%	13		0.02	%
Residential first mortgage		43		0.22	%	2		0.01	%	11		0.06	%	56		0.29	%
Home equity lines		1		0.02	%	—		—	%	2		0.05	%	3		0.07	%
Home equity loans		1		0.03	%	—		—	%	1		0.05	%	2		0.09	%
Total consumer		45		0.14	%	2		—	%	14		0.04	%	61		0.19	%
Total		$	58	0.06	%	$	2	—	%	$	14	0.01	%	$	74	0.07	%

	Three Months Ended June 30, 2025
	Term Extension				Payment Deferral				Term Extension and Interest Rate Modification				Total
	$		%(1)		$		%(1)		$		%(1)		$		%(1)
	(Dollars in millions)
Commercial and industrial	$	35	0.07	%	$	10	0.02	%	$	—	—	%	$	45	0.09	%
Commercial real estate mortgage—owner-occupied	2		0.03	%	—		—	%	—		—	%	2		0.03	%
Total commercial	37		0.07	%	10		0.02	%	—		—	%	47		0.09	%
Commercial investor real estate mortgage	109		1.56	%	—		—	%	—		—	%	109		1.56	%
Total investor real estate	109		1.19	%	—		—	%	—		—	%	109		1.19	%
Residential first mortgage	60		0.30	%	2		0.01	%	3		0.02	%	65		0.33	%
Home equity lines	—		0.01	%	—		—	%	1		0.04	%	1		0.05	%
Home equity loans	1		0.06	%	—		—	%	2		0.06	%	3		0.12	%
Total consumer	61		0.19	%	2		0.01	%	6		0.02	%	69		0.21	%
Total	$	207	0.21	%	$	12	0.01	%	$	6	0.01	%	$	225	0.23	%

25

	Six Months Ended June 30, 2026
	Term Extension				Payment Deferral				Term Extension and Interest Rate Modification				Term Extension and Payment Deferral				Other				Total
	$		%(1)		$		%(1)		$		%(1)		$		%(1)		$		%(1)		$		%(1)
	(Dollars in millions)
Commercial and industrial	$	12	0.02	%	$	—	—	%	$	—	—	%	$	19	0.04	%	$	—	—	%	$	31	0.06	%
Commercial real estate mortgage—owner-occupied	25		0.48	%	—		—	%	—		—	%	—		—	%	3		0.07	%	28		0.54	%
Total commercial	37		0.07	%	—		—	%	—		—	%	19		0.03	%	3		0.01	%	59		0.10	%
Residential first mortgage	69		0.36	%	2		0.01	%	17		0.09	%	—		—	%	—		—	%	88		0.46	%
Home equity lines	1		0.02	%	—		—	%	3		0.09	%	—		—	%	—		—	%	4		0.11	%
Home equity loans	2		0.07	%	—		—	%	3		0.12	%	—		—	%	—		—	%	5		0.20	%
Total consumer	72		0.22	%	2		0.01	%	23		0.07	%	—		—	%	—		—	%	97		0.30	%
Total	$	109	0.11	%	$	2	—	%	$	23	0.02	%	$	19	0.02	%	$	3	—	%	$	156	0.16	%

	Six Months Ended June 30, 2025
	Term Extension				Interest Rate Reduction				Payment Deferral				Term Extension and Interest Rate Modification				Total
	$		%(1)		$		%(1)		$		%(1)		$		%(1)		$		%(1)
	(Dollars in millions)
Commercial and industrial	$	85	0.17	%	$	4	0.01	%	$	10	0.02	%	$	—	—	%	$	99	0.20	%
Commercial real estate mortgage—owner-occupied	2		0.04	%	—		—	%	—		—	%	—		—	%	2		0.04	%
Total commercial	87		0.16	%	4		0.01	%	10		0.02	%	—		—	%	101		0.18	%
Commercial investor real estate mortgage	133		1.92	%	—		—	%	—		—	%	—		—	%	133		1.92	%
Total investor real estate	133		1.46	%	—		—	%	—		—	%	—		—	%	133		1.46	%
Residential first mortgage	117		0.58	%	—		—	%	3		0.02	%	9		0.04	%	129		0.64	%
Home equity lines	1		0.02	%	—		—	%	—		—	%	3		0.10	%	4		0.12	%
Home equity loans	2		0.09	%	—		—	%	—		—	%	3		0.12	%	5		0.21	%
Total consumer	120		0.36	%	—		—	%	3		0.01	%	15		0.05	%	138		0.42	%
Total	$	340	0.35	%	$	4	—	%	$	13	0.01	%	$	15	0.02	%	$	372	0.38	%

______

(1) Amounts calculated based upon whole dollar values.

The end of period balance of unfunded commitments related to modifications to troubled borrowers was immaterial at June 30, 2026 and totaled $124 million at December 31, 2025.

26

The following tables present the financial impact of modifications to troubled borrowers during the three and six months ended June 30, 2026 and 2025 by class of financing receivable and the type of modification. The tables include new modifications to troubled borrowers, as well as renewals of existing modifications to troubled borrowers.

	Three Months Ended June 30, 2026
		Term Extension	Payment Deferral	Term Extension and Interest Rate Modification
		Weighted-Average Term Extension	Weighted-Average Payment Deferral	Weighted-Average Term Extension	Weighted-Average Reduction in Interest Rate
	(In years, except for percentage data)
Commercial and industrial		0.83	—	—	—
Commercial real estate mortgage—owner-occupied		0.58	—	—	—
Residential first mortgage		8	0.67	4	1	%
Home equity lines		24	—	25	2	%
Home equity loans		11	—	14	2	%

	Three Months Ended June 30, 2025
	Term Extension	Payment Deferral	Term Extension and Interest Rate Modification
	Weighted-Average Term Extension	Weighted-Average Payment Deferral	Weighted-Average Term Extension	Weighted-Average Reduction in Interest Rate
	(In years, except for percentage data)
Commercial and industrial	1.17	0.25	—	—
Commercial real estate mortgage—owner-occupied	1.58	—	—	—
Commercial investor real estate mortgage	0.67	—	—	—
Residential first mortgage	7	0.67	6	1	%
Home equity lines	—	—	29	1	%
Home equity loans	12	—	21	3	%

	Six Months Ended June 30, 2026
	Term Extension	Term Extension and Interest Rate Modification			Term Extension and Payment Deferral		Payment Deferral
	Weighted-Average Term Extension	Weighted-Average Term Extension	Weighted-Average Reduction in Interest Rate		Weighted-Average Term Extension	Weighted-Average Payment Deferral	Weighted-Average Payment Deferral
	(In years, except for percentage data)
Commercial and industrial	0.83	—	—		2	4	—
Commercial real estate mortgage—owner-occupied	0.75	—	—		—	—	—
Residential first mortgage	7	4	1	%	—	—	0.75
Home equity lines	24	24	2	%	—	—	—
Home equity loans	9	16	2	%	—	—	—

____

(1) During the six months ended June 30, 2026, the Company had an other modification in commercial real estate mortgage which had an immaterial financial effect.

	Six Months Ended June 30, 2025
	Interest Rate Reduction	Term Extension	Payment Deferral	Term Extension and Interest Rate Modification
	Weighted-Average Reduction in Interest Rate	Weighted-Average Term Extension	Weighted-Average Payment Deferral	Weighted-Average Term Extension	Weighted-Average Reduction in Interest Rate
	(In years, except for percentage data)
Commercial and industrial	less than 1%	0.75	0.25	—	—
Commercial real estate mortgage—owner-occupied	—	2.25	—	—	—
Commercial investor real estate mortgage	—	0.67	—	—	—
Residential first mortgage	—	7	0.67	4	1	%
Home equity lines	—	30	—	26	1	%
Home equity loans	—	12	—	21	3	%

27

The following tables include the end of period balances of aging and non-accrual performance for modifications to troubled borrowers modified in the previous twelve-month period by portfolio segment and class as of June 30, 2026 and 2025.

	June 30, 2026
	Current		30-89 DPD		90+ DPD		Non-Performing Loans		Total
	(In millions)
Commercial and industrial	$	31	$	1	$	—	$	86	$	118
Commercial real estate mortgage—owner-occupied	23		—		—		5		28
Total commercial	54		1		—		91		146
Commercial investor real estate mortgage	27		—		—		—		27
Total investor real estate	27		—		—		—		27
Residential first mortgage	127		26		20		6		179
Home equity lines	5		—		—		1		6
Home equity loans	6		1		—		2		9
Total consumer	138		27		20		9		194
	$	219	$	28	$	20	$	100	$	367

	June 30, 2025
	Current		30-89 DPD		90+ DPD		Non-Performing Loans		Total
	(In millions)
Commercial and industrial	$	79	$	—	$	—	$	45	$	124
Commercial real estate mortgage—owner-occupied	2		—		—		1		3
Total commercial	81		—		—		46		127
Commercial investor real estate mortgage	111		—		—		89		200
Total investor real estate	111		—		—		89		200
Residential first mortgage	155		32		11		6		204
Home equity lines	9		1		—		1		11
Home equity loans	8		—		—		3		11
Total consumer	172		33		11		10		226
	$	364	$	33	$	11	$	145	$	553

For modifications to troubled borrowers, a subsequent payment default is defined in terms of delinquency, when a principal or interest payment is 90 days past due or classified as non-accrual status during the reporting period. Subsequent defaults of the loans restructured as a modification to a troubled borrower during the three and six months ended June 30, 2026 that were restructured as modifications to troubled borrowers during the previous twelve months had period-end balances of $32 million and $70 million, respectively. Subsequent default of loans restructured as a modification to a troubled borrower during the three and six months ended June 30, 2025 that were restructured as modifications to troubled borrowers during the previous twelve months had period-end balances of $23 million and $48 million, respectively.

28

NOTE 5. SERVICING OF FINANCIAL ASSETS

RESIDENTIAL MORTGAGE BANKING ACTIVITIES

The fair value of residential MSRs is calculated using various assumptions including future cash flows, market discount rates, expected prepayment rates, servicing costs and other factors. A significant change in prepayments of mortgages in the servicing portfolio could result in significant changes in the valuation adjustments, thus creating potential volatility in the carrying amount of residential MSRs. The Company compares fair value estimates and assumptions to observable market data where available, and also considers recent market activity and actual portfolio experience.

The table below presents an analysis of residential MSRs under the fair value measurement method: 

	Three Months Ended June 30				Six Months Ended June 30
	2026		2025		2026		2025
	(In millions)
Carrying value, beginning of period	$	954	$	979	$	970	$	1,007
Additions	11		7		20		12
Purchases (1)	13		14		17		19
Increase (decrease) in fair value (2):
Due to change in valuation inputs or assumptions	5		16		6		6
Economic amortization associated with borrower repayments (3)	(25)		(28)		(55)		(56)
Carrying value, end of period	$	958	$	988	$	958	$	988

_________

(1)Purchases of residential MSRs can be structured with cash hold back provisions, therefore the timing of payment may be made in future periods.

(2)Included in mortgage income. Amounts presented exclude offsetting impact from related derivatives.

(3)Includes both total loan payoffs as well as partial paydowns. Regions' MSR decay methodology is a discounted net cash flow approach.

Data and assumptions used in the fair value calculation, as well as the valuation’s sensitivity to rate fluctuations, related to residential MSRs (excluding related derivative instruments) are as follows: 

	June 30
	2026			2025
	(Dollars in millions)
Unpaid principal balance	$	63,258		$	66,249
Weighted-average CPR (%)	7.4		%	7.4		%
Estimated impact on fair value of a 10% increase	$	(38)		$	(36)
Estimated impact on fair value of a 20% increase	$	(72)		$	(69)
Option-adjusted spread (basis points)	496			496
Estimated impact on fair value of a 10% increase	$	(21)		$	(22)
Estimated impact on fair value of a 20% increase	$	(42)		$	(45)
Weighted-average coupon interest rate	3.9		%	3.9		%
Weighted-average remaining maturity (months)	286			293
Weighted-average servicing fee (basis points)	27.8			27.5

The sensitivity calculations above are hypothetical and should not be considered to be predictive of future performance. Changes in fair value based on adverse changes in assumptions generally cannot be extrapolated because the relationship of the change in assumption to the change in fair value may not be linear. Also, the effect of an adverse variation in a particular assumption on the fair value of the residential MSRs is calculated without changing any other assumption, while in reality changes in one factor may result in changes in another, which may either magnify or counteract the effect of the change. The derivative instruments utilized by Regions would serve to reduce the estimated impacts to fair value included in the table above.

Servicing related fees, which include contractually specified servicing fees, late fees and other ancillary income resulting from the servicing of residential mortgage loans totaled $45 million and $47 million for the three months ended June 30, 2026 and 2025, respectively and $91 million and $94 million for the six months ended June 30, 2026 and 2025, respectively.

Residential mortgage loans are sold in the secondary market with standard representations and warranties regarding certain characteristics such as the quality of the loan, the absence of fraud, the eligibility of the loan for sale and the future servicing associated with the loan. Regions may be required to repurchase these loans at par, or make-whole or indemnify the purchasers for losses incurred when representations and warranties are breached.

Regions maintains an immaterial repurchase liability related to residential mortgage loans sold with representations and warranty provisions. This repurchase liability is reported in other liabilities on the consolidated balance sheets and reflects management’s estimate of losses based on historical repurchase and loss trends, as well as other factors that may result in anticipated losses different from historical loss trends. Adjustments to this reserve are recorded in other non-interest expense on the consolidated statements of income.

29

COMMERCIAL MORTGAGE BANKING ACTIVITIES

Regions engages in the servicing of commercial mortgage loans through agreements with the agencies and through a DUS lending program. Commercial MSRs of loans through the agency programs are measured at fair value while commercial MSRs of loans through the DUS lending program are measured at cost and subsequently amortized.

Commercial mortgage banking through non-DUS agency programs

The fair value of commercial MSRs through non-DUS agency programs is calculated using various assumptions including future cash flows, market discount rates, expected prepayment rates, servicing costs and other factors. A significant change in prepayments of mortgages in this servicing portfolio could result in significant changes in the valuation adjustments, thus creating potential volatility in the carrying amount of these commercial MSRs. Commercial mortgages commonly have protection against prepayments in the forms of lockout periods and prepayment penalty features, which reduce the likelihood of prepayment. The Company compares fair value estimates and assumptions to observable market data where available, and also considers recent market activity and actual portfolio experience. Regions assumes a loss share guarantee associated with loans sold to Fannie Mae. See Note 1 "Summary of Significant Accounting Policies" in the Annual Report on Form 10-K for the year ended December 31, 2025 for additional information. Also see Note 12 for additional information related to the guarantee.

The table below presents an analysis of commercial MSRs through non-DUS agency programs under the fair value measurement method: 

	Three Months Ended June 30				Six Months Ended June 30
	2026		2025		2026		2025
	(In millions)
Carrying value, beginning of period	$	93	$	94	$	93	$	97
Additions	3		2		8		4
Increase (decrease) in fair value(1):
Due to change in valuation inputs or assumptions	2		1		2		—
Economic amortization associated with borrower repayments (2)	(5)		(4)		(10)		(8)
Carrying value, end of period	$	93	$	93	$	93	$	93

_____

(1)Included in capital markets income. Amounts presented exclude offsetting impact from related derivatives.

(2)Includes both total loan payoffs as well as partial paydowns. Regions' MSR decay methodology is a discounted net cash flow approach.

Data and assumptions used in the fair value calculation, as well as the valuation’s sensitivity to rate fluctuations, related to commercial MSRs through non-DUS agency programs (excluding related derivative instruments) are as follows: 

	June 30
	2026			2025
	(Dollars in millions)
Unpaid principal balance	$	8,528		$	7,578
Weighted-average CPR (%)	7.9		%	7.2		%
Estimated impact on fair value of a 10% increase	$	(2)		$	(2)
Estimated impact on fair value of a 20% increase	$	(3)		$	(3)
Weighted-average discount rate (%)	8.2		%	8.2		%
Estimated impact on fair value of a 10% increase	$	(3)		$	(3)
Estimated impact on fair value of a 20% increase	$	(5)		$	(5)
Weighted-average coupon interest rate	5.0		%	4.8		%
Weighted-average remaining maturity (months)	141			148
Weighted-average servicing fee (basis points)	23.8			25.3

The sensitivity calculations above are hypothetical and should not be considered to be predictive of future performance. Changes in fair value based on adverse changes in assumptions generally cannot be extrapolated because the relationship of the change in assumption to the change in fair value may not be linear. Also, the effect of an adverse variation in a particular assumption on the fair value of the commercial MSRs is calculated without changing any other assumption, while in reality changes in one factor may result in changes in another, which may either magnify or counteract the effect of the change. The derivative instruments utilized by Regions would serve to reduce the estimated impacts to fair value included in the table above.

Servicing related fees, which include contractually specified servicing fees, late fees and other ancillary income resulting from the servicing of commercial mortgage loans through non-DUS agency programs totaled $6 million and $7 million for the three months ended June 30, 2026 and 2025, and $13 million for both the six months ended June 30, 2026 and 2025.

30

Commercial mortgage banking through the DUS lending program

Regions is an approved DUS lender. The DUS program provides liquidity to the multi-family housing market. In connection with the DUS program, Regions services commercial mortgage loans, retains commercial MSRs and intangible assets associated with the DUS license, and assumes a loss share guarantee associated with the loans. See Note 1 "Summary of Significant Accounting Policies" in the Annual Report on Form 10-K for the year ended December 31, 2025 for additional information. Also see Note 12 for additional information related to the guarantee.

The table below presents an analysis of commercial DUS MSRs under the amortization measurement method:

	Three Months Ended June 30				Six Months Ended June 30
	2026		2025		2026		2025
	(In millions)
Carrying value, beginning of period	$	86	$	91	$	89	$	90
Additions	—		5		2		10
Economic amortization associated with borrower repayments (1)	(4)		(5)		(9)		(9)
Carrying value, end of period	$	82	$	91	$	82	$	91

________

(1)Economic amortization associated with borrower repayments includes both total loan payoffs as well as partial paydowns.

Regions periodically evaluates DUS MSRs for impairment based on fair value. The estimated fair value of the DUS MSRs was approximately $111 million at June 30, 2026 and $113 million at December 31, 2025.

Servicing related fees in connection with the DUS program, which include contractually specified servicing fees, late fees and other ancillary income resulting from the servicing of DUS commercial mortgage loans totaled $6 million for both the three months ended June 30, 2026 and 2025, and $13 million for both the six months ended June 30, 2026 and 2025, respectively.

NOTE 6. SHAREHOLDERS' EQUITY AND ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

PREFERRED STOCK

The following table presents a summary of the non-cumulative perpetual preferred stock:

												June 30, 2026		December 31, 2025
	Issuance Date	Earliest Redemption Date	Dividend Rate (1)			Liquidation Amount		Liquidation preference per Share	Liquidation preference per Depositary Share	Ownership Interest per Depositary Share	Shares Issued and Outstanding	Carrying Amount		Carrying Amount
	(Dollars in millions, except for share and per share amounts)
Series C	4/30/2019	5/15/2029	5.700	%	(2)	$	500	1,000	25	1/40th	500,000	$	490	$	490
Series E	5/4/2021	6/15/2026	4.450	%		400		1,000	25	1/40th	400,000	390		390
Series F	7/29/2024	9/15/2029	6.950	%	(3)	500		1,000	25	1/40th	500,000	489		489
						$	1,400				1,400,000	$	1,369	$	1,369

_________

(1)Dividends on all series of preferred stock, if declared, accrue and are payable quarterly in arrears.

(2)Dividends, if declared, will be paid quarterly at an annual rate equal to (i) for each period beginning prior to August 15, 2029, 5.700%, and (ii) for each period beginning on or after August 15, 2029, three-month CME Term SOFR plus 3.410% which includes a 0.262% spread adjustment for the transition to SOFR in accordance with ISDA protocols.

(3)Dividends, if declared, will be paid quarterly at an annual rate equal to (i) for each period beginning on September 15, 2024, 6.950% and (ii) for each period beginning on or after September 15, 2029, the five-year Treasury rate as of the most recent reset dividend determination date plus 2.771%.

All series of preferred stock have no stated maturity and redemption is solely at Regions' option, subject to regulatory approval, in whole, or in part, after the earliest redemption date or in whole, but not in part, at any time following a regulatory capital treatment event for the Series C, Series E, and Series F preferred stock.

The Board declared a total of $41 million and $50 million in cash dividends on preferred stock in the six months ended June 30, 2026 and 2025, respectively.

In the event Series C, Series E or Series F preferred shares are redeemed in full at their respective liquidation amounts, $10 million, $10 million, or $11 million in excess of the redemption amount over the carrying amount will be recognized, respectively. These excess amounts represent issuance costs that were recorded as reductions to preferred stock, including related surplus, and will be recorded as reductions to net income available to common shareholders.

31

COMMON STOCK

The Company's SCB is floored at 2.5 percent from the fourth quarter of 2025 through the third quarter of 2026. In the second quarter of 2026, the FRB released the results of its annual stress test, which indicated that Regions exceeded all minimum capital requirements. However, the FRB will not update SCB requirements based on the 2026 stress testing cycle due to outstanding regulatory proposals intended to enhance the transparency and public accountability of its annual stress tests and related models. Accordingly, Regions' SCB will remain floored at 2.5 percent through the third quarter of 2027.

On December 10, 2025, the Board authorized the repurchase of up to $3.0 billion of the Company's common stock for the period beginning January 1, 2026 and extending through December 31, 2027. As of June 30, 2026, Regions had repurchased approximately 16 million shares of common stock at a total cost of $460 million under this plan. All of these shares were immediately retired upon repurchase and therefore were not included in treasury stock.

Regions declared $0.265 per common share in cash dividends for both the first and second quarter of 2026, totaling $0.53 per common share for the first six months of 2026 as compared to $0.25 per common share for first and second quarter of 2025 totaling $0.50 per common share for the first six months of 2025.

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The following tables present the balances and activity in AOCI on a pre-tax and net of tax basis for the three and six months ended June 30, 2026 and 2025:

	Three Months Ended June 30, 2026
	Pre-tax AOCI Activity		Tax Effect (1)		Net AOCI Activity
	(In millions)
Total accumulated other comprehensive income (loss), beginning of period	$	(2,302)	$	584	$	(1,718)
Unrealized losses on securities transferred to held to maturity:
Beginning balance	$	(843)	$	213	$	(630)
Reclassification adjustments for amortization on unrealized losses on securities transferred to held for maturity (2)	26		(7)		19
Ending balance	$	(817)	$	206	$	(611)
Unrealized gains (losses) on securities available for sale:
Beginning balance	$	(726)	$	184	$	(542)
Unrealized gains (losses) arising during the period	(94)		24		(70)
Reclassification adjustments for securities (gains) losses realized in net income (3)	41		(10)		31
Change in AOCI from securities available for sale activity in the period	(53)		14		(39)
Ending balance	$	(779)	$	198	$	(581)
Unrealized gains (losses) on derivative instruments designated as cash flow hedges:
Beginning balance	$	(213)	$	54	$	(159)
Unrealized gains (losses) on derivative instruments arising during the period	(284)		72		(212)
Reclassification adjustments for (gains) losses on derivative instruments realized in net income (2)	34		(9)		25
Change in AOCI from derivative activity in the period	(250)		63		(187)
Ending balance	$	(463)	$	117	$	(346)
Defined benefit pension plans and other post employment benefit plans:
Beginning balance	$	(520)	$	133	$	(387)
Reclassification adjustments for amortization of actuarial (gains) losses and settlements realized in net income (4)	5		(2)		3
Ending balance	$	(515)	$	131	$	(384)
Total other comprehensive income (loss)	(272)		68		(204)
Total accumulated other comprehensive income (loss), end of period	$	(2,574)	$	652	$	(1,922)

32

	Three Months Ended June 30, 2025
	Pre-tax AOCI Activity		Tax Effect (1)		Net AOCI Activity
	(In millions)
Total accumulated other comprehensive income (loss), beginning of period	$	(3,053)	$	770	$	(2,283)
Unrealized losses on securities transferred to held to maturity:
Beginning balance	$	(875)	$	219	$	(656)
Unrealized gains (losses) on securities transferred from available for sale during the period	(74)		19		(55)
Reclassification adjustments for amortization on unrealized losses on securities transferred to held for maturity (2)	43		(11)		32
Change in AOCI from securities held to maturity activity in the period	(31)		8		(23)
Ending balance	$	(906)	$	227	$	(679)
Unrealized gains (losses) on securities available for sale:
Beginning balance	$	(1,322)	$	333	$	(989)
Unrealized (gains) losses on securities transferred to held to maturity during the period	74		(19)		55
Unrealized gains (losses) arising during the period	170		(43)		127
Reclassification adjustments for securities (gains) losses realized in net income (3)	1		—		1
Change in AOCI from securities available for sale activity in the period	245		(62)		183
Ending balance	$	(1,077)	$	271	$	(806)
Unrealized gains (losses) on derivative instruments designated as cash flow hedges:
Beginning balance	$	(323)	$	82	$	(241)
Unrealized gains (losses) on derivative instruments arising during the period	142		(36)		106
Reclassification adjustments for (gains) losses on derivative instruments realized in net income (2)	60		(15)		45
Change in AOCI from derivative activity in the period	202		(51)		151
Ending balance	$	(121)	$	31	$	(90)
Defined benefit pension plans and other post employment benefit plans:
Beginning balance	$	(542)	$	136	$	(406)
Reclassification adjustments for amortization of actuarial (gains) losses and settlements realized in net income (4)	6		(1)		5
Ending balance	$	(536)	$	135	$	(401)
Total other comprehensive income (loss)	422		(106)		316
Total accumulated other comprehensive income (loss), end of period	$	(2,631)	$	664	$	(1,967)

33

	Six Months Ended June 30, 2026
	Pre-tax AOCI Activity		Tax Effect and Other (1)		Net AOCI Activity
	(In millions)
Total accumulated other comprehensive income (loss), beginning of period	$	(2,057)	$	522	$	(1,535)
Unrealized losses on securities transferred to held to maturity:
Beginning balance	$	(867)	$	219	$	(648)
Reclassification adjustments for amortization on unrealized losses on securities transferred to held for maturity (2)	50		(13)		37
Ending balance	$	(817)	$	206	$	(611)
Unrealized gains (losses) on securities available for sale:
Beginning balance	$	(574)	$	146	$	(428)
Unrealized gains (losses) arising during the period	(249)		63		(186)
Reclassification adjustments for securities (gains) losses realized in net income (3)	44		(11)		33
Change in AOCI from securities available for sale activity in the period	(205)		52		(153)
Ending balance	$	(779)	$	198	$	(581)
Unrealized gains (losses) on derivative instruments designated as cash flow hedges:
Beginning balance	$	(91)	$	23	$	(68)
Unrealized gains (losses) on derivative instruments arising during the period	(442)		112		(330)
Reclassification adjustments for (gains) losses on derivative instruments realized in net income (2)	70		(18)		52
Change in AOCI from derivative activity in the period	(372)		94		(278)
Ending balance	$	(463)	$	117	$	(346)
Defined benefit pension plans and other post employment benefit plans:
Beginning balance	$	(525)	$	134	$	(391)
Reclassification adjustments for amortization of actuarial (gains) losses and settlements realized in net income (4)	10		(3)		7
Ending balance	$	(515)	$	131	$	(384)
Total other comprehensive income (loss)	(517)		130		(387)
Total accumulated other comprehensive income (loss), end of period	$	(2,574)	$	652	$	(1,922)

34

	Six Months Ended June 30, 2025
	Pre-tax AOCI Activity		Tax Effect (1)		Net AOCI Activity
	(In millions)
Total accumulated other comprehensive income (loss), beginning of period	$	(3,912)	$	984	$	(2,928)
Unrealized losses on securities transferred to held to maturity:
Beginning balance	$	(744)	$	188	$	(556)
Unrealized gains (losses) on securities transferred from available for sale during the period	(227)		57		(170)
Reclassification adjustments for amortization on unrealized losses on securities transferred to held for maturity (2)	65		(18)		47
Change in AOCI from securities held to maturity activity in the period	(162)		39		(123)
Ending balance	$	(906)	$	227	$	(679)
Unrealized gains (losses) on securities available for sale:
Beginning balance	$	(1,958)	$	490	$	(1,468)
Unrealized (gains) losses on securities transferred to held to maturity during the period	227		(57)		170
Unrealized gains (losses) arising during the period	628		(156)		472
Reclassification adjustments for securities (gains) losses realized in net income (3)	26		(6)		20
Change in AOCI from securities available for sale activity in the period	881		(219)		662
Ending balance	$	(1,077)	$	271	$	(806)
Unrealized gains (losses) on derivative instruments designated as cash flow hedges:
Beginning balance	$	(662)	$	168	$	(494)
Unrealized gains (losses) on derivative instruments arising during the period	414		(105)		309
Reclassification adjustments for (gains) losses on derivative instruments realized in net income (2)	127		(32)		95
Change in AOCI from derivative activity in the period	541		(137)		404
Ending balance	$	(121)	$	31	$	(90)
Defined benefit pension plans and other post employment benefit plans:
Beginning balance	$	(548)	$	138	$	(410)
Reclassification adjustments for amortization of actuarial (gains) losses and settlements realized in net income (4)	12		(3)		9
Ending balance	$	(536)	$	135	$	(401)
Total other comprehensive income (loss)	1,272		(320)		952
Other	9		—		9
Total accumulated other comprehensive income (loss), end of period	$	(2,631)	$	664	$	(1,967)

____

(1)The impact of all AOCI activity is shown net of the related tax impact, calculated using a nominal tax rate of approximately 25 percent.

(2)Reclassification amount is recognized in net interest income in the consolidated statements of income.

(3)Reclassification amount is recognized in securities gains (losses), net in the consolidated statements of income.

(4)Reclassification amount is recognized in other non-interest expense in the consolidated statements of income. Additionally, these accumulated other comprehensive income (loss) components are included in the computation of net periodic pension cost (see Note 8 for additional details).

35

NOTE 7. EARNINGS PER COMMON SHARE

The following table sets forth the computation of basic earnings per common share and diluted earnings per common share:

	Three Months Ended June 30				Six Months Ended June 30
	2026		2025		2026		2025
	(In millions, except per share data)
Numerator:
Net income	$	570	$	563	$	1,129	$	1,053
Preferred stock dividends and other (1)	(21)		(29)		(41)		(54)
Net income available to common shareholders	$	549	$	534	$	1,088	$	999
Denominator:
Weighted-average common shares outstanding—basic	$	854	$	898	$	858	$	902
Potential common shares	3		2		4		3
Weighted-average common shares outstanding—diluted	$	857	$	900	$	862	$	905
Earnings per common share:
Basic	$	0.64	$	0.59	$	1.27	$	1.11
Diluted	$	0.64	$	0.59	$	1.26	$	1.10

______

(1) Preferred stock dividends and other for the three and six months ended June 30, 2025 included $4 million of issuance costs associated with the redemption of Series D preferred shares in the second quarter of 2025.

The effects from the assumed exercise of restricted stock units totaling 4 million and 3 million for the three and six months ended June 30, 2026, respectively, were not included in the above computations of diluted earnings per common share because such amounts would have had an antidilutive effect on earnings per common share.

The effects from the assumed exercise of restricted stock units totaling 5 million and 4 million for the three and six months ended June 30, 2025, respectively, were not included in the above computations of diluted earnings per common share because such amounts would have had an antidilutive effect on earnings per common share.

NOTE 8. PENSION AND OTHER POSTRETIREMENT BENEFITS

Regions' defined benefit pension plans cover certain employees as the pension plans are closed to new entrants. The Company also sponsors a SERP, which is a non-qualified pension plan that provides certain senior executive officers defined benefits in relation to their compensation.

Net periodic pension (benefit) cost included the following components:

	Three Months Ended June 30
	Qualified Plans				Non-qualified Plans				Total
	2026		2025		2026		2025		2026		2025
	(In millions)
Service cost	$	4	$	5	$	—	$	—	$	4	$	5
Interest cost	19		20		—		1		19		21
Expected return on plan assets	(33)		(31)		—		—		(33)		(31)
Amortization of actuarial loss	5		6		—		—		5		6
Net periodic pension (benefit) cost	$	(5)	$	—	$	—	$	1	$	(5)	$	1

	Six Months Ended June 30
	Qualified Plans				Non-qualified Plans				Total
	2026		2025		2026		2025		2026		2025
	(In millions)
Service cost	$	9	$	10	$	—	$	—	$	9	$	10
Interest cost	37		40		1		2		38		42
Expected return on plan assets	(66)		(62)		—		—		(66)		(62)
Amortization of actuarial loss	9		11		1		1		10		12
Net periodic pension (benefit) cost	$	(11)	$	(1)	$	2	$	3	$	(9)	$	2

The service cost component of net periodic pension (benefit) cost is recorded in salaries and employee benefits on the consolidated statements of income. Components other than service cost are recorded in other non-interest expense on the consolidated statements of income.

Regions' funding policy for the qualified plans is to contribute annually at least the amount required by IRS minimum funding standards. Regions made no contributions to qualified plans during the first six months of 2026.

36

Regions also provides other postretirement benefits, such as defined benefit health care plans and life insurance plans, that cover certain retired employees. There was no material impact from other postretirement benefits on the consolidated financial statements for the six months ended June 30, 2026 or 2025.

NOTE 9. DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES

The following tables present the notional amount and estimated fair value of derivative instruments:

	June 30, 2026						December 31, 2025
	Notional Amount(1)		Estimated Fair Value				Notional Amount		Estimated Fair Value
			Gain(1)		Loss(1)				Gain(1)		Loss(1)
	(In millions)
Derivatives in cash flow hedging relationships:
Interest rate swaps	$	39,298	$	8	$	466	$	39,918	$	80	$	196
Interest rate options	3,000		10		9		2,000		2		1
Total derivatives in cash flow hedging relationships	42,298		18		475		41,918		82		197
Derivatives in fair value hedging relationships:
Interest rate swaps	10,162		81		54		8,067		23		73
Total derivatives designated as hedging instruments	$	52,460	$	99	$	529	$	49,985	$	105	$	270
Derivatives not designated as hedging instruments:
Interest rate swaps	$	95,826	$	1,071	$	1,054	$	93,891	$	1,023	$	996
Interest rate options	11,938		22		16		10,674		14		6
Interest rate futures and forward commitments	1,602		8		1		1,537		8		1
Other contracts	15,482		276		257		15,051		185		172
Total derivatives not designated as hedging instruments	$	124,848	$	1,377	$	1,328	$	121,153	$	1,230	$	1,175
Total derivatives	$	177,308	$	1,476	$	1,857	$	171,138	$	1,335	$	1,445
Total gross derivative instruments, before netting			$	1,476	$	1,857			$	1,335	$	1,445
Less: Netting adjustments (2)			1,285		1,210				1,120		964
Total gross derivative instruments, after netting			$	191	$	647			$	215	$	481

_________

(1)Derivatives in a gain position are recorded as other assets and derivatives in a loss position are recorded as other liabilities on the consolidated balance sheets. Includes accrued interest as applicable. The table reflects net notional presentation and gross asset and liability presentation to capture the economic impact of the trades.

(2)Netting adjustments represent amounts recorded to convert derivative assets and derivative liabilities from a gross basis to a net basis in accordance with applicable accounting guidance. The net basis takes into account the impact of cash collateral received or posted, legally enforceable master netting agreements, and variation margin that allow Regions to settle derivative contracts with the counterparty on a net basis and to offset the net position with the related cash collateral. Cash collateral, all of which is included as a netting adjustment, totaled $97 million and $83 million for derivative assets at June 30, 2026 and December 31, 2025, respectively. Cash collateral totaled $110 million and $123 million for derivative liabilities at June 30, 2026 and December 31, 2025, respectively.

HEDGING DERIVATIVES

Derivatives entered into to manage interest rate risk and facilitate asset/liability management strategies are designated as hedging derivatives. Derivative financial instruments that qualify in a hedging relationship are classified, based on the exposure being hedged, as either fair value hedges or cash flow hedges. See Note 1 "Summary of Significant Accounting Policies" in the Annual Report on Form 10-K for the year ended December 31, 2025 for additional information regarding accounting policies for derivatives.

CASH FLOW HEDGES

Cash flow hedge relationships mitigate exposure to the variability of future cash flows or other forecasted transactions.

Regions enters into interest rate swaps, options (e.g., floors, caps and collars), and agreements with a combination of these instruments to manage overall cash flow changes related to interest rate risk exposure on variable rate loans. The agreements effectively modify the Company’s exposure to interest rate risk by utilizing receive fixed/pay SOFR interest rate swaps and interest rate options. As of June 30, 2026, Regions was hedging its exposure to the variability in future cash flows into 2035.

As of June 30, 2026, cash flow hedges were held at a pre-tax net loss of $463 million, which includes pre-tax net losses of $18 million related to terminated cash flow floors and swaps. Regions expects to reclassify into earnings approximately $181 million in pre-tax losses due to the net receipt/payment of interest and amortization on all cash flow hedges within the next twelve months. Included in this amount is $3 million in pre-tax net loss related to the amortization of terminated cash flow floors and swaps.

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See Note 6 for the impact of cash flow hedges on the consolidated statements of income regarding the realized gains or (losses) reclassified from AOCI into net income.

FAIR VALUE HEDGES

Fair value hedge relationships mitigate exposure to the change in fair value of an asset, liability or firm commitment.

Regions enters into interest rate swap agreements to manage interest rate exposure on the Company’s fixed-rate borrowings and time deposits. These agreements involve the receipt of fixed-rate amounts in exchange for floating-rate interest payments over the life of the agreements. Regions also enters into interest rate swap agreements to manage interest rate exposure on certain of the Company's fixed-rate prepayable and non-prepayable debt securities available for sale. These agreements involve the payment of fixed-rate amounts in exchange for floating-rate interest receipts.

The following tables present the effect of fair value hedging derivative instruments on the consolidated statements of income and the total amounts for the respective line items affected:

	Three Months Ended June 30, 2026
	Interest Income		Interest Expense
	Debt securities		Long-term borrowings
	(In millions)
Total income (expense) presented in the consolidated statements of income	$	305	$	(52)
Gains/(losses) on fair value hedging relationships:
Interest rate contracts:
Amounts related to interest settlements on derivatives	$	1	$	(4)
Recognized on derivatives	54		(4)
Recognized on hedged items	(54)		4
Income (expense) recognized on fair value hedges	$	1	$	(4)

	Three Months Ended June 30, 2025
	Interest Income		Interest Expense
	Debt securities		Long-term borrowings
	(In millions)
Total income (expense) presented in the consolidated statements of income	$	286	$	(77)
Gains/(losses) on fair value hedging relationships:
Interest rate contracts:
Amounts related to interest settlements on derivatives	$	5	$	(7)
Recognized on derivatives	(33)		9
Recognized on hedged items	33		(9)
Income (expense) recognized on fair value hedges	$	5	$	(7)

	Six Months Ended June 30, 2026
	Interest Income		Interest Expense
	Debt securities		Long-term borrowings
	(In millions)
Total income (expense) presented in the consolidated statements of income	$	603	$	(104)
Gains/(losses) on fair value hedging relationships:
Interest rate contracts:
Amounts related to interest settlements on derivatives	$	2	$	(9)
Recognized on derivatives	83		(2)
Recognized on hedged items	(83)		2
Income (expense) recognized on fair value hedges	$	2	$	(9)

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	Six Months Ended June 30, 2025
	Interest Income		Interest Expense
	Debt securities		Long-term borrowings
	(In millions)
Total income (expense) presented in the consolidated statements of income	$	552	$	(162)
Gains/(losses) on fair value hedging relationships:
Interest rate contracts:
Amounts related to interest settlements on derivatives	$	8	$	(21)
Recognized on derivatives	(79)		34
Recognized on hedged items	79		(34)
Income (expense) recognized on fair value hedges	$	8	$	(21)

The following tables present the carrying amount and associated cumulative basis adjustment related to the application of hedge accounting that is included in the carrying amount of hedged assets and liabilities in fair value hedging relationships.

	June 30, 2026				December 31, 2025
	Hedged Items Currently Designated				Hedged Items Currently Designated
	Amortized Cost Basis of Assets/(Liabilities)		Hedge Accounting Basis Adjustment		Amortized Cost Basis of Assets/(Liabilities)		Hedge Accounting Basis Adjustment
	(In millions)				(In millions)
Debt securities available for sale	$	9,023	$	(81)	$	9,325	$	—
Long-term borrowings	(3,345)		54		(2,348)		52

Included in the amortized cost basis and hedge accounting basis adjustment of fair value hedges of debt securities available for sale are hedges designated under the portfolio layer method. At June 30, 2026 and December 31, 2025, the Company designated $3.5 billion and $2.5 billion, respectively, as the hedged amount from a closed portfolio of prepayable financial assets with a carrying amount of $6.3 billion and $6.1 billion, respectively. At June 30, 2026, the hedge accounting basis adjustment on active portfolio layer hedges reduced the carrying amount by $57 million.

The Company previously terminated fair value hedges related to available for sale debt securities. The terminated hedges had a remaining basis adjustment of $25 million.

DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS

The Company holds a portfolio of derivative instruments not designated as accounting hedges, therefore these derivatives are marked-to market through earnings (in capital markets income or mortgage income as appropriate) and included in other assets and other liabilities, as appropriate. See Note 1 "Summary of Significant Accounting Policies" in the Annual Report on Form 10-K for the year ended December 31, 2025 for more information regarding these derivative instruments.

The following table presents the location and amount of gain recognized in income on derivatives not designated as hedging instruments in the consolidated statements of income for the periods presented below:

	Three Months Ended June 30				Six Months Ended June 30
Derivatives Not Designated as Hedging Instruments	2026		2025		2026		2025
	(In millions)
Capital markets income:
Interest rate swaps	$	11	$	5	$	21	$	11
Interest rate options	6		13		13		21
Interest rate futures and forward commitments	4		5		7		8
Other contracts	(2)		(19)		5		(21)
Total capital markets income	19		4		46		19
Mortgage income:
Interest rate swaps	(10)		(4)		(10)		12
Interest rate options	(1)		(1)		(1)		—
Interest rate futures and forward commitments	(3)		1		—		—
Total mortgage income	(14)		(4)		(11)		12
	$	5	$	—	$	35	$	31

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CREDIT DERIVATIVES

Regions has both bought and sold credit protection in the form of participations on interest rate swaps (swap participations). These swap participations, which meet the definition of credit derivatives, were entered into in the ordinary course of business to serve the credit needs of customers. Swap participations, whereby Regions has purchased credit protection, entitle Regions to receive a payment from the counterparty if the customer fails to make payment on any amounts due to Regions upon early termination of the swap transaction and have maturities between 2026 and 2031. Swap participations, whereby Regions has sold credit protection have maturities between 2026 and 2035. For contracts where Regions sold credit protection, Regions would be required to make payment to the counterparty if the customer fails to make payment on any amounts due to the counterparty upon early termination of the swap transaction. Regions bases the current status of the prepayment/performance risk on bought and sold credit derivatives on recently issued internal risk ratings consistent with the risk management practices of unfunded commitments.

Regions’ maximum potential amount of future payments under these contracts as of June 30, 2026 was approximately $631 million. This scenario occurs if variable interest rates were at zero percent and all counterparties defaulted with zero recovery. The fair value of sold protection at June 30, 2026 and 2025 was immaterial. In transactions where Regions has sold credit protection, recourse to collateral associated with the original swap transaction is available to offset some or all of Regions’ obligation.

CONTINGENT FEATURES

Certain of Regions’ derivative instrument contracts with broker-dealers contain credit-related termination provisions and/or credit-related provisions regarding the posting of collateral, allowing those broker-dealers to terminate the contracts in the event that Regions’ and/or Regions Bank’s credit ratings falls below specified ratings from certain major credit rating agencies. The aggregate fair values of all derivative instruments with any credit-risk-related contingent features that were in a liability position totaled $51 million and $54 million at June 30, 2026 and December 31, 2025, respectively, for which Regions had posted collateral of $47 million and $51 million, respectively, in the normal course of business.

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NOTE 10. FAIR VALUE MEASUREMENTS

See Note 1 "Summary of Significant Accounting Policies" to the consolidated financial statements of the Annual Report on Form 10-K for the year ended December 31, 2025 for a description of valuation methodologies for assets and liabilities measured at fair value on a recurring and non-recurring basis. Assets and liabilities measured at fair value rarely transfer between Level 1 and Level 2 measurements. Debt securities available for sale may be periodically transferred to or from Level 3 valuation based on management’s conclusion regarding the observability of inputs used in valuing the securities. Such transfers are accounted for as if they occur at the beginning of a reporting period.

The following table presents assets and liabilities measured at estimated fair value on a recurring basis:

	June 30, 2026								December 31, 2025
	Level 1		Level 2		Level 3 (1)		Total Estimated Fair Value		Level 1		Level 2		Level 3 (1)		Total Estimated Fair Value
	(In millions)
Recurring fair value measurements
Debt securities available for sale:
U.S. Treasury securities	$	2,039	$	—	$	—	$	2,039	$	2,276	$	—	$	—	$	2,276
Federal agency securities	—		532		—		532		—		543		—		543
Obligations of states and political subdivisions	—		2		—		2		—		2		—		2
Mortgage-backed securities:
Residential agency	—		17,694		—		17,694		—		18,387		—		18,387
Commercial agency	—		6,534		—		6,534		—		5,829		—		5,829
Commercial non-agency	—		157		—		157		—		82		—		82
Corporate and other debt securities	—		428		2		430		—		439		2		441
Total debt securities available for sale	$	2,039	$	25,347	$	2	$	27,388	$	2,276	$	25,282	$	2	$	27,560
Loans held for sale	$	—	$	299	$	1	$	300	$	—	$	290	$	—	$	290
Marketable equity securities in other earning assets	$	759	$	—	$	—	$	759	$	946	$	—	$	—	$	946
Residential mortgage servicing rights	$	—	$	—	$	958	$	958	$	—	$	—	$	970	$	970
Commercial mortgage servicing rights through non-DUS agency programs	$	—	$	—	$	93	$	93	$	—	$	—	$	93	$	93
Derivative assets (2):
Interest rate swaps	$	—	$	1,160	$	—	$	1,160	$	—	$	1,126	$	—	$	1,126
Interest rate options	—		26		6		32		—		10		6		16
Interest rate futures and forward commitments	—		8		—		8		—		8		—		8
Other contracts	5		271		—		276		1		184		—		185
Total derivative assets	$	5	$	1,465	$	6	$	1,476	$	1	$	1,328	$	6	$	1,335
Derivative liabilities (2):
Interest rate swaps	$	—	$	1,574	$	—	$	1,574	$	—	$	1,265	$	—	$	1,265
Interest rate options	—		25		—		25		—		7		—		7
Interest rate futures and forward commitments	—		1		—		1		—		1		—		1
Other contracts	2		255		—		257		—		172		—		172
Total derivative liabilities	$	2	$	1,855	$	—	$	1,857	$	—	$	1,445	$	—	$	1,445
Securities sold, but not yet purchased	$	129	$	—	$	—	$	129	$	19	$	—	$	—	$	19

_________

(1)All following disclosures related to Level 3 recurring assets do not include those deemed to be immaterial.

(2)As permitted under U.S. GAAP, variation margin collateral payments made or received for derivatives that are centrally cleared are legally characterized as settled. As such, these derivative assets and derivative liabilities and the related variation margin collateral are presented on a net basis on the balance sheet.

Assets and liabilities in all levels could result in volatile and material price fluctuations. Realized and unrealized gains and losses on Level 3 assets represent only a portion of the risk to market fluctuations in Regions’ consolidated balance sheets. See Note 5 for analyses of activity related to the MSRs for three and six months ended June 30, 2026 and 2025.

RECURRING FAIR VALUE MEASUREMENTS USING SIGNIFICANT UNOBSERVABLE INPUTS

Residential mortgage servicing rights

The significant unobservable inputs used in the fair value measurement of residential MSRs are CPR and OAS. This valuation requires generating cash flow projections over multiple interest rate scenarios and discounting those cash flows at a risk-adjusted rate. Additionally, the impact of prepayments and changes in the OAS are based on a variety of underlying inputs including servicing costs. Increases or decreases to the underlying cash flow inputs will have a corresponding impact on the value of the MSR asset. The net change in unrealized gains (losses) included in earnings related to MSRs held at period end are disclosed as the changes in valuation inputs or assumptions included in the MSR rollforward table in Note 5 .

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Commercial mortgage servicing rights through non-DUS agency programs

The significant unobservable inputs used in the fair value measurement of commercial MSRs are CPR and the discount rate. This valuation requires generating cash flow projections over multiple interest rate scenarios and discounting those cash flows at a risk-adjusted rate. Additionally, the impact of prepayments and changes in the discount rate are based on a variety of underlying inputs including servicing costs. Increases or decreases to the underlying cash flow inputs will have a corresponding impact on the value of the MSR asset. The net change in unrealized gains (losses) included in earnings related to MSRs held at period end is disclosed as the changes in valuation inputs or assumptions included in the MSR rollforward table in Note 5 .

The following tables present detailed information regarding material assets and liabilities measured at fair value using significant unobservable inputs (Level 3) as of June 30, 2026 and December 31, 2025. The tables include the valuation techniques and the significant unobservable inputs utilized. The range of each significant unobservable input as well as the weighted-average within the range utilized at June 30, 2026 and December 31, 2025 are included. Following the tables are descriptions of the valuation techniques and the sensitivity of the techniques to changes in the significant unobservable inputs.

	June 30, 2026
	Level 3 Estimated Fair Value	Valuation Technique	Unobservable Input(s)	Quantitative Range of Unobservable Inputs and (Weighted-Average)
	(Dollars in millions)
Recurring fair value measurements:
Residential MSR (1)	$958	Discounted cash flow	Weighted-average CPR (%)	4.4% - 14.8% (7.4%)
			OAS (%)	4.7% - 8.0% (5.0%)
Commercial MSR through non-DUS agency programs (1)	$93	Discounted cash flow	Weighted-average CPR (%)	7.6% - 7.9% (7.9%)
			Discount rate (%)	8.0% - 10.0% (8.2%)

_______

(1)See Note 5 for additional disclosures related to assumptions used in the fair value calculation for residential and commercial mortgage servicing rights.

	December 31, 2025
	Level 3 Estimated Fair Value	Valuation Technique	Unobservable Input(s)	Quantitative Range of Unobservable Inputs and (Weighted-Average)
	(Dollars in millions)
Recurring fair value measurements:
Residential MSR (1)	$970	Discounted cash flow	Weighted-average CPR (%)	4.2% - 16.9% (7.5%)
			OAS (%)	4.7% -8.0% (5.0%)
Commercial MSR through non-DUS agency programs (1)	$93	Discounted cash flow	Weighted-average CPR (%)	6.5% - 7.6% (7.5%)
			Discount rate (%)	8.0% -10.0% (8.2%)

_______

(1)See Note 6 to the consolidated financial statements of the Annual Report on Form 10-K for the year ended December 31, 2025 for additional disclosures related to assumptions used in the fair value calculation for residential and commercial mortgage servicing rights.

FAIR VALUE OPTION

Regions has elected the fair value option for all eligible agency residential first mortgage loans originated with the intent to sell. This election allows for a more effective offset of the changes in fair values of the loans and the derivative instruments used to economically hedge them without the burden of complying with the requirements for hedge accounting. Fair values of residential first mortgage loans held for sale are based on traded market prices of similar assets where available and/or discounted cash flows at market interest rates, adjusted for securitization activities that include servicing values and market conditions, and are recorded in loans held for sale. At June 30, 2026, the aggregate fair value of these loans totaled $298 million compared to aggregate unpaid principal of $293 million. At December 31, 2025, the aggregate fair value of these loans totaled $266 million compared to aggregate unpaid principal of $259 million.

Interest income on residential first mortgage loans held for sale is recognized based on contractual rates and is reflected in interest income on loans held for sale. Net gains and losses resulting from changes in fair value of residential mortgage loans held for sale, which were recorded in mortgage income in the consolidated statements of income during the three and six months ended June 30, 2026 and 2025, were immaterial. These changes in fair value are mostly offset by economic hedging activities. An immaterial portion of these amounts was attributable to changes in instrument-specific credit risk.

NON-RECURRING FAIR VALUE MEASUREMENTS

Items measured at fair value on a non-recurring basis include loans held for sale for which the fair value option has not been elected, foreclosed property and other real estate and equity investments without a readily determinable fair value; all of which may be considered either Level 2 or Level 3 valuation measurements. Non-recurring fair value adjustments related to loans held for sale, foreclosed property and other real estate are typically a result of the application of lower of cost or fair value

42

accounting during the period. Non-recurring fair value adjustments related to equity investments without readily determinable fair values are the result of impairments or price changes from observable transactions. The balances of each of these assets, as well as the related fair value adjustments during the periods, were immaterial at both June 30, 2026 and December 31, 2025.

FINANCIAL INSTRUMENTS NOT RECORDED AT FAIR VALUE

For financial instruments not recorded at fair value, estimates of fair value are based on relevant market data and information about the instruments. The following tables present the carrying amounts and estimated fair values, as well as the level within the fair value hierarchy, of the Company’s financial instruments not recorded at fair value as of June 30, 2026 and December 31, 2025.

	June 30, 2026										December 31, 2025
	Carrying Amount		Estimated Fair Value(1)		Level 1		Level 2		Level 3		Carrying Amount		Estimated Fair Value(1)		Level 1		Level 2		Level 3
	(In millions)										(In millions)
Financial assets:
Cash and cash equivalents	$	9,926	$	9,926	$	9,926	$	—	$	—	$	10,907	$	10,907	$	10,907	$	—	$	—
Debt securities held to maturity	5,271		5,180		—		5,180		—		5,606		5,584		—		5,584		—
Loans held for sale	291		291		—		287		4		221		221		—		221		—
Loans, net of unearned income and allowance for loan losses(2)(3)	97,711		95,305		—		—		95,305		94,081		92,119		—		—		92,119
Other earning assets	815		815		—		815		—		757		757		—		757		—
Financial liabilities:
Deposits with no stated maturity(4)	117,790		117,790		—		117,790		—		117,240		117,240		—		117,240		—
Time deposits(4)	12,920		12,895		—		12,895		—		13,888		13,874		—		13,874		—
Short-term borrowings	3,000		3,000		—		3,000		—		750		750		—		750		—
Long-term borrowings	4,628		4,769		—		4,768		1		4,134		4,309		—		4,308		1
Loan commitments and letters of credit	165		165		—		—		165		164		164		—		—		164

_________

(1)Estimated fair values are consistent with an exit price concept. The assumptions used to estimate the fair values are intended to approximate those that a market participant would use in a hypothetical orderly transaction. In estimating fair value, the Company makes adjustments for estimated changes in interest rates, market liquidity and credit spreads in the periods they are deemed to have occurred.

(2)The estimated fair value of portfolio loans assumes sale of the loans to a third-party financial investor. Accordingly, the value to the Company if the loans were held to maturity is not reflected in the fair value estimate. The fair value discount on the loan portfolio's net carrying amount at June 30, 2026 was $2.4 billion or 2.5 percent. The fair value discount on the loan portfolio's net carrying amount at December 31, 2025 was $2.0 billion or 2.1 percent.

(3)At June 30, 2026, the carrying value and estimated fair value of loans include the sales-type, direct financing and leveraged leases. Prior period amounts were conformed accordingly.

(4)The fair value of non-interest-bearing deposit accounts, interest-bearing checking accounts, savings accounts, and money market accounts is the amount payable on demand at the reporting date (i.e., the carrying amount) as these instruments have an indeterminate maturity date. Fair values for time deposits are estimated by using discounted cash flow analyses, based on market spreads to benchmark rates.

NOTE 11. BUSINESS SEGMENT INFORMATION

Each of Regions’ reportable segments is a strategic business unit that serves specific needs of Regions’ customers based on the products and services provided. The Company has three reportable segments: Corporate Bank, Consumer Bank, and Wealth Management, with the remainder in Other. The segments are based on the manner in which the CODM reviews the Company's performance. The Company's CODM is the CEO, President and Chair of the Board. As a part of the CODM review, pre-tax income is utilized to allocate resources amongst segments. Additional information about the Company's reportable segments is included in Regions' Annual Report on Form 10-K for the year ended December 31, 2025.

The application and development of management reporting methodologies is a dynamic process and is subject to periodic enhancements. As these enhancements are made, financial results presented by each reportable segment may be periodically revised and the prior periods updated to reflect these enhancements. Accordingly, the prior periods may be updated to reflect these enhancements. In the first quarter of 2026, the Company changed its provision for credit losses allocation methodology from expected losses to net charge-offs. For each business segment, the provision for (benefit from) credit losses represents net charge-offs, with any portion of the provision that is greater than or less than net charge-offs reported within the Other segment.

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The following tables present financial information, including non-interest income disaggregated by major product category, for each reportable segment:

	Three Months Ended June 30, 2026
	Corporate Bank		Consumer Bank		Wealth Management		Other		Consolidated
	(In millions)
Net interest income	$	483	$	748	$	46	$	—	$	1,277
Provision for (benefit from) credit losses	51		51		—		(34)		68
Non-interest income:
Service charges on deposit accounts	66		100		1		—		167
Card and ATM fees	11		115		—		—		126
Investment management and trust fee income	—		—		97		—		97
Capital markets income	84		—		—		—		84
Mortgage income	—		33		—		—		33
Investment services fee income	—		—		53		—		53
Commercial credit fee income	28		—		—		—		28
Bank-owned life insurance	—		—		—		24		24
Securities gains (losses), net	—		—		—		(41)		(41)
Market value adjustments on employee benefit assets	—		—		—		24		24
Other miscellaneous income (loss)	53		17		2		(37)		35
Total non-interest income (loss)	242		265		153		(30)		630
Non-interest expense:
Salaries and employee benefits	143		208		76		270		697
Equipment and software expense	6		22		1		78		107
Net occupancy expense	7		56		3		7		73
Other expenses (benefits) (1)	172		346		48		(322)		244
Total non-interest expense	328		632		128		33		1,121
Income (loss) before income taxes	346		330		71		(29)		718
Income tax expense (benefit)	86		82		18		(38)		148
Net income	$	260	$	248	$	53	$	9	$	570
Average assets	$	73,240	$	36,658	$	2,288	$	49,051	$	161,237

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	Three Months Ended June 30, 2025
	Corporate Bank		Consumer Bank		Wealth Management		Other		Consolidated
	(In millions)
Net interest income	$	474	$	742	$	43	$	—	$	1,259
Provision for credit losses	56		58		—		12		126
Non-interest income (loss):
Service charges on deposit accounts	60		90		1		—		151
Card and ATM fees	11		114		—		—		125
Investment management and trust fee income	—		—		90		—		90
Capital markets income	83		—		—		—		83
Mortgage income	—		48		—		—		48
Investment services fee income	—		—		43		—		43
Commercial credit fee income	29		—		—		—		29
Bank-owned life insurance	—		—		—		24		24
Securities gains (losses), net	—		—		—		(1)		(1)
Market value adjustments on employee benefit assets	—		—		—		16		16
Other miscellaneous income (loss)	42		20		1		(25)		38
Total non-interest income	225		272		135		14		646
Non-interest expense:
Salaries and employee benefits	137		195		67		259		658
Equipment and software expense	5		24		1		74		104
Net occupancy expense	7		55		3		7		72
Other expenses (benefits) (1)	162		328		51		(302)		239
Total non-interest expense	311		602		122		38		1,073
Income (loss) before income taxes	332		354		56		(36)		706
Income tax expense (benefit)	83		88		13		(41)		143
Net income	$	249	$	266	$	43	$	5	$	563
Average assets	$	69,768	$	37,502	$	2,112	$	48,592	$	157,974

	Six Months Ended June 30, 2026
	Corporate Bank		Consumer Bank		Wealth Management		Other		Consolidated
	(In millions)
Net interest income	$	956	$	1,477	$	92	$	—	$	2,525
Provision for (benefit from) credit losses	122		108		—		$	(71)	159
Non-interest income (loss):
Service charges on deposit accounts	132		196		2		—		330
Card and ATM fees	23		220		—		—		243
Investment management and trust fee income	—		—		189		—		189
Capital markets income	167		1		—		—		168
Mortgage income	—		65		—		—		65
Investment services fee income	—		—		102		—		102
Commercial credit fee income	57		1		—		—		58
Bank-owned life insurance	—		—		—		54		54
Securities gains (losses), net	—		—		—		(44)		(44)
Market value adjustments on employee benefit assets	—		—		—		19		19
Other miscellaneous income (loss)	93		34		2		(58)		71
Total non-interest income (loss)	472		517		295		(29)		1,255
Non-interest expense:
Salaries and employee benefits	294		411		152		499		1,356
Equipment and software expense	11		46		1		157		215
Net occupancy expense	14		111		6		14		145
Other expenses (benefits) (1)	340		671		99		(637)		473
Total non-interest expense	659		1,239		258		33		2,189
Income before income taxes	647		647		129		9		1,432
Income tax expense (benefit)	162		162		32		(53)		303
Net income	$	485	$	485	$	97	$	62	$	1,129
Average assets	$	72,227	$	36,781	$	2,252	$	49,008	$	160,268

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	Six Months Ended June 30, 2025
	Corporate Bank		Consumer Bank		Wealth Management		Other		Consolidated
	(In millions)
Net interest income	$	916	$	1,451	$	86	$	—	$	2,453
Provision for credit losses	121		117		—		12		250
Non-interest income (loss):
Service charges on deposit accounts	124		186		2		—		312
Card and ATM fees	22		220		—		—		242
Investment management and trust fee income	—		—		176		—		176
Capital markets income	162		—		1		—		163
Mortgage income	—		88		—		—		88
Investment services fee income	—		—		86		—		86
Commercial credit fee income	56		—		—		—		56
Bank-owned life insurance	—		—		—		47		47
Securities gains (losses), net	—		—		—		(26)		(26)
Market value adjustments on employee benefit assets	—		—		—		13		13
Other miscellaneous income (loss)	84		39		2		(46)		79
Total non-interest income (loss)	448		533		267		(12)		1,236
Non-interest expense:
Salaries and employee benefits	282		389		137		475		1,283
Equipment and software expense	10		48		1		144		203
Net occupancy expense	14		108		6		14		142
Other expenses (benefit) (1)	315		649		100		(580)		484
Total non-interest expense	621		1,194		244		53		2,112
Income (loss) before income taxes	622		673		109		(77)		1,327
Income tax expense (benefit)	155		168		27		(76)		274
Net income (loss)	$	467	$	505	$	82	$	(1)	$	1,053
Average assets	$	69,530	$	37,595	$	2,123	$	48,180	$	157,428

_____

(1) Other expenses are primarily comprised of outside services, marketing, professional, legal and regulatory expenses, credit and checkcard expenses, and FDIC insurance assessment fees.

NOTE 12. COMMITMENTS, CONTINGENCIES AND GUARANTEES

COMMERCIAL COMMITMENTS

Regions issues off-balance sheet financial instruments in connection with lending activities. The credit risk associated with these instruments is essentially the same as that involved in extending loans to customers and is subject to Regions’ normal credit approval policies and procedures. Regions measures inherent risk associated with these instruments by recording a reserve for unfunded commitments based on an assessment of the likelihood that the guarantee will be funded and the creditworthiness of the customer or counterparty. Collateral is obtained based on management’s assessment of the creditworthiness of the customer. Credit risk is represented in unused commitments to extend credit, standby letters of credit and commercial letters of credit. Refer to Note 23 "Commitments, Contingencies and Guarantees" in the Annual Report on Form 10-K for the year ended December 31, 2025 for more information regarding these instruments.

Credit risk associated with these instruments is represented by the contractual amounts indicated in the following table:

	June 30, 2026		December 31, 2025
	(In millions)
Unused commitments to extend credit	$	70,469	$	68,237
Standby letters of credit	2,619		2,283
Commercial letters of credit	97		97
Liabilities associated with standby letters of credit	41		34
Assets associated with standby letters of credit	42		36
Reserve for unfunded credit commitments	124		130

LEGAL CONTINGENCIES

Regions and its subsidiaries are routinely subject to actual or threatened legal proceedings, including litigation and regulatory matters, arising in the ordinary course of business. Litigation matters range from individual actions involving a single plaintiff to class action lawsuits and can involve claims for substantial or indeterminate alleged damages or for injunctive or other relief. Regulatory investigations and enforcement matters may involve formal or informal proceedings and other

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inquiries initiated by various governmental agencies, law enforcement authorities, and self-regulatory organizations, and can result in fines, penalties, restitution, changes to Regions’ business practices, and other related costs, including reputational damage. At any given time, these legal proceedings are at varying stages of adjudication, arbitration, or investigation, and may relate to a variety of topics, including common law tort and contract claims, as well as statutory consumer protection-related claims, among others.

Assessment of exposure that could result from legal proceedings is complex because these proceedings often involve inherently unpredictable factors, including, but not limited to, the following: whether the proceeding is in early stages; whether damages or the amount of potential fines, penalties, and restitution are unspecified, unsupported, or uncertain; whether there is a potential for punitive or other pecuniary damages; whether the matter involves legal uncertainties, including novel issues of law; whether the matter involves multiple parties and/or jurisdictions; whether discovery or other investigation has begun or is not complete; whether material facts may be disputed or unsubstantiated; whether meaningful settlement discussions have commenced; and whether the matter involves class allegations. As a result of these complexities, Regions may be unable to develop an estimate or range of loss.

Regions evaluates legal proceedings based on information currently available, including advice of counsel. Regions establishes accruals for those matters when a loss is considered probable and the related amount is reasonably estimable. Additionally, when it is practicable and reasonably possible that it may experience losses in excess of established accruals, Regions estimates possible loss contingencies. Regions currently estimates that the aggregate amount of reasonably possible losses that it may experience, in excess of what has been accrued, is immaterial. While the final outcomes of legal proceedings are inherently unpredictable, management is currently of the opinion that the outcomes of pending and threatened matters, including the litigation matter described below, will not have a material effect on Regions’ business, consolidated financial position, results of operations or cash flows as a whole.

As available information changes, the matters for which Regions is able to estimate, as well as the estimates themselves, will be adjusted accordingly. Regions’ estimates are subject to significant judgment and uncertainties, and the matters underlying the estimates will change from time to time. In the event of unexpected future developments, it is possible that an adverse outcome in any such matter could be material to Regions’ business, consolidated financial position, results of operations, or cash flows as a whole for any particular reporting period of occurrence.

Some of Regions’ exposure with respect to loss contingencies may be offset by applicable insurance coverage. However, in determining the amounts of any accruals or estimates of possible loss contingencies, Regions does not take into account the availability of insurance coverage. To the extent that Regions has an insurance recovery, the proceeds are recorded in the period the recovery is received.

Shareholder Derivative Litigation

On December 22, 2023, a putative shareholder derivative complaint was filed in the Court of Chancery of the State of Delaware, captioned Brewer v. Turner, et al., Case No. 2023-1284-KSJM, allegedly on behalf of Regions as a nominal defendant, against a number of Regions’ current and former directors and officers (the “Derivative Complaint”). The claims in the Derivative Complaint relate to the subject matter of the previously disclosed Consent Order that Regions entered into with the CFPB in September 2022. In September 2025, the court issued an order granting in part, and denying in part, the defendants’ motion to dismiss. The defendants appealed the claims that were not dismissed to the Delaware Supreme Court, which appeal was denied on December 15, 2025. Regions’ Board of Directors has established a Special Litigation Committee (“SLC”) to investigate the claims. Based on the establishment of the SLC, the court granted an order on February 5, 2026 staying the action for 180 days, and, by order dated July 17, 2026, the court extended the stay through November 2, 2026. To date, the SLC has provided three status reports to the court, which appear on the court’s docket.

GUARANTEES

FANNIE MAE LOSS SHARE GUARANTEE

Regions sells commercial loans to Fannie Mae through the DUS lending program and through other platforms. The DUS program provides liquidity to the multi-family housing market. Regions services loans sold to Fannie Mae and is required to provide a loss share guarantee equal to one-third of the principal balance for the majority of the commercial servicing portfolio. At June 30, 2026 and December 31, 2025, the Company's DUS servicing portfolio totaled approximately $7.6 billion and $7.8 billion, respectively. Regions has additional loans sold to Fannie Mae outside of the DUS program that are also subject to a loss share guarantee and at June 30, 2026 and December 31, 2025, these serviced loans totaled approximately $891 million and $823 million, respectively. Regions' maximum quantifiable contingent liability related to all loans subject to a loss share guarantee was approximately $2.8 billion and $2.7 billion at June 30, 2026 and December 31, 2025, respectively. The Company would be liable for this amount only if all of the loans it services for Fannie Mae, for which the Company retains some risk of loss, were to default and all of the collateral underlying these loans was determined to be without value at the time of settlement. Therefore, the maximum quantifiable contingent liability is not representative of the actual loss the Company would be expected to incur. The estimated fair value of the associated loss share guarantee recorded as a liability on the Company's consolidated balance sheets was immaterial at both June 30, 2026 and December 31, 2025. Refer to Note 1 "Summary of

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Significant Accounting Policies" in the Annual Report on Form 10-K for the year ended December 31, 2025 for additional information.

NOTE 13. RECENT ACCOUNTING PRONOUNCEMENTS

The following table provides a brief description of accounting standards adopted in 2026 and those that could have a material impact to Regions’ consolidated financial statements upon adoption in the future.

Standard	Description	Required Date of Adoption	Effect on Regions' financial statements or other significant matters
Standards Adopted (or partially adopted) in 2026
ASU 2024-04 Debt with Conversion and Other Options (Subtopic 470-20) Induced Conversions of Convertible Debt Instruments	This ASU will standardize the application of induced conversion guidance in 470-20. This update focuses on how to determine whether a settlement of convertible debt at terms that differ from the original conversion terms should be accounted for under the induced conversion or extinguishment guidance.	January 1, 2026	Regions adopted this guidance as of January 1, 2026 with no material impact.
ASU 2025-05 Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets	This ASU will provide an optional practical expedient that allows entities to assume that current conditions as of the balance sheet date will not change for the asset's remaining life when developing reasonable and supportable forecasts as a part of estimating expected credit losses for current account receivable and current contract assets that arise from transactions accounted for under Topic 606, Revenue from Contracts with Customers.	January 1, 2026	Regions adopted this guidance as of January 1, 2026 with no material impact.
ASU 2025-08 Financial Instruments—Credit Losses (Topic 326): Purchased Loans	ASU 2025‑08 expands the use of the gross‑up method to certain acquired non‑PCD loans classified as purchased seasoned loans. The amendment eliminates Day 1 credit loss expense for these loans by requiring recognition of an initial allowance with a corresponding gross‑up of amortized cost. It also clarifies the criteria for identifying purchased seasoned loans, including special treatment for loans acquired in a business combination. Guidance for PCD assets remains unchanged, and the amendments narrow subsequent measurement differences between purchased seasoned loans and PCD assets. The ASU is applied prospectively.	January 1, 2027 Early adoption is permitted.	Regions adopted this guidance as of January 1, 2026 with no material impact.
Standards Not Yet Adopted
ASU 2023-06, Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative	This Update incorporates into the Codification 14 of the 27 disclosures referred by the SEC in Release No. 33‐10532, Disclosure Update and Simplification. This Update clarifies and improves the disclosure and presentation requirements of a variety of Topics in the Codification to align with the SEC's regulations.	The effective date for each amendment will be the date on which the SEC removes the related disclosure requirements from its regulations, with early adoption prohibited.	The adoption of this guidance is not likely to have a material impact. Regions will continue to evaluate through date of adoption.
ASU 2024-03, Income Statement Expense Disaggregation Disclosures (Subtopic 220-40) Disaggregation of Income Statement Expenses	This ASU will change the disclosures about a public business entity’s expenses and address requests from investors for more detailed information about the types of expenses (for example, employee compensation, depreciation, and amortization) in expense captions.	January 1, 2027 Early adoption is permitted.	Regions will continue to evaluate through date of adoption.
ASU 2025-03 Business Combinations (Topic 805) and Consolidation (Topic 810): Determining the Accounting Acquirer in the Acquisition of a Variable Interest Entity	This ASU will require entities to consider the factors in Business Combinations (ASC 805) to identify the accounting acquirer when a VIE that is a business is legally acquired primarily through the exchange of equity interests.	January 1, 2027 Early adoption is permitted.	Regions will continue to evaluate through date of adoption.
ASU 2025-06 Intangibles — Goodwill and Other — Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software	This ASU will clarify and modernize the accounting for costs related to internal-use software by removing all references to project stages and clarifying the threshold entities apply to begin capitalizing costs.	January 1, 2028 Early adoption is permitted.	Regions will continue to evaluate through date of adoption.
ASU 2025-07 Derivatives and Hedging (Topic 815) and Revenue from Contracts with Customers (Topic 606): Derivatives Scope Refinements and Scope Clarification for Share-Based Noncash Consideration from a Customer in a Revenue Contract	This ASU will refine the scope of the guidance on derivatives in Topic 815 by adding a derivative scope exception for certain contracts with underlyings that are based on the operations or activities of one of the parties to the contract. It will also clarify the applicability of Topic 606 and its interaction Topic 815 and Topic 321, Investments - Equity Securities, in the accounting for share-based noncash consideration (e.g., warrants or shares) received from a customer for the transfer of goods or services.	January 1, 2027 Early adoption is permitted.	Regions will continue to evaluate through date of adoption.

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Standard	Description	Required Date of Adoption	Effect on Regions' financial statements or other significant matters
ASU 2025-09 Derivatives and Hedging (Topic 815): Hedge Accounting Improvements	This update is for the application of hedge accounting under ASC 815 and allows entities to apply hedge accounting to a broader set of highly effective economic hedges. The amendments expand the types of hedged risks that may be aggregated within groups of forecasted transactions, broaden hedge accounting eligibility for choose‑your‑rate debt, and extend hedge accounting to certain forecasted purchases and sales of nonfinancial assets. The ASU also accommodates reference‑rate‑reform‑related differences between loan and swap markets and removes the net written option test in specific situations. In addition, it eliminates recognition and presentation mismatches arising from certain dual hedge strategies involving foreign‑currency denominated debt.	January 1, 2027 Early adoption is permitted.	Regions will continue to evaluate through date of adoption.
ASU 2025-11 Interim Reporting (Topic 270): Narrow-Scope Improvements	This ASU is designed to improve how and when entities apply existing interim reporting disclosures and select which disclosures to provide in interim reporting periods. The amendments also establish a disclosure principle to provide clarity within interim reporting that requires entities to disclose events and changes occurring after the most recent fiscal year-end that have a material impact on the entity.	January 1, 2028 Early adoption is permitted.	Regions will continue to evaluate through date of adoption.
ASU 2025-12 Codification Improvements	This update contains guidance that reflects certain technical corrections, misapplication of guidance, clarifications, and other minor improvements to GAAP on 33 issues that affect a wide variety of topics.	January 1, 2027 Early adoption is permitted.	The adoption of this guidance is not likely to have a material impact. Regions will continue to evaluate through date of adoption.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

INTRODUCTION

The following discussion and analysis is part of Regions Financial Corporation’s (“Regions” or the “Company”) Quarterly Report on Form 10-Q filed with the SEC and should be read in conjunction with the consolidated financial statements and the related notes that appear in Part I, Item 1 of this report. In addition, this discussion and analysis updates the Annual Report on Form 10-K for the year ended December 31, 2025, which was previously filed with the SEC. This financial information is presented to aid in understanding Regions’ financial position and results of operations and should be read together with the financial information contained in Regions’ Annual Report on Form 10-K. See Note 1 "Basis of Presentation" and Note 13 "Recent Accounting Pronouncements" to those consolidated financial statements for further detail. The emphasis of this discussion will be on the three and six months ended June 30, 2026 compared to the three and six months ended June 30, 2025 for the consolidated statements of income. For the consolidated balance sheets, the emphasis of this discussion will be on the balances as of June 30, 2026 compared to December 31, 2025.

This discussion and analysis contains statements that may be considered “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. See pages 6 through 8 for additional information regarding forward-looking statements.

CORPORATE PROFILE

Regions is a financial holding company headquartered in Birmingham, Alabama operating in the South, Midwest and Texas. In addition, Regions operates several offices delivering specialty capabilities in New York, Washington D.C., Chicago, Salt Lake City, and other locations nationwide. Regions provides financial solutions for a wide range of clients including retail and mortgage banking services, commercial banking services and wealth and investment services. Further, Regions and its subsidiaries deliver other specialty capabilities including merger and acquisition advisory services, capital markets solutions, home improvement lending, investment advisory services, equipment financing for commercial clients and small business customers, low income housing tax credit corporate fund syndication and asset management, financing to CRA-qualified customers, investment and insurance products, broker-dealer services to commercial clients, and others.

Regions conducts its banking operations through Regions Bank, an Alabama state-chartered commercial bank that is a member of the Federal Reserve System. At June 30, 2026, Regions operated 1,246 total branch outlets. Regions carries out its strategies and derives its profitability from three reportable business segments: Corporate Bank, Consumer Bank, and Wealth Management, with the remainder in Other. See Note 11 "Business Segment Information" to the consolidated financial statements for more information regarding Regions’ segment reporting structure.

Regions’ business strategy is focused on providing a competitive mix of products and services, delivering quality customer service, and continuing to develop and optimize distribution channels that include a branch distribution network with offices in convenient locations, as well as electronic and mobile banking.

Regions’ profitability, like that of many other financial institutions, is dependent on its ability to generate revenue from net interest income as well as non-interest income sources. Net interest income is primarily the difference between the interest income Regions receives on interest-earning assets, such as loans, leases, investment securities and cash balances held at the Federal Reserve Bank, and the interest expense Regions pays on interest-bearing liabilities, principally deposits and borrowings. Regions’ net interest income is impacted by the size and mix of its balance sheet components and the interest rate spread between interest earned on its assets and interest paid on its liabilities. Non-interest income includes fees from service charges on deposit accounts, card and ATM fees, mortgage servicing and secondary marketing, investment management and trust activities, capital markets and other customer services which Regions provides. Results of operations are also affected by the provision for credit losses and non-interest expenses such as salaries and employee benefits, equipment and software expenses, occupancy, professional, legal and regulatory expenses, FDIC insurance assessments, and other operating expenses, as well as income taxes.

Economic conditions, competition, new legislation and related rules impacting regulation of the financial services industry and the monetary and fiscal policies of the Federal government significantly affect most, if not all, financial institutions, including Regions. Lending and deposit activities and fee income generation are influenced by levels of business spending and investment, consumer income, consumer spending and savings, capital market activities, and competition among financial institutions, as well as customer preferences, interest rate conditions, inflation and prevailing market rates on competing products in Regions’ market areas.

SECOND QUARTER OVERVIEW

Economic Environment in Regions' Banking Markets

Regions utilized its internal June baseline forecast to calculate the ACL as of June 30, 2026. Refer to the "Economic forecast and qualitative adjustments" discussion in the "Allowance" section for further detail.

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Second Quarter Results

Regions reported net income available to common shareholders of $549 million or $0.64 per diluted share in the second quarter of 2026 compared to net income available to common shareholders of $534 million or $0.59 per diluted share in the second quarter of 2025.

Net interest income (taxable-equivalent basis) totaled $1.3 billion in the second quarter of 2026, which increased $20 million compared to the second quarter of 2025. The net interest margin (taxable-equivalent basis) was 3.66 percent in the second quarter of 2026, reflecting a 1 basis point increase from the same period in 2025. The increases in net interest income and margin were driven primarily by lower total funding costs that overcame a modest decline in loan yields, which were also protected by the Company's hedging program. Additionally, net interest income and margin benefitted from fixed-rate asset turnover and securities repositionings executed in 2025 and 2026. Refer to the related discussion below Table 18 "Consolidated Average Daily Balances and Yield/Rate Analysis" for further detail.

The provision for credit losses totaled $68 million in the second quarter of 2026 compared to $126 million in the second quarter of 2025. Net charge-offs totaled $102 million, or 0.42 percent of average loans, in the second quarter of 2026, compared to $113 million, or 0.47 percent of average loans, in the second quarter of 2025. This decrease reflected continued progress on previously identified portfolios of interest that were already reserved for. The allowance as a percent of total loans, net, decreased to 1.63 percent at June 30, 2026, compared to 1.76 percent at December 31, 2025 due to asset quality improvement and resolutions of previously reserved for credits. Refer to the "Allowance" section for further detail.

Non-interest income was $630 million in the second quarter of 2026 compared to $646 million in the second quarter of 2025 primarily driven by securities losses associated with repositioning transactions in the second quarter of 2026 and a decline in mortgage income. Partially offsetting the losses were increases in service charges, investment management and trust fee income, investment services fee income, and higher market valuations on employee benefit assets. See Table 23 "Non-Interest Income" for further details.

Non-interest expense was $1.1 billion in the second quarter of 2026 which increased $48 million compared to the second quarter of 2025. The increase was primarily driven by an increase in salaries and benefits and outside services expenses. These increases were partially offset by a decline in FDIC insurance expense, operational losses, and Visa class B shares expense. See Table 24 "Non-Interest Expense" for further details.

Regions' effective tax rate was 20.7 percent in the second quarter of 2026 compared to 20.3 percent in the second quarter of 2025. See the "Income Taxes" section for further details.

Capital

Regions and Regions Bank are required to comply with regulatory capital requirements established by Federal and State banking agencies, which include quantitative requirements including the CET1 ratio. At June 30, 2026, Regions’ CET1 ratio was estimated to be 10.7 percent. For additional information on Regions' regulatory capital requirements see the "Regulatory Requirements" section.

Regions is subject to supervisory stress testing conducted by the Federal Reserve and its SCB is currently floored at 2.5 percent. See Note 6 "Shareholders' Equity and Accumulated Other Comprehensive Income (Loss)" to the consolidated financial statements for further details.

The Board has authorized the repurchase of up to $3.0 billion of the Company's common stock through the fourth quarter of 2027. See Note 6 "Shareholders' Equity and Accumulated Other Comprehensive Income (Loss)" for more information.

On July 15, 2026, the Board declared a $0.035 increase, or 13 percent, to the quarterly common stock dividend to $0.30 which will be payable on October 1, 2026, to shareholders of record at close of business on September 1, 2026.

BALANCE SHEET ANALYSIS

The following sections provide expanded discussion of significant changes in certain line items in asset, liability, and shareholders' equity categories.

CASH AND CASH EQUIVALENTS

Cash and cash equivalents decreased approximately $981 million from year-end 2025 to June 30, 2026 primarily due to an increase in loans and a decrease in deposits which was partially offset by an increase in borrowed funds. See the "Loans", "Deposits, "Borrowed Funds" and "Liquidity" sections for more information.

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DEBT SECURITIES

The following table details the carrying values of debt securities, including both held to maturity and available for sale:

Table 1—Debt Securities

	June 30, 2026		December 31, 2025
	(In millions)
U.S. Treasury securities	$	2,039	$	2,276
Federal agency securities	532		543
Obligations of states and political subdivisions	2		2
Mortgage-backed securities:
Residential agency	22,699		23,624
Commercial agency	6,800		6,198
Commercial non-agency	157		82
Corporate and other debt securities	430		441
	$	32,659	$	33,166

Debt securities, which comprise approximately 23 percent of earning assets, are an important tool used to manage interest rate sensitivity and provide a primary source of liquidity for the Company, as much of the portfolio is highly liquid. Additionally, some of the debt securities portfolio is eligible to be used as collateral for funding of various types of borrowings. See the "Liquidity" and "Market Risk-Interest Rate Risk" sections for more information on these arrangements. See also Note 3 "Debt Securities" to the consolidated financial statements for additional information.

As of June 30, 2026, debt securities held to maturity and debt securities available for sale represented 16 percent and 84 percent, respectively, of the total debt securities portfolio.

Debt securities decreased $507 million from December 31, 2025 to June 30, 2026 due to the timing of securities purchases and less favorable market valuation adjustments resulting from changes in interest rates. During the second quarter of 2026, the Company executed a debt securities repositioning involving the sale of shorter-duration commercial agency MBS and U.S. Treasuries, which were replaced with longer-duration commercial and residential agency MBS and U.S. Treasuries with higher market yields. In total the Company sold approximately $900 million of debt securities available for sale and realized approximately $40 million in pre-tax losses.

The average life of the debt securities portfolio at both June 30, 2026 and December 31, 2025 was estimated to be 5.9 years, with a duration of approximately 3.9 years, inclusive of fair value hedges (see Table 20).

LOANS HELD FOR SALE

The following table presents Regions’ loans held for sale by type:

Table 2—Loans Held for Sale

	June 30, 2026		December 31, 2025
	(In millions)
Commercial	$	290	$	245
Residential first mortgage	298		266
Consumer and other performing	2		—
Non-performing	1		—
	$	591	$	511

Commercial loans held for sale include commercial mortgage loans originated for sale to third parties and commercial loans originally recorded as held for investment when management has the intent to sell. Levels of commercial loans held for sale fluctuate based on timing of sale to third parties. The levels of residential first mortgage loans held for sale that are part of the Company's mortgage originations fluctuate depending on the timing of origination and sale to third parties.

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LOANS

GENERAL

Loans, net of unearned income, represented approximately 70 percent of interest-earning assets as of June 30, 2026. The following table presents the distribution of Regions' loan portfolio by segment and class, net of unearned income:

Table 3—Loan Portfolio

	June 30, 2026		December 31, 2025
	(In millions, net of unearned income)
Commercial and industrial	$	51,841	$	48,790
Commercial real estate mortgage—owner-occupied	5,127		4,845
Commercial real estate construction—owner-occupied	267		263
Total commercial	57,235		53,898
Commercial investor real estate mortgage	7,896		7,172
Commercial investor real estate construction	2,073		1,934
Total investor real estate	9,969		9,106
Residential first mortgage	19,498		19,765
Home equity lines	3,241		3,232
Home equity loans	2,263		2,324
Consumer credit card	1,498		1,519
Other consumer	5,496		5,793
Total consumer	31,996		32,633
	$	99,200	$	95,637

PORTFOLIO CHARACTERISTICS

Loans, net of unearned income, increased $3.6 billion from year-end 2025 due to an increase across all commercial and investor real estate loan classes as discussed below. These increases were partially offset by a slight decline in consumer loans. Regions manages loan growth with a focus on risk management and risk-adjusted return on capital.

The following sections describe the composition of the portfolio segments and classes disclosed in Table 3, explain changes in balances from year-end 2025 and highlight the related risk characteristics. Regions believes that its loan portfolio is well diversified by product, client, and geography throughout its footprint. However, the loan portfolio may be exposed to certain concentrations of credit risk which exist in relation to individual borrowers or groups of borrowers, certain types of collateral, certain types of industries, and certain loan products. See Note 4 "Loans and the Allowance for Credit Losses" to the consolidated financial statements for additional discussion.

Commercial

Over half of the Company’s total loans are included in the commercial portfolio segment. These balances are spread across numerous industries, as noted in Table 4. The Company manages the related risks to this portfolio by setting certain lending limits for each significant industry. The commercial portfolio segment includes commercial and industrial loans for use in customers' normal business operations to finance working capital needs, equipment purchases, expansion projects and acquisitions. See the "Portfolio Characteristics" section in Regions' Annual Report on Form 10-K for the year ended December 31, 2025 for more information on details surrounding the commercial portfolio segment and underwriting criteria, underwriting for owner-occupied real estate and real estate construction and real estate appraisals for commercial and IRE loans.

Commercial and industrial loans increased $3.1 billion since year-end 2025 driven primarily by increases in energy and utilities, manufacturing, real estate, and healthcare. Growth was driven by higher line utilization rates and new loan production. In the first six months of 2026, the increase in commercial and industrial loans was broad-based as shown in Table 4.

The commercial portfolio also includes owner-occupied commercial real estate mortgage loans to operating businesses, which are loans for long-term financing on real estate assets, and are repaid by cash generated by business operations. Owner-occupied commercial real estate construction loans are made to commercial businesses for the development of land or construction of a building where the repayment is derived from revenues generated from the business of the borrower. These owner-occupied real estate and real estate construction loans generally mature within a 10 year period and with amortization periods reflecting the longer life of the underlying collateral. Typical structure is an amortizing term loan, though construction loans are short-term, monitored, non-revolving draw facilities. These loans frequently have a covenant package combination consistent with the underwriting of commercial loans, inclusive of applicable debt service coverage, leverage, and liquidity measurements.

Investor Real Estate

Loans for real estate development are repaid through cash flows related to the operation, sale or refinance of the property. This portfolio segment includes extensions of credit to real estate developers or investors where repayment is dependent on the

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sale of real estate or income generated from the real estate collateral. A portion of Regions’ IRE portfolio segment consists of loans secured by residential product types (land, single-family and condominium loans) within Regions’ markets. Additionally, this category includes loans made to finance income-producing properties such as apartment buildings, office and industrial buildings, and retail shopping centers. Total IRE loans increased $863 million in comparison to year-end 2025 balances due to increases in fundings to previously approved projects and new term loans for apartments and medical office buildings. See the "Investor Real Estate" section in Regions' Annual Report on Form 10-K for the year ended December 31, 2025 for more information on details surrounding the investor real estate portfolio segment and underwriting criteria.

The following tables provide detail of Regions' commercial and IRE lending balances in selected industries.

Table 4—Commercial and Investor Real Estate Industry Exposure

	June 30, 2026								December 31, 2025 (3)
	Loans		Unfunded Commitments		Total Exposure		Percent of Balance		Loans		Unfunded Commitments		Total Exposure		Percent of Balance
	(In millions)								(In millions)
Commercial:
Administrative, support, waste and repair	$	1,199	$	825	$	2,024	1.8	%	$	1,150	$	790	$	1,940	1.8	%
Agriculture	170		123		293		0.3	%	190		119		309		0.4	%
Educational services	2,946		737		3,683		3.3	%	3,055		649		3,704		3.5	%
Energy	1,832		4,392		6,224		5.6	%	1,389		4,129		5,518		5.2	%
Financial services	9,135		10,647		19,782		17.7	%	8,499		9,811		18,310		17.3	%
Government and public sector	3,819		507		4,326		3.9	%	3,427		500		3,927		3.7	%
Healthcare	3,507		2,851		6,358		5.7	%	3,077		2,664		5,741		5.4	%
Information	1,736		1,280		3,016		2.7	%	1,857		1,275		3,132		3.0	%
Manufacturing	5,507		4,969		10,476		9.4	%	4,897		5,328		10,225		9.7	%
Professional, scientific and technical services	1,948		1,612		3,560		3.2	%	1,730		1,742		3,472		3.3	%
Real estate (1)	9,261		9,758		19,019		17.1	%	8,883		9,393		18,276		17.3	%
Religious, leisure, personal and non-profit services	1,845		1,045		2,890		2.6	%	1,703		1,068		2,771		2.6	%
Restaurant, accommodation and lodging	1,232		364		1,596		1.4	%	1,235		351		1,586		1.5	%
Retail trade	2,447		2,168		4,615		4.1	%	2,237		2,216		4,453		4.2	%
Transportation and warehousing	3,544		2,046		5,590		5.0	%	3,497		1,813		5,310		5.0	%
Utilities	2,591		3,952		6,543		5.9	%	2,290		3,800		6,090		5.8	%
Wholesale goods	4,575		3,646		8,221		7.4	%	4,529		3,551		8,080		7.6	%
Other (2)	(59)		3,320		3,261		2.9	%	253		2,608		2,861		2.7	%
Total commercial	$	57,235	$	54,242	$	111,477	100.0	%	$	53,898	$	51,807	$	105,705	100.0	%
Investor real estate:
Hotel	$	175	$	5	$	180	1.4	%	$	151	$	8	$	159	1.3	%
Industrial	819		166		985		7.6	%	910		183		1,093		8.9	%
Land	122		26		148		1.1	%	114		13		127		1.0	%
Multi-family	4,637		1,263		5,900		45.8	%	4,103		1,435		5,538		45.3	%
Office	889		14		903		7.0	%	1,008		29		1,037		8.5	%
Retail	362		61		423		3.3	%	289		66		355		2.9	%
Single-family/condo	625		432		1,057		8.2	%	617		506		1,123		9.2	%
Data center	581		318		899		7.0	%	421		312		733		6.0	%
Self storage	3		—		3		—	%	41		3		44		0.4	%
Medical office building	522		177		699		5.5	%	183		142		325		2.7	%
Other (2)	1,234		447		1,681		13.1	%	1,269		413		1,682		13.8	%
Total investor real estate	$	9,969	$	2,909	$	12,878	100.0	%	$	9,106	$	3,110	$	12,216	100.0	%

_______

(1)"Real estate" includes REITs, which are unsecured commercial and industrial products that are real estate related. This portfolio is well diversified, generally has low leverage with strong access to liquidity, and the REITs included in this portfolio are primarily investment or near investment grade.

(2)"Other" contains balances related to non-classifiable and invalid business industry codes offset by payments in process and fee accounts that are not available at the loan level.

(3)As customers' businesses evolve (e.g. up or down the vertical manufacturing chain), Regions may need to change the assigned business industry code used to define the customer relationship. When these changes occur, Regions does not recast the customer history for prior periods into the new classification because the business industry code used in the prior period was deemed appropriate. As a result, year over year changes may be impacted.

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The Company's total non-owner-occupied commercial real estate lending consists of both unsecured commercial and industrial loans that are real estate related (including REITs) and investor real estate loans and are considered to be well diversified across property types. The following tables provide detail of these loans:

Table 5— Unsecured Commercial Real Estate and Investor Real Estate Exposure

	June 30, 2026				December 31, 2025
	Loan Balance		Percent of Total (1)		Loan Balance		Percent of Total (1)
	(In millions)
Residential homebuilders	$	1,254	7.4	%	$	1,066	6.8	%
Apartments	5,353		31.7	%	4,682		29.7	%
Industrial	2,250		13.3	%	2,347		14.9	%
Data center	679		4.0	%	502		3.2	%
Diversified	1,328		7.9	%	1,831		11.6	%
Business offices	858		5.1	%	1,020		6.4	%
Residential land	79		0.5	%	70		0.4	%
Retail	1,293		7.6	%	1,188		7.5	%
Healthcare	1,391		8.2	%	1,086		6.9	%
Hotel	786		4.6	%	737		4.7	%
Commercial land	43		0.3	%	44		0.3	%
Self Storage	303		1.8	%	310		2.0	%
Medical office building	595		3.5	%	207		1.3	%
Other	700		4.1	%	679		4.3	%
Total (2)	$	16,912	100.0	%	$	15,769	100.0	%

_______

(1)Amounts calculated based on whole dollar values.

(2)Owner-occupied commercial real estate is not included as the principal source of repayment is individual businesses, which more closely aligns with the commercial portfolio credit performance.

Portfolios that are experiencing higher risk due to conditions such as inflationary pressures, higher interest rates, and adverse underlying market fundamentals (identified as portfolios of interest) include business offices and trucking (included within transportation and warehousing) at June 30, 2026 within Table 4 above.

While the business offices portfolio remains a portfolio of interest, credit quality is improving. The office portfolio totaled $858 million and represented 0.9 percent of total loans at June 30, 2026, declining from $1.0 billion and 1.1 percent of loans at December 31, 2025. The office portfolio included non-performing loans of $121 million and had associated charge-offs of $1 million in the six months ended June 30, 2026. Approximately 99 percent of the office portfolio was secured, with approximately 62 percent of secured balances located in the South region of the U.S, of which 87 percent were Class A properties. Approximately 60 percent of the office portfolio will mature in the next 12 months. Additionally, the IRE office portfolio had a weighted-average LTV of approximately 64 percent at June 30, 2026, based upon appraisal at origination or most recent received, and a stressed weighted-average LTV of approximately 84 percent as of April 7, 2026, based upon GreenStreet's Commercial Property Price Index. While the office portfolio remains stressed, well-located, highly amenitized properties are observing improvements to property fundamentals. No new loan originations are being contemplated in this portfolio.

The trucking portfolio remains a portfolio of interest as trucking companies have been working through one of the most prolonged downturns in the U.S. domestic freight market. While the freight cycle has improved and spot-market fundamentals are strong, the industry remains vulnerable to economic uncertainty. The trucking portfolio totaled $1.1 billion and represented 1.1 percent of total loans at June 30, 2026, declining from $1.2 billion and 1.3 percent of loans at December 31, 2025. The trucking portfolio included non-performing loans of $45 million and had associated charge-offs of $29 million in the six months ended June 30, 2026. New originations in the sector have been curtailed and those that occur are either secured or targeted towards larger companies.

Residential First Mortgage

Residential first mortgage loans represent loans to consumers to finance a residence. These loans are typically financed over a 15 to 30 year term and, in most cases, are extended to borrowers to finance their primary residence. Total residential first mortgage loans decreased $267 million in comparison to year-end 2025 balances as payoffs and paydowns outpaced production.

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Home Equity Lines

Home equity lines are secured by a first or second mortgage on the borrower's residence and allow customers to borrow against the equity in their homes. Substantially all of this portfolio was originated through Regions' branch network. See the "Portfolio Characteristics" section in Regions' Annual Report on Form 10-K for the year ended December 31, 2025 for more information on home equity line draw and repayment structures.

The following table presents information regarding the future principal payment reset dates for the Company's home equity lines of credit as of June 30, 2026. The balances presented are based on maturity date for lines with a balloon payment and draw period expiration date for lines that convert to a repayment period.

Table 6—Home Equity Lines of Credit - Future Principal Payment Resets

	First Lien		% of Total		Second Lien		% of Total		Total
	(Dollars in millions)
2026	$	47	1.46	%	$	51	1.55	%	$	98
2027	202		6.24	%	170		5.23	%	372
2028	201		6.21	%	132		4.05	%	333
2029	90		2.77	%	61		1.89	%	151
2030	90		2.76	%	67		2.09	%	157
2031-2035	583		18.00	%	1,170		36.09	%	1,753
2036-2040	116		3.58	%	145		4.48	%	261
Thereafter	10		0.30	%	8		0.27	%	18
Revolving Loans Converted to Amortizing	57		1.75	%	41		1.28	%	98
Total	$	1,396	43.07	%	$	1,845	56.93	%	$	3,241

Home Equity Loans

Home equity loans are also secured by a first or second mortgage on the borrower's residence, are primarily originated as amortizing loans, and allow customers to borrow against the equity in their homes. Substantially all of this portfolio was originated through Regions’ branch network.

Consumer Credit Quality Data

The Company calculates an estimate of the current value of property secured as collateral for both residential first mortgage and home equity lending products (“current LTV”). The estimate is based on home price indices compiled by a third party that is updated typically every three months. The third party data indicates trends for MSAs. Regions uses the third party valuation trends from the MSAs in the Company's footprint in its estimate. The trend data is applied to the loan portfolios taking into account the age of the most recent valuation and geographic area.

The following table presents current LTV data for components of the residential first mortgage, home equity lines and home equity loans classes of the consumer portfolio segment. Current LTV data for some loans in the portfolio is not available due to mergers and systems integrations. The amounts in the table represent the entire loan balance. For purposes of the table below, if the loan balance exceeds the current estimated collateral the entire balance is included in the “Above 100%” category, regardless of the amount of collateral available to partially offset the shortfall.

Table 7—Estimated Current Loan to Value Ranges