"This morning, we reported strong first quarter earnings of $539 million or $0.62 per share. This represents an 11% and 15% increase, respectively, versus adjusted prior year results."
— John Turner
03Detailed Report
RF-PF
Company RF-PF
Period
Q1 2026
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 7, 2026
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Executive Summary
Regions Financial reported a solid QQ1 2026 performance highlighted by resilient profitability, modest loan growth, and a stronger balance sheet amid a higher-rate backdrop. Net income reached approximately $559 million with earnings per diluted share of about $0.62 and an return on tangible common equity (ROTCE) of 18%, underscoring the franchise’s ability to generate returns despite macro volatility. Management emphasized ongoing core transformations, including AI-driven initiatives and system upgrades, which are expected to enhance customer experience and operating leverage over time. The quarter featured a notable sequential tightening of deposit costs, a constructive view on loan pipelines, and a favorable capital trajectory driven by Basel III-related considerations and capital deployment activity. Looking ahead, Regions reaffirmed 2026 NII growth guidance of 2.5%–4% and an NIM exit in the low 3.70% range, supported by fixed asset turnover and deposit franchise momentum, with capital and liquidity management remaining a priority while regulatory changes potentially lift long-term ROE and capital efficiency.
Key Performance Indicators
Revenue
Increasing
2.33B
QoQ: 0.52% | YoY: 0.87%
Gross Profit
Increasing
1.78B
76.58% margin
QoQ: 7.35% | YoY: 9.39%
Operating Income
Increasing
714.00M
QoQ: 14.98% | YoY: 14.24%
Net Income
Increasing
559.00M
QoQ: 14.08% | YoY: 11.58%
EPS
Increasing
0.63
QoQ: 23.53% | YoY: 21.15%
Revenue Trend
Margin Analysis
Financial Highlights
- Revenue: 2.327B (YoY +0.87%, QoQ +0.52%) with Gross Profit 1.782B and gross margin 76.58%.
- Net Income: 559M; Net income margin 24.02%; EPS (diluted) 0.62.
- Operating margin: 30.68% (EBITDA 714M; EBIT margin 30.68%).
- Net interest income: NIM 3.67%; interest-bearing deposit costs declined by 13 bps to 1.69% at quarter end.
- Balance sheet: Ending loans +2% y/y; average loans +1% q/q; deposits ending +1% q/q; noninterest-bearing deposits ~30% of total deposits.
- Credit quality: NCOs 54 bps (annualized); NPL 71 bps; Allowance coverage of NPLs 238%; Allowance ratio 1.68% (down from prior period).
- Capital & liquidity: CET1 ~10.7% (pro forma Basel III CET1 ~10.4%); share repurchases $401M; common dividends $227M; liquidity robust.
- Guidance: 2026 NII growth 2.5%–4%; NIM exit target ~3.70% in low-3.70s; adjusted noninterest income +3%–5%; adjusted noninterest expense +1.5%–3.5% with positive operating leverage.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
2.33B
0.87%
0.52%
Gross Profit
1.78B
9.39%
7.35%
Operating Income
714.00M
14.24%
14.98%
Net Income
559.00M
11.58%
14.08%
EPS
0.63
21.15%
23.53%
Key Financial Ratios
Management Insights Available for Members
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