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NII, Fee Income Growth to Aid Regions Financial's Q2 Earnings
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Key Takeaways
RF is expected to post y/y growth in second-quarter earnings and revenues on July 17 results.
RF may benefit from higher NII and non-interest income, led by capital markets and wealth fees.
RF has a positive Earnings ESP, while estimates point to higher expenses and non-performing loans.
Regions Financial Corporation (RF - Free Report) is scheduled to report second-quarter 2026 results on July 17, 2026, before the opening bell. Quarterly earnings and revenues are expected to register year-over-year growth in the to-be-reported quarter.
In the last reported quarter, the company’s results benefited from increases in non-interest income and net interest income (NII). However, higher non-interest expenses played spoilsport.
Regions Financial has a decent earnings surprise history. Its earnings have surpassed estimates in three of the trailing four quarters and missed once, with an average surprise of 1.81%.
Regions Financial Corporation Price and EPS Surprise
The Zacks Consensus Estimate for second-quarter 2026 earnings of 64 cents per share has been unchanged over the past seven days. The figure indicates a 6.7% rise from the year-ago reported number.
The consensus estimate for revenues is pegged at $1.95 billion, indicating a 2.5% increase from the prior-year reported figure.
Key Factors & Estimates for RF's Q2
NII & Loans: In the second quarter of 2026, the Federal Reserve kept interest rates unchanged and signaled a hike later this year. Thus, stabilizing funding and deposit costs are expected to have supported modest growth in RF’s NII in the quarter to be reported.
The Zacks Consensus Estimate for NII is pegged at $1.27 billion, indicating a 1.2% rise from the year-ago quarter’s actuals.
Building on the momentum seen in the first quarter, RF's lending activity is expected to have strengthened further in the to-be-reported quarter. According to the Federal Reserve’s latest data, the demand for overall loans was decent in the second quarter. Given this, the company is likely to have witnessed improvement in average interest-earning assets. The Zacks Consensus Estimate of $1.41 billion for average earning assets indicates a marginal rise from the year-ago quarter’s actual.
Non-Interest Income: After a record-setting first quarter, global deal-making activity moderated amid geopolitical uncertainty, persistent valuation gaps, slowing economic growth, elevated inflation and interest rates, and a stubbornly high backlog of private equity exits. Nevertheless, strategic buyers remained active, pursuing transactions aimed at enhancing scale, strengthening resilience and improving supply-chain security in response to the challenging operating environment.
Hence, while deal value declined in the second quarter (as only a handful of big transactions dominated the space), the volume of global mergers and acquisitions (M&As) improved year over year. This is anticipated to have supported the company’s capital markets revenues.
The Zacks Consensus Estimate for capital markets income is pegged at $86.7 million, indicating a 4.5% rise from the prior-year quarter’s actual.
Though mortgage rates increased in the second quarter to the mid-6% range, they were lower than the prior-year quarter’s reported level. As such, refinancing activities and origination volume did not witness significant growth. Thus, RF’s mortgage banking income is expected to have witnessed a decline in the second quarter. The consensus estimate for mortgage income is pegged at $33.1 million, indicating a 31% fall from the prior quarter’s reported figure.
The Zacks Consensus Estimate for card and ATM fees of $124.6 million implies a slight decline from the year-ago quarter's actual.
The consensus estimate for revenues from service charges on deposit accounts of $161.8 million indicates a 7.1% rise from the prior year’s reported level.
The Zacks Consensus Estimate for wealth management income is pegged at $145.5 million, indicating a 9.4% increase from the prior-year quarter’s reported number.
Overall, the consensus estimate for total non-interest income is pinned at $656.5 million, indicating a 1.6% rise from the prior-year quarter’s reported number.
Expenses: RF’s expenses are expected to have been high in the quarter under discussion due to increases in salaries, employee benefit expenses and other expenses. Although the company has been implementing expense-management actions, its ongoing investment in technology advancement and franchise strengthening is likely to have kept the expense base elevated.
Asset Quality: Regions Financial is unlikely to have set aside a substantial amount for potential loan delinquencies, given the modest improvement in the operating environment, supported by resilient economic growth, broadly stable credit conditions and the announced ceasefire in the Middle East. However, robust lending and persistently higher inflation are likely to have weighed on provision numbers.
The Zacks Consensus Estimate for non-performing loans is pegged at $792.9 million, indicating a slight rise from the prior-year quarter's reported figure.
What Our Quantitative Model Predicts for RF
Our proven model does predict an earnings beat for Regions Financial this time. The combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is the case here, as you can see below. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Earnings ESP: Regions Financial has an Earnings ESP of +0.25%.
Here are a couple of other bank stocks that you may want to consider, as our model shows that these also have the right combination of elements to post an earnings beat this time around.
The Earnings ESP for Webster Financial Corporation is +3.46% and it carries a Zacks Rank #2 at present.
The company is slated to report second-quarter 2026 results on July 21, 2026. Over the past seven days, the Zacks Consensus Estimate for WBS's quarterly earnings has been unchanged at $1.61 per share.
Northern Trust Corporation (NTRS - Free Report) is scheduled to announce quarterly numbers on July 22. The company has an Earnings ESP of +0.50% and carries a Zacks Rank #2 at present.
Quarterly earnings estimates for NTRS have been revised upward to $2.68 per share over the past week.
View the Zacks #1 Rank List
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NII, Fee Income Growth to Aid Regions Financial's Q2 Earnings
Key Takeaways
Regions Financial Corporation (RF - Free Report) is scheduled to report second-quarter 2026 results on July 17, 2026, before the opening bell. Quarterly earnings and revenues are expected to register year-over-year growth in the to-be-reported quarter.
In the last reported quarter, the company’s results benefited from increases in non-interest income and net interest income (NII). However, higher non-interest expenses played spoilsport.
Regions Financial has a decent earnings surprise history. Its earnings have surpassed estimates in three of the trailing four quarters and missed once, with an average surprise of 1.81%.
Regions Financial Corporation Price and EPS Surprise
Regions Financial Corporation price-eps-surprise | Regions Financial Corporation Quote
The Zacks Consensus Estimate for second-quarter 2026 earnings of 64 cents per share has been unchanged over the past seven days. The figure indicates a 6.7% rise from the year-ago reported number.
The consensus estimate for revenues is pegged at $1.95 billion, indicating a 2.5% increase from the prior-year reported figure.
Key Factors & Estimates for RF's Q2
NII & Loans: In the second quarter of 2026, the Federal Reserve kept interest rates unchanged and signaled a hike later this year. Thus, stabilizing funding and deposit costs are expected to have supported modest growth in RF’s NII in the quarter to be reported.
The Zacks Consensus Estimate for NII is pegged at $1.27 billion, indicating a 1.2% rise from the year-ago quarter’s actuals.
Building on the momentum seen in the first quarter, RF's lending activity is expected to have strengthened further in the to-be-reported quarter. According to the Federal Reserve’s latest data, the demand for overall loans was decent in the second quarter. Given this, the company is likely to have witnessed improvement in average interest-earning assets. The Zacks Consensus Estimate of $1.41 billion for average earning assets indicates a marginal rise from the year-ago quarter’s actual.
Non-Interest Income: After a record-setting first quarter, global deal-making activity moderated amid geopolitical uncertainty, persistent valuation gaps, slowing economic growth, elevated inflation and interest rates, and a stubbornly high backlog of private equity exits. Nevertheless, strategic buyers remained active, pursuing transactions aimed at enhancing scale, strengthening resilience and improving supply-chain security in response to the challenging operating environment.
Hence, while deal value declined in the second quarter (as only a handful of big transactions dominated the space), the volume of global mergers and acquisitions (M&As) improved year over year. This is anticipated to have supported the company’s capital markets revenues.
The Zacks Consensus Estimate for capital markets income is pegged at $86.7 million, indicating a 4.5% rise from the prior-year quarter’s actual.
Though mortgage rates increased in the second quarter to the mid-6% range, they were lower than the prior-year quarter’s reported level. As such, refinancing activities and origination volume did not witness significant growth. Thus, RF’s mortgage banking income is expected to have witnessed a decline in the second quarter. The consensus estimate for mortgage income is pegged at $33.1 million, indicating a 31% fall from the prior quarter’s reported figure.
The Zacks Consensus Estimate for card and ATM fees of $124.6 million implies a slight decline from the year-ago quarter's actual.
The consensus estimate for revenues from service charges on deposit accounts of $161.8 million indicates a 7.1% rise from the prior year’s reported level.
The Zacks Consensus Estimate for wealth management income is pegged at $145.5 million, indicating a 9.4% increase from the prior-year quarter’s reported number.
Overall, the consensus estimate for total non-interest income is pinned at $656.5 million, indicating a 1.6% rise from the prior-year quarter’s reported number.
Expenses: RF’s expenses are expected to have been high in the quarter under discussion due to increases in salaries, employee benefit expenses and other expenses. Although the company has been implementing expense-management actions, its ongoing investment in technology advancement and franchise strengthening is likely to have kept the expense base elevated.
Asset Quality: Regions Financial is unlikely to have set aside a substantial amount for potential loan delinquencies, given the modest improvement in the operating environment, supported by resilient economic growth, broadly stable credit conditions and the announced ceasefire in the Middle East. However, robust lending and persistently higher inflation are likely to have weighed on provision numbers.
The Zacks Consensus Estimate for non-performing loans is pegged at $792.9 million, indicating a slight rise from the prior-year quarter's reported figure.
What Our Quantitative Model Predicts for RF
Our proven model does predict an earnings beat for Regions Financial this time. The combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is the case here, as you can see below. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Earnings ESP: Regions Financial has an Earnings ESP of +0.25%.
Zacks Rank: The company currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Bank Stocks to Consider
Here are a couple of other bank stocks that you may want to consider, as our model shows that these also have the right combination of elements to post an earnings beat this time around.
The Earnings ESP for Webster Financial Corporation is +3.46% and it carries a Zacks Rank #2 at present.
The company is slated to report second-quarter 2026 results on July 21, 2026. Over the past seven days, the Zacks Consensus Estimate for WBS's quarterly earnings has been unchanged at $1.61 per share.
Northern Trust Corporation (NTRS - Free Report) is scheduled to announce quarterly numbers on July 22. The company has an Earnings ESP of +0.50% and carries a Zacks Rank #2 at present.
Quarterly earnings estimates for NTRS have been revised upward to $2.68 per share over the past week.