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Regions Financial Q2 Earnings Beat Estimates, NII, Expenses Up Y/Y
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Key Takeaways
RF beat Q2 earnings estimates, while total revenues missed as non-interest income declined.
RF loans rise, while provisions for credit losses fell and asset quality improved.
Regions Financial raised its quarterly dividend 13% and repurchased 2.1 million shares in the quarter.
Regions Financial Corporation (RF - Free Report) has posted adjusted second-quarter 2026 earnings of 68 cents per share, beating the Zacks Consensus Estimate of 64 cents. Also, this compares favorably with earnings of 60 cents in the year-ago quarter.
Increases in net interest income (NII), wealth management income, service charges and lower provisions supported RF’s results. However, higher non-interest expenses and securities losses played spoilsport.
The results include certain non-recurring items. After considering those, net income (GAAP basis) available to common shareholders was $549 million, up 2.8% year over year.
Regions Financial’s Revenues & Expenses Rise
Total quarterly revenues were $1.91 billion, marginally up from the year-ago quarter. The metric missed the Zacks Consensus Estimate of $1.95 billion.
NII was $1.28 billion, up 1.4% year over year, driven primarily by average loan growth, fixed-rate asset turnover and prudent management of deposit costs.
The net interest margin improved 1 basis point year over year to 3.66%.
Non-interest income declined 2.5% year over year to $630 million. Higher service charges on deposit accounts, wealth management income, card and ATM fees, and capital markets income were more than offset by lower mortgage income and higher securities losses.
Non-interest expenses increased 4.5% year over year to $1.12 billion. Adjusted non-interest expenses moved up 4% to $1.12 billion. The increase was mainly due to higher salaries and employee benefits, equipment and software expenses, net occupancy expenses, outside services, and branch consolidation, property and equipment charges.
The efficiency ratio rose to 58.3% from 56% a year ago. A higher efficiency ratio indicates decreasing profitability.
RF Loans Rise, Deposits Decline
As of June 30, 2026, total loans increased 1.3% on a sequential basis to $99.2 billion, supported by commercial and industrial activity, and broader business lending momentum.
Total deposits were $130.7 billion, which decreased 0.9% from the previous quarter.
Regions Financial’s Credit Quality Improves
Non-performing assets (excluding more than 90 days past due), as a percentage of loans, foreclosed properties and non-performing loans held for sale, decreased to 0.69% from the year-ago quarter’s 0.84%. Non-performing loans, excluding loans held for sale as a percentage of net loans, were 0.67%, down from 0.80% in the prior-year quarter.
A provision for credit losses of $68 million was recorded in the quarter, down 46% from the year-ago quarter.
Annualized net charge-offs, as a percentage of average loans, were 0.42% compared with 0.47% in the prior-year period.
RF’s Capital Ratios Decline
As of June 30, 2026, the Common Equity Tier 1 ratio was 10.7%, down from 10.8% as of June 30, 2025, whereas the Tier 1 capital ratio fell to 11.8% from 11.9% in the year-ago quarter.
Regions Financial’s Share Repurchase Update
In the reported quarter, the company repurchased 2.1 million shares for $59 million.
Earlier this week, RF declared a quarterly common stock dividend of 30 cents per share, representing a 13% increase over the previous quarter.
Our Viewpoint on RF
Regions Financial’s loan growth, solid deposit franchise and improving credit quality should continue supporting its financials. The company’s robust liquidity and prudent deposit-cost management will continue to aid its financials. However, elevated expenses are expected to remain headwinds.
Regions Financial Corporation Price, Consensus and EPS Surprise
The PNC Financial Services Group, Inc. (PNC - Free Report) delivered adjusted earnings per share of $4.85 in the second quarter of 2026, beating the Zacks Consensus Estimate of $4.51 and up from $3.85 a year ago.
PNC’s results reflected higher net interest income, strong fee income growth, an improvement in the net interest margin and solid loan growth. However, higher expenses and a decline in the deposit balance were headwinds.
Citizens Financial Group (CFG - Free Report) reported second-quarter 2026 earnings per share of $1.30, which surpassed the Zacks Consensus Estimate of $1.25. The metric rose 41% from the year-ago quarter.
CFG’s results benefited from a rise in NII and non-interest income. Growth in loan and deposit balances, and an improvement in credit quality were also encouraging. However, a rise in expenses and a weaker capital position were major headwinds.
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Regions Financial Q2 Earnings Beat Estimates, NII, Expenses Up Y/Y
Key Takeaways
Regions Financial Corporation (RF - Free Report) has posted adjusted second-quarter 2026 earnings of 68 cents per share, beating the Zacks Consensus Estimate of 64 cents. Also, this compares favorably with earnings of 60 cents in the year-ago quarter.
Increases in net interest income (NII), wealth management income, service charges and lower provisions supported RF’s results. However, higher non-interest expenses and securities losses played spoilsport.
The results include certain non-recurring items. After considering those, net income (GAAP basis) available to common shareholders was $549 million, up 2.8% year over year.
Regions Financial’s Revenues & Expenses Rise
Total quarterly revenues were $1.91 billion, marginally up from the year-ago quarter. The metric missed the Zacks Consensus Estimate of $1.95 billion.
NII was $1.28 billion, up 1.4% year over year, driven primarily by average loan growth, fixed-rate asset turnover and prudent management of deposit costs.
The net interest margin improved 1 basis point year over year to 3.66%.
Non-interest income declined 2.5% year over year to $630 million. Higher service charges on deposit accounts, wealth management income, card and ATM fees, and capital markets income were more than offset by lower mortgage income and higher securities losses.
Non-interest expenses increased 4.5% year over year to $1.12 billion. Adjusted non-interest expenses moved up 4% to $1.12 billion. The increase was mainly due to higher salaries and employee benefits, equipment and software expenses, net occupancy expenses, outside services, and branch consolidation, property and equipment charges.
The efficiency ratio rose to 58.3% from 56% a year ago. A higher efficiency ratio indicates decreasing profitability.
RF Loans Rise, Deposits Decline
As of June 30, 2026, total loans increased 1.3% on a sequential basis to $99.2 billion, supported by commercial and industrial activity, and broader business lending momentum.
Total deposits were $130.7 billion, which decreased 0.9% from the previous quarter.
Regions Financial’s Credit Quality Improves
Non-performing assets (excluding more than 90 days past due), as a percentage of loans, foreclosed properties and non-performing loans held for sale, decreased to 0.69% from the year-ago quarter’s 0.84%. Non-performing loans, excluding loans held for sale as a percentage of net loans, were 0.67%, down from 0.80% in the prior-year quarter.
A provision for credit losses of $68 million was recorded in the quarter, down 46% from the year-ago quarter.
Annualized net charge-offs, as a percentage of average loans, were 0.42% compared with 0.47% in the prior-year period.
RF’s Capital Ratios Decline
As of June 30, 2026, the Common Equity Tier 1 ratio was 10.7%, down from 10.8% as of June 30, 2025, whereas the Tier 1 capital ratio fell to 11.8% from 11.9% in the year-ago quarter.
Regions Financial’s Share Repurchase Update
In the reported quarter, the company repurchased 2.1 million shares for $59 million.
Earlier this week, RF declared a quarterly common stock dividend of 30 cents per share, representing a 13% increase over the previous quarter.
Our Viewpoint on RF
Regions Financial’s loan growth, solid deposit franchise and improving credit quality should continue supporting its financials. The company’s robust liquidity and prudent deposit-cost management will continue to aid its financials. However, elevated expenses are expected to remain headwinds.
Regions Financial Corporation Price, Consensus and EPS Surprise
Regions Financial Corporation price-consensus-eps-surprise-chart | Regions Financial Corporation Quote
Currently, Regions Financial carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Banks
The PNC Financial Services Group, Inc. (PNC - Free Report) delivered adjusted earnings per share of $4.85 in the second quarter of 2026, beating the Zacks Consensus Estimate of $4.51 and up from $3.85 a year ago.
PNC’s results reflected higher net interest income, strong fee income growth, an improvement in the net interest margin and solid loan growth. However, higher expenses and a decline in the deposit balance were headwinds.
Citizens Financial Group (CFG - Free Report) reported second-quarter 2026 earnings per share of $1.30, which surpassed the Zacks Consensus Estimate of $1.25. The metric rose 41% from the year-ago quarter.
CFG’s results benefited from a rise in NII and non-interest income. Growth in loan and deposit balances, and an improvement in credit quality were also encouraging. However, a rise in expenses and a weaker capital position were major headwinds.