We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Will RF's Revenue Growth Trend Gain Further Momentum in 2026?
Read MoreHide Full Article
Key Takeaways
RF's 1H26 revenues rose 2.5% y/y, with NII growth providing stronger momentum.
Loan pipelines rose 15%, supporting expectations for low-single-digit loan growth in 2026.
RF expects 2026 NII growth of 2.5-4%, while fee income growth may trend toward the lower end.
Regions Financial Corporation’s (RF - Free Report) revenue trajectory has been supported by steady lending activity and a growing fee-income base. The company's total revenues saw a CAGR of 1.4% during 2022-2025. The growth momentum improved in the first half of 2026, with reported total revenues increasing 2.5% year over year to $3.78 billion.
More importantly, the underlying revenue mix improved. Net interest income (NII) increased 2.9% year over year and in the first half of 2026, supported by loan growth, fixed-rate asset repricing and disciplined deposit-cost management.
This NII momentum is likely to strengthen in the second half. Management expects 2026 NII growth of 2.5-4%, with third-quarter NII projected to rise 2% sequentially. The outlook assumes low-single-digit growth in average loans and deposits, a relatively stable yield curve, and disciplined deposit pricing. Hence, revenue growth is becoming less dependent on interest-rate moves and increasingly supported by balance-sheet expansion and asset repricing.
Loan trends provide reasonable visibility into this outlook. Average loans rose 1.5% year over year in the first half of 2026. Loan pipelines and commitments increased 15% and 7%, respectively, by the end of second-quarter 2026. The rising loan pipelines, along with the company’s broad exposure across strategic Southeastern and Midwest markets, provide a solid foundation for loan growth in the upcoming period. Management expects average loan balances to increase by the low-single digits in 2026 compared with the 2025 levels, supported by growth in commercial and real estate lending.
The fee-income outlook is more mixed. Fee income increased 1.5% year over year in the first half of 2026. Moreover, Regions Financial is focused on expanding and diversifying its business operations through investments in varied product offerings and inorganic expansion efforts. In July 2026, Regions Financial acquired Frazer Lanier Company, marking another step in the bank’s efforts to expand its fee-based capital markets platform and strengthen its presence in municipal and corporate investment banking. In 2021, the company acquired Clearsight, Sabal Capital and EnerBank USA, which diversified its revenue sources. Management expects adjusted non-interest income to increase 3-5% in 2026, though results are likely to trend toward the lower end of this range.
The consensus estimates reinforce the likelihood of second-half acceleration. Revenues are projected at $7.80 billion for 2026, up 3.6% year over year. More notably, estimated year-over-year growth rises from 3.3% in the third quarter to 5.2% in the fourth quarter.
Revenue Estimates
Image Source: Zacks Investment Research
Overall, RF’s revenue growth should gain momentum as 2026 progresses, driven primarily by stronger NII and continued loan expansion. Still, weakness in mortgage banking and uneven capital market activity could keep the acceleration measured rather than sharp.
How Are RF Peers Faring in Terms of Revenues?
Fifth Third Bancorp (FITB - Free Report) has been expanding and diversifying its revenue base through strategic acquisitions and growth in fee-based businesses. The acquisition of Comerica in February 2026 broadened its presence across 17 of the 20 fastest-growing large U.S. markets, while DTS Connex and the Eldridge partnership strengthened its commercial payments and private credit offerings. Historically, Fifth Third's non-interest income saw a three-year CAGR of 3.1% during 2022-2025, reflecting the company's continued focus on building its fee-based businesses.
Going forward, the expanded presence, broader deposit base and lending opportunities resulting from the Comerica acquisition, along with expansion in high-growth markets, are expected to support FITB's NII and overall top-line growth.
M&T Bank (MTB - Free Report) has demonstrated solid revenue growth, with total revenues witnessing a 7.8% CAGR during 2018-2025. NII and non-interest income also saw CAGRs of 7.9% and 3.9%, respectively, over the same period, with the positive trend continuing in the first half of 2026.
Going forward, higher NII, supported by loan growth and stable funding costs, along with growth in treasury management, capital markets, mortgage banking and trust services, is expected to support MTB's revenues.
RF’s Price Performance & Zacks Rank
In the past year, RF shares have rallied 8.7% compared with the industry’s 3.9% growth.
View the Zacks #1 Rank List
Image: Bigstock
Will RF's Revenue Growth Trend Gain Further Momentum in 2026?
Key Takeaways
Regions Financial Corporation’s (RF - Free Report) revenue trajectory has been supported by steady lending activity and a growing fee-income base. The company's total revenues saw a CAGR of 1.4% during 2022-2025. The growth momentum improved in the first half of 2026, with reported total revenues increasing 2.5% year over year to $3.78 billion.
More importantly, the underlying revenue mix improved. Net interest income (NII) increased 2.9% year over year and in the first half of 2026, supported by loan growth, fixed-rate asset repricing and disciplined deposit-cost management.
This NII momentum is likely to strengthen in the second half. Management expects 2026 NII growth of 2.5-4%, with third-quarter NII projected to rise 2% sequentially. The outlook assumes low-single-digit growth in average loans and deposits, a relatively stable yield curve, and disciplined deposit pricing. Hence, revenue growth is becoming less dependent on interest-rate moves and increasingly supported by balance-sheet expansion and asset repricing.
Loan trends provide reasonable visibility into this outlook. Average loans rose 1.5% year over year in the first half of 2026. Loan pipelines and commitments increased 15% and 7%, respectively, by the end of second-quarter 2026. The rising loan pipelines, along with the company’s broad exposure across strategic Southeastern and Midwest markets, provide a solid foundation for loan growth in the upcoming period. Management expects average loan balances to increase by the low-single digits in 2026 compared with the 2025 levels, supported by growth in commercial and real estate lending.
The fee-income outlook is more mixed. Fee income increased 1.5% year over year in the first half of 2026. Moreover, Regions Financial is focused on expanding and diversifying its business operations through investments in varied product offerings and inorganic expansion efforts. In July 2026, Regions Financial acquired Frazer Lanier Company, marking another step in the bank’s efforts to expand its fee-based capital markets platform and strengthen its presence in municipal and corporate investment banking. In 2021, the company acquired Clearsight, Sabal Capital and EnerBank USA, which diversified its revenue sources. Management expects adjusted non-interest income to increase 3-5% in 2026, though results are likely to trend toward the lower end of this range.
The consensus estimates reinforce the likelihood of second-half acceleration. Revenues are projected at $7.80 billion for 2026, up 3.6% year over year. More notably, estimated year-over-year growth rises from 3.3% in the third quarter to 5.2% in the fourth quarter.
Revenue Estimates
Image Source: Zacks Investment Research
Overall, RF’s revenue growth should gain momentum as 2026 progresses, driven primarily by stronger NII and continued loan expansion. Still, weakness in mortgage banking and uneven capital market activity could keep the acceleration measured rather than sharp.
How Are RF Peers Faring in Terms of Revenues?
Fifth Third Bancorp (FITB - Free Report) has been expanding and diversifying its revenue base through strategic acquisitions and growth in fee-based businesses. The acquisition of Comerica in February 2026 broadened its presence across 17 of the 20 fastest-growing large U.S. markets, while DTS Connex and the Eldridge partnership strengthened its commercial payments and private credit offerings. Historically, Fifth Third's non-interest income saw a three-year CAGR of 3.1% during 2022-2025, reflecting the company's continued focus on building its fee-based businesses.
Going forward, the expanded presence, broader deposit base and lending opportunities resulting from the Comerica acquisition, along with expansion in high-growth markets, are expected to support FITB's NII and overall top-line growth.
M&T Bank (MTB - Free Report) has demonstrated solid revenue growth, with total revenues witnessing a 7.8% CAGR during 2018-2025. NII and non-interest income also saw CAGRs of 7.9% and 3.9%, respectively, over the same period, with the positive trend continuing in the first half of 2026.
Going forward, higher NII, supported by loan growth and stable funding costs, along with growth in treasury management, capital markets, mortgage banking and trust services, is expected to support MTB's revenues.
RF’s Price Performance & Zacks Rank
In the past year, RF shares have rallied 8.7% compared with the industry’s 3.9% growth.
Price Performance
Image Source: Zacks Investment Research
Currently, the company carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.