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RF Q3 Earnings Beat Estimates on Higher NII, Revenues Rise Y/Y
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Key Takeaways
RF posted earnings of 73 cents per share, beating the 67-cent estimate and rising from 63 cents a year ago.
NII rose 3.3% y/y to $1.30B, while service charges and wealth management income supported revenue growth.
Credit quality improved as provisions fell 35.2% y/y, but deposits declined 0.9% sequentially.
Regions Financial Corporation (RF - Free Report) has posted adjusted third-quarter 2026 earnings of 73 cents per share, beating the Zacks Consensus Estimate's earnings of 67 cents. Also, this compares favorably with earnings of 63 cents in the year-ago quarter.
Increases in net interest income (NII), service charges on deposit accounts, wealth management income and lower provisions supported RF’s results. However, higher non-interest expenses and lower mortgage income acted as a spoilsport.
The results include certain non-recurring items. After considering those, net income (GAAP basis) available to common shareholders was $611 million, up 11.5% year over year. GAAP earnings were 71 cents per share compared with 61 cents in the year-ago quarter.
Regions Financial’s Revenues & Expenses Rise
Total quarterly revenues were $1.97 billion, up 3% from the year-ago quarter. The metric missed the Zacks Consensus Estimate of $1.98 billion.
NII was $1.30 billion, up 3.3% year over year, alongside higher average loan balances and lower interest expenses on deposits.
The net interest margin improved 9 basis points year over year to 3.68%.
Non-interest income increased 2.4% year over year to $675 million. Higher service charges on deposit accounts ($171 million), wealth management income ($146 million), card and ATM fees ($126 million), capital markets income ($107 million) and lower securities losses were partially offset by lower mortgage income ($32 million) and other income.
Non-interest expenses increased 1.4% year over year to $1.12 billion. Adjusted non-interest expenses inched up 0.6% 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 professional, legal and regulatory expenses.
The efficiency ratio declined to 56.2% from 57.2% a year ago. A lower efficiency ratio indicates improving profitability.
RF Loans Rise, Deposits Decline
As of Sept. 30, 2026, total loans increased marginally on a sequential basis to $99.8 billion, supported by commercial and industrial and commercial investor real estate lending.
Total deposits were $129.5 billion, which edged down 0.9% from the previous quarter and 0.6% year over year.
Regions Financial’s Credit Quality Improves
Non-performing assets (excluding loans 90 days or more past due), as a percentage of loans, foreclosed properties and non-performing loans held for sale, decreased to 0.62% from the year-ago quarter’s 0.82%. Non-performing loans, excluding loans held for sale as a percentage of net loans, were 0.59%, down from 0.79% in the prior-year quarter.
A provision for credit losses of $68 million was recorded in the quarter, down 35.2% from the year-ago quarter.
Annualized net charge-offs, as a percentage of average loans, were 0.29% compared with 0.55% in the prior-year period.
RF’s Capital Ratios Decline
As of Sept. 30, 2026, the Common Equity Tier 1 ratio was 10.8%, down from 10.9% as of Sept. 30, 2025, whereas the Tier 1 capital ratio fell to 11.9% from 12% in the year-ago quarter.
Our Viewpoint on RF
Regions Financial’s loan growth, higher net interest income and improving credit quality supported its third-quarter financials. Growth in service charges and wealth management income also aided the results. However, declining deposit balances and higher non-interest expenses remained headwinds.
Regions Financial Corporation Price, Consensus and EPS Surprise
U.S. Bancorp (USB - Free Report) reported third-quarter 2026 earnings per share of $1.34, topping the Zacks Consensus Estimate by 1.5%. The bottom line increased 9.8% from $1.22 in the year-ago quarter.
USB’s results were supported by higher net interest income (NII), broad-based fee revenue growth and strong loan growth, while the company posted positive operating leverage of 240 basis points. The BTIG acquisition also contributed to capital markets revenue growth. However, increases in non-interest expenses and provisions for credit losses were concerning.
The PNC Financial Services Group, Inc. (PNC - Free Report) delivered adjusted earnings per share of $5.09 in the third quarter of 2026, beating the Zacks Consensus Estimate of $4.97. The bottom line increased 17% from $4.35 in the year-ago quarter.
PNC’s results reflected higher NII, solid loan and deposit growth and improved operating efficiency. However, higher expenses and increased net loan charge-offs were headwinds.
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RF Q3 Earnings Beat Estimates on Higher NII, Revenues Rise Y/Y
Key Takeaways
Regions Financial Corporation (RF - Free Report) has posted adjusted third-quarter 2026 earnings of 73 cents per share, beating the Zacks Consensus Estimate's earnings of 67 cents. Also, this compares favorably with earnings of 63 cents in the year-ago quarter.
Increases in net interest income (NII), service charges on deposit accounts, wealth management income and lower provisions supported RF’s results. However, higher non-interest expenses and lower mortgage income acted as a spoilsport.
The results include certain non-recurring items. After considering those, net income (GAAP basis) available to common shareholders was $611 million, up 11.5% year over year. GAAP earnings were 71 cents per share compared with 61 cents in the year-ago quarter.
Regions Financial’s Revenues & Expenses Rise
Total quarterly revenues were $1.97 billion, up 3% from the year-ago quarter. The metric missed the Zacks Consensus Estimate of $1.98 billion.
NII was $1.30 billion, up 3.3% year over year, alongside higher average loan balances and lower interest expenses on deposits.
The net interest margin improved 9 basis points year over year to 3.68%.
Non-interest income increased 2.4% year over year to $675 million. Higher service charges on deposit accounts ($171 million), wealth management income ($146 million), card and ATM fees ($126 million), capital markets income ($107 million) and lower securities losses were partially offset by lower mortgage income ($32 million) and other income.
Non-interest expenses increased 1.4% year over year to $1.12 billion. Adjusted non-interest expenses inched up 0.6% 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 professional, legal and regulatory expenses.
The efficiency ratio declined to 56.2% from 57.2% a year ago. A lower efficiency ratio indicates improving profitability.
RF Loans Rise, Deposits Decline
As of Sept. 30, 2026, total loans increased marginally on a sequential basis to $99.8 billion, supported by commercial and industrial and commercial investor real estate lending.
Total deposits were $129.5 billion, which edged down 0.9% from the previous quarter and 0.6% year over year.
Regions Financial’s Credit Quality Improves
Non-performing assets (excluding loans 90 days or more past due), as a percentage of loans, foreclosed properties and non-performing loans held for sale, decreased to 0.62% from the year-ago quarter’s 0.82%. Non-performing loans, excluding loans held for sale as a percentage of net loans, were 0.59%, down from 0.79% in the prior-year quarter.
A provision for credit losses of $68 million was recorded in the quarter, down 35.2% from the year-ago quarter.
Annualized net charge-offs, as a percentage of average loans, were 0.29% compared with 0.55% in the prior-year period.
RF’s Capital Ratios Decline
As of Sept. 30, 2026, the Common Equity Tier 1 ratio was 10.8%, down from 10.9% as of Sept. 30, 2025, whereas the Tier 1 capital ratio fell to 11.9% from 12% in the year-ago quarter.
Our Viewpoint on RF
Regions Financial’s loan growth, higher net interest income and improving credit quality supported its third-quarter financials. Growth in service charges and wealth management income also aided the results. However, declining deposit balances and higher non-interest expenses remained 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
U.S. Bancorp (USB - Free Report) reported third-quarter 2026 earnings per share of $1.34, topping the Zacks Consensus Estimate by 1.5%. The bottom line increased 9.8% from $1.22 in the year-ago quarter.
USB’s results were supported by higher net interest income (NII), broad-based fee revenue growth and strong loan growth, while the company posted positive operating leverage of 240 basis points. The BTIG acquisition also contributed to capital markets revenue growth. However, increases in non-interest expenses and provisions for credit losses were concerning.
The PNC Financial Services Group, Inc. (PNC - Free Report) delivered adjusted earnings per share of $5.09 in the third quarter of 2026, beating the Zacks Consensus Estimate of $4.97. The bottom line increased 17% from $4.35 in the year-ago quarter.
PNC’s results reflected higher NII, solid loan and deposit growth and improved operating efficiency. However, higher expenses and increased net loan charge-offs were headwinds.