Regions Financial Corp.

Strong Q2 earnings + solid credit normalization - Reported $549M GAAP earnings ($0.64 EPS) and $583M adjusted ($0.68 EPS). - Adjusted pre-tax, pre-provision income: $831M; adjusted return on tangible common equity: 20%. - Credit improved further: annualized net charge-offs down 12 bps to 42 bps; business criticized loans and non-performing loans both declined (criticized ratio to 5.01%, NPL ratio to 67 bps). - Portfolio exits / resolutions continue: business services criticized and NPLs down; management highlighted meaningful year-over-year declines (e.g., trucking down 25%, communications down 50%; $1.3B of outstandings across those portfolios had exited the bank).

Loan growth is healthy and expected to remain “low single digit” in 2026 - Average loans up ~2% in Q2; ending loans +1% (management views results as high quality). - Growth drivers: broad-based commercial & industrial (power/utilities, manufacturing, gov/public sector, retail trade) + investor real estate led by multifamily. - Quality: over half of growth is investment-grade; pipelines up ~15% YoY. - Outlook: expects full-year average loan growth up low single digits vs. 2025 (back half could be affected by draw timing; management cautioned not to extrapolate 1H run-rate).

Net interest income (NII) and margin outlook constructive; uncertainty mainly about rates - NII up 2% linked quarter; net interest margin (NIM) 3.66%. - Deposit cost management: interest-bearing deposit costs down 3 bps to 1.69%; management expects deposit cost largely stable in 2H if Fed funds stay constant. - Beta / rate sensitivity: deposit beta ~37% over the falling rate cycle; expects mid-30s beta and a neutral short-term rate risk position. - Forecasts: Q3 NII expected +~2%; full-year outlook: margin to exit ~3.7%; fixed-rate asset turnover + hedging expected to support gradual margin improvement.