Regions Financial Corporation

Strong third-quarter results; consistent franchise momentum - Reported $611M GAAP earnings ($0.71 EPS); $622M adjusted ($0.73 EPS). - Adjusted pretax, pre-provision income: $870M; adjusted ROTCE: 22%. - Management emphasized consistency plus continued investment in talent, technology, and products to strengthen competitiveness and service customers.

Net interest income + NIM supported by structural repricing and deposit strategy (forecast provided) - NII up 2% linked-quarter; NIM up 2 bps to 3.68%. - Interest-bearing deposit costs up only 1 bp to 1.70%, supporting margin even in an elevated rate environment. - Deposit beta expected mid-to-high 30% through the rising-rate cycle (mostly neutral interest-rate risk). - 4Q NII forecast: +1% to +2% if the next Fed hike occurs in December; 4Q NIM ~3.70%. - Key tailwinds: fixed-rate asset repricing advantage (new fixed-rate asset yields ~100 bps higher than maturities in 3Q; expected to expand to 100–125 bps in 4Q, persisting for years at current rate levels).

Deposits: core growth focus; modest outflows but underlying trends remain healthy - Average/ending deposits decreased modestly due to: - Larger commercial customers using institutional investment services (off-balance-sheet liquidity usage). - Seasonal public funds outflows. - Underlying positives: - Continued new account growth and higher average/ending commercial noninterest-bearing balances. - Retail: consumer money market balances growing; small business account openings at the highest in a decade (excluding pandemic), ~100 bps higher YoY. - Noninterest-bearing mix remains low-30% (in line with target). - Outlook: Average deposits expected +low single digits YoY in 2026.