Regions Financial Corporation

Solid Q3 earnings + consistency; strong diversified fee engine - Reported $611m GAAP net income / $0.71 EPS; $622m adjusted / $0.73 EPS. - Adjusted pretax pre-provision income: $870m; adjusted ROTCE: 22%. - Credit quality was a *relative highlight* (annualized net charge-offs: 29 bps, down 13 bps QoQ) and nonperforming loans improved. - Fee income momentum: record Capital Markets + Treasury Management revenue; Wealth management moderated vs record Q2 but stayed strong YoY.

NIM / deposit funding advantage holding up; Q4 NII outlook - Net interest income up 2% QoQ; NIM up 2 bps to 3.68%. - Interest-bearing deposit costs +1 bp QoQ to 1.70%; management expects deposit beta in the mid-to-high 30% range through the rising-rate cycle (mostly neutral IR risk). - Q4 guidance: net interest income +1% to +2%; NIM ~3.70%, benefiting from lags after the September rate hike and structural repricing tailwinds (fixed asset turnover benefit expanding toward ~100–125 bps in Q4). - Good vs bad: “good” is stable betas and NIM; “bad/sensitivity risk” is that the rate curve and deposit repricing timing can still swing results quarter-to-quarter (they explicitly note timing/hedging matters).

Growth expectations: loans low-single digit, deposits modest; consumer weak spot - Loans: modest increase; growth moderated from H1 but remains constructive; management expects full-year 2026 average loan growth: up low single digits vs. 2025. - Growth drivers: broad-based commercial lending (C&I categories including government/public sector and wholesale/financial services); production up late in the quarter (~$4bn production, +60% YoY). - Consumer loans: declined modestly—credit card + home equity offset by ongoing softness in residential mortgage and Home Improvement Finance (rate environment + muted housing activity). - Investor/real estate watch-out: new activity slowing due to cost/difficulty making multifamily economics work. - Deposits: average/ending deposits down modestly QoQ due to (1) large commercial customers using institutional investment services and (2) seasonal public funds outflows. - Despite that, they target 26 average deposits up low single digits YoY; also emphasize ~$16bn of excess commercial liquidity managed via off-balance-sheet investment solutions (can reattach to the bank if needed).