Regions Financial Corporation reported preliminary results for the quarter ended September 30, 2026, filing an 8-K on October 16, 2026. The company reported net income of $611 million and diluted earnings per share (EPS) of $0.71. On an adjusted basis, earnings were $622 million and diluted EPS was $0.73.
Comparing the current quarter to the prior year, both reported and adjusted earnings increased by 11 percent, while diluted EPS increased by 16 percent. The company also reported a return on average assets of 1.55 percent and a return on average common equity of 14.16 percent.
Financial highlights for the quarter included a net interest margin (FTE) of 3.68 percent, which the company described as top-quartile. The company noted that its low-cost deposit base delivered an interest-bearing deposit cost of 1.70 percent. Regions also reported an estimated Common Equity Tier 1 (CET1) ratio of 10.8 percent.
Loan growth was modest, with average loans increasing 0.5 percent and ending loans increasing 0.6 percent compared to the prior quarter. The growth was driven by high-quality, broad-based commercial and industrial loans. The company noted that investment grade credits represented more than half of new loan balances.
Regarding credit quality, the company reported annualized net charge-offs decreased 13 basis points quarter-over-quarter to 29 basis points. The allowance for credit losses ratio was 1.61 percent.
Non-interest income increased 7 percent on a reported basis during the quarter. The company noted that this was a record quarter for Capital Markets income, which increased 27 percent, and Treasury Management income, which also hit a record level. Commercial credit fee income increased 25 percent driven by higher standby letter of credit income and commercial unused fees.
Non-interest expense remained well controlled, with the efficiency ratio reported at 56.2 percent. The company cited an increase in professional, legal, and regulatory expenses driven primarily by higher legal settlement costs.
John Turner, Chairman, President and CEO of Regions Financial Corp., stated that the company is seeing the benefits of investments in talent, technology, and strategic growth. He noted that strong credit quality, momentum in fee-based businesses, and vibrant markets contributed to the third quarter results.
