Item 1. Financial Statements

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Item 1. Financial Statements

REGIONS FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS (Unaudited)




	June 30, 2025		December 31, 2024
	(In millions, except per share data)
Assets
Cash and due from banks	$	3,245	$	2,893
Interest-bearing deposits in other banks	7,930		7,819

Debt securities held to maturity (estimated fair value of $5,814 and $4,226, respectively)	5,972		4,427
Debt securities available for sale (amortized cost of $27,411 and $28,183, respectively)	26,333		26,224
Loans held for sale (includes $286 and $234 measured at fair value, respectively)	594		594
Loans, net of unearned income	96,723		96,727
Allowance for loan losses	(1,612)		(1,613)
Net loans	95,111		95,114
Other earning assets	1,682		1,616
Premises, equipment and software, net	1,755		1,673
Interest receivable	574		572
Goodwill	5,733		5,733
Residential mortgage servicing rights at fair value	988		1,007
Other identifiable intangible assets, net	153		169
Other assets	9,136		9,461
Total assets	$	159,206	$	157,302
Liabilities and Equity
Deposits:
Non-interest-bearing	$	40,209	$	39,138
Interest-bearing	90,710		88,465
Total deposits	130,919		127,603
Borrowed funds:



Short-term borrowings	—		500
Long-term borrowings	5,279		5,993
Total borrowed funds	5,279		6,493
Other liabilities	4,302		5,296
Total liabilities	140,500		139,392
Equity:
Preferred stock, authorized 10 million shares, par value $1.00 per share:
Non-cumulative perpetual, including related surplus, net of issuance costs; issued—1,400,000 shares and 1,403,500, respectively	1,369		1,715
Common stock, authorized 3 billion shares, par value $0.01 per share:
Issued including treasury stock—934,498,116 and 949,510,334 shares, respectively	9		9
Additional paid-in capital	11,017		11,394
Retained earnings	9,609		9,060
Treasury stock, at cost— 41,032,676 shares	(1,371)		(1,371)
Accumulated other comprehensive income (loss), net	(1,967)		(2,928)
Total shareholders’ equity	18,666		17,879
Noncontrolling interest	40		31
Total equity	18,706		17,910
Total liabilities and equity	$	159,206	$	157,302

See notes to consolidated financial statements.

REGIONS FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME (Unaudited)


	Three Months Ended June 30				Six Months Ended June 30
	2025		2024		2025		2024
	(In millions, except per share data)
Interest income on:
Loans, including fees	$	1,377	$	1,432	$	2,719	$	2,853
Debt securities	286		219		552		428
Loans held for sale	9		9		17		17
Other earning assets	112		102		221		188
Total interest income	1,784		1,762		3,509		3,486
Interest expense on:
Deposits	447		502		889		997
Short-term borrowings	1		13		5		14
Long-term borrowings	77		61		162		105
Total interest expense	525		576		1,056		1,116


Net interest income	1,259		1,186		2,453		2,370
Provision for credit losses	126		102		250		254
Net interest income after provision for credit losses	1,133		1,084		2,203		2,116
Non-interest income:
Service charges on deposit accounts	151		151		312		299
Card and ATM fees	125		120		242		236
Investment management and trust fee income	90		83		176		164
Capital markets income	83		68		163		159
Mortgage income	48		34		88		75
Securities gains (losses), net	(1)		(50)		(26)		(100)
Other	150		139		281		275
Total non-interest income	646		545		1,236		1,108
Non-interest expense:
Salaries and employee benefits	658		609		1,283		1,267
Equipment and software expense	104		100		203		201
Net occupancy expense	72		68		142		142
Other	239		227		484		525
Total non-interest expense	1,073		1,004		2,112		2,135
Income before income taxes	706		625		1,327		1,089
Income tax expense	143		124		274		220





Net income	$	563	$	501	$	1,053	$	869

Net income available to common shareholders	$	534	$	477	$	999	$	820
Weighted-average number of shares outstanding:
Basic	898		917		902		919
Diluted	900		918		905		920



Earnings per common share:
Basic	$	0.59	$	0.52	$	1.11	$	0.89
Diluted	0.59		0.52		1.10		0.89

See notes to consolidated financial statements.

REGIONS FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)


	Three Months Ended June 30
	2025		2024
	(In millions)
Net income	$	563	$	501
Other comprehensive income (loss), net of tax:
Unrealized losses on securities transferred to held to maturity:
Unrealized losses on securities transferred from available for sale during the period (net of ($19) and zero tax effect, respectively)	(55)		—
Less: reclassification adjustments for amortization of unrealized losses on securities transferred to held to maturity (net of ($11) and zero tax effect, respectively)	(32)		(1)
Net change in unrealized losses on securities transferred to held to maturity, net of tax	(23)		1
Unrealized gains (losses) on securities available for sale:
Unrealized losses on securities transferred to held to maturity during the period (net of $19 and zero tax effect, respectively	55		—
Unrealized holding gains (losses) arising during the period (net of $43 and ($24) tax effect, respectively)	127		(73)
Less: reclassification adjustments for securities gains (losses) realized in net income (net of zero and ($12) tax effect, respectively)	(1)		(38)
Net change in unrealized gains (losses) on securities available for sale, net of tax	183		(35)
Unrealized gains (losses) on derivative instruments designated as cash flow hedges:
Unrealized holding gains (losses) on derivative instruments arising during the period (net of $36 and ($33) tax effect, respectively)	106		(97)
Less: reclassification adjustments for gains (losses) on derivative instruments realized in net income (net of ($15) and ($30) tax effect, respectively)	(45)		(86)
Net change in unrealized gains (losses) on derivative instruments, net of tax	151		(11)
Defined benefit pension plans and other post employment benefits:
Net actuarial gains (losses) arising during the period (net of zero and zero tax effect, respectively)	—		—
Less: reclassification adjustments for amortization of actuarial loss and settlements realized in net income (net of ($1) and ($2) tax effect, respectively)	(5)		(4)
Net change from defined benefit pension plans and other post employment benefits, net of tax	5		4
Other comprehensive income (loss), net of tax	316		(41)
Comprehensive income	$	879	$	460


	Six Months Ended June 30
	2025		2024
	(In millions)
Net income	$	1,053	$	869
Other comprehensive income (loss), net of tax:
Unrealized losses on securities transferred to held to maturity:
Unrealized losses on securities transferred from available for sale during the period (net of ($57) and zero tax effect, respectively)	(170)		—
Less: reclassification adjustments for amortization of unrealized losses on securities transferred to held to maturity (net of ($18) and zero tax effect, respectively)	(47)		(1)
Net change in unrealized losses on securities transferred to held to maturity, net of tax	(123)		1
Unrealized gains (losses) on securities available for sale:
Unrealized losses on securities transferred to held to maturity during the period (net of $57 and zero tax effect, respectively)	170		—
Unrealized holding gains (losses) arising during the period (net of $156 and $(105) tax effect, respectively)	472		(310)
Less: reclassification adjustments for securities gains (losses) realized in net income (net of ($6) and ($25), respectively)	(20)		(75)
Net change in unrealized gains (losses) on securities available for sale, net of tax	662		(235)
Unrealized gains (losses) on derivative instruments designated as cash flow hedges:
Unrealized holding gains (losses) on derivative instruments arising during the period (net of $105 and ($137) tax effect, respectively)	309		(400)
Less: reclassification adjustments for gains (losses) on derivative instruments realized in net income (net of ($32) and ($60) tax effect, respectively)	(95)		(173)
Net change in unrealized gains (losses) on derivative instruments, net of tax	404		(227)
Defined benefit pension plans and other post employment benefits:
Net actuarial gains (losses) arising during the period (net of zero and zero tax effect, respectively)	—		—
Less: reclassification adjustments for amortization of actuarial loss and settlements realized in net income (net of ($3) and($4) tax effect, respectively)	(9)		(8)
Net change from defined benefit pension plans and other post employment benefits, net of tax	9		8
Other comprehensive income (loss), net of tax	952		(453)
Comprehensive income	$	2,005	$	416

See notes to consolidated financial statements.

REGIONS FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (Unaudited)


	Shareholders' Equity
	Preferred Stock			Common Stock			Additional Paid-In Capital		Retained Earnings		Treasury Stock, At Cost		Accumulated Other Comprehensive Income (Loss), Net		Total		Non- controlling Interest
	Shares	Amount		Shares	Amount
	(In millions, except per share data)
BALANCE AT JANUARY 1, 2024	2	$	1,659	924	$	10	$	11,757	$	8,186	$	(1,371)	$	(2,812)	$	17,429	$	64
Cumulative effect from change in accounting guidance	—	—		—	—		—		(5)		—		—		(5)		—
Net income	—	—		—	—		—		368		—		—		368		—
Other comprehensive income (loss), net of tax	—	—		—	—		—		—		—		(412)		(412)		—
Cash dividends declared	—	—		—	—		—		(220)		—		—		(220)		—
Preferred stock dividends	—	—		—	—		—		(25)		—		—		(25)		—
Impact of common stock share repurchases	—	—		(6)	—		(102)		—		—		—		(102)		—
Impact of common stock transactions under compensation plans, net	—	—		—	—		11		—		—		—		11		—
Other	—	—		—	—		—		—		—		—		—		(30)
BALANCE AT MARCH 31, 2024	2	$	1,659	918	$	10	$	11,666	$	8,304	$	(1,371)	$	(3,224)	$	17,044	$	34

BALANCE AT APRIL 1, 2024	2	$	1,659	918	$	10	$	11,666	$	8,304	$	(1,371)	$	(3,224)	$	17,044	$	34

Net income	—	—		—	—		—		501		—		—		501		—
Other comprehensive income (loss), net of tax	—	—		—	—		—		—		—		(41)		(41)		—
Cash dividends declared	—	—		—	—		—		(220)		—		—		(220)		—
Preferred stock dividends	—	—		—	—		—		(24)		—		—		(24)		—
Impact of common stock share repurchases	—	—		(4)	—		(87)		—		—		—		(87)		—
Impact of common stock transactions under compensation plans, net	—	—		1	—		(4)		—		—		—		(4)		—
Other	—	—		—	—		—		—		—		—		—		$	(1)
BALANCE AT JUNE 30, 2024	2	$	1,659	915	$	10	$	11,575	$	8,561	$	(1,371)	$	(3,265)	$	17,169	$	33














BALANCE AT JANUARY 1, 2025	2	$	1,715	909	$	9	$	11,394	$	9,060	$	(1,371)	$	(2,928)	$	17,879	$	31

Net income	—	—		—	—		—		490		—		—		490		—
Other comprehensive income, net of tax	—	—		—	—		—		—		—		636		636		—
Cash dividends declared	—	—		—	—		—		(226)		—		—		(226)		—
Preferred stock dividends	—	—		—	—		—		(25)		—		—		(25)		—
Impact of common stock share repurchases	—	—		(10)	—		(242)		—		—		—		(242)		—
Impact of common stock transactions under compensation plans, net	—	—		—	—		9		—		—		—		9		—
Other	—	—		—	—		—		—		—		9		9		6
BALANCE AT MARCH 31, 2025	2	$	1,715	899	$	9	$	11,161	$	9,299	$	(1,371)	$	(2,283)	$	18,530	$	37

BALANCE AT APRIL 1, 2025	2	$	1,715	899	$	9	$	11,161	$	9,299	$	(1,371)	$	(2,283)	$	18,530	$	37

Net income	—	—		—	—		—		563		—		—		563		—
Other comprehensive income (loss), net of tax	—	—		—	—		—		—		—		316		316		—
Cash dividends declared	—	—		—	—		—		(224)		—		—		(224)		—
Preferred stock dividends	—	—		—	—		—		(25)		—		—		(25)		—
Redemption of Series D preferred stock	(1)	(346)		—	—		—		(4)		—		—		(350)		—
Impact of common stock share repurchases	—	—		(7)	—		(144)		—		—		—		(144)		—
Impact of common stock transactions under compensation plans, net	—	—		2	—		—		—		—		—		—		—
Other	—	—		—	—		—		—		—		—		—		3
BALANCE AT JUNE 30, 2025	1	$	1,369	894	$	9	$	11,017	$	9,609	$	(1,371)	$	(1,967)	$	18,666	$	40

See notes to consolidated financial statements.

REGIONS FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)


	Six Months Ended June 30
	2025		2024
	(In millions)
Operating activities:
Net income	$	1,053	$	869
Adjustments to reconcile net income to net cash from operating activities:
Provision for credit losses	250		254
Depreciation, amortization and accretion, net	41		89

Securities (gains) losses, net	26		100

Deferred income tax expense	17		48
Originations and purchases of loans held for sale	(2,491)		(2,813)
Proceeds from sales of loans held for sale	2,585		2,663

(Gain) loss on sale of loans, net	(23)		(25)


Net change in operating assets and liabilities:
Other earning assets	(66)		(427)
Interest receivable and other assets	611		(249)
Other liabilities	(353)		15
Other	(11)		33
Net cash from operating activities	1,639		557
Investing activities:
Proceeds from maturities of debt securities held to maturity	288		21
Proceeds from sales of debt securities available for sale	615		2,199
Proceeds from maturities of debt securities available for sale	1,558		1,480
Purchases of debt securities available for sale	(3,987)		(4,517)
Net (payments for) proceeds from bank-owned life insurance	3		7

Proceeds from sales of loans	190		26
Purchases of loans	(187)		(439)
Net change in loans	(274)		1,134
Purchases of mortgage servicing rights	(19)		(126)
Net purchases of other assets	(169)		(47)


Net cash from investing activities	(1,982)		(262)
Financing activities:
Net change in deposits	3,316		(1,172)
Net change in short-term borrowings	(500)		513
Proceeds from long-term borrowings	—		2,746
Payments on long-term borrowings	(750)		—

Cash dividends on common stock	(453)		(442)
Cash dividends on preferred stock	(50)		(49)

Payment for redemption of preferred stock	(350)		—
Repurchases of common stock	(386)		(189)
Taxes paid related to net share settlement of equity awards	(21)		(24)

Net cash from financing activities	806		1,383
Net change in cash and cash equivalents	463		1,678
Cash and cash equivalents at beginning of year	10,712		6,801
Cash and cash equivalents at end of period	$	11,175	$	8,479

See notes to consolidated financial statements.

REGIONS FINANCIAL CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 1. BASIS OF PRESENTATION

Regions Financial Corporation (“Regions” or the "Company”) provides a full range of banking and bank-related services to individual and corporate customers through its subsidiaries and branch offices located across the South, Midwest and Texas as well as delivering specialty capabilities nationwide. Regions is subject to the regulations of certain government agencies and undergoes periodic examinations by certain regulatory authorities.

The accounting and reporting policies of Regions and the methods of applying those policies that materially affect the consolidated financial statements conform with GAAP and with general financial services industry practices. The accompanying interim financial statements have been prepared in accordance with the instructions for Form 10-Q and, therefore, do not include all information and notes to the consolidated financial statements necessary for a complete presentation of financial position, results of operations, comprehensive income (loss) and cash flows in conformity with GAAP. In the opinion of management, all adjustments, consisting of normal and recurring items, necessary for the fair presentation of the consolidated financial statements have been included. These interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto in Regions’ Annual Report on Form 10-K for the year ended December 31, 2024. Regions has evaluated all subsequent events for potential recognition and disclosure through the filing date of this Form 10-Q.

During 2025, the Company adopted new accounting guidance. See Note 13 for related disclosures.

NOTE 2. VARIABLE INTEREST ENTITIES

Regions is involved in various entities that are considered to be VIEs, as defined by authoritative accounting literature. Generally, a VIE is a corporation, partnership, trust or other legal structure that either does not have equity investors with substantive voting rights or has equity investors that do not provide sufficient financial resources for the entity to support its activities. The following discusses the VIEs in which Regions has a significant interest.

Regions periodically invests in various limited partnerships that sponsor affordable housing projects and economic development projects, which then provide tax credits to Regions. These investments are funded through a combination of debt and equity. These partnerships meet the definition of a VIE and are collectively referred to as tax credit investments in the table below. Due to the nature of the management activities of the general partner, Regions is not the primary beneficiary of these partnerships. Refer to Note 1 "Summary of Significant Accounting Policies" in the Annual Report on Form 10-K for the year ended December 31, 2024 for additional details. Additionally, Regions has loans or letters of credit commitments with certain limited partnerships. The funded portion of the loans and letters of credit are classified as commercial and industrial loans or investor real estate loans as applicable in Note 4.

A summary of Regions’ tax credit investments and related loans and letters of credit, representing Regions’ maximum exposure to loss, is as follows:


	June 30, 2025		December 31, 2024
	(In millions)
Tax credit investments included in other assets	$	1,529	$	1,471
Unfunded tax credit commitments included in other liabilities	515		590
Loans and letters of credit commitments	568		663
Funded portion of loans and letters of credit commitments	302		336


	Three Months Ended June 30				Six Months Ended June 30
	2025		2024		2025		2024
	(In millions)
Tax credits and other tax benefits recognized	$	58	$	61	$	112	$	116
Tax credit amortization expense included in income tax expense	48		47		95		93

In addition to the investments discussed above, Regions also syndicates affordable housing investments. In these syndication transactions, Regions creates affordable housing funds in which a subsidiary is the general partner or managing member and sells limited partnership interests to third parties. Regions' general partner or managing member interest represents an insignificant interest in the affordable housing fund. The affordable housing funds meet the definition of a VIE. As Regions is not the primary beneficiary and does not have a significant interest, these investments are not consolidated. At June 30, 2025 and December 31, 2024, the value of Regions’ general partnership interest in affordable housing investments was immaterial.

NOTE 3. DEBT SECURITIES

The amortized cost, gross unrealized gains and losses, and estimated fair value of debt securities held to maturity and debt securities available for sale are as follows:


	June 30, 2025
			Recognized in OCI (1)						Not recognized in OCI
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Carrying Value		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
	(In millions)
Debt securities held to maturity:


Mortgage-backed securities:
Residential agency	$	6,416	$	—	$	(905)	$	5,511	$	—	$	(147)	$	5,364
Commercial agency	461		—		—		461		—		(11)		450
	$	6,877	$	—	$	(905)	$	5,972	$	—	$	(158)	$	5,814

Debt securities available for sale:
U.S. Treasury securities	$	2,166	$	9	$	(70)	$	2,105					$	2,105
Federal agency securities	491		6		(10)		487						487
Obligations of states and political subdivisions	2		—		—		2						2
Mortgage-backed securities:
Residential agency	19,384		79		(907)		18,556						18,556

Commercial agency	4,710		17		(191)		4,536						4,536
Commercial non-agency	92		—		(9)		83						83
Corporate and other debt securities	566		5		(7)		564						564


	$	27,411	$	116	$	(1,194)	$	26,333					$	26,333


	December 31, 2024
			Recognized in OCI (1)						Not recognized in OCI
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Carrying Value		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
	(In millions)
Debt securities held to maturity:


Mortgage-backed securities:
Residential agency	$	4,663	$	—	$	(743)	$	3,920	$	—	$	(186)	$	3,734
Commercial agency	507		—		—		507		—		(15)		492
	$	5,170	$	—	$	(743)	$	4,427	$	—	$	(201)	$	4,226

Debt securities available for sale:
U.S. Treasury securities	$	2,088	$	2	$	(87)	$	2,003					$	2,003
Federal agency securities	460		1		(17)		444						444
Obligations of states and political subdivisions	2		—		—		2						2
Mortgage-backed securities:
Residential agency	20,482		20		(1,557)		18,945						18,945

Commercial agency	4,389		1		(300)		4,090						4,090
Commercial non-agency	92		—		(10)		82						82
Corporate and other debt securities	670		2		(14)		658						658
	$	28,183	$	26	$	(1,985)	$	26,224					$	26,224

(1)Debt securities held to maturity gross unrealized losses recognized in OCI resulted from transfers of securities available for sale.

The Company utilizes interest rate swap agreements to manage interest rate exposure on certain of the Company's fixed-rate prepayable and non-prepayable debt securities available for sale. See Note 9 for additional information.

The Company reclassified debt securities with an amortized cost, excluding items recognized in OCI, of $1.0 billion in each of the first and second quarters of 2025, for a total of $2.0 billion from available for sale to held to maturity. The Company determined it has both the positive intent and ability to hold these debt securities to maturity. The debt securities were transferred at amortized cost, in addition to the amount of any remaining unrealized holding gain or loss reported in AOCI, and represented a non-cash transaction. OCI included net pre-tax unrealized losses of $153 million and $74 million in the first and

second quarter, respectively, at the date of transfer and the offsetting OCI components are being amortized into net interest income over the remaining life of the related debt securities as a yield adjustment, resulting in no impact on future net income.

Debt securities with carrying values of $22.0 billion and $20.9 billion at June 30, 2025 and December 31, 2024, respectively, were pledged to secure public funds, trust deposits and other borrowing arrangements.

The amortized cost and estimated fair value of debt securities held to maturity and debt securities available for sale at June 30, 2025, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.


	Amortized Cost		Estimated Fair Value
	(In millions)
Debt securities held to maturity:
Mortgage-backed securities:
Residential agency	$	6,416	$	5,364
Commercial agency	461		450
	$	6,877	$	5,814
Debt securities available for sale:
Due in one year or less	$	441	$	436
Due after one year through five years	1,895		1,851
Due after five years through ten years	815		800
Due after ten years	74		71
Mortgage-backed securities:
Residential agency	19,384		18,556

Commercial agency	4,710		4,536
Commercial non-agency	92		83
	$	27,411	$	26,333

The following tables present gross unrealized losses and the related estimated fair value of debt securities held to maturity and debt securities available for sale at June 30, 2025 and December 31, 2024. For debt securities transferred to held to maturity from available for sale, the analysis in the tables below compares the debt securities' original amortized cost to its current estimated fair value. All debt securities in an unrealized position are segregated between investments that have been in a continuous unrealized loss position for less than twelve months and for twelve months or more.


	June 30, 2025
	Less Than Twelve Months				Twelve Months or More				Total
	Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses
	(In millions)
Debt securities held to maturity:

Mortgage-backed securities:
Residential agency	$	199	$	(3)	$	5,165	$	(1,049)	$	5,364	$	(1,052)
Commercial agency	—		—		447		(11)		447		(11)
	$	199	$	(3)	$	5,612	$	(1,060)	$	5,811	$	(1,063)

Debt securities available for sale:
U.S Treasury securities	$	517	$	(19)	$	1,030	$	(51)	$	1,547	$	(70)
Federal agency securities	75		(1)		184		(9)		259		(10)
Mortgage-backed securities:
Residential agency	5,021		(102)		7,485		(805)		12,506		(907)

Commercial agency	801		(26)		2,625		(165)		3,426		(191)
Commercial non-agency	—		—		83		(9)		83		(9)
Corporate and other debt securities	5		—		256		(7)		261		(7)
	$	6,419	$	(148)	$	11,663	$	(1,046)	$	18,082	$	(1,194)


	December 31, 2024
	Less Than Twelve Months				Twelve Months or More				Total
	Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses
	(In millions)
Debt securities held to maturity:


Mortgage-backed securities:
Residential agency	$	—	$	—	$	3,734	$	(929)	$	3,734	$	(929)
Commercial agency	—		—		492		(15)		492		(15)
	$	—	$	—	$	4,226	$	(944)	$	4,226	$	(944)

Debt securities available for sale:
U.S. Treasury securities	$	612	$	(14)	$	1,033	$	(73)	$	1,645	$	(87)
Federal agency securities	155		(3)		195		(14)		350		(17)
Mortgage-backed securities:
Residential agency	8,012		(203)		9,605		(1,354)		17,617		(1,557)

Commercial agency	1,043		(35)		2,991		(265)		4,034		(300)

Commercial non-agency	—		—		82		(10)		82		(10)
Corporate and other debt securities	59		(1)		397		(13)		456		(14)
	$	9,881	$	(256)	$	14,303	$	(1,729)	$	24,184	$	(1,985)

The number of individual debt security positions in an unrealized loss position in the tables above decreased to 1,531 at June 30, 2025 from 1,722 at December 31, 2024. The decrease in the total amount of unrealized losses was impacted by changes in market interest rates. In instances where an unrealized loss existed, there was no indication of an adverse change in credit on the underlying positions in the tables above. As it relates to these positions, management believes no individual unrealized loss represented credit impairment as of those dates. At June 30, 2025, the Company does not intend to sell, and it is not more likely than not that the Company will be required to sell, the positions before the recovery of their amortized cost bases, which may be at maturity.

Gross realized losses on sales of debt securities available for sale totaled $27 million and gross realized gains totaled $1 million resulting in a recognized net realized loss of $26 million for the six months ended June 30, 2025. These amounts were immaterial for the three months ended June 30, 2025. Gross realized losses on sales of debt securities available for sale totaled $50 million and $100 million, respectively, and gross realized gains were immaterial for both the three and six months ended June 30, 2024. The cost of debt securities sold is based on the specific identification method. As part of the Company's normal process for evaluating impairment, including credit-related impairment, impairment identified by management was immaterial for both the three and six months ended June 30, 2025 and 2024.

NOTE 4. LOANS AND THE ALLOWANCE FOR CREDIT LOSSES

LOANS

The following table presents the distribution of Regions' loan portfolio by segment and class, net of unearned income:


	June 30, 2025		December 31, 2024
	(In millions)
Commercial and industrial	$	49,586	$	49,671
Commercial real estate mortgage—owner-occupied	4,890		4,841
Commercial real estate construction—owner-occupied	275		333
Total commercial	54,751		54,845
Commercial investor real estate mortgage	6,949		6,567
Commercial investor real estate construction	2,149		2,143
Total investor real estate	9,098		8,710
Residential first mortgage	20,020		20,094
Home equity lines	3,184		3,150
Home equity loans	2,352		2,390
Consumer credit card	1,415		1,445

Other consumer (1)	5,903		6,093
Total consumer	32,874		33,172
Total loans, net of unearned income	$	96,723	$	96,727

(1) Starting in 2025, other consumer loans also includes exit portfolios, which were previously presented separately. The portfolio consists primarily of indirect auto loans, and presentation of prior periods has been conformed accordingly.

ALLOWANCE FOR CREDIT LOSSES

Regions determines the appropriate level of the allowance on a quarterly basis. Refer to Note 1 "Summary of Significant Accounting Policies" in the Annual Report on Form 10-K for the year ended December 31, 2024, for a description of the methodology.

ROLLFORWARD OF ALLOWANCE FOR CREDIT LOSSES

The following tables present analyses of the allowance for credit losses by portfolio segment for three and six months ended June 30, 2025, and 2024.



	Three Months Ended June 30, 2025
	Commercial		Investor Real Estate		Consumer		Total
	(In millions)
Allowance for loan losses, April 1, 2025	$	745	$	236	$	632	$	1,613

Provision for loan losses	62		—		50		112

Loan losses:
Charge-offs	(70)		(2)		(61)		(133)
Recoveries	10		—		10		20
Net loan losses	(60)		(2)		(51)		(113)
Allowance for loan losses, June 30, 2025	747		234		631		1,612
Reserve for unfunded credit commitments, April 1, 2025	91		8		18		117
Provision for unfunded credit commitments	8		5		1		14
Reserve for unfunded credit commitments, June 30, 2025	99		13		19		131
Allowance for credit losses, June 30, 2025	$	846	$	247	$	650	$	1,743



	Three Months Ended June 30, 2024
	Commercial		Investor Real Estate		Consumer		Total
	(In millions)
Allowance for loan losses, April 1, 2024	$	756	$	211	$	650	$	1,617


Provision for loan losses	31		21		53		105

Loan losses:
Charge-offs	(61)		—		(62)		(123)
Recoveries	10		1		11		22
Net loan (losses) recoveries	(51)		1		(51)		(101)
Allowance for loan losses, June 30, 2024	736		233		652		1,621

Reserve for unfunded credit commitments, April 1, 2024	87		10		17		114
Provision for (benefit from) unfunded credit commitments	(2)		(2)		1		(3)
Reserve for unfunded credit commitments, June 30, 2024	85		8		18		111
Allowance for credit losses, June 30, 2024	$	821	$	241	$	670	$	1,732



	Six Months Ended June 30, 2025
	Commercial		Investor Real Estate		Consumer		Total
	(In millions)
Allowance for loan losses, January 1, 2025	$	743	$	240	$	630	$	1,613



Provision for loan losses	111		18		106		235
Loan losses:
Charge-offs	(129)		(24)		(125)		(278)
Recoveries	22		—		20		42
Net loan losses	(107)		(24)		(105)		(236)
Allowance for loan losses, June 30, 2025	747		234		631		1,612


Reserve for unfunded credit commitments, January 1, 2025	91		7		18		116
Provision for (benefit from) unfunded credit losses	8		6		1		15
Reserve for unfunded credit commitments, June 30, 2025	99		13		19		131
Allowance for credit losses, June 30, 2025	$	846	$	247	$	650	$	1,743



	Six Months Ended June 30, 2024
	Commercial		Investor Real Estate		Consumer		Total
	(In millions)
Allowance for loan losses, January 1, 2024	$	722	$	192	$	662	$	1,576


Provision for loan losses	119		44		104		267
Loan losses:
Charge-offs	(123)		(5)		(136)		(264)
Recoveries	18		2		22		42
Net loan (losses) recoveries	(105)		(3)		(114)		(222)
Allowance for loan losses, June 30, 2024	736		233		652		1,621
Reserve for unfunded credit commitments, January 1, 2024	92		13		19		124
Provision for (benefit from) unfunded credit losses	(7)		(5)		(1)		(13)
Reserve for unfunded credit commitments, June 30, 2024	85		8		18		111
Allowance for credit losses, June 30, 2024	$	821	$	241	$	670	$	1,732

PORTFOLIO SEGMENT RISK FACTORS

Regions' portfolio segments are commercial, investor real estate, and consumer. Classes within each segment present unique credit risks. Refer to Note 5 "Allowance for Credit Losses" in the Annual Report on Form 10-K for the year ended December 31, 2024 for information regarding Regions' portfolio segments and related classes, as well as the risks specific to each.

CREDIT QUALITY INDICATORS

The commercial and investor real estate portfolio segments' primary credit quality indicator is internal risk ratings which are detailed by categories related to underlying credit quality and probability of default. Regions assigns these risk ratings at loan origination and reviews the relationship utilizing a risk-based approach on, at minimum, an annual basis or at any time management becomes aware of information affecting the borrowers' ability to fulfill their obligations. Both quantitative and qualitative factors are considered in this review process. Refer to Note 5 "Allowance for Credit Losses" in the Annual Report on Form 10-K for the year ended December 31, 2024 for information regarding commercial risk ratings.

Regions' consumer portfolio segment has various classes that present unique credit risks. Regions considers factors such as periodic updates of FICO scores, accrual status, days past due status, unemployment rates, home prices, and geography as credit quality indicators for the consumer loan portfolio. FICO scores are obtained at origination as part of Regions' formal underwriting process. Refreshed FICO scores are obtained by the Company quarterly for most consumer loans, including residential first mortgage loans. Current FICO data is not available for certain loans in the portfolio for various reasons; for example, if customers do not use sufficient credit, an updated score may not be available. These categories are utilized to develop the associated allowance for credit losses. The higher the FICO score the less probability of default and vice versa.

The following tables present applicable credit quality indicators for the loan portfolio segments and classes, excluding loans held for sale and gross charge-offs, by vintage year as of June 30, 2025 and December 31, 2024. Regions defines the vintage date for the purposes of disclosure as the date of the most recent credit decision. In general, renewals that are categorized as new credit decisions reflect the renewal date as the vintage date. Classes in the commercial and investor real estate portfolio segments are disclosed by risk rating. Classes in the consumer portfolio segment are disclosed by current FICO

scores. Refer to Note 5 "Allowance for Credit Losses" in the Annual Report on Form 10-K for the year ended December 31, 2024 for more information regarding Regions' credit quality indicators.


	June 30, 2025
Term Loans													Revolving Loans			Revolving Loans Converted to Amortizing			Other (1)			Total

2025	2024		2023		2022		2021		Prior
(In millions)
Commercial and industrial:
Risk rating:
Pass	$	4,815	$	7,082	$	3,662	$	5,010	$	2,537	$	4,181		$	19,665		$	—		$	101		$	47,053
Special Mention	32		93		235		70		50		26			315			—			—			821
Substandard Accrual	43		112		271		231		32		76			556			—			—			1,321
Non-accrual	30		56		71		75		35		10			114			—			—			391
Total commercial and industrial	$	4,920	$	7,343	$	4,239	$	5,386	$	2,654	$	4,293		$	20,650		$	—		$	101		$	49,586

Commercial real estate mortgage—owner-occupied:
Risk rating:
Pass	$	356	$	794	$	650	$	751	$	718	$	1,138		$	103		$	—		$	(5)		$	4,505
Special Mention	2		9		18		63		36		64			2			—			—			194
Substandard Accrual	34		23		7		16		27		33			6			—			—			146
Non-accrual	1		1		1		5		16		21			—			—			—			45
Total commercial real estate mortgage—owner-occupied:	$	393	$	827	$	676	$	835	$	797	$	1,256		$	111		$	—		$	(5)		$	4,890

Commercial real estate construction—owner-occupied:
Risk rating:
Pass	$	48	$	50	$	28	$	32	$	22	$	48		$	8		$	—		$	—		$	236
Special Mention	1		18		6		8		1		—			—			—			—			34
Substandard Accrual	1		1		—		—		—		2			—			—			—			4
Non-accrual	—		—		—		—		—		1			—			—			—			1
Total commercial real estate construction—owner-occupied:	$	50	$	69	$	34	$	40	$	23	$	51		$	8		$	—		$	—		$	275

Total commercial	$	5,363	$	8,239	$	4,949	$	6,261	$	3,474	$	5,600		$	20,769		$	—		$	96		$	54,751

Commercial investor real estate mortgage:
Risk rating:
Pass	$	1,503	$	1,124	$	381	$	1,391	$	474	$	224		$	411		$	—		$	(4)		$	5,504
Special Mention	236		28		75		230		1		—			31			—			—			601
Substandard Accrual	142		46		—		184		99		30			60			—			—			561
Non-accrual	—		164		34		51		—		10			24			—			—			283
Total commercial investor real estate mortgage	$	1,881	$	1,362	$	490	$	1,856	$	574	$	264		$	526		$	—		$	(4)		$	6,949

Commercial investor real estate construction:
Risk rating:
Pass	$	43	$	480	$	482	$	216	$	—	$	2		$	732		$	—		$	(12)		$	1,943
Special Mention	59		13		—		126		—		—			8			—			—			206
Substandard Accrual	—		—		—		—		—		—			—			—			—			—
Non-accrual	—		—		—		—		—		—			—			—			—			—
Total commercial investor real estate construction	$	102	$	493	$	482	$	342	$	—	$	2		$	740		$	—		$	(12)		$	2,149

Total investor real estate	$	1,983	$	1,855	$	972	$	2,198	$	574	$	266		$	1,266		$	—		$	(16)		$	9,098

Residential first mortgage:
FICO scores:
Above 720	$	620	$	1,212	$	1,870	$	2,643	$	3,890	$	6,350		$	—		$	—		$	—		$	16,585
681-720	48		99		169		212		255		477			—			—			—			1,260
620-680	20		47		83		135		144		389			—			—			—			818
Below 620	4		33		88		157		158		531			—			—			—			971
Data not available	19		27		23		15		32		95			2			—			173			386
Total residential first mortgage	$	711	$	1,418	$	2,233	$	3,162	$	4,479	$	7,842		$	2		$	—		$	173		$	20,020


	June 30, 2025
Term Loans													Revolving Loans			Revolving Loans Converted to Amortizing			Other (1)				Total

2025	2024		2023		2022		2021		Prior
(In millions)
Home equity lines:
FICO scores:
Above 720	$	—	$	—	$	—	$	—	$	—	$	—		$	2,416		$	58			—			$	2,474
681-720	—		—		—		—		—		—			339			11		$	—	—			350
620-680	—		—		—		—		—		—			191			13				—			204
Below 620	—		—		—		—		—		—			117			9				—			126
Data not available	—		—		—		—		—		—			1			—				29			30
Total home equity lines	$	—	$	—	$	—	$	—	$	—	$	—		$	3,064		$	91			$	29		$	3,184

Home equity loans:
FICO scores:
Above 720	$	158	$	297	$	231	$	282	$	301	$	566		$	—		$	—			$	—		$	1,835
681-720	31		45		39		43		37		66			—			—				—			261
620-680	9		21		18		22		21		57			—			—				—			148
Below 620	1		6		11		17		14		43			—			—				—			92
Data not available	—		—		—		—		—		—			—			—				16			16
Total home equity loans	$	199	$	369	$	299	$	364	$	373	$	732		$	—		$	—			$	16		$	2,352

Consumer credit card:
FICO scores:
Above 720	$	—	$	—	$	—	$	—	$	—	$	—		$	835		$	—			$	—		$	835
681-720	—		—		—		—		—		—			273			—				—			273
620-680	—		—		—		—		—		—			228			—				—			228
Below 620	—		—		—		—		—		—			114			—				—			114
Data not available	—		—		—		—		—		—			5			—				(40)			(35)
Total consumer credit card	$	—	$	—	$	—	$	—	$	—	$	—		$	1,455		$	—			$	(40)		$	1,415









Other consumer(2):
FICO scores:
Above 720	$	387	$	750	$	895	$	1,224	$	371	$	387		$	112		$	—			$	—		$	4,126
681-720	53		136		160		245		84		73			61			—				—			812
620-680	27		74		93		170		58		50			47			—				—			519
Below 620	5		25		48		111		36		30			32			—				—			287
Data not available	76		4		4		9		6		149			—			—				(89)			159
Total other consumer	$	548	$	989	$	1,200	$	1,759	$	555	$	689		$	252		$	—			$	(89)		$	5,903

Total consumer loans	$	1,458	$	2,776	$	3,732	$	5,285	$	5,407	$	9,263		$	4,773		$	91			$	89		$	32,874

Total Loans	$	8,804	$	12,870	$	9,653	$	13,744	$	9,455	$	15,129		$	26,808		$	91			$	169		$	96,723


	December 31, 2024
Term Loans													Revolving Loans			Revolving Loans Converted to Amortizing			Other (1)			Total

2024	2023		2022		2021		2020		Prior
(In millions)
Commercial and industrial:
Risk rating:
Pass	$	8,285	$	4,798	$	6,295	$	3,284	$	1,526	$	3,446		$	19,165		$	—		$	114		$	46,913
Special Mention	59		309		173		61		3		41			460			—			—			1,106
Substandard Accrual	81		179		255		79		32		84			534			—			—			1,244
Non-accrual	48		90		124		37		5		6			98			—			—			408
Total commercial and industrial	$	8,473	$	5,376	$	6,847	$	3,461	$	1,566	$	3,577		$	20,257		$	—		$	114		$	49,671

Commercial real estate mortgage—owner-occupied:
Risk rating:
Pass	$	794	$	695	$	796	$	785	$	522	$	808		$	87		$	—		$	(5)		$	4,482
Special Mention	5		21		57		33		9		57			2			—			—			184
Substandard Accrual	4		6		37		40		15		33			3			—			—			138
Non-accrual	2		2		5		14		4		9			1			—			—			37
Total commercial real estate mortgage—owner-occupied:	$	805	$	724	$	895	$	872	$	550	$	907		$	93		$	—		$	(5)		$	4,841

Commercial real estate construction—owner-occupied:
Risk rating:
Pass	$	131	$	54	$	38	$	30	$	20	$	37		$	7		$	—		$	—		$	317
Special Mention	—		6		1		—		—		—			—			—			—			7
Substandard Accrual	—		—		3		—		1		—			—			—			—			4
Non-accrual	—		—		—		—		1		4			—			—			—			5
Total commercial real estate construction—owner-occupied:	$	131	$	60	$	42	$	30	$	22	$	41		$	7		$	—		$	—		$	333

Total commercial	$	9,409	$	6,160	$	7,784	$	4,363	$	2,138	$	4,525		$	20,357		$	—		$	109		$	54,845

Commercial investor real estate mortgage:
Risk rating:
Pass	$	1,598	$	464	$	1,753	$	747	$	322	$	125		$	314		$	—		$	(2)		$	5,321
Special Mention	173		12		209		30		11		1			4			—			—			440
Substandard Accrual	76		—		131		39		28		2			107			—			—			383
Non-accrual	167		93		113		—		—		50			—			—			—			423
Total commercial investor real estate mortgage	$	2,014	$	569	$	2,206	$	816	$	361	$	178		$	425		$	—		$	(2)		$	6,567

Commercial investor real estate construction:
Risk rating:
Pass	$	300	$	380	$	443	$	—	$	—	$	2		$	694		$	—		$	(13)		$	1,806
Special Mention	—		32		218		—		—		—			76			—			—			326
Substandard Accrual	—		—		—		—		—		—			11			—			—			11
Non-accrual	—		—		—		—		—		—			—			—			—			—
Total commercial investor real estate construction	$	300	$	412	$	661	$	—	$	—	$	2		$	781		$	—		$	(13)		$	2,143
Total investor real estate	$	2,314	$	981	$	2,867	$	816	$	361	$	180		$	1,206		$	—		$	(15)		$	8,710

Residential first mortgage:
FICO scores:
Above 720	$	1,111	$	1,967	$	2,742	$	4,055	$	4,004	$	2,730		$	—		$	—		$	—		$	16,609
681-720	107		185		253		289		222		305			—			—			—			1,361
620-680	56		87		141		136		99		283			—			—			—			802
Below 620	15		73		138		150		100		419			—			—			—			895
Data not available	29		31		16		41		46		90			2			—			172			427
Total residential first mortgage	$	1,318	$	2,343	$	3,290	$	4,671	$	4,471	$	3,827		$	2		$	—		$	172		$	20,094


	December 31, 2024
Term Loans													Revolving Loans			Revolving Loans Converted to Amortizing			Other (1)			Total

2024	2023		2022		2021		2020		Prior
(In millions)
Home equity lines:
FICO scores:
Above 720	$	—	$	—	$	—	$	—	$	—	$	—		$	2,341		$	48		$	—		$	2,389
681-720	—		—		—		—		—		—			339			12			—			351
620-680	—		—		—		—		—		—			176			11			—			187
Below 620	—		—		—		—		—		—			96			7			—			103
Data not available	—		—		—		—		—		—			81			5			34			120
Total home equity lines	$	—	$	—	$	—	$	—	$	—	$	—		$	3,033		$	83		$	34		$	3,150

Home equity loans:
FICO scores:
Above 720	$	328	$	263	$	308	$	329	$	163	$	472		$	—		$	—		$	—		$	1,863
681-720	51		40		49		39		16		56			—			—			—			251
620-680	18		19		23		21		9		48			—			—			—			138
Below 620	3		7		14		13		5		37			—			—			—			79
Data not available	1		1		4		7		4		26			—			—			16			59
Total home equity loans	$	401	$	330	$	398	$	409	$	197	$	639		$	—		$	—		$	16		$	2,390

Consumer credit card:
FICO scores:
Above 720	$	—	$	—	$	—	$	—	$	—	$	—		$	847		$	—		$	—		$	847
681-720	—		—		—		—		—		—			270						—			270
620-680	—		—		—		—		—		—			224			—			—			224
Below 620	—		—		—		—		—		—			108			—			—			108
Data not available	—		—		—		—		—		—			18			—			(22)			(4)
Total consumer credit card	$	—	$	—	$	—	$	—	$	—	$	—		$	1,467		$	—		$	(22)		$	1,445












Other consumer(2):
FICO scores:
Above 720	$	898	$	1,016	$	1,337	$	417	$	232	$	213		$	117		$	—		$	—		$	4,230
681-720	160		191		275		97		49		40			62			—			—			874
620-680	82		111		191		64		31		25			50			—			—			554
Below 620	16		47		117		43		19		17			31			—			—			290
Data not available	71		4		10		6		5		155			2			—			(108)			145
Total other consumer	$	1,227	$	1,369	$	1,930	$	627	$	336	$	450		$	262		$	—		$	(108)		$	6,093

Total consumer loans	$	2,946	$	4,042	$	5,618	$	5,707	$	5,004	$	4,916		$	4,764		$	83		$	92		$	33,172

Total Loans	$	14,669	$	11,183	$	16,269	$	10,886	$	7,503	$	9,621		$	26,327		$	83		$	186		$	96,727

(1)Other consists of amounts that are not accounted for at the loan level.

(2)Other consumer class includes overdrafts which are included in the current vintage year. Starting in 2025, other consumer loans also includes exit portfolios, which were previously presented separately. The portfolio consists primarily of indirect auto loans, and presentation of prior periods has been conformed accordingly.

The following tables present gross charge-offs by vintage year for the six months ended June 30, 2025 and 2024.


	Six Months Ended June 30, 2025
Term Loans													Revolving Loans			Total
2025	2024		2023		2022		2021		Prior
(In millions)
Commercial and industrial	$	—	$	16	$	19	$	38	$	5	$	2		$	47		$	127
Commercial real estate mortgage—owner-occupied	—		—		—		—		1		1			—			2

Total commercial	—		16		19		38		6		3			47			129
Commercial investor real estate mortgage	—		8		12		—		—		4			—			24

Total investor real estate	—		8		12		—		—		4			—			24
Residential first mortgage	—		—		—		1		—		—			—			1
Home equity lines	—		—		—		—		—		—			1			1

Consumer credit card	—		—		—		—		—		—			34			34

Other consumer(1)	14		15		14		23		9		9			5			89
Total consumer	14		15		14		24		9		9			40			125
Total gross charge-offs	$	14	$	39	$	45	$	62	$	15	$	16		$	87		$	278


	Six Months Ended June 30, 2024
Term Loans													Revolving Loans			Total
2024	2023		2022		2021		2020		Prior
(In millions)
Commercial and industrial	$	5	$	33	$	36	$	8	$	4	$	8		$	28		$	122
Commercial real estate mortgage—owner-occupied	—		—		—		1		—		—			—			1

Total commercial	5		33		36		9		4		8			28			123
Commercial investor real estate mortgage	—		—		—		5		—		—			—			5

Total investor real estate	—		—		—		5		—		—			—			5
Residential first mortgage	—		—		—		—		—		1			—			1
Home equity lines	—		—		—		—		—		—			2			2

Consumer credit card	—		—		—		—		—		—			31			31

Other consumer(1)	17		23		34		11		5		8			4			102
Total consumer	17		23		34		11		5		9			37			136
Total gross charge-offs	$	22	$	56	$	70	$	25	$	9	$	17		$	65		$	264

(1)Other consumer class includes overdraft gross charge-offs. The majority of overdraft gross charge-offs for the six months ended June 30, 2025 and 2024 are included in the current vintage year. Starting in 2025, other consumer loans also includes exit portfolios, which were previously presented separately. The portfolio consists primarily of indirect auto loans, and presentation of prior periods has been conformed accordingly.

AGING AND NON-ACCRUAL ANALYSIS

The following tables include an aging analysis of DPD and loans on non-accrual status for each portfolio segment and class as of June 30, 2025 and December 31, 2024. Loans on non-accrual status with no related allowance totaled $107 million and $119 million and were comprised of commercial and investor real estate loans at June 30, 2025 and December 31, 2024, respectively. Non–accrual loans with no related allowance typically include loans where the underlying collateral is deemed sufficient to recover all remaining principal. Loans that have been fully charged-off do not appear in the tables below.


	June 30, 2025
	Accrual Loans
	30-59 DPD		60-89 DPD		90+ DPD		Total 30+ DPD		Total Accrual		Non-accrual		Total
	(In millions)
Commercial and industrial	$	39	$	28	$	19	$	86	$	49,195	$	391	$	49,586
Commercial real estate mortgage—owner-occupied	8		—		1		9		4,845		45		4,890
Commercial real estate construction—owner-occupied	—		—		—		—		274		1		275
Total commercial	47		28		20		95		54,314		437		54,751
Commercial investor real estate mortgage	—		—		—		—		6,666		283		6,949
Commercial investor real estate construction	1		—		—		1		2,149		—		2,149
Total investor real estate	1		—		—		1		8,815		283		9,098
Residential first mortgage	107		64		133		304		19,996		24		20,020
Home equity lines	18		7		12		37		3,158		26		3,184
Home equity loans	8		3		7		18		2,346		6		2,352
Consumer credit card	12		8		20		40		1,415		—		1,415

Other consumer(1)	41		25		23		89		5,903		—		5,903
Total consumer	186		107		195		488		32,818		56		32,874
	$	234	$	135	$	215	$	584	$	95,947	$	776	$	96,723


	December 31, 2024
	Accrual Loans
	30-59 DPD		60-89 DPD		90+ DPD		Total 30+ DPD		Total Accrual		Non-accrual		Total
	(In millions)
Commercial and industrial	$	51	$	18	$	7	$	76	$	49,263	$	408	$	49,671
Commercial real estate mortgage—owner-occupied	4		1		1		6		4,804		37		4,841
Commercial real estate construction—owner-occupied	—		—		—		—		328		5		333
Total commercial	55		19		8		82		54,395		450		54,845
Commercial investor real estate mortgage	—		—		—		—		6,144		423		6,567
Commercial investor real estate construction	—		—		—		—		2,143		—		2,143
Total investor real estate	—		—		—		—		8,287		423		8,710
Residential first mortgage	139		78		143		360		20,071		23		20,094
Home equity lines	15		9		16		40		3,124		26		3,150
Home equity loans	11		6		7		24		2,384		6		2,390
Consumer credit card	11		9		20		40		1,445		—		1,445

Other consumer(1)	51		26		27		104		6,093		—		6,093
Total consumer	227		128		213		568		33,117		55		33,172
	$	282	$	147	$	221	$	650	$	95,799	$	928	$	96,727

At both June 30, 2025 and December 31, 2024, the Company had collateral-dependent commercial loans of $264 million. At June 30, 2025 and December 31, 2024, the Company had collateral-dependent investor real estate loans of $215 million and $323 million, respectively. The collateral for commercial and investor real estate loans generally consists of all business assets including real estate, receivables and equipment. At June 30, 2025 and December 31, 2024, the Company had collateral-dependent residential mortgage and home equity loans and lines totaling $123 million and $115 million, respectively. The collateral for these loans are secured by residential real estate. Refer to Note 1 "Summary of Significant Accounting Policies" in the Annual Report on Form 10-K for the year ended December 31, 2024 for additional details for the criteria of collateral-dependent loans.

MODIFICATIONS TO BORROWERS EXPERIENCING FINANCIAL DIFFICULTY

Modifications to troubled borrowers are loans where the borrower is experiencing financial difficulty at the time of modification and are undertaken in order to improve the likelihood of repayment. Refer to Note 1 "Summary of Significant Accounting Policies" in the Annual Report on Form 10-K for the year ended December 31, 2024 for additional information.

For each portfolio segment and class, the following tables present the end of period balances of new modifications to troubled borrowers and the related percentage of the loan portfolio period-end balance by the type of modification in the three and six months ended June 30, 2025 and 2024.



		Three Months Ended June 30, 2025
	Term Extension					Payment Deferral					Term Extension and Interest Rate Modification					Total
		$		%(1)			$		%(1)			$		%(1)			$		%(1)
		(Dollars in millions)
Commercial and industrial		$	35	0.07	%		$	10	0.02	%		$	—	—	%		$	45	0.09	%
Commercial real estate mortgage—owner-occupied		2		0.03	%		—		—	%		—		—	%		2		0.03	%

Total commercial		37		0.07	%		10		0.02	%		—		—	%		47		0.09	%
Commercial investor real estate mortgage		109		1.56	%		—		—	%		—		—	%		109		1.56	%

Total investor real estate		109		1.19	%		—		—	%		—		—	%		109		1.19	%
Residential first mortgage		60		0.30	%		2		0.01	%		3		0.02	%		65		0.33	%
Home equity lines		—		0.01	%		—		—	%		1		0.04	%		1		0.05	%
Home equity loans		1		0.06	%		—		—	%		2		0.06	%		3		0.12	%



Total consumer		61		0.19	%		2		0.01	%		6		0.02	%		69		0.21	%
Total		$	207	0.21	%		$	12	0.01	%		$	6	0.01	%		$	225	0.23	%



		Three Months Ended June 30, 2024
	Term Extension					Payment Deferral					Term Extension and Interest Rate Modification					Total
		$		%(1)			$		%(1)			$		%(1)			$		%(1)
		(Dollars in millions)
Commercial and industrial		$	23	0.05	%		$	—	—	%		$	—	—	%		$	23	0.05	%
Commercial real estate mortgage—owner-occupied		3		0.05	%		—		—	%		—		—	%		3		0.05	%

Total commercial		26		0.05	%		—		—	%		—		—	%		26		0.05	%



Residential first mortgage		43		0.21	%		1		—	%		1		—	%		45		0.22	%
Home equity lines		—		—	%		—		—	%		1		0.05	%		1		0.06	%
Home equity loans		1		0.05	%		—		—	%		2		0.08	%		3		0.13	%



Total consumer		44		0.13	%		1		—	%		4		0.01	%		49		0.15	%
Total		$	70	0.07	%		$	1	—	%		$	4	—	%		$	75	0.08	%



	Six Months Ended June 30, 2025
	Term Extension				Interest Rate Reduction				Payment Deferral					Term Extension and Interest Rate Modification					Total
	$		%(1)		$		%(1)			$		%(1)			$		%(1)			$		%(1)
	(Dollars in millions)
Commercial and industrial	$	85	0.17	%	$	4	0.01	%		$	10	0.02	%		$	—	—	%		$	99	0.20	%
Commercial real estate mortgage—owner-occupied	2		0.04	%	—		—	%		—		—	%		—		—	%		2		0.04	%

Total commercial	87		0.16	%	4		0.01	%		10		0.02	%		—		—	%		101		0.18	%
Commercial investor real estate mortgage	133		1.92	%	—		—	%		—		—	%		—		—	%		133		1.92	%

Total investor real estate	133		1.46	%	—		—	%		—		—	%		—		—	%		133		1.46	%
Residential first mortgage	117		0.58	%	—		—	%		3		0.02	%		9		0.04	%		129		0.64	%
Home equity lines	1		0.02	%	—		—	%		—		—	%		3		0.10	%		4		0.12	%
Home equity loans	2		0.09	%	—		—	%		—		—	%		3		0.12	%		5		0.21	%



Total consumer	120		0.36	%	—		—	%		3		0.01	%		15		0.05	%		138		0.42	%
Total	$	340	0.35	%	$	4	—	%		$	13	0.01	%		$	15	0.02	%		$	372	0.38	%



	Six Months Ended June 30, 2024
	Term Extension				Payment Deferral					Term Extension and Interest Rate Modification					Total
	$		%(1)			$		%(1)			$		%(1)			$		%(1)
	(Dollars in millions)
Commercial and industrial	$	35	0.07	%		$	—	—	%		$	1	—	%		$	36	0.07	%
Commercial real estate mortgage—owner-occupied	3		0.06	%		—		—	%		—		—	%		3		0.06	%

Total commercial	38		0.07	%		—		—	%		1		—	%		39		0.07	%
Commercial investor real estate mortgage	100		1.53	%		—		—	%		—		—	%		100		1.53	%

Total investor real estate	100		1.14	%		—		—	%		—		—	%		100		1.14	%
Residential first mortgage	80		0.40	%		1		0.01	%		2		0.01	%		83		0.41	%
Home equity lines	1		0.01	%		—		—	%		2		0.07	%		3		0.08	%
Home equity loans	2		0.08	%		—		—	%		4		0.16	%		6		0.24	%



Total consumer	83		0.25	%		1		—	%		8		0.02	%		92		0.28	%
Total	$	221	0.23	%		$	1	—	%		$	9	0.01	%		$	231	0.24	%

(1) Amounts calculated based upon whole dollar values.

The end of period balance of unfunded commitments related to modifications to troubled borrowers was $80 million and $71 million at June 30, 2025 and December 31, 2024, respectively.

The following tables present the financial impact of modifications to troubled borrowers during the three and six months ended June 30, 2025 and 2024 by class of financing receivable and the type of modification. The tables include new modifications to troubled borrowers, as well as renewals of existing modifications to troubled borrowers.



	Three Months Ended June 30, 2025
	Term Extension	Payment Deferral	Term Extension and Interest Rate Modification
	Weighted-Average Term Extension	Weighted-Average Payment Deferral	Weighted-Average Term Extension	Weighted-Average Reduction in Interest Rate
	(In years, except for percentage data)
Commercial and industrial	1.17	0.25	—	—
Commercial real estate mortgage—owner-occupied	1.58	—	—	—

Commercial investor real estate mortgage	0.67	—	—	—

Residential first mortgage	7	0.67	6	1	%
Home equity lines	—	—	29	1	%
Home equity loans	12	—	21	3	%



	Three Months Ended June 30, 2024
	Term Extension	Payment Deferral	Term Extension and Interest Rate Modification
	Weighted-Average Term Extension	Weighted-Average Payment Deferral	Weighted-Average Term Extension	Weighted-Average Reduction in Interest Rate
	(In years, except for percentage data)
Commercial and industrial	0.92	—	—	—
Commercial real estate mortgage—owner-occupied	0.67	—	—	—



Residential first mortgage	7	0.5	1	less than 1%
Home equity lines	—	—	21	2	%
Home equity loans	7	—	25	3	%



	Six Months Ended June 30, 2025
	Interest Rate Reduction	Term Extension	Payment Deferral	Term Extension and Interest Rate Reduction
	Weighted-Average Reduction in Interest Rate	Weighted-Average Term Extension	Weighted-Average Payment Deferral	Weighted-Average Term Extension	Weighted-Average Reduction in Interest Rate
	(In years, except for percentage data)
Commercial and industrial	less than 1%	0.75	0.25	—	—
Commercial real estate mortgage—owner-occupied	—	2.25	—	—	—

Commercial investor real estate mortgage	—	0.67	—	—	—

Residential first mortgage	—	7	0.67	4	1	%
Home equity lines	—	30	—	26	1	%
Home equity loans	—	12	—	21	3	%



	Six Months Ended June 30, 2024
	Term Extension	Payment Deferral	Term Extension and Interest Rate Reduction
	Weighted-Average Term Extension	Weighted-Average Payment Deferral	Weighted-Average Term Extension	Weighted-Average Reduction in Interest Rate
	(In years, except for percentage data)
Commercial and industrial	1.58	—	—	—
Commercial real estate mortgage—owner-occupied	0.67	—	—	—

Commercial investor real estate mortgage	0.58	—	—	—

Residential first mortgage	7	0.5	6	less than 1%
Home equity lines	—	—	21	2	%
Home equity loans	9	—	25	2	%

The following tables include the end of period balances of aging and non-accrual performance for modifications to troubled borrowers modified in the previous twelve-month period by portfolio segment and class as of June 30, 2025 and June 30, 2024.



	June 30, 2025
	Current		30-89 DPD		90+ DPD		Non-Performing Loans		Total
	(In millions)
Commercial and industrial	$	79	$	—	$	—	$	45	$	124
Commercial real estate mortgage—owner-occupied	2		—		—		1		3

Total commercial	81		—		—		46		127
Commercial investor real estate mortgage	111		—		—		89		200

Total investor real estate	111		—		—		89		200
Residential first mortgage	155		32		11		6		204
Home equity lines	9		1		—		1		11
Home equity loans	8		—		—		3		11



Total consumer	172		33		11		10		226
	$	364	$	33	$	11	$	145	$	553



	June 30, 2024
	Current		30-89 DPD		90+ DPD		Non-Performing Loans		Total
	(In millions)
Commercial and industrial	$	149	$	—	$	—	$	74	$	223
Commercial real estate mortgage—owner-occupied	2		—		—		1		3

Total commercial	151		—		—		75		226
Commercial investor real estate mortgage	130		—		—		136		266

Total investor real estate	130		—		—		136		266
Residential first mortgage	99		16		10		4		129
Home equity lines	4		—		—		—		4
Home equity loans	8		1		—		1		10



Total consumer	111		17		10		5		143
	$	392	$	17	$	10	$	216	$	635

For modifications to troubled borrowers, a subsequent payment default is defined in terms of delinquency, when a principal or interest payment is 90 days past due or classified as non-accrual status during the reporting period. Loans defaulted during the three and six month periods ended June 30, 2025 that were restructured as modifications to troubled borrowers during the previous twelve months had period-end balances of $23 million and $48 million, respectively. Loans defaulted during the three and six month periods ended June 30, 2024 that were restructured as modifications to troubled borrowers during the previous twelve months had period-end balances of $56 million and $135 million, respectively.

NOTE 5. SERVICING OF FINANCIAL ASSETS

RESIDENTIAL MORTGAGE BANKING ACTIVITIES

The fair value of residential MSRs is calculated using various assumptions including future cash flows, market discount rates, expected prepayment rates, servicing costs and other factors. A significant change in prepayments of mortgages in the servicing portfolio could result in significant changes in the valuation adjustments, thus creating potential volatility in the carrying amount of residential MSRs. The Company compares fair value estimates and assumptions to observable market data where available, and also considers recent market activity and actual portfolio experience.

The table below presents an analysis of residential MSRs under the fair value measurement method:


	Three Months Ended June 30				Six Months Ended June 30
	2025		2024		2025		2024
	(In millions)
Carrying value, beginning of period	$	979	$	1,026	$	1,007	$	906
Additions	7		7		12		12
Purchases (1)	14		5		19		130
Increase (decrease) in fair value(2):
Due to change in valuation inputs or assumptions	16		13		6		32
Economic amortization associated with borrower repayments (3)	(28)		(31)		(56)		(60)
Carrying value, end of period	$	988	$	1,020	$	988	$	1,020

(1)Purchases of residential MSRs can be structured with cash hold back provisions, therefore the timing of payment may be made in future periods.

(2)Included in mortgage income. Amounts presented exclude offsetting impact from related derivatives.

(3)Includes both total loan payoffs as well as partial paydowns. Regions' MSR decay methodology is a discounted net cash flow approach.

Data and assumptions used in the fair value calculation, as well as the valuation’s sensitivity to rate fluctuations, related to residential MSRs (excluding related derivative instruments) are as follows:


	June 30
	2025			2024
	(Dollars in millions)
Unpaid principal balance	$	66,249		$	69,055
Weighted-average CPR (%)	7.4		%	8.2		%
Estimated impact on fair value of a 10% increase	$	(36)		$	(47)
Estimated impact on fair value of a 20% increase	$	(69)		$	(90)
Option-adjusted spread (basis points)	496			486
Estimated impact on fair value of a 10% increase	$	(22)		$	(22)
Estimated impact on fair value of a 20% increase	$	(45)		$	(44)
Weighted-average coupon interest rate	3.9		%	3.8		%
Weighted-average remaining maturity (months)	293			300
Weighted-average servicing fee (basis points)	27.5			27.2

The sensitivity calculations above are hypothetical and should not be considered to be predictive of future performance. Changes in fair value based on adverse changes in assumptions generally cannot be extrapolated because the relationship of the change in assumption to the change in fair value may not be linear. Also, the effect of an adverse variation in a particular assumption on the fair value of the residential MSRs is calculated without changing any other assumption, while in reality changes in one factor may result in changes in another, which may either magnify or counteract the effect of the change. The derivative instruments utilized by Regions would serve to reduce the estimated impacts to fair value included in the table above.

Servicing related fees, which include contractually specified servicing fees, late fees and other ancillary income resulting from the servicing of residential mortgage loans totaled $47 million and $46 million for the three months ended June 30, 2025 and 2024, respectively and $94 million and $90 million for the six months ended June 30, 2025 and 2024, respectively.

Residential mortgage loans are sold in the secondary market with standard representations and warranties regarding certain characteristics such as the quality of the loan, the absence of fraud, the eligibility of the loan for sale and the future servicing associated with the loan. Regions may be required to repurchase these loans at par, or make-whole or indemnify the purchasers for losses incurred when representations and warranties are breached.

Regions maintains an immaterial repurchase liability related to residential mortgage loans sold with representations and warranty provisions. This repurchase liability is reported in other liabilities on the consolidated balance sheets and reflects management’s estimate of losses based on historical repurchase and loss trends, as well as other factors that may result in anticipated losses different from historical loss trends. Adjustments to this reserve are recorded in other non-interest expense on the consolidated statements of income.

COMMERCIAL MORTGAGE BANKING ACTIVITIES

Regions engages in the servicing of commercial mortgage loans through agreements with the agencies and through a DUS lending program. Commercial MSRs of loans through the agency programs are measured at fair value while commercial MSRs of loans through the DUS lending program are measured at cost and subsequently amortized.

Commercial mortgage banking through non-DUS agency programs

The fair value of commercial MSRs through non-DUS agency programs is calculated using various assumptions including future cash flows, market discount rates, expected prepayment rates, servicing costs and other factors. A significant change in prepayments of mortgages in this servicing portfolio could result in significant changes in the valuation adjustments, thus creating potential volatility in the carrying amount of these commercial MSRs. Commercial mortgages commonly have protection against prepayments in the forms of lockout periods and prepayment penalty features, which reduce the likelihood of prepayment. The Company compares fair value estimates and assumptions to observable market data where available, and also considers recent market activity and actual portfolio experience. Regions assumes a loss share guarantee associated with loans sold to Fannie Mae. See Note 1 "Summary of Significant Accounting Policies" in the Annual Report on Form 10-K for the year ended December 31, 2024 for additional information. Also see Note 12 for additional information related to the guarantee.

The table below presents an analysis of commercial MSRs through the agency programs under the fair value measurement method:


	Three Months Ended June 30				Six Months Ended June 30
	2025		2024		2025		2024
	(In millions)
Carrying value, beginning of period	$	94	$	88	$	97	$	81
Additions	2		5		4		11
Increase (decrease) in fair value(1):
Due to change in valuation inputs or assumptions	1		2		—		6
Economic amortization associated with borrower repayments (2)	(4)		(5)		(8)		(8)
Carrying value, end of period	$	93	$	90	$	93	$	90

(1)Included in capital markets income. Amounts presented exclude offsetting impact from related derivatives.

(2)Includes both total loan payoffs as well as partial paydowns. Regions' MSR decay methodology is a discounted net cash flow approach.

Data and assumptions used in the fair value calculation, as well as the valuation’s sensitivity to rate fluctuations, related to commercial MSRs through non-DUS agency programs (excluding related derivative instruments) are as follows:


	June 30
	2025			2024
	(Dollars in millions)
Unpaid principal balance	$	7,578		$	6,643
Weighted-average CPR (%)	7.2		%	7.4		%
Estimated impact on fair value of a 10% increase	$	(2)		$	(1)
Estimated impact on fair value of a 20% increase	$	(3)		$	(3)
Weighted-average discount rate (%)	8.2		%	7.1		%
Estimated impact on fair value of a 10% increase	$	(3)		$	(2)
Estimated impact on fair value of a 20% increase	$	(5)		$	(4)
Weighted-average coupon interest rate	4.8		%	4.6		%
Weighted-average remaining maturity (months)	148			158
Weighted-average servicing fee (basis points)	25.3			28.2

The sensitivity calculations above are hypothetical and should not be considered to be predictive of future performance. Changes in fair value based on adverse changes in assumptions generally cannot be extrapolated because the relationship of the change in assumption to the change in fair value may not be linear. Also, the effect of an adverse variation in a particular assumption on the fair value of the commercial MSRs is calculated without changing any other assumption, while in reality changes in one factor may result in changes in another, which may either magnify or counteract the effect of the change. The derivative instruments utilized by Regions would serve to reduce the estimated impacts to fair value included in the table above.

Servicing related fees, which include contractually specified servicing fees, late fees and other ancillary income resulting from the servicing of commercial mortgage loans through the agency programs totaled $7 million and $5 million for the three months ended June 30, 2025 and 2024 and $13 million and $12 million for the six months ended June 30, 2025 and 2024, respectively.

Commercial mortgage banking through the DUS lending program

Regions is an approved DUS lender. The DUS program provides liquidity to the multi-family housing market. In connection with the DUS program, Regions services commercial mortgage loans, retains commercial MSRs and intangible assets associated with the DUS license, and assumes a loss share guarantee associated with the loans. See Note 1 "Summary of Significant Accounting Policies" in the Annual Report on Form 10-K for the year ended December 31, 2024 for additional information. Also see Note 12 for additional information related to the guarantee.

The table below presents an analysis of commercial DUS MSRs under the amortization measurement method:


	Three Months Ended June 30				Six Months Ended June 30
	2025		2024		2025		2024
	(In millions)
Carrying value, beginning of period	$	91	$	85	$	90	$	87
Additions	5		4		10		6
Economic amortization associated with borrower repayments (1)	(5)		(4)		(9)		(8)
Carrying value, end of period	$	91	$	85	$	91	$	85

(1)Economic amortization associated with borrower repayments includes both total loan payoffs as well as partial paydowns.

Regions periodically evaluates DUS MSRs for impairment based on fair value. The estimated fair value of the DUS MSRs was approximately $113 million at June 30, 2025 and $117 million at December 31, 2024.

Servicing related fees in connection with the DUS program, which include contractually specified servicing fees, late fees and other ancillary income resulting from the servicing of DUS commercial mortgage loans totaled $6 million and $8 million for three months ended June 30, 2025 and 2024, respectively and $13 million and $13 million for the six months ended June 30, 2025 and 2024, respectively.

NOTE 6. SHAREHOLDERS' EQUITY AND ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

PREFERRED STOCK

The following table presents a summary of the non-cumulative perpetual preferred stock:


												June 30, 2025		December 31, 2024
	Issuance Date	Earliest Redemption Date	Dividend Rate (1)			Liquidation Amount		Liquidation preference per Share	Liquidation preference per Depositary Share	Ownership Interest per Depositary Share	Shares Issued and Outstanding	Carrying Amount		Carrying Amount
	(Dollars in millions, except for share and per share amounts)

Series C	4/30/2019	5/15/2029	5.700	%	(2)	$	500	1,000	25	1/40th	500,000	$	490	$	490
Series D(3)	6/5/2020	6/15/2025	5.750	%		—		100,000	1,000	1/100th	—	—		346
Series E	5/4/2021	6/15/2026	4.450	%		400		1,000	25	1/40th	400,000	390		390
Series F	7/29/2024	9/15/2029	6.950	%	(4)	500		1,000	25	1/40th	500,000	489		489
						$	1,400				1,400,000	$	1,369	$	1,715

(1)Dividends on all series of preferred stock, if declared, accrue and are payable quarterly in arrears.

(2)Dividends, if declared, will be paid quarterly at an annual rate equal to (i) for each period beginning prior to August 15, 2029, 5.700%, and (ii) for each period beginning on or after August 15, 2029, three-month CME Term SOFR plus 3.410% which includes a 0.262% spread adjustment for the transition to SOFR in accordance with ISDA protocols.

(3)Prior to the shares' full redemption on June 16, 2025, dividends were paid quarterly at an annual rate equal to (i) for each period beginning prior to September 15, 2025, 5.750%, and (ii) for each period beginning on or after September 15, 2025, the five-year Treasury rate as of the most recent reset dividend determination date plus 5.426%.

(4)Dividends, if declared, will be paid quarterly at an annual rate equal to (i) for each period beginning prior to September 15, 2024, 6.950% and (ii) for each period beginning on or after September 15, 2029, the five-year Treasury rate as of the most recent reset dividend determination date plus 2.771%.

All series of preferred stock have no stated maturity and redemption is solely at Regions' option, subject to regulatory approval, in whole, or in part, after the earliest redemption date or in whole, but not in part, at any time following a regulatory capital treatment event for the Series C, Series E, and Series F preferred stock.

The Board declared a total of $50 million and $49 million in cash dividends on preferred stock in the six months ended June 30, 2025 and 2024, respectively.

During the second quarter of 2025, the Company redeemed all 3,500 outstanding shares of Series D non-cumulative perpetual preferred stock and the corresponding depositary fractional shares at par for $350 million. Upon redemption, net income available to common shareholders was reduced by $4 million related to issuance costs.

In the event Series C, Series E, or Series F preferred shares are redeemed in full at their respective liquidation amounts, $10 million, $10 million, or $11 million in excess of the redemption amount over the carrying amount will be recognized, respectively. These excess amounts represent issuance costs that were recorded as reductions to preferred stock, including related surplus, and will be recorded as reductions to net income available to common shareholders.

COMMON STOCK

The Company's results of the 2024 stress test from the Federal Reserve reflect that the Company exceeded all minimum capital levels and the Company's SCB was floored at 2.5 percent from the fourth quarter of 2024 through the third quarter of 2025. As a Category IV bank, Regions was not required to participate in the 2025 stress test. However, the Company did receive results from the Federal Reserve during the second quarter of 2025 and from the fourth quarter of 2025 through the third quarter of 2026, the Company's SCB is expected to remain at 2.5 percent.

On April 20, 2022, the Board authorized the repurchase of up to $2.5 billion of the Company's common stock, permitting purchases from the second quarter of 2022 through the fourth quarter of 2024 and was subsequently extended on December 10, 2024 permitting repurchases through the fourth quarter of 2025. As of June 30, 2025, Regions had repurchased approximately 51 million shares of common stock at a total cost of $1.0 billion under this plan. All of these shares were immediately retired upon repurchase and therefore were not included in treasury stock.

Regions declared $0.25 per share in cash dividends for both the first and second quarters of 2025, totaling $0.50 per common share for the first six months of 2025 as compared to $0.24 per common share for the same quarterly periods of 2024 totaling $0.48 per common share for the first six months of 2024.

On July 16, 2025, the Board declared a $0.015 increase to the quarterly common stock dividend to $0.265 which will be payable on October 1, 2025, to shareholders of record at close of business on September 2, 2025.

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The following tables present the balances and activity in AOCI on a pre-tax and net of tax basis for the three and six months ended June 30, 2025 and 2024:



	Three Months Ended June 30, 2025
	Pre-tax AOCI Activity		Tax Effect (1)		Net AOCI Activity
	(In millions)
Total accumulated other comprehensive income (loss), beginning of period	$	(3,053)	$	770	$	(2,283)

Unrealized losses on securities transferred to held to maturity:
Beginning balance	$	(875)	$	219	$	(656)
Unrealized gains (losses) on securities transferred from available for sale during the period	(74)		19		(55)
Reclassification adjustments for amortization on unrealized losses on securities transferred to held for maturity (2)	43		(11)		32
Change in AOCI from securities held to maturity activity in the period	(31)		8		(23)
Ending balance	$	(906)	$	227	$	(679)
Unrealized gains (losses) on securities available for sale:
Beginning balance	$	(1,322)	$	333	$	(989)
Unrealized (gains) losses on securities transferred to held to maturity during the period	74		(19)		55
Unrealized gains (losses) arising during the period	170		(43)		127
Reclassification adjustments for securities (gains) losses realized in net income (3)	1		—		1
Change in AOCI from securities available for sale activity in the period	245		(62)		183
Ending balance	$	(1,077)	$	271	$	(806)
Unrealized gains (losses) on derivative instruments designated as cash flow hedges:
Beginning balance	$	(323)	$	82	$	(241)
Unrealized gains (losses) on derivative instruments arising during the period	142		(36)		106
Reclassification adjustments for (gains) losses on derivative instruments realized in net income (2)	60		(15)		45
Change in AOCI from derivative activity in the period	202		(51)		151
Ending balance	$	(121)	$	31	$	(90)
Defined benefit pension plans and other post employment benefit plans:
Beginning balance	$	(542)	$	136	$	(406)

Reclassification adjustments for amortization of actuarial (gains) losses and settlements realized in net income (4)	6		(1)		5

Ending balance	$	(536)	$	135	$	(401)

Total other comprehensive income	422		(106)		316

Total accumulated other comprehensive income (loss), end of period	$	(2,631)	$	664	$	(1,967)



	Three Months Ended June 30, 2024
	Pre-tax AOCI Activity		Tax Effect (1)		Net AOCI Activity
	(In millions)
Total accumulated other comprehensive income (loss), beginning of period	$	(4,325)	$	1,101	$	(3,224)

Unrealized losses on securities transferred to held to maturity:
Beginning balance	$	(9)	$	1	$	(8)
Reclassification adjustments for amortization on unrealized losses (2)	1		—		1
Ending balance	$	(8)	$	1	$	(7)
Unrealized gains (losses) on securities available for sale:
Beginning balance	$	(3,027)	$	771	$	(2,256)
Unrealized gains (losses) arising during the period	(97)		24		(73)
Reclassification adjustments for securities (gains) losses realized in net income (3)	50		(12)		38
Change in AOCI from securities available for sale activity in the period	(47)		12		(35)
Ending balance	$	(3,074)	$	783	$	(2,291)
Unrealized gains (losses) on derivative instruments designated as cash flow hedges:
Beginning balance	$	(689)	$	176	$	(513)
Unrealized gains (losses) on derivative instruments arising during the period	(130)		33		(97)
Reclassification adjustments for (gains) losses on derivative instruments realized in net income (2)	116		(30)		86
Change in AOCI from derivative activity in the period	(14)		3		(11)
Ending balance	$	(703)	$	179	$	(524)
Defined benefit pension plans and other post employment benefit plans:
Beginning balance	$	(600)	$	153	$	(447)

Reclassification adjustments for amortization of actuarial (gains) losses and settlements realized in net income (4)	6		(2)		4

Ending balance	$	(594)	$	151	$	(443)

Total other comprehensive income (loss)	(54)		13		(41)
Total accumulated other comprehensive income (loss), end of period	$	(4,379)	$	1,114	$	(3,265)


	Six Months Ended June 30, 2025
	Pre-tax AOCI Activity		Tax Effect and Other (1)		Net AOCI Activity
	(In millions)
Total accumulated other comprehensive income (loss), beginning of period	$	(3,912)	$	984	$	(2,928)

Unrealized losses on securities transferred to held to maturity:
Beginning balance	$	(744)	$	188	$	(556)
Unrealized gains (losses) on securities transferred from available for sale during the period	(227)		57		(170)
Reclassification adjustments for amortization on unrealized losses on securities transferred to held for maturity (2)	65		(18)		47
Change in AOCI from securities held to maturity activity in the period	(162)		39		(123)
Ending balance	$	(906)	$	227	$	(679)
Unrealized gains (losses) on securities available for sale:
Beginning balance	$	(1,958)	$	490	$	(1,468)
Unrealized (gains) losses on securities transferred to held to maturity during the period	227		(57)		170
Unrealized gains (losses) arising during the period	628		(156)		472
Reclassification adjustments for securities (gains) losses realized in net income (3)	26		(6)		20
Change in AOCI from securities available for sale activity in the period	881		(219)		662
Ending balance	$	(1,077)	$	271	$	(806)
Unrealized gains (losses) on derivative instruments designated as cash flow hedges:
Beginning balance	$	(662)	$	168	$	(494)
Unrealized gains (losses) on derivative instruments arising during the period	414		(105)		309
Reclassification adjustments for (gains) losses on derivative instruments realized in net income (2)	127		(32)		95
Change in AOCI from derivative activity in the period	541		(137)		404
Ending balance	$	(121)	$	31	$	(90)
Defined benefit pension plans and other post employment benefit plans:
Beginning balance	$	(548)	$	138	$	(410)

Reclassification adjustments for amortization of actuarial (gains) losses and settlements realized in net income (4)	12		(3)		9

Ending balance	$	(536)	$	135	$	(401)

Total other comprehensive income (loss)	1,272		(320)		952
Other	9		—		9
Total accumulated other comprehensive income (loss), end of period	$	(2,631)	$	664	$	(1,967)


	Six Months Ended June 30, 2024
	Pre-tax AOCI Activity		Tax Effect (1)		Net AOCI Activity
	(In millions)
Total accumulated other comprehensive income (loss), beginning of period	$	(3,773)	$	961	$	(2,812)

Unrealized losses on securities transferred to held to maturity:
Beginning balance	$	(9)	$	1	$	(8)
Reclassification adjustments for amortization on unrealized losses (2)	1		—		1
Ending balance	$	(8)	$	1	$	(7)
Unrealized gains (losses) on securities available for sale:
Beginning balance	$	(2,759)	$	703	$	(2,056)
Unrealized gains (losses) arising during the period	(415)		105		(310)
Reclassification adjustments for securities (gains) losses realized in net income (3)	100		(25)		75
Change in AOCI from securities available for sale activity in the period	(315)		80		(235)
Ending balance	$	(3,074)	$	783	$	(2,291)
Unrealized gains (losses) on derivative instruments designated as cash flow hedges:
Beginning balance	$	(399)	$	102	$	(297)
Unrealized gains (losses) on derivative instruments arising during the period	(537)		137		(400)
Reclassification adjustments for (gains) losses on derivative instruments realized in net income (2)	233		(60)		173
Change in AOCI from derivative activity in the period	(304)		77		(227)
Ending balance	$	(703)	$	179	$	(524)
Defined benefit pension plans and other post employment benefit plans:
Beginning balance	$	(606)	$	155	$	(451)

Reclassification adjustments for amortization of actuarial (gains) losses and settlements realized in net income (4)	12		(4)		8

Ending balance	$	(594)	$	151	$	(443)

Total other comprehensive income (loss)	(606)		153		(453)
Total accumulated other comprehensive income (loss), end of period	$	(4,379)	$	1,114	$	(3,265)

(1)The impact of all AOCI activity is shown net of the related tax impact, calculated using a nominal tax rate of approximately 25 percent.

(2)Reclassification amount is recognized in net interest income in the consolidated statements of income.

(3)Reclassification amount is recognized in securities gains (losses), net in the consolidated statements of income.

(4)Reclassification amount is recognized in other non-interest expense in the consolidated statements of income. Additionally, these accumulated other comprehensive income (loss) components are included in the computation of net periodic pension cost (see Note 8 for additional details).

NOTE 7. EARNINGS PER COMMON SHARE

The following table sets forth the computation of basic earnings per common share and diluted earnings per common share:


	Three Months Ended June 30				Six Months Ended June 30
	2025		2024		2025		2024
	(In millions, except per share data)
Numerator:
Net income	$	563	$	501	$	1,053	$	869
Preferred stock dividends and other (1)	(29)		(24)		(54)		(49)


Net income available to common shareholders	$	534	$	477	$	999	$	820
Denominator:
Weighted-average common shares outstanding—basic	$	898	$	917	$	902	$	919
Potential common shares	2		1		3		1
Weighted-average common shares outstanding—diluted	$	900	$	918	$	905	$	920






Earnings per common share:
Basic	$	0.59	$	0.52	$	1.11	$	0.89
Diluted	$	0.59	$	0.52	$	1.10	$	0.89

(1) Preferred stock dividends and other for the three and six months ended June 30, 2025 included $4 million of issuance costs associated with the redemption of Series D preferred shares in the second quarter of 2025. See Note 6 for additional information.

The effects from the assumed exercise of restricted stock units and performance stock units totaling 5 million and 4 million for the three and six months ended June 30, 2025, respectively, were not included in the above computations of diluted earnings per common share because such amounts would have had an antidilutive effect on earnings per common share.

The effects from the assumed exercise of 7 million and 6 million in restricted stock units and awards and performance stock units for the three and six months ended June 30, 2024, respectively, were not included in the above computations of diluted earnings per common share because such amounts would have had an antidilutive effect on earnings per common share.

NOTE 8. PENSION AND OTHER POSTRETIREMENT BENEFITS

Regions' defined benefit pension plans cover certain employees as the pension plans are closed to new entrants. The Company also sponsors a SERP, which is a non-qualified pension plan that provides certain senior executive officers defined benefits in relation to their compensation.

Net periodic pension cost included the following components:


	Three Months Ended June 30
	Qualified Plans				Non-qualified Plans					Total
	2025		2024			2025		2024			2025		2024
	(In millions)
Service cost	$	5	$	4		$	—	$	1		$	5	$	5
Interest cost	20		21			1		1			21		22
Expected return on plan assets	(31)		(31)			—		—			(31)		(31)
Amortization of actuarial loss	6		6			—		—			6		6


Net periodic pension cost	$	—	$	—		$	1	$	2		$	1	$	2



	Six Months Ended June 30
	Qualified Plans				Non-qualified Plans					Total
	2025		2024			2025		2024			2025		2024
	(In millions)
Service cost	$	10	$	10		$	—	$	1		$	10	$	11
Interest cost	40		41			2		2			42		43
Expected return on plan assets	(62)		(62)			—		—			(62)		(62)
Amortization of actuarial loss	11		11			1		1			12		12


Net periodic pension (benefit) cost	$	(1)	$	—		$	3	$	4		$	2	$	4

The service cost component of net periodic pension (benefit) cost is recorded in salaries and employee benefits on the consolidated statements of income. Components other than service cost are recorded in other non-interest expense on the consolidated statements of income.

Regions' funding policy for the qualified plans is to contribute annually at least the amount required by IRS minimum funding standards. Regions made no contributions to qualified plans during the first six months of 2025.

Regions also provides other postretirement benefits, such as defined benefit health care plans and life insurance plans, that cover certain retired employees. There was no material impact from other postretirement benefits on the consolidated financial statements for the six months ended June 30, 2025 or 2024.

NOTE 9. DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES

The following tables present the notional amount and estimated fair value of derivative instruments:


	June 30, 2025						December 31, 2024
	Notional Amount(1)		Estimated Fair Value				Notional Amount		Estimated Fair Value
	Gain(1)		Loss(1)		Gain(1)		Loss(1)
	(In millions)
Derivatives in fair value hedging relationships:
Interest rate swaps	$	6,337	$	3	$	91	$	5,484	$	26	$	95

Derivatives in cash flow hedging relationships:
Interest rate swaps	35,198		96		261		36,660		—		718
Interest rate options	2,000		7		3		2,000		4		6
Total derivatives in cash flow hedging relationships	37,198		103		264		38,660		4		724
Total derivatives designated as hedging instruments	$	43,535	$	106	$	355	$	44,144	$	30	$	819
Derivatives not designated as hedging instruments:
Interest rate swaps	$	92,942	$	1,150	$	1,112	$	94,803	$	1,608	$	1,598
Interest rate options	11,624		24		12		11,005		31		24
Interest rate futures and forward commitments	1,552		10		3		1,247		8		4
Other contracts	14,103		206		200		12,539		139		106
Total derivatives not designated as hedging instruments	$	120,221	$	1,390	$	1,327	$	119,594	$	1,786	$	1,732
Total derivatives	$	163,756	$	1,496	$	1,682	$	163,738	$	1,816	$	2,551

Total gross derivative instruments, before netting			$	1,496	$	1,682			$	1,816	$	2,551
Less: Netting adjustments (2)			1,270		1,096				1,703		1,615
Total gross derivative instruments, after netting			$	226	$	586			$	113	$	936

(1)Derivatives in a gain position are recorded as other assets and derivatives in a loss position are recorded as other liabilities on the consolidated balance sheets. Includes accrued interest as applicable. The table reflects net notional presentation and gross asset and liability presentation to capture the economic impact of the trades.

(2)Netting adjustments represent amounts recorded to convert derivative assets and derivative liabilities from a gross basis to a net basis in accordance with applicable accounting guidance. The net basis takes into account the impact of cash collateral received or posted, legally enforceable master netting agreements, and variation margin that allow Regions to settle derivative contracts with the counterparty on a net basis and to offset the net position with the related cash collateral. Cash collateral, all of which is included as a netting adjustment, totaled $75 million and $106 million for derivative assets at June 30, 2025 and December 31, 2024, respectively. Cash collateral totaled $105 million and $87 million for derivative liabilities at June 30, 2025 and December 31, 2024, respectively.

HEDGING DERIVATIVES

Derivatives entered into to manage interest rate risk and facilitate asset/liability management strategies are designated as hedging derivatives. Derivative financial instruments that qualify in a hedging relationship are classified, based on the exposure being hedged, as either fair value hedges or cash flow hedges. See Note 1 "Summary of Significant Accounting Policies" in the Annual Report on Form 10-K for the year ended December 31, 2024 for additional information regarding accounting policies for derivatives.

FAIR VALUE HEDGES

Fair value hedge relationships mitigate exposure to the change in fair value of an asset, liability or firm commitment.

Regions enters into interest rate swap agreements to manage interest rate exposure on the Company’s fixed-rate borrowings and time deposits. These agreements involve the receipt of fixed-rate amounts in exchange for floating-rate interest payments over the life of the agreements. Regions also enters into interest rate swap agreements to manage interest rate exposure on certain of the Company's fixed-rate prepayable and non-prepayable debt securities available for sale. These agreements involve the payment of fixed-rate amounts in exchange for floating-rate interest receipts.

CASH FLOW HEDGES

Cash flow hedge relationships mitigate exposure to the variability of future cash flows or other forecasted transactions.

Regions enters into interest rate swaps, options (e.g., floors, caps and collars), and agreements with a combination of these instruments to manage overall cash flow changes related to interest rate risk exposure on variable rate loans. The agreements effectively modify the Company’s exposure to interest rate risk by utilizing receive fixed/pay SOFR interest rate swaps and interest rate options. As of June 30, 2025, Regions was hedging its exposure to the variability in future cash flows into 2034.

As of June 30, 2025, cash flow hedges were held at a pre-tax net loss of $121 million, which includes pre-tax net gains of $20 million related to terminated cash flow floors and swaps. Regions expects to reclassify into earnings approximately $155

million in pre-tax losses due to the net receipt/ payment of interest and amortization on all cash flow hedges within the next twelve months. Included in this amount is $11 million in pre-tax net gains related to the amortization of terminated cash flow floors and swaps.

The following tables present the effect of hedging derivative instruments on the consolidated statements of income and the total amounts for the respective line items affected:



	Three Months Ended June 30, 2025
	Interest Income				Interest Expense
	Debt securities		Loans, including fees		Long-term borrowings
	(In millions)
Total income (expense) presented in the consolidated statements of income	$	286	$	1,377	$	(77)

Gains/(losses) on fair value hedging relationships:
Interest rate contracts:
Amounts related to interest settlements on derivatives	$	5	$	—	$	(7)
Recognized on derivatives	(33)		—		9
Recognized on hedged items	33		—		(9)
Income (expense) recognized on fair value hedges	$	5	$	—	$	(7)

Gains/(losses) on cash flow hedging relationships: (1)
Interest rate contracts:
Realized gains (losses) reclassified from AOCI into net income, pre-tax	$	—	$	(60)	$	—
Income (expense) recognized on cash flow hedges	$	—	$	(60)	$	—



	Three Months Ended June 30, 2024
	Interest Income				Interest Expense
	Debt securities		Loans, including fees		Long-term borrowings		Deposits
	(In millions)
Total income (expense) presented in the consolidated statements of income	$	219	$	1,432	$	(61)	$	(502)

Gains/(losses) on fair value hedging relationships:
Interest rate contracts:
Amounts related to interest settlements on derivatives	$	2	$	—	$	(17)	$	—
Recognized on derivatives	—		—		10		—
Recognized on hedged items	—		—		(10)		—
Income (expense) recognized on fair value hedges	$	2	$	—	$	(17)	$	—

Gains/(losses) on cash flow hedging relationships: (1)
Interest rate contracts:
Realized gains (losses) reclassified from AOCI into net income, pre-tax	$	—	$	(116)	$	—	$	—
Income (expense) recognized on cash flow hedges	$	—	$	(116)	$	—	$	—



	Six Months Ended June 30, 2025
	Interest Income				Interest Expense
	Debt securities		Loans, including fees		Long-term borrowings
	(In millions)
Total income (expense) presented in the consolidated statements of income	$	552	$	2,719	$	(162)

Gains/(losses) on fair value hedging relationships:
Interest rate contracts:
Amounts related to interest settlements on derivatives	$	8	$	—	$	(21)
Recognized on derivatives	(79)		—		34
Recognized on hedged items	79		—		(34)
Income (expense) recognized on fair value hedges	$	8	$	—	$	(21)

Gains/(losses) on cash flow hedging relationships: (1)
Interest rate contracts:
Realized gains (losses) reclassified from AOCI into net income, pre-tax	$	—	$	(127)	$	—
Income (expense) recognized on cash flow hedges	$	—	$	(127)	$	—



	Six Months Ended June 30, 2024
	Interest Income				Interest Expense
	Debt securities		Loans, including fees		Long-term borrowings		Deposits
	(In millions)
Total income (expense) presented in the consolidated statements of income	$	428	$	2,853	$	(105)	$	(997)

Gains/(losses) on fair value hedging relationships:
Interest rate contracts:
Amounts related to interest settlements on derivatives	$	5	$	—	$	(34)	$	—
Recognized on derivatives	6		—		6		(1)
Recognized on hedged items	(7)		—		(6)		1
Income (expense) recognized on fair value hedges	$	4	$	—	$	(34)	$	—

Gains/(losses) on cash flow hedging relationships: (1)
Interest rate contracts:
Realized gains (losses) reclassified from AOCI into net income, pre-tax	$	—	$	(233)	$	—	$	—
Income (expense) recognized on cash flow hedges	$	—	$	(233)	$	—	$	—

(1)See Note 6 for gain or (loss) recognized for cash flow hedges in AOCI.

The following tables present the carrying amount and associated cumulative basis adjustment related to the application of hedge accounting that is included in the carrying amount of hedged assets and liabilities in fair value hedging relationships.


	June 30, 2025				December 31, 2024
	Hedged Items Currently Designated					Hedged Items Currently Designated
	Carrying Amount of Assets/(Liabilities)		Hedge Accounting Basis Adjustment				Carrying Amount of Assets/(Liabilities)		Hedge Accounting Basis Adjustment
	(In millions)				(In millions)
Debt securities available for sale (1)	$	6,716	$	35			$	3,304	$	(22)
Long-term borrowings	(2,342)		57				(3,058)		91

(1) Carrying amount represents amortized cost basis.

At June 30, 2025 and December 31, 2024, the Company designated interest rate swaps as fair value hedges of debt securities available for sale under which the Company designated $1.8 billion and $750 million, respectively, as the hedged amount from a closed portfolio of prepayable financial assets with a carrying amount of $4.5 billion and $1.8 billion, respectively. At June 30, 2025, approximately $10 million of the hedge accounting basis adjustments related to active portfolio layer method hedges. During 2025 the Company terminated fair value hedges related to available for sale debt securities. The terminated hedges had a remaining basis adjustment of $23 million.

DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS

The Company holds a portfolio of derivative instruments not designated as accounting hedges, therefore these derivatives are marked-to-market through earnings (in capital markets income or mortgage income as appropriate) and included in other assets and other liabilities, as appropriate. Refer to Note 20 "Derivative Financial Instruments and Hedging Activities" in the Annual Report on Form 10-K for the year ended December 31, 2024 for more information regarding these derivative instruments.

The following table presents the location and amount of gain or (loss) recognized in income on derivatives not designated as hedging instruments in the consolidated statements of income for the periods presented below:


	Three Months Ended June 30				Six Months Ended June 30
Derivatives Not Designated as Hedging Instruments	2025		2024		2025		2024
	(In millions)
Capital markets income:
Interest rate swaps	$	5	$	6	$	11	$	15
Interest rate options	13		14		21		23
Interest rate futures and forward commitments	5		6		8		14
Other contracts	(19)		(1)		(21)		5
Total capital markets income	4		25		19		57
Mortgage income:
Interest rate swaps	(4)		(8)		12		(23)
Interest rate options	(1)		(2)		—		(1)
Interest rate futures and forward commitments	1		(2)		—		8
Total mortgage income	(4)		(12)		12		(16)
	$	—	$	13	$	31	$	41

CREDIT DERIVATIVES

Regions has both bought and sold credit protection in the form of participations on interest rate swaps (swap participations). These swap participations, which meet the definition of credit derivatives, were entered into in the ordinary course of business to serve the credit needs of customers. Swap participations, whereby Regions has purchased credit protection, entitle Regions to receive a payment from the counterparty if the customer fails to make payment on any amounts due to Regions upon early termination of the swap transaction and have maturities between 2025 and 2030. Swap participations, whereby Regions has sold credit protection have maturities between 2025 and 2035. For contracts where Regions sold credit protection, Regions would be required to make payment to the counterparty if the customer fails to make payment on any amounts due to the counterparty upon early termination of the swap transaction. Regions bases the current status of the prepayment/performance risk on bought and sold credit derivatives on recently issued internal risk ratings consistent with the risk management practices of unfunded commitments.

Regions’ maximum potential amount of future payments under these contracts as of June 30, 2025 was approximately $534 million. This scenario occurs if variable interest rates were at zero percent and all counterparties defaulted with zero recovery. The fair value of sold protection at June 30, 2025 and 2024 was immaterial. In transactions where Regions has sold credit protection, recourse to collateral associated with the original swap transaction is available to offset some or all of Regions’ obligation.

CONTINGENT FEATURES

Certain of Regions’ derivative instrument contracts with broker-dealers contain credit-related termination provisions and/or credit-related provisions regarding the posting of collateral, allowing those broker-dealers to terminate the contracts in the event that Regions’ and/or Regions Bank’s credit ratings falls below specified ratings from certain major credit rating agencies. The aggregate fair values of all derivative instruments with any credit-risk-related contingent features that were in a liability position on June 30, 2025 and December 31, 2024, were $47 million and $47 million, respectively, for which Regions had posted collateral of $43 million and $34 million, respectively, in the normal course of business.

NOTE 10. FAIR VALUE MEASUREMENTS

See Note 1 "Summary of Significant Accounting Policies" to the consolidated financial statements of the Annual Report on Form 10-K for the year ended December 31, 2024 for a description of valuation methodologies for assets and liabilities measured at fair value on a recurring and non-recurring basis. Assets and liabilities measured at fair value rarely transfer between Level 1 and Level 2 measurements. Marketable equity securities and debt securities available for sale may be periodically transferred to or from Level 3 valuation based on management’s conclusion regarding the observability of inputs used in valuing the securities. Such transfers are accounted for as if they occur at the beginning of a reporting period.

The following table presents assets and liabilities measured at estimated fair value on a recurring basis:


	June 30, 2025								December 31, 2024
	Level 1		Level 2		Level 3 (1)		Total Estimated Fair Value		Level 1		Level 2		Level 3 (1)		Total Estimated Fair Value
	(In millions)
Recurring fair value measurements
Debt securities available for sale:
U.S. Treasury securities	$	2,105	$	—	$	—	$	2,105	$	2,003	$	—	$	—	$	2,003
Federal agency securities	—		487		—		487		—		444		—		444
Obligations of states and political subdivisions	—		2		—		2		—		2		—		2
Mortgage-backed securities:
Residential agency	—		18,556		—		18,556		—		18,945		—		18,945

Commercial agency	—		4,536		—		4,536		—		4,090		—		4,090
Commercial non-agency	—		83		—		83		—		82		—		82
Corporate and other debt securities	—		561		3		564		—		655		3		658
Total debt securities available for sale	$	2,105	$	24,225	$	3	$	26,333	$	2,003	$	24,218	$	3	$	26,224
Loans held for sale	$	—	$	286	$	—	$	286	$	—	$	234	$	—	$	234
Marketable equity securities in other earning assets	$	913	$	—	$	—	$	913	$	819	$	—	$	—	$	819
Residential mortgage servicing rights	$	—	$	—	$	988	$	988	$	—	$	—	$	1,007	$	1,007
Commercial mortgage servicing rights through non-DUS agency programs	$	—	$	—	$	93	$	93	$	—	$	—	$	97	$	97
Derivative assets (2):
Interest rate swaps	$	—	$	1,249	$	—	$	1,249	$	—	$	1,634	$	—	$	1,634
Interest rate options	—		22		9		31		—		30		5		35
Interest rate futures and forward commitments	—		10		—		10		—		8		—		8
Other contracts	4		202		—		206		13		126		—		139
Total derivative assets	$	4	$	1,483	$	9	$	1,496	$	13	$	1,798	$	5	$	1,816

Derivative liabilities (2):
Interest rate swaps	$	—	$	1,464	$	—	$	1,464	$	—	$	2,411	$	—	$	2,411
Interest rate options	—		15		—		15		—		30		—		30
Interest rate futures and forward commitments	—		3		—		3		—		4		—		4
Other contracts	4		196		—		200		3		103				106
Total derivative liabilities	$	4	$	1,678	$	—	$	1,682	$	3	$	2,548	$	—	$	2,551
Securities sold, but not yet purchased	$	91	$	—	$	—	$	91	$	147	$	—	$	—	$	147

(1)All following disclosures related to Level 3 recurring assets do not include those deemed to be immaterial.

(2)As permitted under U.S. GAAP, variation margin collateral payments made or received for derivatives that are centrally cleared are legally characterized as settled. As such, these derivative assets and derivative liabilities and the related variation margin collateral are presented on a net basis on the balance sheet.

Assets and liabilities in all levels could result in volatile and material price fluctuations. Realized and unrealized gains and losses on Level 3 assets represent only a portion of the risk to market fluctuations in Regions’ consolidated balance sheets. See Note 5 for a reconciliation of beginning and ending balances of these MSRs for three and six months ended June 30, 2025 and 2024.

RECURRING FAIR VALUE MEASUREMENTS USING SIGNIFICANT UNOBSERVABLE INPUTS

Residential mortgage servicing rights

The significant unobservable inputs used in the fair value measurement of residential MSRs are CPR and OAS. This valuation requires generating cash flow projections over multiple interest rate scenarios and discounting those cash flows at a risk-adjusted rate. Additionally, the impact of prepayments and changes in the OAS are based on a variety of underlying inputs including servicing costs. Increases or decreases to the underlying cash flow inputs will have a corresponding impact on the value of the MSR asset. The net change in unrealized gains (losses) included in earnings related to MSRs held at period end are disclosed as the changes in valuation inputs or assumptions included in the MSR rollforward table in Note 5 .

Commercial mortgage servicing rights through non-DUS agency programs

The significant unobservable inputs used in the fair value measurement of commercial MSRs are CPR and the discount rate. This valuation requires generating cash flow projections over multiple interest rate scenarios and discounting those cash flows at a risk-adjusted rate. Additionally, the impact of prepayments and changes in the discount rate are based on a variety of underlying inputs including servicing costs. Increases or decreases to the underlying cash flow inputs will have a corresponding impact on the value of the MSR asset. The net change in unrealized gains (losses) included in earnings related to MSRs held at period end are disclosed as the changes in valuation inputs or assumptions included in the MSR rollforward table in Note 5 .

The following tables present detailed information regarding material assets and liabilities measured at fair value using significant unobservable inputs (Level 3) as of June 30, 2025 and December 31, 2024. The tables include the valuation techniques and the significant unobservable inputs utilized. The range of each significant unobservable input as well as the weighted-average within the range utilized at June 30, 2025 and December 31, 2024 are included. Following the tables are descriptions of the valuation techniques and the sensitivity of the techniques to changes in the significant unobservable inputs.


	June 30, 2025
	Level 3 Estimated Fair Value	Valuation Technique	Unobservable Input(s)	Quantitative Range of Unobservable Inputs and (Weighted-Average)
	(Dollars in millions)
Recurring fair value measurements:
Residential mortgage servicing rights (1)	$988	Discounted cash flow	Weighted-average CPR (%)	3.9% - 16.8% (7.4%)
			OAS (%)	4.7% - 8.0% (5.0%)
Commercial mortgage servicing rights through non-DUS agency programs (1)	$93	Discounted cash flow	Weighted-average CPR (%)	6.3% - 7.5% (7.2%)
			Discount rate (%)	8.0% - 10.0% (8.2%)

(1)See Note 5 for additional disclosures related to assumptions used in the fair value calculation for residential and commercial mortgage servicing rights.


	December 31, 2024
	Level 3 Estimated Fair Value	Valuation Technique	Unobservable Input(s)	Quantitative Range of Unobservable Inputs and (Weighted-Average)
	(Dollars in millions)
Recurring fair value measurements:
Residential mortgage servicing rights (1)	$1,007	Discounted cash flow	Weighted-average CPR (%)	4.6% - 23.1% (8.0%)
			OAS (%)	4.8% -7.7% (5.1%)
Commercial mortgage servicing rights through non-DUS agency programs (1)	$97	Discounted cash flow	Weighted-average CPR (%)	5.4% - 10.6% (7.7%)
			Discount rate (%)	7.0% -8.0% (7.1%)

(1)See Note 6 to the consolidated financial statements of the Annual Report on Form 10-K for the year ended December 31, 2024 for additional disclosures related to assumptions used in the fair value calculations for residential and commercial mortgage servicing rights.

FAIR VALUE OPTION

Regions has elected the fair value option for all eligible agency residential first mortgage loans originated with the intent to sell. This election allows for a more effective offset of the changes in fair values of the loans and the derivative instruments used to economically hedge them without the burden of complying with the requirements for hedge accounting. Fair values of residential first mortgage loans held for sale are based on traded market prices of similar assets where available and/or discounted cash flows at market interest rates, adjusted for securitization activities that include servicing values and market conditions, and are recorded in loans held for sale. At June 30, 2025, the aggregate fair value of these loans totaled $261 million compared to aggregate unpaid principal of $254 million. At December 31, 2024, the aggregate fair value of these loans totaled $222 million compared to aggregate unpaid principal of $219 million.

Interest income on residential first mortgage loans held for sale is recognized based on contractual rates and is reflected in interest income on loans held for sale. Net gains and losses resulting from changes in fair value of residential mortgage loans held for sale, which were recorded in mortgage income in the consolidated statements of income during the three and six months ended June 30, 2025 and 2024, were immaterial. These changes in fair value are mostly offset by economic hedging activities. An immaterial portion of these amounts was attributable to changes in instrument-specific credit risk.

NON-RECURRING FAIR VALUE MEASUREMENTS

Items measured at fair value on a non-recurring basis include loans held for sale for which the fair value option has not been elected, foreclosed property and other real estate and equity investments without a readily determinable fair value; all of which may be considered either Level 2 or Level 3 valuation measurements. Non-recurring fair value adjustments related to loans held for sale, foreclosed property and other real estate are typically a result of the application of lower of cost or fair value

accounting during the period. Non-recurring fair value adjustments related to equity investments without readily determinable fair values are the result of impairments or price changes from observable transactions. The balances of each of these assets, as well as the related fair value adjustments during the periods, were immaterial at both June 30, 2025 and December 31, 2024.

FINANCIAL INSTRUMENTS NOT RECORDED AT FAIR VALUE

For financial instruments not recorded at fair value, estimates of fair value are based on relevant market data and information about the instruments. The following tables present the carrying amounts and estimated fair values, as well as the level within the fair value hierarchy, of the Company’s financial instruments not recorded at fair value as of June 30, 2025 and December 31, 2024.


	June 30, 2025
	Carrying Amount		Estimated Fair Value(1)		Level 1		Level 2		Level 3
	(In millions)
Financial assets:
Cash and cash equivalents	$	11,175	$	11,175	$	11,175	$	—	$	—
Debt securities held to maturity	5,972		5,814		—		5,814		—

Loans held for sale	309		309		—		271		38
Loans (excluding leases), net of unearned income and allowance for loan losses(2)(3)	93,513		90,813		—		—		90,813
Other earning assets	769		769		—		769		—


Financial liabilities:

Deposits with no stated maturity(4)	115,625		115,625		—		115,625		—
Time deposits(4)	15,294		15,265		—		15,265		—

Long-term borrowings	5,279		5,373		—		5,372		1
Loan commitments and letters of credit	164		164		—		—		164

(1)Estimated fair values are consistent with an exit price concept. The assumptions used to estimate the fair values are intended to approximate those that a market participant would use in a hypothetical orderly transaction. In estimating fair value, the Company makes adjustments for estimated changes in interest rates, market liquidity and credit spreads in the periods they are deemed to have occurred.

(2)The estimated fair value of portfolio loans assumes sale of the loans to a third-party financial investor. Accordingly, the value to the Company if the loans were held to maturity is not reflected in the fair value estimate. The fair value discount on the loan portfolio's net carrying amount at June 30, 2025 was $2.7 billion or 2.9 percent.

(3)Excluded from this table is the sales-type, direct financing, and leveraged lease carrying amount of $1.6 billion at June 30, 2025.

(4)The fair value of non-interest-bearing deposit accounts, interest-bearing checking accounts, savings accounts, and money market accounts is the amount payable on demand at the reporting date (i.e., the carrying amount) as these instruments have an indeterminate maturity date. Fair values for time deposits are estimated by using discounted cash flow analyses, based on market spreads to benchmark rates.


	December 31, 2024
	Carrying Amount		Estimated Fair Value(1)		Level 1		Level 2		Level 3
	(In millions)
Financial assets:
Cash and cash equivalents	$	10,712	$	10,712	$	10,712	$	—	$	—
Debt securities held to maturity	4,427		4,226		—		4,226		—

Loans held for sale	360		360		—		360		—
Loans (excluding leases), net of unearned income and allowance for loan losses(2)(3)	93,424		89,907		—		—		89,907
Other earning assets	797		797		—		797		—

Financial liabilities:

Deposits with no stated maturity(4)	111,883		111,883		—		111,883		—
Time deposits(4)	15,720		15,694		—		15,694		—
Short-term borrowings	500		500		—		500		—
Long-term borrowings	5,993		6,059		—		6,058		1
Loan commitments and letters of credit	149		149		—		—		149

(3)Excluded from this table is the sales-type, direct financing, and leveraged lease carrying amount of $1.7 billion at December 31, 2024.

NOTE 11. BUSINESS SEGMENT INFORMATION

Each of Regions’ reportable segments is a strategic business unit that serves specific needs of Regions’ customers based on the products and services provided. The Company has three reportable segments: Corporate Bank, Consumer Bank, and Wealth Management, with the remainder in Other. The segments are based on the manner in which the CODM reviews the Company's performance. The Company's CODM is the CEO, President and Chair of the Board. As a part of the CODM review, pre-tax income is utilized to allocate resources amongst segments. Additional information about the Company's reportable segments is included in Regions' Annual Report on Form 10-K for the year ended December 31, 2024.

The application and development of management reporting methodologies is a dynamic process and is subject to periodic enhancements. As these enhancements are made, financial results presented by each reportable segment may be periodically revised and the prior periods updated to reflect these enhancements. Accordingly, the prior periods were updated to reflect these enhancements.

The following tables present financial information, including non-interest income disaggregated by major product category, for each reportable segment:



	Three Months Ended June 30, 2025
	Corporate Bank		Consumer Bank		Wealth Management		Other		Consolidated
	(In millions)
Net interest income	$	474	$	742	$	43	$	—	$	1,259
Provision for (benefit from) credit losses	88		68		2		(32)		126
Non-interest income:
Service charges on deposit accounts	60		90		1		—		151
Card and ATM fees	11		114		—		—		125
Investment management and trust fee income	—		—		90		—		90
Capital markets income	83		—		—		—		83
Mortgage income	—		48		—		—		48
Investment services fee income	—		—		43		—		43
Commercial credit fee income	29		—		—		—		29
Bank-owned life insurance	—		—		—		24		24
Securities gains (losses), net	—		—		—		(1)		(1)
Market value adjustments on employee benefit assets	—		—		—		16		16
Other miscellaneous income (loss)	42		20		1		(25)		38
Total non-interest income	225		272		135		14		646
Non-interest expense:
Salaries and employee benefits	137		179		67		275		658
Equipment and software expense	5		24		1		74		104
Net occupancy expense	7		55		3		7		72
Other expenses (benefits) (1)	162		369		48		(340)		239
Total non-interest expense	311		627		119		16		1,073
Income before income taxes	300		319		57		30		706
Income tax expense (benefit)	75		80		14		(26)		143
Net income	$	225	$	239	$	43	$	56	$	563
Average assets	$	69,768	$	37,479	$	2,112	$	48,615	$	157,974


	Three Months Ended June 30, 2024
	Corporate Bank		Consumer Bank		Wealth Management		Other		Consolidated

	(In millions)
Net interest income	$	449	$	697	$	40	$	—	$	1,186
Provision for (benefit from) credit losses	91		66		2		(57)		$	102
Non-interest income (loss):
Service charges on deposit accounts	54		95		1		1		151
Card and ATM fees	11		109		—		—		120
Investment management and trust fee income	—		—		83		—		83
Capital markets income	67		1		—		—		68
Mortgage income	—		34		—		—		34
Investment services fee income	—		—		39		—		39
Commercial credit fee income	28		—		—		—		28
Bank-owned life insurance	—		—		—		30		30
Securities gains (losses), net	—		—		—		(50)		(50)
Market value adjustments on employee benefit assets	—		—		—		2		2
Other miscellaneous income	39		20		1		(20)		40
Total non-interest income (loss)	199		259		124		(37)		545
Non-interest expense:
Salaries and employee benefits	133		178		63		235		609
Equipment and software expense	5		26		—		69		100
Net occupancy expense	7		51		3		7		68
Other expenses (1)	162		316		42		(293)		227
Total non-interest expense	307		571		108		18		1,004
Income before income taxes	250		319		54		2		625
Income tax expense (benefit)	62		80		14		(32)		124
Net income	$	188	$	239	$	40	$	34	$	501
Average assets	$	68,934	$	38,007	$	2,053	$	43,873	$	152,867


	Six Months Ended June 30, 2025
	Corporate Bank		Consumer Bank		Wealth Management		Other		Consolidated

	(In millions)
Net interest income	$	916	$	1,451	$	86	$	—	$	2,453
Provision for (benefit from) credit losses	175		134		4		(63)		250
Non-interest income (loss):
Service charges on deposit accounts	124		186		2		—		312
Card and ATM fees	22		220		—		—		242
Investment management and trust fee income	—		—		176		—		176
Capital markets income	162		—		1		—		163
Mortgage income	—		88		—		—		88
Investment services fee income	—		—		86		—		86
Commercial credit fee income	56		—		—		—		56
Bank-owned life insurance	—		—		—		47		47
Securities gains (losses), net	—		—		—		(26)		(26)
Market value adjustments on employee benefit assets	—		—		—		13		13

Other miscellaneous income (loss)	84		39		2		(46)		79
Total non-interest income (loss)	448		533		267		(12)		1,236
Non-interest expense:
Salaries and employee benefits	282		358		137		506		1,283
Equipment and software expense	10		48		1		144		203
Net occupancy expense	14		108		6		14		142
Other expenses (benefits) (1)	315		708		94		(633)		484
Total non-interest expense	621		1,222		238		31		2,112
Income before income taxes	568		628		111		20		1,327
Income (loss) before income taxes	141		157		28		(52)		274
Net income	$	427	$	471	$	83	$	72	$	1,053
Average assets	$	69,530	$	37,574	$	2,123	$	48,201	$	157,428


	Six Months Ended June 30, 2024
	Corporate Bank		Consumer Bank		Wealth Management		Other		Consolidated

	(In millions)
Net interest income	$	901	$	1,389	$	80	$	—	$	2,370
Provision for (benefit from) credit losses	182		134		4		(66)		254
Non-interest income (loss):
Service charges on deposit accounts	109		187		2		1		299
Card and ATM fees	22		214		—		—		236
Investment management and trust fee income	—		—		164		—		164
Capital markets income	158		1		—		—		159
Mortgage income	—		75		—		—		75
Investment services fee income	—		—		77		—		77
Commercial credit fee income	55		—		—		—		55
Bank-owned life insurance	—		—		—		53		53
Securities gains (losses), net	—		—		—		(100)		(100)
Market value adjustments on employee benefit assets	—		—		—		17		17

Other miscellaneous income (loss)	73		39		1		(40)		73
Total non-interest income (loss)	417		516		244		(69)		1,108
Non-interest expense:
Salaries and employee benefits	283		361		129		494		1,267
Equipment and software expense	9		52		1		139		201
Net occupancy expense	14		107		6		15		142
Other expenses (benefit) (1)	325		678		83		(561)		525
Total non-interest expense	631		1,198		219		87		2,135
Income (loss) before income taxes	505		573		101		(90)		1,089
Income tax expense (benefit)	126		143		25		(74)		220
Net income (loss)	$	379	$	430	$	76	$	(16)	$	869
Average assets	$	68,938	$	38,021	$	2,044	$	43,152	$	152,155

(1) Other miscellaneous expenses are primarily comprised of outside services, marketing, professional, legal and regulatory expenses, credit and checkcard expenses, and FDIC insurance assessment fees.

NOTE 12. COMMITMENTS, CONTINGENCIES AND GUARANTEES

COMMERCIAL COMMITMENTS

Regions issues off-balance sheet financial instruments in connection with lending activities. The credit risk associated with these instruments is essentially the same as that involved in extending loans to customers and is subject to Regions’ normal credit approval policies and procedures. Regions measures inherent risk associated with these instruments by recording a reserve for unfunded commitments based on an assessment of the likelihood that the guarantee will be funded and the creditworthiness of the customer or counterparty. Collateral is obtained based on management’s assessment of the creditworthiness of the customer. Credit risk is represented in unused commitments to extend credit, standby letters of credit and commercial letters of credit. Refer to Note 23 "Commitments, Contingencies and Guarantees" in the Annual Report on Form 10-K for the year ended December 31, 2024 for more information regarding these instruments.

Credit risk associated with these instruments is represented by the contractual amounts indicated in the following table:


	June 30, 2025		December 31, 2024
	(In millions)
Unused commitments to extend credit	$	65,468	$	63,232
Standby letters of credit	2,142		2,096
Commercial letters of credit	103		58
Liabilities associated with standby letters of credit	33		33
Assets associated with standby letters of credit	34		35
Reserve for unfunded credit commitments	131		116

LEGAL CONTINGENCIES

Regions and its subsidiaries are routinely subject to actual or threatened legal proceedings, including litigation and regulatory matters, arising in the ordinary course of business. Litigation matters range from individual actions involving a single plaintiff to class action lawsuits and can involve claims for substantial or indeterminate alleged damages or for injunctive

or other relief. Regulatory investigations and enforcement matters may involve formal or informal proceedings and other inquiries initiated by various governmental agencies, law enforcement authorities, and self-regulatory organizations, and can result in fines, penalties, restitution, changes to Regions’ business practices, and other related costs, including reputational damage. At any given time, these legal proceedings are at varying stages of adjudication, arbitration, or investigation, and may relate to a variety of topics, including common law tort and contract claims, as well as statutory consumer protection-related claims, among others.

Assessment of exposure that could result from legal proceedings is complex because these proceedings often involve inherently unpredictable factors, including, but not limited to, the following: whether the proceeding is in early stages; whether damages or the amount of potential fines, penalties, and restitution are unspecified, unsupported, or uncertain; whether there is a potential for punitive or other pecuniary damages; whether the matter involves legal uncertainties, including novel issues of law; whether the matter involves multiple parties and/or jurisdictions; whether discovery or other investigation has begun or is not complete; whether material facts may be disputed or unsubstantiated; whether meaningful settlement discussions have commenced; and whether the matter involves class allegations. As a result of these complexities, Regions may be unable to develop an estimate or range of loss.

Regions evaluates legal proceedings based on information currently available, including advice of counsel. Regions establishes accruals for those matters when a loss is considered probable and the related amount is reasonably estimable. Additionally, when it is practicable and reasonably possible that it may experience losses in excess of established accruals, Regions estimates possible loss contingencies. Regions currently estimates that the aggregate amount of reasonably possible losses that it may experience, in excess of what has been accrued, is immaterial. While the final outcomes of legal proceedings are inherently unpredictable, management is currently of the opinion that the outcomes of pending and threatened matters will not have a material effect on Regions’ business, consolidated financial position, results of operations or cash flows as a whole.

As available information changes, the matters for which Regions is able to estimate, as well as the estimates themselves, will be adjusted accordingly. Regions’ estimates are subject to significant judgment and uncertainties, and the matters underlying the estimates will change from time to time. In the event of unexpected future developments, it is possible that an adverse outcome in any such matter could be material to Regions’ business, consolidated financial position, results of operations, or cash flows as a whole for any particular reporting period of occurrence.

Some of Regions’ exposure with respect to loss contingencies may be offset by applicable insurance coverage. However, in determining the amounts of any accruals or estimates of possible loss contingencies, Regions does not take into account the availability of insurance coverage. To the extent that Regions has an insurance recovery, the proceeds are recorded in the period the recovery is received.

GUARANTEES

FANNIE MAE LOSS SHARE GUARANTEE

Regions sells commercial loans to Fannie Mae through the DUS lending program and through other platforms. The DUS program provides liquidity to the multi-family housing market. Regions services loans sold to Fannie Mae and is required to provide a loss share guarantee equal to one-third of the principal balance for the majority of the commercial servicing portfolio. At June 30, 2025 and December 31, 2024, the Company's DUS servicing portfolio totaled approximately $7.4 billion and $7.0 billion, respectively. Regions has additional loans sold to Fannie Mae outside of the DUS program that are also subject to a loss share guarantee and at June 30, 2025 and December 31, 2024, these serviced loans totaled approximately $721 million and $665 million, respectively. Regions' maximum quantifiable contingent liability related to all loans subject to a loss share guarantee was approximately $2.6 billion and $2.4 billion at June 30, 2025 and December 31, 2024, respectively. The Company would be liable for this amount only if all of the loans it services for Fannie Mae, for which the Company retains some risk of loss, were to default and all of the collateral underlying these loans was determined to be without value at the time of settlement. Therefore, the maximum quantifiable contingent liability is not representative of the actual loss the Company would be expected to incur. The estimated fair value of the associated loss share guarantee recorded as a liability on the Company's consolidated balance sheets was immaterial at both June 30, 2025 and December 31, 2024. Refer to Note 1 "Summary of Significant Accounting Policies" in the Annual Report on Form 10-K for the year ended December 31, 2024 for additional information.

NOTE 13. RECENT ACCOUNTING PRONOUNCEMENTS

The following table provides a brief description of accounting standards adopted in 2025 and those that could have a material impact to Regions’ consolidated financial statements upon adoption in the future.


Standard	Description	Required Date of Adoption	Effect on Regions' financial statements or other significant matters
Standards Adopted (or partially adopted) in 2025


ASU 2023-05, Business Combinations— Joint Venture Formations (Subtopic 805-60)	This Update requires certain joint ventures, upon formation, to use a new basis of accounting by applying most aspects of the acquisition method for business combinations. New joint ventures generally will recognize and initially measure assets and liabilities at fair value. The Update is effective for all joint ventures with a formation date on or after January 1, 2025. Early adoption is permitted.	January 1, 2025	Regions adopted this guidance as of January 1, 2025 with no material impact.

ASU 2023-09, Income Taxes (Topic 740) Improvements to Income Tax Disclosures	The ASU improves the transparency of income tax disclosures by requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) income taxes paid disaggregated by jurisdiction. It also includes certain other amendments to improve the effectiveness of income tax disclosures.	January 1, 2025	Regions adopted this guidance as of January 1, 2025 for disclosure to appear in the Annual Report on Form 10-K for the year ended December 31, 2025 with no material impact.


Standards Not Yet Adopted
ASU 2023-06, Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative	This Update incorporates into the Codification 14 of the 27 disclosures referred by the SEC in Release No. 33‐10532, Disclosure Update and Simplification. This Update clarifies and improves the disclosure and presentation requirements of a variety of Topics in the Codification to align with the SEC's regulations.	The effective date for each amendment will be the date on which the SEC removes the related disclosure requirements from its regulations, with early adoption prohibited.	The adoption of this guidance is not likely to have a material impact. Regions will continue to evaluate through date of adoption.
ASU 2024-03, Income Statement Expense Disaggregation Disclosures (Subtopic 220-40) Disaggregation of Income Statement Expenses	This ASU will change the disclosures about a public business entity’s expenses and address requests from investors for more detailed information about the types of expenses (for example, employee compensation, depreciation, and amortization) in expense captions.	January 1, 2027	Regions will continue to evaluate through date of adoption.
ASU 2024-04 Debt with Conversion and Other Options (Subtopic 470-20) Induced Conversions of Convertible Debt Instruments	This ASU will standardize the application of induced conversion guidance in 470-20. This update focuses on how to determine whether a settlement of convertible debt at terms that differ from the original conversion terms should be accounted for under the induced conversion or extinguishment guidance.	January 1, 2026	The adoption of this guidance is not likely to have a material impact. Regions will continue to evaluate through date of adoption.
ASU 2025-03 Business Combinations (Topic 805) and Consolidation (Topic 810): Determining the Accounting Acquirer in the Acquisition of a Variable Interest Entity	This ASU will require entities to consider the factors in Business Combinations (ASC 805) to identify the accounting acquirer when a VIE that is a business is legally acquired primarily through the exchange of equity interests.	January 1, 2027	Regions will continue to evaluate through date of adoption.

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