Item 1. Financial Statements

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Item 1. Financial Statements

REGIONS FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS (Unaudited)



	March 31, 2026		December 31, 2025
	(In millions, except per share data)
Assets
Cash and due from banks	$	3,445	$	3,112
Interest-bearing deposits in other banks	7,698		7,795

Debt securities held to maturity (estimated fair value of $5,374 and $5,584, respectively)	5,434		5,606
Debt securities available for sale (amortized cost of $28,145 and $28,134, respectively)	27,419		27,560
Loans held for sale (includes $336 and $290 measured at fair value, respectively)	464		511
Loans, net of unearned income	97,926		95,637
Allowance for loan losses	(1,527)		(1,556)
Net loans	96,399		94,081
Other earning assets	1,635		1,703
Premises, equipment and software, net	1,666		1,659
Interest receivable	569		571
Goodwill	5,733		5,733
Residential mortgage servicing rights at fair value	954		970
Other identifiable intangible assets, net	133		140
Other assets	9,192		9,373
Total assets	$	160,741	$	158,814
Liabilities and Equity
Deposits:
Non-interest-bearing	$	40,062	$	39,530
Interest-bearing	91,818		91,598
Total deposits	131,880		131,128
Borrowed funds:
Short-term borrowings:
Federal funds purchased and securities sold under agreements to repurchase	1,200		—
Other short-term borrowings	2,000		750
Short-term borrowings	3,200		750
Long-term borrowings	3,137		4,134
Total borrowed funds	6,337		4,884
Other liabilities	3,680		3,699
Total liabilities	141,897		139,711
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	1,369		1,369
Common stock, authorized 3 billion shares, par value $0.01 per share:
Issued including treasury stock—893,875,283 and 908,045,826 shares, respectively	9		9
Additional paid-in capital	9,973		10,366
Retained earnings	10,517		10,205
Treasury stock, at cost— 41,032,676 shares	(1,371)		(1,371)
Accumulated other comprehensive income (loss), net	(1,718)		(1,535)
Total shareholders’ equity	18,779		19,043
Noncontrolling interest	65		60
Total equity	18,844		19,103
Total liabilities and equity	$	160,741	$	158,814

See notes to consolidated financial statements.

REGIONS FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME (Unaudited)


	Three Months Ended March 31
	2026		2025
	(In millions, except per share data)
Interest income on:
Loans, including fees	$	1,313	$	1,342
Debt securities	298		266
Loans held for sale	8		8
Other earning assets	83		109
Total interest income	1,702		1,725
Interest expense on:
Deposits	385		442
Short-term borrowings	17		4
Long-term borrowings	52		85
Total interest expense	454		531


Net interest income	1,248		1,194
Provision for credit losses	91		124
Net interest income after provision for credit losses	1,157		1,070
Non-interest income:
Service charges on deposit accounts	163		161
Card and ATM fees	117		117
Investment management and trust fee income	92		86
Capital markets income	84		80
Mortgage income	32		40
Securities gains (losses), net	(3)		(25)
Other	140		131
Total non-interest income	625		590
Non-interest expense:
Salaries and employee benefits	659		625
Equipment and software expense	108		99
Net occupancy expense	72		70
Other	229		245
Total non-interest expense	1,068		1,039
Income before income taxes	714		621
Income tax expense	155		131





Net income	$	559	$	490

Net income available to common shareholders	$	539	$	465
Weighted-average number of shares outstanding:
Basic	863		906
Diluted	868		910



Earnings per common share:
Basic	$	0.63	$	0.51
Diluted	0.62		0.51

See notes to consolidated financial statements.

REGIONS FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)


	Three Months Ended March 31
	2026		2025
	(In millions)
Net income	$	559	$	490
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 zero and ($38) tax effect, respectively)	—		(115)
Less: reclassification adjustments for amortization of unrealized losses on securities transferred to held to maturity (net of ($6) and ($7) tax effect, respectively)	(18)		(15)
Net change in unrealized losses on securities transferred to held to maturity, net of tax	18		(100)
Unrealized gains (losses) on securities available for sale:
Unrealized losses on securities transferred to held to maturity during the period (net of zero and $38 tax effect, respectively	—		115
Unrealized holding gains (losses) arising during the period (net of ($39) and $113 tax effect, respectively)	(116)		345
Less: reclassification adjustments for securities gains (losses) realized in net income (net of ($1) and ($6) tax effect, respectively)	(2)		(19)
Net change in unrealized gains (losses) on securities available for sale, net of tax	(114)		479
Unrealized gains (losses) on derivative instruments designated as cash flow hedges:
Unrealized holding gains (losses) on derivative instruments arising during the period (net of ($40) and $69 tax effect, respectively)	(118)		203
Less: reclassification adjustments for gains (losses) on derivative instruments realized in net income (net of ($9) and ($17) tax effect, respectively)	(27)		(50)
Net change in unrealized gains (losses) on derivative instruments, net of tax	(91)		253
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)	(4)		(4)
Net change from defined benefit pension plans and other post employment benefits, net of tax	4		4
Other comprehensive income (loss), net of tax	(183)		636
Comprehensive income	$	376	$	1,126

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, 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 JANUARY 1, 2026	1	$	1,369	868	$	9	$	10,366	$	10,205	$	(1,371)	$	(1,535)	$	19,043	$	60

Net income	—	—		—	—		—		559		—		—		559		—
Other comprehensive income, net of tax	—	—		—	—		—		—		—		(183)		(183)		—
Cash dividends declared	—	—		—	—		—		(227)		—		—		(227)		—
Preferred stock dividends	—	—		—	—		—		(20)		—		—		(20)		—
Impact of common stock share repurchases	—	—		(14)	—		(401)		—		—		—		(401)		—
Impact of common stock transactions under compensation plans, net	—	—		—	—		8		—		—		—		8		—
Other	—	—		—	—		—		—		—		—		—		5
BALANCE AT MARCH 31, 2026	1	$	1,369	854	$	9	$	9,973	$	10,517	$	(1,371)	$	(1,718)	$	18,779	$	65

See notes to consolidated financial statements.

REGIONS FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)


	Three Months Ended March 31
	2026		2025
	(In millions)
Operating activities:
Net income	$	559	$	490
Adjustments to reconcile net income to net cash from operating activities:
Provision for credit losses	91		124
Depreciation, amortization and accretion, net	23		22

Securities (gains) losses, net	3		25

Deferred income tax expense (benefit)	(15)		(3)
Originations and purchases of loans held for sale	(1,967)		(1,189)
Proceeds from sales of loans held for sale	2,052		1,470

(Gain) loss on sale of loans, net	(12)		(9)


Net change in operating assets and liabilities:
Other earning assets	68		204
Interest receivable and other assets	172		300
Other liabilities	(135)		(356)
Other	28		(12)
Net cash from operating activities	867		1,066
Investing activities:
Proceeds from maturities of debt securities held to maturity	193		98
Proceeds from sales of debt securities available for sale	341		599
Proceeds from maturities of debt securities available for sale	827		774
Purchases of debt securities available for sale	(1,079)		(2,075)
Net (payments for) proceeds from bank-owned life insurance	6		—

Proceeds from sales of loans	38		20
Purchases of loans	(76)		(61)
Net change in loans	(2,364)		913
Purchases of mortgage servicing rights	(4)		(5)
Net purchases of other assets	(62)		(97)


Net cash from investing activities	(2,180)		166
Financing activities:
Net change in deposits	752		3,368
Net change in short-term borrowings	2,450		(500)

Payments on long-term borrowings	(1,000)		—

Cash dividends on common stock	(230)		(227)
Cash dividends on preferred stock	(20)		(25)


Repurchases of common stock	(401)		(242)
Taxes paid related to net share settlement of equity awards	(2)		(2)

Net cash from financing activities	1,549		2,372
Net change in cash and cash equivalents	236		3,604
Cash and cash equivalents at beginning of year	10,907		10,712
Cash and cash equivalents at end of period	$	11,143	$	14,316

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 and cash flows in conformity with GAAP. 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, 2025. Regions has evaluated all subsequent events for potential recognition and disclosure through the filing date of this Form 10-Q.

During 2026, 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, 2025 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:


	March 31, 2026		December 31, 2025
	(In millions)
Tax credit investments included in other assets	$	1,677	$	1,608
Unfunded tax credit commitments included in other liabilities	635		567
Loans and letters of credit commitments	756		643
Funded portion of loans and letters of credit commitments	427		328


	Three Months Ended March 31
	2026		2025
	(In millions)
Tax credits and other tax benefits recognized (1)	$	62	$	54
Tax credit amortization expense included in income tax expense (1)	51		47

(1) Included within income tax expense on the consolidated statements of income and within operating activities on the consolidated statements of cash flows.

NOTE 3. DEBT SECURITIES

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


	March 31, 2026
			Recognized in OCI (1)						Not recognized in OCI
	Amortized Cost Basis		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	$	5,972	$	—	$	(843)	$	5,129	$	13	$	(68)	$	5,074
Commercial agency	305		—		—		305		—		(5)		300
	$	6,277	$	—	$	(843)	$	5,434	$	13	$	(73)	$	5,374

Debt securities available for sale:
U.S. Treasury securities	$	2,386	$	8	$	(49)	$	2,345					$	2,345
Federal agency securities	541		4		(8)		537						537
Obligations of states and political subdivisions	1		—		—		1						1
Mortgage-backed securities:
Residential agency	18,172		164		(702)		17,634						17,634

Commercial agency	6,474		17		(151)		6,340						6,340
Commercial non-agency	90		—		(8)		82						82
Corporate and other debt securities	481		3		(4)		480						480


	$	28,145	$	196	$	(922)	$	27,419					$	27,419


	December 31, 2025
			Recognized in OCI (1)						Not recognized in OCI
	Amortized Cost Basis		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	$	6,103	$	—	$	(866)	$	5,237	$	37	$	(53)	$	5,221
Commercial agency	370		—		(1)		369		—		(6)		363
	$	6,473	$	—	$	(867)	$	5,606	$	37	$	(59)	$	5,584

Debt securities available for sale:
U.S. Treasury securities	$	2,313	$	10	$	(47)	$	2,276					$	2,276
Federal agency securities	544		6		(7)		543						543
Obligations of states and political subdivisions	2		—		—		2						2
Mortgage-backed securities:
Residential agency	18,820		244		(677)		18,387						18,387

Commercial agency	5,925		34		(130)		5,829						5,829
Commercial non-agency	91		—		(9)		82						82
Corporate and other debt securities	439		5		(3)		441						441
	$	28,134	$	299	$	(873)	$	27,560					$	27,560

(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.

Debt securities with carrying values of $21.6 billion at March 31, 2026 and $20.9 billion at December 31, 2025, respectively, were pledged to secure public funds, trust deposits and other borrowing arrangements.

The amortized cost basis and estimated fair value of debt securities held to maturity and debt securities available for sale at March 31, 2026, 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 Basis		Estimated Fair Value
	(In millions)
Debt securities held to maturity:
Mortgage-backed securities:
Residential agency	$	5,972	$	5,074
Commercial agency	305		300
	$	6,277	$	5,374
Debt securities available for sale:
Due in one year or less	$	324	$	321
Due after one year through five years	1,844		1,817
Due after five years through ten years	1,171		1,157
Due after ten years	70		68
Mortgage-backed securities:
Residential agency	18,172		17,634

Commercial agency	6,474		6,340
Commercial non-agency	90		82
	$	28,145	$	27,419

The following tables present gross unrealized losses and the related estimated fair value of debt securities available for sale at March 31, 2026 and December 31, 2025. 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.


	March 31, 2026
	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 available for sale:
U.S Treasury securities	$	701	$	(5)	$	1,064	$	(44)	$	1,765	$	(49)
Federal agency securities	251		(1)		54		(7)		305		(8)
Mortgage-backed securities:
Residential agency	1,773		(18)		7,335		(684)		9,108		(702)

Commercial agency	2,626		(19)		2,267		(132)		4,893		(151)
Commercial non-agency	—		—		82		(8)		82		(8)
Corporate and other debt securities	139		(2)		117		(2)		256		(4)
	$	5,490	$	(45)	$	10,919	$	(877)	$	16,409	$	(922)


	December 31, 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 available for sale:
U.S. Treasury securities	$	203	$	(1)	$	1,197	$	(46)	$	1,400	$	(47)
Federal agency securities	—		—		57		(7)		57		(7)
Mortgage-backed securities:
Residential agency	—		—		8,498		(677)		8,498		(677)

Commercial agency	754		(3)		2,430		(127)		3,184		(130)

Commercial non-agency	—		—		82		(9)		82		(9)
Corporate and other debt securities	—		—		169		(3)		169		(3)
	$	957	$	(4)	$	12,433	$	(869)	$	13,390	$	(873)

The number of individual debt security positions in an unrealized loss position in the tables above increased to 1,132 at March 31, 2026 from 1,058 at December 31, 2025. The increase 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 March 31, 2026, 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.

The following table presents gross realized gains and gross realized losses on sales of debt securities available for sale:


	Three Months Ended March 31
	2026		2025
	(In millions)
Gross realized gains	$	2	$	1
Gross realized losses	(5)		(26)
Securities gains (losses), net	$	(3)	$	(25)

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 three months ended March 31, 2026 and 2025.

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:


	March 31, 2026		December 31, 2025
	(In millions)
Commercial and industrial	$	50,824	$	48,790
Commercial real estate mortgage—owner-occupied	5,004		4,845
Commercial real estate construction—owner-occupied	261		263
Total commercial	56,089		53,898
Commercial investor real estate mortgage	7,706		7,172
Commercial investor real estate construction	1,938		1,934
Total investor real estate	9,644		9,106
Residential first mortgage	19,621		19,765
Home equity lines	3,210		3,232
Home equity loans	2,287		2,324
Consumer credit card	1,472		1,519

Other consumer	5,603		5,793
Total consumer	32,193		32,633
Total loans, net of unearned income	$	97,926	$	95,637

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, 2025 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 the three months ended March 31, 2026 and 2025.



	Three Months Ended March 31, 2026
	Commercial		Investor Real Estate		Consumer		Total
	(In millions)
Allowance for loan losses, January 1, 2026	$	755	$	120	$	681	$	1,556
Provision for (benefit from) loan losses	105		(12)		8		101
Loan losses:
Charge-offs	(88)		—		(63)		(151)
Recoveries	9		—		12		21
Net loan losses	(79)		—		(51)		(130)
Allowance for loan losses, March 31, 2026	781		108		638		1,527
Reserve for unfunded credit commitments, January 1, 2026	95		15		20		130
Provision for (benefit from) unfunded credit commitments	(8)		(1)		(1)		(10)
Reserve for unfunded credit commitments, March 31, 2026	87		14		19		120
Allowance for credit losses, March 31, 2026	$	868	$	122	$	657	$	1,647



	Three Months Ended March 31, 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	49		18		56		123
Loan losses:
Charge-offs	(59)		(22)		(64)		(145)
Recoveries	12		—		10		22
Net loan losses	(47)		(22)		(54)		(123)
Allowance for loan losses, March 31, 2025	745		236		632		1,613

Reserve for unfunded credit commitments January 1, 2025	91		7		18		116
Provision for unfunded credit commitments	—		1		—		1
Reserve for unfunded credit commitments, March 31, 2025	91		8		18		117
Allowance for credit losses, March 31, 2025	$	836	$	244	$	650	$	1,730

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, 2025 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, 2025 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 March 31, 2026 and December 31, 2025. 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, 2025 for more information regarding Regions' credit quality indicators.


	March 31, 2026
Term Loans													Revolving Loans			Revolving Loans Converted to Amortizing			Other (1)			Total

2026	2025		2024		2023		2022		Prior
(In millions)
Commercial and industrial:
Risk rating:
Pass	$	2,994	$	9,471	$	5,245	$	2,337	$	3,011	$	5,017		$	20,536		$	—		$	349		$	48,960
Special Mention	6		31		39		85		130		35			239			—			—			565
Substandard Accrual	7		176		22		179		96		27			321			—			—			828
Non-accrual	34		95		49		74		31		41			147			—			—			471
Total commercial and industrial	$	3,041	$	9,773	$	5,355	$	2,675	$	3,268	$	5,120		$	21,243		$	—		$	349		$	50,824

Commercial real estate mortgage—owner-occupied:
Risk rating:
Pass	$	224	$	746	$	736	$	547	$	705	$	1,534		$	163		$	—		$	(5)		$	4,650
Special Mention	5		26		5		6		31		84			1			—			—			158
Substandard Accrual	11		52		13		7		18		39			3			—			—			143
Non-accrual	7		1		6		6		8		25			—			—			—			53
Total commercial real estate mortgage—owner-occupied:	$	247	$	825	$	760	$	566	$	762	$	1,682		$	167		$	—		$	(5)		$	5,004

Commercial real estate construction—owner-occupied:
Risk rating:
Pass	$	11	$	79	$	25	$	15	$	29	$	58		$	13		$	—		$	—		$	230
Special Mention	—		1		7		3		4		7			—			—			—			22
Substandard Accrual	—		5		—		2		—		—			—			—			—			7
Non-accrual	—		—		1		—		—		1			—			—			—			2
Total commercial real estate construction—owner-occupied:	$	11	$	85	$	33	$	20	$	33	$	66		$	13		$	—		$	—		$	261

Total commercial	$	3,299	$	10,683	$	6,148	$	3,261	$	4,063	$	6,868		$	21,423		$	—		$	344		$	56,089

Commercial investor real estate mortgage:
Risk rating:
Pass	$	1,072	$	2,453	$	949	$	699	$	752	$	340		$	553		$	—		$	(7)		$	6,811
Special Mention	36		112		32		39		98		1			3			—			—			321
Substandard Accrual	29		153		1		42		116		60			70			—			—			471
Non-accrual	—		8		26		—		24		—			45			—			—			103
Total commercial investor real estate mortgage	$	1,137	$	2,726	$	1,008	$	780	$	990	$	401		$	671		$	—		$	(7)		$	7,706

Commercial investor real estate construction:
Risk rating:
Pass	$	105	$	336	$	335	$	187	$	54	$	1		$	693		$	—		$	(13)		$	1,698
Special Mention	2		43		—		29		71		—			38			—			—			183
Substandard Accrual	—		—		—		—		45		—			12			—			—			57
Non-accrual	—		—		—		—		—		—			—			—			—			—
Total commercial investor real estate construction	$	107	$	379	$	335	$	216	$	170	$	1		$	743		$	—		$	(13)		$	1,938

Total investor real estate	$	1,244	$	3,105	$	1,343	$	996	$	1,160	$	402		$	1,414		$	—		$	(20)		$	9,644


	March 31, 2026
Term Loans													Revolving Loans			Revolving Loans Converted to Amortizing			Other (1)			Total

2026	2025		2024		2023		2022		Prior
(In millions)
Residential first mortgage:
FICO scores:
Above 720	$	313	$	1,294	$	1,072	$	1,639	$	2,438	$	9,379		$	—		$	—		$	—		$	16,135
681-720	25		103		82		135		195		690			—			—			—			1,230
620-680	7		48		46		79		122		493			—			—			—			795
Below 620	—		24		54		103		166		711			—			—			—			1,058
Data not available	18		47		26		14		12		118			3			—			165			403
Total residential first mortgage	$	363	$	1,516	$	1,280	$	1,970	$	2,933	$	11,391		$	3		$	—		$	165		$	19,621


Home equity lines:
FICO scores:
Above 720	$	—	$	—	$	—	$	—	$	—	$	—		$	2,418		$	57		—			$	2,475
681-720	—		—		—		—		—		—			341			14			—			355
620-680	—		—		—		—		—		—			202			13			—			215
Below 620	—		—		—		—		—		—			120			10			—			130
Data not available	—		—		—		—		—		—			—			—			35			35
Total home equity lines	$	—	$	—	$	—	$	—	$	—	$	—		$	3,081		$	94		$	35		$	3,210

Home equity loans:
FICO scores:
Above 720	$	63	$	313	$	236	$	191	$	244	$	711		$	—		$	—		$	—		$	1,758
681-720	14		49		43		29		34		84			—			—			—			253
620-680	5		21		21		19		21		67			—			—			—			154
Below 620	—		5		13		14		17		57			—			—			—			106
Data not available	—		—		—		—		—		—			—			—			16			16
Total home equity loans	$	82	$	388	$	313	$	253	$	316	$	919		$	—		$	—		$	16		$	2,287

Consumer credit card:
FICO scores:
Above 720	$	—	$	—	$	—	$	—	$	—	$	—		$	822		$	—		$	—		$	822
681-720	—		—		—		—		—		—			283			—			—			283
620-680	—		—		—		—		—		—			247			—			—			247
Below 620	—		—		—		—		—		—			137			—			—			137
Data not available	—		—		—		—		—		—			5			—			(22)			(17)
Total consumer credit card	$	—	$	—	$	—	$	—	$	—	$	—		$	1,494		$	—		$	(22)		$	1,472










Other consumer(2):
FICO scores:
Above 720	$	143	$	659	$	557	$	756	$	1,096	$	648		$	107		$	—		$	—		$	3,966
681-720	20		119		93		122		195		114			60			—			—			723
620-680	10		66		56		74		144		84			48			—			—			482
Below 620	1		23		29		44		100		57			32			—			—			286
Data not available	56		3		2		4		9		138			—			—			(66)			146
Total other consumer	$	230	$	870	$	737	$	1,000	$	1,544	$	1,041		$	247		$	—		$	(66)		$	5,603

Total consumer loans	$	675	$	2,774	$	2,330	$	3,223	$	4,793	$	13,351		$	4,825		$	94		$	128		$	32,193

Total Loans	$	5,218	$	16,562	$	9,821	$	7,480	$	10,016	$	20,621		$	27,662		$	94		$	452		$	97,926



	December 31, 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	$	9,993	$	5,700	$	2,683	$	3,593	$	1,866	$	3,540		$	19,167		$	—		$	254		$	46,796
Special Mention	70		29		107		133		40		9			190			—			—			578
Substandard Accrual	159		30		184		137		5		13			414			—			—			942
Non-accrual	49		88		118		36		17		27			139			—			—			474
Total commercial and industrial	$	10,271	$	5,847	$	3,092	$	3,899	$	1,928	$	3,589		$	19,910		$	—		$	254		$	48,790

Commercial real estate mortgage—owner-occupied:
Risk rating:
Pass	$	756	$	706	$	589	$	735	$	662	$	1,000		$	112		$	—		$	(5)		$	4,555
Special Mention	4		18		7		28		29		18			1			—			—			105
Substandard Accrual	39		13		14		15		30		27			2			—			—			140
Non-accrual	1		4		2		10		12		16			—			—			—			45
Total commercial real estate mortgage—owner-occupied:	$	800	$	741	$	612	$	788	$	733	$	1,061		$	115		$	—		$	(5)		$	4,845

Commercial real estate construction—owner-occupied:
Risk rating:
Pass	$	75	$	24	$	29	$	29	$	23	$	45		$	14		$	—		$	—		$	239
Special Mention	—		7		—		7		—		2			—			—			—			16
Substandard Accrual	6		—		—		—		—		—			—			—			—			6
Non-accrual	—		1		—		—		—		1			—			—			—			2
Total commercial real estate construction—owner-occupied:	$	81	$	32	$	29	$	36	$	23	$	48		$	14		$	—		$	—		$	263

Total commercial	$	11,152	$	6,620	$	3,733	$	4,723	$	2,684	$	4,698		$	20,039		$	—		$	249		$	53,898

Commercial investor real estate mortgage:
Risk rating:
Pass	$	2,802	$	806	$	637	$	960	$	309	$	180		$	531		$	—		$	(6)		$	6,219
Special Mention	144		—		59		135		1		1			—			—			—			340
Substandard Accrual	251		—		22		109		93		—			17			—			—			492
Non-accrual	—		49		—		27		—		4			41			—			—			121
Total commercial investor real estate mortgage	$	3,197	$	855	$	718	$	1,231	$	403	$	185		$	589		$	—		$	(6)		$	7,172

Commercial investor real estate construction:
Risk rating:
Pass	$	321	$	446	$	276	$	162	$	—	$	1		$	660		$	—		$	(13)		$	1,853
Special Mention	2		4		—		—		—		—			18			—			—			24
Substandard Accrual	—		—		—		42		—		—			15			—			—			57
Non-accrual	—		—		—		—		—		—			—			—			—			—
Total commercial investor real estate construction	$	323	$	450	$	276	$	204	$	—	$	1		$	693		$	—		$	(13)		$	1,934

Total investor real estate	$	3,520	$	1,305	$	994	$	1,435	$	403	$	186		$	1,282		$	—		$	(19)		$	9,106

Residential first mortgage:
FICO scores:
Above 720	$	1,270	$	1,161	$	1,734	$	2,507	$	3,690	$	5,934		$	—		$	—		$	—		$	16,296
681-720	94		85		147		203		243		469			—			—			—			1,241
620-680	44		47		74		122		149		359			—			—			—			795
Below 620	13		46		104		164		163		545			—			—			—			1,035
Data not available	49		26		15		13		33		92			2			—			168			398
Total residential first mortgage	$	1,470	$	1,365	$	2,074	$	3,009	$	4,278	$	7,399		$	2		$	—		$	168		$	19,765



	December 31, 2025
Term Loans													Revolving Loans			Revolving Loans Converted to Amortizing			Other (1)			Total

2025	2024		2023		2022		2021		Prior
Home equity lines:
FICO scores:
Above 720	$	—	$	—	$	—	$	—	$	—	$	—		$	2,443		$	61		—			$	2,504
681-720	—		—		—		—		—		—			346			14			—			360
620-680	—		—		—		—		—		—			198			12			—			210
Below 620	—		—		—		—		—		—			117			9			—			126
Data not available	—		—		—		—		—		—			—			—			32			32
Total home equity lines	$	—	$	—	$	—	$	—	$	—	$	—		$	3,104		$	96		$	32		$	3,232

Home equity loans:
FICO scores:
Above 720	$	326	$	254	$	204	$	255	$	272	$	488		$	—		$	—		$	—		$	1,799
681-720	53		46		32		39		31		57			—			—			—			258
620-680	19		22		18		21		21		50			—			—			—			151
Below 620	3		9		14		16		16		43			—			—			—			101
Data not available	—		—		—		—		—		—			—			—			15			15
Total home equity loans	$	401	$	331	$	268	$	331	$	340	$	638		$	—		$	—		$	15		$	2,324

Consumer credit card:
FICO scores:
Above 720	$	—	$	—	$	—	$	—	$	—	$	—		$	874		$	—		$	—		$	874
681-720	—		—		—		—		—		—			286			—			—			286
620-680	—		—		—		—		—		—			246			—			—			246
Below 620	—		—		—		—		—		—			125			—			—			125
Data not available	—		—		—		—		—		—			6			—			(18)			(12)
Total consumer credit card	$	—	$	—	$	—	$	—	$	—	$	—		$	1,537		$	—		$	(18)		$	1,519












Other consumer(2):
FICO scores:
Above 720	$	717	$	611	$	802	$	1,133	$	340	$	346		$	113		$	—		$	—		$	4,062
681-720	123		103		133		210		66		57			62			—			—			754
620-680	65		61		79		152		50		40			49			—			—			496
Below 620	16		27		46		104		33		26			31			—			—			283
Data not available	112		2		4		11		6		138			—			—			(75)			198
Total other consumer	$	1,033	$	804	$	1,064	$	1,610	$	495	$	607		$	255		$	—		$	(75)		$	5,793

Total consumer loans	$	2,904	$	2,500	$	3,406	$	4,950	$	5,113	$	8,644		$	4,898		$	96		$	122		$	32,633

Total Loans	$	17,576	$	10,425	$	8,133	$	11,108	$	8,200	$	13,528		$	26,219		$	96		$	352		$	95,637

(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.

The following tables present gross charge-offs by vintage year for the three months ended March 31, 2026 and 2025.


	March 31, 2026
Term Loans													Revolving Loans			Total
2026	2025		2024		2023		2022		Prior
(In millions)
Commercial and industrial	$	5	$	10	$	15	$	35	$	5	$	1		$	17		$	88


Total commercial	5		10		15		35		5		1			17			88




Home equity lines	—		—		—		—		—		—			1			1

Consumer credit card	—		—		—		—		—		—			18			18

Other consumer(1)	4		10		4		5		11		7			3			44
Total consumer	4		10		4		5		11		7			22			63
Total gross charge-offs	$	9	$	20	$	19	$	40	$	16	$	8		$	39		$	151


	March 31, 2025
Term Loans													Revolving Loans			Total
2025	2024		2023		2022		2021		Prior
(In millions)
Commercial and industrial	$	—	$	3	$	7	$	13	$	3	$	1		$	30		$	57
Commercial real estate mortgage—owner-occupied	—		—		—		—		1		1			—			2

Total commercial	—		3		7		13		4		2			30			59
Commercial investor real estate mortgage	—		8		12		—		—		2			—			22

Total investor real estate	—		8		12		—		—		2			—			22



Consumer credit card	—		—		—		—		—		—			17			17

Other consumer(1)	3		11		7		13		5		5			3			47
Total consumer	3		11		7		13		5		5			20			64
Total gross charge-offs	$	3	$	22	$	26	$	26	$	9	$	9		$	50		$	145

(1)Other consumer class includes overdraft gross charge-offs. The majority of overdraft gross charge-offs for the three months ended March 31, 2026 and 2025 are included in the current vintage year.

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 March 31, 2026 and December 31, 2025. Loans on non-accrual status with no related allowance totaled $100 million at March 31, 2026 and were comprised of commercial and investor real estate loans, and totaled $109 million at December 31, 2025 and were comprised of commercial loans. 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.


	March 31, 2026
	Accrual Loans
	30-59 DPD		60-89 DPD		90+ DPD		Total 30+ DPD		Total Accrual		Non-accrual		Total
	(In millions)
Commercial and industrial	$	32	$	18	$	5	$	55	$	50,353	$	471	$	50,824
Commercial real estate mortgage—owner-occupied	4		—		1		5		4,951		53		5,004
Commercial real estate construction—owner-occupied	—		—		—		—		259		2		261
Total commercial	36		18		6		60		55,563		526		56,089
Commercial investor real estate mortgage	—		1		—		1		7,603		103		7,706
Commercial investor real estate construction	—		—		—		—		1,938		—		1,938
Total investor real estate	—		1		—		1		9,541		103		9,644
Residential first mortgage	121		68		194		383		19,591		30		19,621
Home equity lines	14		8		14		36		3,185		25		3,210
Home equity loans	9		4		8		21		2,279		8		2,287
Consumer credit card	12		9		22		43		1,472		—		1,472

Other consumer	47		19		20		86		5,603		—		5,603
Total consumer	203		108		258		569		32,130		63		32,193
	$	239	$	127	$	264	$	630	$	97,234	$	692	$	97,926


	December 31, 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	$	16	$	6	$	61	$	48,316	$	474	$	48,790
Commercial real estate mortgage—owner-occupied	4		2		—		6		4,800		45		4,845
Commercial real estate construction—owner-occupied	—		—		—		—		261		2		263
Total commercial	43		18		6		67		53,377		521		53,898
Commercial investor real estate mortgage	—		—		—		—		7,051		121		7,172
Commercial investor real estate construction	—		—		—		—		1,934		—		1,934
Total investor real estate	—		—		—		—		8,985		121		9,106
Residential first mortgage	128		82		184		394		19,740		25		19,765
Home equity lines	19		6		15		40		3,208		24		3,232
Home equity loans	11		4		8		23		2,317		7		2,324
Consumer credit card	12		10		22		44		1,519		—		1,519

Other consumer	51		24		24		99		5,793		—		5,793
Total consumer	221		126		253		600		32,577		56		32,633
	$	264	$	144	$	259	$	667	$	94,939	$	698	$	95,637

At March 31, 2026 and December 31, 2025, the Company had collateral-dependent commercial loans of $313 million and $337 million, respectively. At March 31, 2026 and December 31, 2025, the Company had collateral-dependent investor real estate loans of $98 million and $121 million, respectively. The collateral for commercial and investor real estate loans generally consists of all business assets including real estate, receivables and equipment. At March 31, 2026 and December 31, 2025, the Company had collateral-dependent residential mortgage and home equity loans and lines totaling $143 million and $127 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, 2025 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, 2025 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 months ended March 31, 2026 and 2025.



		Three Months Ended March 31, 2026
	Term Extension					Term Extension and Interest Rate Modification	Term Extension and Payment Deferral					Other									Total
		$		%(1)				$		%(1)			$		%(1)		$		%(1)			$		%(1)
		(Dollars in millions)
Commercial and industrial		$	7	0.01	%			$	—	—	%		$	19	0.04	%	$	—	—	%		$	26	0.05	%
Commercial real estate mortgage—owner-occupied		21		0.42	%			—		—	%		—		—	%	3		0.07	%		24		0.49	%

Total commercial		28		0.05	%			—		—	%		19		0.03	%	3		0.01	%		50		0.09	%



Residential first mortgage		27		0.13	%			6		0.03	%		—		—	%	—		—	%		33		0.17	%
Home equity lines		—		—	%			1		0.04	%		—		—	%	—		—	%		1		0.04	%
Home equity loans		1		0.04	%			2		0.07	%		—		—	%	—		—	%		3		0.11	%



Total consumer		28		0.09	%			9		0.03	%		—		—	%	—		—	%		37		0.12	%
Total		$	56	0.06	%			$	9	0.01	%		$	19	0.02	%	$	3	—	%		$	87	0.09	%



	Three Months Ended March 31, 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	$	57	0.12	%		$	3	0.01	%		$	—	—	%		$	—	—	%	$	60	0.12	%
Commercial real estate mortgage—owner-occupied	2		0.03	%		—		—	%		—		—	%		—		—	%	2		0.03	%

Total commercial	59		0.11	%		3		0.01	%		—		—	%		—		—	%	62		0.12	%
Commercial investor real estate mortgage	24		0.37	%		—		—	%		—		—	%		—		—	%	24		0.37	%

Total investor real estate	24		0.27	%		—		—	%		—		—	%		—		—	%	24		0.27	%
Residential first mortgage	58		0.29	%		—		—	%		1		—	%		6		0.03	%	65		0.32	%
Home equity lines	—		0.02	%		—		—	%		—		—	%		2		0.06	%	2		0.08	%
Home equity loans	1		0.03	%		—		—	%		—		—	%		1		0.07	%	2		0.10	%



Total consumer	59		0.18	%		—		—	%		1		—	%		9		0.03	%	69		0.21	%
Total	$	142	0.15	%		$	3	—	%		$	1	—	%		$	9	0.01	%	$	155	0.16	%

(1) Amounts calculated based upon whole dollar values.

The end of period balance of unfunded commitments related to modifications to troubled borrowers was immaterial at March 31, 2026 and totaled $124 million at December 31, 2025.

The following tables present the financial impact of modifications to troubled borrowers during the three months ended March 31, 2026 and 2025 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 March 31, 2026 (1)
		Term Extension	Term Extension and Interest Rate Modification			Term Extension and Payment Deferral
		Weighted-Average Term Extension	Weighted-Average Term Extension	Weighted-Average Reduction in Interest Rate		Weighted-Average Term Extension	Weighted-Average Payment Deferral
	(In years, except for percentage data)
Commercial and industrial		0.42	—	—		2	4
Commercial real estate mortgage—owner-occupied		0.75	—	—		—	—



Residential first mortgage		7	4	1	%	—	—
Home equity lines		—	23	2	%	—	—
Home equity loans		8	18	3	%	—	—

(1) During the three months ended March 31, 2026, the Company had an other modification in commercial real estate mortgage which had an immaterial financial effect.


	Three Months Ended March 31, 2025
	Interest Rate Reduction	Term Extension	Payment Deferral	Term Extension and Interest Rate Reduction
	Weighted-Average Term Extension	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%	0.42	—	—	—
Commercial real estate mortgage—owner-occupied	—	1.92	—	—	—

Commercial investor real estate mortgage	—	0.67	—	—	—

Residential first mortgage	—	7	0.67	2	less than 1%
Home equity lines	—	30	—	23	2	%
Home equity loans	—	13	—	21	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 March 31, 2026 and 2025.



	March 31, 2026
	Current		30-89 DPD		90+ DPD		Non-Performing Loans		Total
	(In millions)
Commercial and industrial	$	39	$	—	$	—	$	93	$	132
Commercial real estate mortgage—owner-occupied	22		—		—		3		25

Total commercial	61		—		—		96		157
Commercial investor real estate mortgage	28		—		—		26		54

Total investor real estate	28		—		—		26		54
Residential first mortgage	126		30		25		7		188
Home equity lines	4		—		—		1		5
Home equity loans	8		—		—		2		10



Total consumer	138		30		25		10		203
	$	227	$	30	$	25	$	132	$	414



	March 31, 2025
	Current		30-89 DPD		90+ DPD		Non-Performing Loans		Total
	(In millions)
Commercial and industrial	$	72	$	3	$	—	$	18	$	93
Commercial real estate mortgage—owner-occupied	2		—		—		1		3

Total commercial	74		3		—		19		96
Commercial investor real estate mortgage	64		—		—		54		118

Total investor real estate	64		—		—		54		118
Residential first mortgage	138		25		15		7		185
Home equity lines	10		—		—		1		11
Home equity loans	8		1		—		2		11



Total consumer	156		26		15		10		207
	$	294	$	29	$	15	$	83	$	421

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. Subsequent defaults of the loans restructured as a modification to a troubled borrower during the three months ended March 31, 2026 and March 31, 2025 that were restructured as modifications to troubled borrowers during the previous twelve months had period-end balances of $38 million and $24 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 March 31
	2026		2025
	(In millions)
Carrying value, beginning of period	$	970	$	1,007
Additions	9		6
Purchases (1)	4		4
Increase (decrease) in fair value (2):
Due to change in valuation inputs or assumptions	1		(10)
Economic amortization associated with borrower repayments (3)	(30)		(28)
Carrying value, end of period	$	954	$	979

(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:


	March 31
	2026			2025
	(Dollars in millions)
Unpaid principal balance	$	63,746		$	67,771
Weighted-average CPR (%)	7.5		%	7.7		%
Estimated impact on fair value of a 10% increase	$	(37)		$	(36)
Estimated impact on fair value of a 20% increase	$	(70)		$	(70)
Option-adjusted spread (basis points)	496			533
Estimated impact on fair value of a 10% increase	$	(21)		$	(23)
Estimated impact on fair value of a 20% increase	$	(43)		$	(47)
Weighted-average coupon interest rate	3.9		%	3.8		%
Weighted-average remaining maturity (months)	287			294
Weighted-average servicing fee (basis points)	27.7			27.3

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 $46 million and $47 million for the three months ended March 31, 2026 and 2025, 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, 2025 for additional information. Also see Note 12 for additional information related to the guarantee.

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


	Three Months Ended March 31
	2026		2025
	(In millions)
Carrying value, beginning of period	$	93	$	97
Additions	5		2
Increase (decrease) in fair value(1):
Due to change in valuation inputs or assumptions	—		(1)
Economic amortization associated with borrower repayments (2)	(5)		(4)
Carrying value, end of period	$	93	$	94

(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:


	March 31
	2026			2025
	(Dollars in millions)
Unpaid principal balance	$	8,338		$	7,544
Weighted-average CPR (%)	7.6		%	7.1		%
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		%	8.2		%
Estimated impact on fair value of a 10% increase	$	(3)		$	(3)
Estimated impact on fair value of a 20% increase	$	(5)		$	(5)
Weighted-average coupon interest rate	4.9		%	4.7		%
Weighted-average remaining maturity (months)	142			146
Weighted-average servicing fee (basis points)	24.3			25.7

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 non-DUS agency programs totaled $7 million and $6 million for the three months ended March 31, 2026, and 2025, 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, 2025 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 March 31
	2026		2025
	(In millions)
Carrying value, beginning of period	$	89	$	90
Additions	2		5
Economic amortization associated with borrower repayments (1)	(5)		(4)
Carrying value, end of period	$	86	$	91

(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 $111 million at March 31, 2026 and $113 million at December 31, 2025.

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 $7 million for both the three months ended March 31, 2026 and 2025

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:


												2026		2025
	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 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	%	(3)	500		1,000	25	1/40th	500,000	489		489
						$	1,400				1,400,000	$	1,369	$	1,369

(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)Dividends, if declared, will be paid quarterly at an annual rate equal to (i) for each period beginning on 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 $20 million and $25 million in cash dividends on preferred stock in the three months ended March 31, 2026 and 2025, respectively.

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

As a Category IV bank, Regions was not required to participate in the 2025 stress test. Nonetheless, like other Category IV banking organizations, the Company did receive results from the Federal Reserve during the second quarter of 2025. From the fourth quarter of 2025 through the third quarter of 2026, the Company's SCB will remain floored at 2.5 percent In February 2026, the Federal Reserve voted to maintain SCB requirements at current levels through the third quarter of 2027 to allow time for public feedback on proposed changes to supervisory stress testing models. As such, Regions' SCB will remain floored at 2.5 percent through the third quarter of 2027.

On December 10, 2025, the Board authorized the repurchase of up to $3.0 billion of the Company's common stock for the period beginning January 1, 2026 and extending through December 31, 2027. As of March 31, 2026, Regions had repurchased approximately 14 million shares of common stock at a total cost of $401 million under this plan. All of these shares were immediately retired upon repurchase and therefore were not included in treasury stock.

Regions declared $0.265 per common share in cash dividends for the first quarter of 2026 and $0.25 per common share for the first quarter of 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 months ended March 31, 2026 and 2025:



	Three Months Ended March 31, 2026
	Pre-tax AOCI Activity		Tax Effect (1)		Net AOCI Activity
	(In millions)
Total accumulated other comprehensive income (loss), beginning of period	$	(2,057)	$	522	$	(1,535)

Unrealized losses on securities transferred to held to maturity:
Beginning balance	$	(867)	$	219	$	(648)

Reclassification adjustments for amortization on unrealized losses on securities transferred to held for maturity (2)	24		(6)		18

Ending balance	$	(843)	$	213	$	(630)
Unrealized gains (losses) on securities available for sale:
Beginning balance	$	(574)	$	146	$	(428)

Unrealized gains (losses) arising during the period	(155)		39		(116)
Reclassification adjustments for securities (gains) losses realized in net income (3)	3		(1)		2
Change in AOCI from securities available for sale activity in the period	(152)		38		(114)
Ending balance	$	(726)	$	184	$	(542)
Unrealized gains (losses) on derivative instruments designated as cash flow hedges:
Beginning balance	$	(91)	$	23	$	(68)
Unrealized gains (losses) on derivative instruments arising during the period	(158)		40		(118)
Reclassification adjustments for (gains) losses on derivative instruments realized in net income (2)	36		(9)		27
Change in AOCI from derivative activity in the period	(122)		31		(91)
Ending balance	$	(213)	$	54	$	(159)
Defined benefit pension plans and other post employment benefit plans:
Beginning balance	$	(525)	$	134	$	(391)

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

Ending balance	$	(520)	$	133	$	(387)

Total other comprehensive income (loss)	(245)		62		(183)

Total accumulated other comprehensive income (loss), end of period	$	(2,302)	$	584	$	(1,718)



	Three Months Ended March 31, 2025
	Pre-tax AOCI Activity		Tax Effect (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	(153)		38		(115)
Reclassification adjustments for amortization on unrealized losses on securities transferred to held for maturity (2)	22		(7)		15
Change in AOCI from securities held to maturity activity in the period	(131)		31		(100)
Ending balance	$	(875)	$	219	$	(656)
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	153		(38)		115
Unrealized gains (losses) arising during the period	458		(113)		345
Reclassification adjustments for securities (gains) losses realized in net income (3)	25		(6)		19
Change in AOCI from securities available for sale activity in the period	636		(157)		479
Ending balance	$	(1,322)	$	333	$	(989)
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	272		(69)		203
Reclassification adjustments for (gains) losses on derivative instruments realized in net income (2)	67		(17)		50
Change in AOCI from derivative activity in the period	339		(86)		253
Ending balance	$	(323)	$	82	$	(241)
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)	6		(2)		4

Ending balance	$	(542)	$	136	$	(406)

Total other comprehensive income	850		(214)		636
Other	9		—		9
Total accumulated other comprehensive income (loss), end of period	$	(3,053)	$	770	$	(2,283)

(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 March 31
	2026		2025
	(In millions, except per share data)
Numerator:
Net income	$	559	$	490
Preferred stock dividends and other	(20)		(25)


Net income available to common shareholders	$	539	$	465
Denominator:
Weighted-average common shares outstanding—basic	$	863	$	906
Potential common shares	5		4
Weighted-average common shares outstanding—diluted	$	868	$	910






Earnings per common share:
Basic	$	0.63	$	0.51
Diluted	$	0.62	$	0.51

The effects from the assumed exercise of restricted stock units totaling 2 million for both the three months ended March 31, 2026 and 2025 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 (benefit) cost included the following components:


	Three Months Ended March 31
	Qualified Plans				Non-qualified Plans					Total
	2026		2025			2026		2025			2026		2025
	(In millions)
Service cost	$	5	$	5		$	—	$	—		$	5	$	5
Interest cost	18		20			1		1			19		21
Expected return on plan assets	(33)		(31)			—		—			(33)		(31)
Amortization of actuarial loss	4		5			1		1			5		6


Net periodic pension (benefit) cost	$	(6)	$	(1)		$	2	$	2		$	(4)	$	1

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 three months ended March 31, 2026.

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 three months ended March 31, 2026 or 2025.

NOTE 9. DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES

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


	March 31, 2026						December 31, 2025
	Notional Amount(1)		Estimated Fair Value				Notional Amount		Estimated Fair Value
	Gain(1)		Loss(1)		Gain(1)		Loss(1)
	(In millions)
Derivatives in cash flow hedging relationships:
Interest rate swaps	$	39,048	$	47	$	284	$	39,918	$	80	$	196
Interest rate options	2,000		3		2		2,000		2		1
Total derivatives in cash flow hedging relationships	41,048		50		286		41,918		82		197
Derivatives in fair value hedging relationships:
Interest rate swaps	8,502		38		60		8,067		23		73





Total derivatives designated as hedging instruments	$	49,550	$	88	$	346	$	49,985	$	105	$	270
Derivatives not designated as hedging instruments:
Interest rate swaps	$	94,028	$	997	$	972	$	93,891	$	1,023	$	996
Interest rate options	11,748		17		11		10,674		14		6
Interest rate futures and forward commitments	1,682		11		3		1,537		8		1
Other contracts	16,802		457		437		15,051		185		172
Total derivatives not designated as hedging instruments	$	124,260	$	1,482	$	1,423	$	121,153	$	1,230	$	1,175
Total derivatives	$	173,810	$	1,570	$	1,769	$	171,138	$	1,335	$	1,445

Total gross derivative instruments, before netting			$	1,570	$	1,769			$	1,335	$	1,445
Less: Netting adjustments (2)			1,269		1,276				1,120		964
Total gross derivative instruments, after netting			$	301	$	493			$	215	$	481

(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 $32 million and $83 million for derivative assets at March 31, 2026 and December 31, 2025, respectively. Cash collateral totaled $202 million and $123 million for derivative liabilities at March 31, 2026 and December 31, 2025, 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, 2025 for additional information regarding accounting policies for derivatives.

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 March 31, 2026, Regions was hedging its exposure to the variability in future cash flows into 2035.

As of March 31, 2026, cash flow hedges were held at a pre-tax net loss of $213 million, which includes pre-tax net gains of $10 million related to terminated cash flow floors and swaps. Regions expects to reclassify into earnings approximately $121 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 $2 million in pre-tax net gains related to the amortization of terminated cash flow floors and swaps.

See Note 6 for the impact of cash flow hedges on the consolidated statements of income regarding the realized gains or (losses) reclassified from AOCI into net income.

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.

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



	Three Months Ended March 31, 2026
	Interest Income		Interest Expense
	Debt securities			Long-term borrowings
	(In millions)
Total income (expense) presented in the consolidated statements of income	$	298		$	(52)

Gains/(losses) on fair value hedging relationships:
Interest rate contracts:
Amounts related to interest settlements on derivatives	$	1		$	(5)
Recognized on derivatives	29			2
Recognized on hedged items	(29)			(2)
Income (expense) recognized on fair value hedges	$	1		$	(5)



	Three Months Ended March 31, 2025
	Interest Income		Interest Expense
	Debt securities			Long-term borrowings
	(In millions)
Total income (expense) presented in the consolidated statements of income	$	266		$	(85)

Gains/(losses) on fair value hedging relationships:
Interest rate contracts:
Amounts related to interest settlements on derivatives	$	3		$	(14)
Recognized on derivatives	(46)			25
Recognized on hedged items	46			(25)
Income (expense) recognized on fair value hedges	$	3		$	(14)

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.


	March 31, 2026				December 31, 2025
	Hedged Items Currently Designated					Hedged Items Currently Designated
	Amortized Cost Basis of Assets/(Liabilities)		Hedge Accounting Basis Adjustment				Amortized Cost Basis of Assets/(Liabilities)		Hedge Accounting Basis Adjustment
	(In millions)				(In millions)
Debt securities available for sale	$	9,239	$	(28)			$	9,325	$	—
Long-term borrowings	(2,350)		50				(2,348)		52

Included in the amortized cost basis and hedge accounting basis adjustment of fair value hedges of debt securities available for sale are hedges designated under the portfolio layer method. At March 31, 2026 and December 31, 2025, the Company designated $3.4 billion and $2.5 billion, respectively, as the hedged amount from a closed portfolio of prepayable financial assets with a carrying amount of $6.5 billion and $6.1 billion, respectively. At March 31, 2026, the hedge accounting basis adjustment on active portfolio layer hedges reduced the carrying amount by $23 million.

The Company previously terminated fair value hedges related to available for sale debt securities. The terminated hedges had a remaining basis adjustment of $29 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. See Note 1 "Summary of Significant Accounting Policies" in the Annual Report on Form 10-K for the year ended December 31, 2025 for more information regarding these derivative instruments.

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


	Three Months Ended March 31
Derivatives Not Designated as Hedging Instruments	2026		2025
	(In millions)
Capital markets income:
Interest rate swaps	$	10	$	6
Interest rate options	7		8
Interest rate futures and forward commitments	3		3
Other contracts	7		(2)
Total capital markets income	27		15
Mortgage income:
Interest rate swaps	—		16
Interest rate options	—		1
Interest rate futures and forward commitments	3		(1)
Total mortgage income	3		16
	$	30	$	31

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 2026 and 2031. Swap participations, whereby Regions has sold credit protection have maturities between 2026 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 March 31, 2026 was approximately $596 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 March 31, 2026 and December 31, 2025 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 totaled $104 million and $54 million at March 31, 2026 and December 31, 2025, respectively, for which Regions had posted collateral of $121 million and $51 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, 2025 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. 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:


	March 31, 2026								December 31, 2025
	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	$	2,345	$	—	$	—	$	2,345	$	2,276	$	—	$	—	$	2,276
Federal agency securities	—		537		—		537		—		543		—		543
Obligations of states and political subdivisions	—		1		—		1		—		2		—		2
Mortgage-backed securities:
Residential agency	—		17,634		—		17,634		—		18,387		—		18,387

Commercial agency	—		6,340		—		6,340		—		5,829		—		5,829
Commercial non-agency	—		82		—		82		—		82		—		82
Corporate and other debt securities	—		478		2		480		—		439		2		441
Total debt securities available for sale	$	2,345	$	25,072	$	2	$	27,419	$	2,276	$	25,282	$	2	$	27,560
Loans held for sale	$	—	$	336	$	—	$	336	$	—	$	290	$	—	$	290
Marketable equity securities in other earning assets	$	859	$	—	$	—	$	859	$	946	$	—	$	—	$	946
Residential mortgage servicing rights	$	—	$	—	$	954	$	954	$	—	$	—	$	970	$	970
Commercial mortgage servicing rights through non-DUS agency programs	$	—	$	—	$	93	$	93	$	—	$	—	$	93	$	93
Derivative assets (2):
Interest rate swaps	$	—	$	1,082	$	—	$	1,082	$	—	$	1,126	$	—	$	1,126
Interest rate options	—		15		5		20		—		10		6		16
Interest rate futures and forward commitments	—		11		—		11		—		8		—		8
Other contracts	2		455		—		457		1		184		—		185
Total derivative assets	$	2	$	1,563	$	5	$	1,570	$	1	$	1,328	$	6	$	1,335

Derivative liabilities (2):
Interest rate swaps	$	—	$	1,316	$	—	$	1,316	$	—	$	1,265	$	—	$	1,265
Interest rate options	—		13		—		13		—		7		—		7
Interest rate futures and forward commitments	—		3		—		3		—		1		—		1
Other contracts	1		436		—		437		—		172		—		172
Total derivative liabilities	$	1	$	1,768	$	—	$	1,769	$	—	$	1,445	$	—	$	1,445
Securities sold, but not yet purchased	$	44	$	—	$	—	$	44	$	19	$	—	$	—	$	19

(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 analyses of activity related to the MSRs for three months ended March 31, 2026 and 2025.

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 is 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 March 31, 2026 and December 31, 2025. 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 March 31, 2026 and December 31, 2025 are included. Following the tables are descriptions of the valuation techniques and the sensitivity of the techniques to changes in the significant unobservable inputs.


	March 31, 2026
	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 MSR (1)	$954	Discounted cash flow	Weighted-average CPR (%)	4.3% - 15.3% (7.5%)
			OAS (%)	4.7% - 8.0% (5.0%)
Commercial MSR through non-DUS agency programs (1)	$93	Discounted cash flow	Weighted-average CPR (%)	6.9% - 7.6% (7.6%)
			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, 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 MSR (1)	$970	Discounted cash flow	Weighted-average CPR (%)	4.2% - 16.9% (7.5%)
			OAS (%)	4.7% -8.0% (5.0%)
Commercial MSR through non-DUS agency programs (1)	$93	Discounted cash flow	Weighted-average CPR (%)	6.5% - 7.6% (7.5%)
			Discount rate (%)	8.0% -10.0% (8.2%)

(1)See Note 6 to the consolidated financial statements of the Annual Report on Form 10-K for the year ended December 31, 2025 for additional disclosures related to assumptions used in the fair value calculation 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 March 31, 2026, the aggregate fair value of these loans totaled $328 million compared to aggregate unpaid principal of $325 million. At December 31, 2025, the aggregate fair value of these loans totaled $266 million compared to aggregate unpaid principal of $259 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 months ended March 31, 2026 and 2025, 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 March 31, 2026 and December 31, 2025.

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 March 31, 2026 and December 31, 2025.


	March 31, 2026										December 31, 2025
	Carrying Amount		Estimated Fair Value(1)		Level 1		Level 2		Level 3		Carrying Amount		Estimated Fair Value(1)		Level 1		Level 2		Level 3
	(In millions)										(In millions)
Financial assets:
Cash and cash equivalents	$	11,143	$	11,143	$	11,143	$	—	$	—	$	10,907	$	10,907	$	10,907	$	—	$	—
Debt securities held to maturity	5,434		5,374		—		5,374		—		5,606		5,584		—		5,584		—

Loans held for sale	128		128		—		126		2		221		221		—		221		—
Loans, net of unearned income and allowance for loan losses(2)(3)	96,399		94,184		—		—		94,184		94,081		92,119		—		—		92,119
Other earning assets	776		776		—		776		—		757		757		—		757		—


Financial liabilities:

Deposits with no stated maturity(4)	118,772		118,772		—		118,772		—		117,240		117,240		—		117,240		—
Time deposits(4)	13,108		13,089		—		13,089		—		13,888		13,874		—		13,874		—
Short-term borrowings	3,200		3,200		—		3,200		—		750		750		—		750		—
Long-term borrowings	3,137		3,242		—		3,241		1		4,134		4,309		—		4,308		1
Loan commitments and letters of credit	154		154		—		—		154		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 March 31, 2026 was $2.2 billion or 2.3 percent. The fair value discount on the loan portfolio's net carrying amount at December 31, 2025 was $2.0 billion or 2.1 percent.

(3)At March 31, 2026, the carrying value and estimated fair value of loans include the sales-type, direct financing and leveraged leases. Prior period amounts were conformed accordingly.

(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.

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, 2025.

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 may be updated to reflect these enhancements. In the first quarter of 2026, the Company changed its provision for credit losses allocation methodology from expected losses to net charge‑offs. For each business segment, the provision for (benefit from) credit losses represents net charge‑offs, with any portion of the provision that is greater than or less than net charge‑offs reported within the Other segment.

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



	Three Months Ended March 31, 2026
	Corporate Bank		Consumer Bank		Wealth Management		Other		Consolidated
	(In millions)
Net interest income	$	474	$	729	$	45	$	—	$	1,248
Provision for (benefit from) credit losses	71		56		—		(36)		91
Non-interest income:
Service charges on deposit accounts	66		96		1		—		163
Card and ATM fees	11		106		—		—		117
Investment management and trust fee income	—		—		92		—		92
Capital markets income	84		—		—		—		84
Mortgage income	—		32		—		—		32
Investment services fee income	—		—		49		—		49
Commercial credit fee income	30		—		—		—		30
Bank-owned life insurance	—		—		—		30		30
Securities gains (losses), net	—		—		—		(3)		(3)
Market value adjustments on employee benefit assets	—		—		—		(5)		(5)
Other miscellaneous income (loss)	39		18		1		(22)		36
Total non-interest income	230		252		143		—		625
Non-interest expense:
Salaries and employee benefits	151		203		76		229		659
Equipment and software expense	5		24		1		78		108
Net occupancy expense	7		55		3		7		72
Other expenses (benefits) (1)	168		325		50		(314)		229
Total non-interest expense	331		607		130		—		1,068
Income before income taxes	302		318		58		36		714
Income tax expense (benefit)	75		79		15		(14)		155
Net income	$	227	$	239	$	43	$	50	$	559
Average assets	$	71,203	$	36,905	$	2,216	$	48,963	$	159,287



	Three Months Ended March 31, 2025
	Corporate Bank		Consumer Bank		Wealth Management		Other		Consolidated
	(In millions)
Net interest income	$	441	$	710	$	43	$	—	$	1,194
Provision for credit losses	65		59		—		—		124
Non-interest income (loss):
Service charges on deposit accounts	64		96		1		—		161
Card and ATM fees	11		106		—		—		117
Investment management and trust fee income	—		—		86		—		86
Capital markets income	79		—		1		—		80
Mortgage income	—		40		—		—		40
Investment services fee income	—		—		43		—		43
Commercial credit fee income	27		—		—		—		27
Bank-owned life insurance	—		—		—		23		23
Securities gains (losses), net	—		—		—		(25)		(25)
Market value adjustments on employee benefit assets	—		—		—		(3)		(3)
Other miscellaneous income (loss)	42		19		—		(20)		41
Total non-interest income (loss)	223		261		131		(25)		590
Non-interest expense:
Salaries and employee benefits	145		194		70		216		625
Equipment and software expense	5		25		—		69		99
Net occupancy expense	7		53		3		7		70
Other expenses (benefits) (1)	153		320		48		(276)		245
Total non-interest expense	310		592		121		16		1,039
Income (loss) before income taxes	289		320		53		(41)		621
Income tax expense (benefit)	72		80		13		(34)		131
Net income (loss)	$	217	$	240	$	40	$	(7)	$	490
Average assets	$	69,289	$	37,667	$	2,133	$	47,787	$	156,876

(1) Other 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, 2025 for more information regarding these instruments.

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


	March 31, 2026		December 31, 2025
	(In millions)
Unused commitments to extend credit	$	68,671	$	68,237
Standby letters of credit	2,332		2,283
Commercial letters of credit	55		97
Liabilities associated with standby letters of credit	34		34
Assets associated with standby letters of credit	36		36
Reserve for unfunded credit commitments	120		130

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, including the litigation matter described below, 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.

Shareholder Derivative Litigation

On December 22, 2023, a putative shareholder derivative complaint was filed in the Court of Chancery of the State of Delaware, captioned Brewer v. Turner, et al., Case No. 2023-1284-KSJM, allegedly on behalf of Regions as a nominal defendant, against a number of Regions’ current and former directors and officers (the “Derivative Complaint”). The claims in the Derivative Complaint relate to the subject matter of the previously disclosed Consent Order that Regions entered into with the CFPB in September 2022. In September 2025, the court issued an order granting in part, and denying in part, the defendants’ motion to dismiss. The defendants appealed the claims that were not dismissed to the Delaware Supreme Court, which appeal was denied on December 15, 2025. Regions’ Board of Directors has established a Special Litigation Committee (“SLC”) to investigate the claims. Based on the establishment of the SLC, the court granted an order on February 5, 2026 staying the action for 180 days.

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 March 31, 2026 and December 31, 2025, the Company's DUS servicing portfolio totaled approximately $7.9 billion and $7.8 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 March 31, 2026 and December 31, 2025, these serviced loans totaled approximately $881 million and $823 million, respectively. Regions' maximum quantifiable contingent liability related to all loans subject to a loss share guarantee was approximately $2.9 billion and $2.7 billion at March 31, 2026 and December 31, 2025, 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 March 31, 2026 and December 31, 2025. Refer to Note 1 "Summary of Significant Accounting Policies" in the Annual Report on Form 10-K for the year ended December 31, 2025 for additional information.

NOTE 13. RECENT ACCOUNTING PRONOUNCEMENTS

The following table provides a brief description of accounting standards adopted in 2026 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 2026
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	Regions adopted this guidance as of January 1, 2026 with no material impact.
ASU 2025-05 Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets	This ASU will provide an optional practical expedient that allows entities to assume that current conditions as of the balance sheet date will not change for the asset's remaining life when developing reasonable and supportable forecasts as a part of estimating expected credit losses for current account receivable and current contract assets that arise from transactions accounted for under Topic 606, Revenue from Contracts with Customers.	January 1, 2026	Regions adopted this guidance as of January 1, 2026 with no material impact.
ASU 2025-08 Financial Instruments—Credit Losses (Topic 326): Purchased Loans	ASU 2025‑08 expands the use of the gross‑up method to certain acquired non‑PCD loans classified as purchased seasoned loans. The amendment eliminates Day 1 credit loss expense for these loans by requiring recognition of an initial allowance with a corresponding gross‑up of amortized cost. It also clarifies the criteria for identifying purchased seasoned loans, including special treatment for loans acquired in a business combination. Guidance for PCD assets remains unchanged, and the amendments narrow subsequent measurement differences between purchased seasoned loans and PCD assets. The ASU is applied prospectively.	January 1, 2027 Early adoption is permitted.	Regions adopted this guidance as of January 1, 2026 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 Early adoption is permitted.	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 Early adoption is permitted.	Regions will continue to evaluate through date of adoption.
ASU 2025-06 Intangibles — Goodwill and Other — Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software	This ASU will clarify and modernize the accounting for costs related to internal-use software by removing all references to project stages and clarifying the threshold entities apply to begin capitalizing costs.	January 1, 2028 Early adoption is permitted.	Regions will continue to evaluate through date of adoption.
ASU 2025-07 Derivatives and Hedging (Topic 815) and Revenue from Contracts with Customers (Topic 606): Derivatives Scope Refinements and Scope Clarification for Share-Based Noncash Consideration from a Customer in a Revenue Contract	This ASU will refine the scope of the guidance on derivatives in Topic 815 by adding a derivative scope exception for certain contracts with underlyings that are based on the operations or activities of one of the parties to the contract. It will also clarify the applicability of Topic 606 and its interaction Topic 815 and Topic 321, Investments - Equity Securities, in the accounting for share-based noncash consideration (e.g., warrants or shares) received from a customer for the transfer of goods or services.	January 1, 2027 Early adoption is permitted.	Regions will continue to evaluate through date of adoption.


Standard	Description	Required Date of Adoption	Effect on Regions' financial statements or other significant matters
ASU 2025-09 Derivatives and Hedging (Topic 815): Hedge Accounting Improvements	This update is for the application of hedge accounting under ASC 815 and allows entities to apply hedge accounting to a broader set of highly effective economic hedges. The amendments expand the types of hedged risks that may be aggregated within groups of forecasted transactions, broaden hedge accounting eligibility for choose‑your‑rate debt, and extend hedge accounting to certain forecasted purchases and sales of nonfinancial assets. The ASU also accommodates reference‑rate‑reform‑related differences between loan and swap markets and removes the net written option test in specific situations. In addition, it eliminates recognition and presentation mismatches arising from certain dual hedge strategies involving foreign‑currency denominated debt.	January 1, 2027 Early adoption is permitted.	Regions will continue to evaluate through date of adoption.
ASU 2025-11 Interim Reporting (Topic 270): Narrow-Scope Improvements	This ASU is designed to improve how and when entities apply existing interim reporting disclosures and select which disclosures to provide in interim reporting periods. The amendments also establish a disclosure principle to provide clarity within interim reporting that requires entities to disclose events and changes occurring after the most recent fiscal year-end that have a material impact on the entity.	January 1, 2028 Early adoption is permitted.	Regions will continue to evaluate through date of adoption.
ASU 2025-12 Codification Improvements	This update contains guidance that reflects certain technical corrections, misapplication of guidance, clarifications, and other minor improvements to GAAP on 33 issues that affect a wide variety of topics.	January 1, 2027 Early adoption is permitted.	The adoption of this guidance is not likely to have a material impact. Regions will continue to evaluate through date of adoption.

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