Results at a glance
- Period
- FY2026Q3
- Revenue
- $2B (1,973 MUSD)
- Net income
- $611M (611 MUSD)
- Net margin
- 31.0%
From the Regions Financial Open LedgerView the live ledgerIssuer filing (FY2026Q3)
Regions Financial (NYSE: RF), the Birmingham Southeast regional, reported third-quarter 2026 net income to common of $611 million, up 11% year over year, and adjusted diluted EPS of $0.73, up 16% (GAAP $0.71). The quarter had two record fee lines at once: capital markets income of $107 million, up 27.4% sequentially on M&A advisory, underwriting and syndication, and another record in treasury management income inside service charges of $171 million. Net interest income rose 3.3% to $1,298 million with a top-quartile 3.68% margin — funded by peer-leading 1.70% interest-bearing deposit costs — while expenses stayed flat sequentially at $1,118 million and the efficiency ratio improved to 56.2%.
Credit is the quiet compounder here. The $68 million provision was flat to last quarter and down 35% from a year ago; net charge-offs fell 13 basis points sequentially to 0.29% of loans, business criticized loans and nonperforming loans both shrank, and the allowance covers nonperforming loans 275%, up from 241%. Capital generation stayed strong with estimated CET1 at 10.8% and return on average tangible common equity at 21.27% (21.66% adjusted), funding $255 million of common dividends plus $95 million of buybacks — about 3 million shares through open-market purchases. Ending loans of $99.8 billion grew 0.6% sequentially on broad-based C&I growth, up 6.4% year over year.
The Headline Numbers
| Metric | Q3 2026 | Q2 2026 | Q3 2025 |
|---|---|---|---|
| Total revenue (GAAP) | $1,973M | $1,907M | $1,916M |
| Net interest income | $1,298M | $1,277M | $1,257M |
| Noninterest income | $675M | $630M | $659M |
| Capital markets income | $107M | $84M | $104M |
| Provision | $68M | $68M | $105M |
| Noninterest expense | $1,118M | $1,121M | $1,103M |
| Net income to common | $611M | $549M | $548M |
| GAAP diluted EPS | $0.71 | $0.64 | $0.61 |
| Adjusted diluted EPS | $0.73 | $0.68 | $0.63 |
| Net interest margin (FTE) | 3.68% | 3.66% | 3.59% |
| Efficiency ratio | 56.2% | 58.3% | 57.2% |
| Return on avg tangible common equity | 21.27% | 19.01% | 18.81% |
| CET1 ratio | 10.8% | 10.7% | 10.9% |
| Net charge-off ratio | 0.29% | 0.42% | 0.55% |
CEO John Turner credited "strong credit quality, continued momentum in fee-based businesses, and economically vibrant markets throughout our footprint." The balance sheet shows the rate-hedging franchise working: deposits of $129.5 billion cost little, the loan-to-deposit ratio sits at 77.1%, and $64 billion of available liquidity backs the book. The one contra-trend line is AOCI, which widened to $(3,197) million from $(1,922) million last quarter.
Five years in the ledger: the rate cycle, absorbed and rebounding
The ledger runs FY2021–FY2025 plus this quarter, and it reads as a clean rate-cycle round trip: 2021's $2.49 diluted EPS on a $524 million provision benefit, the 2022–2023 margin surge (net interest income from $3,914 million to $5,320 million) as deposit costs lagged, then the 2024 trough at $1.93 — NII squeezed to $4,818 million plus $208 million of securities losses — and 2025's rebound to $2.30. AOCI traces the same arc, from a $289 million gain in 2021 to a $(3,343) million hole in 2022 and back to $(1,535) million. Every annual income statement and balance sheet, plus this quarter's full statements, is modeled as examinable Beancount below.
