Regions Financial: 2Q26 EPS PREVIEW: NIM, capital markets a little soft this quarter but full-year in-line

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Regions Financial: 2Q26 EPS PREVIEW: NIM, capital markets a little soft this quarter but full-year in-line

Equity Research

U.S. Large-Cap Banks

25 June 2026

Regions Financial

2Q26 EPS PREVIEW: NIM, capital

markets a little soft this quarter

RF UNDERWEIGHTbut full-year in-line

Unchanged

RF sees 2Q NII up ~2%, with NIM in the mid-3.60%s (a touch U.S. Large-Cap Banks POSITIVE

light) before rising to the low-3.70s by year-end. Capital Unchanged

markets should build within the $90–$105mm range, though Price Target USDUnchanged30.00

2Q tracks closer to ~$84mm with momentum improving into Price (23-Jun-26) USD 29.29

the back half of 2026. Credit quality should continue to Potential Upside/Downside +2.4% Source: Bloomberg, Barclays Research

improve.

Market Cap (USD mn) 24995

Shares Outstanding (mn) 853.38

Free Float (%) 99.48

Expected Results 52 Wk Avg Daily Volume (mn) 16.1

Expected results: We are lowering our 2Q26 operating EPS estimate for RF to $0.64 (-$0.01), Dividend Yield (%) 3.62

driven by a weaker capital markets outlook and a soft NIM. Consensus stands at $0.63. We Return on Equity TTM (%) 12.50

expect another $40mn ($0.04) of securities losses in the quarter. Intra-quarter, RF reaffirmed its Current BVPS (USD) 20.38

2026 outlook, including low single-digit average loan and deposit growth for the full year. For Source: Bloomberg

2Q26, NII is still expected to increase ~2% q-o-q, with NIM anticipated in the mid-3.60% range

(said mid-to-high 3.60% range prior; 3.67% in 1Q26) before improving to the low-3.70% range by Price Performance Exchange-NYSE

year-end as fixed-rate asset repricing offsets deposit competition. Capital markets revenue in 52 Week range USD 31.53-22.00

2Q26 is now trending closer to 1Q26 levels (~$84mm), below its prior guide of the low end of the