Regions Financial Corp (RF.N) 2Q26 Review - 2Q and Guidance As Expected, Still See Value for High-Teens Returns; Raise PT to $36

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Regions Financial Corp (RF.N) 2Q26 Review - 2Q and Guidance As Expected, Still See Value for High-Teens Returns; Raise PT to $36

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20 Jul 2026 05:00:00 ET │ 15 pages

Regions Financial Corp (RF.N)

2Q26 Review - 2Q and Guidance As Expected, Still See Value for High-

Teens Returns; Raise PT to $36

CITI'S TAKE Buy

Price (17 Jul 26 16:00) US$31.65 RF lagged on earnings day (down ~2.3% vs BKX down ~1.5%) following a

Target price US$36.00↑ largely uneventful quarter, with 2Q results in-line with our estimates, 3Q

guidance consistent with consensus, and no meaningful changes to full- from US$32.00

year guidance aside from fees being refined to the lower end of 3-5% Expected share price return 13.7%

range. Heading into the quarter, we expected NIM to be the primary focus Expected dividend yield 3.8%

given competition in the Southeast, but reported 2Q NIM of 3.66% and Expected total return 17.5%

outlook for ~3.7% exit rate were as expected. Our thought is mgmt Market Cap US$27,009M

commentary around wholesale-funding rather than competing for

deposits may have been an overhang/perceived pressure on the forward

NIM outlook. In the case of RF, we think this may be the right trade-off in

our view given mgmt is preserving the value of its peer-leading low-cost Benjamin GerlingerAC

deposit base as opposed to growing deposits at higher rates that could +1-212-816-3538

prove difficult to later fully reprice to legacy back-book rates. benjamin.gerlinger@citi.com

Mikhail Mrotchek

Estimate Changes — Our 2026E EPS increases 5c to $2.65 (vs. FactSet consensus +1-212-816-2345

of $2.61), 2027E EPS decreases 5c to $2.95 (vs. FactSet consensus of $2.85), and misha.mrotchek@citi.com

2028E EPS decreases 5c to $3.30. See Figure 1 for more detail on estimate revisions.

Kaili Wang, CFA