1) Financial Performance Overview
- Regions reported Q2 2026 earnings of $549 million, or $0.64 per share; adjusted earnings were $583 million or $0.68 per share.
- Adjusted pre-tax, pre-provision income reached $831 million, with a return on tangible common equity of 20%.
- Average loans increased by approximately 2%, while ending loans grew 1%, driven by strong commercial and industrial lending.
- Average deposits grew modestly, with a 1% increase in non-interest-bearing deposits.

2) Strategic Initiatives and Operational Updates
- Regions was recognized as the number 1 regional bank in online banking satisfaction by J.D. Power, and improved its mobile app ranking to number 2.
- The successful implementation of a new commercial lending platform marks a significant advancement in technology infrastructure.
- A pilot for core deposit transformation is expected later this year, with full conversion planned for 2027.
- The acquisition of the Frazer Lanier Company aims to enhance capital markets capabilities, particularly in municipal finance.

3) Credit Quality and Risk Management
- Credit performance improved, with lower net charge-offs and reductions in criticized and non-performing loan categories.
- Annualized net charge-offs decreased to 42 basis points, with expectations for full-year charge-offs between 40 and 50 basis points.
- The allowance for credit losses ratio declined to 1.63%, reflecting a commitment to disciplined credit risk management.

4) Market Environment and Revenue Outlook
- Economic activity remains solid, with steady investment and job growth supporting consumer spending and loan demand.
- Net interest income increased by 2% linked quarter, with a net interest margin of 3.66%.
- Adjusted non-interest income grew by 7% linked quarter, driven by strong performance in wealth management and card fees.
- For the second half of 2026, net interest income is expected to increase by approximately 2%, with full-year growth projected between 2.5% and 4%.

5) Guidance and Future Considerations
- Regions expects average deposits to increase by low single digits for 2026, maintaining a focus on disciplined expense management.
- The bank anticipates continued positive operating leverage, with adjusted non-interest expense growth projected between 1.5% and 3.5%.
- Further details on the impact of the Frazer Lanier acquisition and the success of the deposit transformation pilot are needed for a comprehensive outlook.

Bottom line: Regions is positioned for sustainable growth with solid financial performance, strategic investments in technology and service enhancements, and a disciplined approach to credit risk management. The outlook remains positive, with expectations for continued revenue growth and effective capital management.