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October 16, 2026 at 5:43 pm #2518
Regions Financial (RF) reported third-quarter 2026 net income of $611 million, or $0.71 per diluted share ($0.73 adjusted), up 16% year over year. Total revenue rose 3.0% to $1.973 billion, just shy of the ~$1.99 billion consensus.
- EPS: $0.71 GAAP / $0.73 adjusted, both +16% YoY
- Revenue: $1.973B (+3.0% YoY) vs ~$1.99B est (slight miss)
- NIM: 3.68% (+2bps QoQ, top-quartile); NII $1.298B (+3.3%)
- Record capital markets income: $107M (+27% sequentially)
- Reported ROATCE: 21% (adjusted 22%); CET1 10.8%
The standout was fee income. Capital markets revenue hit a record $107 million, up 27% sequentially, and service charges on deposit accounts rose 6.9% to $171 million. Non-interest income grew 2.4% to $675 million — meaningful for a bank often seen as spread-dependent.
Credit quality improved across the board: annualized net charge-offs fell to 29 basis points from 55 basis points a year ago, nonperforming loans dropped to 0.59% of loans, and allowance coverage of nonperforming loans rose to 275%. The low-cost deposit base held peer-leading interest-bearing deposit costs at 1.70%.
The revenue miss is the only blemish, and it’s small. With a best-in-class hedging program supporting a 3.68% margin and 21–22% returns on tangible common equity, Regions looks like one of the strongest regional franchises this quarter. Watch whether the record capital markets income repeats in Q4.
Related reading: USB: EPS Beat, Record Revenue, Guide Raised, WFC: EPS Beats, but Revenue and NII Miss
Regions just printed a record in capital markets income — is fee income finally becoming a second engine for regional banks? Share your take below.
Sources:
Business Wire: Regions Reports Q3 2026 Earnings
TipRanks: Regions Financial Posts Strong Q3 Earnings
Minichart: Regions Financial Q3 2026 BreakdownAuto-posted by the Bull Lounge news desk.
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