INTRODUCTION The following discussion and analysis is part of Regions Financial Corporation’s (“Regions” or the “Company”) Quarterly Report on Form 10-Q filed with the SEC and should be read in conjunction with the consolidated financial statements and the related notes that appear in Part I, Item 1 of this report. In addition, this discussion and analysis updates the Annual Report on Form 10-K for the year ended December 31, 2025, which was previously filed with the SEC. This financial information is presented to aid in understanding Regions’ financial position and results of operations and should be read together with the financial information contained in Regions’ Annual Report on Form 10-K. See Note 1 "Basis of Presentation" and Note 13 "Recent Accounting Pronouncements" to those consolidated financial statements for further detail. The emphasis of this discussion will be on the three and six months ended June 30, 2026 compared to the three and six months ended June 30, 2025 for the consolidated statements of income. For the consolidated balance sheets, the emphasis of this discussion will be on the balances as of June 30, 2026 compared to December 31, 2025. This discussion and analysis contains statements that may be considered “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. See pages 6 through 8 for additional information regarding forward-looking statements. CORPORATE PROFILE Regions is a financial holding company headquartered in Birmingham, Alabama operating in the South, Midwest and Texas. In addition, Regions operates several offices delivering specialty capabilities in New York, Washington D.C., Chicago, Salt Lake City, and other locations nationwide. Regions provides financial solutions for a wide range of clients including retail and mortgage banking services, commercial banking services and wealth and investment services. Further, Regions and its subsidiaries deliver other specialty capabilities including merger and acquisition advisory services, capital markets solutions, home improvement lending, investment advisory services, equipment financing for commercial clients and small business customers, low income housing tax credit corporate fund syndication and asset management, financing to CRA-qualified customers, investment and insurance products, broker-dealer services to commercial clients, and others. Regions conducts its banking operations through Regions Bank, an Alabama state-chartered commercial bank that is a member of the Federal Reserve System. At June 30, 2026, Regions operated 1,246 total branch outlets. Regions carries out its strategies and derives its profitability from three reportable business segments: Corporate Bank, Consumer Bank, and Wealth Management, with the remainder in Other. See Note 11 "Business Segment Information" to the consolidated financial statements for more information regarding Regions’ segment reporting structure. Regions’ business strategy is focused on providing a competitive mix of products and services, delivering quality customer service, and continuing to develop and optimize distribution channels that include a branch distribution network with offices in convenient locations, as well as electronic and mobile banking. Regions’ profitability, like that of many other financial institutions, is dependent on its ability to generate revenue from net interest income as well as non-interest income sources. Net interest income is primarily the difference between the interest income Regions receives on interest-earning assets, such as loans, leases, investment securities and cash balances held at the Federal Reserve Bank, and the interest expense Regions pays on interest-bearing liabilities, principally deposits and borrowings. Regions’ net interest income is impacted by the size and mix of its balance sheet components and the interest rate spread between interest earned on its assets and interest paid on its liabilities. Non-interest income includes fees from service charges on deposit accounts, card and ATM fees, mortgage servicing and secondary marketing, investment management and trust activities, capital markets and other customer services which Regions provides. Results of operations are also affected by the provision for credit losses and non-interest expenses such as salaries and employee benefits, equipment and software expenses, occupancy, professional, legal and regulatory expenses, FDIC insurance assessments, and other operating expenses, as well as income taxes. Economic conditions, competition, new legislation and related rules impacting regulation of the financial services industry and the monetary and fiscal policies of the Federal government significantly affect most, if not all, financial institutions, including Regions. Lending and deposit activities and fee income generation are influenced by levels of business spending and investment, consumer income, consumer spending and savings, capital market activities, and competition among financial institutions, as well as customer preferences, interest rate conditions, inflation and prevailing market rates on competing products in Regions’ market areas. SECOND QUARTER OVERVIEW Economic Environment in Regions' Banking Markets Regions utilized its internal June baseline forecast to calculate the ACL as of June 30, 2026. Refer to the "Economic forecast and qualitative adjustments" discussion in the "Allowance" section for further detail. 50 Table of Contents Second Quarter Results Regions reported net income available to common shareholders of $549 million or $0.64 per diluted share in the second quarter of 2026 compared to net income available to common shareholders of $534 million or $0.59 per diluted share in the second quarter of 2025. Net interest income (taxable-equivalent basis) totaled $1.3 billion in the second quarter of 2026, which increased $20 million compared to the second quarter of 2025. The net interest margin (taxable-equivalent basis) was 3.66 percent in the second quarter of 2026, reflecting a 1 basis point increase from the same period in 2025. The increases in net interest income and margin were driven primarily by lower total funding costs that overcame a modest decline in loan yields, which were also protected by the Company's hedging program. Additionally, net interest income and margin benefitted from fixed-rate asset turnover and securities repositionings executed in 2025 and 2026. Refer to the related discussion below Table 18 "Consolidated Average Daily Balances and Yield/Rate Analysis" for further detail. The provision for credit losses totaled $68 million in the second quarter of 2026 compared to $126 million in the second quarter of 2025. Net charge-offs totaled $102 million, or 0.42 percent of average loans, in the second quarter of 2026, compared to $113 million, or 0.47 percent of average loans, in the second quarter of 2025. This decrease reflected continued progress on previously identified portfolios of interest that were already reserved for. The allowance as a percent of total loans, net, decreased to 1.63 percent at June 30, 2026, compared to 1.76 percent at December 31, 2025 due to asset quality improvement and resolutions of previously reserved for credits. Refer to the "Allowance" section for further detail. Non-interest income was $630 million in the second quarter of 2026 compared to $646 million in the second quarter of 2025 primarily driven by securities losses associated with repositioning transactions in the second quarter of 2026 and a decline in mortgage income. Partially offsetting the losses were increases in service charges, investment management and trust fee income, investment services fee income, and higher market valuations on employee benefit assets. See Table 23 "Non-Interest Income" for further details. Non-interest expense was $1.1 billion in the second quarter of 2026 which increased $48 million compared to the second quarter of 2025. The increase was primarily driven by an increase in salaries and benefits and outside services expenses. These increases were partially offset by a decline in FDIC insurance expense, operational losses, and Visa class B shares expense. See Table 24 "Non-Interest Expense" for further details. Regions' effective tax rate was 20.7 percent in the second quarter of 2026 compared to 20.3 percent in the second quarter of 2025. See the "Income Taxes" section for further details. Capital Regions and Regions Bank are required to comply with regulatory capital requirements established by Federal and State banking agencies, which include quantitative requirements including the CET1 ratio. At June 30, 2026, Regions’ CET1 ratio was estimated to be 10.7 percent. For additional information on Regions' regulatory capital requirements see the "Regulatory Requirements" section. Regions is subject to supervisory stress testing conducted by the Federal Reserve and its SCB is currently floored at 2.5 percent. See Note 6 "Shareholders' Equity and Accumulated Other Comprehensive Income (Loss)" to the consolidated financial statements for further details. The Board has authorized the repurchase of up to $3.0 billion of the Company's common stock through the fourth quarter of 2027. See Note 6 "Shareholders' Equity and Accumulated Other Comprehensive Income (Loss)" for more information. On July 15, 2026, the Board declared a $0.035 increase, or 13 percent, to the quarterly common stock dividend to $0.30 which will be payable on October 1, 2026, to shareholders of record at close of business on September 1, 2026. BALANCE SHEET ANALYSIS The following sections provide expanded discussion of significant changes in certain line items in asset, liability, and shareholders' equity categories. CASH AND CASH EQUIVALENTS Cash and cash equivalents decreased approximately $981 million from year-end 2025 to June 30, 2026 primarily due to an increase in loans and a decrease in deposits which was partially offset by an increase in borrowed funds. See the "Loans", "Deposits, "Borrowed Funds" and "Liquidity" sections for more information. 51 Table of Contents DEBT SECURITIES The following table details the carrying values of debt securities, including both held to maturity and available for sale: Table 1—Debt Securities June 30, 2026 December 31, 2025 (In millions) U.S. Treasury securities $ 2,039 $ 2,276 Federal agency securities 532 543 Obligations of states and political subdivisions 2 2 Mortgage-backed securities: Residential agency 22,699 23,624 Commercial agency 6,800 6,198 Commercial non-agency 157 82 Corporate and other debt securities 430 441 $ 32,659 $ 33,166 Debt securities, which comprise approximately 23 percent of earning assets, are an important tool used to manage interest rate sensitivity and provide a primary source of liquidity for the Company, as much of the portfolio is highly liquid. Additionally, some of the debt securities portfolio is eligible to be used as collateral for funding of various types of borrowings. See the "Liquidity" and "Market Risk-Interest Rate Risk" sections for more information on these arrangements. See also Note 3 "Debt Securities" to the consolidated financial statements for additional information. As of June 30, 2026, debt securities held to maturity and debt securities available for sale represented 16 percent and 84 percent, respectively, of the total debt securities portfolio. Debt securities decreased $507 million from December 31, 2025 to June 30, 2026 due to the timing of securities purchases and less favorable market valuation adjustments resulting from changes in interest rates. During the second quarter of 2026, the Company executed a debt securities repositioning involving the sale of shorter-duration commercial agency MBS and U.S. Treasuries, which were replaced with longer-duration commercial and residential agency MBS and U.S. Treasuries with higher market yields. In total the Company sold approximately $900 million of debt securities available for sale and realized approximately $40 million in pre-tax losses. The average life of the debt securities portfolio at both June 30, 2026 and December 31, 2025 was estimated to be 5.9 years, with a duration of approximately 3.9 years, inclusive of fair value hedges (see Table 20). LOANS HELD FOR SALE The following table presents Regions’ loans held for sale by type: Table 2—Loans Held for Sale June 30, 2026 December 31, 2025 (In millions) Commercial $ 290 $ 245 Residential first mortgage 298 266 Consumer and other performing 2 — Non-performing 1 — $ 591 $ 511 Commercial loans held for sale include commercial mortgage loans originated for sale to third parties and commercial loans originally recorded as held for investment when management has the intent to sell. Levels of commercial loans held for sale fluctuate based on timing of sale to third parties. The levels of residential first mortgage loans held for sale that are part of the Company's mortgage originations fluctuate depending on the timing of origination and sale to third parties. 52 Table of Contents LOANS GENERAL Loans, net of unearned income, represented approximately 70 percent of interest-earning assets as of June 30, 2026. The following table presents the distribution of Regions' loan portfolio by segment and class, net of unearned income: Table 3—Loan Portfolio June 30, 2026 December 31, 2025 (In millions, net of unearned income) Commercial and industrial $ 51,841 $ 48,790 Commercial real estate mortgage—owner-occupied 5,127 4,845 Commercial real estate construction—owner-occupied 267 263 Total commercial 57,235 53,898 Commercial investor real estate mortgage 7,896 7,172 Commercial investor real estate construction 2,073 1,934 Total investor real estate 9,969 9,106 Residential first mortgage 19,498 19,765 Home equity lines 3,241 3,232 Home equity loans 2,263 2,324 Consumer credit card 1,498 1,519 Other consumer 5,496 5,793 Total consumer 31,996 32,633 $ 99,200 $ 95,637 PORTFOLIO CHARACTERISTICS Loans, net of unearned income, increased $3.6 billion from year-end 2025 due to an increase across all commercial and investor real estate loan classes as discussed below. These increases were partially offset by a slight decline in consumer loans. Regions manages loan growth with a focus on risk management and risk-adjusted return on capital. The following sections describe the composition of the portfolio segments and classes disclosed in Table 3, explain changes in balances from year-end 2025 and highlight the related risk characteristics. Regions believes that its loan portfolio is well diversified by product, client, and geography throughout its footprint. However, the loan portfolio may be exposed to certain concentrations of credit risk which exist in relation to individual borrowers or groups of borrowers, certain types of collateral, certain types of industries, and certain loan products. See Note 4 "Loans and the Allowance for Credit Losses" to the consolidated financial statements for additional discussion. Commercial Over half of the Company’s total loans are included in the commercial portfolio segment. These balances are spread across numerous industries, as noted in Table 4. The Company manages the related risks to this portfolio by setting certain lending limits for each significant industry. The commercial portfolio segment includes commercial and industrial loans for use in customers' normal business operations to finance working capital needs, equipment purchases, expansion projects and acquisitions. See the "Portfolio Characteristics" section in Regions' Annual Report on Form 10-K for the year ended December 31, 2025 for more information on details surrounding the commercial portfolio segment and underwriting criteria, underwriting for owner-occupied real estate and real estate construction and real estate appraisals for commercial and IRE loans. Commercial and industrial loans increased $3.1 billion since year-end 2025 driven primarily by increases in energy and utilities, manufacturing, real estate, and healthcare. Growth was driven by higher line utilization rates and new loan production. In the first six months of 2026, the increase in commercial and industrial loans was broad-based as shown in Table 4. The commercial portfolio also includes owner-occupied commercial real estate mortgage loans to operating businesses, which are loans for long-term financing on real estate assets, and are repaid by cash generated by business operations. Owner-occupied commercial real estate construction loans are made to commercial businesses for the development of land or construction of a building where the repayment is derived from revenues generated from the business of the borrower. These owner-occupied real estate and real estate construction loans generally mature within a 10 year period and with amortization periods reflecting the longer life of the underlying collateral. Typical structure is an amortizing term loan, though construction loans are short-term, monitored, non-revolving draw facilities. These loans frequently have a covenant package combination consistent with the underwriting of commercial loans, inclusive of applicable debt service coverage, leverage, and liquidity measurements. Investor Real Estate Loans for real estate development are repaid through cash flows related to the operation, sale or refinance of the property. This portfolio segment includes extensions of credit to real estate developers or investors where repayment is dependent on the 53 Table of Contents sale of real estate or income generated from the real estate collateral. A portion of Regions’ IRE portfolio segment consists of loans secured by residential product types (land, single-family and condominium loans) within Regions’ markets. Additionally, this category includes loans made to finance income-producing properties such as apartment buildings, office and industrial buildings, and retail shopping centers. Total IRE loans increased $863 million in comparison to year-end 2025 balances due to increases in fundings to previously approved projects and new term loans for apartments and medical office buildings. See the "Investor Real Estate" section in Regions' Annual Report on Form 10-K for the year ended December 31, 2025 for more information on details surrounding the investor real estate portfolio segment and underwriting criteria. The following tables provide detail of Regions' commercial and IRE lending balances in selected industries. Table 4—Commercial and Investor Real Estate Industry Exposure June 30, 2026 December 31, 2025 (3) Loans Unfunded Commitments Total Exposure Percent of Balance Loans Unfunded Commitments Total Exposure Percent of Balance (In millions) (In millions) Commercial: Administrative, support, waste and repair $ 1,199 $ 825 $ 2,024 1.8 % $ 1,150 $ 790 $ 1,940 1.8 % Agriculture 170 123 293 0.3 % 190 119 309 0.4 % Educational services 2,946 737 3,683 3.3 % 3,055 649 3,704 3.5 % Energy 1,832 4,392 6,224 5.6 % 1,389 4,129 5,518 5.2 % Financial services 9,135 10,647 19,782 17.7 % 8,499 9,811 18,310 17.3 % Government and public sector 3,819 507 4,326 3.9 % 3,427 500 3,927 3.7 % Healthcare 3,507 2,851 6,358 5.7 % 3,077 2,664 5,741 5.4 % Information 1,736 1,280 3,016 2.7 % 1,857 1,275 3,132 3.0 % Manufacturing 5,507 4,969 10,476 9.4 % 4,897 5,328 10,225 9.7 % Professional, scientific and technical services 1,948 1,612 3,560 3.2 % 1,730 1,742 3,472 3.3 % Real estate (1) 9,261 9,758 19,019 17.1 % 8,883 9,393 18,276 17.3 % Religious, leisure, personal and non-profit services 1,845 1,045 2,890 2.6 % 1,703 1,068 2,771 2.6 % Restaurant, accommodation and lodging 1,232 364 1,596 1.4 % 1,235 351 1,586 1.5 % Retail trade 2,447 2,168 4,615 4.1 % 2,237 2,216 4,453 4.2 % Transportation and warehousing 3,544 2,046 5,590 5.0 % 3,497 1,813 5,310 5.0 % Utilities 2,591 3,952 6,543 5.9 % 2,290 3,800 6,090 5.8 % Wholesale goods 4,575 3,646 8,221 7.4 % 4,529 3,551 8,080 7.6 % Other (2) (59) 3,320 3,261 2.9 % 253 2,608 2,861 2.7 % Total commercial $ 57,235 $ 54,242 $ 111,477 100.0 % $ 53,898 $ 51,807 $ 105,705 100.0 % Investor real estate: Hotel $ 175 $ 5 $ 180 1.4 % $ 151 $ 8 $ 159 1.3 % Industrial 819 166 985 7.6 % 910 183 1,093 8.9 % Land 122 26 148 1.1 % 114 13 127 1.0 % Multi-family 4,637 1,263 5,900 45.8 % 4,103 1,435 5,538 45.3 % Office 889 14 903 7.0 % 1,008 29 1,037 8.5 % Retail 362 61 423 3.3 % 289 66 355 2.9 % Single-family/condo 625 432 1,057 8.2 % 617 506 1,123 9.2 % Data center 581 318 899 7.0 % 421 312 733 6.0 % Self storage 3 — 3 — % 41 3 44 0.4 % Medical office building 522 177 699 5.5 % 183 142 325 2.7 % Other (2) 1,234 447 1,681 13.1 % 1,269 413 1,682 13.8 % Total investor real estate $ 9,969 $ 2,909 $ 12,878 100.0 % $ 9,106 $ 3,110 $ 12,216 100.0 % _______ (1)"Real estate" includes REITs, which are unsecured commercial and industrial products that are real estate related. This portfolio is well diversified, generally has low leverage with strong access to liquidity, and the REITs included in this portfolio are primarily investment or near investment grade. (2)"Other" contains balances related to non-classifiable and invalid business industry codes offset by payments in process and fee accounts that are not available at the loan level. (3)As customers' businesses evolve (e.g. up or down the vertical manufacturing chain), Regions may need to change the assigned business industry code used to define the customer relationship. When these changes occur, Regions does not recast the customer history for prior periods into the new classification because the business industry code used in the prior period was deemed appropriate. As a result, year over year changes may be impacted. 54 Table of Contents The Company's total non-owner-occupied commercial real estate lending consists of both unsecured commercial and industrial loans that are real estate related (including REITs) and investor real estate loans and are considered to be well diversified across property types. The following tables provide detail of these loans: Table 5— Unsecured Commercial Real Estate and Investor Real Estate Exposure June 30, 2026 December 31, 2025 Loan Balance Percent of Total (1) Loan Balance Percent of Total (1) (In millions) Residential homebuilders $ 1,254 7.4 % $ 1,066 6.8 % Apartments 5,353 31.7 % 4,682 29.7 % Industrial 2,250 13.3 % 2,347 14.9 % Data center 679 4.0 % 502 3.2 % Diversified 1,328 7.9 % 1,831 11.6 % Business offices 858 5.1 % 1,020 6.4 % Residential land 79 0.5 % 70 0.4 % Retail 1,293 7.6 % 1,188 7.5 % Healthcare 1,391 8.2 % 1,086 6.9 % Hotel 786 4.6 % 737 4.7 % Commercial land 43 0.3 % 44 0.3 % Self Storage 303 1.8 % 310 2.0 % Medical office building 595 3.5 % 207 1.3 % Other 700 4.1 % 679 4.3 % Total (2) $ 16,912 100.0 % $ 15,769 100.0 % _______ (1)Amounts calculated based on whole dollar values. (2)Owner-occupied commercial real estate is not included as the principal source of repayment is individual businesses, which more closely aligns with the commercial portfolio credit performance. Portfolios that are experiencing higher risk due to conditions such as inflationary pressures, higher interest rates, and adverse underlying market fundamentals (identified as portfolios of interest) include business offices and trucking (included within transportation and warehousing) at June 30, 2026 within Table 4 above. While the business offices portfolio remains a portfolio of interest, credit quality is improving. The office portfolio totaled $858 million and represented 0.9 percent of total loans at June 30, 2026, declining from $1.0 billion and 1.1 percent of loans at December 31, 2025. The office portfolio included non-performing loans of $121 million and had associated charge-offs of $1 million in the six months ended June 30, 2026. Approximately 99 percent of the office portfolio was secured, with approximately 62 percent of secured balances located in the South region of the U.S, of which 87 percent were Class A properties. Approximately 60 percent of the office portfolio will mature in the next 12 months. Additionally, the IRE office portfolio had a weighted-average LTV of approximately 64 percent at June 30, 2026, based upon appraisal at origination or most recent received, and a stressed weighted-average LTV of approximately 84 percent as of April 7, 2026, based upon GreenStreet's Commercial Property Price Index. While the office portfolio remains stressed, well-located, highly amenitized properties are observing improvements to property fundamentals. No new loan originations are being contemplated in this portfolio. The trucking portfolio remains a portfolio of interest as trucking companies have been working through one of the most prolonged downturns in the U.S. domestic freight market. While the freight cycle has improved and spot-market fundamentals are strong, the industry remains vulnerable to economic uncertainty. The trucking portfolio totaled $1.1 billion and represented 1.1 percent of total loans at June 30, 2026, declining from $1.2 billion and 1.3 percent of loans at December 31, 2025. The trucking portfolio included non-performing loans of $45 million and had associated charge-offs of $29 million in the six months ended June 30, 2026. New originations in the sector have been curtailed and those that occur are either secured or targeted towards larger companies. Residential First Mortgage Residential first mortgage loans represent loans to consumers to finance a residence. These loans are typically financed over a 15 to 30 year term and, in most cases, are extended to borrowers to finance their primary residence. Total residential first mortgage loans decreased $267 million in comparison to year-end 2025 balances as payoffs and paydowns outpaced production. 55 Table of Contents Home Equity Lines Home equity lines are secured by a first or second mortgage on the borrower's residence and allow customers to borrow against the equity in their homes. Substantially all of this portfolio was originated through Regions' branch network. See the "Portfolio Characteristics" section in Regions' Annual Report on Form 10-K for the year ended December 31, 2025 for more information on home equity line draw and repayment structures. The following table presents information regarding the future principal payment reset dates for the Company's home equity lines of credit as of June 30, 2026. The balances presented are based on maturity date for lines with a balloon payment and draw period expiration date for lines that convert to a repayment period. Table 6—Home Equity Lines of Credit - Future Principal Payment Resets First Lien % of Total Second Lien % of Total Total (Dollars in millions) 2026 $ 47 1.46 % $ 51 1.55 % $ 98 2027 202 6.24 % 170 5.23 % 372 2028 201 6.21 % 132 4.05 % 333 2029 90 2.77 % 61 1.89 % 151 2030 90 2.76 % 67 2.09 % 157 2031-2035 583 18.00 % 1,170 36.09 % 1,753 2036-2040 116 3.58 % 145 4.48 % 261 Thereafter 10 0.30 % 8 0.27 % 18 Revolving Loans Converted to Amortizing 57 1.75 % 41 1.28 % 98 Total $ 1,396 43.07 % $ 1,845 56.93 % $ 3,241 Home Equity Loans Home equity loans are also secured by a first or second mortgage on the borrower's residence, are primarily originated as amortizing loans, and allow customers to borrow against the equity in their homes. Substantially all of this portfolio was originated through Regions’ branch network. Consumer Credit Quality Data The Company calculates an estimate of the current value of property secured as collateral for both residential first mortgage and home equity lending products (“current LTV”). The estimate is based on home price indices compiled by a third party that is updated typically every three months. The third party data indicates trends for MSAs. Regions uses the third party valuation trends from the MSAs in the Company's footprint in its estimate. The trend data is applied to the loan portfolios taking into account the age of the most recent valuation and geographic area. The following table presents current LTV data for components of the residential first mortgage, home equity lines and home equity loans classes of the consumer portfolio segment. Current LTV data for some loans in the portfolio is not available due to mergers and systems integrations. The amounts in the table represent the entire loan balance. For purposes of the table below, if the loan balance exceeds the current estimated collateral the entire balance is included in the “Above 100%” category, regardless of the amount of collateral available to partially offset the shortfall. Table 7—Estimated Current Loan to Value Ranges June 30, 2026 December 31, 2025 Residential First Mortgage Home Equity Lines of Credit Home Equity Loans Residential First Mortgage Home Equity Lines of Credit Home Equity Loans 1st Lien 2nd Lien 1st Lien 2nd Lien 1st Lien 2nd Lien 1st Lien 2nd Lien (In millions) (In millions) Estimated current LTV: Above 100% $ 89 $ — $ — $ 1 $ — $ 114 $ 2 $ 1 $ — $ 1 $ 1 Above 80% - 100% 1,932 3 10 10 18 1,985 3 2 11 10 17 80% and below 17,141 1,384 1,823 1,657 576 17,327 3 1,396 1,799 1,739 555 Data not available 336 9 12 2 (1) 339 3 11 12 1 — $ 19,498 $ 1,396 $ 1,845 $ 1,670 $ 593 $ 19,765 $ 1,410 $ 1,822 $ 1,751 $ 573 Consumer Credit Card Consumer credit card lending represents primarily open-ended variable interest rate consumer credit card loans. 56 Table of Contents Other Consumer Other consumer loans primarily include indirect and direct consumer loans, overdrafts and other revolving loans. Other consumer loans decreased $297 million from year-end 2025 driven by a decline in consumer home improvement lending. Regions considers factors such as periodic updates of FICO scores, accrual status, DPD status, unemployment rates, home prices, and geography as credit quality indicators for the consumer loan portfolio. FICO scores are obtained at origination and refreshed FICO scores are obtained by the Company quarterly for most consumer loans. For more information on credit quality indicators refer to Note 4 "Loans and the Allowance for Credit Losses". ALLOWANCE The allowance represents management's best estimate of expected losses over the life of the loan and credit commitment portfolios and consists of two components: the allowance for loan losses and the reserve for unfunded credit commitments. Unfunded credit commitments includes items such as letters of credit, financial guarantees and binding unfunded loan commitments. The allowance totaled $1.6 billion at June 30, 2026 and $1.7 billion at December 31, 2025. Regions' allowance estimation process utilizes loss forecasting models for pooled loans, specific reserves for significant individually evaluated non-performing loans, and qualitative adjustments for items not captured by the models including specific adjustments and general imprecision. Key inputs to Regions' loss forecasting models include, but are not limited to, loan risk ratings (commercial and investor real estate loans), maturity date, days past due and FICO scores (consumer loans), collateral values securing loans, and Regions' internally prepared baseline economic forecast. Changes in any of these factors, assumptions, or the availability of new information, could require the allowance to be adjusted in future periods, perhaps materially. Outputs from the loss forecasting models, in combination with Regions' qualitative framework and other analyses, inform management in its estimation of Regions' expected credit losses to ensure the overall allowance estimate is appropriate from both a bottom-up and top-down perspective. Current prevailing economic uncertainty and the potential for further disruption could influence future levels of the allowance. Actual losses could vary, perhaps materially, from management’s estimates. See Note 1 "Summary of Significant Accounting Policies" in the Annual Report on Form 10-K for the year ended December 31, 2025 for more information. Management reviews the allowance on a quarterly basis using updated information, including changes to economic conditions, the loan portfolio and credit information. The following table provides an analysis of the changes in the allowance for the three and six months ended June 30, 2026: Table 8—Allowance Analysis Three Months Ended June 30, 2026 Six Months Ended June 30, 2026 (In millions) Balance at beginning of period $ 1,647 $ 1,686 Economic/ Qualitative changes (12) 5 Specific reserve changes (40) (65) Portfolio changes 18 (13) Balance at end of period $ 1,613 $ 1,613 Table 9 below reflects a range of macroeconomic factors utilized in the baseline economic forecast over the two-year R&S forecast period as of June 30, 2026. The unemployment rate is the most significant macroeconomic factor among the allowance models and was expected to remain relatively consistent over the forecast period. Table 9—Macroeconomic Factors in the Forecast Pre-R&S Period Baseline R&S Forecast June 30, 2026 2Q2026 3Q2026 4Q2026 1Q2027 2Q2027 3Q2027 4Q2027 1Q2028 2Q2028 Unemployment rate 4.3 % 4.3 % 4.3 % 4.3 % 4.2 % 4.2 % 4.1 % 4.0 % 4.0 % Real GDP, annualized % change 1.9 % 1.8 % 2.4 % 2.7 % 2.7 % 2.6 % 2.3 % 2.3 % 2.2 % HPI, year-over-year % change — % (0.4) % (0.5) % — % 0.7 % 1.4 % 1.8 % 2.0 % 2.1 % CPI, year-over-year % change 3.9 % 3.7 % 3.7 % 3.4 % 2.3 % 2.3 % 2.2 % 2.2 % 2.3 % Economic forecast and qualitative adjustments Regions' internally-developed June 2026 baseline forecast, which was similar to the March 2026 baseline forecast, reflects slightly lower real GDP which is expected to grow 2.0 percent in 2026. While consumer spending was supported by tax legislation enacted in 2025, it is expected to be partially offset by higher prices. Corporate profit margins remain healthy and are supportive of growth in business investment, which is expected to support real GDP growth. Inflation as measured by CPI is expected to remain above the FOMC's 2.0 percent target rate into 2027. The longer the conflict in the Middle East persists, the 57 Table of Contents greater the risk that core inflation could increase. Labor markets have firmed slightly in 2026 and the current baseline forecast anticipates a moderate pace of job growth resulting in a modest decrease in the allowance for the three months ended June 30, 2026. While it is the intent of Regions' quantitative allowance methodologies to reflect all risk factors, including incremental risk in portfolios identified as under stress, any estimate involves assumptions and uncertainties resulting in some level of imprecision. Regions' qualitative framework has a general imprecision component which is meant to acknowledge that model and forecast errors are inherent in any modeling estimate. The general imprecision component remained stable for the three months ended June 30, 2026. The qualitative framework also has specific adjustment components which are reserves meant to capture specific issues or events that management believes are not adequately captured in the model outcomes. Specific qualitative adjustments declined in the three months ended June 30, 2026. Credit metrics, specific reserves and portfolio changes Overall credit metrics continued to improve through the three months ended June 30, 2026. The ratio of net charge-offs to average loans decreased 12 basis points in the three months ended June 30, 2026 compared to the first three months of 2026, reflecting continued progress on previously identified portfolios of interest for which specific reserves had already been established. Therefore, specific reserve releases due to charge-offs resulted in a decrease in the allowance. Commercial and investor real estate criticized balances as a percent of total related loans, and non-performing loan balances decreased in the three months ended June 30, 2026. See Table 10 for more details on net charge-offs, non-performing loans and criticized loans. The combination of credit quality improvements and specific reserve releases due to charge-offs resulted in a decrease in the allowance in the three months ended June 30, 2026. Regarding impacts to the allowance as a result of portfolio changes, high quality loan portfolio growth and other credit quality considerations resulted in an increase in the modeled allowance results for the three months ended June 30, 2026. Overall allowance Based upon the factors discussed above, the June 30, 2026 allowance decreased $34 million in the three months ended June 30, 2026. The allowance reduction resulted from overall credit quality improvement in the portfolio and continued progress resolving loans within previously identified portfolios of interest, partially offset by an increase for high quality loan growth. Furthermore, in the six months ended June 30, 2026, the allowance decreased $73 million driven primarily by overall credit quality improvement in the portfolio, including declines in criticized loans as a percent of loan balances and non-performing loan balances, and continued resolutions of loans within previously identified portfolios of interest. Details regarding the allowance and net charge-offs activity are summarized as follows: Table 10—Allowance Roll-forward Three Months Ended Six Months Ended June 30, 2026 March 31, 2026 December 31, 2025 June 30, 2026 June 30, 2025 (Dollars in millions) Beginning allowance for loan losses $ 1,527 $ 1,556 $ 1,581 $ 1,556 $ 1,613 Loans charged-off: Commercial and industrial 66 88 92 154 127 Commercial real estate mortgage—owner-occupied 1 — 1 1 2 Commercial investor real estate mortgage — — 4 — 24 Residential first mortgage 1 — — 1 1 Home equity lines 1 1 — 2 1 Home equity loans — — 1 — — Consumer credit card 18 18 17 36 34 Other consumer 36 44 52 80 89 123 151 167 274 278 58 Table of Contents Three Months Ended Six Months Ended June 30, 2026 March 31, 2026 December 31, 2025 June 30, 2026 June 30, 2025 (Dollars in millions) Recoveries of loans previously charged-off: Commercial and industrial 8 9 11 17 21 Commercial real estate mortgage—owner-occupied 1 — — 1 — Commercial real estate construction—owner-occupied — — — — 1 Commercial investor real estate mortgage — — 1 — — Residential first mortgage 1 — 1 1 1 Home equity lines 1 1 1 2 2 Home equity loans — — 1 — Consumer credit card 2 3 2 5 5 Other consumer 8 8 8 16 12 21 21 25 42 42 Net charge-offs (recoveries): Commercial and industrial 58 79 81 137 106 Commercial real estate mortgage—owner-occupied — — 1 — 2 Commercial real estate construction—owner-occupied — — — — (1) Commercial investor real estate mortgage — — 3 — 24 Residential first mortgage — — (1) — — Home equity lines — — (1) — (1) Consumer credit card 16 15 15 31 29 Other consumer 28 36 44 64 77 102 130 142 232 236 Provision for loan losses 64 101 117 165 235 Ending allowance for loan losses 1,489 1,527 1,556 1,489 1,612 Beginning reserve for unfunded credit commitments 120 130 132 130 116 Provision for (benefit from) unfunded credit losses 4 (10) (2) (6) 15 Ending reserve for unfunded credit commitments 124 120 130 124 131 Allowance for credit losses at period end $ 1,613 $ 1,647 $ 1,686 $ 1,613 $ 1,743 Loans, net of unearned income, outstanding at end of period $ 99,200 $ 97,926 $ 95,637 $ 99,200 $ 96,723 Average loans, net of unearned income, outstanding for the period $ 98,722 $ 96,423 $ 95,651 $ 97,579 $ 96,099 Net loan charge-offs (recoveries) as a % of average loans, annualized (1): Commercial and industrial 0.45 % 0.65 % 0.66 % 0.55 % 0.44 % Commercial real estate mortgage—owner-occupied 0.01 % (0.03) % 0.02 % (0.01) % 0.07 % Commercial real estate construction—owner-occupied 0.22 % (0.05) % (0.07) % 0.08 % (0.46) % Total commercial 0.41 % 0.58 % 0.60 % 0.49 % 0.40 % Commercial investor real estate mortgage — % 0.02 % 0.15 % 0.01 % 0.72 % Total investor real estate — % 0.02 % 0.12 % 0.01 % 0.54 % Residential first mortgage — % — % — % — % — % Home equity lines (0.04) % (0.01) % (0.10) % (0.02) % (0.05) % Home equity loans (0.03) % (0.02) % — % (0.02) % (0.01) % Consumer credit card 4.28 % 4.17 % 4.08 % 4.22 % 4.21 % Other consumer 2.09 % 2.51 % 2.97 % 2.30 % 2.59 % Total consumer 0.56 % 0.63 % 0.70 % 0.59 % 0.65 % Total 0.42 % 0.54 % 0.59 % 0.48 % 0.50 % Non-performing loans, excluding loans held for sale $ 668 $ 692 $ 698 $ 668 $ 776 Non-performing loans held for sale $ 1 $ 1 $ — $ 1 $ 16 Non-performing loans, including loans held for sale $ 669 $ 693 $ 698 $ 669 $ 792 Foreclosed properties $ 19 $ 20 $ 17 $ 19 $ 16 Non-performing assets (NPAs) $ 688 $ 713 $ 715 $ 688 $ 808 59 Table of Contents Three Months Ended Six Months Ended June 30, 2026 March 31, 2026 December 31, 2025 June 30, 2026 June 30, 2025 (Dollars in millions) Criticized loans—business (2) $ 3,370 $ 3,384 $ 3,342 $ 3,370 $ 4,608 Ratios (1): Allowance for credit losses at end of period to loans, net of unearned income 1.63 % 1.68 % 1.76 % 1.63 % 1.80 % Allowance for credit losses at end of period to non-performing loans, excluding loans held for sale 241 % 238 % 242 % 241 % 225 % Business criticized loans to total business loans (2) 5.01 % 5.15 % 5.31 % 5.01 % 7.22 % _______ (1)Amounts have been calculated using whole dollar values. (2)Business represents the combined total of commercial and investor real estate loans. Net charge-offs decreased $4 million for the six months ended June 30, 2026 compared to the same period in 2025. Economic and qualitative trends such as interest rates, unemployment, volatility in commodity prices, collateral valuations and inflationary pressure will impact the future levels of net charge-offs and may result in volatility of certain credit metrics for 2026 and beyond. The following table summarizes the allocation of the allowance by portfolio segment and class: Table 11—Allowance Allocation June 30, 2026 December 31, 2025 Loan Balance Allowance Allocation Allowance to Loans %(1) Loan Balance Allowance Allocation Allowance to Loans %(1) (Dollars in millions) (Dollars in millions) Commercial and industrial $ 51,841 $ 712 1.37 % $ 48,790 $ 743 1.52 % Commercial real estate mortgage—owner-occupied 5,127 109 2.12 % 4,845 101 2.09 % Commercial real estate construction—owner-occupied 267 7 2.54 % 263 6 2.29 % Total commercial 57,235 828 1.45 % 53,898 850 1.58 % Commercial investor real estate mortgage 7,896 96 1.22 % 7,172 107 1.49 % Commercial investor real estate construction 2,073 29 1.39 % 1,934 28 1.44 % Total investor real estate 9,969 125 1.25 % 9,106 135 1.48 % Residential first mortgage 19,498 120 0.61 % 19,765 112 0.57 % Home equity lines 3,241 109 3.37 % 3,232 100 3.09 % Home equity loans 2,263 30 1.31 % 2,324 30 1.27 % Consumer credit card 1,498 122 8.19 % 1,519 129 8.50 % Other consumer 5,496 279 5.08 % 5,793 330 5.70 % Total consumer 31,996 660 2.06 % 32,633 701 2.15 % Total $ 99,200 $ 1,613 1.63 % $ 95,637 $ 1,686 1.76 % _____ (1)Amounts have been calculated using whole dollar values. 60 Table of Contents NON-PERFORMING ASSETS The following table presents non-performing assets as of June 30, 2026 and December 31, 2025: Table 12—Non-Performing Assets June 30, 2026 December 31, 2025 (Dollars in millions) Non-performing loans: Commercial and industrial $ 412 $ 474 Commercial real estate mortgage—owner-occupied 61 45 Commercial real estate construction—owner-occupied 2 2 Total commercial 475 521 Commercial investor real estate mortgage 127 121 Total investor real estate 127 121 Residential first mortgage 33 25 Home equity lines 25 24 Home equity loans 8 7 Total consumer 66 56 Total non-performing loans, excluding loans held for sale 668 698 Non-performing loans held for sale 1 — Total non-performing loans(1) 669 698 Foreclosed properties 19 17 Total non-performing assets(1) $ 688 $ 715 Accruing loans 90+ days past due: Commercial and industrial $ 4 $ 6 Commercial real estate mortgage—owner-occupied 1 — Total commercial 5 6 Residential first mortgage(2) 91 105 Home equity lines 13 15 Home equity loans 8 8 Consumer credit card 21 22 Other consumer 20 24 Total consumer 153 174 Total accruing loans 90+ days past due $ 158 $ 180 Non-performing loans(1) to loans and non-performing loans held for sale 0.67 % 0.73 % Non-performing loans, excluding loans held for sale(1) to loans 0.67 % 0.73 % Non-performing assets(1) to loans, foreclosed properties and non-performing loans held for sale 0.69 % 0.75 % _________ (1)Excludes accruing loans 90+ days past due. (2)Excludes residential first mortgage loans that are 100% guaranteed by the FHA and all guaranteed loans sold to Ginnie Mae where Regions has the right but not the obligation to repurchase; however, includes Ginnie Mae repurchased loans with partial guarantees. Total 90+ days or more past due guaranteed loans excluded were $100 million at June 30, 2026 and $79 million at December 31, 2025. Non-performing loans, excluding loans held for sale, decreased $30 million at June 30, 2026 as compared to year-end 2025. The same economic trends that impact net charge-offs, as discussed above, will impact the future level of non-performing loans. Circumstances related to individually large credits could also result in volatility. 61 Table of Contents The following table provides an analysis of non-accrual loans (excluding loans held for sale) by portfolio segment: Table 13— Analysis of Non-Accrual Loans Non-Accrual Loans, Excluding Loans Held for Sale for the Six Months Ended June 30, 2026 June 30, 2025 Commercial Investor Real Estate Consumer(1) Total Commercial Investor Real Estate Consumer(1) Total (In millions) (In millions) Balance at beginning of period $ 521 $ 121 $ 56 $ 698 $ 450 $ 423 $ 55 $ 928 Additions 260 42 — 302 211 47 — 258 Net payments/other activity (142) (36) 11 (167) (80) (126) 1 (205) Return to accrual (7) — — (7) (9) — — (9) Charge-offs on non-accrual loans(2) (149) — — (149) (123) (24) — (147) Transfers to held for sale(3) (2) — (1) (3) (10) (17) — (27) Net loan sales (6) — — (6) (2) (20) — (22) Balance at end of period $ 475 $ 127 $ 66 $ 668 $ 437 $ 283 $ 56 $ 776 ________ (1)All net activity within the consumer portfolio segment other than sales and transfers to held for sale (including related charge-offs) is included as a single net number within the net payments/other activity line. (2)Includes charge-offs on loans on non-accrual status and charge-offs taken upon sale and transfer of non-accrual loans to held for sale. (3)Transfers to held for sale are shown net of charge-offs recorded upon transfer. GOODWILL Goodwill totaled $5.7 billion at both June 30, 2026 and December 31, 2025. Refer to Note 1 "Summary of Significant Accounting Policies" and Note 9 "Goodwill and Other Intangible Assets" to the consolidated financial statements included in the Annual Report on Form 10-K for the year ended December 31, 2025 for the methodologies and assumptions used in the goodwill impairment analysis. DEPOSITS Regions competes with other banking and financial services companies for a share of the deposit market. Regions’ ability to compete in the deposit market depends heavily on the pricing of its deposits and how effectively the Company meets customers’ needs. Regions employs various means to meet those needs and enhance competitiveness, such as providing a high level of customer service, competitive pricing and convenient branch locations for its customers. Regions also serves customers through providing centralized, high-quality banking services through the Company's digital channels and contact center. Deposits are Regions’ primary source of funds, providing funding for over 90 percent of average earning assets at both June 30, 2026 and December 31, 2025. The following table summarizes deposits by category and by segment: Table 14—Deposits by Category and by Segment June 30, 2026 December 31, 2025 (In millions) Non-interest-bearing deposits $ 40,538 $ 39,530 Interest-bearing checking 25,001 25,677 Savings 12,277 11,914 Money market—domestic 39,974 40,119 Time deposits 12,920 13,888 $ 130,710 $ 131,128 Consumer Bank segment $ 80,972 $ 80,193 Corporate Bank segment 39,952 40,449 Wealth Management segment 7,466 8,344 Other(1) 2,320 2,142 $ 130,710 $ 131,128 ____ (1) Other deposits represent non-customer balances primarily consisting of wholesale funding (for example, selected deposits and brokered time deposits). Other deposits include brokered deposits totaling $1.6 billion at June 30, 2026 and $1.3 billion at December 31, 2025. Total deposits at June 30, 2026 decreased approximately $418 million compared to year-end 2025 levels reflecting normal seasonal patterns associated with tax refunds and payments. The decline was driven by a decrease in interest-bearing checking, money market, and time deposits. Deliberate product management resulted in a shift from time deposits into other products. The mix of non-interest-bearing deposits was approximately 31 percent of total deposits at June 30, 2026, which remained stable in comparison to December 31, 2025. See the "Liquidity" and "Market Risk-Interest Rate Risk" sections for further discussion on liquidity and interest rates. 62 Table of Contents BORROWED FUNDS Short-Term Borrowings Short-term borrowings totaled $3.0 billion at June 30, 2026, consisting of federal funds purchased of $200 million and FHLB advances of $2.8 billion. At December 31, 2025, short-term borrowings totaled $750 million comprised entirely of FHLB advances. The levels of these borrowings can fluctuate depending on the Company's funding needs and the sources utilized. See the "Liquidity" section for further discussion and detail of Regions' borrowing capacity with the FHLB. Table 15—Long-Term Borrowings June 30, 2026 December 31, 2025 (In millions) Regions Financial Corporation (Parent): 1.80% senior notes due August 2028 $ 648 $ 648 5.722% senior notes due June 2030(1) 747 747 5.502% senior notes due September 2035(2) 995 995 7.375% subordinated notes due December 2037 299 299 Valuation adjustments on hedged long-term debt (52) (52) 2,637 2,637 Regions Bank: FHLB advances — 1,000 6.45% subordinated notes due June 2037 497 497 4.755% senior notes due July 2029(3) 1,495 — Other long-term debt 1 — Valuation adjustments on hedged long-term debt (2) — 1,991 1,497 Total consolidated $ 4,628 $ 4,134 ____ (1) On June 6, 2029, the Notes will bear floating rate interest equal to Compounded SOFR plus 1.49%. (2) On September 6, 2034, the Notes will bear floating rate interest equal to Compounded SOFR plus 2.06%. (3) On July 27, 2028, the Notes will bear floating rate interest equal to Compounded SOFR plus 0.807%. Long-term borrowings increased by approximately $494 million from year-end 2025 reflecting the issuance of senior notes partially offset by the repayment of FHLB advances. In the second quarter, Regions Bank issued $1.5 billion of 4.755% fixed rate to floating rate senior notes due July 2029. The notes will initially bear interest at 4.755% per annum and, commencing on July 27, 2028, in conjunction with the call date, the notes will bear interest at a floating rate per annum equal to Compounded SOFR plus 0.807%. Funding from the FHLB and Federal Reserve Bank is secured by pledged assets, primarily certain loan portfolios which are also subject to blanket lien arrangements with the FHLB and Federal Reserve Bank. As of June 30, 2026, Regions' blanket lien arrangements with these entities covered a total loan balance of approximately $95.9 billion and included loans from various loan portfolios. However, borrowing capacity with the FHLB and Federal Reserve Bank is contingent on a subset of the blanket lien portfolios which are eligible and pledged according to the parameters for each counterparty. REGULATORY REQUIREMENTS Regions and Regions Bank are required to comply with regulatory capital requirements established by Federal and State banking agencies. These regulatory capital requirements involve quantitative measures of the Company's assets, liabilities and selected off-balance sheet items, and also qualitative judgments by the regulators. Failure to meet minimum capital requirements can subject the Company to a series of increasingly restrictive regulatory actions. Under the Basel III Rules, Regions is designated as a standardized approach bank. Regions is a "Category IV" institution under the Federal Reserve's Tailoring Rules. Regions is subject to supervisory stress testing conducted by the Federal Reserve and its SCB is currently floored at 2.5 percent. See Note 6 "Shareholders' Equity and Accumulated Other Comprehensive Income (Loss)" to the consolidated financial statements for further details regarding CCAR results. 63 Table of Contents The following table summarizes the applicable holding company and bank regulatory requirements: Table 16—Regulatory Capital Requirements June 30, 2026 Ratio(1) December 31, 2025 Ratio Minimum Requirement Minimum Requirement plus SCB (2) To Be Well Capitalized Common equity Tier 1 capital: Regions Financial Corporation 10.72 % 10.89 % 4.50 % 7.00 % N/A Regions Bank 11.58 11.72 4.50 7.00 6.50 % Tier 1 capital: Regions Financial Corporation 11.79 % 11.99 % 6.00 % 8.50 % 6.00 % Regions Bank 11.58 11.72 6.00 8.50 8.00 Total capital: Regions Financial Corporation 13.66 % 13.89 % 8.00 % 10.50 % 10.00 % Regions Bank 13.22 13.37 8.00 10.50 10.00 Leverage capital: Regions Financial Corporation 9.65 % 9.68 % 4.00 % 4.00 % N/A Regions Bank 9.50 9.48 4.00 4.00 5.00 % ___ (1) The current quarter Basel III CET1 capital, Tier 1 capital, Total capital, and Leverage capital ratios are estimated. (2) Reflects Regions' SCB of 2.5 percent. SCB does not apply to leverage capital ratios. In the third quarter of 2023, proposals were issued by the U.S federal banking regulators that, if adopted, would impact the Company related to long-term debt requirements and U.S. implementation of capital requirements under Basel IV rules, more recently referred to as the Basel III Endgame. Following extensive feedback, the regulators issued a new capital requirements proposal on March 19, 2026. The updated proposal continues to include the addition of AOCI in CET1 and a recalibration for risk weights within the standardized calculation. Additionally, the Company now has the option to opt into the expanded risk based approach, which was previously required under the initial proposal. The Company continues to monitor developments around the new proposal and evaluate its potential impact. Additional discussion of the Basel III Rules, their applicability to Regions, recent proposals and final rules issued by the federal banking agencies and recent laws enacted that impact regulatory requirements is included in the "Supervision and Regulation" subsection of the "Business" section in Regions’ Annual Report on Form 10-K for the year ended December 31, 2025. RATINGS Table 17 "Credit Ratings" reflects the debt ratings information of Regions Financial Corporation and Regions Bank by S&P, Moody’s, Fitch and DBRS. Table 17—Credit Ratings As of June 30, 2026 S&P Moody’s Fitch DBRS Regions Financial Corporation Issuer Rating/Senior unsecured debt BBB+ Baa1 A- A Subordinated debt BBB Baa1 BBB+ N/A Regions Bank Short-term A-2 P-1 F1 R-1M Long-term bank deposits N/A A1 A+ AH Issuer Rating/Senior unsecured debt A- Baa1 A- AH Subordinated debt BBB+ Baa1 BBB+ A Outlook Stable Stable Stable Positive On May 12, 2026, Fitch upgraded the Company's long-term bank deposits rating from A to A+ and affirmed the short-term rating of F1 reflecting reduced probability of default for deposits due to depositor preference in the United States. See the "Ratings" section in Regions' Annual Report on Form 10-K for the year ended December 31, 2025 for more information on debt ratings. 64 Table of Contents SHAREHOLDERS' AND TOTAL EQUITY Shareholders’ equity was $18.8 billion at June 30, 2026 as compared to $19.0 billion at December 31, 2025. During the first six months of 2026, net income increased shareholders' equity by $1.1 billion, dividends on common stock reduced shareholders' equity by $453 million, and dividends on preferred stock reduced shareholders' equity by $41 million. Changes in OCI decreased shareholders' equity by $387 million during the six months ended June 30, 2026. See the Consolidated Statements of Other Comprehensive Income for additional details. Common stock repurchased during the first six months of 2026 decreased shareholders' equity by $460 million. These shares were immediately retired upon repurchase and therefore were not included in treasury stock. Total equity included noncontrolling interest of $71 million and $60 million at June 30, 2026 and December 31, 2025, respectively. The noncontrolling interest represents the unowned portion of a low income housing tax credit fund syndication, an unconsolidated VIE of which Regions held a significant interest at June 30, 2026 and December 31, 2025. Subsequent to June 30, 2026, the Company purchased approximately 1 million shares for $31 million through August 5, 2026. These shares were immediately retired upon repurchase and therefore were not included in treasury stock. See Note 6 "Shareholders' Equity and Accumulated Other Comprehensive Income (Loss)" section for additional information. 65 Table of Contents Table 18 "Consolidated Average Daily Balances and Yield/Rate Analysis" presents a detail of net interest income (on a taxable-equivalent basis), the net interest margin, and the net interest spread. Table 18—Consolidated Average Daily Balances and Yield/Rate Analysis Three Months Ended June 30 2026 2025 Average Balance Income/ Expense Yield/Rate (1) Average Balance Income/ Expense Yield/Rate (1) (Dollars in millions; yields on taxable-equivalent basis) Assets Earning assets: Federal funds sold and securities purchased under agreements to resell $ — $ — — % $ 1 $ — 4.44 % Debt securities (2)(3) 33,286 305 3.66 32,882 286 3.48 Loans held for sale 512 8 6.16 500 9 7.14 Loans, net of unearned income (4)(5) 98,722 1,365 5.50 96,077 1,389 5.75 Interest-bearing deposits in other banks 7,291 69 3.78 8,737 97 4.49 Other earning assets 1,526 15 4.06 1,466 15 3.96 Total earning assets 141,337 1,762 4.96 139,663 1,796 5.12 Unrealized gains/(losses) on securities available for sale, net (2) (769) (1,348) Allowance for loan losses (1,533) (1,643) Cash and due from banks 3,247 2,893 Other non-earning assets 18,955 18,409 $ 161,237 $ 157,974 Liabilities and Shareholders’ Equity Interest-bearing liabilities: Savings $ 12,355 4 0.12 $ 12,300 4 0.13 Interest-bearing checking 25,121 74 1.17 24,865 88 1.41 Money market 40,382 209 2.07 37,389 220 2.37 Time deposits 13,095 98 3.02 15,334 135 3.52 Total interest-bearing deposits (6) 90,953 385 1.69 89,888 447 1.99 Federal funds purchased and securities sold under agreements to repurchase 1,096 9 3.64 80 1 4.40 Other short-term borrowings 2,592 25 3.81 — — — Long-term borrowings 3,617 52 5.69 5,660 77 5.36 Total interest-bearing liabilities 98,258 471 1.92 95,628 525 2.20 Non-interest-bearing deposits (6) 39,738 — — 39,556 — — Total funding sources 137,996 471 1.37 135,184 525 1.55 Net interest spread (2) 3.04 2.92 Other liabilities 4,500 4,403 Shareholders’ equity 18,676 18,350 Noncontrolling interest 65 37 $ 161,237 $ 157,974 Net interest income /margin on a taxable-equivalent basis (7) $ 1,291 3.66 % $ 1,271 3.65 % _______ (1)Amounts have been calculated using whole dollar values and the prevailing interest accrual methodology. (2)Debt securities are included on an amortized cost basis with yield and net interest margin calculated accordingly. (3)Interest income on debt securities includes hedging income of $1 million and $6 million for the three months ended June 30, 2026 and 2025, respectively. (4)Loans, net of unearned income include non-accrual loans for all periods presented. (5)Interest income on loans, net of unearned income, includes hedging expense of $34 million and $60 million for the three months ended June 30, 2026, and 2025, respectively. Interest income on loans, net of unearned income, also includes net loan fees of $29 million and $32 million for the three months ended June 30, 2026 and 2025, respectively. (6)Total deposit costs may be calculated by dividing total interest expense on deposits by the sum of interest-bearing deposits and non-interest-bearing deposits and equaled 1.18% and 1.39% for the three months ended June 30, 2026 and 2025, respectively. (7)The computation of taxable-equivalent net interest income is based on the statutory federal income tax rate of 21%, adjusted for applicable state income taxes net of the related federal tax benefit. 66 Table of Contents Six Months Ended June 30 2026 2025 Average Balance Income/ Expense Yield/Rate(1) Average Balance Income/ Expense Yield/Rate(1) (Dollars in millions; yields on taxable-equivalent basis) Assets Earning assets: Federal funds sold and securities purchased under agreements to resell $ — $ — — % $ 1 $ — 4.44 % Debt securities (2)(3) 33,407 603 3.61 32,583 552 3.39 Loans held for sale 546 16 5.80 471 17 7.20 Loans, net of unearned income (4)(5) 97,579 2,691 5.50 96,099 2,743 5.69 Interest-bearing deposits in other banks 7,353 138 3.79 8,637 191 4.47 Other earning assets 1,503 29 3.89 1,475 30 4.07 Total earning assets 140,388 3,477 4.95 139,266 3,533 5.07 Unrealized gains/(losses) on securities available for sale, net (2) (675) (1,531) Allowance for loan losses (1,542) (1,634) Cash and due from banks 3,261 2,925 Other non-earning assets 18,836 18,402 $ 160,268 $ 157,428 Liabilities and Shareholders’ Equity Interest-bearing liabilities: Savings $ 12,216 8 0.13 $ 12,239 8 0.13 Interest-bearing checking 25,183 145 1.16 24,949 177 1.43 Money market 40,374 416 2.08 36,512 424 2.35 Time deposits 13,241 201 3.07 15,565 280 3.63 Total interest-bearing deposits (6) 91,014 770 1.70 89,265 889 2.01 Federal funds purchased and securities sold under agreements to repurchase 877 16 3.65 60 1 4.40 Other short-term borrowings 1,839 35 3.81 168 4 4.59 Long-term borrowings 3,683 104 5.62 5,830 162 5.51 Total interest-bearing liabilities 97,413 925 1.91 95,323 1,056 2.23 Non-interest-bearing deposits(6) 39,450 — — 39,305 — — Total funding sources 136,863 925 1.36 134,628 1,056 1.58 Net interest spread (2) 3.04 2.83 Other liabilities 4,468 4,526 Shareholders’ equity 18,875 18,240 Noncontrolling interest 62 34 $ 160,268 $ 157,428 Net interest income/margin on a taxable-equivalent basis (7) $ 2,552 3.67 % $ 2,477 3.59 % _______ (1)Amounts have been calculated using whole dollar values and the prevailing interest accrual methodology. (2)Debt securities are included on an amortized cost basis with yield and net interest margin calculated accordingly. (3)Interest income on debt securities includes hedging income of $2 million and $8 million for the six months ended June 30, 2026 and 2025, respectively. (4)Loans, net of unearned income include non-accrual loans for all periods presented. (5)Interest income on loans, net of unearned income, includes hedging expense of $70 million and $127 million for the six months ended June 30, 2026, and 2025, respectively. Interest income on loans, net of unearned income, also includes net loan fees of $57 million and $61 million for the six months ended June 30, 2026 and 2025, respectively. (6)Total deposit costs may be calculated by dividing total interest expense on deposits by the sum of interest-bearing deposits and non-interest-bearing deposits and equaled 1.19% and 1.39% for the six months ended June 30, 2026 and 2025, respectively. (7)The computation of taxable-equivalent net interest income is based on the statutory federal income tax rate of 21%, adjusted for applicable state income taxes net of the related federal tax benefit. Net interest income is Regions’ principal source of income and is one of the most important elements of Regions’ ability to meet its overall performance goals. Both net interest income and net interest margin are influenced by both long-term and short-term market interest rates. Net interest income (taxable-equivalent basis) and net interest margin increased in both the three and six months ended June 30, 2026 compared to the same periods in 2025 due primarily to lower funding costs, which includes deposits and wholesale borrowings. Funding costs declined 18 basis points and 22 basis points in three and six months ended June 30, 2026, respectively, driven by a decline in deposit costs through prudent cost management in a lower rate environment. Deposit balance remixing, with certain time deposits maturing and being replaced with lower cost product types, also created a more optimal funding mix. Additionally, loan yields only decreased modestly in the lower rate environment, reflecting the rate 67 Table of Contents protection provided by the Company’s hedging program. Turnover of fixed-rate loans and securities, combined with debt securities repositioning transactions in prior periods as well as during the second quarter of 2026, resulted in new loans and securities at higher rates that benefitted net interest income and net interest margin. MARKET RISK—INTEREST RATE RISK Regions’ primary market risk is interest rate risk. This includes uncertainty with respect to absolute interest rate levels as well as relative interest rate levels, which are impacted by both the shape and the slope of the various yield curves that affect the financial products and services that the Company offers. As its primary tool to analyze this risk, Regions measures the change in its net interest income in various interest rate scenarios compared to a base case scenario. Net interest income sensitivity to market rate movements is a useful short-term indicator of Regions’ interest rate risk. In addition to net interest income simulations, Regions also utilizes an EVE analysis as a measurement tool to estimate risk exposure over a longer-term horizon. EVE measures the extent to which the economic value of assets, liabilities and derivative instruments may change in response to fluctuations in interest rates. Importantly, EVE values only the current balance sheet, excluding the growth assumptions used in net interest income sensitivity analyses. Additionally, the results are highly dependent on assumptions for products with embedded prepay optionality and indeterminate maturities. The uncertainty surrounding important assumptions used in EVE analysis may limit its efficacy. Sensitivity Measurement—Financial simulation models are Regions’ primary tools used to measure interest rate exposure. Using a wide range of sophisticated simulation techniques provides management with extensive information on the potential impact to net interest income caused by changes in interest rates. Models are structured to simulate cash flows and accrual characteristics of Regions’ balance sheet. Assumptions are made about the direction and magnitude of interest rate movements, the slope of the yield curve, and the changing composition of the balance sheet that results from both strategic plans and customer behavior. Among the assumptions are expectations of balance sheet growth and composition, the pricing and maturity characteristics of existing business and the characteristics of future business. Interest rate-related risks are expressly considered, such as pricing spreads, the pricing of deposit accounts, prepayments and other option risks. Regions considers these factors, as well as the degree of certainty or uncertainty surrounding their future behavior. The primary objective of asset/liability management at Regions is to coordinate balance sheet composition with interest rate risk management to sustain reasonable and stable net interest income throughout various interest rate cycles. In computing interest rate sensitivity, Regions compares a set of alternative interest rate scenarios to the results of a base case scenario derived using “market forward rates.” The set of alternative interest rate scenarios includes instantaneous parallel rate shifts of various magnitudes. In addition to parallel rate shifts, multiple curve steepening and flattening scenarios are contemplated. Regions includes simulations of gradual interest rate movements phased in over a six-month period that may more realistically mimic the speed of potential interest rate changes. Exposure to Interest Rate Movements—Regions' balance sheet is naturally asset sensitive, with net interest income increasing with higher interest rates, and decreasing with lower interest rates. This is the result of approximately half of the loan portfolio floating contractually with market rate indices, and funding from a large, mostly stable retail deposit portfolio. Importantly, the stability and rate sensitivity of Regions' deposit portfolio has been proven over multiple interest rate cycles. With this natural balance sheet profile, the ability to utilize discretionary asset duration strategies within the investment portfolio and through derivatives is critical in mitigating the Bank’s natural exposure to rates. As of June 30, 2026, Regions evidenced a mostly balanced, or "neutral" asset/liability position, with asset duration of approximately 2.6 years and liability duration of approximately 2.7 years, using historically-informed approximations. Typically when the debt securities portfolio is recorded on the balance sheet at an unrealized loss, higher deposit values more than offset this loss. The additional value of deposits is realized in the form of lower-cost funding when compared with wholesale sources. While balance sheet analysis, particularly EVE analysis, does contemplate the economic value of deposits, the estimated fair value of deposits is equal to their carrying value for certain financial statement footnote disclosures, consistent with industry practices. See Note 10 "Fair Value Measurements" to the consolidated financial statements for additional information. Pay-fixed fair value hedges and debt securities transfers from available for sale to held to maturity classification have been used to reduce AOCI volatility associated with unrealized securities gains and losses. Inclusive of these activities, the total debt securities portfolio duration is 3.9 years, the available for sale securities portfolio duration is 3.5 years, and the held to maturity securities portfolio duration is 5.9 years. As pay-fixed fair value hedges are further utilized to manage AOCI volatility, receive-fixed cash flow hedges may be entered into as an offset to preserve the interest rate sensitivity of Regions' entire balance sheet. As of June 30, 2026, Regions' net interest income profile was mostly neutral to both gradual and instantaneous parallel yield curve shifts as compared to the base case for the 12-month measurement horizon ending June 2027. The estimated exposure associated with the rising and falling rate scenarios in Table 19 below reflects the combined impacts of movements in short-term and long-term interest rates. An increase or reduction in short-term interest rates (such as the Federal Funds rate, the interest rate on reserve balances, and SOFR) will drive the yield on assets and liabilities contractually tied to such rates higher 68 Table of Contents or lower. In either scenario, it is expected that changes in funding costs and balance sheet hedging income will offset the change in asset yields, resulting in little change to net interest income. Net interest income remains exposed to intermediate and long-term yield curve tenors, though exposure has been partially reduced by receive-fixed swaps designed to hedge a portion of the company’s 2026 fixed-rate asset turnover. In the current higher interest rate environment, fixed-rate asset turnover represents a tailwind to net interest income growth. Elevated, or increasing intermediate and long-term interest rates (such as intermediate to longer-term U.S. Treasuries, swaps and mortgage rates) will drive yields higher on certain fixed-rate, newly originated or renewed loans, and increase prospective yields on certain investment portfolio purchases. The opposite is true in an environment where intermediate and long-term interest rates fall. Additionally, shifts in the long end of the yield curve will impact securities prepayments and alter the amount of discount accretion and premium amortization in any given period. The interest rate sensitivity analysis presented below in Table 19 is informed by a variety of assumptions and estimates regarding the progression of the balance sheet in both the baseline scenario as well as the scenarios of instantaneous and gradual shifts in the yield curve. Though there are many assumptions which affect the estimates for net interest income, those pertaining to deposit pricing, deposit mix and overall balance sheet composition are particularly impactful. Given the uncertainties associated with monetary policy on industry liquidity levels and the cost of that liquidity, management evaluates the impacts from these key assumptions through sensitivity analysis. Sensitivity calculations are hypothetical and should not be considered predictive of future results. The Company’s baseline balance sheet assumptions include management's best estimate for balance sheet changes in the coming 12 months. A reduction in deposit balances of $1 billion when compared to the base case estimate would reduce net interest income by $18 million over 12 months in the parallel, instantaneous +100 basis point scenario in Table 19. Conversely, if an additional $1 billion are added, a positive benefit of $18 million would be expected over 12 months in the parallel, instantaneous +100 basis point scenario in Table 19. In rising rate scenarios only, management assumes that the mix of deposits will change versus the base case as informed by analyses of prior rate cycles. Currently, however, much of the anticipated mix shift has already occurred or is expected to occur within the baseline scenario, mitigating the amount of additional remixing in higher rate scenarios. The magnitude of the remixing is rate dependent and equates to an approximate $1.2 billion shift from non-interest-bearing deposits into time deposits over 12 months in the parallel, instantaneous +100 basis point scenario in Table 19. Furthermore, over the 12 month horizon, an increase of $1 billion in deposit remixing would decrease net interest income by approximately $23 million, and a decrease of $1 billion in deposit remixing would increase net interest income by $23 million in the parallel, instantaneous +100 basis point scenario. The interest-bearing deposit beta is calibrated using the experience from prior rate cycles and is dynamic across both interest rate level and time. The parallel, instantaneous +100 basis point and -100 basis point shock scenarios in Table 19 both incorporate an incremental beta between 35 and 40 percent when compared to the base case scenario. Incremental deposit pricing outperformance or underperformance of 5 percent in a parallel, instantaneous 100 basis point shock would increase or decrease net interest income by approximately $46 million. The table below summarizes Regions' positioning over the next 12 months in various parallel yield curve shifts (i.e., all yield curve tenors move by the same magnitude). The scenarios are inclusive of all interest rate hedging activities. More information regarding hedges is disclosed in Table 20 and its accompanying description. 69 Table of Contents Table 19—Interest Rate Sensitivity Estimated Annual Changein Net Interest IncomeJune 30, 2026(1)(2) (In millions) Gradual Change in Interest Rates + 200 basis points $ 116 + 100 basis points 62 - 100 basis points (60) - 200 basis points (107) Instantaneous Change in Interest Rates + 200 basis points $ 56 + 100 basis points 37 - 100 basis points (53) - 200 basis points (76) ________ (1)Disclosed interest rate sensitivity levels represent the 12-month forward looking net interest income changes as compared to market forward rate cases and include expected balance sheet growth and remixing. (2)Active hedges, including forward starting hedges, are included in the sensitivity analysis to the extent that they fall within the measurement horizon. While not depicted in the table above, interest rate movements may also have an impact on the value of Regions’ securities portfolio, which can directly impact the carrying value of shareholders’ equity. Derivatives—Regions uses financial derivative instruments for management of interest rate sensitivity and AOCI volatility management. ALCO, which consists of members of Regions’ senior management team, in its oversight role for the management of interest rate sensitivity, approves the use of derivatives in balance sheet hedging strategies. Derivatives are also used to offset the risks associated with customer derivatives, which include interest rate, credit, and foreign exchange risks. The most common derivatives Regions employs are forward rate contracts, forward sale commitments, futures contracts, interest rate swaps, interest rate options (caps, floors and collars), and contracts with a combination of these instruments. Forward rate contracts are commitments to buy or sell financial instruments at a future date at a specified price or yield. Futures contracts subject Regions to market risk associated with changes in interest rates. Because futures contracts are cash settled daily, there is minimal credit risk associated with futures. Interest rate swaps are contractual agreements typically entered into to exchange fixed for variable (or vice versa) streams of interest payments. The notional principal is not exchanged but is used as a reference for the size of interest settlements. Interest rate options are contracts that allow the buyer to purchase or sell a financial instrument at a predetermined price and time. Forward sale commitments are contractual obligations to sell market instruments at a future date for an already agreed-upon price. Foreign currency contracts involve the exchange of one currency for another on a specified date and at a specified rate. These contracts are executed on behalf of the Company's customers and are used by customers to manage fluctuations in foreign exchange rates. The Company is subject to the credit risk that another party will fail to perform. Regions has made use of interest rate swaps and options in balance sheet hedging strategies to effectively convert a portion of its fixed-rate funding position to a variable-rate position, to effectively convert a portion of its fixed-rate debt securities available for sale portfolio to a variable-rate position, and to effectively convert a portion of its floating-rate loan portfolios to fixed-rate. Regions also uses derivatives to economically manage interest rate and pricing risk associated with its mortgage origination business. In the period of time that elapses between the origination and sale of mortgage loans, changes in interest rates have the potential to cause a decline in the value of the loans in this held-for-sale portfolio. Futures contracts and forward sale commitments are used to protect the value of the loan pipeline and loans held for sale from changes in interest rates and pricing. 70 Table of Contents The following table presents additional information about hedging interest rate derivatives used by Regions to manage interest rate risk: Table 20—Hedging Derivatives by Interest Rate Risk Management Strategy June 30, 2026 Notional Amount Weighted-Average Maturity (Years) Receive Rate Pay Rate (Dollars in millions) Derivatives in cash flow hedging relationships: Receive fixed/pay variable swaps - floating-rate loans(1)(2)(3) $ 39,298 3.4 3.3 % 3.7 % Interest rate options(4) 3,000 2.7 Derivatives in fair value hedging relationships: Receive variable/pay fixed swaps - debt securities available for sale(1)(2)(3) 6,262 6.6 3.7 % 3.7 % Receive fixed/pay variable swaps - borrowings(3) 3,900 3.8 3.3 % 3.7 % Total derivatives designated as hedging instruments $ 52,460 _________ (1)Floating rates represent the most recent fixing for active derivatives and the first forward fixing for future starting derivatives. (2)Includes forward starting notional with maturity relative to current quarter-end. For more information on notional by year, see Table 21. (3)All floating rates are SOFR based and may include SOFR conversion spread. (4)Interest rate options have an average cap strike of 5.73% and a floor of 2.34%. In the three months ended June 30, 2026, the Company added $1.5 billion in forward-starting receive-fixed swaps with a receive rate of 3.7 percent, a weighted-average start date in 2028, and a weighted-average maturity date in 2031, to hedge short-term rates in future periods. Additionally, the Company added $1.0 billion in interest rate options with a weighted-average cap rate of 4.8 percent, a weighted-average floor rate of 3.3 percent, a weighted-average start date in 2028, and a weighted-average maturity date in 2030, to hedge short-term rates in future periods. In the three months ended June 30, 2026, the Company also added $250 million in forward-starting receive-fixed swaps with a receive rate of 3.8 percent, a start date in the fourth quarter of 2026, and a 5-year maturity, to partially hedge 2026 expected fixed-rate asset turnover. Additionally, the Company terminated $1.5 billion of fixed-rate loan turnover hedges, consistent with the timing of the fixed-rate loan production the swaps were intended to hedge. The following table presents the average asset hedge notional amounts that are active during each of the remaining quarterly and annual periods: Table 21—Schedule of Notional for Asset Hedging Derivatives Average Active Notional Amount (1) Three Months Ended Year Ended 6/30/2026 9/30/2026 12/31/2026 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 (In millions) Asset Hedging Relationships: Receive fixed/pay variable swaps $ 23,525 $ 23,288 $ 23,434 $ 23,260 $ 23,228 $ 21,868 $ 18,704 $ 17,525 $ 11,670 $ 4,495 $ 1,031 $ 847 $ 397 Receive variable/pay fixed swaps 4,190 4,165 4,166 4,224 4,188 4,250 4,375 4,949 5,142 3,565 2,035 1,432 484 Net receive fixed/pay variable swaps $ 19,335 $ 19,123 $ 19,268 $ 19,036 $ 19,040 $ 17,618 $ 14,329 $ 12,576 $ 6,528 $ 930 $ (1,004) $ (585) $ (87) Interest rate options $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 1,745 $ 1,001 $ 254 $ 250 $ 1 $ — $ — $ — _________ (1)Active hedges, including forward-starting hedges, are included in the sensitivity levels disclosed in Table 19 to the extent that they fall within the measurement horizon. Regions manages the credit risk of these instruments in much the same way as it manages credit risk of the loan portfolios by establishing credit limits for each counterparty and through collateral agreements for dealer transactions. For non-dealer transactions, the need for collateral is evaluated on an individual transaction basis and is primarily dependent on the financial strength of the counterparty. Credit risk is also reduced significantly by entering into legally enforceable master netting agreements. When there is more than one transaction with a counterparty and there is a legally enforceable master netting agreement in place, the exposure represents the net of the gain and loss positions with and collateral received from and/or posted to that counterparty. Most hedging interest rate swap derivatives traded by Regions are subject to mandatory clearing. The counterparty risk for cleared trades effectively moves from the executing broker to the clearinghouse allowing Regions to 71 Table of Contents benefit from the risk mitigation controls in place at the respective clearinghouse. See the “Credit Risk” section in the 2025 Annual Report on Form 10-K for more information on the management of credit risk. Regions also uses derivatives to meet the needs of its customers. Interest rate swaps, interest rate options and foreign exchange forwards are the most common derivatives sold to customers. Other derivative instruments with similar characteristics are used to hedge market risk and minimize volatility associated with this portfolio. Instruments used to service customers are held in the trading account, with changes in value recorded in the consolidated statements of income. The primary objective of Regions’ hedging strategies is to mitigate the impact of interest rate changes, from an economic perspective, on net interest income and other financing income and the net present value of its balance sheet. The overall effectiveness of these hedging strategies is subject to market conditions, the quality of Regions’ execution, the accuracy of its valuation assumptions, counterparty credit risk and changes in interest rates. See Note 9 "Derivative Financial Instruments and Hedging Activities" to the consolidated financial statements for a tabular summary of Regions’ year-end derivatives positions and further discussion. Regions accounts for residential MSRs at fair market value with any changes to fair value being recorded within mortgage income. Regions also accounts for non-DUS agency commercial MSRs at fair market value with changes to fair value recorded within capital markets income. Regions enters into derivative transactions to economically mitigate the impact of market value fluctuations related to MSRs at fair market value. Derivative instruments entered into in the future could be materially different from the current risk profile of Regions’ current portfolio. LIQUIDITY Regions’ goal in liquidity management is to maintain diverse liquidity sources and reserves sufficient to satisfy the cash flow requirements of depositors and borrowers, under normal and stressed conditions. See also Note 12 "Commitments, Contingencies and Guarantees" to the consolidated financial statements for additional discussion of the Company’s funding requirements. Accordingly, Regions maintains a variety of liquidity sources to fund its obligations. Cash reserves, liquid assets and secured borrowing capabilities aid in the management of liquidity in normal and stressed conditions, and/or meeting the need of contingent events such as obligations related to potential litigation. See the "Liquidity" section in Regions' Annual Report on Form 10-K for the year ended December 31, 2025 for additional details, including operational readiness, related to funding sources. The following table summarizes the Company's available sources of liquidity as of June 30, 2026: Table 22—Liquidity Sources Availability as of June 30, 2026 (Dollars in billions) Cash at the Federal Reserve Bank(1) $ 6.4 Unencumbered investment securities(2) 26.3 FHLB borrowing availability 9.8 Federal Reserve Bank borrowing availability through the discount window 25.9 Total liquidity sources $ 68.4 ____ (1) Includes small in transit items that may not yet be reflected in the Federal Reserve Bank master account closing balance. (2) Unencumbered investment securities comprise securities that are eligible as collateral for secured transactions through market channels or are eligible to be pledged to the FHLB, the Federal Reserve discount window, or the Standing Repo Facility. The balance with the Federal Reserve Bank is the primary component of the balance sheet line item “interest-bearing deposits in other banks.” At June 30, 2026, Regions had approximately $6.4 billion in cash on deposit with the Federal Reserve Bank and other depository institutions. Refer to the "Cash and Cash Equivalents" section for more information. The securities portfolio also serves as a primary source and storehouse of liquidity. Proceeds from maturities and principal and interest payments of securities provide a continual flow of funds available for cash needs (see Note 3 "Debt Securities" to the consolidated financial statements). Furthermore, the highly liquid nature of the available for sale securities portfolio (for example, the agency guaranteed MBS portfolio) can be readily used as a source of cash through various secured borrowing arrangements. Regions' securities portfolio consists of residential and commercial agency MBS, U.S. Treasury securities, federal agency securities, and corporate and other debt. In evaluating the liquidity within the securities portfolio, unencumbered investment securities are primarily comprised of U.S Treasury securities and residential and commercial agency MBS. Unencumbered investment securities also includes certain corporate bonds considered to be highly liquid and other securities. Regions’ financing arrangement with the FHLB adds additional flexibility in managing the Company's liquidity position. As of June 30, 2026, Regions had $2.8 billion in short-term FHLB borrowings as discussed in the "Borrowed Funds" section. Regions had borrowing capacity from the FHLB as shown in Table 22. FHLB borrowing capacity was determined based on eligible securities and loan amounts, as of June 30, 2026, that were pledged as collateral for future borrowing capacity. 72 Table of Contents Additionally, investment in FHLB stock is required in relation to the level of outstanding borrowings. The FHLB has been and is expected to continue to be a reliable and economical source of funding. Regions has additional borrowing availability with the Federal Reserve Bank through the discount window as shown in Table 22. Federal Reserve Bank borrowing capacity is determined based on eligible loan amounts that were pledged as collateral for future borrowing capacity. Also through the Federal Reserve Bank, Regions is an eligible Standing Repo Facility counterparty, which supplements Regions' available channels for monetizing unencumbered securities. Regions maintains a shelf registration statement with the SEC that can be utilized by Regions to issue various debt and/or equity securities. Additionally, Regions' Board has authorized Regions Bank to issue up to $10 billion in aggregate principal amount of bank notes outstanding at any one time. Refer to Note 11 "Borrowed Funds" in the Annual Report on Form 10-K for the year ended 2025 for additional information. Regions may, from time to time, consider opportunistically retiring outstanding issued securities, including subordinated debt in privately negotiated or open market transactions for cash or common shares. Regulatory approval would be required for retirement of some instruments. See Note 6 "Shareholders' Equity and Accumulated Other Comprehensive Income (Loss)" to the consolidated financial statements for additional information. Regions' maintains a liquidity management framework which establishes sustainable processes and tools to effectively identify, measure, mitigate, monitor, and report liquidity risks beginning with Regions’ Liquidity Management Policy and the Liquidity Risk Appetite Statements approved by the Board. Processes within the liquidity management framework include, but are not limited to, liquidity risk governance, cash management, liquidity stress testing, liquidity risk limits, contingency funding plans, and collateral management. While the framework is designed to comply with liquidity regulations, the processes are further tailored to be commensurate with Regions’ operating model and risk profile. The Company's liquidity policy requires the holding company to maintain cash sufficient to cover the greater of (1) 18 months of debt service and other cash needs or (2) a minimum cash balance of $500 million. Cash and cash equivalents at the holding company exceeded minimums and totaled $907 million at June 30, 2026. Overall liquidity risk limits are established by the Board through its Risk Appetite Statement and Liquidity Policy. The Company's Board, LROC and ALCO regularly review compliance with the established limits. Also, see the “Supervision and Regulation—Liquidity Requirements” subsection of the “Business” section and the "Risk Factors" section in the 2025 Annual Report on Form 10-K for additional information. INFORMATION SECURITY RISK Refer to Part 1 Item 1C. Cybersecurity in the Annual Report on Form 10-K for the year ended December 31, 2025 for further discussion of Regions' risk identification and assessment, risk management and governance of information security risk. PROVISION FOR CREDIT LOSSES The provision for credit losses is used to maintain the allowance for loan losses and the reserve for unfunded credit losses at a level that management determines is appropriate to absorb expected credit losses over the contractual life of the loan and credit commitment portfolio at the balance sheet date. In the three and six months ended June 30, 2026, net charge-offs exceeded provision by $34 million and $73 million, respectively. In the three and six months ended June 30, 2025, provision exceeded net charge-offs by $13 million and $14 million, respectively. Refer to the "Allowance" section for further detail. NON-INTEREST INCOME Table 23—Non-Interest Income Three Months Ended June 30 Quarter-to-Date Change 6/30/2026 vs. 6/30/2025 2026 2025 Amount Percent (Dollars in millions) Service charges on deposit accounts $ 167 $ 151 $ 16 10.6 % Card and ATM fees 126 125 1 0.8 % Investment management and trust fee income 97 90 7 7.8 % Capital markets income 84 83 1 1.2 % Mortgage income 33 48 (15) (31.3) % Investment services fee income 53 43 10 23.3 % Commercial credit fee income 28 29 (1) (3.4) % BOLI income 24 24 — — % Market value adjustments on employee benefit assets 24 16 8 50.0 % Securities gains (losses), net (41) (1) (40) NM Other miscellaneous income 35 38 (3) (7.9) % $ 630 $ 646 $ (16) (2.5) % 73 Table of Contents Six Months Ended June 30 Year-to-Date Change 6/30/2026 vs. 6/30/2025 2026 2025 Amount Percent (Dollars in millions) Service charges on deposit accounts $ 330 $ 312 $ 18 5.8 % Card and ATM fees 243 242 1 0.4 % Investment management and trust fee income 189 176 13 7.4 % Capital markets income 168 163 5 3.1 % Mortgage income 65 88 (23) (26.1) % Investment services fee income 102 86 16 18.6 % Commercial credit fee income 58 56 2 3.6 % BOLI income 54 47 7 14.9 % Market valuation adjustments on employee benefit assets 19 13 6 46.2 % Securities gains (losses), net (44) (26) (18) (69.2) % Other miscellaneous income 71 79 (8) (10.1) % $ 1,255 $ 1,236 $ 19 1.5 % _________ NM - Not Meaningful Service Charges on Deposit Accounts Service charges on deposit accounts include overdraft fees, treasury management fees and other customer transaction-related service charges. Service charges on deposit accounts increased in the three and six months ended June 30, 2026 compared to the same periods in 2025 driven by an increase in fees from treasury management services and overdraft fees. The Company continues to monitor and evaluate the potential impact of proposals to lower the maximum interchange fee that a large debit card issuer can receive for a debit card transaction, which remain subject to ongoing litigation. Mortgage Income Mortgage income is generated through the origination and servicing of residential mortgage loans for long-term investors and sales of residential mortgage loans in the secondary market. The decreases in mortgage income for the three and six months ended June 30, 2026 compared to the same periods in 2025 were due primarily to unfavorable valuation and net hedge performance related to mortgage servicing rights. For the six months ended June 30, 2026, higher gains on sales of mortgages partially offset that decrease. Investment Services Fee Income Investment services fee income represents income earned from investment advisory services. Investment services fee income increased in the three and six months ended June 30, 2026 compared to the same periods in 2025 due primarily to improved advisor production, resulting in new accounts, asset inflows, and increases in advisory fees. BOLI Income BOLI income primarily represents income earned from the appreciation of the cash surrender value of insurance contracts held and the proceeds of insurance benefits. BOLI income increased during the six months ended June 30, 2026 compared to the same period in 2025 driven primarily by increased insurance claim income. Market Value Adjustments on Employee Benefit Assets Market value adjustments on employee benefit assets are the reflection of market value variations related to assets held for certain employee benefits. The adjustments are offset in salaries and benefits and other non-interest expense. Securities Gains (Losses), Net Net securities gains (losses) primarily result from the Company's asset/liability and capital management processes. In both 2026 and 2025, the Company executed debt securities repositionings, selling debt securities and reinvesting the proceeds at higher current market yields. See Table 1 "Debt Securities" for more information on securities repositioning executed during 2026 and Table 5 "Debt Securities" in Regions' Annual Report on Form 10-K for the year ended December 31, 2025 for more information on securities repositionings executed in 2025. Other Miscellaneous Income Other miscellaneous income includes net revenue from affordable housing, income from SBIC investments, valuation adjustments to equity investments, commercial loan and leasing related income, fees from safe deposit boxes, check fees and other miscellaneous income including unusual gains. Net revenue from affordable housing includes actual gains and losses resulting from the sale of affordable housing investments, cash distributions from the investments and any related impairment charges. Other miscellaneous income decreased in the six months ended June 30, 2026 compared to the same period in 2025 due primarily to a decline in other consumer revenue. 74 Table of Contents NON-INTEREST EXPENSE Table 24—Non-Interest Expense Three Months Ended June 30 Quarter-to-Date Change 6/30/2026 vs. 6/30/2025 2026 2025 Amount Percent (Dollars in millions) Salaries and employee benefits $ 697 $ 658 $ 39 5.9 % Equipment and software expense 107 104 3 2.9 % Net occupancy expense 73 72 1 1.4 % Outside services 47 39 8 20.5 % Marketing 28 26 2 7.7 % Professional, legal and regulatory expenses 28 28 — — % Credit/checkcard expenses 16 16 — — % FDIC insurance assessments 17 20 (3) (15.0) % Operational losses 8 13 (5) (38.5) % Visa class B shares expense 2 4 (2) (50.0) % Branch consolidation, property and equipment charges 5 — 5 NM Other miscellaneous expenses 93 93 — — % $ 1,121 $ 1,073 $ 48 4.5 % Six Months Ended June 30 Year-to-Date Change 6/30/2026 vs. 6/30/2025 2026 2025 Amount Percent (Dollars in millions) Salaries and employee benefits $ 1,356 $ 1,283 $ 73 5.7 % Equipment and software expense 215 203 12 5.9 % Net occupancy expense 145 142 3 2.1 % Outside services 89 79 10 12.7 % Marketing 57 56 1 1.8 % Professional, legal and regulatory expenses 56 51 5 9.8 % Credit/checkcard expenses 30 31 (1) (3.2) % FDIC insurance assessments 36 40 (4) (10.0) % Operational losses 18 26 (8) (30.8) % Visa class B shares expense 3 11 (8) (72.7) % Branch consolidation, property and equipment charges 5 — 5 NM Other miscellaneous expenses 179 190 (11) (5.8) % $ 2,189 $ 2,112 $ 77 3.6 % _________ NM - Not Meaningful Salaries and Employee Benefits Salaries and employee benefits consist of salaries, incentive compensation, long-term incentives, payroll taxes, and other employee benefits such as 401(k), pension, and medical, life and disability insurance, as well as, expenses from liabilities held for employee benefit purposes. Salaries and employee benefits increased in the three and six months ended June 30, 2026 compared to the same periods in 2025 primarily due to higher base salaries from annual merit increases, which also increased related taxes, an increase in severance and slightly higher production-based incentives. Also contributing to the increase was higher market valuation adjustments for supplemental employee benefit liabilities. Full-time equivalent headcount increased to 20,003 at June 30, 2026 from 19,642 at June 30, 2025. Outside Services Outside services consists of expenses related to routine services provided by third parties, such as contract labor, servicing costs, data processing, loan pricing and research, data license purchases, data subscriptions, and check printing. Outside services expense increased in the three and six months ended June 30, 2026 compared to the same periods in 2025 primarily due to the timing and volume of services provided. FDIC Insurance Assessments FDIC insurance assessments decreased in the three and six months ended June 30, 2026 compared to the same periods in 2025. On June 25, 2026, the FDIC issued a notice of proposed rulemaking to increase the threshold for determining small versus large institution size, decrease the initial base assessment rate schedule for all institutions, and provide a resolution readiness 75 Table of Contents reduction to the assessment rates for large and highly complex institutions. The Company continues to monitor developments concerning the proposal and evaluate its potential impact. Operational Losses Operational losses include losses related to fraud, execution, delivery and process management, and damage to physical assets. Operational losses decreased in the three and six months ended June 30, 2026 compared to the same periods in 2025 primarily due to a decline in check fraud resulting from effective prevention countermeasures. Visa Class B Shares Expense Visa class B shares expense is associated with previously sold shares. The Visa class B shares have restrictions tied to the finalization of certain covered litigation. Visa class B shares expense decreased in the six months ended June 30, 2026 compared to the same period in 2025 due to lower escrow funding expense for the Company's proportionate share of ongoing covered litigation. INCOME TAXES The Company’s income tax expense for the three months ended June 30, 2026 was $148 million compared to $143 million for the three months ended June 30, 2025, resulting in effective tax rates of 20.7% and 20.3%, respectively. The Company’s income tax expense for the six months ended June 30, 2026 was $303 million compared to $274 million for the six months ended June 30, 2025, resulting in effective tax rates of 21.2% and 20.7%, respectively. The effective tax rate is affected by many factors including, but not limited to, the level of pre-tax income, the mix of income between various tax jurisdictions with differing tax rates, enacted tax legislation, net tax benefits related to affordable housing investments, bank-owned life insurance income, tax-exempt interest and nondeductible expenses. In addition, the effective tax rate is affected by items that may occur in any given period but are not consistent from period-to-period, such as the termination of certain leveraged leases, share-based payments, valuation allowance changes and changes to UTBs. Accordingly, the comparability of the effective tax rate between periods may be impacted. At June 30, 2026, the Company reported a net deferred tax asset of $233 million compared to $244 million at December 31, 2025.