Regions Financial Corporation (NYSE:RF) reported second-quarter results on Friday that exceeded Wall Street expectations, supported by higher lending activity, stronger net interest income and record wealth management revenue.
The bank’s shares were little changed in pre-market trading following the earnings announcement.
Adjusted earnings came in at $0.68 per share, ahead of analysts’ consensus estimate of $0.63.
Adjusted revenue rose to $1.95 billion, surpassing the expected $1.94 billion and increasing 2% compared with the same period last year.
Net interest income and loan growth support results
Regions generated reported net income available to common shareholders of $549 million, equivalent to $0.64 per diluted share.
On an adjusted basis, net income available to common shareholders totalled $583 million, with adjusted diluted earnings per share increasing 13% from the second quarter of 2025.
Net interest income climbed 2% quarter over quarter to $1.28 billion, benefiting from continued loan growth, the rollover of fixed-rate assets and ongoing management of deposit costs.
The bank’s net interest margin stood at 3.66%.
Average loans increased 2% to $98.7 billion, driven by broad-based commercial and industrial lending across sectors including manufacturing, power and utilities, government and retail trade.
Wealth management reaches another record
“Strategic execution and solid delivery define our results for the second quarter,” said John Turner, Chairman, President and CEO. “As our markets grow, Regions Bank is focused on leveraging every opportunity to illustrate the Regions difference to more consumers, businesses, Wealth Management clients, and homeowners.”
Wealth management revenue reached a record $150 million, marking the fifth record-setting quarter in the past six quarters.
Adjusted non-interest income increased 7% year over year. Reported non-interest income rose 1%, reflecting a $40 million loss associated with a securities repositioning initiative.
Credit quality improves and capital remains strong
Asset quality strengthened during the quarter, with annualised net charge-offs declining to 42 basis points from 54 basis points in the previous quarter.
The allowance for credit losses ratio decreased to 1.63%, while coverage of non-performing loans improved to 241%.
Regions also maintained solid capital levels, reporting an estimated Common Equity Tier 1 (CET1) ratio of 10.7%.
During the quarter, the company repurchased approximately 2.1 million shares for $59 million and returned an additional $226 million to common shareholders through dividends.
The board also approved a quarterly dividend of $0.30 per share, representing a 13% increase from the previous payout.