# EDGAR Filing Document

**Accession Number:** 0001281761
**File Stem:** 0001281761-25-000063
**Filing Date:** 2025-8
**Character Count:** 462001
**Document Hash:** 77ad93f71adb851febe53844747982a3
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001281761-25-000063.hdr.sgml**: 20250805

**ACCESSION NUMBER**: 0001281761-25-000063

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 87

**CONFORMED PERIOD OF REPORT**: 20250630

**FILED AS OF DATE**: 20250805

**DATE AS OF CHANGE**: 20250805

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** REGIONS FINANCIAL CORP
- **CENTRAL INDEX KEY:** 0001281761
- **STANDARD INDUSTRIAL CLASSIFICATION:** NATIONAL COMMERCIAL BANKS [6021]
- **ORGANIZATION NAME:** 02 Finance
- **EIN:** 630589368
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-34034
- **FILM NUMBER:** 251183990

**BUSINESS ADDRESS:**
- **STREET 1:** 1900 FIFTH AVENUE NORTH
- **CITY:** BIRMINGHAM
- **STATE:** AL
- **ZIP:** 35203
- **BUSINESS PHONE:** 800-734-4667

**MAIL ADDRESS:**
- **STREET 1:** 1900 FIFTH AVENUE NORTH
- **CITY:** BIRMINGHAM
- **STATE:** AL
- **ZIP:** 35203

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** NEW REGIONS FINANCIAL CORP
- **DATE OF NAME CHANGE:** 20040225

?xml version='1.0' encoding='ASCII'? rf-20250630

<u>[**Table of Contents**](#i135e6d1bd40b43728f33de70f283fb9d_7)</u> 

    

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

---

| | |
|:---|:---|
| **FORM** | **10-Q** |

---

---

| | | |
|:---|:---|:---|
| ☒ | **Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934** | **Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934** |
| | **For the quarterly period ended** | **June 30, 2025** |

---

**or**

---

| | | |
|:---|:---|:---|
| ☐ | **Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934** | **Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934** |
| | **For the transition period from** | **to** |

---

**Commission File Number: 001-34034**

---

| |
|:---|
| **Regions Financial Corporation** |
| **(Exact name of registrant as specified in its charter)** |

---

---

| | |
|:---|:---|
| **Delaware** | **63-0589368** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(State or other jurisdiction of incorporation or organization)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(I.R.S. Employer Identification No.)** |
| **1900 Fifth Avenue North** | |
| **Birmingham** | |
| **Alabama** | **35203** |
| **(Address of principal executive offices)** | **(Zip Code)** |

---

**(800) 734-4667** 

**(Registrant's telephone number, including area code)**

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol(s)** | **Name of each exchange on which registered** |
| Common Stock, $.01 par value | RF | New York Stock Exchange |
| Depositary Shares, each representing a 1/40th Interest in a Share of |  |  |
| 5.700% Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series C | RF PRC | New York Stock Exchange |
| Depositary Shares, each representing a 1/40th Interest in a Share of |  |  |
| 4.45% Non-Cumulative Perpetual Preferred Stock, Series E | RF PRE | New York Stock Exchange |
| Depositary Shares, each representing a 1/40th Interest in a Share of |  |  |
| Non-Cumulative Perpetual Preferred Stock, Series F | RF PRF | New York Stock Exchange |

---

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes&nbsp;&nbsp;&nbsp;&nbsp;☐ No

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<u>[**Table of Contents**](#i135e6d1bd40b43728f33de70f283fb9d_7)</u> 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act. ☒ Large accelerated filer ☐ Accelerated filer ☐ Non-accelerated filer ☐ Smaller reporting company ☐ Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).&nbsp;&nbsp;&nbsp;&nbsp;☐ Yes ☒ No

**Securities registered pursuant to Section 12(b) of the Act:**

As of August 4, 2025 there were 892,308,354 shares of the issuer's common stock, par value $.01 per share, outstanding.

------

<u>[**Table of Contents**](#i135e6d1bd40b43728f33de70f283fb9d_7)</u> 

**REGIONS FINANCIAL CORPORATION**

**FORM 10-Q**

**INDEX**

---

| | | |
|:---|:---|:---|
| | | **Page** |
| Forward-Looking Statements | Forward-Looking Statements | Forward-Looking Statements |
| Part I. Financial Information | Part I. Financial Information | Part I. Financial Information |
| Item 1. | <u>[Financial Statements (Unaudited)](#i135e6d1bd40b43728f33de70f283fb9d_22)</u> | <u>[9](#i135e6d1bd40b43728f33de70f283fb9d_22)</u> |
|  | <u>[Consolidated Balance Sheets](#i135e6d1bd40b43728f33de70f283fb9d_25)</u> | <u>[9](#i135e6d1bd40b43728f33de70f283fb9d_25)</u> |
|  | <u>[Consolidated Statements of Income](#i135e6d1bd40b43728f33de70f283fb9d_28)</u> | <u>[10](#i135e6d1bd40b43728f33de70f283fb9d_28)</u> |
|  | <u>[Consolidated Statements of Comprehensive Income](#i135e6d1bd40b43728f33de70f283fb9d_31)</u> | <u>[11](#i135e6d1bd40b43728f33de70f283fb9d_31)</u> |
|  | <u>[Consolidated Statements of Changes in Shareholders' Equity](#i135e6d1bd40b43728f33de70f283fb9d_34)</u> | <u>[12](#i135e6d1bd40b43728f33de70f283fb9d_34)</u> |
|  | <u>[Consolidated Statements of Cash Flows](#i135e6d1bd40b43728f33de70f283fb9d_37)</u> | <u>[13](#i135e6d1bd40b43728f33de70f283fb9d_37)</u> |
|  | <u>[Notes to Consolidated Financial Statements](#i135e6d1bd40b43728f33de70f283fb9d_40)</u> | <u>[14](#i135e6d1bd40b43728f33de70f283fb9d_40)</u> |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Note 1 "Basis of Presentation"](#i135e6d1bd40b43728f33de70f283fb9d_40)</u> | <u>[14](#i135e6d1bd40b43728f33de70f283fb9d_40)</u> |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Note 2 "Variable Interest Entities"](#i135e6d1bd40b43728f33de70f283fb9d_43)</u> | <u>[14](#i135e6d1bd40b43728f33de70f283fb9d_43)</u> |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Note 3 "Debt Securities"](#i135e6d1bd40b43728f33de70f283fb9d_46)</u> | <u>[15](#i135e6d1bd40b43728f33de70f283fb9d_46)</u> |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Note 4 "Loans and the Allowance for Credit Losses"](#i135e6d1bd40b43728f33de70f283fb9d_49)</u> | <u>[17](#i135e6d1bd40b43728f33de70f283fb9d_49)</u> |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Note 5 "Servicing of Financial Assets"](#i135e6d1bd40b43728f33de70f283fb9d_55)</u> | <u>[30](#i135e6d1bd40b43728f33de70f283fb9d_55)</u> |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Note 6 "Shareholders' Equity and Accumulated Other Comprehensive Income (Loss)"](#i135e6d1bd40b43728f33de70f283fb9d_58)</u> | <u>[32](#i135e6d1bd40b43728f33de70f283fb9d_58)</u> |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Note 7 "Earnings per Common Share"](#i135e6d1bd40b43728f33de70f283fb9d_61)</u> | <u>[37](#i135e6d1bd40b43728f33de70f283fb9d_61)</u> |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Note 8 "Pension and Other Postretirement Benefits"](#i135e6d1bd40b43728f33de70f283fb9d_64)</u> | <u>[38](#i135e6d1bd40b43728f33de70f283fb9d_64)</u> |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Note 9 "Derivative Financial Instruments and Hedging Activities"](#i135e6d1bd40b43728f33de70f283fb9d_67)</u> | <u>[39](#i135e6d1bd40b43728f33de70f283fb9d_67)</u> |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Note 10 "Fair Value Measurements"](#i135e6d1bd40b43728f33de70f283fb9d_70)</u> | <u>[43](#i135e6d1bd40b43728f33de70f283fb9d_70)</u> |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Note 11 "Business Segment Information"](#i135e6d1bd40b43728f33de70f283fb9d_73)</u> | <u>[46](#i135e6d1bd40b43728f33de70f283fb9d_73)</u> |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Note 12 "Commitments, Contingencies and Guarantees"](#i135e6d1bd40b43728f33de70f283fb9d_76)</u> | <u>[49](#i135e6d1bd40b43728f33de70f283fb9d_76)</u> |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Note 13 "Recent Accounting Pronouncements"](#i135e6d1bd40b43728f33de70f283fb9d_79)</u> | <u>[51](#i135e6d1bd40b43728f33de70f283fb9d_79)</u> |
| Item 2. | <u>[Management's Discussion and Analysis of Financial Condition and Results of Operations](#i135e6d1bd40b43728f33de70f283fb9d_82)</u> | <u>[52](#i135e6d1bd40b43728f33de70f283fb9d_82)</u> |
| Item 3. | <u>[Quantitative and Qualitative Disclosures About Market Risk](#i135e6d1bd40b43728f33de70f283fb9d_211)</u> | <u>[81](#i135e6d1bd40b43728f33de70f283fb9d_211)</u> |
| Item 4. | <u>[Controls and Procedures](#i135e6d1bd40b43728f33de70f283fb9d_214)</u> | <u>[81](#i135e6d1bd40b43728f33de70f283fb9d_214)</u> |
| Part II. Other Information | Part II. Other Information |  |
| Item 1. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Legal Proceedings](#i135e6d1bd40b43728f33de70f283fb9d_220)</u> | <u>[82](#i135e6d1bd40b43728f33de70f283fb9d_220)</u> |
| Item 1A. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>[Risk Factors](#i135e6d1bd40b43728f33de70f283fb9d_220)</u> | <u>[82](#i135e6d1bd40b43728f33de70f283fb9d_220)</u> |
| Item 2. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Unregistered Sales of Equity Securities and Use of Proceeds](#i135e6d1bd40b43728f33de70f283fb9d_223)</u> | <u>[82](#i135e6d1bd40b43728f33de70f283fb9d_223)</u> |
| Item 5. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Other Information](#i135e6d1bd40b43728f33de70f283fb9d_226)</u> | <u>[82](#i135e6d1bd40b43728f33de70f283fb9d_223)</u> |
| Item 6. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Exhibits](#i135e6d1bd40b43728f33de70f283fb9d_229)</u> | <u>[83](#i135e6d1bd40b43728f33de70f283fb9d_229)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Signatures](#i135e6d1bd40b43728f33de70f283fb9d_232)</u> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Signatures](#i135e6d1bd40b43728f33de70f283fb9d_232)</u> | <u>[84](#i135e6d1bd40b43728f33de70f283fb9d_232)</u> |

---

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<u>[**Table of Contents**](#i135e6d1bd40b43728f33de70f283fb9d_7)</u> 

**Glossary of Defined Terms**

Agencies - collectively, FNMA and GNMA.

ACL - Allowance for credit losses.

ALCO - Asset/Liability Management Committee.

Allowance - Allowance for credit losses.

AOCI - Accumulated other comprehensive income.

ASU - Accounting Standards Update.

ATM - Automated teller machine.

Bank - Regions Bank.

Basel III - Basel Committee's 2010 Regulatory Capital Framework (Third Accord).

Basel III Endgame - New rules for capital requirements that include broad-based changes to the risk-weighting framework that were proposed by U.S. federal regulators in 2023.

Basel III Rules - Final capital rules adopting the Basel III capital framework approved by U.S. federal regulators in 2013.

Basel Committee - Basel Committee on Banking Supervision.

BHC - Bank Holding Company.

Board - The Company's Board of Directors.

CAP - Customer Assistance Program.

CCAR - Comprehensive Capital Analysis and Review.

CECL - ASU 2016-13, Measurement of Credit Losses on Financial Instruments ("Current Expected Credit Losses")

CET1 - Common Equity Tier 1.

CFPB - Consumer Financial Protection Bureau.

CME Term SOFR - Chicago Mercantile Exchange published term Secured Overnight Financing Rate.

Company - Regions Financial Corporation and its subsidiaries.

CPI - Consumer price index.

CPR - Constant (or Conditional) prepayment rate.

DIF - Deposit Insurance Fund.

Dodd-Frank Act - The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.

DPD - Days past due.

DBRS - Dominion Bond Rating Service Morningstar.

DUS - Fannie Mae Delegated Underwriting & Servicing.

EVE - Economic Value of Equity.

FASB - Financial Accounting Standards Board.

FDIC - The Federal Deposit Insurance Corporation.

Federal Reserve - The Board of Governors of the Federal Reserve System.

FHA - Federal Housing Administration.

FHLB - Federal Home Loan Bank.

FICO - Fair Isaac Corporation.

FICO scores - Personal credit scores based on the model introduced by the Fair Isaac Corporation.

Fintechs - Financial Technology Companies.

FOMC - Federal Open Market Committee.

GAAP - Generally Accepted Accounting Principles in the US.

GDP - Gross domestic product.

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<u>[**Table of Contents**](#i135e6d1bd40b43728f33de70f283fb9d_7)</u> 

GNMA - Government National Mortgage Association.

HPI - Housing price index.

IRS - Internal Revenue Service.

IRE - Investor Real Estate.

ISDA - International Swaps and Derivatives Association.

LROC - Liquidity Risk Oversight Committee.

LTV - Loan to value.

MBS - Mortgage-backed securities.

MSAs - Metropolitan Statistical Areas.

MSR - Mortgage servicing right.

NM - Not meaningful.

OAS - Option-adjusted spread.

OCI - Other comprehensive income.

R&S - Reasonable and supportable.

REITs - Real estate investment trust.

SBIC - Small Business Investment Company.

SCB - Stress Capital Buffer.

SEC - U.S. Securities and Exchange Commission.

SERP - Supplemental Executive Retirement Plan.

SOFR - Secured Overnight Financing Rate.

U.S. - United States.

U.S. Treasury - The United States Department of the Treasury.

VIE - Variable interest entity.

Visa - The Visa, U.S.A. Inc. card association or its affiliates, collectively.

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<u>[**Table of Contents**](#i135e6d1bd40b43728f33de70f283fb9d_7)</u> 

**PART I**

**Cautionary Note Regarding Forward-Looking Statements and Risk Factor Summary**

This Quarterly Report on Form 10-Q, other periodic reports filed by Regions Financial Corporation under the Securities Exchange Act of 1934, as amended, and any other written or oral statements made by us or on our behalf to analysts, investors, the media and others, may include forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. The terms "Regions," the "Company," "we," "us" and "our" as used herein mean collectively Regions Financial Corporation, a Delaware corporation, together with its subsidiaries when or where appropriate. The words "future," "anticipates," "assumes," "intends," "plans," "seeks," "believes," "predicts," "potential," "objectives," "estimates," "expects," "targets," "projects," "outlook," "forecast," "would," "will," "may," "might," "could," "should," "can," and similar terms and expressions often signify forward-looking statements. Forward-looking statements are subject to the risk that the actual effects may differ, possibly materially, from what is reflected in those forward-looking statements due to factors and future developments that are uncertain, unpredictable and in many cases beyond our control. Forward-looking statements are not based on historical information, but rather are related to future operations, strategies, financial results or other developments. Forward-looking statements are based on management's current expectations as well as certain assumptions and estimates made by, and information available to, management at the time the statements are made. Those statements are based on general assumptions and are subject to various risks, and because they also relate to the future they are likewise subject to inherent uncertainties and other factors that may cause actual results to differ materially from the views, beliefs and projections expressed in such statements. Therefore, we caution you against relying on any of these forward-looking statements. These risks, uncertainties and other factors include, but are not limited to, those described below:

• Current and future economic and market conditions in the United States generally or in the communities we serve (in particular the Southeastern United States), including the effects of possible declines in property values, increases in interest rates and unemployment rates, inflation, financial market disruptions and potential reductions of economic growth, which may adversely affect our lending and other businesses and our financial results and conditions.

• Possible changes in trade, monetary and fiscal policies of, and other activities undertaken by, governments, agencies, central banks and similar organizations, including tariffs, which could have a material adverse effect on our businesses and our financial results and conditions.

• Changes in market interest rates or capital markets could adversely affect our revenue and expense, the value of assets (such as our portfolio of investment securities) and obligations, as well as the availability and cost of capital and liquidity.

• Volatility and uncertainty about the direction of interest rates and the timing of any changes, which may lead to increased costs for businesses and consumers and potentially contribute to poor business and economic conditions generally.

• Possible changes in the creditworthiness of customers and the possible impairment of the collectability of loans and leases.

• Changes in the speed of loan prepayments, loan origination and sale volumes, charge-offs, credit loss provisions or actual credit losses where our allowance for credit losses may not be adequate to cover our eventual losses.

• Possible acceleration of prepayments on mortgage-backed securities due to declining interest rates, and the related acceleration of premium amortization on those securities.

• Possible changes in consumer and business spending and saving habits and the related effect on our ability to increase assets and to attract deposits, which could adversely affect our net income.

• Loss of customer checking and savings account deposits as customers pursue other, higher-yield investments, or the need to price interest-bearing deposits higher due to competitive forces. Either of these activities could increase our funding costs.

• Possible downgrades in our credit ratings or outlook could, among other negative impacts, increase the costs of funding from capital markets.

• The loss of value of our investment portfolio could negatively impact market perceptions of us.

• Our ability to manage fluctuations in the value of assets and liabilities and off-balance sheet exposure so as to maintain sufficient capital and liquidity to support our businesses.

• The effects of social media on market perceptions of us and banks generally.

• The effects of problems encountered by other financial institutions that adversely affect us or the banking industry generally could require us to change certain business practices, reduce our revenue, impose additional costs on us, or otherwise negatively affect our businesses.

• Volatility in the financial services industry (including failures or rumors of failures of other depository institutions), along with actions taken by governmental agencies to address such turmoil, could affect the ability of depository institutions, including us, to attract and retain depositors and to borrow or raise capital.

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<u>[**Table of Contents**](#i135e6d1bd40b43728f33de70f283fb9d_7)</u> 

• Our ability to effectively compete with traditional and non-traditional financial services companies, including fintechs, some of which possess greater financial resources than we do or are subject to different regulatory standards than we are.

• Our inability to develop and gain acceptance from current and prospective customers for new products and services and the enhancement of existing products and services to meet customers' needs and respond to emerging technological trends in a timely manner could have a negative impact on our revenue.

• Our inability to keep pace with technological changes, including those related to the offering of digital banking and financial services, could result in losing business to competitors.

• The development and use of AI presents risks and challenges that may impact our business.

• Our ability to execute on our strategic and operational plans, including our ability to fully realize the financial and nonfinancial benefits relating to our strategic initiatives.

• The risks and uncertainties related to our acquisition or divestiture of businesses and risks related to such acquisitions, including that the expected synergies, cost savings and other financial or other benefits may not be realized within expected timeframes, or might be less than projected; and difficulties in integrating acquired businesses.

• The success of our marketing efforts in attracting and retaining customers.

• Our ability to achieve our expense management initiatives.

• Changes in commodity market prices and conditions could adversely affect the cash flows of our borrowers operating in industries that are impacted by changes in commodity prices (including businesses indirectly impacted by commodities prices such as businesses that transport commodities or manufacture equipment used in the production of commodities), which could impair the ability of those borrowers to service any loans outstanding to them and/or reduce demand for loans in those industries.

• The effects of geopolitical instability, including wars, conflicts, civil unrest, and terrorist attacks and the potential impact, directly or indirectly, on our businesses.

• Fraud, theft or other misconduct conducted by external parties, including our customers and business partners, or by our employees.

• Any inaccurate or incomplete information provided to us by our customers or counterparties.

• Inability of our framework to manage risks associated with our businesses, such as credit risk and operational risk, including third-party vendors and other service providers, which inability could, among other things, result in a breach of operating or security systems as a result of a cyber-attack or similar act or failure to deliver our services effectively.

• Our ability to identify and address operational risks associated with the introduction of or changes to products, services, or delivery platforms.

• Dependence on key suppliers or vendors to obtain equipment and other supplies for our businesses on acceptable terms.

• The inability of our internal controls and procedures to prevent, detect or mitigate any material errors or fraudulent acts.

• Our ability to identify and address cyber-security risks such as data security breaches, malware, ransomware, "denial of service" attacks, "hacking" and identity theft, including account take-overs, a failure of which could disrupt our businesses and result in the disclosure of and/or misuse or misappropriation of confidential or proprietary information, disruption or damage to our systems, increased costs, losses, or adverse effects to our reputation.

• The effects of the failure of any component of our business infrastructure provided by a third party could disrupt our businesses, result in the disclosure of and/or misuse of confidential information or proprietary information, increase our costs, negatively affect our reputation, and cause losses.

• The effects of any developments, changes or actions relating to any litigation or regulatory proceedings brought against us or any of our subsidiaries.

• The costs, including possibly incurring fines, penalties, or other negative effects (including reputational harm) of any adverse judicial, administrative, or arbitral rulings or proceedings, regulatory enforcement actions or other legal actions to which we or any of our subsidiaries are a party, and which may adversely affect our results.

• Changes in laws and regulations affecting our businesses, including legislation and regulations relating to bank products and services, such as changes to debit card interchange fees, special FDIC assessments, any new long-term debt requirements, as well as changes in the enforcement and interpretation of such laws and regulations by applicable governmental and self-regulatory agencies, including as a result of the changes in U.S. presidential administration, control of the U.S. Congress, and changes in personnel at the bank regulatory agencies, which could require us to change certain business practices, increase compliance risk, reduce our revenue, impose additional costs on us, or otherwise negatively affect our businesses.

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<u>[**Table of Contents**](#i135e6d1bd40b43728f33de70f283fb9d_7)</u> 

• Our capital actions, including dividend payments, common stock repurchases, or redemptions of preferred stock, must not cause us to fall below minimum capital ratio requirements, with applicable buffers taken into account, and must comply with other requirements and restrictions under law or imposed by our regulators, which may impact our ability to return capital to shareholders.

• Our ability to comply with stress testing and capital planning requirements (as part of the CCAR process or otherwise) may continue to require a significant investment of our managerial resources due to the importance of such tests and requirements.

• Our ability to comply with applicable capital and liquidity requirements (including, among other things, the Basel III Rules), including our ability to generate capital internally or raise capital on favorable terms, and if we fail to meet requirements, our financial condition and market perceptions of us could be negatively impacted.

• Our ability to recruit and retain talented and experienced personnel to assist in the development, management and operation of our products and services may be affected by changes in laws and regulations in effect from time to time.

• Our ability to receive dividends from our subsidiaries, in particular Regions Bank, could affect our liquidity and ability to pay dividends to shareholders.

• Fluctuations in the price of our common stock and inability to complete stock repurchases in the time frame and/or on the terms anticipated.

• The effects of anti-takeover laws and exclusive forum provision in our certificate of incorporation and bylaws.

• The effect of new tax legislation and/or interpretation of existing tax law, which may impact our earnings, capital ratios and our ability to return capital to shareholders.

• Changes in accounting policies or procedures as may be required by the FASB or other regulatory agencies could materially affect our financial statements and how we report those results, and expectations and preliminary analyses relating to how such changes will affect our financial results could prove incorrect.

• Any impairment of our goodwill or other intangibles, any repricing of assets or any adjustment of valuation allowances on our deferred tax assets due to changes in tax law, adverse changes in the economic environment declining operations of the reporting unit or other factors.

• The effects of man-made and natural disasters, including fires, floods, droughts, tornadoes, hurricanes and environmental damage (especially in the Southeastern United States), which may negatively affect our operations and/or our loan portfolios and increase our cost of conducting business. The severity and frequency of future earthquakes, fires, hurricanes, tornadoes, droughts, floods and other weather-related events are difficult to predict and may be exacerbated by global climate change.

• The impact of pandemics on our businesses, operations and financial results and conditions. The duration and severity of any pandemic as well as government actions or other restrictions in connection with such events could disrupt the global economy, adversely affect our capital and liquidity position, impair the ability of borrowers to repay outstanding loans and increase our allowance for credit losses, impair collateral values and result in lost revenue or additional expenses.

• The effects of any damage to our reputation resulting from developments related to any of the items identified above.

• Other risks identified from time to time in reports that we file with the SEC.

You should not place undue reliance on any forward-looking statements, which speak only as of the date made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible to predict all of them. We assume no obligation and do not intend to update or revise any forward-looking statements that are made from time to time, either as a result of future developments, new information or otherwise, except as may be required by law.

See also the reports filed with the SEC, including the discussion under the "Risk Factors" section of Regions' Annual Report on Form 10-K for the year ended December 31, 2024 and in Regions' subsequent filings with the SEC.

------

<u>[**Table of Contents**](#i135e6d1bd40b43728f33de70f283fb9d_7)</u> 

**PART I**

**FINANCIAL INFORMATION**

**Item 1. Financial Statements** 

**REGIONS FINANCIAL CORPORATION AND SUBSIDIARIES**

**CONSOLIDATED BALANCE SHEETS (Unaudited)**

---

| | | |
|:---|:---|:---|
| | **June 30, 2025** | **December 31, 2024** |
| | **(In millions, except per share data)** | **(In millions, except per share data)** |
| **Assets** | | |
| Cash and due from banks | $3245 | $2893 |
| Interest-bearing deposits in other banks | 7930 | 7819 |
| Debt securities held to maturity (estimated fair value of $5,814 and $4,226, respectively) | 5972 | 4427 |
| Debt securities available for sale (amortized cost of $27,411 and $28,183, respectively) | 26333 | 26224 |
| Loans held for sale (includes $286 and $234 measured at fair value, respectively) | 594 | 594 |
| Loans, net of unearned income | 96723 | 96727 |
| Allowance for loan losses | (1612) | (1613) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net loans | 95111 | 95114 |
| Other earning assets | 1682 | 1616 |
| Premises, equipment and software, net | 1755 | 1673 |
| Interest receivable | 574 | 572 |
| Goodwill | 5733 | 5733 |
| Residential mortgage servicing rights at fair value | 988 | 1007 |
| Other identifiable intangible assets, net | 153 | 169 |
| Other assets | 9136 | 9461 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $159206 | $157302 |
| **Liabilities and Equity** |  |  |
| Deposits: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-interest-bearing | $40209 | $39138 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest-bearing | 90710 | 88465 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total deposits | 130919 | 127603 |
| Borrowed funds: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Short-term borrowings |  | 500 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Long-term borrowings | 5279 | 5993 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total borrowed funds | 5279 | 6493 |
| Other liabilities | 4302 | 5296 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 140500 | 139392 |
| Equity: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preferred stock, authorized 10 million shares, par value $1.00 per share: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-cumulative perpetual, including related surplus, net of issuance costs; issued—1,400,000 shares and 1,403,500, respectively | 1369 | 1715 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common stock, authorized 3 billion shares, par value $0.01 per share: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Issued including treasury stock—934,498,116 and 949,510,334 shares, respectively | 9 | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additional paid-in capital | 11017 | 11394 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Retained earnings | 9609 | 9060 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Treasury stock, at cost— 41,032,676 shares | (1371) | (1371) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accumulated other comprehensive income (loss), net | (1967) | (2928) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total shareholders' equity | 18666 | 17879 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Noncontrolling interest | 40 | 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total equity | 18706 | 17910 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and equity | $159206 | $157302 |

---

See notes to consolidated financial statements.

------

<u>[**Table of Contents**](#i135e6d1bd40b43728f33de70f283fb9d_7)</u> 

**REGIONS FINANCIAL CORPORATION AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF INCOME (Unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30** | **Three Months Ended June 30** | **Six Months Ended June 30** | **Six Months Ended June 30** |
| | **2025** | **2024** | **2025** | **2024** |
| | **(In millions, except per share data)** | **(In millions, except per share data)** | **(In millions, except per share data)** | **(In millions, except per share data)** |
| Interest income on: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loans, including fees | $1377 | $1432 | $2719 | $2853 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Debt securities | 286 | 219 | 552 | 428 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loans held for sale | 9 | 9 | 17 | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other earning assets | 112 | 102 | 221 | 188 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest income | 1784 | 1762 | 3509 | 3486 |
| Interest expense on: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deposits | 447 | 502 | 889 | 997 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Short-term borrowings | 1 | 13 | 5 | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Long-term borrowings | 77 | 61 | 162 | 105 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest expense | 525 | 576 | 1056 | 1116 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net interest income | 1259 | 1186 | 2453 | 2370 |
| Provision for credit losses | 126 | 102 | 250 | 254 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net interest income after provision for credit losses | 1133 | 1084 | 2203 | 2116 |
| Non-interest income: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Service charges on deposit accounts | 151 | 151 | 312 | 299 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Card and ATM fees | 125 | 120 | 242 | 236 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment management and trust fee income | 90 | 83 | 176 | 164 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capital markets income | 83 | 68 | 163 | 159 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mortgage income | 48 | 34 | 88 | 75 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Securities gains (losses), net | (1) | (50) | (26) | (100) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | 150 | 139 | 281 | 275 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total non-interest income | 646 | 545 | 1236 | 1108 |
| Non-interest expense: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Salaries and employee benefits | 658 | 609 | 1283 | 1267 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equipment and software expense | 104 | 100 | 203 | 201 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net occupancy expense | 72 | 68 | 142 | 142 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | 239 | 227 | 484 | 525 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total non-interest expense | 1073 | 1004 | 2112 | 2135 |
| Income before income taxes | 706 | 625 | 1327 | 1089 |
| Income tax expense | 143 | 124 | 274 | 220 |
| Net income | $563 | $501 | $1053 | $869 |
| Net income available to common shareholders | $534 | $477 | $999 | $820 |
| Weighted-average number of shares outstanding: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic | 898 | 917 | 902 | 919 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted | 900 | 918 | 905 | 920 |
| Earnings per common share: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic | $0.59 | $0.52 | $1.11 | $0.89 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted | 0.59 | 0.52 | 1.10 | 0.89 |

---

See notes to consolidated financial statements.

------

<u>[**Table of Contents**](#i135e6d1bd40b43728f33de70f283fb9d_7)</u> 

 **REGIONS FINANCIAL CORPORATION AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)**

---

| | | |
|:---|:---|:---|
| | **Three Months Ended June 30** | **Three Months Ended June 30** |
| | **2025** | **2024** |
| | **(In millions)** | **(In millions)** |
| Net income | $563 | $501 |
| Other comprehensive income (loss), net of tax: |  |  |
| &nbsp;&nbsp;Unrealized losses on securities transferred to held to maturity: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unrealized losses on securities transferred from available for sale during the period (net of ($19) and zero tax effect, respectively) | (55) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less: reclassification adjustments for amortization of unrealized losses on securities transferred to held to maturity (net of ($11) and zero tax effect, respectively) | (32) | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net change in unrealized losses on securities transferred to held to maturity, net of tax | (23) | 1 |
| &nbsp;&nbsp;Unrealized gains (losses) on securities available for sale: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unrealized losses on securities transferred to held to maturity during the period (net of $19 and zero tax effect, respectively | 55 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unrealized holding gains (losses) arising during the period (net of $43 and ($24) tax effect, respectively) | 127 | (73) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less: reclassification adjustments for securities gains (losses) realized in net income (net of zero and ($12) tax effect, respectively)  | (1) | (38) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net change in unrealized gains (losses) on securities available for sale, net of tax | 183 | (35) |
| &nbsp;&nbsp;Unrealized gains (losses) on derivative instruments designated as cash flow hedges: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unrealized holding gains (losses) on derivative instruments arising during the period (net of $36 and ($33) tax effect, respectively) | 106 | (97) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less: reclassification adjustments for gains (losses) on derivative instruments realized in net income (net of ($15) and ($30) tax effect, respectively) | (45) | (86) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net change in unrealized gains (losses) on derivative instruments, net of tax | 151 | (11) |
| &nbsp;&nbsp;Defined benefit pension plans and other post employment benefits: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net actuarial gains (losses) arising during the period (net of zero and zero tax effect, respectively) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less: reclassification adjustments for amortization of actuarial loss and settlements realized in net income (net of ($1) and ($2) tax effect, respectively) | (5) | (4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net change from defined benefit pension plans and other post employment benefits, net of tax | 5 | 4 |
| Other comprehensive income (loss), net of tax | 316 | (41) |
| Comprehensive income | $879 | $460 |
|  | **Six Months Ended June 30** | **Six Months Ended June 30** |
|  | **2025** | **2024** |
|  | **(In millions)** | **(In millions)** |
| Net income | $1053 | $869 |
| Other comprehensive income (loss), net of tax: |  |  |
| &nbsp;&nbsp;Unrealized losses on securities transferred to held to maturity: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unrealized losses on securities transferred from available for sale during the period (net of ($57) and zero tax effect, respectively) | (170) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less: reclassification adjustments for amortization of unrealized losses on securities transferred to held to maturity (net of ($18) and zero tax effect, respectively) | (47) | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net change in unrealized losses on securities transferred to held to maturity, net of tax | (123) | 1 |
| &nbsp;&nbsp;Unrealized gains (losses) on securities available for sale: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unrealized losses on securities transferred to held to maturity during the period (net of $57 and zero tax effect, respectively) | 170 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unrealized holding gains (losses) arising during the period (net of $156 and $(105) tax effect, respectively) | 472 | (310) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less: reclassification adjustments for securities gains (losses) realized in net income (net of ($6) and ($25), respectively)  | (20) | (75) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net change in unrealized gains (losses) on securities available for sale, net of tax | 662 | (235) |
| &nbsp;&nbsp;Unrealized gains (losses) on derivative instruments designated as cash flow hedges: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unrealized holding gains (losses) on derivative instruments arising during the period (net of $105 and ($137) tax effect, respectively) | 309 | (400) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less: reclassification adjustments for gains (losses) on derivative instruments realized in net income (net of ($32) and ($60) tax effect, respectively) | (95) | (173) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net change in unrealized gains (losses) on derivative instruments, net of tax | 404 | (227) |
| &nbsp;&nbsp;Defined benefit pension plans and other post employment benefits: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net actuarial gains (losses) arising during the period (net of zero and zero tax effect, respectively) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less: reclassification adjustments for amortization of actuarial loss and settlements realized in net income (net of ($3) and($4) tax effect, respectively) | (9) | (8) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net change from defined benefit pension plans and other post employment benefits, net of tax | 9 | 8 |
| Other comprehensive income (loss), net of tax | 952 | (453) |
| Comprehensive income | $2005 | $416 |

---

See notes to consolidated financial statements.

------

<u>[**Table of Contents**](#i135e6d1bd40b43728f33de70f283fb9d_7)</u> 

**REGIONS FINANCIAL CORPORATION AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited)**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Shareholders' Equity** | **Shareholders' Equity** | **Shareholders' Equity** | **Shareholders' Equity** | **Shareholders' Equity** | **Shareholders' Equity** | **Shareholders' Equity** | **Shareholders' Equity** | **Shareholders' Equity** | |
| | **Preferred Stock** | **Preferred Stock** | **Common Stock** | **Common Stock** | **Additional<br>Paid-In<br>Capital** | **Retained<br>Earnings** | **Treasury<br>Stock,<br>At Cost** | **Accumulated<br>Other<br>Comprehensive<br>Income (Loss), Net** | **Total** | **Non-<br>controlling<br>Interest** |
| | **Shares** | **Amount** | **Shares** | **Amount** | **Additional<br>Paid-In<br>Capital** | **Retained<br>Earnings** | **Treasury<br>Stock,<br>At Cost** | **Accumulated<br>Other<br>Comprehensive<br>Income (Loss), Net** | **Total** | **Non-<br>controlling<br>Interest** |
| | **(In millions, except per share data)** | **(In millions, except per share data)** | **(In millions, except per share data)** | **(In millions, except per share data)** | **(In millions, except per share data)** | **(In millions, except per share data)** | **(In millions, except per share data)** | **(In millions, except per share data)** | **(In millions, except per share data)** | |
| **BALANCE AT JANUARY 1, 2024** | 2 | $1659 | 924 | $10 | $11757 | $8186 | $(1371) | $(2812) | $17429 | $64 |
| Cumulative effect from change in accounting guidance |  |  |  |  |  | (5) |  |  | (5) |  |
| Net income |  |  |  |  |  | 368 |  |  | 368 |  |
| Other comprehensive income (loss), net of tax |  |  |  |  |  |  |  | (412) | (412) |  |
| Cash dividends declared |  |  |  |  |  | (220) |  |  | (220) |  |
| Preferred stock dividends |  |  |  |  |  | (25) |  |  | (25) |  |
| Impact of common stock share repurchases |  |  | (6) |  | (102) |  |  |  | (102) |  |
| Impact of common stock transactions under compensation plans, net |  |  |  |  | 11 |  |  |  | 11 |  |
| Other |  |  |  |  |  |  |  |  |  | (30) |
| **BALANCE AT MARCH 31, 2024** | 2 | $1659 | 918 | $10 | $11666 | $8304 | $(1371) | $(3224) | $17044 | $34 |
| **BALANCE AT APRIL 1, 2024** | 2 | $1659 | 918 | $10 | $11666 | $8304 | $(1371) | $(3224) | $17044 | $34 |
| Net income |  |  |  |  |  | 501 |  |  | 501 |  |
| Other comprehensive income (loss), net of tax |  |  |  |  |  |  |  | (41) | (41) |  |
| Cash dividends declared |  |  |  |  |  | (220) |  |  | (220) |  |
| Preferred stock dividends |  |  |  |  |  | (24) |  |  | (24) |  |
| Impact of common stock share repurchases |  |  | (4) |  | (87) |  |  |  | (87) |  |
| Impact of common stock transactions under compensation plans, net |  |  | 1 |  | (4) |  |  |  | (4) |  |
| Other |  |  |  |  |  |  |  |  |  | $(1) |
| **BALANCE AT JUNE 30, 2024** | 2 | $1659 | 915 | $10 | $11575 | $8561 | $(1371) | $(3265) | $17169 | $33 |
| **BALANCE AT JANUARY 1, 2025** | 2 | $1715 | 909 | $9 | $11394 | $9060 | $(1371) | $(2928) | $17879 | $31 |
| Net income |  |  |  |  |  | 490 |  |  | 490 |  |
| Other comprehensive income, net of tax |  |  |  |  |  |  |  | 636 | 636 |  |
| Cash dividends declared |  |  |  |  |  | (226) |  |  | (226) |  |
| Preferred stock dividends |  |  |  |  |  | (25) |  |  | (25) |  |
| Impact of common stock share repurchases |  |  | (10) |  | (242) |  |  |  | (242) |  |
| Impact of common stock transactions under compensation plans, net |  |  |  |  | 9 |  |  |  | 9 |  |
| Other |  |  |  |  |  |  |  | 9 | 9 | 6 |
| **BALANCE AT MARCH 31, 2025** | 2 | $1715 | 899 | $9 | $11161 | $9299 | $(1371) | $(2283) | $18530 | $37 |
| **BALANCE AT APRIL 1, 2025** | 2 | $1715 | 899 | $9 | $11161 | $9299 | $(1371) | $(2283) | $18530 | $37 |
| Net income |  |  |  |  |  | 563 |  |  | 563 |  |
| Other comprehensive income (loss), net of tax |  |  |  |  |  |  |  | 316 | 316 |  |
| Cash dividends declared |  |  |  |  |  | (224) |  |  | (224) |  |
| Preferred stock dividends |  |  |  |  |  | (25) |  |  | (25) |  |
| Redemption of Series D preferred stock | (1) | (346) |  |  |  | (4) |  |  | (350) |  |
| Impact of common stock share repurchases |  |  | (7) |  | (144) |  |  |  | (144) |  |
| Impact of common stock transactions under compensation plans, net |  |  | 2 |  |  |  |  |  |  |  |
| Other |  |  |  |  |  |  |  |  |  | 3 |
| **BALANCE AT JUNE 30, 2025** | 1 | $1369 | 894 | $9 | $11017 | $9609 | $(1371) | $(1967) | $18666 | $40 |

---

See notes to consolidated financial statements.

------

<u>[**Table of Contents**](#i135e6d1bd40b43728f33de70f283fb9d_7)</u> 

**REGIONS FINANCIAL CORPORATION AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)**

---

| | | |
|:---|:---|:---|
| | **Six Months Ended June 30** | **Six Months Ended June 30** |
| | **2025** | **2024** |
| | **(In millions)** | **(In millions)** |
| Operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income | $1053 | $869 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments to reconcile net income to net cash from operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for credit losses | 250 | 254 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation, amortization and accretion, net | 41 | 89 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Securities (gains) losses, net | 26 | 100 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income tax expense | 17 | 48 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Originations and purchases of loans held for sale | (2491) | (2813) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sales of loans held for sale | 2585 | 2663 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Gain) loss on sale of loans, net | (23) | (25) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net change in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other earning assets | (66) | (427) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest receivable and other assets | 611 | (249) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other liabilities | (353) | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | (11) | 33 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash from operating activities | 1639 | 557 |
| Investing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from maturities of debt securities held to maturity | 288 | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sales of debt securities available for sale | 615 | 2199 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from maturities of debt securities available for sale | 1558 | 1480 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchases of debt securities available for sale | (3987) | (4517) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net (payments for) proceeds from bank-owned life insurance | 3 | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sales of loans | 190 | 26 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchases of loans | (187) | (439) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net change in loans | (274) | 1134 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchases of mortgage servicing rights | (19) | (126) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net purchases of other assets | (169) | (47) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash from investing activities | (1982) | (262) |
| Financing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net change in deposits | 3316 | (1172) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net change in short-term borrowings | (500) | 513 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from long-term borrowings |  | 2746 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payments on long-term borrowings | (750) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash dividends on common stock | (453) | (442) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash dividends on preferred stock | (50) | (49) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payment for redemption of preferred stock | (350) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Repurchases of common stock | (386) | (189) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Taxes paid related to net share settlement of equity awards | (21) | (24) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash from financing activities | 806 | 1383 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net change in cash and cash equivalents | 463 | 1678 |
| Cash and cash equivalents at beginning of year | 10712 | 6801 |
| Cash and cash equivalents at end of period | $11175 | $8479 |

---

See notes to consolidated financial statements.

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<u>[**Table of Contents**](#i135e6d1bd40b43728f33de70f283fb9d_7)</u> 

**REGIONS FINANCIAL CORPORATION AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Unaudited)**

**NOTE 1. BASIS OF PRESENTATION** 

Regions Financial Corporation ("Regions" or the "Company") provides a full range of banking and bank-related services to individual and corporate customers through its subsidiaries and branch offices located across the South, Midwest and Texas as well as delivering specialty capabilities nationwide. Regions is subject to the regulations of certain government agencies and undergoes periodic examinations by certain regulatory authorities.

The accounting and reporting policies of Regions and the methods of applying those policies that materially affect the consolidated financial statements conform with GAAP and with general financial services industry practices. The accompanying interim financial statements have been prepared in accordance with the instructions for Form 10-Q and, therefore, do not include all information and notes to the consolidated financial statements necessary for a complete presentation of financial position, results of operations, comprehensive income (loss) and cash flows in conformity with GAAP. In the opinion of management, all adjustments, consisting of normal and recurring items, necessary for the fair presentation of the consolidated financial statements have been included. These interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto in Regions' Annual Report on Form 10-K for the year ended December 31, 2024. Regions has evaluated all subsequent events for potential recognition and disclosure through the filing date of this Form 10-Q.

During 2025, the Company adopted new accounting guidance. See Note 13 for related disclosures.

**NOTE 2. VARIABLE INTEREST ENTITIES** 

Regions is involved in various entities that are considered to be VIEs, as defined by authoritative accounting literature. Generally, a VIE is a corporation, partnership, trust or other legal structure that either does not have equity investors with substantive voting rights or has equity investors that do not provide sufficient financial resources for the entity to support its activities. The following discusses the VIEs in which Regions has a significant interest.

Regions periodically invests in various limited partnerships that sponsor affordable housing projects and economic development projects, which then provide tax credits to Regions. These investments are funded through a combination of debt and equity. These partnerships meet the definition of a VIE and are collectively referred to as tax credit investments in the table below. Due to the nature of the management activities of the general partner, Regions is not the primary beneficiary of these partnerships. Refer to Note 1 "Summary of Significant Accounting Policies" in the Annual Report on Form 10-K for the year ended December 31, 2024 for additional details. Additionally, Regions has loans or letters of credit commitments with certain limited partnerships. The funded portion of the loans and letters of credit are classified as commercial and industrial loans or investor real estate loans as applicable in Note 4.

A summary of Regions' tax credit investments and related loans and letters of credit, representing Regions' maximum exposure to loss, is as follows:

---

| | | |
|:---|:---|:---|
| | **June 30, 2025** | **December 31, 2024** |
| | **(In millions)** | **(In millions)** |
| Tax credit investments included in other assets | $1529 | $1471 |
| Unfunded tax credit commitments included in other liabilities | 515 | 590 |
| Loans and letters of credit commitments | 568 | 663 |
| Funded portion of loans and letters of credit commitments | 302 | 336 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30** | **Three Months Ended June 30** | **Six Months Ended June 30** | **Six Months Ended June 30** |
| | **2025** | **2024** | **2025** | **2024** |
| | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** |
| Tax credits and other tax benefits recognized | $58 | $61 | $112 | $116 |
| Tax credit amortization expense included in income tax expense | 48 | 47 | 95 | 93 |

---

In addition to the investments discussed above, Regions also syndicates affordable housing investments. In these syndication transactions, Regions creates affordable housing funds in which a subsidiary is the general partner or managing member and sells limited partnership interests to third parties. Regions' general partner or managing member interest represents an insignificant interest in the affordable housing fund. The affordable housing funds meet the definition of a VIE. As Regions is not the primary beneficiary and does not have a significant interest, these investments are not consolidated. At June 30, 2025 and December 31, 2024, the value of Regions' general partnership interest in affordable housing investments was immaterial.

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<u>[**Table of Contents**](#i135e6d1bd40b43728f33de70f283fb9d_7)</u> 

**NOTE 3. DEBT SECURITIES**

The amortized cost, gross unrealized gains and losses, and estimated fair value of debt securities held to maturity and debt securities available for sale are as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
|  | | **Recognized in OCI** <sup>(1)</sup> | **Recognized in OCI** <sup>(1)</sup> | | **Not recognized in OCI** | **Not recognized in OCI** | |
|  | <br>**Amortized<br>Cost** | **Gross Unrealized Gains** | **Gross Unrealized Losses** | <br>**Carrying Value** | **Gross<br>Unrealized<br>Gains** | **Gross<br>Unrealized<br>Losses** | <br>**Estimated<br>Fair<br>Value** |
|  | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** |
| **Debt securities held to maturity:** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Mortgage-backed securities: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Residential agency | $6416 | $— | $(905) | $5511 | $— | $(147) | $5364 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial agency | 461 |  |  | 461 |  | (11) | 450 |
|  | $6877 | $— | $(905) | $5972 | $— | $(158) | $5814 |
| **Debt securities available for sale:** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. Treasury securities | $2166 | $9 | $(70) | $2105 |  |  | $2105 |
| &nbsp;&nbsp;&nbsp;&nbsp;Federal agency securities | 491 | 6 | (10) | 487 |  |  | 487 |
| &nbsp;&nbsp;&nbsp;&nbsp;Obligations of states and political subdivisions | 2 |  |  | 2 |  |  | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Mortgage-backed securities: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Residential agency | 19384 | 79 | (907) | 18556 |  |  | 18556 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial agency | 4710 | 17 | (191) | 4536 |  |  | 4536 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial non-agency | 92 |  | (9) | 83 |  |  | 83 |
| &nbsp;&nbsp;&nbsp;&nbsp;Corporate and other debt securities | 566 | 5 | (7) | 564 |  |  | 564 |
|  | $27411 | $116 | $(1194) | $26333 |  |  | $26333 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| | | **Recognized in OCI** <sup>(1)</sup> | **Recognized in OCI** <sup>(1)</sup> | | **Not recognized in OCI** | **Not recognized in OCI** | |
| |<br>**Amortized<br>Cost** | **Gross Unrealized Gains** | **Gross Unrealized Losses** |<br>**Carrying Value** | **Gross<br>Unrealized<br>Gains** | **Gross<br>Unrealized<br>Losses** |<br>**Estimated<br>Fair<br>Value** |
| | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** |
| **Debt securities held to maturity:** | | | | | | | |
| &nbsp;&nbsp;&nbsp;&nbsp;Mortgage-backed securities: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Residential agency | $4663 | $— | $(743) | $3920 | $— | $(186) | $3734 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial agency | 507 |  |  | 507 |  | (15) | 492 |
|  | $5170 | $— | $(743) | $4427 | $— | $(201) | $4226 |
| **Debt securities available for sale:** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. Treasury securities | $2088 | $2 | $(87) | $2003 |  |  | $2003 |
| &nbsp;&nbsp;&nbsp;&nbsp;Federal agency securities | 460 | 1 | (17) | 444 |  |  | 444 |
| &nbsp;&nbsp;&nbsp;&nbsp;Obligations of states and political subdivisions | 2 |  |  | 2 |  |  | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Mortgage-backed securities: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Residential agency | 20482 | 20 | (1557) | 18945 |  |  | 18945 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial agency | 4389 | 1 | (300) | 4090 |  |  | 4090 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial non-agency | 92 |  | (10) | 82 |  |  | 82 |
| &nbsp;&nbsp;&nbsp;&nbsp;Corporate and other debt securities | 670 | 2 | (14) | 658 |  |  | 658 |
|  | $28183 | $26 | $(1985) | $26224 |  |  | $26224 |

---

_________

(1)Debt securities held to maturity gross unrealized losses recognized in OCI resulted from transfers of securities available for sale.

The Company utilizes interest rate swap agreements to manage interest rate exposure on certain of the Company's fixed-rate prepayable and non-prepayable debt securities available for sale. See Note 9 for additional information.

The Company reclassified debt securities with an amortized cost, excluding items recognized in OCI, of $1.0 billion in each of the first and second quarters of 2025, for a total of $2.0 billion from available for sale to held to maturity. The Company determined it has both the positive intent and ability to hold these debt securities to maturity. The debt securities were transferred at amortized cost, in addition to the amount of any remaining unrealized holding gain or loss reported in AOCI, and represented a non-cash transaction. OCI included net pre-tax unrealized losses of $153 million and $74 million in the first and

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<u>[**Table of Contents**](#i135e6d1bd40b43728f33de70f283fb9d_7)</u> 

second quarter, respectively, at the date of transfer and the offsetting OCI components are being amortized into net interest income over the remaining life of the related debt securities as a yield adjustment, resulting in no impact on future net income.

Debt securities with carrying values of $22.0 billion and $20.9 billion at June 30, 2025 and December 31, 2024, respectively, were pledged to secure public funds, trust deposits and other borrowing arrangements.

The amortized cost and estimated fair value of debt securities held to maturity and debt securities available for sale at June 30, 2025, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

---

| | | |
|:---|:---|:---|
| | **Amortized<br>Cost** | **Estimated<br>Fair Value** |
| | **(In millions)** | **(In millions)** |
| **Debt securities held to maturity:** | | |
| &nbsp;&nbsp;&nbsp;&nbsp;Mortgage-backed securities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Residential agency | $6416 | $5364 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial agency | 461 | 450 |
|  | $6877 | $5814 |
| **Debt securities available for sale:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Due in one year or less | $441 | $436 |
| &nbsp;&nbsp;&nbsp;&nbsp;Due after one year through five years | 1895 | 1851 |
| &nbsp;&nbsp;&nbsp;&nbsp;Due after five years through ten years | 815 | 800 |
| &nbsp;&nbsp;&nbsp;&nbsp;Due after ten years | 74 | 71 |
| &nbsp;&nbsp;&nbsp;&nbsp;Mortgage-backed securities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Residential agency | 19384 | 18556 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial agency | 4710 | 4536 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial non-agency | 92 | 83 |
|  | $27411 | $26333 |

---

The following tables present gross unrealized losses and the related estimated fair value of debt securities held to maturity and debt securities available for sale at June 30, 2025 and December 31, 2024. For debt securities transferred to held to maturity from available for sale, the analysis in the tables below compares the debt securities' original amortized cost to its current estimated fair value. All debt securities in an unrealized position are segregated between investments that have been in a continuous unrealized loss position for less than twelve months and for twelve months or more.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
| | **Less Than Twelve Months** | **Less Than Twelve Months** | **Twelve Months or More** | **Twelve Months or More** | **Total** | **Total** |
| | **Estimated<br>Fair<br>Value** | **Gross<br>Unrealized<br>Losses** | **Estimated<br>Fair<br>Value** | **Gross<br>Unrealized<br>Losses** | **Estimated<br>Fair<br>Value** | **Gross<br>Unrealized<br>Losses** |
| | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** |
| **Debt securities held to maturity:** | | | | | | |
| &nbsp;&nbsp;&nbsp;&nbsp;Mortgage-backed securities: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Residential agency | $199 | $(3) | $5165 | $(1049) | $5364 | $(1052) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial agency |  |  | 447 | (11) | 447 | (11) |
|  | $199 | $(3) | $5612 | $(1060) | $5811 | $(1063) |
| **Debt securities available for sale:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S Treasury securities | $517 | $(19) | $1030 | $(51) | $1547 | $(70) |
| &nbsp;&nbsp;&nbsp;&nbsp;Federal agency securities | 75 | (1) | 184 | (9) | 259 | (10) |
| &nbsp;&nbsp;&nbsp;&nbsp;Mortgage-backed securities: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Residential agency | 5021 | (102) | 7485 | (805) | 12506 | (907) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial agency | 801 | (26) | 2625 | (165) | 3426 | (191) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial non-agency |  |  | 83 | (9) | 83 | (9) |
| &nbsp;&nbsp;&nbsp;&nbsp;Corporate and other debt securities | 5 |  | 256 | (7) | 261 | (7) |
|  | $6419 | $(148) | $11663 | $(1046) | $18082 | $(1194) |

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<u>[**Table of Contents**](#i135e6d1bd40b43728f33de70f283fb9d_7)</u> 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| | **Less Than Twelve Months** | **Less Than Twelve Months** | **Twelve Months or More** | **Twelve Months or More** | **Total** | **Total** |
| | **Estimated<br>Fair<br>Value** | **Gross<br>Unrealized<br>Losses** | **Estimated<br>Fair<br>Value** | **Gross<br>Unrealized<br>Losses** | **Estimated<br>Fair<br>Value** | **Gross<br>Unrealized<br>Losses** |
| | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** |
| **Debt securities held to maturity:** | | | | | | |
| &nbsp;&nbsp;&nbsp;&nbsp;Mortgage-backed securities: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Residential agency | $— | $— | $3734 | $(929) | $3734 | $(929) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial agency |  |  | 492 | (15) | 492 | (15) |
|  | $— | $— | $4226 | $(944) | $4226 | $(944) |
| **Debt securities available for sale:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. Treasury securities | $612 | $(14) | $1033 | $(73) | $1645 | $(87) |
| &nbsp;&nbsp;&nbsp;&nbsp;Federal agency securities | 155 | (3) | 195 | (14) | 350 | (17) |
| &nbsp;&nbsp;&nbsp;&nbsp;Mortgage-backed securities: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Residential agency | 8012 | (203) | 9605 | (1354) | 17617 | (1557) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial agency | 1043 | (35) | 2991 | (265) | 4034 | (300) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial non-agency |  |  | 82 | (10) | 82 | (10) |
| &nbsp;&nbsp;&nbsp;&nbsp;Corporate and other debt securities | 59 | (1) | 397 | (13) | 456 | (14) |
|  | $9881 | $(256) | $14303 | $(1729) | $24184 | $(1985) |

---

The number of individual debt security positions in an unrealized loss position in the tables above decreased to 1,531 at June 30, 2025 from 1,722 at December 31, 2024. The decrease in the total amount of unrealized losses was impacted by changes in market interest rates. In instances where an unrealized loss existed, there was no indication of an adverse change in credit on the underlying positions in the tables above. As it relates to these positions, management believes no individual unrealized loss represented credit impairment as of those dates. At June 30, 2025, the Company does not intend to sell, and it is not more likely than not that the Company will be required to sell, the positions before the recovery of their amortized cost bases, which may be at maturity.

Gross realized losses on sales of debt securities available for sale totaled $27 million and gross realized gains totaled $1 million resulting in a recognized net realized loss of $26 million for the six months ended June 30, 2025. These amounts were immaterial for the three months ended June 30, 2025. Gross realized losses on sales of debt securities available for sale totaled $50 million and $100 million, respectively, and gross realized gains were immaterial for both the three and six months ended June 30, 2024. The cost of debt securities sold is based on the specific identification method. As part of the Company's normal process for evaluating impairment, including credit-related impairment, impairment identified by management was immaterial for both the three and six months ended June 30, 2025 and 2024.

**NOTE 4. LOANS AND THE ALLOWANCE FOR CREDIT LOSSES** 

**LOANS**

The following table presents the distribution of Regions' loan portfolio by segment and class, net of unearned income:

---

| | | |
|:---|:---|:---|
| | **June 30, 2025** | **December 31, 2024** |
| | **(In millions)** | **(In millions)** |
| Commercial and industrial | $49586 | $49671 |
| Commercial real estate mortgage—owner-occupied | 4890 | 4841 |
| Commercial real estate construction—owner-occupied | 275 | 333 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total commercial | 54751 | 54845 |
| Commercial investor real estate mortgage | 6949 | 6567 |
| Commercial investor real estate construction | 2149 | 2143 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total investor real estate | 9098 | 8710 |
| Residential first mortgage | 20020 | 20094 |
| Home equity lines | 3184 | 3150 |
| Home equity loans | 2352 | 2390 |
| Consumer credit card | 1415 | 1445 |
| Other consumer <sup>(1)</sup> | 5903 | 6093 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total consumer | 32874 | 33172 |
| Total loans, net of unearned income | $96723 | $96727 |

---

______

(1) Starting in 2025, other consumer loans also includes exit portfolios, which were previously presented separately. The portfolio consists primarily of indirect auto loans, and presentation of prior periods has been conformed accordingly.

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<u>[**Table of Contents**](#i135e6d1bd40b43728f33de70f283fb9d_7)</u> 

**ALLOWANCE FOR CREDIT LOSSES** 

Regions determines the appropriate level of the allowance on a quarterly basis. Refer to Note 1 "Summary of Significant Accounting Policies" in the Annual Report on Form 10-K for the year ended December 31, 2024, for a description of the methodology.

**ROLLFORWARD OF ALLOWANCE FOR CREDIT LOSSES** 

The following tables present analyses of the allowance for credit losses by portfolio segment for three and six months ended June 30, 2025, and 2024.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** |
| | **Commercial** | **Investor Real<br>Estate** | **Consumer** | **Total** |
| | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** |
| Allowance for loan losses, April 1, 2025 | $745 | $236 | $632 | $1613 |
| Provision for loan losses | 62 |  | 50 | 112 |
| Loan losses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Charge-offs | (70) | (2) | (61) | (133) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Recoveries | 10 |  | 10 | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net loan losses | (60) | (2) | (51) | (113) |
| Allowance for loan losses, June 30, 2025 | 747 | 234 | 631 | 1612 |
| Reserve for unfunded credit commitments, April 1, 2025 | 91 | 8 | 18 | 117 |
| Provision for unfunded credit commitments | 8 | 5 | 1 | 14 |
| Reserve for unfunded credit commitments, June 30, 2025 | 99 | 13 | 19 | 131 |
| Allowance for credit losses, June 30, 2025 | $846 | $247 | $650 | $1743 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** |
| | **Commercial** | **Investor Real<br>Estate** | **Consumer** | **Total** |
| | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** |
| Allowance for loan losses, April 1, 2024 | $756 | $211 | $650 | $1617 |
| Provision for loan losses | 31 | 21 | 53 | 105 |
| Loan losses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Charge-offs | (61) |  | (62) | (123) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Recoveries | 10 | 1 | 11 | 22 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net loan (losses) recoveries | (51) | 1 | (51) | (101) |
| Allowance for loan losses, June 30, 2024 | 736 | 233 | 652 | 1621 |
| Reserve for unfunded credit commitments, April 1, 2024 | 87 | 10 | 17 | 114 |
| Provision for (benefit from) unfunded credit commitments | (2) | (2) | 1 | (3) |
| Reserve for unfunded credit commitments, June 30, 2024 | 85 | 8 | 18 | 111 |
| Allowance for credit losses, June 30, 2024 | $821 | $241 | $670 | $1732 |

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<u>[**Table of Contents**](#i135e6d1bd40b43728f33de70f283fb9d_7)</u> 

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** |
| | **Commercial** | **Investor Real<br>Estate** | **Consumer** | **Total** |
| | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** |
| Allowance for loan losses, January 1, 2025 | $743 | $240 | $630 | $1613 |
| Provision for loan losses | 111 | 18 | 106 | 235 |
| Loan losses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Charge-offs | (129) | (24) | (125) | (278) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Recoveries | 22 |  | 20 | 42 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net loan losses | (107) | (24) | (105) | (236) |
| Allowance for loan losses, June 30, 2025 | 747 | 234 | 631 | 1612 |
| Reserve for unfunded credit commitments, January 1, 2025 | 91 | 7 | 18 | 116 |
| Provision for (benefit from) unfunded credit losses | 8 | 6 | 1 | 15 |
| Reserve for unfunded credit commitments, June 30, 2025 | 99 | 13 | 19 | 131 |
| Allowance for credit losses, June 30, 2025 | $846 | $247 | $650 | $1743 |

---

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** |
| | **Commercial** | **Investor Real<br>Estate** | **Consumer** | **Total** |
| | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** |
| Allowance for loan losses, January 1, 2024 | $722 | $192 | $662 | $1576 |
| Provision for loan losses | 119 | 44 | 104 | 267 |
| Loan losses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Charge-offs | (123) | (5) | (136) | (264) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Recoveries | 18 | 2 | 22 | 42 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net loan (losses) recoveries | (105) | (3) | (114) | (222) |
| Allowance for loan losses, June 30, 2024 | 736 | 233 | 652 | 1621 |
| Reserve for unfunded credit commitments, January 1, 2024 | 92 | 13 | 19 | 124 |
| Provision for (benefit from) unfunded credit losses | (7) | (5) | (1) | (13) |
| Reserve for unfunded credit commitments, June 30, 2024 | 85 | 8 | 18 | 111 |
| Allowance for credit losses, June 30, 2024 | $821 | $241 | $670 | $1732 |

---

**PORTFOLIO SEGMENT RISK FACTORS**

Regions' portfolio segments are commercial, investor real estate, and consumer. Classes within each segment present unique credit risks. Refer to Note 5 "Allowance for Credit Losses" in the Annual Report on Form 10-K for the year ended December 31, 2024 for information regarding Regions' portfolio segments and related classes, as well as the risks specific to each.

**CREDIT QUALITY INDICATORS**

The commercial and investor real estate portfolio segments' primary credit quality indicator is internal risk ratings which are detailed by categories related to underlying credit quality and probability of default. Regions assigns these risk ratings at loan origination and reviews the relationship utilizing a risk-based approach on, at minimum, an annual basis or at any time management becomes aware of information affecting the borrowers' ability to fulfill their obligations. Both quantitative and qualitative factors are considered in this review process. Refer to Note 5 "Allowance for Credit Losses" in the Annual Report on Form 10-K for the year ended December 31, 2024 for information regarding commercial risk ratings.

Regions' consumer portfolio segment has various classes that present unique credit risks. Regions considers factors such as periodic updates of FICO scores, accrual status, days past due status, unemployment rates, home prices, and geography as credit quality indicators for the consumer loan portfolio. FICO scores are obtained at origination as part of Regions' formal underwriting process. Refreshed FICO scores are obtained by the Company quarterly for most consumer loans, including residential first mortgage loans. Current FICO data is not available for certain loans in the portfolio for various reasons; for example, if customers do not use sufficient credit, an updated score may not be available. These categories are utilized to develop the associated allowance for credit losses. The higher the FICO score the less probability of default and vice versa.

The following tables present applicable credit quality indicators for the loan portfolio segments and classes, excluding loans held for sale and gross charge-offs, by vintage year as of June 30, 2025 and December 31, 2024. Regions defines the vintage date for the purposes of disclosure as the date of the most recent credit decision. In general, renewals that are categorized as new credit decisions reflect the renewal date as the vintage date. Classes in the commercial and investor real estate portfolio segments are disclosed by risk rating. Classes in the consumer portfolio segment are disclosed by current FICO

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<u>[**Table of Contents**](#i135e6d1bd40b43728f33de70f283fb9d_7)</u> 

scores. Refer to Note 5 "Allowance for Credit Losses" in the Annual Report on Form 10-K for the year ended December 31, 2024 for more information regarding Regions' credit quality indicators.

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |  |  |  |  |
| | **Term Loans** | **Term Loans** | **Term Loans** | **Term Loans** | **Term Loans** | **Term Loans** | **Revolving Loans** | **Revolving Loans Converted to Amortizing** | **Other** <sup>(1)</sup> | **Total** |  |  |  |  |
| | **2025** | **2024** | **2023** | **2022** | **2021** | **Prior** | **Revolving Loans** | **Revolving Loans Converted to Amortizing** | **Other** <sup>(1)</sup> | **Total** | | | | |
| | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** | **Revolving Loans** | **Revolving Loans Converted to Amortizing** | **Other** <sup>(1)</sup> | **Total** |
| | Commercial and industrial: | Commercial and industrial: | Commercial and industrial: | Commercial and industrial: | Commercial and industrial: | Commercial and industrial: | Commercial and industrial: | Commercial and industrial: | Commercial and industrial: | Commercial and industrial: |  |  |  |  |
| &nbsp;&nbsp;Risk rating: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Pass | $4815 | $7082 | $3662 | $5010 | $2537 | $4181 | $19665 | $— | $101 | $47053 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Special Mention | 32 | 93 | 235 | 70 | 50 | 26 | 315 |  |  | 821 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Substandard Accrual | 43 | 112 | 271 | 231 | 32 | 76 | 556 |  |  | 1321 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-accrual | 30 | 56 | 71 | 75 | 35 | 10 | 114 |  |  | 391 |  |  |  |  |
| Total commercial and industrial | $4920 | $7343 | $4239 | $5386 | $2654 | $4293 | $20650 | $— | $101 | $49586 |  |  |  |  |
| Commercial real estate mortgage—owner-occupied: | Commercial real estate mortgage—owner-occupied: | Commercial real estate mortgage—owner-occupied: | Commercial real estate mortgage—owner-occupied: | Commercial real estate mortgage—owner-occupied: | Commercial real estate mortgage—owner-occupied: | Commercial real estate mortgage—owner-occupied: | Commercial real estate mortgage—owner-occupied: | Commercial real estate mortgage—owner-occupied: | Commercial real estate mortgage—owner-occupied: | Commercial real estate mortgage—owner-occupied: |  |  |  |  |
| &nbsp;&nbsp;Risk rating: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Pass | $356 | $794 | $650 | $751 | $718 | $1138 | $103 | $— | $(5) | $4505 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Special Mention | 2 | 9 | 18 | 63 | 36 | 64 | 2 |  |  | 194 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Substandard Accrual | 34 | 23 | 7 | 16 | 27 | 33 | 6 |  |  | 146 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-accrual | 1 | 1 | 1 | 5 | 16 | 21 |  |  |  | 45 |  |  |  |  |
| Total commercial real estate mortgage—owner-occupied: | $393 | $827 | $676 | $835 | $797 | $1256 | $111 | $— | $(5) | $4890 |  |  |  |  |
| Commercial real estate construction—owner-occupied: | Commercial real estate construction—owner-occupied: | Commercial real estate construction—owner-occupied: | Commercial real estate construction—owner-occupied: | Commercial real estate construction—owner-occupied: | Commercial real estate construction—owner-occupied: | Commercial real estate construction—owner-occupied: | Commercial real estate construction—owner-occupied: | Commercial real estate construction—owner-occupied: | Commercial real estate construction—owner-occupied: | Commercial real estate construction—owner-occupied: |  |  |  |  |
| &nbsp;&nbsp;Risk rating: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Pass | $48 | $50 | $28 | $32 | $22 | $48 | $8 | $— | $— | $236 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Special Mention | 1 | 18 | 6 | 8 | 1 |  |  |  |  | 34 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Substandard Accrual | 1 | 1 |  |  |  | 2 |  |  |  | 4 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-accrual |  |  |  |  |  | 1 |  |  |  | 1 |  |  |  |  |
| Total commercial real estate construction—owner-occupied: | $50 | $69 | $34 | $40 | $23 | $51 | $8 | $— | $— | $275 |  |  |  |  |
| Total commercial | $5363 | $8239 | $4949 | $6261 | $3474 | $5600 | $20769 | $— | $96 | $54751 |  |  |  |  |
| Commercial investor real estate mortgage: | Commercial investor real estate mortgage: | Commercial investor real estate mortgage: | Commercial investor real estate mortgage: | Commercial investor real estate mortgage: | Commercial investor real estate mortgage: | Commercial investor real estate mortgage: | Commercial investor real estate mortgage: | Commercial investor real estate mortgage: | Commercial investor real estate mortgage: | Commercial investor real estate mortgage: |  |  |  |  |
| &nbsp;&nbsp;Risk rating: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Pass | $1503 | $1124 | $381 | $1391 | $474 | $224 | $411 | $— | $(4) | $5504 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Special Mention | 236 | 28 | 75 | 230 | 1 |  | 31 |  |  | 601 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Substandard Accrual | 142 | 46 |  | 184 | 99 | 30 | 60 |  |  | 561 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-accrual |  | 164 | 34 | 51 |  | 10 | 24 |  |  | 283 |  |  |  |  |
| Total commercial investor real estate mortgage | $1881 | $1362 | $490 | $1856 | $574 | $264 | $526 | $— | $(4) | $6949 |  |  |  |  |
| Commercial investor real estate construction: | Commercial investor real estate construction: | Commercial investor real estate construction: | Commercial investor real estate construction: | Commercial investor real estate construction: | Commercial investor real estate construction: | Commercial investor real estate construction: | Commercial investor real estate construction: | Commercial investor real estate construction: | Commercial investor real estate construction: | Commercial investor real estate construction: |  |  |  |  |
| &nbsp;&nbsp;Risk rating: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Pass | $43 | $480 | $482 | $216 | $— | $2 | $732 | $— | $(12) | $1943 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Special Mention | 59 | 13 |  | 126 |  |  | 8 |  |  | 206 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Substandard Accrual |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-accrual |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Total commercial investor real estate construction | $102 | $493 | $482 | $342 | $— | $2 | $740 | $— | $(12) | $2149 |  |  |  |  |
| Total investor real estate | $1983 | $1855 | $972 | $2198 | $574 | $266 | $1266 | $— | $(16) | $9098 |  |  |  |  |
| Residential first mortgage: | Residential first mortgage: | Residential first mortgage: | Residential first mortgage: | Residential first mortgage: | Residential first mortgage: | Residential first mortgage: | Residential first mortgage: | Residential first mortgage: | Residential first mortgage: | Residential first mortgage: |  |  |  |  |
| &nbsp;&nbsp;FICO scores: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Above 720 | $620 | $1212 | $1870 | $2643 | $3890 | $6350 | $— | $— | $— | $16585 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;681-720 | 48 | 99 | 169 | 212 | 255 | 477 |  |  |  | 1260 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;620-680 | 20 | 47 | 83 | 135 | 144 | 389 |  |  |  | 818 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Below 620 | 4 | 33 | 88 | 157 | 158 | 531 |  |  |  | 971 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Data not available | 19 | 27 | 23 | 15 | 32 | 95 | 2 |  | 173 | 386 |  |  |  |  |
| Total residential first mortgage | $711 | $1418 | $2233 | $3162 | $4479 | $7842 | $2 | $— | $173 | $20020 |  |  |  |  |

---

------

<u>[**Table of Contents**](#i135e6d1bd40b43728f33de70f283fb9d_7)</u> 

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| | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |  |  |  |  |
| | **Term Loans** | **Term Loans** | **Term Loans** | **Term Loans** | **Term Loans** | **Term Loans** | **Revolving Loans** | **Revolving Loans Converted to Amortizing** | | **Other** <sup>(1)</sup> | **Total** |  |  |  |  |
| | **2025** | **2024** | **2023** | **2022** | **2021** | **Prior** | **Revolving Loans** | **Revolving Loans Converted to Amortizing** | | **Other** <sup>(1)</sup> | **Total** | | | | |
| | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** | **Revolving Loans** | **Revolving Loans Converted to Amortizing** | **Other** <sup>(1)</sup> | **Total** |
| | Home equity lines: | Home equity lines: | Home equity lines: | Home equity lines: | Home equity lines: | Home equity lines: | Home equity lines: | Home equity lines: | Home equity lines: | Home equity lines: | Home equity lines: |  |  |  |  |
| &nbsp;&nbsp;FICO scores: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Above 720 | $— | $— | $— | $— | $— | $— | $2416 | $58 |  |  | $2474 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;681-720 |  |  |  |  |  |  | 339 | 11 | $— |  | 350 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;620-680 |  |  |  |  |  |  | 191 | 13 |  |  | 204 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Below 620 |  |  |  |  |  |  | 117 | 9 |  |  | 126 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Data not available |  |  |  |  |  |  | 1 |  |  | 29 | 30 |  |  |  |  |
| Total home equity lines | $— | $— | $— | $— | $— | $— | $3064 | $91 |  | $29 | $3184 |  |  |  |  |
| Home equity loans: | Home equity loans: | Home equity loans: | Home equity loans: | Home equity loans: | Home equity loans: | Home equity loans: | Home equity loans: | Home equity loans: | Home equity loans: | Home equity loans: | Home equity loans: |  |  |  |  |
| &nbsp;&nbsp;FICO scores: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Above 720 | $158 | $297 | $231 | $282 | $301 | $566 | $— | $— |  | $— | $1835 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;681-720 | 31 | 45 | 39 | 43 | 37 | 66 |  |  |  |  | 261 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;620-680 | 9 | 21 | 18 | 22 | 21 | 57 |  |  |  |  | 148 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Below 620 | 1 | 6 | 11 | 17 | 14 | 43 |  |  |  |  | 92 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Data not available |  |  |  |  |  |  |  |  |  | 16 | 16 |  |  |  |  |
| Total home equity loans | $199 | $369 | $299 | $364 | $373 | $732 | $— | $— |  | $16 | $2352 |  |  |  |  |
| Consumer credit card: | Consumer credit card: | Consumer credit card: | Consumer credit card: | Consumer credit card: | Consumer credit card: | Consumer credit card: | Consumer credit card: | Consumer credit card: | Consumer credit card: | Consumer credit card: | Consumer credit card: |  |  |  |  |
| &nbsp;&nbsp;FICO scores: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Above 720 | $— | $— | $— | $— | $— | $— | $835 | $— |  | $— | $835 |  |  |  |  |
| &nbsp;&nbsp;681-720 |  |  |  |  |  |  | 273 |  |  |  | 273 |  |  |  |  |
| &nbsp;&nbsp;620-680 |  |  |  |  |  |  | 228 |  |  |  | 228 |  |  |  |  |
| &nbsp;&nbsp;Below 620 |  |  |  |  |  |  | 114 |  |  |  | 114 |  |  |  |  |
| &nbsp;&nbsp;Data not available |  |  |  |  |  |  | 5 |  |  | (40) | (35) |  |  |  |  |
| Total consumer credit card | $— | $— | $— | $— | $— | $— | $1455 | $— |  | $(40) | $1415 |  |  |  |  |
| Other consumer<sup>(2)</sup>: | Other consumer<sup>(2)</sup>: | Other consumer<sup>(2)</sup>: | Other consumer<sup>(2)</sup>: | Other consumer<sup>(2)</sup>: | Other consumer<sup>(2)</sup>: | Other consumer<sup>(2)</sup>: | Other consumer<sup>(2)</sup>: | Other consumer<sup>(2)</sup>: | Other consumer<sup>(2)</sup>: | Other consumer<sup>(2)</sup>: | Other consumer<sup>(2)</sup>: |  |  |  |  |
| &nbsp;&nbsp;FICO scores: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Above 720 | $387 | $750 | $895 | $1224 | $371 | $387 | $112 | $— |  | $— | $4126 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;681-720 | 53 | 136 | 160 | 245 | 84 | 73 | 61 |  |  |  | 812 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;620-680 | 27 | 74 | 93 | 170 | 58 | 50 | 47 |  |  |  | 519 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Below 620 | 5 | 25 | 48 | 111 | 36 | 30 | 32 |  |  |  | 287 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Data not available | 76 | 4 | 4 | 9 | 6 | 149 |  |  |  | (89) | 159 |  |  |  |  |
| Total other consumer | $548 | $989 | $1200 | $1759 | $555 | $689 | $252 | $— |  | $(89) | $5903 |  |  |  |  |
| Total consumer loans | $1458 | $2776 | $3732 | $5285 | $5407 | $9263 | $4773 | $91 |  | $89 | $32874 |  |  |  |  |
| Total Loans | $8804 | $12870 | $9653 | $13744 | $9455 | $15129 | $26808 | $91 |  | $169 | $96723 |  |  |  |  |

---

------

<u>[**Table of Contents**](#i135e6d1bd40b43728f33de70f283fb9d_7)</u> 

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| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |  |  |  |  |
| | **Term Loans** | **Term Loans** | **Term Loans** | **Term Loans** | **Term Loans** | **Term Loans** | **Revolving Loans** | **Revolving Loans Converted to Amortizing** | **Other** <sup>(1)</sup> | **Total** |  |  |  |  |
| | **2024** | **2023** | **2022** | **2021** | **2020** | **Prior** | **Revolving Loans** | **Revolving Loans Converted to Amortizing** | **Other** <sup>(1)</sup> | **Total** | | | | |
| | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** | **Revolving Loans** | **Revolving Loans Converted to Amortizing** | **Other** <sup>(1)</sup> | **Total** |
| | Commercial and industrial: | Commercial and industrial: | Commercial and industrial: | Commercial and industrial: | Commercial and industrial: | Commercial and industrial: | Commercial and industrial: | Commercial and industrial: | Commercial and industrial: | Commercial and industrial: |  |  |  |  |
| &nbsp;&nbsp;Risk rating: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Pass | $8285 | $4798 | $6295 | $3284 | $1526 | $3446 | $19165 | $— | $114 | $46913 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Special Mention | 59 | 309 | 173 | 61 | 3 | 41 | 460 |  |  | 1106 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Substandard Accrual | 81 | 179 | 255 | 79 | 32 | 84 | 534 |  |  | 1244 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-accrual | 48 | 90 | 124 | 37 | 5 | 6 | 98 |  |  | 408 |  |  |  |  |
| Total commercial and industrial | $8473 | $5376 | $6847 | $3461 | $1566 | $3577 | $20257 | $— | $114 | $49671 |  |  |  |  |
| Commercial real estate mortgage—owner-occupied: | Commercial real estate mortgage—owner-occupied: | Commercial real estate mortgage—owner-occupied: | Commercial real estate mortgage—owner-occupied: | Commercial real estate mortgage—owner-occupied: | Commercial real estate mortgage—owner-occupied: | Commercial real estate mortgage—owner-occupied: | Commercial real estate mortgage—owner-occupied: | Commercial real estate mortgage—owner-occupied: | Commercial real estate mortgage—owner-occupied: | Commercial real estate mortgage—owner-occupied: |  |  |  |  |
| &nbsp;&nbsp;Risk rating: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Pass | $794 | $695 | $796 | $785 | $522 | $808 | $87 | $— | $(5) | $4482 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Special Mention | 5 | 21 | 57 | 33 | 9 | 57 | 2 |  |  | 184 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Substandard Accrual | 4 | 6 | 37 | 40 | 15 | 33 | 3 |  |  | 138 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-accrual | 2 | 2 | 5 | 14 | 4 | 9 | 1 |  |  | 37 |  |  |  |  |
| Total commercial real estate mortgage—owner-occupied: | $805 | $724 | $895 | $872 | $550 | $907 | $93 | $— | $(5) | $4841 |  |  |  |  |
| Commercial real estate construction—owner-occupied: | Commercial real estate construction—owner-occupied: | Commercial real estate construction—owner-occupied: | Commercial real estate construction—owner-occupied: | Commercial real estate construction—owner-occupied: | Commercial real estate construction—owner-occupied: | Commercial real estate construction—owner-occupied: | Commercial real estate construction—owner-occupied: | Commercial real estate construction—owner-occupied: | Commercial real estate construction—owner-occupied: | Commercial real estate construction—owner-occupied: |  |  |  |  |
| &nbsp;&nbsp;Risk rating: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Pass | $131 | $54 | $38 | $30 | $20 | $37 | $7 | $— | $— | $317 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Special Mention |  | 6 | 1 |  |  |  |  |  |  | 7 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Substandard Accrual |  |  | 3 |  | 1 |  |  |  |  | 4 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-accrual |  |  |  |  | 1 | 4 |  |  |  | 5 |  |  |  |  |
| Total commercial real estate construction—owner-occupied: | $131 | $60 | $42 | $30 | $22 | $41 | $7 | $— | $— | $333 |  |  |  |  |
| Total commercial | $9409 | $6160 | $7784 | $4363 | $2138 | $4525 | $20357 | $— | $109 | $54845 |  |  |  |  |
| Commercial investor real estate mortgage: | Commercial investor real estate mortgage: | Commercial investor real estate mortgage: | Commercial investor real estate mortgage: | Commercial investor real estate mortgage: | Commercial investor real estate mortgage: | Commercial investor real estate mortgage: | Commercial investor real estate mortgage: | Commercial investor real estate mortgage: | Commercial investor real estate mortgage: | Commercial investor real estate mortgage: |  |  |  |  |
| &nbsp;&nbsp;Risk rating: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Pass | $1598 | $464 | $1753 | $747 | $322 | $125 | $314 | $— | $(2) | $5321 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Special Mention | 173 | 12 | 209 | 30 | 11 | 1 | 4 |  |  | 440 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Substandard Accrual | 76 |  | 131 | 39 | 28 | 2 | 107 |  |  | 383 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-accrual | 167 | 93 | 113 |  |  | 50 |  |  |  | 423 |  |  |  |  |
| Total commercial investor real estate mortgage | $2014 | $569 | $2206 | $816 | $361 | $178 | $425 | $— | $(2) | $6567 |  |  |  |  |
| Commercial investor real estate construction: | Commercial investor real estate construction: | Commercial investor real estate construction: | Commercial investor real estate construction: | Commercial investor real estate construction: | Commercial investor real estate construction: | Commercial investor real estate construction: | Commercial investor real estate construction: | Commercial investor real estate construction: | Commercial investor real estate construction: | Commercial investor real estate construction: |  |  |  |  |
| &nbsp;&nbsp;Risk rating: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Pass | $300 | $380 | $443 | $— | $— | $2 | $694 | $— | $(13) | $1806 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Special Mention |  | 32 | 218 |  |  |  | 76 |  |  | 326 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Substandard Accrual |  |  |  |  |  |  | 11 |  |  | 11 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-accrual |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Total commercial investor real estate construction | $300 | $412 | $661 | $— | $— | $2 | $781 | $— | $(13) | $2143 |  |  |  |  |
| Total investor real estate | $2314 | $981 | $2867 | $816 | $361 | $180 | $1206 | $— | $(15) | $8710 |  |  |  |  |
| Residential first mortgage: | Residential first mortgage: | Residential first mortgage: | Residential first mortgage: | Residential first mortgage: | Residential first mortgage: | Residential first mortgage: | Residential first mortgage: | Residential first mortgage: | Residential first mortgage: | Residential first mortgage: |  |  |  |  |
| &nbsp;&nbsp;FICO scores: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Above 720 | $1111 | $1967 | $2742 | $4055 | $4004 | $2730 | $— | $— | $— | $16609 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;681-720 | 107 | 185 | 253 | 289 | 222 | 305 |  |  |  | 1361 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;620-680 | 56 | 87 | 141 | 136 | 99 | 283 |  |  |  | 802 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Below 620 | 15 | 73 | 138 | 150 | 100 | 419 |  |  |  | 895 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Data not available | 29 | 31 | 16 | 41 | 46 | 90 | 2 |  | 172 | 427 |  |  |  |  |
| Total residential first mortgage | $1318 | $2343 | $3290 | $4671 | $4471 | $3827 | $2 | $— | $172 | $20094 |  |  |  |  |

---

------

<u>[**Table of Contents**](#i135e6d1bd40b43728f33de70f283fb9d_7)</u> 

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |  |  |  |  |
| | **Term Loans** | **Term Loans** | **Term Loans** | **Term Loans** | **Term Loans** | **Term Loans** | **Revolving Loans** | **Revolving Loans Converted to Amortizing** | **Other** <sup>(1)</sup> | **Total** |  |  |  |  |
| | **2024** | **2023** | **2022** | **2021** | **2020** | **Prior** | **Revolving Loans** | **Revolving Loans Converted to Amortizing** | **Other** <sup>(1)</sup> | **Total** | | | | |
| | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** | **Revolving Loans** | **Revolving Loans Converted to Amortizing** | **Other** <sup>(1)</sup> | **Total** |
| | Home equity lines: | Home equity lines: | Home equity lines: | Home equity lines: | Home equity lines: | Home equity lines: | Home equity lines: | Home equity lines: | Home equity lines: | Home equity lines: |  |  |  |  |
| &nbsp;&nbsp;FICO scores: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Above 720 | $— | $— | $— | $— | $— | $— | $2341 | $48 | $— | $2389 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;681-720 |  |  |  |  |  |  | 339 | 12 |  | 351 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;620-680 |  |  |  |  |  |  | 176 | 11 |  | 187 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Below 620 |  |  |  |  |  |  | 96 | 7 |  | 103 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Data not available |  |  |  |  |  |  | 81 | 5 | 34 | 120 |  |  |  |  |
| Total home equity lines | $— | $— | $— | $— | $— | $— | $3033 | $83 | $34 | $3150 |  |  |  |  |
| Home equity loans: | Home equity loans: | Home equity loans: | Home equity loans: | Home equity loans: | Home equity loans: | Home equity loans: | Home equity loans: | Home equity loans: | Home equity loans: | Home equity loans: |  |  |  |  |
| &nbsp;&nbsp;FICO scores: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Above 720 | $328 | $263 | $308 | $329 | $163 | $472 | $— | $— | $— | $1863 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;681-720 | 51 | 40 | 49 | 39 | 16 | 56 |  |  |  | 251 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;620-680 | 18 | 19 | 23 | 21 | 9 | 48 |  |  |  | 138 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Below 620 | 3 | 7 | 14 | 13 | 5 | 37 |  |  |  | 79 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Data not available | 1 | 1 | 4 | 7 | 4 | 26 |  |  | 16 | 59 |  |  |  |  |
| Total home equity loans | $401 | $330 | $398 | $409 | $197 | $639 | $— | $— | $16 | $2390 |  |  |  |  |
| Consumer credit card: | Consumer credit card: | Consumer credit card: | Consumer credit card: | Consumer credit card: | Consumer credit card: | Consumer credit card: | Consumer credit card: | Consumer credit card: | Consumer credit card: | Consumer credit card: |  |  |  |  |
| &nbsp;&nbsp;FICO scores: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Above 720 | $— | $— | $— | $— | $— | $— | $847 | $— | $— | $847 |  |  |  |  |
| &nbsp;&nbsp;681-720 |  |  |  |  |  |  | 270 |  |  | 270 |  |  |  |  |
| &nbsp;&nbsp;620-680 |  |  |  |  |  |  | 224 |  |  | 224 |  |  |  |  |
| &nbsp;&nbsp;Below 620 |  |  |  |  |  |  | 108 |  |  | 108 |  |  |  |  |
| &nbsp;&nbsp;Data not available |  |  |  |  |  |  | 18 |  | (22) | (4) |  |  |  |  |
| Total consumer credit card | $— | $— | $— | $— | $— | $— | $1467 | $— | $(22) | $1445 |  |  |  |  |
| Other consumer<sup>(2)</sup>: | Other consumer<sup>(2)</sup>: | Other consumer<sup>(2)</sup>: | Other consumer<sup>(2)</sup>: | Other consumer<sup>(2)</sup>: | Other consumer<sup>(2)</sup>: | Other consumer<sup>(2)</sup>: | Other consumer<sup>(2)</sup>: | Other consumer<sup>(2)</sup>: | Other consumer<sup>(2)</sup>: | Other consumer<sup>(2)</sup>: |  |  |  |  |
| &nbsp;&nbsp;FICO scores: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Above 720 | $898 | $1016 | $1337 | $417 | $232 | $213 | $117 | $— | $— | $4230 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;681-720 | 160 | 191 | 275 | 97 | 49 | 40 | 62 |  |  | 874 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;620-680 | 82 | 111 | 191 | 64 | 31 | 25 | 50 |  |  | 554 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Below 620 | 16 | 47 | 117 | 43 | 19 | 17 | 31 |  |  | 290 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Data not available | 71 | 4 | 10 | 6 | 5 | 155 | 2 |  | (108) | 145 |  |  |  |  |
| Total other consumer | $1227 | $1369 | $1930 | $627 | $336 | $450 | $262 | $— | $(108) | $6093 |  |  |  |  |
| Total consumer loans | $2946 | $4042 | $5618 | $5707 | $5004 | $4916 | $4764 | $83 | $92 | $33172 |  |  |  |  |
| Total Loans | $14669 | $11183 | $16269 | $10886 | $7503 | $9621 | $26327 | $83 | $186 | $96727 |  |  |  |  |

---

________

(1)Other consists of amounts that are not accounted for at the loan level.

(2)Other consumer class includes overdrafts which are included in the current vintage year. Starting in 2025, other consumer loans also includes exit portfolios, which were previously presented separately. The portfolio consists primarily of indirect auto loans, and presentation of prior periods has been conformed accordingly.

------

<u>[**Table of Contents**](#i135e6d1bd40b43728f33de70f283fb9d_7)</u> 

The following tables present gross charge-offs by vintage year for the six months ended June 30, 2025 and 2024.

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** |
| | **Term Loans** | **Term Loans** | **Term Loans** | **Term Loans** | **Term Loans** | **Term Loans** | **Revolving Loans** | **Total** |
| | **2025** | **2024** | **2023** | **2022** | **2021** | **Prior** | **Revolving Loans** | **Total** |
| | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** |
| Commercial and industrial | $— | $16 | $19 | $38 | $5 | $2 | $47 | $127 |
| Commercial real estate mortgage—owner-occupied |  |  |  |  | 1 | 1 |  | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total commercial |  | 16 | 19 | 38 | 6 | 3 | 47 | 129 |
| Commercial investor real estate mortgage |  | 8 | 12 |  |  | 4 |  | 24 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total investor real estate |  | 8 | 12 |  |  | 4 |  | 24 |
| Residential first mortgage |  |  |  | 1 |  |  |  | 1 |
| Home equity lines |  |  |  |  |  |  | 1 | 1 |
| Consumer credit card |  |  |  |  |  |  | 34 | 34 |
| Other consumer<sup>(1)</sup> | 14 | 15 | 14 | 23 | 9 | 9 | 5 | 89 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total consumer | 14 | 15 | 14 | 24 | 9 | 9 | 40 | 125 |
| Total gross charge-offs | $14 | $39 | $45 | $62 | $15 | $16 | $87 | $278 |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** |
| | **Term Loans** | **Term Loans** | **Term Loans** | **Term Loans** | **Term Loans** | **Term Loans** | **Revolving Loans** | **Total** |
| | **2024** | **2023** | **2022** | **2021** | **2020** | **Prior** | **Revolving Loans** | **Total** |
| | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** |
| Commercial and industrial | $5 | $33 | $36 | $8 | $4 | $8 | $28 | $122 |
| Commercial real estate mortgage—owner-occupied |  |  |  | 1 |  |  |  | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total commercial | 5 | 33 | 36 | 9 | 4 | 8 | 28 | 123 |
| Commercial investor real estate mortgage |  |  |  | 5 |  |  |  | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total investor real estate |  |  |  | 5 |  |  |  | 5 |
| Residential first mortgage |  |  |  |  |  | 1 |  | 1 |
| Home equity lines |  |  |  |  |  |  | 2 | 2 |
| Consumer credit card |  |  |  |  |  |  | 31 | 31 |
| Other consumer<sup>(1)</sup> | 17 | 23 | 34 | 11 | 5 | 8 | 4 | 102 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total consumer | 17 | 23 | 34 | 11 | 5 | 9 | 37 | 136 |
| Total gross charge-offs | $22 | $56 | $70 | $25 | $9 | $17 | $65 | $264 |

---

______

(1)Other consumer class includes overdraft gross charge-offs. The majority of overdraft gross charge-offs for the six months ended June 30, 2025 and 2024 are included in the current vintage year. Starting in 2025, other consumer loans also includes exit portfolios, which were previously presented separately. The portfolio consists primarily of indirect auto loans, and presentation of prior periods has been conformed accordingly.

------

<u>[**Table of Contents**](#i135e6d1bd40b43728f33de70f283fb9d_7)</u> 

**AGING AND NON-ACCRUAL ANALYSIS**

The following tables include an aging analysis of DPD and loans on non-accrual status for each portfolio segment and class as of June 30, 2025 and December 31, 2024. Loans on non-accrual status with no related allowance totaled $107 million and $119 million and were comprised of commercial and investor real estate loans at June 30, 2025 and December 31, 2024, respectively. Non–accrual loans with no related allowance typically include loans where the underlying collateral is deemed sufficient to recover all remaining principal. Loans that have been fully charged-off do not appear in the tables below.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
| | **Accrual Loans** | **Accrual Loans** | **Accrual Loans** | **Accrual Loans** | | | |
| | **30-59 DPD** | **60-89 DPD** | **90+ DPD** | **Total<br>30+ DPD** |<br>**Total<br>Accrual** |<br>**Non-accrual** |<br>**Total** |
| | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** |
| Commercial and industrial | $39 | $28 | $19 | $86 | $49195 | $391 | $49586 |
| Commercial real estate mortgage—owner-occupied | 8 |  | 1 | 9 | 4845 | 45 | 4890 |
| Commercial real estate construction—owner-occupied |  |  |  |  | 274 | 1 | 275 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total commercial | 47 | 28 | 20 | 95 | 54314 | 437 | 54751 |
| Commercial investor real estate mortgage |  |  |  |  | 6666 | 283 | 6949 |
| Commercial investor real estate construction | 1 |  |  | 1 | 2149 |  | 2149 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total investor real estate | 1 |  |  | 1 | 8815 | 283 | 9098 |
| Residential first mortgage | 107 | 64 | 133 | 304 | 19996 | 24 | 20020 |
| Home equity lines | 18 | 7 | 12 | 37 | 3158 | 26 | 3184 |
| Home equity loans | 8 | 3 | 7 | 18 | 2346 | 6 | 2352 |
| Consumer credit card | 12 | 8 | 20 | 40 | 1415 |  | 1415 |
| Other consumer<sup>(1)</sup> | 41 | 25 | 23 | 89 | 5903 |  | 5903 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total consumer | 186 | 107 | 195 | 488 | 32818 | 56 | 32874 |
|  | $234 | $135 | $215 | $584 | $95947 | $776 | $96723 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| | **Accrual Loans** | **Accrual Loans** | **Accrual Loans** | **Accrual Loans** | | | |
| | **30-59 DPD** | **60-89 DPD** | **90+ DPD** | **Total<br>30+ DPD** |<br>**Total<br>Accrual** |<br>**Non-accrual** |<br>**Total** |
| | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** |
| Commercial and industrial | $51 | $18 | $7 | $76 | $49263 | $408 | $49671 |
| Commercial real estate mortgage—owner-occupied | 4 | 1 | 1 | 6 | 4804 | 37 | 4841 |
| Commercial real estate construction—owner-occupied |  |  |  |  | 328 | 5 | 333 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total commercial | 55 | 19 | 8 | 82 | 54395 | 450 | 54845 |
| Commercial investor real estate mortgage |  |  |  |  | 6144 | 423 | 6567 |
| Commercial investor real estate construction |  |  |  |  | 2143 |  | 2143 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total investor real estate |  |  |  |  | 8287 | 423 | 8710 |
| Residential first mortgage | 139 | 78 | 143 | 360 | 20071 | 23 | 20094 |
| Home equity lines | 15 | 9 | 16 | 40 | 3124 | 26 | 3150 |
| Home equity loans | 11 | 6 | 7 | 24 | 2384 | 6 | 2390 |
| Consumer credit card | 11 | 9 | 20 | 40 | 1445 |  | 1445 |
| Other consumer<sup>(1)</sup> | 51 | 26 | 27 | 104 | 6093 |  | 6093 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total consumer | 227 | 128 | 213 | 568 | 33117 | 55 | 33172 |
|  | $282 | $147 | $221 | $650 | $95799 | $928 | $96727 |

---

_____

(1) Starting in 2025, other consumer loans also includes exit portfolios, which were previously presented separately. The portfolio consists primarily of indirect auto loans, and presentation of prior periods has been conformed accordingly.

------

<u>[**Table of Contents**](#i135e6d1bd40b43728f33de70f283fb9d_7)</u> 

At both June 30, 2025 and December 31, 2024, the Company had collateral-dependent commercial loans of $264 million. At June 30, 2025 and December 31, 2024, the Company had collateral-dependent investor real estate loans of $215 million and $323 million, respectively. The collateral for commercial and investor real estate loans generally consists of all business assets including real estate, receivables and equipment. At June 30, 2025 and December 31, 2024, the Company had collateral-dependent residential mortgage and home equity loans and lines totaling $123 million and $115 million, respectively. The collateral for these loans are secured by residential real estate. Refer to Note 1 "Summary of Significant Accounting Policies" in the Annual Report on Form 10-K for the year ended December 31, 2024 for additional details for the criteria of collateral-dependent loans.

**MODIFICATIONS TO BORROWERS EXPERIENCING FINANCIAL DIFFICULTY** 

Modifications to troubled borrowers are loans where the borrower is experiencing financial difficulty at the time of modification and are undertaken in order to improve the likelihood of repayment. Refer to Note 1 "Summary of Significant Accounting Policies" in the Annual Report on Form 10-K for the year ended December 31, 2024 for additional information.

For each portfolio segment and class, the following tables present the end of period balances of new modifications to troubled borrowers and the related percentage of the loan portfolio period-end balance by the type of modification in the three and six months ended June 30, 2025 and 2024.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** |
| | **Term Extension** | **Payment Deferral** | **Term Extension and Interest Rate Modification** | **Total** |
| | $**%**<sup>(1)</sup> | $**%**<sup>(1)</sup> | $**%**<sup>(1)</sup> | $**%**<sup>(1)</sup> |
| | **(Dollars in millions)** | **(Dollars in millions)** | **(Dollars in millions)** | **(Dollars in millions)** |
| Commercial and industrial | 0.07% | 0.02% | —% | 0.09% |
| Commercial real estate mortgage—owner-occupied | 0.03% | —% | —% | 0.03% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total commercial | 0.07% | 0.02% | —% | 0.09% |
| Commercial investor real estate mortgage | 1.56% | —% | —% | 1.56% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total investor real estate | 1.19% | —% | —% | 1.19% |
| Residential first mortgage | 0.30% | 0.01% | 0.02% | 0.33% |
| Home equity lines | 0.01% | —% | 0.04% | 0.05% |
| Home equity loans | 0.06% | —% | 0.06% | 0.12% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total consumer | 0.19% | 0.01% | 0.02% | 0.21% |
| Total | 0.21% | 0.01% | 0.01% | 0.23% |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** |
| | **Term Extension** | **Payment Deferral** | **Term Extension and Interest Rate Modification** | **Total** |
| | $**%**<sup>(1)</sup> | $**%**<sup>(1)</sup> | $**%**<sup>(1)</sup> | $**%**<sup>(1)</sup> |
| | **(Dollars in millions)** | **(Dollars in millions)** | **(Dollars in millions)** | **(Dollars in millions)** |
| Commercial and industrial | 0.05% | —% | —% | 0.05% |
| Commercial real estate mortgage—owner-occupied | 0.05% | —% | —% | 0.05% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total commercial | 0.05% | —% | —% | 0.05% |
| Residential first mortgage | 0.21% | —% | —% | 0.22% |
| Home equity lines | —% | —% | 0.05% | 0.06% |
| Home equity loans | 0.05% | —% | 0.08% | 0.13% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total consumer | 0.13% | —% | 0.01% | 0.15% |
| Total | 0.07% | —% | —% | 0.08% |

---

------

<u>[**Table of Contents**](#i135e6d1bd40b43728f33de70f283fb9d_7)</u> 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** |
| | **Term Extension** | **Interest Rate Reduction** | **Payment Deferral** | **Term Extension and Interest Rate Modification** | **Total** |
| | $**%**<sup>(1)</sup> | $**%**<sup>(1)</sup> | $**%**<sup>(1)</sup> | $**%**<sup>(1)</sup> | $**%**<sup>(1)</sup> |
| | **(Dollars in millions)** | **(Dollars in millions)** | **(Dollars in millions)** | **(Dollars in millions)** | **(Dollars in millions)** |
| Commercial and industrial | 0.17% | 0.01% | 0.02% | —% | 0.20% |
| Commercial real estate mortgage—owner-occupied | 0.04% | —% | —% | —% | 0.04% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total commercial | 0.16% | 0.01% | 0.02% | —% | 0.18% |
| Commercial investor real estate mortgage | 1.92% | —% | —% | —% | 1.92% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total investor real estate | 1.46% | —% | —% | —% | 1.46% |
| Residential first mortgage | 0.58% | —% | 0.02% | 0.04% | 0.64% |
| Home equity lines | 0.02% | —% | —% | 0.10% | 0.12% |
| Home equity loans | 0.09% | —% | —% | 0.12% | 0.21% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total consumer | 0.36% | —% | 0.01% | 0.05% | 0.42% |
| Total | 0.35% | —% | 0.01% | 0.02% | 0.38% |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** |
| | **Term Extension** | **Payment Deferral** | **Term Extension and Interest Rate Modification** | **Total** |
| | $**%**<sup>(1)</sup> | $**%**<sup>(1)</sup> | $**%**<sup>(1)</sup> | $**%**<sup>(1)</sup> |
| | **(Dollars in millions)** | **(Dollars in millions)** | **(Dollars in millions)** | **(Dollars in millions)** |
| Commercial and industrial | 0.07% | —% | —% | 0.07% |
| Commercial real estate mortgage—owner-occupied | 0.06% | —% | —% | 0.06% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total commercial | 0.07% | —% | —% | 0.07% |
| Commercial investor real estate mortgage | 1.53% | —% | —% | 1.53% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total investor real estate | 1.14% | —% | —% | 1.14% |
| Residential first mortgage | 0.40% | 0.01% | 0.01% | 0.41% |
| Home equity lines | 0.01% | —% | 0.07% | 0.08% |
| Home equity loans | 0.08% | —% | 0.16% | 0.24% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total consumer | 0.25% | —% | 0.02% | 0.28% |
| Total | 0.23% | —% | 0.01% | 0.24% |

---

____

(1) Amounts calculated based upon whole dollar values.

The end of period balance of unfunded commitments related to modifications to troubled borrowers was $80 million and $71 million at June 30, 2025 and December 31, 2024, respectively.

------

<u>[**Table of Contents**](#i135e6d1bd40b43728f33de70f283fb9d_7)</u> 

The following tables present the financial impact of modifications to troubled borrowers during the three and six months ended June 30, 2025 and 2024 by class of financing receivable and the type of modification. The tables include new modifications to troubled borrowers, as well as renewals of existing modifications to troubled borrowers.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** |
| | **Term Extension** | **Payment Deferral** | **Term Extension and Interest Rate Modification** | **Term Extension and Interest Rate Modification** |
| | **Weighted-Average Term Extension** | **Weighted-Average Payment Deferral** | **Weighted-Average Term Extension** | **Weighted-Average Reduction in Interest Rate** |
| | **(In years, except for percentage data)** | **(In years, except for percentage data)** | **(In years, except for percentage data)** | **(In years, except for percentage data)** |
| Commercial and industrial | 1.17 | 0.25 |  |  |
| Commercial real estate mortgage—owner-occupied | 1.58 |  |  |  |
| Commercial investor real estate mortgage | 0.67 |  |  |  |
| Residential first mortgage | 7 | 0.67 | 6 | 1% |
| Home equity lines |  |  | 29 | 1% |
| Home equity loans | 12 |  | 21 | 3% |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** |
| | **Term Extension** | **Payment Deferral** | **Term Extension and Interest Rate Modification** | **Term Extension and Interest Rate Modification** |
| | **Weighted-Average Term Extension** | **Weighted-Average Payment Deferral** | **Weighted-Average Term Extension** | **Weighted-Average Reduction in Interest Rate** |
| | **(In years, except for percentage data)** | **(In years, except for percentage data)** | **(In years, except for percentage data)** | **(In years, except for percentage data)** |
| Commercial and industrial | 0.92 |  |  |  |
| Commercial real estate mortgage—owner-occupied | 0.67 |  |  |  |
| Residential first mortgage | 7 | 0.5 | 1 | less than 1% |
| Home equity lines |  |  | 21 | 2% |
| Home equity loans | 7 |  | 25 | 3% |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** |
| | **Interest Rate Reduction** | **Term Extension** | **Payment Deferral** | **Term Extension and Interest Rate Reduction** | **Term Extension and Interest Rate Reduction** |
| | **Weighted-Average Reduction in Interest Rate** | **Weighted-Average Term Extension** | **Weighted-Average Payment Deferral** | **Weighted-Average Term Extension** | **Weighted-Average Reduction in Interest Rate** |
| | **(In years, except for percentage data)** | **(In years, except for percentage data)** | **(In years, except for percentage data)** | **(In years, except for percentage data)** | **(In years, except for percentage data)** |
| Commercial and industrial | less than 1% | 0.75 | 0.25 |  |  |
| Commercial real estate mortgage—owner-occupied |  | 2.25 |  |  |  |
| Commercial investor real estate mortgage |  | 0.67 |  |  |  |
| Residential first mortgage |  | 7 | 0.67 | 4 | 1% |
| Home equity lines |  | 30 |  | 26 | 1% |
| Home equity loans |  | 12 |  | 21 | 3% |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** |
| | **Term Extension** | **Payment Deferral** | **Term Extension and Interest Rate Reduction** | **Term Extension and Interest Rate Reduction** |
| | **Weighted-Average Term Extension** | **Weighted-Average Payment Deferral** | **Weighted-Average Term Extension** | **Weighted-Average Reduction in Interest Rate** |
| | **(In years, except for percentage data)** | **(In years, except for percentage data)** | **(In years, except for percentage data)** | **(In years, except for percentage data)** |
| Commercial and industrial | 1.58 |  |  |  |
| Commercial real estate mortgage—owner-occupied | 0.67 |  |  |  |
| Commercial investor real estate mortgage | 0.58 |  |  |  |
| Residential first mortgage | 7 | 0.5 | 6 | less than 1% |
| Home equity lines |  |  | 21 | 2% |
| Home equity loans | 9 |  | 25 | 2% |

---

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<u>[**Table of Contents**](#i135e6d1bd40b43728f33de70f283fb9d_7)</u> 

The following tables include the end of period balances of aging and non-accrual performance for modifications to troubled borrowers modified in the previous twelve-month period by portfolio segment and class as of June 30, 2025 and June 30, 2024.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
| | **Current** | **30-89 DPD** | **90+ DPD** | **Non-Performing Loans** | **Total** |
| | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** |
| Commercial and industrial | $79 | $— | $— | $45 | $124 |
| Commercial real estate mortgage—owner-occupied | 2 |  |  | 1 | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total commercial | 81 |  |  | 46 | 127 |
| Commercial investor real estate mortgage | 111 |  |  | 89 | 200 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total investor real estate | 111 |  |  | 89 | 200 |
| Residential first mortgage | 155 | 32 | 11 | 6 | 204 |
| Home equity lines | 9 | 1 |  | 1 | 11 |
| Home equity loans | 8 |  |  | 3 | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total consumer | 172 | 33 | 11 | 10 | 226 |
|  | $364 | $33 | $11 | $145 | $553 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **June 30, 2024** | **June 30, 2024** | **June 30, 2024** | **June 30, 2024** | **June 30, 2024** |
| | **Current** | **30-89 DPD** | **90+ DPD** | **Non-Performing Loans** | **Total** |
| | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** |
| Commercial and industrial | $149 | $— | $— | $74 | $223 |
| Commercial real estate mortgage—owner-occupied | 2 |  |  | 1 | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total commercial | 151 |  |  | 75 | 226 |
| Commercial investor real estate mortgage | 130 |  |  | 136 | 266 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total investor real estate | 130 |  |  | 136 | 266 |
| Residential first mortgage | 99 | 16 | 10 | 4 | 129 |
| Home equity lines | 4 |  |  |  | 4 |
| Home equity loans | 8 | 1 |  | 1 | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total consumer | 111 | 17 | 10 | 5 | 143 |
|  | $392 | $17 | $10 | $216 | $635 |

---

For modifications to troubled borrowers, a subsequent payment default is defined in terms of delinquency, when a principal or interest payment is 90 days past due or classified as non-accrual status during the reporting period. Loans defaulted during the three and six month periods ended June 30, 2025 that were restructured as modifications to troubled borrowers during the previous twelve months had period-end balances of $23 million and $48 million, respectively. Loans defaulted during the three and six month periods ended June 30, 2024 that were restructured as modifications to troubled borrowers during the previous twelve months had period-end balances of $56 million and $135 million, respectively.

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<u>[**Table of Contents**](#i135e6d1bd40b43728f33de70f283fb9d_7)</u> 

**NOTE 5. SERVICING OF FINANCIAL ASSETS** 

**RESIDENTIAL MORTGAGE BANKING ACTIVITIES**

The fair value of residential MSRs is calculated using various assumptions including future cash flows, market discount rates, expected prepayment rates, servicing costs and other factors. A significant change in prepayments of mortgages in the servicing portfolio could result in significant changes in the valuation adjustments, thus creating potential volatility in the carrying amount of residential MSRs. The Company compares fair value estimates and assumptions to observable market data where available, and also considers recent market activity and actual portfolio experience.

The table below presents an analysis of residential MSRs under the fair value measurement method:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30** | **Three Months Ended June 30** | **Six Months Ended June 30** | **Six Months Ended June 30** |
| | **2025** | **2024** | **2025** | **2024** |
| | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** |
| Carrying value, beginning of period | $979 | $1026 | $1007 | $906 |
| Additions | 7 | 7 | 12 | 12 |
| Purchases <sup>(1)</sup> | 14 | 5 | 19 | 130 |
| Increase (decrease) in fair value<sup>(2)</sup>: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Due to change in valuation inputs or assumptions | 16 | 13 | 6 | 32 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Economic amortization associated with borrower repayments <sup>(3)</sup> | (28) | (31) | (56) | (60) |
| Carrying value, end of period | $988 | $1020 | $988 | $1020 |

---

_________

(1)Purchases of residential MSRs can be structured with cash hold back provisions, therefore the timing of payment may be made in future periods.

(2)Included in mortgage income. Amounts presented exclude offsetting impact from related derivatives.

(3)Includes both total loan payoffs as well as partial paydowns. Regions' MSR decay methodology is a discounted net cash flow approach.

Data and assumptions used in the fair value calculation, as well as the valuation's sensitivity to rate fluctuations, related to residential MSRs (excluding related derivative instruments) are as follows:

---

| | | |
|:---|:---|:---|
| | **June 30** | **June 30** |
| | **2025** | **2024** |
| | **(Dollars in millions)** | **(Dollars in millions)** |
| Unpaid principal balance | $66249 | $69055 |
| Weighted-average CPR (%) | 7.4% | 8.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Estimated impact on fair value of a 10% increase | $(36) | $(47) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Estimated impact on fair value of a 20% increase | $(69) | $(90) |
| Option-adjusted spread (basis points) | 496 | 486 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Estimated impact on fair value of a 10% increase | $(22) | $(22) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Estimated impact on fair value of a 20% increase | $(45) | $(44) |
| Weighted-average coupon interest rate | 3.9% | 3.8% |
| Weighted-average remaining maturity (months) | 293 | 300 |
| Weighted-average servicing fee (basis points) | 27.5 | 27.2 |

---

The sensitivity calculations above are hypothetical and should not be considered to be predictive of future performance. Changes in fair value based on adverse changes in assumptions generally cannot be extrapolated because the relationship of the change in assumption to the change in fair value may not be linear. Also, the effect of an adverse variation in a particular assumption on the fair value of the residential MSRs is calculated without changing any other assumption, while in reality changes in one factor may result in changes in another, which may either magnify or counteract the effect of the change. The derivative instruments utilized by Regions would serve to reduce the estimated impacts to fair value included in the table above.

Servicing related fees, which include contractually specified servicing fees, late fees and other ancillary income resulting from the servicing of residential mortgage loans totaled $47 million and $46 million for the three months ended June 30, 2025 and 2024, respectively and $94 million and $90 million for the six months ended June 30, 2025 and 2024, respectively.

Residential mortgage loans are sold in the secondary market with standard representations and warranties regarding certain characteristics such as the quality of the loan, the absence of fraud, the eligibility of the loan for sale and the future servicing associated with the loan. Regions may be required to repurchase these loans at par, or make-whole or indemnify the purchasers for losses incurred when representations and warranties are breached.

Regions maintains an immaterial repurchase liability related to residential mortgage loans sold with representations and warranty provisions. This repurchase liability is reported in other liabilities on the consolidated balance sheets and reflects management's estimate of losses based on historical repurchase and loss trends, as well as other factors that may result in anticipated losses different from historical loss trends. Adjustments to this reserve are recorded in other non-interest expense on the consolidated statements of income.

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<u>[**Table of Contents**](#i135e6d1bd40b43728f33de70f283fb9d_7)</u> 

**COMMERCIAL MORTGAGE BANKING ACTIVITIES** 

Regions engages in the servicing of commercial mortgage loans through agreements with the agencies and through a DUS lending program. Commercial MSRs of loans through the agency programs are measured at fair value while commercial MSRs of loans through the DUS lending program are measured at cost and subsequently amortized.

*<u>Commercial mortgage banking through non-DUS agency programs</u>*

The fair value of commercial MSRs through non-DUS agency programs is calculated using various assumptions including future cash flows, market discount rates, expected prepayment rates, servicing costs and other factors. A significant change in prepayments of mortgages in this servicing portfolio could result in significant changes in the valuation adjustments, thus creating potential volatility in the carrying amount of these commercial MSRs. Commercial mortgages commonly have protection against prepayments in the forms of lockout periods and prepayment penalty features, which reduce the likelihood of prepayment. The Company compares fair value estimates and assumptions to observable market data where available, and also considers recent market activity and actual portfolio experience. Regions assumes a loss share guarantee associated with loans sold to Fannie Mae. See Note 1 "Summary of Significant Accounting Policies" in the Annual Report on Form 10-K for the year ended December 31, 2024 for additional information. Also see Note 12 for additional information related to the guarantee.

The table below presents an analysis of commercial MSRs through the agency programs under the fair value measurement method:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30** | **Three Months Ended June 30** | **Six Months Ended June 30** | **Six Months Ended June 30** |
| | **2025** | **2024** | **2025** | **2024** |
| | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** |
| Carrying value, beginning of period | $94 | $88 | $97 | $81 |
| Additions | 2 | 5 | 4 | 11 |
| Increase (decrease) in fair value<sup>(1)</sup>: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Due to change in valuation inputs or assumptions | 1 | 2 |  | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Economic amortization associated with borrower repayments <sup>(2)</sup> | (4) | (5) | (8) | (8) |
| Carrying value, end of period | $93 | $90 | $93 | $90 |

---

_____

(1)Included in capital markets income. Amounts presented exclude offsetting impact from related derivatives.

(2)Includes both total loan payoffs as well as partial paydowns. Regions' MSR decay methodology is a discounted net cash flow approach.

Data and assumptions used in the fair value calculation, as well as the valuation's sensitivity to rate fluctuations, related to commercial MSRs through non-DUS agency programs (excluding related derivative instruments) are as follows:

---

| | | |
|:---|:---|:---|
| | **June 30** | **June 30** |
| | **2025** | **2024** |
| | **(Dollars in millions)** | **(Dollars in millions)** |
| Unpaid principal balance | $7578 | $6643 |
| Weighted-average CPR (%) | 7.2% | 7.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Estimated impact on fair value of a 10% increase | $(2) | $(1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Estimated impact on fair value of a 20% increase | $(3) | $(3) |
| Weighted-average discount rate (%) | 8.2% | 7.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Estimated impact on fair value of a 10% increase | $(3) | $(2) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Estimated impact on fair value of a 20% increase | $(5) | $(4) |
| Weighted-average coupon interest rate | 4.8% | 4.6% |
| Weighted-average remaining maturity (months) | 148 | 158 |
| Weighted-average servicing fee (basis points) | 25.3 | 28.2 |

---

The sensitivity calculations above are hypothetical and should not be considered to be predictive of future performance. Changes in fair value based on adverse changes in assumptions generally cannot be extrapolated because the relationship of the change in assumption to the change in fair value may not be linear. Also, the effect of an adverse variation in a particular assumption on the fair value of the commercial MSRs is calculated without changing any other assumption, while in reality changes in one factor may result in changes in another, which may either magnify or counteract the effect of the change. The derivative instruments utilized by Regions would serve to reduce the estimated impacts to fair value included in the table above.

Servicing related fees, which include contractually specified servicing fees, late fees and other ancillary income resulting from the servicing of commercial mortgage loans through the agency programs totaled $7 million and $5 million for the three months ended June 30, 2025 and 2024 and $13 million and $12 million for the six months ended June 30, 2025 and 2024, respectively.

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<u>[**Table of Contents**](#i135e6d1bd40b43728f33de70f283fb9d_7)</u> 

*<u>Commercial mortgage banking through the DUS lending program</u>*

Regions is an approved DUS lender. The DUS program provides liquidity to the multi-family housing market. In connection with the DUS program, Regions services commercial mortgage loans, retains commercial MSRs and intangible assets associated with the DUS license, and assumes a loss share guarantee associated with the loans. See Note 1 "Summary of Significant Accounting Policies" in the Annual Report on Form 10-K for the year ended December 31, 2024 for additional information. Also see Note 12 for additional information related to the guarantee.

The table below presents an analysis of commercial DUS MSRs under the amortization measurement method:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30** | **Three Months Ended June 30** | **Six Months Ended June 30** | **Six Months Ended June 30** |
| | **2025** | **2024** | **2025** | **2024** |
| | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** |
| Carrying value, beginning of period | $91 | $85 | $90 | $87 |
| Additions | 5 | 4 | 10 | 6 |
| Economic amortization associated with borrower repayments <sup>(1)</sup> | (5) | (4) | (9) | (8) |
| Carrying value, end of period | $91 | $85 | $91 | $85 |

---

________

(1)Economic amortization associated with borrower repayments includes both total loan payoffs as well as partial paydowns.

Regions periodically evaluates DUS MSRs for impairment based on fair value. The estimated fair value of the DUS MSRs was approximately $113 million at June 30, 2025 and $117 million at December 31, 2024.

Servicing related fees in connection with the DUS program, which include contractually specified servicing fees, late fees and other ancillary income resulting from the servicing of DUS commercial mortgage loans totaled $6 million and $8 million for three months ended June 30, 2025 and 2024, respectively and $13 million and $13 million for the six months ended June 30, 2025 and 2024, respectively.

**NOTE 6. SHAREHOLDERS' EQUITY AND ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)** 

**PREFERRED STOCK** 

The following table presents a summary of the non-cumulative perpetual preferred stock:

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | | | | | | | | | **June 30, 2025** | **December 31, 2024** |
| |<br>**Issuance Date** |<br>**Earliest Redemption Date** | **Dividend Rate** <sup>(1)</sup> | **Dividend Rate** <sup>(1)</sup> |<br>**Liquidation Amount** |<br>**Liquidation preference per Share** |<br>**Liquidation preference per Depositary Share** |<br>**Ownership Interest per Depositary Share** |<br>**Shares Issued and Outstanding** | **Carrying Amount** | **Carrying Amount** |
| | **(Dollars in millions, except for share and per share amounts)** | **(Dollars in millions, except for share and per share amounts)** | **(Dollars in millions, except for share and per share amounts)** | **(Dollars in millions, except for share and per share amounts)** | **(Dollars in millions, except for share and per share amounts)** | **(Dollars in millions, except for share and per share amounts)** | **(Dollars in millions, except for share and per share amounts)** | **(Dollars in millions, except for share and per share amounts)** | **(Dollars in millions, except for share and per share amounts)** | **(Dollars in millions, except for share and per share amounts)** | **(Dollars in millions, except for share and per share amounts)** |
| Series C | 4/30/2019 | 5/15/2029 | 5.700% | <sup>(2)</sup> | $500 | 1000 | 25 | 1/40th | 500000 | $490 | $490 |
| Series D<sup>(3)</sup> | 6/5/2020 | 6/15/2025 | 5.750% |  |  | 100000 | 1000 | 1/100th |  |  | 346 |
| Series E | 5/4/2021 | 6/15/2026 | 4.450% |  | 400 | 1000 | 25 | 1/40th | 400000 | 390 | 390 |
| Series F | 7/29/2024 | 9/15/2029 | 6.950% | <sup>(4)</sup> | 500 | 1000 | 25 | 1/40th | 500000 | 489 | 489 |
|  |  |  |  |  | $1400 |  |  |  | 1400000 | $1369 | $1715 |

---

_________

(1)Dividends on all series of preferred stock, if declared, accrue and are payable quarterly in arrears.

(2)Dividends, if declared, will be paid quarterly at an annual rate equal to (i) for each period beginning prior to August 15, 2029, 5.700%, and (ii) for each period beginning on or after August 15, 2029, three-month CME Term SOFR plus 3.410% which includes a 0.262% spread adjustment for the transition to SOFR in accordance with ISDA protocols.

(3)Prior to the shares' full redemption on June 16, 2025, dividends were paid quarterly at an annual rate equal to (i) for each period beginning prior to September 15, 2025, 5.750%, and (ii) for each period beginning on or after September 15, 2025, the five-year Treasury rate as of the most recent reset dividend determination date plus 5.426%.

(4)Dividends, if declared, will be paid quarterly at an annual rate equal to (i) for each period beginning prior to September 15, 2024, 6.950% and (ii) for each period beginning on or after September 15, 2029, the five-year Treasury rate as of the most recent reset dividend determination date plus 2.771%.

All series of preferred stock have no stated maturity and redemption is solely at Regions' option, subject to regulatory approval, in whole, or in part, after the earliest redemption date or in whole, but not in part, at any time following a regulatory capital treatment event for the Series C, Series E, and Series F preferred stock.

The Board declared a total of $50 million and $49 million in cash dividends on preferred stock in the six months ended June 30, 2025 and 2024, respectively.

During the second quarter of 2025, the Company redeemed all 3,500 outstanding shares of Series D non-cumulative perpetual preferred stock and the corresponding depositary fractional shares at par for $350 million. Upon redemption, net income available to common shareholders was reduced by $4 million related to issuance costs.

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<u>[**Table of Contents**](#i135e6d1bd40b43728f33de70f283fb9d_7)</u> 

In the event Series C, Series E, or Series F preferred shares are redeemed in full at their respective liquidation amounts, $10 million, $10 million, or $11 million in excess of the redemption amount over the carrying amount will be recognized, respectively. These excess amounts represent issuance costs that were recorded as reductions to preferred stock, including related surplus, and will be recorded as reductions to net income available to common shareholders.

**COMMON STOCK**

The Company's results of the 2024 stress test from the Federal Reserve reflect that the Company exceeded all minimum capital levels and the Company's SCB was floored at 2.5 percent from the fourth quarter of 2024 through the third quarter of 2025. As a Category IV bank, Regions was not required to participate in the 2025 stress test. However, the Company did receive results from the Federal Reserve during the second quarter of 2025 and from the fourth quarter of 2025 through the third quarter of 2026, the Company's SCB is expected to remain at 2.5 percent.

On April 20, 2022, the Board authorized the repurchase of up to $2.5 billion of the Company's common stock, permitting purchases from the second quarter of 2022 through the fourth quarter of 2024 and was subsequently extended on December 10, 2024 permitting repurchases through the fourth quarter of 2025. As of June 30, 2025, Regions had repurchased approximately 51 million shares of common stock at a total cost of $1.0 billion under this plan. All of these shares were immediately retired upon repurchase and therefore were not included in treasury stock.

Regions declared $0.25 per share in cash dividends for both the first and second quarters of 2025, totaling $0.50 per common share for the first six months of 2025 as compared to $0.24 per common share for the same quarterly periods of 2024 totaling $0.48 per common share for the first six months of 2024.

On July 16, 2025, the Board declared a $0.015 increase to the quarterly common stock dividend to $0.265 which will be payable on October 1, 2025, to shareholders of record at close of business on September 2, 2025.

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<u>[**Table of Contents**](#i135e6d1bd40b43728f33de70f283fb9d_7)</u> 

**ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)**

The following tables present the balances and activity in AOCI on a pre-tax and net of tax basis for the three and six months ended June 30, 2025 and 2024:

---

| | | | |
|:---|:---|:---|:---|
| | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** |
| | **Pre-tax AOCI Activity** | **Tax Effect** <sup>(1)</sup> | **Net AOCI Activity** |
| | **(In millions)** | **(In millions)** | **(In millions)** |
| Total accumulated other comprehensive income (loss), beginning of period | $(3053) | $770 | $(2283) |
| Unrealized losses on securities transferred to held to maturity: |  |  |  |
| &nbsp;&nbsp;Beginning balance | $(875) | $219 | $(656) |
| &nbsp;&nbsp;&nbsp;&nbsp;Unrealized gains (losses) on securities transferred from available for sale during the period | (74) | 19 | (55) |
| &nbsp;&nbsp;&nbsp;&nbsp;Reclassification adjustments for amortization on unrealized losses on securities transferred to held for maturity <sup>(2)</sup> | 43 | (11) | 32 |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in AOCI from securities held to maturity activity in the period | (31) | 8 | (23) |
| &nbsp;&nbsp;Ending balance | $(906) | $227 | $(679) |
| Unrealized gains (losses) on securities available for sale: |  |  |  |
| &nbsp;&nbsp;Beginning balance | $(1322) | $333 | $(989) |
| &nbsp;&nbsp;&nbsp;&nbsp;Unrealized (gains) losses on securities transferred to held to maturity during the period | 74 | (19) | 55 |
| &nbsp;&nbsp;&nbsp;&nbsp;Unrealized gains (losses) arising during the period | 170 | (43) | 127 |
| &nbsp;&nbsp;&nbsp;&nbsp;Reclassification adjustments for securities (gains) losses realized in net income <sup>(3)</sup> | 1 |  | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in AOCI from securities available for sale activity in the period | 245 | (62) | 183 |
| &nbsp;&nbsp;Ending balance | $(1077) | $271 | $(806) |
| Unrealized gains (losses) on derivative instruments designated as cash flow hedges: |  |  |  |
| &nbsp;&nbsp;Beginning balance | $(323) | $82 | $(241) |
| &nbsp;&nbsp;&nbsp;&nbsp;Unrealized gains (losses) on derivative instruments arising during the period | 142 | (36) | 106 |
| &nbsp;&nbsp;&nbsp;&nbsp;Reclassification adjustments for (gains) losses on derivative instruments realized in net income <sup>(2)</sup> | 60 | (15) | 45 |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in AOCI from derivative activity in the period | 202 | (51) | 151 |
| &nbsp;&nbsp;Ending balance | $(121) | $31 | $(90) |
| Defined benefit pension plans and other post employment benefit plans: |  |  |  |
| &nbsp;&nbsp;Beginning balance | $(542) | $136 | $(406) |
| &nbsp;&nbsp;&nbsp;&nbsp;Reclassification adjustments for amortization of actuarial (gains) losses and settlements realized in net income <sup>(4)</sup> | 6 | (1) | 5 |
| &nbsp;&nbsp;Ending balance | $(536) | $135 | $(401) |
| Total other comprehensive income | 422 | (106) | 316 |
| Total accumulated other comprehensive income (loss), end of period | $(2631) | $664 | $(1967) |

---

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<u>[**Table of Contents**](#i135e6d1bd40b43728f33de70f283fb9d_7)</u> 

---

| | | | |
|:---|:---|:---|:---|
| | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** |
| | **Pre-tax AOCI Activity** | **Tax Effect** <sup>(1)</sup> | **Net AOCI Activity** |
| | **(In millions)** | **(In millions)** | **(In millions)** |
| Total accumulated other comprehensive income (loss), beginning of period | $(4325) | $1101 | $(3224) |
| Unrealized losses on securities transferred to held to maturity: |  |  |  |
| &nbsp;&nbsp;Beginning balance | $(9) | $1 | $(8) |
| &nbsp;&nbsp;&nbsp;&nbsp;Reclassification adjustments for amortization on unrealized losses <sup>(2)</sup> | 1 |  | 1 |
| &nbsp;&nbsp;Ending balance | $(8) | $1 | $(7) |
| Unrealized gains (losses) on securities available for sale: |  |  |  |
| &nbsp;&nbsp;Beginning balance | $(3027) | $771 | $(2256) |
| &nbsp;&nbsp;&nbsp;&nbsp;Unrealized gains (losses) arising during the period | (97) | 24 | (73) |
| &nbsp;&nbsp;&nbsp;&nbsp;Reclassification adjustments for securities (gains) losses realized in net income <sup>(3)</sup> | 50 | (12) | 38 |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in AOCI from securities available for sale activity in the period | (47) | 12 | (35) |
| &nbsp;&nbsp;Ending balance | $(3074) | $783 | $(2291) |
| Unrealized gains (losses) on derivative instruments designated as cash flow hedges: |  |  |  |
| &nbsp;&nbsp;Beginning balance | $(689) | $176 | $(513) |
| &nbsp;&nbsp;&nbsp;&nbsp;Unrealized gains (losses) on derivative instruments arising during the period | (130) | 33 | (97) |
| &nbsp;&nbsp;&nbsp;&nbsp;Reclassification adjustments for (gains) losses on derivative instruments realized in net income <sup>(2)</sup> | 116 | (30) | 86 |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in AOCI from derivative activity in the period | (14) | 3 | (11) |
| &nbsp;&nbsp;Ending balance | $(703) | $179 | $(524) |
| Defined benefit pension plans and other post employment benefit plans: |  |  |  |
| &nbsp;&nbsp;Beginning balance | $(600) | $153 | $(447) |
| &nbsp;&nbsp;&nbsp;&nbsp;Reclassification adjustments for amortization of actuarial (gains) losses and settlements realized in net income <sup>(4)</sup> | 6 | (2) | 4 |
| &nbsp;&nbsp;Ending balance | $(594) | $151 | $(443) |
| Total other comprehensive income (loss) | (54) | 13 | (41) |
| Total accumulated other comprehensive income (loss), end of period | $(4379) | $1114 | $(3265) |

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<u>[**Table of Contents**](#i135e6d1bd40b43728f33de70f283fb9d_7)</u> 

---

| | | | |
|:---|:---|:---|:---|
| | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** |
| | **Pre-tax AOCI Activity** | **Tax Effect and Other** <sup>(1)</sup> | **Net AOCI Activity** |
| | **(In millions)** | **(In millions)** | **(In millions)** |
| Total accumulated other comprehensive income (loss), beginning of period | $(3912) | $984 | $(2928) |
| Unrealized losses on securities transferred to held to maturity: |  |  |  |
| &nbsp;&nbsp;Beginning balance | $(744) | $188 | $(556) |
| &nbsp;&nbsp;&nbsp;&nbsp;Unrealized gains (losses) on securities transferred from available for sale during the period | (227) | 57 | (170) |
| &nbsp;&nbsp;&nbsp;&nbsp;Reclassification adjustments for amortization on unrealized losses on securities transferred to held for maturity <sup>(2)</sup> | 65 | (18) | 47 |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in AOCI from securities held to maturity activity in the period | (162) | 39 | (123) |
| &nbsp;&nbsp;Ending balance | $(906) | $227 | $(679) |
| Unrealized gains (losses) on securities available for sale: |  |  |  |
| &nbsp;&nbsp;Beginning balance | $(1958) | $490 | $(1468) |
| &nbsp;&nbsp;&nbsp;&nbsp;Unrealized (gains) losses on securities transferred to held to maturity during the period | 227 | (57) | 170 |
| &nbsp;&nbsp;&nbsp;&nbsp;Unrealized gains (losses) arising during the period | 628 | (156) | 472 |
| &nbsp;&nbsp;&nbsp;&nbsp;Reclassification adjustments for securities (gains) losses realized in net income <sup>(3)</sup> | 26 | (6) | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in AOCI from securities available for sale activity in the period | 881 | (219) | 662 |
| &nbsp;&nbsp;Ending balance | $(1077) | $271 | $(806) |
| Unrealized gains (losses) on derivative instruments designated as cash flow hedges: |  |  |  |
| &nbsp;&nbsp;Beginning balance | $(662) | $168 | $(494) |
| &nbsp;&nbsp;&nbsp;&nbsp;Unrealized gains (losses) on derivative instruments arising during the period | 414 | (105) | 309 |
| &nbsp;&nbsp;&nbsp;&nbsp;Reclassification adjustments for (gains) losses on derivative instruments realized in net income <sup>(2)</sup> | 127 | (32) | 95 |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in AOCI from derivative activity in the period | 541 | (137) | 404 |
| &nbsp;&nbsp;Ending balance | $(121) | $31 | $(90) |
| Defined benefit pension plans and other post employment benefit plans: |  |  |  |
| &nbsp;&nbsp;Beginning balance | $(548) | $138 | $(410) |
| &nbsp;&nbsp;&nbsp;&nbsp;Reclassification adjustments for amortization of actuarial (gains) losses and settlements realized in net income <sup>(4)</sup> | 12 | (3) | 9 |
| &nbsp;&nbsp;Ending balance | $(536) | $135 | $(401) |
| Total other comprehensive income (loss) | 1272 | (320) | 952 |
| Other | 9 |  | 9 |
| Total accumulated other comprehensive income (loss), end of period | $(2631) | $664 | $(1967) |

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<u>[**Table of Contents**](#i135e6d1bd40b43728f33de70f283fb9d_7)</u> 

---

| | | | |
|:---|:---|:---|:---|
| | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** |
| | **Pre-tax AOCI Activity** | **Tax Effect** <sup>(1)</sup> | **Net AOCI Activity** |
| | **(In millions)** | **(In millions)** | **(In millions)** |
| Total accumulated other comprehensive income (loss), beginning of period | $(3773) | $961 | $(2812) |
| Unrealized losses on securities transferred to held to maturity: |  |  |  |
| &nbsp;&nbsp;Beginning balance | $(9) | $1 | $(8) |
| &nbsp;&nbsp;&nbsp;&nbsp;Reclassification adjustments for amortization on unrealized losses <sup>(2)</sup> | 1 |  | 1 |
| &nbsp;&nbsp;Ending balance | $(8) | $1 | $(7) |
| Unrealized gains (losses) on securities available for sale: |  |  |  |
| &nbsp;&nbsp;Beginning balance | $(2759) | $703 | $(2056) |
| &nbsp;&nbsp;&nbsp;&nbsp;Unrealized gains (losses) arising during the period | (415) | 105 | (310) |
| &nbsp;&nbsp;&nbsp;&nbsp;Reclassification adjustments for securities (gains) losses realized in net income <sup>(3)</sup> | 100 | (25) | 75 |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in AOCI from securities available for sale activity in the period | (315) | 80 | (235) |
| &nbsp;&nbsp;Ending balance | $(3074) | $783 | $(2291) |
| Unrealized gains (losses) on derivative instruments designated as cash flow hedges: |  |  |  |
| &nbsp;&nbsp;Beginning balance | $(399) | $102 | $(297) |
| &nbsp;&nbsp;&nbsp;&nbsp;Unrealized gains (losses) on derivative instruments arising during the period | (537) | 137 | (400) |
| &nbsp;&nbsp;&nbsp;&nbsp;Reclassification adjustments for (gains) losses on derivative instruments realized in net income <sup>(2)</sup> | 233 | (60) | 173 |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in AOCI from derivative activity in the period | (304) | 77 | (227) |
| &nbsp;&nbsp;Ending balance | $(703) | $179 | $(524) |
| Defined benefit pension plans and other post employment benefit plans: |  |  |  |
| &nbsp;&nbsp;Beginning balance | $(606) | $155 | $(451) |
| &nbsp;&nbsp;&nbsp;&nbsp;Reclassification adjustments for amortization of actuarial (gains) losses and settlements realized in net income <sup>(4)</sup> | 12 | (4) | 8 |
| &nbsp;&nbsp;Ending balance | $(594) | $151 | $(443) |
| Total other comprehensive income (loss) | (606) | 153 | (453) |
| Total accumulated other comprehensive income (loss), end of period | $(4379) | $1114 | $(3265) |

---

____

(1)The impact of all AOCI activity is shown net of the related tax impact, calculated using a nominal tax rate of approximately 25 percent.

(2)Reclassification amount is recognized in net interest income in the consolidated statements of income.

(3)Reclassification amount is recognized in securities gains (losses), net in the consolidated statements of income.

(4)Reclassification amount is recognized in other non-interest expense in the consolidated statements of income. Additionally, these accumulated other comprehensive income (loss) components are included in the computation of net periodic pension cost (see Note 8 for additional details).

**NOTE 7. EARNINGS PER COMMON SHARE** 

The following table sets forth the computation of basic earnings per common share and diluted earnings per common share:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30** | **Three Months Ended June 30** | **Six Months Ended June 30** | **Six Months Ended June 30** |
| | **2025** | **2024** | **2025** | **2024** |
| | **(In millions, except per share data)** | **(In millions, except per share data)** | **(In millions, except per share data)** | **(In millions, except per share data)** |
| Numerator: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income | $563 | $501 | $1053 | $869 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preferred stock dividends and other <sup>(1)</sup> | (29) | (24) | (54) | (49) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income available to common shareholders | $534 | $477 | $999 | $820 |
| Denominator: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Weighted-average common shares outstanding—basic | $898 | $917 | $902 | $919 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Potential common shares | 2 | 1 | 3 | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Weighted-average common shares outstanding—diluted | $900 | $918 | $905 | $920 |
| Earnings per common share: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic | $0.59 | $0.52 | $1.11 | $0.89 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted | $0.59 | $0.52 | $1.10 | $0.89 |

---

______

(1) Preferred stock dividends and other for the three and six months ended June 30, 2025 included $4 million of issuance costs associated with the redemption of Series D preferred shares in the second quarter of 2025. See Note 6 for additional information.

The effects from the assumed exercise of restricted stock units and performance stock units totaling 5 million and 4 million for the three and six months ended June 30, 2025, respectively, were not included in the above computations of diluted earnings per common share because such amounts would have had an antidilutive effect on earnings per common share.

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<u>[**Table of Contents**](#i135e6d1bd40b43728f33de70f283fb9d_7)</u> 

The effects from the assumed exercise of 7 million and 6 million in restricted stock units and awards and performance stock units for the three and six months ended June 30, 2024, respectively, were not included in the above computations of diluted earnings per common share because such amounts would have had an antidilutive effect on earnings per common share.

**NOTE 8. PENSION AND OTHER POSTRETIREMENT BENEFITS**

Regions' defined benefit pension plans cover certain employees as the pension plans are closed to new entrants. The Company also sponsors a SERP, which is a non-qualified pension plan that provides certain senior executive officers defined benefits in relation to their compensation.

Net periodic pension cost included the following components:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30** | **Three Months Ended June 30** | **Three Months Ended June 30** | **Three Months Ended June 30** | **Three Months Ended June 30** | **Three Months Ended June 30** |
| | **Qualified Plans** | **Qualified Plans** | **Non-qualified Plans** | **Non-qualified Plans** | **Total** | **Total** |
| | **2025** | **2024** | **2025** | **2024** | **2025** | **2024** |
| | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** |
| Service cost | $5 | $4 | $— | $1 | $5 | $5 |
| Interest cost | 20 | 21 | 1 | 1 | 21 | 22 |
| Expected return on plan assets | (31) | (31) |  |  | (31) | (31) |
| Amortization of actuarial loss | 6 | 6 |  |  | 6 | 6 |
| Net periodic pension cost | $— | $— | $1 | $2 | $1 | $2 |

---

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Six Months Ended June 30** | **Six Months Ended June 30** | **Six Months Ended June 30** | **Six Months Ended June 30** | **Six Months Ended June 30** | **Six Months Ended June 30** |
| | **Qualified Plans** | **Qualified Plans** | **Non-qualified Plans** | **Non-qualified Plans** | **Total** | **Total** |
| | **2025** | **2024** | **2025** | **2024** | **2025** | **2024** |
| | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** |
| Service cost | $10 | $10 | $— | $1 | $10 | $11 |
| Interest cost | 40 | 41 | 2 | 2 | 42 | 43 |
| Expected return on plan assets | (62) | (62) |  |  | (62) | (62) |
| Amortization of actuarial loss | 11 | 11 | 1 | 1 | 12 | 12 |
| Net periodic pension (benefit) cost | $(1) | $— | $3 | $4 | $2 | $4 |

---

The service cost component of net periodic pension (benefit) cost is recorded in salaries and employee benefits on the consolidated statements of income. Components other than service cost are recorded in other non-interest expense on the consolidated statements of income.

Regions' funding policy for the qualified plans is to contribute annually at least the amount required by IRS minimum funding standards. Regions made no contributions to qualified plans during the first six months of 2025.

Regions also provides other postretirement benefits, such as defined benefit health care plans and life insurance plans, that cover certain retired employees. There was no material impact from other postretirement benefits on the consolidated financial statements for the six months ended June 30, 2025 or 2024.

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<u>[**Table of Contents**](#i135e6d1bd40b43728f33de70f283fb9d_7)</u> 

**NOTE 9. DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES** 

The following tables present the notional amount and estimated fair value of derivative instruments:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| | **Notional**<br>**Amount**<sup>(1)</sup> | **Estimated Fair Value** | **Estimated Fair Value** | **Notional<br>Amount** | **Estimated Fair Value** | **Estimated Fair Value** |
| | **Notional**<br>**Amount**<sup>(1)</sup> | **Gain**<sup>(1)</sup> | **Loss**<sup>(1)</sup> | **Notional<br>Amount** | **Gain**<sup>(1)</sup> | **Loss**<sup>(1)</sup> |
| | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** |
| Derivatives in fair value hedging relationships: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest rate swaps | $6337 | $3 | $91 | $5484 | $26 | $95 |
| Derivatives in cash flow hedging relationships: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest rate swaps | 35198 | 96 | 261 | 36660 |  | 718 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest rate options | 2000 | 7 | 3 | 2000 | 4 | 6 |
| Total derivatives in cash flow hedging relationships | 37198 | 103 | 264 | 38660 | 4 | 724 |
| Total derivatives designated as hedging instruments | $43535 | $106 | $355 | $44144 | $30 | $819 |
| Derivatives not designated as hedging instruments: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest rate swaps | $92942 | $1150 | $1112 | $94803 | $1608 | $1598 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest rate options | 11624 | 24 | 12 | 11005 | 31 | 24 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest rate futures and forward commitments | 1552 | 10 | 3 | 1247 | 8 | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other contracts | 14103 | 206 | 200 | 12539 | 139 | 106 |
| Total derivatives not designated as hedging instruments | $120221 | $1390 | $1327 | $119594 | $1786 | $1732 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total derivatives | $163756 | $1496 | $1682 | $163738 | $1816 | $2551 |
| Total gross derivative instruments, before netting |  | $1496 | $1682 |  | $1816 | $2551 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less: Netting adjustments <sup>(2)</sup> |  | 1270 | 1096 |  | 1703 | 1615 |
| Total gross derivative instruments, after netting |  | $226 | $586 |  | $113 | $936 |

---

_________

(1)Derivatives in a gain position are recorded as other assets and derivatives in a loss position are recorded as other liabilities on the consolidated balance sheets. Includes accrued interest as applicable. The table reflects net notional presentation and gross asset and liability presentation to capture the economic impact of the trades.

(2)Netting adjustments represent amounts recorded to convert derivative assets and derivative liabilities from a gross basis to a net basis in accordance with applicable accounting guidance. The net basis takes into account the impact of cash collateral received or posted, legally enforceable master netting agreements, and variation margin that allow Regions to settle derivative contracts with the counterparty on a net basis and to offset the net position with the related cash collateral. Cash collateral, all of which is included as a netting adjustment, totaled $75 million and $106 million for derivative assets at June 30, 2025 and December 31, 2024, respectively. Cash collateral totaled $105 million and $87 million for derivative liabilities at June 30, 2025 and December 31, 2024, respectively.

**HEDGING DERIVATIVES**

Derivatives entered into to manage interest rate risk and facilitate asset/liability management strategies are designated as hedging derivatives. Derivative financial instruments that qualify in a hedging relationship are classified, based on the exposure being hedged, as either fair value hedges or cash flow hedges. See Note 1 "Summary of Significant Accounting Policies" in the Annual Report on Form 10-K for the year ended December 31, 2024 for additional information regarding accounting policies for derivatives.

*FAIR VALUE HEDGES*

Fair value hedge relationships mitigate exposure to the change in fair value of an asset, liability or firm commitment.

Regions enters into interest rate swap agreements to manage interest rate exposure on the Company's fixed-rate borrowings and time deposits. These agreements involve the receipt of fixed-rate amounts in exchange for floating-rate interest payments over the life of the agreements. Regions also enters into interest rate swap agreements to manage interest rate exposure on certain of the Company's fixed-rate prepayable and non-prepayable debt securities available for sale. These agreements involve the payment of fixed-rate amounts in exchange for floating-rate interest receipts.

*CASH FLOW HEDGES*

Cash flow hedge relationships mitigate exposure to the variability of future cash flows or other forecasted transactions.

Regions enters into interest rate swaps, options (e.g., floors, caps and collars), and agreements with a combination of these instruments to manage overall cash flow changes related to interest rate risk exposure on variable rate loans. The agreements effectively modify the Company's exposure to interest rate risk by utilizing receive fixed/pay SOFR interest rate swaps and interest rate options. As of June 30, 2025, Regions was hedging its exposure to the variability in future cash flows into 2034.

As of June 30, 2025, cash flow hedges were held at a pre-tax net loss of $121 million, which includes pre-tax net gains of $20 million related to terminated cash flow floors and swaps. Regions expects to reclassify into earnings approximately $155

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<u>[**Table of Contents**](#i135e6d1bd40b43728f33de70f283fb9d_7)</u> 

million in pre-tax losses due to the net receipt/ payment of interest and amortization on all cash flow hedges within the next twelve months. Included in this amount is $11 million in pre-tax net gains related to the amortization of terminated cash flow floors and swaps.

The following tables present the effect of hedging derivative instruments on the consolidated statements of income and the total amounts for the respective line items affected:

---

| | | | |
|:---|:---|:---|:---|
| | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** |
| | **Interest Income** | **Interest Income** | **Interest Expense** |
| | **Debt securities** | **Loans, including fees** | **Long-term borrowings** |
| | **(In millions)** | **(In millions)** | **(In millions)** |
| Total income (expense) presented in the consolidated statements of income | $286 | $1377 | $(77) |
| Gains/(losses) on fair value hedging relationships: |  |  |  |
| Interest rate contracts: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Amounts related to interest settlements on derivatives | $5 | $— | $(7) |
| &nbsp;&nbsp;&nbsp;&nbsp; Recognized on derivatives | (33) |  | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp; Recognized on hedged items | 33 |  | (9) |
| Income (expense) recognized on fair value hedges | $5 | $— | $(7) |
| Gains/(losses) on cash flow hedging relationships: <sup>(1)</sup> |  |  |  |
| Interest rate contracts: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Realized gains (losses) reclassified from AOCI into net income, pre-tax | $— | $(60) | $— |
| Income (expense) recognized on cash flow hedges | $— | $(60) | $— |

---

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** |
| | **Interest Income** | **Interest Income** | **Interest Expense** | **Interest Expense** |
| | **Debt securities** | **Loans, including fees** | **Long-term borrowings** | **Deposits** |
| | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** |
| Total income (expense) presented in the consolidated statements of income | $219 | $1432 | $(61) | $(502) |
| Gains/(losses) on fair value hedging relationships: |  |  |  |  |
| Interest rate contracts: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Amounts related to interest settlements on derivatives | $2 | $— | $(17) | $— |
| &nbsp;&nbsp;&nbsp;&nbsp; Recognized on derivatives |  |  | 10 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Recognized on hedged items |  |  | (10) |  |
| Income (expense) recognized on fair value hedges | $2 | $— | $(17) | $— |
| Gains/(losses) on cash flow hedging relationships: <sup>(1)</sup> |  |  |  |  |
| Interest rate contracts: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Realized gains (losses) reclassified from AOCI into net income, pre-tax | $— | $(116) | $— | $— |
| Income (expense) recognized on cash flow hedges | $— | $(116) | $— | $— |

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<u>[**Table of Contents**](#i135e6d1bd40b43728f33de70f283fb9d_7)</u> 

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| | | | |
|:---|:---|:---|:---|
| | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** |
| | **Interest Income** | **Interest Income** | **Interest Expense** |
| | **Debt securities** | **Loans, including fees** | **Long-term borrowings** |
| | **(In millions)** | **(In millions)** | **(In millions)** |
| &nbsp;&nbsp;&nbsp;&nbsp;Total income (expense) presented in the consolidated statements of income | $552 | $2719 | $(162) |
| &nbsp;&nbsp;&nbsp;&nbsp;Gains/(losses) on fair value hedging relationships: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate contracts: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amounts related to interest settlements on derivatives | $8 | $— | $(21) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Recognized on derivatives | (79) |  | 34 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Recognized on hedged items | 79 |  | (34) |
| &nbsp;&nbsp;&nbsp;&nbsp;Income (expense) recognized on fair value hedges | $8 | $— | $(21) |
| &nbsp;&nbsp;&nbsp;&nbsp;Gains/(losses) on cash flow hedging relationships: <sup>(1)</sup> |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate contracts: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Realized gains (losses) reclassified from AOCI into net income, pre-tax | $— | $(127) | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;Income (expense) recognized on cash flow hedges | $— | $(127) | $— |

---

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** |
| | **Interest Income** | **Interest Income** | **Interest Expense** | **Interest Expense** |
| | **Debt securities** | **Loans, including fees** | **Long-term borrowings** | **Deposits** |
| | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** |
| Total income (expense) presented in the consolidated statements of income | $428 | $2853 | $(105) | $(997) |
| Gains/(losses) on fair value hedging relationships: |  |  |  |  |
| Interest rate contracts: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amounts related to interest settlements on derivatives | $5 | $— | $(34) | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Recognized on derivatives | 6 |  | 6 | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Recognized on hedged items | (7) |  | (6) | 1 |
| Income (expense) recognized on fair value hedges | $4 | $— | $(34) | $— |
| Gains/(losses) on cash flow hedging relationships: <sup>(1)</sup> |  |  |  |  |
| Interest rate contracts: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Realized gains (losses) reclassified from AOCI into net income, pre-tax | $— | $(233) | $— | $— |
| Income (expense) recognized on cash flow hedges | $— | $(233) | $— | $— |

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_____

(1)See Note 6 for gain or (loss) recognized for cash flow hedges in AOCI.

The following tables present the carrying amount and associated cumulative basis adjustment related to the application of hedge accounting that is included in the carrying amount of hedged assets and liabilities in fair value hedging relationships.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **June 30, 2025** | **June 30, 2025** | **December 31, 2024** | **December 31, 2024** |
| | **Hedged Items Currently Designated** | **Hedged Items Currently Designated** | **Hedged Items Currently Designated** | **Hedged Items Currently Designated** |
| | **Carrying Amount of Assets/(Liabilities)** | **Hedge Accounting Basis Adjustment** | **Carrying Amount of Assets/(Liabilities)** | **Hedge Accounting Basis Adjustment** |
| | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** |
| Debt securities available for sale <sup>(1)</sup> | $6716 | $35 | $3304 | $(22) |
| Long-term borrowings | (2342) | 57 | (3058) | 91 |

---

_____

(1) Carrying amount represents amortized cost basis.

At June 30, 2025 and December 31, 2024, the Company designated interest rate swaps as fair value hedges of debt securities available for sale under which the Company designated $1.8 billion and $750 million, respectively, as the hedged amount from a closed portfolio of prepayable financial assets with a carrying amount of $4.5 billion and $1.8 billion, respectively. At June 30, 2025, approximately $10 million of the hedge accounting basis adjustments related to active portfolio layer method hedges. During 2025 the Company terminated fair value hedges related to available for sale debt securities. The terminated hedges had a remaining basis adjustment of $23 million.

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<u>[**Table of Contents**](#i135e6d1bd40b43728f33de70f283fb9d_7)</u> 

**DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS**

The Company holds a portfolio of derivative instruments not designated as accounting hedges, therefore these derivatives are marked-to-market through earnings (in capital markets income or mortgage income as appropriate) and included in other assets and other liabilities, as appropriate. Refer to Note 20 "Derivative Financial Instruments and Hedging Activities" in the Annual Report on Form 10-K for the year ended December 31, 2024 for more information regarding these derivative instruments.

The following table presents the location and amount of gain or (loss) recognized in income on derivatives not designated as hedging instruments in the consolidated statements of income for the periods presented below:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30** | **Three Months Ended June 30** | **Six Months Ended June 30** | **Six Months Ended June 30** |
| **<u>Derivatives Not Designated as Hedging Instruments</u>** | **2025** | **2024** | **2025** | **2024** |
|  | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** |
| Capital markets income: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest rate swaps | $5 | $6 | $11 | $15 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest rate options | 13 | 14 | 21 | 23 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest rate futures and forward commitments | 5 | 6 | 8 | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other contracts | (19) | (1) | (21) | 5 |
| Total capital markets income | 4 | 25 | 19 | 57 |
| Mortgage income: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest rate swaps | (4) | (8) | 12 | (23) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest rate options | (1) | (2) |  | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest rate futures and forward commitments | 1 | (2) |  | 8 |
| Total mortgage income | (4) | (12) | 12 | (16) |
|  | $— | $13 | $31 | $41 |

---

**CREDIT DERIVATIVES**

Regions has both bought and sold credit protection in the form of participations on interest rate swaps (swap participations). These swap participations, which meet the definition of credit derivatives, were entered into in the ordinary course of business to serve the credit needs of customers. Swap participations, whereby Regions has purchased credit protection, entitle Regions to receive a payment from the counterparty if the customer fails to make payment on any amounts due to Regions upon early termination of the swap transaction and have maturities between 2025 and 2030. Swap participations, whereby Regions has sold credit protection have maturities between 2025 and 2035. For contracts where Regions sold credit protection, Regions would be required to make payment to the counterparty if the customer fails to make payment on any amounts due to the counterparty upon early termination of the swap transaction. Regions bases the current status of the prepayment/performance risk on bought and sold credit derivatives on recently issued internal risk ratings consistent with the risk management practices of unfunded commitments.

Regions' maximum potential amount of future payments under these contracts as of June 30, 2025 was approximately $534 million. This scenario occurs if variable interest rates were at zero percent and all counterparties defaulted with zero recovery. The fair value of sold protection at June 30, 2025 and 2024 was immaterial. In transactions where Regions has sold credit protection, recourse to collateral associated with the original swap transaction is available to offset some or all of Regions' obligation.

**CONTINGENT FEATURES**

Certain of Regions' derivative instrument contracts with broker-dealers contain credit-related termination provisions and/or credit-related provisions regarding the posting of collateral, allowing those broker-dealers to terminate the contracts in the event that Regions' and/or Regions Bank's credit ratings falls below specified ratings from certain major credit rating agencies. The aggregate fair values of all derivative instruments with any credit-risk-related contingent features that were in a liability position on June 30, 2025 and December 31, 2024, were $47 million and $47 million, respectively, for which Regions had posted collateral of $43 million and $34 million, respectively, in the normal course of business.

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<u>[**Table of Contents**](#i135e6d1bd40b43728f33de70f283fb9d_7)</u> 

**NOTE 10. FAIR VALUE MEASUREMENTS** 

See Note 1 "Summary of Significant Accounting Policies" to the consolidated financial statements of the Annual Report on Form 10-K for the year ended December 31, 2024 for a description of valuation methodologies for assets and liabilities measured at fair value on a recurring and non-recurring basis. Assets and liabilities measured at fair value rarely transfer between Level 1 and Level 2 measurements. Marketable equity securities and debt securities available for sale may be periodically transferred to or from Level 3 valuation based on management's conclusion regarding the observability of inputs used in valuing the securities. Such transfers are accounted for as if they occur at the beginning of a reporting period.

The following table presents assets and liabilities measured at estimated fair value on a recurring basis:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| | **Level 1** | **Level 2** | **Level 3** <sup>(1)</sup> | **Total<br>Estimated Fair Value** | **Level 1** | **Level 2** | **Level 3** <sup>(1)</sup> | **Total<br>Estimated Fair Value** |
| | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** |
| **Recurring fair value measurements** | | | | | | | | |
| &nbsp;&nbsp;Debt securities available for sale: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. Treasury securities | $2105 | $— | $— | $2105 | $2003 | $— | $— | $2003 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Federal agency securities |  | 487 |  | 487 |  | 444 |  | 444 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Obligations of states and political subdivisions |  | 2 |  | 2 |  | 2 |  | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mortgage-backed securities: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Residential agency |  | 18556 |  | 18556 |  | 18945 |  | 18945 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial agency |  | 4536 |  | 4536 |  | 4090 |  | 4090 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial non-agency |  | 83 |  | 83 |  | 82 |  | 82 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Corporate and other debt securities |  | 561 | 3 | 564 |  | 655 | 3 | 658 |
| &nbsp;&nbsp;Total debt securities available for sale | $2105 | $24225 | $3 | $26333 | $2003 | $24218 | $3 | $26224 |
| &nbsp;&nbsp;Loans held for sale | $— | $286 | $— | $286 | $— | $234 | $— | $234 |
| &nbsp;&nbsp;Marketable equity securities in other earning assets | $913 | $— | $— | $913 | $819 | $— | $— | $819 |
| &nbsp;&nbsp;Residential mortgage servicing rights | $— | $— | $988 | $988 | $— | $— | $1007 | $1007 |
| &nbsp;&nbsp;Commercial mortgage servicing rights through non-DUS agency programs | $— | $— | $93 | $93 | $— | $— | $97 | $97 |
| &nbsp;&nbsp;Derivative assets <sup>(2)</sup>: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest rate swaps | $— | $1249 | $— | $1249 | $— | $1634 | $— | $1634 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest rate options |  | 22 | 9 | 31 |  | 30 | 5 | 35 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest rate futures and forward commitments |  | 10 |  | 10 |  | 8 |  | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other contracts | 4 | 202 |  | 206 | 13 | 126 |  | 139 |
| &nbsp;&nbsp;Total derivative assets | $4 | $1483 | $9 | $1496 | $13 | $1798 | $5 | $1816 |
| &nbsp;&nbsp;Derivative liabilities <sup>(2)</sup>: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest rate swaps | $— | $1464 | $— | $1464 | $— | $2411 | $— | $2411 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest rate options |  | 15 |  | 15 |  | 30 |  | 30 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest rate futures and forward commitments |  | 3 |  | 3 |  | 4 |  | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other contracts | 4 | 196 |  | 200 | 3 | 103 |  | 106 |
| &nbsp;&nbsp;Total derivative liabilities | $4 | $1678 | $— | $1682 | $3 | $2548 | $— | $2551 |
| &nbsp;&nbsp;Securities sold, but not yet purchased | $91 | $— | $— | $91 | $147 | $— | $— | $147 |

---

_________

(1)All following disclosures related to Level 3 recurring assets do not include those deemed to be immaterial.

(2)As permitted under U.S. GAAP, variation margin collateral payments made or received for derivatives that are centrally cleared are legally characterized as settled. As such, these derivative assets and derivative liabilities and the related variation margin collateral are presented on a net basis on the balance sheet.

Assets and liabilities in all levels could result in volatile and material price fluctuations. Realized and unrealized gains and losses on Level 3 assets represent only a portion of the risk to market fluctuations in Regions' consolidated balance sheets. See Note 5 for a reconciliation of beginning and ending balances of these MSRs for three and six months ended June 30, 2025 and 2024.

**RECURRING FAIR VALUE MEASUREMENTS USING SIGNIFICANT UNOBSERVABLE INPUTS**

<u>Residential mortgage servicing rights</u>

The significant unobservable inputs used in the fair value measurement of residential MSRs are CPR and OAS. This valuation requires generating cash flow projections over multiple interest rate scenarios and discounting those cash flows at a risk-adjusted rate. Additionally, the impact of prepayments and changes in the OAS are based on a variety of underlying inputs including servicing costs. Increases or decreases to the underlying cash flow inputs will have a corresponding impact on the value of the MSR asset. The net change in unrealized gains (losses) included in earnings related to MSRs held at period end are disclosed as the changes in valuation inputs or assumptions included in the MSR rollforward table in Note 5 .

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<u>[**Table of Contents**](#i135e6d1bd40b43728f33de70f283fb9d_7)</u> 

<u>Commercial mortgage servicing rights through non-DUS agency programs</u>

The significant unobservable inputs used in the fair value measurement of commercial MSRs are CPR and the discount rate. This valuation requires generating cash flow projections over multiple interest rate scenarios and discounting those cash flows at a risk-adjusted rate. Additionally, the impact of prepayments and changes in the discount rate are based on a variety of underlying inputs including servicing costs. Increases or decreases to the underlying cash flow inputs will have a corresponding impact on the value of the MSR asset. The net change in unrealized gains (losses) included in earnings related to MSRs held at period end are disclosed as the changes in valuation inputs or assumptions included in the MSR rollforward table in Note 5 .

The following tables present detailed information regarding material assets and liabilities measured at fair value using significant unobservable inputs (Level 3) as of June 30, 2025 and December 31, 2024. The tables include the valuation techniques and the significant unobservable inputs utilized. The range of each significant unobservable input as well as the weighted-average within the range utilized at June 30, 2025 and December 31, 2024 are included. Following the tables are descriptions of the valuation techniques and the sensitivity of the techniques to changes in the significant unobservable inputs.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
| | **Level 3<br>Estimated Fair Value** | **Valuation<br>Technique** | **Unobservable<br>Input(s)** | **Quantitative Range of<br>Unobservable Inputs and<br>(Weighted-Average)** |
| | **(Dollars in millions)** | **(Dollars in millions)** | **(Dollars in millions)** | **(Dollars in millions)** |
| **Recurring fair value measurements:** | | | | |
| Residential mortgage servicing rights <sup>(1)</sup> | $988 | Discounted cash flow | Weighted-average CPR (%) | 3.9% - 16.8% (7.4%) |
|  |  |  | OAS (%) | 4.7% - 8.0% (5.0%) |
| Commercial mortgage servicing rights through non-DUS agency programs <sup>(1)</sup> | $93 | Discounted cash flow | Weighted-average CPR (%) | 6.3% - 7.5% (7.2%) |
|  |  |  | Discount rate (%) | 8.0% - 10.0% (8.2%) |

---

_______

(1)See Note 5 for additional disclosures related to assumptions used in the fair value calculation for residential and commercial mortgage servicing rights.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| | **Level 3<br>Estimated Fair Value** | **Valuation<br>Technique** | **Unobservable<br>Input(s)** | **Quantitative Range of<br>Unobservable Inputs and<br>(Weighted-Average)** |
| | **(Dollars in millions)** | **(Dollars in millions)** | **(Dollars in millions)** | **(Dollars in millions)** |
| **Recurring fair value measurements:** | | | | |
| Residential mortgage servicing rights <sup>(1)</sup> | $1007 | Discounted cash flow | Weighted-average CPR (%) | 4.6% - 23.1% (8.0%) |
|  |  |  | OAS (%) | 4.8% -7.7% (5.1%) |
| Commercial mortgage servicing rights through non-DUS agency programs <sup>(1)</sup> | $97 | Discounted cash flow | Weighted-average CPR (%) | 5.4% - 10.6% (7.7%) |
|  |  |  | Discount rate (%) | 7.0% -8.0% (7.1%) |

---

_______

(1)See Note 6 to the consolidated financial statements of the Annual Report on Form 10-K for the year ended December 31, 2024 for additional disclosures related to assumptions used in the fair value calculations for residential and commercial mortgage servicing rights.

**FAIR VALUE OPTION**

Regions has elected the fair value option for all eligible agency residential first mortgage loans originated with the intent to sell. This election allows for a more effective offset of the changes in fair values of the loans and the derivative instruments used to economically hedge them without the burden of complying with the requirements for hedge accounting. Fair values of residential first mortgage loans held for sale are based on traded market prices of similar assets where available and/or discounted cash flows at market interest rates, adjusted for securitization activities that include servicing values and market conditions, and are recorded in loans held for sale. At June 30, 2025, the aggregate fair value of these loans totaled $261 million compared to aggregate unpaid principal of $254 million. At December 31, 2024, the aggregate fair value of these loans totaled $222 million compared to aggregate unpaid principal of $219 million.

Interest income on residential first mortgage loans held for sale is recognized based on contractual rates and is reflected in interest income on loans held for sale. Net gains and losses resulting from changes in fair value of residential mortgage loans held for sale, which were recorded in mortgage income in the consolidated statements of income during the three and six months ended June 30, 2025 and 2024, were immaterial. These changes in fair value are mostly offset by economic hedging activities. An immaterial portion of these amounts was attributable to changes in instrument-specific credit risk.

**NON-RECURRING FAIR VALUE MEASUREMENTS**

Items measured at fair value on a non-recurring basis include loans held for sale for which the fair value option has not been elected, foreclosed property and other real estate and equity investments without a readily determinable fair value; all of which may be considered either Level 2 or Level 3 valuation measurements. Non-recurring fair value adjustments related to loans held for sale, foreclosed property and other real estate are typically a result of the application of lower of cost or fair value

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<u>[**Table of Contents**](#i135e6d1bd40b43728f33de70f283fb9d_7)</u> 

accounting during the period. Non-recurring fair value adjustments related to equity investments without readily determinable fair values are the result of impairments or price changes from observable transactions. The balances of each of these assets, as well as the related fair value adjustments during the periods, were immaterial at both June 30, 2025 and December 31, 2024.

**FINANCIAL INSTRUMENTS NOT RECORDED AT FAIR VALUE**

For financial instruments not recorded at fair value, estimates of fair value are based on relevant market data and information about the instruments. The following tables present the carrying amounts and estimated fair values, as well as the level within the fair value hierarchy, of the Company's financial instruments not recorded at fair value as of June 30, 2025 and December 31, 2024.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
| | **Carrying<br>Amount** | **Estimated**<br>**Fair**<br>**Value**<sup>(1)</sup> | **Level 1** | **Level 2** | **Level 3** |
| | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** |
| Financial assets: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $11175 | $11175 | $11175 | $— | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Debt securities held to maturity | 5972 | 5814 |  | 5814 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loans held for sale | 309 | 309 |  | 271 | 38 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loans (excluding leases), net of unearned income and allowance for loan losses<sup>(2)(3)</sup> | 93513 | 90813 |  |  | 90813 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other earning assets | 769 | 769 |  | 769 |  |
| Financial liabilities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deposits with no stated maturity<sup>(4)</sup> | 115625 | 115625 |  | 115625 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Time deposits<sup>(4)</sup> | 15294 | 15265 |  | 15265 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Long-term borrowings | 5279 | 5373 |  | 5372 | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loan commitments and letters of credit | 164 | 164 |  |  | 164 |

---

_________

(1)Estimated fair values are consistent with an exit price concept. The assumptions used to estimate the fair values are intended to approximate those that a market participant would use in a hypothetical orderly transaction. In estimating fair value, the Company makes adjustments for estimated changes in interest rates, market liquidity and credit spreads in the periods they are deemed to have occurred.

(2)The estimated fair value of portfolio loans assumes sale of the loans to a third-party financial investor. Accordingly, the value to the Company if the loans were held to maturity is not reflected in the fair value estimate. The fair value discount on the loan portfolio's net carrying amount at June 30, 2025 was $2.7 billion or 2.9 percent.

(3)Excluded from this table is the sales-type, direct financing, and leveraged lease carrying amount of $1.6 billion at June 30, 2025.

(4)The fair value of non-interest-bearing deposit accounts, interest-bearing checking accounts, savings accounts, and money market accounts is the amount payable on demand at the reporting date (i.e., the carrying amount) as these instruments have an indeterminate maturity date. Fair values for time deposits are estimated by using discounted cash flow analyses, based on market spreads to benchmark rates.

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<u>[**Table of Contents**](#i135e6d1bd40b43728f33de70f283fb9d_7)</u> 

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| | **Carrying<br>Amount** | **Estimated**<br>**Fair**<br>**Value**<sup>(1)</sup> | **Level 1** | **Level 2** | **Level 3** |
| | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** |
| Financial assets: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $10712 | $10712 | $10712 | $— | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Debt securities held to maturity | 4427 | 4226 |  | 4226 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loans held for sale | 360 | 360 |  | 360 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loans (excluding leases), net of unearned income and allowance for loan losses<sup>(2)(3)</sup> | 93424 | 89907 |  |  | 89907 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other earning assets | 797 | 797 |  | 797 |  |
| Financial liabilities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deposits with no stated maturity<sup>(4)</sup> | 111883 | 111883 |  | 111883 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Time deposits<sup>(4)</sup> | 15720 | 15694 |  | 15694 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Short-term borrowings | 500 | 500 |  | 500 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Long-term borrowings | 5993 | 6059 |  | 6058 | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loan commitments and letters of credit | 149 | 149 |  |  | 149 |

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_________

(1)Estimated fair values are consistent with an exit price concept. The assumptions used to estimate the fair values are intended to approximate those that a market participant would use in a hypothetical orderly transaction. In estimating fair value, the Company makes adjustments for estimated changes in interest rates, market liquidity and credit spreads in the periods they are deemed to have occurred.

(2)The estimated fair value of portfolio loans assumes sale of the loans to a third-party financial investor. Accordingly, the value to the Company if the loans were held to maturity is not reflected in the fair value estimate. The fair value discount on the loan portfolio's net carrying amount at December 31, 2024 was $3.5 billion or 3.8 percent.

(3)Excluded from this table is the sales-type, direct financing, and leveraged lease carrying amount of $1.7 billion at December 31, 2024.

(4)The fair value of non-interest-bearing deposit accounts, interest-bearing checking accounts, savings accounts, and money market accounts is the amount payable on demand at the reporting date (i.e., the carrying amount) as these instruments have an indeterminate maturity date. Fair values for time deposits are estimated by using discounted cash flow analyses, based on market spreads to benchmark rates.

**NOTE 11. BUSINESS SEGMENT INFORMATION** 

Each of Regions' reportable segments is a strategic business unit that serves specific needs of Regions' customers based on the products and services provided. The Company has three reportable segments: Corporate Bank, Consumer Bank, and Wealth Management, with the remainder in Other. The segments are based on the manner in which the CODM reviews the Company's performance. The Company's CODM is the CEO, President and Chair of the Board. As a part of the CODM review, pre-tax income is utilized to allocate resources amongst segments. Additional information about the Company's reportable segments is included in Regions' Annual Report on Form 10-K for the year ended December 31, 2024.

The application and development of management reporting methodologies is a dynamic process and is subject to periodic enhancements. As these enhancements are made, financial results presented by each reportable segment may be periodically revised and the prior periods updated to reflect these enhancements. Accordingly, the prior periods were updated to reflect these enhancements.

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<u>[**Table of Contents**](#i135e6d1bd40b43728f33de70f283fb9d_7)</u> 

The following tables present financial information, including non-interest income disaggregated by major product category, for each reportable segment:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** |
| | **Corporate Bank** | **Consumer Bank** | **Wealth<br>Management** | **Other** | **Consolidated** |
| | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** |
| Net interest income | $474 | $742 | $43 | $— | $1259 |
| Provision for (benefit from) credit losses | 88 | 68 | 2 | (32) | 126 |
| Non-interest income: |  |  |  |  |  |
| &nbsp;&nbsp;Service charges on deposit accounts | 60 | 90 | 1 |  | 151 |
| &nbsp;&nbsp;Card and ATM fees | 11 | 114 |  |  | 125 |
| &nbsp;&nbsp;Investment management and trust fee income |  |  | 90 |  | 90 |
| &nbsp;&nbsp;Capital markets income | 83 |  |  |  | 83 |
| &nbsp;&nbsp;Mortgage income |  | 48 |  |  | 48 |
| &nbsp;&nbsp;Investment services fee income |  |  | 43 |  | 43 |
| &nbsp;&nbsp;Commercial credit fee income | 29 |  |  |  | 29 |
| &nbsp;&nbsp;Bank-owned life insurance |  |  |  | 24 | 24 |
| &nbsp;&nbsp;Securities gains (losses), net |  |  |  | (1) | (1) |
| &nbsp;&nbsp;Market value adjustments on employee benefit assets  |  |  |  | 16 | 16 |
| &nbsp;&nbsp;Other miscellaneous income (loss) | 42 | 20 | 1 | (25) | 38 |
| Total non-interest income | 225 | 272 | 135 | 14 | 646 |
| Non-interest expense: |  |  |  |  |  |
| &nbsp;&nbsp;Salaries and employee benefits | 137 | 179 | 67 | 275 | 658 |
| &nbsp;&nbsp;Equipment and software expense | 5 | 24 | 1 | 74 | 104 |
| &nbsp;&nbsp;Net occupancy expense | 7 | 55 | 3 | 7 | 72 |
| &nbsp;&nbsp;Other expenses (benefits) <sup>(1)</sup> | 162 | 369 | 48 | (340) | 239 |
| Total non-interest expense | 311 | 627 | 119 | 16 | 1073 |
| Income before income taxes | 300 | 319 | 57 | 30 | 706 |
| Income tax expense (benefit) | 75 | 80 | 14 | (26) | 143 |
| Net income | $225 | $239 | $43 | $56 | $563 |
| Average assets | $69768 | $37479 | $2112 | $48615 | $157974 |

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<u>[**Table of Contents**](#i135e6d1bd40b43728f33de70f283fb9d_7)</u> 

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** |
| | **Corporate Bank** | **Consumer Bank** | **Wealth<br>Management** | **Other** | **Consolidated** |
| | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** |
| Net interest income | $449 | $697 | $40 | $— | $1186 |
| Provision for (benefit from) credit losses | 91 | 66 | 2 | (57) | $102 |
| Non-interest income (loss): |  |  |  |  |  |
| &nbsp;&nbsp;Service charges on deposit accounts | 54 | 95 | 1 | 1 | 151 |
| &nbsp;&nbsp;Card and ATM fees | 11 | 109 |  |  | 120 |
| &nbsp;&nbsp;Investment management and trust fee income |  |  | 83 |  | 83 |
| &nbsp;&nbsp;Capital markets income | 67 | 1 |  |  | 68 |
| &nbsp;&nbsp;Mortgage income |  | 34 |  |  | 34 |
| &nbsp;&nbsp;Investment services fee income |  |  | 39 |  | 39 |
| &nbsp;&nbsp;Commercial credit fee income | 28 |  |  |  | 28 |
| &nbsp;&nbsp;Bank-owned life insurance |  |  |  | 30 | 30 |
| &nbsp;&nbsp;Securities gains (losses), net |  |  |  | (50) | (50) |
| &nbsp;&nbsp;Market value adjustments on employee benefit assets  |  |  |  | 2 | 2 |
| &nbsp;&nbsp;Other miscellaneous income | 39 | 20 | 1 | (20) | 40 |
| Total non-interest income (loss) | 199 | 259 | 124 | (37) | 545 |
| Non-interest expense: |  |  |  |  |  |
| &nbsp;&nbsp;Salaries and employee benefits | 133 | 178 | 63 | 235 | 609 |
| &nbsp;&nbsp;Equipment and software expense | 5 | 26 |  | 69 | 100 |
| &nbsp;&nbsp;Net occupancy expense | 7 | 51 | 3 | 7 | 68 |
| &nbsp;&nbsp;Other expenses <sup>(1)</sup> | 162 | 316 | 42 | (293) | 227 |
| Total non-interest expense | 307 | 571 | 108 | 18 | 1004 |
| Income before income taxes | 250 | 319 | 54 | 2 | 625 |
| Income tax expense (benefit) | 62 | 80 | 14 | (32) | 124 |
| Net income | $188 | $239 | $40 | $34 | $501 |
| Average assets | $68934 | $38007 | $2053 | $43873 | $152867 |

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** |
| | **Corporate Bank** | **Consumer Bank** | **Wealth<br>Management** | **Other** | **Consolidated** |
| | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** |
| Net interest income | $916 | $1451 | $86 | $— | $2453 |
| Provision for (benefit from) credit losses | 175 | 134 | 4 | (63) | 250 |
| Non-interest income (loss): |  |  |  |  |  |
| &nbsp;&nbsp;Service charges on deposit accounts | 124 | 186 | 2 |  | 312 |
| &nbsp;&nbsp;Card and ATM fees | 22 | 220 |  |  | 242 |
| &nbsp;&nbsp;Investment management and trust fee income |  |  | 176 |  | 176 |
| &nbsp;&nbsp;Capital markets income | 162 |  | 1 |  | 163 |
| &nbsp;&nbsp;Mortgage income |  | 88 |  |  | 88 |
| &nbsp;&nbsp;Investment services fee income |  |  | 86 |  | 86 |
| &nbsp;&nbsp;Commercial credit fee income | 56 |  |  |  | 56 |
| &nbsp;&nbsp;Bank-owned life insurance |  |  |  | 47 | 47 |
| &nbsp;&nbsp;Securities gains (losses), net |  |  |  | (26) | (26) |
| &nbsp;&nbsp;Market value adjustments on employee benefit assets  |  |  |  | 13 | 13 |
| &nbsp;&nbsp;Other miscellaneous income (loss) | 84 | 39 | 2 | (46) | 79 |
| Total non-interest income (loss) | 448 | 533 | 267 | (12) | 1236 |
| Non-interest expense: |  |  |  |  |  |
| &nbsp;&nbsp;Salaries and employee benefits | 282 | 358 | 137 | 506 | 1283 |
| &nbsp;&nbsp;Equipment and software expense | 10 | 48 | 1 | 144 | 203 |
| &nbsp;&nbsp;Net occupancy expense | 14 | 108 | 6 | 14 | 142 |
| &nbsp;&nbsp;Other expenses (benefits) <sup>(1)</sup> | 315 | 708 | 94 | (633) | 484 |
| Total non-interest expense  | 621 | 1222 | 238 | 31 | 2112 |
| Income before income taxes | 568 | 628 | 111 | 20 | 1327 |
| Income (loss) before income taxes | 141 | 157 | 28 | (52) | 274 |
| Net income | $427 | $471 | $83 | $72 | $1053 |
| Average assets | $69530 | $37574 | $2123 | $48201 | $157428 |

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** |
| | **Corporate Bank** | **Consumer Bank** | **Wealth<br>Management** | **Other** | **Consolidated** |
| | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** |
| Net interest income | $901 | $1389 | $80 | $— | $2370 |
| Provision for (benefit from) credit losses | 182 | 134 | 4 | (66) | 254 |
| Non-interest income (loss): |  |  |  |  |  |
| &nbsp;&nbsp;Service charges on deposit accounts | 109 | 187 | 2 | 1 | 299 |
| &nbsp;&nbsp;Card and ATM fees | 22 | 214 |  |  | 236 |
| &nbsp;&nbsp;Investment management and trust fee income |  |  | 164 |  | 164 |
| &nbsp;&nbsp;Capital markets income | 158 | 1 |  |  | 159 |
| &nbsp;&nbsp;Mortgage income |  | 75 |  |  | 75 |
| &nbsp;&nbsp;Investment services fee income |  |  | 77 |  | 77 |
| &nbsp;&nbsp;Commercial credit fee income | 55 |  |  |  | 55 |
| &nbsp;&nbsp;Bank-owned life insurance |  |  |  | 53 | 53 |
| &nbsp;&nbsp;Securities gains (losses), net |  |  |  | (100) | (100) |
| &nbsp;&nbsp;Market value adjustments on employee benefit assets  |  |  |  | 17 | 17 |
| &nbsp;&nbsp;Other miscellaneous income (loss) | 73 | 39 | 1 | (40) | 73 |
| Total non-interest income (loss) | 417 | 516 | 244 | (69) | 1108 |
| Non-interest expense: |  |  |  |  |  |
| &nbsp;&nbsp;Salaries and employee benefits | 283 | 361 | 129 | 494 | 1267 |
| &nbsp;&nbsp;Equipment and software expense | 9 | 52 | 1 | 139 | 201 |
| &nbsp;&nbsp;Net occupancy expense | 14 | 107 | 6 | 15 | 142 |
| &nbsp;&nbsp;Other expenses (benefit) <sup>(1)</sup> | 325 | 678 | 83 | (561) | 525 |
| Total non-interest expense  | 631 | 1198 | 219 | 87 | 2135 |
| Income (loss) before income taxes | 505 | 573 | 101 | (90) | 1089 |
| Income tax expense (benefit) | 126 | 143 | 25 | (74) | 220 |
| Net income (loss) | $379 | $430 | $76 | $(16) | $869 |
| Average assets | $68938 | $38021 | $2044 | $43152 | $152155 |

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___

(1) Other miscellaneous expenses are primarily comprised of outside services, marketing, professional, legal and regulatory expenses, credit and checkcard expenses, and FDIC insurance assessment fees.

**NOTE 12. COMMITMENTS, CONTINGENCIES AND GUARANTEES** 

**COMMERCIAL COMMITMENTS** 

Regions issues off-balance sheet financial instruments in connection with lending activities. The credit risk associated with these instruments is essentially the same as that involved in extending loans to customers and is subject to Regions' normal credit approval policies and procedures. Regions measures inherent risk associated with these instruments by recording a reserve for unfunded commitments based on an assessment of the likelihood that the guarantee will be funded and the creditworthiness of the customer or counterparty. Collateral is obtained based on management's assessment of the creditworthiness of the customer. Credit risk is represented in unused commitments to extend credit, standby letters of credit and commercial letters of credit. Refer to Note 23 "Commitments, Contingencies and Guarantees" in the Annual Report on Form 10-K for the year ended December 31, 2024 for more information regarding these instruments.

Credit risk associated with these instruments is represented by the contractual amounts indicated in the following table:

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| | | |
|:---|:---|:---|
| | **June 30, 2025** | **December 31, 2024** |
| | **(In millions)** | **(In millions)** |
| Unused commitments to extend credit | $65468 | $63232 |
| Standby letters of credit | 2142 | 2096 |
| Commercial letters of credit | 103 | 58 |
| Liabilities associated with standby letters of credit | 33 | 33 |
| Assets associated with standby letters of credit | 34 | 35 |
| Reserve for unfunded credit commitments | 131 | 116 |

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**LEGAL CONTINGENCIES**

Regions and its subsidiaries are routinely subject to actual or threatened legal proceedings, including litigation and regulatory matters, arising in the ordinary course of business. Litigation matters range from individual actions involving a single plaintiff to class action lawsuits and can involve claims for substantial or indeterminate alleged damages or for injunctive

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or other relief. Regulatory investigations and enforcement matters may involve formal or informal proceedings and other inquiries initiated by various governmental agencies, law enforcement authorities, and self-regulatory organizations, and can result in fines, penalties, restitution, changes to Regions' business practices, and other related costs, including reputational damage. At any given time, these legal proceedings are at varying stages of adjudication, arbitration, or investigation, and may relate to a variety of topics, including common law tort and contract claims, as well as statutory consumer protection-related claims, among others.

Assessment of exposure that could result from legal proceedings is complex because these proceedings often involve inherently unpredictable factors, including, but not limited to, the following: whether the proceeding is in early stages; whether damages or the amount of potential fines, penalties, and restitution are unspecified, unsupported, or uncertain; whether there is a potential for punitive or other pecuniary damages; whether the matter involves legal uncertainties, including novel issues of law; whether the matter involves multiple parties and/or jurisdictions; whether discovery or other investigation has begun or is not complete; whether material facts may be disputed or unsubstantiated; whether meaningful settlement discussions have commenced; and whether the matter involves class allegations. As a result of these complexities, Regions may be unable to develop an estimate or range of loss.

Regions evaluates legal proceedings based on information currently available, including advice of counsel. Regions establishes accruals for those matters when a loss is considered probable and the related amount is reasonably estimable. Additionally, when it is practicable and reasonably possible that it may experience losses in excess of established accruals, Regions estimates possible loss contingencies. Regions currently estimates that the aggregate amount of reasonably possible losses that it may experience, in excess of what has been accrued, is immaterial. While the final outcomes of legal proceedings are inherently unpredictable, management is currently of the opinion that the outcomes of pending and threatened matters will not have a material effect on Regions' business, consolidated financial position, results of operations or cash flows as a whole.

As available information changes, the matters for which Regions is able to estimate, as well as the estimates themselves, will be adjusted accordingly. Regions' estimates are subject to significant judgment and uncertainties, and the matters underlying the estimates will change from time to time. In the event of unexpected future developments, it is possible that an adverse outcome in any such matter could be material to Regions' business, consolidated financial position, results of operations, or cash flows as a whole for any particular reporting period of occurrence.

Some of Regions' exposure with respect to loss contingencies may be offset by applicable insurance coverage. However, in determining the amounts of any accruals or estimates of possible loss contingencies, Regions does not take into account the availability of insurance coverage. To the extent that Regions has an insurance recovery, the proceeds are recorded in the period the recovery is received.

**GUARANTEES** 

*FANNIE MAE LOSS SHARE GUARANTEE* 

Regions sells commercial loans to Fannie Mae through the DUS lending program and through other platforms. The DUS program provides liquidity to the multi-family housing market. Regions services loans sold to Fannie Mae and is required to provide a loss share guarantee equal to one-third of the principal balance for the majority of the commercial servicing portfolio. At June 30, 2025 and December 31, 2024, the Company's DUS servicing portfolio totaled approximately $7.4 billion and $7.0 billion, respectively. Regions has additional loans sold to Fannie Mae outside of the DUS program that are also subject to a loss share guarantee and at June 30, 2025 and December 31, 2024, these serviced loans totaled approximately $721 million and $665 million, respectively. Regions' maximum quantifiable contingent liability related to all loans subject to a loss share guarantee was approximately $2.6 billion and $2.4 billion at June 30, 2025 and December 31, 2024, respectively. The Company would be liable for this amount only if all of the loans it services for Fannie Mae, for which the Company retains some risk of loss, were to default and all of the collateral underlying these loans was determined to be without value at the time of settlement. Therefore, the maximum quantifiable contingent liability is not representative of the actual loss the Company would be expected to incur. The estimated fair value of the associated loss share guarantee recorded as a liability on the Company's consolidated balance sheets was immaterial at both June 30, 2025 and December 31, 2024. Refer to Note 1 "Summary of Significant Accounting Policies" in the Annual Report on Form 10-K for the year ended December 31, 2024 for additional information.

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**NOTE 13. RECENT ACCOUNTING PRONOUNCEMENTS**

The following table provides a brief description of accounting standards adopted in 2025 and those that could have a material impact to Regions' consolidated financial statements upon adoption in the future.

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| | | | |
|:---|:---|:---|:---|
| **Standard** | **Description** | **Required Date of Adoption** | **Effect on Regions' financial statements or other significant matters** |
| **Standards Adopted (or partially adopted) in 2025** | **Standards Adopted (or partially adopted) in 2025** | **Standards Adopted (or partially adopted) in 2025** | **Standards Adopted (or partially adopted) in 2025** |
| ASU 2023-05, Business Combinations—<br>Joint Venture Formations (Subtopic 805-60) | This Update requires certain joint ventures, upon formation, to use a new basis of accounting by applying most aspects of the acquisition method for business combinations. New joint ventures generally will recognize and initially measure assets and liabilities at fair value. The Update is effective for all joint ventures with a formation date on or after January 1, 2025. Early adoption is permitted. | January 1, 2025 | Regions adopted this guidance as of January 1, 2025 with no material impact. |
| ASU 2023-09, Income Taxes (Topic 740) Improvements to Income Tax Disclosures | The ASU improves the transparency of income tax disclosures by requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) income taxes paid disaggregated by jurisdiction. It also includes certain other amendments to improve the effectiveness of income tax disclosures. | January 1, 2025 | Regions adopted this guidance as of January 1, 2025 for disclosure to appear in the Annual Report on Form 10-K for the year ended December 31, 2025 with no material impact. |

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| | | | |
|:---|:---|:---|:---|
| **Standards Not Yet Adopted** | **Standards Not Yet Adopted** | **Standards Not Yet Adopted** | **Standards Not Yet Adopted** |
| ASU 2023-06, Disclosure Improvements: Codification Amendments in Response to the SEC's Disclosure Update and Simplification Initiative | This Update incorporates into the Codification 14 of the 27 disclosures referred by the SEC in Release No. 33-10532, Disclosure Update and Simplification. This Update clarifies and improves the disclosure and presentation requirements of a variety of Topics in the Codification to align with the SEC's regulations. | The effective date for each amendment will be the date on which the SEC removes the related disclosure requirements from its regulations, with early adoption prohibited. | The adoption of this guidance is not likely to have a material impact. Regions will continue to evaluate through date of adoption. |
| ASU 2024-03, Income Statement Expense Disaggregation Disclosures (Subtopic 220-40) Disaggregation of Income Statement Expenses | This ASU will change the disclosures about a public business entity's expenses and address requests from investors for more detailed information about the types of expenses (for example, employee compensation, depreciation, and amortization) in expense captions. | January 1, 2027 | Regions will continue to evaluate through date of adoption. |
| ASU 2024-04 Debt with Conversion and Other Options (Subtopic 470-20) Induced Conversions of Convertible Debt Instruments | This ASU will standardize the application of induced conversion guidance in 470-20. This update focuses on how to determine whether a settlement of convertible debt at terms that differ from the original conversion terms should be accounted for under the induced conversion or extinguishment guidance. | January 1, 2026 | The adoption of this guidance is not likely to have a material impact. Regions will continue to evaluate through date of adoption. |
| ASU 2025-03 Business Combinations (Topic 805) and Consolidation (Topic 810): Determining the Accounting Acquirer in the Acquisition of a Variable Interest Entity | This ASU will require entities to consider the factors in Business Combinations (ASC 805) to identify the accounting acquirer when a VIE that is a business is legally acquired primarily through the exchange of equity interests.  | January 1, 2027 | Regions will continue to evaluate through date of adoption. |

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**Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations**

**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 Regions' Annual Report on Form 10-K for the year ended December 31, 2024, 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, 2025 compared to the three and six months ended June 30, 2024 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, 2025 compared to December 31, 2024.

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, 2025, Regions operated 1,250 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**

*<u>Economic Environment in Regions' Banking Markets</u>* 

Regions utilized its internal June baseline forecast to calculate the ACL as of June 30, 2025. Refer to the Baseline economic forecast discussion in the "Allowance" section for further detail.

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*<u>Second Quarter Results</u>*

Regions reported net income available to common shareholders of $534 million or $0.59 per diluted share in the second quarter of 2025 compared to net income available to common shareholders of $477 million or $0.52 per diluted share in the second quarter of 2024.

Net interest income (taxable-equivalent basis) totaled $1.3 billion in the second quarter of 2025, which increased $73 million compared to the second quarter of 2024. The net interest margin (taxable-equivalent basis) was 3.65 percent in the second quarter of 2025, reflecting a 14 basis point increase from the same period in 2024. The increase in net interest income and margin was driven by the replacement of fixed-rate loans and debt securities in a higher interest rate environment and lower funding costs as short-term interest rates declined. Refer to the related discussion below Table 16 "Consolidated Average Daily Balances and Yield/Rate Analysis" for further detail.

The provision for credit losses totaled $126 million in the second quarter of 2025 compared to $102 million in the second quarter of 2024. Net charge-offs totaled $113 million, or 0.47 percent of average loans, in the second quarter of 2025, compared to $101 million , or 0.42 percent in the second quarter of 2024. This slight increase reflected charge-offs in previously identified portfolios of interest. The allowance as a percent of total loans, net, increased slightly to 1.80 percent at June 30, 2025, compared to 1.79 percent at December 31, 2024. Refer to the "Allowance for Credit Losses" section for further detail.

Non-interest income was $646 million in the second quarter of 2025 compared to $545 million in the second quarter of 2024. Most categories of non-interest income increased, primarily driven by an increase in capital markets income, mortgage income, and favorable market valuation adjustments on employee benefit assets. Additionally, in the second quarter of 2024, the Company incurred securities losses due to a repositioning. See Table 21 "Non-Interest Income" for further details.

Non-interest expense was $1.1 billion in the second quarter of 2025 which increased $69 million compared to the second quarter of 2024. The increase was primarily driven by a increase in salaries and benefits and other miscellaneous expenses. See Table 22 "Non-Interest Expense" for further details.

Regions' effective tax rate was 20.3 percent in the second quarter of 2025 compared to 19.8 percent in the second quarter of 2024. See the "Income Taxes" section for further details.

*<u>Capital</u>*

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, 2025, Regions' CET1 ratio was estimated to be 10.8 percent. For additional information on Regions' regulatory capital requirements see the "Regulatory Requirements" section.

Regions participates in 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 $2.5 billion of the Company's common stock through the fourth quarter of 2025. See Note 6 "Shareholders' Equity and Accumulated Other Comprehensive Income (Loss)" for more information.

**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 increased approximately $463 million from year-end 2024 to June 30, 2025 primarily due to an increase in deposits, partially offset by securities purchases, a decline in borrowings and the redemption of Series D preferred stock. See the "Deposits", "Debt Securities", "Liquidity", and "Borrowings" sections for more information.

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**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** 

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| | | |
|:---|:---|:---|
| | **June 30, 2025** | **December 31, 2024** |
| | **(In millions)** | **(In millions)** |
| U.S. Treasury securities | $2105 | $2003 |
| Federal agency securities | 487 | 444 |
| Obligations of states and political subdivisions | 2 | 2 |
| Mortgage-backed securities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Residential agency | 24067 | 22865 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial agency | 4997 | 4597 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial non-agency | 83 | 82 |
| Corporate and other debt securities | 564 | 658 |
|  | $32305 | $30651 |

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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" section for more information on these arrangements. Also see the "Market Risk-Interest Rate Risk" section for more information. See also Note 3 "Debt Securities" for additional information.

Debt securities held to maturity constituted approximately 18 percent of the debt securities portfolio at June 30, 2025. The Company reclassified debt securities with an amortized cost, excluding items recognized in OCI, of $2.0 billion in the first half of 2025, from available for sale into held to maturity to reduce the volatility in AOCI in preparation for expected, upcoming changes to regulatory guidance as discussed in the "Regulatory Requirements" section.

Debt securities available for sale constituted approximately 82 percent of the debt securities portfolio at June 30, 2025. Regions maintains a highly-rated debt securities portfolio consisting primarily of agency MBS. Regions' investment policy emphasizes credit quality and liquidity.

Debt securities increased $1.7 billion from December 31, 2024 to June 30, 2025 due to the purchase of approximately $1.0 billion of residential agency MBS debt securities in the second quarter of 2025, lower market interest rates and tighter spreads resulting in lower unrealized holding losses, and AOCI amortization. Of note, the Company executed a debt securities repositioning in the first quarter of 2025 involving the sale of shorter-duration commercial and residential agency MBS and replacement with residential agency MBS with favorable prepayment profiles. The intent was to maintain the debt securities portfolio duration that would otherwise shorten naturally while efficiently deploying capital. Proceeds from the sales were reinvested at higher market yields. The Company sold approximately $478 million of debt securities available for sale and realized approximately $25 million in pre-tax losses.

The average life of the debt securities portfolio at June 30, 2025 was estimated to be 6.0 years, with a duration of approximately 4.1 years, inclusive of fair value hedges (see Table 18). These metrics compare with an estimated average life of 6.1 years and a duration of approximately 4.5 years for the portfolio at December 31, 2024.

**LOANS HELD FOR SALE**

The following table presents Regions' loans held for sale by type:

**Table 2—Loans Held for Sale** 

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| | | |
|:---|:---|:---|
| | **June 30, 2025** | **December 31, 2024** |
| | **(In millions)** | **(In millions)** |
| Commercial | $315 | $372 |
| Residential first mortgage | 261 | 222 |
| Consumer and other performing | 2 |  |
| Non-performing | 16 |  |
|  | $594 | $594 |

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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.

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**LOANS**

*GENERAL*

Loans, net of unearned income, represented 69 percent of interest-earning assets as of June 30, 2025. The following table presents the distribution of Regions' loan portfolio by segment and class, net of unearned income:

**Table 3—Loan Portfolio** 

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| | | |
|:---|:---|:---|
| | **June 30, 2025** | **December 31, 2024** |
| | **(In millions, net of unearned income)** | **(In millions, net of unearned income)** |
| Commercial and industrial | $49586 | $49671 |
| Commercial real estate mortgage—owner-occupied | 4890 | 4841 |
| Commercial real estate construction—owner-occupied | 275 | 333 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total commercial | 54751 | 54845 |
| Commercial investor real estate mortgage | 6949 | 6567 |
| Commercial investor real estate construction | 2149 | 2143 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total investor real estate | 9098 | 8710 |
| Residential first mortgage | 20020 | 20094 |
| Home equity lines | 3184 | 3150 |
| Home equity loans | 2352 | 2390 |
| Consumer credit card | 1415 | 1445 |
| Other consumer<sup>(1)</sup> | 5903 | 6093 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total consumer | 32874 | 33172 |
|  | $96723 | $96727 |

---

_____

(1) Starting in 2025, other consumer loans also includes exit portfolios, which were previously presented separately. The portfolio consists primarily of indirect auto loans, and presentation of prior periods has been conformed accordingly.

*PORTFOLIO CHARACTERISTICS*

Loans, net of unearned income, remained flat from year-end 2024 due to a decline in commercial loans as a result of low utilization rates and declines across most consumer loans, partially offset by an increase in investor real estate 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 2024 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. Regions' commercial and industrial loans generally mature within a five-year period with applicable amortization based on the underlying collateral or financing purpose. Typical loan structures consist of revolving and non-revolving lines of credit, amortizing term loans, guidance facilities, and single-pay loans, further tailored to meet the specific needs of the customer. These loans frequently have a covenant package combination inclusive of applicable debt service coverage, leverage, and liquidity measurements.

Underwriting of commercial and industrial loans includes the assessment of the financial performance and profile, management experience and capability, industry position and outlook, the applicability of the transactional structure, as well as the repayment enhancement provided by collateral, guarantees, and ownership or sponsorship. Any forward view of operating performance is tested against applicable stressors that may include revenue decline, margin compression, and interest rate hikes.

Commercial and industrial loans decreased $85 million since year-end 2024 due primarily to credit utilization rates remaining below historic levels. In the first six months of 2025, the decline 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

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<u>[**Table of Contents**](#i135e6d1bd40b43728f33de70f283fb9d_7)</u> 

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.

Underwriting for owner-occupied real estate and real estate construction loans is consistent with the underwriting of commercial loans, with particular attention to the enhancement provided by the underlying real estate collateral.

Real estate appraisals, for both commercial and IRE loans, are performed in accordance with regulatory guidelines. In some cases, reports from automated valuation services are used or internal evaluations are performed. An appraisal is ordered and reviewed prior to loan closing, and a new appraisal or evaluation is generally ordered when market conditions indicate a potential decline in the value of the collateral, or when the loan is either modified, renewed, or deteriorates to a certain level of credit weaknesses.

*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 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 $388 million in comparison to year-end 2024 balances due to increases in fundings to previously approved projects and new term loans for apartments and data centers.

IRE loans generally mature within a three-to-seven-year period and consist of full, partial, and non-recourse guarantee structures. Typical term loan structures include annually testing operating covenants that require loan rebalancing based on minimum debt service coverage, debt yield, and/or LTV tests. Construction and land development loans generally mature in 12 to 24 months for acquisition and development, to 42 to 60 months for construction and contain full or partial recourse guarantee structures with 12 to 24 month extension options or roll-to-permanent financing options that often result in term loans.

Underwriting on IRE properties is based on the economic viability of the project with significant consideration given to the creditworthiness and experience of the sponsor, who is responsible for managing the property. The Company generally requires that the owner, who provides the capital to purchase the property, infuse their equity prior to any advances. Re-margining requirements (e.g., required equity infusions upon a decline in value or cash flow of the collateral) are often included in the loan agreement along with required guarantees of the sponsor.

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<u>[**Table of Contents**](#i135e6d1bd40b43728f33de70f283fb9d_7)</u> 

The following tables provide detail of Regions' commercial and IRE lending balances in selected industries.

**Table 4—Commercial and Investor Real Estate Industry Exposure**

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| | | | | |
|:---|:---|:---|:---|:---|
| | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
| | **Loans** | **Unfunded Commitments** | **Total Exposure** | **Percent of Balance** |
| | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** |
| Commercial: |  |  |  |  |
| &nbsp;&nbsp;Administrative, support, waste and repair | $1111 | $837 | $1948 | 1.9% |
| &nbsp;&nbsp;Agriculture | 196 | 115 | 311 | 0.2% |
| &nbsp;&nbsp;Educational services | 3179 | 766 | 3945 | 3.8% |
| &nbsp;&nbsp;Energy | 1492 | 3708 | 5200 | 5.0% |
| &nbsp;&nbsp;Financial services | 8016 | 9209 | 17225 | 16.5% |
| &nbsp;&nbsp;Government and public sector | 3155 | 393 | 3548 | 3.4% |
| &nbsp;&nbsp;Healthcare | 3296 | 2494 | 5790 | 5.6% |
| &nbsp;&nbsp;Information | 2094 | 1107 | 3201 | 3.1% |
| &nbsp;&nbsp;Manufacturing | 5265 | 5016 | 10281 | 9.9% |
| &nbsp;&nbsp;Professional, scientific and technical services | 1872 | 1712 | 3584 | 3.4% |
| &nbsp;&nbsp;Real estate <sup>(1)</sup> | 9095 | 9350 | 18445 | 17.7% |
| &nbsp;&nbsp;Religious, leisure, personal and non-profit services | 1676 | 1052 | 2728 | 2.6% |
| &nbsp;&nbsp;Restaurant, accommodation and lodging | 1259 | 365 | 1624 | 1.6% |
| &nbsp;&nbsp;Retail trade | 2567 | 1914 | 4481 | 4.3% |
| &nbsp;&nbsp;Transportation and warehousing | 3685 | 1703 | 5388 | 5.2% |
| &nbsp;&nbsp;Utilities | 2065 | 3875 | 5940 | 5.7% |
| &nbsp;&nbsp;Wholesale goods | 4616 | 3478 | 8094 | 7.8% |
| &nbsp;&nbsp;Other <sup>(2)</sup> | 112 | 2441 | 2553 | 2.3% |
| Total commercial | $54751 | $49535 | $104286 | 100.0% |
| Investor real estate: |  |  |  |  |
| &nbsp;&nbsp;Hotel | $148 | $16 | $164 | 1.4% |
| &nbsp;&nbsp;Industrial | 943 | 190 | 1133 | 9.5% |
| &nbsp;&nbsp;Land | 114 | 11 | 125 | 1.0% |
| &nbsp;&nbsp;Multi-family | 4221 | 1309 | 5530 | 46.4% |
| &nbsp;&nbsp;Office | 1212 | 33 | 1245 | 10.4% |
| &nbsp;&nbsp;Retail | 264 | 38 | 302 | 2.5% |
| &nbsp;&nbsp;Single-family/condo | 698 | 483 | 1181 | 9.9% |
| &nbsp;&nbsp;Data center | 76 | 104 | 180 | 1.5% |
| &nbsp;&nbsp;Self storage | 35 | 9 | 44 | 0.4% |
| &nbsp;&nbsp;Other <sup>(2)</sup> | 1387 | 633 | 2020 | 17.0% |
| Total investor real estate | $9098 | $2826 | $11924 | 100.0% |

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| | | | | |
|:---|:---|:---|:---|:---|
| | **December 31, 2024** <sup>(3)</sup> | **December 31, 2024** <sup>(3)</sup> | **December 31, 2024** <sup>(3)</sup> | **December 31, 2024** <sup>(3)</sup> |
| | **Loans** | **Unfunded Commitments** | **Total Exposure** | **Percent of Balance** |
| | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** |
| Commercial: |  |  |  |  |
| &nbsp;&nbsp;Administrative, support, waste and repair | $1306 | $751 | $2057 | 2.0% |
| &nbsp;&nbsp;Agriculture | 211 | 142 | 353 | 0.3% |
| &nbsp;&nbsp;Educational services | 3229 | 875 | 4104 | 4.0% |
| &nbsp;&nbsp;Energy | 1322 | 3484 | 4806 | 4.7% |
| &nbsp;&nbsp;Financial services | 8463 | 9308 | 17771 | 17.4% |
| &nbsp;&nbsp;Government and public sector | 3121 | 437 | 3558 | 3.5% |
| &nbsp;&nbsp;Healthcare | 3338 | 2480 | 5818 | 5.7% |
| &nbsp;&nbsp;Information | 2186 | 1115 | 3301 | 3.2% |
| &nbsp;&nbsp;Manufacturing | 5037 | 5138 | 10175 | 9.9% |
| &nbsp;&nbsp;Professional, scientific and technical services  | 1970 | 1736 | 3706 | 3.6% |
| &nbsp;&nbsp;Real estate <sup>(1)</sup> | 8857 | 9110 | 17967 | 17.6% |
| &nbsp;&nbsp;Religious, leisure, personal and non-profit services | 1579 | 852 | 2431 | 2.4% |
| &nbsp;&nbsp;Restaurant, accommodation and lodging | 1285 | 216 | 1501 | 1.5% |
| &nbsp;&nbsp;Retail trade | 2604 | 1908 | 4512 | 4.4% |
| &nbsp;&nbsp;Transportation and warehousing  | 3655 | 1645 | 5300 | 5.2% |
| &nbsp;&nbsp;Utilities | 2329 | 3223 | 5552 | 5.4% |
| &nbsp;&nbsp;Wholesale goods | 4232 | 3371 | 7603 | 7.4% |
| &nbsp;&nbsp;Other <sup>(2)</sup> | 121 | 1677 | 1798 | 1.8% |
| Total commercial | $54845 | $47468 | $102313 | 100.0% |
| Investor real estate: |  |  |  |  |
| &nbsp;&nbsp;Hotel | $188 | $18 | $206 | 1.8% |
| &nbsp;&nbsp;Industrial | 808 | 160 | 968 | 8.5% |
| &nbsp;&nbsp;Land | 74 | 49 | 123 | 1.1% |
| &nbsp;&nbsp;Multi-family | 3834 | 1417 | 5251 | 46.2% |
| &nbsp;&nbsp;Office | 1325 | 34 | 1359 | 12.0% |
| &nbsp;&nbsp;Retail | 314 | 2 | 316 | 2.8% |
| &nbsp;&nbsp;Single-family/condo | 668 | 467 | 1135 | 10.0% |
| &nbsp;&nbsp;Data center | 215 | 32 | 247 | 2.2% |
| &nbsp;&nbsp;Self storage | 16 | 1 | 17 | 0.1% |
| &nbsp;&nbsp;Other <sup>(2)</sup> | 1268 | 482 | 1750 | 15.3% |
| Total investor real estate | $8710 | $2662 | $11372 | 100.0% |

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(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.

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<u>[**Table of Contents**](#i135e6d1bd40b43728f33de70f283fb9d_7)</u> 

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**

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| | | | | |
|:---|:---|:---|:---|:---|
| | **June 30, 2025** | **June 30, 2025** | **December 31, 2024** | **December 31, 2024** |
| | **Loan Balance** | **Percent of Total** <sup>(1)</sup> | **Loan Balance** | **Percent of Total** <sup>(1)</sup> |
| | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** |
| Residential homebuilders | $1314 | 8.2% | $1081 | 7.1% |
| Apartments | 4800 | 30.0% | 4371 | 28.6% |
| Industrial | 2283 | 14.3% | 2287 | 15.0% |
| Data center | 263 | 1.7% | 332 | 2.2% |
| Diversified | 1751 | 11.0% | 1740 | 11.4% |
| Business offices | 1320 | 8.3% | 1473 | 9.6% |
| Residential land | 68 | 0.4% | 55 | 0.4% |
| Retail | 1376 | 8.6% | 1458 | 9.5% |
| Healthcare | 1253 | 7.8% | 1129 | 7.4% |
| Hotel | 755 | 4.7% | 785 | 5.1% |
| Commercial land | 46 | 0.3% | 19 | 0.1% |
| Self Storage | 329 | 2.1% | 296 | 1.9% |
| Other | 422 | 2.6% | 260 | 1.7% |
| Total <sup>(2)</sup> | $15980 | 100.0% | $15286 | 100.0% |

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_______

(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, 2025 within Table 4 above. Recent and potential future interest rate cuts should ease pressure on borrowers across the entire loan portfolio.

The business offices portfolio remains a portfolio of interest due to rising vacancies and reductions in net effective rents. The office portfolio totaled $1.3 billion and represented 1.4 percent of total loans at June 30, 2025. The office portfolio included non-performing loans of $213 million and had associated charge-offs of $20 million in the six months ended June 30, 2025. Approximately 90 percent of the office portfolio was secured, with approximately 59 percent of secured balances located in the South region of the U.S, of which 86 percent were Class A properties. Over 50 percent of the office portfolio will mature in the next 12 months. Additionally, the IRE office portfolio had a weighted-average LTV of approximately 70 percent at June 30, 2025, based upon appraisal at origination or most recent received, and a stressed weighted-average LTV of approximately 86 percent as of July 7, 2025, based upon GreenStreet's Commercial Property Price Index. No new loan originations are being contemplated in this portfolio.

The trucking portfolio, included within transportation and warehousing, 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. The industry has experienced marginal improvement in 2025; however, recent tariff policies have lead to inconsistent volumes which combined with rising operating costs make profitability more challenging. The trucking portfolio totaled $1.4 billion and represented 1.5 percent of total loans at June 30, 2025. The trucking portfolio included non-performing loans of $114 million and had associated charge-offs of $42 million in the six months ended June 30, 2025.

*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 $74 million in comparison to year-end 2024 balances.

*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.

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Beginning in December 2016, new home equity lines of credit have a 10-year draw period and a 20-year repayment term. During the 10-year draw period customers do not have an interest-only payment option, except on a very limited basis. From May 2009 to December 2016, home equity lines of credit had a 10-year draw period and a 10-year repayment term. Prior to May 2009, the predominant structure was a 20-year draw period with a balloon payment upon maturity. The term "balloon payment" means there are no principal payments required until the balloon payment is due for interest-only lines of credit.

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, 2025. 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**

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **First Lien** | **% of Total** | **Second Lien** | **% of Total** | **Total** |
| | **(Dollars in millions)** | **(Dollars in millions)** | **(Dollars in millions)** | **(Dollars in millions)** | **(Dollars in millions)** |
| 2025 | $34 | 1.05% | $37 | 1.17% | $71 |
| 2026 | 93 | 2.93% | 98 | 3.06% | 191 |
| 2027 | 234 | 7.36% | 202 | 6.34% | 436 |
| 2028 | 231 | 7.26% | 150 | 4.72% | 381 |
| 2029 | 102 | 3.20% | 71 | 2.25% | 173 |
| 2030-2034 | 578 | 18.15% | 1014 | 31.85% | 1592 |
| 2035-2039 | 87 | 2.72% | 146 | 4.59% | 233 |
| Thereafter | 9 | 0.29% | 7 | 0.21% | 16 |
| Revolving Loans Converted to Amortizing | 54 | 1.70% | 37 | 1.15% | 91 |
| Total | $1422 | 44.66% | $1762 | 55.34% | $3184 |

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*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**

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
| | **Residential<br>First Mortgage** | **Home Equity Lines of Credit** | **Home Equity Lines of Credit** | **Home Equity Loans** | **Home Equity Loans** |
| | **Residential<br>First Mortgage** | **1st Lien** | **2nd Lien** | **1st Lien** | **2nd Lien** |
| | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** |
| Estimated current LTV: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Above 100% | $67 | $— | $— | $1 | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Above 80% - 100% | 1868 | 2 | 6 | 8 | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;80% and below | 17767 | 1408 | 1745 | 1808 | 522 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Data not available | 318 | 12 | 11 | 2 |  |
|  | $20020 | $1422 | $1762 | $1819 | $533 |

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| | **Residential<br>First Mortgage** | **Home Equity Lines of Credit** | **Home Equity Lines of Credit** | **Home Equity Loans** | **Home Equity Loans** |
| | **Residential<br>First Mortgage** | **1st Lien** | **2nd Lien** | **1st Lien** | **2nd Lien** |
| | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** |
| Estimated current LTV: |  |  |  |  | ` |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Above 100% | $63 | $2 | $— | $1 | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Above 80% - 100% | 1799 | 2 | 3 | 9 | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;80% and below | 17898 | 1430 | 1687 | 1883 | 484 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Data not available | 334 | 14 | 12 | 2 |  |
|  | $20094 | $1448 | $1702 | $1895 | $495 |

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*Consumer Credit Card*

Consumer credit card lending represents primarily open-ended variable interest rate consumer credit card loans.

*Other Consumer*

Other consumer loans primarily include indirect and direct consumer loans, overdrafts and other revolving loans. Other consumer loans decreased $190 million from year-end 2024 driven by a decline in consumer home improvement lending production.

Regions considers factors such as periodic updates of FICO scores, accrual status, days past due 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 $1.7 billion at both June 30, 2025 and December 31, 2024.

Regions' quarterly 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. 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, 2024 for more information.

*<u>Baseline economic forecast</u>*

In deriving any forecast, Regions benchmarks its internal forecast with external forecasts and external data available. Regions' June 2025 baseline forecast reflected deterioration across most key variables as compared to the March baseline forecast, which resulted in an increase in the allowance. Management noted that there is still uncertainty around the scope and timing of changes to trade policy and the effects of immigration policy to the labor market may pose some downside risks to growth. However, recently enacted fiscal policy changes are expected to be supportive of business investment spending, and an anticipated more favorable regulatory climate should also be supportive of growth.

The June 2025 baseline forecast anticipates real GDP growth of 1.5 percent in 2025 and 2026. While the quarterly growth profile is expected to remain somewhat uneven over the next few quarters, it is anticipated that the economy will be back at its longer-term trend growth rate by year-end 2026.

As job and wage growth are slowing, spending growth is becoming realigned with income growth. In the early months of 2025, businesses and households reacted strongly to anticipated increases in tariffs, which sets up payback over the coming months and quarters. The baseline forecast anticipates the unemployment rate averaging 4.3 percent for 2025 and 2026, and reflects further deceleration in the trend of job rate growth due to a falling rate of hiring as opposed to a rising rate of layoffs.

Through the first half of the year there has been mixed evidence of tariff pass-throughs on goods prices. While it is anticipated that pass-through effects will become more impactful and more broadly based over coming months, it is also anticipated that moderating services price inflation will act as a counter. This would limit the net effects on overall inflation.

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While the FOMC is taking a cautious approach and is still more focused on the upside risks to inflation, we cannot rule out a resumption of Federal Funds rate hikes by year-end 2025.

The risks to the baseline forecast are considered to be weighted to the downside. Current economic uncertainty, including the impact of developments on trade policy, likely will influence future levels of the allowance.

Table 8 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, 2025. The unemployment rate is the most significant macroeconomic factor among the allowance models and as of the June 2025 baseline forecast was expected to remain relatively consistent over the forecast period.

**Table 8—Macroeconomic Factors in the Forecast** 

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| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Pre-R&S Period** | **Baseline R&S Forecast** | **Baseline R&S Forecast** | **Baseline R&S Forecast** | **Baseline R&S Forecast** | **Baseline R&S Forecast** | **Baseline R&S Forecast** | **Baseline R&S Forecast** | **Baseline R&S Forecast** |
| | **Pre-R&S Period** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
| | **2Q2025** | **3Q2025** | **4Q2025** | **1Q2026** | **2Q2026** | **3Q2026** | **4Q2026** | **1Q2027** | **2Q2027** |
| Unemployment rate | 4.2% | 4.4% | 4.5% | 4.5% | 4.4% | 4.3% | 4.2% | 4.1% | 4.0% |
| Real GDP, annualized % change | 2.4% | 0.1% | 1.2% | 1.4% | 2.3% | 1.8% | 2.2% | 2.2% | 2.0% |
| HPI, year-over-year % change | 1.4% | (0.2)% | (1.9)% | (2.8)% | (2.7)% | (1.5)% | 0.2% | 2.1% | 3.5% |
| CPI, year-over-year % change | 2.6% | 3.5% | 3.9% | 3.8% | 4.1% | 3.6% | 3.1% | 2.8% | 2.6% |

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*<u>Portfolio, credit metrics, and specific reserves</u>*

The loan portfolio composition is evaluated each quarter and changes to the composition can influence modeled allowance results.

Credit metrics are monitored throughout each quarter and are a key consideration in the allowance process. In the second quarter of 2025, overall asset quality improved. Commercial and investor real estate criticized balances decreased approximately $310 million compared to the first quarter of 2025. Non-performing loans, excluding held for sale, decreased approximately $67 million compared to the first quarter of 2025. The decrease in non-performing loans was primarily due to charge-offs and payoffs in previously identified portfolios of interest which led to a decline in specific reserves. See Table 11 for more details regarding non-performing assets. While overall credit quality improved in the quarter, the portfolio experienced some risk rating migration, mostly within pass ratings. These increases were offset by other portfolio changes.

In the second quarter of 2025, the loan portfolio balance grew, which, combined with the results from credit/specific reserve changes and other portfolio changes, resulted in a net increase to the allowance.

*<u>Qualitative adjustments</u>*

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. In the second quarter of 2025, the general imprecision component decreased due to less downside risk to the economic forecast.

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. Qualitative adjustments for the second quarter of 2025 were reduced from the first quarter of 2025 levels due to reduced risk in certain portfolios of interest and more of the remaining risk being captured in the loss forecasting models and specific reserve estimates, as well as additional portfolio stability.

The combined results from general imprecision and specific qualitative adjustments was a net decrease to the allowance.

*<u>Overall allowance</u>*

Based upon the factors discussed above, the June 30, 2025 allowance remained stable compared to the first quarter of 2025 due to portfolio changes and slight deterioration in the economic forecast, offset by declines in qualitative adjustments.

Details regarding the allowance and net charge-offs, including an analysis of activity from previous year's totals, are included below:

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<u>[**Table of Contents**](#i135e6d1bd40b43728f33de70f283fb9d_7)</u> 

**Table 9—Allowance for Credit Losses**

---

| | | |
|:---|:---|:---|
| | **Six Months Ended June 30** | **Six Months Ended June 30** |
| | **2025** | **2024** |
| | **(Dollars in millions)** | **(Dollars in millions)** |
| Allowance for loan losses at January 1 | $1613 | $1576 |
| Loans charged-off: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial and industrial | 127 | 122 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial real estate mortgage—owner-occupied | 2 | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial investor real estate mortgage | 24 | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Residential first mortgage | 1 | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Home equity lines | 1 | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consumer credit card | 34 | 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other consumer | 89 | 102 |
|  | 278 | 264 |
| Recoveries of loans previously charged-off: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial and industrial | 21 | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial real estate mortgage—owner-occupied |  | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial real estate construction—owner-occupied | 1 | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial investor real estate mortgage |  | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Residential first mortgage | 1 | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Home equity lines | 2 | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consumer credit card | 5 | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other consumer | 12 | 13 |
|  | 42 | 42 |
| Net charge-offs (recoveries): |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial and industrial | 106 | 106 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial real estate mortgage—owner-occupied | 2 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial real estate construction—owner-occupied | (1) | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial investor real estate mortgage | 24 | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Residential first mortgage |  | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Home equity lines | (1) | (2) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consumer credit card | 29 | 28 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other consumer | 77 | 89 |
|  | 236 | 222 |
| Provision for loan losses | 235 | 267 |
| Allowance for loan losses at June 30 | 1612 | 1621 |
| Reserve for unfunded credit commitments at January 1 | 116 | 124 |
| Provision for (benefit from) unfunded credit losses | 15 | (13) |
| Reserve for unfunded credit commitments at June 30 | 131 | 111 |
| Allowance for credit losses at June 30 | $1743 | $1732 |
| Loans, net of unearned income, outstanding at end of period | $96723 | $97508 |
| Average loans, net of unearned income, outstanding for the period | $96099 | $97351 |
| Net loan charge-offs (recoveries) as a % of average loans, annualized <sup>(1)</sup>: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial and industrial | 0.44% | 0.43% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial real estate mortgage—owner-occupied | 0.07% | —% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial real estate construction—owner-occupied | (0.46)% | (0.36)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total commercial | 0.40% | 0.38% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial investor real estate mortgage | 0.72% | 0.10% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total investor real estate | 0.54% | 0.07% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Residential first mortgage | —% | (0.01)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Home equity lines | (0.05)% | (0.11)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Home equity loans | (0.01)% | (0.02)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consumer credit card | 4.21% | 4.19% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other consumer | 2.59% | 2.87% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total consumer | 0.65% | 0.69% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | 0.50% | 0.46% |
| Ratios <sup>(1)</sup>: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Allowance for credit losses at end of period to loans, net of unearned income | 1.80% | 1.78% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Allowance for credit losses at end of period to non-performing loans, excluding loans held for sale | 225% | 204% |

---

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(1)Amounts have been calculated using whole dollar values.

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<u>[**Table of Contents**](#i135e6d1bd40b43728f33de70f283fb9d_7)</u> 

Net charge-offs increased $14 million year-over-year. As noted, economic 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 in 2025 and beyond.

Allocation of the allowance by portfolio segment and class is summarized as follows:

**Table 10—Allowance Allocation** 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| | **Loan Balance** | **Allowance Allocation** | **Allowance to Loans %**<sup>(1)</sup> | **Loan Balance** | **Allowance Allocation** | **Allowance to Loans %**<sup>(1)</sup> |
| | **(Dollars in millions)** | **(Dollars in millions)** | **(Dollars in millions)** | **(Dollars in millions)** | **(Dollars in millions)** | **(Dollars in millions)** |
| Commercial and industrial | $49586 | $732 | 1.48% | $49671 | $717 | 1.44% |
| Commercial real estate mortgage—owner-occupied | 4890 | 107 | 2.19% | 4841 | 108 | 2.22% |
| Commercial real estate construction—owner-occupied | 275 | 7 | 2.61% | 333 | 9 | 2.75% |
| Total commercial | 54751 | 846 | 1.54% | 54845 | 834 | 1.52% |
| Commercial investor real estate mortgage | 6949 | 212 | 3.05% | 6567 | 216 | 3.29% |
| Commercial investor real estate construction | 2149 | 35 | 1.62% | 2143 | 31 | 1.47% |
| Total investor real estate | 9098 | 247 | 2.71% | 8710 | 247 | 2.84% |
| Residential first mortgage | 20020 | 114 | 0.57% | 20094 | 106 | 0.53% |
| Home equity lines | 3184 | 93 | 2.91% | 3150 | 86 | 2.73% |
| Home equity loans | 2352 | 29 | 1.22% | 2390 | 27 | 1.12% |
| Consumer credit card | 1415 | 116 | 8.22% | 1445 | 122 | 8.44% |
| Other consumer | 5903 | 298 | 5.06% | 6093 | 307 | 5.05% |
| Total consumer | 32874 | 650 | 1.98% | 33172 | 648 | 1.95% |
| Total | $96723 | $1743 | 1.80% | $96727 | $1729 | 1.79% |

---

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(1)Amounts have been calculated using whole dollar values.

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<u>[**Table of Contents**](#i135e6d1bd40b43728f33de70f283fb9d_7)</u> 

**NON-PERFORMING ASSETS**

The following table presents non-performing assets as of June 30, 2025 and December 31, 2024:

**Table 11—Non-Performing Assets**

---

| | | |
|:---|:---|:---|
| | **June 30, 2025** | **December 31, 2024** |
| | **(Dollars in millions)** | **(Dollars in millions)** |
| Non-performing loans: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial and industrial | $391 | $408 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial real estate mortgage—owner-occupied | 45 | 37 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial real estate construction—owner-occupied | 1 | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total commercial | 437 | 450 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial investor real estate mortgage | 283 | 423 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total investor real estate | 283 | 423 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Residential first mortgage | 24 | 23 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Home equity lines | 26 | 26 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Home equity loans | 6 | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total consumer | 56 | 55 |
| Total non-performing loans, excluding loans held for sale | 776 | 928 |
| Non-performing loans held for sale | 16 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total non-performing loans<sup>(1)</sup> | 792 | 928 |
| Foreclosed properties | 16 | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total non-performing assets<sup>(1)</sup> | $808 | $942 |
| Accruing loans 90+ days past due: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial and industrial | $19 | $7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial real estate mortgage—owner-occupied | 1 | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total commercial | 20 | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Residential first mortgage<sup>(2)</sup> | 89 | 88 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Home equity lines | 12 | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Home equity loans | 7 | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consumer credit card | 20 | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other consumer | 23 | 27 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total consumer | 151 | 158 |
| Total accruing loans 90+ days past due | $171 | $166 |
| Non-performing loans<sup>(1)</sup> to loans and non-performing loans held for sale | 0.82% | 0.96% |
| Non-performing loans, excluding loans held for sale<sup>(1)</sup> to loans | 0.80% | 0.96% |
| Non-performing assets<sup>(1)</sup> to loans, foreclosed properties and non-performing loans held for sale | 0.84% | 0.97% |

---

_________

(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. Total 90+ days or more past due guaranteed loans excluded were $44 million at June 30, 2025 and $55 million at December 31, 2024.

Non-performing loans at June 30, 2025 decreased $136 million as compared to year-end 2024 levels primarily due to reductions in the industries or property types of information, healthcare, apartments and office, partially offset by an increase in energy. 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.

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<u>[**Table of Contents**](#i135e6d1bd40b43728f33de70f283fb9d_7)</u> 

The following tables provide an analysis of non-accrual loans (excluding loans held for sale) by portfolio segment:

**Table 12— Analysis of Non-Accrual Loans**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Non-Accrual Loans, Excluding Loans Held for Sale for the Six Months Ended June 30, 2025** | **Non-Accrual Loans, Excluding Loans Held for Sale for the Six Months Ended June 30, 2025** | **Non-Accrual Loans, Excluding Loans Held for Sale for the Six Months Ended June 30, 2025** | **Non-Accrual Loans, Excluding Loans Held for Sale for the Six Months Ended June 30, 2025** |
| | **Commercial** | **Investor<br>Real Estate** | **Consumer**<sup>(1)</sup> | **Total** |
| | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** |
| Balance at beginning of period | $450 | $423 | $55 | $928 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additions | 211 | 47 | 1 | 259 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net payments/other activity | (80) | (126) |  | (206) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Return to accrual | (9) |  |  | (9) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Charge-offs on non-accrual loans<sup>(2)</sup> | (123) | (24) |  | (147) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Transfers to held for sale<sup>(3)</sup> | (10) | (17) |  | (27) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net loan sales | (2) | (20) |  | (22) |
| Balance at end of period | $437 | $283 | $56 | $776 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Non-Accrual Loans, Excluding Loans Held for Sale for the Six Months Ended June 30, 2024** | **Non-Accrual Loans, Excluding Loans Held for Sale for the Six Months Ended June 30, 2024** | **Non-Accrual Loans, Excluding Loans Held for Sale for the Six Months Ended June 30, 2024** | **Non-Accrual Loans, Excluding Loans Held for Sale for the Six Months Ended June 30, 2024** |
| | **Commercial** | **Investor<br>Real Estate** | **Consumer**<sup>(1)</sup> | **Total** |
| | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** |
| Balance at beginning of period | $515 | $233 | $57 | $805 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additions | 311 | 164 |  | 475 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net payments/other activity | (192) | (76) | (2) | (270) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Return to accrual | (15) |  |  | (15) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Charge-offs on non-accrual loans<sup>(2)</sup> | (118) | (4) |  | (122) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Transfers to held for sale<sup>(3)</sup> | (2) |  |  | (2) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net loan sales | (24) |  |  | (24) |
| Balance at end of period | $475 | $317 | $55 | $847 |

---

________

(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, 2025 and December 31, 2024. Refer to Note 1 "Summary of Significant Accounting Policies" and Note 9 "Intangible Assets" to the consolidated financial statements included in the Annual Report on Form 10-K for the year ended December 31, 2024 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.

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<u>[**Table of Contents**](#i135e6d1bd40b43728f33de70f283fb9d_7)</u> 

Deposits are Regions' primary source of funds, providing funding for over 90 percent of average earning assets at both June 30, 2025 and December 31, 2024. The following table summarizes deposits by category and by segment:

**Table 13—Deposits by Category and by Segment**

---

| | | |
|:---|:---|:---|
| | **June 30, 2025** | **December 31, 2024** |
| | **(In millions)** | **(In millions)** |
| Non-interest-bearing deposits | $40209 | $39138 |
| Interest-bearing checking | 24704 | 25079 |
| Savings | 12187 | 12022 |
| Money market—domestic | 38525 | 35644 |
| Time deposits | 15294 | 15720 |
|  | $130919 | $127603 |
| Consumer Bank segment | $79953 | $78637 |
| Corporate Bank segment | 40101 | 38361 |
| Wealth Management segment | 7352 | 7736 |
| Other<sup>(1)</sup> | 3513 | 2869 |
|  | $130919 | $127603 |

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____

(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 $2.8 billion at June 30, 2025 and $2.2 at December 31, 2024.

Total deposits at June 30, 2025 increased approximately $3.3 billion across most segments and categories compared to year-end 2024 levels. The increase in deposits reflects customer growth and preference for liquidity as there remains some uncertainty in the economic environment. The mix of non-interest-bearing deposits remained stable at approximately 31 percent of total deposits at both June 30, 2025 and December 31, 2024. Regions' deposits are granular and diversified including insured and collateralized deposits, with consumer deposits making up more than 60 percent of the total deposit base at both June 30, 2025 and December 31, 2024.

See the "Liquidity" and "Market Risk-Interest Rate Risk" sections for further discussion on liquidity and interest rates.

**BORROWED FUNDS**

**Short-Term Borrowings**

Short-term borrowings, which primarily consist of FHLB advances, were zero at June 30, 2025 and $500 million at December 31, 2024. The levels of these borrowings can fluctuate depending on the Company's funding needs and the sources utilized.

Short-term secured borrowings, such as securities sold under agreements to repurchase and FHLB advances, are a portion of Regions' funding strategy. See the "Liquidity" section for further detail of Regions' borrowing capacity with the FHLB.

**Table 14—Long-Term Borrowings**

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| | | |
|:---|:---|:---|
| | **June 30, 2025** | **December 31, 2024** |
| | **(In millions)** | **(In millions)** |
| **Regions Financial Corporation (Parent):** | | |
| 2.25% senior notes due May 2025 | $— | $749 |
| 1.80% senior notes due August 2028 | 648 | 647 |
| 5.722% senior notes due June 2030<sup>(1)</sup> | 747 | 746 |
| 5.502% senior notes due September 2035<sup>(2)</sup> | 994 | 994 |
| 6.75% subordinated debentures due November 2025 | 151 | 151 |
| 7.375% subordinated notes due December 2037 | 298 | 299 |
| Valuation adjustments on hedged long-term debt | (57) | (91) |
|  | 2781 | 3495 |
| **Regions Bank:** |  |  |
| FHLB advances | 2000 | 2000 |
| 6.45% subordinated notes due June 2037 | 497 | 496 |
| Other long-term debt | 1 | 2 |
|  | 2498 | 2498 |
| Total consolidated | $5279 | $5993 |

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____

(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%.

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<u>[**Table of Contents**](#i135e6d1bd40b43728f33de70f283fb9d_7)</u> 

Long-term borrowings decreased by approximately $714 million from year-end 2024 primarily due to the maturity of the Company's 2.25% senior notes in the second quarter of 2025.

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, 2025, Regions' blanket lien arrangements with these entities covered a total loan balance of approximately $93.8 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** 

*CAPITAL RULES*

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.

Federal banking agencies allowed a phase-in of the impact of CECL on regulatory capital. At December 31, 2021, the add-back to regulatory capital was calculated as the impact of initial adoption, adjusted for 25 percent of subsequent changes in the allowance. The amount was phased-in over a three-year period beginning in 2022 and concluded in the first quarter of 2025. At December 31, 2024, the net impact of the add-back on CET1 was approximately $102 million or approximately 8 basis points.

Regions participates in 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" to the consolidated financial statements for further details regarding CCAR results.

The following table summarizes the applicable holding company and bank regulatory requirements:

**Table 15—Regulatory Capital Requirements**

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **June 30, 2025 Ratio**<sup>(1)</sup> | **December 31, 2024 Ratio** | **Minimum Requirement** | **Minimum Requirement plus SCB** <sup>(2)</sup> | **To Be Well<br>Capitalized** |
| | **June 30, 2025 Ratio**<sup>(1)</sup> | **December 31, 2024 Ratio** | **Minimum Requirement** | **Minimum Requirement plus SCB** <sup>(2)</sup> | **To Be Well<br>Capitalized** |
| Common equity Tier 1 capital: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Regions Financial Corporation | 10.76% | 10.80% | 4.50% | 7.00% | N/A |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Regions Bank | 11.47 | 11.32 | 4.50 | 7.00 | 6.50% |
| Tier 1 capital: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Regions Financial Corporation | 11.85% | 12.17% | 6.00% | 8.50% | 6.00% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Regions Bank | 11.47 | 11.32 | 6.00 | 8.50 | 8.00 |
| Total capital: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Regions Financial Corporation | 13.73% | 14.06% | 8.00% | 10.50% | 10.00% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Regions Bank | 13.12 | 12.97 | 8.00 | 10.50 | 10.00 |
| Leverage capital: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Regions Financial Corporation | 9.67% | 9.88% | 4.00% | 4.00% | N/A |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Regions Bank | 9.38 | 9.21 | 4.00 | 4.00 | 5.00 |

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___

(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". The Company is studying the proposals and evaluating their impacts. 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, 2024.

*LIQUIDITY*

Regions maintains a robust liquidity management framework designed to effectively manage liquidity risk in accordance with sound risk management principals and regulatory expectations. The framework 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

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<u>[**Table of Contents**](#i135e6d1bd40b43728f33de70f283fb9d_7)</u> 

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.

See the "Liquidity" section for more information. Also, see the "Supervision and Regulation—Liquidity Requirements" subsection of the "Business" section and the "Risk Factors" section in the 2024 Annual Report on Form 10-K for additional information.

**SHAREHOLDERS' AND TOTAL EQUITY**

Shareholders' equity was $18.7 billion at June 30, 2025 as compared to $17.9 billion at December 31, 2024. During the first six months of 2025, net income increased shareholders' equity by $1.1 billion, cash dividends on common stock reduced shareholders' equity by $450 million, and cash dividends on preferred stock reduced shareholders' equity by $50 million. Changes in OCI increased shareholders' equity by $952 million, primarily due to available for sale securities and derivative instruments as a result of changes in market interest rates during the six months ended June 30, 2025. During the second quarter of 2025, the Company redeemed all of the outstanding shares of its Series D preferred stock, which decreased shareholders' equity by $350 million. Common stock repurchased during the first six months of 2025 decreased shareholders' equity by $386 million. These shares were immediately retired upon repurchase and therefore were not included in treasury stock.

Total equity included noncontrolling interest of $40 million and $31 million at June 30, 2025 and December 31, 2024, respectively. The noncontrolling interest represents the unowned portion of a low income housing tax credit fund syndication, of which Regions held the majority interest at June 30, 2025 and December 31, 2024.

Subsequent to June 30, 2025, the Company purchased 1.4 million shares for approximately $37 million through August 4, 2025. 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.

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<u>[**Table of Contents**](#i135e6d1bd40b43728f33de70f283fb9d_7)</u> 

Table 16 "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 16—Consolidated Average Daily Balances and Yield/Rate Analysis**

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30** | **Three Months Ended June 30** | **Three Months Ended June 30** | **Three Months Ended June 30** | **Three Months Ended June 30** | **Three Months Ended June 30** |
| | **2025** | **2025** | **2025** | **2024** | **2024** | **2024** |
| | **Average<br>Balance** | **Income/<br>Expense** | **Yield/**<br>**Rate** <sup>(1)</sup> | **Average<br>Balance** | **Income/<br>Expense** | **Yield/**<br>**Rate** <sup>(1)</sup> |
| | **(Dollars in millions; yields on taxable-equivalent basis)** | **(Dollars in millions; yields on taxable-equivalent basis)** | **(Dollars in millions; yields on taxable-equivalent basis)** | **(Dollars in millions; yields on taxable-equivalent basis)** | **(Dollars in millions; yields on taxable-equivalent basis)** | **(Dollars in millions; yields on taxable-equivalent basis)** |
| **Assets** |  |  |  |  |  |  |
| Earning assets: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Federal funds sold and securities purchased under agreements to resell | $1 | $— | 4.44% | $1 | $— | 5.44% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Debt securities <sup>(2)(3)</sup> | 32882 | 286 | 3.48 | 31649 | 219 | 2.77 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loans held for sale | 500 | 9 | 7.14 | 531 | 9 | 6.85 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loans, net of unearned income <sup>(4)(5)</sup> | 96077 | 1389 | 5.75 | 97281 | 1444 | 5.93 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest-bearing deposits in other banks | 8737 | 97 | 4.49 | 6158 | 86 | 5.65 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other earning assets | 1466 | 15 | 3.96 | 1447 | 16 | 4.43 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total earning assets | 139663 | 1796 | 5.12 | 137067 | 1774 | 5.17 |
| Unrealized gains/(losses) on securities available for sale, net <sup>(2)</sup> | (1348) |  |  | (3267) |  |  |
| Allowance for loan losses | (1643) |  |  | (1619) |  |  |
| Cash and due from banks | 2893 |  |  | 2678 |  |  |
| Other non-earning assets | 18409 |  |  | 18008 |  |  |
|  | $157974 |  |  | $152867 |  |  |
| **Liabilities and Shareholders' Equity** |  |  |  |  |  |  |
| Interest-bearing liabilities: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Savings | $12300 | 4 | 0.13 | $12536 | 4 | 0.13 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest-bearing checking | 24865 | 88 | 1.41 | 24026 | 99 | 1.68 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Money market | 37389 | 220 | 2.37 | 34368 | 239 | 2.79 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Time deposits | 15334 | 135 | 3.52 | 15455 | 160 | 4.16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest-bearing deposits <sup>(6)</sup> | 89888 | 447 | 1.99 | 86385 | 502 | 2.34 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Federal funds purchased and securities sold under agreements to repurchase | 80 | 1 | 4.40 | 8 |  | 5.45 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other short-term borrowings |  |  |  | 962 | 13 | 5.49 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Long-term borrowings | 5660 | 77 | 5.36 | 3595 | 61 | 6.73 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest-bearing liabilities | 95628 | 525 | 2.20 | 90950 | 576 | 2.55 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-interest-bearing deposits <sup>(6)</sup> | 39556 |  |  | 40516 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total funding sources | 135184 | 525 | 1.55 | 131466 | 576 | 1.76 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net interest spread <sup>(2)</sup> |  |  | 2.92 |  |  | 2.62 |
| Other liabilities | 4403 |  |  | 4655 |  |  |
| Shareholders' equity | 18350 |  |  | 16713 |  |  |
| Noncontrolling interest | 37 |  |  | 33 |  |  |
|  | $157974 |  |  | $152867 |  |  |
| Net interest income /margin on a taxable-equivalent basis <sup>(7)</sup> |  | $1271 | 3.65% |  | $1198 | 3.51% |

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_______

(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 $6 million and $2 million for the three months ended June 30, 2025 and 2024, 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 $60 million and $116 million for the three months ended June 30, 2025 and 2024, respectively. Interest income on loans, net of unearned income, also includes net loan fees of $32 million and $34 million for the three months ended June 30, 2025 and 2024 , 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. The rates for total deposit costs equaled 1.39% and 1.59% for the three months ended June 30, 2025 and 2024, 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.

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<u>[**Table of Contents**](#i135e6d1bd40b43728f33de70f283fb9d_7)</u> 

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Six Months Ended June 30** | **Six Months Ended June 30** | **Six Months Ended June 30** | **Six Months Ended June 30** | **Six Months Ended June 30** | **Six Months Ended June 30** |
|  | **2025** | **2025** | **2025** | **2024** | **2024** | **2024** |
|  | **Average<br>Balance** | **Income/<br>Expense** | **Yield/**<br>**Rate**<sup>(1)</sup> | **Average<br>Balance** | **Income/<br>Expense** | **Yield/**<br>**Rate**<sup>(1)</sup> |
|  | **(Dollars in millions; yields on taxable-equivalent basis)** | **(Dollars in millions; yields on taxable-equivalent basis)** | **(Dollars in millions; yields on taxable-equivalent basis)** | **(Dollars in millions; yields on taxable-equivalent basis)** | **(Dollars in millions; yields on taxable-equivalent basis)** | **(Dollars in millions; yields on taxable-equivalent basis)** |
| **Assets** |  |  |  |  |  |  |
| Earning assets: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Federal funds sold and securities purchased under agreements to resell | $1 | $— | 4.44% | $1 | $— | 5.44% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Debt securities <sup>(2)(3)</sup> | 32583 | 552 | 3.39 | 31571 | 428 | 2.71 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loans held for sale | 471 | 17 | 7.20 | 515 | 17 | 6.63 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loans, net of unearned income <sup>(4)(5)</sup> | 96099 | 2743 | 5.69 | 97351 | 2878 | 5.90 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest-bearing deposits in other banks | 8637 | 191 | 4.47 | 5456 | 154 | 5.67 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other earning assets | 1475 | 30 | 4.07 | 1393 | 34 | 4.94 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total earning assets | 139266 | 3533 | 5.07 | 136287 | 3511 | 5.15 |
| Unrealized gains/(losses) on securities available for sale, net <sup>(2)</sup> | (1531) |  |  | (3154) |  |  |
| Allowance for loan losses | (1634) |  |  | (1607) |  |  |
| Cash and due from banks | 2925 |  |  | 2629 |  |  |
| Other non-earning assets | 18402 |  |  | 18000 |  |  |
|  | $157428 |  |  | $152155 |  |  |
| **Liabilities and Shareholders' Equity** |  |  |  |  |  |  |
| Interest-bearing liabilities: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Savings | $12239 | 8 | 0.13 | $12565 | 8 | 0.13 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest-bearing checking | 24949 | 177 | 1.43 | 24354 | 205 | 1.70 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Money market | 36512 | 424 | 2.35 | 34008 | 466 | 2.76 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Time deposits | 15565 | 280 | 3.63 | 15366 | 318 | 4.16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest-bearing deposits <sup>(6)</sup> | 89265 | 889 | 2.01 | 86293 | 997 | 2.32 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Federal funds purchased and securities sold under agreements to repurchase | 60 | 1 | 4.40 | 7 |  | 5.43 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other short-term borrowings | 168 | 4 | 4.59 | 520 | 14 | 5.49 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Long-term borrowings | 5830 | 162 | 5.51 | 3000 | 105 | 6.94 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest-bearing liabilities | 95323 | 1056 | 2.23 | 89820 | 1116 | 2.50 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-interest-bearing deposits<sup>(6)</sup> | 39305 |  |  | 40721 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total funding sources | 134628 | 1056 | 1.58 | 130541 | 1116 | 1.72 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net interest spread <sup>(2)</sup> |  |  | 2.83 |  |  | 2.65 |
| Other liabilities | 4526 |  |  | 4659 |  |  |
| Shareholders' equity | 18240 |  |  | 16916 |  |  |
| Noncontrolling interest | 34 |  |  | 39 |  |  |
|  | $157428 |  |  | $152155 |  |  |
| Net interest income/margin on a taxable-equivalent basis <sup>(7)</sup> |  | $2477 | 3.59% |  | $2395 | 3.53% |

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_______

(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 $8 million and $4 million for the six months ended June 30, 2025 and 2024, 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 $127 million and $233 million for the six months ended June 30, 2025 and 2024, respectively. Interest income on loans, net of unearned income, also includes net loan fees of $61 million and $69 million for the six months ended June 30, 2025 and 2024 , 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. The rates for total deposit costs equaled 1.39% and 1.58% for the six months ended June 30, 2025 and 2024, 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 the both the second quarter and first six months of 2025 compared to the same periods in 2024 due primarily to the replacement of fixed-rate loans and debt securities in a high interest rate environment and managing deposit and funding costs lower while growing deposit balances. Net interest income and margin also benefited from securities repositioning activities in late 2024 and first quarter 2025. Net interest margin continued to be negatively impacted by a higher cash balance at the Federal Reserve (see the "Cash and Cash Equivalents" section for related discussion).

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<u>[**Table of Contents**](#i135e6d1bd40b43728f33de70f283fb9d_7)</u> 

**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 derivative hedges is critical in mitigating the Bank's naturally asset sensitive position.

As of June 30, 2025, Regions evidenced a mostly balanced, or "neutral" asset/liability position, with asset duration of approximately 2.5 years and liability duration of approximately 2.6 years, using historically-informed approximations. While the derivative hedging portfolio and debt securities portfolio have been recorded on the balance sheet at an unrealized loss, deposit value increases more than offset this loss during a rising rate cycle. The additional value of deposits in a higher rate environment is realized in the form of lower-cost funding when compared with wholesale sources. While a 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.

Recently, 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 4.1 years, the available for sale securities portfolio duration is 3.7 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, 2025, 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 2026. The estimated exposure associated with the rising and falling rate scenarios in Table 17 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 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.

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<u>[**Table of Contents**](#i135e6d1bd40b43728f33de70f283fb9d_7)</u> 

Net interest income remains exposed to intermediate and long-term yield curve tenors. In the current higher interest rate environment, the exposure to 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 17 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. Deposit balances are projected to be up modestly in 2025. A reduction in deposit balances of $1 billion when compared to the base case estimate would reduce net interest income by $19 million over 12 months in the parallel, instantaneous +100 basis point scenario in Table 17. Conversely, if an additional $1 billion are added, a positive benefit of $19 million would be expected over 12 months in the parallel, instantaneous +100 basis point scenario in Table 17.

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 shift 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 17. Furthermore, over the 12 month horizon, an increase of $1 billion in deposit remixing would decrease net interest income by approximately $22 million, and a decrease of $1 billion in deposit remixing would increase net interest income by $22 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 17 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 $45 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 18 and its accompanying description.

**Table 17—Interest Rate Sensitivity** 

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| | |
|:---|:---|
| | **Estimated Annual Change**<br>**in Net Interest Income**<br>**June 30, 2025**<sup>(1)(2)</sup> |
| | **(In millions)** |
| <u>Gradual Change in Interest Rates</u> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;+ 200 basis points | $97 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;+ 100 basis points | 49 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - 100 basis points | (56) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - 200 basis points | (99) |
| <u>Instantaneous Change in Interest Rates</u> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;+ 200 basis points | $72 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;+ 100 basis points | 46 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- 100 basis points | (61) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - 200 basis points | (102) |

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(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.

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<u>[**Table of Contents**](#i135e6d1bd40b43728f33de70f283fb9d_7)</u> 

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. 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.

The following table presents additional information about hedging interest rate derivatives used by Regions to manage interest rate risk:

**Table 18—Hedging Derivatives by Interest Rate Risk Management Strategy**

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| | | | | |
|:---|:---|:---|:---|:---|
| | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
| | **Notional<br>Amount** | **Weighted-Average** | **Weighted-Average** | **Weighted-Average** |
| | **Notional<br>Amount** | **Maturity (Years)** | **Receive Rate** | **Pay Rate** |
| | **(Dollars in millions)** | **(Dollars in millions)** | **(Dollars in millions)** | **(Dollars in millions)** |
| **Derivatives in fair value hedging relationships:** | | | | |
| &nbsp;&nbsp;Receive variable/pay fixed swaps - debt securities available for sale<sup>(1)(2)(3)</sup> | $3937 | 6.3 | 4.3% | 3.7% |
| &nbsp;&nbsp;Receive fixed/pay variable swaps - borrowings and time deposits<sup>(3)</sup> | 2400 | 5.9 | 2.9% | 3.8% |
| **Derivatives in cash flow hedging relationships:** |  |  |  |  |
| &nbsp;&nbsp;Receive fixed/pay variable swaps - floating-rate loans<sup>(1)(2)(3)</sup> | $35198 | 3.2 | 3.2% | 4.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate options<sup>(4)</sup> | 2000 | 3.0 |  |  |
| **Total derivatives designated as hedging instruments** | $43535 |  |  |  |

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_________

(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 19.

(3)All floating rates are SOFR based and may include SOFR conversion spread.

(4)Interest rate options have an average cap strike of 6.22% and a floor of 1.86%.

In the second quarter of 2025, the Company added $748 million in spot-starting pay-fixed swaps, with a pay rate of 3.6 percent and an average maturity in 2032, to reduce AOCI volatility in the available for sale securities portfolio. As a partial offset to the interest rate risk associated with these pay-fixed fair value hedges, the Company added $500 million in receive-fixed interest rate swaps (floating rate loan hedges) with a receive rate of 3.4 percent, which will become active in January 2026 and mature in May 2032. The Company also added $261 million in primarily forward-starting pay-fixed interest rate swaps with an average pay rate of 4.0 percent, which have an average start date in 2029 and an average maturity in 2033, to reduce AOCI volatility associated with securities reinvestment.

Subsequent to June 30, 2025, $2.0 billion in forward-starting receive-fixed interest rate swaps (floating rate loan hedges) beginning in January 2028 and maturing in January 2033 were added at an average receive rate of 3.7 percent.

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The following table presents the average asset hedge notional amounts that are active during each of the remaining quarterly and annual periods.

**Table 19—Schedule of Notional for Asset Hedging Derivatives**

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| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Average Active Notional Amount** <sup>(1)</sup> | **Average Active Notional Amount** <sup>(1)</sup> | **Average Active Notional Amount** <sup>(1)</sup> | **Average Active Notional Amount** <sup>(1)</sup> | **Average Active Notional Amount** <sup>(1)</sup> | **Average Active Notional Amount** <sup>(1)</sup> | **Average Active Notional Amount** <sup>(1)</sup> | **Average Active Notional Amount** <sup>(1)</sup> | **Average Active Notional Amount** <sup>(1)</sup> | **Average Active Notional Amount** <sup>(1)</sup> | **Average Active Notional Amount** <sup>(1)</sup> | **Average Active Notional Amount** <sup>(1)</sup> |
| | **Quarters Ended** | **Quarters Ended** | **Quarters Ended** | **Years Ended** | **Years Ended** | **Years Ended** | **Years Ended** | **Years Ended** | **Years Ended** | **Years Ended** | **Years Ended** | **Years Ended** |
| | **6/30/2025** | **9/30/2025** | **12/31/2025** | **2026** | **2027** | **2028** | **2029** | **2030** | **2031** | **2032** | **2033** | **2034** |
| | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** |
| **Asset Hedging Relationships:** | **Asset Hedging Relationships:** | **Asset Hedging Relationships:** | **Asset Hedging Relationships:** | **Asset Hedging Relationships:** | **Asset Hedging Relationships:** | **Asset Hedging Relationships:** | **Asset Hedging Relationships:** | **Asset Hedging Relationships:** | **Asset Hedging Relationships:** | **Asset Hedging Relationships:** | **Asset Hedging Relationships:** | **Asset Hedging Relationships:** |
| Receive fixed/pay variable swaps | $20907 | $21598 | $21498 | $21457 | $20245 | $15715 | $10789 | $10103 | $5137 | $959 | $350 | $217 |
| Receive variable/pay fixed swaps | 3474 | 3696 | 3696 | 3696 | 3696 | 3337 | 3001 | 3046 | 2954 | 1347 | 526 | 251 |
| Net receive fixed/pay variable swaps | $17433 | $17902 | $17802 | $17761 | $16549 | $12378 | $7788 | $7057 | $2183 | $(388) | $(176) | $(34) |
| Interest rate options | $2000 | $2000 | $2000 | $2000 | $2000 | $999 | $1 | $— | $— | $— | $— | $— |

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_________

(1)Active hedges, including forward-starting hedges, are included in the sensitivity levels disclosed in Table 17 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 benefit from the risk mitigation controls in place at the respective clearinghouse. See the "Credit Risk" section in the 2024 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** 

Liquidity is an important factor in the financial condition of Regions and affects Regions' ability to meet the needs of the Company and its customers. 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. Accordingly, Regions maintains a variety of liquidity sources to fund its obligations, as further described below. See also Note 12 "Commitments, Contingencies and Guarantees" to the consolidated financial statements for additional discussion of the Company's funding requirements. Furthermore, Regions performs specific procedures, including scenario analyses and stress testing to evaluate and maintain appropriate levels of available liquidity in alignment with liquidity risk.

Regions' operation of its business provides a generally balanced liquidity base which is comprised of customer assets, consisting principally of loans, and funding provided by customer deposits and borrowed funds. Maturities in the loan portfolio provide a steady flow of funds, and are supplemented by Regions' deposit base.

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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. As part of its normal management practice, Regions maintains collateral and operational readiness to utilize secured funding sources such as the FHLB and the Federal Reserve Bank on a same-day basis (subject to any practical constraints affecting these market participants). While the securities portfolio is a primary source of liquidity, the secured borrowing capabilities, in addition to cash reserves on hand, assist in alleviating the Company's need to sell securities for funding purposes. Liquidity needs can also be met by borrowing funds in national money markets, though Regions does maintain limits on short-term unsecured funding due to the volatility that can affect such markets.

The following table summarizes the Company's available sources of liquidity as of June 30, 2025:

**Table 20—Liquidity Sources**

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| | |
|:---|:---|
| | **Availability as of June 30, 2025** |
| | **(In billions)** |
| Cash at the Federal Reserve Bank<sup>(1)</sup> | $7.9 |
| Unencumbered investment securities<sup>(2)</sup> | 25.3 |
| FHLB borrowing availability | 11.0 |
| Federal Reserve Bank borrowing availability through the discount window | 20.6 |
| Total liquidity sources | $64.8 |

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____

(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, 2025, Regions had approximately $7.9 billion in cash on deposit with the Federal Reserve Bank and other depository institutions, a slight increase from approximately $7.8 billion at December 31, 2024.

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, 2025, Regions had $2.0 billion in long-term FHLB borrowings and had borrowing capacity as shown in Table 20. FHLB borrowing capacity was determined based on eligible securities and loan amounts, as of June 30, 2025, that were pledged as collateral for future borrowing capacity. 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 20. 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" to the consolidated financial statements in the 2024 Annual Report on Form 10-K 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' 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 $969 million at June 30, 2025. 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.

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**INFORMATION SECURITY RISK**

Refer to Part 1 Item1C. *Cybersecurity* in the Annual Report on Form 10-K for the year ended December 31, 2024 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 second quarter of 2025, the provision exceeded net charge-offs by $13 million compared to $1 million in the second quarter of 2024. In the first six months of 2025, the provision exceeded net charge-offs by $14 million compared to $32 million in the first six months of 2024. Refer to the "Allowance" section for further detail.

**NON-INTEREST INCOME**

**Table 21—Non-Interest Income** 

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30** | **Three Months Ended June 30** | **Quarter-to-Date Change 6/30/2025 vs. 6/30/2024** | **Quarter-to-Date Change 6/30/2025 vs. 6/30/2024** |
| | **2025** | **2024** | **Amount** | **Percent** |
| | **(Dollars in millions)** | **(Dollars in millions)** | **(Dollars in millions)** | **(Dollars in millions)** |
| Service charges on deposit accounts | $151 | $151 | $— | —% |
| Card and ATM fees | 125 | 120 | 5 | 4.2% |
| Investment management and trust fee income | 90 | 83 | 7 | 8.4% |
| Capital markets income | 83 | 68 | 15 | 22.1% |
| Mortgage income | 48 | 34 | 14 | 41.2% |
| Investment services fee income | 43 | 39 | 4 | 10.3% |
| Commercial credit fee income | 29 | 28 | 1 | 3.6% |
| Bank-owned life insurance | 24 | 30 | (6) | (20.0)% |
| Market value adjustments on employee benefit assets | 16 | 2 | 14 | NM |
| Securities gains (losses), net | (1) | (50) | 49 | 98.0% |
| Other miscellaneous income | 38 | 40 | (2) | (5.0)% |
|  | $646 | $545 | $101 | 18.5% |

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Six Months Ended June 30** | **Six Months Ended June 30** | **Year-to-Date Change 6/30/2025 vs. 6/30/2024** | **Year-to-Date Change 6/30/2025 vs. 6/30/2024** |
| | **2025** | **2024** | **Amount** | **Percent** |
| | **(Dollars in millions)** | **(Dollars in millions)** | **(Dollars in millions)** | **(Dollars in millions)** |
| Service charges on deposit accounts | $312 | $299 | $13 | 4.3% |
| Card and ATM fees | 242 | 236 | 6 | 2.5% |
| Investment management and trust fee income | 176 | 164 | 12 | 7.3% |
| Capital markets income | 163 | 159 | 4 | 2.5% |
| Mortgage income | 88 | 75 | 13 | 17.3% |
| Investment services fee income | 86 | 77 | 9 | 11.7% |
| Commercial credit fee income | 56 | 55 | 1 | 1.8% |
| Bank-owned life insurance | 47 | 53 | (6) | (11.3)% |
| Market valuation adjustments on employee benefit assets | 13 | 17 | (4) | (23.5)% |
| Securities gains (losses), net | (26) | (100) | 74 | 74.0% |
| Other miscellaneous income | 79 | 73 | 6 | 8.2% |
|  | $1236 | $1108 | $128 | 11.6% |

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_________

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 increased in the six months ended June 30, 2025 compared to the same period in 2024, driven by an increase in fees from treasury management services and, to a lesser degree, overdraft fees.

On October 25, 2023, the Federal Reserve issued a proposal for public comment that, if finalized, would lower the maximum interchange fee that a large debit card issuer can receive for a debit card transaction. Under the proposed rule the

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maximum interchange fee would be subject to adjustments every other year based upon issuer cost data. The Company is studying the proposal and evaluating its impact.

On December 12, 2024, the CFPB adopted a final rule that caps overdraft fees in line with a benchmark fee of $5 or an amount that covers an institution's costs and losses using a standard set forth in the rules. Alternatively, an institution can charge higher overdraft fees by complying with the standard regulatory requirements governing other loans, including credit cards. The final rule is currently scheduled to take effect on October 1, 2025. However, under the presidential memorandum entitled "Regulatory Freeze Pending Review," rules with future effective dates may be re-evaluated. Therefore, though the Company will continue to monitor and evaluate potential impact, the nature and timing of future developments that may potentially impact this or other CFPB rules and proposals cannot be predicted.

**Capital Markets Income**

Capital markets income primarily relates to capital raising activities that include real estate placement, securities underwriting and placement, loan syndication, as well as foreign exchange, derivatives, merger and acquisition and other advisory services. Capital markets income increased in the second quarter and six months ended June 30, 2025 compared to the same periods in 2024 driven by higher loan syndication revenue, commercial swap income and, to a lesser degree, securities and underwriting placement fees. The second quarter of 2025 benefited from higher merger and acquisition fees whereas these fees declined for the six months ended June 30, 2025, compared to the same periods in 2024, due to economic uncertainty in the first quarter of 2025 impacting the timing of transactions. The overall increases in both periods were partially offset by declines in real estate transactions.

**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 increase in mortgage income in the second quarter and six months ended June 30, 2025 compared to the same periods in 2024 was due primarily to favorable mortgage servicing rights valuation adjustments. The increase in mortgage income in the six months ended June 30, 2025 was partially offset by negative pipeline valuation adjustments.

**Investment Services Fee Income**

Investment services fee income represents income earned from investment advisory services. Investment services fee income increased in the second quarter and six months ended June 30, 2025 compared to the same periods in 2024 due to strong advisor production.

**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 2025 and 2024, the Company sold debt securities and reinvested the proceeds at higher current market yields. See Table 1 "Debt Securities" for more information.

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**NON-INTEREST EXPENSE**

**Table 22—Non-Interest Expense** 

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30** | **Three Months Ended June 30** | **Quarter-to-Date Change 6/30/2025 vs. 6/30/2024** | **Quarter-to-Date Change 6/30/2025 vs. 6/30/2024** |
| | **2025** | **2024** | **Amount** | **Percent** |
| | **(Dollars in millions)** | **(Dollars in millions)** | **(Dollars in millions)** | **(Dollars in millions)** |
| Salaries and employee benefits | $658 | $609 | $49 | 8.0% |
| Equipment and software expense | 104 | 100 | 4 | 4.0% |
| Net occupancy expense | 72 | 68 | 4 | 5.9% |
| Outside services | 39 | 40 | (1) | (2.5)% |
| Marketing | 26 | 27 | (1) | (3.7)% |
| Professional, legal and regulatory expenses | 28 | 25 | 3 | 12.0% |
| Credit/checkcard expenses | 16 | 15 | 1 | 6.7% |
| FDIC insurance assessments | 20 | 29 | (9) | (31.0)% |
| Visa class B shares expense | 4 | 5 | (1) | (20.0)% |
| Operational losses | 13 | 18 | (5) | (27.8)% |
| Branch consolidation, property and equipment charges |  | 1 | (1) | (100.0)% |
| Other miscellaneous expenses | 93 | 67 | 26 | 38.8% |
|  | $1073 | $1004 | $69 | 6.9% |

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Six Months Ended June 30** | **Six Months Ended June 30** | **Year-to-Date Change 6/30/2025 vs. 6/30/2024** | **Year-to-Date Change 6/30/2025 vs. 6/30/2024** |
| | **2025** | **2024** | **Amount** | **Percent** |
| | **(Dollars in millions)** | **(Dollars in millions)** | **(Dollars in millions)** | **(Dollars in millions)** |
| Salaries and employee benefits | $1283 | $1267 | $16 | 1.3% |
| Equipment and software expense | 203 | 201 | 2 | 1.0% |
| Net occupancy expense | 142 | 142 |  | —% |
| Outside services | 79 | 79 |  | —% |
| Marketing | 56 | 54 | 2 | 3.7% |
| Professional, legal and regulatory expenses | 51 | 53 | (2) | (3.8)% |
| Credit/checkcard expenses | 31 | 29 | 2 | 6.9% |
| FDIC insurance assessments | 40 | 72 | (32) | (44.4)% |
| Visa class B shares expense | 11 | 9 | 2 | 22.2% |
| Operational losses | 26 | 60 | (34) | (56.7)% |
| Branch consolidation, property and equipment charges |  | 2 | (2) | (100.0)% |
| Other miscellaneous expenses | 190 | 167 | 23 | 13.8% |
|  | $2112 | $2135 | $(23) | (1.1)% |

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**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 second quarter and six months ended June 30, 2025 compared to the same periods in 2024 primarily due to higher base salaries from annual merit increases, higher production-based incentives, and increases in other benefits expense which was driven by higher medical expenses due to inflation. Also included in salaries and employee benefits expense are market valuations on employee benefits liabilities (mostly offset in non-interest revenue as shown in Table 21) which contributed to the increase in the three months ended June 30, 2025, but served as a partial offset in the six months ended June 30, 2025 compared to the same periods in 2024. Lastly, in the second quarter and first six months of 2024, salaries and employee benefits expense included severance expense of $4 million and $17 million, respectively. Full-time equivalent headcount increased to 19,642 at June 30, 2025 from 19,595 at June 30, 2024.

**FDIC Insurance Assessments**

FDIC insurance assessments decreased in the second quarter and six months ended June 30, 2025 compared to the same periods in 2024 primarily resulting from updates to the special assessment which was initially recorded in 2023 due to bank failures. In the second quarter and first six months of 2024, the Company increased the special assessment accrual by $4 million and $22 million, respectively, based upon revised loss estimates related to the failures. Contributing to the overall decreases were reductions of the base assessment primarily due to higher unsecured debt and lower concentration risk.

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**Operational Losses**

Operational losses include losses related to fraud, execution, delivery and process management, and damage to physical assets. Operational losses decreased in the second quarter and six months ended June 30, 2025 compared to the same periods in 2024 primarily due to improvements in check fraud during the first six months of 2025 as a result of effective countermeasures.

**Other Miscellaneous Expenses**

Other miscellaneous expenses include expenses related to communications, postage, supplies, certain credit-related costs, foreclosed property expenses, mortgage repurchase costs, and other costs (benefits) related to employee benefit plans. Other miscellaneous expenses increased the second quarter and six months ended June 30, 2025 compared to the same periods in 2024 primarily due to a contingent reserve release in the second quarter of 2024 related to a prior acquisition that did not repeat.

**INCOME TAXES**

The Company's income tax expense for the three months ended June 30, 2025 was $143 million compared to $124 million for the three months ended June 30, 2024, resulting in effective tax rates of 20.3% and 19.8%, respectively. The Company's income tax expense for the six months ended June 30, 2025 was $274 million compared to $220 million for the six months ended June 30, 2024, resulting in effective tax rates of 20.7% and 20.2%, 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, 2025, the Company reported a net deferred tax asset of $445 million compared to $775 million at December 31, 2024. The change in the net deferred tax position was due primarily to the deferred tax impact of decreases in unrealized losses on securities available for sale and derivative instruments arising during the six months ended June 30, 2025.

On July 4, 2025, the One Big Beautiful Bill Act passed into law. The Company is still evaluating the impacts of the statute to the consolidated financial statements and expects that such impacts will be immaterial.

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**Item 3. Quantitative and Qualitative Disclosures about Market Risk**

The information presented in the "Market Risk" section of Part 1, Item 2 is incorporated herein by reference.

**Item 4. Controls and Procedures**

**Disclosure Controls and Procedures**

Regions maintains disclosure controls and procedures (as that term is defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act) designed to ensure that information required to be disclosed in the reports that Regions files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC. An evaluation was carried out under the supervision and with the participation of the Company's management, including the Chief Executive Officer and Chief Financial Officer, of the effectiveness of the Company's disclosure controls and procedures as of the end of the period covered by this report. Based on this evaluation of the disclosure controls and procedures, the Chief Executive Officer and Chief Financial Officer have concluded that Regions' disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934) are effective as of the end of the period covered by this report.

**Changes in Internal Control Over Financial Reporting**

During the quarter ended June 30, 2025, there were no changes in Regions' internal control over financial reporting that materially affected, or are reasonably likely to materially affect, Regions' internal control over financial reporting.

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**PART II. OTHER INFORMATION**

**Item 1. Legal Proceedings**

The information presented in the Legal Contingencies section of Note 12 "Commitments, Contingencies and Guarantees" in the Notes to the Consolidated Financial Statements (Unaudited) in Part I. Item 1. of this Quarterly Report on Form 10-Q is incorporated by reference.

**Item 1A. Risk Factors**

There are no material changes to the risk factors set forth in Regions' Annual Report on Form 10-K for the year ended December 31, 2024.

**Item 2. Unregistered Sales of Equity Securities and Use of Proceeds** 

The following table presents information regarding issuer purchases of equity securities during the second quarter of 2025. All of these shares were immediately retired upon repurchase and therefore were not included in treasury stock.

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| | | | | |
|:---|:---|:---|:---|:---|
| **Period** | **Total Number of Shares Purchased** | **Average Price Paid**<br> **per Share**<sup>(1)</sup> | **Total Number of Shares <br>Purchased as Part of<br>Publicly Announced<br>Plans or Programs** | **Maximum Approximate Dollar Value of**<br>**Shares that May**<br>**Yet Be Purchased Under Publicly Announced Plans or Programs**<sup>(2)</sup> |
| April 1-30, 2025 | 966180 | $20.18 | 966180 | $1630636970 |
| May 1-31, 2025 | 3034367 | $21.59 | 3034367 | $1565091677 |
| June 1-30, 2025 | 2688543 | $21.64 | 2688543 | $1506619649 |
| Total Second Quarter | 6689090 | $21.44 | 6689090 | $1506619649 |

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_____

(1) Average price paid does not reflect the one percent excise tax charged on public company share repurchases.

(2) On April 20, 2022, the Board authorized the repurchase of up to $2.5 billion of the Company's common stock, permitting purchases from the second quarter of 2022 through the fourth quarter of 2024. On December 10, 2024, the Board authorized an extension of the common stock repurchase program through the fourth quarter of 2025.

**Item 5. Other Information**

**Securities Trading Plans of Section 16 Officers and Directors**

During the three months ended June 30, 2025, none of our officers or directors adopted or terminated a contract, instruction or written plan for the sale or purchase of our securities that was intended to satisfy the affirmative defense conditions of Rule 10b5-1 or that constituted a "non-Rule 10b5-1 trading arrangement" (as defined in Item 408 of Regulation S-K).

**Approval of Regions Financial Corporation 2025 Long Term Incentive Plan**

As previously disclosed, at the Annual Meeting of Shareholders held by the Company on April 16, 2025, Regions' shareholders approved the Regions Financial Corporation 2025 Long Term Incentive Plan (the "2025 LTIP"). A summary of the 2025 LTIP is included in the Company's Proxy Statement for the 2025 Annual Meeting of Shareholders (in the section entitled "Proposal Four – Regions Financial Corporation 2025 Long Term Incentive Plan"), filed with the Securities and Exchange Commission on March 3, 2025, which summary is incorporated herein by reference and is qualified in its entirety by reference to the text of the plan document, which was attached as Appendix A to the Proxy Statement and is also filed as Exhibit 10.1 to this Quarterly Report on Form 10-Q and which is also incorporated herein by reference.

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<u>[**Table of Contents**](#i135e6d1bd40b43728f33de70f283fb9d_7)</u>

**Item 6. Exhibits**

The following is a list of exhibits including items incorporated by reference

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| | |
|:---|:---|
| 3.1 | <u>[Amended and Restated Certificate of Incorporation, incorporated by reference to Exhibit 3.1 to the Form 10-Q filed by registrant on August 6, 2012.](https://www.sec.gov/Archives/edgar/data/1281761/000119312512336748/d361719dex31.htm)</u> |
| 3.2 | <u>[Certificate of Designations](https://www.sec.gov/Archives/edgar/data/1281761/000119312519124304/d739526dex34.htm)[relat](https://www.sec.gov/Archives/edgar/data/1281761/000119312519124304/d739526dex34.htm)[ing to Series C Preferred St](https://www.sec.gov/Archives/edgar/data/1281761/000119312519124304/d739526dex34.htm)[ock](https://www.sec.gov/Archives/edgar/data/1281761/000119312519124304/d739526dex34.htm)[, incorporated by reference to Exhibit 3.4 to the Form 8-A filed by registrant on April 29, 2019.](https://www.sec.gov/Archives/edgar/data/1281761/000119312519124304/d739526dex34.htm)</u> |
| 3.3 | <u>[Certificate of Designations](https://www.sec.gov/Archives/edgar/data/0001281761/000119312521147588/d188159dex36.htm)[relating to Series E Preferred Stock](https://www.sec.gov/Archives/edgar/data/0001281761/000119312521147588/d188159dex36.htm)[, incorporated by reference to Exhibit 3.6 to the Form 8-A filed by registrant on May 3, 2021.](https://www.sec.gov/Archives/edgar/data/0001281761/000119312521147588/d188159dex36.htm)</u> |
| 3.4 | <u>[Certificate of Designations](https://www.sec.gov/Archives/edgar/data/1281761/000128176124000053/exhibit36-8xa.htm)[relating to Series F Preferred Stock](https://www.sec.gov/Archives/edgar/data/1281761/000128176124000053/exhibit36-8xa.htm)[, incorporated by reference to Exhibit 3.6 on the Form 8-A filed by registrant on July 26, 2024.](https://www.sec.gov/Archives/edgar/data/1281761/000128176124000053/exhibit36-8xa.htm)</u> |
| 3.5 | <u>[Certificate of Elimination relating to Series D Preferred Stock, incorporated by reference to Exhibit 3.1 to the Form 8-K filed by registrant on June 17, 2025.](https://www.sec.gov/Archives/edgar/data/1281761/000128176125000053/rf_seriesdcertificateofe.htm)</u> |
| 3.6 | <u>[By-Laws as amended and restated, incorporated by reference to Exhibit 3.2 to the Form 8-K filed by registrant on October 18, 2023.](https://www.sec.gov/Archives/edgar/data/1281761/000119312523258601/d550552dex32.htm)</u> |
| 10.1 | <u>[Regions Financial Corporation 2025 Long Term Incentive Plan.](rf-2025630xex101.htm)</u> |
| 10.2 | <u>[F](https://www.sec.gov/Archives/edgar/data/1281761/000128176125000045/rf-2025331xex102.htm)[orm of Director Restricted Stock Unit Notice and Award Agreement under the Regions Financial Corporation 2025 Long Term Incentive Plan, effective April 21, 2025, incorporated by reference to Exhibit 10.2 to the Form 10-Q filed by registrant on May 6,](https://www.sec.gov/Archives/edgar/data/1281761/000128176125000045/rf-2025331xex102.htm)[2025.](https://www.sec.gov/Archives/edgar/data/1281761/000128176125000045/rf-2025331xex102.htm)</u> |
| 31.1 | <u>[Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.](rf-2025630xex311.htm)</u> |
| 31.2 | <u>[Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.](rf-2025630xex312.htm)</u> |
| 32 | <u>[Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.](rf-2025630xex32.htm)</u> |
| 101 | The following materials are formatted in Inline XBRL: (i) the Consolidated Balance Sheets; (ii) the Consolidated Statements of Income; (iii) the Consolidated Statements of Comprehensive Income; (iv) the Consolidated Statements of Changes in Shareholders' Equity; (v) the Consolidated Statements of Cash Flows; and (vi) the Notes to the Consolidated Financial Statements.  |
| 104 | Cover Page Interactive Data File, formatted in Inline XBRL (included within the Exhibit 101 attachments). |

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<u>[**Table of Contents**](#i135e6d1bd40b43728f33de70f283fb9d_7)</u>

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;DATE: August 5, 2025 | **Regions Financial Corporation** |
| | /S/&nbsp;&nbsp;&nbsp;&nbsp;Karin K. Allen&nbsp;&nbsp;&nbsp;&nbsp;  |
| | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Karin K. Allen**<br>**Executive Vice President and Assistant Controller**<br>**(Chief Accounting Officer and Authorized Officer)** |

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## Exhibit 10.1

**Exhibit 10.1**

![image_0.jpg](image_0.jpg)

*Regions Financial Corporation 2025 Long Term Incentive Plan*

**1. GENERAL PURPOSE**

The purpose of the Regions Financial Corporation 2025 Long Term Incentive Plan (the "Plan") is to promote the success, and enhance the value, of Regions Financial Corporation and its Subsidiaries, by linking the personal interests of their employees, officers and directors to those of Company stockholders and by providing such persons with an incentive for outstanding performance. The Plan is further intended to provide flexibility to the Company by increasing its ability to motivate, attract, and retain the services of employees, officers, directors, and consultants upon whose judgment, interest, and special effort the successful conduct of the Company's operation is largely dependent. Accordingly, the Plan permits the grant of incentive awards from time to time to selected employees, officers and directors. If approved by stockholders of Regions Financial Corporation, the Plan will replace the Regions Financial Corporation 2015 Long Term Incentive Plan ("2015 Plan") for Awards granted after the Effective Date. Beginning on the Effective Date, no further awards will be made under the 2015 Plan, but this Plan will not affect the terms or conditions of any awards made under the 2015 Plan before the Effective Date.

**2. DEFINITIONS & INTERPRETATION**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)For purposes of the Plan, the following terms have the meanings assigned below:

"*Acquisition Awards*" has the meaning assigned in Section 4(c).

"*Affiliate*" means any entity that, directly or indirectly through one or more intermediaries, controls, is controlled by or is under common control with, the Company.

"*Award*" means an award of Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units, Performance Awards, Cash Awards, or Other Awards under the Plan, which Awards may be issued in consideration of service rendered to the Company, its Subsidiaries and or its Affiliates.

"*Award Agreement*" means any written or electronic agreement, contract or other instrument or document evidencing any Award, and which may, but need not be (as determined by the Committee) executed or acknowledged by a Grantee as a condition to receiving an Award or the benefits under an Award, and which sets forth the terms and provisions applicable to Awards granted under the Plan to such Grantee.

"*Beneficial Owner*" (and all variations thereof) will have the meaning set forth in Rule 13d-3 under the Exchange Act.

"*Board*" means the Board of Directors of the Company.

"*Cash Award*" means an award denominated in cash that is granted pursuant to Section 12.

"*Cause*" means termination of the Grantee's employment by the Company or a Subsidiary or Affiliate due to (i) a material violation of (A) the Company's Code of Business Conduct and Ethics, (B) the Grantee's fiduciary duties to the Company, or (C) any law, provided such violation has materially harmed the Company, (ii) the willful and continued failure of the Grantee to perform substantially the Grantee's duties with the Company or a Subsidiary (other than any such failure resulting from the Grantee's incapacity due to physical or mental illness), or (iii) the occurrence of any event constituting "cause" within the meaning of a Grantee's then-applicable employment agreement with the Company or one of its Subsidiaries or Affiliates.

"*Change in Control*" with respect to any Award has the meaning assigned to the term in the change in control agreement, if any, between the Grantee and the Company, provided, however that if there is no such change in control agreement, it shall mean any of the following events:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)the acquisition by any "Person" (as the term "person" is used for the purposes of Section 13(d) or 14(d) of the Exchange Act) of direct or indirect beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of fifty percent (50%) of the combined voting power of the then-outstanding securities of the Company entitled to vote in the election of directors (the "Voting Securities"); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)individuals who, as of the date hereof, constitute the Board (the "Incumbent Directors") cease for any reason to constitute at least a majority of the Board; provided, however, that any individual becoming a director subsequent to the date hereof whose election, or nomination for election, was approved by a vote of at least a majority of the Incumbent Directors then on the Board, or the Nominating and Corporate Governance Committee of the Board, shall be an Incumbent Director, unless such individual is initially elected or nominated as a director of the Company as a result of an actual or threatened election contest with respect to the election or removal of directors ("Election Contest") or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board ("Proxy Contest"), including by reason of any agreement intended to avoid or settle any Election Contest or Proxy Contest; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)the consummation of a merger, amalgamation, consolidation, reorganization, statutory share exchange, or similar form of corporate transaction involving the Company, the sale or other disposition of all or substantially all of the Company's assets, or the acquisition of assets or stock of another entity by the Company (each a "Business Combination"), unless such Business Combination is a "Non-Control Transaction." A "Non-Control Transaction" is a Business Combination immediately following which the following conditions are met:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)the stockholders of the Company immediately before such Business Combination own, directly or indirectly, more than fifty percent (50%) of the combined voting power of the then-outstanding voting securities entitled to vote in the election of directors of the corporation resulting from such Business Combination (including, without limitation, a corporation that as a result of such Business Combination owns the Company or substantially all of the Company's assets or stock either directly or through one or more subsidiaries) (the "Surviving Corporation") in substantially the same proportion as their ownership of the Company Voting Securities immediately before such Business Combination;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)at least a majority of the members of the board of directors of the Surviving Corporation were Incumbent Directors at the time of the Board's approval of the execution of the initial Business Combination agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C)no person other than (1) the Company or any of its Subsidiaries, (2) the Surviving Corporation or its ultimate parent corporation, or (3) any employee benefit plan (or related trust) sponsored or maintained by the Company immediately prior to such Business Combination beneficially owns, directly or indirectly, fifty percent (50%) or more of the combined voting power of the Surviving Corporation's then-outstanding voting securities entitled to vote in the election of directors; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)approval by the stockholders of the Company of a complete liquidation or dissolution of the Company.

Notwithstanding the foregoing, a Change in Control shall not be deemed to occur solely because any Person (the "Subject Person") acquired Beneficial Ownership of more than the permitted amount of the outstanding Voting Securities as a result of the acquisition of Voting Securities by the Company which, by reducing the number of Voting Securities outstanding, increases the proportional number of shares Beneficially Owned by the Subject Person, provided that if a Change in Control would occur (but for the operation of this sentence) and after such acquisition of Voting Securities by the Company, the Subject Person becomes the Beneficial Owner of any additional Voting Securities, then a Change in Control shall occur.

Notwithstanding the foregoing provisions of this definition, with respect to any Award (or portion of an Award) that provides for a deferral of compensation that is subject to Section 409A of the Code, to the extent necessary to prevent such compensation from being includible in gross income pursuant to subparagraph (a)(1)(A) of that Code Section (and only to that extent), a "Change in Control" shall be deemed to have occurred only if and when (i) any one or more of the conditions set forth in paragraph (i), (ii), (iii) or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) above of this definition shall have been satisfied, and (ii) as to the Grantee to whom the Award was granted, the event in question also constitutes a "change in the ownership or effective control of the corporation, or in the ownership of a substantial portion of the assets of the corporation" within the meaning of subparagraph (a)(2)(A) of Section 409A of the Code.

"*Clawback Policy*" means the Company's Compensation Recoupment Policy, as in effect from time to time.

"*Code*" means the Internal Revenue Code of 1986.

"*Committee*" means the Compensation and Human Resources Committee of the Board, as constituted at any time, or any successor to such committee, or any other committee of the Board appointed or designated by the Board, as described in Section 3 or as otherwise provided in Section 3.

"*Company*" means Regions Financial Corporation, a Delaware corporation, or any successor corporation.

"*Disability*" means, unless the applicable Award Agreement provides otherwise, a physical or mental condition which is expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months and which renders the Grantee incapable of performing the work for which he or she is employed or similar work, as evidenced, if applicable, by eligibility for and actual receipt of benefits payable under a group long-term disability plan or policy maintained by the Company or any of its Subsidiaries or Affiliates that is by its terms applicable to the Grantee. The determination of whether a Grantee has a Disability shall be determined under procedures established by the Committee. Notwithstanding the foregoing, with respect to any Award (or portion of an Award) that provides for a deferral of compensation that is subject to Section 409A of the Code, to the extent necessary to prevent such compensation from being includible in gross income pursuant to subparagraph (a)(1)(A) of that Code Section (and only to that extent), "Disability" means a disability as defined above that also qualifies the Grantee as "Disabled" within the meaning of subparagraph (a)(2)(C) of Section 409A of the Code.

"*Effective Date*" has the meaning assigned in Section 17.

"*Eligible Recipient*" means any full time or part time employee (including an officer or director who is also an employee) of the Company or any Subsidiary or Affiliate, any individual to whom an offer of employment has been extended who is reasonably expected to become an employee, a member of the Board or a member of the board of directors of a Subsidiary, or a consultant or other individual providing services to the Company or any Subsidiary or Affiliate as selected by the Committee. References to "*employment*" and related terms in the Plan will include the provision of services in any capacity.

"Exchange Act" means the Securities Exchange Act of 1934.

"*Fair Market Value*" means, unless the Committee determines otherwise, as of any given date, the closing sale price of a share of Stock on the date in question as reported by the principal consolidated transactions reporting system for securities listed on the principal securities exchange on which the Stock is traded or, if there is no such sale on the relevant date, then on the last previous day on which a sale was reported.

"*Good Reason*" means, unless otherwise provided by the Committee in an applicable Award Agreement, the occurrence of one or more of the following after a Change in Control:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)a material reduction in the Grantee's base salary and annual bonus opportunity, in each case, as in effect immediately before the Change in Control; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)the Company requiring the Grantee to be based at any location that is more than 50 miles from his or her regular place of employment immediately before the Change in Control, except to the extent that such change in work location results in a commute from the Grantee's primary residence that is the same or reduced as compared to the Grantee's commute prior to such change.

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Notwithstanding the foregoing, no termination of the Grantee's employment shall be for Good Reason unless (i) termination of the Grantee's employment (or notice of the Grantee's intent to terminate employment) occurs during the twenty-four (24) month period following the Change in Control, and (ii) the Grantee gives the Company written notice within ninety (90) days of the Grantee obtaining knowledge of circumstances giving rise to Good Reason (describing in reasonable detail the circumstances and the Good Reason event that has occurred) and the Company or its Subsidiary or Affiliate (as applicable) does not remedy these circumstances within thirty (30) days of receipt of such notice. In addition, an event will not give rise to Good Reason if it is made with the Grantee's express written consent. Further, if a Grantee is a party to an employment agreement or change in control severance agreement or plan that includes a definition of "good reason", then Good Reason for purposes of Awards granted to such Grantee shall have the same meaning as set forth in such employment agreement or change in control severance agreement or plan.

"*Grantee*" means a person who has been granted an Award under the Plan that remains outstanding, even if such person is no longer an Eligible Recipient.

"*Immediate Family*" means any child, stepchild, grandchild, parent, stepparent, grandparent, spouse, sibling, mother- in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law or sister-in-law, and will include adoptive relationships of the Grantee and family limited partnerships, trusts or similar entities which are primarily for the benefit of the Grantee and his or her Immediate Family.

"*Incentive Stock Option*" means any Stock Option that is intended to be designated as an "incentive stock option" within the meaning of Sections 421 and 422 of the Code and that is designated as an "Incentive Stock Option" in the applicable Award Agreement. Unless a Stock Option is specifically designated as an Incentive Stock Option, it will not be considered an Incentive Stock Option.

"*Non-Qualified Stock Option*" means any Stock Option that is not an Incentive Stock Option, including any Stock Option that provides (as of the time such Stock Option is granted) that it will not be treated as an Incentive Stock Option.

"*NYSE*" means the New York Stock Exchange.

"*Other Awards*" means an Award granted pursuant to Section 12.

"*Parent*" means any corporation (other than the Company) in an unbroken chain of corporations ending with the Company, if each of the corporations in the chain (other than the Company) owns shares possessing a majority of the combined voting power of all classes of shares in one of the other corporations in the chain.

"*Performance Award*" means an Award granted under Section 11.

"*Plan*" has the meaning assigned in Section 1.

"*Recoupment Policy*" means the Company's Financial Restatement Compensation Recoupment Policy, as in effect from time to time.

"*Restricted Period*" has the meaning assigned in Section 9.

"*Restricted Stock*" means shares of Stock subject to restrictions pursuant to an Award granted under Section 9.

"*Restricted Stock Units*" means restricted stock units pursuant to an Award granted under Section 10.

"*Retirement*" means, as it pertains to officers and employees, except as otherwise provided in an Award Agreement, that a Grantee experiences a separation from service (other than for Cause) at a time when the Grantee is (i) at least sixty five (65) years old or (ii) at least fifty five (55) years old and has at least ten (10) years of service with the Company or any of its Subsidiaries or Affiliates.

"*Securities Act*" means the U.S. Securities Act of 1933.

"*Stock*" means a share of Common Stock of the Company, par value $.01 per share.

"*Stock Appreciation Right*" or "*SAR*" means a stock appreciation right pursuant to an Award granted under Section 8.

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"*Stock Option*" or "*Option*" means an option to purchase Stock granted pursuant to Section 7.

"*Subsidiary*" means a corporation or other entity in which the Company has a direct or indirect ownership or other equity interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)References in this Plan (i) to Sections are to sections of this Plan unless otherwise stated; (ii) to any contract (including any Award) are to the contract as amended, modified, supplemented or replaced from time to time; (iii) to any statute, rule or regulation are to the statute, rule or regulation as amended, modified, supplemented or replaced from time to time (and, in the case of statutes, include any rules and regulations promulgated under the statute) and to any section of any statute, rule or regulation include any successor to the section; and (iv) to any governmental authority include any successor to the governmental authority. The various headings in this Plan are for convenience of reference only and in no way define, limit or describe the scope or intent of any provisions or Sections of this Plan. Unless the context requires otherwise, words describing the singular number include the plural and vice versa, words denoting any gender include all genders and the words "include", "includes" and "including" will be deemed to be followed by the words "without limitation."

**3. ADMINISTRATION**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Subject to the Committee's charter, the Plan will be administered by the Committee. The Committee may delegate any of its powers under the Plan to (i) a subcommittee of the Committee (which hereinafter will also be referred to as the Committee) and/or (ii) any person who is not a member of the Committee or to any administrative group within the Company, or to one or more officers or managers of the Company, or a committee of such officers and managers, the authority, subject to such terms and limitations as the Committee shall determine, to grant, cancel, modify or waive rights with respect to, alter, discontinue, suspend or terminate Awards held by the Grantee and subject to the requirements of the NYSE applicable to the Company and Delaware corporate law. In delegating its authority, the Committee will consider the extent to which any delegation may cause Awards to fail to meet the requirements of Rule 16(b)- 3(d)(1) or Rule 16(b)-3(e) under the Exchange Act. Notwithstanding anything to the contrary contained herein, the Board may, in its sole discretion, at any time and from time to time, grant Awards (including grants to directors) or administer the Plan, in which case the Board will have all of the authority and responsibility granted to the Committee herein. If so determined by the Committee, any Award made to any Grantee who is an "officer" within the meaning of Rule 16a-1(f) under the Exchange Act or member of the Board will be made by the full Board or a committee or subcommittee of the Board composed of at least two "non-employee" directors within the meaning of Rule 16b-3 under the Exchange Act. For the avoidance of doubt, the Committee, any delegate pursuant to this Section 3(a) and the Board shall be treated as the "Committee" for purposes of this Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)The Committee will have the power and authority to grant Awards under the Plan to Eligible Recipients pursuant to the terms of the Plan and to exercise all other powers granted to it under the Plan, subject to the terms of the Plan. In particular, but without limitation, the Committee will have the authority:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)to select those Eligible Recipients who will be Grantees;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)to determine whether, to what extent, and which Awards are to be granted to Grantees under the Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)to determine the number of shares of Stock to be covered by each Award granted under the Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)to determine the terms and conditions, not inconsistent with the terms of the Plan, of each Award granted under the Plan, including the waiver or modification of any such terms or conditions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)to determine the terms and conditions, not inconsistent with the terms of the Plan, which will govern all written instruments evidencing Awards granted under the Plan, including Award Agreements relating hereto, as well as the waiver or modification of any such terms or conditions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)to adopt, alter and repeal such administrative rules, guidelines and practices governing the Plan as it will from time to time deem advisable;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii)to construe, interpret and implement the terms and provisions of the Plan and any Award issued under the Plan (and any Award Agreements relating thereto) and to otherwise supervise the administration of the Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii)to determine the dates on which Awards may be exercised and on which the risk of forfeiture or deferral period relating to Awards will lapse or terminate, and the acceleration of any such dates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix)to determine the expiration date of any Award;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x)to determine, at any time, whether, to what extent, and under what circumstances an Award may be settled, or the option or reference price of an Award may be paid, in cash, shares of Stock, other Awards, or other property or canceled, forfeited or suspended and the method or methods by which an Award may be settled, canceled, forfeited or suspended;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi)to determine whether a termination of employment has occurred with respect to any Grantee for purposes of the Plan and any Awards;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii)to establish any "blackout" period that it deems necessary or advisable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiii)to prescribe Award Agreements (such Award Agreements need not be identical for each Grantee) and amendments thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiv)to correct any defect, supply any omission and reconcile any inconsistency in the Plan; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xv)to make all other determinations necessary or advisable for administering the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Without limiting the foregoing, the Committee may, in its absolute discretion, without amendment to the Plan, extend the period to exercise an Award (but not beyond its original term) or waive any condition imposed under the Plan, with respect to any Award, and/or waive or amend the operation of Plan provisions respecting exercise after termination of employment or otherwise adjust any of the terms of any Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)All decisions made in good faith by the Committee pursuant to the provisions of the Plan will be final, conclusive and binding on all persons, including the Company and the Grantees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)No member of the Board or the Committee or any employee of the Company or any of its Affiliates (each such person a "Covered Person") will have any liability to any person (including, without limitation, any Grantee) for any action taken or omitted to be taken or any determination made in good faith with respect to the Plan or any Award. Each Covered Person will be indemnified and held harmless by the Company against and from any loss, cost, liability or expense (including attorneys' fees) that may be imposed upon or incurred by such Covered Person in connection with or resulting from any action, suit or proceeding to which such Covered Person may be a party or in which such Covered Person may be involved by reason of any action taken or omitted to be taken under the Plan and against and from any and all amounts paid by such Covered Person, with the Company's approval, in settlement thereof, or paid by such Covered Person in satisfaction of any judgment in any such action, suit or proceeding against such Covered Person; provided that, the Company will have the right, at its own expense, to assume and defend any such action, suit or proceeding and, once the Company gives notice of its intent to assume the defense, the Company will have sole control over such defense with counsel of the Company's choice. The foregoing right of indemnification will not be available to a Covered Person to the extent that a court of competent jurisdiction in a final judgment or other final adjudication, in either case, not subject to further appeal, determines that the acts or omissions of such Covered Person giving rise to the indemnification claim resulted from such Covered Person's bad faith, fraud or dishonesty or willful criminal act or omission. The foregoing right of indemnification will not be exclusive of any other rights of indemnification to which Covered Persons may be entitled under the Company's Certificate of Incorporation, Memorandum of Association (or other foundational document) or By- Laws, as a matter of law, or otherwise, or any other power that the Company may have to indemnify such persons or hold them harmless.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)Minimum Vesting. All stock-settled Awards granted under the Plan shall be subject to a minimum of one (1) year of vesting, except that up to 5% of the shares of Stock available for grant may be made subject to Awards that do not have such a minimum vesting

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requirement. The minimum vesting requirement does not apply to Acquisition Awards or to Awards granted to non-employee directors that vest on the earlier of the one-year anniversary of the date of grant and the next annual meeting of the Company's stockholders (provided such next annual meeting is at least 50 weeks after the immediately preceding year's annual meeting). The minimum vesting requirement does not prevent the Committee from granting Awards that contain rights to accelerated vesting on death, Disability, Retirement, other termination of employment or a Change in Control, in the terms of the Award Agreement or otherwise.

**4. SHARES OF STOCK AVAILABLE UNDER THE PLAN; SHARE COUNTING**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The Committee may make Awards under this Plan for up to a total of: (1) 38,448,403 shares of Stock (reduced by one share for every share subject to awards granted after December 31, 2024 under the 2015 Plan, provided that no awards may be granted under the 2015 Plan after the Effective Date of this Plan), plus (2) any shares of Stock subject to an outstanding award under the 2015 Plan that for any reason is cancelled, terminated, lapsed, expired, are forfeited, become unexercisable for any other reason or are settled for cash (in whole or in part) to the extent of such cancellation, termination, lapse, expiration, forfeiture, unexercisability or cash settlement, plus (3) any additional shares that become available for issuance under this Plan in accordance with Section 4(c), which may be either treasury shares, authorized but unissued shares or shares purchased by the Company in the open market or otherwise. Effective as of the Effective Date of this Plan, the portion of the share authorization under the 2015 Plan for any shares of Stock thereunder that are not issuable under an outstanding award under the 2015 Plan shall be cancelled and no longer available for grant. The number of shares of Stock that may be issued under this Plan shall be adjusted by the Committee as appropriate to account for the events provided for in Section 5. Awards payable only in cash or property other than shares of Stock will not reduce the total remaining number of shares of Stock available under the Plan, and shares of Stock relating to any other Awards that are settled in cash or property other than shares, when settled, will be added back to the number of shares of Stock available under the Plan. To the extent that (i) an Award under this Plan will expire, lapse, terminate or be cancelled for any reason without the issuance of shares of Stock, or (ii) Restricted Stock under this Plan will revert back to the Company prior to the lapse of the applicable restrictions, then the Committee may also grant Awards with respect to such shares of Stock or Restricted Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Each share of Stock underlying an Option, Stock Appreciation Right, Restricted Stock, Restricted Stock Unit, Performance Award or Other Award will count as one share of Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Any shares of Stock with respect to which the Company becomes obligated to make Awards through the assumption of, or in substitution for, outstanding awards previously granted by an acquired entity ("Acquisition Awards"), will not count against the shares of Stock available to be delivered pursuant to Awards under this Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)The total number of shares of Stock as to which Awards of Incentive Stock Options may be granted under this Plan may not, subject to adjustment as provided in Section 5, exceed Thirty Million (30,000,000) shares in the aggregate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)From and after the Effective Date, the following shall not reduce the number of authorized shares of Stock available for issuance under this Plan:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)Stock reserved for issuance upon exercise or settlement, as applicable, of Awards granted under the Plan to the extent the Awards expire or are canceled or surrendered;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)Restricted Stock granted under the Plan, to the extent such Restricted Stock is forfeited or is otherwise surrendered to the Company before the restricted period expires; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)Awards, to the extent the payment is actually made in cash.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)From and after the Effective Date, the following shares of Stock shall not become available for issuance under the Plan:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)Stock withheld or tendered by Participants as full or partial payment to the Company upon exercise of a Stock Option granted under this Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)Stock reserved for issuance upon grant of stock-settled SARs, to the extent the number of reserved shares exceeds the number of shares actually issued upon exercise of the SARs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)Shares that are repurchased by the Company with Stock Option proceeds; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)Stock withheld by, or otherwise remitted to, the Company to satisfy a Participant's tax withholding obligations upon the exercise of Stock Options or SARs granted under the Plan or upon any other payment or issuance of shares under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)In order to retain and compensate non-employee directors for their services, and to strengthen the alignment of their interests with those of the stockholders of the Company, the Plan permits the grant of cash-based and stock-based awards to non-employee directors. The aggregate value of Awards that may be granted to any one non-employee director during any calendar year, solely with respect to his or her service as a non-employee director, may not exceed $750,000, based on the aggregate Fair Market Value of stock-based Awards, together with any cash compensation provided to such non-employee director, determined as of the date of grant.

**5. EQUITABLE ADJUSTMENTS**

In the event of any change in the number of issued shares of Stock (or issuance of shares other than shares of Stock) by reason of any forward or reverse stock split, subdivision or consolidation, or share dividend or bonus issue, recapitalization, reclassification, merger, amalgamation, consolidation, split-up, spin-off, reorganization, combination, exchange of shares of Stock, the issuance of warrants or other rights to purchase shares of Stock or other securities, or any other change in corporate structure or in the event of any extraordinary distribution (whether in the form of cash, shares of Stock, other securities or other property) (each, an "Adjustment Event"), then the Committee shall equitably adjust the number or kind of shares that may be issued under the Plan, and any or all of the terms of an outstanding Award (including the number of shares of Stock covered by such outstanding Award, the type of property to which the Award is subject and the exercise or reference price of such Award and the conditions of any Performance Award), and such adjustments will be final, conclusive and binding for all purposes of the Plan. In determining adjustments to be made under this Section 5, the Committee may take into account such factors as it determines to be appropriate, including (i) the provisions of applicable law, (ii) the potential tax or accounting consequences of an adjustment (including, as applicable, under Section 409A of the Code) and (iii) the preservation of the benefits or potential benefits intended to be made pursuant to Awards and, in light of such factors or others, may make adjustments that are not uniform or proportionate among outstanding Awards; provided that no such adjustment shall be made if or to the extent that it would cause any outstanding Award to fail to comply with Section 409A of the Code. In connection with any adjustment pursuant to this Section 5, the Committee may provide, in its sole discretion, for the cancellation of any outstanding Awards in exchange for payment in cash or other property equal to the Fair Market Value of the shares of Stock covered by such Awards, reduced by the option or reference price, if any. After any adjustment made pursuant to this Section 5, the number of shares subject to each outstanding Award will be rounded down to the nearest whole number.

**6. ELIGIBILITY**

Eligible Recipients will be eligible to be granted any Award or any combination of Awards under the Plan at the same or different times, except that Incentive Stock Options will only be granted to Eligible Recipients who are employees of the Company or one of its Subsidiaries or Affiliates.

**7. STOCK OPTIONS**

Stock Options may be granted alone or in addition to other Awards granted under the Plan. Any Stock Option granted under the Plan will be in such form as the Committee may from time to time approve, and the provisions of Stock Option awards need not be the same with respect to each Grantee. If requested by the Committee, Grantees who are granted Stock Options will enter into an Award Agreement with

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the Company, in such form as the Committee will determine. The Stock Options granted under the Plan may be of two types: (i) Incentive Stock Options and (ii) Non-Qualified Stock Options. To the extent that any Stock Option that is intended to be an Incentive Stock Option does not qualify as an Incentive Stock Option, it will constitute a Non-Qualified Stock Option. Stock Options granted under the Plan will be subject to the following terms and conditions and to the relevant Award Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)*Option Price*. The option price per share of Stock purchasable under a Stock Option will be determined by the Committee in its sole discretion at the time of grant but, except as otherwise permitted by Section 5 or in the case of an Acquisition Award, will not be less than 100% of the Fair Market Value of a share of Stock on such date (or in the case of Incentive Stock Options, 110% of the Fair Market Value per share on such date if, on such date, the Eligible Recipient owns, or is deemed to own under the Code, shares possessing more than ten percent (10%) of the total combined voting power of all classes of Company Voting Securities (a "Ten Percent Owner")).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)*Option Term*. The term of each Stock Option will be fixed by the Committee, but no Stock Option will be exercisable more than ten (10) years (or in the case of Incentive Stock Options granted to a Ten Percent Owner (as determined on the date of grant), five (5) years) after the date such Stock Option is granted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)*Other Terms and Conditions*. The form, terms and conditions of each Stock Option will be determined by the Committee and will be set forth in the Award Agreement. Such additional terms and conditions may include provisions relating to the vesting and exercisability of such Stock Options as well as the conditions or circumstances upon which such Stock Options may be accelerated, extended, forfeited or otherwise modified. The Committee will specify in the applicable Award Agreement the circumstances in which Stock Options will vest, remain exercisable or be forfeited in the event of a Grantee's termination of employment; provided that with respect to Incentive Stock Options, a Grantee will not be deemed to have terminated employment if the Grantee is on a bona fide leave of absence for not longer than three months or has a right to re-employment that is guaranteed by statute or contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)*Method of Exercise*. Subject to any vesting conditions established under Section 7(c), Stock Options may be exercised in whole or in part at any time during the option term, by giving written notice of exercise to the Company specifying the number of shares of Stock to be purchased, accompanied by payment in full of the option price in cash (by certified check or as otherwise permitted by the Committee). As determined by the Committee, in its sole discretion, payment in whole or in part may also be made (i) in the form of unrestricted shares of Stock already owned by the Grantee that have a Fair Market Value on the date of tender equal to the aggregate option price of the shares of Stock as to which such Stock Option will be exercised (in the case of an Incentive Stock Option, the right to make payment in shares of Stock must be authorized only at the time of grant); (ii) any other form of consideration approved by the Committee and permitted by applicable law; or (iii) any combination of the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)*Annual Limit on Incentive Stock Options; Time Limit to Exercise*. In addition to the limitation applicable to Incentive Stock Options in Section 4(d), to the extent that the aggregate Fair Market Value (determined as of the date the Incentive Stock Option is granted) of shares of Stock with respect to which Incentive Stock Options granted to a Grantee under this Plan and all other option plans of the Company or of any Parent or Subsidiary become exercisable for the first time by the Grantee during any calendar year exceeds $100,000 (or, if different, the maximum limitation in effect at the time of grant under Section 422 of the Code, or any successor provision), the portion of such Incentive Stock Options in excess of $100,000 (or, if different, such maximum limitation) will be treated as Non-Qualified Stock Options. The portion of any Incentive Stock Option not exercised within 90 days after termination of employment will be treated as a Non-Qualified Stock Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)*Settlement of an Option*. In connection with the exercise of a Stock Option pursuant to paragraph (d), the Committee, in its sole discretion, may elect, in lieu of issuing shares of Stock pursuant to the terms of the Stock Option, to settle the Stock Option by paying the Grantee an amount equal to the product obtained by multiplying (i) the excess of the Fair Market Value of one share of Stock on the date the Stock Option is exercised over the option price of the Stock Option (the "Option Spread") by (ii) the number of shares of Stock with respect to which the Stock Option is exercised. The amount payable to the Grantee in these circumstances will be paid by the Company either in cash or a combination of cash and Stock, as the Committee will determine at the time the Stock Option is exercised and/or at the time the Stock Option is granted.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)*No Option Repricing*. Except as otherwise permitted by Section 5, the Committee shall not, without the approval of the Company's stockholders, seek to cancel and replace any previously granted "underwater" Stock Option having a lower option price by: (i) amending or modifying the terms of the Stock Option to lower the option price; (ii) cancelling the underwater Stock Option and granting either (A) replacement Stock Options having a lower option price or (B) Restricted Shares, Restricted Stock Units, Performance Awards or Other Awards in exchange; or (iii) cancelling or repurchasing the underwater Stock Options for cash or other securities. A Stock Option will be deemed to be "underwater" at any time when the Fair Market Value of the shares covered by such Stock Option is less than the option price of the Stock Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)*Automatic Exercise of Options*. To the extent a Stock Option is not previously exercised as to all of the shares subject thereto, and, if the Fair Market Value per share is greater than the option price then in effect, then the Stock Option shall be deemed automatically exercised immediately before its expiration.

**8. STOCK APPRECIATION RIGHTS**

Stock Appreciation Rights may be granted alone or in addition to other Awards granted under the Plan. Any SAR granted under the Plan will be in such form as the Committee may from time to time approve, and the provisions of SAR Awards need not be the same with respect to each Grantee. If requested by the Committee, Grantees who are granted SARs will enter into an Award Agreement with the Company, in such form as the Committee will determine. Stock Appreciation Rights granted under the Plan will be subject to the following terms and conditions and to the relevant Award Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)*Reference Price*. The reference price per share of Stock underlying each SAR will be determined by the Committee in its sole discretion at the time of grant but, except as otherwise permitted by Section 5 or in the case of an Acquisition Award, will not be less than 100% of the Fair Market Value of a share of Stock on such date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)*SAR Term*. The term of each SAR will be fixed by the Committee, but no SAR will be exercisable more than ten (10) years after the date such SAR is granted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)*Terms and Conditions*. The form, terms and conditions of each SAR will be determined by the Committee and will be set forth in an Award Agreement. Such additional terms and conditions may include, without limitation, provisions relating to the vesting and exercisability of such Stock Appreciation Rights as well as the conditions or circumstances upon which such Stock Appreciation Rights may be accelerated, extended, forfeited or otherwise modified. Settlement of each Stock Appreciation Right will be in cash, shares of Stock, other Awards or other property, or any combination of the foregoing, in the sole discretion of the Committee. The Committee will specify in the applicable Award Agreement the circumstances in which Stock Appreciation Rights will vest, remain exercisable or be forfeited in the event of a Grantee's termination of employment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)*Method of Exercise and Payment*. In connection with the exercise of a SAR, the Grantee will be entitled to receive up to, but not more than, an amount in cash or that number of shares of Stock (or any combination of cash and shares of Stock, as determined by the Committee) equal in value to the excess of the Fair Market Value of one share of Stock as of the date of exercise over the reference price per share of Stock specified in the SAR Award Agreement, with the Committee having the right to determine the form of payment. No SAR may be exercised for a fraction of a share of Stock. Payment with respect to the exercise of a SAR shall be made on the date of exercise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)*No SAR Repricing*. Except as otherwise permitted by Section 5, the Committee shall not, without the approval of the Company's stockholders, seek to cancel and replace any previously granted "underwater" SAR having a lower reference price by: (i) amending or modifying the terms of the SAR to lower the reference price; (ii) cancelling the underwater SAR and granting either (A) replacement SARs having a lower reference price or (B) Restricted Shares, Restricted Stock Units, Performance Awards or Other Awards in exchange; or (iii) cancelling or repurchasing the underwater SARs for cash or other securities. An SAR will be deemed to be "underwater" at any time when the Fair Market Value of the shares covered by such SAR is less than the reference price of the SAR.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)*Automatic Exercise of SARs*. To the extent a SAR is not previously exercised as to all of the shares subject thereto, and, if the Fair Market Value per share is greater than the reference price then in effect, then the SAR shall be deemed automatically exercised immediately before its expiration.

**9. RESTRICTED STOCK**

Restricted Stock may be granted alone or in addition to other Awards granted under the Plan. Any Award of Restricted Stock granted under the Plan will be in such form as the Committee may from time to time approve, and the provisions of Restricted Stock Awards need not be the same with respect to each Grantee. If requested by the Committee, Grantees who are granted Restricted Stock will enter into an Award Agreement with the Company, in such form as the Committee will determine. Restricted Stock granted under the Plan will be subject to the following terms and conditions and to the relevant Award Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)*Purchase Price*. The price per share of Restricted Stock, if any, that a Grantee must pay for Restricted Stock purchasable under an Award will be determined by the Committee in its sole discretion at the time of grant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)*Terms and Conditions*. The form, terms and conditions applicable to each share of Restricted Stock will be determined by the Committee and will be set forth in an Award Agreement. Such terms and conditions may include the restrictions upon such Restricted Stock, the dates as of which restrictions upon such Restricted Stock will lapse (any period prior to such lapse with respect to a share of Restricted Stock, the "Restricted Period"), and the conditions or circumstances upon which such Restricted Stock will be forfeited or the otherwise modified with respect to the applicable terms. The Committee will specify in the applicable Award Agreement the circumstances in which Restricted Stock will vest or be forfeited in the event of a Grantee's termination of employment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)*Awards and Certificates*. In the event that a stock certificate is issued in respect of Restricted Stock, such certificate will be registered in the name of the Grantee and will bear an appropriate legend referring to the terms, conditions, and restrictions applicable to any such Award; provided that, unless the Committee will determine otherwise, the stock certificates evidencing Restricted Stock granted under the Plan will be held in the custody of the Company until the restrictions thereon will have lapsed, and, as a condition of any Restricted Stock Award, the Grantee will be required to deliver a stock power or stock transfer form, endorsed in blank, relating to the Restricted Stock covered by such Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)*Forfeiture of Restricted Stock*. In the event that any Restricted Stock should be forfeited by the Grantee, any stock certificate or certificates representing such Restricted Stock will be cancelled and the shares of Restricted Stock will either be cancelled or returned to the Company and belong thereafter to the Company. Upon the reversion of such shares of Restricted Stock to the Company, the Company will repay to the Grantee or (in the case of death) to the representative of the Grantee's estate, the full cash amount paid, if any, to the Company by the employee for such Restricted Stock pursuant to Section 9(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)*Right to Vote and Receive Dividends on Restricted Stock*. Each Grantee will, during the Restricted Period, be the beneficial and record owner of such shares of Restricted Stock and will have full voting rights with respect thereto. Unless the Committee determines otherwise in an Award Agreement, during the Restricted Period, all ordinary cash dividends (as determined by the Committee in its sole discretion) paid upon any share of Restricted Stock will be retained by the Company for the account of the relevant Grantee. Such dividends will revert back to the Company if for any reason the Restricted Stock upon which such dividends were paid reverts back to the Company. Upon the expiration of the Restricted Period, such dividends paid on such Restricted Stock and retained by the Company will be paid to the relevant Grantee, or if such Restricted Stock is forfeited, the Grantee shall have no right to such dividends. Unless the applicable Award Agreement provides otherwise, additional shares of Stock or other property distributed to the Grantee in respect of Restricted Stock, as dividends or otherwise, will be subject to the same restrictions applicable to such Restricted Stock.

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**10. RESTRICTED STOCK UNITS**

Restricted Stock Units may be granted alone or in addition to other Awards granted under the Plan. Any Restricted Stock Units granted under the Plan will be in such form as the Committee may from time to time approve, and the provisions of Restricted Stock Unit Awards need not be the same with respect to each Grantee. If requested by the Committee, Grantees who are granted Restricted Stock Units will enter into an Award Agreement with the Company, in such form as the Committee will determine. Restricted Stock Units granted under the Plan will be subject to the following terms and conditions and to the relevant Award Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)*Terms and Conditions*. The form, terms and conditions of each Restricted Stock Unit will be determined by the Committee and will be set forth in an Award Agreement. Such terms and conditions may include the conditions or circumstances upon which such Restricted Stock Unit will vest, be forfeited or otherwise modified, and the date or dates upon which any shares of Stock, cash or other property will be delivered to the Grantee in respect of the Restricted Stock Units. The Committee will specify in the applicable Award Agreement the circumstances in which Restricted Stock Units will be paid or forfeited in the event of a Grantee's termination of employment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)*Settlement of Restricted Stock Units*. The Committee, in its sole discretion, may instruct the Company to pay on the date when shares of Stock would otherwise be issued pursuant to a Restricted Stock Unit, in lieu of such shares of Stock, a cash amount equal to the number of such shares multiplied by the Fair Market Value of a share of Stock on the date when shares would otherwise have been issued. If a Grantee is entitled to receive other shares, securities or other property as a result of an adjustment, pursuant to Section 5, the Committee, in its sole discretion, may instruct the Company to pay, in lieu of such other shares, securities or other property, cash equal to the Fair Market Value thereof as determined in good faith by the Committee. Until the delivery of such shares of Stock, cash, securities or other property, the rights of a Grantee with respect to a Restricted Stock Unit will be only those of a general unsecured creditor of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)*Right to Receive Dividend Equivalents on Restricted Stock Units*. If provided for in the applicable Award Agreement, during the period prior to payment of the Restricted Stock Unit, all ordinary cash dividends (as determined by the Committee in its sole discretion) that would have been paid upon any share of Stock underlying a Restricted Stock Unit had such shares of Stock been issued will be paid only at the time and to the extent such Restricted Stock Unit is vested and settled.

**11. PERFORMANCE AWARDS**

Performance Awards may be granted alone or in addition to other Awards granted under the Plan. Any Performance Award granted under the Plan will be in such form as the Committee may from time to time approve, and the provisions of Performance Awards need not be the same with respect to each Grantee. If requested by the Committee, Grantees who are granted Performance Awards will enter into an Award Agreement with the Company, in such form as the Committee will determine. Performance Awards granted under the Plan will be subject to the following terms and conditions and to the relevant Award Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)*General*. Performance Awards may be denominated as a cash amount, a number of shares of Restricted Stock, a number of Restricted Stock Units, Other Awards or a combination thereof and are awards which may be earned upon achievement or satisfaction of performance conditions specified by the Committee. In addition, the Committee may specify that any other Award will constitute a Performance Award by conditioning the right of a Grantee to exercise the Award or have it settled, and the timing thereof, upon achievement or satisfaction of such performance conditions as may be specified by the Committee. The Committee may use such business criteria and other measures of performance as it may deem appropriate in establishing any performance conditions. In the event that a stock certificate is issued in respect of Performance Awards, such certificates will be registered in the name of the Grantee but will be held by the Company until the time such Performance Awards are earned. The performance conditions and the performance period applicable to each Performance Award will be determined by the Committee and set forth in an Award Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)*Adjustment*. The Committee may disregard or offset the effect of any special charges or gains or cumulative effect of a change in accounting in determining the attainment of performance criteria. In addition, the Committee is authorized to make adjustments in the terms and conditions of Performance Awards, including to any applicable performance criteria, in recognition of unusual or nonrecurring events (including Adjustment Events, as well as acquisitions and dispositions of businesses and assets) affecting the Company, any Subsidiary or Affiliate, or any business unit of the Company, or the financial statements of the Company, any Subsidiary or Affiliate, or any business unit, or in response to changes in applicable laws, regulations, accounting principles, tax rates and regulations or business conditions or in view of the Committee's assessment of the business strategy of the Company, any Subsidiary or Affiliate or business unit thereof, performance of comparable organizations, economic and business conditions, personal performance of a Grantee, and any other circumstances deemed relevant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)*Settlement of Performance Awards; Other Terms*. Settlement of Performance Awards will be in cash, shares of Stock, other Awards or other property, or any combination of the foregoing, in the sole discretion of the Committee. The Committee will specify in the applicable Award Agreement the circumstances in which Performance Awards will be paid or forfeited in the event of a Grantee's termination of employment.

**12. OTHER AWARDS**

The Committee may grant other types of equity-based or equity-related Awards (including unrestricted shares of Stock) or Cash Awards in such amounts and subject to such terms and conditions as the Committee will determine and may include, without limitation, Awards that upon grant are fully vested and non-forfeitable. Such Other Awards may entail the issue or transfer of actual shares of Stock or otherwise of amounts based on the value of shares of Stock. The terms and conditions applicable to Other Awards will be as determined by the Committee and set forth in an Award Agreement.

**13. CHANGE IN CONTROL**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Except as otherwise provided in an applicable Award Agreement, in the event of a Change in Control, unless otherwise specifically prohibited under law or by the rules and regulations of a national security exchange applicable to the Company, if the employment of the Grantee is terminated by the Company without Cause or by the Grantee for Good Reason within the twenty-four (24) month period following such Change in Control:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)any and all Stock Options and Stock Appreciation Rights granted under the Plan will become both vested and immediately exercisable as of the date of such termination of employment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)any Restricted Period and other restrictions imposed on Restricted Stock or Restricted Stock Units will lapse, and Restricted Stock Units will become both vested and immediately payable as of the date of such termination of employment; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)any Other Awards will become both vested and immediately payable as of the date of such termination of employment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)In the event of a Change in Control, the payout opportunities attainable under all outstanding Performance Awards will be deemed to have been earned based on the greater of targeted performance and actual performance being attained as of the effective date of the Change in Control and such Performance Awards will remain subject to time-based vesting for the remainder of the applicable performance period, subject to accelerated vesting in accordance with Section 13(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)In the event of a Change in Control, the Committee may determine that all outstanding Awards will be cancelled upon a Change in Control, and the value of such Awards, as determined by the Committee in accordance with the terms of the Plan and the Award Agreement, will be paid out in cash, shares of Stock or other property within a reasonable time subsequent to the Change in Control; provided, that (i) no such payment will be made on account of an Incentive Stock Option using a value higher than the Fair Market Value of a share of Stock on the date of settlement and (ii) prior to the occurrence of a Change in Control, the Committee may determine to cancel without any payment or other consideration any Stock Options and SARs having, as applicable, an exercise price

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or reference price per share at the time of the Change in Control that is equal to or greater than the value of the consideration received by stockholders of the Company in respect of a share of Stock in connection with the Change in Control.

**14. AMENDMENT AND TERMINATION**

The Committee or the Board may at any time and from time to time, alter, amend, modify, suspend, or terminate the Plan in whole or in part; provided that, except as provided at Section 5 hereof, no amendment by the Committee or the Board will (a) increase the total number of shares of Stock which may be issued subject to the Plan, (b) amend Sections 7(g) or 8(e) to allow for repricing of Stock Options or SARs, respectively, or (c) make any other change for which stockholder approval is required under any applicable law, regulation or exchange requirement, in each case, unless such change is approved by the stockholders of the Company in accordance with applicable law, regulation, or exchange requirement. Except as provided in Section 16(h), no action taken pursuant to this Section 14 of the Plan will, without the consent of the Grantee, be effective with respect to any Award which has been previously granted to a Grantee if it materially impairs such Award, except that the Committee and the Board have full discretion to amend the Plan (i) to the extent necessary to preserve equity accounting treatment with respect to any Award and any outstanding Award Agreement will be deemed to be so amended without obtaining the consent of any Grantee and (ii) to the extent necessary to comply with applicable law, tax rules, listing standards or accounting standards, and in each case, for purposes of the Plan, any action of the Board or the Committee that alters or affects the tax treatment of any Award will not be considered to materially impair the rights of any Grantee.

**15. UNFUNDED STATUS OF PLAN**

The Plan is intended to constitute an "unfunded" plan for incentive compensation. With respect to any payments not yet made to a Grantee by the Company, nothing contained herein will give any such Grantee any rights that are greater than those of a general unsecured creditor of the Company.

**16. GENERAL PROVISIONS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)*Compliance with Applicable Law*. Stock will not be issued (and no payment in any other form will be made) pursuant to the exercise or settlement of any Award granted under the Plan unless the exercise or settlement of such Award and the issuance and delivery of such Stock or other payment pursuant thereto will comply with all relevant provisions of applicable law, including, without limitation, the Securities Act, the Exchange Act, and the requirements of any stock exchange upon which the Stock may then be listed (collectively, "Applicable Law"), and will be further subject to the approval of counsel for the Company with respect to such compliance. The Committee may require any Grantee to make such representations, furnish such information and comply with or be subject to such other conditions as it may consider appropriate in connection with the issuance or delivery of Stock or payment of other benefits in compliance with applicable laws, rules, and regulations, listing requirements, or other obligations. This Plan and each Award and Award Agreement are subject to and shall be, to the fullest extent possible, interpreted to be consistent with Applicable Law. In the event of any conflict, the provisions of Applicable Law control over the terms of this Plan and any Award or Award Agreement. Notwithstanding anything in this Plan or any Award Agreement to the contrary, in no event shall any Award, payment or benefit under this Plan or any Award Agreement vest or be settled, paid or accrued, if any such vesting, settlement, payment or accrual would be in violation of Applicable Law. In the event of any such violation, the Company and any Award recipient will cooperate in good faith to endeavor to meet the requirements of Applicable Law in a manner which preserves to the greatest extent possible the intent and purposes of this Plan and the applicable Award, payment or benefit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)*Certificate Legends*. The certificates for shares of Stock may include any legend which the Committee deems appropriate to reflect any restrictions on transfer. All certificates for Stock issued or delivered under the Plan will be subject to such stock-transfer orders and other restrictions as the Committee may deem advisable under the rules, regulations, and other requirements of the Securities and Exchange Commission, any stock exchange upon which the Stock is are then listed, and any applicable foreign, federal or state securities law, and the Committee may cause a legend or legends to be placed on any such certificates to make appropriate reference to such restrictions.

Regions Financial Corporation \| 2025 Long Term Incentive Plan A-14

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)*No Right to Employment*. The adoption of the Plan will not confer upon any Eligible Recipient any right to continued employment or service with the Company or any Parent or Subsidiary, as the case may be, nor will it interfere in any way with the right of the Company or any Parent or Subsidiary to terminate the employment or service of any of its Eligible Recipients at any time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)*No Rights as a Stockholder*. Except as otherwise provided in an Award Agreement, no Grantee (or other person having rights pursuant to such Award) will have any of the rights of a stockholder of the Company with respect to Stock subject to such Award until such Stock is issued to such person, and, if requested by the Company, until such person has given the representation described in Section 16(a). Except as otherwise provided in an Award Agreement or pursuant to Section 5, no adjustment will be made for dividends, distributions or other rights (whether ordinary or extraordinary, and whether in cash, securities or other property) for which the record date is prior to the date such stock certificate is issued.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)*Non-Transferability*. Except as otherwise provided by the Committee or in a Grantee's Award Agreement, Awards may not be sold, pledged, assigned, encumbered, hypothecated, transferred, or disposed of in any manner other than by will, by the laws of descent or distribution, by a domestic relations order incident to a divorce, and as applicable, may be exercised, during the lifetime of the Grantee, only by the Grantee or the Grantee's legal representative. Any attempt to dispose of any Awards in contravention of any such restrictions will be null and void and without effect. Notwithstanding the foregoing, the Committee in its discretion may permit a Grantee to transfer an Award by instrument to an inter vivos or testamentary trust in which the Awards are to be passed to beneficiaries upon the death of the Grantee, or by gift to Immediate Family. Notwithstanding anything herein or in an Award Agreement to the contrary, any permitted transfer of an Award shall be for no consideration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)*Payment of Taxes/Right of Offset*. As a condition to the receipt of any shares of Stock pursuant to any Award or the lifting of restrictions on any Award, or in connection with any other event that gives rise to a withholding obligation on the part of the Company relating to an Award (including, without limitation, for FICA taxes and any other federal, state, local or foreign taxes of any kind required by law to be withheld with respect to such Award), the Company will require that the Grantee remit to the Company, or make arrangements satisfactory to the Committee regarding payment of, an amount sufficient in the opinion of the Committee to satisfy such withholding obligation. If the event giving rise to the withholding obligation involves the issue or transfer of shares of Stock, then, unless the applicable Award Agreement provides otherwise, the Committee may permit a Grantee to satisfy the withholding obligation by electing to have the Company withhold shares of Stock or by tendering previously owned shares of Stock, in each case having a Fair Market Value not to exceed the maximum statutory tax rate in the applicable jurisdiction (or by any other mechanism as may be required or appropriate to conform with local tax and other rules). For this purpose, Fair Market Value will be determined as of the date on which the amount of tax to be withheld is determined (and the Company may cause any fractional share amount to be settled in cash). The obligations of the Company under the Plan will be conditional on the making of such payments or arrangements, and the Company will, to the extent permitted by law, have the right to deduct any such taxes from any payment of any kind otherwise due to the Grantee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)*Tax Notifications*. Each Grantee will promptly notify the Company of any election the Grantee makes under Section 83(b) of the Code or any disposition of shares of Stock delivered pursuant to the exercise of an Incentive Stock Option under the circumstances described in Section 421(b) of the Code (relating to certain disqualifying dispositions).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)*Section 409A*. The Plan is intended to comply with Section 409A of the Code to the extent subject thereto, and, accordingly, to the maximum extent permitted, the Plan shall be interpreted and administered to be in compliance therewith. Any payments described in the Plan that are due within the "short-term deferral period" as defined in Section 409A of the Code shall not be treated as deferred compensation unless applicable laws require otherwise. Notwithstanding anything to the contrary in this Plan or an Award Agreement, if a Grantee is a "specified employee" as determined pursuant to Section 409A of the Code as of the date of his or her "separation from service" (within the meaning of Final Treasury Regulation 1.409A-1(h)) and if any Award or payment or settlement of an Award provided hereunder both (i) constitutes a "deferral of compensation" within the meaning of Section 409A of the Code and (ii) cannot be paid or provided in the manner otherwise provided without subjecting the Grantee to "additional tax", interest or penalties under Section 409A of the Code, then any such payment or settlement that is payable or that would be settled during the

A-15 Regions Financial Corporation \| 2025 Long Term Incentive Plan

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first six months following Grantee's "separation from service" shall be paid or provided to Grantee no later than the last business day of the seventh calendar month following the month in which his or her "separation from service" occurs or, if earlier, at Grantee's death. In addition, any payment or benefit due upon a termination of Grantee's employment that represents a "deferral of compensation" within the meaning of Section 409A of the Code shall only be paid or provided to Grantee upon a "separation from service" (within the meaning of Final Treasury Regulation 1.409A-1(h)). For the purposes of this Agreement, each Award made pursuant hereto shall be deemed to be a separate payment. This provision does not prohibit the vesting of any Award or the vesting of any right to eventual payment or distribution of any amount or benefit under the Plan or any Award Agreement. In the event a Grantee is subject to income inclusion, additional interest or taxes, or any other adverse consequences under Section 409A of the Code, neither the Company, any Subsidiary, any Affiliate, the Board, the Committee, nor its or their employees, designees, agents or contractors shall be liable to any Grantee or other persons in connection with any adverse consequences under Section 409A of the Code. Notwithstanding the foregoing, neither the Company nor the Committee shall have any obligation to take any action to prevent the assessment of any additional tax or penalty on any Grantee under Section 409A of the Code and neither the Company nor the Committee will have any liability to any Grantee for such tax or penalty.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)*Termination of Employment*. The Committee in its discretion shall specify in the applicable Award Agreement the provisions governing the terms of an Award in the event of a Grantee's termination of employment. Subject to applicable laws, rules and regulations, in connection with a Grantee's termination of employment, as well as Section 3(f), the Committee shall have the discretion to accelerate the vesting, exercisability or settlement of, eliminate the restrictions and conditions applicable to or extend the post-termination exercise period of an outstanding Award. The Committee's decisions need not be uniform among all Award Agreements and Grantees and may reflect distinctions based on the reasons for termination of employment.

Whether military, government or other service or other leave of absence shall constitute a termination of employment shall be determined in each case by the Committee at its discretion, and any determination by the Committee shall be final and conclusive; provided that a Grantee's employment shall be deemed to be terminated upon the first date following the passage of six months of leave unless the Grantee' has a statutory or contractual right to reemployment. A termination of employment shall not occur in a circumstance in which a Grantee' transfers from the Company to one of its Parents or Subsidiaries or Affiliates, transfers from a Parent or Subsidiary or Affiliate to the Company, transfers from one Parent or Subsidiary or Affiliate to another Parent or Subsidiary or Affiliate or, in the discretion of the Committee as specified at or prior to such occurrence, in the case of a spin-off, sale or disposition of the Grantee's employer from or by the Company or its Subsidiary or Affiliate. The Committee may in its sole discretion take any further action that it deems to be equitable under the circumstances or in the best interests of the Company, including, without limitation, waiving or modifying any limitation or requirement with respect to any Award under this Plan. A Grantee shall not be considered retired if and so long as he or she continues to serve as a director of the Company or a Subsidiary of the Company.

Without limiting in any way the generality of the Committee's power to specify any terms and conditions of an Award consistent with applicable law, the Committee may specify in an Award Agreement that the Grantee's rights, payments, and benefits with respect to an Award will be subject to reduction, cancellation, forfeiture, or recoupment upon the occurrence of certain specified events, in addition to any otherwise applicable vesting or performance conditions of an Award. Such events may include, without limitation, the Grantee's failure to accept the terms of the Award Agreement, termination of employment under certain or all circumstances, violation of material Company policies, breach of noncompetition, confidentiality, nonsolicitation, noninterference, corporate property protection, or any supplementary policy or agreement that may apply to the Grantee, or other conduct by the Grantee that is detrimental to the business or reputation of the Company and its Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)*Deferral of Awards*. The Committee will be authorized to establish procedures pursuant to which the payment of any Award may be deferred at the election of a Grantee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)*Dividend Equivalent Rights*. Subject to the provisions of the Plan and any Award Agreement, the recipient of an Award (including, without limitation, any deferred Award), other than Awards of Stock Options and SARs, may, if so determined by the Committee, be entitled to receive, currently or on a deferred basis, cash dividends, or cash payments in amounts equivalent to other dividends or

Regions Financial Corporation \| 2025 Long Term Incentive Plan A-16

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distributions on shares of Stock, with respect to the number of shares of Stock covered by the Award, as determined by the Committee, in its sole discretion; provided, however, that notwithstanding anything herein or in an Award Agreement to the contrary dividends or dividend equivalents with respect to Awards shall not be paid unless the related Award has been earned and shall be forfeited if the related Award is forfeited. The Committee may provide that such amounts (if any) will be deemed to have been reinvested in additional shares of Stock or otherwise reinvested.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)*Nature of Payments; Other Payments or Awards*. Any and all grants of Awards and issuances of Stock under the Plan will constitute a special incentive payment to the Grantee and will not be taken into account in computing the amount of salary or compensation of the Grantee for the purpose of determining any benefits under any pension, retirement, profit-sharing, bonus, life insurance or other benefit plan or under any Agreement with the Grantee, unless such plan or Agreement specifically provides otherwise. Nothing contained in the Plan will be deemed in any way to limit or restrict the Company or its Subsidiary or Affiliate from making any Award or payment to any person under any other plan, arrangement or understanding, whether now existing or hereafter in effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)*Binding on Successors*. The terms of this Plan will be binding upon and inure to the benefit of the Company and its successors and assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)*Non-Uniform Treatment*. The Committee's determinations under the Plan need not be uniform and may be made by it selectively among persons who receive, or are eligible to receive, Awards (whether or not such persons are similarly situated). Without limiting the generality of the foregoing, the Committee will be entitled, among other things, to make non-uniform and selective determinations, amendments and adjustments, and to enter into non-uniform and selective Award Agreements, as to the persons to receive Awards under the Plan, and the terms and provisions of Awards under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o)*Severability*. If any of the provisions of this Plan or any Award Agreement is finally held to be invalid, illegal or unenforceable (whether in whole or in part), such provision will be deemed modified to the extent, but only to the extent, of such invalidity, illegality or unenforceability and the remaining provisions will not be affected thereby; provided that, if any of such provisions is finally held to be invalid, illegal, or unenforceable because it exceeds the maximum scope determined to be acceptable to permit such provision to be enforceable, such provision will be deemed to be modified to the minimum extent necessary to modify such scope in order to make such provision enforceable under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p)*Waiver of Claims; Clawback*. Before being selected by the Committee to receive an Award, no Eligible Recipient has any right to any benefits under the Plan. Accordingly, in consideration of the Grantee's receipt of any Award hereunder, he or she expressly waives any right to contest the amount of any Award, the terms of any Award Agreement, any determination, action or omission hereunder or under any Award Agreement by the Committee, the Company or the Board, or any amendment to the Plan or any Award Agreement (other than an amendment to the Plan or an Award Agreement to which his or her consent is expressly required by the express terms of the Plan or an Award Agreement). Awards under the Plan shall be subject to the clawback, recapture or recoupment policy that the Company may adopt from time to time to the extent provided in such policy and, in accordance with such policy, as in effect from time to time, may be subject to the requirement that the Awards be forfeited, reduced, or repaid to the Company after they have been distributed or paid to the Grantee, upon such terms and conditions as may be required by the Committee or under Section 10D of the Exchange Act and Section 303A.14 of the NYSE Listed Company Manual. By accepting an Award pursuant to this Plan, the Grantee shall be deemed to have agreed to abide by the Recoupment Policy and the Clawback Policy, in each case, to the extent applicable to the Grantee, in respect of all compensation received from the Company or any of its Affiliates, whether pursuant to this Plan or otherwise and whether subject to time- and/or performance-based vesting provisions, to the extent set forth in the Recoupment Policy or the Clawback Policy, as applicable, and the Grantee shall be deemed to have further agreed that, in the event that any such compensation previously paid to the Grantee is subject to recovery pursuant to the Recoupment Policy or the Clawback Policy, the Company shall be permitted to recover such compensation through any means determined by the Company in its sole discretion, including through withholding by the Company or any of its Subsidiaries or Affiliates of the Grantee's salary, wages or any other cash or equity-based compensation payable to the Grantee by the Company or any of its Subsidiaries or Affiliates.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q)*Right of Offset*. Except with respect to Awards that are intended to be "deferred compensation" subject to Section 409A of the Code, the Company will have the right to offset against its obligation to deliver shares of Stock (or cash, other securities or other property) under the Plan or any Award Agreement any outstanding amounts (including, without limitation, travel and entertainment or advance account balances, loans, repayment obligations under any Awards, or amounts repayable to the Company or its Subsidiary or Affiliate pursuant to tax equalization, housing, automobile or other employee programs) that the Grantee then owes to the Company or its Subsidiary or Affiliate as determined by the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r)*No Third Party Beneficiaries*. Except as expressly provided therein, neither the Plan nor any Award Agreement will confer on any person other than the Company and the Grantee of any Award any rights or remedies thereunder. The exculpation and indemnification provisions of Section 3(e) will inure to the benefit of a Covered Person's estate and beneficiaries and legatees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s)*No Fractional Shares*. No fractional shares of Stock shall be issued or delivered pursuant to the Plan. The Committee shall determine whether cash, additional Awards or other securities or property shall be issued or paid in lieu of fractional shares of Common Stock or whether any fractional shares should be rounded, forfeited or otherwise eliminated.

**17. EFFECTIVE DATE OF PLAN**

The Plan will become effective on the date it is initially approved by the Company's stockholders (the "Effective Date").

**18. TERM OF PLAN**

No Award will be granted pursuant to the Plan on or after the tenth anniversary of the Effective Date (or, in the case of Incentive Stock Options, the tenth anniversary of the earlier of the Effective Date and Board approval of the Plan) or any earlier termination of the Plan as provided in Section 14, but Awards granted before the earlier of such dates may extend beyond that date.

**19. GOVERNING LAW**

The Plan and all determinations made and actions taken pursuant hereto will be governed by and construed in accordance with the laws of the State of Delaware without regard to principles of conflict of laws.

Regions Financial Corporation \| 2025 Long Term Incentive Plan A-18

## Exhibit 31.1

**EXHIBIT 31.1**

**CERTIFICATIONS**

I, John M. Turner, Jr., certify that:

1. &nbsp;&nbsp;&nbsp;&nbsp;I have reviewed this Quarterly Report on Form 10-Q of Regions Financial Corporation;

2. &nbsp;&nbsp;&nbsp;&nbsp;Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. &nbsp;&nbsp;&nbsp;&nbsp;Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. &nbsp;&nbsp;&nbsp;&nbsp;The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. &nbsp;&nbsp;&nbsp;&nbsp;The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: August 5, 2025

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| |
|:---|
| /S/&nbsp;&nbsp;&nbsp;&nbsp;JOHN M. TURNER, JR. |
| **John M. Turner, Jr.<br>Chairman, President and Chief Executive Officer** |

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## Exhibit 31.2

**EXHIBIT 31.2**

**CERTIFICATIONS**

I, David J. Turner, Jr., certify that:

1. &nbsp;&nbsp;&nbsp;&nbsp;I have reviewed this Quarterly Report on Form 10-Q of Regions Financial Corporation;

2. &nbsp;&nbsp;&nbsp;&nbsp;Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. &nbsp;&nbsp;&nbsp;&nbsp;Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. &nbsp;&nbsp;&nbsp;&nbsp;The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. &nbsp;&nbsp;&nbsp;&nbsp;The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: August 5, 2025

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| |
|:---|
| /S/&nbsp;&nbsp;&nbsp;&nbsp;DAVID J. TURNER, JR. |
| **David J. Turner, Jr.<br>Senior Executive Vice President and<br>Chief Financial Officer** |

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## Ex-32

**EXHIBIT 32**

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Regions Financial Corporation (the "Company") on Form 10-Q for the quarter ended June 30, 2025 (the "Report"), I, John M. Turner, Jr., Chief Executive Officer of the Company, and David J. Turner, Jr., Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that to our knowledge:

1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

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| | |
|:---|:---|
| /S/&nbsp;&nbsp;&nbsp;&nbsp;JOHN M. TURNER, JR. | /S/&nbsp;&nbsp;&nbsp;&nbsp;DAVID J. TURNER, JR. |
| **John M. Turner, Jr.<br>Chairman, President and Chief Executive Officer** | **David J. Turner, Jr.<br>Chief Financial Officer** |

---

Date: August 5, 2025

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signatures that appear in typed form within the electronic version of this written statement required by Section 906, has been provided to Regions Financial Corporation and will be retained by Regions Financial Corporation and furnished to the Securities and Exchange Commission or its staff upon request.

<br>