RF · 8-K · 20260807PR000057

Interest Rate Environment

REGIONS FINANCIAL CORP · 2026-08-07 · Importance 68 · Surprise 68

Regions expects full-year 2026 net interest income (NII) to grow 2.5%–4%, with fixed-rate asset turnover, funding-cost management and loan growth as the primary drivers. Management assumes a mostly stable yield curve, with 10-year Treasury rates between 4.00% and 4.75%, low-single-digit growth in average loans and deposits, and interest-bearing deposit beta in the mid-to-high 30% range. A 10-year Treasury rate 50 basis points above forward rates would add approximately $25 million to full-year NII, while a 50-basis-point decline would reduce NII by approximately $25 million. Third-quarter 2026 NII is expected to increase approximately 2% sequentially, with NIM stable to modestly higher and year-end NIM exiting at approximately 3.70%.