RF · 8-K · 20260807PR000057

Basel III Endgame Requirements

REGIONS FINANCIAL CORP · 2026-08-07 · Importance 47 · Surprise 60 · No source text

In March 2026, the Federal Reserve released a notice of proposed rulemaking to implement Basel III Endgame, including accumulated other comprehensive income in regulatory capital. Regions estimates that its second-quarter CET1 ratio including AOCI was 9.5% and expects to manage near the midpoint of a 9.25% to 9.75% operating range. The proposed standardized-approach risk-weight changes are expected to reduce Regions’ risk-weighted assets by approximately 10%, increasing capital levels by about 100 basis points once fully implemented.

Key facts

• Federal Reserve NPR proposing SA changes could reduce RWA by ~10%, increasing capital levels by approx 100 bps once implemented source
• 2Q CET1 (inclusive of AOCI) was 9.5%; expect to manage around mid-point of 9.25 – 9.75% operating range in near-term source
• Simple average of 4 trailing quarters of risk-weighted assets as of 6/30/2026: $125,889 million. source
• Total IRE (incl unsecured CRE) to Risk Based Capital: 112% and Construction, Land, and Acq. & Dev. to Risk Based Capital: 17% (well below supervisory limits) source
• AOCI, after-tax as of 6/30/2026: $(1,922) million. source
• Common Equity Tier 1 (CET1) as of 6/30/2026: $13,692 million. source
• Total risk-weighted assets as of quarter ended 6/30/2026: $127,748 million. source
• Reported CET1 ratio trend and adjusted CET1 inclusive of AOCI estimated at 9.5% in 2Q26 source

Impact estimates