RF · 8-K · 20260807PR000057

Interest Rate Outlook

REGIONS FINANCIAL CORP · 2026-08-07 · Importance 42 · Surprise 24 · In source text

Regions expects a mostly stable yield curve in 2026, with long-term rates ranging from 4.0% to 4.75%. Management expects a neutral position to short-term market-rate movements to reduce the importance of near-term FOMC decisions on net interest income. Higher interest rates generally expand net interest margin and deposit value, but create unrealized losses in securities and cash-flow hedging portfolios that reduce the tangible common equity ratio.

Key facts

Impact estimates

metricdirectionstageexpectedbasis
marginunclearprobable3Q26 expectations assume mostly stable yield curve: 10-year 4-4.75%; Neutral position to short-term market rate movements