RF · 8-K · 20260807PR000057

Interest Rate Hedging Strategy

REGIONS FINANCIAL CORP · 2026-08-07 · Importance 40 · Surprise 42

Regions describes its current interest-rate risk position as mostly neutral to short-term Federal Reserve rate changes, supported by hedges and a 2.6-year asset duration versus 2.7-year liability duration. During the second quarter of 2026, the company added $1 billion of forward-starting 2029 three-year receive-fixed swaps, $1.25 billion of forward-starting September 2026 five-year receive-fixed swaps, and $0.9 billion each of forward-starting receive-fixed and pay-fixed swaps beginning in 2030. It also added $0.3 billion of spot-starting receive-fixed swaps maturing in December 2026 and $1 billion of forward-starting collars with a 3.30% floor and 4.75% cap. The tactical additions were intended to increase near-term protection because fewer or no Federal Reserve cuts were priced for 2026.

Key facts