RF · 8-K · 20260807PR000057
Portfolio Credit Performance
REGIONS FINANCIAL CORP · 2026-08-07 · Importance 37 · Surprise 32 · In source text
Second-quarter annualized net charge-offs decreased 12 basis points to 42 basis points, while the non-performing-loan ratio declined 4 basis points to 67 basis points. Provision expense was $68 million, and the allowance for credit losses declined $34 million to $1.613 billion. The allowance ratio fell 5 basis points to 1.63%, while allowance coverage of non-performing loans remained 241%. Regions expects full-year 2026 net charge-offs of 40 to 50 basis points.
Key facts
- Loans to Private Credit ~$12.5B representing 12.6% of total loans (~70% investment grade) as of 6/30/2026 source
- Unsecured CRE (incl. REITs) outstanding $6.9B (7.0% of total loans) and IRE $10.0B (10.0% of total loans); Total CRE $16.9B (17.0% of total loans) as of 6/30/2026 source
- Highly diversified business portfolio outstanding balances as of 6/30/2026 total $67.2B source
- Consumer R/E secured balances comprise 78% of the Consumer portfolio while Consumer non-R/E balances comprise 22% source
- Home equity avg origination FICO 762, current LTV 39%, 56% of portfolio is 1st lien, avg loan size $36,067, $114M to convert to amortizing or balloon during 2026, 2Q26 QTD NCO (0.04%) source
- Q2 NCOs remain range bound and are 46bps lower than 1Q26 (Ascentium credit) source
- Consumer Residential first mortgage avg origination FICO 757, current LTV 53%, 99% owner occupied source
- Residential Mortgage avg origination FICO 781, avg new loan $10,689, 2Q26 Yield 7.89%, 2Q26 QTD NCO 1.34% source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| assets | positive | realized | — | Highly diversified business portfolio outstanding balances as of 6/30/2026 total $67.2B |
| assets | positive | probable | — | Home equity avg origination FICO 762, current LTV 39%, 56% of portfolio is 1st lien, avg loan size $36,067, $114M to convert to amortizing… |