RF · 8-K · 20260807PR000057

Commercial Credit Quality

REGIONS FINANCIAL CORP · 2026-08-07 · Importance 25 · Surprise 32

Corporate Banking non-performing loans were 0.91%, down 7 basis points from the first quarter, while second-quarter net charge-offs declined 15 basis points to 32 basis points. Core-business net charge-offs were 27 basis points compared with 159 basis points for Ascentium. Commercial real estate represented 17% of total loans, and office loans represented 0.9% of total loans. The company reported a 45.3% efficiency ratio while maintaining active portfolio and credit-risk management.

Key facts

• Office IRE balances $858M representing 0.9% of total loans; NPL $121M (NPL/Loans 14.1%); ACL $35M (ACL/Loans 4.1%); $512M (~60%) of total Office balances will mature in the next 12 months source
• Office IRE WA LTV 64% (origination or most recent); Stressed IRE WA LTV 85% using GreenStreet source
• NPLs of 0.91% decreased 7bps vs. 1Q26 (Corporate Banking) source