RF · 8-K · 20260807PR000057

Home Improvement Financing Pressure

REGIONS FINANCIAL CORP · 2026-08-07 · Importance 17 · Surprise 24

Second-quarter Home Improvement Financing production remained challenged by competitive and economic pressures. Higher home-improvement project costs and financing costs are limiting growth, although Regions continues to apply risk-based pricing and pricing discipline. The portfolio remains focused on prime and super-prime borrowers, with an average FICO score of 759 and second-quarter net charge-offs of 1.34%. Regions is seeking growth through referrals across its organization and by adding high-quality independent contractors and program sponsors.

Key facts

• Home Improvement Financing (Ascentium & EnerBank) 2Q average balances: Ascentium $2.7B, Home Improvement Financing $4.7B source
• Q2 production is up almost 5% versus 1Q26 (Ascentium & Home Improvement Financing) source
• 2Q portfolio yield: Ascentium 8.4% and Home Improvement Financing 7.9% source
• 2Q going-on yield: Ascentium 8.7% and Home Improvement Financing 9.0% source