Regions Financial reports 14% rise in first quarter profit

REGIONS FINANCIAL CORP reported a 14% rise in first-quarter profit, as strong loan growth following interest rate cuts in the United States lifted interest income and provisions for bad loans fell. The Federal Reserve lowered interest rates by 75 basis points in the second half of 2025, boosting lending income across the sector in the first quarter of 2026. Bankers have indicated that loan pipelines remain robust as easing uncertainty regarding tariffs improves corporate credit appetite. The bank's quarterly net interest income, representing the difference between earnings on loans and interest paid on deposits, rose 4.5% from a year earlier to $1.25 billion. Provisions for credit losses fell to $91 million, compared with $124 million a year earlier, as the bank made progress in resolving loans within identified portfolios. > \"Growth in loans and deposits accelerated during the first quarter, credit metrics continued to improve and client sentiment remained generally optimistic across our footprint,\" said CEO John Turner. Consumer fundamentals remained sound, while labor market conditions showed no indications of material weakness. Strong performance in underwriting and wealth management also lifted profit, with non-interest income rising 6% to $625 million. Quarterly net income reached $559 million, or 62 cents per share, compared with $490 million, or 51 cents per share, in the prior year. Additionally, the bank reported an exposure of approximately $12.8 billion to non-depository financial institutions (NDFIs), a segment drawing focus due to potential risks in private credit. The bank noted that structural protections are in place for its private-credit exposure, which constitutes 14% of its NDFI portfolio.