Regions Financial reported first-quarter 2026 net income available to common shareholders of $539 million, up from $514 million in the fourth quarter of 2025 and $464 million in the first quarter of 2025. Diluted earnings per share rose to $0.62 from $0.58 in the prior quarter and $0.51 a year earlier.
Total revenue was $1.873 billion, up 5% from $1.784 billion a year ago but down 2.5% from $1.921 billion in the fourth quarter. Net interest income was $1.248 billion, compared with $1.281 billion in the prior quarter and $1.194 billion a year earlier. On a taxable-equivalent basis, net interest income was $1.261 billion, down $33 million from the fourth quarter and up $55 million year over year. Net interest margin was 3.67%, down 3 basis points from 3.70% in the prior quarter and up from 3.52% a year ago.
Non-interest income was $625 million, down from $640 million in the fourth quarter but up from $590 million in the first quarter of 2025. Within that total, capital markets income rose to $84 million from $80 million in both the prior quarter and a year ago. Wealth management income increased to $141 million from $143 million in the fourth quarter and $129 million a year earlier. Bank-owned life insurance income jumped to $30 million from $23 million in the prior quarter and a year earlier. Mortgage income held at $32 million, while card and ATM fees fell to $117 million from $123 million.
Non-interest expense declined to $1.068 billion from $1.098 billion in the fourth quarter, but increased from $1.039 billion a year earlier. Salaries and employee benefits were $659 million, down $3 million from the prior quarter and up $34 million year over year. Equipment and software expense was $108 million, versus $112 million in the fourth quarter and $99 million a year ago. The efficiency ratio improved to 56.6% from 56.8% in the prior quarter and 57.5% a year earlier.
Average loans rose to $96.423 billion from $95.651 billion in the fourth quarter and $96.122 billion a year ago. Ending loans increased to $97.926 billion from $95.637 billion in the prior quarter and $95.733 billion a year earlier. Average business lending balances climbed to $64.045 billion from $63.011 billion, led by commercial and industrial loans, which rose to $49.572 billion from $48.769 billion. Ending commercial and industrial loans increased to $50.824 billion from $48.790 billion.
Average deposits were $130.234 billion, up from $129.850 billion in the fourth quarter and $127.687 billion a year earlier. Ending deposits were $131.880 billion, compared with $131.128 billion in the prior quarter and $130.971 billion a year earlier. Average interest-bearing deposits increased to $91.074 billion from $90.391 billion, while average non-interest-bearing deposits declined to $39.160 billion from $39.459 billion.
Credit quality improved. The allowance for credit losses declined to $1.647 billion from $1.686 billion in the fourth quarter and $1.730 billion a year earlier. The allowance ratio fell to 1.68% from 1.76% and 1.81%. Net charge-offs were $130 million, down from $142 million in the fourth quarter and up slightly from $123 million a year earlier, with the annualized charge-off rate at 0.54%, down from 0.59% and up from 0.52%. Non-performing loans fell to 0.71% of total loans from 0.73% in the fourth quarter and 0.88% a year earlier. Business criticized loans declined to 5.15% of business loans from 5.31% and 7.82%.
Capital ratios remained solid. Common equity tier 1 was 10.7%, down from 10.9% in the prior quarter and 10.8% a year earlier. CET1 including AOCI was 9.4%, versus 9.7% in the fourth quarter and 9.1% a year ago. Book value per share rose to $20.39 from $20.36 in the prior quarter and $18.70 a year earlier. Tangible common book value per share increased to $13.69 from $13.75 in the fourth quarter and $12.29 a year earlier. Today the company's shares have moved -0.97% to a price of $25.51. For the full picture, make sure to review REGIONS FINANCIAL CORP's 8-K report.
