v3.26.1
Fair Value Measurements
 3 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements
NOTE 10. FAIR VALUE MEASUREMENTS
See Note 1 "Summary of Significant Accounting Policies" to the consolidated financial statements of the Annual Report on Form 10-K for the year ended December 31, 2025 for a description of valuation methodologies for assets and liabilities measured at fair value on a recurring and non-recurring basis. Assets and liabilities measured at fair value rarely transfer between Level 1 and Level 2 measurements. Debt securities available for sale may be periodically transferred to or from Level 3 valuation based on management’s conclusion regarding the observability of inputs used in valuing the securities. Such transfers are accounted for as if they occur at the beginning of a reporting period.
The following table presents assets and liabilities measured at estimated fair value on a recurring basis:
 March 31, 2026December 31, 2025
 Level 1Level 2
Level 3 (1)
Total
Estimated Fair Value		Level 1Level 2
Level 3 (1)
Total
Estimated Fair Value
 (In millions)
Recurring fair value measurements
Debt securities available for sale:
U.S. Treasury securities$2,345 $— $— $2,345 $2,276 $— $— $2,276 
Federal agency securities— 537 — 537 — 543 — 543 
Obligations of states and political subdivisions— 1 — 1 — 2 — 2 
Mortgage-backed securities:
Residential agency— 17,634 — 17,634 — 18,387 — 18,387 
Commercial agency— 6,340 — 6,340 — 5,829 — 5,829 
Commercial non-agency— 82 — 82 — 82 — 82 
Corporate and other debt securities— 478 2 480 — 439 2 441 
Total debt securities available for sale$2,345 $25,072 $2 $27,419 $2,276 $25,282 $2 $27,560 
Loans held for sale$— $336 $— $336 $— $290 $— $290 
Marketable equity securities in other earning assets$859 $— $— $859 $946 $— $— $946 
Residential mortgage servicing rights$— $— $954 $954 $— $— $970 $970 
Commercial mortgage servicing rights through non-DUS agency programs
$— $— $93 $93 $— $— $93 $93 
Derivative assets (2):
Interest rate swaps$— $1,082 $— $1,082 $— $1,126 $— $1,126 
Interest rate options— 15 5 20 — 10 6 16 
Interest rate futures and forward commitments— 11 — 11 — 8 — 8 
Other contracts2 455 — 457 1 184 — 185 
Total derivative assets$2 $1,563 $5 $1,570 $1 $1,328 $6 $1,335 
Derivative liabilities (2):
Interest rate swaps$— $1,316 $— $1,316 $— $1,265 $— $1,265 
Interest rate options— 13 — 13 — 7 — 7 
Interest rate futures and forward commitments— 3 — 3 — 1 — 1 
Other contracts1 436 — 437 — 172 — 172 
Total derivative liabilities$1 $1,768 $— $1,769 $— $1,445 $— $1,445 
Securities sold, but not yet purchased
$44 $— $— $44 $19 $— $— $19 
_________
(1)All following disclosures related to Level 3 recurring assets do not include those deemed to be immaterial.
(2)As permitted under U.S. GAAP, variation margin collateral payments made or received for derivatives that are centrally cleared are legally characterized as settled. As such, these derivative assets and derivative liabilities and the related variation margin collateral are presented on a net basis on the balance sheet.
Assets and liabilities in all levels could result in volatile and material price fluctuations. Realized and unrealized gains and losses on Level 3 assets represent only a portion of the risk to market fluctuations in Regions’ consolidated balance sheets. See Note 5 for analyses of activity related to the MSRs for three months ended March 31, 2026 and 2025.
RECURRING FAIR VALUE MEASUREMENTS USING SIGNIFICANT UNOBSERVABLE INPUTS
Residential mortgage servicing rights
The significant unobservable inputs used in the fair value measurement of residential MSRs are CPR and OAS. This valuation requires generating cash flow projections over multiple interest rate scenarios and discounting those cash flows at a risk-adjusted rate. Additionally, the impact of prepayments and changes in the OAS are based on a variety of underlying inputs including servicing costs. Increases or decreases to the underlying cash flow inputs will have a corresponding impact on the value of the MSR asset. The net change in unrealized gains (losses) included in earnings related to MSRs held at period end are disclosed as the changes in valuation inputs or assumptions included in the MSR rollforward table in Note 5 .
Commercial mortgage servicing rights through non-DUS agency programs
The significant unobservable inputs used in the fair value measurement of commercial MSRs are CPR and the discount rate. This valuation requires generating cash flow projections over multiple interest rate scenarios and discounting those cash flows at a risk-adjusted rate. Additionally, the impact of prepayments and changes in the discount rate are based on a variety of underlying inputs including servicing costs. Increases or decreases to the underlying cash flow inputs will have a corresponding impact on the value of the MSR asset. The net change in unrealized gains (losses) included in earnings related to MSRs held at period end is disclosed as the changes in valuation inputs or assumptions included in the MSR rollforward table in Note 5 .
The following tables present detailed information regarding material assets and liabilities measured at fair value using significant unobservable inputs (Level 3) as of March 31, 2026 and December 31, 2025. The tables include the valuation techniques and the significant unobservable inputs utilized. The range of each significant unobservable input as well as the weighted-average within the range utilized at March 31, 2026 and December 31, 2025 are included. Following the tables are descriptions of the valuation techniques and the sensitivity of the techniques to changes in the significant unobservable inputs.
 March 31, 2026
 Level 3
Estimated Fair Value		Valuation
Technique		Unobservable
Input(s)		Quantitative Range of
Unobservable Inputs and
(Weighted-Average)
 (Dollars in millions)
Recurring fair value measurements:
Residential MSR (1)
$954Discounted cash flowWeighted-average CPR (%)
4.3% - 15.3% (7.5%)
OAS (%)
4.7% - 8.0% (5.0%)
Commercial MSR through non-DUS agency programs (1)
$93Discounted cash flowWeighted-average CPR (%)
6.9% - 7.6% (7.6%)
Discount rate (%)
8.0% - 10.0% (8.2%)
_______
(1)See Note 5 for additional disclosures related to assumptions used in the fair value calculation for residential and commercial mortgage servicing rights.

 December 31, 2025
 Level 3
Estimated Fair Value		Valuation
Technique		Unobservable
Input(s)		Quantitative Range of
Unobservable Inputs and
(Weighted-Average)
 (Dollars in millions)
Recurring fair value measurements:
Residential MSR (1)
$970Discounted cash flowWeighted-average CPR (%)
4.2% - 16.9% (7.5%)
OAS (%)
4.7% -8.0% (5.0%)
Commercial MSR through non-DUS agency programs (1)
$93Discounted cash flowWeighted-average CPR (%)
6.5% - 7.6% (7.5%)
Discount rate (%)
8.0% -10.0% (8.2%)
_______
(1)See Note 6 to the consolidated financial statements of the Annual Report on Form 10-K for the year ended December 31, 2025 for additional disclosures related to assumptions used in the fair value calculation for residential and commercial mortgage servicing rights.
FAIR VALUE OPTION
Regions has elected the fair value option for all eligible agency residential first mortgage loans originated with the intent to sell. This election allows for a more effective offset of the changes in fair values of the loans and the derivative instruments used to economically hedge them without the burden of complying with the requirements for hedge accounting. Fair values of residential first mortgage loans held for sale are based on traded market prices of similar assets where available and/or discounted cash flows at market interest rates, adjusted for securitization activities that include servicing values and market conditions, and are recorded in loans held for sale. At March 31, 2026, the aggregate fair value of these loans totaled $328 million compared to aggregate unpaid principal of $325 million. At December 31, 2025, the aggregate fair value of these loans totaled $266 million compared to aggregate unpaid principal of $259 million.
Interest income on residential first mortgage loans held for sale is recognized based on contractual rates and is reflected in interest income on loans held for sale. Net gains and losses resulting from changes in fair value of residential mortgage loans held for sale, which were recorded in mortgage income in the consolidated statements of income during the three months ended March 31, 2026 and 2025, were immaterial. These changes in fair value are mostly offset by economic hedging activities. An immaterial portion of these amounts was attributable to changes in instrument-specific credit risk.
NON-RECURRING FAIR VALUE MEASUREMENTS
Items measured at fair value on a non-recurring basis include loans held for sale for which the fair value option has not been elected, foreclosed property and other real estate and equity investments without a readily determinable fair value; all of which may be considered either Level 2 or Level 3 valuation measurements. Non-recurring fair value adjustments related to loans held for sale, foreclosed property and other real estate are typically a result of the application of lower of cost or fair value
accounting during the period. Non-recurring fair value adjustments related to equity investments without readily determinable fair values are the result of impairments or price changes from observable transactions. The balances of each of these assets, as well as the related fair value adjustments during the periods, were immaterial at both March 31, 2026 and December 31, 2025.
FINANCIAL INSTRUMENTS NOT RECORDED AT FAIR VALUE
For financial instruments not recorded at fair value, estimates of fair value are based on relevant market data and information about the instruments. The following tables present the carrying amounts and estimated fair values, as well as the level within the fair value hierarchy, of the Company’s financial instruments not recorded at fair value as of March 31, 2026 and December 31, 2025.
 March 31, 2026December 31, 2025
 Carrying
Amount
Estimated
Fair
Value(1)
Level 1Level 2Level 3Carrying
Amount
Estimated
Fair
Value(1)
Level 1Level 2Level 3
 (In millions)(In millions)
Financial assets:
Cash and cash equivalents$11,143 $11,143 $11,143 $— $— $10,907 $10,907 $10,907 $— $— 
Debt securities held to maturity5,434 5,374 — 5,374 — 5,606 5,584 — 5,584 — 
Loans held for sale128 128 — 126 2 221 221 — 221 — 
Loans, net of unearned income and allowance for loan losses(2)(3)
96,399 94,184 — — 94,184 94,081 92,119 — — 92,119 
Other earning assets776 776 — 776 — 757 757 — 757 — 
Financial liabilities:
Deposits with no stated maturity(4)
118,772 118,772 — 118,772 — 117,240 117,240 — 117,240 — 
Time deposits(4)
13,108 13,089 — 13,089 — 13,888 13,874 — 13,874 — 
Short-term borrowings3,200 3,200 — 3,200 — 750 750 — 750 — 
Long-term borrowings3,137 3,242 — 3,241 1 4,134 4,309 — 4,308 1 
Loan commitments and letters of credit154 154 — — 154 164 164 — — 164 
_________
(1)Estimated fair values are consistent with an exit price concept. The assumptions used to estimate the fair values are intended to approximate those that a market participant would use in a hypothetical orderly transaction. In estimating fair value, the Company makes adjustments for estimated changes in interest rates, market liquidity and credit spreads in the periods they are deemed to have occurred.
(2)The estimated fair value of portfolio loans assumes sale of the loans to a third-party financial investor. Accordingly, the value to the Company if the loans were held to maturity is not reflected in the fair value estimate. The fair value discount on the loan portfolio's net carrying amount at March 31, 2026 was $2.2 billion or 2.3 percent. The fair value discount on the loan portfolio's net carrying amount at December 31, 2025 was $2.0 billion or 2.1 percent.
(3)At March 31, 2026, the carrying value and estimated fair value of loans include the sales-type, direct financing and leveraged leases. Prior period amounts were conformed accordingly.
(4)The fair value of non-interest-bearing deposit accounts, interest-bearing checking accounts, savings accounts, and money market accounts is the amount payable on demand at the reporting date (i.e., the carrying amount) as these instruments have an indeterminate maturity date. Fair values for time deposits are estimated by using discounted cash flow analyses, based on market spreads to benchmark rates.