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Loans And The Allowance For Credit Losses

12 Months Ended

Dec. 31, 2024

Receivables [Abstract]

Loans And The Allowance For Credit Losses

NOTE 5. ALLOWANCE FOR CREDIT LOSSES

ALLOWANCE FOR CREDIT LOSSES

Regions determines the appropriate level of the allowance on a quarterly basis. Refer to Note 1 for a description of the methodology.

Reflected in the 2023 allowance is the impact of the sale of $284 million of consumer loans in a portfolio of third party relationship loans in the fourth quarter of 2023. In conjunction with the sale, the Company recognized a $35 million fair value mark recorded through charge-offs resulting in a net provision benefit of $27 million and a loss on sale of $8 million.

Reflected in the 2022 allowance is the impact of the sale of $1.2 billion of unsecured consumer loans at the end of the third quarter of 2022 with an associated allowance of $94 million. In conjunction with the sale, the Company recognized a $63 million fair value mark recorded through charge-offs resulting in a net provision benefit of $31 million.

ROLLFORWARD OF ALLOWANCE FOR CREDIT LOSSES

The following tables present analyses of the allowance for credit losses by portfolio segment for December 31, 2024, 2023, and 2022.

			2024
			Commercial						Investor Real Estate						Consumer						Total
			(In millions)
Allowance for loan losses, January 1, 2024			$	722					$	192					$	662					$	1,576
Provision for loan losses			222						87						186						495
Loan losses:
Charge-offs			(261)						(42)						(258)						(561)
Recoveries			60						3						40						103
Net loan losses			(201)						(39)						(218)						(458)
Allowance for loan losses, December 31, 2024			743						240						630						1,613
Reserve for unfunded credit commitments, January 1, 2024			92						13						19						124
Provision for (benefit from) unfunded credit losses			(1)						(6)						(1)						(8)
Reserve for unfunded credit commitments, December 31, 2024			91						7						18						116
Allowance for credit losses, December 31, 2024			$	834					$	247					$	648					$	1,729

			2023
			Commercial						Investor Real Estate						Consumer						Total
			(In millions)
Allowance for loan losses, December 31, 2022			$	665					$	121					$	678					$	1,464
Cumulative effect of accounting guidance (1)			(3)						(3)						(32)						(38)
Allowance for loan losses, January 1, 2023 (adjusted for change in accounting guidance)			$	662					$	118					$	646					$	1,426
Provision for loan losses			205						74						268						547
Loan losses:
Charge-offs			(197)						—						(293)						(490)
Recoveries			52						—						41						93
Net loan losses			(145)						—						(252)						(397)
Allowance for loan losses, December 31, 2023			722						192						662						1,576
Reserve for unfunded credit commitments, January 1, 2023			72						21						25						118
Provision for (benefit from) unfunded credit losses			20						(8)						(6)						6
Reserve for unfunded credit commitments, December 31, 2023			92						13						19						124
Allowance for credit losses, December 31, 2023			$	814					$	205					$	681					$	1,700

			2022
			Commercial						Investor Real Estate						Consumer						Total
			(In millions)
Allowance for loan losses, January 1, 2022			$	682					$	79					$	718					$	1,479
Provision for loan losses			40						45						163						248
Loan losses:
Charge-offs			(107)						(5)						(263)						(375)
Recoveries			50						2						60						112
Net loan losses			(57)						(3)						(203)						(263)
Allowance for loan losses, December 31, 2022			665						121						678						1,464
Reserve for unfunded credit commitments, January 1, 2022			58						8						29						95
Provision for (benefit from) unfunded credit losses			14						13						(4)						23
Reserve for unfunded credit commitments, December 31, 2022			72						21						25						118
Allowance for credit losses, December 31, 2022			$	737					$	142					$	703					$	1,582

_____

(1) See Note 1 for additional information.

PORTFOLIO SEGMENT RISK FACTORS

The following describe the risk characteristics relevant to each of the portfolio segments.

Commercial—The commercial portfolio segment includes commercial and industrial loans to commercial customers for use in normal business operations to finance working capital needs, equipment purchases or other expansion projects. Commercial also includes owner-occupied commercial real estate mortgage loans to operating businesses, which are loans for long-term financing on land and buildings, and are repaid by cash flow generated by business operations. Owner-occupied commercial real estate construction loans are made to commercial businesses for the development of land or construction of a building where the repayment is derived from revenues generated from the business of the borrower. Collection risk in this portfolio is driven by the creditworthiness of underlying borrowers, particularly cash flow from customers’ business operations, and is impacted by sensitivity to several other factors, such as market fluctuations in commodity prices.

Investor Real Estate—Loans for real estate development are repaid through cash flow related to the operation, sale or refinance of the property. This portfolio segment includes extensions of credit to real estate developers or investors where repayment is dependent on the sale of real estate or income generated from the real estate collateral. A portion of Regions’ investor real estate portfolio segment consists of loans secured by residential product types (land, single-family and condominium loans) within Regions’ markets. Additionally, this category includes loans made to finance income-producing properties such as apartment buildings, office and industrial buildings, and retail shopping centers. Loans in this portfolio segment are particularly sensitive to the valuation of real estate.

Consumer—The consumer portfolio segment includes residential first mortgage, home equity lines, home equity loans, consumer credit card, other consumer—exit portfolios and other consumer loans. Residential first mortgage loans represent loans to consumers to finance a residence. These loans are typically financed over a 15 to 30 year term and, in most cases, are extended to borrowers to finance their primary residence. Home equity lending includes both home equity loans and lines of credit. This type of lending, which is secured by a first or second mortgage on the borrower’s residence, allows customers to borrow against the equity in their home. Real estate market values as of the time the loan or line is secured directly affect the amount of credit extended and, in addition, changes in these values impact the depth of potential losses. Consumer credit card lending includes Regions branded consumer credit card accounts. Other consumer—exit portfolios includes lending initiatives through third parties consisting of loans made through automotive dealerships. Regions ceased originating new loans related to these businesses prior to 2020. Other consumer loans include other revolving consumer accounts, indirect and direct consumer loans, and overdrafts. Loans in this portfolio segment are sensitive to unemployment, inflation, and other key consumer economic measures.

CREDIT QUALITY INDICATORS

The commercial and investor real estate portfolio segments' primary credit quality indicator is internal risk ratings which are detailed by categories related to underlying credit quality and probability of default. Regions assigns these risk ratings at loan origination and reviews the relationship utilizing a risk-based approach on, at minimum, an annual basis or at any time management becomes aware of information affecting the borrowers' ability to fulfill their obligations. Both quantitative and qualitative factors are considered in this review process. These categories are utilized to develop the associated allowance for credit losses.

•Pass—includes obligations where the probability of default is considered low;

•Special Mention—includes obligations that have potential weakness that may, if not reversed or corrected, weaken the credit or inadequately protect the Company’s position at some future date. Obligations in this category may also be subject to economic or market conditions that may, in the future, have an adverse effect on debt service ability;

•Substandard Accrual—includes obligations that exhibit a well-defined weakness that presently jeopardizes debt repayment, even though they are currently performing. These obligations are characterized by the distinct possibility that the Company may incur a loss in the future if these weaknesses are not corrected;

•Non-accrual—includes obligations where management has determined that full payment of principal and interest is in doubt.

Substandard accrual and non-accrual loans are often collectively referred to as “classified.” Special mention, substandard accrual, and non-accrual loans are often collectively referred to as “criticized and classified.”

Regions' consumer portfolio segment has various classes that present unique credit risks. Regions considers factors such as periodic updates of FICO scores, accrual status, days past due status, unemployment rates, home prices, and geography as credit quality indicators for the consumer loan portfolio. FICO scores are obtained at origination as part of Regions' formal underwriting process. Refreshed FICO scores are obtained by the Company quarterly for all consumer loans, including residential first mortgage loans. Current FICO data is not available for certain loans in the portfolio for various reasons; for example, if customers do not use sufficient credit, an updated score may not be available. These categories are utilized to develop the associated allowance for credit losses. The higher the FICO score the less probability of default and vice versa.

The following tables present applicable credit quality indicators for the loan portfolio segments and classes, excluding loans held for sale as of December 31, 2024 and 2023 and gross charge-offs for the years ended December 31, 2024 and 2023, both by vintage year. Regions defines the vintage date for the purposes of disclosure as the date of the most recent credit decision. In general, renewals that are categorized as new credit decisions reflect the renewal date as the vintage date. Classes in the commercial and investor real estate portfolio segments are disclosed by risk rating. Classes in the consumer portfolio segment are disclosed by current FICO scores.

			December 31, 2024
			Term Loans																					Revolving Loans						Revolving Loans Converted to Amortizing						Other (1)						Total
			2024			2023			2022			2021			2020			Prior
			(In millions)
			Commercial and industrial:
Risk rating:
Pass			$	8,285		$	4,798		$	6,295		$	3,284		$	1,526		$	3,446					$	19,165					$	—					$	114					$	46,913
Special Mention			59			309			173			61			3			41						460						—						—						1,106
Substandard Accrual			81			179			255			79			32			84						534						—						—						1,244
Non-accrual			48			90			124			37			5			6						98						—						—						408
Total commercial and industrial			$	8,473		$	5,376		$	6,847		$	3,461		$	1,566		$	3,577					$	20,257					$	—					$	114					$	49,671
Commercial real estate mortgage—owner-occupied:
Risk rating:
Pass			$	794		$	695		$	796		$	785		$	522		$	808					$	87					$	—					$	(5)					$	4,482
Special Mention			5			21			57			33			9			57						2						—						—						184
Substandard Accrual			4			6			37			40			15			33						3						—						—						138
Non-accrual			2			2			5			14			4			9						1						—						—						37
Total commercial real estate mortgage—owner-occupied:			$	805		$	724		$	895		$	872		$	550		$	907					$	93					$	—					$	(5)					$	4,841
Commercial real estate construction—owner-occupied:
Risk rating:
Pass			$	131		$	54		$	38		$	30		$	20		$	37					$	7					$	—					$	—					$	317
Special Mention			—			6			1			—			—			—						—						—						—						7
Substandard Accrual			—			—			3			—			1			—						—						—						—						4
Non-accrual			—			—			—			—			1			4						—						—						—						5
Total commercial real estate construction—owner-occupied:			$	131		$	60		$	42		$	30		$	22		$	41					$	7					$	—					$	—					$	333
Total commercial			$	9,409		$	6,160		$	7,784		$	4,363		$	2,138		$	4,525					$	20,357					$	—					$	109					$	54,845
Commercial investor real estate mortgage:
Risk rating:
Pass			$	1,598		$	464		$	1,753		$	747		$	322		$	125					$	314					$	—					$	(2)					$	5,321
Special Mention			173			12			209			30			11			1						4						—						—						440
Substandard Accrual			76			—			131			39			28			2						107						—						—						383
Non-accrual			167			93			113			—			—			50						—						—						—						423
Total commercial investor real estate mortgage			$	2,014		$	569		$	2,206		$	816		$	361		$	178					$	425					$	—					$	(2)					$	6,567
Commercial investor real estate construction:
Risk rating:
Pass			$	300		$	380		$	443		$	—		$	—		$	2					$	694					$	—					$	(13)					$	1,806
Special Mention			—			32			218			—			—			—						76						—						—						326
Substandard Accrual			—			—			—			—			—			—						11						—						—						11
Non-accrual			—			—			—			—			—			—						—						—						—						—
Total commercial investor real estate construction			$	300		$	412		$	661		$	—		$	—		$	2					$	781					$	—					$	(13)					$	2,143
Total investor real estate			$	2,314		$	981		$	2,867		$	816		$	361		$	180					$	1,206					$	—					$	(15)					$	8,710

			December 31, 2024
			Term Loans																					Revolving Loans						Revolving Loans Converted to Amortizing						Other (1)						Total
			2024			2023			2022			2021			2020			Prior
			(In millions)
			Residential first mortgage:
FICO scores:
Above 720			$	1,111		$	1,967		$	2,742		$	4,055		$	4,004		$	2,730					$	—					$	—					$	—					$	16,609
681-720			107			185			253			289			222			305						—						—						—						1,361
620-680			56			87			141			136			99			283						—						—						—						802
Below 620			15			73			138			150			100			419						—						—						—						895
Data not available			29			31			16			41			46			90						2						—						172						427
Total residential first mortgage			$	1,318		$	2,343		$	3,290		$	4,671		$	4,471		$	3,827					$	2					$	—					$	172					$	20,094
Home equity lines:
FICO scores:
Above 720			$	—		$	—		$	—		$	—		$	—		$	—					$	2,341					$	48					$	—					$	2,389
681-720			—			—			—			—			—			—						339						12						—						351
620-680			—			—			—			—			—			—						176						11						—						187
Below 620			—			—			—			—			—			—						96						7						—						103
Data not available			—			—			—			—			—			—						81						5						34						120
Total home equity lines			$	—		$	—		$	—		$	—		$	—		$	—					$	3,033					$	83					$	34					$	3,150
Home equity loans:
FICO scores:
Above 720			$	328		$	263		$	308		$	329		$	163		$	472					$	—					$	—					$	—					$	1,863
681-720			51			40			49			39			16			56						—						—						—						251
620-680			18			19			23			21			9			48						—						—						—						138
Below 620			3			7			14			13			5			37						—						—						—						79
Data not available			1			1			4			7			4			26						—						—						16						59
Total home equity loans			$	401		$	330		$	398		$	409		$	197		$	639					$	—					$	—					$	16					$	2,390
Consumer credit card:
FICO scores:
Above 720			$	—		$	—		$	—		$	—		$	—		$	—					$	847					$	—					$	—					$	847
681-720			—			—			—			—			—			—						270												—						270
620-680			—			—			—			—			—			—						224						—						—						224
Below 620			—			—			—			—			—			—						108						—						—						108
Data not available			—			—			—			—			—			—						18						—						(22)						(4)
Total consumer credit card			$	—		$	—		$	—		$	—		$	—		$	—					$	1,467					$	—					$	(22)					$	1,445
Other consumer—exit portfolios:
FICO scores:
Above 720			$	—		$	—		$	—		$	—		$	—		$	2					$	—					$	—					$	—					$	2
681-720			—			—			—			—			—			1						—						—						—						1
620-680			—			—			—			—			—			1						—						—						—						1
Below 620			—			—			—			—			—			1						—						—						—						1
Data not available			—			—			—			—			—			—						—						—						(1)						(1)
Total other consumer—exit portfolios			$	—		$	—		$	—		$	—		$	—		$	5					$	—					$	—		$	—		$	(1)					$	4
Other consumer(2):
FICO scores:
Above 720			$	898		$	1,016		$	1,337		$	417		$	232		$	211					$	117					$	—					$	—					$	4,228
681-720			160			191			275			97			49			39						62						—						—						873
620-680			82			111			191			64			31			24						50						—						—						553
Below 620			16			47			117			43			19			16						31						—						—						289
Data not available			71			4			10			6			5			155						2						—						(107)						146
Total other consumer			$	1,227		$	1,369		$	1,930		$	627		$	336		$	445					$	262					$	—					$	(107)					$	6,089
Total consumer loans			$	2,946		$	4,042		$	5,618		$	5,707		$	5,004		$	4,916					$	4,764					$	83					$	92					$	33,172
Total Loans			$	14,669		$	11,183		$	16,269		$	10,886		$	7,503		$	9,621					$	26,327					$	83					$	186					$	96,727

			December 31, 2023
			Term Loans																					Revolving Loans						Revolving Loans Converted to Amortizing						Other (1)						Total
			2023			2022			2021			2020			2019			Prior
			(In millions)
			Commercial and industrial:
Risk rating:
Pass			$	8,272		$	9,123		$	5,267		$	2,326		$	1,376		$	3,210					$	18,561					$	—					$	53					$	48,188
Special Mention			87			186			71			109			26			90						484						—						—						1,053
Substandard Accrual			141			212			74			38			7			3						678						—						—						1,153
Non-accrual			128			102			37			6			20			10						168						—						—						471
Total commercial and industrial			$	8,628		$	9,623		$	5,449		$	2,479		$	1,429		$	3,313					$	19,891					$	—					$	53					$	50,865
Commercial real estate mortgage—owner-occupied:
Risk rating:
Pass			$	799		$	954		$	988		$	658		$	343		$	801					$	76					$	—					$	(5)					$	4,614
Special Mention			21			13			33			20			7			13						14						—						—						121
Substandard Accrual			3			34			32			14			8			24						1						—						—						116
Non-accrual			4			3			10			8			3			8						—						—						—						36
Total commercial real estate mortgage—owner-occupied:			$	827		$	1,004		$	1,063		$	700		$	361		$	846					$	91					$	—					$	(5)					$	4,887
Commercial real estate construction—owner-occupied:
Risk rating:
Pass			$	89		$	53		$	44		$	24		$	11		$	38					$	3					$	—					$	—					$	262
Special Mention			—			7			—			—			—			1						—						—						—						8
Substandard Accrual			—			1			—			1			—			1						—						—						—						3
Non-accrual			2			—			—			2			—			4						—						—						—						8
Total commercial real estate construction—owner-occupied:			$	91		$	61		$	44		$	27		$	11		$	44					$	3					$	—					$	—					$	281
Total commercial			$	9,546		$	10,688		$	6,556		$	3,206		$	1,801		$	4,203					$	19,985					$	—					$	48					$	56,033
Commercial investor real estate mortgage:
Risk rating:
Pass			$	1,130		$	1,587		$	1,135		$	488		$	296		$	110					$	383					$	—					$	(4)					$	5,125
Special Mention			269			247			52			59			30			—						90						—						—						747
Substandard Accrual			134			197			—			67			67			3						32						—						—						500
Non-accrual			99			57			37			—			12			28						—						—						—						233
Total commercial investor real estate mortgage			$	1,632		$	2,088		$	1,224		$	614		$	405		$	141					$	505					$	—					$	(4)					$	6,605
Commercial investor real estate construction:
Risk rating:
Pass			$	256		$	836		$	280		$	26		$	2		$	1					$	649					$	—					$	(15)					$	2,035
Special Mention			—			122			—			—			—			—						59						—						—						181
Substandard Accrual			—			25			—			—			—			—						4						—						—						29
Non-accrual			—			—			—			—			—			—						—						—						—						—
Total commercial investor real estate construction			$	256		$	983		$	280		$	26		$	2		$	1					$	712					$	—					$	(15)					$	2,245
Total investor real estate			$	1,888		$	3,071		$	1,504		$	640		$	407		$	142					$	1,217					$	—					$	(19)					$	8,850
Residential first mortgage:
FICO scores:
Above 720			$	1,939		$	2,863		$	4,358		$	4,390		$	816		$	2,353					$	—					$	—					$	—					$	16,719
681-720			226			298			355			255			52			294						—						—						—						1,480
620-680			86			153			153			112			43			270						—						—						—						817
Below 620			21			90			122			87			53			389						—						—						—						762
Data not available			33			16			49			46			11			92						1						—						181						429
Total residential first mortgage			$	2,305		$	3,420		$	5,037		$	4,890		$	975		$	3,398					$	1					$	—					$	181					$	20,207

			December 31, 2023
			Term Loans																					Revolving Loans						Revolving Loans Converted to Amortizing						Other (1)						Total
			2023			2022			2021			2020			2019			Prior
			(In millions)
			Home equity lines:
FICO scores:
Above 720			$	—		$	—		$	—		$	—		$	—		$	—					$	2,399					$	45					$	—					$	2,444
681-720			—			—			—			—			—			—						346						11						—						357
620-680			—			—			—			—			—			—						184						9						—						193
Below 620			—			—			—			—			—			—						97						7						—						104
Data not available			—			—			—			—			—			—						85						5						33						123
Total home equity lines			$	—		$	—		$	—		$	—		$	—		$	—					$	3,111					$	77					$	33					$	3,221
Home equity loans:
FICO scores:
Above 720			$	322		$	370		$	397		$	205		$	93		$	529					$	—					$	—					$	—					$	1,916
681-720			53			62			49			22			14			60						—						—						—						260
620-680			19			27			23			8			8			52						—						—						—						137
Below 620			2			8			12			5			7			35						—						—						—						69
Data not available			1			4			5			3			3			25						—						—						16						57
Total home equity loans			$	397		$	471		$	486		$	243		$	125		$	701					$	—					$	—					$	16					$	2,439
Consumer credit card:
FICO scores:
Above 720			$	—		$	—		$	—		$	—		$	—		$	—					$	780					$	—					$	—					$	780
681-720			—			—			—			—			—			—						254						—						—						254
620-680			—			—			—			—			—			—						210						—						—						210
Below 620			—			—			—			—			—			—						95						—						—						95
Data not available			—			—			—			—			—			—						20						—						(18)						2
Total consumer credit card			$	—		$	—		$	—		$	—		$	—		$	—					$	1,359					$	—					$	(18)					$	1,341
Other consumer—exit portfolios:
FICO scores:
Above 720			$	—		$	—		$	—		$	—		$	2		$	22					$	—					$	—					$	—					$	24
681-720			—			—			—			—			1			4						—						—						—						5
620-680			—			—			—			—			—			5						—						—						—						5
Below 620			—			—			—			—			1			7						—						—						—						8
Data not available			—			—			—			—			—			1						—						—						—						1
Total other consumer—exit portfolios			$	—		$	—		$	—		$	—		$	4		$	39					$	—					$	—					$	—					$	43
Other consumer(2):
FICO scores:
Above 720			$	1,312		$	1,519		$	501		$	284		$	155		$	118					$	119					$	—					$	—					$	4,008
681-720			270			409			136			74			34			29						67						—						—						1,019
620-680			178			294			103			50			21			20						53						—						—						719
Below 620			52			147			65			31			14			13						30						—						—						352
Data not available			94			10			7			5			114			65						1						—						(149)						147
Total other consumer			$	1,906		$	2,379		$	812		$	444		$	338		$	245					$	270					$	—					$	(149)					$	6,245
Total consumer loans			$	4,608		$	6,270		$	6,335		$	5,577		$	1,442		$	4,383					$	4,741					$	77					$	63					$	33,496
Total Loans			$	16,042		$	20,029		$	14,395		$	9,423		$	3,650		$	8,728					$	25,943					$	77					$	92					$	98,379

________

(1)Other consists of amounts that are not accounted for at the loan level.

(2)Other consumer class includes overdrafts which are included in the current vintage year.

The following tables present gross charge-offs by vintage year for the years ended December 31, 2024 and 2023.

			2024
			Term Loans																					Revolving Loans						Total
			2024			2023			2022			2021			2020			Prior
			(In millions)
Commercial and industrial			$	12		$	59		$	82		$	15		$	8		$	11					$	70					$	257
Commercial real estate mortgage—owner-occupied			—			—			—			3			—			1						—						4
Total commercial			12			59			82			18			8			12						70						261
Commercial investor real estate mortgage			25			—			6			5			—			6						—						42
Total investor real estate			25			—			6			5			—			6						—						42
Residential first mortgage			—			—			—			—			—			2						—						2
Home equity lines			—			—			—			—			—			—						3						3
Consumer credit card			—			—			—			—			—			—						63						63
Other consumer—exit portfolios			—			—			—			—			—			1						—						1
Other consumer(1)			42			39			57			19			9			13						10						189
Total consumer			42			39			57			19			9			16						76						258
Total gross charge-offs			$	79		$	98		$	145		$	42		$	17		$	34					$	146					$	561

			2023
			Term Loans																					Revolving Loans						Total
			2023			2022			2021			2020			2019			Prior
			(In millions)
Commercial and industrial			$	12		$	57		$	55		$	28		$	15		$	16					$	12					$	195
Commercial real estate mortgage—owner-occupied			1			—			—			—			—			1						—						2
Total commercial			13			57			55			28			15			17						12						197
Residential first mortgage			—			—			—			—			—			1						—						1
Home equity lines			—			—			—			—			—			—						3						3
Home equity loans			—			—			—			—			—			1						—						1
Consumer credit card			—			—			—			—			—			—						52						52
Other consumer—exit portfolios			—			—			—			—			19			31						—						50
Other consumer(1)			59			57			32			17			9			12						—						186
Total consumer			59			57			32			17			28			45						55						293
Total gross charge-offs			$	72		$	114		$	87		$	45		$	43		$	62					$	67					$	490

______

(1)Other consumer class includes overdraft gross charge-offs. The majority of overdraft gross charge-offs for the years ended December 31, 2024 and 2023 are included in the current vintage year.

AGING AND NON-ACCRUAL ANALYSIS

The following tables include an aging analysis of DPD and loans on non-accrual status for each portfolio segment and class as of December 31, 2024 and 2023. Loans on non-accrual status with no related allowance totaled $119 million and $280 million and were comprised of commercial and investor real estate loans at December 31, 2024 and 2023, respectively. Non–accrual loans with no related allowance typically include loans where the underlying collateral is deemed sufficient to recover all remaining principal. Loans that have been fully charged-off do not appear in the tables below.

			2024
			Accrual Loans
			30-59 DPD						60-89 DPD						90+ DPD						Total 30+ DPD						Total Accrual						Non-accrual						Total
			(In millions)
Commercial and industrial			$	51					$	18					$	7					$	76					$	49,263					$	408					$	49,671
Commercial real estate mortgage—owner-occupied			4						1						1						6						4,804						37						4,841
Commercial real estate construction—owner-occupied			—						—						—						—						328						5						333
Total commercial			55						19						8						82						54,395						450						54,845
Commercial investor real estate mortgage			—						—						—						—						6,144						423						6,567
Commercial investor real estate construction			—						—						—						—						2,143						—						2,143
Total investor real estate			—						—						—						—						8,287						423						8,710
Residential first mortgage			139						78						143						360						20,071						23						20,094
Home equity lines			15						9						16						40						3,124						26						3,150
Home equity loans			11						6						7						24						2,384						6						2,390
Consumer credit card			11						9						20						40						1,445						—						1,445
Other consumer—exit portfolios			1						—						—						1						4						—						4
Other consumer			50						26						27						103						6,089						—						6,089
Total consumer			227						128						213						568						33,117						55						33,172
			$	282					$	147					$	221					$	650					$	95,799					$	928					$	96,727

			2023
			Accrual Loans
			30-59 DPD						60-89 DPD						90+ DPD						Total 30+ DPD						Total Accrual						Non-accrual						Total
			(In millions)
Commercial and industrial			$	43					$	21					$	11					$	75					$	50,394					$	471					$	50,865
Commercial real estate mortgage—owner-occupied			3						2						—						5						4,851						36						4,887
Commercial real estate construction—owner-occupied			—						1						—						1						273						8						281
Total commercial			46						24						11						81						55,518						515						56,033
Commercial investor real estate mortgage			—						—						23						23						6,372						233						6,605
Commercial investor real estate construction			—						—						—						—						2,245						—						2,245
Total investor real estate			—						—						23						23						8,617						233						8,850
Residential first mortgage			104						48						95						247						20,185						22						20,207
Home equity lines			17						10						20						47						3,192						29						3,221
Home equity loans			10						4						7						21						2,433						6						2,439
Consumer credit card			11						8						20						39						1,341						—						1,341
Other consumer—exit portfolios			2						1						—						3						43						—						43
Other consumer			60						31						29						120						6,245						—						6,245
Total consumer			204						102						171						477						33,439						57						33,496
			$	250					$	126					$	205					$	581					$	97,574					$	805					$	98,379

At December 31, 2024 and 2023, the Company had collateral-dependent commercial loans of $264 million and $220 million, respectively. At December 31, 2024 and 2023, the Company had collateral-dependent investor real estate loans of $323 million and $92 million, respectively. The collateral for commercial and investor real estate loans generally consists of all business assets including real estate, receivables and equipment. At December 31, 2024 and 2023, the Company had collateral-dependent residential mortgage and home equity loans and lines totaling $115 million and $93 million, respectively. The collateral for these loans are secured by residential real estate. Refer to Note 1 for additional details for the criteria of collateral dependent loans.

MODIFICATIONS TO BORROWERS EXPERIENCING FINANCIAL DIFFICULTY

The majority of Regions' commercial and investor real estate modifications to troubled borrowers are the result of renewals of classified loans wherein there has been an interest rate reduction and/or maturity extension (that is considered other than insignificant). Similarly, Regions works to meet the individual needs of troubled consumer borrowers through its CAP. Regions designed the program to allow for customer-tailored modifications with the goal of keeping customers in their homes and avoiding foreclosure where possible. Modifications may be offered to any borrower experiencing financial hardship regardless of the borrower's payment status. Consumer modifications to troubled borrowers primarily involve an interest rate reduction and/or a payment deferral or maturity extension that is considered other than insignificant. All CAP modifications that involve an interest rate reduction, principal forgiveness, other than insignificant payment deferral or term extension and/or a combination of these are disclosed as modifications to troubled borrowers because the customer documents a financial hardship in order to participate. Refer to Note 1 for additional information regarding the Company's modifications to troubled borrowers.

For each portfolio segment and class, the following tables present the end of period balances of new modifications to troubled borrowers and the related percentage of the loan portfolio period-end balance by the type of modification in the years ended December 31, 2024 and 2023.

			2024
			Interest Rate Reduction									Term Extension															Payment Deferral															Term Extension and Interest Rate Reduction															Other									Total
			$			%(1)						$			%(1)															$			%(1)															$			%(1)															$			%(1)						$			%(1)
			(Dollars in millions)
Commercial and industrial			$	—		—		%				$	46		0.09		%													$	—		—		%													$	1		—		%													$	3		0.01		%				$	50		0.10		%
Commercial real estate mortgage—owner-occupied			—			—		%				3			0.05		%													—			—		%													—			—		%													—			—		%				3			0.05		%
Total commercial			—			—		%				49			0.09		%													—			—		%													1			—		%													3			0.01		%				53			0.10		%
Commercial investor real estate mortgage			34			0.52		%				111			1.69		%													—			—		%													—			—		%													27			0.42		%				172			2.62		%
Total investor real estate			34			0.39		%				111			1.28		%													—			—		%													—			—		%													27			0.31		%				172			1.98		%
Residential first mortgage			—			—		%				156			0.78		%													2			0.01		%													6			0.03		%													—			—		%				164			0.82		%
Home equity lines			—			—		%				1			0.02		%													—			—		%													9			0.29		%													—			—		%				10			0.30		%
Home equity loans			—			—		%				4			0.17		%													—			—		%													8			0.34		%													—			—		%				12			0.51		%
Total consumer			—			—		%				161			0.49		%													2			0.01		%													23			0.07		%													—			—		%				186			0.56		%
			$	34		0.04		%				$	321		0.33		%													$	2		—		%													$	24		0.02		%													$	30		0.03		%				$	411		0.43		%

									2023
									Term Extension															Payment Deferral															Term Extension and Interest Rate Reduction									Term Extension and Payment Deferral															Total
												$			%(1)															$			%(1)															$			%(1)						$			%(1)															$			%(1)
												(Dollars in millions)
Commercial and industrial												$	379		0.75		%													$	139		0.27		%													$	—		—		%				$	37		0.07		%													$	555		1.09		%
Commercial real estate mortgage—owner-occupied												3			0.05		%													—			—		%													—			—		%				—			—		%													3			0.06		%
Commercial real estate construction—owner-occupied												2			0.67		%													1			0.15		%													—			—		%				—			—		%													3			0.81		%
Total commercial												384			0.68		%													140			0.25		%													—			—		%				37			0.07		%													561			1.00		%
Commercial investor real estate mortgage												213			3.23		%													—			—		%													—			—		%				—			—		%													213			3.23		%
Total investor real estate												213			2.41		%													—			—		%													—			—		%				—			—		%													213			2.41		%
Residential first mortgage												94			0.46		%													2			0.01		%													3			0.02		%				—			—		%													99			0.49		%
Home equity lines												1			0.02		%													—			—		%													4			0.11		%				—			—		%													5			0.13		%
Home equity loans												4			0.17		%													—			—		%													5			0.18		%				—			—		%													9			0.35		%
Total consumer												99			0.29		%													2			0.01		%													12			0.03		%				—			—		%													113			0.34		%
Total												$	696		0.71		%													$	142		0.14		%													$	12		0.01		%				$	37		0.04		%													$	887		0.90		%

____

(1) Amounts calculated based upon whole dollar values.

The end of period balance of unfunded commitments related to modifications to troubled borrowers was $71 million and $106 million at December 31, 2024 and December 31, 2023, respectively.

The following tables present the financial impact of modifications to troubled borrowers during years ended December 31, 2024 and 2023 by portfolio segment, class of financing receivable, and the type of modification. The tables include new modifications to troubled borrowers, as well as renewals of existing modifications to troubled borrowers.

			2024
			Interest Rate Reduction						Term Extension						Payment Deferral						Term Extension and Interest Rate Reduction
			Weighted-Average Reduction in Interest Rate						Weighted-Average Term Extension						Weighted-Average Payment Deferral						Weighted-Average Term Extension						Weighted-Average Reduction in Interest Rate
									(In years, except for percentage data)
Commercial and industrial			—						1.92						—						2.08						1		%
Commercial real estate mortgage—owner-occupied			—						3.58						—						—						—
Commercial investor real estate mortgage			less than 1%						0.83						—						—						—
Residential first mortgage			—						7						0.67						5						less than 1%
Home equity lines			—						—						—						23						2		%
Home equity loans			—						14						—						24						3		%

			2023
			Term Extension						Payment Deferral						Term Extension and Interest Rate Reduction												Term Extension and Payment Deferral
			Weighted-Average Term Extension						Weighted-Average Payment Deferral						Weighted-Average Term Extension						Weighted-Average Reduction in Interest Rate						Weighted-Average Term Extension						Weighted-Average Payment Deferral
			(In years, except for percentage data)
Commercial and industrial			1						0.5						—						—						3						3
Commercial real estate mortgage—owner-occupied			1.5						—						—						—						—						—
Commercial real estate construction—owner-occupied			0.25						—						—						—
Commercial investor real estate mortgage			0.83						—						—						—						—						—
Residential first mortgage			6						0.83						7						1		%				—						—
Home equity lines			18						—						21						1		%				—						—
Home equity loans			14						—						17						2		%				—						—

In addition to the financial impacts in the table above, during the year ended December 31, 2024, the Company had a commercial investor real estate mortgage loan and a commercial and industrial loan modified from amortizing to an interest-

only structure. Also during the twelve months ended December 31, 2023, there were instances of commercial and industrial payment deferrals in which the amortization period was doubled to maturity.

The following tables include the end of period balances of aging and non-accrual performance for modifications to troubled borrowers modified in the previous twelve-month period by portfolio segment and class as of December 31, 2024 and 2023.

			2024
			Current						30-89 DPD						90+ DPD						Non-Performing Loans						Total
			(In millions)
Commercial and industrial			$	34					$	—					$	—					$	16					$	50
Commercial real estate mortgage—owner-occupied			2						—						—						1						3
Total commercial			36						—						—						17						53
Commercial investor real estate mortgage			66						—						—						106						172
Total investor real estate			66						—						—						106						172
Residential first mortgage			113						31						13						7						164
Home equity lines			9						—						—						1						10
Home equity loans			9						1						—						2						12
Total consumer			131						32						13						10						186
			$	233					$	32					$	13					$	133					$	411

			2023
			Current						30-89 DPD						90+ DPD						Non-Performing Loans						Total
			(In millions)
Commercial and industrial			$	355					$	—					$	5					$	195					$	555
Commercial real estate mortgage—owner-occupied			1						—						—						2						3
Commercial real estate construction—owner-occupied			—						—						—						3						3
Total commercial			356						—						5						200						561
Commercial investor real estate mortgage			151						—						—						62						213
Total investor real estate			151						—						—						62						213
Residential first mortgage			75						16						5						3						99
Home equity lines			5						—						—						—						5
Home equity loans			6						1						—						2						9
Total consumer			86						17						5						5						113
			$	593					$	17					$	10					$	267					$	887

For modifications to troubled borrowers, a subsequent payment default is defined in terms of delinquency, when a principal or interest payment is 90 days past due or classified as non-accrual status during the reporting period. Subsequent defaults of the loans restructured as a modification to a troubled borrower during the years ended December 31, 2024 and 2023 totaled $257 million and $116 million, respectively.

X

- Definition

The entire disclosure for allowance for credit losses.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 310
-Publisher FASB
-URI https://asc.fasb.org/310/tableOfContent

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