Regions positioned to deliver sustainable performance supported by the strength of the bank’s capital plan and prudent risk management.

The Federal Reserve has communicated to Regions Financial Corp. (NYSE:RF) that the company exceeded all minimum capital levels under the Federal Reserve’s Supervisory Stress Test. Regions voluntarily participated in the 2021 test as an opportunity to both measure and demonstrate the strength of Regions’ balance sheet and capital base.

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Regions’ preliminary Stress Capital Buffer requirement for the fourth quarter of 2021 through the third quarter of 2022, as determined by the Federal Reserve, will be floored at 2.5%. Regions believes its sound approach to risk management, including the company’s proactive interest rate risk management program, continues to support long-term, sustainable performance through economic cycles.

“The resilience of our business plan, our solid capital position, and a diversified revenue stream help position Regions as a source of financial strength and stability for the people and businesses we serve,” said John Turner, President and CEO of Regions Financial Corp. “Participating in this year’s stress test provided a meaningful opportunity to demonstrate our prudent approach to risk management. The pandemic further underscored the importance of always managing capital effectively, while changes in customer behavior reflected the need to consistently innovate. As a result of improving our risk-adjusted returns, investing in growth opportunities, and focusing on sustainable performance, we are well positioned to deliver long-term value for our customers, communities, and shareholders.”

Regions maintains an ongoing and robust capital planning process designed to ensure the efficient use of capital while maintaining a long-term approach to capital allocation and distribution consistent with the bank’s strategic priorities. Regions is committed to managing the Common Equity Tier 1 capital ratio in a range over time, currently 9.25-9.75%.

Recently, Regions announced its latest growth opportunity through the agreement to acquire specialized home improvement lender EnerBank USA. The acquisition of the point-of-sale lender is expected to close in the fourth quarter of 2021, subject to regulatory approvals and satisfaction of customary closing conditions. The agreement to acquire EnerBank is consistent with the bank’s capital allocation process, which is enabling Regions to pursue continued innovation and growth opportunities in support of serving more clients.

Additionally, Regions’ Board of Directors will consider an increase in Regions’ quarterly common stock dividend, effective for the third quarter of 2021, at the Board’s regularly scheduled meeting in July 2021.

About Regions Financial Corporation

Regions Financial Corporation (NYSE:RF), with $153 billion in assets, is a member of the S&P 500 Index and is one of the nation’s largest full-service providers of consumer and commercial banking, wealth management, and mortgage products and services. Regions serves customers across the South, Midwest and Texas, and through its subsidiary, Regions Bank, operates more than 1,300 banking offices and 2,000 ATMs. Regions Bank is an Equal Housing Lender and Member FDIC. Additional information about Regions and its full line of products and services can be found at www.regions.com.

Forward-Looking Statements

This release may include forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, which reflect Regions’ current views with respect to future events and financial performance. The words “future,” “anticipates,” “assumes,” “intends,” “plans,” “seeks,” “believes,” “predicts,” “potential,” “objective,” “estimates,” “expects,” “targets,” “projects,” “outlook,” “forecast,” “would,” “will,” “may,” “might,” “could,” “should,” “can” and similar expressions often signify forward-looking statements. Forward-looking statements are not based on historical information, but rather are related to future operations, strategies, financial results or other developments. Forward-looking statements are based on management’s expectations as well as certain assumptions and estimates made by, and information available to, management at the time the statements are made. Those statements are based on general assumptions and are subject to various risks, uncertainties and other factors that may cause actual results to differ materially from the views, beliefs and projections expressed in such statements. If underlying assumptions prove to be inaccurate or unknown risks or uncertainties arise, actual results could vary materially from these projections or expectations. Factors that could cause Regions’ actual results to differ from those described in the forward-looking statements include, but are not limited to, those risks identified in Regions’ Annual Report on Form 10-K for the year ended December 31, 2020, and its subsequent filings with the Securities and Exchange Commission. Specifically, with respect to the pending acquisition of EnerBank USA, risks include the possibility that regulatory and other approvals and conditions to the proposed transaction are not received or satisfied on a timely basis or at all, or contain unanticipated terms and conditions; delays in closing the proposed transaction; expected synergies, cost savings and other financial or other benefits of the proposed transaction might not be realized within the expected timeframes or might be less than projected; difficulties in integrating the business; and inability of Regions to effectively cross-sell products to EnerBank’s customers. You should not place undue reliance on any forward-looking statements, which speak only as of the date made. Regions assumes no obligation to update or revise any forward-looking statements that are made from time to time.

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