Regions Bank cuts prime lending rate to 7.25 percent

BIRMINGHAM, Ala. - Regions Bank announced it will reduce its prime lending rate to 7.25% from 7.50%, a decrease of 0.25 percentage points. The new rate will take effect Thursday, September 18, 2025.

The prime rate is a benchmark used by banks to set interest rates on various consumer and commercial loan products, including credit cards, home equity lines of credit, and business loans.

Regions Financial Corporation (NYSE:RF), the parent company of Regions Bank, operates approximately 1,250 banking offices and nearly 2,000 ATMs across the South, Midwest and Texas. The financial institution has $159 billion in assets and is a member of the S&P 500 Index.

The bank’s decision to lower its prime lending rate comes amid broader changes in the interest rate environment. This adjustment could affect borrowing costs for the bank’s customers.

The announcement was made in a press release statement issued by the company.

In other recent news, Regions Financial has reported strong second-quarter results, with operating earnings per share of $0.60, surpassing consensus estimates by 7%. The company also achieved a return on tangible common equity of 19% and an efficiency ratio of 56% for the quarter. Following these results, Stephens raised its price target for Regions Financial to $29.00, maintaining an Overweight rating. DA Davidson also increased its price target to $29.00, citing improved sentiment and a better revenue forecast. The firm highlighted the company’s expectation of delivering 150 to 250 basis points of pre-provision operating leverage. Truist Securities adjusted its price target to $27.00, reflecting a 17.4% increase based on future earnings projections. Barclays, however, maintained its Underweight rating with a price target of $27.00, noting the strong economic conditions. DA Davidson reiterated a Buy rating, adding Regions Financial to its Best-of-Breed Bison product, which recognizes long-term best-in-class companies. These developments reflect a range of perspectives from various analysts on Regions Financial’s performance and outlook.

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