Regions Bank lowered its prime lending rate from 7.25% to 7.00%, effective October 30, 2025.
The change follows a prior adjustment on September 18, 2025, when the bank lowered the rate to 7.25% from 7.50%. In the most recent quarter, the bank reported a net interest margin of 3.5%, loan growth of 5% year‑over‑year, and deposit growth of 4% year‑over‑year.
Regions CFO John Smith said the rate cut is intended to stimulate loan demand in high‑growth priority markets and to support the bank’s goal of expanding its deposit franchise. He added that the bank’s focus on low‑cost deposits and strong non‑interest income from wealth management and capital markets will help mitigate margin compression.
The rate cut comes as the Federal Reserve’s federal funds rate remains near 5.25%, and other banks such as PNC have also lowered their prime rates around the same time. In Q3 2025, Regions reported earnings per share of $1.20 versus analyst expectations of $1.10, and revenue of $3.5 billion versus $3.4 billion expected, driven in part by a rebound in dealmaking activity.
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