Regions is involved in various entities that are considered to be VIEs, as defined by authoritative accounting literature. Generally, a VIE is a corporation, partnership, trust or other legal structure that either does not have equity investors with substantive voting rights or has equity investors that do not provide sufficient financial resources for the entity to support its activities. The following discusses the VIEs in which Regions has a significant interest.

Regions periodically invests in various limited partnerships that sponsor affordable housing projects and economic development projects, which then provide tax credits to Regions. These investments are funded through a combination of debt and equity. These partnerships meet the definition of a VIE and are collectively referred to as tax credit investments in the table below. Due to the nature of the management activities of the general partner, Regions is not the primary beneficiary of these partnerships. Refer to Note 1 for additional details. Additionally, Regions has loans or letters of credit commitments with certain limited partnerships. The funded portion of the loans and letters of credit are classified as commercial and industrial loans or investor real estate loans as applicable in Note 4 .

A summary of Regions’ tax credit investments and related loans and letters of credit, representing Regions’ maximum exposure to loss as of December 31 is as follows:


	2025		2024
	(In millions)
Tax credit investments included in other assets	$	1,608	$	1,471
Unfunded tax credit commitments included in other liabilities	567		590
Loans and letters of credit commitments	643		663
Funded portion of loans and letters of credit commitments	328		336



	2025		2024		2023
	(In millions)
Tax credits and other tax benefits recognized	$	229	$	236	$	207
Tax credit amortization expense included in income tax expense	193		188		166