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1. Company Snapshot

1.a. Company Description

Regions Financial Corporation, a financial holding company, provides banking and bank-related services to individual and corporate customers.It operates through three segments: Corporate Bank, Consumer Bank, and Wealth Management.The Corporate Bank segment offers commercial banking services, such as commercial and industrial, commercial real estate, and investor real estate lending; equipment lease financing; deposit products; and securities underwriting and placement, loan syndication and placement, foreign exchange, derivatives, merger and acquisition, and other advisory services.


It serves corporate, middle market, and commercial real estate developers and investors.The Consumer Bank segment provides consumer banking products and services related to residential first mortgages, home equity lines and loans, consumer credit cards, and other consumer loans, as well as deposits.The Wealth Management segment offers credit related products, and retirement and savings solutions; and trust and investment management, asset management, and estate planning services to individuals, businesses, governmental institutions, and non-profit entities.


The company also provides investment and insurance products; low-income housing tax credit corporate fund syndication services; and other specialty financing services.As of March 01, 2022, it operated through a network of 1,300 banking offices and 2,000 automated teller machines across the South, Midwest, and Texas.Regions Financial Corporation was founded in 1971 and is headquartered in Birmingham, Alabama.

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1.b. Last Insights on RF

Regions Financial Corporation's recent performance was driven by several positive factors. The company's announcement of a $3 billion share repurchase plan, set to begin in 2026, is a significant development that will reduce the number of outstanding shares and boost shareholder value. Additionally, the company's strong deposit base, conservative loan-to-deposit ratio, and robust shareholder returns have contributed to its positive performance. Furthermore, Regions Financial's 2.8% year-over-year deposit growth and 0.73% non-performing loan ratio demonstrate its financial stability and resilience.

1.c. Company Highlights

2. Regions Financial Corporation Posts Strong Full-Year Earnings

Regions Financial Corporation reported strong full-year earnings of $2.1 billion, resulting in earnings per share of $2.33 on an adjusted basis, and a return on tangible common equity of over 18%. The company also reported solid fourth-quarter earnings of $514 million, resulting in earnings per share of $0.57 on an adjusted basis, slightly below estimates of $0.611. Net interest income grew by 2% linked quarter, and the net interest margin rebounded to 3.7%. Adjusted noninterest income increased 5% in 2025, driven by record fee income in wealth management and corporate bank businesses.

Publication Date: Jan -18

📋 Highlights
  • 2025 Full-Year Earnings: Generated $2.1 billion in earnings, translating to $2.33 adjusted EPS with >18% return on tangible common equity.
  • Fourth-Quarter Performance: Reported $514 million in earnings ($0.58 adjusted EPS) with net interest margin rebounding to 3.7%.
  • Capital Return: Returned $2 billion to shareholders via dividends and buybacks, maintaining a 10.8% common equity Tier 1 ratio.
  • 2026 Loan Growth Outlook: Projects low single-digit loan growth, with net interest income rising 2.5–4% and noninterest income growing 3–5%.

Loan Growth Expectations

Loan growth was challenged in 2025 due to large corporate customers taking advantage of financing opportunities in the capital markets and paying down debt, but the company expects loan growth to return to normal levels in 2026, with average loans expected to be up low single digits versus 2025. The company has $2.6 billion of loans that were refinanced through capital markets in 2025, mainly in investment-grade credits. The attraction for customers is lower cost of capital, better terms, and easier access to funding.

Capital Management and Shareholder Returns

Regions Financial Corporation returned $2 billion to shareholders through dividends and share buybacks and ended the quarter with an estimated common equity Tier 1 ratio of 10.8%. The company expects to manage common equity Tier 1 inclusive of AOCI around this level, providing flexibility to meet regulatory changes, support strategic growth, and continue increasing the dividend and repurchasing shares. The current dividend yield is 3.71%, which is an attractive return for income-seeking investors.

Valuation and Outlook

At the current price, the stock trades at a Price-to-Tangible Book Value (P/TBV) of approximately 1.28, which is slightly above the industry average. The Net Interest Margin (NIM) of 3.7% is a positive indicator of the company's ability to generate income from its lending activities. With expectations of low single-digit loan growth in 2026 and a continued focus on capital allocation and risk-adjusted returns, the company is well-positioned for future growth. Analysts estimate next year's revenue growth at 3.8%, which is a moderate growth rate.

3. NewsRoom

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Analyzing Regions Financial (NYSE:RF) and National Bank (NYSE:NBHC)

Feb -22

Source: defenseworld.net

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Financial Stocks Are Way Oversold: 5 Strong Buy High-Yield Dividend Ideas

Feb -20

Source: 247wallst.com

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Trump's Tariffs Will Cost You $1,300 This Year. Here's What That Means for Stocks.

Feb -18

Source: fool.com

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Barron's 100 Sustainable Dividend Dogs Fetch 1 Ideal February Buy Of 31 "Safer" Picks

Feb -17

Source: seekingalpha.com

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Regions Financial Corporation (RF) Presents at Bank of America Financial Services Conference 2026 Transcript

Feb -11

Source: seekingalpha.com

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Regions Bank Names Kafi Slaughter as Private Wealth Leader Serving Key Texas Markets

Feb -11

Source: businesswire.com

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Regions Financial Scheduled to Participate in RBC Global Financial Institutions Conference

Feb -11

Source: businesswire.com

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Financial Comparison: Catalyst Bancorp (NASDAQ:CLST) vs. Regions Financial (NYSE:RF)

Feb -06

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.67%)

6. Segments

Consumer Bank

Expected Growth: 3.5%

Regions Financial Corporation's Consumer Bank segment growth of 3.5% is driven by increasing consumer spending, low unemployment rates, and rising wages. Additionally, the bank's digital transformation efforts, expansion of its credit card offerings, and strategic partnerships have contributed to the growth. Furthermore, the bank's focus on customer experience and relationship-building has led to increased customer loyalty and retention.

Corporate Bank

Expected Growth: 3.8%

Regions Financial Corporation's Corporate Bank segment growth of 3.8% is driven by a strong commercial loan pipeline, increased treasury management services, and a growing interest in capital markets products. Additionally, the segment benefits from a favorable interest rate environment, a robust economy, and strategic investments in digital capabilities, resulting in improved customer acquisition and retention.

Wealth Management

Expected Growth: 4.2%

Regions Financial Corporation's Wealth Management segment growth of 4.2% is driven by increasing demand for investment and retirement services, strategic acquisitions, and expansion of advisory services. Additionally, the segment benefits from the company's strong brand reputation, diversified product offerings, and a growing affluent client base seeking comprehensive wealth management solutions.

Other

Expected Growth: 3.2%

Regions Financial Corporation's 3.2% growth is driven by strategic acquisitions, expansion of mortgage banking and insurance businesses, and a focus on digital transformation, resulting in increased revenue and efficiency gains. Additionally, a favorable interest rate environment and a strong balance sheet have contributed to the company's growth momentum.

7. Detailed Products

Consumer Banking

Regions offers a range of consumer banking products and services, including checking and savings accounts, credit cards, personal loans, and mortgages.

Commercial Banking

Regions provides commercial banking services to businesses, including cash management, treasury management, and lending solutions.

Wealth Management

Regions offers wealth management services, including investment management, trust services, and insurance solutions.

Mortgage Banking

Regions provides mortgage banking services, including mortgage lending and mortgage servicing.

Insurance

Regions offers insurance products, including life insurance, disability insurance, and long-term care insurance.

Treasury Management

Regions provides treasury management services, including cash management, foreign exchange, and trade finance.

Capital Markets

Regions offers capital markets services, including investment banking, equity and fixed income sales and trading, and research.

8. Regions Financial Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Regions Financial Corporation operates in a highly competitive industry, and customers have various alternatives to choose from. However, the company's strong brand reputation and wide range of financial services mitigate the threat of substitutes.

Bargaining Power Of Customers

Regions Financial Corporation's customers have significant bargaining power due to the availability of alternative financial institutions and online banking services. This forces the company to maintain competitive pricing and high-quality services.

Bargaining Power Of Suppliers

Regions Financial Corporation has a diverse supplier base, and no single supplier has significant bargaining power. The company's large scale of operations also gives it negotiating power over its suppliers.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the banking industry, including regulatory requirements and significant capital investments. Regions Financial Corporation's established brand and large customer base also make it difficult for new entrants to gain traction.

Intensity Of Rivalry

The banking industry is highly competitive, with many established players competing for market share. Regions Financial Corporation faces intense rivalry from other regional banks, national banks, and online banking services, which drives innovation and competitive pricing.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 12.20%
Debt Cost 10.05%
Equity Weight 87.80%
Equity Cost 10.05%
WACC 10.05%
Leverage 13.90%

11. Quality Control: Regions Financial Corporation passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Regions Financial

A-Score: 6.5/10

Value: 6.2

Growth: 4.8

Quality: 7.6

Yield: 8.0

Momentum: 5.0

Volatility: 7.7

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First Hawaiian

A-Score: 6.3/10

Value: 6.3

Growth: 4.3

Quality: 6.8

Yield: 8.0

Momentum: 4.0

Volatility: 8.3

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First Horizon

A-Score: 6.0/10

Value: 4.3

Growth: 4.7

Quality: 6.4

Yield: 7.0

Momentum: 7.0

Volatility: 6.7

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FNB

A-Score: 6.0/10

Value: 5.4

Growth: 5.3

Quality: 5.4

Yield: 7.0

Momentum: 5.0

Volatility: 7.7

1-Year Total Return ->

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Comerica

A-Score: 5.8/10

Value: 4.3

Growth: 4.6

Quality: 6.2

Yield: 7.0

Momentum: 7.0

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
Key

A-Score: 5.5/10

Value: 5.4

Growth: 2.7

Quality: 5.2

Yield: 8.0

Momentum: 5.0

Volatility: 7.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

30.06$

Current Price

30.06$

Potential

-0.00%

Expected Cash-Flows