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Regions Financial Corp RF

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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Reserve Releases, Solid Fees Help Power Solid Second-Quarter Earnings for Regions

Eric Compton, CFA Senior Equity Analyst

Analyst Note

| Eric Compton, CFA |

No-moat Regions Financial reported solid second-quarter earnings, beating the FactSet consensus estimate of $0.53 per share with reported earnings of $0.77 per share. This equates to a return on tangible common equity of roughly 27%. The biggest swing factor was once again the firm's provisioning for credit losses. Similar to peers, despite our more positive adjustments after last quarter, the bank is outperforming our projections here. The bank recorded a net provisioning benefit of $337 million, more than double the benefit last quarter. We think the bank could still release more reserves going forward. Management also improved its full-year net charge-off guidance, as charge-offs increasingly appear that they will come in below normal as the credit environment remains very positive.

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Company Profile

Business Description

Regions Financial is a regional bank headquartered in Alabama, with branches primarily in the Southeastern and Midwestern United States. Regions primarily provides traditional commercial and retail banking and also offers mortgage services, asset management, wealth management, securities brokerage, insurance, and trust services.

Contact
1900 Fifth Avenue North, 25th Floor
Birmingham, AL, 35203
T +1 800 734-4667
Sector Financial Services
Industry Banks - Regional
Most Recent Earnings Mar 31, 2021
Fiscal Year End Dec 31, 2020
Stock Type Cyclical
Employees 18,926

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