Regions Financial Corp. (RF)
NYSE:RF
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Regions Financial
(NYSE:RF)
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Rating:72Outperform
Price Target:
$31.00
▲(10.20% Upside)
Action:Reiterated
Date:05/12/26
RF scores well on fundamentals and the latest earnings outlook (solid profitability, reiterated 2026 targets, improving credit, and ongoing capital returns), supported by attractive valuation (low P/E and strong dividend). The main constraints are mixed technical momentum and financial offsets including margin compression versus prior-cycle peaks, some cash-flow softness, and continued sensitivity to spreads/credit workouts.
Positive Factors
Fee diversification and growth
Regions is building durable, fee-based revenue pillars—wealth, treasury and capital markets—that grew materially in the quarter and management guides adjusted noninterest income +3%–5% for 2026. Persistent fee expansion reduces reliance on interest margins and supports more stable long-term earnings regardless of short rate moves.
Negative Factors
NIM compression and spread pressure
Persistently compressed asset spreads and paydowns of higher‑yielding loans drove NIM below expectations. Given competitive dynamics and tighter spreads in IG C&I, margin pressure is a structural risk to net interest income for several quarters unless spread normalization or strong asset repricing occurs.
Read all positive and negative factors
Positive Factors
Negative Factors
Fee diversification and growth
Regions is building durable, fee-based revenue pillars—wealth, treasury and capital markets—that grew materially in the quarter and management guides adjusted noninterest income +3%–5% for 2026. Persistent fee expansion reduces reliance on interest margins and supports more stable long-term earnings regardless of short rate moves.
Read all positive factors
Regions Financial Key Performance Indicators (KPIs)
Regions Financial (RF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$23.02B
Dividend Yield3.74%
Average Volume (3M)10.39M
Price to Earnings (P/E)10.1
Beta (1Y)1.07
Revenue Growth2.53%
EPS Growth16.52%
CountryUS
Employees19,644
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)2.43
Shares Outstanding853,379,500
10 Day Avg. Volume12,065,877
30 Day Avg. Volume10,386,066
Financial Highlights & Ratios
PEG Ratio0.58
Price to Book (P/B)1.25
Price to Sales (P/S)2.47
P/FCF Ratio10.87
Enterprise Value/Market Cap1.15
Enterprise Value/Revenue2.74
Enterprise Value/Gross Profit3.62
Enterprise Value/Ebitda9.10
Forecast
1Y Price Target
$30.14Price Target Upside7.16% Upside
Rating ConsensusHold
Number of Analyst Covering14
EPS Forecast (FY)2.61
Revenue Forecast (FY)$7.84B
Regions Financial Business Overview & Revenue Model
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 B...
How the Company Makes Money
Regions primarily makes money through a mix of net interest income and noninterest (fee-based) income generated by its banking and related financial services operations. Net interest income is earned from the spread between (1) interest income on ...
Regions Financial Earnings Call Summary
Earnings Call Date:Apr 17, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 17, 2026
Earnings Call Sentiment Positive
The call presented a largely constructive picture: solid earnings and profitability, loan and deposit growth, improving credit metrics, disciplined expense management, continued capital returns and clear technology transformation progress. Headwinds included quarter-to-quarter NIM compression, a modest decline in noninterest income, a $40 million securities repositioning loss, and a small set of remaining workout credits. Management provided confident, reiterated guidance for NII and noninterest income ranges and outlined actions to support margin and growth, suggesting the positives materially outweigh the manageable negatives.Positive Updates
Strong GAAP Earnings and EPS Growth
Reported Q1 earnings of $539 million and $0.62 per share, representing an 11% increase in earnings and a 15% increase in EPS versus adjusted prior year results.
Negative Updates
Quarterly Margin Compression
Net interest margin came in below expectations at 3.67%, pressured by tighter asset spreads from market conditions, paydowns of higher-yielding loans and remixing into higher-quality credits.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong GAAP Earnings and EPS Growth
Reported Q1 earnings of $539 million and $0.62 per share, representing an 11% increase in earnings and a 15% increase in EPS versus adjusted prior year results.
Read all positive updates
Company Guidance
Regions reiterated full‑year 2026 targets: average loans and average deposits both up low single digits versus 2025; net interest income growth of 2.5%–4% for the year (with ~2% rebound expected in Q2) and net interest margin exiting the year in the low 3.70s; interest‑bearing deposit cost exited Q1 at 1.69% (down 13 bps in the quarter) with a following‑cycle beta ~35% (mid‑30s); ~$9 billion of fixed‑rate asset turnover available and the bank sold ~$900 million of short‑duration securities at a $40 million loss with an ~2‑year payback to extend duration; adjusted noninterest income guided to grow 3%–5% (capital markets $90–$105 million/quarter; wealth +9% YoY; treasury management +6% linked‑quarter); adjusted noninterest expense to rise 1.5%–3.5% with positive operating leverage; credit metrics: full‑year net charge‑offs 40–50 bps (Q1 annualized NCOs 54 bps), NPL ratio 71 bps, business‑services criticized 5.15%, allowance ratio 1.68% (coverage of NPLs 238%), and the allowance declined $39 million; capital and liquidity: CET1 estimated 10.7% at quarter end (including AOCI ~9.4%; pro forma fully implemented Basel III ~10.4%), share repurchases of $401 million and $227 million of common dividends executed, and management will target fully implemented CET1 around the midpoint of a 9.25%–9.75% operating range.Regions Financial Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
66
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 9.62B | 9.61B | 9.37B | 9.15B | 7.48B | 6.60B |
| Gross Profit | 7.29B | 7.17B | 6.60B | 7.02B | 6.89B | 6.96B |
| EBITDA | 2.90B | 2.81B | 2.50B | 2.84B | 3.23B | 3.59B |
| Net Income | 2.23B | 2.16B | 1.89B | 2.07B | 2.25B | 2.52B |
Balance Sheet | ||||||
| Total Assets | 160.74B | 159.55B | 157.30B | 152.19B | 155.22B | 162.94B |
| Cash, Cash Equivalents and Short-Term Investments | 3.44B | 38.47B | 34.16B | 34.91B | 39.16B | 57.89B |
| Total Debt | 6.34B | 4.88B | 6.49B | 2.33B | 2.28B | 2.41B |
| Total Liabilities | 141.90B | 140.45B | 139.39B | 134.70B | 139.27B | 144.61B |
| Stockholders Equity | 18.78B | 19.04B | 17.88B | 17.43B | 15.95B | 18.33B |
Cash Flow | ||||||
| Free Cash Flow | 1.96B | 2.18B | 1.45B | 2.15B | 2.81B | 2.96B |
| Operating Cash Flow | 1.98B | 2.18B | 1.60B | 2.31B | 3.10B | 3.03B |
| Investing Cash Flow | -3.76B | -1.42B | -262.00M | -1.61B | -12.94B | -2.87B |
| Financing Cash Flow | -1.39B | -568.00M | 2.58B | -5.13B | -8.35B | 11.29B |
Regions Financial Technical Analysis
Negative
28.13
Price Trends
26.94
Negative
27.67
Negative
26.48
Positive
Market Momentum
-0.19
Positive
43.47
Neutral
28.79
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RF, the sentiment is Negative. The current price of 28.13 is above the 20-day moving average (MA) of 27.65, above the 50-day MA of 26.94, and above the 200-day MA of 26.48, indicating a neutral trend. The MACD of -0.19 indicates Positive momentum. The RSI at 43.47 is Neutral, neither overbought nor oversold. The STOCH value of 28.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RF.
Regions Financial Risk Analysis
Regions Financial disclosed 50 risk factors in its most recent earnings report. Regions Financial reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Regions Financial Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $25.86B | 12.33 | 7.63% | 2.89% | -0.44% | 34.70% | |
72 Outperform | $23.02B | 10.08 | 11.78% | 3.74% | 2.53% | 16.52% | |
72 Outperform | $31.56B | 13.98 | 8.82% | 3.50% | 9.10% | 0.60% | |
69 Neutral | $22.84B | 10.41 | 9.74% | 3.90% | 20.39% | ― | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $43.45B | 58.08 | 8.86% | 3.14% | 7.12% | -5.41% | |
62 Neutral | $22.63B | 10.52 | 10.19% | 0.37% | -2.36% | -0.42% |
* Financial Sector Average
RF
Regions Financial
27.53
7.08
34.60%
FITB
Fifth Third Bancorp
48.86
12.57
34.65%
FCNCA
First Citizens BancShares
1,972.77
138.71
7.56%
HBAN
Huntington Bancshares
15.82
1.07
7.24%
KEY
KeyCorp
21.41
6.48
43.44%
CFG
Citizens Financial
62.83
24.43
63.63%
Regions Financial Corporate Events
Business Operations and StrategyFinancial Disclosures
Regions Financial outlines growth strategy to institutional investors
Positive
May 11, 2026
Regions Financial executives plan to brief institutional investors during May and June 2026 using updated presentation materials that highlight the bank’s diversified revenue strategy, disciplined expense management, and focus on risk-effici...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Regions Financial Shareholders Approve Major Governance Revisions
Positive
May 11, 2026
At its May 6, 2026 annual meeting, Regions Financial shareholders approved significant amendments to the company’s charter, including the removal of certain supermajority voting requirements, the elimination of specific business combination ...
Business Operations and StrategyFinancial Disclosures
Regions Financial posts strong first-quarter 2026 earnings growth
Positive
Apr 17, 2026
On April 17, 2026, Regions reported first-quarter 2026 net income available to common shareholders of $539 million and diluted EPS of $0.62, with total revenue up 5 percent year over year to $1.9 billion and pre-tax pre-provision income up 8 perce...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.