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Regions Financial Corp. (RF)
NYSE:RF
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Regions Financial (RF) AI Stock Analysis

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RF

Regions Financial

(NYSE:RF)

Rating:77Outperform
Price Target:
$30.00
â–²(14.07%Upside)
Regions Financial is performing well primarily due to its robust financial growth and strong technical indicators. The company's strategic focus, as discussed in the earnings call, further supports its positive outlook. Valuation metrics are favorable, but caution is advised due to potential overbought technical signals.
Positive Factors
Capital Management
The bank's strong capital position and recent stock pullback might lead to better than expected buybacks, estimated at approximately $150 million per quarter in 2025.
Cloud Technology
The full conversion to a new cloud-based deposit system is expected to enable better segmentation, faster service, and tailored market offerings.
Financial Performance
Stock increased by 6% due to outperforming net interest margin and an upward revision of 2025 net interest income guidance.
Negative Factors
Loan Growth
Management expects FY25 loan growth to be relatively stable, slightly worse than prior guidance.
Net Interest Income
Regions Financial Corp has lowered FY25 net interest income guidance by 100 basis points.
Price Target
The target price for Regions Financial Corp. has been lowered to $28 from $30 due to a more conservative return on tangible common equity outlook.

Regions Financial (RF) vs. SPDR S&P 500 ETF (SPY)

Regions Financial Business Overview & Revenue Model

Company DescriptionRegions Financial Corporation (RF) is a prominent financial services company headquartered in Birmingham, Alabama. It operates primarily in the Southern and Midwestern United States, offering a comprehensive range of banking and financial services. The company's core products include retail and commercial banking, wealth management, and mortgage services. Regions Financial is known for its commitment to customer service and community engagement, providing a wide array of financial solutions to individuals, small businesses, and corporate clients.
How the Company Makes MoneyRegions Financial makes money primarily through its various banking operations. The company's revenue model is driven by interest income generated from loans and leases, which include commercial and industrial loans, residential mortgages, and consumer loans. Additionally, Regions earns non-interest income through service charges, wealth management fees, and mortgage banking activities. The company also benefits from strategic partnerships and investments that enhance its financial offerings and contribute to its earnings. Key revenue streams include net interest income from lending activities and fees from customer transactions and advisory services. Regions Financial's profitability is influenced by factors such as interest rate environments, economic conditions, and regulatory changes that affect banking operations.

Regions Financial Earnings Call Summary

Earnings Call Date:Jul 18, 2025
(Q2-2025)
|
% Change Since: 7.30%|
Next Earnings Date:Oct 17, 2025
Earnings Call Sentiment Positive
The earnings call for Regions Financial Corporation highlighted strong financial performance, with significant growth in deposits and fee revenue, robust returns on equity, and dividend increases. However, the bank faces challenges such as stable loan growth, increased noninterest expenses, and the ongoing management of nonperforming loans.
Q2-2025 Updates
Positive Updates
Strong Quarterly Earnings
Regions Financial Corporation reported strong quarterly earnings of $534 million, resulting in earnings per share of $0.59. On an adjusted basis, earnings were $538 million, or $0.60 per share.
Growth in Average Deposits
Average deposits grew across every one of the 8 priority markets, with more than 30% organic growth in total average deposits over the last 5 years.
Increased Fee Revenue
Treasury management revenue is up 8% year-to-date, with a 10% increase in the total number of clients served. Wealth management generated another quarter of record fee income.
Return on Tangible Common Equity
Regions delivered a return on tangible common equity of 19%.
Positive Asset Quality Metrics
Asset quality metrics are improving, with annualized net charge-offs as a percentage of average loans decreasing 5 basis points to 47 basis points.
Dividend Increase
Regions announced a 6% increase in the common dividend and has increased its dividend at a 10-plus percent compounded annual growth rate over the last 6 years.
Negative Updates
Stable Loan Growth
Average loans remained stable during the quarter, with only a 1% increase in ending loans. The bank expects full year 2025 average loans to be stable to up modestly versus 2024.
Nonperforming Loans
Nonperforming loans as a percent of total loans improved only 8 basis points to 80 basis points, indicating ongoing challenges in certain portfolios.
Increased Noninterest Expense
Adjusted noninterest expense increased 4% compared to the prior quarter, driven primarily by a 5% increase in salaries and benefits.
Company Guidance
During the quarterly earnings call, Regions Financial Corporation provided an optimistic outlook for the second quarter of fiscal year 2025. The company reported strong quarterly earnings of $534 million, which translates to $0.59 per share, while adjusted earnings were $538 million or $0.60 per share. Their pretax pre-provision income saw a 14% year-over-year increase, reaching $832 million, and they achieved a 19% return on tangible common equity. The call highlighted growth in consumer deposits across all priority markets and noted a 30% organic growth in total average deposits over the past five years. While average loans remained stable, ending loans grew in both consumer and corporate banking sectors. The company added over 300 new commercial relationships year-to-date, with pipelines in small and middle-market businesses showing continued growth. The focus on fee revenue growth was evident, with treasury management revenue up by 8% year-to-date and wealth management revenue growing at an 8% compounded annual growth rate since 2018. Capital markets revenue also increased by a 14% compounded annual growth rate since 2019. The company is modernizing its core technology platforms, planning to upgrade its commercial loan system to a cloud platform and roll out a new cloud-based deposit system by 2027. Regions Financial has consistently delivered top quartile EPS growth over the past 5 and 10 years, and they announced a 6% increase in the common dividend. The call concluded with confidence in maintaining positive momentum into the second half of the year and beyond.

Regions Financial Financial Statement Overview

Summary
Regions Financial exhibits strong revenue growth and effective cost management with a robust gross profit margin over 70%. The balance sheet is solid with a low debt-to-equity ratio, though increasing liabilities need monitoring. Cash flow is positive with a strong cash conversion ratio. Net profit margin pressures slightly affect overall profitability.
Income Statement
78
Positive
Regions Financial has demonstrated strong revenue growth, with a notable increase in total revenue from $6.898 billion in 2023 to $9.401 billion TTM (Trailing-Twelve-Months) in 2025. The gross profit margin remains robust, consistently exceeding 70%, indicating effective cost management. However, the net profit margin has slightly decreased over the periods, suggesting some pressure on bottom-line profitability. EBIT and EBITDA margins remain strong, reflecting healthy operational efficiency.
Balance Sheet
72
Positive
The balance sheet of Regions Financial shows a solid equity base with stockholders' equity increasing to $18.53 billion TTM. The debt-to-equity ratio remains low, indicating prudent financial leverage. However, the total liabilities have increased over the periods, which could pose a risk if not managed effectively. The equity ratio has remained stable, showcasing a balanced financial structure.
Cash Flow
75
Positive
The cash flow statement indicates a positive trajectory in operating cash flow, aligning well with net income trends. Free cash flow has also shown consistent growth, supporting the company's capacity for reinvestment and dividend payments. The operating cash flow to net income ratio is strong, suggesting efficient cash conversion from earnings.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue9.37B9.15B7.48B6.60B6.64B
Gross Profit6.60B7.02B6.89B6.96B4.95B
EBITDA2.50B2.84B3.23B3.59B1.74B
Net Income1.89B2.07B2.25B2.52B1.09B
Balance Sheet
Total Assets157.30B152.19B155.22B162.94B147.39B
Cash, Cash Equivalents and Short-Term Investments34.16B34.91B39.16B57.89B45.11B
Total Debt6.49B2.33B2.28B2.41B3.57B
Total Liabilities139.39B134.70B139.27B144.61B129.28B
Stockholders Equity17.88B17.43B15.95B18.33B18.11B
Cash Flow
Free Cash Flow1.45B2.15B2.81B2.96B2.27B
Operating Cash Flow1.60B2.31B3.10B3.03B2.32B
Investing Cash Flow-262.00M-1.61B-12.94B-2.87B-4.85B
Financing Cash Flow2.58B-5.13B-8.35B11.29B16.37B

Regions Financial Technical Analysis

Technical Analysis Sentiment
Positive
Last Price26.30
Price Trends
50DMA
23.00
Positive
100DMA
21.80
Positive
200DMA
22.85
Positive
Market Momentum
MACD
0.94
Negative
RSI
76.43
Negative
STOCH
91.95
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RF, the sentiment is Positive. The current price of 26.3 is above the 20-day moving average (MA) of 24.77, above the 50-day MA of 23.00, and above the 200-day MA of 22.85, indicating a bullish trend. The MACD of 0.94 indicates Negative momentum. The RSI at 76.43 is Negative, neither overbought nor oversold. The STOCH value of 91.95 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$28.53B13.2911.58%3.47%2.08%2.87%
77
Outperform
$23.70B12.3111.59%3.80%2.83%20.85%
77
Outperform
$21.63B15.216.48%3.41%-4.07%25.31%
77
Outperform
$24.66B12.5610.43%3.73%5.82%28.04%
76
Outperform
$31.59B12.759.48%3.45%0.62%14.75%
70
Outperform
$20.60B1,663.641.02%4.43%-12.21%-108.48%
68
Neutral
$17.10B11.449.70%3.58%11.11%-4.78%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
RF
Regions Financial
26.30
4.68
21.65%
FITB
Fifth Third Bancorp
42.69
2.33
5.77%
HBAN
Huntington Bancshares
16.64
2.17
15.00%
KEY
KeyCorp
18.50
3.13
20.36%
MTB
M&T Bank
193.67
25.04
14.85%
CFG
Citizens Financial
49.28
7.72
18.58%

Regions Financial Corporate Events

Financial Disclosures
Regions Financial Reports Strong Q2 2025 Earnings Growth
Positive
Jul 18, 2025

On July 18, 2025, Regions Financial Corp. reported its second quarter 2025 earnings, highlighting a net income of $534 million and adjusted earnings of $538 million, reflecting a 12% and 10% increase, respectively, compared to the same period in 2024. The company’s total revenue reached $1.9 billion, marking a 10% year-over-year growth, driven by solid deposit growth, disciplined loan production, and strong performance in fee-based businesses, positioning Regions for continued expansion and long-term shareholder value.

The most recent analyst rating on (RF) stock is a Hold with a $26.00 price target. To see the full list of analyst forecasts on Regions Financial stock, see the RF Stock Forecast page.

Regulatory Filings and Compliance
Regions Financial Redeems Series D Preferred Stock
Neutral
Jun 17, 2025

On June 17, 2025, Regions Financial Corporation filed a Certificate of Elimination to remove the Certificate of Designations for its Non-Cumulative Perpetual Preferred Stock, Series D, as all shares were redeemed by June 16, 2025. This action returns the previously authorized shares to an undesignated status, potentially impacting the company’s capital structure and shareholder composition.

The most recent analyst rating on (RF) stock is a Hold with a $21.00 price target. To see the full list of analyst forecasts on Regions Financial stock, see the RF Stock Forecast page.

Business Operations and Strategy
Regions Financial to Present Strategic Priorities to Investors
Positive
May 5, 2025

Regions Financial Corporation announced that its executives will present the company’s operations and performance to institutional investors during May and June 2025. The presentations will highlight Regions’ strategic priorities, including diversified revenue streams, disciplined expense management, and strong capital management. The company emphasizes its consistent outperformance in risk efficiency and profitability compared to peers, driven by strategic investments in talent, technology, and market expansion. These efforts are expected to enhance Regions’ market position and stakeholder value.

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.Date of analysis: Jul 19, 2025