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Regions Financial
(NYSE:RF)
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Rating:78Outperform
Price Target:
$37.00
▲(31.53% Upside)
Action:Reiterated
Date:07/17/26
RF scores well on solid financial performance (strong profitability and improving revenue, tempered by softer cash-flow momentum) and strong technical trend support (price above key moving averages with positive MACD). A reasonable valuation (mid-teens P/E with a ~3.3% yield) and a constructive earnings outlook for NII/NIM and capital returns further support the score, while near-term overbought signals and expense/deposit competition risks keep it below the top tier.
Positive Factors
Wealth & fee diversification
Regions' record wealth-management quarter and advisor-driven AUM gains (~$6B on a ~$60B base) create a durable, fee-oriented revenue stream. Growing wealth/fees reduces reliance on NII, smooths earnings across cycles, and supports client stickiness and cross-sell over the medium term.
Negative Factors
Rising leverage
Leverage has crept higher versus prior years, reducing balance-sheet flexibility. With debt-to-equity around 0.34, incremental leverage limits room for stress absorption and may constrain capital actions or require more conservative underwriting if credit conditions deteriorate over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Wealth & fee diversification
Regions' record wealth-management quarter and advisor-driven AUM gains (~$6B on a ~$60B base) create a durable, fee-oriented revenue stream. Growing wealth/fees reduces reliance on NII, smooths earnings across cycles, and supports client stickiness and cross-sell over the medium term.
Read all positive factors
Regions Financial Key Performance Indicators (KPIs)
Any
Income Before Taxes by Segment
Shows earnings from each segment before taxes, highlighting underlying operational performance without the impact of tax timing or rates. Comparing pre-tax results makes it easier to spot true momentum, recurring strength, or one-off gains and losses in each business line.
Shows earnings from each segment before taxes, highlighting underlying operational performance without the impact of tax timing or rates. Comparing pre-tax results makes it easier to spot true momentum, recurring strength, or one-off gains and losses in each business line.
Data provided by:
The Fly
The FlyRegions Financial (RF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$26.30B
Dividend Yield3.43%
Average Volume (3M)10.95M
Price to Earnings (P/E)12.4
Beta (1Y)1.07
Revenue Growth0.18%
EPS Growth14.72%
CountryUS
Employees19,969
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)2.43
Shares Outstanding853,379,500
10 Day Avg. Volume11,816,739
30 Day Avg. Volume10,952,734
Financial Highlights & Ratios
PEG Ratio0.62
Price to Book (P/B)1.25
Price to Sales (P/S)2.47
P/FCF Ratio11.02
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$32.04Price Target Upside13.88% Upside
Rating ConsensusHold
Number of Analyst Covering14
EPS Forecast (FY)2.63
Revenue Forecast (FY)$7.82B
Regions Financial Business Overview & Revenue Model
Company Description
Regions Financial Corporation (RF) operates as a financial holding company, delivering a comprehensive array of banking and related services to both individual consumers and corporate entities. The firm's operations are strategically divided into ...
How the Company Makes Money
Regions primarily makes money through (1) net interest income and (2) non-interest income. Net interest income is earned from the spread between interest income on earning assets (notably commercial loans, consumer loans, residential mortgages, an...
Regions Financial Earnings Call Summary
Earnings Call Date:Jul 17, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 16, 2026
Earnings Call Sentiment Positive
The call presents a broadly positive performance: solid adjusted earnings, improving asset quality, NIM expansion potential, record wealth and fee businesses, strategic technology and capability milestones, and strong stress-test outcomes and liquidity. Headwinds include modest deposit seasonality and competition, a sequential rise in operating expenses, some capital markets sensitivity to higher rates, a reduced allowance for credit losses, and localized multifamily softness. Overall, the company appears well-positioned financially and strategically, with manageable risks acknowledged and active capital deployment (dividend increase, targeted buybacks) while monitoring regulatory and market developments.Positive Updates
Solid Reported and Adjusted Earnings
Reported net income of $549 million ($0.64 EPS); adjusted earnings of $583 million ($0.68 EPS). Delivered adjusted pre-tax, pre-provision income of $831 million and an adjusted return on tangible common equity of 20%.
Negative Updates
Modest Deposit Pressures and Seasonality
Average deposits rose modestly but ending deposits declined approximately 1% (seasonal), and the franchise is experiencing ongoing competitive promotional activity in some markets; management notes shifts from CDs into money market accounts.
Read all updates
Q2-2026 Updates
Positive
Negative
Solid Reported and Adjusted Earnings
Reported net income of $549 million ($0.64 EPS); adjusted earnings of $583 million ($0.68 EPS). Delivered adjusted pre-tax, pre-provision income of $831 million and an adjusted return on tangible common equity of 20%.
Read all positive updates
Company Guidance
Regions guided to modest but constructive 2026 results: net interest income is expected to grow 2.5%–4% (Q3 NII ~+2%), with net interest margin exiting around 3.7% (Q2 NIM 3.66%) supported by ~$3B of fixed-rate asset turnover (75–100 bps pickup) and a ~7 bp hedge benefit; deposit costs were 1.69% (down 3 bps) with an interest-bearing deposit beta ~37% (mid-30s if rates move) and average deposits expected up low single digits, while average loans are expected to be up low single digits (Q2 average loans +2%, ending loans +1%, pipelines ~+15% y/y). They reiterated adjusted non‑interest income growth of 3%–5% (trending to the lower end) and quarterly capital markets revenue of $90–105M (lower end in Q3), with adjusted non‑interest expense up 1.5%–3.5% and full‑year positive operating leverage; asset‑quality guidance was for net charge‑offs 40–50 bps (Q2 annualized NCOs 42 bps), an ACL ratio of 1.63% (ACL down $34M), criticized ratio 5.01% and NPLs 0.67%. Capital guidance: CET1 ~10.7% (estimated), CET1 incl. AOCI ~9.5% (target operating range 9.25%–9.75%), $59M buybacks and $226M common dividends in Q2, a new quarterly dividend of $0.30 (+13%), and a stress‐test coverage ratio of 101.4% with the SCB at the 2.5% floor.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 | 2.92B | 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 | 1.95B | 2.15B | 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
Positive
28.13
Price Trends
29.00
Positive
27.89
Positive
27.06
Positive
Market Momentum
0.63
Positive
55.66
Neutral
35.22
Neutral
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 28.13 is below the 20-day moving average (MA) of 30.69, below the 50-day MA of 29.00, and above the 200-day MA of 27.06, indicating a bullish trend. The MACD of 0.63 indicates Positive momentum. The RSI at 55.66 is Neutral, neither overbought nor oversold. The STOCH value of 35.22 is Neutral, 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $26.30B | 12.41 | 11.79% | 3.74% | 0.18% | 14.72% | |
76 Outperform | $30.45B | 16.98 | 8.14% | 2.89% | 1.55% | 40.55% | |
74 Outperform | $36.83B | 13.75 | 8.82% | 3.50% | 9.10% | 0.60% | |
74 Outperform | $24.77B | 13.99 | 9.74% | 3.90% | 18.88% | ― | |
73 Outperform | $52.26B | 19.25 | 8.43% | 3.14% | 17.75% | -8.65% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
62 Neutral | $23.75B | 11.84 | 10.19% | 0.37% | -2.36% | -0.42% |
* Financial Sector Average
RF
Regions Financial
30.86
5.51
21.72%
FITB
Fifth Third Bancorp
57.67
16.33
39.51%
FCNCA
First Citizens BancShares
2,077.57
-71.65
-3.33%
HBAN
Huntington Bancshares
18.27
2.06
12.69%
KEY
KeyCorp
23.11
5.07
28.13%
CFG
Citizens Financial
72.44
24.12
49.93%
Regions Financial Corporate Events
Business Operations and StrategyFinancial Disclosures
Regions Financial posts stronger Q2 2026 earnings performance
Positive
Jul 17, 2026
On July 17, 2026, Regions Financial reported second-quarter 2026 net income available to common shareholders of $549 million, with diluted earnings per share of $0.64, and adjusted earnings of $583 million, or $0.68 per diluted share. Total revenu...
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.