Regions Financial Corp. (RF)
NYSE:RF
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Regions Financial
(NYSE:RF)
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Rating:72Outperform
Price Target:
$28.00
â–²(5.78% Upside)
Action:ReiteratedDate:02/25/26
The score is driven primarily by solid financial performance (re-accelerating revenue growth, improving leverage, and solid profitability) and a constructive earnings outlook with detailed 2026 guidance and improving credit trends. Valuation is supportive with a modest P/E and a 3.62% dividend yield. Offsetting factors are weaker near-term technicals (price below short-term averages with soft momentum) and cash-flow volatility, which temper confidence in near-term durability.
Positive Factors
High returns on tangible equity
Sustained top-tier return on tangible common equity (~18%) indicates efficient capital deployment and strong operating profitability. Over a multi-quarter horizon this supports internal capital generation for dividends/buybacks and demonstrates the franchise can earn attractive risk-adjusted returns versus regional peers.
Negative Factors
Free cash flow volatility
Sharp year-to-year swings in free cash flow undermine predictability of shareholder returns and capital deployment. Volatility can constrain flexibility for buybacks or reinvestment during down cycles, forcing more conservative capital buffers or limiting steady increases in dividends over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
High returns on tangible equity
Sustained top-tier return on tangible common equity (~18%) indicates efficient capital deployment and strong operating profitability. Over a multi-quarter horizon this supports internal capital generation for dividends/buybacks and demonstrates the franchise can earn attractive risk-adjusted returns versus regional peers.
Read all positive factors
Regions Financial (RF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$22.86B
Dividend Yield3.74%
Average Volume (3M)15.43M
Price to Earnings (P/E)11.0
Beta (1Y)1.12
Revenue Growth4.00%
EPS Growth28.54%
CountryUS
Employees19,644
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.57
Shares Outstanding863,506,700
10 Day Avg. Volume16,282,455
30 Day Avg. Volume15,431,608
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 Cap0.74
Enterprise Value/Revenue1.75
Enterprise Value/Gross Profit2.35
Enterprise Value/Ebitda5.95
Forecast
1Y Price Target
$30.43Price Target Upside14.96% Upside
Rating ConsensusHold
Number of Analyst Covering17
EPS Forecast (FY)2.6
Revenue Forecast (FY)$7.88B
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:Jan 16, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 17, 2026
Earnings Call Sentiment Positive
The call portrayed a largely positive picture: strong full-year earnings, industry-leading returns on tangible common equity, record fee income in several businesses, progress on core modernization, and disciplined capital allocation including $2.0 billion returned to shareholders. Management acknowledged loan growth headwinds in 2025 driven by strategic runoff and capital markets refinancings, modest nonrecurring charges in Q4, elevated near-term tech spend for modernization, and some seasonal/quarterly weakness in capital markets and noninterest income. Credit metrics are improving (NPLs down, criticized loans down), though trailing charge-offs remain elevated. Guidance for 2026 shows cautious optimism with loan and deposit growth expected in the low single digits, NII growth guidance of 2.5%–4%, and continued positive operating leverage. Overall, the positives — solid earnings, strong returns, improving credit, and strategic investments that support long-term competitiveness — outweigh the contained near-term challenges.Positive Updates
Strong Full-Year and Quarterly Earnings
Reported FY2025 net earnings of $2.1 billion and adjusted EPS of $2.33; Q4 2025 earnings of $514 million with GAAP EPS $0.58 and adjusted EPS $0.57.
Negative Updates
Loan Growth Headwinds in 2025
Loan growth was constrained in 2025 due to strategic runoff of over $2 billion (primarily leveraged lending and portfolio exits) and corporate customers refinancing into capital markets; management guided to average loans up low single digits in 2026.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Full-Year and Quarterly Earnings
Reported FY2025 net earnings of $2.1 billion and adjusted EPS of $2.33; Q4 2025 earnings of $514 million with GAAP EPS $0.58 and adjusted EPS $0.57.
Read all positive updates
Company Guidance
Regions provided detailed 2026 guidance built on strong 2025 results (FY25 adjusted earnings $2.1B, adjusted EPS $2.33, Q4 earnings $514M, Q4 EPS $0.58/$0.57 adjusted, return on tangible common just over 18%); they expect 2026 average loans and average deposits to be up low single digits, net interest income growth of 2.5%–4.0% with a starting NIM in the mid‑360s (Q1 NIM ~3.7% and full‑year trending to the low–mid‑370s), net charge‑offs of 40–50 bps, adjusted noninterest income growth of 3%–5% (Capital Markets quarterly revenue $90M–$105M), adjusted noninterest expense up 1.5%–3.5% with full‑year adjusted positive operating leverage and technology spend expected to run 10%–12% of revenue, an allowance for credit losses of $1.76B (AL ratio 1.76%, allowance/NPLs 242%) that could normalize toward ~$1.64B, an estimated CET1 of 10.8% (9.6% inclusive of AOCI; target range ~9.25%–9.75% inclusive), an expected effective tax rate returning to 20.5%–21.5%, confidence in a mid‑30s interest‑bearing deposit beta after Q4’s 16 bp decline in deposit costs (36% linked‑quarter beta; 33% cycle beta), $3.5B of forward‑starting receive‑fixed swaps added, and continued capital returns (2025 returns $2B, Q4 buybacks $430M and dividends $231M).Regions Financial Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
61
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 9.61B | 9.37B | 9.15B | 7.48B | 6.60B |
| Gross Profit | 7.17B | 6.60B | 7.02B | 6.89B | 6.96B |
| EBITDA | 2.81B | 2.50B | 2.84B | 3.23B | 3.59B |
| Net Income | 2.16B | 1.89B | 2.07B | 2.25B | 2.52B |
Balance Sheet | |||||
| Total Assets | 159.55B | 157.30B | 152.19B | 155.22B | 162.94B |
| Cash, Cash Equivalents and Short-Term Investments | 38.47B | 34.16B | 34.91B | 39.16B | 57.89B |
| Total Debt | 4.88B | 6.49B | 2.33B | 2.28B | 2.41B |
| Total Liabilities | 140.45B | 139.39B | 134.70B | 139.27B | 144.61B |
| Stockholders Equity | 19.04B | 17.88B | 17.43B | 15.95B | 18.33B |
Cash Flow | |||||
| Free Cash Flow | 2.18B | 1.45B | 2.15B | 2.81B | 2.96B |
| Operating Cash Flow | 2.18B | 1.60B | 2.31B | 3.10B | 3.03B |
| Investing Cash Flow | -1.42B | -262.00M | -1.61B | -12.94B | -2.87B |
| Financing Cash Flow | -568.00M | 2.58B | -5.13B | -8.35B | 11.29B |
Regions Financial Technical Analysis
Neutral
26.47
Price Trends
27.63
Negative
27.01
Negative
25.85
Positive
Market Momentum
-0.46
Negative
50.95
Neutral
91.86
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RF, the sentiment is Neutral. The current price of 26.47 is above the 20-day moving average (MA) of 25.78, below the 50-day MA of 27.63, and above the 200-day MA of 25.85, indicating a neutral trend. The MACD of -0.46 indicates Negative momentum. The RSI at 50.95 is Neutral, neither overbought nor oversold. The STOCH value of 91.86 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | $22.86B | 11.00 | 11.45% | 3.74% | 4.00% | 28.54% | |
69 Neutral | $32.05B | 11.61 | 10.06% | 3.50% | 5.73% | 38.39% | |
69 Neutral | $25.92B | 11.93 | 7.16% | 2.89% | -3.93% | 40.62% | |
68 Neutral | $42.48B | 12.33 | 11.96% | 3.14% | 0.15% | 11.62% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
63 Neutral | $22.31B | 11.08 | 9.26% | 3.90% | 3.86% | 5473.29% | |
61 Neutral | $22.50B | 12.03 | 9.94% | 0.37% | -3.18% | -3.10% |
* Financial Sector Average
RF
Regions Financial
26.47
8.55
47.71%
FITB
Fifth Third Bancorp
47.11
14.22
43.24%
FCNCA
First Citizens BancShares
1,906.63
307.18
19.21%
HBAN
Huntington Bancshares
15.79
3.55
29.01%
KEY
KeyCorp
20.47
7.55
58.46%
CFG
Citizens Financial
60.99
27.38
81.46%
Regions Financial Corporate Events
Business Operations and Strategy
Regions Financial Highlights Growth Strategy in Investor Presentations
Positive
Feb 9, 2026
Regions Financial said executives will brief institutional investors in February and March 2026 using a detailed investor deck that underscores the bank’s strategy of driving diversified growth while maintaining tight risk controls and disci...
Business Operations and StrategyRegulatory Filings and Compliance
Regions Financial Expands Stockholder Rights With Bylaw Changes
Positive
Feb 4, 2026
On February 4, 2026, Regions Financial Corporation’s board of directors approved amendments to the company’s Amended and Restated By-Laws that expand stockholder rights and update governance provisions. The revisions allow one or more ...
Business Operations and StrategyFinancial Disclosures
Regions Financial Reports Strong Fourth-Quarter and 2025 Results
Positive
Jan 16, 2026
On January 16, 2026, Regions Financial reported that fourth-quarter 2025 earnings reached $514 million, or $0.58 per diluted share, while full-year 2025 earnings totaled $2.1 billion, or $2.30 per diluted share, with adjusted earnings up 7 percent...
Business Operations and StrategyExecutive/Board ChangesFinancial Disclosures
Regions Financial Announces CFO Retirement and Succession Plan
Positive
Jan 12, 2026
On January 12, 2026, Regions Financial announced that longtime Chief Financial Officer David J. Turner Jr. will retire effective March 31, 2026, after a nearly 40-year career in finance and auditing, including two decades at the bank, and that vet...
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.