Business Wire (Mon, 9:00AM)
Business Wire (Mar 27, 2014)
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Doing More: Regions 2013 Social Responsibility Report Reflects Commitment to Serving, Improving CommunitiesBusiness Wire (Mar 21, 2014)
Business Wire (Mar 10, 2014)
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Regions Bank, Judge Glenda Hatchett and EverFi Honor Atlanta Students Excelling in Financial Education ProgramBusiness Wire (Feb 25, 2014)
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Business Wire (Feb 4, 2014)
Regions Bank Announces Additional $1.5 Billion Commitment to Loan Pool Designed to Fuel Job Growth in AlabamaBusiness Wire (Feb 4, 2014)
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Business Wire (Jan 15, 2014)
Regions Financial Corporation provides traditional commercial, retail and mortgage banking services, as well as other financial services in the fields of asset management, wealth management, securities brokerage, insurance and other specialty financing.
Friday, Nov 82013, 10:41 AM
Friday, Nov 82013, 10:41 AM| 5 Comments
- Up sharply as interest rates fly higher (the 10-year is up 15 basis points to 2.75%) are the life insurers - all of whom have had their investment returns more than a little constrained by puny yields. IAK +2.4%
- MetLife (MET +5.9%), Prudential (PRU +4.5%), Lincoln National (LNC +6.8%), Hartford (HIG +3.1%).
- Also set to benefit from a steeper yield curve (if we're to believe their models) are the banks, and they're leading the S&P 500 higher. The TBTFs: Bank of America (BAC +3.3%), JPMorgan (JPM +3.1%), CItigroup (C +3.3%), Wells Fargo (WFC +2.6%). The regionals (KRE +3.4%): Huntington (HBAN +2.6%), Regions (RF +4.2%), PNC (PNC +2.8%), FIfth Third (FITB +3.4%), First Niagara (FNFG +2%), Keycorp (KEY +3.5%), Zions (ZION +4.1%), Comerica (CMA +3.1%).
- The XLF +1.9%.
- FInancial sector ETFs: FAS, XLF, FAZ, UYG, KRE, KBE, VFH, IYF, KIE, SEF, IAT, IAI, IYG, IAK, FXO, PFI, KBWB, RKH, QABA, RWW, FINU, RYF, KRU, KBWR, PSCF, KBWP, KBWI, KRS, FINZ, FNCL
Tuesday, Nov 52013, 12:48 PM
Tuesday, Nov 52013, 12:48 PM| Comment!
- New CCAR guidelines are largely inline with last year, says the team at Credit Suisse, but some variables pose more onerous assumptions and could keep capital distributions more conservative than otherwise expected, though still improved from last year.
- The incorporation of a large counterparty default scenario is particularly of note for those banks with material trading and custodial operations. The bar for CCAR passage is thus raised for: BAC, BK, C, GS, JPM, MS, STT, and WFC.
- Additionally, the weakening of economic activity in the severely adverse scenario appears worse than last year. Also included is a reversal in the recent improvement in U.S. housing and the European economy.
- Those best-positioned for excess capital deployment: AXP, HBAN, KEY, NTRS, RF, and USB. Bank of New York, Goldman, State Street, and Wells Fargo all have the honor of ending up on both lists.
- ETFs: KBE, KBWB.
Thursday, Oct 242013, 7:15 AM
Thursday, Oct 242013, 7:15 AM| Comment!
- Analyst Ryan Nash still believes Regions (RF) offers the best risk/reward in the regional sector, "the thesis is no longer as compelling."
- Like SunTrust's Eric Wasserstrom (who downgraded yesterday), Nash doesn't see as much upside from expense cuts as he did previously.
- Previous: Regions beefs up staff.
Wednesday, Oct 232013, 7:36 AM
Wednesday, Oct 232013, 7:36 AM| Comment!
- SunTrust's Eric Wasserstrom is cautious due to the impact of continuing high operating expenses and cuts to Hold with price target reduced to $10.50 from $11.50.
- Regions (RF) yesterday reported flat sequential noninterest expenses, but headcount was higher by 376. The behavior stands in contrast to most other banks who continue to try and slash expenses. Regions "continues to prudently invest for the future," said the company in the earnings release. "If the revenue does not materialize, we will reduce expenses accordingly," said CFO David Turner on the earnings call (transcript).
- Q3 results.
- Shares -0.8% premarket after yesterday's 3.6% decline.
Tuesday, Oct 222013, 8:00 AM
Tuesday, Oct 222013, 8:00 AM| Comment!
- Net interest income of $824M up 2% from Q2, with net interest margin of 3.24% up eight basis points thanks to lower funding costs.
- Noninterest income of $495M is slightly lower than Q2, led by a 16% decline in mortgage production volume. Mortgage income of $17M is off from $52M last quarter. New home originations jump to 60% of total from 37% as refinancing disappears.
- Noninterest expense of $884M is flat from Q2, but headcount is up 376. "Regions continues to prudently invest for the future, which includes investments in talent and technology to support both innovation and risk management."
- Net charge-offs off $148M, or 56% from a year ago. Total provisions for Q of $18M vs. $33M a year ago.
- 11.6% capital ratio. Tangible book value per share of $7.32 vs. $7.11 last quarter.
- Q3 results, press release.
- RF unchanged premarket.
Tuesday, Oct 222013, 7:05 AM|Tuesday, Oct 222013, 7:05 AM| Comment!
Tuesday, Oct 222013, 12:05 AM
Monday, Oct 212013, 5:30 PM
Wednesday, Oct 162013, 2:23 PM|Wednesday, Oct 162013, 2:23 PM| Comment!
Thursday, Oct 32013, 10:15 AM
Thursday, Oct 32013, 10:15 AM| 1 Comment
- Regions Financial (RF +0.6%) cruises right through a sizable market selloff after being initiated a Buy with $12 price target at Wunderlich.
- Analyst Kevin Reynolds says management's "return to banking basics" is beginning to pay off for shareholders. With the stock trading at a relative discount to peers, Reynolds calls Regions "one of the few remaining recovery stories that also happens to operate in the most populous and fastest growing economic regions in the U.S."
Thursday, Sep 192013, 3:05 PM
Thursday, Sep 192013, 3:05 PM| Comment!
- Regional banks have fallen and can't get up following yesterday afternoon's non-taper announcement. The SPDR Regional Banking ETF (KRE -1.7%) is off about 3% from where it stood prior to 2 PM ET yesterday.
- The sector sliced right through the bond market tumble this summer as higher rates were expected to boost profitability for the lenders, and investors are using the excuse of the taper delay to cash in some chips (as they are with another higher-rate beneficiary, the insurance sector).
- Individual names of note: Huntington (HBAN -2%), Regions (RF -3.7%), SunTrust (STI -3.1%), First NIagara (FNFG -2.8%), Synovus (SNV -1.8%), KeyCorp (KEY -3.9%), ZIons (ZION -3.1%), Flagstar (FBC -2.3%).
- Perhaps a little less asset-sensitive and performing better: U.S. Bancorp (USB -0.4%), BB&T (BBT -0.3%), PNC Financial (PNC -0.5%), Hudson CIty (HCBK -0.9%), Fifth Third (FITB -1%).
- Other ETFs: KBE, KBWB.
Wednesday, Sep 112013, 8:23 AM
Wednesday, Sep 112013, 8:23 AM| Comment!
- Stung in one area of their business by rising rates as refinance business evaporates, regional banks are overall pleased with the steeper yield curve. Presenting at various conferences yesterday, players like FITB, BBT, MTB, and RF say they can now reinvest money at those higher rates.
- Fifth Third transcript and presentation slides.
- "Our forecast doesn't show short rates moving until at least the latter part of 2014 and probably into 2015," says Regions CFO David Turner (presentation slides). "We do benefit from the steepening of the curve."
- ETFs: KRE, KBE, KBWB.
Tuesday, Aug 132013, 11:03 AM
Tuesday, Aug 132013, 11:03 AM| Comment!
- BMO Capital's Lana Chan plugs Fed rate hikes into her models and raises price targets on eight regional banks. Her assumptions are rate hikes beginning in mid-2015 and totaling 100 bps by the end of the year, with another 100 bps of hikes by the middle of 2016 - a total off 200 basis points over one year.
- Hold-rated BB&T (BBT +0.3%) is upped to $40 from $38, Comerica (CMA -0.2%) to $42 from $41, PNC Financial (PNC -0.7%) to $78 from $76, SunTrust (STI -0.3%) to $36 from $35, U.S. Bancorp (USB -0.4%) to $39 from $38, and Wells Fargo (WFC -0.1%) to $47 from $46.
- M&T Bank (MTB -0.7%) - still awaiting approval of its buyout of Hudson City Bancorp (HCBK -0.6%) - is lifted to $124 from $117.
- Buy-rated Fifth Third (FITB -1.3%) with price target $22, KeyCorp (KEY -0.4%) with price target $14, and Zions (ZION -1.7%) with price target $33 receive no boost, but Regions Financial (RF -0.1%) is lifted to $13 from $12.
- Many banks disclose their own analysis - but these (probably like Chan's) assume a "parallel" increase in rates in which the yield curve shape doesn't change. By their own analysis, Zions see itself benefitting more than its competitors, with net interest income to rise 18.1% on a 200 bp parallel increase in rates.
- Regional bank ETFs: IAT, KBE, KRE, RKH, QABA, KRU, KRS, KBWR.
Thursday, Aug 82013, 1:04 PM
Thursday, Aug 82013, 1:04 PM| Comment!
- "We have seen a better economy, we saw better credit growth, but now we are seeing better loan growth," says KBW's Jeff Harralson, bullish on the regional and community banking sectors (KRE, KBWR). "We're seeing the first hints of banks beginning to raise the loan rates ... very positive for their earnings."
- Regionals are generally considered those with less than $50B in assets, community banks are those with less than $10B.
- Dick Bove agrees, with Regions Financial (RF), SunTrust (STI), and BB&T (BBT) his favorites in the sector..
- "It's a credit recovery story that finally turned the corner," says RayJay's Michael Rose, noting United Community Banks (UCBI) of northern Georgia as one with credit issues but room to grow.
- Don't forget M&A activity, adds Harralson, noting both PacWest Bancorp (PACW) and CapitalSource (CSE) jumped on the day of their merger announcement. Others that might benefit from deals are SCBT Financial (SCBT) of South Carolina and Prosperity Bancshares (PB) of Houston.
Tuesday, Jul 232013, 8:07 AMMore on Regions Financial (RF) Q2 earnings: Net interest income of $821M up 1% Q/Q as lower deposit costs drove NIM up 3 bps to 3.16%. Noninterest revenue of $497M off 1%, with mortgage income of $69M off 4%. Mortgage production rose 6%, but margins were hit by higher rates and what looks like a hedge not working out as planned. Noninterest expenses off 2% when backing out the costs related to capital plan actions. Loan loss provision of $31M is $113M less than net charge-offs, which fell 20% Q/Q. Tier 1 capital of 11.2%. Shares -2.5% premarket. CC at 11 ET. (PR) |Tuesday, Jul 232013, 8:07 AM| Comment!
Tuesday, Jul 232013, 7:03 AM
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