Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, ...

PresentationGreat. If we could just -- next up, very pleased to have Regions Financial. From the company, John Turner, CEO; David Turner, CFO; Deron Smithy, Treasurer. They've been very long supporters of this conference, so then you don't need more of an introduction. John is going to give some brief opening remarks, and then we're going to take some Q&A.John TurnerPresident, CEO & Chairman Great. Thank you. Thanks for your participation this morning, and I appreciate it very much. I thought I'd just make, ...

Regions Financial (NYSE:RF) FY Conference September 10, 2025 08:15 AM ET Company ParticipantsRonald Smith - TreasurerDavid Turner - CFOJohn Turner - CEOOperatorGreat. If we could just... Next up, very pleased to have Regions Financial from the company, John Turner, CEO, David Turner, CFO, Ronald Smith, the Treasurer. They've been very long supporters of this conference, so they still need more of an introduction. John, can you give some brief opening remarks? We're going to take some Q&A.John TurnerGreat. T ...

Barclays Annual Financial Services Conference September 10 Internal Use Longstanding Strategic Priorities Committed to: • Diversified Revenue Streams • Appropriate Risk Adjusted Returns • Disciplined Expense Management Profitability Strategically Investing in: • Top quartile organic loan & deposit growth over the last 5 yrs vs. peers(1) • Opportunities to leverage superior growth of the core footprint: 3.5% projected population growth; Top 3 among peer group(2) • Non-bank M&A, expanding products and capabil ...

''DividendRank'' statistics including a strong 4.0% yield, as well as being recognized by prominent asset managers as being a socially responsible investment, through analysis of social and environmental criteria. Environmental criteria include considerations like the environmental impact of the company's products and services, as well as the company's efficiency in terms of its use of energy and resources. Social criteria include elements such as human rights, child labor, corporate diversity, and the comp ...

Core Viewpoint - Regions Financial Corporation's shares have appreciated 24.3% in the past three months, outperforming the industry growth of 12.9% and peers like Popular, Inc. and HomeTrust Bancshares [1][7]. Financial Performance - The company's strategic acquisitions, digital investments, and strong liquidity position support its long-term financial outlook [4][7]. - The Zacks Consensus Estimate for earnings remains unchanged for 2025, with a marginal upward revision for 2026, indicating expected growth of 9.4% and 8.9% for these years [4]. Growth Strategies - Regions Financial has focused on inorganic expansion through acquisitions, including Clearsight Advisors, EnerBank USA, and Sabal Capital Partners, enhancing its revenue sources and specialized lending capabilities [6][8]. - The company is also investing in digital platforms, with significant growth in digital sales for lending and deposit products in the first half of 2025 [18]. Liquidity and Capital Management - As of June 30, 2025, Regions Financial reported liquidity sources of $65 billion, significantly higher than its total debt of $5.27 billion, ensuring a strong balance sheet [14]. - The bank increased its quarterly dividend by 6% to 26 cents per share in July 2025, with a dividend yield of 3.65% [15][17]. Market Conditions - The anticipated Fed rate cuts are expected to positively impact net interest income (NII), which has a 10-year CAGR of 3.9% through 2024, with management expecting a 3-5% increase in NII for 2025 [9][10]. - Regions Financial has experienced steady loan growth, with a five-year CAGR of 3.2% from 2019 to 2024, although total loans declined slightly in the first half of 2025 [13]. Challenges - The company faces rising non-interest expenses, which grew at a CAGR of 4% from 2019 to 2024, with management expecting adjusted non-interest expenses to rise 1-2% in 2025 [19][21]. - Loan concentration risk is present, with 66% of the loan portfolio in commercial lending, raising concerns about asset quality amid macroeconomic uncertainty [22][25]. Valuation - Regions Financial shares are trading at a forward P/E ratio of 11.12X, slightly below the industry average, while peers are trading at 10.22X and 11.77X [26][29].

Core Viewpoint - Regions Financial (RF) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system emphasizes the importance of earnings estimate revisions, which are strongly correlated with near-term stock price movements [4][6]. - Institutional investors utilize earnings estimates to determine the fair value of stocks, leading to buying or selling actions that affect stock prices [4]. Business Improvement Indicators - The upgrade reflects an improvement in Regions Financial's underlying business, suggesting that investors may respond positively by driving the stock price higher [5][10]. - For the fiscal year ending December 2025, Regions Financial is expected to earn $2.32 per share, with a 3.8% increase in the Zacks Consensus Estimate over the past three months [8]. Zacks Rank System Overview - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [7]. - The upgrade to Zacks Rank 2 places Regions Financial in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10].

[Forward-Looking Statements](index=7&type=section&id=Forward-Looking%20Statements) [Cautionary Note Regarding Forward-Looking Statements and Risk Factor Summary](index=7&type=section&id=Cautionary%20Note%20Regarding%20Forward-Looking%20Statements%20and%20Risk%20Factor%20Summary) The report contains forward-looking statements subject to risks and uncertainties that could cause actual results to differ materially from projections, including economic, market, interest rate, credit, competitive, technological, operational, security, regulatory, and legal factors - Economic and Market Risks: The company's performance is sensitive to economic conditions, particularly in the Southeastern U.S., including property values, interest rates, unemployment, and inflation[23](index=23&type=chunk) - Interest Rate and Capital Markets Risk: Changes in market interest rates can adversely affect revenue, expenses, and the value of assets like the investment securities portfolio, potentially increasing funding costs and impacting liquidity[25](index=25&type=chunk) - Credit Risk: The company faces risks related to customer creditworthiness, loan collectability, and the adequacy of its allowance for credit losses[26](index=26&type=chunk) - Competitive and Technological Risks: Competition from traditional financial institutions and fintechs, along with an inability to keep pace with technological changes including digital banking and AI, could negatively impact revenue and business[32](index=32&type=chunk)[33](index=33&type=chunk)[34](index=34&type=chunk) - Operational and Security Risks: The company is exposed to operational risks, including cybersecurity threats such as data breaches and hacking, which could disrupt business and cause financial losses[38](index=38&type=chunk)[40](index=40&type=chunk) - Regulatory and Legal Risks: Changes in banking laws and regulations, as well as adverse outcomes in litigation or regulatory proceedings, could impose additional costs and negatively affect business practices[42](index=42&type=chunk)[43](index=43&type=chunk) [Part I. Financial Information](index=9&type=section&id=Part%20I.%20Financial%20Information) [Financial Statements (Unaudited)](index=9&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) The unaudited financial statements for the period ended June 30, 2025, show total assets increased to $159.2 billion, net income for Q2 2025 was $563 million, and for the six months ended June 30, 2025, net income rose to $1.05 billion, driven by higher net interest and non-interest income [Consolidated Balance Sheets](index=10&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets were $159.2 billion, an increase from $157.3 billion at year-end 2024, primarily funded by a $3.3 billion increase in total deposits to $130.9 billion, while net loans remained stable at $95.1 billion and total shareholders' equity increased to $18.7 billion Consolidated Balance Sheet Highlights (in millions) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Assets | $159,206 | $157,302 | | Net Loans | $95,111 | $95,114 | | Total Deposits | $130,919 | $127,603 | | Total Liabilities | $140,500 | $139,392 | | Total Shareholders' Equity | $18,666 | $17,879 | [Consolidated Statements of Income](index=11&type=section&id=Consolidated%20Statements%20of%20Income) For Q2 2025, net income increased to $563 million from $501 million in Q2 2024, with diluted EPS rising to $0.59 from $0.52, driven by a 6.2% increase in net interest income and a significant rise in non-interest income, partially offset by higher non-interest expenses, leading to a six-month net income of $1.05 billion Key Income Statement Data (in millions, except per share data) | Metric | Q2 2025 | Q2 2024 | 6 Months 2025 | 6 Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Net Interest Income | $1,259 | $1,186 | $2,453 | $2,370 | | Provision for Credit Losses | $126 | $102 | $250 | $254 | | Non-interest Income | $646 | $545 | $1,236 | $1,108 | | Non-interest Expense | $1,073 | $1,004 | $2,112 | $2,135 | | Net Income | $563 | $501 | $1,053 | $869 | | Diluted EPS | $0.59 | $0.52 | $1.10 | $0.89 | [Consolidated Statements of Cash Flows](index=14&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash from operating activities significantly increased to $1.64 billion, while net cash used in investing activities was $1.98 billion, and net cash from financing activities was $806 million, resulting in a $463 million increase in cash and cash equivalents Six Months Ended June 30 Cash Flow Summary (in millions) | Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash from operating activities | $1,639 | $557 | | Net cash from investing activities | $(1,982) | $(262) | | Net cash from financing activities | $806 | $1,383 | | **Net change in cash and cash equivalents** | **$463** | **$1,678** | [Notes to Consolidated Financial Statements](index=14&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail accounting policies, including the reclassification of **$2.0 billion** in debt securities to held-to-maturity, stable loan portfolios with compositional shifts, consistent allowance for credit losses, redemption of **$350 million** Series D preferred stock, ongoing common stock repurchases, and income growth across Corporate Bank, Consumer Bank, and Wealth Management segments [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=52&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes strong Q2 2025 performance to higher net interest income and robust non-interest income, with a stable loan portfolio, a steady allowance for credit losses at **1.80%**, a strong capital position with an estimated CET1 ratio of **10.8%**, and robust liquidity sources of **$64.8 billion** [Second Quarter Overview](index=53&type=section&id=Second%20Quarter%20Overview) In Q2 2025, Regions reported net income available to common shareholders of **$534 million**, or **$0.59** per diluted share, up from **$477 million**, or **$0.52** per share, in Q2 2024, driven by increases in net interest income and non-interest income, despite a rise in the provision for credit losses, maintaining a strong capital position with an estimated CET1 ratio of **10.8%** Q2 2025 Financial Highlights vs. Q2 2024 | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net Income to Common Shareholders | $534 million | $477 million | | Diluted EPS | $0.59 | $0.52 | | Net Interest Income (Taxable-Equivalent) | $1.3 billion | $1.2 billion (approx.) | | Provision for Credit Losses | $126 million | $102 million | | Non-Interest Income | $646 million | $545 million | | Non-Interest Expense | $1.1 billion | $1.0 billion | [Balance Sheet Analysis](index=54&type=section&id=Balance%20Sheet%20Analysis) Total assets grew to **$159.2 billion** at June 30, 2025, funded by a **$3.3 billion** increase in deposits to **$130.9 billion**, while the loan portfolio remained stable at **$96.7 billion** with growth in investor real estate loans offsetting declines in commercial and consumer loans, and the debt securities portfolio increased by **$1.7 billion** to **$32.3 billion** - The company reclassified **$2.0 billion** of debt securities from available-for-sale to held-to-maturity in the first half of 2025 to reduce AOCI volatility in preparation for expected regulatory changes[235](index=235&type=chunk) - Total loans remained flat since year-end 2024, as a decline in commercial loans (due to low utilization) and most consumer loans was offset by a **$388 million** increase in investor real estate loans[241](index=241&type=chunk)[251](index=251&type=chunk) - Total deposits increased by **$3.3 billion** from year-end 2024, reflecting customer growth and a preference for liquidity, with the mix of non-interest-bearing deposits remaining stable at approximately **31%** of total deposits[307](index=307&type=chunk) [Credit Quality and Allowance for Credit Losses](index=62&type=section&id=Credit%20Quality%20and%20Allowance%20for%20Credit%20Losses) Overall asset quality improved in Q2 2025, with non-performing loans decreasing by **$136 million** to **$792 million**, while the allowance for credit losses (ACL) remained stable at **$1.7 billion**, representing **1.80%** of total loans, reflecting a balance between a deteriorating economic forecast and improved credit metrics Allowance for Credit Losses Metrics | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Allowance for Credit Losses | $1,743 million | $1,729 million | | ACL to Total Loans | 1.80% | 1.79% | | Total Non-Performing Loans | $792 million | $928 million | | NPLs to Total Loans | 0.82% | 0.96% | - The June 2025 baseline economic forecast, used for the ACL calculation, reflected deterioration across most key variables compared to March, which increased the allowance, but this was offset by improved credit metrics and reduced qualitative adjustments[280](index=280&type=chunk)[288](index=288&type=chunk)[290](index=290&type=chunk) - Portfolios identified as being under higher risk ('portfolios of interest') include business offices and trucking, with the office portfolio having **$213 million** in non-performing loans and the trucking portfolio having **$114 million**[261](index=261&type=chunk)[262](index=262&type=chunk)[263](index=263&type=chunk) [Results of Operations](index=70&type=section&id=Results%20of%20Operations) For Q2 2025, net interest income (taxable-equivalent) increased to **$1.3 billion** with a net interest margin of **3.65%**, up **14 basis points** year-over-year, driven by asset repricing and lower funding costs, while non-interest income rose **18.5%** to **$646 million**, and non-interest expense increased **6.9%** to **$1.1 billion** - Net interest income and margin increased in Q2 2025 vs Q2 2024 due to the replacement of fixed-rate assets in a higher rate environment and effective management of deposit costs[337](index=337&type=chunk) - Capital markets income grew **22.1%** in Q2 2025 year-over-year, driven by higher loan syndication revenue, commercial swap income, and merger and acquisition fees[393](index=393&type=chunk) - Mortgage income increased **41.2%** in Q2 2025 year-over-year, primarily due to favorable mortgage servicing rights (MSR) valuation adjustments[394](index=394&type=chunk) - Salaries and employee benefits expense rose **8.0%** in Q2 2025 year-over-year due to merit increases, higher production-based incentives, and increased medical expenses[399](index=399&type=chunk) - FDIC insurance assessments decreased by **31.0%** in Q2 2025 year-over-year, primarily due to updates to the special assessment related to 2023 bank failures and a lower base assessment[400](index=400&type=chunk) [Capital and Liquidity](index=69&type=section&id=Capital%20and%20Liquidity) The company maintained a strong capital position with an estimated Common Equity Tier 1 (CET1) ratio of **10.8%** at June 30, 2025, well above the **7.0%** minimum requirement, supported by robust total liquidity sources of **$64.8 billion**, including **$7.9 billion** in cash at the Federal Reserve and **$25.3 billion** in unencumbered securities Regulatory Capital Ratios (Estimated) | Ratio | June 30, 2025 | Minimum Requirement + SCB | | :--- | :--- | :--- | | CET1 Ratio | 10.76% | 7.00% | | Tier 1 Capital Ratio | 11.85% | 8.50% | | Total Capital Ratio | 13.73% | 10.50% | Liquidity Sources (in billions) | Source | Availability as of June 30, 2025 | | :--- | :--- | | Cash at the Federal Reserve Bank | $7.9 | | Unencumbered investment securities | $25.3 | | FHLB borrowing availability | $11.0 | | Federal Reserve Bank borrowing availability | $20.6 | | **Total liquidity sources** | **$64.8** | [Quantitative and Qualitative Disclosures About Market Risk](index=81&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate risk, with a mostly neutral net interest income profile to parallel yield curve shifts as of June 30, 2025, estimating a **$49 million** increase in net interest income for a gradual **100 basis point** rate increase and a **$56 million** decrease for a **100 basis point** rate decrease Interest Rate Sensitivity (Estimated Annual Change in NII) | Scenario (Gradual Change) | Impact (in millions) | | :--- | :--- | | +200 basis points | $97 | | +100 basis points | $49 | | -100 basis points | $(56) | | -200 basis points | $(99) | - The company's balance sheet is naturally asset sensitive, but discretionary strategies using the investment portfolio and derivative hedges are employed to mitigate this, resulting in a mostly neutral asset/liability position as of June 30, 2025[342](index=342&type=chunk)[343](index=343&type=chunk) [Controls and Procedures](index=81&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting during the second quarter of 2025 - The CEO and CFO concluded that the company's disclosure controls and procedures are effective as of the end of the reporting period[409](index=409&type=chunk) - No material changes were made to the internal control over financial reporting during the quarter ended June 30, 2025[410](index=410&type=chunk) [Part II. Other Information](index=82&type=section&id=Part%20II.%20Other%20Information) [Legal Proceedings](index=82&type=section&id=Item%201.%20Legal%20Proceedings) The company is routinely subject to legal and regulatory proceedings, but management believes the outcomes of pending matters will not materially affect the consolidated financial position or results of operations, with aggregate reasonably possible losses in excess of accruals estimated to be immaterial - Management is of the opinion that the outcomes of pending and threatened legal matters will not have a material effect on Regions' business or consolidated financial position[211](index=211&type=chunk) [Risk Factors](index=82&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2024, are reported - No material changes to risk factors from the 2024 Annual Report on Form 10-K are reported[412](index=412&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=82&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q2 2025, Regions repurchased approximately **6.7 million** shares of its common stock at an average price of **$21.44** per share, with approximately **$1.5 billion** remaining available for repurchase under the authorized plan through Q4 2025 Q2 2025 Share Repurchases | Metric | Value | | :--- | :--- | | Total Shares Purchased | 6,689,090 | | Average Price Paid per Share | $21.44 | | Remaining Authorization (as of June 30, 2025) | ~$1.51 billion |

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market engagement and confidence [1] - The Zacks Style Scores provide a framework for evaluating stocks based on value, growth, and momentum characteristics [2][3] Zacks Style Scores - Stocks are rated from A to F based on their potential to outperform the market, with A being the highest score [3] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score [3][4][5][6] Value Score - The Value Score identifies attractive stocks using ratios like P/E, PEG, Price/Sales, and Price/Cash Flow [3] Growth Score - The Growth Score focuses on a company's financial health and future outlook, analyzing projected and historical earnings, sales, and cash flow [4] Momentum Score - The Momentum Score assesses stocks based on price trends and earnings outlook changes, helping investors identify favorable buying opportunities [5] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive indicator for selecting stocks with strong value, growth, and momentum [6] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks historically yielding a +23.75% average annual return since 1988 [7][8] Stock Example: Regions Financial - Regions Financial Corporation is rated 2 (Buy) on the Zacks Rank and has a VGM Score of B, indicating strong potential [11] - The company has a Value Style Score of B, supported by a forward P/E ratio of 10.72, making it attractive for value investors [12] - Recent upward revisions in earnings estimates for fiscal 2025 have increased the Zacks Consensus Estimate by $0.08 to $2.32 per share, with an average earnings surprise of +7% [12]

Technical Analysis - Regions Financial Corporation (RF) has reached a significant support level, indicating a potential investment opportunity from a technical perspective [1] - RF's 50-day simple moving average has recently broken above its 200-day moving average, forming a "golden cross," which is a bullish indicator suggesting a potential breakout [1] Golden Cross Characteristics - A golden cross consists of three key stages: a downtrend that bottoms out, the shorter moving average crossing above the longer moving average, and a subsequent upward price trend [2] - This pattern is contrasted with a death cross, which indicates potential bearish momentum [2] Performance and Earnings Expectations - Over the past four weeks, RF has gained 8.4%, and it currently holds a 2 (Buy) rating on the Zacks Rank, suggesting it may be poised for further gains [3] - There have been 12 upward revisions in earnings expectations for the current quarter, with no downward revisions, indicating strong bullish sentiment [3][4] - The Zacks Consensus Estimate for RF has also increased, reinforcing the positive outlook for the stock [3]