Regions Financial Corp
PMI Index: Component Growth Impacts Banks
A growing economy definitely benefits the banking sector. The impact will be positive for big banks and also for regional banks.
Hyman Bullish on Financials, Investors Upbeat about Rate Hike
Trump’s domestic growth-friendly policies Returns have been surging for the financial sector (XLF) (VFH) as the market expects to benefit from the Trump administration’s projected policies. Markets are highly confident with the expectation of more rate hikes, for example, and of widespread deregulation. Banks’ earnings have thus been getting a huge boost, and the market has been […]
Regions’ Wealth Management Business Posts Strong Growth in 1Q15
Regions Financial’s (RF) Wealth Management revenue increased 10% YoY. Going forward, It intends to focus on growing its wealth management business.
First Horizon Reported Mixed Results in 3Q15
First Horizon National has a market cap of $3.23 billion. After the earnings report in 3Q15, it fell by 1.2% to close at $13.80 per share as of October 16, 2015.
How Does First Horizon National Compare to Its Peers?
First Horizon outperformed its peers based on the forward PE ratio and PBV ratio. The ETFs outperformed First Horizon based on the price movement.
Analyzing BB&T Corporation’s 6 Operating Segments
BB&T Corporation’s (BBT) operations are divided into six business segments. Community Banking contributes 46% to the total revenue.
Must-Know: Investing in BB&T through ETFs
BB&T is more widely represented in ETFs focused on the banking sector. The SPDR S&P Bank ETF (KBE) has BB&T comprising ~1.6% of its portfolio.
REITs Are Overvalued on a Price-to-Book Basis
REITs are the most overvalued sector in XLF on a price-to-book multiple basis. On average, REITs traded at a price-to-book multiple of 3.57x as of Monday, July 6.
Why Banks Are Anxious about the Fed Meeting
Interest rates are the most important driver for a bank, as they determine banks’ net interest margins.
KeyCorp’s Asset Quality Is Improving
Higher nonperforming loans (or NPLs) indicate poor asset quality. KeyCorp’s nonperforming loans to end-of-period loans ratio is 0.73.
Baupost invests in RF Micro Devices amid its merger with TriQuint
The Baupost Group initiated a position in RF Micro Devices Inc. (RFMD) that accounted for 1.25% of the fund’s total portfolio. Baupost also started a new position in RFMD’s peer and merger partner, TriQuint Semiconductor (TQNT).
Factors That Led to a Decline in Discover’s Net Income in 1H17
Discover Financial’s employee compensation expenses rose 7% in 1H17 compared to 1H16.
Discover Misses Earnings Estimates but Beats Revenue Estimates
Discover Financial Services (DFS) posted earnings per share of $1.40 in 2Q17, which missed the analysts’ estimate of $1.45. DFS reported revenues of $2.42 billion in 2Q17, beating the analysts’ estimate of $2.40 billion.
Understanding Analyst Expectations for Regional versus Large Banks
With ~50% of analysts recommending that investors buy, analysts appear positive about the sector in the long term and a rate hike in December.
Midsize Banks Need a Breather from Excessive Regulations
Banks have seen compliance costs rise since the Dodd-Frank Act regulations took effect. For small banks, it’s been harder to absorb these costs.
Capital One Shares Rally 8.3% after Earnings Beat Estimates
Capital One Financial (COF) delivered better-than-expected third quarter earnings on October 22 after markets closed.
How Does Synovus Financial Compare to Its Peers?
The price-to-book value ratios of Synovus, BB&T, SunTrust Banks, Regions Financial, and Capital Bank Financial are 1.43x, 1.19x, 0.93x, 0.77x, and 1.37x.
Global Woes Cast a Shadow over US Stock Markets
While the risks of a contagion spreading here are small, US stock markets here could be affected by what happens to European stocks because of the crisis in Greece.
Manufacturing Expands at a Faster Rate, Drives Demand for Loans
When manufacturing expands, it’s a positive indicator for overall economic growth. Generally, it results in positive GDP growth.
Total Loans at Banks Grew 7.6% in First Week of June
In this series, we’ll review the banking sector’s two primary indicators—loan and deposit growth. Total loans are generally made up of commercial and industrial loans, consumer loans, and real estate loans.
Banks Set to Profit from Steepening Yield Curve
The yield curve has steepened a bit compared to where it was a week or even a month ago. Investors should consider the yield curve slope an indicator of bank performance.
Interest Rates : A Key Indicator for the Banking Sector
When interest rates rise, banks typically increase the interest they charge for loans faster than what they pay on deposits. This gives an immediate boost to their margins.
Why Does a Flattened Yield Curve Hurt Banks?
Banks benefit from a steeper yield curve, which allows banks to lend on higher long-term rates and borrow on lower short-term rates. This boosts banks’ margins.
Interest Rates Change: A Key Indicator for the Banking Sector
Lower interest rates on a sustained basis have negatively impacted the performance of the US banking sector. Banks are not able to use much deposit pricing strategies to boost margins.
Latest Data: Commercial Banks Record 8% Loan Growth
According to the Fed’s data, total loans for all US commercial banks increased 7.9% in the week ending May 6. Loan growth is vital to banks’ income growth.
Revenue Diversification: A Key Priority for Regions Financial
During 1Q15, Regions Financial (RF) repurchased $102 million of common stock—completing its $350 million 2014 repurchase program.
Regions Financial Records Average Loan and Deposit Growth in 1Q15
In the quarter, Region Financial’s deposit balances increased 4.4% from the same quarter last year, while checking accounts grew 5.7%.
Regions Financial’s Net Income Declines in 1Q15
Regions Financial (RF) reported its first quarter earnings on April 21. While the revenue for the quarter increased by 1% YoY, the net income declined 26%.
BB&T’s Relative Valuation Is close to the Industry Average
BB&T’s loan and deposit growth is marginally below the industry average. Its ROE and price-to-book ratio are close to the peer average.
Why BB&T Has Low Funding Costs Compared to Its Peers
Deposits are the cheapest funding source. Since deposits fund a major chunk of BB&T’s assets, the overall funding costs are low.
SunTrust: A Leading Bank in the Southeast
SunTrust provides a broad range of consumer and wholesale banking, mortgage banking, and private wealth management services.
Is SunTrust Bank’s Stock Undervalued?
SunTrust Bank’s return on equity is 8%, which is 18% lower than the industry average.
Why SunTrust Has Lower Net Interest Margins
SunTrust Bank’s net interest income in 2014 remained stable compared to 2013 as strong loan growth offset the decline in net interest margin.
Commercial Segment Rules SunTrust’s Loan Portfolio
The loan portfolio of SunTrust Bank (STI) has three segments: commercial, residential, and consumer.
SunTrust’s Mortgage Banking Focuses on Efficiency Improvement
SunTrust’s Mortgage Banking segment reported a net loss of $56 million for 2014 compared to a net loss of $527 million for 2013.
Commercial Loans Drive SunTrust’s Wholesale Banking Growth
The Wholesale Banking segment’s net interest income increased in 2014 compared to 2013.
SunTrust Bank Has a Lower Dividend Yield
SunTrust Bank (STI) paid common dividends totaling $371 million or $0.70 per share in 2014.
Consumer Banking and Wealth Management: SunTrust’s Key Segment
This article focuses on SunTrust’s Consumer Banking and Private Wealth Management segment.
BB&T Offers a Higher Dividend Yield Compared to Its Peers
Dividend yield is a company’s annual dividend per share. It’s expressed as a percentage of its share price. Dividend yields are important if you want a regular stream of income.
BB&T Focuses on Expanding Corporate Banking Services
BB&T is focused on expanding its corporate banking services. It’s adding new industry verticals for lending and investment banking services.
BB&T Is Offering Specialized Lending Services
BB&T’s (BBT) Specialized Lending consists of businesses and subsidiaries that provide specialty finance products. The segment’s net income decreased 5.9%.
BB&T’s Residential Mortgage Banking’s Net Income Declined
BB&T’s (BBT) Residential Mortgage Banking segment’s net interest income for 2014 decreased, primarily due to lower average loan balances.
BB&T’s Residential Mortgage Banking Segment Faces Headwinds
BB&T’s (BBT) Residential Mortgage Banking segment retains and services mortgage loans originated by the Community Banking segment.
BB&T’s Community Banking Is Impacted by Low Interest Rates
BB&T’s Community Banking segment offers a variety of loan and deposit products and other financial services. The segment’s net interest income decreased in 2014.
BB&T Corporation Is a Leading Bank in the Southeast Region
BB&T Corporation (BBT) is a financial holding company. It conducts its operations primarily through its bank subsidiary—Branch Bank.
Is Regions Financial stock undervalued?
Regions Financial’s stock price hasn’t recovered since it fell during the crisis. It has the lowest price-to-book ratio of ~0.8 in its peer group.
Regions Financial’s return on equity is lower than its peers
Regions Financial’s (RF) return on equity, or ROE, over the last five-year period improved from -4.4% in 2010 to 6.6% in 2014.
Regions Financial has low earnings and dividend growth
Earnings are growing, but at a slow pace. Regions Financial’s (RF) net income increased by 1% in 2014—compared to 2013.
Why inorganic growth works for Regions Financial
A substantial portion of Regions Financial’s growth has been through the acquisition of other financial institutions. The bank was formed in 1971.
Regions Financial focuses on business loans
Regions Financial’s loan portfolio can broadly be classified into business and consumer loans. Business loans account for ~62% of the total loan portfolio.
Why does Regions Financial have a stable net interest margin?
For a bank, the net interest margin is the difference between the interest income generated and the interest paid out as a percentage of interest-earning assets.
What investors should know about Regions Financial Corporation
Regions Financial Corporation is a leading regional bank in the southeastern US. It’s the 17th largest bank in the US—based on assets.