In the recent press release from Regions Financial Corporation, several key financial metrics and strategic initiatives were highlighted. Let's take a closer look at the numbers and changes in performance over the last period.
Loan and Deposit Growth: Over the last 5 years, Regions Financial Corporation has achieved top quartile organic loan and deposit growth compared to peers. The average loan growth, excluding bank mergers and acquisitions, has been 21%, and the average deposit growth, excluding bank mergers and acquisitions, has been 36%. It's important to note that these figures demonstrate consistent, disciplined growth.
Capital Strength: The company has demonstrated robust capital balances and strong organic capital generation, positioning it well for a full range of potential economic conditions. In the 2024 stress test, Regions Financial Corporation's Common Equity Tier 1 (CET1) degradation was 2.6%, which was lower than the peer median of 4.1%.
Shareholder Value: The company has shown peer-leading dividend growth while actively managing share count. Between the second quarter of 2012 and the first quarter of 2025, the company reduced its shares outstanding by 36.8%. The 6-year dividend growth compounded annual growth rate (CAGR) was 10.1%, outperforming its peers.
Total Shareholder Return: * Over the last 3, 5, and 10 years, the company's total shareholder return has been consistently strong, with figures of 62%, 212%, and 222% respectively over these time periods.
Earnings Per Share (EPS) and Return on Average Tangible Common Equity (ROATCE): * Regions Financial Corporation has been leading in terms of ROATCE for the past 4 years. The 5-year EPS CAGR was 8%, and the 10-year EPS CAGR was 11%.
Risk Efficiency: * The company has sustained an advantage in risk efficiency, with adjusted pre-provision income minus net charge-offs to risk-weighted assets consistently outperforming the peer median.
Tangible Book Value (TBV) Growth: * The 3-year and 5-year compound annual growth rates (CAGR) of TBV plus dividends have been 20.4% and 15.3% respectively, demonstrating sustained growth in this key financial metric.
Deposit Growth and Franchise Value: Regions Financial Corporation has outperformed in deposit growth and disciplined pricing, with a 5-year deposit growth consistently above the industry median growth, while maintaining meaningfully lower costs. The company has achieved the lowest total and interest-bearing deposit costs among peers.
Strategic Investments: The company plans to invest in talent across its footprint in key areas of opportunity, including commercial and middle market associates, consumer and wealth resources, and revenue enablement roles. Additionally, the company is making investments in technology to support its growth strategy, focusing on core modernization, commercial loan systems, deposit systems, a new native mobile app, and small business digital origination platform.
As a result of these announcements, the company's shares have moved 0.14% on the market, and are now trading at a price of $25.755. Check out the company's full 8-K submission here.
