Regions Financing Tr I (RF)

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See all Bulls Reasons Bulls: Reasons To Buy RF is due for a boost 0% agree RF is due for a boost RF’s short interest surged 13.1 million shares (27%) during the last period reported (May 15-30). This represents about 9% of the outstanding share float with cover ratio of 6.3 days. Since the last report, short interest has likely increased further given the... read more View or Edit Reason 0 votes 0% agree Bears: Reasons To Sell Feeling Bearish? Be the first to explain why this would make a poor investment Send the authors a comment or suggestion Be the first to make a suggestion See All Suggestions

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Regions Financial Corporation (NYSE: RF), with more than $138 billion in assets, is one of the nation's largest full-service providers of consumer and commercial banking, trust, securities brokerage, mortgage and insurance products an services. Regions serves customers in 16 states across the South, Midwest and Texas and operates more than 1,900 banking offices and a 2,400-ATM network. Its investment and securities brokerage, trust and asset management division operates under the name, Morgan Keegan & Company Inc.

[edit] Business and Financials

Regions Financial doesn’t have any sub-prime exposure. It did have a sub-prime origination business- EquiFirst, but those mortgages were sold servicing-released and not retained on the books. Regions sold EquiFirst to Barclays (BCS) back in 2007. In addition, Regions isn’t exposed to non-traditional mortgages such as option ARMs or loans with teaser rates.

Regions' primary concern is its $11.5 billion construction loan portfolio with $447 million in non-performing loans. Regions hasn’t had to take any major write-downs, and earnings have held up in the past several quarters relative to peers.

Regions recorded a loan loss provision of 181 million for 1Q08, down from 358 million in 4Q07. RF has been reducing costs through last year’s merger with AmSouth. In the March quarter, merger cost saves totaled 127 million, and management expects total cost saves of 700 million by year-end 2008. In addition, Regions Financial also owns Morgan Keegan, a strong brokerage firm, which will help diversify revenue streams during this downturn.

[edit] History

Regions Financial Corporation was formed in 1971 as First Alabama Bancshares Inc., Alabama's first multibank holding company. The holding company began operations with a total of $543 million in assets and 40 banking locations in Birmingham, Huntsville, and Montgomery.

In 2004, the company merged with Tennessee-based Union-Planters Corp. which created a Top-15 U.S. bank. The company's merger with AmSouth Bancorporation on November 4, 2006, created a large Southeastern bank, ranking as one of the top 10 banks in the nation.^[1]

References

1. Company website

[edit] References

1. ↑ RF