Group 1 - Regions Financial is a significant regional banking group in the US, primarily operating in the Midwest, Southern USA, and Texas [1] - The company is involved in providing exclusive access to actionable research on European small-cap investment opportunities [1] - The focus of the investment group is on high-quality small-cap ideas, emphasizing capital gains and dividend income for continuous cash flow [1] Group 2 - The investment group offers two model portfolios: the European Small Cap Ideas portfolio and the European REIT Portfolio [1] - Weekly updates and educational content are provided to enhance understanding of European investment opportunities [1] - An active chat room is available for discussions on the latest developments of the portfolio holdings [1]

Group 1 - Regions Financial is a significant regional banking group in the US, primarily operating in the Midwest, Southern USA, and Texas [1] - The company focuses on high-quality small-cap investment opportunities, emphasizing capital gains and dividend income for continuous cash flow [1] - The investment group offers two model portfolios: the European Small Cap Ideas portfolio and the European REIT Portfolio, along with weekly updates and educational content [1] Group 2 - The company has disclosed a beneficial long position in RF.PR.E, indicating confidence in its investment strategy [1] - There is also a small long position in RF.PR.F, further reflecting the company's investment interests [2]

Company Overview - Regions Financial (RF) is headquartered in Birmingham and operates in the Finance sector, with a stock price change of 14.03% since the beginning of the year [3] - The company currently pays a dividend of $0.26 per share, resulting in a dividend yield of 3.95%, which is significantly higher than the Banks - Southeast industry's yield of 2.23% and the S&P 500's yield of 1.51% [3] Dividend Performance - The annualized dividend of Regions Financial is $1.06, reflecting an 8.2% increase from the previous year [4] - Over the past five years, the company has increased its dividend four times, achieving an average annual increase of 13.34% [4] - The current payout ratio is 43%, indicating that the company distributes 43% of its trailing 12-month earnings per share as dividends [4] Earnings Growth Expectations - For the fiscal year 2025, the Zacks Consensus Estimate predicts earnings of $2.32 per share, which corresponds to a year-over-year earnings growth rate of 9.43% [5] Investment Appeal - Regions Financial is viewed as an attractive dividend investment, particularly for income investors, due to its solid earnings growth and favorable dividend yield [6] - The company holds a Zacks Rank of 2 (Buy), suggesting it is a compelling investment opportunity [6]

Core Viewpoint - Regions Financial has focused on building a consistently performing sustainable bank over the last decade, emphasizing soundness, profitability, and growth in that order of priority [2]. Group 1: Performance and Strategy - The company has improved its credit, interest rate, and liquidity risk management practices, resulting in enhanced operational and compliance programs [2]. - Regions Financial has diversified its revenue streams by investing in capital markets, mortgage, and wealth management businesses [3]. - The focus on capital allocation and risk-adjusted returns has yielded significant benefits for the company over the years [3]. Group 2: Investments and Growth - Continuous investments in people, technology, markets, and products have contributed positively to the company's performance [3].

Summary of Regions Financial Corporation Conference Call Company Overview - **Company**: Regions Financial Corporation - **Key Executives**: John Turner (CEO), David Turner (CFO), Ronald Smith (Treasurer) Core Industry Insights - **Focus on Sustainable Banking**: The company emphasizes building a consistently performing and sustainable bank, prioritizing soundness, profitability, and growth in that order [2][3] - **Investment in Diversification**: Regions has invested in capital markets, mortgage, and wealth management to diversify revenue streams [2][3] - **Credit Risk Management**: Improved credit risk management processes and a focus on client selectivity have strengthened the company's culture and underwriting practices [3][4] Financial Performance - **Earnings Growth**: Regions has achieved over 10% CAGR in earnings per share over the last decade, outperforming peers in share repurchases [4][5] - **Return on Equity**: The company has improved its return on tangible common equity, leading its peer group over the last four years [5] - **Shareholder Value**: Regions has consistently delivered total shareholder value through capital returns, dividends, and strategic investments, performing in the top quartile over the last three, five, and ten years [5] Market Position and Growth - **Loan and Deposit Growth**: Regions has grown loans and deposits in the top quartile among peers, with a 30% increase in deposits over the last five years [6][8] - **Market Share**: The company holds a top five market share in 70% of its operating markets, with many markets growing faster than the national average [6][7] - **Priority Markets**: Regions has identified eight priority markets with significant deposit opportunities, expecting population growth at 2.5 times the national average [9][10] Economic Outlook - **Positive Economic Conditions**: The company remains optimistic about economic conditions, citing strong corporate balance sheets and consumer deposit growth of 20% year-on-year [13][14] - **Pipeline Growth**: The corporate banking pipeline has increased by 71% year-on-year, indicating robust demand [13] Competitive Landscape - **Increased Competition**: The competitive landscape has intensified with new entrants, but Regions believes its long-standing market presence and customer relationships will sustain its competitive edge [17] Credit Quality and Risk Management - **Improving Credit Quality**: Credit quality is improving, with non-accruals and classified loans trending downwards [45] - **Charge-Off Expectations**: Charge-offs are expected to remain in the 40 to 50 basis points range, with a potential decrease in 2026 [63] Capital Allocation Strategy - **Capital Generation**: Regions generates about 40 basis points of capital through earnings each quarter, with a payout ratio of approximately 45% in dividends [49] - **Investment Focus**: The company prioritizes loan growth and strategic investments over share buybacks, with a capital ratio close to its target range [50][51] Technology and Infrastructure - **Core System Transition**: Regions is transitioning to a new cloud-based core deposit system, expected to enhance operational capabilities and customer service by 2027 [58][61] Future Outlook - **Guidance for 2026**: The company maintains a growth outlook of 3% to 5% for net interest income, driven by balance sheet repricing and effective deposit cost management [30][31] - **Long-Term Return Targets**: Regions aims for a return on tangible common equity in the range of 16% to 18% annually [64][68] Conclusion - Regions Financial Corporation is positioned for continued growth and resilience in a competitive banking environment, with a strong focus on sustainable practices, credit quality, and strategic investments in technology and priority markets.

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 ...

Core Insights - Regions Financial Corp has been recognized as a Top Socially Responsible Dividend Stock, featuring a strong dividend yield of 4.0% and being acknowledged by prominent asset managers for its socially responsible investment criteria [2]. Group 1: Dividend and Financial Performance - The annualized dividend paid by Regions Financial Corp is $1.06 per share, distributed in quarterly installments, with the most recent dividend ex-date on September 2, 2025 [4]. - The company operates in the Banking & Savings sector, alongside major competitors such as JPMorgan Chase & Co and Bank of America Corp [6]. Group 2: Social and Environmental Responsibility - The assessment of Regions Financial Corp's social responsibility includes environmental criteria, focusing on the impact of its products and services, as well as energy and resource efficiency [2]. - Social criteria evaluated include human rights, child labor, corporate diversity, and the company's societal impact, particularly concerning business activities related to weapons, gambling, tobacco, and alcohol [2]. Group 3: ETF Inclusion - Regions Financial Corp is included in the iShares USA ESG Select ETF (SUSA), representing 0.08% of the fund's underlying holdings, which amounts to approximately $3.91 million worth of RF shares [3].

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 |