Overview

• U.S. regional bank's Q1 adjusted revenue grew 4% yr/yr but missed analyst expectations

• Adjusted EPS for Q1 was $0.62

• Company repurchased $401 mln in shares during the quarter

Outlook

• Company says client sentiment remains generally optimistic across its footprint

• Company sees stable to modestly positive consumer spending trends and sound consumer fundamentals

• Regions says it is confident in delivering on strategic priorities throughout the year

Result Drivers

• LOAN GROWTH - Q1 loan growth was driven by broad-based commercial and industrial lending, higher line utilization, and new loans to existing clients, with a focus on high-quality credits

• NET INTEREST INCOME PRESSURE - Net interest income decreased 3% sequentially, mainly due to fewer days in the quarter, the absence of prior quarter non-recurring items, and tighter asset spreads

• EXPENSE CONTROL - Non-interest expenses declined from the prior quarter, reflecting broad-based improvement across most expense categories

Company press release: ID:nBws2NJsa

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Revenue		$1.87 bln
Q1 Adjusted Revenue	Miss	$1.87 bln	$1.92 bln (15 Analysts)
Q1 Adjusted EPS		$0.62
Q1 EPS		$0.62
Q1 Net Income		$559 mln
Q1 Net Interest Income	Miss	$1.25 bln	$1.27 bln (11 Analysts)
Q1 Credit Loss Provision		$91 mln
Q1 Net Interest Margin		3.67%

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 8 "strong buy" or "buy", 11 "hold" and 3 "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy."

• Wall Street's median 12-month price target for Regions Financial Corp is $29.50, about 5.7% above its April 16 closing price of $27.92

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 10 three months ago

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