Overview

• U.S. regional bank's Q2 adjusted revenue slightly beat analyst expectations

• Adjusted EPS for Q2 rose 13% yr/yr

• Company raised quarterly dividend by 13% and repurchased $59 mln in stock

Outlook

• Company did not provide specific guidance for current or future financial results

Result Drivers

• LOAN GROWTH - Net interest income rose 2% from prior quarter, driven by growth in average loans, fixed-rate asset turnover, and prudent deposit cost management

• WEALTH MANAGEMENT INCOME - Wealth management income reached a record level, up 6% from prior quarter, mainly due to higher production and favorable market conditions

• CREDIT QUALITY IMPROVEMENT - Net charge-offs declined and non-performing loans decreased, reflecting improved credit performance

Company press release: ID:nBw89BzqBa

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q2 Revenue		$1.91 bln
Q2 Adjusted Revenue	Slight Beat*	$1.95 bln	$1.94 bln (15 Analysts)
Q2 Adjusted EPS		$0.68
Q2 EPS		$0.64
Q2 Net Income		$570 mln
Q2 Net Interest Income	Meet	$1.28 bln	$1.28 bln (9 Analysts)
Q2 Credit Loss Provision		$68 mln
Q2 Net Interest Margin		3.66%

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 7 "strong buy" or "buy", 11 "hold" and 4 "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 $31.50, about 2.8% above its July 16 closing price of $32.40

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

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