This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

10 Banks That Still Owe TARP

2. Regions Financial

Company Profile

Shares of Regions Financial (RF - Get Report) of Birmingham, Ala. closed at $7.21 Wednesday, returning 35% year-to-date. The company owes $3.5 billion in TARP money.

Income Statement

Regions reported a second-quarter net loss to common shareholders of $335 million, or 28 cents a share, compared to net losses to common shareholders of $255 million, or 21 cents a share, in the first quarter and $244 million or 28 cents a share for the second quarter of 2009. Results for the second quarter of 2010 included a charge of $200 million to cover what the company termed "probably" losses by the company's Morgan Keegan subsidiary, which is facing regulatory actions by the Securities and Exchange Commission and several states related to "certain funds previously administered."

Excluding the Morgan Keegan charge, Regions said the net loss would have been 11 cents a share.

The company's second-quarter provision for loan losses was $651 million, slightly exceeding net loan charge-offs.

The second quarter tax-adjusted net interest margin was 2.90% according to SNL Financial, improving from 2.62% a year earlier.

Balance Sheet

Total assets were $135.4 billion as of June 30. The nonperforming assets ratio was 3.59% and the second-quarter net charge-off ratio was 2.95%. Loan loss reserves covered 3.65% of total loans.

Regions Financial's Tier 1 leverage ratio was 9.10% and the total risk-based capital ratio was 15.90% as of June 30. The tangible common equity ratio was 6.26%, and many analysts assume the company will need to raise significant capital to continue working through its problem loans and exit TARP.

Christopher Marinac of FIG Partners said in an August report that his firm's earnings estimates for the company reflect "$2 Billion in new capital by early 2011 at a sub$6.50 share price or about 100% of our estimated tangible book."

Stock Ratios

The shares trade for 1.1 times tangible book value and 21.9 times the consensus earnings estimate of 33 cents for 2011, and 9.4 times the 2012 consensus earnings estimate of 77 cents a share. Of course, the P/E ratios don't take into account the dilution of shares that would result from an offering of common stock.

Analyst Ratings

Out of 19 analysts covering Regions Financial, only one has a buy rating while 16 recommend investors hold the shares and two recommend selling.
9 of 10

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
ZION $29.98 0.10%
HBAN $11.68 0.13%
FITB $20.52 0.02%
FHN $14.90 -0.13%
KEY $13.16 0.19%


Chart of I:DJI
DOW 17,833.64 +21.45 0.12%
S&P 500 2,091.43 +2.29 0.11%
NASDAQ 5,120.72 +17.9120 0.35%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs