This Day On The Street
Continue to site
ADVERTISEMENT
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

Regions Financial: Bank Stock Winner

Meanwhile, while the U.S. housing market continues its multiyear recovery, the time of bailouts hasn't ended, as the Federal Housing Administration on Friday announced it would require an infusion of $1.7 billion from the U.S. Treasury to cover loan losses. This is the first time FHA in its 79-year history has ever needed to borrow money to stay afloat.

FHA Commissioner Carol Galante in a letter to Congress said the agency was unlikely to need a cash infusion from the Treasury during 2014.

Rep. Jeb Hensarling (R., Texas) -- the Chairman of the House of Representatives Financial Services Committee -- in a statement on Friday said "If the FHA was a private financial institution, likely somebody would be fired, somebody would be fined, or the institution would find itself in receivership. Instead, the FHA is merrily on its way to becoming the recipient of the next great taxpayer bailout."

"The FHA is clearly headed toward financial disaster and taking taxpayers along for the ride," Hensarling added. "Unless Congress enacts sustainable housing finance reform, it's possible taxpayers will be forced to write blank bailout checks to the FHA indefinitely. That is unacceptable, and it is further evidence Congress needs to pass the sustainable housing finance reforms found in the PATH Act."

Regions Financial

This is the time of the quarter when sell-side analysts begin publishing their earnings previews, and analysts expect Regions to show net loan growth, as well as increases in net interest income and an expanded net interest margin.

A big concern for many regional and money center banks is the decline in revenue as mortgage refinancing volume subsidies and spreads on the sale of newly originated mortgage loans to Fannie Mae (FNMA) and Freddie Mac (FMCC) decline. Atlantic Equities analyst Richard Staite estimates that for the eight large-cap banks he covers, third-quarter mortgage revenue will be down 55% year-over-year and 40% from the second quarter.

But Regions Financial may see a muted effect this quarter from the mortgage decline. The company's second-quarter mortgage income was $69 million, or 5% of the company's total operating revenue.

Regions will announce its third-quarter results on Oct. 22. Analysts polled by Thomson Reuters on average estimate the company will post earnings of 21 cents a share, compared to 18 cents in the second quarter and 21 cents in the third quarter of 21.
2 of 3

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
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
RF $10.27 0.00%
AAPL $126.44 0.00%
FB $87.28 0.00%
GOOG $523.40 0.00%
TSLA $280.02 0.00%

Markets

DOW 17,730.11 -27.80 -0.16%
S&P 500 2,076.78 -0.64 -0.03%
NASDAQ 5,009.2140 -3.9090 -0.08%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs