Regions FinancialRegions Financial of Birmingham, Ala., has now seen its shares return 54% year-to-date, following last year's 38% decline. The shares trade for 0.9 times their reported Sept. 30 tangible book value of $7.02, and for nine times the consensus 2013 earnings estimate of 77 cents, among analysts polled by Thomson Reuters. The consensus 2014 EPS estimate is 82 cents. Regions has gone through a major transition during 2012, with the sale of its Morgan Keegan subsidiary in the first quarter, followed by a common equity raise and the company's second-quarter redemption of preferred shares held by the government for assistance received during 2008 through the Troubled Assets Relief Program, or TARP. The company currently pays a nominal quarterly dividend of a penny per common share, but investors are looking for a much more significant return of capital next year, especially since Regions reported a strong estimated Tier 1 common equity ratio of 10.5% as of Sept. 30.
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