Regions Financial Corp. receives the results of the 2021 voluntary stress test
BIRMINGHAM, Alabama – (COMMERCIAL THREAD) – The Federal Reserve communicated to Regions Financial Corp. (NYSE: RF) that the company exceeded all minimum capital levels under the Federal Reserve’s supervisory stress test. The Regions voluntarily participated in the 2021 test as an opportunity to both measure and demonstrate the strength of the Regions’ balance sheet and capital base.
The regions preliminary Stress Capital Buffer requirement for Q4 2021 through Q3 2022, as determined by the Federal Reserve, will be capped at 2.5%. Regions believes that its sound approach to risk management, including the company’s proactive interest rate risk management program, continues to support long-term sustainable performance throughout economic cycles.
“The resilience of our business plan, our strong capitalization and a diversified revenue stream help position Regions as a source of financial strength and stability for the people and businesses we serve, âsaid John Turner, President and CEO from the management of Regions Financial Corp. “Participation in this year’s stress test provided a significant opportunity to demonstrate our prudent approach to risk management. The pandemic further underscored the importance of always effectively managing capital, while changes in customer behavior reflected the need to constantly innovate. Through improving our risk-adjusted returns, investing in growth opportunities and focusing on sustainable performance, we are well positioned to deliver long-term value to our clients, communities and shareholders. . ”
The regions maintain an ongoing and robust capital planning process designed to ensure the efficient use of capital while maintaining a long-term approach to capital allocation and distribution in line with the bank’s strategic priorities. Regions commits to managing the Common Equity Tier 1 capital ratio within a time range, currently 9.25 to 9.75%.
Recently, Regions announced its latest growth opportunity through an agreement to acquire home improvement lender EnerBank USA. The acquisition of the point-of-sale lender is expected to be completed in the fourth quarter of 2021, subject to regulatory approvals and the satisfaction of customary closing conditions. The EnerBank acquisition agreement is in line with the bank’s capital allocation process, which allows regions to pursue continuous innovation and growth opportunities to serve more customers.
In addition, the regions board of directors will consider an increase in the quarterly dividend in common shares of the regions, starting in the third quarter of 2021, at the regular board meeting in July 2021.
About the RÃ©gions Finance Company
Regions Financial Corporation (NYSE: RF), with $ 153 billion in assets, is a member of the S&P 500 Index and is one of the nation’s largest full-service providers of personal and commercial banking services, wealth management and mortgage products and services. Regions serves customers in the South, Midwest and Texas and, through its subsidiary, Regions Bank, operates more than 1,300 bank offices and 2,000 ATMs. Regions Bank is an equal housing lender and member of the FDIC. Additional information about Regions and its full range of products and services is available at www.regions.com.
This press release may include forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, which reflect the current views of the regions with respect to future events and financial performance. The words “future”, “anticipates”, “assumes”, “intends”, “plans”, “seeks”, “believes”, “predicts”, “. . . . . âTargetsâ, âprojectsâ, âprospectsâ, âforeseeâ, âwouldâ, âwillâ, âcouldâ, âcouldâ, âcouldâ, âshouldâ, âcouldâ and similar expressions often mean in pre-staring statements. Forward-looking statements are not based on historical information, but rather relate to future operations, strategies, financial results or other developments. Forward-looking statements are based on management’s expectations and on certain assumptions and estimates made by management and on information available to it at the time the statements are made. These statements are based on general assumptions and are subject to various risks, uncertainties and other factors that may cause actual results to differ materially from the opinions, beliefs and projections expressed in these statements. If the underlying assumptions prove to be incorrect or if unknown risks or uncertainties arise, actual results could differ materially from those projections or expectations. Factors that could cause regions ‘actual results to differ from those described in forward-looking statements include, without limitation, the risks identified in the regions’ annual report on Form 10-K for the year ended. December 31, 2020, and its subsequent filings with the Securities and Exchange Commission. Specifically, with respect to the ongoing acquisition of EnerBank USA, risks include the possibility that the regulatory and other approvals and conditions of the proposed transaction will not be received or satisfied in a timely manner or do not contain at all unforeseen terms and conditions; delays in closing the proposed transaction; synergies, cost savings and other financial or other benefits expected from the proposed transaction may not be realized on schedule or may be less than expected; difficulties in integrating the company; and the inability of regions to effectively sell products to EnerBank customers. You should not place undue reliance on forward-looking statements, which speak only as of the date they are posted. Regions assumes no obligation to update or revise any forward-looking statements that are made from time to time.