RF - Regions Financial Offers 5% Dividend Yield At A Low Payout Ratio
2024-04-21 10:40:00 ET
Summary
- Regions Financial is a regional bank with over $150B in assets, focused on commercial & Industrial loans.
- The bank saw a decrease in net interest income in Q1, but made up for it with decreased non-interest expenses.
- The bank's exposure to commercial real estate is relatively low, and it has a strong balance sheet with ample cash reserves.
Introduction
Regions Financial ( RF ) is a regional bank headquartered in Alabama and operating in the Midwest, South and Texas. With a total of in excess of $150B in assets on the balance sheet, Regions Financial is a relatively large bank focusing on making commercial loans. The total exposure to commercial real estate remains relatively low and that should help improve the perception of the bank as investors are currently shying away from banks with a relatively high exposure to commercial real estate. As the bank has now reported earnings twice since the previous article was published, I wanted to check up on its financial health and its ability to deal with the changing interest rate environment. I was on the sidelines at the end of Q3 2023, but after reviewing the Q1 2024 results, I am turning bullish....
Regions Financial Offers 5% Dividend Yield At A Low Payout Ratio