Regions Financial Corp. Announces Preliminary Stress Capital Buffer Requirement of 3.0%
June 30 2020 - 12:00PM
Business Wire
The Federal Reserve indicated to Regions Financial Corporation
(NYSE:RF) that the company exceeded all minimum capital levels
under the Supervisory Stress Test. Regions’ preliminary Stress
Capital Buffer requirement for the fourth quarter of 2020 through
the third quarter of 2021, as determined by the Federal Reserve,
will be 3.0%, representing the amount of capital degradation under
the Supervisory Severely Adverse scenario, inclusive of four
quarters of planned common stock dividends. The company believes
its proactive interest rate hedging program, which became effective
in 2020, will provide substantial resilience to pretax
pre-provision net revenue.
“Over the past decade we’ve strengthened our capital position
and optimized our balance sheet to improve risk-adjusted returns
while making strategic investments to deliver sustainable
performance. Additionally, we have taken meaningful steps to reduce
variability in our revenue streams,” said John Turner, President
and CEO. “We are committed to effectively managing capital to
strengthen organic growth, generate sustainable, long-term value
for our shareholders, and continue lending activities to support
customers and communities during the current economic
downturn.”
These results allow Regions to manage capital in support of
lending activities and focus on appropriate shareholder returns.
Regions’ current Capital Plan reflects the previously announced
suspension of share repurchases through year-end 2020. Regions’
Board of Directors will evaluate the common stock dividend at its
regularly scheduled meeting in July 2020. Additionally, the Federal
Reserve has provided specific limitations on capital distributions
in the third quarter of 2020 that the company will need to maintain
compliance with in order to maintain its common stock dividend.
Regions expects to be in compliance with these requirements for the
third quarter of 2020.
Regions will continue to monitor the developing situation with
COVID-19 and will, with its Board of Directors, consider
adjustments to its capital actions if necessary. In addition, as
part of its stress testing process, the Federal Reserve announced
that due to rapidly changing conditions, it is requiring all large
banks to update and resubmit their capital plans later this year so
that it can conduct additional analysis to determine if adjustments
are appropriate.
Regions believes its ongoing and robust capital planning process
is designed to ensure the efficient use of capital while
maintaining a long-term approach to capital allocation and
distribution consistent with the company’s strategic
priorities.
About Regions Financial Corporation
Regions Financial Corporation (NYSE:RF), with $133 billion in
assets, is a member of the S&P 500 Index and is one of the
nation’s largest full-service providers of consumer and commercial
banking, wealth management, and mortgage products and services.
Regions serves customers across the South, Midwest and Texas, and
through its subsidiary, Regions Bank, operates approximately 1,400
banking offices and 2,000 ATMs. Regions Bank is an Equal Housing
Lender and Member FDIC. Additional information about Regions and
its full line of products and services can be found at
www.regions.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20200630005799/en/
Media Contact: Evelyn Mitchell 205-264-4551
Investor Relations Contact: Dana Nolan 205-264-7040
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