Regions Financial Corp (NYSE:RF) announced on Monday that it has eliminated its Series B Preferred Stock, following the redemption of all outstanding shares the previous day. The Birmingham, Alabama-based bank filed a Certificate of Elimination with the Delaware Secretary of State, effectively returning the previously designated shares to undesignated status.
The bank's 6.375% Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series B, was redeemed according to its original terms. This move comes as part of the company's broader capital management strategy, which includes streamlining its capital structure.
With the Series B Preferred Stock no longer outstanding, the shares have reverted to undesignated preferred stock, par value $1.00 per share. This change takes effect immediately as of Monday, according to the bank's SEC filing.
In other recent news, Regions Financial Corp has made significant strides in its financial performance. The company announced the issuance and sale of $1 billion in senior notes, resulting in proceeds of approximately $996 million before offering expenses. The Alabama-based firm also issued Series F Preferred Stock, affecting dividend rights for other stock classes and resulting in proceeds of $490,141,000 before expenses.
In terms of earnings, Regions Financial reported Q2 earnings of $477 million and earnings per share of $0.52, maintaining a steady total revenue of $1.7 billion on a reported basis and $1.8 billion on an adjusted basis. The company also revealed a 4% dividend increase for its common stock.
Piper Sandler maintained a neutral stance on Regions Financial, highlighting the company's recent positive developments, including improved net interest income (NII) and fee guidance. Other analyst firms such as Baird and RBC Capital also adjusted their outlook on Regions Financial following these results.
InvestingPro Insights
As Regions Financial Corp (NYSE:RF) continues to refine its capital structure with the elimination of its Series B Preferred Stock, it's noteworthy to consider the company's financial standing and performance. According to recent InvestingPro data, Regions Financial has a market capitalization of $20.57 billion and an attractive price-to-earnings (P/E) ratio of 13.87, which reflects investor confidence in its earnings potential. The bank's dividend yield stands at a robust 4.48%, underscoring its commitment to returning value to shareholders.
InvestingPro Tips highlight that Regions Financial has not only maintained dividend payments for 21 consecutive years but has also raised its dividend for 11 consecutive years, indicating a reliable income stream for investors. Additionally, the bank has demonstrated a strong return over the last three months, with a 19.26% price total return, which may interest investors looking for short-term gains.
For those seeking more in-depth analysis and additional InvestingPro Tips on Regions Financial, there are further insights available, including the company's profitability predictions for the year and its performance over the last twelve months. Find more exclusive tips at InvestingPro's dedicated page for Regions Financial: https://www.investing.com/pro/RF.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.