Today the Federal Reserve indicated to Regions
Financial Corporation (NYSE:RF) that it does not object to the
company’s capital plan and proposed capital actions covering the period
from April 1, 2014, to March 31, 2015. The capital plan was submitted to
the Federal Reserve on January 6, 2014, as part of the Comprehensive
Capital Analysis and Review (CCAR).
Actions that Regions may undertake as outlined in its capital plan
include increasing the quarterly common dividend to $0.05 per share and
potentially the repurchase of up to $350 million in common shares. These
proposed capital actions are subject to approval by the Regions Board of
Directors. The timing and amount of any repurchases will, consistent
with Regions’ capital plan, be subject to the completion of certain
other capital actions, as well as other factors, such as general market
conditions.
“The outcome of the capital plan review demonstrates the strength of our
company and our continued focus on prudently managing and growing our
business,” said Grayson Hall, Regions’ chairman, president and chief
executive officer. “We believe this capital plan strikes an appropriate
balance between preserving our ability to deploy capital in pursuit of
organic loan growth and returning capital to shareholders, consistent
with our strategic priorities.”
Regions’ 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. The company’s top
priorities for capital deployment are reinvesting in the business
through organic loan growth, increasing the company’s quarterly common
dividend, and appropriately returning capital to shareholders through
share repurchases. Other considerations include the pursuit of strategic
opportunities consistent with the company’s risk tolerance.
Regions has also disclosed the results of its company-administered
stress test on the Investor
Relations section of regions.com within the regulatory
disclosures area. The disclosure is required by 12 CFR 252.148,
which implements the requirements of Section 165(i)(2) of the Dodd-Frank
Wall Street Reform and Consumer Protection Act.
About Regions Financial Corporation
Regions Financial Corporation, with $117 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,
mortgage, and insurance products and services. Regions serves customers
in 16 states across the South, Midwest and Texas, and through its
subsidiary, Regions Bank, operates approximately 1,700 banking offices
and 2,000 ATMs. Additional information about Regions and its full line
of products and services can be found at www.regions.com.
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