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Here's How Much You'd Have If You Invested $1000 in Regions Financial a Decade Ago

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How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.

FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.

What if you'd invested in Regions Financial (RF - Free Report) ten years ago? It may not have been easy to hold on to RF for all that time, but if you did, how much would your investment be worth today?

Regions Financial's Business In-Depth

With that in mind, let's take a look at Regions Financial's main business drivers.

Regions Financial Corporation is a Birmingham, AL-based financial holding company, providing retail and commercial and mortgage banking, as well as other financial services in the asset management, wealth management, securities brokerage, trust services, mergers and acquisitions (M&A) advisory services and other specialty financing.

The company has four business segments.

The Corporate Bank (44% of total average assets as of Dec 31, 2021) segment includes the company’s commercial banking functions including commercial and industrial, commercial real estate, investor real estate lending, equipment lease financing and capital market activities.

The Consumer Bank (25%) segment comprises the company’s branch network, including consumer banking products and services as well as the corresponding deposit relationships.

The Wealth Management (2%) segment consists of wealth management products and services. This segment provides services such as investment advice, assistance in managing assets and estate planning to individuals and institutional clients.

Other (29%) includes the company’s treasury function, the securities portfolio, wholesale funding activities, interest rate risk management activities and other corporate functions that are not related to a strategic business unit.

In December 2021, Regions Financial acquired Clearsight Advisors, Inc. In the same month, Regions Financial’s subsidiary, Regions Bank, acquired Sabal Capital Partners, LLC. In October 2021, Regions Financial completed the acquisition of the specialized home improvement lender, EnerBank USA, from its parent CMS Energy Corporation.

In April 2020, it acquired equipment finance lender, Ascentium Capital LLC, from Warburg Pincus. Also, in August 2019, Regions Financial closed acquisition of Highland Associates — a leading institutional investment firm. In July 2018, the company divested Regions Insurance Group to BB Insurance Holdings — a wholly owned subsidiary of BB&&T Corporation.

As of Jun 30, 2022, Regions Financial reported $160.9 billion in assets, $92 billion in net loans, $138.3 billion in deposits and $16.5 billion in shareholders' equity.

Bottom Line

Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Regions Financial ten years ago, you're likely feeling pretty good about your investment today.

A $1000 investment made in August 2012 would be worth $3,189.94, or a gain of 218.99%, as of August 18, 2022, according to our calculations. This return excludes dividends but includes price appreciation.

Compare this to the S&P 500's rally of 201.38% and gold's return of 4.87% over the same time frame.

Analysts are forecasting more upside for RF too.

Shares of Regions Financial have outperformed the industry in the past year. The company has a decent earnings surprise history, having beaten the Zacks Consensus Estimate in three of the trailing four quarters, while missing in one. Second-quarter results were driven by balance sheet strength and fee income growth. Economic recovery and a decent lending pipeline are expected to drive loan growth, thereby supporting net interest income (NII) in the upcoming quarters. Regions Financial’s inorganic growth moves, aimed at diversifying its revenues, bode well. Its capital-deployment activities are sustainable, backed by decent liquidity. Yet, a rising expense base is expected to continue negatively impacting the bottom line in the near term. Also, a lack of diversification in commercial loans and declining mortgage income are concerning.

The stock has jumped 12.68% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 12 higher, for fiscal 2022; the consensus estimate has moved up as well.

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