Regions Financial Corp (NYSE:RF)

Another out of favor stock, that I think will improve soon.

GREAT DIVIDENDS AND A COMPANY THAT CONTINUES TO GROW EVERY YEAR.

It is Regions are in name only the management is almost all ASO and they have found the mother load. ASO has always been technology deficient and there goal is to do the same for the new Regions. Micro Management is the word of day. It’s damn the torpedoes full steam a head on the consolidation of branches with a operating platform that want perform to a grade A standard. After this storm marches through the AO South land Regions will be short on people to make it work. Regions will be looking for the capital to operate in the next year.

Agressive aquisitions, poor previous management

RF CONTIUES SOLID,GOOD DIVIS,LOOKING FOR MORE ACQ'S

Recent merger of RF and ASO will take time to work. Costs of the merger will take away any incentive for anyone else to look to take over RF for a year or two. After that, things may change.

Thinking like a chairman of the board...RF and ASO merged for only one reason: To better position themselves for a buyout from one of the big boys.

Single-digit growth doesn't cut it in the financial services sector.

It is well received by area users. Works well with small business operations.

Regions Financial is a bank holding company that operates primarily in the southeastern U.S., with operations consisting of banking, brokerage and investment services, mortgage banking, insurance brokerage, credit life insurance, commercial accounts receivable factoring and specialty financing. The company's banking subsidiaries operate more than 1,300 offices and 1,600 ATMs in 16 states in the South, the Midwest, and Texas.

The third quarter of 2006 saw strong net income earnings of 77 cents per share, 3% higher than the previous quarter of the same year. The net interest income for the same period increased 8.9% compared to third quarter of 2005 primarily due to a favorable balance sheet positioning combined with a favorable shift in the mix of earning assets and interest-bearing liabilities. Morgan Keegan, Regions' investment banking division, had a good quarter contributing 30% of the total non-interest income, but is more volatile due to huge capital market exposure. Though the bank derives 40% of it income from fee-based sources like brokerage and investment banking its fortune greatly depends on the interest rate spread and movements. The credit quality of the bank with NPA’s of 0.52% has improved marginally and is far from satisfactory.

The recent merger with Amsouth Bancorp to form Regions Financial Corporation is an all-stock deal, comes at no premium with expected annualized merger cost saves of $400 million. Moreover the deal is also expected to generate about $1 billion excess capital a year with more opportunities of reinvestment and make it the number four bank in Florida. Though the fundamentals of the bank looks good, the chances of a double-digit growth look dull and with projections of stable growth in the coming year

could sell to bigger bank

regional powerhouse; well-run bank; acquired multiple banks over last 10 years; finally has the presence to compete with big banks in the region it operates; i expect am south transition to go smoothly based on their past experience; the earnings will raise and it is matter of time for the stock price to follow

Gotta get bought out! Too juicy for a bigboy bank.

rf and am south will double price within the year 2007!!

ASO buy

Regions Banks are located throughout the country, which makes banking for a mobile country especially attractive.

Expanding and merging bank play. Big in Southeast. Many branches.

Is in the process of merging with AmSouth Bank and should end up as a dominate player in six southeastern states with a substantial chance of a takeover by a larger bank in three years after the current merger has consoldated operations and reduced staff.