JP Morgan Reviews 2Q at Regions Financial

J.P. Morgan has published a report on Regions Financial RF reviewing the second quarter. In the report, J.P. Morgan wrote, "Regions reported EPS of $0.04 and core EPS of $0.01, above consensus of -$0.01 and our $0.01 estimate. Nonrecurring items in 2Q include $77 mil restructuring charges, $60 mil tax benefit, and $24 mil securities gains. 2Q was a moderate one marked by improved outlook for credit quality, reduction in core noninterest expenses with further future reductions, impressive performance in deposit service charges, and moderate C&I loan growth, but offset by sharp decline in capital markets/brokerage revenues. A third consecutive quarter of positive reported EPS, even with some nonrecurring items, should keep RF on track to repay TARP." J.P. Morgan rated Regions Financial a Neutral with a price target of $8.00. Regions Financial closed Tuesday at $6.42.