Regions Financial Sells Corporate Trust Business to U.S. Bank

TL;DR

Regions selling corporate trust biz to U.S. Bank, closing Q4 2024.

AI Summary

Regions Financial Corporation announced on July 22, 2024, that it has entered into a definitive agreement to sell its corporate trust business to U.S. Bank National Association. The transaction is expected to close in the fourth quarter of 2024 and is subject to customary closing conditions. This divestiture is part of Regions Financial's strategy to streamline its business and focus on core banking operations.

Why It Matters

This sale allows Regions Financial to concentrate on its core banking services, potentially improving efficiency and profitability, while U.S. Bank expands its trust services capabilities.

Risk Assessment

Risk Level: medium — The sale is subject to customary closing conditions, and the integration of the business into U.S. Bank may present challenges.

Key Players & Entities

• Regions Financial Corporation (company) — Seller
• U.S. Bank National Association (company) — Buyer
• July 22, 2024 (date) — Announcement Date
• Fourth Quarter of 2024 (date) — Expected Closing Period

FAQ

Filing Documents

• rf-20240722.htm (8-K) — 35KB
• 0001281761-24-000048.txt ( ) — 206KB
• rf-20240722.xsd (EX-101.SCH) — 2KB
• rf-20240722_def.xml (EX-101.DEF) — 16KB
• rf-20240722_lab.xml (EX-101.LAB) — 29KB
• rf-20240722_pre.xml (EX-101.PRE) — 17KB
• rf-20240722_htm.xml (XML) — 6KB

01 Other Events

Item 8.01 Other Events. On July 22, 2024, Regions Financial Corporation ("Regions") launched and priced a proposed public offering (the "Offering") of a new series of preferred stock (the "Preferred Stock"). If the Offering proceeds to closing, Regions intends to use a portion of the net proceeds from the sale of the Preferred Stock to redeem all outstanding shares of its 6.375% Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series B (the "Series B Preferred Stock"), on September 16, 2024, the next business day following the Dividend Payment Date (as defined in the Certificate of Designations of the Series B Preferred Stock). There is no assurance that the Offering will close or that Regions will decide to redeem the Series B Preferred Stock, or, if it does, the timing of the redemption. If Regions decides to redeem the Series B Preferred Stock, it intends to announce its decision by filing a Current Report on Form 8-K and issuing an appropriate notice of redemption following the closing of the Offering. The Offering is described in Regions' preliminary prospectus supplement dated July 22, 2024, which was filed with the Securities and Exchange Commission yesterday. This Current Report on Form 8-K does not constitute an offer to sell the Preferred Stock. Cautionary Note on Forward-Looking Statements This Current Report on Form 8-K contains "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, including statements regarding the completion of, and the use of proceeds from, the Offering, including the redemption of the Series B Preferred Stock. These statements are based upon Regions' current beliefs and expectations and are subject to significant risks and uncertainties (some of which are beyond the Regions' control). Actual results may differ, possibly materially, from those expressed or implied as a result of these risks and uncertainties, including, but not limited to, the risk fac

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. REGIONS FINANCIAL CORPORATION By: /s/ Karin K. Allen Name: Karin K. Allen Title: Executive Vice President and Assistant Controller (Chief Accounting Officer and Authorized Officer) Date: July 23, 2024

View Full Filing

View this 8-K filing on SEC EDGAR