Regions: Financial Winner

Shares of Regions Financial continued to rise after the Birmingham, Ala., lender on Tuesday reported second-quarter earnings to common shareholders of $284 million, or 20 cents a share, beating the consensus estimate of a 16-cent profit.

In comparison, Regions earned $145 million, or 11 cents a share during the first quarter, and $55 million, or four cents a share, during the second quarter of 2011.

Please see TheStreet's earnings coverage for much more on Regions Financial's second-quarter results.

FBR analyst Paul Miller rates Regions "Market Perform," with a price target of $6.50, and said late on Tuesday that "the company had a solid operating quarter as lower operating expenses, net interest margin expansion, and overall credit improvement supported earnings," adding that "credit metrics continue to be encouraging, prompting the company to release reserves."

While Miller also said that "Regions continues to make progress in stabilizing its balance sheet and improving funding costs, which should benefit NIM going forward," the concluded by saying that "until Regions can generate stronger core profitability and sustained loan growth, we will remain on the sidelines with regard to shares."

Miller estimates that Regions will earn 67 cents a share for all of 2012, followed by 2013 EPS of 65 cents.

Regions Financial's shares have now returned 61% year-to-date, following a 39% decline during 2011.

RF data by YCharts

The shares trade just above their reported June 30 tangible book value of $6.69, and for nine times the consensus 2013 EPS estimate of 79 cents. The consensus 2012 EPS estimate is 70 cents.

Interested in more on Regions Financial? See TheStreet Ratings' report card for this stock.