Better Together: Regions Bank Completes Acquisition of EnerBank USA

Rhea-AI Summary

Regions Financial Corporation has completed the acquisition of EnerBank USA, effective October 1, receiving the necessary regulatory approvals. EnerBank, a leading home improvement lender, will enhance Regions' Consumer Banking Group. This acquisition aligns with Regions' strategy to strengthen its position in the home improvement finance market, serving homeowners and contractors. EnerBank has funded over $12 billion in home improvement projects since its inception in 2002. The transition will maintain the EnerBank brand initially, with gradual integration into Regions.

Positive

• Acquisition enhances Regions' capacity to serve homeowners and contractors in home improvement lending.
• EnerBank's established client base and technology will contribute to better product offerings.
• EnerBank has a strong track record, funding over $12 billion in home improvement projects.

Negative

• Integration challenges may arise as EnerBank's operations are merged into Regions' framework.
• Risks include failure to realize expected synergies and cost savings from the acquisition.

EnerBank officially joins Regions’ Consumer Banking Group, effective Oct. 1.

SALT LAKE CITY--(BUSINESS WIRE)-- Regions Bank and home improvement lender EnerBank USA on Friday announced the acquisition of EnerBank by Regions has received regulatory approvals and is completed, effective today.

EnerBank employees join Regions as part of its Consumer Banking Group. Regions Bank is a subsidiary of Regions Financial Corporation, one of America’s largest full-service providers of consumer and commercial banking, wealth management, and mortgage products and services.

Scott Peters, senior executive vice president and head of the Consumer Banking Group for Regions, said EnerBank and its team are an ideal fit as Regions accelerates its strategy to serve as the premier lender to homeowners. With a client base that stretches across the U.S., EnerBank serves contractors and homeowners through a series of loan programs and financing solutions that support a wide range of home improvement needs.

“The addition of EnerBank’s exceptional team and leading-edge technology will help Regions deliver even greater value to customers who are seeking convenient, competitive solutions for efficiently financing home improvement needs,” Peters said. “In recent years, we have seen tremendous demand not only for mortgage and refinancing solutions but also for new options to finance upgrades people are making to their homes. The services provided by EnerBank will enable Regions to deliver a more complete range of options as part of our focus on serving as the premier lender to homeowners.”

Since 2002, Salt Lake City-based EnerBank has offered leading home improvement loan programs to not only U.S.-based contractors but also enterprise-level strategic partners in the home improvement industry. As a pioneer in specialized home improvement lending, EnerBank has worked with hundreds of loan program sponsors, inclusive of thousands of home improvement contractors, serving over a million homeowners and funding over $12 billion in home improvement projects.

EnerBank will maintain its headquarters presence in Salt Lake City, with many team members scheduled to occupy portions of 650 Main, a modern Class A office and retail complex under development downtown. The division will continue to be led by Charlie Knadler who will join Regions as part of the Consumer Banking Group.

“Today starts a new journey as part of a strong and united Regions Bank team,” said Knadler. “Together, we will expand home improvement lending opportunities, products and services to continue our leadership in the industry. We look forward to serving contractors and homeowners nationwide under the Regions Bank brand. And we are excited to be part of an organization that is investing in long-term growth and creating even greater value for the customers and communities we serve.”

EnerBank will continue to operate under the EnerBank brand during the coming months; however, contractors and sponsors can expect to see a gradual branding transition to Regions over time.

About EnerBank USA—America’s home improvement lender of choice

EnerBank USA® is a specialized home improvement lender, providing home improvement loans through strategic business partners and independent home improvement contractors. We work hand-in-hand with manufacturers, distributors, franchisors, and major retailers of home improvement, remodeling, and energy-saving products and services. Our mission is to grow contractors’ businesses by increasing leads, boosting close rates, and growing average job size, while helping homeowners fulfill their home improvement dreams. Learn more at enerbank.com.

About Regions Financial Corporation

Regions Financial Corporation (NYSE: RF), with $156 billion in assets, is a member of the S&P 500 Index and is one of the nation’s largest full-service providers of consumer and commercial banking, wealth management, and mortgage products and services. Regions Financial Corporation serves customers across the South, Midwest, and Texas, and through its subsidiary, Regions Bank, operates more than 1,300 banking offices and 2,000 ATMs. Regions Bank is an Equal Housing Lender and Member FDIC. Additional information about Regions and its full line of products and services can be found at www.regions.com.

Forward-Looking Statements

This release may include forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, which reflect Regions Financial’s current views with respect to future events and financial performance. The words “future,” “anticipates,” “assumes,” “intends,” “plans,” “seeks,” “believes,” “predicts,” “potential,” “objective,” “estimates,” “expects,” “targets,” “projects,” “outlook,” “forecast,” “would,” “will,” “may,” “might,” “could,” “should,” “can,” and similar expressions often signify forward-looking statements. Forward-looking statements are not based on historical information, but rather are related to future operations, strategies, financial results, or other developments. Forward-looking statements are based on management’s expectations as well as certain assumptions and estimates made by, and information available to, management at the time the statements are made. Those statements are based on general assumptions and are subject to various risks, uncertainties, and other factors that may cause actual results to differ materially from the views, beliefs, and projections expressed in such statements. If underlying assumptions prove to be inaccurate or unknown risks or uncertainties arise, actual results could vary materially from these projections or expectations. Factors that could cause Regions Financial’s actual results to differ from those described in the forward-looking statements herein include: expected synergies, cost savings, and other financial or other benefits of the EnerBank transaction might not be realized within the expected timeframes or might be less than projected; difficulties in integrating EnerBank’s business; inability of Regions to effectively cross-sell products to EnerBank’s customers; the continued or potential effects of the COVID-19 pandemic and related variants and mutations on Regions Financial’s business, financial condition, and results of operations; and risks identified in Regions Financial’s Annual Report on Form 10-K for the year ended December 31, 2020, and the company’s subsequent filings with the Securities and Exchange Commission. However, these risks and uncertainties are not exhaustive. Other sections of such filings describe additional factors that could impact Regions Financial’s business, financial performance, and consummated acquisition transactions, including the EnerBank transaction. You should not place undue reliance on any forward-looking statements, which speak only as of the date made. Regions Financial assumes no obligation to update or revise any forward-looking statements that are made from time to time.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211001005516/en/

Joel Cannon

801.736.8302

jcannon@enerbankusa.com

Jeremy D. King

205.264.4895

jeremyd.king@regions.com

Source: EnerBank USA

FAQ

What is the significance of Regions Financial acquiring EnerBank?

This acquisition strengthens Regions' position as a leading lender in home improvement financing.

What will happen to EnerBank after its acquisition by Regions?

EnerBank will initially continue to operate under its brand before gradually transitioning to Regions.

How much has EnerBank funded in home improvement projects?

EnerBank has funded over $12 billion in home improvement projects since 2002.

When was the acquisition of EnerBank by Regions finalized?

The acquisition was finalized on October 1.

What potential risks are associated with the acquisition of EnerBank by Regions?

Potential risks include integration challenges and the realization of expected synergies and cost savings.