Ahead of the Bell: Regions Financial climbs

Shares gained 71 cents, or 7.7 percent, to $9.98. The stock has ranged from $6.41 to $32.65 over the past year.

Late Friday, federal regulators declared Alpharetta, Ga.-based Integrity Bank insolvent and the Federal Deposit Insurance Corp. was named receiver. The FDIC later approved Regions' assumption of $900 million of insured and uninsured deposits. The FDIC is retaining most of Integrity Bank's loan portfolio, to be disposed of at a later date.

Birmingham, Ala.-based Regions said it will serve 23,000 accounts of Integrity Bank and will take over operations of Integrity's five branches in Atlanta, which will reopen on Sept. 2. The bank will work to identify possible job opportunities for Integrity employees, Regions said.

"With the market on high alert for signs of stress at banks, we view the FDIC approval of Regions to assume the deposit accounts of Integrity as an indication that Regions itself is deemed to be a sound institution by regulators," wrote JPMorgan Securities analyst Steven Alexopoulos in a note to investors Tuesday. "Regions' ability to take advantage of the recent bank failure is a modest positive and shows us that even in a strained market environment, mid-cap banks are in a position of relative strength."

Alexopoulos maintained a "Neutral" rating on Regions' shares.