Regions swings to profit in 2Q, beats estimates

Regions Financial Corp. (RF) reported second-quarter income of $55 million available to common shareholders, or 4 cents a share, up from a loss of $335 million, or 28 cents a share, in the year-ago quarter as new products and services helped diversify revenue streams. It was the third-consecutive quarterly profit for the Birmingham, Ala.-based regional bank, which re-entered the credit card business during the quarter and introduced new consumer fee-based services such as on-line person-to-person payments, small cash advances for relationship customers, and identity theft protection. Analysts had estimated an average loss for the quarter of 1 cent. Total revenue was $1.65 billion, up from $1.61 billion in the year-ago period. Pre-tax, pre-provision net revenue on an adjusted basis rose to $500 million, its highest level since third quarter 2008, reflecting the company’s continued growth in commercial and industrial, indirect and direct consumer loans, as well as low-cost deposits. The company’s credit costs, while still elevated, declined to the lowest level in two years. Total net charge-offs in the second quarter were $548 million, down from $651 million in the year-ago quarter. Inflows of nonperforming loans declined 24% versus the previous quarter to $555 million  —  the lowest level in over three years. Nonperforming loans, excluding loans held for sale, declined $303 million or 10%. The bank held $268 million in mortgage servicing rights for the quarter, up slightly from $220 million a year ago. Mortgage income was $50 million, down from $63 million in the year-ago quarter.

Most Popular Articles

3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please