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From the Vault: Bank of America, Regions report higher profits

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Charlotte, N.C.-based Bank of America Corp. (NYSE: BAC) and Birmingham, Alabama-based Regions Financial Corp. (NYSE: RF) each posted net income gains during the first quarter.

Bank of America
The operator of five Bank of America branches in Springfield improved its earnings by 44 percent to $4.4 billion compared with a year earlier.

Diluted share earnings moved up 13 cents to 41 cents during the quarter ended March 31, according to a news release.

“Each of our businesses reported higher revenue and earnings this quarter, and each recorded solid operating leverage,” Bank of America Chief Financial Officer Paul Donofrio said in the release. “Despite higher revenue-related expenses in our wealth management and capital markets businesses, we kept overall expenses flat year over year as we continued to focus on streamlining and simplifying our company.”

First-quarter financial notes:
    •    Revenue, net of interest income, rose 7 percent to $22.2 billion.
    •    Provision for credit losses was down to $835 million from $997 million a year earlier.
    •    The company repurchased $2.3 billion worth of its stock during the quarter.

As of March 31, Bank of America had $2.2 trillion in assets and $1.9 trillion in deposits. The company operates 4,600 branches, according to the release.

BAC shares were trading at $24.17 as of 9:07 a.m., compared with a 52-week range of $12.05 to $25.80.

Regions Bank
In the first quarter, the parent company of Regions Bank increased its net income available to common shareholders by 11 percent to $285 million from $257 million a year earlier.

The company that operates two Regions Bank branches in Springfield bumped up diluted share earnings 3 cents to 23 cents, according to a news release.

“We achieved solid growth in fundamental areas such as checking accounts, wealth management relationships and active credit cards, as well as strong growth in net interest income and other financing income,” said Grayson Hall, Regions chairman, president and CEO, in the release. “In addition, we are diligently controlling expenses and successfully executing our strategic plan, including staying focused on serving customer needs and continued action steps to diversify our business.”

First-quarter financial notes:
    •    Regions paid $4 million in severance expenses.
    •    The company incurred $1 million in expenses related to the consolidation of 27 branches. Closures related to the consolidations are expected in the second quarter.
    •    Noninterest income ticked up 0.8 percent to $510 million.

Regions, which operates 1,500 branches, recorded assets of $125 billion at the end of the first quarter, according to the release.

RF shares were trading at $13.95 as of 9:07 a.m., compared with a 52-week range of $7.80 to $16.03.

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