Regions Bank loses $5.6B for the year

Birmingham, Ala.-based Regions Financial Corp. reported a $5.6 billion loss in 2008.

The bank, which released results Jan. 20, had a per-share loss $8.09 for the year.

For the fourth quarter, Regions reported a net loss of $6.2 billion, or a loss of $9.01 per share. That's down from a $70.6 million profit in fourth-quarter 2007.

Earnings were largely impacted by a $6 billion noncash charge that was required after testing at the end of the quarter indicated that the fair value of Regions' banking reporting unit was less than its book value, according to a news release.

During the quarter, Regions participated in the U.S. Treasury's Capital Purchase Program and received $3.5 billion in exchange for preferred stock.

The bank also sold or held for sale $1 billion in nonperforming assets, resulting in $479 million of losses, and it increased its loan-loss provision to $1.2 billion, which was $354 million above net charge-offs.

Lending production was up 3 percent for the quarter.

"Although we're encouraged by steps the government has taken to stabilize the housing market and revitalize the economy, there is no quick fix for credit quality issues currently plaguing the financial services industry," Regions Chairman, President and CEO Dowd Ritter said in the release. "We fully acknowledge the challenges that we face in 2009."

Shares (NYSE: RF) closed Wednesday at $4.56, compared to a 52-week range of $4 to $25.84.