Regions Bank profits fall 25%

Birmingham, Ala.-based Regions Financial Corp. (NYSE: RF) produced second-quarter profits of $267 million, a 24.8 percent decrease compared to $355 million in the same quarter last year.

The holding company, which operates three Regions Bank branches in Springfield, recorded diluted earnings per share available to common shareholders of 18 cents for the quarter ending June 30, a 3-cent decrease, according to a news release.

Company officials noted profits were negatively affected by liability management activities, specifically the redemption of higher cost liabilities that were replaced by lower cost debt.

"By continuing to execute on our business priorities, our company is well-positioned to capitalize on opportunities as the economy continues to improve," Regions Chairman, President and CEO Grayson Hall said in the release.

Second-quarter financial highlights:

• Loans totaled $75 billion as of June 30, on new loan production of $8 billion during the quarter.
• Provision for loan losses increased 19.2 percent to $31 million from $26 million a year ago.
• Net interest income decreased 3.6 percent to $808 million from $838 million.

Regions operates about 1,700 branches in 16 states and holds assets of $119 billion, the release said.

RF shares were trading at $10.11 as of 9:23 a.m., compared to a 52-week range of $6.18 to $10.52.