Regions Financial Corp. (NYSE: RF), the Birmingham, Ala.-based holding company for Regions Bank, on July 5 completed a purchase of its Regions-branded credit card portfolio from FIA Card Services, which previously issued and managed the credit cards.
The transaction comprises 500,000 existing Regions consumer credit card accounts and 40,000 business credit card accounts, representing a total portfolio of more than $1 billion, according to a news release.
Financial terms of the transaction were not disclosed.
FIA Card Services will continue to manage the accounts held by Regions customers until mid-2012, when Regions will integrate the credit cards into its customer service department, the release said.
"This transaction accelerates Regions' efforts to improve the balance between our consumer and commercial loan portfolios and further diversify revenue streams," said John Owen, Regions senior executive vice president and head of consumer services, in the release. "We plan to grow this business as part of an expanding suite of financial solutions to better serve our customers."
Regions Financial Corp., which has roughly $132 billion in assets, manages approximately 1,800 banking offices and 2,200 ATMs in 16 states. There are 11 area Regions Bank branches - three in Springfield, three in Branson and one each in Republic, Ozark, Bolivar, Aurora and Mt. Vernon, according to its Web site
The company recorded first-quarter net income of $69 million, a 135 percent increase compared to first-quarter 2010 net loss of $196 million, according to Springfield Business Journal archives.
Regions shares were trading at $6.14 as of 10 a.m., compared to a 52-week range of $5.12 to $8.09.[[In-content Ad]]