Regions cites hurricane impact for earnings drop

Birmingham, Alabama-based Regions Financial Corp. (NYSE: RF) CEO Grayson Hall cited the impact of recent hurricanes on the company’s bottom line.

The operator of Regions Bank, including two branches in Springfield, posted net income available to common shareholders of $295 million, a 3 percent dip from $304 million a year earlier. Still, diluted share earnings improved by 1 cent to 25 cents, according to a news release.

The company operates branches in the hurricane-hit areas of Texas and Florida, as well as other states in the South.

“While the third quarter presented challenges from recent hurricanes, I am immensely proud of how our teams responded to serve affected customers and meet the needs of fellow Regions associates and our surrounding communities,” Hall said in the release. “Throughout the impacted communities we serve, our associates mobilized resources to quickly restore essential financial services in hard-hit areas, and we continue to work with customers on disaster-recovery needs.”

Third-quarter financial notes:
    •    Total revenue came to $1.4 billion, a 1.9 percent increase from a year earlier.
    •    Regions reported $10 million worth of impairment charges related to operating lease assets and pension settlement charges.
    •    Salaries and employee benefits fell slightly to $483 million.

As of Sept. 30, Regions’s assets were $123 billion and deposits were $96.9 billion. The company operates 1,500 branches and 1,900 ATMs in the Midwest, South and Texas, according to the release.

RF shares were up by about 2.6 percent this morning after the release of the earnings report. The company’s shares were trading at $15.40 as of 9 a.m., compared with a 52-week range of $10.32 to $16.03.