Regions earnings rise in second quarter

Net income was $453 million, or 63 cents per share, compared to $345 million, or 75 cents per share, a year before.

Net interest income was $1.11 billion, down from $1.18 billion in the quarter ended March 31 but up from $777 million in second-quarter 2006.

Regions acquired AmSouth Bancorp. last year and had converted more than 600 branches and nearly 3 million deposit accounts by the end of the quarter. Officials say cost savings from the merger are being realized faster than projected – Regions had $84 million cost savings in the quarter, bringing the total for the year to $135 million.

Noninterest revenue climbed to $729.6 million, driven by growth in deposit service charges and brokerage income, according to a company news release. Regions’ broker-dealer division, Morgan Keegan, had a record quarterly profit of $50 million on revenue of $328.8 million.

Company shares (NYSE:RF) closed Thursday at $33.08, compared to a 52-week range of $32.74 to $39.15.