Regions Financial loses $244M in second quarter

Regions Financial Corp., the holding company for Regions Bank, this morning reported a second-quarter loss of $244 million.

That amounts to a per-share loss of 28 cents per share, compared to earnings of 4 cents per share in the first quarter. In second-quarter 2008, the Alabama-based company had earnings of 30 cents per share, or $206.4 million in net income.

Net loan charge-offs, or the amount of debts deemed uncollectible, increased to $491 million or 2.06 percent of average loans, up from 1.64 percent last quarter. The most strained loans are those for residential home building, home equity in Florida and condominiums.

Allowance for credit losses exceeded net charge-offs at $912 million, or 2.43 percent of loans, as opposed to the $309 million set aside for loan losses in second-quarter 2008.

Net interest income for the second quarter was $831 million, up from $809 million the previous quarter but down from $979 million this time last year. Noninterest income was $1.2 billion, up from $744 million for second quarter last year. Noninterest expenses, such as leases and salaries, totaled $1.23 billion.

Regions is working to "de-risk" its balance sheet, emphasize new business and receive high ratings of customer satisfaction, according to the earnings release.

Last year, after an 80 percent drop in profits in third-quarter 2008, Regions applied for and received $3.5 billion from the government as part of the Capital Purchase Program, meant to revitalize hundreds of banks.

Shares (NYSE: RF) closed Monday at $4.04 and were trading down at $3.50 at noon today. The 52-week range is $2.35 to $19.80.