Birmingham, Ala.-based Regions Financial Corp. (NYSE: RF) announced today a common stock public offering of 152.9 million shares at $5.90 per share, a move to help the bank holding company repay $3.5 billion to the U.S. Treasury Department.
With a March 19 closing date, the offering is expected to generate $900 million toward Regions’ tab in the federal Troubled Asset Relief Program.
According to a news release, the move is part of Regions' plan to repurchase its Series A preferred stock issued in the TARP Capital Purchase Program that was created with taxpayer money in the wake of the country’s financial crisis in 2008. Regions is the last of the nation’s big banks to repay its TARP money, according to the
Treasury's February report.
Regions said it also intends to use proceeds from the sale of Morgan Keegan & Co. Inc. and related affiliates, which is expected to close in April, to repurchase the Series A preferred stock. Regions has submitted its plan to the Securities and Exchange Commission, and the repurchase of preferred stock under TARP is pending Federal Reserve and Treasury approval.
Locally based bank holding companies that participated in TARP were Great Southern Bancorp, Guaranty Federal Bancshares Inc., Liberty Bancshares Inc. and Gregg Bancshares Inc.
Regions returned to a
profitable third quarter, reporting quarterly earnings of $155 million as of Dec. 31, compared to a $155 million net loss in the same quarter of 2010.
With $127 billion in assets, Regions manages 1,700 banking offices in 16 states, including 11 area branches. The bank operates three branches in Springfield, three in Branson and one each in Republic, Ozark, Bolivar, Aurora and Mount Vernon, according to its
Web site.
As of 11:47 a.m., Regions' shares were trading at $6.18, compared to a 52-week range of $2.82 to $7.50.[[In-content Ad]]
