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Regions net loss of $155M in 3Q

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Regions Financial Corp., the Alabama-based holding company for Regions Bank, reported a third-quarter net loss of $155 million, compared to a net loss of $377 million for the same quarter a year ago.

The loss translates to 17 cents per diluted share for the quarter, compared to a loss of 37 cents a share in third-quarter 2009, according to a Regions news release.

Third-quarter performance reflects an elevated disposition of problem assets and ongoing de-risking of the balance sheet, according to the earnings report. Asset dispositions, which include assets transferred to be held for sale, were $1 billion for the quarter, including a $350 million bulk sale of distressed assets. Charge-offs associated with all asset dispositions were $233 million for the quarter.

“Although the economic recovery in most of our markets remains slow and uneven, we remain committed to returning Regions to sustainable profitability as quickly and prudently as possible and believe this quarter’s actions to dispose of problem assets will help us achieve our goal,” Regions President and CEO Grayson Hall said in the release.

The earnings report also noted:
  • Regions’ maximum loss potential from the Gulf oil spill is now estimated at $20 million, sharply less than the initial $100 million estimate;
  • Nonperforming loans, excluding those held for sale, dropped 3 percent, or $101 million for the quarter, driving an overall 5 percent decline in nonperforming assets;
  • Net interest income rose 1 percent, or $12 million, leading to an improvement of nine basis points in the net interest margin, bringing it to 2.96 percent; and
  • Regions is on track to open more than 1 million new business and consumer checking accounts in 2010, exceeding 2009 record levels.

Regions shares (NYSE: RF) were trading at $6.23 as of 11:20 a.m., compared to a 52-week range of $4.61 to $9.33.[[In-content Ad]]

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