Regions posts $255 million loss in 1Q net income

Regions Financial Corp. (NYSE: RF) posted a first-quarter net income loss of $255 million, the bank reported in its quarterly earnings report on Tuesday.

The loss amounts to 21 cents per diluted share, compared to a net income gain of $26 million, or 4 cents per diluted share in first-quarter 2009. The losses, according to the release, are related to continued efforts to stabilize net charge-offs and build minimum reserves.

The Birmingham, Ala.-based bank posted a net interest margin of 2.77 percent, up from 2.64 percent a year earlier, but posted annualized return on average assets of –0.74 percent compared to 0.07 percent in first-quarter 2009.

The company posted net interest income of $831 million in the quarter, up from $809 million last year, but much of that income was offset by a $770 million provision for loan losses.

"During the first quarter, asset quality continued to stabilize and deposit growth remained strong; however, substantial credit costs continued to more than offset the underlying strength of our core business," Grayson Hall, president and chief executive officer, said in the release. "Despite the strong fundamentals of our business, we are not satisfied with our financial performance and we remain intensely focused on returning the company to profitability."

Shares of Regions Financial Corp. stock closed Monday at $8.33, compared to a 52-week range of $3.30–$8.92. Stock was trading down at $8.11 as of 10 a.m. Tuesday.[[In-content Ad]]