Regions quarterly net income tumbles 80%

The Birmingham, Ala.-based company had net income for the quarter ended Dec. 31 of $70.6 million, or 10 cents per share, compared to $361.6 million, or 56 cents per share, in fourth-quarter 2006.

Earnings also were affected by $150.2 million in merger-related costs; excluding merger expenses, earnings were 24 cents per share. Regions completed its branch conversions during the quarter.

Fourth-quarter net loan charge-offs increased to $107.5 million, compared to $63.1 million in the prior quarter. The increase was partly related to deterioration in the residential homebuilder loan portfolio, as distressed borrowers deal with a weakened housing demand in some of Regions’ markets. During the quarter, Regions implemented a plan to better support that portfolio by reassigning key relationship managers to focus on work-out strategies for borrowers.

Shares (NYSE: RF) closed Monday at $19.19 and were trading up at $20.05 as of 11 this morning. The 52-week range is $18.61 to $37.61.[[In-content Ad]]