Birmingham, Ala.-based Regions Financial Corp. (NYSE: RF) recorded third-quarter profits of $155 million, a 200 percent increase compared to a net loss of $155 million in the same quarter of 2010.
The holding company for Regions Bank posted third-quarter earnings of 8 cents per diluted share, up from a loss of 17 cents per share during the same period last year, according to a news release.
"This quarter's results demonstrate that we are making solid progress in executing our business plan and that our efforts are paying off," Regions President and CEO Grayson Hall said in the release. "Although we are realistic about the challenges posed by an uncertain economy and faltering consumer and business confidence, we believe that focusing on the customer, enhancing enterprise-wide risk management and building sustainable performance are keys to our long term success."
Regions cited expense and loan management as key factors in the company's quarterly results.
- Noninterest expenses were $1.07 million, compared to $1.16 million a year before. The company has reduced its work force by 3 percent from the same time last year and, according to the release, will continue to review expenses that don't impact investment opportunities or customer service. During the third quarter, Regions' expenses decreased by $32 million in salaries and benefits and $25 million in Federal Deposit Insurance Corp. premiums.
- Loans in the investor real estate portfolio declined 2 percent, or $1.5 billion, but loans in the middle-market commercial and industrial customer segments grew 12.9 percent. The company had a $355 million provision for loan losses during the quarter, compared to $760 million a year ago.
- Pretax, preprovision income rose 19 percent to $540 million.
Regions, which operates roughly 1,800 branches in 16 states, has $130 billion in assets.
As of 10:35 a.m., the company's shares were trading at $3.72, compared to a 52-week range of $2.82 to $8.09.[[In-content Ad]]