Regions reports decline in 1Q income

Birmingham, Ala.-based Regions Financial Corp., the holding company for Regions Bank, reported first-quarter earnings of $827 million.

The quarterly earnings represent a 2.6 percent decline compared to $8.49 million in fourth-quarter 2011 earnings.
 
According to a company news release, Regions reported first-quarter net income available to shareholders of $145 million, or 11 cents per diluted share. That’s an increase of 988 percent compared to net income of $17 million in the first quarter of 2011.

Other highlights for the quarter include a drop in nonperforming loans of $221 million, or 9 percent, compared to the fourth quarter of 2011. Net charge-offs for the quarter also fell by $98 million, or 23 percent, from the fourth quarter.
 
The earnings release cited several milestones positioning the company for profit growth. Among them, in January, the company submitted a capital plan to the Federal Reserve as part of its comprehensive capital analysis and review.

Among the objectives already accomplished:

• The company raised approximately $900 million in common equity, yielding $875 million in net proceeds.
• It completed the sale of Morgan Keegan to Raymond James Financial on April 2, resulting in proceeds of approximately $1.2 billion.
• The company repaid the U.S. Treasury Department's $3.5 billion preferred stock investment April 4.

Shares of Regions (NYSE: RF) were trading at $6.82 at 11:10 a.m., compared to a 52-week range of $2.82 to $7.45.