Regions reports soft third-quarter earnings

Net income, excluding the impact of merger-related expenses, was 64 cents per diluted share, down 7.2 percent from the 69 cents per diluted share in the second quarter.

Net interest income was $1.1 billion in the quarter, down $25.4 million from the previous quarter. Company officials attribute the decline to a large tax deposit and a decline in low-cost deposits.

“Business conditions continued to be less than optimal during the quarter, but our conservative operating culture continues to serve us well in this challenging environment,” President and CEO Dowd Ritter said in a news release. “Regions’ underwriting standards and avoidance of higher-risk credit concentrations coupled with a strong capital position have been a buffer against recent turmoil in the credit and liquidity markets.”

The company also continues its stock buyback program; 6.5 million common shares were repurchased in the third quarter, leaving 27.6 million available under current repurchasing authorizations.

Shares of Regions Financial (NYSE: RF) closed Thursday at $26.94, near its 52-week low of $26.91.