Regions third-quarter net income drops 3%

Birmingham, Ala.-based Regions Financial Corp. (NYSE: RF) reported a drop in net income to $293 million last quarter, a 2.7 percent decrease from $301 million profits in third-quarter 2012.

The holding company of three Regions Bank branches in Springfield recorded diluted earnings per share of 20 cents, a 1-cent decrease from a year ago, according to a news release.

Still, third-quarter earnings trumped second-quarter profits of $267 million by 9.7 percent.

Regions President, Chairman and CEO Grayson Hall said the company's loan portfolio aided the bottom line in the third quarter.

"This marks the second consecutive quarter that we achieved loan growth and expanded net interest income," he said in the release. "This quarter's results demonstrate that our focus on meeting customers' needs is driving sustainable growth across our franchise as we increase loans and households served."

Loan balances ended the quarter at $76 billion, with new loan production increasing 18 percent to $8 billion.

Third-quarter financial highlights:

• Provision for loan losses decreased 45.5 percent to $18 million from $33 million a year ago.
• Net interest income rose 0.9 percent to $824 million from $817 million.
• Total revenue dropped 2.3 percent to $1.32 million from $1.35 million.

Regions ranked 16th in deposits held in the Springfield metropolitan statistical area as of June 30, according to data released last month by the Federal Deposit Insurance Corp. The company recorded deposits of $152.9 million, representing a 1.9 percent hold on the five-county market.

As of Sept. 30, the company's assets were $117 billion. Regions operates roughly 1,700 branches in 16 states, the release said.

RF shares were trading at $9.44 as of 9:22 a.m., compared to a 52-week range of $6.18 to $10.52.