Regions turns profit on lower loan-loss allowance

Birmingham, Ala.-based Regions Financial Corp. reported a first-quarter profit of $26 million, or 4 cents per share. The net income figure is compared to a $6.2 billion loss in fourth-quarter 2008 and a $337 million profit in first-quarter 2008, according to results reported April 21.

Provision for loan losses was $425 million for the quarter, compared to $1.2 billion in the fourth quarter and $181 million a year ago. The allowance for loan losses represents 1.94 percent of net loans, up from 1.43 percent in the same period last year. Net loan charge-offs were down to an annualized 1.64 percent of average loans, and nonperforming loans increased to $1.6 billion.

Regions opened a record 243,000 new retail and business checking accounts during the quarter, while the opened-to-closed ratio of checking accounts increased 26 percent from a year ago. Total customer deposits grew 4 percent on average.

Shares (NYSE: RF) closed April 29 at $4.66, compared to a 52-week range of $2.35 to $24.31.