DOW JONES NEWSWIRES
Regions Financial Corp.'s (RF) third-quarter loss narrowed,
though it was still worse than analysts had expected, as the
company lowered its loan-loss provisions.
"Although the economic recovery in most of our markets remains
slow and uneven, we remain committed to returning Regions to
sustainable profitability as quickly and prudently as possible and
believe this quarter's actions to dispose of problem assets will
help us achieve our goal," said President and Chief Executive
Officer Grayson Hall.
The Birmingham, Ala.-based lender has posted repeated losses as
it continued to struggle with real-estate exposure in beaten-down
Southern markets, many of which have been hurt further by woes
following the oil spill in the Gulf of Mexico. Lately, many banks
have been able to improve their results by setting aside less money
for loan losses.
Loan-loss provisions were $760 million, down from $1.03 billion
a year earlier but up from $651 million in the prior quarter. Net
charge-offs, or loans lenders don't think are collectible, rose to
3.52% of average loans from 2.86% and 2.99%, respectively.
Nonperforming loans, those near default, rose to 4.98% from 4.4%
and 4.94%.
Regions reported a loss of $155 million, or 13 cents a share,
from a year-earlier loss of $377 million, or 32 cents a share,
which included charges of $41 million tied to branch
consolidation.
Revenue was flat at $1.62 billion.
Analysts polled by Thomson Reuters had most recently forecast a
loss of 9 cents on $1.62 billion in revenue.
Shares fell 11% to $6.25 in premarket trading. As of Monday's
close, the stock had risen 38% in the past year.
-By Nathan Becker, Dow Jones Newswires; 212-416-2855;
nathan.becker@dowjones.com