Regions Financial Corp. (RF: Quote) on Tuesday reported a profit for the second quarter that soared from last year, reflecting a 93 percent decline in provision for loan losses. Earnings per share beat analysts' estimates, sending the company's shares up more than 4 percent in the regular trading session.
Earlier in the year, the Birmingham, Alabama-based company completed the sale of Morgan Keegan & Co. Inc. to Raymond James Financial Inc. for about $1.2 billion, and also repaid the U.S. Treasury's $3.5 billion in bailout funds.
Regions Financial's provision for loan losses in the latest quarter fell to $26 million from $398 million in the same period last year. Net charge-offs, or loans that are deemed not collectible, declined to 1.39 percent of average loans from 2.71 percent in the year-ago period.
The regional bank's net income for the second quarter was $284 million or $0.20 per share, up from $55 million or $0.04 per share in the year-ago period.
On average, 23 analysts polled by Thomson Reuters expected the company to report earnings of $0.15 per share for the quarter. Analysts' estimates typically exclude special items.
Net interest income declined 2 percent from the prior-year quarter to $838 million. Other non-interest income declined 4.6 percent to $495 million. Analysts had a consensus revenue estimate of $1.36 billion.
Net interest margin rose to 3.16 percent from 3.07 percent in the same period last year.
Non-interest expense declined 12 percent from the year-ago period to $842 million.
In Tuesday's regular session, RF is trading at $6.66, up $0.27 or 4.23 percent on a volume of 30.87 million shares.
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by RTT Staff Writer
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