Regions Financial Cutting Jobs, Reports Say

Regions Financial(RF Quote - Cramer on RF - Stock Picks) is eliminating approximately 4% of its workforce, according to media reports.

Regions is expected to cut about 1,300 positions throughout its 16-state footprint as the company looks to implement further cost cuts from its merger with AmSouth Bancorp, the reports say, citing a company spokesman. The two Birmingham, Ala.-based banks merged in November 2006.

Regions' headcount on Dec. 31 totaled 33,161 employees, according to the company's annual filing with the Securities and Exchange Commission.

Regions, like other banks hurt by the housing correction, saw fourth-quarter adjusted income sink more than 60% from a year earlier to $164.6 million, or 24 cents a share. Regions had warned prior to its earnings release that its fourth-quarter provision for loan losses, particularly on loans to homebuilders, was nearly quadruple what it set aside in the third quarter.

The bank's loan-loss provision came to $358 million, or 1.45% of total loans. Regions' loans to residential homebuilders constitute some 8% of its total $95.4 billion portfolio.

The adjusted earnings figure includes the bank's $51.5 million share of the litigation settlement for Visa(V Quote - Cramer on V - Stock Picks), but excludes merger-related expenses. Leaving those items in the mix, Regions' profit came to $70.6 million, or a dime a share.

A spokesman for Regions did not immediately return a request for comment.