This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Regions Beats on Solid Commercial Loan Growth (Update 1)

  • Fourth-quarter adjusted operating EPS of 22 cents, beating the consensus estimate of 21 cents.
  • Average C&I loans grow 1.5% in fourth quarter, 9% year-over-year.
  • Average indirect auto loans grow 7% sequentially as residential loans continue decline.
  • Net interest margin expands slightly.
  • Mortgage revenue declines 15% from the third quarter.

Updated with late morning market action and comments from Jefferies analyst Ken Usdin.

NEW YORK ( TheStreet) -- Regions Financial (RF - Get Report) on Monday beat fourth-quarter earnings expectations on an adjusted basis, while reporting significant loan growth in key categories.

The Birmingham, Ala., lender reported fourth-quarter net income available to common shareholders of $261 million, or 18 cents a share, compared to $312 million, or 21 cents a share, in the third quarter, and a net loss to common shareholders of $135 million, or 48 cents a share, in the fourth quarter of 2011.

Excluding "costs resulting from the termination of a third party investment in a subsidiary," Regions reported fourth-quarter adjusted net income available to common shareholders of $311 million, or 22 cents a share, beating the consensus estimate of a 21-cent profit, among analyst polled by Thomson Reuters.

Regions Financial's shares were up 3% in late morning trading, to $7.65, for the strongest morning performance among the 24 components of the KBW Bank Index (I:BKX) The index was up slightly to 53.58.

Other strong sector performers included State Street (STT - Get Report), which was up nearly 3% to $54.90, on the strength of a solid fourth-quarter earnings report on Friday, and Bank of America, which was up 1.5% to $11.29.

Bank of America's shares changed direction, following a 5% decline over the previous two sessions. The company on Thursday reported meager fourth-quarter earnings of three cents a share, springing from its large mortgage putback settlement with Fannie Mae (FNMA) and its portion of the $8.5 billion foreclosure settlement between federal regulators and the largest mortgage loan servicers.

Regions Financial's fourth-quarter net interest income was $818 million, increasing slightly from $817 million the previous quarter, but declining from $849 million a year earlier. The net interest margin (NIM) -- the spread between the average yield on loans and investments and the average cost for deposits and borrowings -- was a tax-adjusted 3.10% in the fourth quarter, widening from 3.08%, both in the third quarter and in the fourth-quarter of 2011.

Average total loans were $74.622 billion in the fourth quarter, declining from $75.697 billion the previous quarter and $78.702 billion a year earlier, as planed declines in residential mortgage and commercial real estate loans were only partially offset by increases in commercial and industrial loans and indirect auto loans. Average fourth-quarter C&I loans were $26.414 billion, increasing from $26.024 billion in the third quarter and $24.310 billion in the fourth quarter of 2011. Average indirect auto loans were $2.295 billion in the fourth quarter, growing from $2.150 billion the previous quarter, and $1.825 billion a year earlier.
1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
BAC $14.77 1.44%
RF $9.45 0.75%
STT $62.91 0.98%
AAPL $93.64 -0.11%
FB $118.57 0.84%


Chart of I:DJI
DOW 17,891.16 +117.52 0.66%
S&P 500 2,081.43 +16.13 0.78%
NASDAQ 4,817.5940 +42.2360 0.88%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs