This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Regions Beats on Solid Commercial Loan Growth (Update 1)

Fourth-quarter noninterest income totaled $536 million, increasing from $533 million in the third quarter and $507 million in the fourth quarter of 2011. Fourth-quarter mortgage income totaled $90 million, declining from $106 million the previous quarter, but increasing from $57 million a year earlier. The sequential decline in mortgage income was offset by a $10 million increase in service charges on deposit accounts, to $254 million, as well as an increase in other noninterest income.

The fourth-quarter provision for loan losses was $37 million, while the company saw net loan charge-offs of $180 million, for a reserve release of $143 million, boosting operating earnings.

The fourth-quarter ratio of net charge-offs to average loans was an annualized 0.96%, declining from 1.38% the previous quarter and 2.16% a year earlier. Regions reported a Dec. 31 ratio of nonperforming assets (including nonaccrual loans, loans past due 90 days or more and foreclosed assets) to loans, foreclosed properties and nonperforming loans held for sale, of 3.19%, improving from 3.47% in September and 4.40% in December 2011. Loan loss reserves covered 2.59% of total loans as of Dec. 31.

The company reported an adjusted fourth-quarter return on average assets from continuing operations of 1.02% and an adjusted return on average tangible common equity of 11.93%. Regions also estimated a Basel III Tier 1 common equity ratio of 8.9% as of Dec. 31.

Wrapping up a transformational 2012 that include the sale of the company's Morgan Keegan brokerage subsidiary to Raymond James Financial (RJF) and a $900 million common equity raise in the first quarter, followed by the full redemption in the second quarter of $3.5 billion in preferred shares held by the government for bailout assistance received through the Troubled Assets Relief Program, or TARP, Regions CEO Grayson Hall said "I am pleased with the progress we made in 2012 and am encouraged that our efforts are building a strong foundation for sustainable growth in 2013 and beyond."

Jefferies analyst Ken Usdin said in a note following the earnings release that "pre-provision earnings were stronger-than-expected, mainly on lower expenses," and that a "flat NIM guide could keep forward net interest income estimates fairly stable."

2 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
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

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
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
BAC $15.81 0.00%
RF $9.61 0.00%
STT $74.45 0.00%
AAPL $128.46 0.00%
FB $78.97 0.00%

Markets

DOW 18,132.70 -81.72 -0.45%
S&P 500 2,104.50 -6.24 -0.30%
NASDAQ 4,963.5270 -24.3630 -0.49%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs