Regions’ performance for the quarter demonstrates that the company’s disciplined focus on identifying and meeting customer needs is resulting in sustainable growth across the franchise. Notably, total ending loan balances were up $1.1 billion linked quarter or 1.4 percent. Overall loan growth reflects slow but steady economic improvement in the company’s core markets as business and consumer deleveraging has slowed and demand for credit has begun to modestly increase. In addition, the company continues to grow organically by expanding the customer base through steady household growth and a disciplined focus on customer service.
“Regions’ positive momentum continued in the second quarter, as evidenced by broad-based loan and customer growth across our franchise with successful execution of key capital plan actions,” said Grayson Hall, chairman, president and CEO. “By continuing to execute on our business priorities, our company is well-positioned to capitalize on opportunities as the economy continues to improve.”
Capital plan actions reduce funding costs, increase return to shareholders
During the second quarter the company began executing various components of its capital plan. These actions improved the company’s financial performance by reducing funding costs, and at the same time, provided higher returns to shareholders through an increase in the dividend and the repurchase of common shares.In addition to increasing the common dividend from $0.01 per diluted share to $0.03 per diluted share and beginning to execute on the approved share repurchases, this quarter’s capital plan accomplishments included:
- Redeeming $350 million of 7.75% senior notes
- Issuing $750 million of 2% senior notes
- Redeeming $498 million of 6.625% Trust Preferred Securities
- Redeeming $100 million of 7.75% Union Planters REIT Preferred Stock