Regions Financial Corp.s' (RF) stock price edged down Friday after earnings came in slightly lower than what analysts had expected. The shares rose 0.6% to $15.70.
The Birmingham, Ala.-based regional bank reported fourth-quarter earnings of 37 cents a share, below the 38 cents analysts polled by Zack's had predicted. While that was above the 27 cents a share the bank reported a year ago, it still represented a negative earnings surprise of 2.63%, according to Zacks.
The bank also failed to meet analysts; expectations the previous quarter as well, when earnings came in at 32 cents a share, not the 36 cents that had been predicted.
Regions reported a 28% increase in net income in the fourth quarter, to $390 million.
The bank reported record full-year net income of $1.5 billion, up 28% from the year before.
Despite missing earnings expectations, Zacks Research credited Regions with " a decent quarter, marked by top-line strength, reduced expenses and improved credit quality to an extent."
Regions is also moving ahead with a branch consolidation plan as it looks to cut expenses by $400 million, Zacks noted.
Bank executives said they were pleased with the results.
"This year we delivered high-quality growth in loans, non-interest income and households while also building a more efficient and effective company," said John Turner, president and CEO in a press release."Our team finished the year strong achieving record full-year earnings driven by solid revenue generation, expense management and a focus on continuous improvement.''