Regions FinancialThis is the time of the quarter when sell-side analysts begin publishing their earnings previews, and analysts expect Regions to show net loan growth, as well as increases in net interest income and an expanded net interest margin. A big concern for many regional and money center banks is the decline in revenue as mortgage refinancing volume subsidies and spreads on the sale of newly originated mortgage loans to Fannie Mae ( FNMA) and Freddie Mac ( FMCC) decline. Atlantic Equities analyst Richard Staite estimates that for the eight large-cap banks he covers, third-quarter mortgage revenue will be down 55% year-over-year and 40% from the second quarter. But Regions Financial may see a muted effect this quarter from the mortgage decline. The company's second-quarter mortgage income was $69 million, or 5% of the company's total operating revenue. Regions will announce its third-quarter results on Oct. 22. Analysts polled by Thomson Reuters on average estimate the company will post earnings of 21 cents a share, compared to 18 cents in the second quarter and 21 cents in the third quarter of 21.
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