NEW YORK (TheStreet) -- Regions Financial (RF) was rising 2.55% to $10.84 on Tuesday after the company reported fourth-quarter earnings.
Regions Financial reported a net income of $219 million for the fourth-quarter, earnings $1.1 billion for the year. The fourth-quarter also included multiple items that reduced the net income by $75 million, or five cents per share, after tax. Earnings fell 16% compared to the same quarter one year earlier, when Regions Financial reported a net income of $261 million, because of the one-time charges, but the full-year net income rose 10% compared to $1.05 billion in 2012.
The one-time charges included $46 million from the transfer of almost $700 million worth of troubled loans to held-for-sale status, as well as $3 million from the consolidation of 30 offices. The company also took a $14 million charge thanks to its sale of brokerage branch Morgan Keegan to Raymond James Financial (RJF). Finally, Regions Financial also dealt with a $58 million regulatory charge, but received a $40 million gain from adjustments tied to the valuation of its debt portfolio.
Regions Financial's earnings per share were at 16 cents in the fourth quarter and 77 cents for the year, compared to 18 cents and 71 cents, respectively, in 2012. Its tangible book value climbed 6% to $7.54 from $7.11 at the end of 2012.
TheStreet Ratings team rates REGIONS FINANCIAL CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate REGIONS FINANCIAL CORP (RF) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income."