Regions Financial Corp. (RF, Financial) filed Quarterly Report for the period ended 2010-06-30.
Regions Financial Corp. has a market cap of $9.04 billion; its shares were traded at around $7.58 with and P/S ratio of 1. The dividend yield of Regions Financial Corp. stocks is 0.5%.RF is in the portfolios of Bruce Berkowitz of Fairholme Capital Management, Fairholme Fund, Fairholme Fund, Arnold Schneider of Schneider Capital Management, RS Investment Management, HOTCHKIS & WILEY of HOTCHKIS & WILEY Capital Management LLC, Michael Price of MFP Investors LLC, John Paulson of Paulson & Co., Charles Brandes of Brandes Investment, Brian Rogers of T Rowe Price Equity Income Fund, Bruce Kovner of Caxton Associates, Steven Cohen of SAC Capital Advisors, Stanley Druckenmiller of Duquesne Capital Management, LLC, George Soros of Soros Fund Management LLC.
Net interest income on a fully taxable-equivalent basis for the second quarter of 2010 was $863 million compared to $840 million in the second quarter of 2009. The net interest margin (taxable-equivalent basis) was 2.87 percent in the second quarter of 2010, compared to 2.62 percent during the second quarter of 2009. Improved deposit pricing, as well as a favorable mix shift to lower cost products, drove the improvement.
Net charge-offs totaled $651 million, or an annualized 2.99 percent of average loans, in the second quarter of 2010, compared to 2.06 percent for the second quarter of 2009. Charge-offs were higher across most major categories when comparing the 2010 period to the prior year period, with investor real estate representing the most significant driver of the increase. The provision for loan losses totaled $651 million in the second quarter of 2010 compared to $912 million during the second quarter of 2009. The allowance for loan losses at June 30, 2010 was 3.71 percent of total loans, net of unearned income, compared to 3.43 percent at December 31, 2009 and 2.37 percent at June 30, 2009. Total non-performing assets, excluding loans held for sale, at June 30, 2010 were $4.0 billion, compared to $4.1 billion at December 31, 2009 and $3.1 billion at June 30, 2009. As compared to March 31, 2010, total non-performing assets, excluding loans held for sale, decreased $297 million.
Non-interest income for the second quarter of 2010 decreased by $443 million compared to the second quarter of 2009. However, the 2009 period included securities gains of $108 million, leveraged lease termination gains of $189 million, a gain on sale of Visa shares of $80 million, and a $61 million gain on early extinguishment of debt, all of which did not repeat in the 2010 period. These decreases were partially offset by increases in income from service charges on deposit accounts. Service charges will be negatively impacted going forward due to new policies implemented during the second quarter of 2010 as well as regulatory changes.
Total non-interest expense was $1.3 billion and $1.2 billion in the second quarter of 2010 and 2009, respectively. However, the 2009 period included a $64 million FDIC special assessment and securities-related net other-than-temporary impairment charges of $69 million, which did not repeat in the 2010 period. Lower salaries and employee benefits also contributed to the period over period decrease. These decreases were partially offset by higher professional and legal fees, other real estate owned expense, and FDIC premiums. The 2010 period included a $200 million regulatory charge recorded by Morgan Keegan related to regulatory proceedings.
Net charge-offs were an annualized 2.99 percent of home equity loans for the first six months of 2010 compared to an annualized 2.62 percent through the first six months of 2009. Losses in Florida-based credits remained at elevated levels, as unemployment levels remain high and property valuations in certain markets have continued to experience ongoing deterioration. As illustrated in Table 4 Selected Home Equity Portfolio Information, these loans and lines represent approximately $5.4 billion of Regions total home equity portfolio at June 30, 2010. Of that balance, approximately $2.1 billion represent first liens, while second liens, which total $3.3 billion, are the main source of losses. Florida second lien losses were 7.63 percent annualized through the first six months of 2010 as compared to 7.01 percent for the same period of 2009. Through the first six months of 2010, home equity losses in Florida amounted to an annualized 5.87 percent of loans and lines versus 1.31 percent across the remainder of Regions footprint. This compares to the first six months of 2009 losses of 5.44 percent and 1.02 percent, respectively.
Read the The complete Report
Regions Financial Corp. has a market cap of $9.04 billion; its shares were traded at around $7.58 with and P/S ratio of 1. The dividend yield of Regions Financial Corp. stocks is 0.5%.RF is in the portfolios of Bruce Berkowitz of Fairholme Capital Management, Fairholme Fund, Fairholme Fund, Arnold Schneider of Schneider Capital Management, RS Investment Management, HOTCHKIS & WILEY of HOTCHKIS & WILEY Capital Management LLC, Michael Price of MFP Investors LLC, John Paulson of Paulson & Co., Charles Brandes of Brandes Investment, Brian Rogers of T Rowe Price Equity Income Fund, Bruce Kovner of Caxton Associates, Steven Cohen of SAC Capital Advisors, Stanley Druckenmiller of Duquesne Capital Management, LLC, George Soros of Soros Fund Management LLC.
Highlight of Business Operations:
Regions reported a net loss available to common shareholders of $335 million, or $0.28 loss per diluted share in the second quarter of 2010, compared to a net loss available to common shareholders of $244 million, or $0.28 loss per diluted share in the second quarter of 2009. During the second quarter of 2010, Regions recorded a $200 million regulatory charge related to Morgan Keegan regulatory proceedings. Excluding the Morgan Keegan charge, Regions loss was $0.11 per diluted share in the second quarter of 2010. Lower credit costs were the primary driver of the period over period improvement in results of operations, when excluding the regulatory charge (see Table 14 GAAP to Non-GAAP Reconciliation). During the second quarter of 2010, Regions recorded a $651 million provision for loan losses, $261 million lower than the second quarter of 2009. The decrease in provision reflects moderating credit measures, including linked-quarter declines in non-performing loans and net charge-offs.Net interest income on a fully taxable-equivalent basis for the second quarter of 2010 was $863 million compared to $840 million in the second quarter of 2009. The net interest margin (taxable-equivalent basis) was 2.87 percent in the second quarter of 2010, compared to 2.62 percent during the second quarter of 2009. Improved deposit pricing, as well as a favorable mix shift to lower cost products, drove the improvement.
Net charge-offs totaled $651 million, or an annualized 2.99 percent of average loans, in the second quarter of 2010, compared to 2.06 percent for the second quarter of 2009. Charge-offs were higher across most major categories when comparing the 2010 period to the prior year period, with investor real estate representing the most significant driver of the increase. The provision for loan losses totaled $651 million in the second quarter of 2010 compared to $912 million during the second quarter of 2009. The allowance for loan losses at June 30, 2010 was 3.71 percent of total loans, net of unearned income, compared to 3.43 percent at December 31, 2009 and 2.37 percent at June 30, 2009. Total non-performing assets, excluding loans held for sale, at June 30, 2010 were $4.0 billion, compared to $4.1 billion at December 31, 2009 and $3.1 billion at June 30, 2009. As compared to March 31, 2010, total non-performing assets, excluding loans held for sale, decreased $297 million.
Non-interest income for the second quarter of 2010 decreased by $443 million compared to the second quarter of 2009. However, the 2009 period included securities gains of $108 million, leveraged lease termination gains of $189 million, a gain on sale of Visa shares of $80 million, and a $61 million gain on early extinguishment of debt, all of which did not repeat in the 2010 period. These decreases were partially offset by increases in income from service charges on deposit accounts. Service charges will be negatively impacted going forward due to new policies implemented during the second quarter of 2010 as well as regulatory changes.
Total non-interest expense was $1.3 billion and $1.2 billion in the second quarter of 2010 and 2009, respectively. However, the 2009 period included a $64 million FDIC special assessment and securities-related net other-than-temporary impairment charges of $69 million, which did not repeat in the 2010 period. Lower salaries and employee benefits also contributed to the period over period decrease. These decreases were partially offset by higher professional and legal fees, other real estate owned expense, and FDIC premiums. The 2010 period included a $200 million regulatory charge recorded by Morgan Keegan related to regulatory proceedings.
Net charge-offs were an annualized 2.99 percent of home equity loans for the first six months of 2010 compared to an annualized 2.62 percent through the first six months of 2009. Losses in Florida-based credits remained at elevated levels, as unemployment levels remain high and property valuations in certain markets have continued to experience ongoing deterioration. As illustrated in Table 4 Selected Home Equity Portfolio Information, these loans and lines represent approximately $5.4 billion of Regions total home equity portfolio at June 30, 2010. Of that balance, approximately $2.1 billion represent first liens, while second liens, which total $3.3 billion, are the main source of losses. Florida second lien losses were 7.63 percent annualized through the first six months of 2010 as compared to 7.01 percent for the same period of 2009. Through the first six months of 2010, home equity losses in Florida amounted to an annualized 5.87 percent of loans and lines versus 1.31 percent across the remainder of Regions footprint. This compares to the first six months of 2009 losses of 5.44 percent and 1.02 percent, respectively.
Read the The complete Report
