Regions Financial Q1 Profit Declines, Yet Tops Estimates - Update

(RTTNews) - Regions Financial Corp. (RF) Tuesday reported a decline in first-quarter profit, reflecting lower revenues, despite drop in expenses and growth in loans. Earnings per share, however, beat analysts' estimates, while revenues came short of view. For the first quarter, the Birmingham, Alabama-based parent of Regions Bank posted net income available to shareholders of $311 million, lower than $327 million in the previous year. On a per share basis, earnings were $0.22, down from $0.23 per share a year ago. Earnings per share from continuing operations were $0.21 for the recent quarter. On average, 27 analysts polled by Thomson Reuters expected the company to earn $0.20 per share for the quarter. Analysts' estimates typically exclude special items. Total revenues for the quarter marginally declined to $1.25 billion from $1.30 billion in the same quarter last year. Analysts expected revenue of $1.30 billion for the quarter. Net interest income increased to $816 million from $798 million a year earlier. Non-interest income was $438 million, down from $501 million last year. Non-interest expense decreased to $817 million from $842 million last year. The company said its total ending loans increased $1.1 billion from the prior quarter to $76 billion and total new and renewed loan production was up 2 percent year-over-year. Tier 1 capital ratio was 11.9 percent, compared to 12.4 percent in the prior year.

Regions noted that during the quarter, it completed annual Comprehensive Capital Analysis and Review process and received no objection to its planned capital actions, which include increasing the quarterly dividend to $0.05 per share and the repurchase of up to $350 million in common shares. Grayson Hall, chairman, president and CEO of the company said, "We are off to a solid start in 2014 and this quarter's results demonstrate that our focus on identifying and meeting more customer needs is generating steady and sustainable growth."

RF closed Monday's regular trading session at $10.28, up 0.59 percent.