Regions Financial in Birmingham, Ala., reported higher quarterly profit that reflected improved business lending and an increase in fee income.
The $125 billion-asset company said in a press release Tuesday that net income from continuing operations increased by 20% from a year earlier, to $354 million. Earnings per share of 32 cents was 4 cents lower than the mean estimate of analysts compiled by FactSet Research Systems.
Regions recorded a $196 million gain after selling
Net interest income increased by 5%, to $942 million. Total loans increased by 1.8%, to $81 billion, and the net interest margin widened by 14 basis points, to 3.50%.
Commercial and industrial loans, Regions' largest loan category, increased by 5.6%, to $37.4 billion. Total consumer lending was flat, at $31.4 billion, though Regions said it was able to move more loans had higher rates. Commercial real estate loans fell by 4.8%, to $12.2 billion.
Total deposits fell by 3%, to $93.9 billion.
The loan-loss provision increased by 11%, to $84 million.
“We produced solid revenues this quarter as we grew loans while maintaining credit discipline and operating more efficiently,” CEO John Turner said in the release. “These results demonstrate our commitment to continuous improvement and show that our investments in technology and talent are building a stronger company that benefits all stakeholders.”
Noninterest income increased by 7.7%, to $519 million, on higher income from card and ATM fees, and from improvement in capital markets and wealth management services.
Noninterest expense rose by 8.1%, to $922 million. Regions made a $60 million contribution to its charitable foundation during the third quarter. It also recorded $9 million in charges to close branches and pay severance to terminated employees.
