Regions Financial Corp. returned to profitability in the first quarter due to a relatively small loan-loss provision and a number of special items.
Regions' loan-loss provision, at $425 million, was one-third its fourth-quarter size. Net chargeoffs were halved from a quarter earlier, at $390 million. But nonperforming assets continued to grow, rising 35.5% from the fourth quarter, to $2.33 billion. The allowance for loan losses was 1.13 times the amount of nonperforming loans at the end of the first quarter, compared to a 1.74 ratio the quarter earlier.