Regions Financial of Birmingham, Ala., said it is considering a public offering that could go toward paying off its trust-preferred securities.
The $122 billion-asset company also reported Tuesday that earnings fell 15% from the second quarter but nearly doubled from a year earlier, to $301 million. Regions' loan-loss provision rose 27% from the second quarter, to $33 million. The company's provision totaled $355 million a year earlier.
Noninterest income rose 55% from the second quarter, to $533 million, including $106 million of mortgage-related revenue. Higher noninterest expenses and lower net interest income offset the benefit of higher fee revenue.
Regions (RF), which raised $900 million earlier this year to exit the Troubled Asset Relief Program, said it would consider selling preferred stock "if market conditions are favorable." The company said it would use new capital would for general corporate purposes, including the repurchase of its trust-preferred securities.
A number of banking companies, including BB&T, Fifth Third Bancorp and Huntington Bancshares have repurchased their trust-preferred securities. Under new capital standards from the Dodd-Frank Act set to be phased in next year, banks with at least $15 billion of assets at Dec. 31, 2009, will no longer be able to count those securities as part of Tier 1 capital.
Regions was well-capitalized at Sept. 30 with a Tier 1 capital ratio of 11.5%.