Regions Financial Corp. said Monday that a $275 million tax benefit this quarter will partially offset losses from selling nonperforming assets.
The $144 billion-asset Birmingham, Ala., company said it would sell from $930 million to $1.03 billion of nonperforming assets this quarter and that its loan-loss provision would exceed chargeoffs to reflect "accelerating economic weakness."
Regions said that as result nonperforming assets would total less than the $1.77 billion it reported at Sept. 30. It gave no guidance on its fourth-quarter loan-loss provision.
The company said, however, that earnings would get a boost from the $275 million settlement of a dispute concerning "real estate investment structures" with the Internal Revenue Service.