Regions Financial Q4 Earnings Miss Expectations

Regions Financial announced Q4/14 and full-year earnings available to common shareholders of $195 million or $0.14 per share and $1.1 billion, respectively compared to $219 million and $1.1 billion for the same periods a year earlier. On average, analysts polled by Thomson Reuters expected EPS of $0.21 per share for the quarter.

Total revenue in Q4 of $1.27 billion was down from $1.36 billion in Q4/13, primarily as a result of a drop of $78 million in non-interest income. Full year revenue of $5.10 billion was down from $5.28 billion as non-interest income of $1.82 billion was down from $2.02 billion in 2013. The provision for loan losses of $69 million was down 50% from $138 million a year earlier. Regions noted that net charge-offs decreased 46% and non-performing loans declined 23%. The company said it received positive rating actions from four major credit rating agencies that cited improvement in the company’s risk profile.

“The fourth quarter rounded out a solid year in which we grew loans, increased deposit balances, and improved asset quality and capital ratios,” said Grayson Hall, chairman, president and CEO. “As we execute our strategy to deepen relationships with customers and improve efficiencies across our business, we are well-positioned for continued progress in 2015.”

Regions said total ending loan balances increased $3 billion or 4% for the full year. Notably, both the business and consumer lending portfolios increased. Business lending increased 5% led by commercial and industrial loans, which grew by 11%, primarily driven by growth in specialized lending, asset-based lending and geographically broad-based corporate lending. The business lending portfolio totaled $48 billion at the end of the quarter, an increase of $524 million, as production increased 18%. Line utilization increased 40 basis points to 45.3% and commitments for new loans increased 3% from the previous quarter.

To view the full Regions Financial news release, click here.

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