Regions Reports Earnings for Third Quarter 2012 Regions Reports Earnings for Third Quarter 2012
Record mortgage income, improved funding mix, commercial and industrial loan growth
BIRMINGHAM, Ala. – (BUSINESS WIRE) – October 23, 2012 – Regions Financial Corporation
(NYSE:RF) today reported earnings for the quarter ending September 30, 2012.
Key points:
? Reported net income available to common shareholders of $301 million or $0.21 per diluted share
as compared to $284 million or $0.20 per diluted share in the second quarter
o Reported net income available to common shareholders from continuing operations was
$312 million or $0.22 per diluted share
? Balance sheet reflects commercial loan growth amid continued customer deleveraging
o Loan growth in the middle market commercial and industrial portfolio continued, with
average loans up 1.5 percent linked quarter, while consumer loans declined 1.3 percent
o Loan yields were down linked quarter to 4.18 percent or 11 basis points
o Deposit costs declined to 28 basis points down 4 basis points from second quarter and 18
basis points from the prior year
o Funding mix continued to improve as average low cost deposits grew $385 million linked
quarter and higher cost time deposits declined $1.6 billion
? Pre-tax pre-provision income1 (PPI) from continuing operations totaled $481 million, a 4 percent
decrease from the prior quarter
o Net interest income totaled $817 million, and the resulting net interest margin was 3.08
percent
o Non-interest revenue from continuing operations was $533 million, a 5 percent increase on a
linked quarter basis primarily related to an increase in mortgage income
o Total revenue was $1.35 billion, an increase of $5 million linked quarter
o Non-interest expenses from continuing operations totaled $869 million, reflecting a 3
percent increase linked quarter
? Asset quality improved
o Non-performing loans, excluding loans held for sale, declined $31 million or 2 percent
linked quarter; inflows of non-performing loans amounted to $463 million
o Net charge-offs were relatively steady linked quarter; loan loss provision of $33 million was
$229 million less than net charge-offs
o Business services criticized loans declined $305 million linked quarter or 6 percent
? Allowance for loan losses as a percentage of loans declined 27 basis points linked quarter to 2.74
percent, while the coverage ratio of non-performing loans decreased 11 basis points to 1.09x
? Strong capital position with an estimated Tier 1 ratio of 11.5 percent and Tier 1 Common ratio1 of
10.5 percent at September 30, 2012
? Liquidity position remains solid with a low loan-to-deposit ratio of 79 percent
? Tangible book value per share was $7.02, an increase of $0.33 from the prior quarter
https://files.shareholder.com/downloads/AMDA-J4ZTD/2134117337x0x607114/59e71b8f-9ad3-43da-a6f7-d83087077846/3Q12%20Earnings%20Release%20-%20v8.pdf
3Q12 Earnings Presentation 168.5 KB
https://files.shareholder.com/downloads/AMDA-J4ZTD/2134117337x0x607112/9d2ae4bf-989c-4a0e-9d81-097c9c53fb24/3Q12%20Conference%20Call%20v3For%20Website.pdf
3Q12 Financial Supplement 210.0 KB
https://files.shareholder.com/downloads/AMDA-J4ZTD/2134117337x0x607113/d5b166ea-d5bf-4eb7-8f5e-ec6b4c94a07b/SUPP3Q12%20v6.pdf
RF Chart
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Analyst Estimates
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