Regions Financial Takes Big Q4 Loss On Brokerage Business
by January 24, 2012 9:17 am 71 views
Arkansas’ second largest bank in terms of market share, Regions Financial, was battered in the fourth quarter and for the full year as charges related to its brokerage business resulted in large losses.
For the fourth quarter, Birmingham-based Regions reported a $602 million net loss, or $0.48 per diluted share. The financial institution said a $731 million non-cash goodwill impairment charge related to its Investment Banking/Brokerage/Trust segment was to blame.
“This impairment charge included $478 million related to discontinued operations and $253 million from continuing operations,” Regions disclosed.
Regions is selling its brokerage business, Morgan Keegan and Co., to Raymond James Financial for $1.18 billion. The sale was announced earlier this month.
Full-year results reflected a net loss of $429 million, or $0.34 per diluted share.
Other key fourth quarter financial highlights included:
- Net interest income was $849 million and net interest margin increased 4 basis points to 3.08 percent.
- Non-interest revenue was $507 million, down 1 percent on a linked quarter basis reflecting lower service charges and mortgage income.
- Non-performing loans, excluding loans held for sale, declined for the seventh straight quarter and were down $338 million or 12 percent compared to the previous quarter.