Regions Financial posts $6.24 billion dollar loss

January 20, 2009 by · Leave a Comment
Filed under: Industry News 

Ouch, that is a pretty big hit for a regional bank.  I think we will see many small banks coming under mounting pressure as housing prices continue to decline and job losses increase in 2009.


 Regions Financial Corp. reported its first quarterly loss Tuesday amid the ongoing financial crisis after taking a large hit against its intangible assets, known as goodwill.

The Birmingham, Ala.-based bank posted a $6.24 billion net loss in the fourth quarter, compared with a $70.6 million profit during the same period last year. Loss per share totaled $9.01, compared with earnings of 10 cents a share a year ago.

One primary cause of the losses was a $6 billion goodwill impairment charge, which reflects banks’ declining value during the economic downturn.

Also in the fourth quarter, Regions more than tripled its loan loss reserves to $1.15 billion to cover for soured loans, compared to $358 million for loan losses during the the same period last year.

Regions has more than $146 billion in assets. Regions absorbed $900 million in deposits from Atlanta-based Integrity Bank, which failed in late August 2008.\

Source: Atlanta Business Journal

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