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.

News:

 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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