BIRMINGHAM, Alabama -- Regions Financial Corp., the largest bank based in Alabama, said today second-quarter profit soared, on higher loan demand and lending income.
The Birmingham-based bank said net income from continuing operations for common shareholders was $280 million, from $25 million, a year earlier.
Signs of health for the bank that hasn't had an annual profit since 2007 abounded. The provision for bad loans plummeted 78 percent to $26 million, reflecting dramatically reduced expectations for loans not being paid as agreed.
Loans not being paid as agreed for the quarter dropped to 3.57 percent of loans, from 3.97 percent.
During the quarter, Regions reported net income of $4 million from discontinued operations, attributable to the gain on the sale of the Morgan Keegan brokerage unit. Regions sold Morgan Keegan for $1.2 billion to rival Raymond James as part of the money raising effort to pay off a $3.5 billion government investment under the Troubled Assets Relief Program.