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Regions Financing Tr I (RF)Stock (Financial Services Industry, Regional Banks Industry)
[edit] Business and FinancialsRegions Financial doesn’t have any sub-prime exposure. It did have a sub-prime origination business- EquiFirst, but those mortgages were sold servicing-released and not retained on the books. Regions sold EquiFirst to Barclays (BCS) back in 2007. In addition, Regions isn’t exposed to non-traditional mortgages such as option ARMs or loans with teaser rates. Regions' primary concern is its $11.5 billion construction loan portfolio with $447 million in non-performing loans. Regions hasn’t had to take any major write-downs, and earnings have held up in the past several quarters relative to peers. Regions recorded a loan loss provision of 181 million for 1Q08, down from 358 million in 4Q07. RF has been reducing costs through last year’s merger with AmSouth. In the March quarter, merger cost saves totaled 127 million, and management expects total cost saves of 700 million by year-end 2008. In addition, Regions Financial also owns Morgan Keegan, a strong brokerage firm, which will help diversify revenue streams during this downturn. [edit] HistoryRegions Financial Corporation was formed in 1971 as First Alabama Bancshares Inc., Alabama's first multibank holding company. The holding company began operations with a total of $543 million in assets and 40 banking locations in Birmingham, Huntsville, and Montgomery. In 2004, the company merged with Tennessee-based Union-Planters Corp. which created a Top-15 U.S. bank. The company's merger with AmSouth Bancorporation on November 4, 2006, created a large Southeastern bank, ranking as one of the top 10 banks in the nation.[1] References 1. Company website [edit] References
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The Shelf
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