Regions Financial 1Q Earnings Rise

The regional bank's net income increased to $336.7 million, or 48 cents per share, from $333 million, or 45 cents per share, during the same period a year ago.

Analysts polled by Thomson Financial, on average, forecast earnings of 48 cents per share for the quarter.

Regions Financial booked gains of $91.2 million in the first quarter from the initial public offering of Visa through the sale of common stock owned by the bank and the reversal of certain litigation charges previously taken tied to its ownership stake in Visa.

The bank also booked $91.6 million in gains from the sale of investment securities.

But, like other banks, Regions Financial also had to contend with deterioration in the mortgage and lending markets. Regions Financial set aside $181 million in the first quarter to cover bad loans.

Net charge-offs, loans written off as not being repaid, increased to $125.8 million in the first quarter, from $107.5 million during the previous quarter. The increase in charge-offs was primarily tied to the bank's homebuilder lending portfolio and its home equity portfolio.

Net interest income, the difference between how much it costs a bank to borrow money and how much it receives from lending money to customers fell to $1.03 billion during the first quarter, from $1.18 billion during the year-ago period.

Non-interest income, money derived from fees and other charges, increased to $908.3 million in the first quarter from $696.9 million.