Regions Financial

July 16, 2011 – 6:37 pm

Regions FinancialBusiness Profile
Regions Financial Corporation is a US bank and financial holding firm operating across the Midwest, South and Texas. The Company is a Delaware corporation, chartered in Alabama and headquartered in Birmingham, Alabama. Regions Financial is a member of the Federal Reserve System. Regions Financial’s common stock is listed on the New York Stock Exchange under the ticker “RF”. The Company is engaged in traditional retail and commercial banking, investment and brokerage services, insurance brokerage, mortgage banking, leasing, credit life insurance, factoring of commercial accounts receivable and specialty financing.

As of December 31, 2006, the Company’s total assets amounted to $143.4 billion and total deposits amounted to $101.2 billion.

Regions Financials’ focuses on offering a competitive and comprehensive mix of services and products delivered through a network of branch offices at convenient locations. The Company aims to win clients by personalized attention and through feel of a community bank.

Over the years the Company has grown internally as well as through acquisition. The Company recently completed the merger with AmSouth, a $52 billion financial holding company headquartered in Alabama. As a result of the merger, Regions Financials expects to realize nearly $400 million in cost savings per annum starting 2nd quarter of 2008. Regions also anticipate synergies in revenues owing to better product mix and cross selling opportunities. The Company plan divesture of 52 banking branches with deposits totaling $2.8 billion expected to be closed in 2007.

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Earlier, in July 2004, the Company acquired Union Planters Corporation, headquartered in Tennessee, adding assets of $35.7 billion, deposits of $22.9 billion and loans of $22.3 billion.

In January 2007, the Company agreed to dispose of its non-prime wholesale mortgage division, EquiFirst Corporation to Barclays Bank for an estimated price of $225 million.

The Company’s net interest income increased 18.9% to $3,353 million in 2006 from $2,821 million in 2005.

The Company’s non interest and other income also increased 13.7% to $2,062 million in 2006 compared with $1,813 million in 2005. The Company’s non interest expense increased by a lower 8.8% to $3,314 million in 2006 compared with $3,047 million in 2005. Hence, the Company’s efficiency ratio (non interest expense to total income ratio) improved to 60.0% in 2006 from 64.3% in 2005. Region’s Financial’s net income increased 35.2% to $1,353 million in 2006 from $1,001 million in 2005.

The Company’s total assets increased 69.1% to $143.3 billion as of December 31, 2006 compared with $84.8 billion as of December 31, 2005. During the same period, Regions Financial’s net loans increased 61.9% to $94.6 billion as of December 31, 2006 compared with $58.4 billion as of December 31, 2005.

The Company’s total deposit grew 67.7% to $101.2 billion as of December 31, 2006 compared with $60.4 billion as of December 31, 2005. The Company’s total equity increased 95.0% to $20.7 billion as of December 31, 2006 from $10.6 billion as of December 31, 2005.

The Company as organized itself into four business segments: General Banking and Treasury; Mortgage Banking; Brokerage, Investment Banking and Trust; and Insurance.

General Banking and Treasury: Regions Financial’ General Banking/Treasury business segment provides traditional retail and commercial banking products and services to clients customers throughout the Midwest, South and Texas. The Company’s principal bank subsidiary, Regions Bank, is a state bank chartered in Alabama and operates through a network of banking branches in Florida, Alabama, Arkansas, Georgia, Indiana, Illinois, Kentucky, Iowa, Louisiana, Missouri, Mississippi, South Carolina, North Carolina, Tennessee, Virginia and Texas. The segment also operates the treasury division which include Region’s bond portfolio, indirect mortgage lending unit. In 2006, the General Banking / Treasury segment generated net income of $1.2 billion.

Mortgage Banking: Regions Financial’ mortgage banking segment operates through Regions Mortgage and EquiFirst, which carries out residential mortgage loan origination and servicing. As of December 31, 2006, the segment serviced nearly $43.0 billion in mortgage loans. Total mortgage originated by Regions Mortgage and EquiFirst in 2006 were $5.6 billion and $10.7 billion, respectively.

Brokerage, Investment Banking and Trust: Regions Financial offers investment banking, trust and brokerage services through more than 300 offices of Morgan Keegan & Company, Inc, a leading investment company in the South. The segment provides retail brokerage services to private clients, fixed income and equity capital markets, and asset and trust management. Morgan Keegan accounted for $151.1 million of the Company’s total net income in 2006.

Insurance: The segment offers insurance and insurance related products and services through Regions Insurance Group, Inc. Regions also offer insurance brokerage products and services through Rebsamen Insurance, Inc., which is one of the leading insurance brokers in US. The segment also provides credit life insurance services through affiliates of the Company. The segment accounted for nearly $15.7 million of the total to net income of the Company in 2006.

The Company also has following non bank subsidiary companies:

• Regions Agency, Inc. – Insurance agent and broker

• Regions Life Insurance Company – Re-insurer of credit life insurance and health and accident insurance

• Regions Interstate Billing Service, Inc – Factoring of commercial accounts receivable and carries out collection and billing services

• Regions Equipment Finance Corporation – Offers equipment financing services and products

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