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Regions Financial Q4'18 net income climbs YOY

Birmingham, Ala.-based Regions Financial Corp. on Jan. 18 reported net income applicable to common shareholders of $390.0 million, or 37 cents per share, in the 2018 fourth quarter, rising from net income of $319.0 million, or 27 cents per share, in the same quarter of 2017.

The S&P Global Market Intelligence consensus GAAP EPS estimate for the fourth quarter was 38 cents.

Average total loans rose 1% from the third quarter and rose 3% compared to the same period in 2017 to $81.87 billion.

Total deposits decreased 1% quarter over quarter and shrank 4% compared to the year-ago period to $93.16 billion.

For full year 2018, the company reported net income of $1.70 billion, or $1.54, compared to net income of $1.20 billion, or $1.00 in 2017. Total net income available to common shareholders includes an after-tax gain of $196 million associated with the sale of Regions Insurance reflected within discontinued operations.

The company incurred $7 million of severance expense during the fourth quarter of 2018, as well as $3 million of expenses associated with branch consolidation, property and equipment charges.

Bank-owned life insurance income for the recent quarter amounted to $12 million, down 40% from a year ago due to market volatility.

Capital markets income was $50 million, down 10.7%, which reflects lower merger and acquisition advisory services, fees generated from the placement of permanent financing for real estate customers, and customer interest rate swap income.

Mortgage income decreased 16.7% year over year to $30 million, mainly due to lower secondary marketing gains and lower production.

Staffing levels declined by 1,045 full-time equivalent positions or 5% from the fourth quarter 2017.

During the fourth quarter, the company repurchased 22.0 million common shares, for a total of $370 million, through open market purchases.