Higher Loan Loss Provisions Contribute to Regions' Loss

Regions Financial Corp., Montgomery, Ala., a top 20 player in mortgages, swung to a third-quarter loss amid higher loan loss provisions. Regions saw a loss of $377 million, or 32 cents a share, compared with a year-ago profit of $79 million, or 11 cents a share. Loan-loss provisions grew to $1.03 billion from $912 million in the previous quarter and $417 million a year earlier. Net charge-offs — loans the bank doesn't expect to collect — jumped to 2.86% of average net loans from 2.06% and 1.68%, respectively. "The operating environment remains challenging and credit-related costs continue to be elevated," said chief executive Dowd Ritter. "However, the economy appears to have bottomed and that bodes well for customers and for us." Regions ranks 20th among all residential originators, according to the Quarterly Data Report.