Thursday January 3, 09:36 PM
Regions Financial increases 4Q loan loss provision to $360 million
NEW YORK (Thomson Financial) - Regions Financial Corp (NYSE: RF - news) . said late Thursday it plans to increase its loan loss provision to
about $360 million in the fourth quarter of 2007, an increase of about $270 million from the third quarter.
The Birmingham, Ala.-based company said the decision was prompted by weakening credit quality, primarily in its residential builder loan portfolio.
'We are experiencing a sharp slowdown in real estate demand, especially in parts of Florida and Georgia, and are responding aggressively to counter its effects,' said Dowd Ritter, chairman and chief executive officer.
Residential builder loans represent about 8%, or $7.5 billion, of Regions' total portfolio of $95 billion.
Regions also said it expects to record about $131 million of additional pretax charges in the fourth quarter, related to projected losses from investments in Morgan Keegan funds, an antitrust lawsuit settlement and valuation-related expenses.
The stock closed the regular session at $23.27.
Wanfeng Zhou
wz/tk1
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