Regions posts $549 million second-quarter profit

• Regions reported Q2 net income of $549 million and adjusted earnings of $583 million.
• Regions shares were up 2.9% at $32.40 in premarket trading following the results.
• The bank reported loan growth, lower quarterly charge-offs and an expansion of its municipal finance operations.

Regions Financial (NYSE:RF) reported Q2 net income of $549 million and diluted EPS of $0.64, with adjusted earnings of $583 million and adjusted EPS of $0.68.

Reported EPS increased 8% year over year and 3% quarter over quarter, while adjusted EPS rose 13% and 10%, respectively.

Average loans increased 2% from Q1, while ending loans rose 1% as commercial and industrial lending supported growth.

Interest-bearing deposit costs were 1.69%, CET1 was 10.7%, annualized net charge-offs fell to 42 basis points and ACL coverage reached 241% of nonperforming loans.

Following the announcement the Regions Financial share price was up 2.9% at $32.40 in premarket trading.

Wealth Management recorded its fifth record-income quarter in six periods, adding another source of fee-based revenue beyond traditional lending.

Regions completed its acquisition of The Frazer Lanier Company on July 1 to expand municipal finance and capital markets services across its operating footprint.