In a quarter it deemed "solid," Regions Financial (NYSE:RF) today reported that its earnings per share rose from $0.18 in the second quarter of last year to $0.21 in the second quarter of this year. That's an increase of 16.7%.
Although the bank saw a $30 million, or 2.4%, decline in its revenue, stemming largely from its mortgage income falling from $69 million to $43 million, it did recognize a 12% gain in its income from continuing operations.
Despite the dip in revenue, this income growth -- from $268 million to $299 million -- was due in large part to a substantial decline in the expenses at Regions Financial, which fell by 7%, to $820 million.
On the business side of things, Regions Financial noted it recognized solid loan growth of $833 million, or 1.1%, over the first quarter. One of the biggest reasons behind this was the bank saw a 22% gain in its new and renewed loan production, resulting from it developing relationships with new customers and growing previously existing ones.
The biggest driver of loan growth was continued expansion of its commercial and industrial loans, which rose by $888 million, or 2.9% over the last three months. Since the second quarter of 2013 its total loans are up 8.3% to stand at $31.4 billion.
"These results demonstrate continued momentum as we effectively execute our business plans," added the president, chairman and CEO of Regions Financial, Grayson Hall, in the announcement. "By focusing on meeting our customers' needs, we are delivering sustainable and diversified revenue growth while controlling expenses and maintaining prudent credit standards."
Regions Financial also saw continued improvement in its credit quality, as its troubled debt restructurings have fallen from $3.4 billion to $1.8 billion over the last year. In addition its net charge-offs ratio has declined from 0.77% to 0.35%.
The bank noted the quarter was one of "steady progress," and the first review reveals the last three months were solid, but unspectacular for this bank.
Bank of America + Apple? This device makes it possible.
Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. But the secret is out, and some early viewers are claiming its destined to change everything from banking to health care. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!
Patrick Morris owns shares of Apple and Bank of America. The Motley Fool recommends Apple and Bank of America. The Motley Fool owns shares of Apple and Bank of America. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.