Regions Financial records fourth-quarter loss on $6 billion charge

Birmingham, Ala.-based Regions Financial Corp. today reported a fourth-quarter loss due mainly to a $6 billion goodwill impairment charge to reflect declining value in its banking reporting unit. Regions posted a loss of $6.24 billion, or $9.01 per share, compared with a profit of $70.6 million, 10 cents per share, during the fourth quarter of 2007. Excluding charges tied to merger costs and discontinued operations, Regions lost 35 cents per share doing the fourth quarter. Analysts polled by Thomson Reuters, on average, forecast a loss of 8 cents per share for the quarter. Analysts typically exclude special items from their estimates. Regions has received a $3.5 billion infusion from the U.S. Treasury under the government’s Capital Purchase Program. The program is part of the U.S. Treasury Troubled Asset Relief Program that is designed to encourage U.S. financial institutions to build capital and increase the flow of financing to U.S. businesses and consumers. During the fourth quarter, Regions set aside $1.15 billion to cover loan losses. The bank reserved just $358 million for loan losses during the fourth quarter of 2007.