Regions Financial, which has made two deals to buy nonbanks in recent months, is on the lookout for more such acquisitions as it seeks to diversify its revenues.
The $156.1 billion-asset company
Regions executives continue to look for opportunities to make an acquisition, potentially in corporate finance or wealth management, though prices for some companies are quite high, Chief Financial Officer David Turner said in an interview Friday.
“We do like diversification of our revenue stream,” Turner said. “We are trying to get more fee-based revenue sources.”
Earlier on Friday, Regions reported $649 million in noninterest income for the third quarter, down almost 1% from the same period last year but up nearly 5% from the previous three months.
While bank acquisitions are in vogue, Turner said that Regions continues to shun the craze. Large banks have eyed Regions’ primary market in the Southeast, but Regions has no intention to sell, either, according to Turner.
“We revisit the idea with our board every year and just come to the conclusion that we can generate a top return for shareholders by focusing on our plan,” he said.
Regions reported quarterly net income available to shareholders of $624 million, up 24% from a year earlier. Total revenue of $2.6 billion was down almost 2% from the third quarter of 2020.
But in an assist to the bottom line, Regions’ allowance for credit losses was $1 billion smaller than a year ago, landing at $1.5 billion at the end of the third quarter.
“Credit quality has demonstrated incredible resiliency and continues to exceed our expectations,” Regions CEO John Turner said on a call with analysts Friday.
