Dallas, Texas 05/05/2014 (FINANCIALSTRENDS) – In the last week of April, the board of directors of Regions Financial Corporation (NYSE:RF) officially notified the previously announced payout of quarterly dividend of 5 cents per share to its share holders on record as of 13th June on 1st July. The board also approved the roll out of a $350 million stock buyback program which will end on 31st March’15. News about both these developments had been in the public domain since last week of march this year, when it became know that the Federal Reserve had green lighted the above two proposals of the bank as part of the industry wide Comprehensive Capital Analysis and Review program for 2014.
The dividend payout plan comes on back of strong operational results that the bank reported from its 1Q operations on 22nd April. It reported quarter net income of $311 million, which translated into a 42 percent increase over previous quarter and EPS of 22 cents for the same reporting period.
In his statements post the earnings call, Regions Financial Corporation (NYSE:RF) Chairman of the Board, President, Chief Executive Officer of the financial institution O. B. Grayson Hall Jr has been quoted to have highlighted the continued strength in his company’s operations by stating that, “During the quarter we grew loans, we grew deposits and we grew a number of quality households, all while effectively managing expenses. On an ending basis, total loans increased $1.1 billion over the previous quarter and $1.7 billion over the first quarter of last year. Total review and reviewed loan production was up 2% year-over-year. Importantly, loan growth was more broad-based across our product lines.”
He also forecasted a continuation of the build up in its momentum due to the pickup in lending activities to the business sector, driven by a slow and steady revival in the economy, with both the commercial and the industrial sector loans disbursals marking a uptrend in the reporting period.