Regions Financial in Birmingham, Ala., reported an increase in its first-quarter profit, as higher market interest rates and investment securities balances offset lower average loan balances.
Net income at the $126 billion-asset Regions climbed 8% year over year to $278 million and earnings per share increased 15% to 23 cents, beating by a penny the average estimates of analysts as compiled by FactSet Research Systems.
![Regions bank branch](https://arizent.brightspotcdn.com/dims4/default/2851b09/2147483647/strip/true/crop/4272x2848+0+0/resize/740x493!/quality/90/?url=https%3A%2F%2Fsource-media-brightspot.s3.us-east-1.amazonaws.com%2Fd2%2F70%2Fdc65aa71445886afc31155fd2d45%2Fregions-new-concept-branch.jpg)
In a news release Tuesday, the company said that average loans and leases declined 2% to $80.2 billion, as gains in the consumer lending portfolio were offset by a decline in commercial loans. The company’s direct energy and multifamily portfolios fell most sharply, by 21% and 23%.
Net interest income and other financing income remained relatively flat at $881 million. The net interest margin increased 6 basis points from a year earlier to 3.25%.
Noninterest income increased 1% to $510 million.
Noninterest expenses increased 1% to $877 million. They included $1 million in expenses associated with the consolidation of 27 branches set to close in the second quarter, as well as $4 million in severance pay also related to ongoing efficiency efforts.