Merger costs nip at Regions' profit

Regions Financial Corp. said net income for 2005 was $1 billion, or $2.15 a share, compared with $823.8 million, or $2.19 a share, in 2004.

Net income for 2005 included $115 million, or 25 cents a share, in merger-related costs and other costs, the bank said in a release. Regions acquired Union Planters Corp. in 2004 and converted more than 700 Union Planters bank branches to Regions' systems in 2005.

Regions grew its customer base as a result, the release said, with a 27 percent increase in demand deposit accounts in 2005.

For the fourth quarter, Regions posted net income of $254 million, or 55 cents a share, compared to $235.5 million, or 50 cents a share, in the fourth quarter of 2004.

The company said fourth quarter highlights included higher net interest margins and income from interest, faster core deposit growth, lower operating expenses and improved credit quality.

Regions Financial (NYSE: RF), based in Birmingham, Ala., has 18 Regions Bank offices in the Tampa Bay area, with $487.3 million in deposits on June 30, according to the most recent information available from the Federal Deposit Insurance Corp.

What are people saying about mortgages today:

Rates on 30-year mortgages edged down last week to a seven-month low. Mortgage-giant Freddie Mac reported Thursday that 30-year, fixed-rate mortgages fell to 6.3 percent, down slightly from 6.31 percent two weeks ago. It put rates at the lowest level since they were at 6.24 percent the first week of March.

Bank of Hawaii, Central Pacific Bank, Territorial Savings Bank and Wells Fargo Home Mortgages all cut their 30-year mortgage rates to 5.75 percent this week.

Most people think of a mortgage as a means to an end. After all, you buy a house, not a home loan. But a mortgage is much more than the path to homeownership. It is a financial instrument that must be managed, just like any other financial investment.