Oct. 21--Company to shutter 121 branches company-wide

By TONY ADAMS

tadams@ledger-enquirer.com

As it was reporting a $437 million third-quarter loss Tuesday, Regions Financial Corp. said it will close 121 bank branches by early 2010, including one in Columbus.

The Edgewood Columbus office at 3805 Macon Road will shut its doors by Jan. 10, with its operations being consolidated into a newer branch at 5555 Whittlesey Blvd., in the Columbus Park Crossing development, said Regions spokeswoman Evelyn Mitchell.

After the consolidation, there will be three Regions banking centers in Columbus and three in Phenix City.

None of the outlets in nearby Auburn and Opelika, Ala., are affected, she said.

Regions branches typically employ between five and 10 people, Mitchell said.

"We're not anticipating any substantial job losses as a result of that consolidation," she said. "We're working to find positions for associates whenever possible at other area locations."

Birmingham, Ala.-based Regions Financial operates about 1,900 banking offices companywide. Of the 121 branches targeted for closure, 16 are in Georgia and three in Alabama. As of June 30, the company had 310 branches in Georgia and 247 in Alabama.

The move will cost the firm $41 million in one-time expenses, but should yield $21 million in annual savings when completed, it said in a Tuesday filing with the U.S. Securities and Exchange Commission.

Regions' $437 million quarterly loss for the three-month period ended Sept. 30 translated to 37 cents per share. In the same quarter a year ago, the bank reported a profit of $79.5 million, or 11 cents per share.

The bank said its provision for loan losses now tops $1 billion. The company has been hurt by soured residential real-estate loans, but its commercial real-estate portfolio is suffering now as well.

Conversely, the bank said it added 270,000 retail and deposit accounts during the quarter, an increase of 29 percent from the July-September period in 2008.

"The operating environment remains challenging and credit-related costs continue to be elevated," Dowd Ritter, Regions chairman and chief executive officer, said in a statement. "However, the economy appears to have bottomed and that bodes well for customers and for us. Regions will continue to aggressively recognize credit problems preparing for the economic recovery."

Regions Financial oversees $140 billion in assets and has offices in 16 states in the South and Midwest. In trading Tuesday on the New York Stock Exchange, its shares (Ticker: RF) rose 11 cents, or 1.9 percent, to $5.81.

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