Regions Financial reported a decline in first-quarter earnings, recording a net income of $368 million, down from $612 million a year earlier. The decrease was primarily due to higher credit costs and operating expenses, including a notable $22 million related to ongoing issues with check fraud. The bank, based in Birmingham, Alabama, experienced a rise in fraud incidents after altering its check deposit availability schedule, which inadvertently facilitated fraudulent activities. As a result, the bank has ramped up its fraud prevention measures and expects these expenses to be the highest for the year. Despite these challenges, Regions saw a slight increase in noninterest income, driven by gains in its capital markets business. Credit quality also deteriorated slightly, attributed to specific sectors like restaurants and manufacturing, though the bank anticipates a return to pre-pandemic levels of asset quality.
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