Regions Financial Assumes Deposits of Failed Bank; Shares Jump
Associated Press
2008-09-02 09:33:41.0
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Shares of Regions Financial Corporation jumped Tuesday after the bank assumed $900 million in deposits from a failed Atlanta area bank.
Shares surged $1.18, or 12.7 percent, to $10.45 in morning trading. The stock is down about 61% this year.
Late Friday, federal regulators declared Alpharetta, Ga.-based Integrity Bank insolvent and the Federal Deposit Insurance Corporation was named receiver. The FDIC later approved Regions' assumption of $900 million of insured and uninsured deposits.
Birmingham-based Regions will serve 23,000 accounts of Integrity Bank and will take over operations of Integrity's five branches in Atlanta, effective Tuesday.
Analysts generally viewed the transaction as a positive for the bank.
(Copyright 2008 by The Associated Press. All Rights Reserved.)
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