Form 8-K REGIONS FINANCIAL CORP For: Sep 13
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E-mailUNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): September 13, 2016
REGIONS FINANCIAL CORPORATION
(Exact name of registrant as specified in its charter)
DELAWARE | 001-34034 | 63-0589368 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||
1900 FIFTH AVENUE NORTH
BIRMINGHAM, ALABAMA 35203
(Address, including zip code, of principal executive office)
Registrant’s telephone number, including area code: (800) 734-4667
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ | Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
ITEM 8.01 Other Events.
On September 13, 2016, Regions Financial Corporation ("Regions") announced that Regions Bank and the United States Department of Justice on behalf of the Department of Housing and Urban Development, have executed a final settlement agreement to settle and fully release previously disclosed potential claims related to Regions Bank's underwriting and origination of Federal Housing Administration ("FHA") insured mortgage loans endorsed for FHA insurance between January 1, 2006 and December 31, 2011 that resulted in claims submitted through January 7, 2015. Regions had previously disclosed that it had reached an agreement in principle with the Department of Justice relating to this matter.
Management at Regions Bank made the decision to settle this matter for $52.4 million, without admitting liability, in order to avoid the expense and distraction of potential litigation. Regions was fully reserved for the entire settlement amount as of the end of the second quarter of 2016. Further, Regions' insurers have agreed to reimburse Regions approximately $47 million of such amount. The insurance recovery is expected to be recognized in the third quarter of 2016.
ITEM 9.01 Financial Statements and Exhibits.
(d) Exhibits.
Exhibit Index
Exhibit No. Exhibit
99.1 Press Release of September 13, 2016
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
REGIONS FINANCIAL CORPORATION
By: /s/ Fournier J. Gale, III
Name: Fournier J. Gale, III
Title: Senior Executive Vice President,
General Counsel and Corporate
Secretary
Date: September 13, 2016
EXHIBIT 99.1
Media Contact: Investor Relations Contact:
Evelyn Mitchell Dana Nolan
(205) 264-4551 (205) 264-7040
Regions Financial Reaches Settlement Resolving FHA-Insured Mortgage Matters
BIRMINGHAM, Ala. - Sept. 13, 2016 - Regions Financial Corporation (NYSE: RF) today announced that is has reached a settlement with the United States Department of Justice on behalf of the Department of Housing and Urban Development (HUD) to resolve a previously disclosed inquiry related to residential mortgage loan origination, underwriting and quality control practices for loans insured by the Federal Housing Administration.
The company fully cooperated with the inquiry and has agreed to a $52.4 million settlement, without admitting liability, in order to avoid the expense of potential litigation. Regions established and previously disclosed reserves sufficient to cover this matter; therefore, this settlement will not have a material impact on Regions’ financial condition or results of operations.
Regions is pleased to resolve this inquiry and is committed to maintaining fair, consistent and accurate loan origination practices.
About Regions Financial Corporation
Regions Financial Corporation (NYSE: RF), with $126 billion in assets, is a member of the S&P 500 Index and is one of the nation’s largest full-service providers of consumer and commercial banking, wealth management, mortgage, and insurance products and services. Regions serves customers across the South, Midwest and Texas, and through its subsidiary, Regions Bank, operates approximately 1,600 banking offices and 2,000 ATMs. Additional information about Regions and its full line of products and services can be found at www.regions.com.
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