Regions Financial assumes deposits; shares jump

NEW YORK (AP) - Shares of Regions Financial Corporation jumped today 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 percent 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 today.

Analysts generally viewed the transaction as a positive for the bank.

(Copyright 2008 by The Associated Press. All Rights Reserved.)