Regions Bank has completed the buyout of two portfolios that total more than $1 billion of its branded credit cards from a subsidiary of Bank of America.
The deal, originally announced in June, includes a portfolio consisting of 500,000 existing consumer accounts held by Regions customers and a portfolio with 40,000 business credit card accounts, totally more than $1 billion, the Associated Press reports.
Terms were not disclosed for the deal, which was made between a unit of Regions Financial Corp. and FIA Card Services, which is owned by Bank of America Corp.
Under an interim agreement, FIA Card Services will continue to service the accounts through the middle of 2012.
"This transaction accelerates Regions' efforts to improve the balance between our consumer and commercial loan portfolios and further diversify revenue streams. We plan to grow this business as part of an expanding suite of financial solutions to better serve our customers," John Owen, the senior executive vice president and head of consumer services with Regions, said, according to the AP.
Regions serves customers in 16 states across the South, Midwest and Texas, and through Regions Bank, its subsidiary, operates approximately 1,800 banking offices and 2,200 ATMs.
During afternoon trading on Tuesday, Regions Financial shares slipped 14 cents to $6.16, along with other banks as the market drifted down, the Associated Press reports.