SunTrust Banks Inc. (STI) filed Quarterly Report for the period ended 2010-09-30.
Suntrust Banks Inc. has a market cap of $13.59 billion; its shares were traded at around $26.47 with and P/S ratio of 1.4. The dividend yield of Suntrust Banks Inc. stocks is 0.1%.
This is the annual revenues and earnings per share of STI over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of STI.
Highlight of Business Operations:
Despite lingering economic and regulatory uncertainties, we have been positioning our businesses for growth throughout this economic cycle. Those efforts are gaining traction and resulting in improved performance and encouraging operating trends and asset quality indicators. Our third quarter financial performance continued the multi-quarter trend of declining provision for credit losses and also contained a second consecutive quarter of increased total revenues. Both of these factors assisted in achieving a second consecutive quarter of net income. Net income was $153 million and $12 million in the third and second quarters of 2010, respectively. This quarter, net income available to common shareholders was $84 million, or $0.17 per common share, which compares favorably to the net loss of $0.76 per average common share in the third quarter of 2009 and net loss of $0.11 per average common share in the second quarter of 2010. For the nine months ended September 30, 2010, we recorded a net loss available to common shareholders of $201 million, or $0.41 per common share, compared to a net loss available to common shareholders of $1.4 billion, or $3.41 per common share, in the nine months ended September 30, 2009. The nine month period ended September 30, 2009 included a $715 million, after-tax, non-cash goodwill impairment charge. For the nine months ended September 30, 2010, net income was essentially breakeven at $5 million. Our client-focused revenue generation strategies, lower cost funding mix, improved asset quality, and continued expense management discipline contributed to improved operating trends as seen in higher net interest margin, higher core fee income, and stable operating expenses. We believe that the strong foundation we have created, coupled with our client-focused execution, risk mitigation capabilities, and the long-term economic prospects of our markets, position us well for the future. In addition, with solid capital and ample liquidity, we are operating from a strong base and are committed to investing to grow the businesses, managing expenses prudently, and returning to sustained profitability.
During the quarter, we were encouraged by continued improvement in our asset quality metrics. Provision for credit losses, NPLs, and nonperforming assets all declined over the previous three quarters and, as anticipated, early stage delinquencies remained stable. The ALLL remains elevated at 2.69% of total loans, but declined 7 basis points compared to year end, in part due to a $1.4 billion increase in period end total loans. Absent material deterioration in the economy or asset quality metrics, we continue to believe that the ALLL peaked in the first quarter of 2010. We are maintaining reserves that give consideration to the continued economic and real estate value uncertainty but expect the ALLL to continue to trend downward at a pace consistent with improvements in credit quality. The provision for loan losses decreased $82 million compared to the second quarter and $514 million compared to the third quarter of 2009. Net charge-offs declined modestly, decreasing 4% compared to the second quarter of 2010, and decreased $316 million, or 31%, compared to the third quarter of 2009. Total NPLs declined 19% from year end and 7% from the second quarter as a result of charge-offs, transfers to OREO, and reduced inflows into nonaccrual. We expect NPLs to continue to modestly decline in the fourth quarter. Accruing restructured loans increased 53% from year end and 11% from the second quarter. The increase in restructured loans is due to us taking proactive steps to modify loans in order to mitigate losses related to borrowers experiencing financial difficulty. Total TDR growth has slowed compared to prior quarters as a result of a reduced inflow of newly delinquent loans and fewer modifications of more seriously delinquent loans. See additional discussion of credit and asset quality in the Loans, Allowance for Credit Losses, Charge-offs, Provision for Credit Losses, and Nonperforming Assets sections of this MD&A.
Consumer and commercial deposits increased during the quarter and the positive shift in mix to lower cost deposits continued as average balance increases were driven by noninterest-bearing and money market accounts, which increased from the second quarter by 4% and 6%, respectively, providing $3.2 billion in combined growth. Partially offsetting this growth, were NOW and CD balances, which declined roughly $2.4 billion in the quarter on average. Overall, we continue to be very pleased with the enhanced liquidity and lower cost funding that core deposit growth has provided since year end. This increase in deposits has enabled us to reduce our higher-cost funding sources, helping to drive significant reductions in our cost of funds and improvement in net interest margin.