Two of the biggest regional banks operating in Chattanooga boosted their earnings in 2016, although higher expenses cut profits slightly in the fourth quarter for SunTrust Banks Inc.
SunTrust, the Atlanta-based bank holding company that operates the second biggest bank in Chattanooga, said Friday it earned $448 million, or 90 cents a share, in the fourth quarter. That was down from the $467 million, or 91 cents a share, the bank earned a year earlier, but was still ahead of the 88 cents per share profits forecast by analysts.
SunTrust said revenue in the fourth quarter rose 7.3 percent to $2.16 billion. But expenses grew by 8.5 percent to offset those gains. The bank also said it set aside $101 million in its provision for credit losses, up from $51 million last year and $97 million in the prior quarter, due to higher net charge-offs and increased loan growth that was partially offset by lower energy-related provisions.
For all of 2016, however, SunTrust's earnings per share increased 1 percent from $3.58 in 2015 to $3.60 in 2016. SunTrust operates 1,367 branches and 2,165 ATMs across the Southeast and Mid-Atlantic states.
Last year "was the fifth consecutive year in which we grew earnings per share, improved efficiency, and increased capital return," said SunTrust CEO William H. Rogers, Jr.
Regions Financial Corp. the Birmingham, Ala.-based banking firm that operates Regions Bank, said Friday its earnings for last year were up 10 percent to $1.1 billion and per-share earnings were up 16 percent for 87 cents per share.
Regions operates the third biggest bank in Chattanooga.
"In a challenging operating environment, we delivered double-digit earnings-per-share growth in 2016, and we remain on track to meet our long-term strategic goals," Regions CEO Grayson Hall said. "Throughout 2016 we streamlined, strengthened and diversified our business, resulting in full-year efficiency gains and solid growth in deposits, net interest income and other financing income and non-interest income."