SunTrust boosts second quarter earnings

SunTrust boosts second quarter earnings

July 21st, 2014 by Staff Report in Local - Breaking News

The Suntrust Bank building in downtown Chattanooga.

Photo by Doug Strickland/Times Free Press.

SunTrust Banks, Inc. said today it earned $387 million, or 72 cents per share. in the second quarter.

Results for the Atlanta-based banking company were hurt by one-time expenses from a mortgage settlement announced this spring that cut 9 cents per share from the second quarter earnings. Excluding one-time items, SunTrust earnings were up from a year ago and 5 cents per share above analysts' expectations.

From ongoing operations, SunTrust earned 81 cents per share, up from 68 cents per share in the same period a year earlier. In pre-market trading, SunTrust shares are trading higher today.

SunTrust is Chattanooga's' second biggest bank, behind only First Tennessee Bank.

During the second quarter SunTrust Mortgage took a $204 million charge from the settlement regarding its administration of the federal Home Affordable Modification Program and recorded a $105 million pre-tax gain from the sale of its asset management subsidiary, RidgeWorth Capital Management, Inc.

"Favorable revenue trends, particularly growth in loans, deposits and fee income, coupled with continued expense discipline and further asset quality improvements led to solid core earnings growth this quarter," SunTrust CEO William H. Rogers, Jr., said in a statement. "The sale of RidgeWorth and resolution of certain legacy mortgage matters enable us to further sharpen our efforts to deepen client relationships, expand key businesses, and improve efficiency to benefit our shareholders, clients and communities."