SunTrust Reports Fourth Quarter 2011 Results

ATLANTA, Jan. 20, 2012 /PRNewswire/ -- SunTrust Banks, Inc. (NYSE: STI) today reported net income available to common shareholders of $152 million, or $0.28 per average common share, for the fourth quarter of 2011. Earnings per average common share compared favorably to $0.23 for the fourth quarter of 2010 and declined from $0.39 in the third quarter of 2011. Strong loan and deposit growth drove results, and credit quality continued to improve. For the year, earnings were $1.09 per average common share compared to a loss of $0.18 per average common share in 2010. The improvement in annual earnings was due to higher net interest income, lower provision for credit losses, and the repayment of TARP.

"Our client-centric banking approach is driving momentum in our core business fundamentals," said William H. Rogers, Jr., chairman and chief executive officer of SunTrust Banks, Inc. "We experienced healthy loan growth again this quarter, particularly in our commercial and industrial portfolio, which we have targeted for expansion. Our favorable deposit growth and mix trends continued. Additionally, credit quality improved with further declines in net charge-offs and nonperforming loans." Mr. Rogers also noted that, while the Company is still facing some legacy mortgage challenges, it is making progress in its efforts to reduce its expense base and ultimately improve efficiency.

Fourth Quarter 2011 Financial Highlights
Income Statement

Net income available to common shareholders for the fourth quarter of 2011 was $0.28 per average common share compared to earnings of $0.39 per average common share for the prior quarter and $0.23 per average common share for the fourth quarter of 2010.
Earnings per average common share was $1.09 for the full year 2011 compared to a net loss of $0.18 per average common share for 2010. The growth was driven by a lower provision for credit losses, higher net interest income, and the elimination of the TARP preferred dividends. These factors were partially offset by lower mortgage-related revenue, reduced deposit service charges, and higher mortgage and legal expenses.
Total revenue, excluding net gains on the sale of investment securities, declined 8% and 10% compared to the prior quarter and the fourth quarter of 2010, respectively. The sequential quarter decrease was driven by a higher mortgage repurchase provision, a mortgage servicing rights valuation adjustment, and lower card fee income, partially offset by higher net interest income.
Net interest income increased 2% compared to both the prior quarter and the fourth quarter of 2010. Growth was predominantly driven by lower deposit costs as a result of the continued favorable shift in the deposit mix toward low-cost accounts; higher loan balances also contributed.
The net interest margin was 3.46%, a decline of three basis points from the prior quarter due to lower earning asset yields, partially offset by lower rates on interest-bearing liabilities. The net interest margin increased two basis points over the fourth quarter of 2010 due to lower deposit costs.
Noninterest income declined 20% and 30%, respectively, from the prior quarter and the fourth quarter of 2010. The declines from both periods were attributable to an increase in the mortgage repurchase provision, as well as a mortgage servicing rights valuation adjustment arising from anticipated refinance activity from the HARP 2.0 program. Card fees also declined as a result of reduced debit interchange revenue due to regulations that became effective during the fourth quarter of 2011.
Noninterest expense declined 1% compared to the prior quarter and remained stable compared to the fourth quarter of 2010. Lower employee compensation and benefits expense was predominantly offset by increases in credit-related expenses, legal accruals, and severance expense.

Credit Quality

Credit quality continued to improve with net charge-offs, nonperforming loans, and nonperforming assets all declining.
Early stage delinquencies increased due to the acquisition of government-guaranteed student loans; however, when excluding government-guaranteed loans, early stage delinquencies declined.
Net charge-offs declined 4% compared with the prior quarter and 24% compared with the fourth quarter of 2010. The annualized net charge-off ratio was 1.57% for the current quarter.
Nonperforming loans declined 10% during the quarter, the tenth consecutive quarterly decline. Nonperforming loans declined 29% from a year ago.
Provision for credit losses declined. The allowance for loan losses was $2.5 billion, or 2.01% of total loans, as of December 31, 2011. When excluding government-guaranteed loans, the allowance for loan losses was 2.27%.

Balance Sheet

Average loans increased 3% compared to the prior quarter. Commercial & industrial and guaranteed student loans were the primary drivers of the growth, while certain real estate-related loan portfolios continued to decline.
Average client deposits grew to another record level, increasing $2.1 billion, or 2%, compared to the prior quarter. The favorable trend in the deposit mix toward lower-cost accounts continued as demand deposits increased $2.1 billion, or 7%, while higher-cost time deposits declined.
Estimated capital ratios continue to be well above current regulatory requirements, as well as the Basel III proposed guidance. The Tier 1 capital and Tier 1 common ratios were estimated to be 10.95% and 9.25%, respectively, as of December 31, 2011.


Income Statement (presented on a fully taxable-equivalent basis)	4Q 2010			3Q 2011			4Q 2011
(Dollars in millions, except per share data)
Net income	$	185		$	215		$	155
Net income available to common shareholders	114			211			152
Earnings per average common diluted share	0.23			0.39			0.28
Total revenue	2,326			2,196			2,047
Total revenue, excluding net securities gains/losses	2,262			2,194			2,028
Net interest income	1,294			1,293			1,324
Provision for credit losses	512			347			327
Noninterest income	1,032			903			723
Noninterest expense	1,548			1,560			1,547
Net interest margin	3.44		%	3.49		%	3.46		%

Balance Sheet
(Dollars in billions)
Average loans	$	114.9		$	115.6		$	119.5
Average consumer and commercial deposits	119.7			123.0			125.1

Capital
Tier 1 capital ratio(1)	13.67		%	11.10		%	10.95		%
Tier 1 common equity ratio(1)	8.08		%	9.31		%	9.25		Rate This Article: Comment on "SunTrust Reports Fourth Quarter 2011 Results" Your Name Your Comments Verification Code: 5T5P2T Enter Code:	Eaton Vance Tax-Advantaged Global Dividend Opportunities Fund Report of Earnings BOSTON, Jan. 20, 2012 /PRNewswire/ -- Eaton Vance Tax-Advantaged Global Dividend Opportunities Fund (NYSE: ETO), a diversified closed-end investment company, today announced the earnings of the Fund for the three months and the year ended October 31, 2011. The Fund's fiscal year ended on October 31, 2011. For the three months ended October 31, 2011, the Fund had net investment income of $640,562 ($0.044 per share). DDR Corp. Announces Tax Allocations of 2011 Dividend Distributions BEACHWOOD, Ohio, Jan. 13, 2012 /PRNewswire/ -- DDR Corp. (NYSE: DDR) today announced the tax allocations of 2011 dividend distributions on its common shares and three series of preferred shares. (Logo: ) For shareholders of DDR Corp. Flextronics Reports Third Quarter Results SINGAPORE, Jan. 19, 2012 /PRNewswire/ -- Flextronics (NASDAQ: FLEX) today announced results for its third quarter ended December 31, 2011 as follows: Net Sales: $7.5 billion Net Income: $128 million Adjusted; $102 million GAAP Earnings per Share: $0.18 Adjusted; $0.14 GAAP Free Cash Flow of $136 million Third Quarter Results Net sales for the third quarter ended December 31, 2011 decreased $340 million or 4% to $7.5 billion compared to net sales for the quarter ended December 31, 2010 of $7.8 billion. MEMC Announces Preliminary Fourth Quarter 2011 Results ST. PETERS, Mo., Jan. 18, 2012 /PRNewswire/ -- MEMC Electronic Materials, Inc. (NYSE: WFR) today announced preliminary results for the fourth quarter 2011. MEMC now anticipates fourth quarter 2011 GAAP revenue to be in the range of $698 million to $733 million, above the range previously expected and provided in the company's December 8, 2011 restructuring news release. The company anticipates GAAP EPS for the period will be in the range of ($6.50) to ($5.78), slightly lower than the previously announced range of ($6.38) to ($5.20). GAAP EPS includes all charges associated with previously announced restructuring and related charges. MEMC anticipates fourth quarter 2011 non-GAAP revenue will be approximately $753 million to $792 mill ... Subscribe to our Monthly Email Newsletter