- Third-quarter EPS of 33 cents, including 33 cents in mortgage settlement and putback items.
- Excluding charges, operating EPS of 66 cents, missing consensus estimate of 68 cents.
- Net interest margin narrows.
- Average commercial and industrial loans grow slightly from Q2, up 10% from year earlier.
The Atlanta lender reported third-quarter net income available to common shareholders of $179 million, or 33 cents a share, compared to $365 million, or 68 cents a share, in the second quarter, and $1.066 billion, or $1.98 cents a share, in the third quarter of 2012, when the company reported a pre-tax gain of $1.9 billion from the sale of its long-term investment in The Coca-Cola Company (KO).
The third-quarter results were lowered by 33 cents a share, from the following items that were announced on Oct. 10:
- A settlement of mortgage repurchase claims with Freddie Mac (FNCC), resulting in a cash payment by SunTrust of $40 million
- A mortgage putback settlement with Fannie Mae (FNMA) for $373 million, which after adjusting for $145 million in credits to SunTrust for prior loan repurchases resulted in a cash payment by the bank of $228 million
- An agreement to settle claims on SunTrust loans insured by the Federal Housing Administration and also to settle civil claims against the bank under the national mortgage settlement, resulting in a commitment to $500 million in "consumer relief" and a $468 million cash payment
- A settlement with the Federal Reserve, also under the national mortgage settlement, resulting in a fine of $160 million
- A $96 million charge related to the sale of servicing rights on roughly $1 billion in mortgage loans
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