SunTrust's Lumpy Quarter
SunTrust of Atlanta reported third-quarter net income available to common shareholders of $1.1 billion, or $1.98 a share, which included several special items that the company said added $753 million, or $1.40 a share, to third-quarter earnings:
- A pre-tax gain of $1.9 billion on the preannounced sale of the company's shares in Coca-Cola (KO).
- A $371 million mortgage putback provision, which SunTrust said "increased the mortgage repurchase reserve to a level that is expected to cover the estimated losses on loans sold to Government Sponsored Enterprises ("GSEs") prior to 2009."
- Additional provisions for loan loss reserves of $172 million, on "the sale of $0.5 billion of nonperforming mortgage and commercial real estate loans."
- A $92 million decrease in net interest income, from "the movement of $1.4 billion of delinquent and current student loans and $0.5 billion of delinquent Ginnie Mae loans to loans held for sale."
- A $96 million increase in noninterest expense from "valuation losses related to the planned sale of $0.2 billion of affordable housing investments ."