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51
SUNTRUST OVERCOMES
SETTLEMENT TO POST HEALTHY
EARNINGS REPORT
SunTrust Banks, Inc. indicated healthy
earnings moving in a positive direction Monday,
reporting a net income of $387 million for Q2
2014. Earnings year-to-date are up 18 percent
over this point last year.
Earnings for this quarter also included a $105
million gain stemming from the completion of
the sale of RidgeWorth Capital Management,
its asset management subsidiary.
e bank's earnings did take a hit because of
the 320 million dollar settlement that it agreed
to with the federal government to end investiga-
tions into their HAMP lending processes and
procedures.
Several government agencies had been inves-
tigating SunTrust in connection with complaints
that it misled homeowners who sought mortgage
relief from SunTrust through HAMP and failed
to timely process HAMP applications.
Total revenue was $2.2 billion for the current
quarter, up $171 million, or 8 percent, compared
to the previous quarter. e company believes it
has positioned itself well for the future.
"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," said William
Rogers, Jr., chairman and CEO of SunTrust
Banks. "e sale of RidgeWorth and resolution
of certain legacy mortgage matters enable us to
further sharpen our efforts to deepen client re-
lationships, expand key businesses, and improve
efficiency to benefit our shareholders, clients,
and communities."
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By the end of July 2014,
home prices were only
11 perecnt off their June
2006 peak, according
to Black Knight's HPI
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