| SunTrust Reports 2002 Earnings
Mortgage production income jumps January 16, 2003 By MortgageDaily.com staff |
| SunTrust Banks, Inc. reported an increase in its average loans for the fourth quarter, but reported a dip in net income.
The Atlanta, Ga.-based bank reported almost $72.7 billion in average loans during the fourth quarter, an almost 1.4% increase from third quarter’s $71.7 billion. SunTrust’s average loans also are up from fourth quarter 2001’s $69.5 billion. SunTrust acquired the Florida franchise of Huntington Bancshares, Inc. during first quarter 2002, and the fourth quarter loan figures are excluding the impact of that acquisition, SunTrust reported. It reported $68.1 million in mortgage servicing-related losses during the fourth quarter, more than the almost $11 million loss reported during the same time last year. The total servicing-related losses for all of 2002 reached $110.1 million — compared with the $6.1 million total of 2001. SunTrust also reported $103.3 in mortgage production-related income for the fourth quarter, an almost 77.0% increase from last year’s $58.4 million. The total for all of 2002 reached $215.2 million, an almost 16.0% increase from the $186.1 million during 2001. “Not surprisingly, SunTrust’s fourth quarter and full-year results reflected the lower revenues and higher credit quality costs that typically affect bank performance during periods of prolonged economic weakness,” said CEO L. Phillip Humann. “Nonetheless, we delivered a level of earnings that we believe, given the environment, is more than respectable.” SunTrust also reported its average earnings assets at $101.9 billion, which is up 6% from the same time last year, the bank reported. As of Dec. 31, its total assets are at $117.3 billion. SunTrust is a commercial banking organization and operates branches in Alabama, Florida, Georgia, Maryland, Tennessee, Virginia, and the District of Columbia. At Wednesday’s close, shares of SunTrust were trading at $58.12, down $0.71, according to CBSMarketwatch.com. |
