SunTrust Banks Q4 net income $378 million
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The current quarter's results include a $145 million legal provision, or $0.17 per share, related to legacy mortgage matters, to increase legal reserves and complete the resolution of a specific matter.
Excluding the impact of this expense, adjusted earnings per share for the current quarter were $0.88 compared to $0.81, on an adjusted basis, in the prior quarter and $0.77 in the fourth quarter of 2013.
For 2014, SunTrust earned $3.23 per share compared to $2.41 per share for 2013. Adjusted earnings per share were $3.24 for 2014, representing an 18% improvement compared to 2013 adjusted earnings per share of $2.74. Please see Appendix A for reconcilement of non-U.S. GAAP measures.
Q4 net income available to common shareholders was $378 million, or $0.72 per average common diluted share. Excluding the aforementioned legacy mortgage-related expense, net income available to common shareholders was $466 million, or $0.88 per share.
On an adjusted basis, earnings per share increased $0.07, or 9%, compared to the prior quarter and increased $0.11, or 14%, compared to the fourth quarter of 2013.
Total revenues were essentially stable compared to the prior quarter and the fourth quarter of 2013.
On an adjusted basis, earnings per share increased $0.07, or 9%, compared to the prior quarter.
The efficiency and tangible efficiency ratios in the current quarter were 69.0% and 68.4%, respectively, and for 2014 were 66.7% and 66.4%, respectively.
Average total loans for the current quarter increased 2% and 6% compared to the prior quarter and the fourth quarter of 2013, respectively, driven by growth in the C&I, commercial real estate, and consumer loan portfolios.
Average client deposits increased 4% sequentially and 7% compared to the fourth quarter of 2013, with the favorable mix shift toward lower-cost deposits continuing.
Estimated capital ratios continued to be well above regulatory requirements. The Basel I Tier 1 common and Basel III Common Equity Tier 1 ratios were estimated to be 9.6% and 9.7%, respectively, as of December 31, 2014.
During the quarter, the company repurchased $110 million of common shares and issued $500 million of preferred stock.
Book value per share was $41.52, and tangible book value per share was $29.82, both up 2% sequentially. The increase was primarily due to growth in retained earnings. ■