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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.
The bank’s earnings did take a hit because of the 320 million dollar settlement that it agreed to with the federal government to end investigations into their HAMP lending processes and procedures.
Several government agencies had been investigating 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%, compared to the prior quarter. The 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. "The sale of RidgeWorth and resolution of certain legacy mortgage matters enable us to further sharpen our efforts to deepen client relationships, expand key businesses, and improve efficiency to benefit our shareholders, clients and communities.”
