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$STI 1Q15 10-Q: Efficiency ratio improved to 64.2% from 66.8% in 1Q14. Tangible efficiency ratio improved to 63.9% vs. 66.7% in 1Q15 despite $48MM reduction in commercial loan swap income. Total NPLs declined 3% vs. Dec. 31, 2014 and 34% vs. 1Q14. Net charge-off ratio was 0.30%, generally stable vs. 4Q14 and 1Q14 as charge-offs remained low.
$STI said Anil Cheriyan will retire as chief information officer effective March 31, 2018, following a 36-year career in management consulting and information technology. Scott Case will succeed Cheriyan as CIO, effective Feb. 5, 2018, reporting to SunTrust Chairman and CEO Bill Rogers.
$STI's net interest margin during 4Q17 was 3.17%, up 17Bps from the prior year period. This increase was driven by higher earning asset yields arising from higher benchmark interest rates, continued positive mix shift in the loans held for investment (LHFI) portfolio, and higher securities AFS yields given lower premium amortization expense.
Banker $STI posted 4Q17 net income available to common shareholders of $710MM, or $1.48 per share, up from $448MM, or $0.90 per share in 4Q16. This gain was on the sale of Premium Assignment Corporation ("PAC") subsidiary and tax reform-related items. Total revenue rose 2.4% YoY to $2.26Bil, helped by higher net interest income.
$STI announced that Ellen M. Fitzsimmons will join the company as General Counsel and Corporate EVP, succeeding Raymond D. Fortin who announced his intention to retire. Effective January 8, Fitzsimmons will report to Chairman and CEO Bill Rogers, and serve as Corporate Secretary of the BoD.
Financial services company $STI has raised its prime lending rate by 25 basis points to $4.5%, effective immediately, in response to the rate hike announced by the Federal Reserve. The prime lending rate is a benchmark used to set interest rates on various forms of loans.
$STI said it is opening Commercial Banking representative offices in the Midwest and Southwest regions, naming market presidents in Ohio and Texas. The company appointed Jim Geuther as Cleveland market president, Ben Willingham as Cincinnati market president, and Julia Harman as Dallas–Fort Worth market president.
$STI declared a quarterly cash dividend of $1,022.22 per share on its Perpetual Preferred Stock, Series B. It also declared a cash dividend of $1,468.75 per share on its Perpetual Preferred Stock, Series E. Both dividends are payable on Sept 15, 2017, to shareholders as on Aug 31, 2017.
$STI declared a quarterly cash dividend of $0.40 per common share, payable on Sept 15, 2017, to shareholders as on Aug 31, 2017. The previous quarterly dividend was $0.26 per share. $STI also declared a cash dividend of $1,022.22 per share on its Perpetual Preferred Stock, Series A, payable on Sept 15, 2017, to shareholders as on Aug 31, 2017.
$STI's average loan balances for 2Q17 increased 1% sequentially and 2% year-over-year, driven primarily by growth in consumer lending. Average consumer and commercial deposits rose slightly sequentially and grew 3% compared to 2Q16, driven by growth in demand and time deposits.
$STI's efficiency and tangible efficiency ratios in 2Q17 were 61.2% and 60.6%, respectively, which represent significant improvements compared to the previous quarter. This is driven primarily by seasonal declines in employee benefits costs, ongoing expense management initiatives, and solid revenue growth.
$STI's net interest margin for 2Q17 increased 15 basis points to 3.14% from last year. This was driven by higher earning asset yields arising from higher benchmark interest rates, continued positive mix shift in the loan portfolio, and lower premium amortization in the securities portfolio.
$STI reported a 6% rise in 2Q17 earnings driven by higher revenue. Net income grew to $505MM from $475MM last year. Consistent execution against key strategies resulted in 10% EPS growth to $1.03. Revenue rose 2% to $2.27Bil, on higher net interest income as a result of net interest margin expansion and growth in earning assets.
$STI received no objections from the Federal Reserve after completion of its capital plan review. The plan includes a 54% increase in quarterly dividend from $0.26 to $0.40 per share, beginning in 3Q17 and authorization to buyback $1.32Bil of common stock between July 1, 2017 and June 30, 2018.