SunTrust Banks (STI) Announces Actions to Improve Profile & Balance Sheet
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SunTrust Banks, Inc. (NYSE: STI) announced a series of actions in the third quarter 2012 that better position the Company for the future.
STI accelerated the termination of the agreements regarding the shares owned in The Coca-Cola Company (NYSE: KO). This will generate a third quarter pre-tax gain of approximately $1.9 billion.
In light of ongoing discussions with Fannie Mae and Freddie Mac, the Company expects to record an estimated $375 million mortgage repurchase provision during the quarter.
SunTrust intends to transfer approximately $3 billion of loans to loans held for sale. The loans include nonperforming mortgage loans, nonperforming commercial real estate loans, delinquent Ginnie Mae loans, and delinquent and current student loans.
SunTrust also intends to sell approximately $200 million of affordable housing investments. As a result, the Company expects to incur a pre-tax loss of approximately $100 million.
STI accelerated the termination of the agreements regarding the shares owned in The Coca-Cola Company (NYSE: KO). This will generate a third quarter pre-tax gain of approximately $1.9 billion.
In light of ongoing discussions with Fannie Mae and Freddie Mac, the Company expects to record an estimated $375 million mortgage repurchase provision during the quarter.
SunTrust intends to transfer approximately $3 billion of loans to loans held for sale. The loans include nonperforming mortgage loans, nonperforming commercial real estate loans, delinquent Ginnie Mae loans, and delinquent and current student loans.
SunTrust also intends to sell approximately $200 million of affordable housing investments. As a result, the Company expects to incur a pre-tax loss of approximately $100 million.
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