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SOURCE SunTrust Banks, Inc.
Includes Settlements Related to Outstanding Legal Matters and Agency Mortgage Repurchase Claims
ATLANTA, Oct. 10, 2013 /PRNewswire/ -- SunTrust Banks, Inc. (NYSE: STI) today announced the resolution of certain legacy mortgage matters, including the settlement of specific legal matters and agency mortgage repurchase claims. The company's third quarter results will be impacted by these matters, as well as other discrete items outlined below. In aggregate, these items will have a negative after-tax impact of $179 million, or $0.33 per share, on the company's third quarter earnings results.
"SunTrust is pleased to have resolved a number of legacy mortgage matters. These settlements reduce uncertainty, further improve our risk profile, and enhance our ability to focus on future growth," said William H. Rogers, Jr., chairman and chief executive officer of SunTrust Banks, Inc.
The following is a summary of the items that will impact third quarter 2013 earnings results. Please refer to the company's October 10, 2013, Form 8-K filing for additional details. SunTrust's third quarter earnings results will be announced on October 18, 2013.
Settlement of Certain Legal Matters
Resolution of Agency Mortgage Repurchase Claims
Valuation of Servicing Advances
Additional detail on the above items may be found in the company's Form 8-K filing posted on its website at www.suntrust.com/investorrelations.
About SunTrust Banks, Inc.
SunTrust Banks, Inc., headquartered in Atlanta, is one of the nation's largest banking organizations, serving a broad range of consumer, commercial, corporate and institutional clients. Its primary businesses include deposit, credit, and trust and investment management services. Through various subsidiaries, the company provides mortgage banking, insurance, brokerage, equipment leasing, and capital markets services. The company operates an extensive branch and ATM network throughout the Southeast and Mid-Atlantic states and a full array of technology-based, 24-hour delivery channels. The company also serves clients in selected markets nationally. SunTrust's Internet address is www.suntrust.com.
Important Cautionary Statement About Forward-Looking Statements
This news release contains forward-looking statements. Statements regarding estimates of the after-tax financial impact of various legal and regulatory matters are forward-looking statements. Forward-looking statements are subject to significant risks and uncertainties. Investors are cautioned against placing undue reliance on such statements. Actual results may differ materially from those set forth in the forward-looking statements. Forward-looking statements are based upon the current beliefs and expectations of management and on information currently available to management. Our statements speak as of the date hereof, and we do not assume any obligation to update these statements or to update the reasons why actual results could differ from those contained in such statements in light of new information or future events. The estimated financial impact of these legal and regulatory matters depends upon (1) the successful negotiation, execution, and delivery of definitive agreements in several matters, (2) the ultimate resolution of certain legal matters which are not yet complete, (3) management's assumptions about the extent to which such amounts may be deducted for tax purposes, (4) the agreement of other necessary parties and (5) our assumptions about the extent to which we can provide consumer relief to satisfy our financial obligations as contemplated by the agreements in principle with the Government. Additional factors that could cause actual results to differ materially from those described in the forward-looking statements can be found in Part I, "Item 1A. Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2012 and in other periodic reports that we file with the SEC.
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