SunTrust Banks Inc
BB&T and SunTrust Get Regulatory Nod to Merge
BB&T Corporation (BBT) and SunTrust Banks (STI) announced on November 19 that they’d received the necessary regulatory nod for their merger.
Analyzing Tudor Investment’s Top Holdings
Tudor Investment founder Paul Tudor Jones II’s macro investment strategies have helped investors understand the opportunities in various securities.
US Banking Sector: Key Trends and Outlook
Changes in technology have reshaped the banking sector. Banks are increasingly collaborating with fintech firms to improve their customer service.
Utilities: How Analysts Currently Look at these Defensives
Geopolitical tensions and falling Treasury yields hint at an upcoming recession and the utilities sector has outperformed broader markets.
Markets Give a Thumbs Up to ‘True Merger of Equals’
Today, Sun Trust Banks and BB&T announced a merger that would create the sixth largest bank in the United States.
How Many Analysts Have Positive Views on Discover?
In October 2017, Discover Financial Services (DFS) is being covered by 24 analysts. Of those, only one analyst has rated DFS a “strong sell,” and none of them have given it a “sell” rating.
Discover’s Discounted Valuations: A Buying Opportunity?
Discover Financial Services’ (DFS) banking services have been ranked second in terms of customer satisfaction, according to a survey conducted by J.D. Power in August 2017.
The US Is Making Efforts to Simplify Mortgage Disclosures
The CFPB’s mortgage disclosure form initiative has been created mainly to help consumers understand and select the best mortgages for them.
A Look at the Role of the Consumer Financial Protection Bureau
The Consumer Financial Protection Bureau was established to protect consumers’ interests by implementing federal consumer financial laws.
Examining Potential Federal Reserve Rate Hikes
The big question is how many rate hikes we’ll see in upcoming quarters. In September, the Federal Reserve indicated that there could be four rate hikes in 2016.
Understanding Analyst Expectations for Regional versus Large Banks
With ~50% of analysts recommending that investors buy, analysts appear positive about the sector in the long term and a rate hike in December.
Why Analysts Are Bullish on US Banks in the Face of a Fed Rate Hike
With more than 50% buy ratings, analysts seem positive about the financial sector in the long term.
How Does Synovus Financial Compare to Its Peers?
The price-to-book value ratios of Synovus, BB&T, SunTrust Banks, Regions Financial, and Capital Bank Financial are 1.43x, 1.19x, 0.93x, 0.77x, and 1.37x.
How Does First Horizon National Compare to Its Peers?
First Horizon outperformed its peers based on the forward PE ratio and PBV ratio. The ETFs outperformed First Horizon based on the price movement.
First Horizon Reported Mixed Results in 3Q15
First Horizon National has a market cap of $3.23 billion. After the earnings report in 3Q15, it fell by 1.2% to close at $13.80 per share as of October 16, 2015.
Total Loans at Banks Grew 7.6% in First Week of June
In this series, we’ll review the banking sector’s two primary indicators—loan and deposit growth. Total loans are generally made up of commercial and industrial loans, consumer loans, and real estate loans.
Manufacturing Expands at a Faster Rate, Drives Demand for Loans
When manufacturing expands, it’s a positive indicator for overall economic growth. Generally, it results in positive GDP growth.
Banks Set to Profit from Steepening Yield Curve
The yield curve has steepened a bit compared to where it was a week or even a month ago. Investors should consider the yield curve slope an indicator of bank performance.
Interest Rates : A Key Indicator for the Banking Sector
When interest rates rise, banks typically increase the interest they charge for loans faster than what they pay on deposits. This gives an immediate boost to their margins.
Why Does a Flattened Yield Curve Hurt Banks?
Banks benefit from a steeper yield curve, which allows banks to lend on higher long-term rates and borrow on lower short-term rates. This boosts banks’ margins.
Interest Rates Change: A Key Indicator for the Banking Sector
Lower interest rates on a sustained basis have negatively impacted the performance of the US banking sector. Banks are not able to use much deposit pricing strategies to boost margins.
Latest Data: Commercial Banks Record 8% Loan Growth
According to the Fed’s data, total loans for all US commercial banks increased 7.9% in the week ending May 6. Loan growth is vital to banks’ income growth.
Revenue Diversification: A Key Priority for Regions Financial
During 1Q15, Regions Financial (RF) repurchased $102 million of common stock—completing its $350 million 2014 repurchase program.
Regions Financial Records Average Loan and Deposit Growth in 1Q15
In the quarter, Region Financial’s deposit balances increased 4.4% from the same quarter last year, while checking accounts grew 5.7%.
Regions’ Wealth Management Business Posts Strong Growth in 1Q15
Regions Financial’s (RF) Wealth Management revenue increased 10% YoY. Going forward, It intends to focus on growing its wealth management business.
Regions Financial’s Net Income Declines in 1Q15
Regions Financial (RF) reported its first quarter earnings on April 21. While the revenue for the quarter increased by 1% YoY, the net income declined 26%.
KeyCorp’s Asset Quality Is Improving
Higher nonperforming loans (or NPLs) indicate poor asset quality. KeyCorp’s nonperforming loans to end-of-period loans ratio is 0.73.
SunTrust Bank Has a Lower Dividend Yield
SunTrust Bank (STI) paid common dividends totaling $371 million or $0.70 per share in 2014.
Consumer Banking and Wealth Management: SunTrust’s Key Segment
This article focuses on SunTrust’s Consumer Banking and Private Wealth Management segment.
Commercial Loans Drive SunTrust’s Wholesale Banking Growth
The Wholesale Banking segment’s net interest income increased in 2014 compared to 2013.
SunTrust’s Mortgage Banking Focuses on Efficiency Improvement
SunTrust’s Mortgage Banking segment reported a net loss of $56 million for 2014 compared to a net loss of $527 million for 2013.
Commercial Segment Rules SunTrust’s Loan Portfolio
The loan portfolio of SunTrust Bank (STI) has three segments: commercial, residential, and consumer.
SunTrust Bank’s Commercial Lending Experiences Strong Growth
Since 2010, the loan portfolio of SunTrust Bank (STI) has had a compound annual growth rate (or CAGR) of 3.5%. Commercial loans have had a CAGR of 8.2%.
SunTrust Bank’s Deposit Growth Lower than Industry Average
STI’s deposit growth is clearly lagging behind the industry average. Other banks are experiencing strong growth in this area.
Why SunTrust Has Lower Net Interest Margins
SunTrust Bank’s net interest income in 2014 remained stable compared to 2013 as strong loan growth offset the decline in net interest margin.
Why SunTrust Has a Higher Loan-to-Deposit Ratio
The average loan-to-deposit ratio for regional banks is currently 85%–90%. The ratio for SunTrust Bank (STI) is 95%.
Is SunTrust Bank’s Stock Undervalued?
SunTrust Bank’s return on equity is 8%, which is 18% lower than the industry average.
SunTrust: A Leading Bank in the Southeast
SunTrust provides a broad range of consumer and wholesale banking, mortgage banking, and private wealth management services.
Must-Know: Investing in BB&T through ETFs
BB&T is more widely represented in ETFs focused on the banking sector. The SPDR S&P Bank ETF (KBE) has BB&T comprising ~1.6% of its portfolio.
BB&T’s Relative Valuation Is close to the Industry Average
BB&T’s loan and deposit growth is marginally below the industry average. Its ROE and price-to-book ratio are close to the peer average.
BB&T Offers a Higher Dividend Yield Compared to Its Peers
Dividend yield is a company’s annual dividend per share. It’s expressed as a percentage of its share price. Dividend yields are important if you want a regular stream of income.
Why BB&T Has Low Funding Costs Compared to Its Peers
Deposits are the cheapest funding source. Since deposits fund a major chunk of BB&T’s assets, the overall funding costs are low.
BB&T Focuses on Expanding Corporate Banking Services
BB&T is focused on expanding its corporate banking services. It’s adding new industry verticals for lending and investment banking services.
BB&T Is Offering Specialized Lending Services
BB&T’s (BBT) Specialized Lending consists of businesses and subsidiaries that provide specialty finance products. The segment’s net income decreased 5.9%.
BB&T’s Residential Mortgage Banking’s Net Income Declined
BB&T’s (BBT) Residential Mortgage Banking segment’s net interest income for 2014 decreased, primarily due to lower average loan balances.
BB&T’s Residential Mortgage Banking Segment Faces Headwinds
BB&T’s (BBT) Residential Mortgage Banking segment retains and services mortgage loans originated by the Community Banking segment.
BB&T’s Community Banking Is Impacted by Low Interest Rates
BB&T’s Community Banking segment offers a variety of loan and deposit products and other financial services. The segment’s net interest income decreased in 2014.
Analyzing BB&T Corporation’s 6 Operating Segments
BB&T Corporation’s (BBT) operations are divided into six business segments. Community Banking contributes 46% to the total revenue.
BB&T Corporation Is a Leading Bank in the Southeast Region
BB&T Corporation (BBT) is a financial holding company. It conducts its operations primarily through its bank subsidiary—Branch Bank.
Regions Financial has low earnings and dividend growth
Earnings are growing, but at a slow pace. Regions Financial’s (RF) net income increased by 1% in 2014—compared to 2013.
Why inorganic growth works for Regions Financial
A substantial portion of Regions Financial’s growth has been through the acquisition of other financial institutions. The bank was formed in 1971.
Regions Financial focuses on business loans
Regions Financial’s loan portfolio can broadly be classified into business and consumer loans. Business loans account for ~62% of the total loan portfolio.
Why does Regions Financial have a stable net interest margin?
For a bank, the net interest margin is the difference between the interest income generated and the interest paid out as a percentage of interest-earning assets.
What investors should know about Regions Financial Corporation
Regions Financial Corporation is a leading regional bank in the southeastern US. It’s the 17th largest bank in the US—based on assets.
Millennium Management increases its stake in NextEra Energy
Millennium Management increased its stake in renewable energy generator NextEra Energy Inc. (NEE) from 1,789,954 shares to 3,333,627 shares.
Israel Englander’s Millennium Management ups its stake in Perrigo
Millennium Management ups position in Perrigo Company PLC (PRGO) that currently accounts for 1.28% of the fund’s 4Q portfolio.
Millennium Management buys a new position in SunTrust Banks
Millennium Management started a new position in SunTrust Banks (STI) that accounts for 0.15% of the fund’s portfolio.
Millennium Management’s 4Q13 positions in Crown Holdings and more
Founded in 1989 by Israel Englander, Millennium Management is a global investment management firm with approximately $20.1 billion in assets