SunTrust Banks Inc.'s third-quarter earnings rose 41%, as the regional bank increased its loans portfolio and shrank the amount it set aside to cover weaker loans.
The Atlanta-based lender, which serves an area that had been hard hit by the real-estate bust, has continued to see its credit quality improve.
SunTrust reported a profit of $215 million, or 39 cents a share, up from $153 million, or 17 cents a share, a year earlier. Revenue fell 5.1% to $2.2 billion.
Analysts polled by Thomson Reuters most recently expected earnings of 35 cents a share on revenue of $2.17 billion.
Loan-loss provisions, used to cover potentially souring loans, fell to $347 million from $615 million a year earlier and $392 million in the previous quarter.
Net charge-offs, or loans lenders don't think are collectible, were down at 1.69% from 2.42% and 1.76%, respectively. Nonperforming loans, or those near default, declined to 2.76% from 3.8% and 3.14%.
Average loans rose 2% from the year earlier, coming in at $115.6 million.
Shares closed Thursday at $19.21. The stock is down 35% year to date.
