Home / Daily Dose / Finally, a Bank that Increased Profits in Q1 Print This Post Servicers Navigate the Post-Pandemic World 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago April 22, 2016 1,081 Views Related Articles Earnings Mortgage Servicing Income Profits SunTrust Bank 2016-04-22 Brian Honea Demand Propels Home Prices Upward 2 days ago Share Save Previous: GSEs Further Lighten the Load for Taxpayers Next: Advocates Defend Castro, But. . . in Daily Dose, Featured, News Subscribe Tagged with: Earnings Mortgage Servicing Income Profits SunTrust Bank Sign up for DS News Daily Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago The Best Markets For Residential Property Investors 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Finally, a Bank that Increased Profits in Q1 While most of the nation’s largest banks and investment banking firms reported year-over-year declines in net income during the first quarter, some of them substantial, one bank finally reported an increase in earnings for Q1 on Friday.SunTrust Banks, Inc., reported a net income available to shareholders of $430 million for Q1, or $0.84 per average common diluted share (EPS), which was an increase from Q1 2015’s net income of $411 million (EPS of $0.78). Total revenue was up by 5 percent over-the-year in Q1 from $1.99 billion up to $2.1 billion driven largely by higher net interest income (as a result of loan growth) and net interest margin expansion. Higher mortgage-related and capital markets revenue were also drivers of the bank’s overall increase in revenue, according to SunTrust.“We delivered solid revenue growth this quarter as we continued to meet more client needs across each of our businesses, benefiting from our diverse business model and consistent strategies,” said William H. Rogers, Jr., chairman and CEO of SunTrust Banks, Inc. “This revenue performance, combined with continued expense discipline, resulted in a good start to the year with 8 percent earnings growth. We remain highly focused on improving the financial well-being of our clients and communities and delivering increased value to our shareholders.”SunTrust’s mortgage production income for Q1 was reported at $60 million, up by $7 billion over-the-quarter but down by $23 million over-the-year. The over-the-quarter increase was due to higher refinance activity and slightly higher gain-on-sale margins, while the over-the-year decline was due to reduced refinance activity and a drop in gain-on-sale margins.The bank’s mortgage servicing income, however, spiked both over-the-quarter and over-the-year in Q1. The $62 million servicing income for the first quarter represented an increase from $56 million in Q4 and from $43 million in Q1 2015. The-over-the-year income totaled 44 percent, due to improved net hedge performance and a decline in the servicing asset decay. Other drivers of the growth were higher servicing fees, which were the result of a larger portfolio ($149 billion at the end of Q1 compared to $142 billion at the end of Q1 2015). Drivers of the $6 billion over-the-quarter increase were the combination of improved net hedge performance and a decline in the servicing asset decay—offset by a seasonal reduction in servicing fees, according to SunTrust.Click here to view the complete Q1 earnings report for SunTrust. Servicers Navigate the Post-Pandemic World 2 days ago Demand Propels Home Prices Upward 2 days ago About Author: Brian Honea The Best Markets For Residential Property Investors 2 days ago Brian Honea’s writing and editing career spans nearly two decades across many forms of media. He served as sports editor for two suburban newspaper chains in the DFW area and has freelanced for such publications as the Yahoo! Contributor Network, Dallas Home Improvement magazine, and the Dallas Morning News. He has written four non-fiction sports books, the latest of which, The Life of Coach Chuck Curtis, was published by the TCU Press in December 2014. A lifelong Texan, Brian received his master’s degree from Amberton University in Garland.