SunTrust Banks, Inc. (STI)

klemenv (< 20) Submitted: 5/24/08 1:24 PM : Start Price: $52.01 STI Score: 16.43

SunTrust operates primarily in Florida, Georgia, Maryland, North Carolina, South Carolina, Tennessee, Virginia and the District of Columbia.

Excerpt from their 10-Q:

loan portfolio:

Home equity lines         15.134,3
Construction         12,980.9
Residential mortgages        33,092.4
Commercial real estate        12,893.7

all that supported by $18,431,448 of equity ( $11,221.5 tangible).

Their securities held for sale:
cost fair value
Asset-backed securities         176.4         174.5
Mortgage-backed securities        9,906.1        10,039.6

as you can see, securities have apreciated in value.

Residential mortgages were $33.1 billion, or 26.7% of the total loan portfolio, as of March 31, 2008.
The core mortgage loans are roughly half prime jumbo and half prime ARMs.

Nonperforming assets and loans:

Nonperforming assets totaled $2.3 billion as of March 31, 2008, an increase of $664.5 million, or 40.1%, from December 31, 2007. Nonperforming loans increased $608.5 million, or 41.7%, from December 31, 2007 to March 31, 2008. Of this total increase, nonperforming residential mortgage loans represented $236.7 million, real estate construction loans represented $225.4 million and home equity lines of credit represented $94.4 million.

Real estate, owned by bank:

OREO as of March 31, 2008 was $244.9 million, an increase of $61.2 million, or 33.3%, from December 31, 2007.

STI is not the worst bank, but at best is destined for dilution.

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