"But we must collapse Fifth Third (FITB), KeyCorp (KEY), SunTrust (STI) and Regions Financial (RF) into other banks if we are going to move through this period. We aren't there yet." "FDIC and Treasury at Loggerheads," 6-10-09

Good solid performer, much room to grow

Also trimming its payout is an institution that didn't fare as well in the stress test: SunTrust Banks (STI). It said Friday that it will sell up to $1.25 billion of common stock and cut its quarterly dividend to a penny a share from 10 cents, to help boost its common equity by $2.2 billion. SunTrust also might sell other assets and exchange preferred shares for common stock, to raise more capital.

"Who wouldn't take advantage of this? Fifth Third (FITB)? Suntrust (STI)?" ("A Bevy of Bank Offerings," 5-12-09)

Neutral - Price 17.27 on May 5
by Howe Barnes Hoefer & Arnett

We expect STI will hobble through the credit cycle with worse-than-peer mortgage-related losses...and somewhat better than peer commercial and industrial and commercial-real-estate losses....With shares trading for 65% of projected year-end 2009 [tangible book value per share], dilution risk from limited conversions of senior capital into common is baked into the share price. A draconian loss-rate scenario and conversion scenario including [the Troubled Asset Relief Program] are not baked in, but we think STI avoids that fate. Market cap: $6.1 billion.

own a lot of ko

strong regional bank

I believe in selling a lot of the smaller regionals. I don't know what happens to KeyCorp(KEY), Comerica(CMA), SunTrust(STI), Huntington Bancshares(HBAN), Regions Financial(RF) and Fifth Third(FITB). Maybe they will be turned into zombie banks. Maybe they get seized.

On the bad "bank" list, Cramer included just about every publicly traded bank. He said the banks all need money to survive and are prone to cuts in their dividends. He singled out Citigroup (C), PNC (PNC) and Suntrust (STI) as three recent examples of stocks getting hammered.

In Line - Price 30.04 on Dec. 10
by Fox-Pitt Kelton Caronia Waller

SunTrust will receive an additional $1.4 billion in [Troubled Asset Relief Program] preferred capital and related equity warrants -- on top of its initial participation of $3.5 billion announced Oct. 27. We are lowering our 2008E and 2009E EPS to $2 and [a loss of 65 cents], from $2.02 and $1, respectively. We are also establishing 2010E-EPS of $1.35. In addition to the impact of the preferred dividend and TARP share dilution, our estimates also include expectations of increased credit costs....We believe the valuation reflects most of the negative outlook. But we're lowering our target to 28 (1.1 times projected 2009 tangible book) from 35. Market cap: $10.6 billion.

florida foreclosures

Sun Trust has a long way to go down still. Highly exposed to Florida markets

Headed for book value of $51.45