Suntrust 4Q13 Earnings Call Notes

This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings.

Commercial Real Estate turned the corner

“we’ve been talking now for several quarters that we sort of turned that inflection point in commercial real estate, where now we’re really starting to see core growth. And as you said, albeit on a small basis, the growth is actually pretty significant and an appreciable part of our total growth. And it’s — the good news is it’s very diverse.”

Letting the CRE team have a long leash

“what I tell the teams is, “Keep growing, and I’ll tell you when to stop.” Because right now, I don’t think we’re going to run up short-term against the limit. And the way that we’re growing the business from diversity in both the size, geography, types of business, I’m not worried about the kind of things that you see in terms of concentration. So I think we’re going to let it run a little bit here the next couple of years, and then we’ll sort of see where we get to from a total portfolio size.”

Balance sheet positioned to benefit when short term rates rise

“If the curve continues to steepen from here or we get the rate rises that we may get as a result of the Fed’s easing coming off in ’15, that’s certainly going to help the margin from thereon. As you know, the way we’re structured is we’ll benefit much more as a company, given our balance sheet structure, if short rates start to go up. And if the Fed does start to bring short rates up in ’15, that will really help us from a net interest income perspective”

No change in short term rates in 2014

“I don’t expect, Marty, that short-term rates are going to move up in 2014 at all. So we’re not preparing ourselves to get significantly asset-sensitive this year. If it happens, that’s great. We’re slightly positioned and we will benefit from that”

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