SunTrust to Record $145M Hit for Legal Expenses in 4Q










SunTrust Banks will provision $145 million in its fourth quarter results for legal expenses related to previously disclosed mortgage issues, the company said in a regulatory filing Monday.

The $183 billion-asset company said the expenses, which amount to 17 cents a share, include an increase in legal reserves, as well as “the final resolution of one matter.” No additional details about the legal case were provided.

SunTrust expects its estimate of total losses from legal matters to drop by roughly the same amount, it said in the filing. The company in November reported anestimated legal liability of up to $300 million.

SunTrust has been weighed down by legal probes in the past year. The company in June agreed a nearly $1 billion settlement with several federal agencies and 49 state attorneys general over violations in the mortgage origination and servicing businesses.

A month later, the company agreed to pay $320 million to settle an investigation into the bank’s administration of loans under the Home Affordable Modification Program.

SunTrust is scheduled to release its fourth quarter results on Jan. 16. It reported a third-quarterprofit of $433 million, a 21% increase from a year earlier.

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