Given the current interest rate environment, SunTrust’s in-store, deposit-gathering branch expansion will likely yield little material benefit.
As credit deteriorates, SunTrust will need to rebuild its reserves, hurting the bottom line. This is made particularly true given its low allowance for loan losses (only .90% of total loans).
$12.5b showing signs of distress and deteriorating very fast
SunTrust's loan portfolio is perhaps dangerously over-concentrated in the Southeast.