Two supra-regional banks in the DC market did release fourth quarter earnings. SunTrust and BB&T both did report stronger profits in the fourth quarter, and both banks did state that an improvement in credit quality including a reduction in net-charge offs and non-performing loans did accompany a better earnings performance. SunTrust did report a profit of $152 million up from $114 million a year earlier, and BB&T $391 million up from $208 million or an 88% increase over fourth quarter 2010. An improvement in credit quality is only a part of the equation to stronger profits at both institutions, loan growth especially commercial or business lending did support stronger fourth quarter results. BB&T saw loan growth at an annualized rate of 7%, and SunTrust did attribute commercial lending growth as a contributor to fourth quarter results. The return of banking institutions to lending is a positive sign for the marketplace and the overall economy. Outside the DC … [Read more...]