SunTrust Banks reported a net income of $457 million or $0.91 per diluted common share in the third quarter. This is down from last quarter’s $475 million or $0.94 per share and last year’s $519 million or $1 per share.

The prior quarter and prior year's quarter were favorably impacted by discrete benefits of $0.05 and $0.11, respectively, according to the bank. Excluding these benefits, earnings per share grew 2% sequentially and year-over-year.

Revenue increased to $2.2 billion in the third quarter, marking an increase of $10 million from last quarter and $78 million from last year. Of that, $7 million was due to an increase in mortgage production income as a result of higher volumes.

“This quarter is another reflection of the success we are having in executing against our core strategies,” SunTrust Chairman and CEO William Rogers said. “Year-to-date, revenue is up 7% and our efficiency ratio and tangible efficiency ratios have improved by 90 and 100 basis points, respectively.”

“Looking ahead, I remain confident in our ability to drive further long-term value for our shareholders and help our clients and communities achieve financial confidence,” Rogers said.

Noninterest income increased $78 million, or 10% from last year, to $889 million, driven primarily by growth in mortgage and capital markets-related income. Residential mortgage is up 7% to $1.8 billion year-over-year. 

The increase is not unexpected, as Fifth Third, BB&TU.S. BancorpGoldman SachsBank of AmericaWells Fargo and JPMorgan Chase, also beat increase their mortgage profiles this quarter, however Citigroup fell short.

What is surprising, however, is that while recent reports show that mortgage delinquencies are decreasing, SunTrust’s total residential nonperforming loans increased from $318 million last year to $429 million this year.  

The number of mortgages in serious delinquency, mortgages that are 90 days or more past due including loans in foreclosure or real estate owned, saw a significant decrease of 20.6% from last year, according to a CoreLogic report. At 1.1 million mortgages, or 2.8%, mortgages in serious delinquency hit its lowest point since Sept. 2007.