Profit fell at SunTrust Banks in Atlanta during the third quarter because of higher costs for technology and deposit insurance premiums, as well as an unfavorable yearly comparison.

The $205 billion-asset company said Friday that net income fell 12% to $457 million from a year ago. Revenue rose 9% to $2.2 billion.

The yearly comparison was affected by SunTrust's recognition of discrete benefits in the prior-year quarter, which boosted results by 11 cents per share. Excluding that one-time gain, SunTrust's net income would have risen 2% on a yearly basis.

Net interest income after the loan-loss provision rose 3% to $1.2 billion. The provision rose threefold to $97 million on higher net chargeoffs.

Total loans held for investment rose 6% to $141.5 billion. Commercial and industrial loans, SunTrust's largest segment, rose 4% to $68 billion. SunTrust also posted higher lending for commercial construction, nonguaranteed residential mortgages, guaranteed student loans and credit cards.

Noninterest income rose 10% to $889 million. Investment banking income rose 28% to $147 million. Trading income doubled to $65 million.

SunTrust's mortgage operations also posted significant growth. Mortgage production income doubled to $118 million and mortgage servicing income rose 23% to $49 million.

Noninterest expense rose 11% to $1.4 billion on higher salaries and employee benefits, software costs and higher amortization. SunTrust's Federal Deposit Insurance Corp. premium rose 47% to $47 million. SunTrust also recorded about $30 million in discrete operating loss recoveries. The efficiency ratio worsened to 64.13% from 62.51%.

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