SunTrust Banks declared a regular quarterly dividend Tuesday, defying some industry analysts who had suggested the Atlanta bank needed to cut or suspend its dividend to preserve capital.

SunTrust, the largest bank based in Georgia, said it will pay a dividend of 77 cents per share Sept. 15, the same level it has paid in recent quarters. The dividend will go to investors who own SunTrust stock as of Sept. 2.

Like other financial stocks, SunTrust's share price has plunged in recent months amid investor jitters about growing piles of problem loans in banks' portfolios, which could lead to big losses, forcing banks to raise capital and take other actions to preserve cash, such as cutting dividends.

SunTrust reacted to investor worries by saying it had no plans to issue new stock or cut its dividend. Instead, the company announced last month that it had agreed to a series of complicated transactions to dispose of a big stake in Coca-Cola to boost its capital.

— Russell Grantham