Date of Report (Date of earliest event reported): | October 22, 2013 |
Georgia | 001-08918 | 58-1575035 |
(State or other jurisdiction | (Commission File Number) | (I.R.S. Employer |
of incorporation) | Identification No.) | |
303 Peachtree Street, N.E., Atlanta, Georgia | 30308 | |
(Address of principal executive offices) | (Zip Code) |
Registrant's telephone number, including area code | (404) 558-7711 |
Not Applicable | ||||
Former name or former address, if changed since last report |
99.1 | Financial data as of September 30, 2013 | |
SUNTRUST BANKS, INC. | |||||
(Registrant) | |||||
Date: | October 22, 2013 | By: /s/ Thomas E. Panther | |||
Thomas E. Panther, | |||||
Senior Vice President, Director of Corporate Finance and Controller |
• | The Company resolved certain legacy legal matters, most notably regarding Federal Housing Administration origination practices and the National Mortgage Servicing Settlement, which negatively impacted noninterest expense by $323 million. |
• | As a result of the repurchase settlements reached with Freddie Mac and Fannie Mae, an additional $63 million was added to the Company's mortgage repurchase reserve, which negatively affected noninterest income. |
• | The Company concluded an expanded review of its servicing advance practices and subsequently increased its allowance for servicing advances, which negatively impacted noninterest expense by $96 million. |
• | Certain tax matters resulted in a combined after-tax benefit of $113 million that positively affected the provision for income taxes. |
• | In aggregate, the above items negatively impacted net income available to common shareholders in the third quarter by $179 million, after-tax, or $0.33 per share. |
• | Net income available to common shareholders was $179 million, or $0.33 per average common diluted share, which was negatively affected by $0.33 per share due to the aforementioned significant items. Excluding these items, earnings per share was $0.66, compared to $0.68 in the prior quarter. |
• | Net interest income was substantially unchanged relative to the previous quarter as six basis points of net interest margin compression was largely offset by growth in average earning assets of 0.5% and one additional day in the current quarter. |
• | Noninterest income decreased compared to the prior quarter due primarily to a significant decline in core mortgage production income, as well as the additional mortgage repurchase provision recognized in conjunction with the agency mortgage repurchase settlements. Investment banking had another strong quarter, and mortgage servicing income also increased relative to the prior quarter. |
• | Noninterest expense increased $346 million compared to the prior quarter due to the resolution of the aforementioned significant items. Excluding the impact of these items, noninterest expense declined $73 million sequentially, primarily due to lower employee compensation and benefits expense. |
• | Average performing loans increased $1.6 billion on a sequential quarter basis with growth across several loan portfolios. Average performing loans were stable compared to the third quarter of last year, as targeted growth in C&I loans offset the impact from the sales of government guaranteed loans in the second half of 2012. |
• | Average client deposits were stable compared to the prior quarter and increased $1.3 billion from the third quarter of last year, with the favorable mix shift toward lower-cost deposits continuing. |
• | Estimated capital ratios continued to be well above regulatory requirements. The Tier 1 common equity ratio was an estimated 9.92%. |
• | In conjunction with its capital plans announced in the first quarter, the Company repurchased an additional $50 million of its common shares during the third quarter and paid a quarterly common stock dividend of $0.10 per share. |
• | The risk profile of the balance sheet continued to improve. Nonperforming loans decreased 9% during the quarter and were 0.83% of total loans at September 30, 2013, compared to 0.94% last quarter and 1.42% for the third quarter of 2012. |
• | Annualized net charge-offs decreased to 0.47% of average loans compared to 0.59% and 1.64% in the prior quarter and the third quarter of last year, respectively. |
• | Current quarter nonperforming loans and net charge-offs were at their lowest levels in six years. |
• | In light of improved credit quality, the provision for credit losses declined 35% compared to the prior quarter and 79% compared to the third quarter of last year. |
Income Statement (presented on a fully taxable-equivalent basis) | 3Q 2012 | 3Q 2013 | |||||
(Dollars in millions, except per share data) | |||||||
Net income available to common shareholders | $1,066 | $179 | |||||
Earnings per average common diluted share | 1.98 | 0.33 | |||||
Total revenue | 3,843 | 1,920 | |||||
Total revenue, excluding net securities gains/losses | 1,902 | 1,920 | |||||
Net interest income | 1,301 | 1,240 | |||||
Provision for credit losses | 450 | 95 | |||||
Noninterest income | 2,542 | 680 | |||||
Noninterest expense | 1,726 | 1,743 | |||||
Net interest margin | 3.38 | % | 3.19 | % | |||
Balance Sheet | |||||||
(Dollars in billions) | |||||||
Average loans | $124.1 | $122.7 | |||||
Average consumer and commercial deposits | 125.4 | 126.6 | |||||
Capital | |||||||
Tier 1 capital ratio(1) | 10.57 | % | 10.95 | % | |||
Tier 1 common equity ratio(1) | 9.82 | % | 9.92 | % | |||
Total average shareholders’ equity to total average assets | 11.76 | % | 12.24 | % | |||
Asset Quality | |||||||
Net charge-offs to average loans (annualized) | 1.64 | % | 0.47 | % | |||
Allowance for loan losses to period end loans | 1.84 | % | 1.67 | % | |||
Nonperforming loans to total loans | 1.42 | % | 0.83 | % |
Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
EARNINGS & DIVIDENDS | |||||||||||||||
Net income | $189 | $1,077 | $918 | $1,602 | |||||||||||
Net income available to common shareholders | 179 | 1,066 | 884 | 1,581 | |||||||||||
Net income available to common shareholders excluding 8-K items announced during the quarter 1 | 358 | 314 | 1,063 | 829 | |||||||||||
Total revenue - FTE 1, 2 | 1,920 | 3,843 | 6,134 | 8,307 | |||||||||||
Total revenue - FTE excluding securities gains, net 1, 2 | 1,920 | 1,902 | 6,132 | 6,334 | |||||||||||
Net income per average common share | |||||||||||||||
Diluted | 0.33 | 1.98 | 1.64 | 2.94 | |||||||||||
Diluted, excluding 8-K items announced during the quarter 1 | 0.66 | 0.58 | 1.97 | 1.54 | |||||||||||
Basic | 0.33 | 1.99 | 1.65 | 2.96 | |||||||||||
Dividends paid per common share | 0.10 | 0.05 | 0.25 | 0.15 | |||||||||||
CONDENSED BALANCE SHEETS | |||||||||||||||
Selected Average Balances | |||||||||||||||
Total assets | $171,838 | $175,282 | $172,061 | $176,679 | |||||||||||
Earning assets | 154,250 | 153,207 | 153,412 | 154,236 | |||||||||||
Loans | 122,672 | 124,080 | 121,649 | 123,332 | |||||||||||
Intangible assets including MSRs | 7,643 | 7,274 | 7,493 | 7,337 | |||||||||||
MSRs | 1,232 | 829 | 1,077 | 901 | |||||||||||
Consumer and commercial deposits | 126,618 | 125,353 | 126,947 | 125,692 | |||||||||||
Brokered time and foreign deposits | 2,007 | 2,237 | 2,083 | 2,252 | |||||||||||
Total shareholders’ equity | 21,027 | 20,619 | 21,138 | 20,450 | |||||||||||
Preferred stock | 725 | 275 | 725 | 275 | |||||||||||
As of | |||||||||||||||
Total assets | 171,777 | ||||||||||||||
Earning assets | 154,849 | ||||||||||||||
Loans | 124,340 | ||||||||||||||
Allowance for loan and lease losses | 2,071 | ||||||||||||||
Consumer and commercial deposits | 126,861 | ||||||||||||||
Brokered time and foreign deposits | 2,022 | ||||||||||||||
Total shareholders’ equity | 21,070 | ||||||||||||||
FINANCIAL RATIOS & OTHER DATA | |||||||||||||||
Return on average total assets | 0.44 | % | 2.45 | % | 0.71 | % | 1.21 | % | |||||||
Return on average common shareholders’ equity | 3.49 | 20.84 | 5.79 | 10.47 | |||||||||||
Return on average tangible common shareholders' equity1 | 5.10 | 30.51 | 8.44 | 15.37 | |||||||||||
Net interest margin 2 | 3.19 | 3.38 | 3.25 | 3.42 | |||||||||||
Efficiency ratio 2 | 90.77 | 44.90 | 73.41 | 57.94 | |||||||||||
Tangible efficiency ratio 1, 2 | 90.46 | 44.47 | 73.12 | 57.48 | |||||||||||
Effective tax rate 4 | NM | 33.82 | 14.12 | 30.71 | |||||||||||
Tier 1 common equity 3 | 9.92 | 9.82 | |||||||||||||
Tier 1 capital 3 | 10.95 | 10.57 | |||||||||||||
Total capital 3 | 13.00 | 12.95 | |||||||||||||
Tier 1 leverage 3 | 9.47 | 8.49 | |||||||||||||
Total average shareholders’ equity to total average assets | 12.24 | 11.76 | 12.29 | 11.57 | |||||||||||
Tangible equity to tangible assets 1 | 8.98 | 8.48 | |||||||||||||
Book value per common share | $37.85 | $37.35 | |||||||||||||
Tangible book value per common share 1 | 26.27 | 25.72 | |||||||||||||
Market price: | |||||||||||||||
High | 36.29 | 30.79 | 36.29 | 30.79 | |||||||||||
Low | 31.59 | 22.34 | 26.93 | 18.07 | |||||||||||
Close | 32.42 | 28.27 | 32.42 | 28.27 | |||||||||||
Market capitalization | 17,427 | 15,232 | |||||||||||||
Average common shares outstanding (000s) | |||||||||||||||
Diluted | 538,850 | 538,699 | 539,488 | 537,538 | |||||||||||
Basic | 533,829 | 534,506 | 534,887 | 533,859 | |||||||||||
Full-time equivalent employees | 26,409 | 28,000 | |||||||||||||
Number of ATMs | 2,846 | 2,914 | |||||||||||||
Full service banking offices | 1,508 | 1,633 | |||||||||||||
1 | See Appendix A for reconcilements of non-GAAP performance measures. |
2 | Total revenue, net interest margin, and efficiency ratios are presented on a fully taxable-equivalent (“FTE”) basis. The FTE basis adjusts for the tax-favored status of net interest income from certain loans and investments. The Company believes this measure to be the preferred industry measurement of net interest income and it enhances comparability of net interest income arising from taxable and tax-exempt sources. Total revenue - FTE equals net interest income on a FTE basis plus noninterest income. |
3 | Current period tier 1 common equity, tier 1 capital, total capital, and tier 1 leverage ratios are estimated as of October 18, 2013. |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30 | September 30 | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Interest income | $1,339 | $1,445 | $4,045 | $4,471 | |||||||||||
Interest expense | 131 | 174 | 405 | 615 | |||||||||||
NET INTEREST INCOME | 1,208 | 1,271 | 3,640 | 3,856 | |||||||||||
Provision for credit losses | 95 | 450 | 453 | 1,067 | |||||||||||
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES | 1,113 | 821 | 3,187 | 2,789 | |||||||||||
NONINTEREST INCOME | |||||||||||||||
Service charges on deposit accounts | 168 | 172 | 492 | 504 | |||||||||||
Trust and investment management income | 133 | 127 | 387 | 387 | |||||||||||
Retail investment services | 68 | 60 | 198 | 180 | |||||||||||
Other charges and fees | 91 | 97 | 277 | 305 | |||||||||||
Investment banking income | 99 | 83 | 260 | 230 | |||||||||||
Trading income | 33 | 19 | 124 | 145 | |||||||||||
Card fees 1 | 77 | 74 | 231 | 239 | |||||||||||
Mortgage production related (loss)/income | (10 | ) | (64 | ) | 282 | 102 | |||||||||
Mortgage servicing related income | 11 | 64 | 50 | 215 | |||||||||||
Other noninterest income/(loss) | 10 | (31 | ) | 98 | 78 | ||||||||||
Net securities gains | — | 1,941 | 2 | 1,973 | |||||||||||
Total noninterest income | 680 | 2,542 | 2,401 | 4,358 | |||||||||||
NONINTEREST EXPENSE | |||||||||||||||
Employee compensation and benefits | 682 | 780 | 2,178 | 2,340 | |||||||||||
Net occupancy expense | 86 | 92 | 261 | 267 | |||||||||||
Outside processing and software | 190 | 171 | 555 | 527 | |||||||||||
Equipment expense | 45 | 49 | 136 | 140 | |||||||||||
Marketing and customer development | 34 | 75 | 95 | 134 | |||||||||||
Amortization/impairment of intangible assets/goodwill | 6 | 17 | 18 | 39 | |||||||||||
Net loss on extinguishment of debt | — | 2 | — | 15 | |||||||||||
Operating losses | 350 | 71 | 461 | 200 | |||||||||||
FDIC premium/regulatory exams | 45 | 67 | 140 | 179 | |||||||||||
Other noninterest expense | 305 | 402 | 659 | 972 | |||||||||||
Total noninterest expense | 1,743 | 1,726 | 4,503 | 4,813 | |||||||||||
INCOME BEFORE (BENEFIT)/PROVISION FOR INCOME TAXES | 50 | 1,637 | 1,085 | 2,334 | |||||||||||
(Benefit)/provision for income taxes | (146 | ) | 551 | 151 | 710 | ||||||||||
INCOME INCLUDING INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST | 196 | 1,086 | 934 | 1,624 | |||||||||||
Net income attributable to noncontrolling interest | 7 | 9 | 16 | 22 | |||||||||||
NET INCOME | $189 | $1,077 | $918 | $1,602 | |||||||||||
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS | $179 | $1,066 | $884 | $1,581 | |||||||||||
Net interest income - FTE 2 | 1,240 | 1,301 | 3,733 | 3,949 | |||||||||||
Net income per average common share | |||||||||||||||
Diluted | 0.33 | 1.98 | 1.64 | 2.94 | |||||||||||
Basic | 0.33 | 1.99 | 1.65 | 2.96 | |||||||||||
Cash dividends paid per common share | 0.10 | 0.05 | 0.25 | 0.15 | |||||||||||
Average common shares outstanding (000s) | |||||||||||||||
Diluted | 538,850 | 538,699 | 539,488 | 537,538 | |||||||||||
Basic | 533,829 | 534,506 | 534,887 | 533,859 | |||||||||||
September 30 | December 31 | |||||
2013 | 2012 | |||||
ASSETS | ||||||
Cash and due from banks | $3,041 | $7,134 | ||||
Federal funds sold and securities borrowed or purchased under agreements to resell | 1,222 | 1,101 | ||||
Interest-bearing deposits in other banks | 23 | 22 | ||||
Trading assets | 5,731 | 6,049 | ||||
Securities available for sale | 22,626 | 21,953 | ||||
Loans held for sale | 2,462 | 3,399 | ||||
Loans held for investment: | ||||||
Commercial and industrial | 55,943 | 54,048 | ||||
Commercial real estate | 4,755 | 4,127 | ||||
Commercial construction | 737 | 713 | ||||
Residential mortgages - guaranteed | 3,527 | 4,252 | ||||
Residential mortgages - nonguaranteed | 24,106 | 23,389 | ||||
Residential home equity products | 14,826 | 14,805 | ||||
Residential construction | 582 | 753 | ||||
Consumer student loans - guaranteed | 5,489 | 5,357 | ||||
Consumer other direct | 2,670 | 2,396 | ||||
Consumer indirect | 11,035 | 10,998 | ||||
Consumer credit cards | 670 | 632 | ||||
Total loans held for investment | 124,340 | 121,470 | ||||
Allowance for loan and lease losses | (2,071 | ) | (2,174 | ) | ||
Net loans held for investment | 122,269 | 119,296 | ||||
Goodwill | 6,369 | 6,369 | ||||
Other intangible assets | 1,287 | 956 | ||||
Other real estate owned | 196 | 264 | ||||
Other assets | 6,551 | 6,899 | ||||
Total assets1 | $171,777 | $173,442 | ||||
LIABILITIES | ||||||
Deposits: | ||||||
Noninterest-bearing consumer and commercial deposits | $39,006 | $39,481 | ||||
Interest-bearing consumer and commercial deposits: | ||||||
NOW accounts | 25,495 | 27,617 | ||||
Money market accounts | 43,106 | 42,846 | ||||
Savings | 5,778 | 5,314 | ||||
Consumer time | 8,742 | 9,569 | ||||
Other time | 4,734 | 5,353 | ||||
Total consumer and commercial deposits | 126,861 | 130,180 | ||||
Brokered time deposits | 2,022 | 2,136 | ||||
Foreign deposits | — | — | ||||
Total deposits | 128,883 | 132,316 | ||||
Funds purchased | 934 | 617 | ||||
Securities sold under agreements to repurchase | 1,574 | 1,574 | ||||
Other short-term borrowings | 4,479 | 3,303 | ||||
Long-term debt | 9,985 | 9,357 | ||||
Trading liabilities | 1,264 | 1,161 | ||||
Other liabilities | 3,588 | 4,129 | ||||
Total liabilities | 150,707 | 152,457 | ||||
SHAREHOLDERS’ EQUITY | ||||||
Preferred stock, no par value | 725 | 725 | ||||
Common stock, $1.00 par value | 550 | 550 | ||||
Additional paid in capital | 9,117 | 9,174 | ||||
Retained earnings | 11,573 | 10,817 | ||||
Treasury stock, at cost, and other | (579 | ) | (590 | ) | ||
Accumulated other comprehensive (loss)/income | (316 | ) | 309 | |||
Total shareholders’ equity | 21,070 | 20,985 | ||||
Total liabilities and shareholders’ equity | $171,777 | $173,442 | ||||
Common shares outstanding | 537,549 | 538,959 | ||||
Common shares authorized | 750,000 | 750,000 | ||||
Preferred shares outstanding | 7 | 7 | ||||
Preferred shares authorized | 50,000 | 50,000 | ||||
Treasury shares of common stock | 12,372 | 10,962 |
SunTrust Banks, Inc. and Subsidiaries CONSOLIDATED DAILY AVERAGE BALANCES, AVERAGE YIELDS EARNED AND RATES PAID (Dollars in millions; yields on taxable-equivalent basis) (Unaudited) | |||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||
September 30, 2013 | September 30, 2012 | ||||||||||||||||||||
Average Balances | Interest Income/ Expense | Yields/ Rates | Average Balances | Interest Income/ Expense | Yields/ Rates | ||||||||||||||||
ASSETS | |||||||||||||||||||||
Loans: | |||||||||||||||||||||
Commercial and industrial - FTE 1 | $54,666 | $535 | 3.88 | % | $51,923 | $578 | 4.43 | % | |||||||||||||
Commercial real estate | 4,615 | 37 | 3.18 | 4,525 | 41 | 3.56 | |||||||||||||||
Commercial construction | 704 | 6 | 3.38 | 784 | 7 | 3.74 | |||||||||||||||
Residential mortgages - guaranteed | 3,526 | 28 | 3.14 | 5,432 | 37 | 2.76 | |||||||||||||||
Residential mortgages - nonguaranteed | 23,258 | 238 | 4.09 | 22,905 | 256 | 4.47 | |||||||||||||||
Home equity products | 14,549 | 133 | 3.63 | 14,866 | 138 | 3.68 | |||||||||||||||
Residential construction | 529 | 7 | 4.88 | 667 | 9 | 5.44 | |||||||||||||||
Guaranteed student loans | 5,453 | 52 | 3.81 | 7,183 | 71 | 3.92 | |||||||||||||||
Other direct | 2,563 | 28 | 4.33 | 2,266 | 25 | 4.35 | |||||||||||||||
Indirect | 11,069 | 94 | 3.36 | 10,584 | 102 | 3.84 | |||||||||||||||
Credit cards | 656 | 16 | 9.73 | 577 | 14 | 9.87 | |||||||||||||||
Nonaccrual | 1,084 | 6 | 2.37 | 2,368 | 8 | 1.37 | |||||||||||||||
Total loans | 122,672 | 1,180 | 3.81 | 124,080 | 1,286 | 4.12 | |||||||||||||||
Securities available for sale: | |||||||||||||||||||||
Taxable | 22,494 | 140 | 2.49 | 20,424 | 140 | 2.74 | |||||||||||||||
Tax-exempt - FTE 1 | 243 | 3 | 5.16 | 350 | 5 | 5.29 | |||||||||||||||
Total securities available for sale | 22,737 | 143 | 2.52 | 20,774 | 145 | 2.78 | |||||||||||||||
Federal funds sold and securities borrowed or purchased under agreements to resell | 1,029 | — | 0.01 | 952 | — | 0.05 | |||||||||||||||
Loans held for sale | 3,344 | 30 | 3.58 | 3,294 | 29 | 3.48 | |||||||||||||||
Interest-bearing deposits | 22 | — | 0.11 | 21 | — | 0.26 | |||||||||||||||
Interest earning trading assets | 4,446 | 18 | 1.64 | 4,086 | 15 | 1.49 | |||||||||||||||
Total earning assets | 154,250 | 1,371 | 3.53 | 153,207 | 1,475 | 3.83 | |||||||||||||||
Allowance for loan and lease losses | (2,112 | ) | (2,193 | ) | |||||||||||||||||
Cash and due from banks | 3,867 | 4,579 | |||||||||||||||||||
Other assets | 14,396 | 14,810 | |||||||||||||||||||
Noninterest earning trading assets | 1,389 | 2,172 | |||||||||||||||||||
Unrealized gains on securities available for sale, net | 48 | 2,707 | |||||||||||||||||||
Total assets | $171,838 | $175,282 | |||||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||||||||||
Interest-bearing deposits: | |||||||||||||||||||||
NOW accounts | $25,435 | $4 | 0.06 | % | $24,810 | $6 | 0.09 | % | |||||||||||||
Money market accounts | 43,019 | 13 | 0.12 | 41,517 | 21 | 0.20 | |||||||||||||||
Savings | 5,802 | 1 | 0.04 | 5,190 | 1 | 0.09 | |||||||||||||||
Consumer time | 8,895 | 25 | 1.12 | 10,202 | 32 | 1.26 | |||||||||||||||
Other time | 4,830 | 15 | 1.26 | 5,771 | 21 | 1.42 | |||||||||||||||
Total interest-bearing consumer and commercial deposits | 87,981 | 58 | 0.26 | 87,490 | 81 | 0.37 | |||||||||||||||
Brokered time deposits | 1,989 | 12 | 2.44 | 2,189 | 17 | 3.03 | |||||||||||||||
Foreign deposits | 18 | — | 0.11 | 48 | — | 0.17 | |||||||||||||||
Total interest-bearing deposits | 89,988 | 70 | 0.31 | 89,727 | 98 | 0.43 | |||||||||||||||
Funds purchased | 505 | — | 0.09 | 701 | — | 0.11 | |||||||||||||||
Securities sold under agreements to repurchase | 1,885 | 1 | 0.13 | 1,461 | 1 | 0.18 | |||||||||||||||
Interest-bearing trading liabilities | 720 | 5 | 2.58 | 702 | 4 | 2.62 | |||||||||||||||
Other short-term borrowings | 5,222 | 3 | 0.27 | 6,664 | 5 | 0.30 | |||||||||||||||
Long-term debt | 9,891 | 52 | 2.06 | 11,734 | 66 | 2.23 | |||||||||||||||
Total interest-bearing liabilities | 108,211 | 131 | 0.48 | 110,989 | 174 | 0.62 | |||||||||||||||
Noninterest-bearing deposits | 38,637 | 37,863 | |||||||||||||||||||
Other liabilities | 3,486 | 4,832 | |||||||||||||||||||
Noninterest-bearing trading liabilities | 477 | 979 | |||||||||||||||||||
Shareholders’ equity | 21,027 | 20,619 | |||||||||||||||||||
Total liabilities and shareholders’ equity | $171,838 | $175,282 | |||||||||||||||||||
Interest Rate Spread | 3.05 | % | 3.21 | % | |||||||||||||||||
Net Interest Income - FTE 1 | $1,240 | $1,301 | |||||||||||||||||||
Net Interest Margin 2 | 3.19 | % | 3.38 | % | |||||||||||||||||
SunTrust Banks, Inc. and Subsidiaries CONSOLIDATED DAILY AVERAGE BALANCES, AVERAGE YIELDS EARNED AND RATES PAID, continued (Dollars in millions; yields on taxable-equivalent basis) (Unaudited) | |||||||||||||||||||||
Nine Months Ended | |||||||||||||||||||||
September 30, 2013 | September 30, 2012 | ||||||||||||||||||||
Average Balances | Interest Income/ Expense | Yields/ Rates | Average Balances | Interest Income/ Expense | Yields/ Rates | ||||||||||||||||
ASSETS | |||||||||||||||||||||
Loans: | |||||||||||||||||||||
Commercial and industrial - FTE 1 | $54,310 | $1,635 | 4.03 | % | $50,758 | $1,754 | 4.62 | % | |||||||||||||
Commercial real estate | 4,325 | 107 | 3.31 | 4,614 | 126 | 3.65 | |||||||||||||||
Commercial construction | 665 | 18 | 3.53 | 855 | 25 | 3.83 | |||||||||||||||
Residential mortgages - guaranteed | 3,789 | 81 | 2.86 | 5,920 | 137 | 3.08 | |||||||||||||||
Residential mortgages - nonguaranteed | 22,708 | 717 | 4.21 | 22,521 | 775 | 4.59 | |||||||||||||||
Home equity products | 14,424 | 393 | 3.64 | 15,071 | 416 | 3.69 | |||||||||||||||
Residential construction | 567 | 21 | 4.97 | 704 | 27 | 5.22 | |||||||||||||||
Guaranteed student loans | 5,397 | 155 | 3.84 | 7,229 | 211 | 3.89 | |||||||||||||||
Other direct | 2,466 | 81 | 4.39 | 2,184 | 72 | 4.39 | |||||||||||||||
Indirect | 11,046 | 284 | 3.43 | 10,329 | 302 | 3.90 | |||||||||||||||
Credit cards | 630 | 46 | 9.69 | 553 | 43 | 10.26 | |||||||||||||||
Nonaccrual | 1,322 | 27 | 2.71 | 2,594 | 22 | 1.13 | |||||||||||||||
Total loans | 121,649 | 3,565 | 3.92 | 123,332 | 3,910 | 4.23 | |||||||||||||||
Securities available for sale: | |||||||||||||||||||||
Taxable | 22,514 | 421 | 2.49 | 22,406 | 507 | 3.01 | |||||||||||||||
Tax-exempt - FTE 1 | 266 | 10 | 5.19 | 382 | 15 | 5.35 | |||||||||||||||
Total securities available for sale | 22,780 | 431 | 2.53 | 22,788 | 522 | 3.05 | |||||||||||||||
Federal funds sold and securities borrowed or purchased under agreements to resell | 1,075 | — | 0.02 | 869 | — | 0.03 | |||||||||||||||
Loans held for sale | 3,544 | 90 | 3.37 | 3,099 | 84 | 3.60 | |||||||||||||||
Interest-bearing deposits | 22 | — | 0.10 | 21 | — | 0.24 | |||||||||||||||
Interest earning trading assets | 4,342 | 52 | 1.59 | 4,127 | 48 | 1.55 | |||||||||||||||
Total earning assets | 153,412 | 4,138 | 3.61 | 154,236 | 4,564 | 3.95 | |||||||||||||||
Allowance for loan and lease losses | (2,144 | ) | (2,314 | ) | |||||||||||||||||
Cash and due from banks | 4,258 | 4,621 | |||||||||||||||||||
Other assets | 14,361 | 14,987 | |||||||||||||||||||
Noninterest earning trading assets | 1,667 | 2,221 | |||||||||||||||||||
Unrealized gains on securities available for sale, net | 507 | 2,928 | |||||||||||||||||||
Total assets | $172,061 | $176,679 | |||||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||||||||||
Interest-bearing deposits: | |||||||||||||||||||||
NOW accounts | $25,941 | $13 | 0.07 | % | $25,009 | $18 | 0.10 | % | |||||||||||||
Money market accounts | 42,621 | 42 | 0.13 | 41,983 | 70 | 0.22 | |||||||||||||||
Savings | 5,713 | 2 | 0.05 | 5,073 | 4 | 0.11 | |||||||||||||||
Consumer time | 9,158 | 78 | 1.14 | 10,888 | 116 | 1.43 | |||||||||||||||
Other time | 5,036 | 50 | 1.32 | 6,110 | 72 | 1.58 | |||||||||||||||
Total interest-bearing consumer and commercial deposits | 88,469 | 185 | 0.28 | 89,063 | 280 | 0.42 | |||||||||||||||
Brokered time deposits | 2,037 | 39 | 2.53 | 2,222 | 62 | 3.65 | |||||||||||||||
Foreign deposits | 46 | — | 0.14 | 30 | — | 0.17 | |||||||||||||||
Total interest-bearing deposits | 90,552 | 224 | 0.33 | 91,315 | 342 | 0.50 | |||||||||||||||
Funds purchased | 625 | 1 | 0.10 | 793 | 1 | 0.11 | |||||||||||||||
Securities sold under agreements to repurchase | 1,824 | 2 | 0.15 | 1,580 | 2 | 0.17 | |||||||||||||||
Interest-bearing trading liabilities | 731 | 13 | 2.36 | 661 | 11 | 2.29 | |||||||||||||||
Other short-term borrowings | 4,794 | 9 | 0.26 | 7,589 | 15 | 0.25 | |||||||||||||||
Long-term debt | 9,652 | 156 | 2.15 | 12,247 | 244 | 2.66 | |||||||||||||||
Total interest-bearing liabilities | 108,178 | 405 | 0.5 | 114,185 | 615 | 0.72 | |||||||||||||||
Noninterest-bearing deposits | 38,478 | 36,629 | |||||||||||||||||||
Other liabilities | 3,743 | 4,356 | |||||||||||||||||||
Noninterest-bearing trading liabilities | 524 | 1,059 | |||||||||||||||||||
Shareholders’ equity | 21,138 | 20,450 | |||||||||||||||||||
Total liabilities and shareholders’ equity | $172,061 | $176,679 | |||||||||||||||||||
Interest Rate Spread | 3.11 | % | 3.23 | % | |||||||||||||||||
Net Interest Income - FTE 1 | $3,733 | $3,949 | |||||||||||||||||||
Net Interest Margin 2 | 3.25 | % | 3.42 | % | |||||||||||||||||
1 | The fully taxable-equivalent (“FTE”) basis adjusts for the tax-favored status of net interest income from certain loans and investments. The Company believes this measure to be the preferred industry measurement of net interest income and it enhances comparability of net interest income arising from taxable and tax-exempt sources. |
2 | The net interest margin is calculated by dividing annualized net interest income - FTE by average total earning assets. |
SunTrust Banks, Inc. and Subsidiaries OTHER FINANCIAL DATA (Dollars in millions) (Unaudited) | |||||||||||||||
Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
CREDIT DATA | |||||||||||||||
Allowance for credit losses - beginning | $2,172 | $2,350 | $2,219 | $2,505 | |||||||||||
Provision/(benefit) for unfunded commitments | 3 | — | 5 | 2 | |||||||||||
Provision for loan losses: | |||||||||||||||
Commercial | 78 | 127 | 183 | 214 | |||||||||||
Residential | (7 | ) | 300 | 184 | 788 | ||||||||||
Consumer | 21 | 23 | 81 | 63 | |||||||||||
Total provision for loan losses | 92 | 450 | 448 | 1,065 | |||||||||||
Charge-offs: | |||||||||||||||
Commercial | (52 | ) | (126 | ) | (176 | ) | (346 | ) | |||||||
Residential | (109 | ) | (425 | ) | (430 | ) | (1,001 | ) | |||||||
Consumer | (28 | ) | (34 | ) | (89 | ) | (98 | ) | |||||||
Total charge-offs | (189 | ) | (585 | ) | (695 | ) | (1,445 | ) | |||||||
Recoveries: | |||||||||||||||
Commercial | 13 | 55 | 48 | 111 | |||||||||||
Residential | 21 | 10 | 67 | 21 | |||||||||||
Consumer | 9 | 9 | 29 | 30 | |||||||||||
Total recoveries | 43 | 74 | 144 | 162 | |||||||||||
Net charge-offs | (146 | ) | (511 | ) | (551 | ) | (1,283 | ) | |||||||
Allowance for credit losses - ending | $2,121 | $2,289 | $2,121 | $2,289 | |||||||||||
Components: | |||||||||||||||
Allowance for loan and lease losses | $2,071 | $2,239 | |||||||||||||
Unfunded commitments reserve | 50 | 50 | |||||||||||||
Allowance for credit losses | $2,121 | $2,289 | |||||||||||||
Net charge-offs to average loans (annualized): | |||||||||||||||
Commercial | 0.26 | % | 0.49 | % | 0.29 | % | 0.55 | % | |||||||
Residential | 0.82 | 3.63 | 1.14 | 2.85 | |||||||||||
Consumer | 0.39 | 0.46 | 0.41 | 0.44 | |||||||||||
Total net charge-offs to total average loans | 0.47 | % | 1.64 | % | 0.61 | % | 1.39 | % | |||||||
Period Ended | September 30, 2013 | December 31, 2012 | |||||||||||||
Nonaccrual/nonperforming loans: | |||||||||||||||
Commercial | $275 | $294 | |||||||||||||
Residential | 752 | 1,228 | |||||||||||||
Consumer | 10 | 25 | |||||||||||||
Total nonaccrual/nonperforming loans | 1,037 | 1,547 | |||||||||||||
Other real estate owned (“OREO”) | 196 | 264 | |||||||||||||
Other repossessed assets | 9 | 9 | |||||||||||||
Nonperforming loans held for sale ("LHFS") | 59 | 37 | |||||||||||||
Total nonperforming assets | $1,301 | $1,857 | |||||||||||||
Accruing restructured loans | $2,744 | $2,501 | |||||||||||||
Nonaccruing restructured loans | 406 | 639 | |||||||||||||
Accruing loans past due > 90 days (guaranteed) | 1,108 | 722 | |||||||||||||
Accruing loans past due > 90 days (non-guaranteed) | 55 | 60 | |||||||||||||
Accruing LHFS past due > 90 days | — | 1 | |||||||||||||
Nonperforming loans to total loans | 0.83 | % | 1.27 | % | |||||||||||
Nonperforming assets to total loans plus OREO, other repossessed assets, and nonperforming LHFS | 1.04 | 1.52 | |||||||||||||
Allowance to period-end loans1,2 | 1.67 | 1.80 | |||||||||||||
Allowance to period-end loans, excluding government guaranteed loans 1,2,3 | 1.80 | 1.95 | |||||||||||||
Allowance to nonperforming loans1,2 | 201 | 142 | |||||||||||||
Allowance to annualized net charge-offs1 | 3.58x | 1.37x | |||||||||||||
SunTrust Banks, Inc. and Subsidiaries OTHER FINANCIAL DATA, continued (Dollars in millions) (Unaudited) | |||||||||||||||||||||||||||||||
Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||||||||||||||||||
Core Deposit Intangibles | MSRs - Fair Value | Other | Total | Core Deposit Intangibles | MSRs - Fair Value | Other | Total | ||||||||||||||||||||||||
OTHER INTANGIBLE ASSET ROLLFORWARD | |||||||||||||||||||||||||||||||
Balance, beginning of period | $27 | $865 | $47 | $939 | $38 | $921 | $58 | $1,017 | |||||||||||||||||||||||
Amortization | (6 | ) | — | (3 | ) | (9 | ) | (17 | ) | — | (14 | ) | (31 | ) | |||||||||||||||||
Mortgage servicing rights (“MSRs”) originated | — | 83 | — | 83 | — | 244 | — | 244 | |||||||||||||||||||||||
Fair value changes due to inputs and assumptions | — | (55 | ) | — | (55 | ) | — | (157 | ) | — | (157 | ) | |||||||||||||||||||
Other changes in fair value | — | (61 | ) | — | (61 | ) | — | (173 | ) | — | (173 | ) | |||||||||||||||||||
Sale of MSRs | — | (1 | ) | — | (1 | ) | — | (4 | ) | — | (4 | ) | |||||||||||||||||||
Balance, September 30, 2012 | $21 | $831 | $44 | $896 | $21 | $831 | $44 | $896 | |||||||||||||||||||||||
Balance, beginning of period | $10 | $1,199 | $35 | $1,244 | $17 | $899 | $40 | $956 | |||||||||||||||||||||||
Amortization | (3 | ) | — | (3 | ) | (6 | ) | (10 | ) | — | (8 | ) | (18 | ) | |||||||||||||||||
MSRs originated | — | 99 | — | 99 | — | 302 | — | 302 | |||||||||||||||||||||||
Fair value changes due to inputs and assumptions | — | 10 | — | 10 | — | 260 | — | 260 | |||||||||||||||||||||||
Other changes in fair value | — | (60 | ) | — | (60 | ) | — | (212 | ) | — | (212 | ) | |||||||||||||||||||
Sale of MSRs | — | — | — | — | — | (1 | ) | — | (1 | ) | |||||||||||||||||||||
Balance, September 30, 2013 | $7 | $1,248 | $32 | $1,287 | $7 | $1,248 | $32 | $1,287 |
SunTrust Banks, Inc. and Subsidiaries RECONCILEMENT OF NON-GAAP MEASURES APPENDIX A TO THE FINANCIAL INFORMATION (Dollars in millions, except per share data) (Unaudited) | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30 | September 30 | September 30 | September 30 | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
NON-GAAP MEASURES PRESENTED IN THE FINANCIAL INFORMATION 1 | ||||||||||||||||
Net interest income | $1,208 | $1,271 | $3,640 | $3,856 | ||||||||||||
Taxable-equivalent adjustment | 32 | 30 | 93 | 93 | ||||||||||||
Net interest income - FTE | 1,240 | 1,301 | 3,733 | 3,949 | ||||||||||||
Noninterest income | 680 | 2,542 | 2,401 | 4,358 | ||||||||||||
Total revenue - FTE | 1,920 | 3,843 | 6,134 | 8,307 | ||||||||||||
Securities gains, net | — | (1,941 | ) | (2 | ) | (1,973 | ) | |||||||||
Total revenue - FTE excluding net securities gains 2 | $1,920 | $1,902 | $6,132 | $6,334 | ||||||||||||
Noninterest income | $680 | $2,542 | $2,401 | $4,358 | ||||||||||||
Securities gains, net | — | (1,941 | ) | (2 | ) | 2 | (1,973 | ) | ||||||||
Noninterest income excluding net securities gains 2 | $680 | $601 | $2,399 | $2,385 | ||||||||||||
Return on average common shareholders’ equity | 3.49 | % | 20.84 | % | 5.79 | % | 10.47 | % | ||||||||
Effect of removing average intangible assets, excluding MSRs | 1.61 | 9.67 | 2.65 | 4.90 | ||||||||||||
Return on average tangible common shareholders' equity 3 | 5.10 | % | 30.51 | % | 8.44 | % | 15.37 | % | ||||||||
Efficiency ratio 4 | 90.77 | % | 44.90 | % | 73.41 | % | 57.94 | % | ||||||||
Impact of excluding amortization of intangible assets | (0.31 | ) | (0.43 | ) | (0.29 | ) | (0.46 | ) | ||||||||
Tangible efficiency ratio 5 | 90.46 | % | 44.47 | % | 73.12 | % | 57.48 | % | ||||||||
September 30 | December 31 | |||||||||||||||
2013 | 2012 | |||||||||||||||
Total shareholders' equity | $21,070 | $20,985 | ||||||||||||||
Goodwill, net of deferred taxes of $180 million and $163 million, respectively | (6,189 | ) | (6,206 | ) | ||||||||||||
Other intangible assets, net of deferred taxes of $2 million and $7 million, respectively, and MSRs | (1,285 | ) | (949 | ) | ||||||||||||
MSRs | 1,248 | 899 | ||||||||||||||
Tangible equity | 14,844 | 14,729 | ||||||||||||||
Preferred stock | (725 | ) | (725 | ) | ||||||||||||
Tangible common equity | $14,119 | $14,004 | ||||||||||||||
Total assets | $171,777 | $173,442 | ||||||||||||||
Goodwill | (6,369 | ) | (6,369 | ) | ||||||||||||
Other intangible assets including MSRs | (1,287 | ) | (956 | ) | ||||||||||||
MSRs | 1,248 | 899 | ||||||||||||||
Tangible assets | $165,369 | $167,016 | ||||||||||||||
Tangible equity to tangible assets 6 | 8.98 | % | 8.82 | % | ||||||||||||
Tangible book value per common share 7 | $26.27 | $25.98 | ||||||||||||||
Total loans | $124,340 | $121,470 | ||||||||||||||
Government guaranteed loans | (9,016 | ) | (9,609 | ) | ||||||||||||
Loans held at fair value | (316 | ) | (379 | ) | ||||||||||||
Total loans, excluding government guaranteed and fair value loans | $115,008 | $111,482 | ||||||||||||||
Allowance to total loans, excluding government guaranteed and fair value loans 8 | 1.80 | % | 1.95 | % |
SunTrust Banks, Inc. and Subsidiaries RECONCILEMENT OF NON-GAAP MEASURES APPENDIX A TO THE FINANCIAL INFORMATION, continued (Dollars in millions, except per share data) (Unaudited) | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30 | September 30 | September 30 | September 30 | ||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
NON-GAAP MEASURES PRESENTED IN THE FINANCIAL INFORMATION 1 | |||||||||||||||
Net income available to common shareholders | $179 | $1,066 | $884 | $1,581 | |||||||||||
Items announced during the quarter on Form 8-K: | |||||||||||||||
Operating losses related to settlement of certain legal matters | 323 | — | 323 | — | |||||||||||
Mortgage repurchase provision related to repurchase settlements | 63 | — | 63 | — | |||||||||||
Provision for unrecoverable servicing advances | 96 | — | 96 | — | |||||||||||
Securities gains related to sale of The Coca-Cola Company stock | — | (1,938 | ) | — | (1,938 | ) | |||||||||
Mortgage repurchase provision | — | 371 | — | 371 | |||||||||||
Charitable expense related to The Coca-Cola Company stock contribution | — | 38 | — | 38 | |||||||||||
Provision for credit losses related to nonperforming loan sales | — | 172 | — | 172 | |||||||||||
Losses on sale of guaranteed loans | — | 92 | — | 92 | |||||||||||
Valuation losses related to planned sale of Affordable Housing investments | — | 96 | — | 96 | |||||||||||
Tax (benefit)/expense related to above items | (190 | ) | 417 | (190 | ) | 417 | |||||||||
Net tax benefit related to subsidiary reorganization and other | (113 | ) | — | (113 | ) | — | |||||||||
Net income available to common shareholders, excluding 8-K items announced during the quarter 9 | $358 | $314 | $1,063 | $829 | |||||||||||
Net income per average common share, diluted | $0.33 | $1.98 | $1.64 | $2.94 | |||||||||||
Impact of 8-K items announced during the quarter | 0.33 | (1.40 | ) | 0.33 | (1.40 | ) | |||||||||
Net income per average common diluted share, excluding 8-K items announced during the quarter 9 | $0.66 | $0.58 | $1.97 | $1.54 | |||||||||||
SunTrust Banks, Inc. and Subsidiaries CONSUMER BANKING AND PRIVATE WEALTH MANAGEMENT (Dollars in millions) (Unaudited) | |||||||||||||||
Three Months Ended September 30 1 | Nine Months Ended September 30 1 | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Statements of Income: | |||||||||||||||
Net interest income 2 | $653 | $691 | $1,950 | $2,057 | |||||||||||
FTE adjustment | — | — | — | — | |||||||||||
Net interest income - FTE | 653 | 691 | 1,950 | 2,057 | |||||||||||
Provision for credit losses 3 | 79 | 172 | 286 | 464 | |||||||||||
Net interest income - FTE - after provision for credit losses | 574 | 519 | 1,664 | 1,593 | |||||||||||
Noninterest income before securities gains/(losses) | 379 | 356 | 1,107 | 1,115 | |||||||||||
Securities gains/(losses), net | — | — | — | — | |||||||||||
Total noninterest income | 379 | 356 | 1,107 | 1,115 | |||||||||||
Noninterest expense before amortization/impairment of intangible assets/goodwill | 684 | 757 | 2,066 | 2,251 | |||||||||||
Amortization/impairment of intangible assets/goodwill | 5 | 16 | 16 | 34 | |||||||||||
Total noninterest expense | 689 | 773 | 2,082 | 2,285 | |||||||||||
Income before provision for income taxes | 264 | 102 | 689 | 423 | |||||||||||
Provision for income taxes | 97 | 39 | 253 | 155 | |||||||||||
FTE adjustment | — | — | — | — | |||||||||||
Net income including income attributable to noncontrolling interest | 167 | 63 | 436 | 268 | |||||||||||
Less: net income attributable to noncontrolling interest | — | — | — | — | |||||||||||
Net income | $167 | $63 | $436 | $268 | |||||||||||
Total revenue - FTE | $1,032 | $1,047 | $3,057 | $3,172 | |||||||||||
Selected Average Balances: | |||||||||||||||
Total loans | $40,484 | $42,190 | $40,316 | $42,180 | |||||||||||
Goodwill | 4,262 | 3,962 | 4,064 | 3,942 | |||||||||||
Other intangible assets excluding MSRs | 30 | 55 | 35 | 64 | |||||||||||
Total assets | 45,532 | 47,053 | 45,156 | 47,029 | |||||||||||
Consumer and commercial deposits | 83,911 | 83,340 | 84,157 | 84,002 | |||||||||||
Other Information (End of Period): 4 | |||||||||||||||
Assets under administration | |||||||||||||||
Managed (discretionary) assets | $48,017 | $54,657 | |||||||||||||
Non-managed assets | 53,800 | 61,418 | |||||||||||||
Total assets under administration | 101,817 | 116,075 | |||||||||||||
Brokerage assets | 42,515 | 39,102 | |||||||||||||
Total assets under advisement | $144,332 | $155,177 | |||||||||||||
1 | Prior year results have been restated to include the effect of moving small business banking from Wholesale Banking to Consumer Banking and Private Wealth Management during the second quarter of 2013. |
SunTrust Banks, Inc. and Subsidiaries WHOLESALE BANKING (Dollars in millions) (Unaudited) | |||||||||||||||
Three Months Ended September 30 1 | Nine Months Ended September 30 1 | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Statements of Income: | |||||||||||||||
Net interest income 2 | $401 | $386 | $1,190 | $1,133 | |||||||||||
FTE adjustment | 31 | 29 | 90 | 90 | |||||||||||
Net interest income - FTE | 432 | 415 | 1,280 | 1,223 | |||||||||||
Provision for credit losses 3 | 21 | 69 | 67 | 217 | |||||||||||
Net interest income - FTE - after provision for credit losses | 411 | 346 | 1,213 | 1,006 | |||||||||||
Noninterest income before securities gains/(losses) | 294 | 354 | 934 | 1,020 | |||||||||||
Securities gains/(losses), net | — | — | — | — | |||||||||||
Total noninterest income | 294 | 354 | 934 | 1,020 | |||||||||||
Noninterest expense before amortization of intangible assets | 427 | 517 | 1,222 | 1,427 | |||||||||||
Amortization of intangible assets | 1 | 1 | 2 | 2 | |||||||||||
Total noninterest expense | 428 | 518 | 1,224 | 1,429 | |||||||||||
Income - FTE - before provision for income taxes | 277 | 182 | 923 | 597 | |||||||||||
Provision for income taxes | 50 | 18 | 191 | 69 | |||||||||||
FTE adjustment | 31 | 29 | 90 | 90 | |||||||||||
Net income including income attributable to noncontrolling interest | 196 | 135 | 642 | 438 | |||||||||||
Less: net income attributable to noncontrolling interest | 2 | 7 | 7 | 14 | |||||||||||
Net income | $194 | $128 | $635 | $424 | |||||||||||
Total revenue - FTE | $726 | $769 | $2,214 | $2,243 | |||||||||||
Selected Average Balances: | |||||||||||||||
Total loans | $54,230 | $51,369 | $53,458 | $50,424 | |||||||||||
Goodwill | 2,107 | 2,414 | 2,305 | 2,414 | |||||||||||
Other intangible assets excluding MSRs | 11 | 14 | 12 | 15 | |||||||||||
Total assets | 66,552 | 64,605 | 66,307 | 63,831 | |||||||||||
Consumer and commercial deposits | 39,515 | 38,139 | 39,318 | 38,131 | |||||||||||
Other Information (End of Period): 4 | |||||||||||||||
Managed (discretionary) assets under administration | $45,036 | $41,710 |
1 | Prior year results have been restated to include the effect of moving small business banking from Wholesale Banking to Consumer Banking and Private Wealth Management during the second quarter of 2013. |
SunTrust Banks, Inc. and Subsidiaries MORTGAGE BANKING (Dollars in millions) (Unaudited) | |||||||||||||||
Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Statements of Income: | |||||||||||||||
Net interest income 1 | $140 | $129 | $409 | $387 | |||||||||||
FTE adjustment | — | — | — | — | |||||||||||
Net interest income - FTE | 140 | 129 | 409 | 387 | |||||||||||
Provision for credit losses 2 | 45 | 270 | 197 | 602 | |||||||||||
Net interest income/(loss) - FTE - after provision for credit losses | 95 | (141 | ) | 212 | (215 | ) | |||||||||
Noninterest income before securities gains/(losses) | (1 | ) | (75 | ) | 328 | 261 | |||||||||
Securities gains/(losses), net | — | — | — | — | |||||||||||
Total noninterest income | (1 | ) | (75 | ) | 328 | 261 | |||||||||
Noninterest expense before amortization of intangible assets | 638 | 368 | 1,247 | 1,045 | |||||||||||
Amortization of intangible assets | — | — | — | — | |||||||||||
Total noninterest expense | 638 | 368 | 1,247 | 1,045 | |||||||||||
Loss before benefit for income taxes | (544 | ) | (584 | ) | (707 | ) | (999 | ) | |||||||
Benefit for income taxes | (139 | ) | (200 | ) | (206 | ) | (369 | ) | |||||||
FTE adjustment | — | — | — | — | |||||||||||
Net loss including income attributable to noncontrolling interest | (405 | ) | (384 | ) | (501 | ) | (630 | ) | |||||||
Less: net income attributable to noncontrolling interest | — | — | — | — | |||||||||||
Net loss | ($405 | ) | ($384 | ) | ($501 | ) | ($630 | ) | |||||||
Total revenue - FTE | $139 | $54 | $737 | $648 | |||||||||||
Selected Average Balances: | |||||||||||||||
Total loans | $27,921 | $30,467 | $27,830 | $30,690 | |||||||||||
Goodwill | — | — | — | — | |||||||||||
Other intangible assets excluding MSRs | — | — | — | — | |||||||||||
Total assets | 33,025 | 35,372 | 32,973 | 35,464 | |||||||||||
Consumer and commercial deposits | 3,247 | 3,938 | 3,501 | 3,571 | |||||||||||
Mortgage Servicing Data (End of Period): | |||||||||||||||
Total loans serviced | $139,710 | $149,721 | |||||||||||||
Total loans serviced for others | 109,224 | 115,814 |
1 | Net interest income does not include the funding benefit that would result from holding shareholders’ equity at the line of business level due to the fact that shareholders' equity is not allocated to the lines of business at this time. |
2 | Provision for credit losses represents net charge-offs for the lines of business. |
SunTrust Banks, Inc. and Subsidiaries CORPORATE OTHER (Dollars in millions) (Unaudited) | |||||||||||||||
Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Statements of Income: | |||||||||||||||
Net interest income | $14 | $65 | $91 | $279 | |||||||||||
FTE adjustment | 1 | 1 | 3 | 3 | |||||||||||
Net interest income - FTE | 15 | 66 | 94 | 282 | |||||||||||
Provision for credit losses 1 | (50 | ) | (61 | ) | (97 | ) | (216 | ) | |||||||
Net interest income - FTE - after provision for credit losses | 65 | 127 | 191 | 498 | |||||||||||
Noninterest income before securities gains/(losses) | 8 | (34 | ) | 30 | (11 | ) | |||||||||
Securities gains/(losses), net | — | 1,941 | 2 | 1,973 | |||||||||||
Total noninterest income | 8 | 1,907 | 32 | 1,962 | |||||||||||
Noninterest expense before amortization of intangible assets | (12 | ) | 67 | (50 | ) | 51 | |||||||||
Amortization of intangible assets | — | — | — | 3 | |||||||||||
Total noninterest expense | (12 | ) | 67 | (50 | ) | 54 | |||||||||
Income - FTE - before provision for income taxes | 85 | 1,967 | 273 | 2,406 | |||||||||||
Provision for income taxes | (154 | ) | 694 | (87 | ) | 855 | |||||||||
FTE adjustment | 1 | 1 | 3 | 3 | |||||||||||
Net income including income attributable to noncontrolling interest | 238 | 1,272 | 357 | 1,548 | |||||||||||
Less: net income attributable to noncontrolling interest | 5 | 2 | 9 | 8 | |||||||||||
Net income | $233 | $1,270 | $348 | $1,540 | |||||||||||
Total revenue - FTE | $23 | $1,973 | $126 | $2,244 | |||||||||||
Selected Average Balances: | |||||||||||||||
Total loans | $37 | $54 | $45 | $38 | |||||||||||
Securities available for sale | 22,579 | 20,575 | 22,606 | 22,585 | |||||||||||
Other intangible assets excluding MSRs | — | — | — | 1 | |||||||||||
Total assets | 26,729 | 28,252 | 27,625 | 30,355 | |||||||||||
Consumer and commercial deposits | (55 | ) | (64 | ) | (29 | ) | (12 | ) |
1 | Provision for credit losses is the difference between net charge-offs recorded by the lines of business and consolidated provision for credit losses. |