Date of Report (Date of earliest event reported): | July 22, 2016 |
Georgia | 001-08918 | 58-1575035 |
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
303 Peachtree Street, N.E., Atlanta, Georgia | 30308 | |
(Address of principal executive offices) | (Zip Code) |
Registrant's telephone number, including area code | (800) 786-8787 |
Not Applicable | ||||
Former name or former address, if changed since last report |
SUNTRUST BANKS, INC. | |||||
(Registrant) | |||||
Date: | July 22, 2016 | By: /s/ Thomas E. Panther | |||
Thomas E. Panther, Senior Vice President, Director of Corporate Finance and Controller |
Contact: | |||
Investors | Media | ||
Ankur Vyas | Mike McCoy | ||
(404) 827-6714 | (404) 588-7230 |
• | Net income available to common shareholders was $475 million, or $0.94 per average common diluted share, compared to $0.84 for the first quarter of 2016 and $0.89 for the second quarter of 2015. |
◦ | Earnings per share increased 6% compared to the second quarter of 2015 |
◦ | Current quarter earnings included a net $0.05 per share benefit from discrete items |
▪ | $44 million (pre-tax) in net asset-related gains, primarily related to a gain from the sale-leaseback of an office building (recorded in other noninterest income) |
▪ | $21 million (pre-tax) in discrete charges related to ongoing efficiency initiatives (recorded in other noninterest expense) |
▪ | $9 million discrete tax benefit (recorded in provision for income taxes) |
• | Total revenue increased 6% compared to the prior quarter and 7% compared to the second quarter of 2015. |
◦ | Sequential revenue growth was driven by a 15% increase in noninterest income, most notably mortgage-related income, other noninterest income (favorably impacted by the aforementioned net asset-related gains), and investment banking income. |
◦ | Compared to the second quarter of 2015, revenue growth was driven by a 10% increase in net interest income and 3% growth in noninterest income. |
• | Net interest margin was 2.99% in the current quarter, down 5 basis points sequentially and up 13 basis points compared to the prior year. |
• | Provision for credit losses increased sequentially and compared to the prior year, due primarily to higher energy-related charge-offs, moderating asset quality improvements, and loan growth. |
• | Noninterest expense increased 2% sequentially and 1% compared to the prior year, driven largely by the aforementioned $21 million in discrete charges related to ongoing efficiency initiatives. |
• | The efficiency and tangible efficiency ratios in the current quarter were 60.6% and 60.1%, respectively, which represent significant improvements compared to the prior quarter and prior year. |
• | Average loan balances increased 2% sequentially and 6% compared to the second quarter of 2015, with growth across most loan categories. |
• | Average consumer and commercial deposits increased 3% sequentially and 8% compared to the second quarter of 2015, primarily related to NOW and money market account balances. |
• | Estimated capital ratios continue to be well above regulatory requirements. The Common Equity Tier 1 ("CET1") ratio was estimated to be 9.8% as of June 30, 2016, and 9.7% on a fully phased-in basis. |
• | During the quarter, the Company: |
◦ | Repurchased $175 million of its outstanding common stock, which completed its 2015 capital plan. |
◦ | Announced its 2016 capital plan, which includes: |
▪ | The purchase of up to $960 million of its outstanding common stock between the third quarter of 2016 and the second quarter of 2017. |
▪ | An 8% increase in the quarterly common stock dividend from $0.24 per share to $0.26 per share, beginning in the third quarter of 2016, subject to approval by the Company's Board of Directors. |
• | Book value per share was $46.14 and tangible book value per share was $33.98, both up 3% compared to March 31, 2016. |
• | Nonperforming loans declined $31 million from the prior quarter and represented 0.67% of total loans at June 30, 2016. The sequential decrease was driven by the resolution of certain energy-related loans. |
• | Net charge-offs for the current quarter were $137 million, or 0.39% of average loans on an annualized basis, up $52 million and $50 million compared to the prior quarter and the second quarter of 2015, respectively. The current quarter included $70 million in energy-related net charge-offs. |
• | The provision for credit losses increased $45 million sequentially due to higher energy-related charge-offs and moderating asset quality improvements. |
• | At June 30, 2016, the allowance for loan and lease losses (ALLL) to period-end loans ratio declined 2 basis points to 1.25%, as an increase in the commercial ALLL ratio was offset by a decline in the residential ALLL ratio, as a result of continued improvements in the asset quality of the residential loan portfolio. |
Income Statement (Dollars in millions, except per share data) | 2Q 2016 | 1Q 2016 | 4Q 2015 | 3Q 2015 | 2Q 2015 | ||||||||||||||
Net interest income | $1,288 | $1,282 | $1,246 | $1,211 | $1,167 | ||||||||||||||
Net interest income-FTE 2 | 1,323 | 1,318 | 1,281 | 1,247 | 1,203 | ||||||||||||||
Net interest margin | 2.91 | % | 2.96 | % | 2.90 | % | 2.86 | % | 2.78 | % | |||||||||
Net interest margin-FTE 2 | 2.99 | 3.04 | 2.98 | 2.94 | 2.86 | ||||||||||||||
Noninterest income | $898 | $781 | $765 | $811 | $874 | ||||||||||||||
Total revenue | 2,186 | 2,063 | 2,011 | 2,022 | 2,041 | ||||||||||||||
Total revenue-FTE 2 | 2,221 | 2,099 | 2,046 | 2,058 | 2,077 | ||||||||||||||
Noninterest expense | 1,345 | 1,318 | 1,288 | 1,264 | 1,328 | ||||||||||||||
Provision for credit losses | 146 | 101 | 51 | 32 | 26 | ||||||||||||||
Net income available to common shareholders | 475 | 430 | 467 | 519 | 467 | ||||||||||||||
Earnings per average common diluted share | 0.94 | 0.84 | 0.91 | 1.00 | 0.89 | ||||||||||||||
Balance Sheet (Dollars in billions) | |||||||||||||||||||
Average loans | $141.2 | $138.4 | $135.2 | $132.8 | $132.8 | ||||||||||||||
Average consumer and commercial deposits | 154.2 | 149.2 | 148.2 | 145.2 | 142.9 | ||||||||||||||
Capital | |||||||||||||||||||
Capital ratios at period end 1 : | |||||||||||||||||||
Tier 1 capital (transitional) | 10.55 | % | 10.63 | % | 10.80 | % | 10.90 | % | 10.79 | % | |||||||||
Common Equity Tier 1 ("CET1") (transitional) | 9.84 | % | 9.90 | % | 9.96 | % | 10.04 | % | 9.93 | % | |||||||||
Common Equity Tier 1 ("CET1") (fully phased-in) 2 | 9.70 | % | 9.77 | % | 9.80 | % | 9.89 | % | 9.76 | % | |||||||||
Total average shareholders’ equity to total average assets | 12.11 | % | 12.33 | % | 12.43 | % | 12.42 | % | 12.34 | % | |||||||||
Asset Quality | |||||||||||||||||||
Net charge-offs to average loans (annualized) | 0.39 | % | 0.25 | % | 0.24 | % | 0.21 | % | 0.26 | % | |||||||||
Allowance for loan and lease losses to period-end loans | 1.25 | % | 1.27 | % | 1.29 | % | 1.34 | % | 1.39 | % | |||||||||
Nonperforming loans to total loans | 0.67 | % | 0.70 | % | 0.49 | % | 0.35 | % | 0.36 | % |
• | The Company presents the allowance for loan and lease losses excluding government-guaranteed loans and fair value loans, and early-stage delinquencies excluding government-guaranteed loans and fair value loans. The Company believes that the exclusion of loans that are held at fair value with no related allowance, and loans guaranteed by a government agency that do not have an associated allowance recorded due to nominal risk of principal loss, better depicts the allowance relative to loans the allowance is intended to cover. |
• | The Company presents certain capital information on a tangible basis, including tangible equity, tangible common equity, the ratio of tangible equity to tangible assets, the ratio of tangible common equity to tangible assets, tangible book value per share, and the return on tangible common shareholders’ equity, which removes the after-tax impact of purchase accounting intangible assets from shareholders' equity and removes related intangible asset amortization from net income available to common shareholders. The Company believes these measures are useful to investors because, by removing the amount of intangible assets that result from merger and acquisition activity and amortization expense (the level of which may vary from company to company), it allows investors to more easily compare the Company’s capital position and return on average tangible common shareholders' equity to other companies in the industry who present similar measures. The Company also believes that removing these items provides a more relevant measure of the return on the Company's common shareholders' equity. These measures are utilized by management to assess the capital adequacy and profitability of the Company. |
• | Similarly, the Company presents an efficiency ratio-FTE and a tangible efficiency ratio-FTE. The efficiency ratio is computed by dividing noninterest expense by total revenue. Efficiency ratio-FTE is computed by dividing noninterest expense by total revenue-FTE. The tangible efficiency ratio-FTE excludes the amortization related to intangible assets and certain tax credits. The Company believes this measure is useful to investors because, by removing the impact of amortization (the level of which may vary from company to company), it allows investors to more easily compare the Company’s efficiency to other companies in the industry. This measure is utilized by management to assess the efficiency of the Company and its lines of business. |
• | The Company presents the Basel III Common Equity Tier 1 (CET1), on a fully-phased in basis. Fully phased-in ratios consider a 250% risk-weighting for MSRs and deduction from capital of certain carryforward DTAs, the overfunded pension asset, and other intangible assets. The Company believes this measure is useful to investors who wish to understand the Company's current compliance with future regulatory requirements. |
(Dollars in millions and shares in thousands, except per share data) (Unaudited) | Three Months Ended June 30 | % | Six Months Ended June 30 | % | |||||||||||||||||
2016 | 2015 | Change | 2016 | 2015 | Change | ||||||||||||||||
EARNINGS & DIVIDENDS | |||||||||||||||||||||
Net income | $492 | $483 | 2 | % | $939 | $912 | 3 | % | |||||||||||||
Net income available to common shareholders | 475 | 467 | 2 | 906 | 877 | 3 | |||||||||||||||
Total revenue | 2,186 | 2,041 | 7 | 4,249 | 3,999 | 6 | |||||||||||||||
Total revenue-FTE 1 | 2,221 | 2,077 | 7 | 4,320 | 4,070 | 6 | |||||||||||||||
Net income per average common share: | |||||||||||||||||||||
Diluted | 0.94 | 0.89 | 6 | 1.78 | 1.67 | 7 | |||||||||||||||
Basic | 0.95 | 0.90 | 6 | 1.80 | 1.69 | 7 | |||||||||||||||
Dividends paid per common share | 0.24 | 0.24 | — | 0.48 | 0.44 | 9 | |||||||||||||||
CONDENSED BALANCE SHEETS | |||||||||||||||||||||
Selected Average Balances: | |||||||||||||||||||||
Total assets | $198,307 | $188,310 | 5 | % | $195,661 | $188,785 | 4 | % | |||||||||||||
Earning assets | 178,055 | 168,461 | 6 | 176,122 | 168,321 | 5 | |||||||||||||||
Loans | 141,238 | 132,829 | 6 | 139,805 | 133,082 | 5 | |||||||||||||||
Intangible assets including mortgage servicing rights ("MSRs") | 7,543 | 7,572 | — | 7,556 | 7,537 | — | |||||||||||||||
MSRs | 1,192 | 1,223 | (3 | ) | 1,203 | 1,188 | 1 | ||||||||||||||
Consumer and commercial deposits | 154,166 | 142,851 | 8 | 151,698 | 141,670 | 7 | |||||||||||||||
Total shareholders’ equity | 24,018 | 23,239 | 3 | 23,907 | 23,206 | 3 | |||||||||||||||
Preferred stock | 1,225 | 1,225 | — | 1,225 | 1,225 | — | |||||||||||||||
Period End Balances: | |||||||||||||||||||||
Total assets | 199,073 | 188,858 | 5 | ||||||||||||||||||
Earning assets | 178,852 | 168,499 | 6 | ||||||||||||||||||
Loans | 141,656 | 132,538 | 7 | ||||||||||||||||||
Allowance for loan and lease losses ("ALLL") | 1,774 | 1,834 | (3 | ) | |||||||||||||||||
Consumer and commercial deposits | 151,779 | 143,922 | 5 | ||||||||||||||||||
Total shareholders’ equity | 24,464 | 23,223 | 5 | ||||||||||||||||||
FINANCIAL RATIOS & OTHER DATA | |||||||||||||||||||||
Return on average total assets | 1.00 | % | 1.03 | % | (3 | )% | 0.97 | % | 0.97 | % | — | % | |||||||||
Return on average common shareholders’ equity 2 | 8.43 | 8.54 | (1 | ) | 8.07 | 8.09 | — | ||||||||||||||
Return on average tangible common shareholders' equity 1, 2 | 11.54 | 11.88 | (3 | ) | 11.07 | 11.26 | (2 | ) | |||||||||||||
Net interest margin | 2.91 | 2.78 | 5 | 2.93 | 2.76 | 6 | |||||||||||||||
Net interest margin-FTE 1 | 2.99 | 2.86 | 5 | 3.01 | 2.85 | 6 | |||||||||||||||
Efficiency ratio | 61.53 | 65.07 | (5 | ) | 62.67 | 65.22 | (4 | ) | |||||||||||||
Efficiency ratio-FTE 1 | 60.56 | 63.92 | (5 | ) | 61.65 | 64.07 | (4 | ) | |||||||||||||
Tangible efficiency ratio-FTE 1 | 60.05 | 63.59 | (6 | ) | 61.16 | 63.75 | (4 | ) | |||||||||||||
Effective tax rate | 29 | 29 | — | 30 | 30 | — | |||||||||||||||
Basel III capital ratios at period end (transitional) 3: | |||||||||||||||||||||
Common Equity Tier 1 ("CET1") | 9.84 | 9.93 | (1 | ) | |||||||||||||||||
Tier 1 capital | 10.55 | 10.79 | (2 | ) | |||||||||||||||||
Total capital | 12.65 | 12.66 | — | ||||||||||||||||||
Leverage | 9.35 | 9.56 | (2 | ) | |||||||||||||||||
Basel III fully phased-in CET1 ratio 1, 3 | 9.70 | 9.76 | (1 | ) | |||||||||||||||||
Total average shareholders’ equity to total average assets | 12.11 | % | 12.34 | % | (2 | )% | 12.22 | 12.29 | (1 | ) | |||||||||||
Tangible equity to tangible assets 1 | 9.53 | 9.38 | 2 | ||||||||||||||||||
Tangible common equity to tangible assets 1 | 8.84 | 8.65 | 2 | ||||||||||||||||||
Book value per common share 2 | $46.14 | $42.26 | 9 | ||||||||||||||||||
Tangible book value per common share 1, 2 | 33.98 | 30.46 | 12 | ||||||||||||||||||
Market capitalization | 20,598 | 22,286 | (8 | ) | |||||||||||||||||
Average common shares outstanding: | |||||||||||||||||||||
Diluted | 505,560 | 522,479 | (3 | ) | 507,975 | 524,646 | (3 | ) | |||||||||||||
Basic | 501,374 | 516,968 | (3 | ) | 503,428 | 518,983 | (3 | ) | |||||||||||||
Full-time equivalent employees | 23,940 | 24,237 | (1 | ) | |||||||||||||||||
Number of ATMs | 2,144 | 2,162 | (1 | ) | |||||||||||||||||
Full service banking offices | 1,389 | 1,430 | (3 | ) | |||||||||||||||||
1 | See Appendix A for additional information and reconcilements of non-U.S. GAAP performance measures. |
2 | Beginning January 1, 2016, noncontrolling interest was removed from common shareholders' equity in the calculation to provide a more accurate measure of the Company's return on common equity. Accordingly, amounts for periods prior to January 1, 2016 have been updated for consistent presentation. |
Three Months Ended | |||||||||||||||||||
June 30 | March 31 | December 31 | September 30 | June 30 | |||||||||||||||
(Dollars in millions and shares in thousands, except per share data) (Unaudited) | 2016 | 2016 | 2015 | 2015 | 2015 | ||||||||||||||
EARNINGS & DIVIDENDS | |||||||||||||||||||
Net income | $492 | $447 | $484 | $537 | $483 | ||||||||||||||
Net income available to common shareholders | 475 | 430 | 467 | 519 | 467 | ||||||||||||||
Total revenue | 2,186 | 2,063 | 2,011 | 2,022 | 2,041 | ||||||||||||||
Total revenue-FTE 1 | 2,221 | 2,099 | 2,046 | 2,058 | 2,077 | ||||||||||||||
Net income per average common share: | |||||||||||||||||||
Diluted | 0.94 | 0.84 | 0.91 | 1.00 | 0.89 | ||||||||||||||
Basic | 0.95 | 0.85 | 0.92 | 1.01 | 0.90 | ||||||||||||||
Dividends paid per common share | 0.24 | 0.24 | 0.24 | 0.24 | 0.24 | ||||||||||||||
CONDENSED BALANCE SHEETS | |||||||||||||||||||
Selected Average Balances: | |||||||||||||||||||
Total assets | $198,307 | $193,014 | $189,656 | $188,341 | $188,310 | ||||||||||||||
Earning assets | 178,055 | 174,189 | 170,262 | 168,334 | 168,461 | ||||||||||||||
Loans | 141,238 | 138,372 | 135,214 | 132,837 | 132,829 | ||||||||||||||
Intangible assets including MSRs | 7,543 | 7,569 | 7,629 | 7,711 | 7,572 | ||||||||||||||
MSRs | 1,192 | 1,215 | 1,273 | 1,352 | 1,223 | ||||||||||||||
Consumer and commercial deposits | 154,166 | 149,229 | 148,163 | 145,226 | 142,851 | ||||||||||||||
Total shareholders’ equity | 24,018 | 23,797 | 23,583 | 23,384 | 23,239 | ||||||||||||||
Preferred stock | 1,225 | 1,225 | 1,225 | 1,225 | 1,225 | ||||||||||||||
Period End Balances: | |||||||||||||||||||
Total assets | 199,073 | 194,158 | 190,817 | 187,036 | 188,858 | ||||||||||||||
Earning assets | 178,852 | 175,710 | 172,114 | 168,555 | 168,499 | ||||||||||||||
Loans | 141,656 | 139,746 | 136,442 | 133,560 | 132,538 | ||||||||||||||
ALLL | 1,774 | 1,770 | 1,752 | 1,786 | 1,834 | ||||||||||||||
Consumer and commercial deposits | 151,779 | 151,264 | 148,921 | 145,337 | 143,922 | ||||||||||||||
Total shareholders’ equity | 24,464 | 24,053 | 23,437 | 23,664 | 23,223 | ||||||||||||||
FINANCIAL RATIOS & OTHER DATA | |||||||||||||||||||
Return on average total assets | 1.00 | % | 0.93 | % | 1.01 | % | 1.13 | % | 1.03 | % | |||||||||
Return on average common shareholders’ equity 2 | 8.43 | 7.71 | 8.32 | 9.34 | 8.54 | ||||||||||||||
Return on average tangible common shareholders' equity 1, 2 | 11.54 | 10.60 | 11.49 | 12.95 | 11.88 | ||||||||||||||
Net interest margin | 2.91 | 2.96 | 2.90 | 2.86 | 2.78 | ||||||||||||||
Net interest margin-FTE 1 | 2.99 | 3.04 | 2.98 | 2.94 | 2.86 | ||||||||||||||
Efficiency ratio | 61.53 | 63.89 | 64.05 | 62.51 | 65.07 | ||||||||||||||
Efficiency ratio-FTE 1 | 60.56 | 62.81 | 62.96 | 61.44 | 63.92 | ||||||||||||||
Tangible efficiency ratio-FTE 1 | 60.05 | 62.33 | 62.11 | 60.99 | 63.59 | ||||||||||||||
Effective tax rate | 29 | 30 | 28 | 26 | 29 | ||||||||||||||
Basel III capital ratios at period end (transitional) 3: | |||||||||||||||||||
CET1 | 9.84 | 9.90 | 9.96 | 10.04 | 9.93 | ||||||||||||||
Tier 1 capital | 10.55 | 10.63 | 10.80 | 10.90 | 10.79 | ||||||||||||||
Total capital | 12.65 | 12.39 | 12.54 | 12.72 | 12.66 | ||||||||||||||
Leverage | 9.35 | 9.50 | 9.69 | 9.68 | 9.56 | ||||||||||||||
Basel III fully phased-in CET1 ratio 1, 3 | 9.70 | 9.77 | 9.80 | 9.89 | 9.76 | ||||||||||||||
Total average shareholders’ equity to total average assets | 12.11 | 12.33 | 12.43 | 12.42 | 12.34 | ||||||||||||||
Tangible equity to tangible assets 1 | 9.53 | 9.56 | 9.40 | 9.72 | 9.38 | ||||||||||||||
Tangible common equity to tangible assets 1 | 8.84 | 8.85 | 8.67 | 8.98 | 8.65 | ||||||||||||||
Book value per common share 2 | $46.14 | $44.97 | $43.45 | $43.44 | $42.26 | ||||||||||||||
Tangible book value per common share 1, 2 | 33.98 | 32.90 | 31.45 | 31.56 | 30.46 | ||||||||||||||
Market capitalization | 20,598 | 18,236 | 21,793 | 19,659 | 22,286 | ||||||||||||||
Average common shares outstanding: | |||||||||||||||||||
Diluted | 505,560 | 509,931 | 514,507 | 518,677 | 522,479 | ||||||||||||||
Basic | 501,374 | 505,482 | 508,536 | 513,010 | 516,968 | ||||||||||||||
Full-time equivalent employees | 23,940 | 23,945 | 24,043 | 24,124 | 24,237 | ||||||||||||||
Number of ATMs | 2,144 | 2,153 | 2,160 | 2,142 | 2,162 | ||||||||||||||
Full service banking offices | 1,389 | 1,397 | 1,401 | 1,406 | 1,430 | ||||||||||||||
1 | See Appendix A for additional information and reconcilements of non-U.S. GAAP performance measures. |
2 | Beginning January 1, 2016, noncontrolling interest was removed from common shareholders' equity in the calculation to provide a more accurate measure of the Company's return on common equity. Accordingly, amounts for periods prior to January 1, 2016 have been updated for consistent presentation. |
Three Months Ended | Increase/(Decrease) | Six Months Ended | Increase/(Decrease) | ||||||||||||||||||||||||||
(Dollars in millions and shares in thousands, except per share data) (Unaudited) | June 30 | June 30 | |||||||||||||||||||||||||||
2016 | 2015 | Amount | % 2 | 2016 | 2015 | Amount | % 2 | ||||||||||||||||||||||
Interest income | $1,424 | $1,297 | $127 | 10 | % | $2,834 | $2,569 | $265 | 10 | % | |||||||||||||||||||
Interest expense | 136 | 130 | 6 | 5 | 265 | 262 | 3 | 1 | |||||||||||||||||||||
NET INTEREST INCOME | 1,288 | 1,167 | 121 | 10 | 2,569 | 2,307 | 262 | 11 | |||||||||||||||||||||
Provision for credit losses | 146 | 26 | 120 | NM | 246 | 82 | 164 | NM | |||||||||||||||||||||
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES | 1,142 | 1,141 | 1 | — | 2,323 | 2,225 | 98 | 4 | |||||||||||||||||||||
NONINTEREST INCOME | |||||||||||||||||||||||||||||
Service charges on deposit accounts | 162 | 156 | 6 | 4 | 315 | 308 | 7 | 2 | |||||||||||||||||||||
Other charges and fees | 104 | 99 | 5 | 5 | 197 | 188 | 9 | 5 | |||||||||||||||||||||
Card fees | 83 | 84 | (1 | ) | (1 | ) | 160 | 164 | (4 | ) | (2 | ) | |||||||||||||||||
Investment banking income | 126 | 145 | (19 | ) | (13 | ) | 225 | 242 | (17 | ) | (7 | ) | |||||||||||||||||
Trading income | 34 | 54 | (20 | ) | (37 | ) | 89 | 109 | (20 | ) | (18 | ) | |||||||||||||||||
Trust and investment management income | 75 | 84 | (9 | ) | (11 | ) | 150 | 168 | (18 | ) | (11 | ) | |||||||||||||||||
Retail investment services | 72 | 80 | (8 | ) | (10 | ) | 141 | 152 | (11 | ) | (7 | ) | |||||||||||||||||
Mortgage production related income | 111 | 76 | 35 | 46 | 171 | 159 | 12 | 8 | |||||||||||||||||||||
Mortgage servicing related income | 52 | 30 | 22 | 73 | 114 | 73 | 41 | 56 | |||||||||||||||||||||
Net securities gains | 4 | 14 | (10 | ) | (71 | ) | 4 | 14 | (10 | ) | (71 | ) | |||||||||||||||||
Other noninterest income | 75 | 52 | 23 | 44 | 114 | 115 | (1 | ) | (1 | ) | |||||||||||||||||||
Total noninterest income | 898 | 874 | 24 | 3 | 1,680 | 1,692 | (12 | ) | (1 | ) | |||||||||||||||||||
NONINTEREST EXPENSE | |||||||||||||||||||||||||||||
Employee compensation and benefits | 763 | 756 | 7 | 1 | 1,536 | 1,527 | 9 | 1 | |||||||||||||||||||||
Outside processing and software | 202 | 204 | (2 | ) | (1 | ) | 400 | 394 | 6 | 2 | |||||||||||||||||||
Net occupancy expense | 78 | 85 | (7 | ) | (8 | ) | 163 | 169 | (6 | ) | (4 | ) | |||||||||||||||||
Equipment expense | 42 | 42 | — | — | 82 | 82 | — | — | |||||||||||||||||||||
FDIC premium/regulatory exams | 44 | 35 | 9 | 26 | 80 | 72 | 8 | 11 | |||||||||||||||||||||
Marketing and customer development | 38 | 34 | 4 | 12 | 82 | 61 | 21 | 34 | |||||||||||||||||||||
Operating losses | 25 | 16 | 9 | 56 | 50 | 30 | 20 | 67 | |||||||||||||||||||||
Amortization | 11 | 7 | 4 | 57 | 21 | 13 | 8 | 62 | |||||||||||||||||||||
Other noninterest expense | 142 | 149 | (7 | ) | (5 | ) | 249 | 260 | (11 | ) | (4 | ) | |||||||||||||||||
Total noninterest expense | 1,345 | 1,328 | 17 | 1 | 2,663 | 2,608 | 55 | 2 | |||||||||||||||||||||
INCOME BEFORE PROVISION FOR INCOME TAXES | 695 | 687 | 8 | 1 | 1,340 | 1,309 | 31 | 2 | |||||||||||||||||||||
Provision for income taxes | 201 | 202 | (1 | ) | — | 396 | 393 | 3 | 1 | ||||||||||||||||||||
NET INCOME INCLUDING INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST | 494 | 485 | 9 | 2 | 944 | 916 | 28 | 3 | |||||||||||||||||||||
Net income attributable to noncontrolling interest | 2 | 2 | — | — | 5 | 4 | 1 | 25 | |||||||||||||||||||||
NET INCOME | $492 | $483 | $9 | 2 | % | $939 | $912 | $27 | 3 | % | |||||||||||||||||||
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS | $475 | $467 | $8 | 2 | % | $906 | $877 | $29 | 3 | % | |||||||||||||||||||
Net interest income-FTE 1 | 1,323 | 1,203 | 120 | 10 | 2,640 | 2,378 | 262 | 11 | |||||||||||||||||||||
Total revenue | 2,186 | 2,041 | 145 | 7 | 4,249 | 3,999 | 250 | 6 | |||||||||||||||||||||
Total revenue-FTE 1 | 2,221 | 2,077 | 144 | 7 | 4,320 | 4,070 | 250 | 6 | |||||||||||||||||||||
Net income per average common share: | |||||||||||||||||||||||||||||
Diluted | 0.94 | 0.89 | 0.05 | 6 | 1.78 | 1.67 | 0.11 | 7 | |||||||||||||||||||||
Basic | 0.95 | 0.90 | 0.05 | 6 | 1.80 | 1.69 | 0.11 | 7 | |||||||||||||||||||||
Cash dividends paid per common share | 0.24 | 0.24 | — | — | 0.48 | 0.44 | 0.04 | 9 | |||||||||||||||||||||
Average common shares outstanding: | |||||||||||||||||||||||||||||
Diluted | 505,560 | 522,479 | (16,919 | ) | (3 | ) | 507,975 | 524,646 | (16,671 | ) | (3 | ) | |||||||||||||||||
Basic | 501,374 | 516,968 | (15,594 | ) | (3 | ) | 503,428 | 518,983 | (15,555 | ) | (3 | ) | |||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||||||||||||
(Dollars in millions and shares in thousands, except per share data) (Unaudited) | June 30 | March 31 | Increase/(Decrease) | December 31 | September 30 | June 30 | ||||||||||||||||||||
2016 | 2016 | Amount | % 2 | 2015 | 2015 | 2015 | ||||||||||||||||||||
Interest income | $1,424 | $1,411 | $13 | 1 | % | $1,363 | $1,333 | $1,297 | ||||||||||||||||||
Interest expense | 136 | 129 | 7 | 5 | 117 | 122 | 130 | |||||||||||||||||||
NET INTEREST INCOME | 1,288 | 1,282 | 6 | — | 1,246 | 1,211 | 1,167 | |||||||||||||||||||
Provision for credit losses | 146 | 101 | 45 | 45 | 51 | 32 | 26 | |||||||||||||||||||
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES | 1,142 | 1,181 | (39 | ) | (3 | ) | 1,195 | 1,179 | 1,141 | |||||||||||||||||
NONINTEREST INCOME | ||||||||||||||||||||||||||
Service charges on deposit accounts | 162 | 153 | 9 | 6 | 156 | 159 | 156 | |||||||||||||||||||
Other charges and fees | 104 | 93 | 11 | 12 | 92 | 97 | 99 | |||||||||||||||||||
Card fees | 83 | 78 | 5 | 6 | 82 | 83 | 84 | |||||||||||||||||||
Investment banking income | 126 | 98 | 28 | 29 | 104 | 115 | 145 | |||||||||||||||||||
Trading income | 34 | 55 | (21 | ) | (38 | ) | 42 | 31 | 54 | |||||||||||||||||
Trust and investment management income | 75 | 75 | — | — | 79 | 86 | 84 | |||||||||||||||||||
Retail investment services | 72 | 69 | 3 | 4 | 71 | 77 | 80 | |||||||||||||||||||
Mortgage production related income | 111 | 60 | 51 | 85 | 53 | 58 | 76 | |||||||||||||||||||
Mortgage servicing related income | 52 | 62 | (10 | ) | (16 | ) | 56 | 40 | 30 | |||||||||||||||||
Net securities gains | 4 | — | 4 | NM | — | 7 | 14 | |||||||||||||||||||
Other noninterest income | 75 | 38 | 37 | 97 | 30 | 58 | 52 | |||||||||||||||||||
Total noninterest income | 898 | 781 | 117 | 15 | 765 | 811 | 874 | |||||||||||||||||||
NONINTEREST EXPENSE | ||||||||||||||||||||||||||
Employee compensation and benefits | 763 | 774 | (11 | ) | (1 | ) | 690 | 725 | 756 | |||||||||||||||||
Outside processing and software | 202 | 198 | 4 | 2 | 222 | 200 | 204 | |||||||||||||||||||
Net occupancy expense | 78 | 85 | (7 | ) | (8 | ) | 86 | 86 | 85 | |||||||||||||||||
Equipment expense | 42 | 40 | 2 | 5 | 41 | 41 | 42 | |||||||||||||||||||
FDIC premium/regulatory exams | 44 | 36 | 8 | 22 | 35 | 32 | 35 | |||||||||||||||||||
Marketing and customer development | 38 | 44 | (6 | ) | (14 | ) | 48 | 42 | 34 | |||||||||||||||||
Operating losses | 25 | 24 | 1 | 4 | 22 | 3 | 16 | |||||||||||||||||||
Amortization | 11 | 10 | 1 | 10 | 17 | 9 | 7 | |||||||||||||||||||
Other noninterest expense | 142 | 107 | 35 | 33 | 127 | 126 | 149 | |||||||||||||||||||
Total noninterest expense | 1,345 | 1,318 | 27 | 2 | 1,288 | 1,264 | 1,328 | |||||||||||||||||||
INCOME BEFORE PROVISION FOR INCOME TAXES | 695 | 644 | 51 | 8 | 672 | 726 | 687 | |||||||||||||||||||
Provision for income taxes | 201 | 195 | 6 | 3 | 185 | 187 | 202 | |||||||||||||||||||
NET INCOME INCLUDING INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST | 494 | 449 | 45 | 10 | 487 | 539 | 485 | |||||||||||||||||||
Net income attributable to noncontrolling interest | 2 | 2 | — | — | 3 | 2 | 2 | |||||||||||||||||||
NET INCOME | $492 | $447 | $45 | 10 | % | $484 | $537 | $483 | ||||||||||||||||||
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS | $475 | $430 | $45 | 10 | % | $467 | $519 | $467 | ||||||||||||||||||
Net interest income-FTE 1 | 1,323 | 1,318 | 5 | — | 1,281 | 1,247 | 1,203 | |||||||||||||||||||
Total revenue | 2,186 | 2,063 | 123 | 6 | 2,011 | 2,022 | 2,041 | |||||||||||||||||||
Total revenue-FTE 1 | 2,221 | 2,099 | 122 | 6 | 2,046 | 2,058 | 2,077 | |||||||||||||||||||
Net income per average common share: | ||||||||||||||||||||||||||
Diluted | 0.94 | 0.84 | 0.10 | 12 | 0.91 | 1.00 | 0.89 | |||||||||||||||||||
Basic | 0.95 | 0.85 | 0.10 | 12 | 0.92 | 1.01 | 0.90 | |||||||||||||||||||
Cash dividends paid per common share | 0.24 | 0.24 | — | — | 0.24 | 0.24 | 0.24 | |||||||||||||||||||
Average common shares outstanding: | ||||||||||||||||||||||||||
Diluted | 505,560 | 509,931 | (4,371 | ) | (1 | ) | 514,507 | 518,677 | 522,479 | |||||||||||||||||
Basic | 501,374 | 505,482 | (4,108 | ) | (1 | ) | 508,536 | 513,010 | 516,968 | |||||||||||||||||
June 30 | (Decrease)/Increase | |||||||||||||
(Dollars in millions and shares in thousands, except per share data) (Unaudited) | 2016 | 2015 | Amount | % 2 | ||||||||||
ASSETS | ||||||||||||||
Cash and due from banks | $4,134 | $5,915 | ($1,781 | ) | (30 | )% | ||||||||
Federal funds sold and securities borrowed or purchased under agreements to resell | 1,107 | 1,350 | (243 | ) | (18 | ) | ||||||||
Interest-bearing deposits in other banks | 24 | 23 | 1 | 4 | ||||||||||
Trading assets and derivative instruments | 7,031 | 6,438 | 593 | 9 | ||||||||||
Securities available for sale | 29,336 | 27,113 | 2,223 | 8 | ||||||||||
Loans held for sale ("LHFS") | 2,468 | 2,457 | 11 | — | ||||||||||
Loans held for investment: | ||||||||||||||
Commercial and industrial ("C&I") | 68,603 | 65,713 | 2,890 | 4 | ||||||||||
Commercial real estate ("CRE") | 6,228 | 6,058 | 170 | 3 | ||||||||||
Commercial construction | 2,617 | 1,530 | 1,087 | 71 | ||||||||||
Residential mortgages - guaranteed | 534 | 625 | (91 | ) | (15 | ) | ||||||||
Residential mortgages - nonguaranteed | 26,037 | 24,038 | 1,999 | 8 | ||||||||||
Residential home equity products | 12,481 | 13,672 | (1,191 | ) | (9 | ) | ||||||||
Residential construction | 397 | 401 | (4 | ) | (1 | ) | ||||||||
Consumer student - guaranteed | 5,562 | 4,401 | 1,161 | 26 | ||||||||||
Consumer other direct | 6,825 | 5,329 | 1,496 | 28 | ||||||||||
Consumer indirect | 11,195 | 9,834 | 1,361 | 14 | ||||||||||
Consumer credit cards | 1,177 | 937 | 240 | 26 | ||||||||||
Total loans held for investment | 141,656 | 132,538 | 9,118 | 7 | ||||||||||
Allowance for loan and lease losses ("ALLL") | (1,774 | ) | (1,834 | ) | (60 | ) | (3 | ) | ||||||
Net loans held for investment | 139,882 | 130,704 | 9,178 | 7 | ||||||||||
Goodwill | 6,337 | 6,337 | — | — | ||||||||||
MSRs | 1,061 | 1,393 | (332 | ) | (24 | ) | ||||||||
Other assets | 7,693 | 7,128 | 565 | 8 | ||||||||||
Total assets 1 | $199,073 | $188,858 | $10,215 | 5 | % | |||||||||
LIABILITIES | ||||||||||||||
Deposits: | ||||||||||||||
Noninterest-bearing consumer and commercial deposits | $42,466 | $42,773 | ($307 | ) | (1 | )% | ||||||||
Interest-bearing consumer and commercial deposits: | ||||||||||||||
NOW accounts | 39,869 | 35,125 | 4,744 | 14 | ||||||||||
Money market accounts | 53,410 | 49,586 | 3,824 | 8 | ||||||||||
Savings | 6,343 | 6,263 | 80 | 1 | ||||||||||
Consumer time | 5,836 | 6,398 | (562 | ) | (9 | ) | ||||||||
Other time | 3,855 | 3,777 | 78 | 2 | ||||||||||
Total consumer and commercial deposits | 151,779 | 143,922 | 7,857 | 5 | ||||||||||
Brokered time deposits | 972 | 865 | 107 | 12 | ||||||||||
Foreign deposits | — | 150 | (150 | ) | (100 | ) | ||||||||
Total deposits | 152,751 | 144,937 | 7,814 | 5 | ||||||||||
Funds purchased | 1,352 | 1,011 | 341 | 34 | ||||||||||
Securities sold under agreements to repurchase | 1,622 | 1,858 | (236 | ) | (13 | ) | ||||||||
Other short-term borrowings | 1,883 | 3,248 | (1,365 | ) | (42 | ) | ||||||||
Long-term debt | 12,264 | 10,109 | 2,155 | 21 | ||||||||||
Trading liabilities and derivative instruments | 1,426 | 1,308 | 118 | 9 | ||||||||||
Other liabilities | 3,311 | 3,164 | 147 | 5 | ||||||||||
Total liabilities | 174,609 | 165,635 | 8,974 | 5 | ||||||||||
SHAREHOLDERS' EQUITY | ||||||||||||||
Preferred stock, no par value | 1,225 | 1,225 | — | — | ||||||||||
Common stock, $1.00 par value | 550 | 550 | — | — | ||||||||||
Additional paid-in capital | 9,003 | 9,080 | (77 | ) | (1 | ) | ||||||||
Retained earnings | 15,353 | 13,944 | 1,409 | 10 | ||||||||||
Treasury stock, at cost, and other | (1,900 | ) | (1,282 | ) | 618 | 48 | ||||||||
Accumulated other comprehensive income/(loss), net of tax | 233 | (294 | ) | 527 | NM | |||||||||
Total shareholders' equity | 24,464 | 23,223 | 1,241 | 5 | ||||||||||
Total liabilities and shareholders' equity | $199,073 | $188,858 | $10,215 | 5 | % | |||||||||
Common shares outstanding | 501,412 | 518,045 | (16,633 | ) | (3 | )% | ||||||||
Common shares authorized | 750,000 | 750,000 | — | — | ||||||||||
Preferred shares outstanding | 12 | 12 | — | — | ||||||||||
Preferred shares authorized | 50,000 | 50,000 | — | — | ||||||||||
Treasury shares of common stock | 48,509 | 31,876 | 16,633 | 52 |
(Dollars in millions and shares in thousands, except per share data) (Unaudited) | June 30 | March 31 | Increase/(Decrease) | December 31 | September 30 | June 30 | ||||||||||||||||||||
2016 | 2016 | Amount | % 2 | 2015 | 2015 | 2015 | ||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||
Cash and due from banks | $4,134 | $3,074 | $1,060 | 34 | % | $4,299 | $3,788 | $5,915 | ||||||||||||||||||
Federal funds sold and securities borrowed or purchased under agreements to resell | 1,107 | 1,229 | (122 | ) | (10 | ) | 1,277 | 1,105 | 1,350 | |||||||||||||||||
Interest-bearing deposits in other banks | 24 | 24 | — | — | 23 | 23 | 23 | |||||||||||||||||||
Trading assets and derivative instruments | 7,031 | 7,050 | (19 | ) | — | 6,119 | 6,537 | 6,438 | ||||||||||||||||||
Securities available for sale | 29,336 | 28,188 | 1,148 | 4 | 27,825 | 27,270 | 27,113 | |||||||||||||||||||
LHFS | 2,468 | 1,911 | 557 | 29 | 1,838 | 2,032 | 2,457 | |||||||||||||||||||
Loans held for investment: | ||||||||||||||||||||||||||
C&I | 68,603 | 68,963 | (360 | ) | (1 | ) | 67,062 | 65,371 | 65,713 | |||||||||||||||||
CRE | 6,228 | 6,034 | 194 | 3 | 6,236 | 6,168 | 6,058 | |||||||||||||||||||
Commercial construction | 2,617 | 2,498 | 119 | 5 | 1,954 | 1,763 | 1,530 | |||||||||||||||||||
Residential mortgages - guaranteed | 534 | 623 | (89 | ) | (14 | ) | 629 | 627 | 625 | |||||||||||||||||
Residential mortgages - nonguaranteed | 26,037 | 25,148 | 889 | 4 | 24,744 | 24,351 | 24,038 | |||||||||||||||||||
Residential home equity products | 12,481 | 12,845 | (364 | ) | (3 | ) | 13,171 | 13,416 | 13,672 | |||||||||||||||||
Residential construction | 397 | 383 | 14 | 4 | 384 | 394 | 401 | |||||||||||||||||||
Consumer student - guaranteed | 5,562 | 5,265 | 297 | 6 | 4,922 | 4,588 | 4,401 | |||||||||||||||||||
Consumer other direct | 6,825 | 6,372 | 453 | 7 | 6,127 | 5,771 | 5,329 | |||||||||||||||||||
Consumer indirect | 11,195 | 10,522 | 673 | 6 | 10,127 | 10,119 | 9,834 | |||||||||||||||||||
Consumer credit cards | 1,177 | 1,093 | 84 | 8 | 1,086 | 992 | 937 | |||||||||||||||||||
Total loans held for investment | 141,656 | 139,746 | 1,910 | 1 | 136,442 | 133,560 | 132,538 | |||||||||||||||||||
ALLL | (1,774 | ) | (1,770 | ) | 4 | — | (1,752 | ) | (1,786 | ) | (1,834 | ) | ||||||||||||||
Net loans held for investment | 139,882 | 137,976 | 1,906 | 1 | 134,690 | 131,774 | 130,704 | |||||||||||||||||||
Goodwill | 6,337 | 6,337 | — | — | 6,337 | 6,337 | 6,337 | |||||||||||||||||||
MSRs | 1,061 | 1,182 | (121 | ) | (10 | ) | 1,307 | 1,262 | 1,393 | |||||||||||||||||
Other assets | 7,693 | 7,187 | 506 | 7 | 7,102 | 6,908 | 7,128 | |||||||||||||||||||
Total assets 1 | $199,073 | $194,158 | $4,915 | 3 | % | $190,817 | $187,036 | $188,858 | ||||||||||||||||||
LIABILITIES | ||||||||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||||
Noninterest-bearing consumer and commercial deposits | $42,466 | $42,256 | $210 | — | % | $42,272 | $41,487 | $42,773 | ||||||||||||||||||
Interest-bearing consumer and commercial deposits: | ||||||||||||||||||||||||||
NOW accounts | 39,869 | 39,273 | 596 | 2 | 38,990 | 36,164 | 35,125 | |||||||||||||||||||
Money market accounts | 53,410 | 53,327 | 83 | — | 51,783 | 51,628 | 49,586 | |||||||||||||||||||
Savings | 6,343 | 6,418 | (75 | ) | (1 | ) | 6,057 | 6,133 | 6,263 | |||||||||||||||||
Consumer time | 5,836 | 6,085 | (249 | ) | (4 | ) | 6,108 | 6,205 | 6,398 | |||||||||||||||||
Other time | 3,855 | 3,905 | (50 | ) | (1 | ) | 3,711 | 3,720 | 3,777 | |||||||||||||||||
Total consumer and commercial deposits | 151,779 | 151,264 | 515 | — | 148,921 | 145,337 | 143,922 | |||||||||||||||||||
Brokered time deposits | 972 | 897 | 75 | 8 | 899 | 884 | 865 | |||||||||||||||||||
Foreign deposits | — | — | — | — | 10 | 150 | 150 | |||||||||||||||||||
Total deposits | 152,751 | 152,161 | 590 | — | 149,830 | 146,371 | 144,937 | |||||||||||||||||||
Funds purchased | 1,352 | 1,497 | (145 | ) | (10 | ) | 1,949 | 1,329 | 1,011 | |||||||||||||||||
Securities sold under agreements to repurchase | 1,622 | 1,774 | (152 | ) | (9 | ) | 1,654 | 1,536 | 1,858 | |||||||||||||||||
Other short-term borrowings | 1,883 | 1,673 | 210 | 13 | 1,024 | 1,077 | 3,248 | |||||||||||||||||||
Long-term debt | 12,264 | 8,514 | 3,750 | 44 | 8,462 | 8,444 | 10,109 | |||||||||||||||||||
Trading liabilities and derivative instruments | 1,426 | 1,536 | (110 | ) | (7 | ) | 1,263 | 1,330 | 1,308 | |||||||||||||||||
Other liabilities | 3,311 | 2,950 | 361 | 12 | 3,198 | 3,285 | 3,164 | |||||||||||||||||||
Total liabilities | 174,609 | 170,105 | 4,504 | 3 | 167,380 | 163,372 | 165,635 | |||||||||||||||||||
SHAREHOLDERS’ EQUITY | ||||||||||||||||||||||||||
Preferred stock, no par value | 1,225 | 1,225 | — | — | 1,225 | 1,225 | 1,225 | |||||||||||||||||||
Common stock, $1.00 par value | 550 | 550 | — | — | 550 | 550 | 550 | |||||||||||||||||||
Additional paid-in capital | 9,003 | 9,017 | (14 | ) | — | 9,094 | 9,087 | 9,080 | ||||||||||||||||||
Retained earnings | 15,353 | 14,999 | 354 | 2 | 14,686 | 14,341 | 13,944 | |||||||||||||||||||
Treasury stock, at cost, and other | (1,900 | ) | (1,759 | ) | 141 | 8 | (1,658 | ) | (1,451 | ) | (1,282 | ) | ||||||||||||||
Accumulated other comprehensive income/(loss), net of tax | 233 | 21 | 212 | NM | (460 | ) | (88 | ) | (294 | ) | ||||||||||||||||
Total shareholders’ equity | 24,464 | 24,053 | 411 | 2 | 23,437 | 23,664 | 23,223 | |||||||||||||||||||
Total liabilities and shareholders’ equity | $199,073 | $194,158 | $4,915 | 3 | % | $190,817 | $187,036 | $188,858 | ||||||||||||||||||
Common shares outstanding | 501,412 | 505,443 | (4,031 | ) | (1 | )% | 508,712 | 514,106 | 518,045 | |||||||||||||||||
Common shares authorized | 750,000 | 750,000 | — | — | 750,000 | 750,000 | 750,000 | |||||||||||||||||||
Preferred shares outstanding | 12 | 12 | — | — | 12 | 12 | 12 | |||||||||||||||||||
Preferred shares authorized | 50,000 | 50,000 | — | — | 50,000 | 50,000 | 50,000 | |||||||||||||||||||
Treasury shares of common stock | 48,509 | 44,478 | 4,031 | 9 | 41,209 | 35,815 | 31,876 |
SunTrust Banks, Inc. and Subsidiaries CONSOLIDATED DAILY AVERAGE BALANCES, INCOME/EXPENSE, AND AVERAGE YIELDS EARNED/RATES PAID | |||||||||||||||||||||||||||||||||||
Three Months Ended | Increase/(Decrease) From | ||||||||||||||||||||||||||||||||||
June 30, 2016 | March 31, 2016 | Sequential Quarter | Prior Year Quarter | ||||||||||||||||||||||||||||||||
(Dollars in millions) (Unaudited) | Average Balances | Interest Income/Expense | Yields/ Rates | Average Balances | Interest Income/Expense | Yields/ Rates | Average Balances | Yields/ Rates | Average Balances | Yields/ Rates | |||||||||||||||||||||||||
ASSETS | |||||||||||||||||||||||||||||||||||
Loans held for investment: 1 | |||||||||||||||||||||||||||||||||||
Commercial and industrial ("C&I") | $68,918 | $533 | 3.11 | % | $68,058 | $529 | 3.13 | % | $860 | (0.02 | ) | $3,175 | 0.12 | ||||||||||||||||||||||
Commercial real estate ("CRE") | 6,055 | 44 | 2.91 | 6,066 | 44 | 2.91 | (11 | ) | — | (91 | ) | 0.10 | |||||||||||||||||||||||
Commercial construction | 2,589 | 21 | 3.25 | 2,232 | 18 | 3.28 | 357 | (0.03 | ) | 1,070 | 0.07 | ||||||||||||||||||||||||
Residential mortgages - guaranteed | 580 | 6 | 3.98 | 641 | 6 | 3.80 | (61 | ) | 0.18 | (51 | ) | 0.13 | |||||||||||||||||||||||
Residential mortgages - nonguaranteed | 25,408 | 241 | 3.80 | 24,712 | 236 | 3.81 | 696 | (0.01 | ) | 1,929 | (0.06 | ) | |||||||||||||||||||||||
Residential home equity products | 12,464 | 122 | 3.95 | 12,849 | 126 | 3.95 | (385 | ) | — | (1,193 | ) | 0.27 | |||||||||||||||||||||||
Residential construction | 376 | 4 | 4.41 | 368 | 4 | 4.42 | 8 | (0.01 | ) | (6 | ) | (0.42 | ) | ||||||||||||||||||||||
Consumer student - guaranteed | 5,412 | 54 | 3.98 | 5,092 | 50 | 3.98 | 320 | — | 1,067 | 0.24 | |||||||||||||||||||||||||
Consumer other direct | 6,590 | 74 | 4.54 | 6,239 | 70 | 4.48 | 351 | 0.06 | 1,450 | 0.27 | |||||||||||||||||||||||||
Consumer indirect | 10,771 | 90 | 3.37 | 10,279 | 87 | 3.39 | 492 | (0.02 | ) | 487 | 0.17 | ||||||||||||||||||||||||
Consumer credit cards | 1,125 | 29 | 10.09 | 1,077 | 28 | 10.31 | 48 | (0.22 | ) | 221 | 0.24 | ||||||||||||||||||||||||
Nonaccrual | 950 | 4 | 1.67 | 759 | 5 | 2.72 | 191 | (1.05 | ) | 351 | (3.66 | ) | |||||||||||||||||||||||
Total loans held for investment | 141,238 | 1,222 | 3.48 | 138,372 | 1,203 | 3.50 | 2,866 | (0.02 | ) | 8,409 | 0.11 | ||||||||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||||||||||||||||
Taxable | 27,910 | 160 | 2.29 | 27,164 | 162 | 2.39 | 746 | (0.10 | ) | 1,735 | 0.23 | ||||||||||||||||||||||||
Tax-exempt | 151 | 1 | 3.60 | 151 | 1 | 3.64 | — | (0.04 | ) | (29 | ) | (0.12 | ) | ||||||||||||||||||||||
Total securities available for sale | 28,061 | 161 | 2.29 | 27,315 | 163 | 2.39 | 746 | (0.10 | ) | 1,706 | 0.21 | ||||||||||||||||||||||||
Federal funds sold and securities borrowed or purchased under agreements to resell | 1,227 | — | 0.17 | 1,234 | — | 0.18 | (7 | ) | (0.01 | ) | 7 | 0.17 | |||||||||||||||||||||||
Loans held for sale ("LHFS") | 2,015 | 18 | 3.61 | 1,816 | 19 | 4.15 | 199 | (0.54 | ) | (742 | ) | 0.26 | |||||||||||||||||||||||
Interest-bearing deposits in other banks | 23 | — | 0.29 | 23 | — | 0.47 | — | (0.18 | ) | — | 0.16 | ||||||||||||||||||||||||
Interest earning trading assets | 5,491 | 23 | 1.65 | 5,429 | 26 | 1.86 | 62 | (0.21 | ) | 214 | (0.02 | ) | |||||||||||||||||||||||
Total earning assets | 178,055 | 1,424 | 3.22 | 174,189 | 1,411 | 3.26 | 3,866 | (0.04 | ) | 9,594 | 0.13 | ||||||||||||||||||||||||
Allowance for loan and lease losses ("ALLL") | (1,756 | ) | (1,750 | ) | (6 | ) | 108 | ||||||||||||||||||||||||||||
Cash and due from banks | 5,127 | 4,015 | 1,112 | (82 | ) | ||||||||||||||||||||||||||||||
Other assets | 14,675 | 14,639 | 36 | 26 | |||||||||||||||||||||||||||||||
Noninterest earning trading assets and derivative instruments | 1,529 | 1,387 | 142 | 264 | |||||||||||||||||||||||||||||||
Unrealized gains on securities available for sale, net | 677 | 534 | 143 | 87 | |||||||||||||||||||||||||||||||
Total assets | $198,307 | $193,014 | $5,293 | $9,997 | |||||||||||||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||||||||||||||||||||||||
Interest-bearing deposits: | |||||||||||||||||||||||||||||||||||
NOW accounts | $41,691 | $13 | 0.12 | % | $37,994 | $10 | 0.10 | % | $3,697 | 0.02 | $7,335 | 0.03 | |||||||||||||||||||||||
Money market accounts | 53,186 | 25 | 0.19 | 53,063 | 24 | 0.18 | 123 | 0.01 | 3,659 | 0.02 | |||||||||||||||||||||||||
Savings | 6,399 | 1 | 0.02 | 6,179 | — | 0.03 | 220 | (0.01 | ) | 118 | (0.01 | ) | |||||||||||||||||||||||
Consumer time | 5,984 | 11 | 0.76 | 6,104 | 12 | 0.79 | (120 | ) | (0.03 | ) | (561 | ) | (0.01 | ) | |||||||||||||||||||||
Other time | 3,881 | 10 | 1.03 | 3,813 | 10 | 1.04 | 68 | (0.01 | ) | 42 | — | ||||||||||||||||||||||||
Total interest-bearing consumer and commercial deposits | 111,141 | 60 | 0.22 | 107,153 | 56 | 0.21 | 3,988 | 0.01 | 10,593 | 0.01 | |||||||||||||||||||||||||
Brokered time deposits | 913 | 3 | 1.35 | 898 | 3 | 1.37 | 15 | (0.02 | ) | 38 | (0.04 | ) | |||||||||||||||||||||||
Foreign deposits | 46 | — | 0.34 | 4 | — | 0.33 | 42 | 0.01 | (197 | ) | 0.22 | ||||||||||||||||||||||||
Total interest-bearing deposits | 112,100 | 63 | 0.23 | 108,055 | 59 | 0.22 | 4,045 | 0.01 | 10,434 | 0.01 | |||||||||||||||||||||||||
Funds purchased | 1,032 | 1 | 0.36 | 1,399 | 1 | 0.35 | (367 | ) | 0.01 | 322 | 0.26 | ||||||||||||||||||||||||
Securities sold under agreements to repurchase | 1,718 | 2 | 0.40 | 1,819 | 2 | 0.40 | (101 | ) | — | (109 | ) | 0.20 | |||||||||||||||||||||||
Interest-bearing trading liabilities | 1,006 | 6 | 2.39 | 1,017 | 6 | 2.56 | (11 | ) | (0.17 | ) | 81 | (0.05 | ) | ||||||||||||||||||||||
Other short-term borrowings | 1,220 | — | 0.20 | 2,351 | 2 | 0.32 | (1,131 | ) | (0.12 | ) | (362 | ) | 0.06 | ||||||||||||||||||||||
Long-term debt | 10,517 | 64 | 2.46 | 8,637 | 59 | 2.73 | 1,880 | (0.27 | ) | (1,893 | ) | 0.28 | |||||||||||||||||||||||
Total interest-bearing liabilities | 127,593 | 136 | 0.43 | 123,278 | 129 | 0.42 | 4,315 | 0.01 | 8,473 | (0.01 | ) | ||||||||||||||||||||||||
Noninterest-bearing deposits | 43,025 | 42,076 | 949 | 722 | |||||||||||||||||||||||||||||||
Other liabilities | 3,217 | 3,321 | (104 | ) | (18 | ) | |||||||||||||||||||||||||||||
Noninterest-bearing trading liabilities and derivative instruments | 454 | 542 | (88 | ) | 41 | ||||||||||||||||||||||||||||||
Shareholders’ equity | 24,018 | 23,797 | 221 | 779 | |||||||||||||||||||||||||||||||
Total liabilities and shareholders’ equity | $198,307 | $193,014 | $5,293 | $9,997 | |||||||||||||||||||||||||||||||
Interest Rate Spread | 2.79 | % | 2.84 | % | (0.05 | ) | 0.14 | ||||||||||||||||||||||||||||
Net Interest Income | $1,288 | $1,282 | |||||||||||||||||||||||||||||||||
Net Interest Income-FTE 2 | $1,323 | $1,318 | |||||||||||||||||||||||||||||||||
Net Interest Margin 3 | 2.91 | % | 2.96 | % | (0.05 | ) | 0.13 | ||||||||||||||||||||||||||||
Net Interest Margin-FTE 2, 3 | 2.99 | 3.04 | (0.05 | ) | 0.13 | ||||||||||||||||||||||||||||||
SunTrust Banks, Inc. and Subsidiaries CONSOLIDATED DAILY AVERAGE BALANCES, INCOME/EXPENSE, AND AVERAGE YIELDS EARNED/RATES PAID, continued | ||||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||
December 31, 2015 | September 30, 2015 | June 30, 2015 | ||||||||||||||||||||||||||||||
(Dollars in millions) (Unaudited) | Average Balances | Interest Income/Expense | Yields/ Rates | Average Balances | Interest Income/Expense | Yields/ Rates | Average Balances | Interest Income/Expense | Yields/ Rates | |||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||||||
Loans held for investment: 1 | ||||||||||||||||||||||||||||||||
C&I | $66,405 | $508 | 3.04 | % | $65,269 | $499 | 3.04 | % | $65,743 | $490 | 2.99 | % | ||||||||||||||||||||
CRE | 6,072 | 43 | 2.78 | 6,024 | 43 | 2.85 | 6,146 | 43 | 2.81 | |||||||||||||||||||||||
Commercial construction | 1,936 | 15 | 3.05 | 1,609 | 13 | 3.12 | 1,519 | 12 | 3.18 | |||||||||||||||||||||||
Residential mortgages - guaranteed | 647 | 7 | 4.49 | 630 | 5 | 3.14 | 631 | 6 | 3.85 | |||||||||||||||||||||||
Residential mortgages - nonguaranteed | 24,325 | 232 | 3.82 | 24,109 | 232 | 3.85 | 23,479 | 226 | 3.86 | |||||||||||||||||||||||
Residential home equity products | 13,161 | 125 | 3.78 | 13,381 | 126 | 3.72 | 13,657 | 125 | 3.68 | |||||||||||||||||||||||
Residential construction | 376 | 4 | 4.65 | 379 | 5 | 4.68 | 382 | 5 | 4.83 | |||||||||||||||||||||||
Consumer student - guaranteed | 4,745 | 46 | 3.86 | 4,494 | 43 | 3.83 | 4,345 | 41 | 3.74 | |||||||||||||||||||||||
Consumer other direct | 5,924 | 65 | 4.34 | 5,550 | 61 | 4.33 | 5,140 | 55 | 4.27 | |||||||||||||||||||||||
Consumer indirect | 10,098 | 85 | 3.35 | 9,968 | 83 | 3.29 | 10,284 | 82 | 3.20 | |||||||||||||||||||||||
Consumer credit cards | 1,024 | 26 | 10.17 | 965 | 24 | 10.14 | 904 | 22 | 9.85 | |||||||||||||||||||||||
Nonaccrual | 501 | 5 | 3.86 | 459 | 5 | 4.49 | 599 | 8 | 5.33 | |||||||||||||||||||||||
Total loans held for investment | 135,214 | 1,161 | 3.41 | 132,837 | 1,139 | 3.40 | 132,829 | 1,115 | 3.37 | |||||||||||||||||||||||
Securities available for sale: | ||||||||||||||||||||||||||||||||
Taxable | 26,823 | 162 | 2.42 | 26,621 | 151 | 2.27 | 26,175 | 135 | 2.06 | |||||||||||||||||||||||
Tax-exempt | 161 | 1 | 3.67 | 170 | 2 | 3.69 | 180 | 2 | 3.72 | |||||||||||||||||||||||
Total securities available for sale | 26,984 | 163 | 2.42 | 26,791 | 153 | 2.28 | 26,355 | 137 | 2.08 | |||||||||||||||||||||||
Federal funds sold and securities borrowed or purchased under agreements to resell | 1,127 | — | 0.01 | 1,100 | — | 0.03 | 1,220 | — | — | |||||||||||||||||||||||
LHFS | 1,728 | 16 | 3.70 | 2,288 | 20 | 3.60 | 2,757 | 23 | 3.35 | |||||||||||||||||||||||
Interest-bearing deposits in other banks | 23 | — | 0.09 | 22 | — | 0.14 | 23 | — | 0.13 | |||||||||||||||||||||||
Interest earning trading assets | 5,186 | 23 | 1.73 | 5,296 | 21 | 1.57 | 5,277 | 22 | 1.67 | |||||||||||||||||||||||
Total earning assets | 170,262 | 1,363 | 3.18 | 168,334 | 1,333 | 3.14 | 168,461 | 1,297 | 3.09 | |||||||||||||||||||||||
ALLL | (1,764 | ) | (1,804 | ) | (1,864 | ) | ||||||||||||||||||||||||||
Cash and due from banks | 4,965 | 5,729 | 5,209 | |||||||||||||||||||||||||||||
Other assets | 14,525 | 14,522 | 14,649 | |||||||||||||||||||||||||||||
Noninterest earning trading assets and derivative instruments | 1,230 | 1,165 | 1,265 | |||||||||||||||||||||||||||||
Unrealized gains on securities available for sale, net | 438 | 395 | 590 | |||||||||||||||||||||||||||||
Total assets | $189,656 | $188,341 | $188,310 | |||||||||||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||||||||||||||||||
NOW accounts | $37,293 | $9 | 0.09 | % | $35,784 | $8 | 0.09 | % | $34,356 | $8 | 0.09 | % | ||||||||||||||||||||
Money market accounts | 52,250 | 21 | 0.16 | 51,064 | 21 | 0.16 | 49,527 | 21 | 0.17 | |||||||||||||||||||||||
Savings | 6,095 | — | 0.03 | 6,203 | — | 0.03 | 6,281 | — | 0.03 | |||||||||||||||||||||||
Consumer time | 6,156 | 12 | 0.77 | 6,286 | 12 | 0.75 | 6,545 | 13 | 0.77 | |||||||||||||||||||||||
Other time | 3,721 | 10 | 1.02 | 3,738 | 10 | 1.01 | 3,839 | 10 | 1.03 | |||||||||||||||||||||||
Total interest-bearing consumer and commercial deposits | 105,515 | 52 | 0.19 | 103,075 | 51 | 0.20 | 100,548 | 52 | 0.21 | |||||||||||||||||||||||
Brokered time deposits | 890 | 3 | 1.38 | 870 | 3 | 1.38 | 875 | 3 | 1.39 | |||||||||||||||||||||||
Foreign deposits | 156 | — | 0.14 | 140 | — | 0.13 | 243 | — | 0.12 | |||||||||||||||||||||||
Total interest-bearing deposits | 106,561 | 55 | 0.20 | 104,085 | 54 | 0.21 | 101,666 | 55 | 0.22 | |||||||||||||||||||||||
Funds purchased | 869 | — | 0.15 | 672 | — | 0.10 | 710 | — | 0.10 | |||||||||||||||||||||||
Securities sold under agreements to repurchase | 1,773 | 1 | 0.21 | 1,765 | 1 | 0.22 | 1,827 | 1 | 0.20 | |||||||||||||||||||||||
Interest-bearing trading liabilities | 878 | 5 | 2.40 | 840 | 6 | 2.55 | 925 | 6 | 2.44 | |||||||||||||||||||||||
Other short-term borrowings | 1,113 | — | 0.09 | 2,172 | 1 | 0.16 | 1,582 | 1 | 0.14 | |||||||||||||||||||||||
Long-term debt | 8,450 | 56 | 2.62 | 9,680 | 60 | 2.47 | 12,410 | 67 | 2.18 | |||||||||||||||||||||||
Total interest-bearing liabilities | 119,644 | 117 | 0.39 | 119,214 | 122 | 0.41 | 119,120 | 130 | 0.44 | |||||||||||||||||||||||
Noninterest-bearing deposits | 42,648 | 42,151 | 42,303 | |||||||||||||||||||||||||||||
Other liabilities | 3,393 | 3,198 | 3,235 | |||||||||||||||||||||||||||||
Noninterest-bearing trading liabilities and derivative instruments | 388 | 394 | 413 | |||||||||||||||||||||||||||||
Shareholders’ equity | 23,583 | 23,384 | 23,239 | |||||||||||||||||||||||||||||
Total liabilities and shareholders’ equity | $189,656 | $188,341 | $188,310 | |||||||||||||||||||||||||||||
Interest Rate Spread | 2.79 | % | 2.73 | % | 2.65 | % | ||||||||||||||||||||||||||
Net Interest Income | $1,246 | $1,211 | $1,167 | |||||||||||||||||||||||||||||
Net Interest Income-FTE 2 | $1,281 | $1,247 | $1,203 | |||||||||||||||||||||||||||||
Net Interest Margin 3 | 2.90 | % | 2.86 | % | 2.78 | % | ||||||||||||||||||||||||||
Net Interest Margin-FTE 2, 3 | 2.98 | 2.94 | 2.86 | |||||||||||||||||||||||||||||
1 | Interest income includes loan fees of $47 million, $50 million, and $48 million for the three months ended December 31, 2015, September 30, 2015, and June 30, 2015, respectively. |
2 | See Appendix A for additional information and reconcilements of non-U.S. GAAP performance measures. Approximately 95% of the total FTE adjustment for the three months ended December 31, 2015, September 30, 2015, and June 30, 2015 was attributed to C&I loans. |
3 | Net interest margin is calculated by dividing annualized net interest income by average total earning assets. |
SunTrust Banks, Inc. and Subsidiaries CONSOLIDATED DAILY AVERAGE BALANCES, INCOME/EXPENSE, AND AVERAGE YIELDS EARNED/RATES PAID, continued | ||||||||||||||||||||||||||||
Six Months Ended | ||||||||||||||||||||||||||||
June 30, 2016 | June 30, 2015 | Increase/(Decrease) | ||||||||||||||||||||||||||
(Dollars in millions) (Unaudited) | Average Balances | Interest Income/ Expense | Yields/ Rates | Average Balances | Interest Income/ Expense | Yields/ Rates | Average Balances | Yields/ Rates | ||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||
Loans held for investment: 1 | ||||||||||||||||||||||||||||
C&I | $68,488 | $1,063 | 3.12 | % | $65,734 | $966 | 2.97 | % | $2,754 | 0.15 | ||||||||||||||||||
CRE | 6,061 | 88 | 2.91 | 6,309 | 87 | 2.79 | (248 | ) | 0.12 | |||||||||||||||||||
Commercial construction | 2,410 | 39 | 3.26 | 1,431 | 23 | 3.17 | 979 | 0.09 | ||||||||||||||||||||
Residential mortgages - guaranteed | 610 | 12 | 3.89 | 634 | 12 | 3.71 | (24 | ) | 0.18 | |||||||||||||||||||
Residential mortgages - nonguaranteed | 25,060 | 476 | 3.80 | 23,293 | 449 | 3.85 | 1,767 | (0.05 | ) | |||||||||||||||||||
Residential home equity products | 12,657 | 248 | 3.95 | 13,804 | 250 | 3.66 | (1,147 | ) | 0.29 | |||||||||||||||||||
Residential construction | 372 | 8 | 4.42 | 390 | 10 | 5.02 | (18 | ) | (0.60 | ) | ||||||||||||||||||
Consumer student - guaranteed | 5,252 | 104 | 3.98 | 4,549 | 84 | 3.72 | 703 | 0.26 | ||||||||||||||||||||
Consumer other direct | 6,414 | 144 | 4.51 | 4,945 | 104 | 4.26 | 1,469 | 0.25 | ||||||||||||||||||||
Consumer indirect | 10,525 | 177 | 3.38 | 10,495 | 165 | 3.16 | 30 | 0.22 | ||||||||||||||||||||
Consumer credit cards | 1,101 | 56 | 10.20 | 892 | 44 | 9.84 | 209 | 0.36 | ||||||||||||||||||||
Nonaccrual | 855 | 9 | 2.14 | 606 | 12 | 4.11 | 249 | (1.97 | ) | |||||||||||||||||||
Total loans held for investment | 139,805 | 2,424 | 3.49 | 133,082 | 2,206 | 3.34 | 6,723 | 0.15 | ||||||||||||||||||||
Securities available for sale: | ||||||||||||||||||||||||||||
Taxable | 27,537 | 321 | 2.33 | 25,927 | 274 | 2.11 | 1,610 | 0.22 | ||||||||||||||||||||
Tax-exempt | 151 | 3 | 3.62 | 186 | 3 | 3.72 | (35 | ) | (0.10 | ) | ||||||||||||||||||
Total securities available for sale | 27,688 | 324 | 2.34 | 26,113 | 277 | 2.12 | 1,575 | 0.22 | ||||||||||||||||||||
Federal funds sold and securities borrowed or purchased under agreements to resell | 1,231 | 1 | 0.17 | 1,181 | — | — | 50 | 0.17 | ||||||||||||||||||||
LHFS | 1,915 | 37 | 3.87 | 2,694 | 45 | 3.34 | (779 | ) | 0.53 | |||||||||||||||||||
Interest-bearing deposits in other banks | 23 | — | 0.38 | 23 | — | 0.12 | — | 0.26 | ||||||||||||||||||||
Interest earning trading assets | 5,460 | 48 | 1.75 | 5,228 | 41 | 1.58 | 232 | 0.17 | ||||||||||||||||||||
Total earning assets | 176,122 | 2,834 | 3.24 | 168,321 | 2,569 | 3.08 | 7,801 | 0.16 | ||||||||||||||||||||
ALLL | (1,753 | ) | (1,887 | ) | 134 | |||||||||||||||||||||||
Cash and due from banks | 4,571 | 5,884 | (1,313 | ) | ||||||||||||||||||||||||
Other assets | 14,657 | 14,534 | 123 | |||||||||||||||||||||||||
Noninterest earning trading assets and derivative instruments | 1,458 | 1,333 | 125 | |||||||||||||||||||||||||
Unrealized gains on securities available for sale, net | 606 | 600 | 6 | |||||||||||||||||||||||||
Total assets | $195,661 | $188,785 | $6,876 | |||||||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||||||||||||||
NOW accounts | $39,842 | $22 | 0.11 | % | $33,761 | $15 | 0.09 | % | $6,081 | 0.02 | ||||||||||||||||||
Money market accounts | 53,125 | 49 | 0.18 | 49,361 | 43 | 0.17 | 3,764 | 0.01 | ||||||||||||||||||||
Savings | 6,289 | 1 | 0.02 | 6,182 | 1 | 0.03 | 107 | (0.01 | ) | |||||||||||||||||||
Consumer time | 6,044 | 23 | 0.78 | 6,668 | 25 | 0.77 | (624 | ) | 0.01 | |||||||||||||||||||
Other time | 3,847 | 20 | 1.04 | 3,898 | 20 | 1.02 | (51 | ) | 0.02 | |||||||||||||||||||
Total interest-bearing consumer and commercial deposits | 109,147 | 115 | 0.21 | 99,870 | 104 | 0.21 | 9,277 | — | ||||||||||||||||||||
Brokered time deposits | 906 | 6 | 1.36 | 895 | 6 | 1.45 | 11 | (0.09 | ) | |||||||||||||||||||
Foreign deposits | 25 | — | 0.34 | 288 | — | 0.12 | (263 | ) | 0.22 | |||||||||||||||||||
Total interest-bearing deposits | 110,078 | 121 | 0.22 | 101,053 | 110 | 0.22 | 9,025 | — | ||||||||||||||||||||
Funds purchased | 1,216 | 2 | 0.35 | 874 | 1 | 0.10 | 342 | 0.25 | ||||||||||||||||||||
Securities sold under agreements to repurchase | 1,768 | 4 | 0.40 | 1,874 | 2 | 0.20 | (106 | ) | 0.20 | |||||||||||||||||||
Interest-bearing trading liabilities | 1,012 | 12 | 2.48 | 904 | 11 | 2.41 | 108 | 0.07 | ||||||||||||||||||||
Other short-term borrowings | 1,785 | 3 | 0.28 | 2,635 | 2 | 0.17 | (850 | ) | 0.11 | |||||||||||||||||||
Long-term debt | 9,577 | 123 | 2.58 | 12,712 | 136 | 2.15 | (3,135 | ) | 0.43 | |||||||||||||||||||
Total interest-bearing liabilities | 125,436 | 265 | 0.42 | 120,052 | 262 | 0.44 | 5,384 | (0.02 | ) | |||||||||||||||||||
Noninterest-bearing deposits | 42,551 | 41,800 | 751 | |||||||||||||||||||||||||
Other liabilities | 3,269 | 3,257 | 12 | |||||||||||||||||||||||||
Noninterest-bearing trading liabilities and derivative instruments | 498 | 470 | 28 | |||||||||||||||||||||||||
Shareholders’ equity | 23,907 | 23,206 | 701 | |||||||||||||||||||||||||
Total liabilities and shareholders’ equity | $195,661 | $188,785 | $6,876 | |||||||||||||||||||||||||
Interest Rate Spread | 2.82 | % | 2.64 | % | 0.18 | |||||||||||||||||||||||
Net Interest Income | $2,569 | $2,307 | ||||||||||||||||||||||||||
Net Interest Income-FTE 2 | $2,640 | $2,378 | ||||||||||||||||||||||||||
Net Interest Margin 3 | 2.93 | % | 2.76 | % | 0.17 | |||||||||||||||||||||||
Net Interest Margin-FTE 2, 3 | 3.01 | 2.85 | 0.16 | |||||||||||||||||||||||||
SunTrust Banks, Inc. and Subsidiaries OTHER FINANCIAL DATA | |||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||
June 30 | (Decrease)/Increase | June 30 | (Decrease)/Increase | ||||||||||||||||||||||||||
(Dollars in millions) (Unaudited) | 2016 | 2015 | Amount | % 4 | 2016 | 2015 | Amount | % 4 | |||||||||||||||||||||
CREDIT DATA | |||||||||||||||||||||||||||||
Allowance for credit losses, beginning of period | $1,831 | $1,947 | ($116 | ) | (6 | )% | $1,815 | $1,991 | ($176 | ) | (9 | )% | |||||||||||||||||
Provision/(benefit) for unfunded commitments | 5 | (2 | ) | 7 | NM | 3 | (2 | ) | 5 | NM | |||||||||||||||||||
Provision/(benefit) for loan losses: | |||||||||||||||||||||||||||||
Commercial | 114 | 33 | 81 | NM | 212 | 40 | 172 | NM | |||||||||||||||||||||
Residential | (4 | ) | (16 | ) | 12 | 75 | (37 | ) | 9 | (46 | ) | NM | |||||||||||||||||
Consumer | 31 | 11 | 20 | NM | 68 | 35 | 33 | 94 | |||||||||||||||||||||
Total provision for loan losses | 141 | 28 | 113 | NM | 243 | 84 | 159 | NM | |||||||||||||||||||||
Charge-offs: | |||||||||||||||||||||||||||||
Commercial | (99 | ) | (31 | ) | 68 | NM | (131 | ) | (59 | ) | 72 | NM | |||||||||||||||||
Residential | (33 | ) | (61 | ) | (28 | ) | (46 | ) | (73 | ) | (129 | ) | (56 | ) | (43 | ) | |||||||||||||
Consumer | (35 | ) | (31 | ) | 4 | 13 | (74 | ) | (66 | ) | 8 | 12 | |||||||||||||||||
Total charge-offs | (167 | ) | (123 | ) | 44 | 36 | (278 | ) | (254 | ) | 24 | 9 | |||||||||||||||||
Recoveries: | |||||||||||||||||||||||||||||
Commercial | 9 | 15 | (6 | ) | (40 | ) | 19 | 26 | (7 | ) | (27 | ) | |||||||||||||||||
Residential | 9 | 10 | (1 | ) | (10 | ) | 15 | 19 | (4 | ) | (21 | ) | |||||||||||||||||
Consumer | 12 | 11 | 1 | 9 | 23 | 22 | 1 | 5 | |||||||||||||||||||||
Total recoveries | 30 | 36 | (6 | ) | (17 | ) | 57 | 67 | (10 | ) | (15 | ) | |||||||||||||||||
Net charge-offs | (137 | ) | (87 | ) | 50 | 57 | (221 | ) | (187 | ) | 34 | 18 | |||||||||||||||||
Allowance for credit losses, end of period | $1,840 | $1,886 | ($46 | ) | (2 | )% | $1,840 | $1,886 | ($46 | ) | (2 | )% | |||||||||||||||||
Components: | |||||||||||||||||||||||||||||
Allowance for loan and lease losses ("ALLL") | $1,774 | $1,834 | ($60 | ) | (3 | )% | |||||||||||||||||||||||
Unfunded commitments reserve | 66 | 52 | 14 | 27 | |||||||||||||||||||||||||
Allowance for credit losses | $1,840 | $1,886 | ($46 | ) | (2 | )% | |||||||||||||||||||||||
Net charge-offs to average loans held for investment (annualized): | |||||||||||||||||||||||||||||
Commercial | 0.46 | % | 0.09 | % | 0.37 | NM | 0.29 | % | 0.09 | % | 0.20 | NM | |||||||||||||||||
Residential | 0.24 | 0.53 | (0.29 | ) | (55 | )% | 0.30 | 0.57 | (0.27 | ) | (47 | )% | |||||||||||||||||
Consumer | 0.39 | 0.38 | 0.01 | 3 | 0.44 | 0.42 | 0.02 | 5 | |||||||||||||||||||||
Total net charge-offs to total average loans held for investment | 0.39 | 0.26 | 0.13 | 50 | 0.32 | 0.28 | 0.04 | 14 | |||||||||||||||||||||
Period Ended | |||||||||||||||||||||||||||||
Nonaccrual/nonperforming loans ("NPLs"): | |||||||||||||||||||||||||||||
Commercial | $503 | $158 | $345 | NM | |||||||||||||||||||||||||
Residential | 433 | 318 | 115 | 36 | % | ||||||||||||||||||||||||
Consumer | 8 | 5 | 3 | 60 | |||||||||||||||||||||||||
Total nonaccrual/NPLs | 944 | 481 | 463 | 96 | |||||||||||||||||||||||||
Other real estate owned (“OREO”) | 49 | 72 | (23 | ) | (32 | ) | |||||||||||||||||||||||
Other repossessed assets | 8 | 6 | 2 | 33 | |||||||||||||||||||||||||
Nonperforming loans held for sale ("nonperforming LHFS") | — | 98 | (98 | ) | (100 | ) | |||||||||||||||||||||||
Total nonperforming assets ("NPAs") | $1,001 | $657 | $344 | 52 | % | ||||||||||||||||||||||||
Accruing restructured loans | $2,541 | $2,576 | ($35 | ) | (1 | )% | |||||||||||||||||||||||
Nonaccruing restructured loans | 307 | 185 | 122 | 66 | |||||||||||||||||||||||||
Accruing loans held for investment past due > 90 days (guaranteed) | 999 | 871 | 128 | 15 | |||||||||||||||||||||||||
Accruing loans held for investment past due > 90 days (non-guaranteed) | 42 | 39 | 3 | 8 | |||||||||||||||||||||||||
Accruing LHFS past due > 90 days | 1 | 1 | — | — | |||||||||||||||||||||||||
NPLs to total loans held for investment | 0.67 | % | 0.36 | % | 0.31 | 86 | % | ||||||||||||||||||||||
NPAs to total loans held for investment plus OREO, other repossessed assets, and nonperforming LHFS | 0.71 | 0.49 | 0.22 | 45 | |||||||||||||||||||||||||
ALLL to period-end loans held for investment 1, 2 | 1.25 | 1.39 | (0.14 | ) | (10 | ) | |||||||||||||||||||||||
ALLL to period-end loans held for investment, excluding government-guaranteed and fair value loans 1, 3 | 1.31 | 1.44 | (0.13 | ) | (9 | ) | |||||||||||||||||||||||
ALLL to NPLs 1, 2 | 1.89x | 3.82x | (1.93x) | (51 | ) | ||||||||||||||||||||||||
ALLL to annualized net charge-offs 1 | 3.22x | 5.23x | (2.01x) | (38 | ) | 3.98x | 4.87x | (0.89x) | (18 | ) | |||||||||||||||||||
SunTrust Banks, Inc. and Subsidiaries FIVE QUARTER OTHER FINANCIAL DATA | ||||||||||||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||||||||||||
June 30 | March 31 | Increase/(decrease) | December 31 | September 30 | June 30 | |||||||||||||||||||||
(Dollars in millions) (Unaudited) | 2016 | 2016 | Amount | % 4 | 2015 | 2015 | 2015 | |||||||||||||||||||
CREDIT DATA | ||||||||||||||||||||||||||
Allowance for credit losses, beginning of period | $1,831 | $1,815 | $16 | 1 | % | $1,847 | $1,886 | $1,947 | ||||||||||||||||||
Provision/(benefit) for unfunded commitments | 5 | (2 | ) | 7 | NM | 2 | 9 | (2 | ) | |||||||||||||||||
Provision/(benefit) for loan losses: | ||||||||||||||||||||||||||
Commercial | 114 | 98 | 16 | 16 | 59 | 33 | 33 | |||||||||||||||||||
Residential | (4 | ) | (32 | ) | 28 | 88 | (37 | ) | (39 | ) | (16 | ) | ||||||||||||||
Consumer | 31 | 37 | (6 | ) | (16 | ) | 27 | 29 | 11 | |||||||||||||||||
Total provision for loan losses | 141 | 103 | 38 | 37 | 49 | 23 | 28 | |||||||||||||||||||
Charge-offs: | ||||||||||||||||||||||||||
Commercial | (99 | ) | (32 | ) | 67 | NM | (35 | ) | (23 | ) | (31 | ) | ||||||||||||||
Residential | (33 | ) | (41 | ) | (8 | ) | (20 | ) | (41 | ) | (47 | ) | (61 | ) | ||||||||||||
Consumer | (35 | ) | (39 | ) | (4 | ) | (10 | ) | (38 | ) | (32 | ) | (31 | ) | ||||||||||||
Total charge-offs | (167 | ) | (112 | ) | 55 | 49 | (114 | ) | (102 | ) | (123 | ) | ||||||||||||||
Recoveries: | ||||||||||||||||||||||||||
Commercial | 9 | 10 | (1 | ) | (10 | ) | 10 | 10 | 15 | |||||||||||||||||
Residential | 9 | 6 | 3 | 50 | 11 | 11 | 10 | |||||||||||||||||||
Consumer | 12 | 11 | 1 | 9 | 10 | 10 | 11 | |||||||||||||||||||
Total recoveries | 30 | 27 | 3 | 11 | 31 | 31 | 36 | |||||||||||||||||||
Net charge-offs | (137 | ) | (85 | ) | 52 | 61 | (83 | ) | (71 | ) | (87 | ) | ||||||||||||||
Allowance for credit losses, end of period | $1,840 | $1,831 | $9 | — | % | $1,815 | $1,847 | $1,886 | ||||||||||||||||||
Components: | ||||||||||||||||||||||||||
ALLL | $1,774 | $1,770 | $4 | — | % | $1,752 | $1,786 | $1,834 | ||||||||||||||||||
Unfunded commitments reserve | 66 | 61 | 5 | 8 | 63 | 61 | 52 | |||||||||||||||||||
Allowance for credit losses | $1,840 | $1,831 | $9 | — | % | $1,815 | $1,847 | $1,886 | ||||||||||||||||||
Net charge-offs to average loans held for investment (annualized): | ||||||||||||||||||||||||||
Commercial | 0.46 | % | 0.12 | % | 0.34 | NM | 0.13 | % | 0.07 | % | 0.09 | % | ||||||||||||||
Residential | 0.24 | 0.36 | (0.12 | ) | (33 | )% | 0.30 | 0.37 | 0.53 | |||||||||||||||||
Consumer | 0.39 | 0.49 | (0.10 | ) | (20 | ) | 0.51 | 0.42 | 0.38 | |||||||||||||||||
Total net charge-offs to total average loans held for investment | 0.39 | 0.25 | 0.14 | 56 | 0.24 | 0.21 | 0.26 | |||||||||||||||||||
Period Ended | ||||||||||||||||||||||||||
Nonaccrual/NPLs: | ||||||||||||||||||||||||||
Commercial | $503 | $577 | ($74 | ) | (13 | )% | $319 | $138 | $158 | |||||||||||||||||
Residential | 433 | 390 | 43 | 11 | 344 | 318 | 318 | |||||||||||||||||||
Consumer | 8 | 8 | — | — | 9 | 7 | 5 | |||||||||||||||||||
Total nonaccrual/NPLs | 944 | 975 | (31 | ) | (3 | ) | 672 | 463 | 481 | |||||||||||||||||
OREO | 49 | 52 | (3 | ) | (6 | ) | 56 | 62 | 72 | |||||||||||||||||
Other repossessed assets | 8 | 8 | — | — | 7 | 7 | 6 | |||||||||||||||||||
Nonperforming LHFS | — | — | — | — | — | — | 98 | |||||||||||||||||||
Total NPAs | $1,001 | $1,035 | ($34 | ) | (3 | )% | $735 | $532 | $657 | |||||||||||||||||
Accruing restructured loans | $2,541 | $2,569 | ($28 | ) | (1 | )% | $2,603 | $2,571 | $2,576 | |||||||||||||||||
Nonaccruing restructured loans | 307 | 233 | 74 | 32 | 176 | 182 | 185 | |||||||||||||||||||
Accruing loans held for investment past due > 90 days (guaranteed) | 999 | 962 | 37 | 4 | 939 | 873 | 871 | |||||||||||||||||||
Accruing loans held for investment past due > 90 days (non-guaranteed) | 42 | 34 | 8 | 24 | 42 | 32 | 39 | |||||||||||||||||||
Accruing LHFS past due > 90 days | 1 | 1 | — | — | — | 1 | 1 | |||||||||||||||||||
NPLs to total loans held for investment | 0.67 | % | 0.70 | % | (0.03 | ) | (4 | )% | 0.49 | % | 0.35 | % | 0.36 | % | ||||||||||||
NPAs to total loans held for investment plus OREO, other repossessed assets, and nonperforming LHFS | 0.71 | 0.74 | (0.03 | ) | (4 | ) | 0.54 | 0.40 | 0.49 | |||||||||||||||||
ALLL to period-end loans held for investment 1, 2 | 1.25 | 1.27 | (0.02 | ) | (2 | ) | 1.29 | 1.34 | 1.39 | |||||||||||||||||
ALLL to period-end loans held for investment, excluding government-guaranteed and fair value loans 1, 3 | 1.31 | 1.32 | (0.01 | ) | (1 | ) | 1.34 | 1.39 | 1.44 | |||||||||||||||||
ALLL to NPLs 1, 2 | 1.89x | 1.83x | 0.06x | 3 | 2.62x | 3.87x | 3.82x | |||||||||||||||||||
ALLL to annualized net charge-offs 1 | 3.22x | 5.20x | (1.98x) | (38 | ) | 5.33x | 6.33x | 5.23x | ||||||||||||||||||
SunTrust Banks, Inc. and Subsidiaries OTHER FINANCIAL DATA, continued | |||||||||||||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||||||||||
(Dollars in millions) (Unaudited) | MSRs - Fair Value | Other | Total | MSRs - Fair Value | Other | Total | |||||||||||||||||
OTHER INTANGIBLE ASSETS ROLLFORWARD | |||||||||||||||||||||||
Balance, beginning of period | $1,181 | $12 | $1,193 | $1,206 | $13 | $1,219 | |||||||||||||||||
Amortization | — | (2 | ) | (2 | ) | — | (3 | ) | (3 | ) | |||||||||||||
Servicing rights originated | 71 | 13 | 84 | 117 | 13 | 130 | |||||||||||||||||
Servicing rights purchased | 53 | — | 53 | 109 | — | 109 | |||||||||||||||||
Fair value changes due to inputs and assumptions 1 | 150 | — | 150 | 72 | — | 72 | |||||||||||||||||
Other changes in fair value 2 | (61 | ) | — | (61 | ) | (109 | ) | — | (109 | ) | |||||||||||||
Servicing rights sold | (1 | ) | — | (1 | ) | (2 | ) | — | (2 | ) | |||||||||||||
Balance, June 30, 2015 | $1,393 | $23 | $1,416 | $1,393 | $23 | $1,416 | |||||||||||||||||
Balance, beginning of period | $1,182 | $16 | $1,198 | $1,307 | $18 | $1,325 | |||||||||||||||||
Amortization | — | (2 | ) | (2 | ) | — | (4 | ) | (4 | ) | |||||||||||||
Servicing rights originated | 64 | — | 64 | 110 | — | 110 | |||||||||||||||||
Servicing rights purchased | — | — | — | 77 | — | 77 | |||||||||||||||||
Fair value changes due to inputs and assumptions 1 | (129 | ) | — | (129 | ) | (333 | ) | — | (333 | ) | |||||||||||||
Other changes in fair value 2 | (56 | ) | — | (56 | ) | (99 | ) | — | (99 | ) | |||||||||||||
Servicing rights sold | — | — | — | (1 | ) | — | (1 | ) | |||||||||||||||
Balance, June 30, 2016 | $1,061 | $14 | $1,075 | $1,061 | $14 | $1,075 |
Three Months Ended | ||||||||||||||
June 30 | March 31 | December 31 | September 30 | June 30 | ||||||||||
(Shares in thousands) (Unaudited) | 2016 | 2016 | 2015 | 2015 | 2015 | |||||||||
COMMON SHARES ROLLFORWARD | ||||||||||||||
Balance, beginning of period | 505,443 | 508,712 | 514,106 | 518,045 | 522,031 | |||||||||
Common shares issued for employee benefit plans | 752 | 991 | 2 | 85 | 227 | |||||||||
Repurchase of common stock | (4,783 | ) | (4,260 | ) | (5,396 | ) | (4,024 | ) | (4,213 | ) | ||||
Balance, end of period | 501,412 | 505,443 | 508,712 | 514,106 | 518,045 |
SunTrust Banks, Inc. and Subsidiaries APPENDIX A TO THE EARNINGS RELEASE - RECONCILEMENT OF NON-U.S. GAAP MEASURES 1 | |||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||
June 30 | March 31 | December 31 | September 30 | June 30 | June 30 | ||||||||||||||||||||||
(Dollars in millions) (Unaudited) | 2016 | 2016 | 2015 | 2015 | 2015 | 2016 | 2015 | ||||||||||||||||||||
Net interest income | $1,288 | $1,282 | $1,246 | $1,211 | $1,167 | $2,569 | $2,307 | ||||||||||||||||||||
Fully taxable-equivalent ("FTE") adjustment | 35 | 36 | 35 | 36 | 36 | 71 | 71 | ||||||||||||||||||||
Net interest income-FTE 2 | 1,323 | 1,318 | 1,281 | 1,247 | 1,203 | 2,640 | 2,378 | ||||||||||||||||||||
Noninterest income | 898 | 781 | 765 | 811 | 874 | 1,680 | 1,692 | ||||||||||||||||||||
Total revenue-FTE 2 | $2,221 | $2,099 | $2,046 | $2,058 | $2,077 | $4,320 | $4,070 | ||||||||||||||||||||
Return on average common shareholders’ equity 3 | 8.43 | % | 7.71 | % | 8.32 | % | 9.34 | % | 8.54 | % | 8.07 | % | 8.09 | % | |||||||||||||
Impact of removing average intangible assets and related amortization, other than MSRs and other servicing rights | 3.11 | 2.89 | 3.17 | 3.61 | 3.34 | 3.00 | 3.17 | ||||||||||||||||||||
Return on average tangible common shareholders' equity 4 | 11.54 | % | 10.60 | % | 11.49 | % | 12.95 | % | 11.88 | % | 11.07 | % | 11.26 | % | |||||||||||||
Net interest margin | 2.91 | % | 2.96 | % | 2.90 | % | 2.86 | % | 2.78 | % | 2.93 | % | 2.76 | % | |||||||||||||
Impact of FTE adjustment | 0.08 | 0.08 | 0.08 | 0.08 | 0.08 | 0.08 | 0.09 | ||||||||||||||||||||
Net interest margin-FTE 2 | 2.99 | % | 3.04 | % | 2.98 | % | 2.94 | % | 2.86 | % | 3.01 | % | 2.85 | % | |||||||||||||
Noninterest expense | $1,345 | $1,318 | $1,288 | $1,264 | $1,328 | $2,663 | $2,608 | ||||||||||||||||||||
Total revenue | 2,186 | 2,063 | 2,011 | 2,022 | 2,041 | 4,249 | 3,999 | ||||||||||||||||||||
Efficiency ratio 5 | 61.53 | % | 63.89 | % | 64.05 | % | 62.51 | % | 65.07 | % | 62.67 | % | 65.22 | % | |||||||||||||
Impact of FTE adjustment | (0.97 | ) | (1.08 | ) | (1.09 | ) | (1.07 | ) | (1.15 | ) | (1.02 | ) | (1.15 | ) | |||||||||||||
Efficiency ratio-FTE 2, 5 | 60.56 | % | 62.81 | % | 62.96 | % | 61.44 | % | 63.92 | % | 61.65 | % | 64.07 | % | |||||||||||||
Impact of excluding amortization related to intangible assets and certain tax credits | (0.51 | ) | (0.48 | ) | (0.85 | ) | (0.45 | ) | (0.33 | ) | (0.49 | ) | (0.32 | ) | |||||||||||||
Tangible efficiency ratio-FTE 2, 6 | 60.05 | % | 62.33 | % | 62.11 | % | 60.99 | % | 63.59 | % | 61.16 | % | 63.75 | % | |||||||||||||
Basel III Common Equity Tier 1 ("CET1") ratio (transitional) 7 | 9.84 | % | 9.90 | % | 9.96 | % | 10.04 | % | 9.93 | % | |||||||||||||||||
Impact of MSRs and other under fully phased-in approach | (0.14 | ) | (0.13 | ) | (0.16 | ) | (0.15 | ) | (0.17 | ) | |||||||||||||||||
Basel III fully phased-in CET1 ratio 7 | 9.70 | % | 9.77 | % | 9.80 | % | 9.89 | % | 9.76 | % | |||||||||||||||||
SunTrust Banks, Inc. and Subsidiaries APPENDIX A TO THE EARNINGS RELEASE - RECONCILEMENT OF NON-U.S. GAAP MEASURES, continued 1 | |||||||||||||||||||
June 30 | March 31 | December 31 | September 30 | June 30 | |||||||||||||||
(Dollars in millions, except per share data) (Unaudited) | 2016 | 2016 | 2015 | 2015 | 2015 | ||||||||||||||
Total shareholders' equity | $24,464 | $24,053 | $23,437 | $23,664 | $23,223 | ||||||||||||||
Goodwill, net of deferred taxes of $246 million, $243 million, $240 million, $237 million, and $234 million, respectively | (6,091 | ) | (6,094 | ) | (6,097 | ) | (6,100 | ) | (6,103 | ) | |||||||||
Other intangible assets (including MSRs and other servicing rights), net of deferred taxes of $2 million, $3 million, $3 million, $4 million, and $4 million, respectively | (1,073 | ) | (1,195 | ) | (1,322 | ) | (1,279 | ) | (1,412 | ) | |||||||||
MSRs and other servicing rights | 1,067 | 1,189 | 1,316 | 1,272 | 1,406 | ||||||||||||||
Tangible equity | 18,367 | 17,953 | 17,334 | 17,557 | 17,114 | ||||||||||||||
Noncontrolling interest | (103 | ) | (101 | ) | (108 | ) | (106 | ) | (108 | ) | |||||||||
Preferred stock | (1,225 | ) | (1,225 | ) | (1,225 | ) | (1,225 | ) | (1,225 | ) | |||||||||
Tangible common equity | $17,039 | $16,627 | $16,001 | $16,226 | $15,781 | ||||||||||||||
Total assets | $199,073 | $194,158 | $190,817 | $187,036 | $188,858 | ||||||||||||||
Goodwill | (6,337 | ) | (6,337 | ) | (6,337 | ) | (6,337 | ) | (6,337 | ) | |||||||||
Other intangible assets (including MSRs and other servicing rights) | (1,075 | ) | (1,198 | ) | (1,325 | ) | (1,282 | ) | (1,416 | ) | |||||||||
MSRs and other servicing rights | 1,067 | 1,189 | 1,316 | 1,272 | 1,406 | ||||||||||||||
Tangible assets | $192,728 | $187,812 | $184,471 | $180,689 | $182,511 | ||||||||||||||
Tangible equity to tangible assets 2 | 9.53 | % | 9.56 | % | 9.40 | % | 9.72 | % | 9.38 | % | |||||||||
Tangible common equity to tangible assets 2 | 8.84 | 8.85 | 8.67 | 8.98 | 8.65 | ||||||||||||||
Tangible book value per common share 3 | $33.98 | $32.90 | $31.45 | $31.56 | $30.46 | ||||||||||||||
Total loans held for investment | $141,656 | $139,746 | $136,442 | $133,560 | $132,538 | ||||||||||||||
Government-guaranteed loans held for investment | (6,096 | ) | (5,888 | ) | (5,551 | ) | (5,215 | ) | (5,026 | ) | |||||||||
Fair value loans held for investment | 246 | (255 | ) | (257 | ) | (262 | ) | (263 | ) | ||||||||||
Total loans held for investment, excluding government-guaranteed and fair value loans | $135,806 | $133,603 | $130,634 | $128,083 | $127,249 | ||||||||||||||
ALLL to total loans held for investment, excluding government-guaranteed and fair value loans 4 | 1.31 | % | 1.32 | % | 1.34 | % | 1.39 | % | 1.44 | % | |||||||||
SunTrust Banks, Inc. and Subsidiaries CONSUMER BANKING AND PRIVATE WEALTH MANAGEMENT | |||||||||||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||||||||
(Dollars in millions) (Unaudited) | 2016 | 2015 | % Change 5 | 2016 | 2015 | % Change | |||||||||||||||
Statements of Income: | |||||||||||||||||||||
Net interest income | $705 | $675 | 4 | % | $1,404 | $1,341 | 5 | % | |||||||||||||
FTE adjustment | — | — | — | — | — | — | |||||||||||||||
Net interest income-FTE 1 | 705 | 675 | 4 | 1,404 | 1,341 | 5 | |||||||||||||||
Provision for credit losses 2 | 49 | 9 | NM | 77 | 79 | (3 | ) | ||||||||||||||
Net interest income-FTE - after provision for credit losses 1 | 656 | 666 | (2 | ) | 1,327 | 1,262 | 5 | ||||||||||||||
Noninterest income before net securities gains/(losses) | 366 | 389 | (6 | ) | 721 | 752 | (4 | ) | |||||||||||||
Net securities gains/(losses) | — | — | — | — | — | — | |||||||||||||||
Total noninterest income | 366 | 389 | (6 | ) | 721 | 752 | (4 | ) | |||||||||||||
Noninterest expense before amortization | 757 | 729 | 4 | 1,502 | 1,457 | 3 | |||||||||||||||
Amortization | 1 | 1 | — | 1 | 3 | (67 | ) | ||||||||||||||
Total noninterest expense | 758 | 730 | 4 | 1,503 | 1,460 | 3 | |||||||||||||||
Income-FTE - before provision for income taxes 1 | 264 | 325 | (19 | ) | 545 | 554 | (2 | ) | |||||||||||||
Provision for income taxes | 98 | 121 | (19 | ) | 202 | 206 | (2 | ) | |||||||||||||
FTE adjustment | — | — | — | — | — | — | |||||||||||||||
Net income including income attributable to noncontrolling interest | 166 | 204 | (19 | ) | 343 | 348 | (1 | ) | |||||||||||||
Less: net income attributable to noncontrolling interest | — | — | — | — | — | — | |||||||||||||||
Net income | $166 | $204 | (19 | ) | $343 | $348 | (1 | ) | |||||||||||||
Total revenue | $1,071 | $1,064 | 1 | $2,125 | $2,093 | 2 | |||||||||||||||
Total revenue-FTE 1 | 1,071 | 1,064 | 1 | 2,125 | 2,093 | 2 | |||||||||||||||
Selected Average Balances: | |||||||||||||||||||||
Total loans | $42,513 | $40,339 | 5 | % | $42,054 | $40,730 | 3 | % | |||||||||||||
Goodwill | 4,262 | 4,262 | — | 4,262 | 4,262 | — | |||||||||||||||
Other intangible assets excluding MSRs | 13 | 12 | 8 | 15 | 13 | 15 | |||||||||||||||
Total assets | 48,181 | 46,485 | 4 | 47,723 | 46,804 | 2 | |||||||||||||||
Consumer and commercial deposits | 97,052 | 91,235 | 6 | 95,171 | 90,873 | 5 | |||||||||||||||
Performance Ratios: | |||||||||||||||||||||
Efficiency ratio | 70.77 | % | 68.60 | % | 70.71 | % | 69.73 | % | |||||||||||||
Impact of FTE adjustment | — | — | — | — | |||||||||||||||||
Efficiency ratio-FTE 1 | 70.77 | 68.60 | 70.71 | 69.73 | |||||||||||||||||
Impact of excluding amortization and associated funding cost of intangible assets | (1.47 | ) | (1.56 | ) | (1.50 | ) | (1.62 | ) | |||||||||||||
Tangible efficiency ratio-FTE 1, 3 | 69.30 | % | 67.04 | % | 69.21 | % | 68.11 | % | |||||||||||||
Other Information (End of Period) 4 : | |||||||||||||||||||||
Trust and institutional managed assets | $40,541 | $42,587 | (5 | )% | |||||||||||||||||
Retail brokerage managed assets | 11,751 | 10,547 | 11 | ||||||||||||||||||
Total managed assets | 52,292 | 53,134 | (2 | ) | |||||||||||||||||
Non-managed assets | 93,574 | 93,811 | — | ||||||||||||||||||
Total assets under advisement | $145,866 | $146,945 | (1 | ) | |||||||||||||||||
1 | Net interest income-FTE, income-FTE, total revenue-FTE, efficiency ratio-FTE, and tangible efficiency ratio-FTE 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 an FTE basis plus noninterest income. |
2 | Provision for credit losses represents net charge-offs by segment combined with an allocation to the segments for the provision attributable to quarterly changes in the allowance for loan and lease losses and unfunded commitment reserve balances. |
3 | A tangible efficiency ratio is presented, which excludes the amortization related to intangible assets and certain tax credits. The Company believes this measure is useful to investors because, by removing the impact of amortization (the level of which may vary from company to company), it allows investors to more easily compare this segment's efficiency to other business segments and companies in the industry. This measure is utilized by management to assess the efficiency of the Company and its lines of business. |
4 | Beginning in the first quarter of 2016, the Company implemented a new policy for the classification and disclosure of assets under advisement. The primary change was related to the reclassification of brokerage assets into managed and non-managed assets. Prior period amounts were restated for comparative purposes. |
SunTrust Banks, Inc. and Subsidiaries WHOLESALE BANKING | |||||||||||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||||||||
(Dollars in millions) (Unaudited) | 2016 | 2015 | % Change 4 | 2016 | 2015 | % Change 4 | |||||||||||||||
Statements of Income: | |||||||||||||||||||||
Net interest income | $448 | $444 | 1 | % | $902 | $875 | 3 | % | |||||||||||||
FTE adjustment | 34 | 36 | (6 | ) | 69 | 70 | (1 | ) | |||||||||||||
Net interest income-FTE 1 | 482 | 480 | — | 971 | 945 | 3 | |||||||||||||||
Provision for credit losses 2 | 103 | 30 | NM | 186 | 26 | NM | |||||||||||||||
Net interest income-FTE - after provision for credit losses 1 | 379 | 450 | (16 | ) | 785 | 919 | (15 | ) | |||||||||||||
Noninterest income before net securities gains/(losses) | 301 | 337 | (11 | ) | 587 | 622 | (6 | ) | |||||||||||||
Net securities gains/(losses) | — | — | — | — | — | — | |||||||||||||||
Total noninterest income | 301 | 337 | (11 | ) | 587 | 622 | (6 | ) | |||||||||||||
Noninterest expense before amortization | 403 | 381 | 6 | 802 | 772 | 4 | |||||||||||||||
Amortization | 11 | 5 | NM | 20 | 11 | 82 | |||||||||||||||
Total noninterest expense | 414 | 386 | 7 | 822 | 783 | 5 | |||||||||||||||
Income-FTE - before provision for income taxes 1 | 266 | 401 | (34 | ) | 550 | 758 | (27 | ) | |||||||||||||
Provision for income taxes | 47 | 102 | (54 | ) | 101 | 188 | (46 | ) | |||||||||||||
FTE adjustment | 34 | 36 | (6 | ) | 69 | 70 | (1 | ) | |||||||||||||
Net income including income attributable to noncontrolling interest | 185 | 263 | (30 | ) | 380 | 500 | (24 | ) | |||||||||||||
Less: net income attributable to noncontrolling interest | — | — | — | — | — | — | |||||||||||||||
Net income | $185 | $263 | (30 | ) | $380 | $500 | (24 | ) | |||||||||||||
Total revenue | $749 | $781 | (4 | ) | $1,489 | $1,497 | (1 | ) | |||||||||||||
Total revenue-FTE 1 | 783 | 817 | (4 | ) | 1,558 | 1,567 | (1 | ) | |||||||||||||
Selected Average Balances: | |||||||||||||||||||||
Total loans | $72,066 | $67,643 | 7 | % | $71,412 | $67,689 | 6 | % | |||||||||||||
Goodwill | 2,075 | 2,075 | — | 2,075 | 2,075 | — | |||||||||||||||
Other intangible assets excluding MSRs | 1 | — | NM | 1 | — | NM | |||||||||||||||
Total assets | 86,060 | 81,003 | 6 | 85,219 | 81,082 | 5 | |||||||||||||||
Consumer and commercial deposits | 54,105 | 48,639 | 11 | 53,848 | 48,105 | 12 | |||||||||||||||
Performance Ratios: | |||||||||||||||||||||
Efficiency ratio | 55.27 | % | 49.42 | % | 55.20 | % | 52.30 | % | |||||||||||||
Impact of FTE adjustment | (2.42 | ) | (2.11 | ) | (2.45 | ) | (2.31 | ) | |||||||||||||
Efficiency ratio-FTE 1 | 52.85 | 47.31 | 52.75 | 49.99 | |||||||||||||||||
Impact of excluding amortization and associated funding cost of intangible assets | (2.06 | ) | (1.28 | ) | (1.99 | ) | (1.37 | ) | |||||||||||||
Tangible efficiency ratio-FTE 1, 3 | 50.79 | % | 46.03 | % | 50.76 | % | 48.62 | % | |||||||||||||
1 | Net interest income-FTE, income-FTE, total revenue-FTE, efficiency ratio-FTE, and tangible efficiency ratio-FTE 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 an FTE basis plus noninterest income. |
2 | Provision for credit losses represents net charge-offs by segment combined with an allocation to the segments for the provision attributable to quarterly changes in the allowance for loan and lease losses and unfunded commitment reserve balances. |
3 | A tangible efficiency ratio is presented, which excludes the amortization related to intangible assets and certain tax credits. The Company believes this measure is useful to investors because, by removing the impact of amortization (the level of which may vary from company to company), it allows investors to more easily compare this segment's efficiency to other business segments and companies in the industry. This measure is utilized by management to assess the efficiency of the Company and its lines of business. |
4 | “NM” - Not meaningful. Those changes over 100 percent were not considered to be meaningful. |
SunTrust Banks, Inc. and Subsidiaries MORTGAGE BANKING | |||||||||||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||||||||
(Dollars in millions) (Unaudited) | 2016 | 2015 | % Change 4 | 2016 | 2015 | % Change 4 | |||||||||||||||
Statements of Income: | |||||||||||||||||||||
Net interest income | $111 | $123 | (10 | )% | $224 | $244 | (8 | )% | |||||||||||||
FTE adjustment | — | — | — | — | — | — | |||||||||||||||
Net interest income-FTE 1 | 111 | 123 | (10 | ) | 224 | 244 | (8 | ) | |||||||||||||
Benefit for credit losses 2 | (6 | ) | (13 | ) | (54 | ) | (16 | ) | (23 | ) | (30 | ) | |||||||||
Net interest income-FTE - after benefit for credit losses 1 | 117 | 136 | (14 | ) | 240 | 267 | (10 | ) | |||||||||||||
Noninterest income before net securities gains/(losses) | 165 | 105 | 57 | 289 | 236 | 22 | |||||||||||||||
Net securities gains/(losses) | — | — | — | — | — | — | |||||||||||||||
Total noninterest income | 165 | 105 | 57 | 289 | 236 | 22 | |||||||||||||||
Noninterest expense before amortization | 178 | 180 | (1 | ) | 353 | 357 | (1 | ) | |||||||||||||
Amortization | — | — | — | — | — | — | |||||||||||||||
Total noninterest expense | 178 | 180 | (1 | ) | 353 | 357 | (1 | ) | |||||||||||||
Income-FTE - before provision for income taxes 1 | 104 | 61 | 70 | 176 | 146 | 21 | |||||||||||||||
Provision for income taxes | 40 | 3 | NM | 67 | 33 | NM | |||||||||||||||
FTE adjustment | — | — | — | — | — | — | |||||||||||||||
Net income including income attributable to noncontrolling interest | 64 | 58 | 10 | 109 | 113 | (4 | ) | ||||||||||||||
Less: net income attributable to noncontrolling interest | — | — | — | — | — | — | |||||||||||||||
Net income | $64 | $58 | 10 | $109 | $113 | (4 | ) | ||||||||||||||
Total revenue | $276 | $228 | 21 | $513 | $480 | 7 | |||||||||||||||
Total revenue-FTE 1 | 276 | 228 | 21 | 513 | 480 | 7 | |||||||||||||||
Selected Average Balances: | |||||||||||||||||||||
Total loans | $26,590 | $24,793 | 7 | % | $26,268 | $24,617 | 7 | % | |||||||||||||
Goodwill | — | — | — | — | — | — | |||||||||||||||
Other intangible assets excluding MSRs | — | — | — | — | — | — | |||||||||||||||
Total assets | 30,117 | 28,555 | 5 | 29,660 | 28,247 | 5 | |||||||||||||||
Consumer and commercial deposits | 2,997 | 2,980 | 1 | 2,654 | 2,671 | (1 | ) | ||||||||||||||
Performance Ratios: | |||||||||||||||||||||
Efficiency ratio | 64.60 | % | 78.91 | % | 68.97 | % | 74.36 | % | |||||||||||||
Impact of FTE adjustment | — | — | — | — | |||||||||||||||||
Efficiency ratio-FTE 1 | 64.60 | 78.91 | 68.97 | 74.36 | |||||||||||||||||
Impact of excluding amortization and associated funding cost of intangible assets | — | — | — | — | |||||||||||||||||
Tangible efficiency ratio-FTE 1, 3 | 64.60 | % | 78.91 | % | 68.97 | % | 74.36 | % | |||||||||||||
Production Data: | |||||||||||||||||||||
Channel mix | |||||||||||||||||||||
Retail | $3,404 | $3,144 | 8 | % | $5,655 | $5,569 | 2 | % | |||||||||||||
Correspondent | 3,879 | 3,347 | 16 | 6,580 | 6,032 | 9 | |||||||||||||||
Total production | $7,283 | $6,491 | 12 | $12,235 | $11,601 | 5 | |||||||||||||||
Channel mix - percent | |||||||||||||||||||||
Retail | 47 | % | 48 | % | 46 | % | 48 | % | |||||||||||||
Correspondent | 53 | 52 | 54 | 52 | |||||||||||||||||
Total production | 100 | % | 100 | % | 100 | % | 100 | % | |||||||||||||
Purchase and refinance mix | |||||||||||||||||||||
Refinance | $3,269 | $3,051 | 7 | $5,881 | $6,122 | (4 | ) | ||||||||||||||
Purchase | 4,014 | 3,440 | 17 | 6,354 | 5,479 | 16 | |||||||||||||||
Total production | $7,283 | $6,491 | 12 | $12,235 | $11,601 | 5 | |||||||||||||||
Purchase and refinance mix - percent | |||||||||||||||||||||
Refinance | 45 | % | 47 | % | 48 | % | 53 | % | |||||||||||||
Purchase | 55 | 53 | 52 | 47 | |||||||||||||||||
Total production | 100 | % | 100 | % | 100 | % | 100 | % | |||||||||||||
Applications | $11,225 | $8,823 | 27 | $20,430 | $18,616 | 10 | |||||||||||||||
Mortgage Servicing Data (End of Period): | |||||||||||||||||||||
Total loans serviced | $154,474 | $145,491 | 6 | % | |||||||||||||||||
Total loans serviced for others | 125,408 | 118,394 | 6 | ||||||||||||||||||
Net carrying value of MSRs | 1,061 | 1,393 | (24 | ) | |||||||||||||||||
Ratio of net carrying value of MSRs to total loans serviced for others | 0.846 | % | 1.177 | % |
SunTrust Banks, Inc. and Subsidiaries CORPORATE OTHER | |||||||||||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||||||||
(Dollars in millions) (Unaudited) | 2016 | 2015 | % Change 4 | 2016 | 2015 | % Change 4 | |||||||||||||||
Statements of Income: | |||||||||||||||||||||
Net interest income/(expense) 1 | $24 | ($75 | ) | NM | $39 | ($153 | ) | NM | |||||||||||||
FTE adjustment | 1 | — | NM | 2 | 1 | 100 | |||||||||||||||
Net interest income/(expense)-FTE 2 | 25 | (75 | ) | NM | 41 | (152 | ) | NM | |||||||||||||
Provision/(benefit) for credit losses 3 | — | — | — | (1 | ) | — | NM | ||||||||||||||
Net interest income/(expense)-FTE - after provision/(benefit) for credit losses 2 | 25 | (75 | ) | NM | 42 | (152 | ) | NM | |||||||||||||
Noninterest income before net securities gains | 62 | 29 | NM | 79 | 68 | 16 | |||||||||||||||
Net securities gains | 4 | 14 | (71 | ) | 4 | 14 | (71 | ) | |||||||||||||
Total noninterest income | 66 | 43 | 53 | 83 | 82 | 1 | |||||||||||||||
Noninterest expense before amortization | (4 | ) | 31 | NM | (15 | ) | 9 | NM | |||||||||||||
Amortization | (1 | ) | 1 | NM | — | (1 | ) | (100 | ) | ||||||||||||
Total noninterest expense | (5 | ) | 32 | NM | (15 | ) | 8 | NM | |||||||||||||
Income/(loss)-FTE - before provision/(benefit) for income taxes 2 | 96 | (64 | ) | NM | 140 | (78 | ) | NM | |||||||||||||
Provision/(benefit) for income taxes | 16 | (24 | ) | NM | 26 | (34 | ) | NM | |||||||||||||
FTE adjustment | 1 | — | NM | 2 | 1 | 100 | |||||||||||||||
Net income/(loss) including income attributable to noncontrolling interest | 79 | (40 | ) | NM | 112 | (45 | ) | NM | |||||||||||||
Less: net income attributable to noncontrolling interest | 2 | 2 | — | 5 | 4 | 25 | |||||||||||||||
Net income/(loss) | $77 | ($42 | ) | NM | $107 | ($49 | ) | NM | |||||||||||||
Total revenue | $90 | ($32 | ) | NM | $122 | ($71 | ) | NM | |||||||||||||
Total revenue-FTE 2 | 91 | (32 | ) | NM | 124 | (70 | ) | NM | |||||||||||||
Selected Average Balances: | |||||||||||||||||||||
Total loans | $69 | $54 | 28 | % | $71 | $46 | 54 | % | |||||||||||||
Securities available for sale | 28,021 | 26,309 | 7 | 27,647 | 26,061 | 6 | |||||||||||||||
Goodwill | — | — | — | — | — | — | |||||||||||||||
Other intangible assets excluding MSRs | — | — | — | — | — | — | |||||||||||||||
Total assets | 33,949 | 32,267 | 5 | 33,059 | 32,652 | 1 | |||||||||||||||
Consumer and commercial deposits | 12 | (3 | ) | NM | 25 | 21 | 19 | ||||||||||||||
Other Information (End of Period): | |||||||||||||||||||||
Duration of investment portfolio (in years) | 4.1 | 4.4 | |||||||||||||||||||
Net interest income interest rate sensitivity: | |||||||||||||||||||||
% Change in net interest income under: | |||||||||||||||||||||
Instantaneous 200 basis point increase in rates over next 12 months | 4.2 | % | 4.4 | % | |||||||||||||||||
Instantaneous 100 basis point increase in rates over next 12 months | 2.3 | % | 2.3 | % | |||||||||||||||||
Instantaneous 25 basis point decrease in rates over next 12 months | (0.7 | )% | (0.9 | )% | |||||||||||||||||
1 | Net interest income/(expense) is driven by matched funds transfer pricing applied for segment reporting and actual net interest income. |
2 | Net interest income-FTE, income-FTE, and total revenue-FTE 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 an FTE basis plus noninterest income. |
3 | Provision/(benefit) for credit losses represents net charge-offs by segment combined with an allocation to the segments for the provision/(benefit) attributable to quarterly changes in the allowance for loan and lease losses and unfunded commitments reserve balances. |
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||||||||
(Dollars in millions) (Unaudited) | 2016 | 2015 | % Change 2 | 2016 | 2015 | % Change 2 | |||||||||||||||
Statements of Income: | |||||||||||||||||||||
Net interest income | $1,288 | $1,167 | 10 | % | $2,569 | $2,307 | 11 | % | |||||||||||||
FTE adjustment | 35 | 36 | (3 | ) | 71 | 71 | — | ||||||||||||||
Net interest income-FTE 1 | 1,323 | 1,203 | 10 | 2,640 | 2,378 | 11 | |||||||||||||||
Provision for credit losses | 146 | 26 | NM | 246 | 82 | NM | |||||||||||||||
Net interest income-FTE - after provision for credit losses 1 | 1,177 | 1,177 | — | 2,394 | 2,296 | 4 | |||||||||||||||
Noninterest income before net securities gains | 894 | 860 | 4 | 1,676 | 1,678 | — | |||||||||||||||
Net securities gains | 4 | 14 | (71 | ) | 4 | 14 | (71 | ) | |||||||||||||
Total noninterest income | 898 | 874 | 3 | 1,680 | 1,692 | (1 | ) | ||||||||||||||
Noninterest expense before amortization | 1,334 | 1,321 | 1 | 2,642 | 2,595 | 2 | |||||||||||||||
Amortization | 11 | 7 | 57 | 21 | 13 | 62 | |||||||||||||||
Total noninterest expense | 1,345 | 1,328 | 1 | 2,663 | 2,608 | 2 | |||||||||||||||
Income-FTE - before provision for income taxes 1 | 730 | 723 | 1 | 1,411 | 1,380 | 2 | |||||||||||||||
Provision for income taxes | 201 | 202 | — | 396 | 393 | 1 | |||||||||||||||
FTE adjustment | 35 | 36 | (3 | ) | 71 | 71 | — | ||||||||||||||
Net income including income attributable to noncontrolling interest | 494 | 485 | 2 | 944 | 916 | 3 | |||||||||||||||
Less: net income attributable to noncontrolling interest | 2 | 2 | — | 5 | 4 | 25 | |||||||||||||||
Net income | $492 | $483 | 2 | $939 | $912 | 3 | |||||||||||||||
Total revenue | $2,186 | $2,041 | 7 | $4,249 | $3,999 | 6 | |||||||||||||||
Total revenue-FTE 1 | 2,221 | 2,077 | 7 | 4,320 | 4,070 | 6 | |||||||||||||||
Selected Average Balances: | |||||||||||||||||||||
Total loans | $141,238 | $132,829 | 6 | % | $139,805 | $133,082 | 5 | % | |||||||||||||
Goodwill | 6,337 | 6,337 | — | 6,337 | 6,337 | — | |||||||||||||||
Other intangible assets excluding MSRs | 14 | 12 | 17 | 16 | 13 | 23 | |||||||||||||||
Total assets | 198,307 | 188,310 | 5 | 195,661 | 188,785 | 4 | |||||||||||||||
Consumer and commercial deposits | 154,166 | 142,851 | 8 | 151,698 | 141,670 | 7 | |||||||||||||||
Performance Ratios: | |||||||||||||||||||||
Efficiency ratio | 61.53 | % | 65.07 | % | 62.67 | % | 65.22 | % | |||||||||||||
Impact of FTE adjustment | (0.97 | ) | (1.15 | ) | (1.02 | ) | (1.15 | ) | |||||||||||||
Efficiency ratio-FTE 1 | 60.56 | 63.92 | 61.65 | 64.07 | |||||||||||||||||
Impact of excluding amortization and associated funding cost of intangible assets | (0.51 | ) | (0.33 | ) | (0.49 | ) | (0.32 | ) | |||||||||||||
Tangible efficiency ratio-FTE 1 | 60.05 | % | 63.59 | % | 61.16 | % | 63.75 | % | |||||||||||||
*SPKH^/K>?.+DS,
M4Q3,\IVG>)B.^)\5S6\^[IV+%ZS$3.\1S]_DDN_Z/6F5:I8FUGY5O3J:)F[3
M5535=KKY\(B>V(ICCV^*3KGT V)G>)]\2E'3;].3AVKE,]T1[XC:8;KZ/^
MCWLK=63J/9,8V+CU6YKX\)KKF.*?GQ$S]SN/H[PKEW4J\O;[-%,QO[:MN7PB
M9 *)Y3,;3UB
M=NN[<.H&^,W0M1VGI6AT8V3J.O9\6J9OQ-=%&-33W7;L1$QSQ3,<>QQO#NA8
M^?8S\[4IJIM8MN9GL[1,W)G:BCG$]9WW[W2:QJU[$NXF+AQ$W+]>W/G$41&]
M57*8Z1MLW>8BJ)B8YIGPXF/.'"QO'FZN8B>4HAZW:?M_:'2/-T/ TC$MWM2J
MC"T[ Q[-,55Y%=<3$TQY\QXSS\H]J8^!FK^_C"=,/H
M#MW*P[%VO)U#NKMTUS$7:..9B)_J)YL_1[I-VU37577SB)ZQX?RHRN<59U%=
M5,4T\IGNG\T3=1]L8FT-UW],PJ[M>/;M6ZXF]5$U
)]D3
MUB?#?>/)?P>*KGI(IS*8[,]\
<4\^$1'O\6UX7X2KUZFOA/D@"F.*8CW0\]1RA*DMM
MV=L'<.\;%RG3HJL:?-?\I>O7)HLU51X>4?E3'PB>'7Z+P_JNLT3&+]FUOSF9
MF*9F/9'K3'LB=FAU#5,+3ZHF_P Z^Z(B)G;\/BD'0^A6LZ%F6<[$W#:QLNU5
M%4>JLU=L^/C$_6\8GR\82'@)L7*H
MFU..?APA;A"_?L:U8IL3/VIVJCQIVG??R
MZ^S9(.O6K5W3[LW?W8WCV3OR^/1*GI"6+5>S\*]5$>NHS:(HGV\335W1^K]2
M6?I%MT5:7;N5>M%<;>^)W<1PI55&;73'2:9W^,;,WTDUW%US8V!8LW(IOX=J
M,:_;IGBJBJ(XB?MCQB?W-YP?GV,_1[5NW5]JW$4U1WQ,
?E'-RE3>JRJJIJJOSFOOIF/?/*$U
M=>,FW9V#
M%_N]S_%#9_23_B\;^6KYPP^$?U%[
MSCY2B%#SO4\>CI_F/6/[U3_@A/OT;?X/)_GC_:C#B[]?:_EGYHWZN_TC:U^G
M1_PZ4:<8?MW)\X_VTNPT#]F6?*?G+8/1Z_ZZ9O\ <:O^)0Z'Z.OVK<_]N?\
M=2U7%G^!H_FCY2N?2*_ZQZ3_ '2K_&ROI(_Q^/\ R3_N6>$?\-=_FCY,KZ-_
M\QN#].Q^%;;_ $:>IE^='RJ8'&'K6/*K\&G]KQNIFJWK5
C3.
M3BW+=,S'6*MYV]G.9]T-E?MZYJ&UF]175'EM'RB/BB?JMU&IWSGV+.'37;TO
M%F9MS7'%5VN?":YCV1QX1'S]Z(^+>)8UZ]3;QXF+-&^V_6J9[_9X1'GOU=SH
M>D3IEN:KO.Y5U]D>'YM1TC6,_0,NC-T_)NX=^/JQ_9S;4;391>IQZZXCQN451/'/OXF/#YRS/I%TRS5BT:A
M3&UR*HIF?&)B=M_*8Y>S=8X3S+D7ZL69WIF-X]DQ^;?MGY\ZML32\C#KIBY7
MA44T551S%-<4]OC\JH2#HV1.7HUB[8GG-$;>R8C;[IARVH6O09]RB['**I^$
MSO\ )"F9UJWEIV7>Q
-O'P7]#P<;-O_\ U-R(B/W>DU>_IY][F.Y
_
MUU-%,W.[WQ$1SS]G+L8SN$K5WZ[35:BOKO$1OOX[;;[^[=H)QMO7*>
MV+LQ^3,1Y^$>',\>SW(CXNU3 U?/C(P8GIM5,QM%6W28CKRCESV[N7)W6A86
M5@XTVLF8Z[Q'7;?KSZ=6P](MT;4T?1LW3]:FFWD9=SNNU95GOLUT1'%-//CY
M>,^,1XRZ/@[5=$PL2[BZARJN3S[4;TS$=([^G.>>W.6IU_"U'(OT7L7G%,
K\:[%4^
+:M#WQLF)JLS._+K3/?MXQ/?'CSCP?6MZ'&I;7K,[7(\>DQ[?"?:E'-W-
MT[W931?SLG2\FN(XBK+IBBY$>[ZT1*5;^J<*:O$7,FNW5/\ FC:?OB)<3;P]
M;P-Z+--<1[.=R8O6]Z=/='V_G:=AT8U^WDVJK=>/IMF.:^8\)FKB(\/?,^
M#59VM\+86%=Q+$4U17$Q--NGK[]MN7C,\F;C:=K61D47[LS$TSOO5/3W=?N<
M_>S][SQ*5G06]>I.VM4V+J>#BZM:O9=W%FW1:BFKFJKB/#QAZ(USB;2,O1[^
M-9R(FNJC:(VGKR]B*=-T?/L9]N]
S5$;?#I/P[DN]-^
ML&D7-!Q=.UK)IP
C^3NTQ'$3W>43QYQ*8>&>,L&K"MXFH5]BY1$4
M[STJB.43OW3MUB?$T7=8X5URBFO+JHF8_CC:J/9S_"9A'U&
M!K6FU338BJ(_R\XG^_)YZAU6VALW2OHVC39RJJ(GU>+@4<4<^^:N.(^,^,K>
M1Q;H.BXWH=/VJF.E-$;1O[9Z1[9YS['W:T/4]0N^DRMZ=^LU=?='7Y0@/<&N
MY>Y=8R=2S:XKR+]7,Q3^33'E%,?"(\'GW4<^_JF57EY$[U5?"/"(]D)1Q,6W
MAV:;%J.4?WO/FG+;_4K;6'L+"P+VK6K>7;T^+-5J::N8K[../+CS3QIW$VD6
M=%M8MS(B*XMQ3,;3U[.VW1&F7H^?>J;>CF_= VUM*O$U/4K>)DSE7+GJZZ:IGMF*>)\(GW2G+@OB#3-,TR;&9
M>BBKMU3M,3TG;PA&_$.EYF9F1$(BJ
MUC5,+*KKN\IF>=-4'I=KT^9
YG4L2]8TK2M&R)]>NBFORCGV?=O
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MUT[177/MWWVY_9W[N<]9E/[STF
M
M !A]X:MJ6A;;SM0TG2_X:S\>B+E&!%R:*KT1,=T4S$3X\/'#=:-
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M=F_5H.OYF1D6JYMY$433--,U
M_.**9G;?>?6\(B8[X=9K7$5^-'^L8%BYZ6YO33$TSVJ=N4U3$;[>SQF8]K']
M&-YZ1M_3=&VE@;:W/CW;M7\MGYVFS;MW+U4HI^"HP^[-+U76=&KQ='UJK0$551W53/,S/$<\1$-U=U2]7I]O3*(BFW35-4
M[=:Z^D553/7LT_9IB-HB-YVWF9:RC MTYE>=5,U5S'9C?I33X4^<\YF=YGES
MVB(9AIFS5[I_K3]ZFT> >?G//S5Z!,S/G,S\Y4B(CH'/'E/'R5ZB@*S,SYS,
M_.5-HCH**@
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M #.ZIL;<&C/9\3P]\*[5_P_>;QXQ\1]=F?"5=X\8^*
ML1RIV:O#[GSVH\85BBJ?*F9^4/KL5STA7M4^,/J+-R?*W7/_ &9?46;LSZGS
M_)2:J8ZSM\'U&+?J\K%V?E15^Y]_5K\\HHGX3*W-VU3SFN/C#TITS,K_ "
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MR:> =9J[J8_\OZ+-7%>_Q3[ES:Z!;CK_*O8%'SNU3^%++H^CS5IZUT1[Y_
M)9JXKPHZ45+RWZ/&LU3]?4\&CY4US^R&91]'.?\ O7J?O8\\78_=:GXPN[?H
MYY
CE1$QZW7*YCV]F-
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M"@IVPJIM!V1 ;0^A4
M !3B .%-H#A45!3B%-@[8]RH=L>Y28B>JFQVQ[C:(Z*J=D>Y4
M.V/<*;1/4[8%=H5[8 X4#@V@4[*?=#Y[%/@KO*DVJ)\Z*9^Q\^BH_ACX*]J?
M%\SBV:O.U1/SIA3T-K^&/@KVZO%\S@XT^=BU/_8A3T%K^&/A"OI*_&7S.F8E
M7GBV9^=NG]SYG&LSUHCX0^O37(_>GXOB=(P9\\/'G_NJ?W/F'GK;I^$'I[
MO\4_&7S.B:=/G@8W^YI_<^)P<2>MJG_3'Y*^GN_QS\94G0=-GST_%_W%/[E)
MT_#G_HT_Z8/3WOXY^,J?Q?TS_5V)_N*/W*?H_#_[-/\ I@]/=_CGXR?Q?TO_
M %;B?[BC]Q^C\/\ [-/^F%?K%Z/WY^,G\7]+_P!6XG^XH_6G8L?]Q3^X_1V'_V:?],'I[W\<_&7U&AZ='E@
M8L?]S3^Y7ZAB?]FG_3'Y'UB]_'/QE]1H^!'_ )%C_P"ZI_<^_J>-_P!JGX0I
MZ:[_ !3\95C2L*/+$L1\K5/[GU]5L?P1\(/37/XI^+[_ (/Q8_\ )[7^[C]S
M[]!:_ACX0IZ6O^*?B^HP[%/E9MQ\J(/06OX8^$*3
UWE,Q,1-/1PNTQ.T]7V^E0
M
M &HU;ZP,CUMF+=
AO5VXZ1+9X]V;UFBY5'.8;E
MW1S[?N662KW1\?N!3OB(Y\5-R7/_ %