Date of Report (Date of earliest event reported): | July 24, 2018 |
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 |
Financial data as of June 30, 2018 |
SUNTRUST BANKS, INC. | |||
(Registrant) | |||
Date: | July 24, 2018 | By: /s/ R. Ryan Richards | |
R. Ryan Richards, Senior Vice President, Controller |
• | Net income available to common shareholders was $697 million, or $1.49 per average common diluted share, compared to $1.29 for the prior quarter and $1.03 for the second quarter of 2017. |
• | Total revenue increased 4% sequentially and 3% year-over-year. These increases were driven largely by higher net interest income as a result of net interest margin expansion. The sequential increase was also driven by growth in earnings assets. |
• | Net interest margin was 3.28% in the current quarter, up 4 basis points sequentially and up 14 basis points compared to the prior year. The sequential and year-over-year increases were driven primarily by higher earning asset yields arising from higher benchmark interest rates, positive mix shift in the LHFI portfolio, and higher securities yields. |
• | Provision for credit losses was relatively stable sequentially and decreased $58 million year-over-year due primarily to a lower allowance for loan and lease losses ("ALLL"). |
• | Noninterest expense decreased 2% sequentially and remained stable year-over-year. The sequential decrease was driven primarily by a seasonal decline in employee benefits costs. |
• | The efficiency and tangible efficiency ratios for the current quarter were 59.4% and 58.7%, respectively, which reflect good improvements compared to the prior quarter and prior year, driven by ongoing expense management initiatives and strong revenue growth. The sequential improvement was also impacted by the seasonal decline in employee benefits costs. |
• | Average performing LHFI was up 1% compared to the prior quarter and relatively stable year-over-year. The sequential growth was driven by growth in C&I, CRE, and consumer direct loans. |
• | Average consumer and commercial deposits remained relatively stable compared to both the prior quarter and the second quarter of 2017. |
• | Estimated capital ratios continue to be well above regulatory requirements. The Common Equity Tier 1 ("CET1") ratio was estimated to be 9.7% as of June 30, 2018, slightly lower than the prior quarter, due to loan growth. |
• | During the quarter, the Company: |
◦ | Repurchased $330 million of its outstanding common stock, which completed its share repurchases under its 2017 Capital Plan. |
◦ | Announced its 2018 Capital Plan, which represents a combined 39% increase in total capital returns including: |
▪ | The purchase of up to $2.0 billion of its outstanding common stock between the third quarter of 2018 and the second quarter of 2019 (representing a 52% increase compared to the previous authorization). |
▪ | A 25% increase in the quarterly common stock dividend from $0.40 per common share to $0.50 per share, beginning in the third quarter of 2018, subject to approval by the Company's Board of Directors. |
• | Book value per common share was $47.70 and tangible book value per common share was $34.40, both up 1% from March 31, 2018, driven primarily by growth in retained earnings, offset by an increase in accumulated other comprehensive loss. |
• | Nonperforming loans ("NPLs") increased $43 million from the prior quarter and represented 0.52% of period-end LHFI at June 30, 2018. The increase was driven primarily by the downgrade of one borrower. |
• | Net charge-offs for the current quarter were $73 million, or 0.20% of total average LHFI on an annualized basis, compared to 0.22% during the prior quarter and 0.20% during the second quarter of 2017. |
• | At June 30, 2018, the ALLL to period-end LHFI ratio was 1.14%, a 5 basis point decline compared to the prior quarter, driven by lower reserves for hurricane-related losses and continued improvements in asset quality. |
• | Provision for credit losses was relatively stable sequentially and decreased $58 million year-over-year due primarily to a lower ALLL. |
Income Statement (Dollars in millions, except per share data) | 2Q 2018 | 1Q 2018 | 4Q 2017 | 3Q 2017 | 2Q 2017 | ||||||||||||||
Net interest income | $1,488 | $1,441 | $1,434 | $1,430 | $1,403 | ||||||||||||||
Net interest income-FTE 1 | 1,510 | 1,461 | 1,472 | 1,467 | 1,439 | ||||||||||||||
Net interest margin | 3.23 | % | 3.20 | % | 3.09 | % | 3.07 | % | 3.06 | % | |||||||||
Net interest margin-FTE 1 | 3.28 | 3.24 | 3.17 | 3.15 | 3.14 | ||||||||||||||
Noninterest income | $829 | $796 | $833 | $846 | $827 | ||||||||||||||
Total revenue | 2,317 | 2,237 | 2,267 | 2,276 | 2,230 | ||||||||||||||
Total revenue-FTE 1 | 2,339 | 2,257 | 2,305 | 2,313 | 2,266 | ||||||||||||||
Noninterest expense | 1,390 | 1,417 | 1,520 | 1,391 | 1,388 | ||||||||||||||
Provision for credit losses | 32 | 28 | 79 | 120 | 90 | ||||||||||||||
Net income available to common shareholders | 697 | 612 | 710 | 512 | 505 | ||||||||||||||
Earnings per average common diluted share | 1.49 | 1.29 | 1.48 | 1.06 | 1.03 | ||||||||||||||
Balance Sheet (Dollars in billions) | |||||||||||||||||||
Average LHFI | $144.2 | $142.9 | $144.0 | $144.7 | $144.4 | ||||||||||||||
Average consumer and commercial deposits | 159.0 | 159.2 | 160.7 | 159.4 | 159.1 | ||||||||||||||
Capital | |||||||||||||||||||
Basel III capital ratios at period end 2 : | |||||||||||||||||||
Tier 1 capital | 10.86 | % | 11.00 | % | 11.15 | % | 10.74 | % | 10.81 | % | |||||||||
Common Equity Tier 1 ("CET1") | 9.72 | 9.84 | 9.74 | 9.62 | 9.68 | ||||||||||||||
Total average shareholders’ equity to total average assets | 11.78 | 12.05 | 12.09 | 11.94 | 11.80 | ||||||||||||||
Asset Quality | |||||||||||||||||||
Net charge-offs to total average LHFI (annualized) | 0.20 | % | 0.22 | % | 0.29 | % | 0.21 | % | 0.20 | % | |||||||||
ALLL to period-end LHFI 3 | 1.14 | 1.19 | 1.21 | 1.23 | 1.20 | ||||||||||||||
NPLs to period-end LHFI | 0.52 | 0.50 | 0.47 | 0.48 | 0.52 |
• | 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 capital adequacy and profitability of the Company. |
• | Similarly, the Company presents Efficiency ratio-FTE, Tangible efficiency ratio-FTE, and Adjusted 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. 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. Adjusted tangible efficiency ratio-FTE removes the pre-tax impact of Form 8-K items announced on December 4, 2017 and the impacts of tax reform-related items from the calculation of Tangible efficiency ratio-FTE. The Company believes this measure is useful to investors because it is more reflective of normalized operations as it reflects results that are primarily client relationship and client transaction driven. These measures are utilized by management to assess the efficiency of the Company and its lines of business. |
(Dollars in millions and shares in thousands, except per share data) (Unaudited) | Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
EARNINGS & DIVIDENDS | |||||||||||||||
Net income | $722 | $528 | $1,365 | $995 | |||||||||||
Net income available to common shareholders | 697 | 505 | 1,310 | 956 | |||||||||||
Total revenue | 2,317 | 2,230 | 4,554 | 4,443 | |||||||||||
Total revenue-FTE 1 | 2,339 | 2,266 | 4,597 | 4,513 | |||||||||||
Net income per average common share: | |||||||||||||||
Diluted | $1.49 | $1.03 | $2.78 | $1.94 | |||||||||||
Basic | 1.50 | 1.05 | 2.80 | 1.97 | |||||||||||
Dividends paid per common share | 0.40 | 0.26 | 0.80 | 0.52 | |||||||||||
CONDENSED BALANCE SHEETS | |||||||||||||||
Selected Average Balances: | |||||||||||||||
Total assets | $204,548 | $204,494 | $204,341 | $204,374 | |||||||||||
Earning assets | 184,566 | 184,057 | 183,725 | 183,833 | |||||||||||
Loans held for investment ("LHFI") | 144,156 | 144,440 | 143,542 | 144,058 | |||||||||||
Intangible assets including residential mortgage servicing rights ("MSRs") | 8,355 | 8,024 | 8,300 | 8,025 | |||||||||||
Residential MSRs | 1,944 | 1,603 | 1,889 | 1,603 | |||||||||||
Consumer and commercial deposits | 158,957 | 159,136 | 159,063 | 159,006 | |||||||||||
Total shareholders’ equity | 24,095 | 24,139 | 24,349 | 23,906 | |||||||||||
Preferred stock | 2,025 | 1,720 | 2,206 | 1,474 | |||||||||||
Period End Balances: | |||||||||||||||
Total assets | $207,505 | $207,223 | |||||||||||||
Earning assets | 185,304 | 184,518 | |||||||||||||
LHFI | 144,935 | 144,268 | |||||||||||||
Allowance for loan and lease losses ("ALLL") | 1,650 | 1,731 | |||||||||||||
Consumer and commercial deposits | 160,410 | 158,319 | |||||||||||||
Total shareholders’ equity | 24,316 | 24,477 | |||||||||||||
FINANCIAL RATIOS & OTHER DATA | |||||||||||||||
Return on average total assets | 1.42 | % | 1.03 | % | 1.35 | % | 0.98 | % | |||||||
Return on average common shareholders’ equity | 12.73 | 9.08 | 11.98 | 8.64 | |||||||||||
Return on average tangible common shareholders' equity 1 | 17.74 | 12.51 | 16.67 | 11.90 | |||||||||||
Net interest margin | 3.23 | 3.06 | 3.21 | 3.04 | |||||||||||
Net interest margin-FTE 1 | 3.28 | 3.14 | 3.26 | 3.11 | |||||||||||
Efficiency ratio | 59.98 | 62.24 | 61.63 | 64.21 | |||||||||||
Efficiency ratio-FTE 1 | 59.41 | 61.24 | 61.06 | 63.21 | |||||||||||
Tangible efficiency ratio-FTE 1 | 58.69 | 60.59 | 60.37 | 62.59 | |||||||||||
Effective tax rate | 19 | 30 | 19 | 28 | |||||||||||
Basel III capital ratios at period end 2: | |||||||||||||||
Common Equity Tier 1 ("CET1") | 9.72 | % | 9.68 | % | |||||||||||
Tier 1 capital | 10.86 | 10.81 | |||||||||||||
Total capital | 12.67 | 12.75 | |||||||||||||
Leverage | 9.82 | 9.55 | |||||||||||||
Total average shareholders’ equity to total average assets | 11.78 | % | 11.80 | % | 11.92 | 11.70 | |||||||||
Tangible equity to tangible assets 1 | 9.01 | 9.15 | |||||||||||||
Tangible common equity to tangible assets 1 | 7.96 | 8.11 | |||||||||||||
Book value per common share | $47.70 | $46.51 | |||||||||||||
Tangible book value per common share 1 | 34.40 | 33.83 | |||||||||||||
Market capitalization | 30,712 | 27,319 | |||||||||||||
Average common shares outstanding: | |||||||||||||||
Diluted | 469,339 | 488,020 | 471,468 | 491,989 | |||||||||||
Basic | 465,529 | 482,913 | 467,117 | 486,482 | |||||||||||
Full-time equivalent employees | 23,199 | 24,278 | |||||||||||||
Number of ATMs | 2,062 | 2,104 | |||||||||||||
Full service banking offices | 1,222 | 1,281 | |||||||||||||
1 | See Appendix A for additional information and reconcilements of non-U.S. GAAP performance measures. |
2 | Basel III capital ratios are calculated under the standardized approach using regulatory capital methodology applicable to the Company for each period presented, including the phase-in of transition provisions through January 1, 2018. Capital ratios at June 30, 2018 are estimated as of the date of this document. |
Three Months Ended | |||||||||||
June 30 | March 31 | June 30 | |||||||||
(Dollars in millions and shares in thousands, except per share data) (Unaudited) | 2018 | 2018 | 2017 | ||||||||
EARNINGS & DIVIDENDS | |||||||||||
Net income | $722 | $643 | $528 | ||||||||
Net income available to common shareholders | 697 | 612 | 505 | ||||||||
Total revenue | 2,317 | 2,237 | 2,230 | ||||||||
Total revenue-FTE 1 | 2,339 | 2,257 | 2,266 | ||||||||
Net income per average common share: | |||||||||||
Diluted | $1.49 | $1.29 | $1.03 | ||||||||
Basic | 1.50 | 1.31 | 1.05 | ||||||||
Dividends paid per common share | 0.40 | 0.40 | 0.26 | ||||||||
CONDENSED BALANCE SHEETS | |||||||||||
Selected Average Balances: | |||||||||||
Total assets | $204,548 | $204,132 | $204,494 | ||||||||
Earning assets | 184,566 | 182,874 | 184,057 | ||||||||
LHFI | 144,156 | 142,920 | 144,440 | ||||||||
Intangible assets including residential MSRs | 8,355 | 8,244 | 8,024 | ||||||||
Residential MSRs | 1,944 | 1,833 | 1,603 | ||||||||
Consumer and commercial deposits | 158,957 | 159,169 | 159,136 | ||||||||
Total shareholders’ equity | 24,095 | 24,605 | 24,139 | ||||||||
Preferred stock | 2,025 | 2,390 | 1,720 | ||||||||
Period End Balances: | |||||||||||
Total assets | $207,505 | $204,885 | $207,223 | ||||||||
Earning assets | 185,304 | 182,913 | 184,518 | ||||||||
LHFI | 144,935 | 142,618 | 144,268 | ||||||||
ALLL | 1,650 | 1,694 | 1,731 | ||||||||
Consumer and commercial deposits | 160,410 | 161,357 | 158,319 | ||||||||
Total shareholders’ equity | 24,316 | 24,269 | 24,477 | ||||||||
FINANCIAL RATIOS & OTHER DATA | |||||||||||
Return on average total assets | 1.42 | % | 1.28 | % | 1.03 | % | |||||
Return on average common shareholders’ equity | 12.73 | 11.23 | 9.08 | ||||||||
Return on average tangible common shareholders' equity 1 | 17.74 | 15.60 | 12.51 | ||||||||
Net interest margin | 3.23 | 3.20 | 3.06 | ||||||||
Net interest margin-FTE 1 | 3.28 | 3.24 | 3.14 | ||||||||
Efficiency ratio | 59.98 | 63.35 | 62.24 | ||||||||
Efficiency ratio-FTE 1 | 59.41 | 62.77 | 61.24 | ||||||||
Tangible efficiency ratio-FTE 1 | 58.69 | 62.11 | 60.59 | ||||||||
Adjusted tangible efficiency ratio-FTE 1 | 58.69 | 62.11 | 60.59 | ||||||||
Effective tax rate | 19 | 19 | 30 | ||||||||
Basel III capital ratios at period end 2: | |||||||||||
CET1 | 9.72 | % | 9.84 | % | 9.68 | % | |||||
Tier 1 capital | 10.86 | 11.00 | 10.81 | ||||||||
Total capital | 12.67 | 12.90 | 12.75 | ||||||||
Leverage | 9.82 | 9.75 | 9.55 | ||||||||
Total average shareholders’ equity to total average assets | 11.78 | 12.05 | 11.80 | ||||||||
Tangible equity to tangible assets 1 | 9.01 | 9.11 | 9.15 | ||||||||
Tangible common equity to tangible assets 1 | 7.96 | 8.04 | 8.11 | ||||||||
Book value per common share | $47.70 | $47.14 | $46.51 | ||||||||
Tangible book value per common share 1 | 34.40 | 33.97 | 33.83 | ||||||||
Market capitalization | 30,712 | 31,959 | 27,319 | ||||||||
Average common shares outstanding: | |||||||||||
Diluted | 469,339 | 473,620 | 488,020 | ||||||||
Basic | 465,529 | 468,723 | 482,913 | ||||||||
Full-time equivalent employees | 23,199 | 23,208 | 24,278 | ||||||||
Number of ATMs | 2,062 | 2,075 | 2,104 | ||||||||
Full service banking offices | 1,222 | 1,236 | 1,281 | ||||||||
1 | See Appendix A for additional information and reconcilements of non-U.S. GAAP performance measures. |
2 | Basel III capital ratios are calculated under the standardized approach using regulatory capital methodology applicable to the Company for each period presented, including the phase-in of transition provisions through January 1, 2018. Capital ratios at June 30, 2018 are estimated as of the date of this document. |
Three Months Ended | Six Months Ended | ||||||||||||||
(Dollars in millions and shares in thousands, except per share data) (Unaudited) | June 30 | June 30 | |||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Interest income | $1,759 | $1,583 | $3,427 | $3,111 | |||||||||||
Interest expense | 271 | 180 | 499 | 342 | |||||||||||
NET INTEREST INCOME | 1,488 | 1,403 | 2,928 | 2,769 | |||||||||||
Provision for credit losses | 32 | 90 | 60 | 209 | |||||||||||
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES | 1,456 | 1,313 | 2,868 | 2,560 | |||||||||||
NONINTEREST INCOME | |||||||||||||||
Service charges on deposit accounts | 144 | 151 | 289 | 299 | |||||||||||
Other charges and fees | 93 | 103 | 179 | 198 | |||||||||||
Card fees | 85 | 87 | 166 | 169 | |||||||||||
Investment banking income | 167 | 147 | 298 | 314 | |||||||||||
Trading income | 53 | 46 | 95 | 97 | |||||||||||
Trust and investment management income | 75 | 76 | 150 | 151 | |||||||||||
Retail investment services | 73 | 70 | 145 | 139 | |||||||||||
Mortgage servicing related income | 40 | 44 | 95 | 102 | |||||||||||
Mortgage production related income | 43 | 56 | 79 | 109 | |||||||||||
Commercial real estate related income | 18 | 24 | 42 | 44 | |||||||||||
Net securities gains | — | 1 | 1 | 1 | |||||||||||
Other noninterest income | 38 | 22 | 87 | 51 | |||||||||||
Total noninterest income | 829 | 827 | 1,626 | 1,674 | |||||||||||
NONINTEREST EXPENSE | |||||||||||||||
Employee compensation and benefits | 802 | 796 | 1,656 | 1,648 | |||||||||||
Outside processing and software | 227 | 204 | 433 | 409 | |||||||||||
Net occupancy expense | 90 | 94 | 184 | 185 | |||||||||||
Equipment expense | 44 | 43 | 84 | 83 | |||||||||||
Marketing and customer development | 40 | 42 | 81 | 84 | |||||||||||
Regulatory assessments | 39 | 49 | 79 | 97 | |||||||||||
Amortization | 17 | 15 | 32 | 28 | |||||||||||
Operating losses | 17 | 19 | 23 | 51 | |||||||||||
Other noninterest expense | 114 | 126 | 235 | 268 | |||||||||||
Total noninterest expense | 1,390 | 1,388 | 2,807 | 2,853 | |||||||||||
INCOME BEFORE PROVISION FOR INCOME TAXES | 895 | 752 | 1,687 | 1,381 | |||||||||||
Provision for income taxes | 171 | 222 | 318 | 381 | |||||||||||
NET INCOME INCLUDING INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST | 724 | 530 | 1,369 | 1,000 | |||||||||||
Less: Net income attributable to noncontrolling interest | 2 | 2 | 4 | 5 | |||||||||||
NET INCOME | $722 | $528 | $1,365 | $995 | |||||||||||
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS | $697 | $505 | $1,310 | $956 | |||||||||||
Net interest income-FTE 1 | 1,510 | 1,439 | 2,971 | 2,839 | |||||||||||
Total revenue | 2,317 | 2,230 | 4,554 | 4,443 | |||||||||||
Total revenue-FTE 1 | 2,339 | 2,266 | 4,597 | 4,513 | |||||||||||
Net income per average common share: | |||||||||||||||
Diluted | 1.49 | 1.03 | 2.78 | 1.94 | |||||||||||
Basic | 1.50 | 1.05 | 2.80 | 1.97 | |||||||||||
Cash dividends paid per common share | 0.40 | 0.26 | 0.80 | 0.52 | |||||||||||
Average common shares outstanding: | |||||||||||||||
Diluted | 469,339 | 488,020 | 471,468 | 491,989 | |||||||||||
Basic | 465,529 | 482,913 | 467,117 | 486,482 | |||||||||||
Three Months Ended | |||||||||||
(Dollars in millions and shares in thousands, except per share data) (Unaudited) | June 30 | March 31 | June 30 | ||||||||
2018 | 2018 | 2017 | |||||||||
Interest income | $1,759 | $1,668 | $1,583 | ||||||||
Interest expense | 271 | 227 | 180 | ||||||||
NET INTEREST INCOME | 1,488 | 1,441 | 1,403 | ||||||||
Provision for credit losses | 32 | 28 | 90 | ||||||||
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES | 1,456 | 1,413 | 1,313 | ||||||||
NONINTEREST INCOME | |||||||||||
Service charges on deposit accounts | 144 | 146 | 151 | ||||||||
Other charges and fees | 93 | 87 | 103 | ||||||||
Card fees | 85 | 81 | 87 | ||||||||
Investment banking income | 167 | 131 | 147 | ||||||||
Trading income | 53 | 42 | 46 | ||||||||
Trust and investment management income | 75 | 75 | 76 | ||||||||
Retail investment services | 73 | 72 | 70 | ||||||||
Mortgage servicing related income | 40 | 54 | 44 | ||||||||
Mortgage production related income | 43 | 36 | 56 | ||||||||
Commercial real estate related income | 18 | 23 | 24 | ||||||||
Net securities gains/(losses) | — | 1 | 1 | ||||||||
Other noninterest income | 38 | 48 | 22 | ||||||||
Total noninterest income | 829 | 796 | 827 | ||||||||
NONINTEREST EXPENSE | |||||||||||
Employee compensation and benefits | 802 | 853 | 796 | ||||||||
Outside processing and software | 227 | 206 | 204 | ||||||||
Net occupancy expense | 90 | 94 | 94 | ||||||||
Equipment expense | 44 | 40 | 43 | ||||||||
Marketing and customer development | 40 | 41 | 42 | ||||||||
Regulatory assessments | 39 | 41 | 49 | ||||||||
Amortization | 17 | 15 | 15 | ||||||||
Operating losses | 17 | 6 | 19 | ||||||||
Other noninterest expense | 114 | 121 | 126 | ||||||||
Total noninterest expense | 1,390 | 1,417 | 1,388 | ||||||||
INCOME BEFORE PROVISION/(BENEFIT) FOR INCOME TAXES | 895 | 792 | 752 | ||||||||
Provision for income taxes | 171 | 147 | 222 | ||||||||
NET INCOME INCLUDING INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST | 724 | 645 | 530 | ||||||||
Less: Net income attributable to noncontrolling interest | 2 | 2 | 2 | ||||||||
NET INCOME | $722 | $643 | $528 | ||||||||
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS | $697 | $612 | $505 | ||||||||
Net interest income-FTE 1 | 1,510 | 1,461 | 1,439 | ||||||||
Total revenue | 2,317 | 2,237 | 2,230 | ||||||||
Total revenue-FTE 1 | 2,339 | 2,257 | 2,266 | ||||||||
Net income per average common share: | |||||||||||
Diluted | 1.49 | 1.29 | 1.03 | ||||||||
Basic | 1.50 | 1.31 | 1.05 | ||||||||
Cash dividends paid per common share | 0.40 | 0.40 | 0.26 | ||||||||
Average common shares outstanding: | |||||||||||
Diluted | 469,339 | 473,620 | 488,020 | ||||||||
Basic | 465,529 | 468,723 | 482,913 | ||||||||
June 30 | |||||||
(Dollars in millions and shares in thousands, except per share data) (Unaudited) | 2018 | 2017 | |||||
ASSETS | |||||||
Cash and due from banks | $5,858 | $6,968 | |||||
Federal funds sold and securities borrowed or purchased under agreements to resell | 1,365 | 1,249 | |||||
Interest-bearing deposits in other banks | 25 | 24 | |||||
Trading assets and derivative instruments | 5,050 | 5,847 | |||||
Securities available for sale 1 | 30,942 | 30,528 | |||||
Loans held for sale ("LHFS") | 2,283 | 2,826 | |||||
Loans held for investment ("LHFI"): | |||||||
Commercial and industrial ("C&I") | 67,343 | 68,511 | |||||
Commercial real estate ("CRE") | 6,302 | 5,250 | |||||
Commercial construction | 3,456 | 4,019 | |||||
Residential mortgages - guaranteed | 525 | 501 | |||||
Residential mortgages - nonguaranteed | 27,556 | 26,594 | |||||
Residential home equity products | 9,918 | 11,173 | |||||
Residential construction | 217 | 364 | |||||
Consumer student - guaranteed | 6,892 | 6,543 | |||||
Consumer other direct | 9,448 | 8,249 | |||||
Consumer indirect | 11,712 | 11,639 | |||||
Consumer credit cards | 1,566 | 1,425 | |||||
Total LHFI | 144,935 | 144,268 | |||||
Allowance for loan and lease losses ("ALLL") | (1,650 | ) | (1,731 | ) | |||
Net LHFI | 143,285 | 142,537 | |||||
Goodwill | 6,331 | 6,338 | |||||
Residential MSRs | 1,959 | 1,608 | |||||
Other assets 1 | 10,407 | 9,298 | |||||
Total assets 2 | $207,505 | $207,223 | |||||
LIABILITIES | |||||||
Deposits: | |||||||
Noninterest-bearing consumer and commercial deposits | $44,755 | $44,006 | |||||
Interest-bearing consumer and commercial deposits: | |||||||
NOW accounts | 45,430 | 43,973 | |||||
Money market accounts | 49,176 | 53,000 | |||||
Savings | 6,757 | 6,599 | |||||
Consumer time | 6,316 | 5,610 | |||||
Other time | 7,976 | 5,131 | |||||
Total consumer and commercial deposits | 160,410 | 158,319 | |||||
Brokered time deposits | 1,038 | 944 | |||||
Foreign deposits | — | 610 | |||||
Total deposits | 161,448 | 159,873 | |||||
Funds purchased | 1,251 | 3,007 | |||||
Securities sold under agreements to repurchase | 1,567 | 1,503 | |||||
Other short-term borrowings | 2,470 | 2,640 | |||||
Long-term debt | 11,995 | 10,511 | |||||
Trading liabilities and derivative instruments | 1,958 | 1,090 | |||||
Other liabilities | 2,500 | 4,122 | |||||
Total liabilities | 183,189 | 182,746 | |||||
SHAREHOLDERS' EQUITY | |||||||
Preferred stock, no par value | 2,025 | 1,975 | |||||
Common stock, $1.00 par value | 552 | 550 | |||||
Additional paid-in capital | 8,980 | 8,973 | |||||
Retained earnings | 18,616 | 16,701 | |||||
Treasury stock, at cost, and other | (4,178 | ) | (2,945 | ) | |||
Accumulated other comprehensive loss, net of tax | (1,679 | ) | (777 | ) | |||
Total shareholders' equity | 24,316 | 24,477 | |||||
Total liabilities and shareholders' equity | $207,505 | $207,223 | |||||
Common shares outstanding | 465,199 | 481,644 | |||||
Common shares authorized | 750,000 | 750,000 | |||||
Preferred shares outstanding | 20 | 20 | |||||
Preferred shares authorized | 50,000 | 50,000 | |||||
Treasury shares of common stock | 87,071 | 68,369 |
(Dollars in millions and shares in thousands, except per share data) (Unaudited) | June 30 | March 31 | June 30 | ||||||||
2018 | 2018 | 2017 | |||||||||
ASSETS | |||||||||||
Cash and due from banks | $5,858 | $5,851 | $6,968 | ||||||||
Federal funds sold and securities borrowed or purchased under agreements to resell | 1,365 | 1,428 | 1,249 | ||||||||
Interest-bearing deposits in other banks | 25 | 25 | 24 | ||||||||
Trading assets and derivative instruments | 5,050 | 5,112 | 5,847 | ||||||||
Securities available for sale 1 | 30,942 | 30,934 | 30,528 | ||||||||
LHFS | 2,283 | 2,377 | 2,826 | ||||||||
LHFI: | |||||||||||
C&I | 67,343 | 66,321 | 68,511 | ||||||||
CRE | 6,302 | 5,352 | 5,250 | ||||||||
Commercial construction | 3,456 | 3,651 | 4,019 | ||||||||
Residential mortgages - guaranteed | 525 | 611 | 501 | ||||||||
Residential mortgages - nonguaranteed | 27,556 | 27,165 | 26,594 | ||||||||
Residential home equity products | 9,918 | 10,241 | 11,173 | ||||||||
Residential construction | 217 | 256 | 364 | ||||||||
Consumer student - guaranteed | 6,892 | 6,693 | 6,543 | ||||||||
Consumer other direct | 9,448 | 8,941 | 8,249 | ||||||||
Consumer indirect | 11,712 | 11,869 | 11,639 | ||||||||
Consumer credit cards | 1,566 | 1,518 | 1,425 | ||||||||
Total LHFI | 144,935 | 142,618 | 144,268 | ||||||||
ALLL | (1,650 | ) | (1,694 | ) | (1,731 | ) | |||||
Net LHFI | 143,285 | 140,924 | 142,537 | ||||||||
Goodwill | 6,331 | 6,331 | 6,338 | ||||||||
Residential MSRs | 1,959 | 1,916 | 1,608 | ||||||||
Other assets 1 | 10,407 | 9,987 | 9,298 | ||||||||
Total assets 2 | $207,505 | $204,885 | $207,223 | ||||||||
LIABILITIES | |||||||||||
Deposits: | |||||||||||
Noninterest-bearing consumer and commercial deposits | $44,755 | $43,494 | $44,006 | ||||||||
Interest-bearing consumer and commercial deposits: | |||||||||||
NOW accounts | 45,430 | 46,672 | 43,973 | ||||||||
Money market accounts | 49,176 | 50,627 | 53,000 | ||||||||
Savings | 6,757 | 6,849 | 6,599 | ||||||||
Consumer time | 6,316 | 6,205 | 5,610 | ||||||||
Other time | 7,976 | 7,510 | 5,131 | ||||||||
Total consumer and commercial deposits | 160,410 | 161,357 | 158,319 | ||||||||
Brokered time deposits | 1,038 | 1,022 | 944 | ||||||||
Foreign deposits | — | — | 610 | ||||||||
Total deposits | 161,448 | 162,379 | 159,873 | ||||||||
Funds purchased | 1,251 | 1,189 | 3,007 | ||||||||
Securities sold under agreements to repurchase | 1,567 | 1,677 | 1,503 | ||||||||
Other short-term borrowings | 2,470 | 706 | 2,640 | ||||||||
Long-term debt | 11,995 | 10,692 | 10,511 | ||||||||
Trading liabilities and derivative instruments | 1,958 | 1,737 | 1,090 | ||||||||
Other liabilities | 2,500 | 2,236 | 4,122 | ||||||||
Total liabilities | 183,189 | 180,616 | 182,746 | ||||||||
SHAREHOLDERS’ EQUITY | |||||||||||
Preferred stock, no par value | 2,025 | 2,025 | 1,975 | ||||||||
Common stock, $1.00 par value | 552 | 552 | 550 | ||||||||
Additional paid-in capital | 8,980 | 8,960 | 8,973 | ||||||||
Retained earnings | 18,616 | 18,107 | 16,701 | ||||||||
Treasury stock, at cost, and other | (4,178 | ) | (3,853 | ) | (2,945 | ) | |||||
Accumulated other comprehensive loss, net of tax | (1,679 | ) | (1,522 | ) | (777 | ) | |||||
Total shareholders’ equity | 24,316 | 24,269 | 24,477 | ||||||||
Total liabilities and shareholders’ equity | $207,505 | $204,885 | $207,223 | ||||||||
Common shares outstanding | 465,199 | 469,708 | 481,644 | ||||||||
Common shares authorized | 750,000 | 750,000 | 750,000 | ||||||||
Preferred shares outstanding | 20 | 20 | 20 | ||||||||
Preferred shares authorized | 50,000 | 50,000 | 50,000 | ||||||||
Treasury shares of common stock | 87,071 | 82,223 | 68,369 |
SunTrust Banks, Inc. and Subsidiaries CONSOLIDATED DAILY AVERAGE BALANCES, INCOME/EXPENSE, AND AVERAGE YIELDS EARNED/RATES PAID | |||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||
June 30, 2018 | March 31, 2018 | ||||||||||||||||||||
(Dollars in millions) (Unaudited) | Average Balances | Interest Income/ Expense | Yields/ Rates | Average Balances | Interest Income/ Expense | Yields/ Rates | |||||||||||||||
ASSETS | |||||||||||||||||||||
Loans held for investment ("LHFI"): 1 | |||||||||||||||||||||
Commercial and industrial ("C&I") | $67,211 | $633 | 3.78 | % | $66,269 | $588 | 3.60 | % | |||||||||||||
Commercial real estate ("CRE") | 5,729 | 58 | 4.06 | 5,201 | 49 | 3.84 | |||||||||||||||
Commercial construction | 3,559 | 40 | 4.58 | 3,749 | 40 | 4.27 | |||||||||||||||
Residential mortgages - guaranteed | 588 | 5 | 3.33 | 637 | 5 | 3.12 | |||||||||||||||
Residential mortgages - nonguaranteed | 27,022 | 258 | 3.81 | 26,863 | 254 | 3.79 | |||||||||||||||
Residential home equity products | 9,918 | 119 | 4.81 | 10,243 | 116 | 4.60 | |||||||||||||||
Residential construction | 216 | 3 | 5.26 | 261 | 3 | 4.47 | |||||||||||||||
Consumer student - guaranteed | 6,763 | 83 | 4.92 | 6,655 | 78 | 4.76 | |||||||||||||||
Consumer other direct | 9,169 | 120 | 5.26 | 8,804 | 110 | 5.08 | |||||||||||||||
Consumer indirect | 11,733 | 108 | 3.68 | 12,001 | 108 | 3.63 | |||||||||||||||
Consumer credit cards | 1,524 | 43 | 11.45 | 1,526 | 43 | 11.26 | |||||||||||||||
Nonaccrual | 724 | 6 | 3.35 | 711 | 4 | 2.25 | |||||||||||||||
Total LHFI | 144,156 | 1,476 | 4.11 | 142,920 | 1,398 | 3.97 | |||||||||||||||
Securities available for sale: 2 | |||||||||||||||||||||
Taxable | 30,959 | 205 | 2.65 | 30,849 | 201 | 2.61 | |||||||||||||||
Tax-exempt | 637 | 5 | 2.99 | 628 | 5 | 2.98 | |||||||||||||||
Total securities available for sale | 31,596 | 210 | 2.66 | 31,477 | 206 | 2.62 | |||||||||||||||
Federal funds sold and securities borrowed or purchased under agreements to resell | 1,471 | 6 | 1.58 | 1,334 | 4 | 1.18 | |||||||||||||||
Loans held for sale ("LHFS") | 2,117 | 24 | 4.54 | 2,025 | 21 | 4.12 | |||||||||||||||
Interest-bearing deposits in other banks | 25 | — | 2.32 | 25 | — | 1.85 | |||||||||||||||
Interest earning trading assets | 4,677 | 38 | 3.23 | 4,564 | 34 | 3.05 | |||||||||||||||
Other earning assets 2 | 524 | 5 | 3.97 | 529 | 5 | 3.50 | |||||||||||||||
Total earning assets | 184,566 | 1,759 | 3.82 | 182,874 | 1,668 | 3.70 | |||||||||||||||
Allowance for loan and lease losses ("ALLL") | (1,682 | ) | (1,726 | ) | |||||||||||||||||
Cash and due from banks | 4,223 | 5,329 | |||||||||||||||||||
Other assets | 17,573 | 17,256 | |||||||||||||||||||
Noninterest earning trading assets and derivative instruments | 512 | 772 | |||||||||||||||||||
Unrealized losses on securities available for sale, net | (644 | ) | (373 | ) | |||||||||||||||||
Total assets | $204,548 | $204,132 | |||||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||||||||||
Interest-bearing deposits: | |||||||||||||||||||||
NOW accounts | $45,344 | $52 | 0.46 | % | $46,590 | $45 | 0.39 | % | |||||||||||||
Money market accounts | 49,845 | 60 | 0.49 | 50,543 | 48 | 0.39 | |||||||||||||||
Savings | 6,805 | 1 | 0.03 | 6,587 | — | 0.02 | |||||||||||||||
Consumer time | 6,280 | 15 | 0.95 | 6,085 | 13 | 0.87 | |||||||||||||||
Other time | 7,643 | 27 | 1.41 | 7,026 | 22 | 1.25 | |||||||||||||||
Total interest-bearing consumer and commercial deposits | 115,917 | 155 | 0.54 | 116,831 | 128 | 0.44 | |||||||||||||||
Brokered time deposits | 1,029 | 4 | 1.46 | 1,006 | 3 | 1.35 | |||||||||||||||
Foreign deposits | 139 | — | 1.90 | 51 | — | 1.42 | |||||||||||||||
Total interest-bearing deposits | 117,085 | 159 | 0.55 | 117,888 | 131 | 0.45 | |||||||||||||||
Funds purchased | 1,102 | 5 | 1.73 | 876 | 3 | 1.45 | |||||||||||||||
Securities sold under agreements to repurchase | 1,656 | 7 | 1.71 | 1,595 | 5 | 1.39 | |||||||||||||||
Interest-bearing trading liabilities | 1,314 | 10 | 3.12 | 1,110 | 8 | 2.84 | |||||||||||||||
Other short-term borrowings | 1,807 | 7 | 1.54 | 2,084 | 6 | 1.11 | |||||||||||||||
Long-term debt | 11,452 | 83 | 2.92 | 10,506 | 74 | 2.84 | |||||||||||||||
Total interest-bearing liabilities | 134,416 | 271 | 0.81 | 134,059 | 227 | 0.69 | |||||||||||||||
Noninterest-bearing deposits | 43,040 | 42,338 | |||||||||||||||||||
Other liabilities | 2,309 | 2,499 | |||||||||||||||||||
Noninterest-bearing trading liabilities and derivative instruments | 688 | 631 | |||||||||||||||||||
Shareholders’ equity | 24,095 | 24,605 | |||||||||||||||||||
Total liabilities and shareholders’ equity | $204,548 | $204,132 | |||||||||||||||||||
Interest Rate Spread | 3.01 | % | 3.01 | % | |||||||||||||||||
Net Interest Income | $1,488 | $1,441 | |||||||||||||||||||
Net Interest Income-FTE 3 | $1,510 | $1,461 | |||||||||||||||||||
Net Interest Margin 4 | 3.23 | % | 3.20 | % | |||||||||||||||||
Net Interest Margin-FTE 3, 4 | 3.28 | 3.24 |
SunTrust Banks, Inc. and Subsidiaries CONSOLIDATED DAILY AVERAGE BALANCES, INCOME/EXPENSE, AND AVERAGE YIELDS EARNED/RATES PAID, continued | ||||||||||
Three Months Ended | ||||||||||
June 30, 2017 | ||||||||||
(Dollars in millions) (Unaudited) | Average Balances | Interest Income/ Expense | Yields/ Rates | |||||||
ASSETS | ||||||||||
LHFI: 1 | ||||||||||
C&I | $69,122 | $574 | 3.33 | % | ||||||
CRE | 5,157 | 44 | 3.38 | |||||||
Commercial construction | 4,105 | 37 | 3.63 | |||||||
Residential mortgages - guaranteed | 532 | 4 | 2.95 | |||||||
Residential mortgages - nonguaranteed | 26,090 | 248 | 3.80 | |||||||
Residential home equity products | 11,113 | 118 | 4.27 | |||||||
Residential construction | 363 | 4 | 4.19 | |||||||
Consumer student - guaranteed | 6,462 | 71 | 4.42 | |||||||
Consumer other direct | 8,048 | 97 | 4.84 | |||||||
Consumer indirect | 11,284 | 98 | 3.50 | |||||||
Consumer credit cards | 1,391 | 35 | 9.96 | |||||||
Nonaccrual | 773 | 8 | 4.37 | |||||||
Total LHFI | 144,440 | 1,338 | 3.72 | |||||||
Securities available for sale: 2 | ||||||||||
Taxable | 30,057 | 184 | 2.45 | |||||||
Tax-exempt | 348 | 3 | 3.04 | |||||||
Total securities available for sale | 30,405 | 187 | 2.46 | |||||||
Federal funds sold and securities borrowed or purchased under agreements to resell | 1,237 | 2 | 0.68 | |||||||
LHFS | 2,222 | 21 | 3.86 | |||||||
Interest-bearing deposits in other banks | 25 | — | 0.62 | |||||||
Interest earning trading assets | 5,131 | 30 | 2.33 | |||||||
Other earning assets 2 | 597 | 5 | 3.01 | |||||||
Total earning assets | 184,057 | 1,583 | 3.45 | |||||||
ALLL | (1,723 | ) | ||||||||
Cash and due from banks | 4,901 | |||||||||
Other assets | 16,248 | |||||||||
Noninterest earning trading assets and derivative instruments | 918 | |||||||||
Unrealized gains on securities available for sale, net | 93 | |||||||||
Total assets | $204,494 | |||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||
Interest-bearing deposits: | ||||||||||
NOW accounts | $44,437 | $30 | 0.27 | % | ||||||
Money market accounts | 54,199 | 38 | 0.28 | |||||||
Savings | 6,638 | — | 0.03 | |||||||
Consumer time | 5,555 | 10 | 0.71 | |||||||
Other time | 4,691 | 12 | 1.05 | |||||||
Total interest-bearing consumer and commercial deposits | 115,520 | 90 | 0.31 | |||||||
Brokered time deposits | 929 | 3 | 1.29 | |||||||
Foreign deposits | 720 | 2 | 0.95 | |||||||
Total interest-bearing deposits | 117,169 | 95 | 0.32 | |||||||
Funds purchased | 1,155 | 3 | 0.96 | |||||||
Securities sold under agreements to repurchase | 1,572 | 3 | 0.89 | |||||||
Interest-bearing trading liabilities | 992 | 6 | 2.66 | |||||||
Other short-term borrowings | 2,008 | 3 | 0.55 | |||||||
Long-term debt | 10,518 | 70 | 2.66 | |||||||
Total interest-bearing liabilities | 133,414 | 180 | 0.54 | |||||||
Noninterest-bearing deposits | 43,616 | |||||||||
Other liabilities | 2,976 | |||||||||
Noninterest-bearing trading liabilities and derivative instruments | 349 | |||||||||
Shareholders’ equity | 24,139 | |||||||||
Total liabilities and shareholders’ equity | $204,494 | |||||||||
Interest Rate Spread | 2.91 | % | ||||||||
Net Interest Income | $1,403 | |||||||||
Net Interest Income-FTE 3 | $1,439 | |||||||||
Net Interest Margin 4 | 3.06 | % | ||||||||
Net Interest Margin-FTE 3, 4 | 3.14 |
1 | Interest income includes loan fees of $45 million for the three months ended June 30, 2017. |
2 | Beginning January 1, 2018, the Company began presenting other equity securities previously presented in securities available for sale as other earning assets. For periods prior to January 1, 2018, these equity securities have been reclassified to other earning assets for comparability. |
3 | 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 June 30, 2017 was attributed to C&I loans. |
4 | 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, 2018 | June 30, 2017 | ||||||||||||||||||||
(Dollars in millions) (Unaudited) | Average Balances | Interest Income/ Expense | Yields/ Rates | Average Balances | Interest Income/ Expense | Yields/ Rates | |||||||||||||||
ASSETS | |||||||||||||||||||||
LHFI: 1 | |||||||||||||||||||||
C&I | $66,742 | $1,221 | 3.69 | % | $69,099 | $1,128 | 3.29 | % | |||||||||||||
CRE | 5,466 | 107 | 3.96 | 5,098 | 83 | 3.28 | |||||||||||||||
Commercial construction | 3,653 | 80 | 4.42 | 4,090 | 71 | 3.51 | |||||||||||||||
Residential mortgages - guaranteed | 613 | 10 | 3.22 | 550 | 8 | 3.01 | |||||||||||||||
Residential mortgages - nonguaranteed | 26,943 | 512 | 3.80 | 26,004 | 494 | 3.80 | |||||||||||||||
Residential home equity products | 10,080 | 235 | 4.70 | 11,289 | 235 | 4.19 | |||||||||||||||
Residential construction | 239 | 6 | 4.83 | 374 | 8 | 4.12 | |||||||||||||||
Consumer student - guaranteed | 6,710 | 161 | 4.84 | 6,371 | 136 | 4.31 | |||||||||||||||
Consumer other direct | 8,988 | 230 | 5.17 | 7,934 | 194 | 4.93 | |||||||||||||||
Consumer indirect | 11,866 | 215 | 3.66 | 11,067 | 190 | 3.46 | |||||||||||||||
Consumer credit cards | 1,525 | 87 | 11.35 | 1,380 | 68 | 9.87 | |||||||||||||||
Nonaccrual | 717 | 10 | 2.81 | 802 | 13 | 3.16 | |||||||||||||||
Total LHFI | 143,542 | 2,874 | 4.04 | 144,058 | 2,628 | 3.68 | |||||||||||||||
Securities available for sale: 2 | |||||||||||||||||||||
Taxable | 30,904 | 407 | 2.63 | 30,011 | 364 | 2.43 | |||||||||||||||
Tax-exempt | 633 | 9 | 2.98 | 317 | 5 | 3.04 | |||||||||||||||
Total securities available for sale | 31,537 | 416 | 2.64 | 30,328 | 369 | 2.44 | |||||||||||||||
Federal funds sold and securities borrowed or purchased under agreements to resell | 1,403 | 10 | 1.39 | 1,237 | 3 | 0.51 | |||||||||||||||
LHFS | 2,071 | 45 | 4.33 | 2,415 | 46 | 3.78 | |||||||||||||||
Interest-bearing deposits in other banks | 25 | — | 2.08 | 25 | — | 0.63 | |||||||||||||||
Interest earning trading assets | 4,621 | 72 | 3.14 | 5,159 | 56 | 2.21 | |||||||||||||||
Other earning assets 2 | 526 | 10 | 3.74 | 611 | 9 | 2.97 | |||||||||||||||
Total earning assets | 183,725 | 3,427 | 3.76 | 183,833 | 3,111 | 3.41 | |||||||||||||||
ALLL | (1,704 | ) | (1,711 | ) | |||||||||||||||||
Cash and due from banks | 4,773 | 5,227 | |||||||||||||||||||
Other assets | 17,415 | 16,100 | |||||||||||||||||||
Noninterest earning trading assets and derivative instruments | 641 | 903 | |||||||||||||||||||
Unrealized (losses)/gains on securities available for sale, net | (509 | ) | 22 | ||||||||||||||||||
Total assets | $204,341 | $204,374 | |||||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||||||||||
Interest-bearing deposits: | |||||||||||||||||||||
NOW accounts | $45,964 | $97 | 0.42 | % | $44,590 | $53 | 0.24 | % | |||||||||||||
Money market accounts | 50,192 | 109 | 0.44 | 54,549 | 71 | 0.26 | |||||||||||||||
Savings | 6,697 | 1 | 0.03 | 6,527 | 1 | 0.03 | |||||||||||||||
Consumer time | 6,183 | 28 | 0.91 | 5,521 | 19 | 0.70 | |||||||||||||||
Other time | 7,336 | 48 | 1.33 | 4,463 | 22 | 1.01 | |||||||||||||||
Total interest-bearing consumer and commercial deposits | 116,372 | 283 | 0.49 | 115,650 | 166 | 0.29 | |||||||||||||||
Brokered time deposits | 1,018 | 7 | 1.40 | 923 | 6 | 1.28 | |||||||||||||||
Foreign deposits | 95 | 1 | 1.77 | 699 | 3 | 0.81 | |||||||||||||||
Total interest-bearing deposits | 117,485 | 291 | 0.50 | 117,272 | 175 | 0.30 | |||||||||||||||
Funds purchased | 990 | 8 | 1.61 | 1,014 | 4 | 0.83 | |||||||||||||||
Securities sold under agreements to repurchase | 1,626 | 13 | 1.55 | 1,643 | 6 | 0.74 | |||||||||||||||
Interest-bearing trading liabilities | 1,212 | 18 | 2.99 | 997 | 13 | 2.63 | |||||||||||||||
Other short-term borrowings | 1,945 | 12 | 1.31 | 1,881 | 5 | 0.52 | |||||||||||||||
Long-term debt | 10,981 | 157 | 2.88 | 11,038 | 139 | 2.55 | |||||||||||||||
Total interest-bearing liabilities | 134,239 | 499 | 0.75 | 133,845 | 342 | 0.52 | |||||||||||||||
Noninterest-bearing deposits | 42,691 | 43,356 | |||||||||||||||||||
Other liabilities | 2,403 | 2,919 | |||||||||||||||||||
Noninterest-bearing trading liabilities and derivative instruments | 659 | 348 | |||||||||||||||||||
Shareholders’ equity | 24,349 | 23,906 | |||||||||||||||||||
Total liabilities and shareholders’ equity | $204,341 | $204,374 | |||||||||||||||||||
Interest Rate Spread | 3.01 | % | 2.89 | % | |||||||||||||||||
Net Interest Income | $2,928 | $2,769 | |||||||||||||||||||
Net Interest Income-FTE 3 | $2,971 | $2,839 | |||||||||||||||||||
Net Interest Margin 4 | 3.21 | % | 3.04 | % | |||||||||||||||||
Net Interest Margin-FTE 3, 4 | 3.26 | 3.11 |
SunTrust Banks, Inc. and Subsidiaries OTHER FINANCIAL DATA | |||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||
June 30 | June 30 | ||||||||||||||
(Dollars in millions) (Unaudited) | 2018 | 2017 | 2018 | 2017 | |||||||||||
CREDIT DATA | |||||||||||||||
Allowance for credit losses, beginning of period | $1,763 | $1,783 | $1,814 | $1,776 | |||||||||||
Provision/(benefit) for unfunded commitments | 3 | 3 | (7 | ) | 5 | ||||||||||
Provision for loan losses: | |||||||||||||||
Commercial | 17 | 39 | 1 | 84 | |||||||||||
Consumer | 12 | 48 | 66 | 120 | |||||||||||
Total provision for loan losses | 29 | 87 | 67 | 204 | |||||||||||
Charge-offs: | |||||||||||||||
Commercial | (21 | ) | (26 | ) | (44 | ) | (89 | ) | |||||||
Consumer | (80 | ) | (75 | ) | (163 | ) | (159 | ) | |||||||
Total charge-offs | (101 | ) | (101 | ) | (207 | ) | (248 | ) | |||||||
Recoveries: | |||||||||||||||
Commercial | 4 | 7 | 10 | 21 | |||||||||||
Consumer | 24 | 24 | 45 | 45 | |||||||||||
Total recoveries | 28 | 31 | 55 | 66 | |||||||||||
Net charge-offs | (73 | ) | (70 | ) | (152 | ) | (182 | ) | |||||||
Allowance for credit losses, end of period | $1,722 | $1,803 | $1,722 | $1,803 | |||||||||||
Components: | |||||||||||||||
Allowance for loan and lease losses ("ALLL") | $1,650 | $1,731 | |||||||||||||
Unfunded commitments reserve | 72 | 72 | |||||||||||||
Allowance for credit losses | $1,722 | $1,803 | |||||||||||||
Net charge-offs to average loans held for investment ("LHFI") (annualized): | |||||||||||||||
Commercial | 0.09 | % | 0.10 | % | 0.09 | % | 0.18 | % | |||||||
Consumer | 0.34 | 0.32 | 0.35 | 0.35 | |||||||||||
Total net charge-offs to total average LHFI | 0.20 | 0.20 | 0.21 | 0.26 | |||||||||||
Period Ended | |||||||||||||||
Nonaccrual/nonperforming loans ("NPLs"): | |||||||||||||||
Commercial | $341 | $325 | |||||||||||||
Consumer | 414 | 429 | |||||||||||||
Total nonaccrual/NPLs | 755 | 754 | |||||||||||||
Other real estate owned (“OREO”) | 53 | 61 | |||||||||||||
Other repossessed assets | 6 | 6 | |||||||||||||
Total nonperforming assets ("NPAs") | $814 | $821 | |||||||||||||
Accruing restructured loans | $2,418 | $2,524 | |||||||||||||
Nonaccruing restructured loans 1 | 326 | 321 | |||||||||||||
Accruing LHFI past due > 90 days (guaranteed) | 1,201 | 1,221 | |||||||||||||
Accruing LHFI past due > 90 days (non-guaranteed) | 41 | 30 | |||||||||||||
Accruing LHFS past due > 90 days | 1 | 1 | |||||||||||||
NPLs to period-end LHFI | 0.52 | % | 0.52 | % | |||||||||||
NPAs to period-end LHFI plus OREO, and other repossessed assets | 0.56 | 0.57 | |||||||||||||
ALLL to period-end LHFI 2, 3 | 1.14 | 1.20 | |||||||||||||
ALLL to NPLs 2, 3 | 2.20x | 2.31x | |||||||||||||
SunTrust Banks, Inc. and Subsidiaries OTHER FINANCIAL DATA, continued | |||||||||||
Three Months Ended | |||||||||||
June 30 | March 31 | June 30 | |||||||||
(Dollars in millions) (Unaudited) | 2018 | 2018 | 2017 | ||||||||
CREDIT DATA | |||||||||||
Allowance for credit losses, beginning of period | $1,763 | $1,814 | $1,783 | ||||||||
Provision/(benefit) for unfunded commitments | 3 | (10 | ) | 3 | |||||||
Provision/(benefit) for loan losses: | |||||||||||
Commercial | 17 | (16 | ) | 39 | |||||||
Consumer | 12 | 54 | 48 | ||||||||
Total provision for loan losses | 29 | 38 | 87 | ||||||||
Charge-offs: | |||||||||||
Commercial | (21 | ) | (23 | ) | (26 | ) | |||||
Consumer | (80 | ) | (83 | ) | (75 | ) | |||||
Total charge-offs | (101 | ) | (106 | ) | (101 | ) | |||||
Recoveries: | |||||||||||
Commercial | 4 | 6 | 7 | ||||||||
Consumer | 24 | 21 | 24 | ||||||||
Total recoveries | 28 | 27 | 31 | ||||||||
Net charge-offs | (73 | ) | (79 | ) | (70 | ) | |||||
Other | — | — | — | ||||||||
Allowance for credit losses, end of period | $1,722 | $1,763 | $1,803 | ||||||||
Components: | |||||||||||
ALLL | $1,650 | $1,694 | $1,731 | ||||||||
Unfunded commitments reserve | 72 | 69 | 72 | ||||||||
Allowance for credit losses | $1,722 | $1,763 | $1,803 | ||||||||
Net charge-offs to average LHFI (annualized): | |||||||||||
Commercial | 0.09 | % | 0.09 | % | 0.10 | % | |||||
Consumer | 0.34 | 0.37 | 0.32 | ||||||||
Total net charge-offs to total average LHFI | 0.20 | 0.22 | 0.20 | ||||||||
Period Ended | |||||||||||
Nonaccrual/NPLs: | |||||||||||
Commercial | $341 | $262 | $325 | ||||||||
Consumer | 414 | 450 | 429 | ||||||||
Total nonaccrual/NPLs | 755 | 712 | 754 | ||||||||
OREO | 53 | 59 | 61 | ||||||||
Other repossessed assets | 6 | 7 | 6 | ||||||||
Nonperforming LHFS | — | — | — | ||||||||
Total NPAs | $814 | $778 | $821 | ||||||||
Accruing restructured loans | $2,418 | $2,476 | $2,524 | ||||||||
Nonaccruing restructured loans 1 | 326 | 279 | 321 | ||||||||
Accruing LHFI past due > 90 days (guaranteed) | 1,201 | 1,312 | 1,221 | ||||||||
Accruing LHFI past due > 90 days (non-guaranteed) | 41 | 36 | 30 | ||||||||
Accruing LHFS past due > 90 days | 1 | 3 | 1 | ||||||||
NPLs to period-end LHFI | 0.52 | % | 0.50 | % | 0.52 | % | |||||
NPAs to period-end LHFI plus OREO, other repossessed assets, and nonperforming LHFS | 0.56 | 0.55 | 0.57 | ||||||||
ALLL to period-end LHFI 2, 3 | 1.14 | 1.19 | 1.20 | ||||||||
ALLL to NPLs 2, 3 | 2.20x | 2.40x | 2.31x | ||||||||
SunTrust Banks, Inc. and Subsidiaries OTHER FINANCIAL DATA, continued | |||||||||||||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||||||||||
(Dollars in millions) (Unaudited) | Residential MSRs - Fair Value | Commercial Mortgage Servicing Rights and Other | Total | Residential MSRs - Fair Value | Commercial Mortgage Servicing Rights and Other | Total | |||||||||||||||||
OTHER INTANGIBLE ASSETS ROLLFORWARD | |||||||||||||||||||||||
Balance, beginning of period | $1,645 | $84 | $1,729 | $1,572 | $85 | $1,657 | |||||||||||||||||
Amortization | — | (5 | ) | (5 | ) | — | (10 | ) | (10 | ) | |||||||||||||
Servicing rights originated | 65 | 2 | 67 | 162 | 7 | 169 | |||||||||||||||||
Fair value changes due to inputs and assumptions 1 | (43 | ) | — | (43 | ) | (16 | ) | — | (16 | ) | |||||||||||||
Other changes in fair value 2 | (58 | ) | — | (58 | ) | (109 | ) | — | (109 | ) | |||||||||||||
Servicing rights sold | (1 | ) | — | (1 | ) | (1 | ) | — | (1 | ) | |||||||||||||
Other 3 | — | — | — | — | (1 | ) | (1 | ) | |||||||||||||||
Balance, June 30, 2017 | $1,608 | $81 | $1,689 | $1,608 | $81 | $1,689 | |||||||||||||||||
Balance, beginning of period | $1,916 | $80 | $1,996 | $1,710 | $81 | $1,791 | |||||||||||||||||
Amortization | — | (6 | ) | (6 | ) | — | (11 | ) | (11 | ) | |||||||||||||
Servicing rights originated | 74 | 3 | 77 | 149 | 7 | 156 | |||||||||||||||||
Servicing rights purchased | — | — | — | 75 | — | 75 | |||||||||||||||||
Fair value changes due to inputs and assumptions 1 | 35 | — | 35 | 146 | — | 146 | |||||||||||||||||
Other changes in fair value 2 | (65 | ) | — | (65 | ) | (120 | ) | — | (120 | ) | |||||||||||||
Servicing rights sold | (1 | ) | — | (1 | ) | (1 | ) | — | (1 | ) | |||||||||||||
Balance, June 30, 2018 | $1,959 | $77 | $2,036 | $1,959 | $77 | $2,036 |
SunTrust Banks, Inc. and Subsidiaries APPENDIX A - RECONCILEMENT OF NON-U.S. GAAP MEASURES 1 | |||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||
June 30 | March 31 | June 30 | June 30 | ||||||||||||||||
(Dollars in millions) (Unaudited) | 2018 | 2018 | 2017 | 2018 | 2017 | ||||||||||||||
Net interest income | $1,488 | $1,441 | $1,403 | $2,928 | $2,769 | ||||||||||||||
Fully taxable-equivalent ("FTE") adjustment | 22 | 20 | 36 | 43 | 70 | ||||||||||||||
Net interest income-FTE 2 | 1,510 | 1,461 | 1,439 | 2,971 | 2,839 | ||||||||||||||
Noninterest income | 829 | 796 | 827 | 1,626 | 1,674 | ||||||||||||||
Total revenue-FTE 2 | $2,339 | $2,257 | $2,266 | $4,597 | $4,513 | ||||||||||||||
Return on average common shareholders’ equity | 12.73 | % | 11.23 | % | 9.08 | % | 11.98 | % | 8.64 | % | |||||||||
Impact of removing average intangible assets and related pre-tax amortization, other than residential MSRs and other servicing rights | 5.01 | 4.37 | 3.43 | 4.69 | 3.26 | ||||||||||||||
Return on average tangible common shareholders' equity 3 | 17.74 | % | 15.60 | % | 12.51 | % | 16.67 | % | 11.90 | % | |||||||||
Net interest margin | 3.23 | % | 3.20 | % | 3.06 | % | 3.21 | % | 3.04 | % | |||||||||
Impact of FTE adjustment | 0.05 | 0.04 | 0.08 | 0.05 | 0.07 | ||||||||||||||
Net interest margin-FTE 2 | 3.28 | % | 3.24 | % | 3.14 | % | 3.26 | % | 3.11 | % | |||||||||
Noninterest expense | $1,390 | $1,417 | $1,388 | $2,807 | $2,853 | ||||||||||||||
Total revenue | 2,317 | 2,237 | 2,230 | 4,554 | 4,443 | ||||||||||||||
Efficiency ratio 4 | 59.98 | % | 63.35 | % | 62.24 | % | 61.63 | % | 64.21 | % | |||||||||
Impact of FTE adjustment | (0.57 | ) | (0.58 | ) | (1.00 | ) | (0.57 | ) | (1.00 | ) | |||||||||
Efficiency ratio-FTE 2, 4 | 59.41 | 62.77 | 61.24 | 61.06 | 63.21 | ||||||||||||||
Impact of excluding amortization related to intangible assets and certain tax credits | (0.72 | ) | (0.66 | ) | (0.65 | ) | (0.69 | ) | (0.62 | ) | |||||||||
Tangible efficiency ratio-FTE 2, 5 | 58.69 | % | 62.11 | % | 60.59 | % | 60.37 | % | 62.59 | % | |||||||||
Impact of excluding Form 8-K and other tax reform-related items | — | — | — | — | — | ||||||||||||||
Adjusted tangible efficiency ratio-FTE 2, 5, 6 | 58.69 | % | 62.11 | % | 60.59 | % | 60.37 | % | 62.59 | % | |||||||||
SunTrust Banks, Inc. and Subsidiaries APPENDIX A - RECONCILEMENT OF NON-U.S. GAAP MEASURES, continued 1 | |||||||||||
June 30 | March 31 | June 30 | |||||||||
(Dollars in millions, except per share data) (Unaudited) | 2018 | 2018 | 2017 | ||||||||
Total shareholders' equity | $24,316 | $24,269 | $24,477 | ||||||||
Goodwill, net of deferred taxes of $159 million, $159 million, and $253 million, respectively | (6,172 | ) | (6,172 | ) | (6,085 | ) | |||||
Other intangible assets (including residential MSRs and other servicing rights) | (2,036 | ) | (1,996 | ) | (1,689 | ) | |||||
Residential MSRs and other servicing rights | 2,022 | 1,981 | 1,671 | ||||||||
Tangible equity 2 | 18,130 | 18,082 | 18,374 | ||||||||
Noncontrolling interest | (103 | ) | (101 | ) | (103 | ) | |||||
Preferred stock | (2,025 | ) | (2,025 | ) | (1,975 | ) | |||||
Tangible common equity 2 | $16,002 | $15,956 | $16,296 | ||||||||
Total assets | $207,505 | $204,885 | $207,223 | ||||||||
Goodwill | (6,331 | ) | (6,331 | ) | (6,338 | ) | |||||
Other intangible assets (including residential MSRs and other servicing rights) | (2,036 | ) | (1,996 | ) | (1,689 | ) | |||||
Residential MSRs and other servicing rights | 2,022 | 1,981 | 1,671 | ||||||||
Tangible assets | $201,160 | $198,539 | $200,867 | ||||||||
Tangible equity to tangible assets 2 | 9.01 | % | 9.11 | % | 9.15 | % | |||||
Tangible common equity to tangible assets 2 | 7.96 | 8.04 | 8.11 | ||||||||
Tangible book value per common share 3 | $34.40 | $33.97 | $33.83 | ||||||||
SunTrust Banks, Inc. and Subsidiaries CONSUMER BUSINESS SEGMENT | |||||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||
(Dollars in millions) (Unaudited) | 2018 | 2017 1 | 2018 | 2017 1 | |||||||||||
Statements of Income: | |||||||||||||||
Net interest income | $1,058 | $975 | $2,073 | $1,917 | |||||||||||
FTE adjustment | — | — | — | — | |||||||||||
Net interest income-FTE 2 | 1,058 | 975 | 2,073 | 1,917 | |||||||||||
Provision for credit losses 3 | 7 | 84 | 65 | 171 | |||||||||||
Net interest income-FTE - after provision for credit losses 2 | 1,051 | 891 | 2,008 | 1,746 | |||||||||||
Noninterest income before net securities gains/(losses) | 453 | 473 | 904 | 945 | |||||||||||
Net securities gains/(losses) | — | — | — | — | |||||||||||
Total noninterest income | 453 | 473 | 904 | 945 | |||||||||||
Noninterest expense before amortization | 995 | 982 | 2,003 | 2,009 | |||||||||||
Amortization | — | 1 | 1 | 1 | |||||||||||
Total noninterest expense | 995 | 983 | 2,004 | 2,010 | |||||||||||
Income-FTE - before provision for income taxes 2 | 509 | 381 | 908 | 681 | |||||||||||
Provision for income taxes | 115 | 137 | 202 | 245 | |||||||||||
Tax credit adjustment | — | — | — | — | |||||||||||
FTE adjustment | — | — | — | — | |||||||||||
Net income including income attributable to noncontrolling interest | 394 | 244 | 706 | 436 | |||||||||||
Less: Net income attributable to noncontrolling interest | — | — | — | — | |||||||||||
Net income | $394 | $244 | $706 | $436 | |||||||||||
Total revenue | $1,511 | $1,448 | $2,977 | $2,862 | |||||||||||
Total revenue-FTE 2 | 1,511 | 1,448 | 2,977 | 2,862 | |||||||||||
Selected Average Balances: | |||||||||||||||
Total LHFI | $75,450 | $73,680 | $75,564 | $73,247 | |||||||||||
Goodwill | 4,390 | 4,262 | 4,326 | 4,262 | |||||||||||
Other intangible assets excluding residential MSRs | 3 | 8 | 3 | 9 | |||||||||||
Total assets | 85,309 | 83,230 | 85,210 | 82,991 | |||||||||||
Consumer and commercial deposits | 111,555 | 109,580 | 110,432 | 108,818 | |||||||||||
Performance Ratios: | |||||||||||||||
Efficiency ratio | 65.89 | % | 67.91 | % | 67.29 | % | 70.23 | % | |||||||
Impact of FTE adjustment | — | — | — | — | |||||||||||
Efficiency ratio-FTE 2 | 65.89 | 67.91 | 67.29 | 70.23 | |||||||||||
Impact of excluding amortization and associated funding cost of intangible assets | (1.11 | ) | (1.07 | ) | (1.11 | ) | (1.11 | ) | |||||||
Tangible efficiency ratio-FTE 2, 4 | 64.78 | % | 66.84 | % | 66.18 | % | 69.12 | % | |||||||
1 | During the second quarter of 2018, certain of the Company's business banking clients were transferred from the Wholesale business segment to the Consumer business segment. For all periods prior to the second quarter of 2018, the corresponding financial results have been transferred to the Consumer business segment for comparability purposes. |
2 | 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. |
3 | 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. |
4 | 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. |
SunTrust Banks, Inc. and Subsidiaries CONSUMER BUSINESS SEGMENT, continued | |||||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||
(Dollars in millions) (Unaudited) | 2018 | 2017 | 2018 | 2017 | |||||||||||
Residential Mortgage Production Data: | |||||||||||||||
Channel mix: | |||||||||||||||
Retail | $2,295 | $2,692 | $3,995 | $4,984 | |||||||||||
Correspondent | 3,964 | 3,733 | 7,409 | 6,932 | |||||||||||
Total production | $6,259 | $6,425 | $11,404 | $11,916 | |||||||||||
Channel mix - percent: | |||||||||||||||
Retail | 37 | % | 42 | % | 35 | % | 42 | % | |||||||
Correspondent | 63 | 58 | 65 | 58 | |||||||||||
Total production | 100 | % | 100 | % | 100 | % | 100 | % | |||||||
Purchase and refinance mix: | |||||||||||||||
Refinance | $1,218 | $1,962 | $3,102 | $4,493 | |||||||||||
Purchase | 5,041 | 4,463 | 8,302 | 7,423 | |||||||||||
Total production | $6,259 | $6,425 | $11,404 | $11,916 | |||||||||||
Purchase and refinance mix - percent: | |||||||||||||||
Refinance | 19 | % | 31 | % | 27 | % | 38 | % | |||||||
Purchase | 81 | 69 | 73 | 62 | |||||||||||
Total production | 100 | % | 100 | % | 100 | % | 100 | % | |||||||
Applications | $8,311 | $8,273 | $15,327 | $16,017 | |||||||||||
Residential Mortgage Servicing Data (End of Period): | |||||||||||||||
Total unpaid principal balance ("UPB") of residential mortgages serviced | $170,486 | $165,601 | |||||||||||||
Total UPB of residential mortgages serviced for others | 140,328 | 136,115 | |||||||||||||
Net carrying value of residential MSRs | 1,959 | 1,608 | |||||||||||||
Ratio of net carrying value of residential MSRs to total UPB of residential mortgages serviced for others | 1.396 | % | 1.181 | % | |||||||||||
Assets Under Administration (End of Period): | |||||||||||||||
Trust and institutional managed assets | $43,546 | $41,572 | |||||||||||||
Retail brokerage managed assets | 16,779 | 14,826 | |||||||||||||
Total managed assets | 60,325 | 56,398 | |||||||||||||
Non-managed assets | 99,574 | 95,463 | |||||||||||||
Total assets under advisement | $159,899 | $151,861 | |||||||||||||
SunTrust Banks, Inc. and Subsidiaries WHOLESALE BUSINESS SEGMENT | |||||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||
(Dollars in millions) (Unaudited) | 2018 | 2017 1, 2 | 2018 | 2017 1, 2 | |||||||||||
Statements of Income: | |||||||||||||||
Net interest income | $534 | $493 | $1,046 | $971 | |||||||||||
FTE adjustment | 22 | 35 | 42 | 69 | |||||||||||
Net interest income-FTE 3 | 556 | 528 | 1,088 | 1,040 | |||||||||||
Provision/(benefit) for credit losses 4 | 24 | 6 | (6 | ) | 38 | ||||||||||
Net interest income-FTE - after provision/(benefit) for credit losses 3 | 532 | 522 | 1,094 | 1,002 | |||||||||||
Noninterest income before net securities gains/(losses) | 388 | 378 | 751 | 771 | |||||||||||
Net securities gains/(losses) | — | — | — | — | |||||||||||
Total noninterest income | 388 | 378 | 751 | 771 | |||||||||||
Noninterest expense before amortization | 407 | 407 | 845 | 840 | |||||||||||
Amortization | 17 | 14 | 31 | 27 | |||||||||||
Total noninterest expense | 424 | 421 | 876 | 867 | |||||||||||
Income-FTE - before provision for income taxes 3 | 496 | 479 | 969 | 906 | |||||||||||
Provision for income taxes | 65 | 107 | 128 | 195 | |||||||||||
Tax credit adjustment | 31 | 36 | 59 | 73 | |||||||||||
FTE adjustment | 22 | 35 | 42 | 69 | |||||||||||
Net income including income attributable to noncontrolling interest | 378 | 301 | 740 | 569 | |||||||||||
Less: Net income attributable to noncontrolling interest | — | — | — | — | |||||||||||
Net income | $378 | $301 | $740 | $569 | |||||||||||
Total revenue | $922 | $871 | $1,797 | $1,742 | |||||||||||
Total revenue-FTE 3 | 944 | 906 | 1,839 | 1,811 | |||||||||||
Selected Average Balances: | |||||||||||||||
Total LHFI | $68,615 | $69,365 | $67,889 | $69,469 | |||||||||||
Goodwill | 1,941 | 2,076 | 2,005 | 2,076 | |||||||||||
Other intangible assets excluding residential MSRs | 76 | 75 | 77 | 75 | |||||||||||
Total assets | 82,133 | 82,801 | 81,514 | 82,883 | |||||||||||
Consumer and commercial deposits | 47,431 | 49,381 | 48,638 | 50,070 | |||||||||||
Performance Ratios: | |||||||||||||||
Efficiency ratio | 45.98 | % | 48.38 | % | 48.76 | % | 49.76 | % | |||||||
Impact of FTE adjustment | (1.06 | ) | (1.88 | ) | (1.10 | ) | (1.89 | ) | |||||||
Efficiency ratio-FTE 3 | 44.92 | 46.50 | 47.66 | 47.87 | |||||||||||
Impact of excluding amortization and associated funding cost of intangible assets | (2.28 | ) | (2.12 | ) | (2.29 | ) | (2.05 | ) | |||||||
Tangible efficiency ratio-FTE 3, 5 | 42.64 | % | 44.38 | % | 45.37 | % | 45.82 | % | |||||||
1 | During the second quarter of 2018, certain of the Company's business banking clients were transferred from the Wholesale business segment to the Consumer business segment. For all periods prior to the second quarter of 2018, the corresponding financial results have been transferred to the Consumer business segment for comparability purposes. |
2 | During the fourth quarter of 2017, the Company sold Premium Assignment Corporation ("PAC"), its commercial lines insurance premium finance subsidiary, the results of which were previously reported within the Wholesale business segment. For all periods prior to January 1, 2018, PAC's financial results, including the gain on sale, have been transferred to Corporate Other for enhanced comparability of the Wholesale business segment excluding PAC. |
3 | 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. |
4 | 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 commitment reserve balances. |
5 | 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. |
SunTrust Banks, Inc. and Subsidiaries TOTAL CORPORATE OTHER (including Reconciling Items) | |||||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||
(Dollars in millions) (Unaudited) | 2018 | 2017 1 | 2018 | 2017 1 | |||||||||||
Statements of Income: | |||||||||||||||
Net interest income/(expense) 2 | ($104 | ) | ($65 | ) | ($191 | ) | ($119 | ) | |||||||
FTE adjustment | — | 1 | 1 | 1 | |||||||||||
Net interest income/(expense)-FTE 3 | (104 | ) | (64 | ) | (190 | ) | (118 | ) | |||||||
Provision/(benefit) for credit losses 4 | 1 | — | 1 | — | |||||||||||
Net interest income/(expense)-FTE - after provision/(benefit) for credit losses 3 | (105 | ) | (64 | ) | (191 | ) | (118 | ) | |||||||
Noninterest income/(expense) before net securities gains | (12 | ) | (25 | ) | (30 | ) | (43 | ) | |||||||
Net securities gains | — | 1 | 1 | 1 | |||||||||||
Total noninterest income/(expense) | (12 | ) | (24 | ) | (29 | ) | (42 | ) | |||||||
Noninterest expense/(income) before amortization | (29 | ) | (16 | ) | (73 | ) | (24 | ) | |||||||
Amortization | — | — | — | — | |||||||||||
Total noninterest expense/(income) | (29 | ) | (16 | ) | (73 | ) | (24 | ) | |||||||
Income/(loss)-FTE - before benefit for income taxes 3 | (88 | ) | (72 | ) | (147 | ) | (136 | ) | |||||||
Benefit for income taxes | (9 | ) | (22 | ) | (12 | ) | (59 | ) | |||||||
Tax credit adjustment | (31 | ) | (36 | ) | (59 | ) | (73 | ) | |||||||
FTE adjustment | — | 1 | 1 | 1 | |||||||||||
Net income/(loss) including income attributable to noncontrolling interest | (48 | ) | (15 | ) | (77 | ) | (5 | ) | |||||||
Less: Net income attributable to noncontrolling interest | 2 | 2 | 4 | 5 | |||||||||||
Net income/(loss) | ($50 | ) | ($17 | ) | ($81 | ) | ($10 | ) | |||||||
Total revenue | ($116 | ) | ($89 | ) | ($220 | ) | ($161 | ) | |||||||
Total revenue-FTE 3 | (116 | ) | (88 | ) | (219 | ) | (160 | ) | |||||||
Selected Average Balances: | |||||||||||||||
Total LHFI | $91 | $1,395 | $89 | $1,342 | |||||||||||
Securities available for sale | 31,584 | 30,387 | 31,524 | 30,309 | |||||||||||
Goodwill | — | — | — | — | |||||||||||
Other intangible assets excluding residential MSRs | — | — | — | — | |||||||||||
Total assets | 37,106 | 38,463 | 37,617 | 38,500 | |||||||||||
Consumer and commercial deposits | (29 | ) | 175 | (7 | ) | 118 | |||||||||
Other Information (End of Period): | |||||||||||||||
Duration of securities available for sale portfolio (in years) | 4.7 | 4.5 | |||||||||||||
Net interest income interest rate sensitivity: | |||||||||||||||
% Change in net interest income under: | |||||||||||||||
Instantaneous 200 basis point increase in rates over next 12 months | 2.8 | % | 3.7 | % | |||||||||||
Instantaneous 100 basis point increase in rates over next 12 months | 1.5 | % | 2.1 | % | |||||||||||
Instantaneous 50 basis point decrease in rates over next 12 months | (1.0 | )% | (1.4 | )% | |||||||||||
1 | During the fourth quarter of 2017, the Company sold Premium Assignment Corporation ("PAC"), its commercial lines insurance premium finance subsidiary, the results of which were previously reported within the Wholesale business segment. For all periods prior to January 1, 2018, PAC's financial results, including the gain on sale, have been transferred to Corporate Other for enhanced comparability of the Wholesale business segment excluding PAC. |
2 | Net interest income/(expense) is driven by matched funds transfer pricing applied for segment reporting and actual Net interest income. |
3 | Net interest income/(expense)-FTE, Income/(loss)-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. |
4 | 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. |