Date of Report (Date of earliest event reported): |
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||
(Address of principal executive offices) | (Zip Code) |
Registrant's telephone number, including area code: |
Not Applicable | ||||
(Former name or former address, if changed since last report) |
Title of Each Class | Trading Symbol(s) | Name of Exchange on Which Registered | ||
Exhibit Number | Description | |
News release dated October 17, 2019 (furnished with the Commission as a part of this Form 8-K). | ||
Presentation slides dated October 17, 2019 (furnished with the Commission as a part of this Form 8-K). | ||
101 | Interactive Data File in Inline XBRL format (embedded within the Inline XBRL document of this Form 8-K). | |
104 | Cover Page Interactive Data File in Inline XBRL format (included in Exhibit 101 to this Form 8-K). |
SUNTRUST BANKS, INC. | |||
(Registrant) | |||
Date: | October 17, 2019 | By: /s/ R. Ryan Richards | |
R. Ryan Richards, Senior Vice President and Controller |
Contact: | |||
Investors | Media | ||
Ankur Vyas | Mike McCoy | ||
(404) 827-6714 | (404) 588-7230 |
• | Net income available to common shareholders was $597 million, or $1.34 per average common diluted share, compared to $1.48 for the prior quarter and $1.56 for the third quarter of 2018. |
◦ | Merger-related costs were $22 million in the third quarter of 2019, compared to $8 million in the second quarter of 2019. In addition to these costs, there were $11 million and $6 million of other merger-related expenses in the current and prior quarter, respectively, the majority of which were recorded in ‘other noninterest expense’. Combined, the current quarter results included $33 million, or $(0.06) per share, of merger-related impacts. |
• | Total revenue was down 8% sequentially and up 3% year-over-year. Excluding the $5 million and $205 million insurance settlement benefits related to financial crisis-era related claims recognized in the current and prior quarters, respectively, total revenue was stable sequentially and increased 2% year-over-year driven by higher noninterest income. |
• | Net interest margin was 3.06% in the current quarter, reflecting declines of 10 and 21 basis points sequentially and year-over-year, respectively, driven primarily by declines in short-term and long-term interest rates (which negatively impacted earning asset yields). The year-over-year decline was also impacted by higher funding costs. |
• | Provision for credit losses increased $5 million sequentially and $71 million year-over-year. The year-over-year increase reflects both higher net charge-offs in the current quarter and a release of loan loss reserves in the prior year quarter. |
• | Noninterest expense decreased $164 million sequentially and increased $90 million year-over-year. Excluding the $205 million charitable contribution to the SunTrust Foundation in the prior quarter and the merger-related impacts of $33 million in the current quarter and $14 million in the prior quarter, noninterest expense increased $22 million sequentially and $57 million year-over-year due primarily to higher employee compensation and benefits. |
• | The efficiency and tangible efficiency ratios for the current quarter were 62.1% and 61.2%, respectively. Excluding the charitable contribution in the prior quarter together with the insurance settlements and merger-related impacts in the current and prior quarter, the adjusted tangible efficiency ratio was 59.9% for the current quarter, compared to 59.0% for the prior quarter and 58.9% for the prior year. |
• | Average performing loans held for investment (“LHFI”) was up 1% compared to the prior quarter and up 8% year-over-year, driven primarily by growth in CRE, consumer direct, consumer indirect, and residential mortgages, offset partially by declines in commercial construction loans and residential home equity products. The year-over-year increase was also positively impacted by 8% growth in C&I loans. |
• | Average consumer and commercial deposits increased 2% compared to both the prior quarter and the prior year. Sequential growth was driven primarily by increases in NOW accounts, money market accounts, and time deposits. Year-over-year growth was driven by increases in NOW accounts and time deposits, offset partially by declines in demand deposits and money market accounts. |
• | Estimated capital ratios continue to be well above regulatory requirements. The Common Equity Tier 1 (“CET1”) ratio was estimated to be 9.3% as of September 30, 2019, slightly higher relative to the prior quarter. |
• | Book value per common share was $54.87 and tangible book value per common share was $40.58, both up 3% from June 30, 2019, driven primarily by growth in retained earnings and a decrease in accumulated other comprehensive loss. |
• | Nonperforming loans (“NPLs”) increased $64 million from the prior quarter and represented 0.38% of period-end LHFI at September 30, 2019, compared to 0.34% of period-end LHFI at June 30, 2019. |
• | Net charge-offs for the current quarter were $112 million, or 0.28% of total average LHFI on an annualized basis, compared to 0.22% during the prior quarter and 0.24% during the third quarter of 2018. |
• | At September 30, 2019, the allowance for loan and lease losses (“ALLL”) to period-end LHFI ratio was 1.07%, stable compared to the prior quarter and down 3 basis points relative to the prior year quarter. |
• | Provision for credit losses increased $5 million sequentially and $71 million year-over-year. The sequential increase was driven primarily by higher net charge-offs. The year-over-year increase reflects both higher net charge-offs in the current quarter and a release of loan loss reserves in the prior year quarter. |
Income Statement (Dollars in millions, except per share data) | 3Q 2019 | 2Q 2019 | 1Q 2019 | 4Q 2018 | 3Q 2018 | ||||||||||||||
Net interest income | $1,510 | $1,535 | $1,544 | $1,547 | $1,512 | ||||||||||||||
Net interest income-FTE 1 | 1,532 | 1,557 | 1,567 | 1,570 | 1,534 | ||||||||||||||
Net interest margin | 3.01 | % | 3.12 | % | 3.22 | % | 3.22 | % | 3.22 | % | |||||||||
Net interest margin-FTE 1 | 3.06 | 3.16 | 3.27 | 3.27 | 3.27 | ||||||||||||||
Noninterest income | $843 | $1,025 | $784 | $818 | $782 | ||||||||||||||
Total revenue | 2,353 | 2,560 | 2,328 | 2,365 | 2,294 | ||||||||||||||
Total revenue-FTE 1 | 2,375 | 2,582 | 2,351 | 2,388 | 2,316 | ||||||||||||||
Noninterest expense | 1,474 | 1,638 | 1,489 | 1,482 | 1,384 | ||||||||||||||
Provision for credit losses | 132 | 127 | 153 | 87 | 61 | ||||||||||||||
Net income available to common shareholders | 597 | 663 | 554 | 632 | 726 | ||||||||||||||
Earnings per average common diluted share | 1.34 | 1.48 | 1.24 | 1.40 | 1.56 | ||||||||||||||
Balance Sheet (Dollars in billions) | |||||||||||||||||||
Average LHFI | $157.6 | $156.2 | $154.3 | $149.7 | $146.0 | ||||||||||||||
Average consumer and commercial deposits | 162.5 | 159.9 | 159.9 | 161.6 | 159.3 | ||||||||||||||
Capital | |||||||||||||||||||
Basel III capital ratios at period end 2 : | |||||||||||||||||||
Tier 1 capital | 10.38 | % | 10.24 | % | 10.15 | % | 10.30 | % | 10.72 | % | |||||||||
Common Equity Tier 1 ("CET1") | 9.33 | 9.19 | 9.09 | 9.21 | 9.60 | ||||||||||||||
Total average shareholders’ equity to total average assets | 11.67 | 11.42 | 11.25 | 11.21 | 11.71 | ||||||||||||||
Asset Quality | |||||||||||||||||||
Net charge-offs to total average LHFI (annualized) | 0.28 | % | 0.22 | % | 0.26 | % | 0.26 | % | 0.24 | % | |||||||||
ALLL to period-end LHFI 3 | 1.07 | 1.07 | 1.06 | 1.06 | 1.10 | ||||||||||||||
NPLs to period-end LHFI | 0.38 | 0.34 | 0.34 | 0.35 | 0.47 |
• | 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 results from merger and acquisition activity and amortization expense (the level of which may vary from company to company), they allow 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 unusual or infrequent items from the calculation of Tangible efficiency ratio-FTE. These items include merger-related impacts recognized in the first, second, and third quarters of 2019, insurance settlement benefits related to financial crisis-era related claims recognized in the second and third quarters of 2019, the charitable contribution to the SunTrust Foundation recognized in the second quarter of 2019, and the legacy National Commerce Financial Corporation (“NCF”) pension plan settlement charge recognized in the fourth quarter of 2018. See slide 20 in the earnings presentation (Exhibit 99.2) as well as Appendix A in this news release for more details on these items. The Company believes this measure (Adjusted tangible efficiency ratio-FTE) 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. This measure is 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 September 30 | % | Nine Months Ended September 30 | % | |||||||||||||||||
2019 | 2018 | Change | 2019 | 2018 | Change | ||||||||||||||||
EARNINGS & DIVIDENDS | |||||||||||||||||||||
Net income | $623 | $752 | (17 | )% | $1,891 | $2,117 | (11 | )% | |||||||||||||
Net income available to common shareholders | 597 | 726 | (18 | ) | 1,814 | 2,036 | (11 | ) | |||||||||||||
Total revenue | 2,353 | 2,294 | 3 | 7,242 | 6,848 | 6 | |||||||||||||||
Total revenue-FTE 1 | 2,375 | 2,316 | 3 | 7,308 | 6,913 | 6 | |||||||||||||||
Net income per average common share: | |||||||||||||||||||||
Diluted | $1.34 | $1.56 | (14 | )% | $4.06 | $4.34 | (6 | )% | |||||||||||||
Basic | 1.35 | 1.58 | (15 | ) | 4.09 | 4.38 | (7 | ) | |||||||||||||
Dividends declared per common share | 0.56 | 0.50 | 12 | 1.56 | 1.30 | 20 | |||||||||||||||
CONDENSED BALANCE SHEETS | |||||||||||||||||||||
Selected Average Balances: | |||||||||||||||||||||
Total assets | $224,747 | $207,395 | 8 | % | $221,019 | $205,370 | 8 | % | |||||||||||||
Earning assets | 198,878 | 186,344 | 7 | 196,902 | 184,607 | 7 | |||||||||||||||
Loans held for investment ("LHFI") | 157,612 | 145,995 | 8 | 156,044 | 144,368 | 8 | |||||||||||||||
Intangible assets including residential mortgage servicing rights ("MSRs") | 8,044 | 8,396 | (4 | ) | 8,235 | 8,332 | (1 | ) | |||||||||||||
Residential MSRs | 1,632 | 1,987 | (18 | ) | 1,824 | 1,922 | (5 | ) | |||||||||||||
Consumer and commercial deposits | 162,533 | 159,348 | 2 | 160,779 | 159,159 | 1 | |||||||||||||||
Total shareholders’ equity | 26,226 | 24,275 | 8 | 25,307 | 24,324 | 4 | |||||||||||||||
Preferred stock | 2,025 | 2,025 | — | 2,025 | 2,145 | (6 | ) | ||||||||||||||
Period End Balances: | |||||||||||||||||||||
Total assets | $227,368 | $211,276 | 8 | % | |||||||||||||||||
Earning assets | 198,510 | 188,141 | 6 | ||||||||||||||||||
LHFI | 158,455 | 147,215 | 8 | ||||||||||||||||||
Allowance for loan and lease losses ("ALLL") | 1,699 | 1,623 | 5 | ||||||||||||||||||
Consumer and commercial deposits | 166,126 | 159,332 | 4 | ||||||||||||||||||
Total shareholders’ equity | 26,489 | 24,139 | 10 | ||||||||||||||||||
FINANCIAL RATIOS & OTHER DATA | |||||||||||||||||||||
Return on average total assets | 1.10 | % | 1.44 | % | (24 | )% | 1.14 | % | 1.38 | % | (17 | )% | |||||||||
Return on average common shareholders’ equity | 9.83 | 13.01 | (24 | ) | 10.46 | 12.33 | (15 | ) | |||||||||||||
Return on average tangible common shareholders’ equity 1 | 13.23 | 18.06 | (27 | ) | 14.27 | 17.14 | (17 | ) | |||||||||||||
Net interest margin | 3.01 | 3.22 | (7 | ) | 3.12 | 3.22 | (3 | ) | |||||||||||||
Net interest margin-FTE 1 | 3.06 | 3.27 | (6 | ) | 3.16 | 3.26 | (3 | ) | |||||||||||||
Efficiency ratio | 62.63 | 60.34 | 4 | 63.55 | 61.20 | 4 | |||||||||||||||
Efficiency ratio-FTE 1 | 62.06 | 59.76 | 4 | 62.97 | 60.62 | 4 | |||||||||||||||
Tangible efficiency ratio-FTE 1 | 61.17 | 58.94 | 4 | 62.23 | 59.89 | 4 | |||||||||||||||
Adjusted tangible efficiency ratio-FTE 1 | 59.91 | 58.94 | 2 | 59.89 | 59.89 | — | |||||||||||||||
Effective tax rate | 16 | 11 | 45 | 15 | 16 | (6 | ) | ||||||||||||||
Basel III capital ratios at period end 2: | |||||||||||||||||||||
Common Equity Tier 1 ("CET1") | 9.33 | % | 9.60 | % | (3 | )% | |||||||||||||||
Tier 1 capital | 10.38 | 10.72 | (3 | ) | |||||||||||||||||
Total capital | 12.06 | 12.47 | (3 | ) | |||||||||||||||||
Leverage | 9.28 | 9.66 | (4 | ) | |||||||||||||||||
Total average shareholders’ equity to total average assets | 11.67 | % | 11.71 | % | — | % | 11.45 | 11.84 | (3 | ) | |||||||||||
Tangible equity to tangible assets 1 | 9.19 | 8.76 | 5 | ||||||||||||||||||
Tangible common equity to tangible assets 1 | 8.23 | 7.72 | 7 | ||||||||||||||||||
Book value per common share | $54.87 | $48.00 | 14 | ||||||||||||||||||
Tangible book value per common share 1 | 40.58 | 34.51 | 18 | ||||||||||||||||||
Market capitalization | 30,549 | 30,632 | — | ||||||||||||||||||
Average common shares outstanding: | |||||||||||||||||||||
Diluted | 446,962 | 464,164 | (4 | )% | 446,673 | 469,006 | (5 | )% | |||||||||||||
Basic | 443,960 | 460,252 | (4 | ) | 443,779 | 464,804 | (5 | ) | |||||||||||||
Full-time equivalent employees | 22,709 | 22,839 | (1 | ) | |||||||||||||||||
Number of ATMs | 2,036 | 2,053 | (1 | ) | |||||||||||||||||
Full service banking offices | 1,149 | 1,217 | (6 | ) | |||||||||||||||||
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. Capital ratios at September 30, 2019 are estimated as of the date of this release. |
Three Months Ended | |||||||||||||||||||
September 30 | June 30 | March 31 | December 31 | September 30 | |||||||||||||||
(Dollars in millions and shares in thousands, except per share data) (Unaudited) | 2019 | 2019 | 2019 | 2018 | 2018 | ||||||||||||||
EARNINGS & DIVIDENDS | |||||||||||||||||||
Net income | $623 | $688 | $580 | $658 | $752 | ||||||||||||||
Net income available to common shareholders | 597 | 663 | 554 | 632 | 726 | ||||||||||||||
Total revenue | 2,353 | 2,560 | 2,328 | 2,365 | 2,294 | ||||||||||||||
Total revenue-FTE 1 | 2,375 | 2,582 | 2,351 | 2,388 | 2,316 | ||||||||||||||
Net income per average common share: | |||||||||||||||||||
Diluted | $1.34 | $1.48 | $1.24 | $1.40 | $1.56 | ||||||||||||||
Basic | 1.35 | 1.49 | 1.25 | 1.41 | 1.58 | ||||||||||||||
Dividends declared per common share | 0.56 | 0.50 | 0.50 | 0.50 | 0.50 | ||||||||||||||
CONDENSED BALANCE SHEETS | |||||||||||||||||||
Selected Average Balances: | |||||||||||||||||||
Total assets | $224,747 | $220,827 | $217,403 | $212,934 | $207,395 | ||||||||||||||
Earning assets | 198,878 | 197,395 | 194,385 | 190,742 | 186,344 | ||||||||||||||
LHFI | 157,612 | 156,224 | 154,258 | 149,708 | 145,995 | ||||||||||||||
Intangible assets including residential MSRs | 8,044 | 8,271 | 8,394 | 8,491 | 8,396 | ||||||||||||||
Residential MSRs | 1,632 | 1,860 | 1,984 | 2,083 | 1,987 | ||||||||||||||
Consumer and commercial deposits | 162,533 | 159,854 | 159,921 | 161,573 | 159,348 | ||||||||||||||
Total shareholders’ equity | 26,226 | 25,209 | 24,466 | 23,873 | 24,275 | ||||||||||||||
Preferred stock | 2,025 | 2,025 | 2,025 | 2,025 | 2,025 | ||||||||||||||
Period End Balances: | |||||||||||||||||||
Total assets | $227,368 | $222,288 | $220,425 | $215,543 | $211,276 | ||||||||||||||
Earning assets | 198,510 | 198,065 | 196,316 | 192,497 | 188,141 | ||||||||||||||
LHFI | 158,455 | 156,589 | 155,233 | 151,839 | 147,215 | ||||||||||||||
ALLL | 1,699 | 1,681 | 1,643 | 1,615 | 1,623 | ||||||||||||||
Consumer and commercial deposits | 166,126 | 159,719 | 161,092 | 161,544 | 159,332 | ||||||||||||||
Total shareholders’ equity | 26,489 | 25,862 | 24,823 | 24,280 | 24,139 | ||||||||||||||
FINANCIAL RATIOS & OTHER DATA | |||||||||||||||||||
Return on average total assets | 1.10 | % | 1.25 | % | 1.08 | % | 1.23 | % | 1.44 | % | |||||||||
Return on average common shareholders’ equity | 9.83 | 11.51 | 10.06 | 11.54 | 13.01 | ||||||||||||||
Return on average tangible common shareholders’ equity 1 | 13.23 | 15.73 | 13.91 | 16.13 | 18.06 | ||||||||||||||
Net interest margin | 3.01 | 3.12 | 3.22 | 3.22 | 3.22 | ||||||||||||||
Net interest margin-FTE 1 | 3.06 | 3.16 | 3.27 | 3.27 | 3.27 | ||||||||||||||
Efficiency ratio | 62.63 | 64.00 | 63.97 | 62.66 | 60.34 | ||||||||||||||
Efficiency ratio-FTE 1 | 62.06 | 63.45 | 63.35 | 62.06 | 59.76 | ||||||||||||||
Tangible efficiency ratio-FTE 1 | 61.17 | 62.77 | 62.70 | 61.13 | 58.94 | ||||||||||||||
Adjusted tangible efficiency ratio-FTE 1 | 59.91 | 58.99 | 60.78 | 58.63 | 58.94 | ||||||||||||||
Effective tax rate | 16 | 13 | 15 | 17 | 11 | ||||||||||||||
Basel III capital ratios at period end 2: | |||||||||||||||||||
CET1 | 9.33 | % | 9.19 | % | 9.09 | % | 9.21 | % | 9.60 | % | |||||||||
Tier 1 capital | 10.38 | 10.24 | 10.15 | 10.30 | 10.72 | ||||||||||||||
Total capital | 12.06 | 11.93 | 11.85 | 12.02 | 12.47 | ||||||||||||||
Leverage | 9.28 | 9.25 | 9.15 | 9.26 | 9.66 | ||||||||||||||
Total average shareholders’ equity to total average assets | 11.67 | 11.42 | 11.25 | 11.21 | 11.71 | ||||||||||||||
Tangible equity to tangible assets 1 | 9.19 | 9.11 | 8.71 | 8.65 | 8.76 | ||||||||||||||
Tangible common equity to tangible assets 1 | 8.23 | 8.13 | 7.71 | 7.63 | 7.72 | ||||||||||||||
Book value per common share | $54.87 | $53.47 | $51.15 | $49.57 | $48.00 | ||||||||||||||
Tangible book value per common share 1 | 40.58 | 39.54 | 37.22 | 35.73 | 34.51 | ||||||||||||||
Market capitalization | 30,549 | 27,896 | 26,290 | 22,541 | 30,632 | ||||||||||||||
Average common shares outstanding: | |||||||||||||||||||
Diluted | 446,962 | 446,391 | 446,662 | 452,957 | 464,164 | ||||||||||||||
Basic | 443,960 | 443,806 | 443,566 | 449,404 | 460,252 | ||||||||||||||
Full-time equivalent employees | 22,709 | 22,726 | 22,626 | 22,899 | 22,839 | ||||||||||||||
Number of ATMs | 2,036 | 2,024 | 2,030 | 2,082 | 2,053 | ||||||||||||||
Full service banking offices | 1,149 | 1,149 | 1,152 | 1,218 | 1,217 | ||||||||||||||
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. Capital ratios at September 30, 2019 are estimated as of the date of this release. |
Three Months Ended | Increase/(Decrease) | Nine Months Ended | Increase/(Decrease) | ||||||||||||||||||||||||||
(Dollars in millions and shares in thousands, except per share data) (Unaudited) | September 30 | September 30 | |||||||||||||||||||||||||||
2019 | 2018 | Amount | % 3 | 2019 | 2018 | Amount | % 3 | ||||||||||||||||||||||
Interest income | $2,005 | $1,834 | $171 | 9 | % | $6,013 | $5,261 | $752 | 14 | % | |||||||||||||||||||
Interest expense | 495 | 322 | 173 | 54 | 1,424 | 821 | 603 | 73 | |||||||||||||||||||||
NET INTEREST INCOME | 1,510 | 1,512 | (2 | ) | — | 4,589 | 4,440 | 149 | 3 | ||||||||||||||||||||
Provision for credit losses | 132 | 61 | 71 | NM | 412 | 121 | 291 | NM | |||||||||||||||||||||
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES | 1,378 | 1,451 | (73 | ) | (5 | ) | 4,177 | 4,319 | (142 | ) | (3 | ) | |||||||||||||||||
NONINTEREST INCOME | |||||||||||||||||||||||||||||
Service charges on deposit accounts | 141 | 144 | (3 | ) | (2 | ) | 417 | 433 | (16 | ) | (4 | ) | |||||||||||||||||
Other charges and fees | 90 | 89 | 1 | 1 | 265 | 264 | 1 | — | |||||||||||||||||||||
Card fees | 83 | 75 | 8 | 11 | 247 | 241 | 6 | 2 | |||||||||||||||||||||
Investment banking income | 159 | 150 | 9 | 6 | 431 | 453 | (22 | ) | (5 | ) | |||||||||||||||||||
Trading income | 29 | 42 | (13 | ) | (31 | ) | 144 | 137 | 7 | 5 | |||||||||||||||||||
Mortgage-related income 1 | 106 | 83 | 23 | 28 | 294 | 256 | 38 | 15 | |||||||||||||||||||||
Trust and investment management income | 78 | 80 | (2 | ) | (3 | ) | 222 | 230 | (8 | ) | (3 | ) | |||||||||||||||||
Retail investment services | 76 | 74 | 2 | 3 | 220 | 219 | 1 | — | |||||||||||||||||||||
Insurance settlement | 5 | — | 5 | NM | 210 | — | 210 | NM | |||||||||||||||||||||
Commercial real estate-related income | 32 | 24 | 8 | 33 | 106 | 66 | 40 | 61 | |||||||||||||||||||||
Net securities gains/(losses) | 4 | — | 4 | NM | (38 | ) | 1 | (39 | ) | NM | |||||||||||||||||||
Other noninterest income | 40 | 21 | 19 | 90 | 135 | 108 | 27 | 25 | |||||||||||||||||||||
Total noninterest income | 843 | 782 | 61 | 8 | 2,653 | 2,408 | 245 | 10 | |||||||||||||||||||||
NONINTEREST EXPENSE | |||||||||||||||||||||||||||||
Employee compensation and benefits | 841 | 795 | 46 | 6 | 2,493 | 2,451 | 42 | 2 | |||||||||||||||||||||
Outside processing and software | 241 | 234 | 7 | 3 | 720 | 667 | 53 | 8 | |||||||||||||||||||||
Net occupancy expense | 102 | 86 | 16 | 19 | 305 | 270 | 35 | 13 | |||||||||||||||||||||
Charitable contribution to SunTrust Foundation | — | — | — | — | 205 | — | 205 | NM | |||||||||||||||||||||
Marketing and customer development | 44 | 45 | (1 | ) | (2 | ) | 131 | 127 | 4 | 3 | |||||||||||||||||||
Equipment expense | 36 | 40 | (4 | ) | (10 | ) | 114 | 124 | (10 | ) | (8 | ) | |||||||||||||||||
Merger-related costs | 22 | — | 22 | NM | 75 | — | 75 | NM | |||||||||||||||||||||
Operating losses | 23 | 18 | 5 | 28 | 60 | 40 | 20 | 50 | |||||||||||||||||||||
Amortization | 21 | 19 | 2 | 11 | 54 | 51 | 3 | 6 | |||||||||||||||||||||
Regulatory assessments | 17 | 39 | (22 | ) | (56 | ) | 53 | 118 | (65 | ) | (55 | ) | |||||||||||||||||
Other noninterest expense | 127 | 108 | 19 | 18 | 392 | 343 | 49 | 14 | |||||||||||||||||||||
Total noninterest expense | 1,474 | 1,384 | 90 | 7 | 4,602 | 4,191 | 411 | 10 | |||||||||||||||||||||
INCOME BEFORE PROVISION FOR INCOME TAXES | 747 | 849 | (102 | ) | (12 | ) | 2,228 | 2,536 | (308 | ) | (12 | ) | |||||||||||||||||
Provision for income taxes | 122 | 95 | 27 | 28 | 330 | 412 | (82 | ) | (20 | ) | |||||||||||||||||||
NET INCOME INCLUDING INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST | 625 | 754 | (129 | ) | (17 | ) | 1,898 | 2,124 | (226 | ) | (11 | ) | |||||||||||||||||
Less: Net income attributable to noncontrolling interest | 2 | 2 | — | — | 7 | 7 | — | — | |||||||||||||||||||||
NET INCOME | $623 | $752 | ($129 | ) | (17 | )% | $1,891 | $2,117 | ($226 | ) | (11 | )% | |||||||||||||||||
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS | $597 | $726 | ($129 | ) | (18 | )% | $1,814 | $2,036 | ($222 | ) | (11 | )% | |||||||||||||||||
Net interest income-FTE 2 | 1,532 | 1,534 | (2 | ) | — | 4,655 | 4,505 | 150 | 3 | ||||||||||||||||||||
Total revenue | 2,353 | 2,294 | 59 | 3 | 7,242 | 6,848 | 394 | 6 | |||||||||||||||||||||
Total revenue-FTE 2 | 2,375 | 2,316 | 59 | 3 | 7,308 | 6,913 | 395 | 6 | |||||||||||||||||||||
Net income per average common share: | |||||||||||||||||||||||||||||
Diluted | 1.34 | 1.56 | (0.22 | ) | (14 | ) | 4.06 | 4.34 | (0.28 | ) | (6 | ) | |||||||||||||||||
Basic | 1.35 | 1.58 | (0.23 | ) | (15 | ) | 4.09 | 4.38 | (0.29 | ) | (7 | ) | |||||||||||||||||
Dividends declared per common share | 0.56 | 0.50 | 0.06 | 12 | 1.56 | 1.30 | 0.26 | 20 | |||||||||||||||||||||
Average common shares outstanding: | |||||||||||||||||||||||||||||
Diluted | 446,962 | 464,164 | (17,202 | ) | (4 | ) | 446,673 | 469,006 | (22,333 | ) | (5 | ) | |||||||||||||||||
Basic | 443,960 | 460,252 | (16,292 | ) | (4 | ) | 443,779 | 464,804 | (21,025 | ) | (5 | ) | |||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||||||||||||
(Dollars in millions and shares in thousands, except per share data) (Unaudited) | September 30 | June 30 | (Decrease)/Increase | March 31 | December 31 | September 30 | ||||||||||||||||||||
2019 | 2019 | Amount | % 3 | 2019 | 2018 | 2018 | ||||||||||||||||||||
Interest income | $2,005 | $2,021 | ($16 | ) | (1 | )% | $1,987 | $1,944 | $1,834 | |||||||||||||||||
Interest expense | 495 | 486 | 9 | 2 | 443 | 397 | 322 | |||||||||||||||||||
NET INTEREST INCOME | 1,510 | 1,535 | (25 | ) | (2 | ) | 1,544 | 1,547 | 1,512 | |||||||||||||||||
Provision for credit losses | 132 | 127 | 5 | 4 | 153 | 87 | 61 | |||||||||||||||||||
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES | 1,378 | 1,408 | (30 | ) | (2 | ) | 1,391 | 1,460 | 1,451 | |||||||||||||||||
NONINTEREST INCOME | ||||||||||||||||||||||||||
Service charges on deposit accounts | 141 | 139 | 2 | 1 | 137 | 146 | 144 | |||||||||||||||||||
Other charges and fees | 90 | 88 | 2 | 2 | 87 | 92 | 89 | |||||||||||||||||||
Card fees | 83 | 82 | 1 | 1 | 82 | 83 | 75 | |||||||||||||||||||
Investment banking income | 159 | 142 | 17 | 12 | 130 | 146 | 150 | |||||||||||||||||||
Trading income | 29 | 55 | (26 | ) | (47 | ) | 60 | 24 | 42 | |||||||||||||||||
Mortgage-related income 1 | 106 | 86 | 20 | 23 | 100 | 85 | 83 | |||||||||||||||||||
Trust and investment management income | 78 | 73 | 5 | 7 | 71 | 74 | 80 | |||||||||||||||||||
Retail investment services | 76 | 75 | 1 | 1 | 69 | 74 | 74 | |||||||||||||||||||
Insurance settlement | 5 | 205 | (200 | ) | (98 | ) | — | — | — | |||||||||||||||||
Commercial real estate-related income | 32 | 50 | (18 | ) | (36 | ) | 24 | 68 | 24 | |||||||||||||||||
Net securities gains/(losses) | 4 | (42 | ) | 46 | NM | — | — | — | ||||||||||||||||||
Other noninterest income | 40 | 72 | (32 | ) | (44 | ) | 24 | 26 | 21 | |||||||||||||||||
Total noninterest income | 843 | 1,025 | (182 | ) | (18 | ) | 784 | 818 | 782 | |||||||||||||||||
NONINTEREST EXPENSE | ||||||||||||||||||||||||||
Employee compensation and benefits | 841 | 828 | 13 | 2 | 824 | 857 | 795 | |||||||||||||||||||
Outside processing and software | 241 | 241 | — | — | 238 | 242 | 234 | |||||||||||||||||||
Net occupancy expense | 102 | 102 | — | — | 102 | 102 | 86 | |||||||||||||||||||
Charitable contribution to SunTrust Foundation | — | 205 | (205 | ) | (100 | ) | — | — | — | |||||||||||||||||
Marketing and customer development | 44 | 46 | (2 | ) | (4 | ) | 41 | 49 | 45 | |||||||||||||||||
Equipment expense | 36 | 36 | — | — | 42 | 42 | 40 | |||||||||||||||||||
Merger-related costs | 22 | 8 | 14 | NM | 45 | — | — | |||||||||||||||||||
Operating losses | 23 | 14 | 9 | 64 | 22 | 39 | 18 | |||||||||||||||||||
Amortization | 21 | 17 | 4 | 24 | 15 | 22 | 19 | |||||||||||||||||||
Regulatory assessments | 17 | 17 | — | — | 19 | 7 | 39 | |||||||||||||||||||
Other noninterest expense | 127 | 124 | 3 | 2 | 141 | 122 | 108 | |||||||||||||||||||
Total noninterest expense | 1,474 | 1,638 | (164 | ) | (10 | ) | 1,489 | 1,482 | 1,384 | |||||||||||||||||
INCOME BEFORE PROVISION FOR INCOME TAXES | 747 | 795 | (48 | ) | (6 | ) | 686 | 796 | 849 | |||||||||||||||||
Provision for income taxes | 122 | 105 | 17 | 16 | 104 | 136 | 95 | |||||||||||||||||||
NET INCOME INCLUDING INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST | 625 | 690 | (65 | ) | (9 | ) | 582 | 660 | 754 | |||||||||||||||||
Less: Net income attributable to noncontrolling interest | 2 | 2 | — | — | 2 | 2 | 2 | |||||||||||||||||||
NET INCOME | $623 | $688 | ($65 | ) | (9 | )% | $580 | $658 | $752 | |||||||||||||||||
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS | $597 | $663 | ($66 | ) | (10 | )% | $554 | $632 | $726 | |||||||||||||||||
Net interest income-FTE 2 | 1,532 | 1,557 | (25 | ) | (2 | ) | 1,567 | 1,570 | 1,534 | |||||||||||||||||
Total revenue | 2,353 | 2,560 | (207 | ) | (8 | ) | 2,328 | 2,365 | 2,294 | |||||||||||||||||
Total revenue-FTE 2 | 2,375 | 2,582 | (207 | ) | (8 | ) | 2,351 | 2,388 | 2,316 | |||||||||||||||||
Net income per average common share: | ||||||||||||||||||||||||||
Diluted | 1.34 | 1.48 | (0.14 | ) | (9 | ) | 1.24 | 1.40 | 1.56 | |||||||||||||||||
Basic | 1.35 | 1.49 | (0.14 | ) | (9 | ) | 1.25 | 1.41 | 1.58 | |||||||||||||||||
Dividends declared per common share | 0.56 | 0.50 | 0.06 | 12 | 0.50 | 0.50 | 0.50 | |||||||||||||||||||
Average common shares outstanding: | ||||||||||||||||||||||||||
Diluted | 446,962 | 446,391 | 571 | — | 446,662 | 452,957 | 464,164 | |||||||||||||||||||
Basic | 443,960 | 443,806 | 154 | — | 443,566 | 449,404 | 460,252 | |||||||||||||||||||
September 30 | Increase/(Decrease) | |||||||||||||
(Dollars in millions and shares in thousands, except per share data) (Unaudited) | 2019 | 2018 | Amount | % | ||||||||||
ASSETS | ||||||||||||||
Cash and due from banks | $7,844 | $6,206 | $1,638 | 26 | % | |||||||||
Federal funds sold and securities borrowed or purchased under agreements to resell | 1,314 | 1,374 | (60 | ) | (4 | ) | ||||||||
Interest-bearing deposits in other banks | 26 | 25 | 1 | 4 | ||||||||||
Trading assets and derivative instruments | 7,104 | 5,676 | 1,428 | 25 | ||||||||||
Securities available for sale ("securities AFS") | 31,358 | 30,984 | 374 | 1 | ||||||||||
Loans held for sale ("LHFS") | 2,006 | 1,961 | 45 | 2 | ||||||||||
Loans held for investment ("LHFI"): | ||||||||||||||
Commercial and industrial ("C&I") | 73,374 | 68,203 | 5,171 | 8 | ||||||||||
Commercial real estate ("CRE") | 9,491 | 6,618 | 2,873 | 43 | ||||||||||
Commercial construction | 2,142 | 3,137 | (995 | ) | (32 | ) | ||||||||
Residential mortgages - guaranteed | 457 | 452 | 5 | 1 | ||||||||||
Residential mortgages - nonguaranteed | 28,810 | 28,187 | 623 | 2 | ||||||||||
Residential home equity products | 8,696 | 9,669 | (973 | ) | (10 | ) | ||||||||
Residential construction | 144 | 197 | (53 | ) | (27 | ) | ||||||||
Consumer student - guaranteed | 7,146 | 7,039 | 107 | 2 | ||||||||||
Consumer other direct | 12,431 | 10,100 | 2,331 | 23 | ||||||||||
Consumer indirect | 14,060 | 12,010 | 2,050 | 17 | ||||||||||
Consumer credit cards | 1,704 | 1,603 | 101 | 6 | ||||||||||
Total LHFI | 158,455 | 147,215 | 11,240 | 8 | ||||||||||
Allowance for loan and lease losses ("ALLL") | (1,699 | ) | (1,623 | ) | 76 | 5 | ||||||||
Net LHFI | 156,756 | 145,592 | 11,164 | 8 | ||||||||||
Goodwill | 6,331 | 6,331 | — | — | ||||||||||
Residential MSRs | 1,564 | 2,062 | (498 | ) | (24 | ) | ||||||||
Other assets | 13,065 | 11,065 | 2,000 | 18 | ||||||||||
Total assets 1 | $227,368 | $211,276 | $16,092 | 8 | % | |||||||||
LIABILITIES | ||||||||||||||
Deposits: | ||||||||||||||
Noninterest-bearing consumer and commercial deposits | $40,360 | $41,870 | ($1,510 | ) | (4 | )% | ||||||||
Interest-bearing consumer and commercial deposits: | ||||||||||||||
NOW accounts | 54,043 | 45,745 | 8,298 | 18 | ||||||||||
Money market accounts | 48,554 | 49,960 | (1,406 | ) | (3 | ) | ||||||||
Savings | 6,443 | 6,591 | (148 | ) | (2 | ) | ||||||||
Consumer time | 7,233 | 6,499 | 734 | 11 | ||||||||||
Other time | 9,493 | 8,667 | 826 | 10 | ||||||||||
Total consumer and commercial deposits | 166,126 | 159,332 | 6,794 | 4 | ||||||||||
Brokered time deposits | 1,545 | 1,046 | 499 | 48 | ||||||||||
Total deposits | 167,671 | 160,378 | 7,293 | 5 | ||||||||||
Funds purchased | 254 | 3,354 | (3,100 | ) | (92 | ) | ||||||||
Securities sold under agreements to repurchase | 1,829 | 1,730 | 99 | 6 | ||||||||||
Other short-term borrowings | 5,061 | 2,856 | 2,205 | 77 | ||||||||||
Long-term debt | 20,369 | 14,289 | 6,080 | 43 | ||||||||||
Trading liabilities and derivative instruments | 1,380 | 1,863 | (483 | ) | (26 | ) | ||||||||
Other liabilities | 4,315 | 2,667 | 1,648 | 62 | ||||||||||
Total liabilities | 200,879 | 187,137 | 13,742 | 7 | ||||||||||
SHAREHOLDERS' EQUITY | ||||||||||||||
Preferred stock, no par value | 2,025 | 2,025 | — | — | ||||||||||
Common stock, $1.00 par value | 553 | 553 | — | — | ||||||||||
Additional paid-in capital | 8,989 | 9,001 | (12 | ) | — | |||||||||
Retained earnings | 20,664 | 19,111 | 1,553 | 8 | ||||||||||
Treasury stock, at cost, and other | (5,593 | ) | (4,677 | ) | 916 | 20 | ||||||||
Accumulated other comprehensive loss, net of tax | (149 | ) | (1,874 | ) | (1,725 | ) | (92 | ) | ||||||
Total shareholders' equity | 26,489 | 24,139 | 2,350 | 10 | ||||||||||
Total liabilities and shareholders' equity | $227,368 | $211,276 | $16,092 | 8 | % | |||||||||
Common shares outstanding | 444,033 | 458,626 | (14,593 | ) | (3 | )% | ||||||||
Common shares authorized | 750,000 | 750,000 | — | — | ||||||||||
Preferred shares outstanding | 20 | 20 | — | — | ||||||||||
Preferred shares authorized | 50,000 | 50,000 | — | — | ||||||||||
Treasury shares of common stock | 108,750 | 94,038 | 14,712 | 16 |
(Dollars in millions and shares in thousands, except per share data) (Unaudited) | September 30 | June 30 | Increase/(Decrease) | March 31 | December 31 | September 30 | ||||||||||||||||||||
2019 | 2019 | Amount | % 2 | 2019 | 2018 | 2018 | ||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||
Cash and due from banks | $7,844 | $3,752 | $4,092 | NM | $4,521 | $5,791 | $6,206 | |||||||||||||||||||
Federal funds sold and securities borrowed or purchased under agreements to resell | 1,314 | 1,251 | 63 | 5 | 1,386 | 1,679 | 1,374 | |||||||||||||||||||
Interest-bearing deposits in other banks | 26 | 25 | 1 | 4 | 25 | 25 | 25 | |||||||||||||||||||
Trading assets and derivative instruments | 7,104 | 6,610 | 494 | 7 | 6,259 | 5,506 | 5,676 | |||||||||||||||||||
Securities AFS | 31,358 | 32,487 | (1,129 | ) | (3 | ) | 31,853 | 31,442 | 30,984 | |||||||||||||||||
LHFS | 2,006 | 2,229 | (223 | ) | (10 | ) | 1,781 | 1,468 | 1,961 | |||||||||||||||||
LHFI: | ||||||||||||||||||||||||||
C&I | 73,374 | 72,971 | 403 | 1 | 73,278 | 71,137 | 68,203 | |||||||||||||||||||
CRE | 9,491 | 8,655 | 836 | 10 | 7,889 | 7,265 | 6,618 | |||||||||||||||||||
Commercial construction | 2,142 | 2,365 | (223 | ) | (9 | ) | 2,562 | 2,538 | 3,137 | |||||||||||||||||
Residential mortgages - guaranteed | 457 | 439 | 18 | 4 | 467 | 459 | 452 | |||||||||||||||||||
Residential mortgages - nonguaranteed | 28,810 | 28,794 | 16 | — | 28,461 | 28,836 | 28,187 | |||||||||||||||||||
Residential home equity products | 8,696 | 8,902 | (206 | ) | (2 | ) | 9,167 | 9,468 | 9,669 | |||||||||||||||||
Residential construction | 144 | 156 | (12 | ) | (8 | ) | 167 | 184 | 197 | |||||||||||||||||
Consumer student - guaranteed | 7,146 | 7,202 | (56 | ) | (1 | ) | 7,308 | 7,229 | 7,039 | |||||||||||||||||
Consumer other direct | 12,431 | 11,817 | 614 | 5 | 11,029 | 10,615 | 10,100 | |||||||||||||||||||
Consumer indirect | 14,060 | 13,598 | 462 | 3 | 13,268 | 12,419 | 12,010 | |||||||||||||||||||
Consumer credit cards | 1,704 | 1,690 | 14 | 1 | 1,637 | 1,689 | 1,603 | |||||||||||||||||||
Total LHFI | 158,455 | 156,589 | 1,866 | 1 | 155,233 | 151,839 | 147,215 | |||||||||||||||||||
ALLL | (1,699 | ) | (1,681 | ) | 18 | 1 | (1,643 | ) | (1,615 | ) | (1,623 | ) | ||||||||||||||
Net LHFI | 156,756 | 154,908 | 1,848 | 1 | 153,590 | 150,224 | 145,592 | |||||||||||||||||||
Goodwill | 6,331 | 6,331 | — | — | 6,331 | 6,331 | 6,331 | |||||||||||||||||||
Residential MSRs | 1,564 | 1,717 | (153 | ) | (9 | ) | 1,883 | 1,983 | 2,062 | |||||||||||||||||
Other assets | 13,065 | 12,978 | 87 | 1 | 12,796 | 11,094 | 11,065 | |||||||||||||||||||
Total assets 1 | $227,368 | $222,288 | $5,080 | 2 | % | $220,425 | $215,543 | $211,276 | ||||||||||||||||||
LIABILITIES | ||||||||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||||
Noninterest-bearing consumer and commercial deposits | $40,360 | $39,850 | $510 | 1 | % | $40,345 | $40,770 | $41,870 | ||||||||||||||||||
Interest-bearing consumer and commercial deposits: | ||||||||||||||||||||||||||
NOW accounts | 54,043 | 49,994 | 4,049 | 8 | 48,964 | 49,031 | 45,745 | |||||||||||||||||||
Money market accounts | 48,554 | 46,465 | 2,089 | 4 | 48,855 | 49,868 | 49,960 | |||||||||||||||||||
Savings | 6,443 | 6,678 | (235 | ) | (4 | ) | 6,820 | 6,520 | 6,591 | |||||||||||||||||
Consumer time | 7,233 | 7,194 | 39 | 1 | 6,902 | 6,583 | 6,499 | |||||||||||||||||||
Other time | 9,493 | 9,538 | (45 | ) | — | 9,206 | 8,772 | 8,667 | ||||||||||||||||||
Total consumer and commercial deposits | 166,126 | 159,719 | 6,407 | 4 | 161,092 | 161,544 | 159,332 | |||||||||||||||||||
Brokered time deposits | 1,545 | 1,413 | 132 | 9 | 1,060 | 1,045 | 1,046 | |||||||||||||||||||
Total deposits | 167,671 | 161,132 | 6,539 | 4 | 162,152 | 162,589 | 160,378 | |||||||||||||||||||
Funds purchased | 254 | 314 | (60 | ) | (19 | ) | 1,169 | 2,141 | 3,354 | |||||||||||||||||
Securities sold under agreements to repurchase | 1,829 | 1,814 | 15 | 1 | 1,962 | 1,774 | 1,730 | |||||||||||||||||||
Other short-term borrowings | 5,061 | 7,396 | (2,335 | ) | (32 | ) | 7,259 | 4,857 | 2,856 | |||||||||||||||||
Long-term debt | 20,369 | 20,200 | 169 | 1 | 17,395 | 15,072 | 14,289 | |||||||||||||||||||
Trading liabilities and derivative instruments | 1,380 | 1,294 | 86 | 7 | 1,609 | 1,604 | 1,863 | |||||||||||||||||||
Other liabilities | 4,315 | 4,276 | 39 | 1 | 4,056 | 3,226 | 2,667 | |||||||||||||||||||
Total liabilities | 200,879 | 196,426 | 4,453 | 2 | 195,602 | 191,263 | 187,137 | |||||||||||||||||||
SHAREHOLDERS’ EQUITY | ||||||||||||||||||||||||||
Preferred stock, no par value | 2,025 | 2,025 | — | — | 2,025 | 2,025 | 2,025 | |||||||||||||||||||
Common stock, $1.00 par value | 553 | 553 | — | — | 553 | 553 | 553 | |||||||||||||||||||
Additional paid-in capital | 8,989 | 8,965 | 24 | — | 8,938 | 9,022 | 9,001 | |||||||||||||||||||
Retained earnings | 20,664 | 20,319 | 345 | 2 | 19,882 | 19,522 | 19,111 | |||||||||||||||||||
Treasury stock, at cost, and other | (5,593 | ) | (5,599 | ) | (6 | ) | — | (5,609 | ) | (5,422 | ) | (4,677 | ) | |||||||||||||
Accumulated other comprehensive loss, net of tax | (149 | ) | (401 | ) | (252 | ) | (63 | ) | (966 | ) | (1,420 | ) | (1,874 | ) | ||||||||||||
Total shareholders’ equity | 26,489 | 25,862 | 627 | 2 | 24,823 | 24,280 | 24,139 | |||||||||||||||||||
Total liabilities and shareholders’ equity | $227,368 | $222,288 | $5,080 | 2 | % | $220,425 | $215,543 | $211,276 | ||||||||||||||||||
Common shares outstanding | 444,033 | 443,858 | 175 | — | % | 443,713 | 446,888 | 458,626 | ||||||||||||||||||
Common shares authorized | 750,000 | 750,000 | — | — | 750,000 | 750,000 | 750,000 | |||||||||||||||||||
Preferred shares outstanding | 20 | 20 | — | — | 20 | 20 | 20 | |||||||||||||||||||
Preferred shares authorized | 50,000 | 50,000 | — | — | 50,000 | 50,000 | 50,000 | |||||||||||||||||||
Treasury shares of common stock | 108,750 | 108,926 | (176 | ) | — | 109,071 | 105,896 | 94,038 |
SunTrust Banks, Inc. and Subsidiaries CONSOLIDATED DAILY AVERAGE BALANCES, INCOME/EXPENSE, AND AVERAGE YIELDS EARNED/RATES PAID | |||||||||||||||||||||||||||||||||||
Three Months Ended | (Decrease)/Increase From | ||||||||||||||||||||||||||||||||||
September 30, 2019 | June 30, 2019 | 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 ("LHFI"): 1 | |||||||||||||||||||||||||||||||||||
Commercial and industrial ("C&I") | $73,121 | $703 | 3.82 | % | $73,287 | $734 | 4.01 | % | ($166 | ) | (0.19 | ) | $5,489 | (0.05 | ) | ||||||||||||||||||||
Commercial real estate ("CRE") | 9,005 | 96 | 4.23 | 8,308 | 92 | 4.46 | 697 | (0.23 | ) | 2,587 | 0.04 | ||||||||||||||||||||||||
Commercial construction | 2,225 | 28 | 5.03 | 2,470 | 33 | 5.37 | (245 | ) | (0.34 | ) | (1,075 | ) | 0.27 | ||||||||||||||||||||||
Residential mortgages - guaranteed | 475 | 4 | 3.04 | 462 | 3 | 2.96 | 13 | 0.08 | (27 | ) | 0.28 | ||||||||||||||||||||||||
Residential mortgages - nonguaranteed | 28,693 | 275 | 3.84 | 28,353 | 275 | 3.88 | 340 | (0.04 | ) | 1,109 | (0.05 | ) | |||||||||||||||||||||||
Residential home equity products | 8,683 | 116 | 5.29 | 8,918 | 119 | 5.33 | (235 | ) | (0.04 | ) | (949 | ) | 0.32 | ||||||||||||||||||||||
Residential construction | 142 | 2 | 4.66 | 154 | 2 | 5.55 | (12 | ) | (0.89 | ) | (51 | ) | (0.09 | ) | |||||||||||||||||||||
Consumer student - guaranteed | 7,137 | 89 | 4.94 | 7,254 | 94 | 5.19 | (117 | ) | (0.25 | ) | 225 | (0.11 | ) | ||||||||||||||||||||||
Consumer other direct | 12,074 | 190 | 6.24 | 11,419 | 176 | 6.17 | 655 | 0.07 | 2,348 | 0.75 | |||||||||||||||||||||||||
Consumer indirect | 13,831 | 151 | 4.33 | 13,411 | 141 | 4.20 | 420 | 0.13 | 2,061 | 0.47 | |||||||||||||||||||||||||
Consumer credit cards | 1,691 | 51 | 12.00 | 1,652 | 49 | 11.98 | 39 | 0.02 | 118 | 0.29 | |||||||||||||||||||||||||
Nonaccrual | 535 | 3 | 2.55 | 536 | 3 | 2.39 | (1 | ) | 0.16 | (218 | ) | (0.15 | ) | ||||||||||||||||||||||
Total LHFI | 157,612 | 1,708 | 4.30 | 156,224 | 1,721 | 4.42 | 1,388 | (0.12 | ) | 11,617 | 0.09 | ||||||||||||||||||||||||
Securities available for sale ("securities AFS"): | |||||||||||||||||||||||||||||||||||
Taxable | 30,862 | 211 | 2.73 | 31,279 | 219 | 2.80 | (417 | ) | (0.07 | ) | (65 | ) | 0.05 | ||||||||||||||||||||||
Tax-exempt | 571 | 4 | 2.99 | 586 | 4 | 2.99 | (15 | ) | — | (54 | ) | — | |||||||||||||||||||||||
Total securities AFS | 31,433 | 215 | 2.73 | 31,865 | 223 | 2.80 | (432 | ) | (0.07 | ) | (119 | ) | 0.04 | ||||||||||||||||||||||
Federal funds sold and securities borrowed or purchased under agreements to resell | 1,215 | 7 | 2.11 | 1,313 | 8 | 2.31 | (98 | ) | (0.20 | ) | (211 | ) | 0.32 | ||||||||||||||||||||||
Loans held for sale ("LHFS") | 2,297 | 21 | 3.75 | 1,540 | 15 | 3.97 | 757 | (0.22 | ) | 275 | (0.65 | ) | |||||||||||||||||||||||
Interest-bearing deposits in other banks | 26 | — | 3.65 | 26 | — | 3.97 | — | (0.32 | ) | 1 | (0.25 | ) | |||||||||||||||||||||||
Interest earning trading assets | 5,454 | 45 | 3.30 | 5,553 | 45 | 3.27 | (99 | ) | 0.03 | 665 | 0.12 | ||||||||||||||||||||||||
Other earning assets | 841 | 9 | 4.29 | 874 | 9 | 3.84 | (33 | ) | 0.45 | 306 | 0.50 | ||||||||||||||||||||||||
Total earning assets | 198,878 | 2,005 | 4.00 | 197,395 | 2,021 | 4.11 | 1,483 | (0.11 | ) | 12,534 | 0.10 | ||||||||||||||||||||||||
Allowance for loan and lease losses ("ALLL") | (1,692 | ) | (1,662 | ) | (30 | ) | (27 | ) | |||||||||||||||||||||||||||
Cash and due from banks | 5,218 | 4,052 | 1,166 | 643 | |||||||||||||||||||||||||||||||
Other noninterest earning assets | 19,780 | 19,732 | 48 | 1,588 | |||||||||||||||||||||||||||||||
Noninterest earning trading assets and derivative instruments | 1,876 | 1,193 | 683 | 1,208 | |||||||||||||||||||||||||||||||
Unrealized gains on securities AFS, net | 687 | 117 | 570 | 1,406 | |||||||||||||||||||||||||||||||
Total assets | $224,747 | $220,827 | $3,920 | $17,352 | |||||||||||||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||||||||||||||||||||||||
Interest-bearing deposits: | |||||||||||||||||||||||||||||||||||
NOW accounts | $50,723 | $109 | 0.85 | % | $49,161 | $102 | 0.83 | % | $1,562 | 0.02 | $5,378 | 0.28 | |||||||||||||||||||||||
Money market accounts | 48,121 | 100 | 0.82 | 47,339 | 90 | 0.77 | 782 | 0.05 | (1,805 | ) | 0.24 | ||||||||||||||||||||||||
Savings | 6,570 | — | 0.02 | 6,738 | — | 0.02 | (168 | ) | — | (88 | ) | — | |||||||||||||||||||||||
Consumer time | 7,228 | 28 | 1.51 | 7,058 | 25 | 1.43 | 170 | 0.08 | 815 | 0.48 | |||||||||||||||||||||||||
Other time | 9,602 | 49 | 2.01 | 9,429 | 47 | 2.00 | 173 | 0.01 | 1,245 | 0.46 | |||||||||||||||||||||||||
Total interest-bearing consumer and commercial deposits | 122,244 | 286 | 0.93 | 119,725 | 264 | 0.89 | 2,519 | 0.04 | 5,545 | 0.29 | |||||||||||||||||||||||||
Brokered time deposits | 1,566 | 7 | 1.79 | 1,123 | 5 | 1.68 | 443 | 0.11 | 525 | 0.25 | |||||||||||||||||||||||||
Foreign deposits | — | — | — | — | — | — | — | — | (172 | ) | (1.94 | ) | |||||||||||||||||||||||
Total interest-bearing deposits | 123,810 | 293 | 0.94 | 120,848 | 269 | 0.89 | 2,962 | 0.05 | 5,898 | 0.29 | |||||||||||||||||||||||||
Funds purchased | 371 | 2 | 2.12 | 948 | 6 | 2.38 | (577 | ) | (0.26 | ) | (981 | ) | 0.18 | ||||||||||||||||||||||
Securities sold under agreements to repurchase | 1,801 | 10 | 2.09 | 1,881 | 11 | 2.27 | (80 | ) | (0.18 | ) | 163 | 0.24 | |||||||||||||||||||||||
Other short-term borrowings | 6,182 | 33 | 2.13 | 7,157 | 41 | 2.33 | (975 | ) | (0.20 | ) | 3,923 | 0.56 | |||||||||||||||||||||||
Long-term debt | 20,311 | 150 | 2.92 | 18,996 | 150 | 3.16 | 1,315 | (0.24 | ) | 7,389 | — | ||||||||||||||||||||||||
Interest-bearing trading liabilities | 1,132 | 7 | 2.62 | 1,304 | 9 | 2.88 | (172 | ) | (0.26 | ) | (101 | ) | (0.71 | ) | |||||||||||||||||||||
Total interest-bearing liabilities | 153,607 | 495 | 1.28 | 151,134 | 486 | 1.29 | 2,473 | (0.01 | ) | 16,291 | 0.35 | ||||||||||||||||||||||||
Noninterest-bearing deposits | 40,289 | 40,129 | 160 | (2,360 | ) | ||||||||||||||||||||||||||||||
Other noninterest-bearing liabilities | 4,148 | 3,994 | 154 | 1,683 | |||||||||||||||||||||||||||||||
Noninterest-bearing trading liabilities and derivative instruments | 477 | 361 | 116 | (213 | ) | ||||||||||||||||||||||||||||||
Shareholders’ equity | 26,226 | 25,209 | 1,017 | 1,951 | |||||||||||||||||||||||||||||||
Total liabilities and shareholders’ equity | $224,747 | $220,827 | $3,920 | $17,352 | |||||||||||||||||||||||||||||||
Interest Rate Spread | 2.72 | % | 2.82 | % | (0.10 | ) | (0.25 | ) | |||||||||||||||||||||||||||
Net Interest Income | $1,510 | $1,535 | |||||||||||||||||||||||||||||||||
Net Interest Income-FTE 2 | $1,532 | $1,557 | |||||||||||||||||||||||||||||||||
Net Interest Margin 3 | 3.01 | % | 3.12 | % | (0.11 | ) | (0.21 | ) | |||||||||||||||||||||||||||
Net Interest Margin-FTE 2, 3 | 3.06 | 3.16 | (0.10 | ) | (0.21 | ) |
SunTrust Banks, Inc. and Subsidiaries CONSOLIDATED DAILY AVERAGE BALANCES, INCOME/EXPENSE, AND AVERAGE YIELDS EARNED/RATES PAID, continued | ||||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||
March 31, 2019 | December 31, 2018 | September 30, 2018 | ||||||||||||||||||||||||||||||
(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 | ||||||||||||||||||||||||||||||||
LHFI: 1 | ||||||||||||||||||||||||||||||||
C&I | $72,450 | $730 | 4.08 | % | $69,446 | $695 | 3.97 | % | $67,632 | $659 | 3.87 | % | ||||||||||||||||||||
CRE | 7,611 | 85 | 4.52 | 7,030 | 77 | 4.33 | 6,418 | 68 | 4.19 | |||||||||||||||||||||||
Commercial construction | 2,559 | 33 | 5.31 | 2,964 | 38 | 5.10 | 3,300 | 40 | 4.76 | |||||||||||||||||||||||
Residential mortgages - guaranteed | 481 | 4 | 2.91 | 476 | 4 | 3.04 | 502 | 3 | 2.76 | |||||||||||||||||||||||
Residential mortgages - nonguaranteed | 28,588 | 282 | 3.95 | 28,268 | 278 | 3.93 | 27,584 | 268 | 3.89 | |||||||||||||||||||||||
Residential home equity products | 9,180 | 120 | 5.31 | 9,421 | 122 | 5.14 | 9,632 | 121 | 4.97 | |||||||||||||||||||||||
Residential construction | 164 | 2 | 5.24 | 180 | 1 | 3.34 | 193 | 2 | 4.75 | |||||||||||||||||||||||
Consumer student - guaranteed | 7,258 | 94 | 5.25 | 7,114 | 93 | 5.18 | 6,912 | 88 | 5.05 | |||||||||||||||||||||||
Consumer other direct | 10,792 | 160 | 6.01 | 10,363 | 150 | 5.76 | 9,726 | 135 | 5.49 | |||||||||||||||||||||||
Consumer indirect | 12,984 | 134 | 4.18 | 12,165 | 125 | 4.08 | 11,770 | 114 | 3.86 | |||||||||||||||||||||||
Consumer credit cards | 1,647 | 49 | 11.90 | 1,625 | 48 | 11.78 | 1,573 | 46 | 11.71 | |||||||||||||||||||||||
Nonaccrual | 544 | 4 | 3.13 | 656 | 4 | 2.32 | 753 | 5 | 2.70 | |||||||||||||||||||||||
Total LHFI | 154,258 | 1,697 | 4.46 | 149,708 | 1,635 | 4.33 | 145,995 | 1,549 | 4.21 | |||||||||||||||||||||||
Securities AFS: | ||||||||||||||||||||||||||||||||
Taxable | 31,268 | 217 | 2.78 | 31,197 | 216 | 2.77 | 30,927 | 207 | 2.68 | |||||||||||||||||||||||
Tax-exempt | 598 | 4 | 2.99 | 612 | 5 | 2.99 | 625 | 5 | 2.99 | |||||||||||||||||||||||
Total securities AFS | 31,866 | 221 | 2.77 | 31,809 | 221 | 2.78 | 31,552 | 212 | 2.69 | |||||||||||||||||||||||
Federal funds sold and securities borrowed or purchased under agreements to resell | 1,271 | 7 | 2.28 | 1,514 | 8 | 2.12 | 1,426 | 7 | 1.79 | |||||||||||||||||||||||
LHFS | 1,211 | 13 | 4.41 | 2,037 | 34 | 6.60 | 2,022 | 22 | 4.40 | |||||||||||||||||||||||
Interest-bearing deposits in other banks | 25 | — | 5.69 | 25 | — | 1.38 | 25 | — | 3.90 | |||||||||||||||||||||||
Interest earning trading assets | 4,950 | 43 | 3.47 | 5,064 | 41 | 3.25 | 4,789 | 39 | 3.18 | |||||||||||||||||||||||
Other earning assets | 804 | 6 | 2.95 | 585 | 5 | 3.47 | 535 | 5 | 3.79 | |||||||||||||||||||||||
Total earning assets | 194,385 | 1,987 | 4.15 | 190,742 | 1,944 | 4.04 | 186,344 | 1,834 | 3.90 | |||||||||||||||||||||||
ALLL | (1,638 | ) | (1,633 | ) | (1,665 | ) | ||||||||||||||||||||||||||
Cash and due from banks | 4,297 | 5,256 | 4,575 | |||||||||||||||||||||||||||||
Other noninterest earning assets | 19,915 | 18,953 | 18,192 | |||||||||||||||||||||||||||||
Noninterest earning trading assets and derivative instruments | 821 | 627 | 668 | |||||||||||||||||||||||||||||
Unrealized losses on securities AFS, net | (377 | ) | (1,011 | ) | (719 | ) | ||||||||||||||||||||||||||
Total assets | $217,403 | $212,934 | $207,395 | |||||||||||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||||||||||||||||||
NOW accounts | $48,282 | $89 | 0.74 | % | $47,400 | $79 | 0.66 | % | $45,345 | $65 | 0.57 | % | ||||||||||||||||||||
Money market accounts | 49,187 | 92 | 0.76 | 49,863 | 87 | 0.69 | 49,926 | 73 | 0.58 | |||||||||||||||||||||||
Savings | 6,615 | — | 0.02 | 6,538 | — | 0.02 | 6,658 | — | 0.02 | |||||||||||||||||||||||
Consumer time | 6,747 | 21 | 1.29 | 6,546 | 19 | 1.15 | 6,413 | 17 | 1.03 | |||||||||||||||||||||||
Other time | 9,002 | 42 | 1.89 | 8,892 | 39 | 1.73 | 8,357 | 33 | 1.55 | |||||||||||||||||||||||
Total interest-bearing consumer and commercial deposits | 119,833 | 244 | 0.83 | 119,239 | 224 | 0.74 | 116,699 | 188 | 0.64 | |||||||||||||||||||||||
Brokered time deposits | 1,054 | 4 | 1.60 | 1,044 | 4 | 1.54 | 1,041 | 4 | 1.54 | |||||||||||||||||||||||
Foreign deposits | 197 | 1 | 2.51 | 15 | — | 2.44 | 172 | 1 | 1.94 | |||||||||||||||||||||||
Total interest-bearing deposits | 121,084 | 249 | 0.84 | 120,298 | 228 | 0.75 | 117,912 | 193 | 0.65 | |||||||||||||||||||||||
Funds purchased | 1,473 | 9 | 2.40 | 2,165 | 12 | 2.21 | 1,352 | 7 | 1.94 | |||||||||||||||||||||||
Securities sold under agreements to repurchase | 1,605 | 9 | 2.25 | 1,861 | 10 | 2.07 | 1,638 | 8 | 1.85 | |||||||||||||||||||||||
Other short-term borrowings | 7,144 | 42 | 2.35 | 2,701 | 12 | 1.82 | 2,259 | 9 | 1.57 | |||||||||||||||||||||||
Long-term debt | 15,955 | 125 | 3.19 | 14,898 | 123 | 3.29 | 12,922 | 95 | 2.92 | |||||||||||||||||||||||
Interest-bearing trading liabilities | 1,201 | 9 | 3.13 | 1,421 | 12 | 3.27 | 1,233 | 10 | 3.33 | |||||||||||||||||||||||
Total interest-bearing liabilities | 148,462 | 443 | 1.21 | 143,344 | 397 | 1.10 | 137,316 | 322 | 0.93 | |||||||||||||||||||||||
Noninterest-bearing deposits | 40,088 | 42,334 | 42,649 | |||||||||||||||||||||||||||||
Other noninterest-bearing liabilities | 3,976 | 2,693 | 2,465 | |||||||||||||||||||||||||||||
Noninterest-bearing trading liabilities and derivative instruments | 411 | 690 | 690 | |||||||||||||||||||||||||||||
Shareholders’ equity | 24,466 | 23,873 | 24,275 | |||||||||||||||||||||||||||||
Total liabilities and shareholders’ equity | $217,403 | $212,934 | $207,395 | |||||||||||||||||||||||||||||
Interest Rate Spread | 2.94 | % | 2.94 | % | 2.97 | % | ||||||||||||||||||||||||||
Net Interest Income | $1,544 | $1,547 | $1,512 | |||||||||||||||||||||||||||||
Net Interest Income-FTE 2 | $1,567 | $1,570 | $1,534 | |||||||||||||||||||||||||||||
Net Interest Margin 3 | 3.22 | % | 3.22 | % | 3.22 | % | ||||||||||||||||||||||||||
Net Interest Margin-FTE 2, 3 | 3.27 | 3.27 | 3.27 |
SunTrust Banks, Inc. and Subsidiaries CONSOLIDATED DAILY AVERAGE BALANCES, INCOME/EXPENSE, AND AVERAGE YIELDS EARNED/RATES PAID, continued | ||||||||||||||||||||||||||||
Nine Months Ended | ||||||||||||||||||||||||||||
September 30, 2019 | September 30, 2018 | 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 | ||||||||||||||||||||||||||||
LHFI: 1 | ||||||||||||||||||||||||||||
C&I | $72,955 | $2,167 | 3.97 | % | $67,042 | $1,880 | 3.75 | % | $5,913 | 0.22 | ||||||||||||||||||
CRE | 8,314 | 273 | 4.39 | 5,787 | 175 | 4.04 | 2,527 | 0.35 | ||||||||||||||||||||
Commercial construction | 2,417 | 95 | 5.24 | 3,534 | 120 | 4.53 | (1,117 | ) | 0.71 | |||||||||||||||||||
Residential mortgages - guaranteed | 472 | 10 | 2.97 | 576 | 13 | 3.09 | (104 | ) | (0.12 | ) | ||||||||||||||||||
Residential mortgages - nonguaranteed | 28,545 | 832 | 3.89 | 27,159 | 780 | 3.83 | 1,386 | 0.06 | ||||||||||||||||||||
Residential home equity products | 8,925 | 355 | 5.31 | 9,929 | 356 | 4.79 | (1,004 | ) | 0.52 | |||||||||||||||||||
Residential construction | 153 | 6 | 5.16 | 223 | 8 | 4.81 | (70 | ) | 0.35 | |||||||||||||||||||
Consumer student - guaranteed | 7,216 | 277 | 5.13 | 6,778 | 249 | 4.91 | 438 | 0.22 | ||||||||||||||||||||
Consumer other direct | 11,433 | 525 | 6.14 | 9,236 | 365 | 5.28 | 2,197 | 0.86 | ||||||||||||||||||||
Consumer indirect | 13,412 | 425 | 4.24 | 11,834 | 330 | 3.72 | 1,578 | 0.52 | ||||||||||||||||||||
Consumer credit cards | 1,664 | 149 | 11.96 | 1,541 | 133 | 11.47 | 123 | 0.49 | ||||||||||||||||||||
Nonaccrual | 538 | 11 | 2.69 | 729 | 15 | 2.77 | (191 | ) | (0.08 | ) | ||||||||||||||||||
Total LHFI | 156,044 | 5,125 | 4.39 | 144,368 | 4,424 | 4.10 | 11,676 | 0.29 | ||||||||||||||||||||
Securities AFS: | ||||||||||||||||||||||||||||
Taxable | 31,135 | 646 | 2.77 | 30,912 | 614 | 2.65 | 223 | 0.12 | ||||||||||||||||||||
Tax-exempt | 585 | 13 | 2.99 | 630 | 14 | 2.99 | (45 | ) | — | |||||||||||||||||||
Total securities AFS | 31,720 | 659 | 2.77 | 31,542 | 628 | 2.66 | 178 | 0.11 | ||||||||||||||||||||
Federal funds sold and securities borrowed or purchased under agreements to resell | 1,266 | 22 | 2.23 | 1,411 | 16 | 1.52 | (145 | ) | 0.71 | |||||||||||||||||||
LHFS | 1,686 | 50 | 3.96 | 2,055 | 67 | 4.35 | (369 | ) | (0.39 | ) | ||||||||||||||||||
Interest-bearing deposits in other banks | 25 | 1 | 4.42 | 25 | 1 | 2.70 | — | 1.72 | ||||||||||||||||||||
Interest earning trading assets | 5,321 | 133 | 3.34 | 4,677 | 110 | 3.16 | 644 | 0.18 | ||||||||||||||||||||
Other earning assets | 840 | 23 | 3.71 | 529 | 15 | 3.75 | 311 | (0.04 | ) | |||||||||||||||||||
Total earning assets | 196,902 | 6,013 | 4.08 | 184,607 | 5,261 | 3.81 | 12,295 | 0.27 | ||||||||||||||||||||
ALLL | (1,664 | ) | (1,691 | ) | 27 | |||||||||||||||||||||||
Cash and due from banks | 4,526 | 4,706 | (180 | ) | ||||||||||||||||||||||||
Other noninterest earning assets | 19,808 | 17,678 | 2,130 | |||||||||||||||||||||||||
Noninterest earning trading assets and derivative instruments | 1,301 | 650 | 651 | |||||||||||||||||||||||||
Unrealized gains/(losses) on securities AFS, net | 146 | (580 | ) | 726 | ||||||||||||||||||||||||
Total assets | $221,019 | $205,370 | $15,649 | |||||||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||||||||||||||
NOW accounts | $49,398 | $299 | 0.81 | % | $45,755 | $162 | 0.47 | % | $3,643 | 0.34 | ||||||||||||||||||
Money market accounts | 48,212 | 282 | 0.78 | 50,102 | 182 | 0.49 | (1,890 | ) | 0.29 | |||||||||||||||||||
Savings | 6,641 | 1 | 0.02 | 6,684 | 1 | 0.03 | (43 | ) | (0.01 | ) | ||||||||||||||||||
Consumer time | 7,013 | 74 | 1.41 | 6,261 | 45 | 0.95 | 752 | 0.46 | ||||||||||||||||||||
Other time | 9,346 | 138 | 1.97 | 7,680 | 81 | 1.41 | 1,666 | 0.56 | ||||||||||||||||||||
Total interest-bearing consumer and commercial deposits | 120,610 | 794 | 0.88 | 116,482 | 471 | 0.54 | 4,128 | 0.34 | ||||||||||||||||||||
Brokered time deposits | 1,249 | 16 | 1.71 | 1,026 | 11 | 1.45 | 223 | 0.26 | ||||||||||||||||||||
Foreign deposits | 65 | 1 | 2.41 | 121 | 2 | 1.85 | (56 | ) | 0.56 | |||||||||||||||||||
Total interest-bearing deposits | 121,924 | 811 | 0.89 | 117,629 | 484 | 0.55 | 4,295 | 0.34 | ||||||||||||||||||||
Funds purchased | 927 | 17 | 2.36 | 1,112 | 15 | 1.74 | (185 | ) | 0.62 | |||||||||||||||||||
Securities sold under agreements to repurchase | 1,763 | 29 | 2.21 | 1,630 | 20 | 1.66 | 133 | 0.55 | ||||||||||||||||||||
Other short-term borrowings | 6,824 | 116 | 2.28 | 2,051 | 22 | 1.41 | 4,773 | 0.87 | ||||||||||||||||||||
Long-term debt | 18,437 | 425 | 3.08 | 11,635 | 252 | 2.89 | 6,802 | 0.19 | ||||||||||||||||||||
Interest-bearing trading liabilities | 1,212 | 26 | 2.88 | 1,219 | 28 | 3.11 | (7 | ) | (0.23 | ) | ||||||||||||||||||
Total interest-bearing liabilities | 151,087 | 1,424 | 1.26 | 135,276 | 821 | 0.81 | 15,811 | 0.45 | ||||||||||||||||||||
Noninterest-bearing deposits | 40,169 | 42,677 | (2,508 | ) | ||||||||||||||||||||||||
Other noninterest-bearing liabilities | 4,039 | 2,424 | 1,615 | |||||||||||||||||||||||||
Noninterest-bearing trading liabilities and derivative instruments | 417 | 669 | (252 | ) | ||||||||||||||||||||||||
Shareholders’ equity | 25,307 | 24,324 | 983 | |||||||||||||||||||||||||
Total liabilities and shareholders’ equity | $221,019 | $205,370 | $15,649 | |||||||||||||||||||||||||
Interest Rate Spread | 2.82 | % | 3.00 | % | (0.18 | ) | ||||||||||||||||||||||
Net Interest Income | $4,589 | $4,440 | ||||||||||||||||||||||||||
Net Interest Income-FTE 2 | $4,655 | $4,505 | ||||||||||||||||||||||||||
Net Interest Margin 3 | 3.12 | % | 3.22 | % | (0.10 | ) | ||||||||||||||||||||||
Net Interest Margin-FTE 2, 3 | 3.16 | 3.26 | (0.10 | ) |
SunTrust Banks, Inc. and Subsidiaries OTHER FINANCIAL DATA | |||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||
September 30 | Increase/(Decrease) | September 30 | (Decrease)/Increase | ||||||||||||||||||||||||||
(Dollars in millions) (Unaudited) | 2019 | 2018 | Amount | % 5 | 2019 | 2018 | Amount | % 5 | |||||||||||||||||||||
CREDIT DATA | |||||||||||||||||||||||||||||
Allowance for credit losses, beginning of period | $1,751 | $1,722 | $29 | 2 | % | $1,684 | $1,814 | ($130 | ) | (7 | )% | ||||||||||||||||||
Provision/(benefit) for unfunded commitments | 2 | — | 2 | NM | 3 | (7 | ) | 10 | NM | ||||||||||||||||||||
Provision for loan losses: | |||||||||||||||||||||||||||||
Commercial | 42 | 36 | 6 | 17 | 208 | 37 | 171 | NM | |||||||||||||||||||||
Consumer | 88 | 25 | 63 | NM | 201 | 91 | 110 | NM | |||||||||||||||||||||
Total provision for loan losses | 130 | 61 | 69 | NM | 409 | 128 | 281 | NM | |||||||||||||||||||||
Charge-offs: | |||||||||||||||||||||||||||||
Commercial | (35 | ) | (51 | ) | (16 | ) | (31 | ) | (88 | ) | (95 | ) | (7 | ) | (7 | ) | |||||||||||||
Consumer | (104 | ) | (71 | ) | 33 | 46 | (289 | ) | (234 | ) | 55 | 24 | |||||||||||||||||
Total charge-offs | (139 | ) | (122 | ) | 17 | 14 | (377 | ) | (329 | ) | 48 | 15 | |||||||||||||||||
Recoveries: | |||||||||||||||||||||||||||||
Commercial | 5 | 9 | (4 | ) | (44 | ) | 14 | 19 | (5 | ) | (26 | ) | |||||||||||||||||
Consumer | 22 | 25 | (3 | ) | (12 | ) | 69 | 70 | (1 | ) | (1 | ) | |||||||||||||||||
Total recoveries | 27 | 34 | (7 | ) | (21 | ) | 83 | 89 | (6 | ) | (7 | ) | |||||||||||||||||
Net charge-offs | (112 | ) | (88 | ) | 24 | 27 | (294 | ) | (240 | ) | 54 | 23 | |||||||||||||||||
Other 1 | — | — | — | — | (31 | ) | — | 31 | NM | ||||||||||||||||||||
Allowance for credit losses, end of period | $1,771 | $1,695 | $76 | 4 | % | $1,771 | $1,695 | $76 | 4 | % | |||||||||||||||||||
Components: | |||||||||||||||||||||||||||||
Allowance for loan and lease losses ("ALLL") | $1,699 | $1,623 | $76 | 5 | % | ||||||||||||||||||||||||
Unfunded commitments reserve | 72 | 72 | — | — | |||||||||||||||||||||||||
Allowance for credit losses | $1,771 | $1,695 | $76 | 4 | % | ||||||||||||||||||||||||
Net charge-offs to average loans held for investment ("LHFI") (annualized): | |||||||||||||||||||||||||||||
Commercial | 0.14 | % | 0.22 | % | (0.08 | ) | (36 | )% | 0.12 | % | 0.13 | % | (0.01 | ) | (8 | )% | |||||||||||||
Consumer | 0.45 | 0.27 | 0.18 | 67 | 0.41 | 0.33 | 0.08 | 24 | |||||||||||||||||||||
Total net charge-offs to total average LHFI | 0.28 | 0.24 | 0.04 | 17 | 0.25 | 0.22 | 0.03 | 14 | |||||||||||||||||||||
Period Ended | |||||||||||||||||||||||||||||
Nonaccrual/nonperforming loans ("NPLs"): | |||||||||||||||||||||||||||||
Commercial | $351 | $299 | $52 | 17 | % | ||||||||||||||||||||||||
Consumer | 249 | 396 | (147 | ) | (37 | ) | |||||||||||||||||||||||
Total nonaccrual/NPLs | 600 | 695 | (95 | ) | (14 | ) | |||||||||||||||||||||||
Other real estate owned ("OREO") | 52 | 52 | — | — | |||||||||||||||||||||||||
Other repossessed assets | 8 | 7 | 1 | 14 | |||||||||||||||||||||||||
Nonperforming loans held for sale ("nonperforming LHFS") | 1 | — | 1 | NM | |||||||||||||||||||||||||
Total nonperforming assets ("NPAs") | $661 | $754 | ($93 | ) | (12 | )% | |||||||||||||||||||||||
Accruing restructured LHFI | $1,752 | $2,327 | ($575 | ) | (25 | )% | |||||||||||||||||||||||
Nonaccruing restructured LHFI 2 | 163 | 345 | (182 | ) | (53 | ) | |||||||||||||||||||||||
Accruing LHFI past due > 90 days (guaranteed) | 1,341 | 1,440 | (99 | ) | (7 | ) | |||||||||||||||||||||||
Accruing LHFI past due > 90 days (non-guaranteed) | 52 | 42 | 10 | 24 | |||||||||||||||||||||||||
Accruing LHFS past due > 90 days | 3 | 2 | 1 | 50 | |||||||||||||||||||||||||
NPLs to period-end LHFI | 0.38 | % | 0.47 | % | (0.09 | ) | (19 | )% | |||||||||||||||||||||
NPAs to period-end LHFI plus OREO, other repossessed assets, and nonperforming LHFS | 0.42 | 0.51 | (0.09 | ) | (18 | ) | |||||||||||||||||||||||
ALLL to period-end LHFI 3, 4 | 1.07 | 1.10 | (0.03 | ) | (3 | ) | |||||||||||||||||||||||
ALLL to NPLs 3, 4 | 2.84x | 2.35x | 0.49x | 21 | |||||||||||||||||||||||||
SunTrust Banks, Inc. and Subsidiaries FIVE QUARTER OTHER FINANCIAL DATA | ||||||||||||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||||||||||||
September 30 | June 30 | Increase/(Decrease) | March 31 | December 31 | September 30 | |||||||||||||||||||||
(Dollars in millions) (Unaudited) | 2019 | 2019 | Amount | % 5 | 2019 | 2018 | 2018 | |||||||||||||||||||
CREDIT DATA | ||||||||||||||||||||||||||
Allowance for credit losses, beginning of period | $1,751 | $1,709 | $42 | 2 | % | $1,684 | $1,695 | $1,722 | ||||||||||||||||||
Provision/(benefit) for unfunded commitments | 2 | 4 | (2 | ) | (50 | ) | (3 | ) | (3 | ) | — | |||||||||||||||
Provision for loan losses: | ||||||||||||||||||||||||||
Commercial | 42 | 82 | (40 | ) | (49 | ) | 84 | 49 | 36 | |||||||||||||||||
Consumer | 88 | 41 | 47 | NM | 72 | 40 | 25 | |||||||||||||||||||
Total provision for loan losses | 130 | 123 | 7 | 6 | 156 | 89 | 61 | |||||||||||||||||||
Charge-offs: | ||||||||||||||||||||||||||
Commercial | (35 | ) | (20 | ) | 15 | 75 | (33 | ) | (35 | ) | (51 | ) | ||||||||||||||
Consumer | (104 | ) | (93 | ) | 11 | 12 | (92 | ) | (88 | ) | (71 | ) | ||||||||||||||
Total charge-offs | (139 | ) | (113 | ) | 26 | 23 | (125 | ) | (123 | ) | (122 | ) | ||||||||||||||
Recoveries: | ||||||||||||||||||||||||||
Commercial | 5 | 4 | 1 | 25 | 5 | 4 | 9 | |||||||||||||||||||
Consumer | 22 | 24 | (2 | ) | (8 | ) | 23 | 22 | 25 | |||||||||||||||||
Total recoveries | 27 | 28 | (1 | ) | (4 | ) | 28 | 26 | 34 | |||||||||||||||||
Net charge-offs | (112 | ) | (85 | ) | 27 | 32 | (97 | ) | (97 | ) | (88 | ) | ||||||||||||||
Other 1 | — | — | — | — | (31 | ) | — | — | ||||||||||||||||||
Allowance for credit losses, end of period | $1,771 | $1,751 | $20 | 1 | % | $1,709 | $1,684 | $1,695 | ||||||||||||||||||
Components: | ||||||||||||||||||||||||||
ALLL | $1,699 | $1,681 | $18 | 1 | % | $1,643 | $1,615 | $1,623 | ||||||||||||||||||
Unfunded commitments reserve | 72 | 70 | 2 | 3 | 66 | 69 | 72 | |||||||||||||||||||
Allowance for credit losses | $1,771 | $1,751 | $20 | 1 | % | $1,709 | $1,684 | $1,695 | ||||||||||||||||||
Net charge-offs to average LHFI (annualized): | ||||||||||||||||||||||||||
Commercial | 0.14 | % | 0.08 | % | 0.06 | 75 | % | 0.14 | % | 0.15 | % | 0.22 | % | |||||||||||||
Consumer | 0.45 | 0.38 | 0.07 | 18 | 0.39 | 0.37 | 0.27 | |||||||||||||||||||
Total net charge-offs to total average LHFI | 0.28 | 0.22 | 0.06 | 27 | 0.26 | 0.26 | 0.24 | |||||||||||||||||||
Period Ended | ||||||||||||||||||||||||||
Nonaccrual/NPLs: | ||||||||||||||||||||||||||
Commercial | $351 | $260 | $91 | 35 | % | $199 | $159 | $299 | ||||||||||||||||||
Consumer | 249 | 276 | (27 | ) | (10 | ) | 323 | 367 | 396 | |||||||||||||||||
Total nonaccrual/NPLs | 600 | 536 | 64 | 12 | 522 | 526 | 695 | |||||||||||||||||||
OREO | 52 | 55 | (3 | ) | (5 | ) | 53 | 54 | 52 | |||||||||||||||||
Other repossessed assets | 8 | 7 | 1 | 14 | 9 | 9 | 7 | |||||||||||||||||||
Nonperforming LHFS | 1 | — | 1 | NM | 64 | — | — | |||||||||||||||||||
Total NPAs | $661 | $598 | $63 | 11 | % | $648 | $589 | $754 | ||||||||||||||||||
Accruing restructured LHFI | $1,752 | $1,787 | ($35 | ) | (2 | )% | $1,807 | $2,339 | $2,327 | |||||||||||||||||
Nonaccruing restructured LHFI 2 | 163 | 209 | (46 | ) | (22 | ) | 309 | 291 | 345 | |||||||||||||||||
Accruing LHFI past due > 90 days (guaranteed) | 1,341 | 1,431 | (90 | ) | (6 | ) | 1,601 | 1,603 | 1,440 | |||||||||||||||||
Accruing LHFI past due > 90 days (non-guaranteed) | 52 | 45 | 7 | 16 | 58 | 49 | 42 | |||||||||||||||||||
Accruing LHFS past due > 90 days | 3 | 2 | 1 | 50 | 2 | 1 | 2 | |||||||||||||||||||
NPLs to period-end LHFI | 0.38 | % | 0.34 | % | 0.04 | 12 | % | 0.34 | % | 0.35 | % | 0.47 | % | |||||||||||||
NPAs to period-end LHFI plus OREO, other repossessed assets, and nonperforming LHFS | 0.42 | 0.38 | 0.04 | 11 | 0.42 | 0.39 | 0.51 | |||||||||||||||||||
ALLL to period-end LHFI 3, 4 | 1.07 | 1.07 | — | — | 1.06 | 1.06 | 1.10 | |||||||||||||||||||
ALLL to NPLs 3, 4 | 2.84x | 3.15x | (0.31x) | (10 | ) | 3.17x | 3.10x | 2.35x | ||||||||||||||||||
SunTrust Banks, Inc. and Subsidiaries OTHER FINANCIAL DATA, continued | |||||||||||||||||||||||||||||||
Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||||||||||||||||||
(Dollars in millions) (Unaudited) | Residential MSRs - Fair Value | Commercial MSRs - Amortized Cost | Other | Total | Residential MSRs - Fair Value | Commercial MSRs - Amortized Cost | Other | Total | |||||||||||||||||||||||
OTHER INTANGIBLE ASSETS ROLLFORWARD | |||||||||||||||||||||||||||||||
Balance, beginning of period | $1,959 | $63 | $14 | $2,036 | $1,710 | $65 | $16 | $1,791 | |||||||||||||||||||||||
Amortization | — | (3 | ) | — | (3 | ) | — | (11 | ) | (2 | ) | (13 | ) | ||||||||||||||||||
Servicing rights originated | 100 | 4 | — | 104 | 250 | 10 | — | 260 | |||||||||||||||||||||||
Servicing rights purchased | 14 | — | — | 14 | 89 | — | — | 89 | |||||||||||||||||||||||
Fair value changes due to inputs and assumptions 1 | 52 | — | — | 52 | 198 | — | — | 198 | |||||||||||||||||||||||
Other changes in fair value 2 | (62 | ) | — | — | (62 | ) | (183 | ) | — | — | (183 | ) | |||||||||||||||||||
Servicing rights sold | (1 | ) | — | — | (1 | ) | (2 | ) | — | — | (2 | ) | |||||||||||||||||||
Balance, September 30, 2018 | $2,062 | $64 | $14 | $2,140 | $2,062 | $64 | $14 | $2,140 | |||||||||||||||||||||||
Balance, beginning of period | $1,717 | $66 | $13 | $1,796 | $1,983 | $66 | $13 | $2,062 | |||||||||||||||||||||||
Amortization | — | (1 | ) | (1 | ) | (2 | ) | — | (8 | ) | (1 | ) | (9 | ) | |||||||||||||||||
Servicing rights originated | 98 | 7 | — | 105 | 237 | 14 | — | 251 | |||||||||||||||||||||||
Fair value changes due to inputs and assumptions 1 | (162 | ) | — | — | (162 | ) | (439 | ) | — | — | (439 | ) | |||||||||||||||||||
Other changes in fair value 2 | (88 | ) | — | — | (88 | ) | (215 | ) | — | — | (215 | ) | |||||||||||||||||||
Servicing rights sold | (1 | ) | — | — | (1 | ) | (2 | ) | — | — | (2 | ) | |||||||||||||||||||
Balance, September 30, 2019 | $1,564 | $72 | $12 | $1,648 | $1,564 | $72 | $12 | $1,648 |
Three Months Ended | ||||||||||||||
September 30 | June 30 | March 31 | December 31 | September 30 | ||||||||||
(Shares in thousands) (Unaudited) | 2019 | 2019 | 2019 | 2018 | 2018 | |||||||||
COMMON SHARES OUTSTANDING ROLLFORWARD | ||||||||||||||
Balance, beginning of period | 443,858 | 443,713 | 446,888 | 458,626 | 465,199 | |||||||||
Common shares issued | 175 | 145 | 1,404 | 165 | 471 | |||||||||
Repurchases of common stock | — | — | (4,579 | ) | (11,903 | ) | (7,044 | ) | ||||||
Balance, end of period | 444,033 | 443,858 | 443,713 | 446,888 | 458,626 |
SunTrust Banks, Inc. and Subsidiaries APPENDIX A TO THE EARNINGS RELEASE - RECONCILEMENT OF NON-U.S. GAAP MEASURES 1 | |||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||
September 30 | June 30 | March 31 | December 31 | September 30 | September 30 | ||||||||||||||||||||||
(Dollars in millions) (Unaudited) | 2019 | 2019 | 2019 | 2018 | 2018 | 2019 | 2018 | ||||||||||||||||||||
Net interest income | $1,510 | $1,535 | $1,544 | $1,547 | $1,512 | $4,589 | $4,440 | ||||||||||||||||||||
Fully taxable-equivalent ("FTE") adjustment | 22 | 22 | 23 | 23 | 22 | 66 | 65 | ||||||||||||||||||||
Net interest income-FTE 2 | 1,532 | 1,557 | 1,567 | 1,570 | 1,534 | 4,655 | 4,505 | ||||||||||||||||||||
Noninterest income | 843 | 1,025 | 784 | 818 | 782 | 2,653 | 2,408 | ||||||||||||||||||||
Total revenue-FTE 2 | $2,375 | $2,582 | $2,351 | $2,388 | $2,316 | $7,308 | $6,913 | ||||||||||||||||||||
Return on average common shareholders’ equity | 9.83 | % | 11.51 | % | 10.06 | % | 11.54 | % | 13.01 | % | 10.46 | % | 12.33 | % | |||||||||||||
Impact of removing average intangible assets and related pre-tax amortization, other than residential and commercial MSRs | 3.40 | 4.22 | 3.85 | 4.59 | 5.05 | 3.81 | 4.81 | ||||||||||||||||||||
Return on average tangible common shareholders' equity 3 | 13.23 | % | 15.73 | % | 13.91 | % | 16.13 | % | 18.06 | % | 14.27 | % | 17.14 | % | |||||||||||||
Net interest margin | 3.01 | % | 3.12 | % | 3.22 | % | 3.22 | % | 3.22 | % | 3.12 | % | 3.22 | % | |||||||||||||
Impact of FTE adjustment | 0.05 | 0.04 | 0.05 | 0.05 | 0.05 | 0.04 | 0.04 | ||||||||||||||||||||
Net interest margin-FTE 2 | 3.06 | % | 3.16 | % | 3.27 | % | 3.27 | % | 3.27 | % | 3.16 | % | 3.26 | % | |||||||||||||
Noninterest expense | $1,474 | $1,638 | $1,489 | $1,482 | $1,384 | $4,602 | $4,191 | ||||||||||||||||||||
Total revenue | 2,353 | 2,560 | 2,328 | 2,365 | 2,294 | 7,242 | 6,848 | ||||||||||||||||||||
Efficiency ratio 4 | 62.63 | % | 64.00 | % | 63.97 | % | 62.66 | % | 60.34 | % | 63.55 | % | 61.20 | % | |||||||||||||
Impact of FTE adjustment | (0.57 | ) | (0.55 | ) | (0.62 | ) | (0.60 | ) | (0.58 | ) | (0.58 | ) | (0.58 | ) | |||||||||||||
Efficiency ratio-FTE 2, 4 | 62.06 | 63.45 | 63.35 | 62.06 | 59.76 | 62.97 | 60.62 | ||||||||||||||||||||
Impact of excluding amortization related to intangible assets and certain tax credits | (0.89 | ) | (0.68 | ) | (0.65 | ) | (0.93 | ) | (0.82 | ) | (0.74 | ) | (0.73 | ) | |||||||||||||
Tangible efficiency ratio-FTE 2, 5 | 61.17 | 62.77 | 62.70 | 61.13 | 58.94 | 62.23 | 59.89 | ||||||||||||||||||||
Impact of excluding unusual or infrequent items | (1.26 | ) | (3.78 | ) | (1.92 | ) | (2.50 | ) | — | (2.34 | ) | — | |||||||||||||||
Adjusted tangible efficiency ratio-FTE 2, 5, 6 | 59.91 | % | 58.99 | % | 60.78 | % | 58.63 | % | 58.94 | % | 59.89 | % | 59.89 | % | |||||||||||||
SunTrust Banks, Inc. and Subsidiaries APPENDIX A TO THE EARNINGS RELEASE - RECONCILEMENT OF NON-U.S. GAAP MEASURES, continued 1 | |||||||||||||||||||
September 30 | June 30 | March 31 | December 31 | September 30 | |||||||||||||||
(Dollars in millions, except per share data) (Unaudited) | 2019 | 2019 | 2019 | 2018 | 2018 | ||||||||||||||
Total shareholders' equity | $26,489 | $25,862 | $24,823 | $24,280 | $24,139 | ||||||||||||||
Goodwill, net of deferred taxes of $163 million, $163 million, $162 million, $160 million, and $160 million, respectively | (6,168 | ) | (6,168 | ) | (6,169 | ) | (6,171 | ) | (6,171 | ) | |||||||||
Other intangible assets (including residential and commercial MSRs) | (1,648 | ) | (1,796 | ) | (1,963 | ) | (2,062 | ) | (2,140 | ) | |||||||||
Residential and commercial MSRs | 1,636 | 1,783 | 1,949 | 2,049 | 2,126 | ||||||||||||||
Tangible equity 2 | 20,309 | 19,681 | 18,640 | 18,096 | 17,954 | ||||||||||||||
Noncontrolling interest | (101 | ) | (103 | ) | (101 | ) | (103 | ) | (101 | ) | |||||||||
Preferred stock | (2,025 | ) | (2,025 | ) | (2,025 | ) | (2,025 | ) | (2,025 | ) | |||||||||
Tangible common equity 2 | $18,183 | $17,553 | $16,514 | $15,968 | $15,828 | ||||||||||||||
Total assets | $227,368 | $222,288 | $220,425 | $215,543 | $211,276 | ||||||||||||||
Goodwill | (6,331 | ) | (6,331 | ) | (6,331 | ) | (6,331 | ) | (6,331 | ) | |||||||||
Other intangible assets (including residential and commercial MSRs) | (1,648 | ) | (1,796 | ) | (1,963 | ) | (2,062 | ) | (2,140 | ) | |||||||||
Residential and commercial MSRs | 1,636 | 1,783 | 1,949 | 2,049 | 2,126 | ||||||||||||||
Tangible assets | $221,025 | $215,944 | $214,080 | $209,199 | $204,931 | ||||||||||||||
Tangible equity to tangible assets 2 | 9.19 | % | 9.11 | % | 8.71 | % | 8.65 | % | 8.76 | % | |||||||||
Tangible common equity to tangible assets 2 | 8.23 | 8.13 | 7.71 | 7.63 | 7.72 | ||||||||||||||
Tangible book value per common share 3 | $40.58 | $39.54 | $37.22 | $35.73 | $34.51 | ||||||||||||||
SunTrust Banks, Inc. and Subsidiaries CONSUMER BUSINESS SEGMENT | |||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
September 30 | September 30 | ||||||||||||||||||||
(Dollars in millions) (Unaudited) | 2019 | 2018 | % Change 4 | 2019 | 2018 | % Change | |||||||||||||||
Statements of Income: | |||||||||||||||||||||
Net interest income | $1,068 | $1,056 | 1 | % | $3,222 | $3,087 | 4 | % | |||||||||||||
FTE adjustment | — | — | — | — | — | — | |||||||||||||||
Net interest income-FTE 1 | 1,068 | 1,056 | 1 | 3,222 | 3,087 | 4 | |||||||||||||||
Provision for credit losses 2 | 77 | 36 | NM | 204 | 102 | 100 | |||||||||||||||
Net interest income-FTE - after provision for credit losses 1 | 991 | 1,020 | (3 | ) | 3,018 | 2,985 | 1 | ||||||||||||||
Noninterest income before net securities gains/(losses) | 479 | 444 | 8 | 1,415 | 1,347 | 5 | |||||||||||||||
Net securities gains/(losses) | — | — | — | — | — | — | |||||||||||||||
Total noninterest income | 479 | 444 | 8 | 1,415 | 1,347 | 5 | |||||||||||||||
Noninterest expense before amortization | 1,025 | 991 | 3 | 3,028 | 2,983 | 2 | |||||||||||||||
Amortization | — | — | — | 1 | 1 | — | |||||||||||||||
Total noninterest expense | 1,025 | 991 | 3 | 3,029 | 2,984 | 2 | |||||||||||||||
Income-FTE - before provision for income taxes 1 | 445 | 473 | (6 | ) | 1,404 | 1,348 | 4 | ||||||||||||||
Provision for income taxes | 102 | 108 | (6 | ) | 321 | 305 | 5 | ||||||||||||||
Tax credit adjustment | — | — | — | — | — | — | |||||||||||||||
FTE adjustment | — | — | — | — | — | — | |||||||||||||||
Net income including income attributable to noncontrolling interest | 343 | 365 | (6 | ) | 1,083 | 1,043 | 4 | ||||||||||||||
Less: Net income attributable to noncontrolling interest | — | — | — | — | — | — | |||||||||||||||
Net income | $343 | $365 | (6 | )% | $1,083 | $1,043 | 4 | % | |||||||||||||
Total revenue | $1,547 | $1,500 | 3 | % | $4,637 | $4,434 | 5 | % | |||||||||||||
Total revenue-FTE 1 | 1,547 | 1,500 | 3 | 4,637 | 4,434 | 5 | |||||||||||||||
Selected Average Balances: | |||||||||||||||||||||
Total LHFI | $80,414 | $75,234 | 7 | % | $79,473 | $74,907 | 6 | % | |||||||||||||
Goodwill | 4,390 | 4,390 | — | 4,390 | 4,348 | 1 | |||||||||||||||
Other intangible assets excluding residential MSRs | 1 | 2 | (50 | ) | 1 | 3 | (67 | ) | |||||||||||||
Total assets | 90,329 | 85,933 | 5 | 89,026 | 84,909 | 5 | |||||||||||||||
Consumer and commercial deposits | 114,132 | 111,950 | 2 | 113,067 | 111,008 | 2 | |||||||||||||||
Performance Ratios: | |||||||||||||||||||||
Efficiency ratio | 66.30 | % | 66.03 | % | 65.32 | % | 67.32 | % | |||||||||||||
Impact of FTE adjustment | — | — | — | — | |||||||||||||||||
Efficiency ratio-FTE 1 | 66.30 | 66.03 | 65.32 | 67.32 | |||||||||||||||||
Impact of excluding amortization and associated funding cost of intangible assets | (1.17 | ) | (1.15 | ) | (1.14 | ) | (1.15 | ) | |||||||||||||
Tangible efficiency ratio-FTE 1, 3 | 65.13 | % | 64.88 | % | 64.18 | % | 66.17 | % | |||||||||||||
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 CONSUMER BUSINESS SEGMENT, continued | |||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
September 30 | September 30 | ||||||||||||||||||||
(Dollars in millions) (Unaudited) | 2019 | 2018 | % Change 1 | 2019 | 2018 | % Change | |||||||||||||||
Residential Mortgage Production Data: | |||||||||||||||||||||
Channel mix: | |||||||||||||||||||||
Retail | $2,618 | $1,860 | 41 | % | $6,291 | $5,853 | 7 | % | |||||||||||||
Correspondent | 4,888 | 4,281 | 14 | 10,094 | 11,691 | (14 | ) | ||||||||||||||
Total production | $7,506 | $6,141 | 22 | % | $16,385 | $17,544 | (7 | )% | |||||||||||||
Channel mix - percent: | |||||||||||||||||||||
Retail | 35 | % | 30 | % | 38 | % | 33 | % | |||||||||||||
Correspondent | 65 | 70 | 62 | 67 | |||||||||||||||||
Total production | 100 | % | 100 | % | 100 | % | 100 | % | |||||||||||||
Purchase and refinance mix: | |||||||||||||||||||||
Refinance | $3,263 | $1,202 | NM | $5,842 | $4,303 | 36 | % | ||||||||||||||
Purchase | 4,243 | 4,939 | (14 | ) | 10,543 | 13,241 | (20 | ) | |||||||||||||
Total production | $7,506 | $6,141 | 22 | % | $16,385 | $17,544 | (7 | )% | |||||||||||||
Purchase and refinance mix - percent: | |||||||||||||||||||||
Refinance | 43 | % | 20 | % | 36 | % | 25 | % | |||||||||||||
Purchase | 57 | 80 | 64 | 75 | |||||||||||||||||
Total production | 100 | % | 100 | % | 100 | % | 100 | % | |||||||||||||
Applications | $9,883 | $7,588 | 30 | % | $24,937 | $22,915 | 9 | % | |||||||||||||
Residential Mortgage Servicing Data (End of Period): | |||||||||||||||||||||
Total unpaid principal balance ("UPB") of residential mortgages serviced | $165,558 | $170,480 | (3 | )% | |||||||||||||||||
Total UPB of residential mortgages serviced for others | 135,029 | 139,955 | (4 | ) | |||||||||||||||||
Net carrying value of residential MSRs | 1,564 | 2,062 | (24 | ) | |||||||||||||||||
Ratio of net carrying value of residential MSRs to total UPB of residential mortgages serviced for others | 1.158 | % | 1.473 | % | |||||||||||||||||
Assets Under Administration (End of Period): | |||||||||||||||||||||
Trust and institutional managed assets | $44,240 | $44,647 | (1 | )% | |||||||||||||||||
Retail brokerage managed assets | 19,168 | 17,516 | 9 | ||||||||||||||||||
Total managed assets | 63,408 | 62,163 | 2 | ||||||||||||||||||
Non-managed assets | 99,328 | 98,698 | 1 | ||||||||||||||||||
Total assets under administration | $162,736 | $160,861 | 1 | % | |||||||||||||||||
1 | “NM” - Not meaningful. Those changes over 100 percent were not considered to be meaningful. |
SunTrust Banks, Inc. and Subsidiaries WHOLESALE BUSINESS SEGMENT | |||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
September 30 | September 30 | ||||||||||||||||||||
(Dollars in millions) (Unaudited) | 2019 | 2018 | % Change 4 | 2019 | 2018 | % Change 4 | |||||||||||||||
Statements of Income: | |||||||||||||||||||||
Net interest income | $529 | $539 | (2 | )% | $1,607 | $1,580 | 2 | % | |||||||||||||
FTE adjustment | 21 | 22 | (5 | ) | 65 | 63 | 3 | ||||||||||||||
Net interest income-FTE 1 | 550 | 561 | (2 | ) | 1,672 | 1,643 | 2 | ||||||||||||||
Provision for credit losses 2 | 56 | 24 | NM | 208 | 19 | NM | |||||||||||||||
Net interest income-FTE - after provision for credit losses 1 | 494 | 537 | (8 | ) | 1,464 | 1,624 | (10 | ) | |||||||||||||
Noninterest income before net securities gains/(losses) | 368 | 368 | — | 1,137 | 1,096 | 4 | |||||||||||||||
Net securities gains/(losses) | — | — | — | — | — | — | |||||||||||||||
Total noninterest income | 368 | 368 | — | 1,137 | 1,096 | 4 | |||||||||||||||
Noninterest expense before amortization | 436 | 413 | 6 | 1,329 | 1,257 | 6 | |||||||||||||||
Amortization | 21 | 19 | 11 | 53 | 50 | 6 | |||||||||||||||
Total noninterest expense | 457 | 432 | 6 | 1,382 | 1,307 | 6 | |||||||||||||||
Income-FTE - before provision for income taxes 1 | 405 | 473 | (14 | ) | 1,219 | 1,413 | (14 | ) | |||||||||||||
Provision for income taxes | 40 | 49 | (18 | ) | 110 | 171 | (36 | ) | |||||||||||||
Tax credit adjustment | 35 | 41 | (15 | ) | 114 | 100 | 14 | ||||||||||||||
FTE adjustment | 21 | 22 | (5 | ) | 65 | 63 | 3 | ||||||||||||||
Net income including income attributable to noncontrolling interest | 309 | 361 | (14 | ) | 930 | 1,079 | (14 | ) | |||||||||||||
Less: Net income attributable to noncontrolling interest | — | — | — | — | — | — | |||||||||||||||
Net income | $309 | $361 | (14 | )% | $930 | $1,079 | (14 | )% | |||||||||||||
Total revenue | $897 | $907 | (1 | )% | $2,744 | $2,676 | 3 | % | |||||||||||||
Total revenue-FTE 1 | 918 | 929 | (1 | ) | 2,809 | 2,739 | 3 | ||||||||||||||
Selected Average Balances: | |||||||||||||||||||||
Total LHFI | $77,107 | $70,669 | 9 | % | $76,481 | $69,375 | 10 | % | |||||||||||||
Goodwill | 1,941 | 1,941 | — | 1,941 | 1,983 | (2 | ) | ||||||||||||||
Other intangible assets excluding residential MSRs | 80 | 75 | 7 | 79 | 76 | 4 | |||||||||||||||
Total assets | 93,584 | 84,909 | 10 | 92,046 | 83,193 | 11 | |||||||||||||||
Consumer and commercial deposits | 45,817 | 44,702 | 2 | 44,777 | 45,247 | (1 | ) | ||||||||||||||
Performance Ratios: | |||||||||||||||||||||
Efficiency ratio | 51.10 | % | 47.62 | % | 50.33 | % | 48.81 | % | |||||||||||||
Impact of FTE adjustment | (1.17 | ) | (1.11 | ) | (1.16 | ) | (1.13 | ) | |||||||||||||
Efficiency ratio-FTE 1 | 49.93 | 46.51 | 49.17 | 47.68 | |||||||||||||||||
Impact of excluding amortization and associated funding cost of intangible assets | (2.92 | ) | (2.60 | ) | (2.52 | ) | (2.42 | ) | |||||||||||||
Tangible efficiency ratio-FTE 1, 3 | 47.01 | % | 43.91 | % | 46.65 | % | 45.26 | % | |||||||||||||
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 TOTAL CORPORATE OTHER (including Reconciling Items) | |||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
September 30 | September 30 | ||||||||||||||||||||
(Dollars in millions) (Unaudited) | 2019 | 2018 | % Change 4 | 2019 | 2018 | % Change 4 | |||||||||||||||
Statements of Income: | |||||||||||||||||||||
Net interest income 1 | ($87 | ) | ($83 | ) | (5 | )% | ($240 | ) | ($227 | ) | (6 | )% | |||||||||
FTE adjustment | 1 | — | NM | 1 | 2 | (50 | ) | ||||||||||||||
Net interest income-FTE 2 | (86 | ) | (83 | ) | (4 | ) | (239 | ) | (225 | ) | (6 | ) | |||||||||
(Benefit)/provision for credit losses 3 | (1 | ) | 1 | NM | — | — | — | ||||||||||||||
Net interest income-FTE - after (benefit)/provision for credit losses 2 | (85 | ) | (84 | ) | (1 | ) | (239 | ) | (225 | ) | (6 | ) | |||||||||
Noninterest income before net securities gains/(losses) | (8 | ) | (30 | ) | 73 | 139 | (36 | ) | NM | ||||||||||||
Net securities gains/(losses) | 4 | — | NM | (38 | ) | 1 | NM | ||||||||||||||
Total noninterest income | (4 | ) | (30 | ) | 87 | 101 | (35 | ) | NM | ||||||||||||
Noninterest expense before amortization | (8 | ) | (39 | ) | 79 | 191 | (100 | ) | NM | ||||||||||||
Amortization | — | — | — | — | — | — | |||||||||||||||
Total noninterest expense | (8 | ) | (39 | ) | 79 | 191 | (100 | ) | NM | ||||||||||||
(Loss)/income-FTE - before (benefit)/provision for income taxes 2 | (81 | ) | (75 | ) | (8 | ) | (329 | ) | (160 | ) | NM | ||||||||||
(Benefit)/provision for income taxes | (20 | ) | (62 | ) | 68 | (101 | ) | (64 | ) | (58 | ) | ||||||||||
Tax credit adjustment | (35 | ) | (41 | ) | 15 | (114 | ) | (100 | ) | (14 | ) | ||||||||||
FTE adjustment | 1 | — | NM | 1 | 2 | (50 | ) | ||||||||||||||
Net (loss)/income including income attributable to noncontrolling interest | (27 | ) | 28 | NM | (115 | ) | 2 | NM | |||||||||||||
Less: Net income attributable to noncontrolling interest | 2 | 2 | — | 7 | 7 | — | |||||||||||||||
Net (loss)/income | ($29 | ) | $26 | NM | ($122 | ) | ($5 | ) | NM | ||||||||||||
Total revenue | ($91 | ) | ($113 | ) | 19 | ($139 | ) | ($262 | ) | 47 | % | ||||||||||
Total revenue-FTE 2 | (90 | ) | (113 | ) | 20 | (138 | ) | (260 | ) | 47 | |||||||||||
Selected Average Balances: | |||||||||||||||||||||
Total LHFI | $91 | $92 | (1 | )% | $90 | $86 | 5 | % | |||||||||||||
Securities available for sale | 31,425 | 31,541 | — | 31,711 | 31,530 | 1 | |||||||||||||||
Goodwill | — | — | — | — | — | — | |||||||||||||||
Other intangible assets excluding residential MSRs | — | 1 | (100 | ) | — | — | — | ||||||||||||||
Total assets | 40,834 | 36,553 | 12 | 39,947 | 37,268 | 7 | |||||||||||||||
Consumer and commercial deposits | 2,584 | 2,696 | (4 | ) | 2,935 | 2,904 | 1 | ||||||||||||||
Other Information (End of Period): | |||||||||||||||||||||
Duration of securities available for sale portfolio (in years) | 3.4 | 4.8 | |||||||||||||||||||
Net interest income interest rate sensitivity: | |||||||||||||||||||||
% Change in net interest income under: | |||||||||||||||||||||
Instantaneous 200 basis point increase in rates over next 12 months | 0.9 | % | 2.0 | % | |||||||||||||||||
Instantaneous 100 basis point increase in rates over next 12 months | 0.8 | % | 1.1 | % | |||||||||||||||||
Instantaneous 50 basis point decrease in rates over next 12 months | (1.4 | )% | (0.8 | )% | |||||||||||||||||
2 | Net interest income-FTE, (Loss)/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 | (Benefit)/provision for credit losses represents net charge-offs by segment combined with an allocation to the segments for the (benefit)/provision attributable to quarterly changes in the Allowance for loan and lease losses and Unfunded commitments reserve balances. |
4 | “NM” - Not meaningful. Those changes over 100 percent were not considered to be meaningful. |
SunTrust Banks, Inc. and Subsidiaries CONSOLIDATED SEGMENT TOTALS | |||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
September 30 | September 30 | ||||||||||||||||||||
(Dollars in millions) (Unaudited) | 2019 | 2018 | % Change 2 | 2019 | 2018 | % Change 2 | |||||||||||||||
Statements of Income: | |||||||||||||||||||||
Net interest income | $1,510 | $1,512 | — | % | $4,589 | $4,440 | 3 | % | |||||||||||||
FTE adjustment | 22 | 22 | — | 66 | 65 | 2 | |||||||||||||||
Net interest income-FTE 1 | 1,532 | 1,534 | — | 4,655 | 4,505 | 3 | |||||||||||||||
Provision for credit losses | 132 | 61 | NM | 412 | 121 | NM | |||||||||||||||
Net interest income-FTE - after provision for credit losses 1 | 1,400 | 1,473 | (5 | ) | 4,243 | 4,384 | (3 | ) | |||||||||||||
Noninterest income before net securities gains/(losses) | 839 | 782 | 7 | 2,691 | 2,407 | 12 | |||||||||||||||
Net securities gains/(losses) | 4 | — | NM | (38 | ) | 1 | NM | ||||||||||||||
Total noninterest income | 843 | 782 | 8 | 2,653 | 2,408 | 10 | |||||||||||||||
Noninterest expense before amortization | 1,453 | 1,365 | 6 | 4,548 | 4,140 | 10 | |||||||||||||||
Amortization | 21 | 19 | 11 | 54 | 51 | 6 | |||||||||||||||
Total noninterest expense | 1,474 | 1,384 | 7 | 4,602 | 4,191 | 10 | |||||||||||||||
Income-FTE - before provision for income taxes 1 | 769 | 871 | (12 | ) | 2,294 | 2,601 | (12 | ) | |||||||||||||
Provision for income taxes | 122 | 95 | 28 | 330 | 412 | (20 | ) | ||||||||||||||
Tax credit adjustment | — | — | — | — | — | — | |||||||||||||||
FTE adjustment | 22 | 22 | — | 66 | 65 | 2 | |||||||||||||||
Net income including income attributable to noncontrolling interest | 625 | 754 | (17 | ) | 1,898 | 2,124 | (11 | ) | |||||||||||||
Less: Net income attributable to noncontrolling interest | 2 | 2 | — | 7 | 7 | — | |||||||||||||||
Net income | $623 | $752 | (17 | )% | $1,891 | $2,117 | (11 | )% | |||||||||||||
Total revenue | $2,353 | $2,294 | 3 | % | $7,242 | $6,848 | 6 | % | |||||||||||||
Total revenue-FTE 1 | 2,375 | 2,316 | 3 | 7,308 | 6,913 | 6 | |||||||||||||||
Selected Average Balances: | |||||||||||||||||||||
Total LHFI | $157,612 | $145,995 | 8 | % | $156,044 | $144,368 | 8 | % | |||||||||||||
Goodwill | 6,331 | 6,331 | — | 6,331 | 6,331 | — | |||||||||||||||
Other intangible assets excluding residential MSRs | 81 | 78 | 4 | 80 | 79 | 1 | |||||||||||||||
Total assets | 224,747 | 207,395 | 8 | 221,019 | 205,370 | 8 | |||||||||||||||
Consumer and commercial deposits | 162,533 | 159,348 | 2 | 160,779 | 159,159 | 1 | |||||||||||||||
Performance Ratios: | |||||||||||||||||||||
Efficiency ratio | 62.63 | % | 60.34 | % | 63.55 | % | 61.20 | % | |||||||||||||
Impact of FTE adjustment | (0.57 | ) | (0.58 | ) | (0.58 | ) | (0.58 | ) | |||||||||||||
Efficiency ratio-FTE 1 | 62.06 | 59.76 | 62.97 | 60.62 | |||||||||||||||||
Impact of excluding amortization and associated funding cost of intangible assets | (0.89 | ) | (0.82 | ) | (0.74 | ) | (0.73 | ) | |||||||||||||
Tangible efficiency ratio-FTE 1 | 61.17 | % | 58.94 | % | 62.23 | % | 59.89 | % | |||||||||||||
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. See Appendix A for additional information and reconcilements of non-U.S. GAAP performance measures. |
2 | “NM” - Not meaningful. Those changes over 100 percent were not considered to be meaningful. |
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