-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, WXgPsbszt9JyaSU+TTk53a+0EKSKxhjZOOKOWgJVWcraCl5Pho+dt4lhMKgdEUNl JT6RyfHr0MYAMfgdkhTzcg== 0000750556-96-000009.txt : 19961118 0000750556-96-000009.hdr.sgml : 19961118 ACCESSION NUMBER: 0000750556-96-000009 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19960930 FILED AS OF DATE: 19961114 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: SUNTRUST BANKS INC CENTRAL INDEX KEY: 0000750556 STANDARD INDUSTRIAL CLASSIFICATION: NATIONAL COMMERCIAL BANKS [6021] IRS NUMBER: 581575035 STATE OF INCORPORATION: GA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-08918 FILM NUMBER: 96665143 BUSINESS ADDRESS: STREET 1: 303 PEACHTREE STREET NE CITY: ATLANTA STATE: GA ZIP: 30308 BUSINESS PHONE: 4045887711 MAIL ADDRESS: STREET 1: 303 PEACHTREE STREET NE CITY: ATLANTA STATE: GA ZIP: 30308 10-Q 1 FORM 10-Q SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Quarterly Period Ended September 30, 1996 Commission File Number 1-8918 SUNTRUST BANKS, INC. (Exact name of registrant as specified in its charter) Georgia 58-1575035 (State or other jurisdiction (I.R.S. Employer of incorporation or organization) Identification No.) 303 Peachtree Street, N.E., Atlanta, Georgia 30308 (Address of principal executive offices) (Zip Code) (404) 588-7711 (Registrant's telephone number, including area code) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes __X__ No _____ At October 31, 1996, 223,014,624 shares of the Registrant's Common Stock, $1.00 par value were outstanding. Page 1 PART I - FINANCIAL INFORMATION Item 1. Financial Statements Statement Description Page No. Consolidated Statements of Income Nine months ended September 30, 1996 and 1995 4 Consolidated Balance Sheets September 30, 1996, December 31, 1995 and 5 September 30, 1995 Consolidated Statements of Cash Flow Nine months ended September 30, 1996 and 1995 6 Consolidated Statements of Shareholders' Equity Nine months ended September 30, 1996 and 1995 7 The above mentioned financial statements have been prepared in accordance with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X, and accordingly do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. However, in the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the nine months ended September 30, 1996 are not necessarily indicative of the results that may be expected for the full year 1996. Fully diluted per common share data have not been presented because there were no material differences between such amounts and the per common share data as presented. Earnings per common share were based on the weighted average common equivalent shares outstanding for the periods presented. Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations MD&A of the Registrant is included on pages 9 through 20. Page 2 CONSOLIDATED STATEMENTS OF INCOME
Three Months Nine Months Ended September 30 Ended September 30 (Dollars in thousands except per share data) 1996 1995 1996 1995 Interest Income Interest and fees on loans $ 675,846 $ 632,413 $ 1,980,204 $ 1,852,985 Interest and dividends on investment securities Taxable interest 115,108 99,743 331,496 301,793 Tax-exempt interest 11,148 13,714 35,188 42,708 Dividends (1) 7,927 6,920 24,256 20,991 Interest on funds sold 9,127 6,348 25,006 23,944 Interest on deposits in other banks 285 280 846 780 Other interest 917 461 2,400 1,609 Total interest income 820,358 759,879 2,399,396 2,244,810 Interest Expense Interest on deposits 273,788 251,367 811,616 738,975 Interest on funds purchased 60,778 58,750 171,195 170,331 Interest on other short-term borrowings 9,327 14,818 36,003 40,854 Interest on long-term debt 22,076 17,034 58,737 50,378 Total interest expense 365,969 341,969 1,077,551 1,000,538 Net Interest Income 454,389 417,910 1,321,845 1,244,272 Provision for loan losses 29,933 29,131 81,155 80,820 Net interest income after provision for loan losses 424,456 388,779 1,240,690 1,163,452 Noninterest Income Trust income 68,170 64,762 209,320 195,123 Service charges on deposit accounts 57,929 54,000 171,745 158,135 Other charges and fees 42,259 33,321 126,727 94,898 Credit card fees 15,720 15,095 49,298 46,968 Securities gains (losses) (500) 1,054 14,593 605 Other noninterest income 13,720 14,385 39,365 38,016 Total noninterest income 197,298 182,617 611,048 533,745 Noninterest Expense Salaries and other compensation 194,647 170,079 563,767 496,675 Employee benefits 25,999 25,138 81,757 78,420 Net occupancy expense 34,897 33,637 103,034 96,925 Equipment expense 29,526 25,763 85,022 78,728 Operating supplies 8,938 8,006 28,523 23,654 Marketing and community relations 19,227 10,272 53,087 37,621 Postage and delivery 10,490 8,811 30,143 27,135 Other noninterest expense 65,919 81,374 238,704 231,746 Total noninterest expense 389,643 363,080 1,184,037 1,070,904 Income before income taxes 232,111 208,316 667,701 626,293 Provision for income taxes 76,523 64,616 209,597 205,681 Net Income $ 155,588 $ 143,700 $ 458,104 $ 420,612 Average common equivalent shares 222,682,956 226,515,071 224,038,986 227,324,916 Net income per average common share $ 0.70 $ 0.63 $ 2.04 $ 1.83 Dividends declared per common share 0.20 0.18 0.60 0.54 (1) Includes dividends on common stock of The Coca-Cola Company 6,033 5,309 18,100 15,928 See notes to consolidated financial statements
Page 3 CONSOLIDATED BALANCE SHEETS
September 30 December 31 September 30 (Dollars in thousands) 1996 1995 1995 Assets Cash and due from banks $ 2,460,275 $ 2,641,365 $ 1,995,426 Interest-bearing deposits in other banks 12,700 28,787 12,342 Trading account 164,363 96,613 34,354 Investment securities (1) 10,759,252 9,676,934 9,589,466 Funds sold 768,427 1,299,407 388,860 Loans 33,824,308 31,301,389 30,000,794 Reserve for loan losses (724,677) (698,864) (692,828) Net loans 33,099,631 30,602,525 29,307,966 Premises and equipment 753,664 729,731 728,810 Intangible assets 280,264 271,926 257,131 Customers' acceptance liability 441,584 234,809 200,027 Other assets 892,532 889,375 842,745 Total assets $ 49,632,692 $ 46,471,472 $ 43,357,127 Liabilities Noninterest-bearing deposits $ 7,940,714 $ 7,821,377 $ 6,835,552 Interest-bearing deposits 27,033,446 25,361,817 24,480,719 Total deposits 34,974,160 33,183,194 31,316,271 Funds purchased 5,346,619 5,483,751 4,503,980 Other short-term borrowings 878,118 894,470 939,325 Long-term debt 1,563,906 1,002,397 1,002,150 Acceptances outstanding 441,584 234,809 200,027 Other liabilities 1,649,592 1,403,270 1,328,531 Total liabilities 44,853,979 42,201,891 39,290,284 Shareholders' Equity Preferred stock, no par value; 50,000,000 shares authorized; none issued Common stock, $1.00 par value; 350,000,000 shares authorized (2) 225,608 243,644 243,644 Additional paid in capital 313,584 321,541 322,438 Retained earnings 2,864,131 3,417,801 3,317,985 Treasury stock and other (3) (131,799) (871,953) (848,838) Realized shareholders' equity 3,271,524 3,111,033 3,035,229 Unrealized gains (losses) on investment securities, net of taxes 1,507,189 1,158,548 1,031,614 Total shareholders' equity 4,778,713 4,269,581 4,066,843 Total liabilities and shareholders' equity $ 49,632,692 $ 46,471,472 $ 43,357,127 (1) Includes unrealized gains (losses) on investment securities $ 2,435,138 $ 1,873,141 $ 1,667,724 (2) Common shares outstanding 222,967,776 225,725,779 226,100,925 (3) Treasury shares of common stock 2,640,281 17,918,505 17,543,359 See notes to consolidated financial statements.
Page 4 CONSOLIDATED STATEMENTS OF CASH FLOW
Nine Months Ended September 30 (In thousands) 1996 1995 Cash flow from operating activities: Net income $ 458,104 $ 420,612 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 95,741 100,359 Provision for loan losses 81,155 80,820 Provision for losses on other real estate 2,974 2,911 Amortization of compensation element of restricted stock 7,372 4,185 Securities (gains) and losses, net (14,593) (605) (Gains) and losses on sale of equipment, other real estate and repossessed assets, net (6,372) (14,287) Recognition of unearned loan income (151,780) (85,516) Change in period-end balances of: Trading account (67,750) 63,756 Interest receivable (9,939) (12,128) Prepaid expenses (35,531) (16,526) Other assets 32,152 (30,908) Taxes payable (10,019) 22,124 Interest payable (31,886) 32,445 Other accrued expenses 82,290 64,212 Net cash provided by operating activities 431,918 631,454 Cash flow from investing activities: Proceeds from maturities of investment securities 1,363,706 1,073,480 Proceeds from sales of investment securities 714,355 298,319 Purchase of investment securities (2,573,527) (768,281) Net (increase) decrease in loans (2,349,224) (1,338,212) Capital expenditures (93,233) (93,641) Proceeds from sale of equipment, other real estate and repossessed assets 4,495 92,213 Net inflow (outflow) from bank acquisitions (1,207) (25,493) Other (24,276) (5,456) Net cash provided(used) by investing activities (2,958,911) (767,071) Cash flow from financing activities: Net increase (decrease) in deposits 1,712,587 (1,132,788) Net increase (decrease) in funds purchased and other short-term borrowings (156,391) 298,196 Proceeds from the issuance of long-term debt 661,888 106,495 Repayment of long-term debt (100,327) (34,792) Proceeds from the exercise of stock options 4,409 4,043 Payments to acquire treasury stock (189,168) (177,064) Dividends paid (134,162) (123,612) Net cash provided by financing activities 1,798,836 (1,059,522) Net decrease in cash and cash equivalents (728,157) (1,195,139) Cash and cash equivalents at beginning of period 3,969,559 3,591,767 Cash and cash equivalents at end of period $ 3,241,402 $ 2,396,628 Supplemental Disclosure Interest paid $ 1,109,437 $ 1,032,983 Taxes paid 220,130 191,506 See notes to consolidated financial statements.
Page 5 CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
Unrealized Additional Treasury Gains (Losses) Common Paid in Retained Stock and on Securities (In thousands) Stock Capital Earnings Other Net of Taxes Total Balance, January 1, 1995 $ 130,461 $ 438,309 $ 3,020,985 $ (706,499) $ 570,075 $ 3,453,331 Stock dividend 113,183 (113,183) Balance, January 1, 1995, restated 243,644 325,126 3,020,985 (706,499) 570,075 3,453,331 Net income - - 420,612 - - 420,612 Cash dividends declared on common stock, $0.54 per share - - (123,612) - - (123,612) Proceeds from exercise of stock options - (7,154) - 11,197 - 4,043 Acquisition of treasury stock - - - (177,064) - (177,064) Issuance of treasury stock for 401(k) - 1,104 - 9,011 - 10,115 Issuance, net of forfeitures, of treasury stock as restricted stock - 3,362 - 12,863 - 16,225 Issuance of treasury stock for acquisition - - - 13,695 - 13,695 Compensation element of restricted stock - - - (16,226) - (16,226) Amortization of compensation element of restricted stock - - - 4,185 - 4,185 Change in unrealized gains (losses) on securities, net of taxes - - - 461,539 461,539 Balance, September 30, 1995 $ 243,644 $ 322,438 $ 3,317,985 $ (848,838) $ 1,031,614 $ 4,066,843 Balance, January 1, 1996 $ 130,461 $ 434,724 $ 3,417,801 $ (871,953) $ 1,158,548 $ 4,269,581 Stock dividend 113,183 (113,183 Balance, January 1, 1996, restated 243,644 321,541 3,417,801 (871,953) 1,158,548 4,269,581 Net income - - 458,104 - - 458,104 Cash dividends declared on common stock, $0.60 per share - - (134,150) - - (134,150) Proceeds from exercise of stock options - (10,536) - 14,945 - 4,409 Acquisition of treasury stock - - - (189,168) - (189,168) Issuance of treasury stock for 401(k) - 1,605 - 6,683 - 8,288 Issuance, net of forfeitures, of treasury stock as restricted stock - 974 - 18,523 - 19,497 Issuance of treasury stock for acquisition - - - 5,636 - 5,636 Compensation element of restricted stock - - - (19,497) - (19,497) Retirement of treasury stock (18,036) - (877,624) 895,660 - - Amortization of compensation element of restricted stock - - - 7,372 - 7,372 Change in unrealized gains (losses) on securities, net of taxes - - - - 348,641 348,641 Balance, September 30, 1996 $ 225,608 $ 313,584 $ 2,864,131 $ (131,799) $ 1,507,189 $ 4,778,713 See notes to consolidated financial statements.
Page 6 Notes to Consolidated Financial Statements Note 1 - Accounting Policies The consolidated financial statements include the accounts of the Company and its subsidiaries. All significant intercompany accounts and transactions have been eliminated. These financial statements should be read in conjunction with the Company's annual financial statements and related notes for the year ended December 31, 1995. Note 2 - Stock Dividend On May 21, 1996, the Company paid a stock dividend of one share of SunTrust common stock for each outstanding share of SunTrust common stock to shareholders of record on May 1, 1996. The consolidated financial statements for prior periods have been restated for the effect of this stock dividend. Page 7 TABLE 1 - SELECTED QUARTERLY FINANCIAL DATA (Dollars in millions except per share data)
Quarters 1996 1995 3 2 1 4 3 Summary of Operations Interest and dividend income $ 820.4 $ 798.6 $ 780.5 $ 782.4 $ 759.9 Interest expense 366.0 354.3 357.3 350.2 342.0 Net interest income 454.4 444.3 423.2 432.2 417.9 Provision for loan losses 30.0 26.2 25.0 31.3 29.1 Net interest income after provision for loan losses 424.4 418.1 398.2 400.9 388.8 Noninterest income 197.2 200.1 213.7 179.4 182.6 Noninterest expense 389.6 393.4 401.0 380.6 363.1 Income before provision for income taxes 232.0 224.8 210.9 199.7 208.3 Provision for income taxes 76.4 72.7 60.5 54.8 64.6 Net income $155.6 $152.1 $ 150.4 $ 144.9 $ 143.7 Per common share Net income $ 0.70 $ 0.68 $ 0.66 $ 0.64 $ 0.63 Dividends declared 0.20 0.20 0.20 0.20 0.18 Book value 21.43 20.73 19.60 18.91 17.99 Common stock market price High 41 1/2 38 38 3/8 35 3/8 33 7/8 Low 34 7/8 33 1/4 32 31 5/8 28 1/2 Close 41 37 35 34 1/4 33 Selected Average Balances Total assets $48,122.6 $47,019.5 $45,641.9 $44,616.4 $43,072.4 Earning assets 42,179.2 41,241.8 40,114.0 39,391.9 38,198.8 Loans 33,029.6 32,265.2 31,437.9 30,688.7 29,771.1 Total deposits 34,652.8 34,378.8 33,081.9 31,925.4 31,516.6 Realized shareholders' equity 3,281.7 3,232.0 3,206.8 3,081.8 3,092.9 Total shareholders' equity 4,713.7 4,522.2 4,405.3 4,163.4 4,090.3 Common equivalent shares (thousands) 222,683 224,061 225,388 225,574 226,515 Financial Ratios and Other ROA 1.35 % 1.36 % 1.38 % 1.34 % 1.38 % ROE 18.86 18.93 18.87 18.65 18.43 Net interest margin 4.38 4.43 4.35 4.47 4.47 Net interest income - taxable-equivalent $ 464.2 $ 454.2 $ 433.7 $ 443.9 $ 430.1 ROA, ROE and net interest margin are calculated excluding unrealized gains on investment securities because the unrealized gains are not included in income.
Page 8 The following is an analysis of the financial performance of SunTrust Banks, Inc. (SunTrust or Company) for the third quarter of 1996 and provides comments on earlier periods. In this discussion net interest income and net interest margin are presented on a taxable-equivalent basis. Also all ratios are presented on an annualized basis. TABLE 2A - CONSOLIDATED DAILY AVERAGE BALANCES, INCOME/EXPENSE AND AVERAGE YIELDS EARNED AND RATES PAID (Dollars in millions; yields on a taxable-equivalent basis)
Quarter Ended September 30, 1996 June 30, 1996 September 30, 1995 Average Income/ Yields/ Average Income/ Yields/ Average Income/ Yields/ Balances Expense Rates Balances Expense Rates Balances Expense Rates Assets Loans Taxable $32,389.3 $666.9 8.19 % $31,645.9 $649.3 8.25 % $29,116.9 $622.5 8.48 % Tax-exempt 640.3 13.4 8.28 619.3 13.0 8.42 654.2 15.3 9.29 Total loans 33,029.6 680.3 8.19 32,265.2 662.3 8.26 29,771.1 637.8 8.50 Investment securities: Taxable 7,648.4 123.1 6.41 7,605.0 120.8 6.39 7,081.7 106.8 5.98 Tax-exempt 747.2 16.5 8.76 783.9 17.4 8.91 870.3 20.4 9.30 Total investment securities 8,395.6 139.6 6.62 8,388.9 138.2 6.63 7,952.0 127.2 6.35 Funds sold 670.3 9.1 5.42 515.7 6.9 5.39 422.0 6.3 5.96 Other short-term investments 83.7 1.2 5.80 72.0 1.1 6.14 53.7 0.8 5.57 Total earning assets 42,179.2 830.2 7.83 41,241.8 808.5 7.88 38,198.8 772.1 8.02 Reserve for loan losses (723.1) (715.6) (684.2) Cash and due from banks 2,167.9 2,256.2 2,033.7 Premises and equipment 750.6 742.4 724.3 Other assets 1,435.6 1,408.3 1,186.7 Unrealized gains(losses) on investment securities 2,312.4 2,086.4 1,613.1 Total assets $48,122.6 $47,019.5 $43,072.4 Liabilities and Shareholders' Equity Interest-bearing deposits: NOW/Money market accounts $10,270.4 $ 69.8 2.70 % $10,488.3 $ 73.4 2.82 % $ 9,329.7 $ 63.0 2.68 % Savings 5,580.5 49.9 3.56 5,769.2 53.8 3.75 3,552.2 23.0 2.57 Consumer time 7,120.1 91.9 5.13 7,231.3 92.5 5.14 8,078.0 111.0 5.45 Other time 4,579.7 62.3 5.40 3,705.0 50.3 5.46 3,792.9 54.4 5.69 Total interest-bearing deposits 27,550.7 273.9 3.95 27,193.8 270.0 3.99 24,752.8 251.4 4.03 Funds purchased 4,782.0 60.8 5.06 4,352.3 54.5 5.04 4,148.0 58.8 5.62 Other short-term borrowings 658.7 9.3 5.63 848.4 11.4 5.41 949.6 14.8 6.19 Long-term debt 1,333.0 22.0 6.59 1,106.6 18.4 6.68 957.1 17.0 7.06 Total interest-bearing liabiliti 34,324.4 366.0 4.24 33,501.1 354.3 4.25 30,807.5 342.0 4.40 Noninterest-bearing deposits 7,102.1 7,185.0 6,763.7 Other liabilities 1,982.4 1,811.2 1,410.9 Realized shareholders' equity 3,281.7 3,232.0 3,092.9 Net unrealized gains(losses) on investment securities 1,432.0 1,290.2 997.4 Total liabilities and shareholders' equity $48,122.6 $47,019.5 $43,072.4 Interest rate spread 3.59 % 3.63 % 3.62 % Net Interest Income $464.2 $454.2 $430.1 Net Interest Margin 4.38 % 4.43 % 4.47 % Page 9 Interest income includes loan fees of $24.1, $24.7, and $22.9 in the quarters ended September 30, and June 30, 1996 and September 30, 1995 and $70.6 and $64.6 in the nine months ended September 30, 1996 and 1995. Nonaccrual loans are included in average balances and income on such loans, if recognized, is recorded on a cash basis. Interest income includes the effects of taxable-equivalent adjustments (reduced by the nondeductible portion of interest expense) using a federal income tax rate of 35%, and, where applicable, state income taxes, to increase tax-exempt interest income to a taxable-equivalent basis. The net taxable-equivalent adjustment amounts included in the above table aggregated $9.8, $9.9 and $12.2 in the quarters ended September 30 and June 30, 1996 and September 30, 1995 and $30.2 and $37.9 in the nine months ended September 30, 1996 and 1995. Interest rate swap transactions used to help balance the Company's interest-sensitivity position increased interest expense by $0.4, and $0.5, in the quarters ended September 30 and June 30, 1996 and $1.2 in the nine months ended September 30, 1996 and reduced interest expense by $1.5 in the quarter ended September 30, 1995 and $8.9 in the nine months ended September 30, 1995. Without these swaps, the rate on other time deposits and the net interest margin would have been 5.35% and 4.37%, 5.39% and 4.42%, and 5.84% and 4.45% in the quarters ended September 30 and June 30, 1996 and September 30, 1995 and 5.43% and 4.38%, and 5.79% and 4.47% in the nine months ended September 30, 1996 and 1995.
Page 10 TABLE 2b - CONSOLIDATED DAILY AVERAGE BALANCES, INCOME/EXPENSE AND AVERAGE YIELDS EARNED AND RATES PAID (Dollars in millions; yields on a taxable-equivalent basis)
Nine Months Ended September 30, 1996 September 30, 1995 Average Income/ Yields/ Average Income/ Yields/ Balances Expense Rates Balances Expense Rates Assets Loans Taxable $31,616.5 $1,953.7 8.25 % $28,689.1 $1,822.6 8.49 % Tax-exempt 630.6 39.8 8.42 690.2 47.0 9.10 Total loans 32,247.1 1,993.5 8.26 29,379.3 1,869.6 8.51 Investment securities: Taxable 7,462.1 356.0 6.37 7,214.3 323.2 5.99 Tax-exempt 780.4 51.9 8.88 886.1 63.5 9.58 Total investment securities 8,242.5 407.9 6.61 8,100.4 386.7 6.38 Funds sold 618.5 25.0 5.40 530.7 23.9 6.03 Other short-term investments 73.9 3.3 5.97 57.2 2.5 5.92 Total earning assets 41,182.0 2,429.7 7.88 38,067.6 2,282.7 8.02 Reserve for loan losses (714.6) (669.1) Cash and due from banks 2,213.3 2,078.4 Premises and equipment 741.9 721.1 Other assets 1,397.8 1,099.9 Unrealized gains(losses) on investment securities 2,112.0 1,254.4 Total assets $46,932.4 $42,552.3 Liabilities and Shareholders' Equity Interest-bearing deposits: NOW/Money market accounts $10,271.7 $215.8 2.81 % $ 9,385.0 $ 193.4 2.75 % Savings 5,352.6 147.8 3.69 3,669.7 73.2 2.67 Consumer time 7,356.2 285.8 5.19 7,830.5 306.9 5.24 Other time 3,949.8 162.3 5.49 4,029.7 165.5 5.49 Total interest-bearing deposits 26,930.3 811.7 4.03 24,914.9 739.0 3.97 Funds purchased 4,496.3 171.2 5.09 3,994.1 170.3 5.70 Other short-term borrowings 855.8 36.0 5.62 891.1 40.9 6.13 Long-term debt 1,168.1 58.7 6.72 943.5 50.4 7.14 Total interest-bearing liabiliti 33,450.5 1,077.6 4.30 30,743.6 1,000.6 4.35 Noninterest-bearing deposits 7,109.8 6,854.4 Other liabilities 1,824.4 1,136.1 Realized shareholders' equity 3,240.3 3,042.3 Net unrealized gains(losses) on investment securities 1,307.4 775.9 Total liabilities and shareholders' equity $46,932.4 $42,552.3 Interest rate spread 3.58 % 3.67 % Net Interest Income $1,352.1 $1,282.1 Net Interest Margin 4.39 % 4.50 % See note on table 2A. See note on table 2A. See note on table 2A.
Page 11 Net Interest Income/Margins. The Company's net interest margin of 4.38% for the third quarter of 1996 was 9 basis points lower than the third quarter of last year. The rate on earning assets decreased 19 basis points, fueled by a 31 basis point decrease in the yield on loans. At the same time, the rate on interest-bearing liabilities decreased 16 basis points. Interest rate swaps also helped increase last year's net interest margin (see the discussion entitled "Derivatives" on page 17). Interest income which the Company was unable to recognize on nonperforming loans in the first nine months of 1996 had a negative impact of 2 basis points on the net interest margin as compared to 3 basis points in the first nine months 1995. Table 2 contains more detailed information concerning average balances and interest yields earned and rates paid. Noninterest Income. Noninterest income in the third quarter and the first nine months of 1996, adjusted to exclude the effect of securities gains (losses), increased 8.9% and 11.9% from the comparable periods a year ago. Trust income, the Company's largest source of noninterest income, increased 5.3% and 7.3% over the same periods. Other charges and fees were 18.0% higher in the third quarter of this year compared to the same period last year due to higher volume in our mortgage banking business. Credit card fees also increased 4.1% and 5.0%. TABLE 3 - NONINTEREST INCOME (In millions)
Quarters 1996 1995 3 2 1 4 3 Trust income $ 68.1 $ 70.5 $ 70.7 $ 64.6 $ 64.7 Service charges on deposit accounts 57.9 58.1 55.7 54.5 54.0 Corporate and institutional investment 3.4 3.3 2.8 4.9 2.4 Retail investment income 6.3 6.2 4.6 3.6 3.3 Other charges and fees 32.5 35.4 32.2 28.4 27.6 Credit card fees 15.7 16.6 17.0 15.6 15.1 Securities gains (losses) (0.5) (2.2) 17.3 (7.2) 1.0 Trading account profits and commissions 3.5 3.1 2.6 3.3 2.5 Other income 10.3 9.1 10.8 11.7 12.0 Total noninterest income $197.2 $200.1 $213.7 $179.4 $182.6
Page 12 Noninterest Expense. Noninterest expense increased 7.3% and 10.6% in the third quarter and first nine months of 1996 compared to the same periods last year. Personnel expense, consisting of salaries, other compensation and employee benefits, increased 13.0% and 12.3% over the aforementioned periods. Other noninterest expense increased substantially in the third quarter of this year as compared to the third quarter of 1995, due to expenditures made in connection with various projects to stimulate business growth and development. The FDIC has advised it will levy a special assessment to recapitalize the Savings Association Insurance Fund (SAIF) as a result of legislation signed into law on September 30, 1996. At September 30, 1996 the Company has $5.6 million accrued in other liabilities for this assessment. TABLE 4 - NONINTEREST EXPENSE (In millions)
Quarters 1996 1995 3 2 1 4 3 Salaries $161.7 $156.0 $151.7 $149.7 $144.8 Other compensation 32.9 32.3 29.1 27.0 25.3 Employee benefits 26.0 26.4 29.4 27.2 25.1 Net occupancy expense 34.9 34.4 33.7 33.2 33.6 Equipment expense 29.5 28.0 27.5 26.4 25.7 FDIC premiums 1.3 1.4 1.2 3.9 (0.6) Marketing and community relations 19.2 18.7 15.2 12.4 10.3 Postage and delivery 10.5 9.7 10.0 9.3 8.8 Operating supplies 8.9 9.9 9.7 8.5 8.1 Other real estate expense 0.4 (0.5) 0.8 (3.9) (1.1) Communications 8.3 7.8 7.7 6.6 7.3 Consulting and legal 5.8 6.1 5.1 5.0 5.5 Amortization of intangible assets 6.8 6.5 6.1 6.0 5.4 Other expense 43.4 56.7 73.8 69.3 64.9 Total noninterest expense $389.6 $393.4 $401.0 $380.6 $363.1 Efficiency ratio 58.9 % 60.1 % 62.0 % 61.1 % 59.3 %
Provision for Loan Losses. The provision for loan losses in the third quarter of 1996 was $30.0 million compared to $29.1 million in 1995. Net loan charge-offs were $56.6 million in the first nine months of this year, representing 0.23% of average loans. The comparable net charge-off amount for 1995 was $37.4 million or 0.17% of average loans. Consumer loan charge- offs increased slightly yet remain low compared to historical standards. The Company maintains a reserve for loan losses to absorb possible losses in the loan portfolio. The reserve consists of three elements; (i) reserves established on specific loans, (ii) reserves based on historical loan loss experience, and (iii) reserves based on economic conditions in the Company's individual markets. The specific reserve element is based on a regular analysis of all loans and commitments over a fixed dollar amount where the internal credit rating is at or below a pre-determined classification. The historical loan loss element represents a projection of future credit problems and is determined statistically using a loss migration analysis that examines loss experience and the related internal gradings of loans charged-off. The general economic condition element is determined by management at the individual subsidiary banks and is based on a subjective evaluation of specific economic factors in their markets that might affect the collectibility of loans. SunTrust is committed to the early recognition of possible problems and to a strong, conservative reserve. The Company's reserve for loan losses totaled $724.7 million at September 30, 1996, which was 2.14% of quarter-end loans and 386.2% of total nonperforming loans. These ratios at December 31, 1995 were 2.23% and 363.6% and at September 30, 1995 were 2.31% and 390.8%. Page 13 TABLE 5 - SUMMARY OF LOAN LOSS EXPERIENCE (Dollars in millions)
Quarters 1996 1995 3 2 1 4 3 Reserve for Loan Losses Balances - beginning of quarter $ 722.6 $ 712.4 $ 698.9 $ 692.8 $ 676.9 Reserve of purchased banks 1.2 3.9 0.7 Provision for loan losses 30.0 26.2 25.0 31.3 29.1 Charge-offs: Domestic: Commercial (12.2) (5.2) (4.4) (13.1) (4.0) Real estate: Construction (0.2) (0.1) (0.1) (0.1) Mortgage, 1-4 family (2.3) (1.1) (1.4) (1.8) (2.3) Other (2.8) (1.5) (0.9) (6.3) (3.9) Lease financing (0.2) (0.4) (0.3) (0.3) (0.2) Credit card (10.6) (9.5) (9.0) (7.5) (6.8) Other consumer loans (12.6) (10.9) (10.5) (11.8) (10.0) International Total charge-offs (40.9) (28.6) (26.6) (40.9) (27.3) Recoveries: Domestic: Commercial 4.6 3.1 4.2 3.8 3.2 Real estate: Construction 0.1 0.1 0.1 0.3 1.9 Mortgage, 1-4 family 0.3 0.5 0.3 0.4 0.2 Other 1.2 2.1 2.7 1.0 1.4 Lease financing 0.1 0.2 0.1 0.1 0.2 Credit card 1.7 1.7 1.8 1.7 2.0 Other consumer loans 5.0 4.9 4.7 4.5 4.3 International 0.2 Total recoveries 13.0 12.6 13.9 11.8 13.4 Net charge-offs (27.9) (16.0) (12.7) (29.1) (13.9) Balance - end of quarter $ 724.7 $ 722.6 $ 712.4 $ 698.9 $ 692.8 Quarter-end loans outstanding: Domestic $33,567.4 $32,124.4 $31,517.2 $30,966.0 $29,702.6 International 256.9 276.8 268.9 335.4 298.2 Total $33,824.3 $32,401.2 $31,786.1 $31,301.4 $30,000.8 Ratio of reserve to quarter-end loans 2.14 % 2.23 % 2.24 % 2.23 % 2.31 % Average loans $33,029.6 $32,265.2 $31,437.9 $30,688.7 $29,771.1 Ratio of net charge-offs (annualized) to average loans 0.34 % 0.20 % 0.16 % 0.38 % 0.18 %
Page 14 TABLE 6 - NONPERFORMING ASSETS (Dollars in millions)
1996 1995 September 30 June 30 March 31 December 31 September 30 Nonperforming Assets Nonaccrual loans: Domestic: Commercial $ 29.1 $ 34.6 $ 36.0 $ 28.3 $ 27.6 Real Estate: Construction 14.9 3.7 4.7 4.9 6.9 Mortgage, 1-4 family 49.7 49.5 50.6 45.7 44.2 Other 80.1 93.2 86.9 99.3 84.0 Lease financing 0.2 0.1 0.2 0.1 Consumer loans 10.9 10.9 9.3 11.0 11.6 Total nonaccrual loans 184.9 192.0 187.7 189.3 174.3 Restructured loans 2.7 2.8 2.9 2.9 3.0 Total nonperforming loans 187.6 194.8 190.6 192.2 177.3 Other real estate owned 51.9 53.5 58.8 58.8 66.2 Total Nonperforming Assets $ 239.5 $ 248.3 $ 249.4 $ 251.0 $ 243.5 Ratios: Nonperforming loans to total loans 0.55 % 0.60 % 0.60 % 0.61 % 0.59 % Nonperforming assets to total loans plus other real estate owned 0.71 0.77 0.78 0.80 0.81 Reserve to nonperforming loans 386.23 371.01 373.78 363.60 390.78 Accruing Loans Past Due 90 Days or More 28.0 29.9 26.0 24.3 26.0
Nonperforming Assets. Nonperforming assets consist of nonaccrual and restructured loans and other real estate owned. Nonperforming assets have decreased $11.5 million since December 31, 1995 and $4.0 million since September 30, 1995. Since December 31, 1995, nonperforming assets decreased $9.0 million in Florida banks, $9.7 million in Georgia banks, $0.1 million at Suntrust Mortgage, and increased $7.3 million in Tennessee banks. Included in nonperforming loans at September 30, 1996 are loans aggregating $29.9 million which are current as to the payment of principal and interest but have been placed in nonperforming status because of uncertainty over the borrowers' ability to make future payments. In management's opinion, all material potential problem loans are included in Table 6. Interest income on nonaccrual loans, if recognized, is recorded on a cash basis. During the first nine months of 1996, the gross amount of interest income that would have been recorded on nonaccrual loans and restructured loans at September 30, 1996, if all such loans had been accruing interest at the original contractual rate, was $13.4 million. Interest income recognized in the nine months ended September 30, 1996 on all such nonperforming loans at September 30, 1996, was $6.1 million. Page 15 Table 7 - Loan Portfolio by Types of Loans (in millions)
1996 1995 September 30 June 30 March 31 December 31 September 30 Commercial: Domestic $10,985.2 $10,405.4 $10,449.4 $10,222.5 $ 9,374.4 International 247.7 269.4 270.5 337.5 299.6 Real estate: Construction 1,330.2 1,246.4 1,239.3 1,216.6 1,176.6 Mortgage, 1-4 family 11,018.1 10,524.1 10,087.9 9,732.8 9,431.4 Other 4,547.6 4,540.3 4,526.9 4,477.7 4,567.4 Lease financing 598.3 569.4 565.2 561.2 507.6 Credit card 857.2 770.6 732.0 774.0 713.9 Other consumer loans 4,240.0 4,075.6 3,914.9 3,979.1 3,929.9 Loans $33,824.3 $32,401.2 $31,786.1 $31,301.4 $30,000.8
Loans. During the third quarter and first nine months of 1996, average loans increased 10.9% and 9.8% over the same periods a year ago, however, loan growth slowed during the third quarter. Since December 31, 1995, the two loan categories experiencing significant growth were 1-4 family residential mortgage loans (most of which are variable rate loans) and domestic commercial loans. The average loan to deposit ratios were 95.3% and 94.7% in the third quarter and first nine months of 1996 compared with 94.5% and 92.5% in the same periods of 1995. At September 30, 1996, international outstandings, which include loans, acceptances, deposits in other banks, foreign guarantees and accrued interest, totaled $301.2 million, a decrease of 24.1% from $396.8 million at December 31, 1995. Income Taxes. The provision for income taxes was $76.4 and $209.6 million in the third quarter and first nine months of 1996 compared to $64.6 and $205.6 million in the same periods last year. Investment Securities. The investment portfolio continues to be managed to maximize yield over an entire interest rate cycle while providing liquidity and minimizing risk. The portfolio yield increased from an average of 6.35% in the third quarter of 1995 to 6.62% in the third quarter of this year. The portfolio size has increased by $511 million since the beginning of the year to $8.16 billion at the end of the quarter. The average life of the portfolio was approximately 2.6 years and its duration, the average time to the receipt of the present value of the portfolio's expected cash flow, was 2.1 years at September 30, 1996. At September 30, 1996, approximately 32.7% of the portfolio consisted of U.S. Treasury securities, 11.2% U.S. government agency securities, 46.7% mortgage-backed securities, 9.0% municipal securities, and 0.4% in other securities (calculated as a percent of total par value). All of the Company's holdings in mortgage-backed securities are backed by U.S. government or federal agency guarantees limiting the credit risk associated with the mortgage loans. At September 30, 1996, the carrying value of the securities portfolio was $2.4 billion over its amortized cost, including a $2.5 billion unrealized gain on the Company's investment in common stock of The Coca-Cola Company. Page 16 Liquidity Management. Liquidity is managed to ensure there is sufficient cash flow to satisfy demand for credit, deposit withdrawals and other attractive market opportunities. A large, stable core deposit base, strong capital position and excellent credit ratings are the solid foundation for the Company's liquidity position. It is enhanced by an investment portfolio structured to provide liquidity as needed, which occurred in 1995 and 1996 when loan demand exceeded deposit growth. Liquidity is also strengthened by ready access to regional and national wholesale funding sources including fed funds purchased, securities sold under agreements to repurchase, negotiable certificates of deposit and offshore deposits, as well as an active bank deposit note program, commercial paper issuance by the Parent Company, and Federal Home Loan Bank (FHLB) advances for several subsidiary banks who are FHLB members. Average total deposits for the third quarter and first nine months of 1996 increased 10.0% and 7.15% over the same periods a year ago. Interest- bearing deposits represented 79.5% and 79.1% of average deposits for the third quarter and first nine months of 1996, compared to 78.5% and 78.4% for the same periods in 1995. In the third quarter of 1996, average net purchased funds (average funds purchased less average funds sold) increased $0.4 billion over the same period in 1995. Net purchased funds were 9.8% and 9.4% of average earning assets for the third quarter and first nine months of 1996 as compared to 9.8% and 9.1% in the same periods a year ago. Derivatives. The Company enters into various derivatives contracts in a dealer capacity for customers and in managing its own interest rate risk. Where contracts have been created for customers, the Company enters into offsetting positions to eliminate its exposure to market risk. The principal derivative contract used by the Company is the interest rate swap. Interest rate swaps are contracts in which a series of interest rate flows, based on a specific notional amount and a fixed and floating interest rate, are exchanged over a prescribed period. The Company also monitors its sensitivity to changes in interest rates and uses interest rate swap contracts to limit the volatility of net interest income. Table 8 details interest rate swaps as of September 30, 1996 used for managing interest rate sensitivity. TABLE 8 - INTEREST RATE SWAPS
Average Average Average (Dollars in millions) Notional Fair Maturity Rate Rate At September 30, 1996 Value Value In Months Paid Received Gain position: Receive fixed $ 458.0 $ 4.9 118.1 5.62 % 7.18 % Pay fixed 176.2 6.7 84.8 6.28 5.41 Total gain position 634.2 11.6 Loss position: Receive fixed 1,478.9 (15.1) 20.5 0.30 5.47 Pay fixed 106.8 (2.1) 21.6 6.60 5.68 Total loss position 1,585.7 (17.2) Total $2,219.9 $ (5.6)
The majority of the swaps are designated as hedges on deposits and other interest-bearing liabilities. During the nine months ended September 30, 1996, hedge swaps decreased net interest income by $1.2, compared with a $8.9 benefit in the corresponding 1995 period. Page 17 TABLE 9 - CAPITAL RATIOS (Dollars in millions)
1996 1995 September 30 June 30 March 31 December 31 September 30 Tier 1 capital: Realized shareholders' equity $ 3,271.5 $ 3,193.7 $ 3,165.6 $ 3,111.0 $ 3,035.2 Intangible assets other than servicing rights (249.0) (251.3) (255.7) (252.3) (239.5) Total Tier 1 capital 3,022.5 2,942.4 2,909.9 2,858.7 2,795.7 Tier 2 capital: Allowable reserve for loan losses 487.8 470.8 461.8 462.2 437.6 Allowable long-term debt 877.9 557.2 554.2 246.8 247.6 Total Tier 2 capital 1,365.7 1,028.0 1,016.0 709.0 685.2 Total capital $ 4,388.2 $ 3,970.4 $ 3,925.9 $ 3,567.7 $ 3,480.9 Risk-weighted assets $38,788.8 $37,413.6 $36,694.7 $36,742.0 $34,756.2 Risk-based ratios: Tier 1 capital 7.78 % 7.86 % 7.92 % 7.78 % 8.04 % Total capital 11.30 10.60 10.69 9.71 10.01 Tier 1 leverage ratio 6.63 6.58 6.69 6.70 6.78 Total shareholders' equity to assets 9.63 9.64 9.48 9.19 9.38
Capital Resources. Consistent with the objective of operating a sound financial organization, SunTrust maintains capital ratios well above regulatory requirements. The rate of internal capital generation has been more than adequate to support asset growth. Table 9 presents capital ratios for the five most recent quarters. Regulatory agencies measure capital adequacy with a framework that makes capital requirements sensitive to the risk profiles of individual banking companies. The guidelines define capital as either Tier 1 (primarily shareholders' equity excluding unrealized gains and losses on investment securities) or Tier 2 (certain debt instruments and a portion of the reserve for loan losses). The Company and its subsidiary banks are subject to a minimum Tier 1 capital to risk-weighted assets ratio of 4% and total capital (Tier 1 plus Tier 2) to risk-weighted assets ratio of 8%. The Federal Reserve Board (Board) has also established an additional capital adequacy guideline referred to as the Tier 1 leverage ratio which measures the ratio of Tier 1 capital to average quarterly assets. The Federal Deposit Insurance Corporation Improvement Act of 1991 (FDICIA) requires the establishment of a capital-based supervisory system of prompt corrective action for all depository institutions. The Board's implementation of FDICIA defines "well capitalized" institutions as those whose capital ratios equal or exceed the following minimum ratios: Tier 1 capital ratio of 6%, total risk-based capital ratio of 10%, and a Tier 1 leverage ratio of 5%. At September 30, 1996, the Company's Tier 1 capital, total risk-based capital and Tier 1 leverage ratios were 7.78%, 11.30% and 6.63%, respectively. In 1995, the Board of Directors authorized the Company to repurchase up to 20,000,000 shares of SunTrust common stock. At September 30, 1996, the Company has a remaining 11,555,918 shares that may be purchased under this authorization. Page 18 Nonbanking Subsidiaries. SunTrust Mortgage, Inc. originates and services mortgage loans on both residential and income property, principally throughout Florida, Georgia and Tennessee. SunTrust Mortgage is primarily a mortgage banker selling to the secondary market and representing institutional investors. SunTrust Mortgage also assists various SunTrust banks in their origination of mortgage loans for sale in the secondary market and for retention in their portfolio. At September 30, 1996, the servicing portfolio was $13.6 billion, which includes $8.4 billion in loans serviced for subsidiary banks of SunTrust. SunTrust Insurance Company operates as a reinsurer for credit life and accident and health insurance sold to loan customers of SunTrust. SunTrust Securities engages in securities brokerage services and conducts incidental activities such as offering custodial and cash management services. SunTrust Capital Markets, Inc. serves as the investment banking arm of SunTrust. It's business activities include public finance, corporate finance and the sale of investment securities to corporations, institutions and government entities. Personal Express Loans, Inc. operates as a consumer finance company. STI Credit Corporation operates as a leasing subsidiary, primarily for commercial customers. Other nonbank subsidiaries primarily support the Company's banking operations, providing data processing and other services. State Summary. SunTrust Banks, Inc. operates through three principal subsidiaries, SunTrust Banks of Florida, Inc., SunTrust Banks of Georgia, Inc. and SunTrust Banks of Tennessee, Inc., all well-established bank holding companies within their respective states. Data in Table 10 does not include financial results of SunTrust's Parent Company and certain other non-bank subsidiaries (including SunTrust BankCard N.A. which holds all the credit card balances of the company). It is also before elimination of certain intercompany accounts and balances. Page 19 TABLE 10 - FINANCIAL HIGHLIGHTS - BANKING SUBSIDIARIES (Dollars in Millions)
SunTrust Banks SunTrust Banks SunTrust Banks of Florida, Inc. of Georgia, Inc. of Tennessee, Inc. 1996 1995 1996 1995 1996 1995 Summary of Operations Net interest income (FTE) $ 705.5 $ 694.0 $ 446.2 $ 427.3 $ 205.1 $ 207.9 Provision for loan losses 32.0 49.2 18.5 22.2 6.7 9.1 Trust income 106.5 104.1 75.9 66.7 26.6 24.4 Other noninterest income 199.4 171.2 129.2 110.3 57.3 48.7 Personnel expense 241.3 221.3 151.2 135.6 76.7 71.2 Other noninterest expense 334.0 344.4 188.4 190.7 85.4 93.8 Net income 247.5 220.3 189.0 165.2 73.8 65.1 Selected Average Balances Total assets 22,845 21,131 17,189 14,714 6,809 6,521 Earning assets 21,370 19,847 13,721 12,332 6,528 6,217 Loans 16,159 15,246 10,968 9,573 4,899 4,518 Total deposits 18,280 16,978 10,317 9,729 5,495 5,120 Realized shareholders' equity 1,971 1,851 1,344 1,193 563 542 At September 30 Total assets 23,307 21,500 19,252 15,181 7,133 6,590 Earning assets 21,688 20,162 15,143 12,410 6,793 6,254 Loans 16,737 15,525 11,731 9,739 5,185 4,663 Reserve for loan losses 380 372 197 200 116 120 Total deposits 18,104 17,079 11,420 9,108 5,578 5,143 Realized shareholders' equity 2,037 1,943 1,405 1,241 585 554 Total shareholders' equity 2,024 1,937 2,918 2,267 582 556 Credit Quality Net loan charge-offs 14.2 22.3 13.1 10.1 5.2 4.6 Nonperforming loans 117.5 113.5 48.7 51.6 21.2 11.9 Other real estate owned 31.2 36.3 5.6 10.3 15.1 19.6 Ratios ROA 1.45 % 1.39 % 1.67 % 1.65 % 1.45 % 1.33 % ROE 16.77 15.91 18.78 18.51 17.51 16.07 Net interest margin 4.41 4.68 4.34 4.63 4.20 4.47 Efficiency ratio 56.88 58.36 52.13 54.00 56.14 58.71 Total shareholders' equity/assets 8.68 9.01 15.16 14.93 8.17 8.43 Net loan charge-offs to average loans 0.12 0.20 0.16 0.14 0.15 0.14 Nonperforming loans to total loans 0.72 0.73 0.42 0.53 0.42 0.26 Nonperforming assets to total loans plus other real estate owned 0.91 0.96 0.47 0.63 0.71 0.67 Reserve to loans 2.33 2.40 1.71 2.05 2.29 2.57 Reserve to nonperforming loans 323.6 327.7 405.2 387.8 548.5 1,007.0 For the nine month period ended September 30. At September 30. Annualized for the first nine months.
Page 20 PART II - OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K (a) Exhibit Index: Exhibit Exhibit No. Page No. Statement re: Computation of Per Share Earnings 11 22 (b) SunTrust did not file any reports on Form 8-K during the third quarter of 1996. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized this 14th day of November, 1996. SunTrust Banks, Inc. (Registrant) /s/ W.P. O'Halloran William P. O'Halloran Senior Vice President and Controller (Chief Accounting Officer) Page 21 EX-11 2 EXHIBIT 11 Statement re: Computation of Per Share Earnings (In thousands, except per share data)
Three Months Nine Months Ended September 30 Ended September 30 1996 1995 1996 1995 Primary Net income $155,588 $143,700 $458,104 $420,612 Average common shares outstanding 223,178 226,724 224,528 227,542 Average common share equivalents outstanding (1) : Stock options 1,352 1,484 1,361 1,480 Restricted stock (1,847) (1,693) (1,850) (1,697) Average primary common shares 222,683 226,515 224,039 227,325 Earnings per common share - Primary $ 0.70 $ 0.63 $ 2.04 $ 1.83 Fully Diluted Net income $155,588 $143,700 $458,104 $420,612 Average common shares outstanding 223,178 226,724 224,528 227,542 Average common share equivalents outstanding (1) : Stock options 1,372 1,506 1,380 1,505 Restricted stock (1,847) (1,692) (1,847) (1,694) Average fully diluted common shares 222,703 226,538 224,061 227,353 Earnings per common share - Fully Diluted $ 0.70 $ 0.63 $ 2.04 $ 1.83 Includes the incremental effect of stock options and restricted stock outstanding computed under the treasury stock method.
EX-27 3 ARTICLE 9 FDS FOR 10Q
9 1,000 9-MOS DEC-31-1996 JAN-01-1996 SEP-30-1996 2,460,275 12,700 768,427 164,363 10,759,252 0 0 33,824,308 724,677 49,632,692 34,974,160 6,224,737 2,091,176 1,563,906 225,608 0 0 4,553,105 49,632,692 1,980,203 390,940 28,253 2,399,396 811,616 1,077,551 1,321,845 81,155 14,593 1,184,037 667,701 458,104 0 0 458,104 2.04 2.04 4.39 184,856 28,040 2,772 0 698,864 96,126 39,541 724,677 0 0 724,677
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