-----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, G/rUeWNzTI4PvlHp5qO0T6YFhT+eToweeBK0IPYJDkibQU0OiUyOz6Z8FR9bUDx0 UdOv6UB+v5N2y5u6xxbbFg== 0000750556-98-000001.txt : 19980119 0000750556-98-000001.hdr.sgml : 19980119 ACCESSION NUMBER: 0000750556-98-000001 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980116 ITEM INFORMATION: FILED AS OF DATE: 19980116 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: 8-K SEC ACT: SEC FILE NUMBER: 001-08918 FILM NUMBER: 98508625 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 8-K 1 FORM 8-K SUNTRUST BANKS, INC. SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported) January 8, 1998 SunTrust Banks, Inc. (Exact name of registrant as specified in its charter) Georgia 1-8918 58-1575035 (State or other jurisdiction Commission (IRS Employer of incorporation) File Number) Identification No.) 25 Park Place, N.E., Atlanta, Georgia 30313 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (404) 588-7711 Item 5. Other Events. SunTrust Banks, Inc. (the "Company") announced on January 8, 1998 that it reported net income for 1997 of $667.3 million compared with $616.6 million in 1996. Diluted earnings per share for the year were $3.13, an increase of 13.4% from $2.76 in 1996. Basic earnings per share in 1997 were $3.17 compared with $2.80 for the previous year. The annual return on average assets (ROA) and return on average realized common equity (ROE) were 1.30% and 21.13%, respectively, compared with 1.35% and 18.89% in 1996. "1997 was a great year," commented James B. Williams, Chairman and Chief Executive Officer of the Company. "Earnings per share were at record levels as they have been every year since our formation in 1985; loans grew 13.4%; noninterest income excluding securities gains increased 16.0% while noninterest expense was up 6.5%; credit quality was exceptional; and the stock price was up 45%." Already outstanding credit quality strengthened further as evidenced by a 41% decline in nonperforming assets and improvement in the associated credit ratios. Nonperforming assets at the end of 1997 totaled to $150.6 million compared with $255.8 million in 1996. The ratio of nonperforming assets to loans and other real estate owned declined for the sixth consecutive year to 0.38% at year-end. The reserve for loan losses was $751.8 million, or 1.87% of loans, at December 31, 1997. Net charge-offs for the year were $91.0 million, or 0.24% of average loans. Fourth quarter net income was $172.2 million in 1997 compared with $158.5 million in the 1996 fourth quarter. Diluted earnings per share for the fourth quarter were $0.82 in 1997 compared with $0.72 in 1996, an increase of 13.9%. Basic earnings per share increased 13.7% to $0.83 in the last quarter of 1997 from $0.73 in the same period of 1996. The net interest margin declined slightly to 4.00% from its third quarter 1997 level of 4.04%. Fourth quarter noninterest income excluding securities gains was $247.0 million, a 19.1% increase from the previous year. Noninterest expense increased 8.7% from a year ago, primarily due to increased personnel expense. At December 31, 1997, total assets of the Company were $58.0 billion, a 10.5% increase from a year ago. In other year-to-year comparisons, loans grew 13.4% to $40.1 billion; total deposits were $38.2 billion, up 3.5%; and total shareholders' equity increased 6.5% to $5.2 billion. A complete copy of the press release relating to the Company's results of operations (including attached Financial highlights) is attached hereto as Exhibit 99.1 and incorporated by reference herein. Item 7. Financial Statements, Pro Forma Financial Information and Exhibits (c) Exhibits 99.1 Text of Press Release of SunTrust Banks, Inc. dated January 8, 1998. SIGNATURE 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. SUNTRUST BANKS, INC. (Registrant) Date: January 16, 1998 By: Raymond D. Fortin Senior Vice President EX-99.1 2 EXHIBIT - PRESS RELEASE SUNTRUST/NEWS FOR IMMEDIATE RELEASE: CONTACT: Jim Armstrong (404) 588-7425 January 8, 1998 SunTrust Reports Record Net Income for 1997 and the Fourth Quarter ATLANTA, GA -- SunTrust Banks, Inc. (NYSE: STI) today reported net income for 1997 of $667.3 million compared with $616.6 million in 1996. Diluted earnings per share for the year were $3.13, an increase of 13.4% from $2.76 in 1996, Basic earnings per share in 1997 were $3.17 compared with $2.80 for the previous year. The annual return on average assets (ROA) and return on average realized common equity (ROE) were 1.30% and 21.13%, respectively, compared with 1.35% and 18.89% in 1996. "1997 was a great year," commented James B. Williams, Chairman and Chief Executive Officer of SunTrust Banks, Inc. "Earnings per share were at record levels as they have been every year since our formation in 1985; loans grew 13.4%; noninterest income excluding securities gains increased 16.0% while noninterest expense was up 6.5%; credit quality was exceptional; and the stock price was up 45%." Already outstanding credit quality strengthened further as evidenced by a 41% decline in nonperforming assets and improvement in the associated credit ratios. Nonperforming assets at the end of 1997 totaled to $150.6 million compared with $255.8 million in 1996. The ratio of nonperforming assets to loans and other real estate owned declined for the sixth consecutive year to 0.38% at year-end. The reserve for loan losses was $751.8 million, or 1.87% of loans, at December 31, 1997. Net charge-offs for the year were $91.0 million, or 0.24% of average loans. Fourth quarter net income was $172.2 million in 1997 compared with $158.5 million in the 1996 fourth quarter. Diluted earnings per share for the fourth quarter were $0.82 in 1997 compared with $0.72 in 1996, an increase of 13.9%. Basic earnings per share increased 13.7% to $0.83 in the last quarter of 1997 from $0.73 in the same period of 1996. The net interest margin declined slightly to 4.00% from its third quarter 1997 level of 4.04%. Fourth quarter noninterest income excluding securities gains was $247.0 million, a 19.1% increase from the previous year. Noninterest expense increased 8.7% from a year ago. At December 31, 1997, total assets of SunTrust were $58.0 billion, a 10.5% increase from a year ago. In other year-to-year comparisons, loans grew 13.4% to $40.1 billion; total deposits were $38.2 billion, up 3.5%; and total shareholders'equity increased 6.5% to $5.2 billion. FINANCIAL HIGHLIGHTS Year Ended Three Months Ended December 31 December 31 1997 1996 1997 1996 For the Period ($ Mils) Net income $ 667.3 $ 616.6 $ 172.2 $ 158.5 Dividends paid 195.7 183.9 52.2 49.1 Per Common Share ($) Net income - diluted 3.13 2.76 0.82 0.72 Net income - basic 3.17 2.80 0.83 0.73 Dividends 0.93 0.83 0.25 0.225 Book value 24.77 22.13 24.77 22.13 Ratios (%) Return on average assets(1) 1.30% 1.35% 1.28% 1.32% Return on average realized equity(1) 21.13 18.89 21.69 18.91 Net interest margin (taxable-equivalent)(2) 4.11 4.36 4.00 4.29 Efficiency ratio 58.83 59.91 58.51 58.77 Equity to assets 8.97 9.30 8.97 9.30 Income Statement ($ Mils) Interest income (taxable-equivalent)(2) $3,687.4 $3,286.1 $ 963.1 $ 856.4 Interest expense 1,756.4 1,461.8 469.0 384.2 Net interest income (taxable-equivalent) 1,931.0 1,824.3 494.1 472.2 Provision for loan losses 117.0 115.9 32.6 34.7 Noninterest income Trust income 318.6 278.3 82.5 69.0 Service charges on deposit accounts 247.8 232.4 63.8 60.7 Corporate & institutional investment income 24.6 14.3 6.4 4.8 Retail investment income 33.2 22.2 8.4 5.1 Credit card fees 73.6 66.3 18.9 17.0 Mortgage fees 45.9 36.0 13.6 8.7 Other charges and fees 113.7 98.8 28.0 26.0 Securities gains (losses) 1.5 14.2 0.4 (0.4) Trading account profits and commissions 18.0 13.3 5.2 4.1 Other noninterest income 57.3 42.2 20.2 12.0 Total noninterest income 934.2 818.0 247.4 207.0 Noninterest expense Personnel expense 955.6 874.1 243.6 228.6 Net occupancy expense 126.8 138.2 30.9 35.2 Equipment expense 120.7 115.4 29.6 30.4 Marketing and customer development 68.8 76.4 19.2 23.3 Other real estate expense (11.4) (0.4) (5.8) (1.1) Other noninterest expense 425.1 379.4 116.4 82.7 Total noninterest expense 1,685.6 1,583.1 433.9 399.1 Taxable-equivalent adjustments 36.6 40.1 8.7 9.9 Income taxes 358.7 286.6 94.1 77.0 Net income $ 667.3 $ 616.6 $ 172.2 $ 158.5 Contribution to Net Income ($ Mils) SunTrust Banks of Florida, Inc. $ 371.5 $ 341.2 $ 103.2 $ 93.7 SunTrust Banks of Georgia, Inc. 281.5 253.8 73.3 64.8 SunTrust Banks of Tennessee, inc. 110.1 100.1 29.5 26.3 (1) ROA and ROE are calculated excluding unrealized gains on investment securities because the unrealized gains are not included in income. (2) Net interest income and net interest margin include the effects of taxable-equivalent using a Federal tax rate of 35% and state income taxes where applicable to increase tax-exempt interest income to a taxable-equivalent basis. Average As of Three Months Ended Year Ended December 31 December 31 December 31 1997 1996 1997 1996 1997 1996 Balance Sheet ($ Mils) Assets: Loans $40,136 $35,404 $37,516 $32,793 $39,230 $34,417 Investment securities - amortized cost 8,417 7,962 8,209 8,198 8,334 8,064 Funds sold 997 1,722 1,031 759 1,166 1,178 Interest-bearing deposits in other bank 15 14 12 18 13 13 Trading account 178 80 228 63 228 92 Total earning assets 49,743 45,182 46,996 41,831 48,971 43,764 Reserve for loan losses (752) (726) (737) (717) (745) (725) Cash and due from banks 2,991 3,037 2,273 2,240 2,395 2,320 Intangible assets 292 278 279 279 286 278 Other assets 2,397 2,108 2,456 1,893 2,657 1,988 Unrealized gains on investment securities 3,312 2,589 3,005 2,193 2,999 2,436 Total assets $57,983 $52,468 $54,272 $47,719 $56,563 $50,061 Liabilities and shareholders' equity: Noninterest-bearing deposits $ 8,928 $ 8,900 $ 7,540 $ 7,204 $ 7,802 $ 7,484 Interest-bearing deposits 29,270 27,990 28,375 27,037 28,138 27,357 Total deposits 38,198 36,890 35,915 34,241 35,940 34,841 Funds purchased 6,483 6,048 6,496 4,821 7,593 5,788 Other short-term borrowings 1,989 868 1,743 861 1,935 875 Long-term debt 3,172 1,565 2,442 1,269 3,073 1,568 Other liabilities 2,942 2,217 2,658 1,906 3,016 2,148 Total liabilities 52,784 47,588 49,254 43,098 51,557 45,220 Realized shareholders' equity 3,150 3,278 3,158 3,264 3,150 3,334 Unrealized gains on investment securities, net of taxes 2,049 1,602 1,860 1,357 1,856 1,507 Total shareholders' equity 5,199 4,880 5,018 4,621 5,006 4,841 Total liabilities and shareholders' equity $57,983 $52,468 $54,272 $47,719 $56,563 $50,061 Common shares outstanding 209,909 220,469 Diluted shares outstanding 213,480 223,486 210,554 221,840 Basic shares outstanding 210,243 220,364 207,138 218,353 Year Fourth Quarter Reserve for Loan Losses ($ Mils) 1997 1996 1997 1996 Balance - beginning of period $ 725.8 $ 698.9 $ 747.1 $ 724.7 Reserve of purchased banks - 1.2 - - Provision for loan losses 117.0 115.9 32.6 34.7 Net loan charge-offs (91.0) (90.2) (27.9) (33.6) Balance - end of period $ 751.8 $ 725.8 $ 751.8 $725.8 Net loan charge-off ratios (annualized) 0.24% 0.27% 0.28% 0.39% 12/31/97 09/30/97 12/31/96 Nonperforming Assets ($ Mils) Nonaccrual loans $ 125.4 $ 152.3 $ 202.3 Restructured loans 2.7 2.7 9.9 Other real estate owned 22.5 35.7 43.6 Total nonperforming assets $ 150.6 $ 190.7 $ 255.8 Ratios (%) Reserve for loan losses/loans 1.87% 1.94% 2.05% Reserve for loan losses/nonperforming loans 586.9 482.0 342.0 Nonperforming loans/loans 0.32 0.40 0.60 -----END PRIVACY-ENHANCED MESSAGE-----